Baron Funds, an investment management firm, released its “Baron Durable Advantage Fund” first quarter 2023 investor letter, a copy of which can be downloaded here. The Baron Durable Advantage Fund gained 16.0% during the first quarter, compared favorably to its S&P 500 benchmark which earned a 7.5% return for the same period. Spare some time to check the fund’s top 5 holdings to know more about their top bets for 2023.
In its Q1 2023 investor letter, Baron Durable Advantage Fund mentioned UnitedHealth Group Inc. (NYSE:UNH) and explained its insights for the company. Founded in 1977, UnitedHealth Group Inc. (NYSE:UNH) is a Minnetonka, Minnesota-based insurance company with a $456.3 billion market capitalization. UnitedHealth Group Inc. (NYSE:UNH) delivered a -7.58% return since the beginning of the year, while its 12-month returns are up by 6.11%. The stock closed at $492.59 per share on June 12, 2023.
Here is what Baron Durable Advantage Fund has to say about UnitedHealth Group Inc. (NYSE:UNH) in its Q1 2023 investor letter:
“UnitedHealth Group Incorporated is the leading health care franchise in the U.S., with more than $350 billion in annual revenue. Following relatively strong performance in 2022, shares corrected 10.1% during the first quarter, along with other managed-care companies, primarily on sector rotation. Despite solid fourth-quarter results with 12% year-over-year revenue growth, 19% EPS growth, and a conservative initial 2023 guidance that fell within its 12% to 15% long-term earnings growth goal, investors stepped to the sidelines on concerns about proposed changes to the Medicare audit program, preliminary 2024 Medicare Advantage (MA) rates, and the impact of Medicaid recertification. We believe UnitedHealth is the best-positioned managed-care player, with a leading franchise in MA, the market’s fastest growing segment. We expect continued strong growth and profitability, driven by positive demographic trends, effective cost management through economies of scale, industry-leading technology investments, enhanced expertise in population health, and a growing portfolio of providers, all of which enables UnitedHealth to keep and effectively manage more of its health care spending in-house.”
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Our calculations show that UnitedHealth Group Inc. (NYSE:UNH) ranks 14th on our list of the 30 Most Popular Stocks Among Hedge Funds. UnitedHealth Group Inc. (NYSE:UNH) was in 116 hedge fund portfolios at the end of the first quarter of 2023, compared to 110 funds in the previous quarter. UnitedHealth Group Inc. (NYSE:UNH) delivered a 5.47% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q1 2023 page.
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Disclosure: None. This article is originally published at Insider Monkey.
