Baron Funds, an investment management company, released its “Baron Health Care Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. The first quarter was difficult for the fund, as it failed to participate in the broader market rally and declined 3.69% compared to the 3.27% decline for the benchmark Russell 3000 Health Care Index and a 7.50% increase for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Health Care Fund highlighted stocks like Elevance Health, Inc. (NYSE:ELV) in the first quarter 2023 investor letter. Headquartered in Indianapolis, Indiana, Elevance Health, Inc. (NYSE:ELV) is a health benefits company. On May 17, 2023, Elevance Health, Inc. (NYSE:ELV) stock closed at $459.74 per share. One-month return of Elevance Health, Inc. (NYSE:ELV) was 1.06%, and its shares lost 4.20% of their value over the last 52 weeks. Elevance Health, Inc. (NYSE:ELV) has a market capitalization of $108.984 billion.
Baron Health Care Fund made the following comment about Elevance Health, Inc. (NYSE:ELV) in its Q1 2023 investor letter:
“Elevance Health, Inc. (NYSE:ELV) is a leading health benefits company in the U.S., serving more than 45 million members through its affiliated health plans under the Blue Cross/Blue Shield brand in 14 states. Shares fell along with those of other managed care companies on investor concerns over proposed lower 2024 Medicare Advantage (MA) rates and changes in risk assessment methodology. We believe Elevance has multiple growth drivers, including its MA business, its in-house pharmacy benefit management business, and its Diversified Business Group, which includes behavioral health, advanced analytics, and complex and chronic care services. Near term, medical cost trends remain low, Elevance has pricing power, and earnings should benefit from rising interest rates. Over the long term, management targets 12% to 15% annual EPS growth. We think Elevance is a high-quality growth company trading at a reasonable valuation.”
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 fourth quarter which was 71 in the previous quarter.
We discussed Elevance Health, Inc. (NYSE:ELV) in another article and shared the list of best beginner stocks to buy in 2023. In addition, please check out our hedge fund investor letters Q1 2023 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.
