This article first appeared on GuruFocus.
Michael Burry (Trades, Portfolio) has increased his stake in Molina Healthcare (NYSE:MOH), pointing to longer-term confidence in the health insurer and a potential political catalyst ahead of the next election cycle.
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Burry said he added shares around $198, describing the position as fully sized. He indicated that capital movements had reduced Molina's weight in his portfolio, prompting him to bring it closer to the level of his largest holdings.
Molina Healthcare had recently faced pressure despite delivering quarterly results above expectations. Investor attention shifted toward rising medical expenses and challenges within its Marketplace business, weighing on sentiment around the company.
Jefferies analyst David Windley previously maintained a Hold rating and highlighted concerns about Molina's Marketplace operations. Enrollment declined more than expected, while the business also faces potential customer attrition that could affect future performance.
Burry's move puts renewed attention on Molina Healthcare as investors weigh the company's long-term prospects against near-term pressure from medical costs and its Marketplace business. The political backdrop could also become a factor as the next election season approaches.