Investing in hedge funds can bring large profits, but it’s not for everybody, since hedge funds are available only for high-net-worth individuals. They generate significant returns for investors to justify their large fees and they allocate a lot of time and employ a complex analysis to determine the best stocks to invest in. A particularly interesting group of stocks that hedge funds like is the small-caps. The huge amount of capital does not allow hedge funds to invest a lot in small-caps, but our research showed that their most popular small-cap ideas are less efficiently priced and generate stronger returns than their large- and mega-cap picks and the broader market. That is why we follow the hedge fund activity in the small-cap space.
UnitedHealth Group Inc. (NYSE:UNH) has experienced a decrease in support from the world’s most elite money managers in recent months. UNH was in 51 hedge funds’ portfolios at the end of September. There were 61 hedge funds in our database with UNH holdings at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM), CVS Caremark Corporation (NYSE:CVS), and Allergan, Inc. (NYSE:AGN) to gather more data points.
Keeping this in mind, let’s view the fresh action encompassing UnitedHealth Group Inc. (NYSE:UNH).
How are hedge funds trading UnitedHealth Group Inc. (NYSE:UNH)?
At the end of the third quarter, a total of 51 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -16% from the previous quarter. With hedge funds’ capital changing hands, there exists a select group of key hedge fund managers who were upping their stakes significantly (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Boykin Curry’s Eagle Capital Management has the most valuable position in UnitedHealth Group Inc. (NYSE:UNH), worth close to $880.5 million, amounting to 3.9% of its total 13F portfolio. Sitting at the No. 2 spot is Cliff Asness of AQR Capital Management, with a $531.2 million position; 1.1% of its 13F portfolio is allocated to the stock. Some other professional money managers that hold long positions comprise Ken Griffin’s Citadel Investment Group, Christopher James’s Partner Fund Management and Phill Gross and Robert Atchinson’s Adage Capital Management.