Should You Sell Your Holdings in UnitedHealth Group (UNH)?

ClearBridge Investments, an investment management company, released its “ClearBridge Large Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equities continued their upward journey in the third quarter with the S&P 500 Index surging 8.1% and tech-heavy Nasdaq Composite rising 11.2% to record highs. Investor optimism was driven by favorable tariff results, the One Big Beautiful Bill in July, expected interest rate cuts, and strong corporate earnings, particularly in technology and the Magnificent Seven. The benchmark Russell 1000 Growth Index rose 10.5% for the quarter. The strategy delivered solid absolute performance in the quarter but underperformed the benchmark. Underexposure to perceived AI winners and holding several names deemed by investors to be AI losers led to the underperformance. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, ClearBridge Large Cap Growth Strategy 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 14.21%, and its shares lost 39.07% of their value over the last 52 weeks. On October 03, 2025, UnitedHealth Group Incorporated (NYSE:UNH) stock closed at $360.20 per share, with a market capitalization of $326.224 billion.

ClearBridge Large Cap Growth Strategy stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its third quarter 2025 investor letter:

"The health care sector is facing a myriad of questions around underlying spending levels, tariff concerns and regulatory risks. After trimming managed care provider UnitedHealth Group Incorporated (NYSE:UNH) regularly over the last three quarters, we fully exited the position in July following remarks from returning CEO Stephen Helmsley about a turnaround plan that indicated the path to recovery will be protracted."

UnitedHealth Group Incorporated (NYSE:UNH) is in the 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 top long-term stocks to invest in according to David Tepper. 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.