Here's Why Hardman Johnston Global Equity Strategy Sold UnitedHealth Group Incorporated (UNH)
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."
A senior healthcare professional giving advice to a patient in a clinic.
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.
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.
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