5 Dow Stocks Billionaires Are Loading Up On

3. UnitedHealth Group Inc. (NYSE:UNH)

Total Number of Billionaire Investors: 25

UnitedHealth Group Inc. (NYSE:UNH) is one of the most popular stocks among elite hedge funds as of the end of the first quarter of 2023. Insider Monkey’s database of 943 funds shows that 116 hedge funds had stakes in UnitedHealth Group Inc. (NYSE:UNH) as of the end of the March quarter.

When it comes to billionaires, 25 billionaires via their hedge funds were long UnitedHealth Group Inc. (NYSE:UNH) as of the end of March.

Alger Spectra Fund made the following comment about UnitedHealth Group Incorporated (NYSE:UNH) in its Q1 2023 investor letter:

“UnitedHealth Group Incorporated (NYSE:UNH) is an integrated healthcare benefits company uniquely positioned to address rising healthcare costs for its customers, due to its vertical integration, size, and scale. The Optum health benefits services unit, which accounts for approximately 45% of the company’s operating earnings, in our view, has the potential to grow even further as customers look for ways to manage rising healthcare costs. During the period, shares detracted from performance due to several factors: 1) many 2022 healthcare winners with shorter duration profiles and persistent earnings profiles, such as UnitedHealth Group. underperformed in the first quarter of 2023, 2) uncertainty surrounding Medicare Advantage reimbursement levels from the Federal government in 2023, which will be determined later in the year, and 3) increased regulatory scrutiny in the form of potential Medicare Advantage audits across the industry. While these concerns have impacted UnitedHealth in the near-term, we believe company fundamentals remain intact given its large scale business model, competitive advantages, and medium to long- term growth prospects.”