Harry Burn - Sound Shore Portfolio Q2'2025: Top Holdings & Recent Changes
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Harry Burn, the driving force behind Sound Shore, continues to showcase a dynamic and opportunistic approach to value investing. His Q2’2025 portfolio reflects a high-turnover, actively managed strategy, with $2.93 billion allocated across 36 positions. The latest 13F filing reveals a series of bold moves—both additions and reductions—demonstrating Burn’s willingness to pivot as market conditions evolve.
Portfolio Overview: High-Turnover Value in Action
Portfolio Highlights (Q2’2025): - Market Value: $2,934.2M - Top 10 Holdings: 35.0% - Portfolio Size: 36 -1 - Average Holding Period: 8 quarters - Turnover: 52.8%
The Sound Shore portfolio stands out for its relatively high turnover rate of 52.8%, signaling a willingness to rotate capital aggressively in pursuit of value. With 36 holdings, the fund maintains moderate concentration, as the top 10 positions account for 35% of assets—suggesting a balance between conviction and diversification.
Harry Burn’s approach is characterized by tactical adjustments, as evidenced by the net reduction of one position this quarter. The average holding period of 8 quarters indicates a blend of medium-term conviction and flexibility, allowing the fund to capitalize on shifting valuations and sector rotations. This dynamic management style is a hallmark of Sound Shore’s contrarian value philosophy, seeking mispriced opportunities across sectors.
Top Holdings Analysis: Tactical Shifts and Contrarian Plays
The portfolio’s recent activity highlights a series of calculated moves. Notably, Citigroup Inc. was increased by 3.47% to 4.1% of the portfolio, reflecting renewed confidence in large-cap financials. In contrast, Capital One Financial Corp was trimmed by 11.20%, now representing 3.9%. Energy exposure was boosted with an 11.84% addition to Coterra Energy, Inc. 3.8%, while PayPal Holdings, Inc. also saw an 11.84% increase, bringing its weight to 3.5%.
Rail operator CSX Corporation experienced a minor reduction of 0.11% but remains a core holding at 3.5%. Bank of America Corporation was increased by 13.01%, signaling a contrarian bet on the banking sector at 3.4%. Healthcare exposure was raised with a 7.23% addition to Teva Pharmaceutical Industries 3.3%.
A notable new buy is Warner Bros. Discovery, Inc., now at 3.3% of assets, indicating a fresh conviction in media and entertainment. Southwest Airlines Co. was slightly reduced by 0.12% but remains a significant position at 3.2%. Hologic, Inc. was trimmed by 0.07% to 3.1%, rounding out the list of active changes.
Supplementing these moves, the top 10 also include substantial allocations to financials and industrials, reinforcing the fund’s bias toward cyclical value sectors. This blend of incremental adjustments and bold new bets underscores Sound Shore’s commitment to active value investing.
What the Portfolio Reveals About Current Strategy
- Contrarian Value Focus: The portfolio’s additions to banks and energy—sectors often out of favor—demonstrate a willingness to go against prevailing market sentiment in search of mispriced assets.
- Active Rotation: High turnover and frequent position adjustments reflect a hands-on approach, with the manager quick to reallocate capital as opportunities arise.
- Sector Diversification: While financials and energy are prominent, the portfolio also features meaningful exposure to healthcare, technology, and industrials, reducing sector-specific risk.
- Medium-Term Conviction: An average holding period of 8 quarters suggests that while the fund is active, it is not purely short-term oriented—positions are given time to play out.
- Risk Management: The top 10 holdings comprise just 35% of assets, indicating a preference for diversification over extreme concentration.
Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| Citigroup Inc. | $119.6M | 4.1% | Add 3.47% |
| Capital One Financial Corp | $113.4M | 3.9% | Reduce 11.20% |
| Coterra Energy, Inc. | $111.4M | 3.8% | Add 11.84% |
| PayPal Holdings, Inc. | $103.0M | 3.5% | Add 11.84% |
| CSX Corporation | $101.4M | 3.5% | Reduce 0.11% |
| Bank of America Corporation | $99.4M | 3.4% | Add 13.01% |
| Teva Pharmaceutical Industries | $98.0M | 3.3% | Add 7.23% |
| Warner Bros. Discovery, Inc. | $98.0M | 3.3% | Buy |
| Southwest Airlines Co. | $92.6M | 3.2% | Reduce 0.12% |
The table above illustrates Sound Shore’s moderate concentration: no single position dominates, and the largest holding (Citigroup) is just 4.1% of the portfolio. This approach spreads risk while still allowing for meaningful bets on high-conviction ideas. The prevalence of both additions and reductions in the top 10 signals a nimble, responsive investment process.
Investment Lessons from Harry Burn’s Value Approach
- Active Value Investing Pays Off: Frequent portfolio adjustments can uncover opportunities missed by more static strategies.
- Diversification with Conviction: Spreading assets across 36 positions, yet keeping the top 10 at 35%, balances risk and return.
- Contrarian Mindset: Adding to sectors under pressure (like banks and energy) can yield outsized returns when sentiment shifts.
- Medium-Term Patience: An 8-quarter average holding period allows time for value theses to materialize, avoiding the pitfalls of short-termism.
- Disciplined Risk Management: No single position dominates, reducing the impact of any one mistake.
Looking Ahead: What Comes Next?
With a high turnover rate and a willingness to rotate capital, Sound Shore is well-positioned to capitalize on future market dislocations. The fund’s cash position and recent trims suggest dry powder for new opportunities, particularly if volatility returns. Areas to watch include further moves in financials and energy, as well as potential new bets in underappreciated sectors. As the market landscape evolves, Harry Burn’s flexible, value-driven approach should continue to generate differentiated results.
FAQ about Sound Shore Portfolio
Q: What were the most significant changes in Sound Shore’s Q2 2025 portfolio?
The most notable moves included increasing positions in Citigroup Inc., Coterra Energy, Inc., and Bank of America Corporation, while reducing exposure to Capital One Financial Corp and Southwest Airlines Co.. The fund also initiated a new position in Warner Bros. Discovery, Inc..
Q: How concentrated is the Sound Shore portfolio?
The top 10 holdings make up 35% of assets, with no single position exceeding 4.1%. This reflects a diversified yet conviction-driven approach.
Q: How often does Sound Shore adjust its portfolio?
With a turnover rate of 52.8% and an average holding period of 8 quarters, the fund is actively managed, making frequent adjustments to capitalize on changing valuations.
Q: Which sectors does Sound Shore favor?
Financials and energy are prominent, but the portfolio also includes significant allocations to healthcare, technology, and industrials, reflecting a broad value orientation.
Q: How can I track Sound Shore’s portfolio changes?
Use ValueSense for real-time tracking of 13F filings and portfolio updates. Note that 13F filings are reported with a 45-day lag, so ValueSense provides the most up-to-date analysis and research tools.
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