Mairs & Power, an investment advisor, released the “Mairs & Power Balanced Fund” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The quarter started with tariff uncertainty, conflicts in the Middle East, rising national debt, and the worst start to a year for the dollar; however, it bounced back to rise 25% from that low by the end of the quarter. The fund returned 2.66% in the first half of 2025. The fund underperformed the benchmark composite indexes (60% S&P 500 Total Return Index and 40% Bloomberg U.S. Government/Credit Bond Index), which were up 5.43% and the Morningstar Moderate Allocation peer group, which rose 5.67%. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its second-quarter 2025 investor letter, Mairs & Power Balanced Fund highlighted stocks such as UnitedHealth Group Incorporated (NYSE:UNH). UnitedHealth Group Incorporated (NYSE:UNH) is a diversified healthcare company that operates through UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx segments. The one-month return of UnitedHealth Group Incorporated (NYSE:UNH) was 13.60%, and its shares lost 40.66% of their value over the last 52 weeks. On September 22, 2025, UnitedHealth Group Incorporated (NYSE:UNH) stock closed at $341.30 per share, with a market capitalization of $309.106 billion.
Mairs & Power Balanced Fund stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its second quarter 2025 investor letter:
“The Fund’s overweight to the Health Care sector, combined with its exposure to specific names in the sector, negatively impacted relative performance during the first half of 2025. UnitedHealth Group Incorporated (NYSE:UNH) had a surprising decline in the first six months of 2025 as the company mispriced its business and saw an abrupt management change. The company is likely to fix its pricing issues for new members, while it has some work to improve its Medicare Advantage managed care business. In mid-May, the company’s CEO left rather abruptly while the previous CEO, Stephen Hemsley, is leaving retirement to “steady the ship.” It also suspended its earnings guidance, creating unease among market participants. The company still has an enviable earnings profile and historically has proven its ability to manage through temporary disturbances. We are holding our UnitedHealth position in the Balanced Fund and have not adjusted the Fund’s position in the company since the most recent set of news.”
UnitedHealth Group Incorporated (NYSE:UNH) is in 18th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 159 hedge fund portfolios held UnitedHealth Group Incorporated (NYSE:UNH) at the end of the second quarter, which was 139 in the previous quarter. In the second quarter of 2025, UnitedHealth Group Incorporated (NYSE:UNH) reported revenues of nearly $112 billion, up 13% over the prior year’s quarter. While we acknowledge the potential of UnitedHealth Group Incorporated (NYSE:UNH) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
