Sound Shore Management, an investment management firm, has released its investor letter for the fourth quarter of 2023. A copy of the same can be downloaded here. The fund’s Investor Class (SSHFX) and Institutional Class (SSHVX) advanced 12.43% and 12.50%, respectively, in the fourth quarter of 2023, outperforming the Russell 1000 Value Index’s (Russell Value) 9.50% return. Sound Shore’s portfolio had a great year in 2023, returning 17.42% for SSHFX and 17.67% for SSHVX, both significantly ahead of the 11.46% return for the Russell Value. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Sound Shore Management featured stocks such as Organon & Co. (NYSE:OGN) in the fourth quarter 2023 investor letter. Headquartered in Jersey City, New Jersey, Organon & Co. (NYSE:OGN) is a pharmaceutical company that develops and delivers health solutions through a portfolio of prescription therapies and medical devices. On February 13, 2024, Organon & Co. (NYSE:OGN) stock closed at $16.12 per share. One-month return of Organon & Co. (NYSE:OGN) was 1.38%, and its shares lost 44.91% of their value over the last 52 weeks. Organon & Co. (NYSE:OGN) has a market capitalization of $4.12 billion.
Sound Shore Management made the following regarding Organon & Co. (NYSE:OGN) in its fourth quarter 2023 investor letter:
“Value investing often requires patience, and the passing of legendary value investor and Berkshire Hathaway’s Vice Chairman, Charlie Munger, reminded us of one of his more insightful quotes…“It’s waiting that helps you as an investor and a lot of people just can’t stand to wait.” Healthcare holding Organon & Co. (NYSE:OGN) provides a similar scenario today. The stock lagged in the fourth quarter and for 2023 due to concerns about long-term revenue drivers. Non-operational factors (currency, interest rates and separation charges) have masked growth that has exceeded expectations. A spinoff from Merck (MRK), Organon (OGN) has a very steady pharmaceutical business and is investing to grow its women’s health franchise. Trading for just 4 times earnings, the company is growing steadily, investing in its research & development pipeline and generating ample cash flow to repay its debt. Despite near-term weakness, we think Organon is an attractive opportunity for patient, long-term investors like Sound Shore.”
A pharmacist wearing a white lab coat and a face mask dispenses biosimilars at a pharmacy.
Organon & Co. (NYSE:OGN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held Organon & Co. (NYSE:OGN) at the end of third quarter which was 31 in the previous quarter.
We discussed Organon & Co. (NYSE:OGN) in another article and shared Miller Value Partners Income Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q4 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.
