Core Insights - SouthernSun Asset Management's "SouthernSun Small Cap Strategy" reported a -2.45% gross return for the Small Cap Composite in Q4 2025, underperforming the Russell 2000 Index which returned 2.19% and the Russell 2000 Value Index at 3.26% [1] - Over the trailing 12 months, the Composite achieved a gross return of 6.21%, compared to 12.81% for the Russell 2000 Index and 12.59% for the Russell 2000 Value Index [1] - The letter draws parallels between the economic lessons from the oil price collapse of 2014-15 and the current landscape shaped by artificial intelligence (AI), emphasizing the need for careful analysis of associated risks [1] Company Focus: Kadant Inc. (NYSE:KAI) - Kadant Inc. is identified as a global supplier of technologies and engineered systems, primarily serving the pulp, paper, and wood processing industries [2][3] - As of March 03, 2026, Kadant Inc. shares closed at $344.47, with a one-month return of 3.38% and a 52-week loss of 6.81% [2] - The company has a market capitalization of $3.101 billion, and its product lines hold a leading market share, contributing to a recurring revenue stream that constitutes approximately two-thirds of total revenue [3]