Vulcan Value Partners Added its Position in UnitedHealth Group (UNH) in Q2

Investment management company Vulcan Value Partners recently released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The firm does not focus on short-term outcomes, whether positive or negative, and believes it can enhance the potential long-term returns and reduce risk. In the quarter, the Large Cap Composite returned 7.0% net of fees and expenses, the Small Cap Composite returned 6.7% net, the Focus Composite returned 9.5% net, the Focus Plus composite returned 8.8% and the All-Cap Composite returned 8.1% net. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its second quarter 2025 investor letter, Vulcan Value Partners highlighted stocks such as UnitedHealth Group Incorporated (NYSE:UNH). UnitedHealth Group Incorporated (NYSE:UNH) is a diversified healthcare company that operates through UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx segments. The one-month return of UnitedHealth Group Incorporated (NYSE:UNH) was -4.79%, and its shares lost 48.98% of their value over the last 52 weeks. On July 16, 2025, UnitedHealth Group Incorporated (NYSE:UNH) stock closed at $292.49 per share, with a market capitalization of $265.329 billion.

Cooper Investors Global Equities Fund stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its second quarter 2025 investor letter:

"We purchased two positions during the quarter: Ares Management Corp. and UnitedHealth Group Incorporated (NYSE:UNH). We have owned UnitedHealth Group successfully a number of times in our Large Cap portfolio. We are gratified to be able to purchase it in our Focus portfolio. In April, UnitedHealth Group lowered its earnings guidance for the year. In mid-May, UnitedHealth Group withdrew its revised 2025 guidance and announced that its CEO Andrew Witty was resigning. Additionally, headlines and news flow on UnitedHealth Group have remained negative. Over the course of a month, its stock price declined by more than 50%. This spike of volatility gave us the opportunity to follow our discipline and add the company to our portfolio.

There is no doubt that 2025 will prove to be a challenging year for UnitedHealth Group. The company is undergoing operational challenges across both its Medicare Advantage and Optum Health businesses. Management believes these challenges are largely within their own control. At its core, health insurance is a short-tail business that can be repriced annually. CEO Andrew Witty is being replaced by the chairman and former CEO from 2006-2017, Stephen Hemsley. We believe that Stephen Hemsley and his team will restore some much-needed operational rigor to the company. While we recognize the company’s exposure to government policy risk, we believe that the company’s value remains stable."

UnitedHealth Group Incorporated (NYSE:UNH) is in 18th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 139 hedge fund portfolios held UnitedHealth Group Incorporated (NYSE:UNH) at the end of the first quarter, which was 150 in the previous quarter. While we acknowledge the potential of UNH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered UnitedHealth Group Incorporated (NYSE:UNH) and shared the list of stocks on Jim Cramer’s radar. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.