The London Company, an investment management company, released “The London Company Income Equity Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities continued their rally in the third quarter, driven by the Fed rate cut, solid corporate earnings, and enthusiasm around AI. In the third quarter, the portfolio appreciated 6.0% gross (5.8% net) compared to a 5.3% increase in the Russell 1000 Value Index. Positive stock section led the outperformance of the portfolio in the quarter, but was partially offset by sector exposure headwinds. Please review the fund’s top 5 holdings to gain insight into their key selections for 2025.
In its third-quarter 2025 investor letter, The London Company Income Equity Strategy 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 -10.57%, and its shares lost 44.56% of their value over the last 52 weeks. On November 4, 2025, UnitedHealth Group Incorporated (NYSE:UNH) stock closed at $330.83 per share, with a market capitalization of $299.679 billion.
The London Company Income Equity Strategy stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its third quarter 2025 investor letter:
“Initiated: UnitedHealth Group Incorporated (NYSE:UNH) – UNH is the largest and most diversified health insurer in the U.S., anchored by two complementary platforms: UnitedHealthcare, which provides benefits to individuals and employers, and Optum, which offers healthcare services, data, and technology solutions. This integrated model gives UNH unmatched scale and insight into healthcare costs, enabling both efficiency and improved outcomes. Its vast provider networks, local dominance, and data-driven capabilities form durable competitive advantages and high barriers to entry. Long-term growth is supported by powerful demographics, as the aging U.S. population drives steady Medicare Advantage enrollment—a core UNH strength. While near-term elevated medical costs have pressured margins and weighed on the stock, we view these headwinds as temporary. UNH is already repricing future plans to reflect higher costs, supporting a gradual return to historical margin levels. With a recurring revenue base, diversified earnings, and financial strength, UNH offers attractive downside protection. At today’s valuation, we see a compelling opportunity to own a structural growth leader with resilient cash flows.”
UnitedHealth Group Incorporated (NYSE:UNH) is in the 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 third quarter of 2025, UnitedHealth Group Incorporated (NYSE:UNH) generated revenues exceeding $113 billion, representing a 12% year-over-year growth due to the expansion of domestic memberships. 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 Baron Health Care Fund’s views on the company. 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.
