Here’s What Hit UnitedHealth Group’s (UNH) Performance

Core Insights - ClearBridge Investments released its fourth-quarter 2025 investor letter for the ClearBridge Large Cap Growth Strategy, emphasizing an investment philosophy focused on undervalued leading companies with growth potential [1] - Large-cap stocks showed strength in the quarter, driven by strong earnings from mega-cap companies and enthusiasm for generative AI, although the ClearBridge strategy underperformed the Russell 1000 Growth Index by approximately 900 basis points for the year [1] - The underperformance was attributed to underweight exposure to mega-cap AI beneficiaries and lower-quality AI-related names, with a quarterly lag of about 170 basis points [1] Company-Specific Insights - UnitedHealth Group Incorporated (NYSE:UNH) was highlighted in the investor letter, with a one-month return of 1.48% and a 52-week loss of 34.85%, closing at $341.70 per share on January 7, 2026, with a market capitalization of $309.525 billion [2] - The performance of UnitedHealth was disappointing, with the stock losing about half its value in 2025 due to negative sentiment and mismanagement, leading the company to exit the position in August [3] - Despite a long-term track record of solid returns, the company faced challenges in disclosure and execution issues, ultimately leading to a loss of confidence in its ability to navigate a turnaround under new leadership [3]