Here’s Why UnitedHealth Group (UNH) is on the Hotchkis & Wiley Large Cap Disciplined Value Fund’s Contributors’ List

Hotchkis & Wiley, an investment management company, released its “Hotchkis & Wiley Large Cap Disciplined Value Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The S&P 500 rose 10.9% in Q2 2025, despite recent volatility. After the “liberation day” tariff announcement on April 2, the index plunged over 12% in four days. The market rebounded from this low, nearly +25% over the next ~11 weeks, to finish the quarter at an all-time high. In this environment, the fund performed in line with the Russell 1000 Value Index and returned 3.37% vs. 3.79% for the index. Please review the fund’s top 5 holdings to gain insight into their key selections for 2025.

In its second-quarter 2025 investor letter, Hotchkis & Wiley Large Cap Disciplined Value 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 -15.12%, and its shares lost 54.69% of their value over the last 52 weeks. On July 29, 2025, UnitedHealth Group Incorporated (NYSE:UNH) stock closed at $261.07 per share, with a market capitalization of $236.827 billion.

Hotchkis & Wiley Large Cap Disciplined Value Fund stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its second quarter 2025 investor letter:

UnitedHealth Group Incorporated (NYSE:UNH) is a large US health insurer. Until very recently, UNH traded at a material premium to its peers, reflecting its status as a premium growth stock with momentum. We did not own the stock. However, recent negative headlines, combined with the first earnings miss in 10 years, resulted in a >50% selloff in the company’s shares. This decline contributed positively to the strategy’s relative performance vs. the index, where UNH was a meaningful weight. We purchased UNH shares after the selloff at what we believe is a compelling valuation.”

UnitedHealth Group’s (UNH) Healthcare Dominance: A Key Player in the Dogs of the Dow

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 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 the list most undervalued blue-chip stocks to buy according to hedge funds. Polen Focus Growth Strategy sold its stake in UnitedHealth Group Incorporated (NYSE:UNH) during Q2 2025 due to reduced guidance. 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.