Sound Shore Management, an investment management firm, has released its investor letter for the first quarter of 2025. A copy of the letter can be downloaded here. The fund’s Investor Class (SSHFX) and Institutional Class (SSHVX) declined 1.93% and 1.89% respectively, in the first quarter of 2025 compared to a 2.14% return for the Russell 1000 Value Index (Russell Value) and -4.27% return for the Standard & Poor 500 Index (S&P 500). Sound Shore’s 35-year annualized returns were 10.13% and 10.41% for SSHFX and SSHVX, respectively, as of March 31, 2025, and were ahead of the Russell Value at 9.81% and trailed the S&P 500 at 10.56%. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Sound Shore Management highlighted stocks such as Vistra Corp. (NYSE:VST). Vistra Corp. (NYSE:VST) is an integrated retail electricity and power generation company. The one-month return of Vistra Corp. (NYSE:VST) was 24.89%, and its shares gained 54.91% of their value over the last 52 weeks. On May 23, 2025, Vistra Corp. (NYSE:VST) stock closed at $158.16 per share with a market capitalization of $53.669 billion.
Sound Shore Management stated the following regarding Vistra Corp. (NYSE:VST) in its Q1 2025 investor letter:
“Finally, a strong contributor that we have discussed in past letters, power producer Vistra Corp. (NYSE:VST) continued its upward trajectory from last year into the first quarter. A long-term holding, Vistra is a low-cost provider with increasingly important carbon-free nuclear facilities to power data centers. We had been trimming our position as the stock approached our price target and sold the last of our holding early in the quarter.”
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Vistra Corp. (NYSE:VST) is in 28th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 102 hedge fund portfolios held Vistra Corp. (NYSE:VST) at the end of the first quarter which was 120 in the previous quarter. While we acknowledge the potential of Vistra Corp. (NYSE:VST) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
In another article, we covered Vistra Corp. (NYSE:VST) and shared the list of best unstoppable stocks that pay dividends. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.
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