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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 APi Group Corporation (NYSE:APG). APi Group Corporation (NYSE:APG) is a business services provider that focuses on fire and life safety, security, elevator and escalator, and specialty services. On March 3, 2026, APi Group Corporation (NYSE:APG) stock closed at $43.29 per share. One-month return of APi Group Corporation (NYSE:APG) was 2.63%, and its shares gained 74.89% over the past 52 weeks. APi Group Corporation (NYSE:APG) has a market capitalization of $18.678 billion.SouthernSun Smid Cap Strategy stated the following regarding APi Group Corporation (NYSE:APG) in its fourth quarter 2025 investor letter:"APi Group Corporation (NYSE:APG), a leading provider of fire and life safety, security, elevator and escalator, and specialty services, was a top contributor in the SMID Cap strategy this quarter. APG delivered record third-quarter results, with revenues up 14% (10% organic) and Adjusted EBITDA +15%. The company continued to execute its inspection-first strategy, delivering its 21st consecutive quarter of double-digit inspection growth in North America. Project demand was strong, and management highlighted durable demand across core end markets and record backlog in both segments—supporting confidence entering 2026. APG completed 4 bolt-on acquisitions in the quarter, bringing the year-to-date total to 11, and with Net Debt/Adjusted EBITDA at ~2x, they should have the capacity to continue funding bolt-on M&A with free cash flow. Overall, we continue to believe APG has a long runway for double digit EPS growth driven by strong organic inspection and service growth, margin expansion from mix shift and operational improvement in the international business, and bolt-on acquisitions. We also continue to have confidence that Russ Becker, CEO, and team are a rightly fitted management team to execute on this opportunity."Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,838.25 +3.00 (+0.04%)Dow Futures48,050.00 +67.00 (+0.14%)Nasdaq Futures25,060.50 +11.00 (+0.04%)Russell 2000 Futures2,593.00 +6.60 (+0.26%)VIX23.75 +2.60 (+12.29%)Gold5,088.30 +9.60 (+0.19%)Trending tickersMRVL Marvell Technology, Inc. 75.68 -2.41 (-3.09%)COST Costco Wholesale Corporation 982.57 -24.17 (-2.40%)GE GE Aerospace 326.99 -12.82 (-3.77%)GAP The Gap, Inc. 27.20 -0.54 (-1.95%)IOT Samsara Inc. 29.58 +0.89 (+3.10%)PortfolioSign in to access your portfolioSign inTop gainersSOC Sable Offshore Corp. 13.85 +3.76 (+37.26%)TNGX Tango Therapeutics, Inc. 16.83 +4.48 (+36.28%)TTD The Trade Desk, Inc. 29.79 +4.62 (+18.36%)EXPE Expedia Group, Inc. 251.54 +30.29 (+13.69%)UNF UniFirst Corporation 262.76 +31.50 (+13.62%)Top losersAEO American Eagle Outfitters, Inc. 19.33 -3.12 (-13.90%)HYMC Hycroft Mining Holding Corporation 41.06 -6.61 (-13.86%)IE Ivanhoe Electric Inc. 13.64 -2.02 (-12.90%)CIEN Ciena Corporation 299.30 -44.25 (-12.88%)IESC IES Holdings, Inc. 426.01 -61.76 (-12.66%)Most activeNVDA NVIDIA Corporation 183.34 +0.30 (+0.16%)AAL American Airlines Group Inc. 11.79 -0.67 (-5.38%)PLUG Plug Power Inc. 2.2900 -0.1900 (-7.66%)ONDS Ondas Inc. 10.49 -0.02 (-0.19%)TTD The Trade Desk, Inc. 29.79 +4.62 (+18.36%)Top economic eventsEarnings eventsMy earnings eventsEarnings events