4. Cigna Corporation (NYSE:CI)
Cigna Corporation is a health insurance provider. The company is the fourth largest stock holding of Omega Advisors, accounting for 6.37% of the hedge fund’s overall portfolio. At the end of the fourth quarter, a total of 57 hedge funds tracked by Insider Monkey held stakes in Cigna. In 2020, Cigna reported total revenue of $160.4 billion.
Avenir Capital mentioned CI in its Q3 2020 investor letter:
“The only material detractor for the quarter was Cigna, a U.S. healthcare stock, which declined 9.7% as the U.S. moved closer to the election and Joe Biden’s chances of winning the presidency increased, along with the possibility of the Democrats gaining control of the senate. Investors sold U.S. healthcare stocks due to increased fears of unfavourable policy change and following a well-established pattern of healthcare stocks underperforming leading up to an election and then materially outperforming after the election. While we generally don’t comment on current quarter events in these letters, given the timing and significance of the U.S. election, it is, perhaps, worth pointing out that Cigna’s share price jumped 15% the day after the election. We think the probability of dramatically unfavourable policy outcomes is low and prefer to hold this proven compounder through the volatility.”