Here's Why Oscar Health (OSCR) Traded Down in Q3

Longleaf Partners, managed by Southeastern Asset Management, released its “Small-Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 2.03% in the third quarter, compared with the Russell 3000’s 8.18% and the Russell 2000’s 12.39%. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Longleaf Partners Small-Cap Fund highlighted stocks such as Oscar Health, Inc. (NYSE:OSCR). Oscar Health, Inc. (NYSE:OSCR) is a US-based healthcare technology company. The one-month return of Oscar Health, Inc. (NYSE:OSCR) was -2.97%, and its shares lost 7.45% of their value over the last 52 weeks. On December 01, 2025, Oscar Health, Inc. (NYSE:OSCR) stock closed at $16.65 per share, with a market capitalization of $4.794 billion.

Longleaf Partners Small-Cap Fund stated the following regarding Oscar Health, Inc. (NYSE:OSCR) in its third quarter 2025 investor letter:

"Oscar Health, Inc. (NYSE:OSCR) – Healthcare insurance company Oscar reversed course from being a contributor last quarter to a detractor this quarter. We wrote to you in our previous letter about the shifts in sentiment and how we sold shares into the positive feelings at the end of the second quarter when the stock went over $20 per share. July ended up being a rough month for Oscar and its industry as claims losses were much worse than expected in the first half of the year. Oscar was unfortunately unable to lose much less than others because of the way this unique market works, and this hurt our appraisal. As the stock recovered later in the quarter, we sold the rest of our position as our price to value gap had closed. This ended up being a successful overall investment, and we are grateful to our partners at the company for leading it through volatile industry times."

Oscar Health, Inc. (NYSE:OSCR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Oscar Health, Inc. (NYSE:OSCR) at the end of the third quarter, which was 43 in the previous quarter. Oscar Health, Inc. (NYSE:OSCR) reported revenue of approximately $3 billion in Q3 2025, marking a 23% increase year-over-year. While we acknowledge the potential of Oscar Health, Inc. (NYSE:OSCR) 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 Oscar Health, Inc. (NYSE:OSCR) and shared the list of stocks Jim Cramer discussed. Longleaf Partners Small-Cap Fund trimmed its stake in Oscar Health, Inc. (NYSE:OSCR) in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.