Core Insights - SouthernSun Asset Management's "SouthernSun Small Cap Strategy" reported an 11.73% gross return in Q3 2025, underperforming the Russell 2000 Index and Russell 2000 Value Index which returned 12.39% and 12.60% respectively [1] - Over the trailing twelve months, the strategy returned -0.66% gross, significantly lower than the indexes which returned 10.76% and 7.88% [1] Company Performance - Stepan Company (NYSE:SCL) was highlighted as a detractor in the Small Cap strategy, with a one-month return of -11.30% and a 52-week loss of 47.82% [2][3] - As of November 4, 2025, Stepan Company's stock closed at $42.31, with a market capitalization of $956.902 million [2] - The company is focusing on growing its functional surfactants for agriculture and oilfield markets, but faced a 1% decline in overall surfactant segment volumes due to weakness in commodity consumer product markets [3] - The Polymer segment saw a 7% increase in volumes, driven by strong demand in North American and European rigid polyols markets [3] - Stepan Company generated $197 million in trailing 12-month EBITDA, with expectations to reach $60 million quarterly as market conditions improve [3] - The company ended the second quarter with a net debt to trailing 12-month EBITDA ratio of 2.9x, which is expected to decrease as heavy investments conclude [3] - Luis Rojo, promoted to CEO in October 2024, has been recognized for effectively executing the business strategy [3] - Stepan Company is acknowledged as an industry leader in developing new products and maintaining long-term customer relationships, which are anticipated to provide steady cash flow [3]

Core Insights - Gilman Hill Asset Management, LLC disclosed a new stake in Kimberly-Clark Corporation with an estimated trade value of $9.92 million as of October 15, 2025 [2][4] - The new position represents 1.55% of Gilman Hill's reported U.S. equity assets as of September 30, 2025 [2][3] - Kimberly-Clark's stock price was $120.17 as of October 14, 2025, reflecting a 16.28% decline for the year, underperforming the S&P 500 by 26.6 percentage points [4] Company Overview - Kimberly-Clark operates in the consumer defensive sector, specializing in essential personal care and tissue products, with a portfolio of well-established brands [6] - The company generates revenue primarily through direct sales to retailers, distributors, and e-commerce channels, with a diversified global presence [7] - Key brands include Huggies, Kleenex, Scott, and Kotex, which are essential household products [6][8] Financial Metrics - As of October 14, 2025, Kimberly-Clark's market capitalization is $39.87 billion, with a trailing twelve months (TTM) revenue of $18.88 billion and net income of $2.43 billion [5] Investment Perspective - Investors are increasingly focusing on companies with steady cash flow, and Kimberly-Clark exemplifies this trend due to its everyday relevance and stable revenue [8][9] - The company has faced challenges from higher input costs and shifting consumer behavior, yet it maintains a strong record of dividend growth, currently yielding nearly 4% [9] - Kimberly-Clark's products are considered essential, suggesting resilience through economic cycles [10]

Core Insights - Berkshire Hathaway has a "secret portfolio" managed by New England Asset Management (NEAM), with a portfolio value of approximately $647 billion and potential holdings of $5.9 billion [1][2]. Group 1: NEAM Overview - NEAM is an asset management arm for insurance businesses acquired by Berkshire Hathaway, focusing on smaller, income-oriented stock holdings compared to Berkshire's main portfolio [2][3]. - The firm invests primarily in business development companies (BDCs), which lend money to small to mid-sized businesses that may not seek traditional bank funding [4][5]. Group 2: Investment Characteristics - NEAM's portfolio includes notable BDCs such as Ares Capital (ARCC), BlackRock TCP Capital (TCPC), and Golub Capital BDC, which offer yields of 9.66%, regular quarterly dividends, and 11.1% respectively [6][8]. - The portfolio also contains more stable investments like Realty Income Corp (yielding about 5.4%), Kinder Morgan (yielding approximately 4.28%), and the Vanguard High Dividend Yield ETF [8]. Group 3: Investment Strategy - The "secret portfolio" reflects a balance between long-term growth and steady cash flow, indicating a diversified investment strategy [6][7].