Appaloosa Management sold all 90,000 shares of UNH as medical cost pressures weighed on margins amid portfolio reallocation.
Billionaire hedge fund manager David Tepper liquidated his entire stake in UnitedHealth Group (UNH) during Q2 2026, selling approximately 90,000 shares. The move reflects a strategic pivot toward artificial intelligence-focused equities, including Amazon (AMZN), Micron (MU), and Taiwan Semiconductor (TSM), which now comprise nearly 40% of Appaloosa Management’s portfolio.
UnitedHealth had previously been a top holding, accounting for over 10% of Tepper’s fund. The insurer’s Q2 2026 medical costs reached $75.36 billion, with a medical care ratio of 86.7%, down from 89.4% a year earlier but still above the company’s mid-80s target range. Analysts cite persistent cost pressures from GLP-1 drugs and broader healthcare inflation as key concerns.
The sale suggests a thematic shift rather than a bearish view on UNH, though margin pressures remain a focal point for investors.