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 Capital One Financial Corporation (NYSE:COF) in its Q4 2023 investor letter. Headquartered in McLean, Virginia, Capital One Financial Corporation (NYSE:COF) is a financial holding company. On February 13, 2024, Capital One Financial Corporation (NYSE:COF) stock closed at $133.53 per share. One-month return of Capital One Financial Corporation (NYSE:COF) was 5.91%, and its shares gained 16.49% of their value over the last 52 weeks. Capital One Financial Corporation (NYSE:COF) has a market capitalization of $50.795 billion.
Sound Shore Management made the following regarding Capital One Financial Corporation (NYSE:COF) in its fourth quarter 2023 investor letter:
“Long-term holding Capital One Financial Corporation (NYSE:COF) was also one of our better performers this quarter. The company boasts a diversified deposits base with about 80% FDIC insured, well above industry average. It is the only major bank 100% in the cloud, which enables better underwriting and quicker response to changes in the environment. This technology also helps reduce operating and fraud cost while freeing up cash flow for reinvestment in marketing to grow products (Venture X card) and build its brand. Periods of stress, like we saw in the banking sector during March, are a reminder of the underwriting acumen and high quality deposits of Capital One. We added to our position after the fallout, knowing that the company’s seasoned management team had steered capably through previous cycles. Today, as credit card delinquencies have risen to more normal levels, Capital One is already reporting a slowing in delinquency growth. Conversely, some peers saw prior underwriting missteps begin to surface in 2023. Currently trading at 9 times 2024 consensus earnings and around book value, we remain enthusiastic about the investment.”
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Capital One Financial Corporation (NYSE:COF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 49 hedge fund portfolios held Capital One Financial Corporation (NYSE:COF) at the end of third quarter which was 51 in the previous quarter.
We discussed Capital One Financial Corporation (NYSE:COF) in another article and shared Oakmark Global Fund’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.
