Elevance Health (ELV) Fell Due to Reduced Guidance

Impax Asset Management, an investment management company, released its “Impax US Sustainable Economy Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q3 2025, the portfolio lagged behind the Russell 1000. Similar to the second quarter, the US equity markets favored a risk-on approach, benefiting high-risk, high-momentum, and lower-quality factors. Although the portfolio’s focus on relatively modest, lower-risk, and high-quality factors contributed to the underperformance, the fund (Institutional Class) returned 7.33% in Q3 compared to 7.99% for the Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Impax US Sustainable Economy Fund 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 1.80%, and its shares lost 4.32% of their value over the last 52 weeks. On January 7, 2026, Elevance Health, Inc. (NYSE:ELV) stock closed at $366.69 per share, with a market capitalization of $82.571 billion.

Impax US Sustainable Economy Fund stated the following regarding Elevance Health, Inc. (NYSE:ELV) in its third quarter 2025 investor letter:

"Elevance Health, Inc. (NYSE:ELV) (Health Care, Managed Health Care) has a high Corporate Resilience Score and is aligned to the Health Access and Innovation theme. The stock was weaker after the company guided full year earnings estimates down over 10% as a result of increased costs in the Medicaid and Affordable Care Act plan channels."

Elevance Health, Inc. (NYSE:ELV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 82 hedge fund portfolios held Elevance Health, Inc. (NYSE:ELV) at the end of the third quarter, which was 67 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.

In another article, we covered Elevance Health, Inc. (NYSE:ELV) and shared the list of Artisan Value Fund's views on the company. 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.