Impax Points to Elevance Guidance Cut as Q3 Fund Lags Russell 1000
The manager blames higher Medicaid/ACA costs for a double‑digit earnings reduction that weighed on the shares.
Overview
- Impax’s US Sustainable Economy Fund returned 7.33% in Q3 2025 versus 7.99% for the Russell 1000, citing a market tilt toward high‑risk, high‑momentum, lower‑quality factors.
- Impax highlighted Elevance Health as a high‑resilience holding aligned to its Health Access and Innovation theme.
- Elevance reduced full‑year earnings guidance by more than 10% due to increased costs in Medicaid and Affordable Care Act plan channels, and the stock weakened following the update.
- Despite the outlook cut, Elevance reported Q3 2025 operating revenue of $50.1 billion, up 12% year over year.
- As of Jan. 7, 2026, Elevance closed at $366.69 with a market cap of $82.571 billion, a one‑month gain of 1.80% and a 52‑week decline of 4.32%, with hedge fund holders rising to 82 from 67 in the prior quarter per Insider Monkey.