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 The Boeing Company (NYSE:BA). The Boeing Company (NYSE:BA) is an aerospace company, that designs, develops, manufactures, and sells commercial and military aircraft, satellites, and space systems. The one-month return of The Boeing Company (NYSE:BA) was 5.82%, and its shares lost 8.24% of their value over the last 52 weeks. On February 18, 2025, The Boeing Company (NYSE:BA) stock closed at $184.97 per share with a market capitalization of $138.741 billion.
Sound Shore Management stated the following regarding The Boeing Company (NYSE:BA) in its Q4 2024 investor letter:
“The Boeing Company (NYSE:BA): A detractor for the period was global aerospace leader Boeing. We were able to purchase the stock at a prospective 10% free cash flow yield on a normalized scenario. Over the past couple of years the stock rebounded from operational challenges and had surged on improved free cash generation from increasing order activity, driven by global demand for aircraft. It was one of our best performers in the fourth quarter of 2023 after its November plane deliveries increased. When additional manufacturing issues surfaced in January 2024, we believed it would push restructuring efforts back enough to warrant a review by our team. Reacting quickly, we sold our position at a gain in the first quarter, albeit less than before the news.”
A Boeing 737 aircrafts parked in an airport terminal with passengers awaiting to board.
The Boeing Company (NYSE:BA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held The Boeing Company (NYSE:BA) at the end of the third quarter which was 42 in the previous quarter. The Boeing Company’s (NYSE:BA) revenue for the fourth quarter of 2025 stood at $15.2 billion, marking an 31% decline, largely due to a decrease in commercial deliveries. While we acknowledge the potential of The Boeing Company (NYSE:BA) 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 The Boeing Company (NYSE:BA) and shared the list of best large cap defense stocks to buy. 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.