SouthernSun Asset Management, an investment management firm, released its “SMID Cap Strategy” second-quarter 2025 investor letter. The fund focuses on disciplined, long-term investing in resilient businesses, navigating volatile markets with deep research, patience, and an unwavering commitment to capital stewardship. During the second quarter of 2025, the SMID Cap Composite returned 10.53% on a gross basis (10.34% net) versus the Russell 2500®, which returned 8.59% and the Russell 2500® Value, which returned 7.29%, over the same period. Over the trailing twelve months, the composite returned 3.34% on a gross basis (2.62% net) versus the Russell 2500®, which returned 9.91% and the Russell 2500® Value, which returned 10.47%, over the same period. The fund’s top 5 holdings are also listed in the letter, showing the firm’s main investment positions heading into 2025. A copy of SouthernSun SMID Cap Strategy’s Q2 2025 investor letter is available for download here.
One of the companies mentioned in the letter is MSA Safety Incorporated (NYSE:MSA). MSA Safety Incorporated (NYSE:MSA) develops, manufactures, and supplies safety products and technology solutions that protect people and facility infrastructures worldwide. Over the past month, MSA Safety Incorporated (NYSE:MSA) fell -3.36%, and its shares lost 3.33% of their value over the last 12 months. On August 18, 2025, MSA Safety Incorporated (NYSE:MSA) shares closed at $170.45, with a market capitalization of $6.67 billion.
Here is what they have to say about MSA Safety Incorporated (NYSE:MSA) in their investor letter:
“During the second quarter of 2025, we initiated one new position in MSA Safety Incorporated (NYSE:MSA) in the SMID Cap Composite.
MSA Safety, Inc. (MSA). MSA’s core business provides critical safety solutions for workers across various industries, including construction, oil and gas, fire service, and general industry. Their product portfolio includes gas detection instruments, fall protection equipment, head protection, and respiratory protective devices. They focus on delivering innovative technologies and connected safety solutions, ensuring worker safety and regulatory compliance in hazardous environments. MSA Safety holds strong market positions across its major product categories, driven by its reputation for quality, reliability, and innovation.
MSA has been a long-standing leader in firefighter safety equipment. They are well known for their self-Containedbreathing-apparatus (SCBA). This is a market where brand recognition, and reliability are incredibly important. The SCBAs are also used in hazardous industrial environments. MSA’s focus on advanced filtration technologies and user comfort contributes to its strong market presence.
MSA is also a leading provider of fixed and portable gas detection instruments. Their products cater to diverse industries, from oil and gas to wastewater treatment, where monitoring hazardous gases is crucial. They have a significant market share due to their robust and accurate sensors, as well as their growing connected safety solutions that allow for remote monitoring and data analysis.
Other safety equipment includes products for Fall Protection including a comprehensive range of products, including harnesses, lanyards, and anchorage systems. They hold a prominent position, particularly in construction and industrial settings, where worker safety at heights is paramount. MSA’s emphasis on ergonomic design and durable materials strengthens its competitive edge. For head protection, they have a helmet offering and they have a strong market position due to the quality and durability of their products. Overall, MSA’s market leadership stems from its commitment to providing high-quality, reliable safety solutions that meet the evolving needs of its customers. Their focus on innovation, particularly in connected safety technologies, further solidifies their position in these critical markets…” (Click here to continue reading)
A worker in a factory wearing a safety uniform standing in front of a conveyor belt of products.
MSA Safety Incorporated (NYSE:MSA) is not included in our list of the 30 most popular stocks among hedge funds. According to our data, 28 hedge fund portfolios held positions in MSA Safety Incorporated (NYSE:MSA) at the end of the first quarter of 2025, up from 25 in the previous quarter. In the second quarter, consolidated reported sales growth was 3% or flat organic and adjusted earnings per share were $1.93. While we acknowledge the risk and potential of MSA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MSA and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered MSA Safety Incorporated (NYSE:MSA) being one of the best dividend stocks to buy and hold forever. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
