Sound Shore Management, an investment management firm, has released its investor letter for the first quarter of 2026.
A copy of the letter is available to download here
In Q1 2026, the Sound Shore Fund Investor Class (SSHFX) and Institutional Class (SSHVX) declined 3.45% and 3.43%, respectively, compared to the S&P 500’s -4.33% return and the Russell 1000 Value Index’s 2.10%. The letter highlighted the Fund’s 35 years of annualized returns of 10.43% and 10.69% for SSHFX and SSHVX, respectively, as of March 31, 2026, compared to 10.65% and 10.05% returns for the indexes, respectively. Following a strong 2025, the US market faced its most challenging first quarter since 2022, influenced by geopolitical tensions and shifting sector dynamics, highlighted by a notable shift away from leading technology and AI stocks, while the energy sector benefited from a rise in commodity prices.
The Fund believes its portfolio is strategically aligned with emerging trends that will generate long-term value for investors. Please review the Strategy’s top five holdings to gain insights into their key selections for 2026. In its first-quarter 2026 investor letter, Sound Shore Fund highlighted Southwest Airlines Co. (NYSE:LUV).