Investment management company Vulcan Value Partners recently released its second-quarter 2026 investor letter. A copy of the letter can be downloaded here. Vulcan Value Partners prioritizes long-term returns and lower risk over short-term performance. In the quarter, the Large Cap Composite (Net) returned 9.5%, the Small Cap Composite (Net) returned 13.3%, the Focus Composite (Net) returned 10.4%, the Focus Plus Composite (Net) returned 10.5%, and the All-Cap Composite (Net) returned 9.0%. The firm reported strong compounding across its strategies in Q2 2026. Management highlighted that their exceptional holdings remain deeply undervalued relative to “what is working” in the market, viewing this as an excellent opportunity for patient investors. In addition, please check the Firm’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Vulcan Value Partners highlighted Elevance Health, Inc. (NYSE:ELV) as a notable contributor. Elevance Health, Inc. (NYSE:ELV) is a US-based health benefits company. On July 29, 2026, Elevance Health, Inc. (NYSE:ELV) closed at $375.98 per share, reflecting a market capitalization of $81.54 billion. Elevance Health, Inc. (NYSE:ELV) posted a one-month return of -10.03%, while its shares gained 32.82% over the past 52 weeks.
Vulcan Value Partners stated the following regarding Elevance Health, Inc. (NYSE:ELV) in its Q2 2026 investor update:
“There were two material contributors to performance: UnitedHealth Group Inc. and Elevance Health, Inc. (NYSE:ELV). UnitedHealth and Elevance are the two largest private health insurers in the country, serving a combined 94 million members. We have owned Elevance for several years. Like UnitedHealth Group, their government sponsored plans including Medicaid, Medicare Advantage (MA), and the ACA Health Exchanges have faced margin pressure driven by the post-Covid hangover. Elevance is adjusting to this post-Covid environment, and we believe that its earnings should return to double-digit growth next year. Similar to UnitedHealth Group, “Mr. Market” is beginning to recognize that Elevance’s fundamentals remain strong and its discounted shares are beginning to recover.”
Elevance Health, Inc. (NYSE:ELV) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 87 hedge fund portfolios held Elevance Health, Inc. (NYSE:ELV) at the end of the first quarter, up from 78 in the previous quarter. While we acknowledge the risk and potential of Elevance Health, Inc. (NYSE:ELV) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Elevance Health, Inc. (NYSE:ELV) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Elevance Health, Inc. (NYSE:ELV) and shared Oakmark Equity and Income Fund’s insights on the company. In addition, please check out our hedge fund investor letters Q2 2026 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.
