Here's Why Matrix Asset Advisors Sold Its Position in Union Pacific Corporation (UNP)

Matrix Asset Advisors, an asset management company, released its Q3 2025 investor letter. A copy of the letter can be downloaded here. The stock market continued its recovery from the April lows, gaining +8.12% in the third quarter and +14.83% YTD. The Matrix Large Cap Value strategy delivered a strong performance in the third quarter, which modestly outperformed the S&P 500® gain and was significantly ahead of the Russell 1000 Value® Index. Following a strong first half of the year, the Matrix Dividend Income (MDI) portfolio delivered another strong quarter. While this quarter's performance lagged behind the Russell 1000 Value® Index and the S&P 500 over the past three months, the results for the nine months ending September 30 were robust, showing gains in the low teens. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Matrix Asset Advisors highlighted stocks such as Union Pacific Corporation (NYSE:UNP). Union Pacific Corporation (NYSE:UNP) is a US-based railroad company. The one-month return of Union Pacific Corporation (NYSE:UNP) was 2.12%, and its shares lost 8.74% of their value over the last 52 weeks. On November 20, 2025, Union Pacific Corporation (NYSE:UNP) stock closed at $221.21 per share, with a market capitalization of $131.213 billion.

Matrix Asset Advisors stated the following regarding Union Pacific Corporation (NYSE:UNP) in its third quarter 2025 investor letter:

"We sold the position in Union Pacific Corporation (NYSE:UNP) for a profit after it announced a deal to buy Norfolk Southern using its shares and cash. While we expect the combination of the two railroads to be a long-term positive for UNP, the timing of the deal closure is uncertain and likely to take 12 to 18 months. In our experience, the shares of the acquiring company often remain in stock market limbo until after the deal is finalized. We took our gains and reinvested the proceeds in better near-term investment opportunities."

Union Pacific Corporation (NYSE:UNP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 89 hedge fund portfolios held Union Pacific Corporation (NYSE:UNP) at the end of the second quarter, up from 85 in the previous quarter.  While we acknowledge the potential of Union Pacific Corporation (NYSE:UNP) 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 Union Pacific Corporation (NYSE:UNP) and shared Bretton Fund'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.