SouthernSun Asset Management, LLC, an investment management firm, released its Q3 2025 investor letter “SouthernSun Small Cap Strategy.” A copy of the letter can be downloaded here. In the third quarter, the strategy returned 11.73% gross (11.52% net) compared to a return of 12.39% for the Russell 2000 Index and 12.60% for the Russell 2000 Value Index. The strategy returned -0.66% gross (-0.10% net) over the trailing twelve months, compared to 10.76% and 7.88% respectively for the indices over the same period. Plus, check out the strategy’s top five holdings for your top pick in 2025.
In its Q3 2025 investor letter, SouthernSun Small Cap Strategy highlighted stocks like Crane NXT, Co. (NYSE:CXT). Crane NXT, Co. (NYSE:CXT) is an industrial technology company. Crane NXT, Co. (NYSE:CXT)’s monthly performance was -8.39% and its shares gained 10.72% of its value in the last 52 weeks. On November 4, 2025, Crane NXT, Co. (NYSE:CXT) stock closed at $63.13 per share, with a market capitalization of $3.625 million.
SouthernSun Small Cap Strategy stated the following regarding Crane NXT, Co. (NYSE:CXT) in its Q3 2025 investor letter:
“NXT Crane, Co. (NYSE:CXT). We initiated a new position in Crane NXT (CXT) in the Small Cap strategy during the quarter. CXT was spun off from Crane Corporation in 2023. We owned the parent company (Crane Corporation) for several years, so we know the business quite well. This is a specialized business; CXT has a strong foundation in security and authentication technologies and automated payment systems.
Crane NXT, Co. (NYSE:CXT) isn’t on our list of the 30 most popular stocks among hedge funds. According to our database, Crane NXT, Co. (NYSE:CXT) had 24 hedge fund portfolios at the end of the second quarter, up from 21 in the previous quarter. While we recognize the potential of Crane NXT, Co. (NYSE:CXT) as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.