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Core News Facts
In the June-ended quarter of 2025, billionaire investor David Tepper of Appaloosa Management increased his stake in UnitedHealth Group by 1,300%, from 175,000 to 2,450,000 shares. This investment comes as UnitedHealth has significantly underperformed, falling 30% year-to-date compared to an 11% rise in the S&P 500.
Tepper also sold all 130,000 shares of AI networking specialist Broadcom, a trade made within a three-month period that netted a potential profit of 60%. Broadcom’s share price increased from below $170 to $275, leading to speculation that Tepper may have capitalized on short-term gains due to market corrections.
UnitedHealth faces challenges, including a U.S. Justice Department probe and rising costs from Medicare Advantage plans, which has led the company to stop selling these plans in 16 U.S. markets starting next year. Despite these issues, analysts suggest UnitedHealth’s healthcare services subsidiary, Optum, could contribute positively to its margins in the near future.
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