GreensKeeper Asset Management, an investment management company, released its fourth quarter investor letter. A copy of the letter can be downloaded here. The Value Fund finished 2024 +23.6% net of fees and expenses, which is slightly above the S&P/TSX +21.7% return, broadly in line with the DJIA +24.8% and trailing the S&P500 +35.7%. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
In its fourth quarter 2024 investor letter, GreensKeeper Asset Management emphasized stocks such as Elevance Health, Inc. (NYSE:ELV) in the fourth quarter 2024 investor letter. Elevance Health, Inc. (NYSE:ELV) is a health benefits company that operates through Health Benefits, CarelonRx, Carelon Services, and Corporate & Other segments. The one-month return of Elevance Health, Inc. (NYSE:ELV) was 0.10%, and its shares lost 24.21% of their value over the last 52 weeks. On February 12, 2025, Elevance Health, Inc. (NYSE:ELV) stock closed at $385.66 per share with a market capitalization of $89.443 billion.
GreensKeeper Asset Management stated the following regarding Elevance Health, Inc. (NYSE:ELV) in its Q4 2024 investor letter:
“We weren’t perfect in 2024, and Elevance Health, Inc. (NYSE:ELV) -22% was our worst performer. The American healthcare insurer struggled during the third quarter as the industry grappled with healthcare costs rising significantly above historic levels. On the government side of the business (Medicaid, Medicare Advantage), reimbursement rates are typically set annually based on prior-year data. In periods of sharp cost increases, insurers’ margins suffer due to the time lag before reimbursement rates are adjusted to reflect the new environment. ELV is working with government agencies to match costs with rates, though this will likely take another three to six months to materialize. ELV’s commercial segment, which generates the bulk of the company’s insurance profits, continues to grow revenues with margins comparable to historical averages. ELV has proven it can adapt to changing government regimes, and we believe it will continue to do so with the incoming Trump administration. We are comfortable with our position and feel the market is significantly undervaluing ELV compared with our assessment of the business’s intrinsic value.”
A medical professional working at a computer, utilizing the company’s digital solutions to improve care quality for consumers.
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 third quarter which was 73 in the previous quarter. Elevance Health, Inc. (NYSE:ELV) generated $175.2 billion in total operating revenue in 2024, an increase of approximately 3% from previous year. 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 cheapest AI stock.
In another article we discussed Elevance Health, Inc. (NYSE:ELV) and shared the list of best health insurance stocks to buy in 2025. In addition, please check out our hedge fund investor letters Q3 2024 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.