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

Wedgewood Partners, an investment management firm, published its second-quarter 2022 investor letter – a copy of which can be downloaded here. For the first half of 2022, a portfolio net return of -17.2% was recorded by the fund, underperforming the S&P 500 Index which delivered a -16.1% return for the same period. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Wedgewood Partners 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 $498.7 billion market capitalization. UnitedHealth Group Incorporated (NYSE:UNH) delivered a 5.86% return since the beginning of the year, while its 12-month returns are up by 28.06%. The stock closed at $531.59 per share on July 26, 2022.

Here is what Wedgewood Partners has to say about UnitedHealth Group Incorporated (NYSE:UNH) in its Q2 2022 investor letter:

“UnitedHealth Group also contributed to performance during the quarter. United’s operating income grew +3% on difficult year-ago comparisons as benefits members utilized more services compared to last year. Optum Health grew operating income +40% as more patients are enrolled in the Company’s value-based care services. The Company estimates nearly a third of all medical care is unnecessary and represents an opportunity to capture savings for both patients. Optum’s integrated platform of patient data, IT, and service providers are focused on driving out these unnecessary costs and should serve as the engine for long-term, mid-teens earnings per share growth.”

Source: Unsplash

Our calculations show that UnitedHealth Group Incorporated (NYSE:UNH) ranks 15th on our list of the 30 Most Popular Stocks Among Hedge Funds. UnitedHealth Group Incorporated (NYSE:UNH) was in 103 hedge fund portfolios at the end of the second quarter of 2022, compared to 96 funds in the previous quarter. UnitedHealth Group Incorporated (NYSE:UNH) delivered a 3.47% return in the past 3 months.

In June 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.