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River Road Asset Management, an investment management company released its “River Road Large Cap Value Select Fund” Q4 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, AMG River Road Large Cap Value Select Fund returned 0.43% compared to (1.98%) return for the Russell 1000® Value Index. For the year 2024, the fund returned 24.59% significantly outperforming Index return of 14.37%. Stocks rallied in November after a Republican victory but declined sharply following hawkish Fed comments. Shorter duration stocks, including small caps and value, lost most of their post-election gains by the end of December. For more information on the fund’s best picks in 2024, please check its top five holdings.
In its fourth quarter 2024 investor letter, River Road Large Cap Value Select Fund emphasized stocks such as Elevance Health, Inc. (NYSE:ELV). Elevance Health, Inc. (NYSE:ELV) is a health benefits company that operates through Health Benefits, CarelonRx, Carelon Services, and Corporate & Other segments. The one-month return of Elevance Health, Inc. (NYSE:ELV) was 8.84%, and its shares lost 16.70% of their value over the last 52 weeks. On March 27, 2025, Elevance Health, Inc. (NYSE:ELV) stock closed at $431.95 per share with a market capitalization of $98.205 billion.
River Road Large Cap Value Select Fund stated the following regarding Elevance Health, Inc. (NYSE:ELV) in its Q4 2024 investor letter:
"Another bottom contributor during the quarter was Elevance Health, Inc. (NYSE:ELV), the largest managed care organization in the U.S. with operations spanning commercial insurance, Medicaid (where it ranks second nationally), and pharmacy benefits management. Operating under the prestigious Blue Cross Blue Shield brand, ELV leverages its unmatched national scale and dominant local market presence (~35% share in 14 core markets) to maintain the lowest cost position across 70% of its footprint. We believe this cost advantage creates a powerful earnings flywheel, as savings shared with members drive higher retention rates and strengthen negotiating power with health care providers, enabling the company to deliver 14% annual earnings growth over the past decade with 12-15% growth projected ahead. Despite this compelling growth profile, the stock trades at a significant discount to the broader market, presenting an attractive opportunity in the large cap space.