Here's Why Hardman Johnston Global Equity Strategy Sold UnitedHealth Group Incorporated (UNH)

Hardman Johnston Global Advisors, an investment management company, released its “Hardman Johnston Global Equity Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here.  The strategy returned 0.43%, net of fees, in the quarter compared to -1.32% for the MSCI AC World Net Index. The Portfolio experienced a solid quarter relative to the market, despite a volatile environment. Industrials and Consumer Discretionary were the top sector contributors, while Information Technology and Energy detracted.  Europe was the top contributor from a regional standpoint, while emerging markets detracted. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Hardman Johnston Global Equity 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 3.57%, and its shares lost 37.39% of their value over the last 52 weeks. On June 30, 2025, UnitedHealth Group Incorporated (NYSE:UNH) stock closed at $311.97 per share, with a market capitalization of $283 billion.

Hardman Johnston Global Equity Strategy stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its Q1 2025 investor letter:

"We liquidated our position in UnitedHealth Group Incorporated (NYSE:UNH) due to the risk around bipartisan support for Pharmacy Benefit Manager reform in DC, as well as the negative news cycle after the murder of their CEO. In addition, they are a company that is likely to be affected by the Department of Government Efficiency cuts to Medicaid and Medicare."

UnitedHealth Group Incorporated (NYSE:UNH) is in 18th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 139 hedge fund portfolios held UnitedHealth Group Incorporated (NYSE:UNH) at the end of the first quarter, which was 150 in the previous quarter. While we acknowledge the potential of UnitedHealth Group Incorporated (NYSE:UNH) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered UnitedHealth Group Incorporated (NYSE:UNH) and shared the list of set-it-and-forget-it stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of 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.

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