"Billionaire investors were quite active in the second quarter, with many of the big names going after a relatively narrow basket of stocks. Undoubtedly, great minds tend to think alike, especially in the world of investment. If one investment legend perceives deep value to be had in a specific stock, there's a good chance that others might also see an opportunity to get a steep discount to intrinsic value."
"Undoubtedly, the stock imploded back in April and May, crashing by over 60% at its worst point. And while many of the smart money managers may still be in the red on their initial positions, I don't think UNH stock will cease to be a hedge fund favorite by year's end unless, of course, the stock recovers all of the ground it lost in the first half of 2025."
"And while it's impossible to know what the smart money has done with their positions (perhaps they added to their stakes in the third quarter, trimmed, or sold out) until the next round of 13-F filings, I do think that some of the more recent developments suggest that there's still value and perhaps near-term upside to be had in the stock."
Several billionaire investors initiated or increased positions in UnitedHealth Group (NYSE:UNH) during the second quarter. UNH shares plunged by over 60% in April and May before recovering more than 36% from August lows. The stock's valuation trades near a 14.5 trailing price-to-earnings multiple, presenting a value opportunity relative to large-cap peers. Technical patterns, including a possible inverse head-and-shoulders formation, suggest potential further upside. Many hedge funds may presently show unrealized losses on initial positions, but recent developments indicate persistent attractiveness to smart-money managers and possible near-term recovery.
Read at 24/7 Wall St.
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