Sound Shore Fund Views BP plc (BP) as a Valuable Stock Beyond War-Driven Oil Spike

Soumya Eswaran

Wed, May 20, 2026 at 9:00 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 stocks like BP p.l.c. (NYSE:BP). BP p.l.c. (NYSE:BP) is a British multinational company that engages in the oil and gas business. On May 19, 2026, BP p.l.c. (NYSE:BP) closed at $46.14 per share. One-month return of BP p.l.c. (NYSE:BP) was -0.50%, and its shares gained 59.76% over the past 52 weeks. BP p.l.c. (NYSE:BP) has a market capitalization of $118.81 billion.

Sound Shore Fund stated the following regarding BP p.l.c. (NYSE:BP) 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 and BP p.l.c. (NYSE: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."

BP p.l.c. (NYSE:BP) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 51 hedge fund portfolios held BP p.l.c. (NYSE:BP) at the end of the fourth quarter, up from 47 in the previous quarter. While we acknowledge the potential of BP p.l.c. (NYSE:BP) 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.