Jeremy Grantham’s 5 Favorite Stocks

3. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders: 91

Jeremy Grantham’s Stake Value: $562.37 Million

UnitedHealth Group Incorporated (NYSE:UNH) is an American multinational managed healthcare and insurance company. Jeremy Grantham’s GMO portfolio had 1.09 million shares of UnitedHealth Group Incorporated (NYSE:UNH) at the end of June 2022, worth $562.37 million, representing 3% of the total holdings. 

On August 10, Mizuho analyst Ann Hynes raised the price target on UnitedHealth Group Incorporated (NYSE:UNH) to $600 from $550 and reaffirmed a Buy rating on the shares after the “strong” Q2 results. The analyst raised estimates based on UnitedHealth Group Incorporated (NYSE:UNH)’s optimistic business outlook.

Among the hedge funds tracked by Insider Monkey, 91 funds were bullish on UnitedHealth Group Incorporated (NYSE:UNH) at the end of June 2022, compared to 103 funds in the prior quarter. Rajiv Jain’s GQG Partners is the leading position holder in the company, with more than 3 million shares worth $1.60 billion. 

Here is what Wedgewood Partners had 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.”