Hotchkis & Wiley Global Value Fund on Elevance Health, Inc.
Thesis
Hotchkis & Wiley sees Elevance Health as a large, high-quality health insurer whose profitability is beginning to recover. Despite the share-price rebound, the stock still trades at a discount to the market. The fund believes that discount is attractive because the business can grow faster than GDP while returning most of its cash generation to shareholders.
“Despite the recent move, the company remains priced at a discount to the market despite being a compelling business that grows above GDP while returning most of its cash to shareholders.”