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 Constellation Energy Corporation (NASDAQ:CEG) in the Q3 2023 investor letter. Headquartered in Baltimore, Maryland, Constellation Energy Corporation (NASDAQ:CEG) is a US-based electricity generator and distributor. On December 20, 2023, Constellation Energy Corporation (NASDAQ:CEG) stock closed at $117.01 per share. One-month return of Constellation Energy Corporation (NASDAQ:CEG) was -5.06%, and its shares gained 33.99% of their value over the last 52 weeks. Constellation Energy Corporation (NASDAQ:CEG) has a market capitalization of $37.371 billion.
Sound Shore Management made the following comment about Constellation Energy Corporation (NASDAQ:CEG) in its Q3 2023 investor letter:
“On the plus side of the ledger, we had strong contributions from independent power producers Vistra and Constellation Energy Corporation (NASDAQ:CEG). Both stocks surged with higher US electricity prices as strong summer demand exposed reliability issues in many regions of the nation’s electric grid. Meanwhile, Midwest focused Constellation is the biggest producer of carbon-free electricity in the US with nuclear power plants representing the majority of its capacity. We added the name in January 2023 when the stock was trading at a below normal 15 times earnings. Our research identified an upside to earnings power from maturing hedges and regulatory changes, including the Inflation Reduction Act’s nuclear credit. A recent spinout from Exelon Corp, we viewed the strength of Constellation’s clean, reliable baseload power model as an appealing and high potential offering for residential and commercial customers. The company’s recent contract to supply Microsoft at premium power prices is evidence of the opportunity. Constellation is yet another example of an industry undergoing tremendous change that can offer attractive investment opportunities for investors with patience and a research process to uncover specific companies that are well positioned.”
A network of solar panels on the rooftop of a commercial building, creating electricity for places of business.
Constellation Energy Corporation (NASDAQ:CEG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held Constellation Energy Corporation (NASDAQ:CEG) at the end of third quarter which was 46 in the previous quarter.
We discussed Constellation Energy Corporation (NASDAQ:CEG) in another article and shared ClearBridge All Cap Value Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 50 Cheapest Places to Buy a House in Every State
- 25 European Cities with Most Affordable Monthly Rents
- 16 Best Places to Buy a Vacation Home in 2024
Disclosure: None. This article is originally published at Insider Monkey.
