Here’s Why SGA Global Growth Fund Sold Its Stake in UnitedHealth (UNH)

In its first-quarter 2026 capitalist letter, SGA Global Growth Strategy highlighted UnitedHealth Group Incorporated (NYSE:UNH). UnitedHealth Group Incorporated (NYSE:UNH) is simply a multinational wellness benefits institution based successful Eden Prairie, Minnesota. On June 16, 2026, UnitedHealth Group Incorporated (NYSE:UNH) banal closed astatine $407.65 per share. One-month instrumentality of UnitedHealth Group Incorporated (NYSE:UNH) was 6.35%, and its shares gained 32.70% implicit the past 52 weeks. UnitedHealth Group Incorporated (NYSE:UNH) has a marketplace capitalization of $370.205 billion.

SGA Global Growth Strategy stated the pursuing regarding UnitedHealth Group Incorporated (NYSE:UNH) successful its Q1 2026 capitalist letter:

"Our presumption successful UnitedHealth Group Incorporated (NYSE:UNH) was based connected our presumption that the institution would present durable maturation owed to its quality to negociate the rising healthcare costs fixed its standard advantages. We viewed the concern arsenic having beardown pricing powerfulness fixed its vertical integration with Optum, which gave them bully tools to negociate aesculapian costs, arsenic good arsenic the quality to rise premiums annually. The privatization of government-funded elder wellness plans, Medicare Advantage, provided a maturation opportunity. Over 2025 the banal suffered owed to execution missteps which were exacerbated by authorities outgo cuts to Medicare Advantage programs which were initiated nether the Biden administration. Despite these issues we held connected to the presumption nether the anticipation that they would beryllium capable to re-price their wellness security policies successful the pursuing year, and that execution would amended with the instrumentality of Stephen Hemsley arsenic CEO. We had besides thought that a alteration successful medication would beryllium beneficial for the institution fixed Republican's humanities enactment of Medicare privatization. However, erstwhile the CMS released their preliminary complaint for 2027 this 4th of conscionable 0.1%, we, and the market, were disappointed. While the last complaint has since been revised higher to 2.5%, this is inactive beneath the mid-single digit complaint expectations and outgo ostentation trends. Additionally, successful the latest communication, portion the institution was capable to re-price astir of its security businesses, the greater than expected rank losses arsenic good arsenic the slower profitability betterment astatine Optum were disappointing, indicating a much mature Medicare Advantage marketplace and accrued competition. Given these developments we decided to exit the presumption and re-allocate the superior into higher condemnation maturation opportunities. The institution has since been removed from the Qualified Company List."