Berkshire’s investment marks its first UnitedHealth stake since 2010, while Burry’s position includes high-leverage call options alongside direct share purchases.
UnitedHealth Group soared 11% in after-hours trading Thursday to $300.5, marking its first close above $300 in a month, following regulatory filings that showed Warren Buffett’s Berkshire Hathaway and Michael Burry’s Scion Asset Management each made large new investments in the health insurer during the second quarter.
Berkshire purchased more than 5 million shares, worth approximately $1.6 billion, at the end of June, as shown in the filing.
It is Berkshire’s first stake in UnitedHealth since selling out in 2010, when Buffett exited the stock amid a broader retreat from health insurers.
The move positions UnitedHealth as Berkshire’s 18th-largest equity holding, behind Amazon and Constellation Brands, according to a CNBC report. Given Berkshire’s roughly $300 billion equity portfolio, the trade could have been made by investment managers Todd Combs or Ted Weschler, similar to the firm’s 2019 purchase of Amazon stock.
The investment comes despite a bruising year for UnitedHealth, weighed down by surging medical costs, a Justice Department investigation into Medicare billing practices, the fallout from the killing of a top executive, and a cyberattack last year.
In May, the company withdrew its annual earnings outlook and CEO Andrew Witty stepped down. Last month, it issued a new 2025 forecast that came in well below Wall Street estimates, adding to pressure on UnitedHealth’s shares.
Meanwhile, Burry’s Scion Asset Management disclosed a combination of call options tied to 350,000 UnitedHealth shares and a direct holding of roughly 20,000 shares valued at around $6 million.
Known as the “Big Short” investor for his prescient bet against the U.S. housing market before the 2008 crash, Burry has typically taken a bearish stance in recent years.
His UnitedHealth position stands out for both its timing and structure, targeting upside in a stock that has declined nearly 46% so far this year. The move comes as Medicare Advantage rates for 2026 have exceeded expectations and the insurer’s competitive positioning remains intact despite recent turbulence.
UnitedHealth’s rally was further underpinned by fresh disclosures of hedge fund buying.
Dodge & Cox acquired 4.73 million shares, while David Tepper’s Appaloosa boosted its stake to 2.45 million shares from 180,000 in the first quarter, now worth approximately $764 million. Additionally, Renaissance Technologies purchased 1.35 million shares.
Saudi Arabia’s Public Investment Fund also reported holding call options in the company.
Buffett has long railed on the inefficiencies of the U.S. healthcare system, calling it a “tapeworm” on the economy years ago. In 2018, Buffett partnered with Bezos and Jamie Dimon to establish a healthcare company that would streamline health services for employees, but the effort was ultimately shuttered.
His return to UnitedHealth, alongside Burry’s high-leverage wager and heavy buying from other large funds, signals renewed institutional interest in a company that has been one of the worst performers in the S&P 500 this year.
On Stocktwits, UnitedHealth was the top trending ticker, with retail sentiment turning ‘bullish’ as 24-hour message volume jumped 217%.
One user labeled Buffett and Burry scooping up UNH stock during a “flash correction” as “the Avengers of investing uniting.”
Another user predicted the rally was only just starting, noting the stock had traded above $600 before recent setbacks and saying tomorrow could be “a monster day,” adding that they planned to buy more before the market opened.
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