Distillate Capital, an investment management firm, released its fourth quarter 2022 investor letter, a copy of the same can be downloaded here. At the end of the fourth quarter, Distillate’s U.S. FSV strategy declined 10.58% on a total return basis net of fees compared to a decline of 18.11% for the S&P 500 benchmark. Better relative performance for Distillate’s SMID QV strategy continued into 2022 with a decline of 8.64% on a total return net-of-fee basis, significantly ahead of a comparable decline of 20.49% for the Russell 2000 ETF and -14.67% for the Russell 2000 Value ETF. On the other hand, Distillate’s Intl. FSV strategy again lagged its MSCI ACWI Ex-US benchmark in 2022, while the Distillate’s U.S. FSV strategy’s free cash flow to market cap yield valuation of 7.2% compares very favorably to 5.1% for the same measure for the S&P 500. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
In its Q3 2022 investor letter, Distillate Capital mentioned UnitedHealth Group Incorporated (NYSE:UNH) and explained its insights for the company. Founded in 1977, UnitedHealth Group Incorporated (NYSE:UNH) is a Minnetonka, Minnesota-based multinational managed healthcare and insurance company with a $445.9 billion market capitalization. UnitedHealth Group Incorporated (NYSE:UNH) delivered a -9.98% return since the beginning of the year, while its 12-month returns are down by -3.27%. The stock closed at $475.24 per share on February 6, 2023.
Here is what Distillate Capital has to say about UnitedHealth Group Incorporated (NYSE:UNH) in its Q3 2022 investor letter:
“The largest sector change in the rebalance was a six-percentage point increase in technology. The biggest component of this increase was the introduction of a 4% weight in Apple, which is discussed further below. Offsetting this increased tech weight was a 3-percentage point decrease in industrials and a two-percentage point decline in health care. The biggest reductions in weight were UnitedHealth Group Incorporated (NYSE:UNH), which is capped at a 2% weight as it ranks in the bottom quartile of the fund by valuation.”
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Our calculations show that UnitedHealth Group Incorporated (NYSE:UNH) ranks 14th on our list of the 30 Most Popular Stocks Among Hedge Funds. UnitedHealth Group Incorporated (NYSE:UNH) was in 110 hedge fund portfolios at the end of the second quarter of 2022, compared to 91 funds in the previous quarter. UnitedHealth Group Incorporated (NYSE:UNH) delivered a -13.70% return in the past 3 months.
In December 2022, we also shared another hedge fund’s views on UnitedHealth Group Incorporated (NYSE:UNH) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q4 2022 page.
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Disclosure: None. This article is originally published at Insider Monkey.
