Wedgewood Partners, an investment management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, Wedgewood Composite’s net return was 7.1% compared to the Standard & Poor’s 10.9%, the Russell 1000 Growth Index’s 17.8%, and the Russell 1000 Value Index’s 3.8% return for the same period. In addition, you can check the fund’s best 5 holdings to know its best picks in 2025.
In its second quarter 2025 investor letter, Wedgewood Partners 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 -4.62%, and its shares lost 49.04% of their value over the last 52 weeks. On July 17, 2025, UnitedHealth Group Incorporated (NYSE:UNH) stock closed at $288.07 per share, with a market capitalization of $261.32 billion.
Wedgewood Partners stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its second quarter 2025 investor letter:
“UnitedHealth Group Incorporated (NYSE:UNH) was a leading detractor from performance during the quarter. Medical costs in their key Medicare Advantage business are spiking as the Company uncharacteristically misjudged the morbidity of its newest members. Additionally, there was another rare miss for what we believed was the “Tiffany” health care operator, which fumbled their execution at Optum Health. This oversight led to the Company pulling their 2025 earnings guidance along with the turnover of key management, including their CEO. We were surprised by the severity of this miss along with the execution missteps, and we decided to liquidate our holdings because the long-term, double-digit growth trajectory of the Company has been thrown into question.”
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 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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