7. UnitedHealth Group Inc. (NYSE:UNH)
No of Hedge Funds: 89
Total Value of Hedge Fund Holdings: $8 Billion
UnitedHealth Group Inc. owns and manages organized health systems. It is one of the largest healthcare companies in the world. The company is committed to leading in the development of a next-generation health system.
During the third quarter of 2020, the company reported a revenue of $65.1 billion which grew 8% led by 21% growth at Optum.
UnitedHealth Group, Inc. has been the choice of many investors because of its good track record. Last October, we published an article related on Nomadic Value Investment Partners’ positive support for UNH. Here they mentioned:
“We upsized United Health (UNH) for a couple of reasons. First, the company has performed amazingly well despite the pandemic. It is estimated that 70% of UNH’s patient flow is already directed under VBC arrangements and >50% of patients are seeing internally employed physicians5. During stay-in-place, UNH was able to continue business as usual for this substantial portion of its patient base by retooling in-person physicians to be virtual care physicians”
6. Salesforce.com Inc (NYSE:CRM)
No of Hedge Funds: 106
Total Value of Hedge Fund Holdings: $11 Billion
Salesforce.com Inc is an American cloud-based company considered as the number one platform that’s bringing artificial intelligence to everyone. The company provides customer relationship management (CRM) service and also a complementary suite application that focuses on customer services and alike.
Salesforce.com, inc. (NYSE:CRM) was in 106 hedge funds’ portfolios at the end of the third quarter of 2020.
The total fiscal 2020 revenue of the company was $17.1 billion which is up 29% year-over-year and 29% in constant currency. Polen Capital talked about CRM in its Q3 investor letter. Here is what they said:
“We think Salesforce.com is a good example of a dynamic we are seeing in this “new normal.” Today, our software businesses that are almost entirely cloud-based and subscription revenue models are proving to be highly resilient even in difficult economic times. In fact, across our software holdings, we are seeing extremely high retention rates and continued robust revenue growth even through the pandemic and recession.
We typically speak of the balance of growth and safety that we seek in our Portfolios. In the past, the safety-like holdings were slower growth and more consumer or healthcare-oriented businesses.
Much of this is because cloud subscription businesses, by nature, are more stable and recurring so long as the underlying services being provided remain mission critical to customers, which is exactly the point. Software businesses often already had network effects and monopoly or oligopoly like market structures in place. The subscription model can add the additional benefits of more stability through economic cycles and less piracy. We believe combining mission critical offerings with highly recurring business models can make these companies “new safeties.”
Click to continue reading and see the 5 best blue chip stocks to buy now.
Suggested Articles:
- 10 Best Growth Stocks To Buy According to Ray Dalio
- 30 Most Popular Stocks Among Hedge Funds
- 10 Best Lithium and Battery Stocks To Buy Now
Disclosure: None. 15 Best Blue Chip Stocks to Buy Now is originally published at Insider Monkey.
