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

Cullen Capital Management, LLC, operating under the name Schafer Cullen Capital Management, Inc. (SCCM), has released its “SCCM Enhanced Equity Income Fund” fourth-quarter investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the US equity market continued to rally, largely fueled by enthusiasm for artificial intelligence. The Enhanced Equity Income Strategy returned 2.0% (net) for the fourth quarter and 7.5% (net) for the year, compared to 6.5% and 8.9% from its primary benchmark, the S&P 500 Buy/Write Index, and 1.4% and 8.7% for its secondary benchmark, the SPDR Barclays High Yield Bond ETF (JNK), respectively.  The Strategy's total return was significantly affected by investors' disregard for high-dividend and low-volatility factors, as well as an equity market that failed to expand across sectors. The Strategy anticipates a positive economic outlook for 2026, driven by the Federal Reserve's interest-rate cuts, tax reductions, capital-expenditure bonus depreciation (OBBBA), and potential lower tariffs, all contributing to growth. In addition, please check the Strategy’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, SCCM Enhanced Equity Income Fund highlighted stocks like UnitedHealth Group Incorporated (NYSE:UNH). UnitedHealth Group Incorporated (NYSE:UNH) is a multinational health benefits company based in Eden Prairie, Minnesota. On February 25, 2026, UnitedHealth Group Incorporated (NYSE:UNH) stock closed at $284.20 per share. One-month return of UnitedHealth Group Incorporated (NYSE:UNH) was -2.77%, and its shares lost 39.35% over the past 52 weeks. UnitedHealth Group Incorporated (NYSE:UNH) has a market capitalization of $257.439 billion.

SCCM Enhanced Equity Income Fund stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its fourth quarter 2025 investor letter:

"Shares of UnitedHealth Group Incorporated (NYSE:UNH) were purchased in the strategy during the quarter. UnitedHealth is the largest diversified managed care organization in the US, with leading positions across commercial insurance, Medicare Advantage, Medicaid, and a differentiated healthcare services platform through Optum. After a period of elevated medical cost trends, management has taken proactive steps to reset margins and improve earnings quality, including disciplined repricing, targeted cost actions, and selective portfolio rationalization. Within Medicare Advantage, the company expects to reduce membership by approximately 1 million lives in 2026 to prioritize profitability and restore margin discipline. At Optum Health, management is restructuring the business, including a roughly 10% reduction in value-based care exposure, to improve sustainability and align with long-term margin objectives. As these actions take effect and investments normalize, UnitedHealth’s scale, diversified revenue streams, and integrated Optum platform position the company for improving profitability and more consistent earnings growth over time. UNH trades at 19.9x 2026 EPS with a 2.6% dividend yield."

UnitedHealth Group Incorporated (NYSE:UNH) is in 18th position on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 145 hedge fund portfolios held UnitedHealth Group Incorporated (NYSE:UNH) at the end of the fourth quarter, up from 140 in the previous 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 a list of cheap blue-chip stocks to buy according to analysts. Aristotle Growth Equity Fund sold UnitedHealth Group Incorporated (NYSE:UNH) in Q4 2025, due to guidance cuts, higher medical costs, a leadership change and the expectation that earnings may take years to recover. In addition, please check out our hedge fund investor letters Q4 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.