Here's Why Sound Shore Fund Added Teva Pharmaceutical Industries Limited (TEVA) in Q2

Sound Shore Management, an investment management firm, has released its investor letter for the second quarter of 2025. A copy of the letter can be downloaded here. The fund’s Investor Class (SSHFX) and Institutional Class (SSHVX) delivered 3.06% and 3.10%, respectively, in the second quarter of 2025 compared to a 3.79% return for the Russell 1000 Value Index (Russell Value) and 10.94% return for the Standard & Poor 500 Index (S&P 500). Sound Shore’s 35-year annualized returns were 14.92% and 15.14% for SSHFX and SSHVX, respectively, as of June 30, 2025, and were ahead of the Russell Value at 12.76% and trailed the S&P 500 at 19.71%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Sound Shore Management highlighted stocks such as Teva Pharmaceutical Industries Limited (NYSE:TEVA). Headquartered in Tel Aviv, Israel, Teva Pharmaceutical Industries Limited (NYSE:TEVA) engages in the development and distribution of generic and other medicines and biopharmaceutical products. The one-month return of Teva Pharmaceutical Industries Limited (NYSE:TEVA) was 15.02%, and its shares gained 10.22% of their value over the last 52 weeks. On September 09, 2025, Teva Pharmaceutical Industries Limited (NYSE:TEVA) stock closed at $19.68 per share, with a market capitalization of $22.71 billion.

Sound Shore Management stated the following regarding Teva Pharmaceutical Industries Limited (NYSE:TEVA) in its second quarter 2025 investor letter:

"In our first quarter letter, we discussed how some of our healthcare holdings impacted performance due to still undetermined regulatory policies. This uncertainty continued in the second quarter. Eventually, a clearer picture will emerge, but the myriad of proposals regarding Medicaid reimbursement, pharmaceutical pricing and tariffs have all contributed to a cloud over the group this year. As always, when there is a macro-led market drop, as we saw in March/April, we often take advantage of price dislocation and add to positions where we have the highest conviction. For example, drug manufacturer Teva Pharmaceutical Industries Limited (NYSE:TEVA) was a name we added to as the company continues to execute on its plan to accelerate growth, primarily through the success of its pipeline."

Teva Pharmaceutical Industries Limited (NYSE:TEVA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held Teva Pharmaceutical Industries Limited (NYSE:TEVA) at the end of the second quarter, which was 64 in the previous quarter. In the second quarter of 2025, Teva Pharmaceutical Industries Limited's (NYSE:TEVA) revenue increased 1% year-over-year to $4.2 billion. While we acknowledge the potential of Teva Pharmaceutical Industries Limited (NYSE:TEVA) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Teva Pharmaceutical Industries Limited (NYSE:TEVA) and shared the list of best growth stocks under $50 to buy. Sound Shore Management commented on Teva Pharmaceutical Industries Limited (NYSE:TEVA) in its Q1 2025 investor letter. In addition, please check out our hedge fund investor letters Q2 2025 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.