Prominent Investor Poised to Sell All of His UnitedHealth Group Incorporated (UNH) Holdings

As of Friday, well-known investor Steve Weiss stated that UnitedHealth Group Incorporated (UNH) constituted just 1% of his total holdings, down from 6% prior to February 21.

Weiss stated that he would likely sell the remaining 1% on Friday afternoon or today.

A frequent guest on CNBC, Weiss is the Chief Investment Officer and Managing Partner of Short Hills Capital Partners.

Why Weiss Has Become Cautious on UnitedHealth Group Incorporated (UNH)

Weiss reported that he had sold the shares due to the Department of Justice's investigations of the firm, the order by President Donald Trump that seeks to restrict how much drugmakers can charge, and the departure of the firm's CEO.

Noting that UnitedHealth Group Incorporated (UNH) is reportedly under criminal investigation by the Department of Justice, Weiss suggested that the latter development could be "distracting" for the firm's new management team.

Weiss added that he "doesn't think the stock is going anywhere," so he decided to use his losses in the name to reduce his investors' capital-gains taxes.

UNH Stock Is "Very Cheap," Weiss Believes

Despite his cautious comments on UnitedHealth, Weiss thinks that the name is "very cheap." Moreover, he is upbeat on its new CEO and its CFO.

The investor suggested that he may repurchase the shares in about a month if it turns out that the insurer is not facing a criminal probe by the Department of Justice.

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Disclosure: None. This article is originally published at Insider Monkey