Sands Capital’s Q2 2025 investor letter highlights U.S. large-cap growth equities’ strong recovery with a 27.7% return, outperforming the Russell 1000 Growth Index. The letter credits this performance to muted inflation, strong corporate earnings, and positive sentiment in AI and global trade.

One of Sands Capital’s top picks, Arthur J. Gallagher & Co. (NYSE: AJG), saw a one-month return of -3.85% and a 2.21% loss over 52 weeks. On September 15, 2025, AJG closed at $289.40 per share, with a market cap of $74.191 billion.

Arthur J. Gallagher & Co. (NYSE: AJG) is the largest middle-market commercial insurance broker in the U.S., experiencing share price declines due to commercial property rate drops. Despite this, the company maintained strong organic growth of 9.5% and executed well in its brokerage segment and reinsurance placements.

62 hedge fund portfolios held Arthur J. Gallagher & Co. (AJG) by the end of Q2 2025, up from 52 in the previous quarter. While acknowledging AJG’s investment potential, Sands Capital believes certain AI stocks offer greater upside potential and lower downside risk. For a list of stocks hedge funds are selling in 2025, visit another article on the topic.

Read more at Yahoo Finance: Is Arthur J. Gallagher (AJG) Positioned for Long-Term Growth?