Marsh & McLennan Companies (MMC) Shares Fell in Q2. Here’s Why

Soumya Eswaran

Mon, Jul 7, 2025, 6:27 AM 3 min read

ClearBridge Investments, an investment management company, released its “ClearBridge Large Cap Growth Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the growth stocks rebounded from tariff uncertainty, with technology and communication services sectors leading in the return to a risk-on environment. The S&P 500 Index returned 10.9% in the quarter, while the technology-heavy NASDAQ Composite soared 17.7%. The benchmark, the Russell 1000 Growth Index, rose 17.8% in the quarter, outperforming the Russell 1000 Value Index. Against this backdrop, the strategy underperformed its benchmark in the second quarter. IT and communication services sectors contributed to the performance while the health care sector detracted. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, ClearBridge Large Cap Growth Strategy highlighted stocks such as Marsh & McLennan Companies, Inc. (NYSE:MMC). Marsh & McLennan Companies, Inc. (NYSE:MMC) is a professional services company that provides advisory services and insurance solutions. The one-month return of Marsh & McLennan Companies, Inc. (NYSE:MMC) was -6.49%, and its shares gained 1.26% of their value over the last 52 weeks. On July 3, 2025, Marsh & McLennan Companies, Inc. (NYSE:MMC) stock closed at $215.08 per share, with a market capitalization of $105.976 billion.

ClearBridge Large Cap Growth Strategy stated the following regarding Marsh & McLennan Companies, Inc. (NYSE:MMC) in its second quarter 2025 investor letter:

"We were also disappointed with the weak quarterly performance of several of our more defensive, countercyclical holdings. Shares of insurance broker Marsh & McLennan Companies, Inc. (NYSE:MMC), meanwhile, fell due to the unwind of the flight to quality trade that occurred during the prior quarter along with concern around a softer insurance pricing environment."

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Marsh & McLennan Companies, Inc. (NYSE:MMC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held Marsh & McLennan Companies, Inc. (NYSE:MMC) at the end of the first quarter, compared to 69 in the fourth quarter. Marsh & McLennan Companies, Inc.'s (NYSE:MMC) first quarter revenue increased 9% to $7.1 billion. While we acknowledge the potential of Marsh & McLennan Companies, Inc. (NYSE:MMC) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.