Here's What Pulled Down UnitedHealth (UNH) in Q2

Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Growth & Income Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The stock market experienced another period of volatility in the second quarter. As of April 8, the S&P 500 Index had declined more than 11% for the quarter but rebounded swiftly as tariff worries diminished, closing with a gain of 10.9% and reaching new all-time highs. The quarter was led by growth as the Russell 1000 Growth Index outperformed the Russell 1000 Value Index. Momentum and earnings growth were the two most positive factors during the quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, Carillon Eagle Growth & Income Fund 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 21.77%, and its shares lost 48.63% of their value over the last 52 weeks. On August 27, 2025, UnitedHealth Group Incorporated (NYSE:UNH) stock closed at $303.88 per share, with a market capitalization of $275.216 billion.

Carillon Eagle Growth & Income Fund stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its second quarter 2025 investor letter:

"UnitedHealth Group Incorporated (NYSE:UNH) announced the exit of CEO Andrew Witty and suspended 2025 guidance due to accelerating cost trends in its Medicare business. This was the second guidance cut in less than a month. The stock also came under pressure following two news reports criticizing its medical management practices and alleging that the U.S. Department of Justice is conducting a criminal investigation into United’s Medicare Advantage business. Fundamentally, we are frustrated by United’s inability to accurately forecast utilization for 2025, and we believe a change in leadership was warranted. However, we note that insurance is a short-cycle business and are optimistic that the company should be able to reprice its offerings for 2026 and recapture much of the lost 2025 earnings in relatively short order."

UnitedHealth Group Incorporated (NYSE:UNH) is in 18th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 159 hedge fund portfolios held UnitedHealth Group Incorporated (NYSE:UNH) at the end of the second quarter, which was 139 in the previous quarter. In the second quarter of 2025, UnitedHealth Group Incorporated (NYSE:UNH) reported revenues of nearly $112 billion, up 13% over the prior year’s quarter. While we acknowledge the potential of UnitedHealth Group Incorporated (NYSE: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 Jim Cramer shed light on. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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