Madison Investments, an investment advisor, released its “Madison Investors Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund advanced 8.5% compared to an 8.7% return for S&P 500 Index benchmark. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Madison Investors Fund highlighted stocks like Elevance Health, Inc. (NYSE:ELV) in the second quarter 2023 investor letter. Headquartered in Indianapolis, Indiana, Elevance Health, Inc. (NYSE:ELV) is a health benefits company. On July 13, 2023, Elevance Health, Inc. (NYSE:ELV) stock closed at $417.63 per share. One-month return of Elevance Health, Inc. (NYSE:ELV) was -5.77%, and its shares lost 14.58% of their value over the last 52 weeks. Elevance Health, Inc. (NYSE:ELV) has a market capitalization of $99.002 billion.
Madison Investors Fund made the following comment about Elevance Health, Inc. (NYSE:ELV) in its second quarter 2023 investor letter:
“We purchased Elevance Health, Inc. (NYSE:ELV) and trimmed Marsh & McLennan and Arch Capital. Elevance is the largest for-profit Blue Cross Blue Shield plan in the country, supporting the largest domestic membership base across the managed care industry. While national scale is important, local scale is critical as well, given the localized nature of healthcare delivery. Elevance scores well on both fronts, giving it strong bargaining power with providers, lower customer acquisition costs, deep population health data and analytics, and the ability to offer attractive health benefit packages. All this combines to create a formidable moat for its business.
We also believe the management team is top-notch. Since joining Elevance from a senior leadership position at peer UnitedHealth Group, CEO Gail Boudreaux has further leveraged the company’s scale advantage by expanding its internal healthcare services capabilities through a newly formed business unit called Carelon. As the industry transitions to a reimbursement system that emphasizes patient outcomes over procedure or testing volume, data analytics will be a crucial tool in managing patient care. Carelon has become the repository for many of these data analytics and healthcare service capabilities, and it should be an attractive growth platform for many years to come. Concerns around a possible slowdown in government-sponsored programs in Medicare Advantage and managed Medicaid gave us an opportunity to invest at a good price.”
Elevance Health, Inc. (NYSE:ELV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 81 hedge fund portfolios held Elevance Health, Inc. (NYSE:ELV) at the end of first quarter which was 75 in the previous quarter.
We discussed Elevance Health, Inc. (NYSE:ELV) in another article and shared the list of US companies with the highest profit margins. In addition, please check out our hedge fund investor letters Q2 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.
