Matrix Asset Advisors Exited its Position in UnitedHealth Group (UNH). Here’s Why

Matrix Asset Advisors, an asset management company, released its Q2 2025 investor letter. A copy of the letter can be downloaded here. The stock market rallied +10.94% in Q2 after falling -4.27% in the first quarter of 2025. Moreover, the market was up +6.20% for the year-to-date through June 30. Matrix’s equity portfolios performed well in both Q2 and for the year-to-date through June 30. The Matrix Dividend Income (MDI) portfolio delivered another strong quarter, while the Large Cap Value (LCV) portfolio, with more technology exposure, fully participated in the market’s rebound, ending the quarter higher for the first six months of the year. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Matrix Asset Advisors 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 -13.49%, and its shares lost 56.05% of their value over the last 52 weeks. On August 11, 2025, UnitedHealth Group Incorporated (NYSE:UNH) stock closed at $252.37 per share, with a market capitalization of $228.935 billion.

Matrix Asset Advisors stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its second quarter 2025 investor letter:

“We sold UnitedHealth Group Incorporated (NYSE:UNH) to free up funds for other attractive investment opportunities and because of our concerns that their business model was facing a more difficult future. In hindsight this was a timely sale as the shares dropped more than 50% from our sale price when the company reported a big earnings miss in mid April due to higher than anticipated medical claims costs and then a few weeks later in May suspended earnings guidance and announced the departure of its CEO for personal reasons.”

Looking for Stability? UnitedHealth Group (UNH) Incorporated is a Timeless Buy and Hold Stock

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. 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 the list of most profitable NYSE stocks to buy. 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.