Sound Shore Management, an investment management firm, has released its letter to investors 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 return of 2.66% and the Russell 1000 Value Index’s 3.81% return. In 2025, SSHFX and SSHVX returned 18.20% and 18.42%, respectively, ahead of the S&P 500’s 17.88% return and Russell Value’s 15.91% return. Despite initial concerns about policy changes, inflation and economic growth, investor confidence improved in the second half of the year and stocks rose through the end of the year. Healthcare had the best performance in the fourth quarter. The Fund’s performance was driven by a diverse group of companies from all sectors in a market dominated by artificial intelligence and technology. The firm focuses on identifying opportunities in industry changes, management transitions and undervalued assets. Review the strategy’s top five holdings to learn about its key picks for 2025.
In its Q4 2025 investor letter, Sound Shore Management highlighted Huntington Ingalls Industries, Inc. (NYSE:HII) as one of its top contributors. Huntington Ingalls Industries, Inc. (NYSE:HII) is a military shipbuilding company based in the United States. On February 13, 2026, shares of Huntington Ingalls Industries, Inc. (NYSE:HII) closed at $418.78 per share. Huntington Ingalls Industries, Inc. (NYSE:HII)’s monthly performance was -1.67% and its shares have risen 159.68% in the past twelve months. Huntington Ingalls Industries, Inc. (NYSE:HII) has a market capitalization of $16.434 billion.
Sound Shore Management stated the following regarding Huntington Ingalls Industries, Inc. (NYSE:HII) in its Q4 2025 investor letter:
“In addition, Huntington Ingalls Industries, Inc. (NYSE:HII), the largest U.S. shipbuilder, was another notable player in 2025. HII, as it is also known, builds nuclear and non-nuclear warships for the Navy and Coast Guard and also provides aftermarket services for those vessels around the world. We bought the stock when it was trading at 13 times earnings below normal with a free cash flow yield of 7%. After overcoming supply chain complexity and post-COVID labor productivity issues, the stock soared after posting better-than-expected earnings and dramatic growth in its order book. “With the U.S. Navy’s commitment to rapidly expand the fleet and the prospect of further margin gains with the completion of the project, we believe the stock is just beginning to reflect its growth potential.”
