The London Company: Q3 2025 Report Released

The London Company, an investment management firm, announced its investor letter for the third quarter of 2025. U.S. stock indices continued to rise in the third quarter due to Federal Reserve interest rate cuts, strong corporate earnings, and excitement surrounding artificial intelligence (AI). The portfolio saw a gross increase of 6.0% (net 5.8%) in the third quarter, while the Russell 1000 Value Index rose by 5.3%. Positive stock selection contributed to the portfolio's outsized performance over the quarter, although some sector effects partially hindered this. We recommend examining the fund's five most valuable holdings to see the key selections for 2025.

In the third quarter 2025 investor letter, there was a focus on stocks such as UnitedHealth Group Incorporated (NYSE:UNH). UnitedHealth Group Incorporated (NYSE:UNH) is a comprehensive healthcare company operating through segments such as UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. The one-month return of UnitedHealth Group Incorporated (NYSE:UNH) was recorded at -10.57%, with a decline of 44.56% over the last 52 weeks. On November 4, 2025, UnitedHealth Group (NYSE:UNH) shares traded at $330.83 each, with a market capitalization of $299.679 billion.

The London Company Income Equity Strategy stated the following about UnitedHealth Group Incorporated (NYSE:UNH) in its third quarter investor letter: 'Launched: UnitedHealth Group Incorporated (NYSE:UNH) – UNH is the largest and most diversified health insurance provider in the U.S., based on two complementary platforms: UnitedHealthcare, which offers benefits to individuals and employers, and Optum, which provides healthcare, data, and technology solutions. This integrated model gives UNH a unique scale and deep understanding of healthcare costs, providing both efficiency and improved outcomes. A broad network of healthcare providers, local dominance, and data-driven capabilities create lasting competitive advantages and high barriers to entry. Long-term growth is supported by solid Medicare Advantage enrollment for an aging U.S. population. Although short-term high healthcare costs are putting pressure on margins, we believe these barriers are temporary. UNH is repricing its future plans to reflect high costs and is supporting a gradual return to past margin levels. With a recurring revenue base, diversified earnings, and financial strength, UNH offers an attractive downside protection. We see an intriguing opportunity to own a structural growth leader with resilient cash flows at today's valuation.'

UnitedHealth Group Incorporated (NYSE:UNH) ranks 18th on our list of the 30 most popular stocks among Hedge Funds. According to our database, at the end of the second quarter, UnitedHealth Group Incorporated (NYSE:UNH) was held in the portfolios of 159 hedge funds; this number was 139 in the previous quarter. In the third quarter of 2025, UnitedHealth Group Incorporated (NYSE:UNH) generated over $113 billion in revenue, reflecting a 12% year-over-year growth due to domestic membership expansion. While we view UnitedHealth Group Incorporated (NYSE:UNH) as an investment, we believe that some artificial intelligence stocks offer greater upside potential and less downside risk.