Investment management firm Sound Shore Management released its investor letters in the first quarter of 2025. A copy of the letter can be downloaded here. The fund's Investor Class (SSHFX) and Institutional Class (SSHVX) fell 1.93% and 1.89% respectively, in the first quarter of 2025, while the Russell 1000 Value Index (Russell Value) had a return of 2.14% and the Standard & Poor 500 Index (S&P 500) had a return of -4.27%. As of March 31, 2025, SHORE Shore's 35-year annual returns were 10.13% and 10.41% of SSHFX and SSHVX, respectively, and led Russell Value at 9.81%, and lagged behind the S&P 500 at 10.56%. Also, check the fund’s top five holdings to see its best options for 2025.

Sound Shore Management highlights stocks such as Walt Disney Corporation (NYSE:DIS) in its first-quarter 2025 investor letter. Walt Disney Company (NYSE:DIS) is an entertainment company that operates through the entertainment, sports and experience segments. Walt Disney Company (NYSE:DIS) has a one-month return of 21.53%, and its stock has accounted for 7.82% of its value over the past 52 weeks. On May 23, 2025, Walt Disney Company (NYSE:DIS)'s stock closed at $109.72 per share, with a market value of $17.249 billion.

Sound Shore Management pointed out the following about Walt Disney Corporation (NYSE:DIS) in its Q1 2025 investor letter:

“In addition to concerns about the slowdown and consumer spending, the Paypal and Walt Disney Company (NYSE: DIS) Although both have very solid balance sheets, they fell to 2024 in a strong game. Despite economic concerns, there are internal changes in everyone that are improving profitability. Media and entertainment leader Disney is lower after giving back a portion of its previous YTD earnings. With impressive content to drive market share and a stable cash generation experience business (parks, resorts, cruises), we believe Disney is in a very good location. The company's media division is growing, while content spending has fallen. We believe that streaming services, including ESPN and Hulu, are undervalued and management is raising the price of the service. Disney's ability to trade less than 14 times its revenue, a strong balance sheet, renewal of dividends and a $3 billion annual stock buyback program is an attractive risk/reward that has the potential to grow in the United States and abroad. ”

A theater filled with moviegoers watched a blockbuster movie produced by the entertainment company.

Walt Disney Corporation (NYSE:DIS) is not among our 30 stocks in 30 hedge funds. According to our database, 104 hedge fund portfolios held Walt Disney Company (NYSE:DIS) at the end of the previous quarter, which was 108 in the previous quarter. While we acknowledge the potential of Walt Disney Company (NYSE:DIS) as an investment, our belief is that AI stocks have greater hope to deliver higher returns and do so in a shorter time frame. If you are looking for AI stocks that are as promising as NVIDIA, but whose earnings are trading at less than 5 times the price, check out our report on undervalued AI stocks.