Sound Shore Management, an investment management firm, has released its investor letter for the third quarter of 2023. A copy of the same can be downloaded here. In the third quarter, the Sound Shore Fund Investor Class (SSHFX) and Institutional Class (SSHVX) declined 2.01% and 1.94%, respectively outperforming the Russell 1000 Value Index (Russell Value) which declined 3.16%. The three-year annualized gains for SSHFX and SSHVX were 11.83% and 12.05%, respectively, ahead of the Russell Value’s 11.05%. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Sound Shore Management highlighted stocks like GE HealthCare Technologies Inc. (NASDAQ:GEHC) in the third quarter 2023 investor letter. Headquartered in Chicago, Illinois, GE HealthCare Technologies Inc. (NASDAQ:GEHC) is a medical technology, pharmaceutical diagnostics and digital solutions providing company. On December 20, 2023, GE HealthCare Technologies Inc. (NASDAQ:GEHC) stock closed at $75.44 per share. One-month return of GE HealthCare Technologies Inc. (NASDAQ:GEHC) was 2.50%, and its shares gained 30.97% of their value over the last 52 weeks. GE HealthCare Technologies Inc. (NASDAQ:GEHC) has a market capitalization of $34.344 billion.
Sound Shore Management made the following comment about GE HealthCare Technologies Inc. (NASDAQ:GEHC) in its Q3 2023 investor letter:
“That said, current macro factors of higher inflation, rising rates, and a slowing economy are affecting stock prices in the short-term. Against this backdrop, many consumer stocks and financing-based business models declined in the third quarter. For example, GE HealthCare Technologies Inc. (NASDAQ:GEHC) was our largest detractor for the period. A recent spinout from GE, the company is the world’s largest medical imaging supplier with steady growth and higher margins. We purchased the stock in the first quarter of 2023 when it was trading at 14 times normalized earnings, a significant discount to peers. Our research concluded that GEHC’s profit margins were temporarily depressed due to the spinoff and one-time Research & Development charges, and that management’s plan for improvement was credible. The stock got off to a strong start early in the year, but returned the bulk of its gains as higher borrowing rates for their customers created demand uncertainty. As well, 15% of GE Healthcare’s business is from China, where demand has slowed along with the economy. We view these headwinds as temporary, and added to our position during the stock’s recent pullback.”
A doctor examining a patient using a vascular disease diagnosis device.
GE HealthCare Technologies Inc. (NASDAQ:GEHC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held GE HealthCare Technologies Inc. (NASDAQ:GEHC) at the end of third quarter which was 44 in the previous quarter.
We discussed GE HealthCare Technologies Inc. (NASDAQ:GEHC) in another article and shared the list of best young stocks to buy and hold for 20 years. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
