SouthernSun Asset Management, LLC, an investment management firm, released its “SouthernSun SMID Cap Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the strategy returned -8.60% on a gross basis (-8.76% net compared to a -7.50% return for the Russell 2500 Index and -5.83% for the Russell 2500 Value Index. The fund returned -9.41% on a gross basis (-10.06% net) over the trailing 12 months compared to -3.11% and -1.47% returns for the indexes, respectively, over the same period. In addition, please check the top 5 holdings of the strategy to know its best pick in 2025.
In its first-quarter 2025 investor letter, SouthernSun SMID Cap Strategy highlighted stocks such as Broadridge Financial Solutions, Inc. (NYSE:BR). Headquartered in Lake Success, New York, Broadridge Financial Solutions, Inc. (NYSE:BR) is an investor communications and technology-driven solutions provider for the financial services industry. The one-month return of Broadridge Financial Solutions, Inc. (NYSE:BR) was -1.47% and its shares gained 21.49% of their value over the last 52 weeks. On April 25, 2025, Broadridge Financial Solutions, Inc. (NYSE:BR) stock closed at $238.13 per share with a market capitalization of $27.866 billion.
SouthernSun SMID Cap Strategy stated the following regarding Broadridge Financial Solutions, Inc. (NYSE:BR) in its Q1 2025 investor letter:
“Broadridge Financial Solutions, Inc. (NYSE:BR), the leading processor of proxy voting and fixed income trading in the U.S., was a top contributor in the first quarter. Results slightly exceeded our expectations, driven by a major mutual fund complex conducting board elections and relying on BR to process the proxies. More importantly, the outlook for the upcoming equity proxy season improved as equity position growth, which had been trending around 7%, began to pick up in October and was +11% for the quarter. Management now anticipates low double-digit equity position growth in the upcoming proxy season, up from prior expectations of mid-single-digit growth. Management also highlighted rising M&A activity and with net debt/EBITDA at approximately 2x, BR has the capacity to pursue strategic acquisitions. Overall, we remain confident in BR’s strong competitive position, its ability to grow organically with minimal capital investment, and its skilled leadership team led by CEO Tim Gokey.”
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Broadridge Financial Solutions, Inc. (NYSE:BR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Broadridge Financial Solutions, Inc. (NYSE:BR) at the end of the fourth quarter, compared to 33 in the third quarter. While we acknowledge the potential of Broadridge Financial Solutions, Inc. (NYSE:BR) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
