Seth Klarman invests in ELV

What happened: Legendary investor Seth Klarman has been increasing his exposure to Elevance Health (ELV), a managed care company. Klarman's Baupost Group held a $373.3 million stake in ELV as of Q1 2026, making it one of his top holdings. Klarman's bullish stance is supported by Greenskeeper Asset Management, which gained 10.9% in ELV during Q2 2026, and Harris Oakmark, which highlighted ELV's potential in its Q2 letter. Meanwhile, Klarman has also shown confidence in other stocks like Fiserv (FISV) and Eagle Materials (EXP), doubling his stake in FISV since 2021.

Market impact: Klarman's investments drive interest in value stocks, particularly in the healthcare sector. ELV's stock price has responded positively, trading at a 13x forward P/E with 43% upside potential. The market is anticipating a margin reversal for ELV, with Baron Capital noting its Q2 2026 performance. This narrative could influence investors' views on other managed care stocks and value plays in the broader market.

What to watch next: Investors should closely monitor ELV's earnings releases, with the next one scheduled for Q3 2026. Klarman's Baupost Group's 13F filings, typically released 45 days after each quarter-end, will also provide insights into his portfolio's activity. Additionally, regulatory decisions affecting the healthcare sector could further shape this narrative.