President Donald Trump, via his policies and social media platforms, has great influence over the stock market. And his latest broadside against the nation’s health insurers is worthy of attention. Trump's Nov. 18 Truth Social post slammed “big, fat, rich insurance companies” and the Affordable Care Act subsidies they receive. Trump has long wanted to end the Affordable Care Act, or Obamacare. However, the ACA subsidies are a contentious issue at present, as Marketplace tax credits are set to expire at th ...

Market Performance - The US equity market continued its rally in Q3 2025, with the S&P 500 returning 8.1% and the Russell 1000 Value surging 5.3% [1] - The SCCM Value Equity Strategy returned 6.9% (gross) and 6.8% (net) in the same quarter, outperforming the Russell 1000 Value's 5.3% return but underperforming the S&P 500's 8.1% return [1] - Year-to-date, the strategy returned 13.0% (gross), compared to Russell 1000 Value's +11.7% and S&P 500's +14.8% [1] UnitedHealth Group Overview - UnitedHealth Group Incorporated (NYSE:UNH) is a diversified healthcare company with segments including UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx [2] - The stock experienced a one-month return of -13.25% and a 52-week loss of 47.78%, closing at $313.58 with a market capitalization of $284.053 billion on November 18, 2025 [2] Investment Strategy and Challenges - UnitedHealth was purchased in the Value strategy during Q3 2025, recognized as the largest diversified managed care organization in the US [3] - The company's vertically integrated model combines insurance, pharmacy benefit management, data analytics, and provider services, providing a durable cost advantage and network effects [3] - Under previous leadership, the company faced challenges due to aggressive expansion and higher-than-expected medical costs, leading to a decline in earnings [3] - A multi-year turnaround is underway under new leadership, with a focus on cultural reform and operational discipline, aiming for at least $16 in adjusted EPS for 2025 [3] - Strategic actions include repricing for higher medical trends, exiting certain Medicare Advantage plans, narrowing networks, and a conservative approach to ACA participation [3] - Optum Health has reduced its 2025 new patient growth target to 300K and expects nearly $1 billion in cost reductions in 2026 [3]

Core Insights - P3 Health Partners reported continued operational progress and expansion of its Care Enablement Model, with a projected EBITDA expansion opportunity of $120 to $170 million, positioning the company for sustainable profitability in 2026 and beyond [2][4]. Financial Performance - For Q3 2025, P3 Health Partners had approximately 116,000 at-risk members, a 10% decrease from the previous year, attributed to intentional network and payer rationalization [5]. - Total revenue for the quarter was $345.3 million, reflecting a 5% decrease compared to the same quarter last year, primarily due to the reduction in membership and unfavorable mid-year settlement adjustments [5]. - The medical margin for Q3 2025 was $4.4 million, or $13 PMPM, with stable underlying medical cost trends when normalized for prior-year items [5][23]. - Adjusted EBITDA loss for the quarter was $45.9 million, or $132 PMPM, with a year-to-date normalized adjusted EBITDA loss of $70.1 million, or $67 PMPM [5][21]. Revised Fiscal Guidance - The company revised its fiscal 2025 guidance, projecting total revenues between $1.4 billion and $1.45 billion, with an adjusted EBITDA loss expected to range from $(110) million to $(95) million [4][6]. - The medical margin is anticipated to be between $67 million and $82 million for the year, with a per-member-per-month (PMPM) medical margin ranging from $48 to $59 [4]. Conference Call Announcement - Management will host a conference call and webcast on November 14, 2025, at 8:00 AM ET to discuss the financial results and operational updates [7]. Company Overview - P3 Health Partners is a physician-led population health management company with a network of over 2,700 affiliated primary care providers across four states, focusing on value-based care coordination to improve patient outcomes and lower costs [8].

