Baron Health Care Fund Repurchased UnitedHealth Group Incorporated (UNH) in Q3. Here’s Why

Core Insights - Baron Health Care Fund reported a 5.39% increase in the third quarter of 2025, slightly outperforming the Russell 3000 Health Care Index which gained 5.05% [1] - The fund's performance was impacted by stock selection and negative effects from active sub-industry allocations and cash holdings during a rising market [1] Company Analysis: UnitedHealth Group Incorporated (NYSE:UNH) - UnitedHealth Group's stock experienced a one-month return of -4.80% and a 52-week loss of 38.76%, closing at $341.56 with a market capitalization of $309.398 billion on October 31, 2025 [2] - The company has undergone management changes and reset its earnings guidance for 2025, despite facing challenges such as high medical costs, rate pressure, and government investigations [3] - UnitedHealth Group is recognized for its competitive advantages, including scale, data, and leadership in Medicare Advantage and value-based care, and is currently trading at a near 10-year low relative valuation [3] Financial Performance - In the third quarter of 2025, UnitedHealth Group generated revenues exceeding $113 billion, reflecting a 12% year-over-year growth driven by the expansion of domestic memberships [4] - The company is ranked 18th among the 30 Most Popular Stocks Among Hedge Funds, with 159 hedge fund portfolios holding its shares at the end of the second quarter [4]