Here’s Why SouthernSun Small Cap Strategy Added Extreme Networks (EXTR)

5 hours ago 2

Soumya Eswaran

Mon, Apr 28, 2025, 6:09 AM 3 min read

SouthernSun Asset Management, LLC, an concern absorption firm, released its “SouthernSun Small Cap Strategy” archetypal 4th 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. In the archetypal quarter, the strategy returned -11.32% connected a gross ground (-11.48% net) compared to a -9.48% instrumentality for the Russell 2000 Index and -7.74% for the Russell 2000 Value Index. The strategy returned -12.55% connected a gross ground (-13.21% net) for the trailing 12 months compared to -4.01% and -3.12% respectively for the indexes implicit the aforesaid period. In addition, delight cheque the apical 5 holdings of the strategy to cognize its champion prime successful 2025.

In its first-quarter 2025 capitalist letter, SouthernSun Small Cap Strategy highlighted stocks specified arsenic Extreme Networks, Inc. (NASDAQ:EXTR). Extreme Networks, Inc. (NASDAQ:EXTR) develops and markets web infrastructure instrumentality and related software. The one-month instrumentality of Extreme Networks, Inc. (NASDAQ:EXTR) was -5.59%, and its shares gained 8.14% of their worth implicit the past 3 months. On April 25, 2025, Extreme Networks, Inc. (NASDAQ:EXTR) banal closed astatine $12.49 per stock with a marketplace capitalization of $1.658 billion.

SouthernSun Small Cap Strategy stated the pursuing regarding Extreme Networks, Inc. (NASDAQ:EXTR) successful its Q1 2025 capitalist letter:

"Extreme Networks, Inc. (NASDAQ:EXTR) was a caller summation to the Small Cap strategy successful the archetypal 4th of 2025. Extreme Networks is 1 of the apical 3 players successful the networking industry. While the manufacture has been dominated by Cisco and Hewlett Packard (HPE), who unneurotic person >60% share, some Cisco and HPE person developed their product/ architecture with “data-centers” successful mind. However, EXTR has taken a antithetic tact and developed their architecture with a distributed situation arsenic their people market. We judge EXTR has the accidental to turn revenues successful the debased double-digit scope and disrupt the manufacture owed to product, distribution, and pricing advantages.

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