UnitedHealth Group (UNH) Fell Due to Earnings Miss and Lowered Guidance

Janus Henderson Investors, an investment management company, released its “Janus Henderson Forty Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 19.34% in the second quarter, compared to the Russell 1000 Growth Index’s 17.84% return.  Stock selection in the information technology and industrials sectors contributed to the relative performance of the fund in the quarter, while stock selection and an overweight in healthcare detracted. US equities delivered strong results in the second quarter despite early tariff worries in April. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Janus Henderson Forty 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 28.59%, and its shares lost 47.50% of their value over the last 52 weeks. On August 29, 2025, UnitedHealth Group Incorporated (NYSE:UNH) stock closed at $309.87 per share, with a market capitalization of $281.619 billion.

Janus Henderson Forty Fund stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its second quarter 2025 investor letter:

"Conversely, healthcare selection and an overweight position detracted from relative performance. The sector remains challenged due to government policy uncertainty and initiatives to encourage domestic drug manufacturing. UnitedHealth Group Incorporated (NYSE:UNH) was a top relative detractor. The company missed earnings expectations and lowered financial guidance twice during the quarter, citing unexpectedly high medical costs and stronger-than anticipated Medicare Advantage demand. Its Optum Health unit also came under pressure as patients required more intensive care, compounded by ongoing Medicare funding cuts. The company appointed a new CEO who previously led UnitedHealth successfully for a decade. Despite recent challenges, we have confidence in new management and believe the company maintains its structural scale and data competitive advantages that should allow market share gains over time."

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 Carillon Eagle Growth & Income Fund's views on the company. 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.