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 Teva Pharmaceutical Industries Limited (NYSE:TEVA). Headquartered in Tel Aviv, Israel, Teva Pharmaceutical Industries Limited (NYSE:TEVA) engages in the development and distribution of generic and other medicines, and biopharmaceutical products. The one-month return of Teva Pharmaceutical Industries Limited (NYSE:TEVA) was -24.72%, and its shares gained 27.46% of their value over the last 52 weeks. On February 18, 2025, Teva Pharmaceutical Industries Limited (NYSE:TEVA) stock closed at $16.57 per share with a market capitalization of $19.17 billion.
Sound Shore Management stated the following regarding Teva Pharmaceutical Industries Limited (NYSE:TEVA) in its Q4 2024 investor letter:
“Teva Pharmaceutical Industries Limited (NYSE:TEVA): Traditionally known as a generic drug company, Teva has a growing branded drug business and a promising pipeline. Following a period of poor capital allocation decisions by prior management teams, we were able to invest at a very attractive 4 times earnings and with a 20%+ free cash flow yield. New leadership has focused on execution and pipeline development, leading to upward inflection in margins and positive clinical trial results. Teva remains remarkably cheap, trading at a significant discount to its intrinsic value. (Please see our 2Q 2024 letter for a more in-depth review of Teva.)”
A close-up shot of various types of medicines on a table, illustrating the specialty and generic products offered by the pharmaceutical company.
Teva Pharmaceutical Industries Limited (NYSE:TEVA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 61 hedge fund portfolios held Teva Pharmaceutical Industries Limited (NYSE:TEVA) at the end of the third quarter which was 68 in the previous quarter. While we acknowledge the potential of Teva Pharmaceutical Industries Limited (NYSE:TEVA) 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 Teva Pharmaceutical Industries Limited (NYSE:TEVA) and shared the list of best Middle East and Africa 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.