Core Insights - Sound Shore Management's investment performance in Q4 2025 showed significant gains, with the Sound Shore Fund Investor Class (SSHFX) and Institutional Class (SSHVX) advancing 7.83% and 7.87%, respectively, outperforming the S&P 500's 2.66% and the Russell 1000 Value Index's 3.81% [1] - For the full year 2025, SSHFX and SSHVX returned 18.20% and 18.42%, respectively, exceeding the S&P 500's 17.88% and Russell Value's 15.91% [1] - The healthcare sector was identified as the leading performer in Q4 2025, with the fund's performance driven by a diverse group of companies in an AI and technology-dominated market [1] Company Focus: Huntington Ingalls Industries, Inc. (NYSE:HII) - Huntington Ingalls Industries, Inc. (HII) was highlighted as a leading contributor to the fund's performance, with a stock price of $418.78 per share as of February 13, 2026 [2] - Over the past twelve months, HII's shares increased by 159.68%, although the one-month return was -1.67% [2] - HII has a market capitalization of $16.434 billion, positioning it as a significant player in the military shipbuilding sector [2] Performance Analysis of Huntington Ingalls Industries, Inc. - HII is recognized as the largest US Naval shipbuilder, constructing both nuclear and non-nuclear warships and providing after-market services [3] - The stock was purchased at a valuation of 13 times earnings with a 7% free cash flow yield, indicating a favorable entry point [3] - The company has successfully navigated post-COVID supply chain and labor productivity challenges, leading to better-than-expected earnings and substantial growth in its backlog [3] - With the US Navy's commitment to expanding its fleet and potential margin gains from project completions, HII's stock is believed to be on the verge of reflecting its growth potential [3]