Investment Strategies
SouthernSun follows a proven investment process within its Small Cap, SMID Cap, and Focused Global equity investment strategies. While these strategies differ in terms of the size and number of companies held in each portfolio, the investment team's approach to implementing them is the same. The firm also manages a private commercial real estate strategy.
Small Cap Strategy
Our Small Cap strategy began with the firm's inception in 1989. In this area we seek out domestic companies with a market capitalization of between $500 million and $2 billion at the time of initial purchase. Our target number of companies to have in this discipline is twenty (20) to thirty (30) at any time. No single company will be greater than ten percent (10%) of the portfolio value, and no single industry will be greater than twenty-five percent (25%) of the portfolio value.
Performance HighlightsDownload PDF |
Strategy HighlightsDownload PDF |
Currently, this strategy may be accessed by three product types: direct separate account management ($20MM minimum applies), wrap account programs through select broker/dealers, and a mutual fund SouthernSun Small Cap Fund - SSSFX.
SMID Cap Strategy
Our SMID Cap strategy is an extension of our Small Cap Strategy and was initiated in 1996. It holds between twenty (20) and thirty (30) positions at any time. The market capitalization of these domestic companies is between $1 billion and $8 billion at the time of initial purchase. No single company will be greater than ten percent (10%) of the portfolio value, and no single industry will be greater than twenty-five percent (25%) of the portfolio value. Currently, this strategy may be accessed by two product types: direct separate account management ($10MM minimum) and wrap account programs through select broker/dealers.
Performance HighlightsDownload PDF |
Strategy HighlightsDownload PDF |
Global Equity Strategy
This strategy is a concentrated portfolio of between fifteen (15) and twenty-five (25) companies from around the globe and is not restricted by market capitalization. This strategy is available as a directly managed separate account.
Real Estate Strategy
Our private commercial real estate strategy was launched in 2010 to capitalize on the current distress in the commercial real estate market. In this strategy, we seek high quality, financially-distressed, diversified real estate assets (primarily office, multi-family, and retail) at significant discounts to replacement cost, in stable U.S. markets. After acquisition, we then professionally manage the assets to stabilize and improve rental income and, ultimately, seek to monetize stabilized assets into improving capital markets at non-distressed pricing. Currently, this strategy may be accessed through a limited partnership vehicle.