Core Insights - Health Net has renewed a $1 million grant to LA Family Housing for the second consecutive year, supporting efforts to secure permanent affordable housing for individuals experiencing homelessness in Los Angeles County [2][3] - The renewed funding aims to deepen the partnership between Health Net and LA Family Housing, enhancing systems for whole-person care and increasing access to stable housing [3][5] Funding and Impact - The grant will enable LA Family Housing to expand its housing portfolio, maintain partnerships with 190 landlords, and engage 35 additional property partners [5][6] - LA Family Housing exceeded its targets by acquiring 458 housing units, achieving 183% of its goal, and engaging 190 landlords, which is 146% of its target [4] Future Plans - LA Family Housing plans to host 12 housing events throughout the year and aims to place 250 individuals into permanent homes [5] - The partnership will also fund training to share unit-acquisition strategies with other service providers, enhancing community impact [6] Broader Commitment - From 2020 to 2025, Health Net has committed over $247 million to community-based organizations, demonstrating a long-term investment in addressing homelessness and supporting community health initiatives [7]

Industry Overview - Health insurance companies are facing volatility due to President Trump's renewed criticism of the Affordable Care Act (ACA), labeling insurers as "BIG," "BAD," and "money sucking" [1] - Market tension was observed on November 10, affecting major companies like Centene, Oscar Health, and Elevance Health, as well as larger firms such as UnitedHealth Group, Humana, and CVS [1] Legislative Context - Trump's remarks coincided with Congress's efforts to resolve the longest government shutdown in U.S. history, with a key debate focusing on the expiration of ACA subsidies [2] - The proposal to transfer funds directly to consumers from the government, bypassing insurers, raises concerns about potential revenue volatility for insurers operating in the marketplace model [2] Company Profile: UnitedHealth Group - UnitedHealth Group, based in Minnetonka, Minnesota, is the largest managed healthcare company in the U.S., with a market capitalization exceeding $291 billion [3] - The company operates through two main segments: UnitedHealthcare (insured segment) and Optum (health services and analytics segment) [3] Stock Performance - Over the past 52 weeks, UnitedHealth's stock has fluctuated between $234.60 and $622.83, with a decline of over 30% noted in 2025 [4] Valuation Metrics - UnitedHealth Group's current valuation shows a price-earnings multiple of 15.43x (TTM) and a forward P/E of 19.88x, indicating a lower valuation compared to its five-year average [5] - The price-sales multiple stands at 0.73x and the price-cash flow multiple at 10.01x, suggesting the company is moderately undervalued relative to its historical valuation and peers like Elevance and Humana [5] - The company maintains a return on equity (ROE) of 19.23% and a profit margin of 3.6%, with a debt-equity ratio of 0.71x, reflecting solid performance within the managed care sector [5]

Core Insights - Health Net has awarded a $100,000 grant to the Sacramento County Office of Education to enhance youth behavioral health and strengthen the local mental health workforce pipeline [1][5]. Group 1: Initiatives Funded - The grant will fund a Peer-to-Peer Mentorship Convening and the development of a Behavioral Health Workforce Map, both created in collaboration with youth leaders and community organizations [2]. - The Peer-to-Peer Mentorship Convening utilized $50,000 of the grant to host an event on October 15, gathering 117 participants to discuss strategies for promoting youth behavioral health [3]. - The remaining $50,000 will support the creation of a web-based Behavioral Health Workforce Map, which will outline academic and employment pathways for aspiring mental health professionals in Sacramento County [4]. Group 2: Organizational Commitment - Health Net's investment aligns with its broader commitment to advancing whole-person care and addressing health drivers, having committed over $247 million from 2020 to 2025 to community-based organizations [5]. - Health Net, a subsidiary of Centene Corporation, serves over three million members in California and emphasizes the importance of accessible health plans and services [6].

Market Environment - Global equities experienced an upward trend during the quarter, with 10 out of 11 GICS sectors showing positive returns. Information technology and financials were the primary contributors, while consumer staples were the only detractor [2] - The U.S. was the main driver of positive market momentum, followed by Japan, while Denmark and Germany slightly detracted from overall performance [2] Portfolio Performance - The portfolio achieved a net return of 1.83% for the reporting period, compared to the MSCI World Index's return of 7.27% [3] Top Contributors - Alibaba Group (BABA) saw significant stock price appreciation due to strong earnings reflecting rapid growth in Chinese AI and healthy revenue growth in its Cloud segment, with expectations for continued momentum [4] - Alphabet (GOOG)(GOOGL) benefited from a favorable ruling in an antitrust case and exceeded second-quarter earnings expectations, with innovations in Google Search driving engagement and revenue [5] - IQVIA Holdings (IQV) experienced stock price appreciation after solid second-quarter results, indicating growth potential in its technology and analytics solutions segment [6] Top Detractors - Charter Communications (CHTR) faced a decline in stock price due to weak second-quarter earnings and a faster-than-expected drop in broadband subscriptions, although ARPU growth accelerated [7] - Centene (CNC) saw its stock price decline after withdrawing and then lowering its 2025 earnings per share guidance due to cost pressures in its Medicaid and Marketplace businesses [8] - CNH Industrial (CNH) reported weak results and reaffirmed guidance amidst challenging conditions, with management expecting a rebound in 2025 and significant margin expansion potential [9] Portfolio Positioning - The company initiated a position in Dassault Systèmes, a French software firm specializing in virtual twin technology, which is expected to drive innovation and cost reduction, despite a nearly 40% decline in share price from its peak [10] Outlook - The company notes a shift in market dynamics, with a decline in U.S. growth/momentum stocks and improved fundamentals in European equities, suggesting a potential for continued investor interest in this region [13]

