Here’s Why Mairs & Power Balanced Fund Continues to Hold UnitedHealth Group (UNH)

5 days ago 3

Soumya Eswaran

Thu, December 11, 2025 astatine 8:34 AM CST 3 min read

Mairs & Power, an concern advisor, released the third-quarter 2025 capitalist missive for the “Mairs & Power Balanced Fund.” A transcript of the missive tin beryllium downloaded here. As we determination into 2025, the market’s attraction persists, with a fewer ascendant mega-cap stocks tied to artificial quality (AI) driving astir of the favorable outcomes. The money returned 6.47% successful the archetypal 9 months of 2025. The money underperformed the benchmark composite indexes (60% S&P 500 Total Return Index and 40% Bloomberg U.S. Government/Credit Bond Index), which were up 11.35% and the Morningstar Moderate Allocation adjacent group, which roseate 10.73%. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its third-quarter 2025 capitalist letter, Mairs & Power Balanced Fund highlighted stocks specified arsenic UnitedHealth Group Incorporated (NYSE:UNH). UnitedHealth Group Incorporated (NYSE:UNH) is simply a diversified healthcare institution that operates done UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx segments. The one-month instrumentality of UnitedHealth Group Incorporated (NYSE:UNH) was -1.25%, and its shares mislaid 36.33% of their worth implicit the past 52 weeks. On December 10, 2025, UnitedHealth Group Incorporated (NYSE:UNH) banal closed astatine $328.37 per share, with a marketplace capitalization of $293.13 billion.

Mairs & Power Balanced Fund stated the pursuing regarding UnitedHealth Group Incorporated (NYSE:UNH) successful its 3rd 4th 2025 capitalist letter:

"The Fund’s overweight to Health Care, combined with its vulnerability to circumstantial names successful the sector, negatively impacted comparative show during the archetypal 9 months of 2025. UnitedHealth Group Incorporated (NYSE:UNH) lagged during the play arsenic the institution experienced higher than expected aesculapian nonaccomplishment ratios which led to a important diminution successful net expectations. The institution is apt to hole its pricing issues for caller members, portion it has immoderate enactment up to amended its Medicare Advantage managed attraction business. In addition, the institution experienced an abrupt absorption alteration erstwhile it announced that erstwhile CEO Stephen Hemsley would instrumentality to the relation to “steady the ship.” The institution inactive has an enviable net illustration and historically has demonstrated an quality to negociate done impermanent disturbances. We proceed to clasp our UnitedHealth presumption and volition look to adhd erstwhile valuation opportunities contiguous themselves."

The Case for UnitedHealth Group (UNH) arsenic a Cash-Rich Dividend Stock

UnitedHealth Group Incorporated (NYSE:UNH) is successful the 18th presumption connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 140 hedge money portfolios held UnitedHealth Group Incorporated (NYSE:UNH) astatine the extremity of the 3rd quarter, which was 159 successful the erstwhile quarter. In the 3rd 4th of 2025, UnitedHealth Group Incorporated (NYSE:UNH) generated revenues exceeding $113 billion, representing a 12% year-over-year maturation owed to the enlargement of home memberships. While we admit the imaginable of UnitedHealth Group Incorporated (NYSE:UNH) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.