Billionaire Richard Chilton’s 10 Stock Picks with Huge Upside Potential

2. UnitedHealth Group Incorporated (NYSE:UNH)

Chilton Investment Company’s stake: $27,703,929

Upside Potential: 34.04%

Number of Hedge Fund Holders: 150

UnitedHealth Group Incorporated (NYSE:UNH) is a healthcare company focused on improving access, affordability, outcomes, and experiences for individuals and organizations. It operates through two main businesses: Optum and UnitedHealthcare. Optum integrates clinical expertise, technology, and data to improve healthcare delivery and affordability, serving various markets including patients, employers, and governments. UnitedHealthcare offers a range of health benefits, simplifying the healthcare experience for individuals and employers, including specific services for Medicare recipients and economically disadvantaged populations. The company has four reportable segments: Optum Health, Optum Insight, Optum Rx, and UnitedHealthcare.

UnitedHealth Group Incorporated (NYSE:UNH) began 2025 with strong business growth but faced significant challenges, prompting a reduction in its earnings outlook to $26–$26.50 per share. The main issues arose in its Medicare businesses, particularly due to higher-than-expected care activity and changing member profiles. Increased utilization in physician and outpatient services within Medicare Advantage was not mirrored in commercial or Medicaid sectors. Additionally, new members in Optum Health had lower-than-expected engagement and reimbursement. UnitedHealth is addressing these challenges through improved member engagement, investment in clinical workflows, and adapting to CMS risk model changes.

Despite setbacks, the company is growing in Medicare Advantage and Medicaid, and Optum Rx is seeing strong sales and customer retention. Technological advancements, including AI tools and simplified drug access, are enhancing operations. While results were disappointing, the company remains confident in its long-term strategy, emphasizing innovation, cost control, and a better healthcare experience for consumers and providers.