Will the Trade Tensions Affect United Airlines Holdings (UAL)?

TCW funds, an investment management company, released its “TCW Relative Value Mid Cap Fundsecond-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter started with a sharp decline driven by the Liberation Day tariffs announcement by President Trump, but a 90-day pause on certain tariffs led to a strong recovery, propelling the S&P 500 and Nasdaq to new highs. U.S. equities continued to rise in May and June, supported by better-than-expected corporate results and positive jobs reports. Against this backdrop, the fund (I share) returned 7.37% in the quarter compared to 5.35% for the Russell Midcap® Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, TCW Relative Value Mid Cap Fund highlighted stocks such as United Airlines Holdings, Inc. (NASDAQ:UAL). United Airlines Holdings, Inc. (NASDAQ:UAL) is an airline company that transports people and cargo through its mainline and regional fleets. The one-month return of United Airlines Holdings, Inc. (NASDAQ:UAL) was -11.03%, and its shares gained 60.13% of their value over the last 52 weeks. On October 2, 2025, United Airlines Holdings, Inc. (NASDAQ:UAL) stock closed at $94.83 per share, with a market capitalization of $30.7 billion.

TCW Relative Value Mid Cap Fund stated the following regarding United Airlines Holdings, Inc. (NASDAQ:UAL) in its second quarter 2025 investor letter:

“United Airlines Holdings, Inc. (NASDAQ:UAL), headquartered in Chicago, IL, is a major airliner that operates an extensive domestic and international route across the U.S. and six continents. Over the course of the investment, the company has modernized its fleet, increased its gauge, improved the customer experience through its UnitedNext premium experience across not only business class but premium economy and economy too. As UAL has the largest trans-Pacific exposure of all U.S. carriers, we believe emerging risk to its this business segment could reasonably emerge due to expected pressure amid trade tensions between the U.S. and Asia/Pacific economies. As a result of this risk, the position was eliminated.”

United Airlines Holdings Inc (UAL): Get With The Program, Says Jim Cramer

United Airlines Holdings, Inc. (NASDAQ:UAL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 73 hedge fund portfolios held United Airlines Holdings, Inc. (NASDAQ:UAL) at the end of the second quarter, up from 67 in the previous quarter. While we acknowledge the risk and potential of United Airlines Holdings, Inc. (NASDAQ:UAL) 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 United Airlines Holdings, Inc. (NASDAQ:UAL) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered United Airlines Holdings, Inc. (NASDAQ:UAL) and shared the list of cheap travel stocks to buy according to analysts. 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.