Core Insights - Concentra has appointed Jason Cooper as Chief Data, Analytics, and Artificial Intelligence Officer to enhance its data strategy and governance, aligning with enterprise growth priorities [1][2] Company Overview - Concentra is the largest provider of occupational health services in the United States, operating 628 occupational health centers and 413 onsite health clinics across 47 states, serving over 50,000 patients daily as of September 30, 2025 [4] Leadership and Expertise - Jason Cooper brings over 25 years of experience in data and technology across various sectors, including roles at L3-Communications, CVS Caremark, and Cigna, which will aid in operationalizing data and accelerating AI adoption at Concentra [2][3] Strategic Focus - The company emphasizes a data-driven approach, focusing on data governance and digital connectivity to enhance its position as an industry leader [3]

Core Insights - Michael Burry has liquidated his position in UnitedHealth Group, selling 350,000 call options valued at approximately $109 million [1][2][4] - UnitedHealth shares have dropped 36% year-to-date, making it one of the worst performers in the Dow Jones Industrial Average [2][4] - The company is facing challenges from rising medical costs and regulatory scrutiny, impacting its profitability [2][7] Company Overview - UnitedHealth Group has a market capitalization of $300 billion and operates through four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx [5] - The company reported adjusted earnings of $2.92 per share in Q3 2025, exceeding estimates, with a 12% year-over-year sales growth to $113 billion [6] - The medical care ratio has declined to 89.9% from 85.2% over the last 12 months, indicating some improvement in cost management [6] Financial Performance - UnitedHealth's stock is down nearly 50% from its all-time highs, offering a forward yield of nearly 3%, appealing to value and income investors [6] - Management is implementing extensive measures to restore profitability after facing mispricing issues that led to elevated medical cost trends throughout 2025 [7] - The Medicare Advantage business is experiencing a full-year trend of approximately 7.5%, while Medicare Supplement products are exceeding 11% [7]

Core Insights - Superior HealthPlan and Centene Foundation announced a $400,000 investment to combat food insecurity in Texas, addressing challenges faced by families in accessing nutritious meals due to disruptions in essential nutrition programs [1][2][5] - The investment will support nine food banks across Texas, continuing Superior HealthPlan's commitment to assist those in need and promote long-term solutions to hunger [2][3] - Centene Foundation's broader commitment includes a total of $1.5 million aimed at food banks and community organizations nationwide, particularly as they prepare for winter amid rising demand for food assistance [4][5] Investment Details - The $400,000 investment will enhance access to healthy food for communities in Texas, reflecting a strategic response to increased food insecurity affecting approximately 47.4 million people in the U.S., including 13.8 million children [1][2] - This funding is part of Centene's larger initiative, which included a $77.1 million investment in food security across multiple states in 2024, showcasing a commitment to addressing social factors that impact health outcomes [6] Organizational Commitment - Superior HealthPlan has been serving families in Texas for over 25 years, emphasizing the importance of local food banks in meeting community needs during times of increased demand [3][5] - Centene's Medicaid plans include food and nutrition intervention programs, with over 95% of plans offering such services, highlighting the company's focus on food access as a critical health priority [5][6] Supported Organizations - The investment will benefit the following food banks in Texas: Central Texas Food Bank, Coastal Bend Food Bank, East Texas Food Bank, El Pasoans Fighting Hunger, Food Bank of the Rio Grande Valley, Houston Food Bank, San Antonio Food Bank, South Plains Food Bank, and South Texas Food Bank [7]