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Polen Capital, an investment management company, released its “Polen Focus Growth Strategy” first quarter 20245 investor letter. A copy of the letter can be downloaded here. 2025 started following the best two-year stretch ever for the Russell 1000 Growth Index, with a return of +90% largely driven by the AI infrastructure narrative. The Trump victory and pro-business agenda boosted optimism, leading to a 7% rally. However, the first wave of Trump tariffs disrupted the global order, causing uncertainty to spike to levels comparable to COVID-19. The Russell 1000 Index concentration, which had previously been a tailwind to Index returns, was now weighing down. In the first quarter, the strategy returned -6.07% (gross) and -6.25% (net) compared to -9.97% for the Russell 1000 Growth Index and -4.27% for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Polen Focus Growth Strategy highlighted stocks such as Aon plc (NYSE:AON). Aon plc (NYSE:AON) offers a range of risk and human capital solutions. The one-month return of Aon plc (NYSE:AON) was -2.40%, and its shares gained 22.62% of their value over the last 52 weeks. On May 15, 2025, Aon plc (NYSE:AON) stock closed at $358.59 per share with a market capitalization of $77.43 billion.
Polen Focus Growth Strategy stated the following regarding Aon plc (NYSE:AON) in its Q1 2025 investor letter:
"In addition to Starbucks, we initiated a new position in Aon plc (NYSE:AON), one of the leading insurance brokerage houses in the world. Aon operates in 120 countries, with most of its revenue from the Americas. Its primary stock listing is in the U.S. We like the company's competitive advantages of scale, breadth of clients and insurance partners, as well as its strong customer relationships and high switching costs. With roughly 80% of its business being non discretionary due to the recurring nature of business insurance, the company benefits from persistent revenue streams and robust client retention. We expect a growth profile similar to that of a company like Accenture (with similar business attributes, operating as a trusted advisor in a complex and fragmented industry), with mid-to-high single-digit revenue growth and low teens EPS growth. It should also be noted that should inflation occur, it would act as a tailwind to insurance brokerage fees and commissions, which are often based on the cost of the underlying insurance policy."
A group of multi-cultural professionals discussing the future of insurance services in a modern office.