Should You Invest in Humana (HUM)?

Ariel Investments, an investment management company, released its “Ariel Global Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global equities rallied in the third quarter, driven by AI enthusiasm, resilient corporate earnings, the first U.S. rate cut of the year, and targeted policy easing across key regions. Against this backdrop, the Ariel Global fund traded +4.99% higher in the quarter, compared to the +7.62% return of the MSCI ACWI Index and +6.13% return of the MSCI ACWI Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Ariel Global Fund highlighted stocks such as Humana Inc. (NYSE:HUM). Humana Inc. (NYSE:HUM) offers medical and specialty insurance products. The one-month return of Humana Inc. (NYSE:HUM) was -18.64%, and its shares lost 20.37% of their value over the last 52 weeks. On November 18, 2025, Humana Inc. (NYSE:HUM) stock closed at $234.10 per share with a market capitalization of $28.156 billion.

Ariel Global Fund stated the following regarding Humana Inc. (NYSE:HUM) in its third quarter 2025 investor letter:

“We initiated a position in Humana Inc. (NYSE:HUM), a US-based health insurer focused on Medicare Advantage (MA), Medicaid, and specialty healthcare services. Its largest MA plan, H5216— representing 47% of revenue—was downgraded from 4.5 to 3.5 Stars in 2025, impacting eligibility for federal bonus payments in 2026. However, with 2027 Star ratings due in October, we believe Humana has a strong chance of regaining its higher rating, which would restore access to quality-based federal bonuses.”

Is Humana Inc. (HUM) The Top Falling Stock with Unusual Volume?

Humana Inc. (NYSE:HUM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 69 hedge fund portfolios held Humana Inc. (NYSE:HUM) at the end of the second quarter, compared to 73 in the previous quarter.  While we acknowledge the risk and potential of Humana Inc. (NYSE:HUM) 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 Humana Inc. (NYSE:HUM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Humana Inc. (NYSE:HUM) and shared the list of stocks with low beta that can beat market volatility. 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.