Strong Year-Over-Year Revenue Growth, Supported Citigroup (C) in Q4

Core Insights - Sound Shore Management's investor letter for Q4 2025 highlights strong performance of its funds, with the Sound Shore Fund Investor Class (SSHFX) and Institutional Class (SSHVX) returning 7.83% and 7.87% respectively, outperforming the S&P 500 and Russell 1000 Value Index [1] - In 2025, both classes of the fund achieved returns of 18.20% and 18.42%, surpassing the S&P 500's 17.88% and Russell Value's 15.91% [1] - The healthcare sector was noted as the leading performer in Q4 2025, with the fund's success attributed to a diverse range of companies in an AI and technology-driven market [1] Company Performance - Citigroup Inc. (NYSE:C) was highlighted as a significant contributor to the fund's performance, despite a one-month return of -6.08% [2] - Over the last 52 weeks, Citigroup's shares increased by 31.02%, closing at $110.86 on February 13, 2026, with a market capitalization of $198.358 billion [2] - Citigroup's strong year-over-year revenue growth and plans for increased capital return to shareholders through dividends and buybacks were key factors in its positive contribution [3] Hedge Fund Interest - Citigroup Inc. was held by 107 hedge fund portfolios at the end of Q3 2025, an increase from 102 in the previous quarter, indicating growing interest among hedge funds [4] - Despite this interest, the firm suggests that certain AI stocks may offer greater upside potential and lower downside risk compared to Citigroup [4]