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 Boot Barn Holdings
(NYSE:BOOT). Boot Barn Holdings (NYSE:BOOT) operates specialty retail stores in the United States and internationally, and its specialty retail stores offer western and work-related footwear, apparel, and accessories for men, women, and kids. Over the past month, Boot Barn Holdings (NYSE:BOOT) fell by -1.40%, but its shares gained 24.84% of their value over the last 12 months. On August 12, 2025, Boot Barn Holdings (NYSE:BOOT) shares closed at $172.90, with a market capitalization of $5.15 billion.
Here is what they have to say about Boot Barn Holdings (NYSE:BOOT) in their investor letter:
“Boot Barn Holdings (NYSE:BOOT) was a top contributor in the second quarter. After a pullback in the first quarter which we believe was due to concerns about the cost of tariffs and weakening consumer confidence, BOOT recovered nicely after reporting their fiscal 4th quarter and full year (2025) results. For the full year, sales were up 14.6%, and same store sales increased 5.5%. (In the current quarter, they report that same store sales are up approximately 9%). They opened 60 new stores last year, bringing their total store count to 459, and they plan on continuing to open new stores at a rate of approximately 15% new floor space per year. They shared the tariff mitigation plan which includes meaningful supply chain moves away from China in the coming quarters. All in all, the BOOT thesis remains intact: growth through new stores and same store sales; growth in their higher margin proprietary brands; and their balance sheet is in excellent shape with no net debt.”
