Billionaire Cliff Asness 2023 Portfolio: Top 5 Blue Chip Value Stocks

3. The Cigna Group (NYSE:CI)

Trailing P/E Ratio: 12.14x

Cliff Asness’ AQR Capital Management’s Holdings: $294,035,852

Percentage of Cliff Asness’ AQR Capital Management’s Portfolio: 0.64%

Number of Hedge Fund Holders: 79

The Cigna Group (NYSE:CI) is a Bloomfield, Connecticut-based health services organization that operates in the insurance and healthcare industries, providing a wide range of health-related services to individuals, employers, and government entities. The Cigna Group (NYSE:CI) stock has been assigned a Strong Buy rating by John Ransom at Raymond James on May 8. The analyst regarded the company’s Q1 2023 results as better than anticipated and appreciated the management’s decision to increase the 2023 guidance. This reflects that The Cigna Group (NYSE:CI) needs to report an EPS of $19.29 during the remaining three quarters, which is slightly lower than the consensus forecast of $19.49.

Here’s what Baron Funds said about The Cigna Group (NYSE:CI) in its Q1 2023 investor letter:

“The Cigna Group (NYSE:CI) is a leading provider of health care services and benefits. Like UnitedHealth, Cigna’s shares were down alongside other managed care companies during the quarter, primarily on sector rotation. Cigna reported a fourth quarter beat and inline 2023 guidance driven by strong enrollment across all products; continued growth in established business (60% of revenue); and outsized growth in Cigna’s accelerated segments comprised of specialty pharmacy, Evernorth Health Services, and its U.S. Government business. Despite these positive results, investors stepped to the sidelines on concerns about proposed changes to the Medicare audit program, preliminary 2024 Medicare Advantage rates, the impact of Medicaid recertification, and heightened scrutiny of pharmacy benefit managers. While we believe that, over the long term, Cigna is a well-run, well-positioned managed care player with solid growth opportunities, we reduced our position to lower overall exposure to the managed health care segment.”