Tepper's 1,300% Leap Into UnitedHealth Stock Chaos Looked Crazy—Until It Didn't

Group 1 - David Tepper's Appaloosa Management increased its stake in UnitedHealth Group Inc. by 1,300% in the second quarter, making it the fund's second-largest holding [1][5] - UnitedHealth's stock experienced a significant decline of over 60% from mid-April to mid-May, dropping from above $600 to the mid-$200s, due to regulatory scrutiny and reimbursement uncertainties [2][3] - Tepper's purchase of 2.28 million shares at an average price of $330 per share has turned into a key conviction trade, now representing nearly 12% of Appaloosa's portfolio, valued at $852 million [3][5] Group 2 - The stock has rebounded by 11.5% since June 30, closing at $347.92 on September 9, validating Tepper's contrarian investment strategy [2][4] - Tepper's aggressive positioning in UnitedHealth serves as a reminder that bold moves in defensive sectors can yield significant returns, especially when backed by strong conviction [6]