Sound Shore Management, an investment management firm, has released its investor letter for the fourth quarter of 2024. A copy of the letter can be downloaded here. The fund’s Investor Class (SSHFX) and Institutional Class (SSHVX) appreciated 1.25% and 1.32% respectively, in the fourth quarter of 2024, trailing 2.41% return for the Standard & Poor’s 500 Index (S&P 500), and outperforming 1.98% return for the Russell 1000 Value Index (Russell Value). It was a strong year for the portfolio with both SSHFX and SSHVX returning 22.58% and 22.82%, well ahead of the Russell Value’s 14.37% return. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Sound Shore Management emphasized stocks such as Flex Ltd. (NASDAQ:FLEX). Flex Ltd. (NASDAQ:FLEX) offers manufacturing solutions that operates through Flex Agility Solutions (FAS) and Flex Reliability Solutions (FRS) segments. The one-month return of Flex Ltd. (NASDAQ:FLEX) was -4.18%, and its shares gained 56.22% of their value over the last 52 weeks. On February 18, 2025, Flex Ltd. (NASDAQ:FLEX) stock closed at $42.60 per share with a market capitalization of $16.32 billion.
Sound Shore Management stated the following regarding Flex Ltd. (NASDAQ:FLEX) in its Q4 2024 investor letter:
“Flex Ltd. (NASDAQ:FLEX): This contract manufacturing services company has evolved from low-value, electronics assembly to high-value, specialized manufacturing for industries like medical, industrial, and automotive. CEO Revathi Advaithi instilled operational discipline and focused on core differentiation, leading to double-digit earnings growth and expanding margins. We were able to invest in FLEX at less than 8 times depressed earnings as many investors were looking in the rear-view mirror.”
An engineer with a pen and paper designing a switchgear circuit diagram.
Flex Ltd. (NASDAQ:FLEX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held Flex Ltd. (NASDAQ:FLEX) at the end of the third quarter which was 46 in the previous quarter. In the fiscal third quarter of 2025, Flex Ltd. (NASDAQ:FLEX) generated $6.6 billion in revenues, with operating margins at 6.1%. While we acknowledge the potential of Flex Ltd. (NASDAQ:FLEX) 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 cheapest AI stock.
In another article we discussed Flex Ltd. (NASDAQ:FLEX) and shared AI news and ratings you probably missed. In addition, please check out our hedge fund investor letters Q4 2024 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.