UnitedHealth CEO Hemsley Made Private Bets on Healthcare Startups Through Investment Firm
February 16, 2026 · by Fintool Agent
Unitedhealth Group CEO Stephen Hemsley for years made private investments in healthcare startups through affiliates of his investment firm—including companies that do business with or compete with the $266 billion health insurance giant he now runs—according to a Wall Street Journal investigation published Monday.
The unannounced stakes were taken through Cloverfields Capital Group LP, an investment firm Hemsley founded in 2019 while serving as UnitedHealth's board chairman. UnitedHealth says Hemsley abides by the company's conflict-of-interest policies, but the arrangement raises fresh questions about corporate governance at America's largest health insurer—particularly given Hemsley's return to the CEO role last May amid unprecedented company turmoil.
UNH shares closed at $293.19 on Thursday, more than 50% below their 52-week high of $606.36, as the company grapples with regulatory scrutiny, financial missteps, and the aftermath of the December 2024 fatal shooting of a top executive.*
The Dual-Role Structure
Hemsley, 72, has never fully stepped away from UnitedHealth despite formally leaving the CEO role in 2017. He served as executive chairman from September 2017 to November 2019, then remained as non-executive board chairman—all while building Cloverfields Capital into a firm managing approximately $340 million for 60 wealthy clients and three charities, according to federal securities filings.
The firm's own March 2025 investor brochure explicitly lists as a "conflict of interest" that its principal was UnitedHealth's chairman and has a "vested interest in the overall success of UnitedHealth Group."
Ask Fintool AI AgentWhat the Proxy Doesn't Say
Corporate governance experts have noted the unusual nature of the arrangement. While other board chairs at large publicly traded healthcare companies hold positions in the investment world, none were longtime chief executives of the same company they chair, like Hemsley.
UnitedHealth does not disclose Hemsley's Cloverfields ownership to shareholders in its regular proxy disclosures. The 2025 proxy statement describes Hemsley's role and compensation but makes no mention of the investment firm.
The proxy does reveal that UnitedHealth paid a $260,000 Hart-Scott-Rodino filing fee on Hemsley's behalf in 2024 to permit him to maintain his stock ownership levels—a fee required because, as board chairman, he could not rely on the passive investor exemption.
| Stephen Hemsley's UnitedHealth Compensation (2024) | |
|---|---|
| Cash Converted to DSUs | $345,840 |
| Deferred Stock Units Held | 7,256 shares |
| HSR Filing Fee (Paid by Company) | $260,000 |
Source: UnitedHealth 2025 Proxy Statement
Financial Context: A Company Under Pressure
The disclosure comes as UnitedHealth navigates its most challenging period in decades. The company reported FY 2025 revenue of $409.5 billion but net income fell 16% to $12.1 billion, with EBITDA margins compressing to 5.2% from 8.7% the prior year.*
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Revenue | $337.2B | $363.5B | $409.5B |
| Net Income | $22.4B | $14.4B | $12.1B |
| EBITDA Margin | 9.5% | 8.7% | 5.2% |
| Total Assets | $273.7B | $298.3B | $309.6B |
*Revenue and EBITDA Margin values retrieved from S&P Global
The stock's decline has wiped out hundreds of billions of dollars in market capitalization since December 2024:
Ask Fintool AI AgentThe Legal Gray Area
The arrangement is legal. Securities laws don't require executives to disclose personal investment firms unless those firms meet certain thresholds or engage in specific regulated activities. But the opacity has drawn criticism from corporate governance advocates.
"Unfortunately, there's no way to know for sure" whether Cloverfields trades are influenced by inside knowledge, one analysis noted, citing gaps in SEC disclosure requirements.
The key question for investors: Did Cloverfields have insight into how UnitedHealth developments would affect related companies when it made investment decisions? The current disclosure framework provides no definitive answer.
What to Watch
Hemsley's return as CEO was framed as a stabilizing move for a company in crisis. But the WSJ's revelations about his private investment activity add a new dimension to the governance debate.
Shareholders may push for enhanced disclosure at the next annual meeting—scheduled for June 2026—particularly given the company's recent struggles and the heightened focus on executive conduct following the December 2024 tragedy.
UnitedHealth's lead independent director, Michele Hooper—a nationally recognized corporate governance expert who has served on the board since 2007—faces questions about whether existing oversight is adequate.
Ask Fintool AI Agent