Sustainable Growth Advisers (SGA), an investment management company, launched its second-quarter 2026 investor letter for its “U.S. Large Cap Growth Strategy.” The letter can be downloaded here. SGA focuses on building high-conviction portfolios of high quality growth companies expected to obtain mid-teens earnings growth with less variability. Their investment strategy goals to defend and compound consumer capital. In Q2, the SGA U.S. LCG Portfolio returned 6.8% (Gross) and 6.6% (Net), underperforming the Russell 1000 Growth Index’s 16.7% return and the S&P 500 Index’s 15.2% return. The underperformance was pushed by momentum market dynamics and the disparity between AI CapEx beneficiaries and other market segments. The firm stays assured in the portfolio’s basic resilience and draw back safety during market dips and is poised for a shift in market management dynamics, with projected income growth of 14% and earnings growth of 19% over the next three years. The portfolio valuations are at favorable ranges, suggesting sturdy potential for future efficiency. Also, test the fund’s prime 5 holdings to see its best picks in 2026.
In its second-quarter 2026 investor letter, SGA U.S. Large Cap Growth Strategy highlighted Aon plc (NYSE:AON). Aon plc (NYSE:AON), a skilled companies firm offering risk management, insurance coverage brokerage, and human capital consulting options to organizations, was liquidated from the Strategy’s holdings during the quarter. On September 04, 2026, Aon plc (NYSE:AON) closed at $323.09 per share. Over the previous month, Aon plc (NYSE:AON) declined 9.49%, and its shares lost 12.68% over the previous 52 weeks. Aon plc (NYSE:AON) has a market capitalization of $68.54 billion.
SGA U.S. Large Cap Growth Strategy acknowledged the following regarding Aon plc (NYSE:AON) in its Q2 2026 investor letter:
“We liquidated our position in Aon plc (NYSE:AON) during the quarter. Aon continues to execute well operationally and has outperformed peers during a period of softer insurance pricing. The backdrop has become less favorable as the insurance industry entered a softer phase following several years of strong property insurance pricing driven by inflation and elevated catastrophe losses. As pricing has moderated, revenue growth across the brokerage industry has come under pressure, creating a headwind for firms whose revenues are tied to insurance premiums. Although Aon has navigated this environment better than competitors and we continue to view the underlying business as high-quality and resilient, we exited the position and reallocated the funds to a more attractive long-term growth opportunity in Arista Networks.”