Mairs & Power, an investment advisor, released the fourth-quarter 2025 investor letter for the “Mairs & Power Growth Fund.” A copy of the letter is available for download here. In 2025, artificial intelligence (AI) and market concentration dominated the market. Increased investment in technology and AI infrastructure drove rising valuations and corporate spending, leading to bubble-like tendencies. However, easing inflation, a Federal Reserve rate cut in Q4, and resilient corporate earnings provided some optimism. In this environment, the fund underperformed both the S&P 500 Total Return (TR) and its peer group, the Morningstar Large Blend index, with a 10.54% gain compared to 17.88% and 15.55%, respectively, for the indexes. In 2025, stock selection proved challenging, though it has traditionally yielded favorable long-term results for shareholders. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Mairs & Power Growth Fund highlighted stocks like UnitedHealth Group Incorporated (NYSE:UNH). UnitedHealth Group Incorporated (NYSE:UNH) is a multinational health benefits company based in Eden Prairie, Minnesota. On April 02, 2026, UnitedHealth Group Incorporated (NYSE:UNH) stock closed at $277.26 per share. One-month return of UnitedHealth Group Incorporated (NYSE:UNH) was -3.22%, and its shares lost 47.19% over the past 52 weeks. UnitedHealth Group Incorporated (NYSE:UNH) has a market capitalization of $251.662 billion.
Mairs & Power Growth Fund stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its fourth quarter 2025 investor letter:
“While stock selection has historically delivered positive long-term results for our shareholders, it was a notable headwind in 2025, with Fiserv (FI) and UnitedHealth Group Incorporated (NYSE:UNH) standing out as prominent detractors from relative performance. Despite their recent pullbacks, both positions remain substantial long-term winners, appreciating more than 300% and 100%, respectively, since our initial investments.
Both companies experienced significant execution missteps that ultimately resulted in weaker-than-expected reported fundamentals. Although we had been trimming these positions due to stretched valuations and growing concerns around leadership uncertainty, in hindsight we should have acted more decisively in reducing our exposure to these names.
That said, we believe the challenges at both companies are largely self-inflicted operational issues rather than structural impairments to their franchises. In short, the problems appear fixable but will take time to resolve. We are therefore comfortable maintaining our current positions and believe patient capital will ultimately be rewarded as execution improves…” (Click here to read the full text)
UnitedHealth Group Incorporated (NYSE:UNH) is in 14th position on our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 145 hedge fund portfolios held UnitedHealth Group Incorporated (NYSE:UNH) at the end of the fourth quarter, up from 140 in the previous quarter. In 2025, UnitedHealth Group Incorporated (NYSE:UNH) reported revenues of nearly $448 billion reflecting 12% increase from 2024. 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 a list of dirt-cheap stocks to buy with $1000. In addition, please check out our hedge fund investor letters Q4 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.
