Sound Shore Fund Surges 17% in Q1, Outpacing Market
The Sound Shore Fund (MUTF: SSHFX and SSHVX) delivered exceptional returns in the first quarter of 2024, extending its long-term outperformance. The Fund’s Investor Class and Institutional Class surged 17.05% and 17.10%, respectively, significantly surpassing the Russell 1000 Value Index’s 8.99% gain.
The Fund’s robust performance was driven by a portfolio of 12 holdings across seven sectors, each delivering over 20% growth in the quarter. Notable contributors included Fidelity National Information Services in financials, Flex in technology, General Motors in consumer discretionary, Organon in healthcare, and PACCAR in industrials.
The Fund’s managers, Harry Burn, III, John P. DeGulis, and T. Gibbs Kane, Jr., attribute their success to their contrarian investment approach, which emphasizes not only valuation but also the adaptability and sustainability of company business models. They highlight the resilience of independent power producers Vistra and Constellation Energy, which benefited from rising electricity prices and strategic positioning in the evolving energy market.
Despite the strong first-quarter performance, the Fund’s portfolio remains attractively valued, with a forward price-earnings multiple of 11.7 times consensus estimates, well below the S&P 500 Index (20.9x) and the Russell Value (15.9x). The managers believe this presents a compelling opportunity for investors seeking value and long-term growth.
Key Features:
* Sound Shore Fund’s Investor Class and Institutional Class advanced 17.05% and 17.10% in Q1 2024.
* The Fund outperformed the Russell 1000 Value Index, which gained 8.99% in the same period.
* The Fund’s strong returns were driven by a diverse portfolio of 12 holdings that each gained over 20%.
* The Fund’s managers attribute their success to their contrarian investment process, which focuses on the adaptability and sustainability of company business models.
* The Fund remains attractively valued, with a forward price-earnings multiple of 11.7x consensus estimates.
