What Makes Modine Manufacturing Company (MOD) an Investment Bet?

2 weeks ago 6

Soumya Eswaran

Mon, Apr 28, 2025, 5:59 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 Modine Manufacturing Company (NYSE:MOD). Modine Manufacturing Company (NYSE:MOD) offers thermal absorption products and solutions. The one-month instrumentality of Modine Manufacturing Company (NYSE:MOD) was 5.71%, and its shares mislaid 15.08% of their worth implicit the past 52 weeks. On April 25, 2024, Modine Manufacturing Company (NYSE:MOD) banal closed astatine $81.13 per stock with a marketplace capitalization of $4.265 billion.

SouthernSun Small Cap Strategy stated the pursuing regarding Modine Manufacturing Company (NYSE:MOD) successful its Q1 2025 capitalist letter:

"Modine Manufacturing Company (NYSE:MOD) is an implicit 100-year-old thermal absorption institution based successful Racine, WI. The institution started retired producing vigor exchangers for tractors but rapidly expanded into the automotive marketplace and became a large supplier of vigor exchangers to starring car manufacturers. As request for automobiles accrued importantly passim the 20th century, Modine expanded operations globally. However, arsenic the automotive marketplace matured and became much competitive, MOD’s maturation slowed, and the institution went done galore restructurings to instrumentality outgo retired of the business. The institution attempted to diversify into the HVAC manufacture by buying Airedale successful 2005 and Luvata successful 2016, but absorption lacked a wide strategical vision, and the bequest automotive concern continued to pull astir of the clip and resources.

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