Southernnsun Asset Management, an investment management company, LLC, released the "Southernsun Small Cap Strategy" for investor letters for the first quarter of 2025. A copy of the letter can be downloaded here. In the first quarter, the total number of the strategy was -11.32% (net -11.48%), while the Russell 2000 index had a return of -9.48% and the Russell 2000 value index had a return of -7.74%. The total number of this strategy was -12.55% (net -13.21%), while the indexes during the same period were -4.01% and -3.12%, respectively. Also, check the top 5 holdings of this strategy for the best options for 2025.

Southernnsun’s small CAP strategy highlighted stocks in its first quarter 2025 investor letter, such as Enerpac Tool Group Corp. (NYSE: EPAC). The Enerpac Tools Group (NYSE: EPAC) provides a wide range of industrial products and solutions. Enerpac Tools Group (NYSE:EPAC) has a one-month return of -10.32%, and its shares have earned 10.70% of its value in the past three months. On April 25, 2025, Enerpac Tool Group Corp. (NYSE: EPAC) closed at $40.23 per share, with a market value of $21.76 billion.

Southernnsun Small CAP Strategy points out the following content about Enerpac Tools Group (NYSE:EPAC) in its Q1 2025 investor letter:

“Enerpac Tools Group Corp. (NYSE: EPAC) is the biggest contributor to the small CAP strategy. The management team, led by CEO Paul Sternlieb, has done a great job in improving profitability since taking the position 4 years ago. EBITDA per share has grown at a CAGR of 24% over the past three years. Leadership has begun to focus more on business efficiency and excellence, and they are starting to see results, which is a testament to the recent organic growth. Additionally, many of EPAC's products are used in infrastructure construction and they are finally beginning to see meaningful project activity in infrastructure in the U.S. that could help them sell in the following quarter. We believe that the key to future success is ongoing business and operational execution and how they will use the cash generated from this high-profit business. The company continues to evaluate M&A candidates; however, we will look for ongoing stock buybacks without good M&A goals. ”

A skilled engineer working on newly developed hydraulic tools with views of the factory floor.

Enerpac Tool Group Corp. (NYSE:EPAC) is not among the 30 most popular stocks in hedge funds. According to our database, at the end of the fourth quarter, 16 hedge fund portfolios ended the Enerpac Tools Group (NYSE:EPAC) in the fourth quarter, compared with 18 in the third quarter. Enerpac Tool Group Corp. (NYSE:EPAC) revenue increased by 5.1% in fiscal 2025. Although we acknowledge the potential of Enerpac Tool Group Corp. (NYSE:EPAC) as an investment, our belief is that AI stocks have greater hope to deliver higher returns and do so in a shorter time frame. If you are looking for AI stocks that are as promising as NVIDIA but have less than 5 times its earnings, check out our report Cheapest AI stocks.