UnitedHealth shares tumble after Berkshire exits stake

UnitedHealth shares fell 3.4% ahead of Monday’s market open after Berkshire disclosed that it exited its position in the health insurer during the first quarter, News.Az reports, citing Barron's.

The investment group had purchased 5 million shares of UnitedHealth last year amid a sharp selloff in the healthcare company.

The latest 13-F filing covers the first quarter since Greg Abel became CEO and Warren Buffett moved into the role of chairman.

According to Barron’s, it appears Berkshire eliminated nearly all of its equity holdings managed by former portfolio manager Todd Combs. UnitedHealth is widely believed to have been one of Combs’ holdings.

The exit has weighed on the stock and contributed to pressure on Dow futures.

The timing of the sale suggests Berkshire may have missed additional gains, as UnitedHealth fell 18% in the first three months of the year but has since risen 46% so far in the second quarter, as of Friday’s close.

Berkshire’s influence is also visible in the opposite direction. The firm opened a new $3 billion position in Delta Air Lines and a smaller stake in Macy’s. Delta shares rose more than 2%, while Macy’s gained over 3% in premarket trading.

Not all Berkshire-related moves were positive for stocks. Alphabet shares slipped 0.5% despite Berkshire increasing its stake in the Google parent company. However, Alphabet has recently rallied strongly, up 38% since the start of April.

With Buffett still involved and retaining influence, investors continue to closely track Berkshire’s portfolio changes, a trend expected to continue going forward.

News.Az 

By Nijat Babayev