Investment Goals: Competitive Growth of Capital

Sound Shore's process strives to:

  • Outperform the market averages over a full market cycle

  • Outperform the competition and finish in the top quartile of performance

  • Generate positive investment results while keeping emphasis on low risk

Process:  Team-Based Fundamental Research

Teamwork is critical at Sound Shore. Our seven investment professionals, with more than 125 years of combined equity research experience, work together to:

  • Identify the least expensive stocks based upon absolute P/E and P/E versus a company's historic norms

  • "Value check" to confirm each stock's valuation attractiveness

  • Determine company-specific drivers of value and model norm earnings power for each holding

  • Set stock-specific valuation targets based upon our estimates of earnings and cash flow priced at "norm" multiples

  • Sell when target valuations are achieved or when our investment thesis changes

Price/Earnings (P/E) ratio is the ratio of a stock's current price to its per-share earnings.

Environmental, Social and Governance (ESG) Integration: Our Commitment

  • Sound Shore ESG Committee - Includes investment team members and senior management. Meets regularly and is tasked with:

    1) Monitoring relevant data at the company and portfolio level

    2) Conducting ESG-focused company meetings/calls, emphasizing material matters

    3) Reporting findings to Sound Shore’s Investment Committee

  • Focus on governance - It is our belief that thoughtfully managed companies often improve investment performance as well as environmental and societal outcome - Bottom-up

  • Active proxy voting - It is Sound Shore’s policy to vote all proxies in the best economic interest of its clients. Material proxy issues are reviewed by the ESG Committee and the Chief Compliance Officer before voting

  • Utilizing third party ESG analysis - In order to broaden our in-house due diligence, tools and data, we utilize external ESG sources such as Bloomberg, Eikon, RobecoSAM, Sustainalytics, ISS, SASB, TCFD and CDP.

  • Signatories (since 2016) of the United Nations' Principles for Responsible Investing (UN PRI), Sound Shore promotes transparency, disclosure, measurement, accountability, and improvement.

Portfolio Characteristics:  Low Valuation, Bottom-Up, 40 Holdings

  • Investment Orientation - Low valuation, absolute and relative to a company's own history

  • Analytical Process - Bottom-up

  • Market Capitalization - Medium to large

  • Portfolio Holdings - Approximately 40 equities

  • Portfolio Turnover - Approximately 50% - 75%

  • Diversification
    - Representation of a single issue usually does not exceed 5%
    - Industry concentration typically does not exceed 25%
    - No sector constraints

  • Investment Restrictions - No derivative or short positions

Portfolio turnover may not be limited during periods of significant redemptions or when, based upon investment considerations, the Fund's managers deem it necessary to make changes to the Portfolio's holdings.

Long-Term Value Investing:  A Full Cycle Perspective

Disciplined Fundamental Value Investors Since 1978
Sound Shore Management, Inc. was founded on the belief that the pursuit of a disciplined, value-oriented investment style provides the opportunity for investors to reap the full-cycle rewards of the equity markets, while maintaining a keen focus on risk. Our strategy is time tested since 1978 and is built upon four critical components:

Contrarian Approach
Having experienced many periods of extreme optimism and pessimism over the past nearly thirty years as investment advisers of Sound Shore Management, we remain committed to our contrarian value style. We resist being either bullish or bearish, but rather remain alert to the opportunities that each market can provide. This discipline is a critical factor to our success over time.

Risk Aversion
We believe our low valuation approach is the ultimate controller of risk. Sound Shore's process focuses on financially sound companies that have under-performed and lost their Wall Street sponsorship, but not their earning power. We evaluate risk on a company by company basis, and the portfolio has historically provided some protection from individual equity declines.

Long-Term Investment Goals
As long-term investors, Sound Shore's goal is to create wealth and preserve it. This requires a steadfast approach that resists market timing and investing in fads, and allow the power of a consistent investment style to compound over time. Importantly, our risk-averse nature does not preclude us from enjoying the benefits of investing in the stock market. A $10,000 investment in the Sound Shore Fund (Investor Class) at inception in 1985 would now be worth $407,846 as of March 31, 2021.*

Alignment With Our Investors
The employees of Sound Shore Management, Inc. are significant shareholders in Sound Shore Fund. The firm's profit sharing plan, which includes all employees with more than 1 year of service, is 100% invested in the Sound Shore Fund. As well, the firm's partners also have significant investments in the Fund.

*Past performance is not predictive of future results. For more information on performance. please see

View Fund’s Performance & Distribution Details