Do You Believe in the Growth potential of UnitedHealth Group Incorporated (UNH)?

LRT Capital Management, an investment management company, released its “LRT Global Opportunities Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy leverages a systematic long/short approach to generate positive returns while effectively controlling downside risks and maintaining low net exposure to the equity markets. In September, the strategy returned -8.00% (net), and the YTD return was -0.17%. It was a challenging month for the strategy, as the market indexes surged, with a select few highly overvalued mega-cap stocks, while the rest of the market declined. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, LRT Global Opportunities 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 3.36%, and its shares lost 38.16% of their value over the last 52 weeks. On October 6, 2025, UnitedHealth Group Incorporated (NYSE:UNH) stock closed at $358.82 per share, with a market capitalization of $326.636 billion.

LRT Global Opportunities Strategy stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its third quarter 2025 investor letter:

"UnitedHealth Group Incorporated (NYSE:UNH) stands as the premier, category-defining enterprise in the United States healthcare sector. The company has built an unparalleled competitive moat by uniquely combining a dominant health benefits platform, UnitedHealthcare, with a rapidly growing and diversified health services business, Optum. This integrated model creates a powerful, self reinforcing ecosystem that is fundamentally reshaping the delivery and management of healthcare, establishing UnitedHealth as a truly elite and durable compounding enterprise.

The foundation of the company’s strength begins with UnitedHealthcare, the nation’s largest private health insurer. Its immense scale provides significant and sustainable cost advantages, affording it superior negotiating power with healthcare providers and the ability to spread administrative costs over a massive membership base. This allows the company to offer competitive and attractive benefit plans while generating consistent, predictable cash flows. This benefits business serves as both a stable foundation and a vast data-gathering engine for the entire enterprise…” (Click here to read the full text)

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 ClearBridge Large Cap Growth Strategy's views on the company. In addition, please check out our hedge fund investor letters Q3 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.