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 Barrick Gold Corporation (NYSE:GOLD), in the third quarter 2024 investor letter. Barrick Gold Corporation (NYSE:GOLD) engages in the exploration, mine development, production, and sale of gold and copper properties. The one-month return of Barrick Gold Corporation (NYSE:GOLD) was -16.41%, and its shares lost 16.13% of their value over the last 52 weeks. On December 19, 2024, Barrick Gold Corporation (NYSE:GOLD) stock closed at $15.23 per share with a market capitalization of $26.623 billion.
Sound Shore Management stated the following regarding Barrick Gold Corporation (NYSE:GOLD) in its Q3 2024 investor letter:
“For example, global gold and copper miner Barrick Gold Corporation (NYSE:GOLD) rose after posting earnings that topped forecasts driven by improved cost performance as well as higher metals prices. We initiated our investment earlier this year when the stock was trading at below normal price to earnings and price to book valuations. The depressed valuation was largely due to long-term issues driven by poor acquisitions and shorter-term inflationary pressures that had been a drag on profitability. Following Barrick’s 2019 merger with Randgold, the latter’s senior management team took the reins and have since streamlined and optimized the company’s once sprawling asset base. Today, Barrick is set to improve operations and drive organic growth which, along with a better price environment, we believe should improve returns on capital. Bolstered by a nearly debt-free balance sheet and strong free cash flows, the company is well positioned to increase dividends, share buybacks and improve its valuation.”
Drills extracting gold from a gold mine, revealing the company’s gold mining operation.
Barrick Gold Corporation (NYSE:GOLD) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held Barrick Gold Corporation (NYSE:GOLD) at the end of the third quarter which was 43 in the previous quarter. While we acknowledge the potential of Barrick Gold Corporation (NYSE:GOLD) 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 Barrick Gold Corporation (NYSE:GOLD) and shared most promising gold stocks according to hedge funds. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.