Elevance Health Positioned for Long-Term Growth Amid Macro Volatility

Hotchkis & Wiley has highlighted Elevance Health (ELV) as a strategic long-term position, anticipating margin improvements despite a challenging medium-term environment. The assessment was detailed in the firm's first-quarter 2026 investor letter for the Large Cap Fundamental Value Fund. The fund's commentary arrives during a period of significant macroeconomic instability. During the first quarter of 2026, the S&P 500 Index fell by 4.4%, a decline the firm attributes to a combination of geopolitical uncertainty and shifting investment themes surrounding artificial intelligence. Further compounding market stress was extreme volatility in the energy sector. According to the letter, Brent crude oil prices surged by more than 100% during the quarter, contributing to the broader economic uncertainty. Despite these headwinds, the fund maintains a fundamental value approach. By focusing on companies like Elevance Health, the manager aims to capitalize on structural recovery and efficiency gains that are expected to materialize over a longer time horizon.