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10 Healthcare Focused Hedge Funds and 5 Top Stock Picks

In this article, we discuss 10 healthcare focused hedge funds and 5 top stock picks. You can read our detailed analysis of the performance of healthcare focused hedge funds and go directly to read 10 Healthcare Focused Hedge Funds and 10 Top Stock Picks.

5. Elevance Health, Inc. (NYSE:ELV)

Number of Hedge Fund Holders: 82

Elevance Health, Inc. (NYSE:ELV) is a health benefits company supporting consumers’ families and communities across care journeys. It serves clients through a portfolio of medical, digital, pharmacy behavioural clinical and care solutions.

Elevance Health, Inc. (NYSE:ELV) has more than doubled in value over the past three years, affirming its status as one of the top stock picks for healthcare-focused hedge funds. According to our database, Elevance Health, Inc. (NYSE:ELV) was owned by 82 hedge funds in the second quarter of 2023. In Q3, Yacktman Asset Management held 387,382 company shares worth $168.67 million and was the prominent stakeholder in Elevance Health, Inc. (NYSE:ELV).

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4. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 87

Eli Lilly and Company (NYSE: LLY) discover, develop and market pharmaceutical products. Its lead product includes Basaglar, Mounjaro and Jardiance, Humalog and Humalog Mix 75/25. It is best known for selling diabetes and cancer drugs, generating billions of dollars. Its lead diabetes drug recorded a 652% jump in sales in Q3 to $1.41 billion. 

While Eli Lilly and Company (NYSE: LLY) is up by about 63% for the year, it remains one of the top stocks for healthcare-focused hedge funds due to its diversified pipeline of drugs. 

According to Insider Monkey’s Q2 2023 database, it was observed that 87 hedge funds held positions in Eli Lilly and Company (NYSE:LLY), marking an increase from 72 in the prior quarter. The combined value of these holdings exceeds $5 billion. Impax Asset Management, led by Ian Simm, stood out as the significant shareholder of the company, possessing 28,708 shares valued at $15.42 million.

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3. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 88

Johnson & Johnson (NYSE:JNJ) makes and sells healthcare products. It is known for providing skin health/beauty products and oral care products. Its pharmaceutical segment offers products for rheumatoid arthritis, psoriatic arthritis, and psoriasis. 

With 88 hedge funds holding stakes, Johnson & Johnson (NYSE:JNJ) remains one of the top stock picks for gaining exposure in the healthcare sector. Among the 910 prominent hedge funds monitored by Insider Monkey, 88 of them possessed Johnson & Johnson (NYSE:JNJ) stock during the second quarter, up from 86 in the preceding quarter. Donald Yacktman’s Yacktman Asset Management emerged as the remarkable shareholder of the company, with 1.52 million shares valued at $237.21 million.

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2. Thermo Fisher Scientific Inc. (NYSE:TMO)

Number of Hedge Fund Holders: 103

Thermo Fisher Scientific Inc. (NYSE:TMO) has always been a top stock pick for healthcare hedge funds, eyeing exposure to life solutions, analytical instruments, speciality diagnostics, and laboratory products. The company offers reagents, instruments, and consumables for biological and medical research. It also provides solutions, including biosciences, genetic sciences, clinical next-generation sequencing, and bio-production to pharmaceutical, biotechnology, agricultural, clinical, and healthcare markets.

Following an analysis of the second-quarter 2023 shareholdings of 910 hedge funds, Insider Monkey identified that 103 of them had invested in Thermo Fisher Scientific Inc. (NYSE:TMO). In Q3 2023, the notable investor in the company is William Von Mueffling’s Cantillon Capital Management, which holds shares worth $457.46 million.

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1. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders: 111

UnitedHealth Group Incorporated (NYSE:UNH) is a diversified healthcare company and one of the top stock picks for healthcare-focused hedge funds. The company offers consumer-oriented health benefit plans and services in addition to care delivery, care management, wellness, and health financial services for consumers.

While the overall healthcare sector is down by about 6%, UnitedHealth Group Incorporated (NYSE:UNH) is up by about 3%, having emerged as a solid defensive play in the sector. The outperformance explains the vast holdings of up to 111 hedge funds. Our list of hedge funds that focus on healthcare has UnitedHealth Group Incorporated (NYSE:UNH) at the top.

Insider Monkey examined Q2 hedge fund portfolios for UnitedHealth Group Incorporated (NYSE:UNH) and identified that 111 hedge funds held positions in the company. Notably, in Q3 2023, Stephen J. Errico’s Locust Wood Capital Advisers was a significant investor in UnitedHealth Group Incorporated (NYSE: UNH), acquiring 217,338 shares valued at $109.58 million.

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Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out our articles on Billionaire Ray Dalio’s 15 Best Stock Picks and Billionaire David Tepper Doesn’t Like Most Stocks But He Likes These 12.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Buy This $3 Stock Now Before the 400% Surge Begins

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.

Since March 2017, my stock picks have returned 16.5% annually. Today, I’ve found an opportunity even bigger than my British American Tobacco call.

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We looked under the cover and realized they were wrong.

We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

While the market panics over a surface-level revenue decline, our PhD-led research shows management has actually surgically cut $100 million in waste to focus on high-margin growth.

This pattern is a hallmark of our 16.5% annual return track record. The current opportunity offers a 400% upside potential—dwarfing even our 90% BTI return.

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