SouthernSun Asset Management, LLC, an investment management firm, released its “SouthernSun Smid Cap Strategy” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the SMID Cap Composite returned -3.72% on a gross basis (-3.89% net) compared to 2.22% for the Russell 2500 Index and 3.15% return for the Russell 2500® Value Index. The composite returned 5.19% on a gross basis (4.46% net) over the trailing 12 months compared to 11.91% and 12.73% for the indexes, respectively. The letter highlighted the economic lessons learned during the oil price collapse of 2014-15. Initially seen as a positive development for the global economy, the decline in oil prices revealed underlying weaknesses, leading to broader economic impacts beyond the energy sector. The author compares this to the current situation with artificial intelligence (AI), cautioning that while AI is now a fundamental aspect of economic planning and decision-making, its associated risks need to be carefully analyzed. As the market approaches 2026, the investment landscape is shaped by various scenarios, including valuation compression and overcapacity in AI infrastructure, rather than inevitable outcomes. SouthernSun Asset Management maintains a disciplined, humble approach focused on intrinsic value and is optimistic about the future but remains aware of historical lessons. In addition, please check the Strategy’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, SouthernSun Smid Cap Strategy highlighted stocks like Oshkosh Corporation (NYSE:OSK). Oshkosh Corporation (NYSE:OSK) is an industrial company that provides purpose-built vehicles and equipment. On March 03, 2026, Oshkosh Corporation (NYSE:OSK) stock closed at $168.00 per share. One-month return of Oshkosh Corporation (NYSE:OSK) was 0.65%, and its shares gained 74.93% over the past 52 weeks. Oshkosh Corporation (NYSE:OSK) has a market capitalization of $10.63 billion.
SouthernSun Smid Cap Strategy stated the following regarding Oshkosh Corporation (NYSE:OSK) in its fourth quarter 2025 investor letter:
“During the fourth quarter we initiated new positions in Oshkosh Corporation (NYSE:OSK), Live Oak Bancshares Inc (LOB) and Extreme Networks Inc. (EXTR). Oshkosh Corporation (OSK) was added to the SMID strategy in the fourth quarter. OSK is a global manufacturer of specialized vehicles and equipment used in essential and mission-critical applications. The company operates across three primary segments: Access equipment, Vocational vehicles, and Transport, serving customers in construction, airport and municipal services, fire and emergency response, defense, and delivery markets. Across these businesses, Oshkosh competes in categories where performance, reliability, and total cost of ownership are more important than price, supporting durable competitive positions. Oshkosh also holds strong positions in airport equipment, including aircraft rescue and firefighting vehicles, ground support equipment, and passenger boarding bridges, where safety, reliability, and long service life are critical and competition is limited.
