Should You Buy UnitedHealth Group (UNH) Stock Before It’s Too Late?

Alex Smith
·3 min read

Bretton Fund recently released its Q4 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 11.52% for the quarter, underperforming its benchmark, the S&P 500 Index which returned 12.15% in the same quarter. You should check out Brown Capital Management's top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q4 2020 Investor Letter, the fund highlighted a few stocks and UnitedHealth Group Inc (NYSE:UNH) is one of them. UnitedHealth Group Inc (NYSE:UNH) is a leading US health insurer offering a variety of plans and services to group and individual customers nationwide. In the last three months, UnitedHealth Group Inc (NYSE:UNH) stock gained 1.0% and on March 5th it had a closing price of $347.10. Here is what the fund said:

"There may be no better example of the strangeness of our healthcare system than the performance of the largest health insurer in the middle of a pandemic that has killed 400,000 Americans. UnitedHealth’s earnings increased 12%, from $15.11/share to $16.88/share, as foregone medical care more than outweighed the costs of coronavirus treatment. Meanwhile, after a year that began with the two major political parties offering vastly different views of the healthcare landscape, from eliminating private health insurance to eliminating Medicaid, we elected a divided government with other priorities and a general tendency to make only marginal changes to the existing ecosystem. UnitedHealth returned 27.1% during our partial year of ownership, and we expect it to have a strong 2021 as employers resume hiring and Medicare Advantage continues to grow in popularity."

Pixabay/Public Domain

Last month, we published an article revealing that Baron Health Care Fund is betting on UnitedHealth Group Inc (NYSE:UNH) stock.

In Q3 2020, the number of bullish hedge fund positions on UnitedHealth Group Inc (NYSE:UNH) stock decreased by about 7% from the previous quarter (see the chart here), so a number of other hedge fund managers don't believe in UnitedHealth's growth potential. Our calculations showed that UnitedHealth Group Inc (NYSE:UNH) isn't ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

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