UnitedHealth makes Goldman's coveted hedge fund VIP basket that's up 15% this year

UnitedHealth makes Goldman's coveted hedge fund VIP basket that's up 15% this year

UnitedHealth Group (NYSE: UNH) has made a significant impact in the financial markets, as it was included in Goldman Sachs' "Hedge Fund VIP" basket for the second quarter of 2025. This prestigious list, compiled from the holdings of 981 fundamentally driven hedge funds with $3.8 trillion in gross equity positions, has consistently outperformed the S&P 500. This year, the VIP basket has seen a gain of 15%, compared to the S&P 500's advance of over 8% [1].

The inclusion of UnitedHealth in the VIP basket highlights its strong fundamentals and growth prospects. The stock has seen a notable increase in popularity among professional traders, with 15 funds owning it as one of their top 10 holdings. UnitedHealth's shares received a significant boost last week, rising by 21%, after legendary investor Warren Buffett disclosed a significant stake in the insurer. Buffett's Berkshire Hathaway acquired over 5 million shares, bringing the total market value to nearly 1.6 billion dollars [2].

The hedge fund manager's decision to increase their stake in UnitedHealth Group by 2.3 million shares, bringing the total value to 764 million dollars, underscores the company's appeal to investors. This move made UnitedHealth Group the second-largest holding in the portfolio, after Buffett's $1.6 billion increase. Concurrently, the hedge fund manager reduced holdings of several Chinese technology companies, including Alibaba, JD.com, and Pinduoduo, reflecting regulatory risks and geopolitical concerns [2].

UnitedHealth's strong performance in recent quarters, driven by its diversified business model and robust earnings, has made it a favored investment among both hedge funds and legendary investors. The company's healthcare services and insurance offerings have proven resilient, even in the face of economic uncertainty. The hedge fund manager's strategy mirrors Buffett's approach, driving UnitedHealth's after-hours stock up by 10% as investors bet on the healthcare sector's resilience and growth [2].

The inclusion of UnitedHealth in the Goldman Sachs VIP basket, along with the significant stake increases by prominent investors, signals a strong bullish sentiment toward the company. As market volatility continues, investors are seeking out stable and growth-oriented investments like UnitedHealth Group.

References:
[1] https://www.cnbc.com/2025/08/21/unitedhealth-makes-goldmans-hedge-fund-vip-basket-thats-up-15percent-this-year.html
[2] https://www.ainvest.com/news/hedge-fund-boosts-unitedhealth-stake-2-3-million-shares-cuts-chinese-tech-holdings-20-2508/