Sound Shore Fund Continues to Maintain Confidence in EQT (EQT)

Soumya Eswaran

Wed, May 20, 2026 at 9:03 AM EDT 3 min read

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 EQT Corporation (NYSE:EQT) as a material contributor. EQT Corporation (NYSE:EQT) is a leading natural gas producer headquartered in Pittsburgh, Pennsylvania. On May 19, 2026, EQT Corporation (NYSE:EQT) closed at $59.77 per share. One-month return of EQT Corporation (NYSE:EQT) was 1.79%, and its shares gained 7.29% over the past 52 weeks. EQT Corporation (NYSE:EQT) has a market capitalization of $37.38 billion.

Sound Shore Fund stated the following regarding EQT Corporation (NYSE:EQT) in its Q1 2026 investor letter:

"On the positive front, and in contrast to the above, energy was far and away the best performing sector for the period. Surging oil and gas prices drove holdings Coterra Energy, EQT Corporation (NYSE:EQT) and BP higher, each returning close to 20% or more. Our process leads us to sustainable businesses with low-cost reserves and fortress like balance sheets. These are critical attributes in today’s volatile world and, we believe, make these businesses even more valuable. The Iran war and its impact on oil prices will be in focus; however, we continue to find value in these businesses on normalized long-term cash flow."

EQT Corporation (NYSE:EQT) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 92 hedge fund portfolios held EQT Corporation (NYSE:EQT) at the end of the fourth quarter, up from 82 in the previous quarter.  While we acknowledge the potential of EQT Corporation (NYSE:EQT) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.