5 Stocks Getting Attention of Elite Hedge Funds

2. UnitedHealth Group Incorporated (NYSE: UNH)

Number of Hedge Fund Holders: 105  

UnitedHealth Group Incorporated (NYSE: UNH) is placed second on our list of 10 stocks getting the attention of elite hedge funds. The firm operates as a diversified healthcare firm. It is headquartered in Minnesota. 

On July 16, investment advisory Stephens reiterated an Overweight rating on UnitedHealth Group Incorporated (NYSE: UNH) stock and raised the price target to $460 from $440, appreciating the solid earnings reported by the firm for the second quarter of 2021. 

At the end of the second quarter of 2021, 105 hedge funds in the database of Insider Monkey held stakes worth $13 billion in UnitedHealth Group Incorporated (NYSE: UNH), up from 89 in the preceding quarter worth $12 billion. 

In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and UnitedHealth Group Incorporated (NYSE: UNH) was one of them. Here is what the fund said:

“A good way to conceptualize how we think about portfolio construction is to picture a pyramid. At the bottom of the pyramid are the durable compounding growth companies that form the strong foundation, resilience and consistency for the Strategy. We think these companies should comprise just under half of portfolio assets and feature annual revenue growth rates ranging from two times GDP up to 20% as well as healthy free cash flow generation.

UnitedHealth Group, a name we have owned in the Strategy since 1992, is a good example of a long-term compounder, having grown its revenue base from approximately $600 million to north of $260 billion over that time frame. It remains constantly focused on investing in new growth drivers such as telemedicine and health care analytics. Broadcom and Comcast have delivered similar long-term appreciation through a combination of organic growth, capital deployment into new and adjacent opportunities through merger and acquisition activity as well as returning capital to shareholders through buybacks and dividends.”