Sound Shore Fund, Inc. on Elevance Health, Inc.

Sound Shore identified Elevance after the stock sold off on concerns about regulatory risk and weak margins in Medicaid and Medicare. At roughly 13 times earnings with double-digit earnings growth, the fund believes the market is underestimating the strength of the managed-care franchise. Management is focused on near-term margin improvement while continuing to return capital through repurchases and dividends. Internal AI tools have also reduced prior-authorization denials and improved payment integrity, which Sound Shore expects to lower administrative costs and support operating margins.