We just covered Forget AI: Legendary Value Investor Seth Klarman Is Buying These 10 Value Stocks in 2026. Elevance Health (NYSE:ELV) ranks #3 (see Seth Klarman Is Buying These 5 Value Stocks in 2026).
Baupost's Stake: $373,301,000
Elevance Health (NYSE:ELV) is a key holding in Klarman's portfolio. It is one of the largest health insurers in the US, serving 45.4 million members. The stock has been hammered by rising healthcare costs, disappointing government payment rates, and regulatory pressure. But the recovery appears to be gaining traction. In Q1 2026, revenue and EPS showed growth and the benefit expense ratio — which measures claims costs against premium income — improved to 86.8%, down from 90% in 2025.
A key regulatory cloud also lifted. The Centers for Medicare and Medicaid Services raised its 2027 Medicare Advantage payment rate to levels better than the market expected.
Management responded by raising full-year 2026 adjusted EPS guidance.
Baupost's Stake: $373,301,000
Elevance Health (NYSE:ELV) is a key holding in Klarman's portfolio. It is one of the largest health insurers in the US, serving 45.4 million members. The stock has been hammered by rising healthcare costs, disappointing government payment rates, and regulatory pressure. But the recovery appears to be gaining traction. In Q1 2026, revenue and EPS showed growth and the benefit expense ratio — which measures claims costs against premium income — improved to 86.8%, down from 90% in 2025.
A key regulatory cloud also lifted. The Centers for Medicare and Medicaid Services raised its 2027 Medicare Advantage payment rate to levels better than the market expected.
Management responded by raising full-year 2026 adjusted EPS guidance.
5 days ago
