Sound Shore Management, an investment management firm, has released its investor letter for the second quarter of 2026. The letter can be downloaded here. The Sound Shore Fund’s Investor Class (SSHFX) and Institutional Class (SSHVX) rose 10.48% and 10.58% in the second quarter of 2026, trailing the Russell 1000 Value Index’s 13.87% and the S&P 500’s 15.20% returns. Over three years, SSHFX and SSHVX posted annualized gains of 19.41% and 19.66%, outperforming the Russell Value (17.79%) but underperforming the S&P 500 (20.61%). The powerful rebound of stocks in the quarter was driven by strong performances in AI and semiconductor sectors, amidst easing inflation fears and a stable labor market. The portfolio also benefited from the AI wave in the second quarter. The ongoing AI revolution is creating significant investment opportunities in multiple sectors, and Sound Shore remains committed to long-term assessments of a company’s earning power, targeting stocks with durable management strategies. Also, check the fund’s top five holdings to see its best picks in 2026.
In its Q2 2026 investor letter, Sound Shore Fund highlighted Marvell Technology, Inc. (NASDAQ:MRVL). Marvell Technology, Inc. (NASDAQ:MRVL), a semiconductor company that delivers data infrastructure solutions across the data center core, cloud, enterprise, and network edge, contributed to the Fund’s performance this quarter. On August 24, 2026, Marvell Technology, Inc. (NASDAQ:MRVL) closed at $229.29 per share, reflecting a market capitalization of $216.86 billion. Marvell Technology, Inc. (NASDAQ:MRVL) posted a one-month return of 38.69%, while its shares gained 225.86% over the past 52 weeks.
Sound Shore Fund stated the following regarding Marvell Technology, Inc. (NASDAQ:MRVL) in its Q2 2026 investor letter:
“Sound Shore’s portfolio also benefited from the AI wave in the second quarter. Sound Shore has always had exposure to IT (approximately 15% weight during Q2), but our value discipline will steer us away from the most expensive parts of the market. Qualcomm and Marvell Technology, Inc. (NASDAQ:MRVL), were two of our strongest contributors in 2Q. Both are excellent case studies, which we profiled in our first quarter letter as businesses marrying secular technology tailwinds with compelling valuations. Meanwhile, Marvell Technology benefited from its data center exposure which stems from the company’s dominant networking and optical business and is now expanding into custom silicon (ASIC) tailored chips for hyperscalers. The trick from here remains how long will the cycle last and how much exposure is appropriate, given the unprecedented move in this part of the market. More on that later.”
