Tepper Scoops Up Beaten Down UnitedHealth, Trims China Bet (1)

Billionaire David Tepper showcased his style as a contrarian investor, scooping up shares of beleaguered UnitedHealth Group Inc. in the second quarter while trimming stakes in Chinese stocks.

Tepper’s Appaloosa Management LP boosted its holdings of the health insurance giant by 2.3 million shares, valuing the stake at $764 million, according to a 13F filing Thursday and Bloomberg data analysis. Shares in the health insurer rallied as much as 14% in premarket trading on Friday.

UnitedHealth made up about 11.9% of Appaloosa’s $6.45 billion equity portfolio, marking the second-largest position after Alibaba Group Holding Ltd., even after the firm ...