Elevance Health was one of the biggest detractors for the Heartland Opportunistic Value Equity Strategy in the first quarter of 2026, as the entire health insurance industry faced elevated medical costs and policy disruptions. The strategy noted that Elevance, a large diversified managed care insurer operating under the Blue Cross Blue Shield brand in several states, is likely to emerge from this period with more market share and embedded earnings power. Management is buying back stock and the company trades at a 30% discount to the Russell 3000 Value Index based on estimated next-twelve-month earnings, despite having traded on par with the benchmark in prior cycles. The fund upgraded into Elevance last year after harvesting losses in a smaller industry player, citing its stronger balance sheet and advantaged scale. The strategy appreciated 3.66% in the quarter, outperforming the Russell 3000 Value Index's 2.23% gain.
Elevance Health IncStock buyback and 30% valuation discount to benchmark, with fund upgrading position.