Elevance Health (ELV) Reported Strong Q1 Results

Hotchkis & Wiley, an investment management company, released its “Hotchkis & Wiley Large Cap Fundamental Value Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The S&P 500 Index fell by 4.3% during the first quarter of 2025. Until March, the market had been performing well, but investors began to struggle with the rapid policymaking of the Administration, especially concerning tariffs. In a significant shift from recent trends, the downturn was primarily driven by large-cap growth stocks. The Hotchkis & Wiley Large Cap Fundamental Value Fund (I Shares) returned 2.52% in the first quarter, outperforming the Russell 1000 Value Index’s 2.14% return. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its first-quarter 2025 investor letter, Hotchkis & Wiley Large Cap Fundamental Value Fund highlighted stocks such as Elevance Health, Inc. (NYSE:ELV). Elevance Health, Inc. (NYSE:ELV) is a health benefits company. The one-month return of Elevance Health, Inc. (NYSE:ELV) was -6.91%, and its shares lost 27.66% of their value over the last 52 weeks.  On June 9, 2025, Elevance Health, Inc. (NYSE:ELV) stock closed at $389.61 per share, with a market capitalization of $88.027 billion.

Hotchkis & Wiley Large Cap Fundamental Value Fund stated the following regarding Elevance Health, Inc. (NYSE:ELV) in its Q1 2025 investor letter:

“Elevance Health, Inc. (NYSE:ELV), formerly known as Anthem, is a large health insurer, and the largest commercial health insurer. ELV is priced at a discount to the market; however, we believe it is a superior business, growing faster than gross domestic product while still returning most of its cash to shareholders. ELV reported earnings that were in line with consensus. Costs remain elevated but ELV reported signs of stabilization in Medicaid utilization trends. Management also provided guidance for stable Medicare Advantage margins in 2025. Overall, this was a positive quarter for ELV as commercial performance remains strong and it showed signs of normalization for utilization and cost trends.”

Elevance Health, Inc. (NYSE:ELV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 75 hedge fund portfolios held Elevance Health, Inc. (NYSE:ELV) at the end of the first quarter, which was 73 in the previous quarter. Elevance Health, Inc.’s (NYSE:ELV) first quarter operating revenue increased more than 15% to $48.8 billion. While we acknowledge the potential of Elevance Health, Inc. (NYSE:ELV) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Elevance Health, Inc. (NYSE:ELV) and shared the list of best cheap ESG stocks to buy. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.