Here’s Why Mairs & Power Balanced Fund Continues to Hold UnitedHealth Group (UNH)

Core Insights - The Mairs & Power Balanced Fund reported a return of 6.47% in the first nine months of 2025, underperforming benchmark indexes which increased by 11.35% and 10.73% respectively [1] - The fund's performance was negatively impacted by its overweight position in the healthcare sector, particularly due to the underperformance of UnitedHealth Group Incorporated [3] Company Overview - UnitedHealth Group Incorporated operates through segments including UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx [2] - The company’s stock closed at $328.37 on December 10, 2025, with a market capitalization of $293.13 billion [2] Performance Analysis - UnitedHealth Group's one-month return was -1.25%, and it experienced a significant decline of 36.33% over the last 52 weeks [2] - The company faced higher than expected medical loss ratios, leading to a decline in earnings expectations [3] Strategic Outlook - The company is expected to address pricing issues for new members and improve its Medicare Advantage managed care business [3] - Despite recent challenges, UnitedHealth has a strong earnings profile and a history of managing through temporary disturbances [3] Investment Sentiment - UnitedHealth Group was held by 140 hedge fund portfolios at the end of Q3 2025, a decrease from 159 in the previous quarter [4] - The company generated revenues exceeding $113 billion in Q3 2025, reflecting a 12% year-over-year growth due to domestic membership expansion [4]