It does...the instructions come in three parts, like so:
1)Exert an elf->Reveal the top card
2)IF it is an elf card, remove three threats.
3)Place that card beneath your draw deck (note the lack of an "if" statement)
and I'm no shining tactician, but it seems to me that drawing
Lttg late-game seems to be a part of the strategy...although others may prove me wrong.