Sound Shore Management, an investment management company, has released its fourth quarter 2023 investor letter. A copy of the same can be downloaded here. The fund's investor class (SSHFX) and institutional investor class (SSHVX) rose 12.43% and 12.50%, respectively, in the fourth quarter of 2023, outperforming the Russell 1000 Value Index's (Russell Value) return of 9.50%. Soundshore's portfolio had a great year in 2023, with SSHFX returning 17.42% and SSHVX returning 17.67%, both significantly outperforming Russell Value's return of 11.46%. Plus, check out the fund's top 5 holdings to find out the best stocks for 2023.
Sound Shore Management highlighted stocks such as Capital One Financial Corporation (NYSE:COF) in its Q4 2023 Investor Letter. Capital One Financial Corporation (NYSE:COF) is a financial holding company headquartered in McLean, Virginia. On February 13, 2024, Capital One Financial Corporation (NYSE: COF) stock closed at $133.53 per share. Capital One Financial Corporation (NYSE: COF)'s 1-month return is his 5.91%, and the company's stock has increased his 16.49% in value over the past 52 weeks. Capital One Financial Corporation (NYSE:COF) has a market capitalization of $50.795 billion.
Sound Shore Management said the following regarding Capital One Financial Corporation (NYSE:COF) in its Q4 2023 Investor Letter:
“Long term holding” Capital One Financial Corporation (NYSE:COF) was another company that performed well this quarter. The firm is approximately 80% FDIC insured and boasts a diversified deposit base that significantly exceeds the industry average. We are the only major bank to be 100% cloud-based, allowing us to improve our underwriting operations and respond quickly to changes in the environment. This technology helps reduce operating and fraud costs, while also freeing up cash flow to reinvest in marketing to grow the product (Venture X Card) and build the brand. Times of stress, such as the one seen in the banking sector in March, are a reminder of Capital One's underwriting acumen and high quality deposits. We further strengthened our position in the aftermath, knowing that our seasoned management team had successfully navigated the cycle thus far. Capital One is already reporting a slowdown in delinquency growth, as credit card delinquencies have now risen to more normal levels. Conversely, some peers see previous underwriting failures beginning to surface in 2023. Currently trading around 9x 2024 consensus earnings and book value, we remain enthusiastic about investing. ”
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Capital One Financial Corporation (NYSE:COF) isn't on our list of 30 most popular stocks among hedge funds. Our database shows that 49 hedge fund portfolios held Capital One Financial Corporation (NYSE:COF) at the end of the third quarter, compared to 51 in the prior quarter.
We discussed Capital One Financial Corporation (NYSE:COF) in a separate article and shared Oakmark Global Fund's view on the company. Additionally, for investor letters from hedge funds and other leading investors, please visit our Hedge Fund Investor Letters Q4 2023 page.
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Disclosure: None. This article was originally published on Insider Monkey.
