5 Best Health Insurance Stocks to Buy

2. Elevance Health, Inc. (NYSE:ELV)

Number of Hedge Fund Holders: 82

Formerly recognized as Anthem, Inc., Elevance Health, Inc. (NYSE:ELV) operates as a health benefits company within the United States through its subsidiaries. The company manages Blue Cross and/or Blue Shield plans in 14 states and holds licenses to sell health insurance nationwide. Elevance Health, Inc. (NYSE:ELV) competes in a similar space as UnitedHealth Group Incorporated (NYSE:UNH), providing a range of offerings such as employer-sponsored and individual health plans, Medicare Advantage, Medicare supplements, and Medicaid. Additionally, the company oversees the IngenioRx PBM, which constitutes just under 20% of the company’s total revenue.

At the end of the June quarter of 2023, 82 hedge funds in Insider Monkey’s database reported having stakes in Elevance Health, Inc. (NYSE:ELV), up from 81 in the preceding quarter. Their collective stake value is over $5.33 billion. The biggest stakeholder of Elevance Health, Inc. (NYSE:ELV) was Jean-Marie Eveillard’s First Eagle Investment Management which owns a $902 million stake in the company.

ClearBridge Large Cap Value Strategy made the following comment about Elevance Health, Inc. (NYSE:ELV) in its Q3 2023 investor letter:

“Our health care positioning also fared well. We continue to maintain an overweight position to managed care companies via long-term holdings in UnitedHealth and Elevance Health, Inc. (NYSE:ELV), as we believe the short cycle nature of their insurance franchises allows them to reprice their book of business in a relatively short time frame, even if health care costs come in higher than previously anticipated.”