Is it a Great Choice to Invest in UnitedHealth (UNH)?

Baron Funds, an asset management firm, published its “Baron Durable Advantage Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Baron Durable Advantage Fund (the “Fund”) declined 10.3% (Institutional Shares) during the first quarter, compared to the 4.6% decline for the S&P 500 Index (the “Index”), the Fund’s benchmark. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Baron Durable Advantage Fund mentioned UnitedHealth Group Incorporated (NYSE:UNH) and explained its insights for the company. Founded in 1977, UnitedHealth Group Incorporated (NYSE:UNH) is a Minnetonka, Minnesota-based multinational managed healthcare and insurance company with a $462.0 billion market capitalization. UnitedHealth Group Incorporated (NYSE:UNH) delivered a -1.91% return since the beginning of the year, while its 12-month returns are up by 20.02%. The stock closed at $492.53 per share on May 17, 2022.

Here is what Baron Durable Advantage Fund has to say about UnitedHealth Group Incorporated (NYSE:UNH) in its Q1 2022 investor letter:

“UnitedHealth Group Incorporated (NYSE:UNH) is a leading diversified health and wellbeing company whose divisions include insurance arm, United Healthcare and healthcare services arm, Optum, which offers care delivery and other services. Shares increased 1.8% on good fourth quarter results with revenues up 12.5% year-over-year, operating margins of 7.5% and EPS up 78% while also reaffirming its 2022 guidance. We believe UnitedHealth leads the health care industry in innovation and execution as evidenced by its strong value proposition leading to Medicare Advantage share gains, strong cost controls, and its leadership position in the shift to value-based care.”

Source: Unsplash

Our calculations show that UnitedHealth Group Incorporated (NYSE:UNH) ranks 19th on our list of the 30 Most Popular Stocks Among Hedge Funds. UnitedHealth Group Incorporated (NYSE:UNH) was in 96 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 96 funds in the previous quarter. UnitedHealth Group Incorporated (NYSE:UNH) delivered a 2.99% return in the past 3 months.

In April 2022, we also shared another hedge fund’s views on UnitedHealth Group Incorporated (NYSE:UNH) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.