Here's What Lifted UnitedHealth Group (UNH) in Q3

Investment management company Vulcan Value Partners recently released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The third quarter was a good one for the portfolios. The absolute performance was positive across all the strategies, while the relative performance lagged. In the quarter, the Large Cap Composite returned 4.6% net of fees and expenses, the Small Cap Composite returned 4.1% net, the Focus Composite returned 3.7% net, the Focus Plus composite returned 3.7% and the All-Cap Composite returned 5.5% net. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its third-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 7.86%, and its shares lost 36.20% of their value over the last 52 weeks. On October 15, 2025, UnitedHealth Group Incorporated (NYSE:UNH) stock closed at $361.15 per share, with a market capitalization of $327.084 billion.

Vulcan Value Partners stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its third quarter 2025 investor letter:

"As a reminder, we purchased UnitedHealth Group Incorporated (NYSE:UNH) in the second quarter after its stock had declined from approximately $600 per share to under $300 per share. Our estimated value remained stable. In late July, UnitedHealth Group issued its revised 2025 financial guidance which was poorly received by the market. During the second week of September, UnitedHealth Group made several announcements that were positively received by investors. The company reaffirmed its 2025 guidance. It also disclosed that based on preliminary review, 78% of its Medicare Advantage membership will be in 4 star or higher plans for Star Year 2026/Payment Year 2027, which is consistent with historical performance."

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 the best defensive dividend stocks to invest in. In its Q3 2025 investor letter, LRT Global Opportunities Strategy shared its insights on UnitedHealth Group Incorporated (NYSE:UNH). 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.