Home / Business and Economy / Hedge Fund Titan Burry Bets Big on UnitedHealth Amid Industry Woes
Hedge Fund Titan Burry Bets Big on UnitedHealth Amid Industry Woes
14 Aug
Summary
- Burry's Scion Asset Management owns $109M in UnitedHealth call options
- Berkshire Hathaway also bought over 5M UnitedHealth shares last quarter
- UnitedHealth stock down 46% this year due to CEO exit and industry challenges
In a surprising move, renowned investor Michael Burry, who famously predicted the 2008 subprime mortgage crisis, has placed a substantial bet on UnitedHealth, a major U.S. health insurance provider. According to recent filings, Burry's Scion Asset Management owned call options against 350,000 shares of UnitedHealth at the end of June, with a notional value of over $109 million.
This investment comes at a time when UnitedHealth has faced a series of setbacks, with its stock price plummeting 46% so far this year. The company has been grappling with various challenges, including the abrupt departure of its CEO. However, Burry's contrarian move suggests he sees value in the beleaguered insurer.
Interestingly, Burry's investment in UnitedHealth is not the only notable development in the stock's recent history. Warren Buffett's Berkshire Hathaway also purchased more than 5 million shares in the health insurer last quarter, making it the 18th largest position in the conglomerate's portfolio.
As Burry and Buffett's investments in UnitedHealth suggest, the company's struggles may present an opportunity for savvy investors to capitalize on the industry's challenges. However, the long-term outlook for the health insurance sector remains uncertain, and Burry's and Buffett's strategies will be closely watched by the investment community.
