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 Marvell Technology, Inc. (NASDAQ:MRVL). Marvell Technology, Inc. (NASDAQ:MRVL) is a semiconductor company that delivers data infrastructure solutions across the data center core, cloud, enterprise, and network edge. On May 19, 2026, Marvell Technology, Inc. (NASDAQ:MRVL) closed at $176.27 per share. One-month return of Marvell Technology, Inc. (NASDAQ:MRVL) was 12.05%, and its shares gained 193.25% over the past 52 weeks. Marvell Technology, Inc. (NASDAQ:MRVL) has a market capitalization of $154.33 billion.
Sound Shore Fund stated the following regarding Marvell Technology, Inc. (NASDAQ:MRVL) in its Q1 2026 investor letter:
“A bright spot in the tech space was our holding in Marvell Technology, Inc. (NASDAQ:MRVL). The company designs custom chips that are both flexible and efficient, a competitive advantage we believe will help Marvell take market share and grow rapidly over the next few years. While many debated whether management could effectively scale up the business and compete, we were able to purchase the stock when it was trading at 10 times our estimate of long-term earnings power. Marvell’s exposure to data centers stems from a robust networking and optical business—essentially the “plumbing” of AI infrastructure. Additionally, its emerging custom silicon (ASIC) division co-develops tailored chips for “hyperscalers” like Amazon and Google to optimize performance and power efficiency for specific AI workloads. We believe this business will double earnings over the next three years.”
Marvell Technology, Inc. (NASDAQ:MRVL) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 85 hedge fund portfolios held Marvell Technology, Inc. (NASDAQ:MRVL) at the end of the fourth quarter, up from 77 in the previous quarter. While we acknowledge the risk and potential of Marvell Technology, Inc. (NASDAQ:MRVL) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Marvell Technology, Inc. (NASDAQ:MRVL) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Marvell Technology, Inc. (NASDAQ:MRVL) and shared the list of best long term US stocks to buy. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
