SouthernSun Asset Management, LLC, an investment management firm, released its “SouthernSun Small Cap Strategy” fourth quarter 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the Small Cap Composite returned -2.45% on a gross basis (-2.64% net), compared to a 2.19% return for the Russell 2000 Index and a 3.26% return for the Russell 2000 Value Index. The composite has returned 6.21% on a cumulative basis (5.40% net) over the past 12 months, compared to 12.81% and 12.59% for the indices, respectively. The letter highlights the economic lessons learned during the oil price crash of 2014-15. Initially seen as a positive development for the global economy, the collapse in oil prices has since revealed fundamental weaknesses, leading to wider economic impacts beyond the energy sector. The author compares this current situation to artificial intelligence (AI), warning that while AI is now a fundamental aspect of economic planning and decision-making, its associated risks must be carefully scrutinized. As the market approaches 2026, the investment landscape is shaped by a variety of scenarios, including value compression and overcapacity in AI infrastructure, rather than inevitable outcomes. SouthernSun Asset Management maintains a disciplined, humble approach that focuses on intrinsic value and is optimistic about the future but aware of the lessons of history. In addition, please see the top five retention strategies to identify the best of these in 2025.
In a 2025 Q4 investor letter, SouthernSun Small Cap Strategy announced Dorman Products Inc. (NASDAQ:DORM) highlighted stocks like Headquartered in Colmar, Pennsylvania, Dorman Products, Inc. (NASDAQ: DORM) is a supplier of aftermarket automotive products. On February 27, 2026, Dorman Products Inc. (NASDAQ:DORM) stock closed at $117.86 per share. Dorman Products Inc. (NASDAQ:DORM)’s one-month return was -6.90%, and its shares lost 10.17% over the past 52 weeks. Dorman Products Inc. (NASDAQ:DORM) has a market capitalization of $3.602 billion.
SouthernSun Small Cap Strategy Dorman Products, Inc. in its 2025 fourth quarter investor letter. (NASDAQ:DORM) made the following statements about:
Dorman Products, Inc. (NASDAQ: DORM ) was a low contributor in the period, even as fundamentals remained positive in its latest earnings release. Dorman reported net sales of $543.7 million (+7.9% YoY) and gross margin improvement of 44.4% of net sales (up from 40.5% a year ago), reflecting favorable mix and execution—especially within Light Duty. We believe the share weakness was outweighed by near-term market positioning and business expectations, as we see continued strength in the core business and expect continued results.”
