Here’s What Impacted Centene Corporation (CNC) in Q3

Oakmark Funds, advised by Harris Associates, released its “Oakmark Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund underperformed its benchmark, the S&P 500 Index, but outperformed the benchmark since inception. The largest contributors to performance were financials and energy, at the sector level, while health care and consumer staples detracted. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Oakmark Fund highlighted stocks such as Centene Corporation (NYSE:CNC). Centene Corporation (NYSE:CNC) is a healthcare enterprise that offers services to under-insured and uninsured families and commercial organizations. The one-month return of Centene Corporation (NYSE:CNC) was 12.92%, and its shares lost 48.16% of their value over the last 52 weeks. On October 9, 2025, Centene Corporation (NYSE:CNC) stock closed at $37.83 per share, with a market capitalization of $18.432 billion.

Oakmark Fund stated the following regarding Centene Corporation (NYSE:CNC) in its third quarter 2025 investor letter:

“Centene Corporation (NYSE:CNC) was the top detractor during the quarter. The U.S.-headquartered managed care company’s stock price declined after it withdrew its 2025 earnings per share guidance and subsequently reinstated it at a much lower level. This negative revision was caused by cost pressure in the company’s Medicaid and Marketplace businesses. While today’s valuation seems to imply that the headwinds impacting Centene are structural, we believe they’re attributable to temporary factors and expect a meaningful earnings recovery in the coming years.”

Centene (CNC) Falls 11.1% on Investor Caution Ahead of Q2

Centene Corporation (NYSE:CNC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 59 hedge fund portfolios held Centene Corporation (NYSE:CNC) at the end of the second quarter, compared to 64 in the previous quarter.  While we acknowledge the risk and potential of Centene Corporation (NYSE:CNC) 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 Centene Corporation (NYSE:CNC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Centene Corporation (NYSE:CNC) and shared the list of lowest PE ratio S&P 500 stocks. In addition, please check out our hedge fund investor letters Q3 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.