5 Best Defensive Stocks To Buy Now

3. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders: 116

Healthcare stocks are considered recession-proof and safe. UnitedHealth Group Incorporated (NYSE:UNH) is a big company, with a market cap of over $470 billion as of August 14. UnitedHealth Group Incorporated (NYSE:UNH) has been paying consistent dividend for years and its business model is safe and thriving. That’s why it’s one of the top defensive choice of hedge fund investors.

As of the end of the first quarter of 2023, 116 hedge funds out of the 943 funds tracked by Insider Monkey reported owning stakes in UnitedHealth Group Incorporated (NYSE:UNH). The biggest stakeholder of UnitedHealth Group Incorporated (NYSE:UNH) during this period was Rajiv Jain’s GQG Partners which owns a $2.3 billion stake in the company.

L1 Capital International Fund made the following comment about UnitedHealth Group Incorporated (NYSE:UNH) in its second quarter 2023 investor letter:

“Close observers of the Fund will note the increased exposure to healthcare, currently 13% of the portfolio. Healthcare is generally less macro-sensitive than some other sectors. In a reversal of market sentiment compared to 2022, the healthcare sector has been under modest pressure due to what we consider to be some short-term transitory issues, while technology, particularly anything to do with AI, has become the market’s dish du jour. We have been selectively increasing our investment in a few very high-quality healthcare businesses at prices we consider to be fair. UnitedHealth Group Incorporated (NYSE:UNH) is now a top 10 holding, and our investment thesis is outlined in this report.

We have previously written on our exposure to taxes through our investment in Intuit and its market leading TurboTax franchise (Intuit also owns the QuickBooks small business accounting franchise, Credit Karma and Mailchimp). UnitedHealth Group (UnitedHealth) is leading the charge to postpone the inevitable, while lowering overall healthcare system costs.

U.S. health spending has outpaced GDP growth for decades, with spending on healthcare increasing from around 12% of GDP in the 1980s to nearly 20% today, driven by advancements in healthcare capabilities and an ageing population with increased life expectancy…” (Click here to read the full text)