5 Michael Burry Stocks Other Hedge Funds Like Too

4. CVS Health Corporation (NYSE:CVS)

Percentage of Scion Asset Management’s portfolio as of Q2 2023: 0.39%
Number of Hedge Fund Holders: 66

CVS Health Corporation (NYSE:CVS) offers health services in the US that include traditional, voluntary, directed health insurance products and related services. The company serves employer groups, individuals, college students, government-sponsored plans, labor groups, and expatriates.

CVS Health Corporation (NYSE:CVS) sentiments took a hit in August after health insurer Blue Shield said it would drop the company’s Caremark pharmacy benefit manager to work with other companies, including Amazon. Scion Asset Management first bought stakes in the company in 2002. As of the second quarter, it held $6.91 million worth of stakes in the health insurer.

Insider Monkey’s database of 910 hedge funds shows that 66 hedge funds had stakes in CVS Health Corporation (NYSE:CVS). The biggest stakeholder of CVS Health Corporation (NYSE:CVS) was Two Sigma Advisors which had a $398.98 million stake in the company.

Here is what Coho Partners Relative Value Equity Fund said about CVS Health Corporation (NYSE:CVS) in its second quarter 2023 investor letter:

“In December of 2017, CVS Health Corporation (NYSE:CVS) agreed to buy Aetna, which broadened its offering by entering the managed care business. CVS has been moving its portfolio to a more value-based outcome model, and Aetna was a major move in that direction. We were willing to accept the leverage that came with the deal because CVS has a very cash generative model, and we anticipated the free cash flow would enable the company to de-lever fairly quickly…” (Click here to read the full text)

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