Sound Shore Mgmt Q1 2026 13F Holdings and Activity Report

I. Institutional Overview

Analyzing the institutional portrait of Sound Shore Management requires looking beyond the raw assets under management to the structural composition of the portfolio. With exactly 40 holdings reported this quarter, the institution clearly adheres to a philosophy of high-conviction, concentrated investment. In the world of institutional asset management, a portfolio of 40 stocks sits in the "sweet spot" between extreme concentration (which carries idiosyncratic risk) and over-diversification (which often leads to "closet indexing"). By limiting the number of positions, Harry Burn III ensures that each holding has a meaningful impact on the overall performance, suggesting that every stock in the portfolio has undergone a rigorous vetting process based on valuation, cash flow durability, and margin of safety.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

II. Sector Allocation Analysis

The most striking feature of the sector distribution is the heavy concentration in Healthcare , which accounts for 23.71% of the total portfolio. This is nearly a quarter of the entire fund’s capital, signaling an overwhelming conviction in the sector’s risk-reward profile. In the context of a value-oriented fund, a high healthcare weight usually suggests a focus on large-cap pharmaceuticals and managed care organizations that offer "defensive growth." These companies often possess strong balance sheets, consistent dividends, and valuations that are less sensitive to the immediate gyrations of the technology-led market indices. However, looking deeper into the holdings, Sound Shore’s healthcare bet is not just defensive; it includes biotech innovators and medical technology firms, suggesting a belief that the market is undervaluing the long-term pipeline potential and the "normalization" of elective procedure volumes.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

III. Top 10 Holdings Deep Dive

Teva remains the largest position in the portfolio, representing 3.92% of assets, despite a 9.84% reduction in shares this quarter. This is a classic "conviction holding" for a value manager like Harry Burn III. Teva has spent years navigating a complex turnaround involving massive debt restructuring and legal settlements related to the opioid crisis. The fact that it remains at the top of the portfolio suggests that Sound Shore believes the "worst is over" and that the company is now entering a phase of fundamental recovery. The slight reduction in shares likely represents tactical profit-taking or risk management rather than a loss of faith. With a reported price of $30, the stock has likely seen significant appreciation, and the manager is simply "trimming the flowers" to keep the position size within acceptable limits. Teva’s role in the portfolio is to provide a high-margin-of-safety turnaround play in the healthcare space.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

IV. Major Buys/Additions

The initiation of a $80.84M position in NXP Semiconductors is the most significant move of the quarter. For a value manager, NXPI represents a "valuation trough mining" operation. The semiconductor industry often goes through brutal cycles of oversupply and inventory correction. By entering NXPI now, Sound Shore is likely betting that the downturn in automotive and industrial chips has bottomed out. NXPI is a leader in high-performance mixed-signal solutions, particularly in the automotive sector, which is undergoing a long-term structural shift toward electrification and autonomous features. This is an "offensive value" play—buying a high-quality cyclical at a point of maximum pessimism. The fact that it immediately became a 2.71% weight shows a high level of conviction in the timing of this entry.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

V. Major Sells and Exits

The total exit from Salesforce, a $100.28M operation, is a major statement. Salesforce has been a battleground stock, with activist investors pushing for higher margins and better capital allocation. For a value manager, the exit likely stems from a belief that the "margin expansion story" has been fully priced in. At a certain point, a growth company’s transition to a value company becomes a "trap" if the top-line growth slows faster than margins can expand. Sound Shore appears to have decided that the risk-reward in enterprise software is no longer favorable compared to the new opportunities they found in semiconductors (NXPI) and healthcare (PFE). This is a "strategic retreat" from a sector that may be facing headwinds from AI-driven disruption of traditional software seats.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

VI. Investment Insights and Risk Warnings

For the individual investor, the reference value of these moves lies in the sector rotation signals . Sound Shore is clearly signaling that the "easy money" in enterprise software and certain utility plays has been made. Instead, they are pointing toward a "renaissance" in healthcare and a "selective boom" in semiconductor infrastructure. Their willingness to buy Amazon—a stock once shunned by value purists—suggests that the definition of "value" is evolving to include high-quality, cash-flow-generative giants that have seen their multiples compress to reasonable levels.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

Sources and limitations

This report uses public U.S. Securities and Exchange Commission Form 13F disclosures and structured data maintained by 13F Hub. A 13F filing is a quarter-end snapshot of reportable long positions, is normally published with a delay, and does not disclose every short position, cash balance, bond, derivative, or non-U.S. asset.

Narrative content is prepared from the same-period SEC disclosure and 13F Hub structured data, then checked before publication. This material is for research and education, not personalized investment advice.