SouthernSun Asset Management, LLC, an investment management firm, released the “SouthernSun Mid 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 cumulative basis (-3.89% net), 2.22% for the Russell 2500 Index and 3.15% for the Russell 2500® Value Index. The composite has returned 5.19% on a cumulative basis (4.46% net) over the past 12 months, compared to 11.91% and 12.73% for the indices, respectively. The letter highlights the economic lessons learned during the 2014-15 oil price slump. Initially seen as a positive development for the global economy, the drop in oil prices has 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, the risks associated with it 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 strategy to identify its best options in 2025.
In the fourth quarter of 2025 investor letter, SouthernSun Mid Cap strategy of stocks such as Live Oak Bancshares, Inc. (NYSE: LOB) highlighted. Headquartered in Wilmington, North Carolina, Live Oak Bankshares, Inc. (NYSE: LOB) is the bank holding company for Live Oak Banking Corporation, which provides commercial banking products and services. On March 03, 2026, Live Oak Bancshares, Inc. (NYSE:LOB) stock closed at $36.45 per share. Live Oak Bancshares, Inc. (NYSE:LOB)’s one-month return was -12.57%, and its shares have grown 21.30% over the past 52 weeks. Live Oak Bancshares, Inc. (NYSE:LOB) has a market capitalization of $1.678 billion.
SouthernSun Mid Cap Strategies announced Live Oak Bankshares, Inc. in its Q4 2025 investor letter. (NYSE:LOB) made the following comments about:
“During the fourth quarter we initiated new positions in Oshkosh Corporation (OSK), Live Oak Bancshares, Inc. (NYSE:LOB) and Extreme Networks Inc. (EXTR). Live Oak Bancshares, Inc. (LOB) We bought Live Oak Bankshares, Inc. in the fourth quarter of 2025. Started a position. Live Oak is the largest originator of SBA 7(a) loans in the United States and has continued to expand its market leadership through the current small business credit cycle. SBA lending remains a relatively small but complex segment of the banking market, requiring deep institutional knowledge, rigorous compliance processes, and significant operational scale to efficiently originate, process, and service loans. Live Oak has developed a differentiated, decentralized operating model that leverages proprietary technology, vertical expertise, and close borrower relationships to efficiently deliver fast turnaround times and superior service, while maintaining disciplined underwriting standards. In the past year, Live Oak has further strengthened its position as “America’s Small Business Bank,” growing SBA approvals materially faster than peers and expanding market share despite a challenging macro backdrop.
