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

Sound Shore Management, an investment management firm, has released its investor letter for the fourth quarter of 2025. You can download a copy of the report here. In Q4 2025, The Sound Shore Fund Investor Class (SSHFX) and Institutional Class (SSHVX) advanced 7.83% and 7.87%, respectively, compared to the S&P 500’s 2.66% return and the Russell 1000 Value Index’s 3.81%. In 2025, the SSHFX and SSHVX returned 18.20% and 18.42%, respectively, ahead of the S&P 500’s 17.88% return and Russell Value’s return of 15.91%. Despite initial worries about policy changes, inflation, and economic growth, investors’ confidence improved in the second half of the year, and equities rose through year-end. Healthcare was the leading performer in the fourth quarter. The Fund’s performance was driven by a diverse group of companies across sectors in an AI and technology-dominated market. The firm focuses on identifying opportunities in industry shifts, management transitions, and undervalued assets. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Sound Shore Management highlighted Citigroup Inc. (NYSE:C) as one of its leading contributors. Citigroup Inc. (NYSE:C) is a diversified financial services holding company. The one-month return of Citigroup Inc. (NYSE:C) was -6.08%, and its shares gained 31.02% of their value over the last 52 weeks. On February 13, 2026, Citigroup Inc. (NYSE:C) stock closed at $110.86 per share, with a market capitalization of $198.358 billion.

Sound Shore Management stated the following regarding Citigroup Inc. (NYSE:C) in its fourth quarter 2025 investor letter:

"Some of our best contributors for 2025 included leading electronics and industrial assembler FLEX, global media company Warner Bros. Discovery and the aforementioned Citigroup Inc. (NYSE:C). Importantly, each was purchased for very attractive valuations, relative to our estimates of earnings power, while having their own drivers of value leading to improved earnings. Citigroup advanced after announcing strong year-over-year revenue growth and a plan to return more capital to shareholders through dividends and buybacks."

Citigroup Inc. (NYSE:C) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 107 hedge fund portfolios held Citigroup Inc. (NYSE:C) at the end of the third quarter, up from 102 in the previous quarter. While we acknowledge the potential of Citigroup Inc. (NYSE:C)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 Citigroup Inc. (NYSE:C) and shared the list of best bank stocks to buy in 2026. In addition, please check out our hedge fund investor letters Q4 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.