What Makes Elevance Health (ELV) an Investment Choice?

Pelican Bay Capital Management, an investment management company, released its third-quarter 2025 investor letter. A copy of the same can be downloaded here. PBCM Concentrated Value Strategy returned 7.8% in the quarter, compared to a 5.3% return for the Russell 1000 Value Index. YTD, the fund returned 11.2% compared to 11.6% for the index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, PBCM Concentrated Value Strategy 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 -10.04%, and its shares lost 24.81% of their value over the last 52 weeks. On November 7, 2025, Elevance Health, Inc. (NYSE:ELV) stock closed at $317.78 per share, with a market capitalization of $70.623 billion.

PBCM Concentrated Value Strategy stated the following regarding Elevance Health, Inc. (NYSE:ELV) in its third quarter 2025 investor letter:

"This quarter we also initiated a new position in Elevance Health, Inc. (NYSE:ELV), a leading health insurance company with over 45 million members, operating through its well-known brands: Anthem Blue Cross Blue Shield for private employers and Wellpoint for Medicare and Medicaid plans. A key competitive advantage is its in-house pharmacy benefit manager (PBM), Carelon.Elevance Health (ELV) Drops 18.66% After Dismal Q2 Earnings

Elevance Health, Inc. (NYSE:ELV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 67 hedge fund portfolios held Elevance Health, Inc. (NYSE:ELV) at the end of the second quarter, which was 75 in the previous quarter. In Q3 2025, Elevance Health, Inc. (NYSE:ELV) reported $50.1 billion of operating revenue, an increase of 12% year-over-year. While we acknowledge the potential of Elevance Health, Inc. (NYSE:ELV) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

Story Continues

In another article, we covered Elevance Health, Inc. (NYSE:ELV) and shared the list of most undervalued long-term stocks to buy. In addition, please check out our hedge fund investor letters Q3 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.

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