Sound Shore Management, an investment management firm, has released its investor letter for the first quarter of 2025. A copy of the letter can be downloaded here. The fund’s Investor Class (SSHFX) and Institutional Class (SSHVX) declined 1.93% and 1.89% respectively, in the first quarter of 2025 compared to a 2.14% return for the Russell 1000 Value Index (Russell Value) and -4.27% return for the Standard & Poor 500 Index (S&P 500). Sound Shore’s 35-year annualized returns were 10.13% and 10.41% for SSHFX and SSHVX, respectively, as of March 31, 2025, and were ahead of the Russell Value at 9.81% and trailed the S&P 500 at 10.56%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Sound Shore Management highlighted stocks such as Check Point Software Technologies Ltd. (NASDAQ:CHKP). Check Point Software Technologies Ltd. (NASDAQ:CHKP) develops and supports a range of products and services for IT security. The one-month return of Check Point Software Technologies Ltd. (NASDAQ:CHKP) was 10.32%, and its shares gained 47.56% of their value over the last 52 weeks. On May 23, 2025, Check Point Software Technologies Ltd. (NASDAQ:CHKP) stock closed at $227.86 per share with a market capitalization of $24.69 billion.

Sound Shore Management stated the following regarding Check Point Software Technologies Ltd. (NASDAQ:CHKP) in its Q1 2025 investor letter:

“Even within the uncertain market environment, we were encouraged by stability throughout our portfolio. Check Point Software Technologies Ltd. (NASDAQ:CHKP), an information technology security provider, was our top contributor for the period. A leader in what has become a critical focus for businesses, cyber security solutions, Check Point gained after announcing improved bookings and a positive revenue outlook for 2025. We added the position to the portfolio early in 2024 when it was trading at a below normal 17 times earnings. The company is growing earnings and buying back shares with its free cash flow.”

An engineer typing on a computer, developing the latest cybersecurity application.

Check Point Software Technologies Ltd. (NASDAQ:CHKP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held Check Point Software Technologies Ltd. (NASDAQ:CHKP) at the end of the first quarter which was 40 in the previous quarter. Check Point Software Technologies Ltd.’s (NASDAQ:CHKP) first quarter revenue increased 7% to $638 million. While we acknowledge the potential of Check Point Software Technologies Ltd. (NASDAQ:CHKP) 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 undervalued AI stock set for massive gains.