Sound Shore Management, an investment management firm, has released its investor letter for the fourth quarter of 2025. You can download a copy of the report here. In Q4 2025, The Sound Shore Fund Investor Class (SSHFX) and Institutional Class (SSHVX) advanced 7.83% and 7.87%, respectively, compared to the S&P 500’s 2.66% return and the Russell 1000 Value Index’s 3.81%. In 2025, the SSHFX and SSHVX returned 18.20% and 18.42%, respectively, ahead of the S&P 500’s 17.88% return and Russell Value’s return of 15.91%. Despite initial worries about policy changes, inflation, and economic growth, investors’ confidence improved in the second half of the year, and equities rose through year-end. Healthcare was the leading performer in the fourth quarter. The Fund’s performance was driven by a diverse group of companies across sectors in an AI and technology-dominated market. The firm focuses on identifying opportunities in industry shifts, management transitions, and undervalued assets. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Sound Shore Management highlighted Warner Bros. Discovery, Inc. (NASDAQ:WBD) as one of its leading contributors. Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a leading media and entertainment company that has made news lately due to competing acquisition offers. On February 13, 2026, Warner Bros. Discovery, Inc. (NASDAQ:WBD) stock closed at $27.99 per share. One-month return of Warner Bros. Discovery, Inc. (NASDAQ:WBD) was -2.06%, and its shares are up 170.70% over the past twelve months. Warner Bros. Discovery, Inc. (NASDAQ:WBD)has a market capitalization of $69.401 billion.
Sound Shore Management stated the following regarding Warner Bros. Discovery, Inc. (NASDAQ:WBD) in its fourth quarter 2025 investor letter:
“Some of our best contributors for 2025 included leading electronics and industrial assembler FLEX, global media company Warner Bros. Discovery, Inc. (NASDAQ:WBD) and the aforementioned Citigroup. Importantly, each was purchased for very attractive valuations, relative to our estimates of earnings power, while having their own drivers of value leading to improved earnings. Warner Bros. restructured into two parts to highlight the growth of its streaming and studio businesses and then surged following reports of a potential takeover.”
Warner Bros. Discovery, Inc. (NASDAQ:WBD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 70 hedge fund portfolios held Warner Bros. Discovery, Inc. (NASDAQ:WBD) at the end of the third quarter, up from 67 in the previous quarter. While we acknowledge the potential of Warner Bros. Discovery, Inc. (NASDAQ:WBD) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
