Bretton Fund: UnitedHealth Group Incorporated (UNH) had a Quarter from Hell

Bretton Capital Management, an investment management company, released the “Bretton Fund” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 2.70% compared to 10.94% for the S&P 500 Index. The firm’s focus on fundamentals rather than market sentiment left the fund behind the market rally driven by the president’s backing down from extreme tariff threats. The fund’s underperformers, like Berkshire Hathaway and AutoZone, declined not due to operational issues but due to being seen as “safe stocks.” In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, Bretton Fund 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 14.31%, and its shares lost 39.88% of their value over the last 52 weeks. On September 25, 2025, UnitedHealth Group Incorporated (NYSE:UNH) stock closed at $345.56 per share, with a market capitalization of $312.965 billion.

Bretton Fund stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its second quarter 2025 investor letter:

“But the biggest hit to the fund this quarter had nothing to do with tariffs or a trade war. UnitedHealth Group Incorporated’s (NYSE:UNH)stock dropped by almost half this quarter, which took off 2.0% from the fund, and we discuss in full below.

UNH had a quarter from hell. On April 11, its stock closed at $599. About a month later, it lost over half its value, closing at $274. If the sudden evaporation of 55% of the rm’s market capitalization was simply a matter of animal spirits resetting and the underlying business was unaffected, we might, with great effort, convince ourselves that this was merely a particularly dramatic display of the random walk of Wall Street.

That is not what happened. In January, the company announced its 2024 results and a rmed its earnings guidance for the current year, projecting adjusted earnings would grow 7% in 2025. That was a lower-than-ideal growth rate, but the company was seeing greater healthcare utilization and dealing with unfavorable changes in Medicare payment rates…” (Click here to read the full text)

UnitedHealth Group (UNH): A Healthcare Powerhouse Among Dividend Paying Stocks

UnitedHealth Group Incorporated (NYSE:UNH) is in 18th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 159 hedge fund portfolios held UnitedHealth Group Incorporated (NYSE:UNH) at the end of the second quarter, which was 139 in the previous quarter. In the second quarter of 2025, UnitedHealth Group Incorporated (NYSE:UNH) reported revenues of nearly $112 billion, up 13% over the prior year’s quarter. While we acknowledge the risk and potential of UnitedHealth Group Incorporated (NYSE:UNH) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than UnitedHealth Group Incorporated (NYSE:UNH) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered UnitedHealth Group Incorporated (NYSE:UNH) and shared PGIM Jennison Health Sciences Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.