Heartland Advisors released its Q3 2025 investor letter for the Heartland Mid Cap Value Fund, reporting a 1.63% increase, below the Russell Midcap® Value Index’s 6.18% gain. Stock selection was the main factor in underperformance, as large- and mid-cap growth stocks surged on optimism about the AI boom and rising electricity demand.

Centene Corporation (NYSE:CNC) was highlighted in the letter, with a one-month return of 9.56% and a 52-week loss of 50.95%. The stock closed at $35.76 per share on October 10, 2025, with a market capitalization of $17.563 billion. The company provides healthcare services to under-insured and uninsured families and commercial organizations.

In the Q3 2025 investor letter, Heartland Mid Cap Value Fund discussed Centene Corporation (NYSE:CNC) as the worst-performing holding due to policy-induced risk pool shifts in ACA Healthcare Exchanges, leading to profit margin impacts and an early earnings cut announcement. Management’s actions to address these challenges have helped the stock recover from a sharp selloff.

Centene Corporation (NYSE:CNC) is not among the 30 Most Popular Stocks Among Hedge Funds, with 59 hedge fund portfolios holding the stock at the end of Q2. While acknowledging Centene’s potential, some AI stocks are seen as offering greater upside potential with lower downside risk. Investors are encouraged to explore other investment opportunities in the AI sector.

Read more at Yahoo Finance: A Policy-Induced Risk Pool Shift Impacted Centene (CNC) in Q3