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Sound Shore Management, an investment management firm, has released its investor letter for the third quarter of 2024. A copy of the letter can be downloaded here. The fund’s Investor Class (SSHFX) and Institutional Class (SSHVX) appreciated 6.70% and 6.74%, respectively, in the third quarter of 2024, outperforming 5.89% return for the Standard & Poor’s 500 Index (S&P 500), and trailing 9.43% return for the Russell 1000 Value Index (Russell Value). In addition, please check the fund’s top five holdings to know its best picks in 2024.
Sound Shore Management highlighted stocks like FedEx Corporation (NYSE:FDX) in the third quarter 2024 investor letter. Founded in 1971, FedEx Corporation (NYSE:FDX) offers transportation, e-commerce, and business services. The one-month return of FedEx Corporation (NYSE:FDX) was -8.03%, and its shares gained 11.23% of their value over the last 52 weeks. On December 19, 2024, FedEx Corporation (NYSE:FDX) stock closed at $275.88 per share with a market capitalization of $67.404 billion.
Sound Shore Management stated the following regarding FedEx Corporation (NYSE:FDX) in its Q3 2024 investor letter:
"Meanwhile, detractors of note for the quarter were connected by a common theme: signs of a slowing economy. NXP Semiconductors, a leading chip maker for the auto industry, was lower on uncertain auto demand and package hauler FedEx Corporation (NYSE:FDX) lagged on muted volume trends. Importantly, both of these companies have ways to increase earnings outside of the business cycle, but are not entirely immune to the recent slowdown. Business cyclicality requires investor patience and a long-term perspective - we have both."
A driver unloading packages from a van for a time-critical delivery.
FedEx Corporation (NYSE:FDX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held FedEx Corporation (NYSE:FDX) at the end of the third quarter which was 59 in the previous quarter. While we acknowledge the potential of FedEx Corporation (NYSE:FDX) 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 FedEx Corporation (NYSE:FDX) and shared Carillon Eagle Growth & Income Fund's views on the company. FedEx Corporation (NYSE:FDX) detracted from the performance of Longleaf Partners Fund in the third quarter after missing expectations. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.