Baron Health Care Fund Repurchases UnitedHealth Shares on Depressed Valuation

Overview

• In its Q3 2025 investor letter, Baron disclosed it bought back UnitedHealth stock after recent setbacks, noting a management change and a reset to 2025 earnings guidance.
• Baron says the shares trade near a 10-year low on relative valuation with room for multiple expansion as earnings recover from depressed levels.
• UnitedHealth reported third‑quarter revenue above $113 billion, a 12% year‑over‑year increase driven by growth in domestic memberships.
• The letter flags elevated medical cost trends, rate pressure, potential PBM reform, and government investigations as ongoing risks, yet underscores advantages in scale, data, vertical integration via Optum, and leadership in Medicare Advantage and value‑based care.
• Despite strong top‑line growth, the stock is down 38.76% over 12 months and 4.80% over the past month, closing at $341.56 on Oct. 31 with a market value of about $309.4 billion.