Here’s Why Elevance Health (ELV) Declined in Q4
From Yahoo Finance: 2025-03-31 08:38:00
Hotchkis & Wiley released its fourth quarter 2024 investor letter for the Large Cap Fundamental Value Fund, which returned -0.91% in Q4, outperforming the Russell 1000 Value Index. However, for the full year, the fund underperformed, returning 12.81% vs. 14.37% for the index. Check out the fund’s top five holdings for more information.
In the investor letter, Hotchkis & Wiley highlighted Elevance Health, Inc. (NYSE:ELV), a health benefits company. The one-month return for ELV was 9.23%, with shares losing 16.28% over the last 52 weeks. On March 28, 2025, ELV closed at $432.00 per share with a market cap of $98.216 billion.
Regarding ELV, Hotchkis & Wiley stated the company is undervalued due to skepticism around margins and growth, despite being a large health insurer. The company’s shares faced pressure following disappointing earnings and guidance. The overall thesis remains unchanged, seeing higher medical spending as a long-term positive.
Elevance Health, Inc. (NYSE:ELV) is not among the 30 most popular stocks among hedge funds. While 73 hedge fund portfolios held ELV at the end of Q4, our conviction lies in AI stocks for higher returns within a shorter timeframe. If you’re interested in a promising AI stock trading at less than 5 times earnings, check out our report on the cheapest AI stock.