In this article, we discuss 5 stocks that Jim Simons’ quant hedge fund is selling. If you want our detailed analysis of these stocks, go directly to Jim Simons’ Quant Hedge Fund Is Selling These 10 Stocks.
5. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 95
UnitedHealth Group Incorporated (NYSE:UNH) is a multinational insurance and managed healthcare company based in Minnetonka, Minnesota. Renaissance Technologies started building a stake in UnitedHealth Group Incorporated (NYSE:UNH) back in Q4 2010, and the fund sold out of its position in the company multiple times over the years. In Q2 2021, Jim Simons’ fund purchased 394,435 shares of UnitedHealth Group Incorporated (NYSE:UNH), worth roughly $158 million, which it discarded in the third quarter of 2021.
On December 2, UnitedHealth Group Incorporated (NYSE:UNH) declared a $1.45 per share quarterly dividend, in line with previous. The dividend was paid on December 14, to shareholders of record on December 6.
UnitedHealth Group Incorporated (NYSE:UNH) reported its Q4 results on January 19, posting earnings per share of $4.48, exceeding estimates by $0.17. The $73.74 billion revenue was up 12.64% year-on-year, outperforming estimates by $774.36 million.
SVB Leerink analyst Whit Mayo on January 26 raised the price target on UnitedHealth to $550 from $480 and kept an Outperform rating on the shares. The analyst noted that results from Q4 were largely as expected. Against potential fading COVID and political risks, Mayo can see the UnitedHealth Group Incorporated (NYSE:UNH) stock pushing a premium against the S&P 500.
A total of 95 hedge funds were bullish on UnitedHealth Group Incorporated (NYSE:UNH) in the third quarter of 2021, down from 105 funds in the quarter earlier. Rajiv Jain’s GQG Partners held 3.6 million UnitedHealth Group Incorporated (NYSE:UNH) shares in Q3 2021, worth $1.4 billion. GQG Partners was the biggest stakeholder of the company for the period.
Here is what Third Point Management has to say about UnitedHealth Group Incorporated (NYSE:UNH) in its Q3 2021 investor letter:
“UnitedHealth is one of the largest healthcare companies in the world and a market leader in both its insurance and healthcare services (Optum) businesses. We initiated our position during the 2020 Presidential election at a time of heightened political and regulatory uncertainty.
We believe under its new CEO, Andrew Witty, UnitedHealth can not only preserve its market dominance and sustain industry-leading growth rates across most of its key segments but also enter new healthcare services markets. Witty is known as a mission-driven CEO who clearly articulates his view that providing high-quality, affordable health care services is a social good. He receives consistently high marks from former colleagues, and we believe that his leadership approach will ballast and even strengthen UNH’s already impressive management and employee ranks. The insurance and services businesses are synergistic and complementary, which entrenches United’s critical role in care financing, access, and management. This dynamic gives us confidence in the durability of United’s market leadership…” (Click here to see the full text)
