Sound Shore Management, an investment management firm, has released its investor letter for the fourth quarter of 2025. You can download a copy of the report here. In Q4 2025, The Sound Shore Fund Investor Class (SSHFX) and Institutional Class (SSHVX) advanced 7.83% and 7.87%, respectively, compared to the S&P 500’s 2.66% return and the Russell 1000 Value Index’s 3.81%. In 2025, the SSHFX and SSHVX returned 18.20% and 18.42%, respectively, ahead of the S&P 500’s 17.88% return and Russell Value’s return of 15.91%. Despite initial worries about policy changes, inflation, and economic growth, investors’ confidence improved in the second half of the year, and equities rose through year-end. Healthcare was the leading performer in the fourth quarter. The Fund’s performance was driven by a diverse group of companies across sectors in an AI and technology-dominated market. The firm focuses on identifying opportunities in industry shifts, management transitions, and undervalued assets. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Sound Shore Management highlighted Flex Ltd. (NASDAQ:FLEX) as one of its leading contributors. Flex Ltd. (NASDAQ:FLEX) provides technology innovation, supply chain, and manufacturing solutions to data center, communications, enterprise, and power industries. On February 13, 2026, Flex Ltd. (NASDAQ:FLEX) stock closed at $64.24 per share. One-month return of Flex Ltd. (NASDAQ:FLEX) was -0.91%, and its shares are up 51.12% over the past twelve months. Flex Ltd. (NASDAQ:FLEX)has a market capitalization of $3.101 billion.
Sound Shore Management stated the following regarding Flex Ltd. (NASDAQ:FLEX) in its fourth quarter 2025 investor letter:
“Some of our best contributors for 2025 included leading electronics and industrial assembler Flex Ltd. (NASDAQ:FLEX), global media company Warner Bros. Discovery and the aforementioned Citigroup. Importantly, each was purchased for very attractive valuations, relative to our estimates of earnings power, while having their own drivers of value leading to improved earnings. Accelerating data center end-markets helped FLEX rise.
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