Molina Healthcare Draws a Major Bet From Cobalt Capital After a Sharp Pullback

COBALT Capital Management disclosed a new position in Molina Healthcare (NYSE:MOH) on November 13, 2025, acquiring 115,000 shares valued at $22,006,400. Its net position change estimated at $22,006,400. The position accounts for 10.1142% of 13F reportable assets under management. The Post-trade holding stands at 115,000 shares, valued at $22,006,400. Molina Healthcare is now the fund’s 4th-largest holding.

What happened

According to a Securities and Exchange Commission (SEC) filing dated November 13, 2025, Cobalt Capital Management initiated a new stake in Molina Healthcare (NYSE:MOH), acquiring 115,000 shares. The position was valued at approximately $22.01 million at the end of the third quarter. This new addition represents approximately a 10.11% allocation of the fund’s approximately $217.58 million in reportable U.S. equity assets.

What else to know

This was a new position. MOH now represents 10.11% of the fund’s 13F assets

Top holdings after the filing:

• NYSE: AL: $31,825,000 (14.6% of AUM)
• NYSEMKT: GLD: $28,437,600 (13.1% of AUM)
• NYSE: NSC: $27,036,900 (12.4% of AUM)
• NYSE: MOH: $22,006,400 (10.1% of AUM)
• NYSE: COF: $17,006,400 (7.8% of AUM)

As of November 13, 2025, shares were priced at $138.48, down 55.23% over the past year, underperforming the S&P 500 by 69.17 percentage points.

Company Overview

Company Snapshot

Molina Healthcare, Inc. is a leading provider of managed healthcare services focused on government-sponsored programs such as Medicaid and Medicare.

Molina Healthcare, Inc. offers managed healthcare services primarily through Medicaid, Medicare, and state insurance marketplace plans, with revenue driven by government-sponsored health programs.

The company serves low-income families, individuals, and seniors eligible for Medicaid and Medicare in 18 U.S. states as of December 31, 2021. Molina Healthcare, Inc has served approximately 5.2 million members as of December 31, 2021.

Foolish take

Cobalt Capital’s move into Molina Healthcare stands out because it targets a company investors often misread at inflection points. A double-digit allocation suggests the fund sees a gap between the stock’s steep decline and the strength of Molina’s cash engine. When institutions commit capital at this scale, they are signaling that the market narrative has drifted away from how the business truly operates.

Molina operates in a part of healthcare where fundamentals rarely match investor sentiment. The company earns revenue through government contracts that pay a fixed amount per member, which makes financial performance hinge on how well it manages medical costs. That structure creates leverage when trends stabilize and pressure when those trends run ahead of expectations.

The company is, at its essence, a contractor for the government’s most complex insurance obligations, and that role depends on disciplined rate negotiations that take time to correct. Recent missteps in those negotiations, combined with higher medical costs, pushed the stock far below its 52-week high even though the underlying business still carries the advantages that supported its long compounding history

For investors, the key now is how Molina resets pricing and restores margin clarity as new contracts roll through. If management aligns medical trends with reimbursed rates and maintains discipline in its bids, today’s valuation may prove less like a warning and more like an opening.

Glossary

13F reportable assets: Assets in U.S. equities that institutional investment managers must disclose quarterly to the SEC.
Assets under management (AUM): The total market value of investments managed by a fund or investment firm.
Position: The amount of a particular security or investment held by an investor or fund.
Allocation: The percentage of a portfolio assigned to a specific asset, sector, or security.
Stake: The ownership interest or shares held in a company by an investor or fund.
Managed healthcare services: Health plans that coordinate and manage medical care, often through government programs like Medicaid or Medicare.
Medicaid: A U.S. government health insurance program for low-income individuals and families, jointly funded by federal and state governments.
Medicare: A U.S. federal health insurance program for people aged 65 and older, or with certain disabilities.
Marketplace plans: Health insurance plans offered through government-run exchanges under the Affordable Care Act.
Filing date: The official date a regulatory document, such as a fund's holdings report, is submitted to authorities.
TTM: The 12-month period ending with the most recent quarterly report.

Eric Trie has no position in any of the stocks mentioned. The Motley Fool recommends Capital One Financial. The Motley Fool has a disclosure policy.