In its Q4 2025 letter, Aristotle Growth Equity Fund reported a 0.95% return, underperforming the Russell 1000 Growth Index’s 1.12%, and disclosed the sale of its UnitedHealth stake. The fund cited multiple guidance reductions as the primary reason for exiting, reflecting lower-than-expected earnings projections.

UnitedHealth experienced higher-than-expected medical cost ratios driven by increased utilization and acuity across insured business lines. These cost pressures forced the company to lower earnings guidance several times last year, signaling potential margin compression in upcoming quarters.

Leadership shifts include the reinstatement of a former CEO and the appointment of a new CFO, marking two top-level changes within a year. These executive transitions, combined with revised profit forecasts, have heightened investor uncertainty about the company’s strategic direction.

Despite a share price rebound of over 50% from early August lows to $284.20 per share on February 25, the stock’s one-month return of -2.8% and 39% decline over the past year highlight persistent volatility. At a market capitalization of $257 billion and trading at a premium multiple, investors anticipate several years for earnings to return to prior levels.