Here’s What Makes MSA Safety (MSA) a Smart Investment Choice

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

MSA Safety Incorporated

(NYSE:MSA). MSA Safety Incorporated (NYSE:MSA) develops, manufactures, and supplies safety products and technology solutions that protect people and facility infrastructures worldwide. Over the past month, MSA Safety Incorporated (NYSE:MSA) fell -3.36%, and its shares lost 3.33% of their value over the last 12 months. On August 18, 2025, MSA Safety Incorporated (NYSE:MSA) shares closed at $170.45, with a market capitalization of $6.67 billion.

Here is what they have to say about MSA Safety Incorporated (NYSE:MSA) in their investor letter:

"During the second quarter of 2025, we initiated one new position in MSA Safety Incorporated (NYSE:MSA) in the SMID Cap Composite.

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A worker in a factory wearing a safety uniform standing in front of a conveyor belt of products.

MSA Safety Incorporated (NYSE:MSA) is not included in our list of the 30 most popular stocks among hedge funds. According to our data,

28 hedge fund portfolios held positions in MSA Safety Incorporated (NYSE:MSA) at the end of the first quarter of 2025, up from 25 in the previous quarter. In the second quarter, consolidated reported sales growth was 3% or flat organic and adjusted earnings per share were $1.93. While we acknowledge the potential of MSA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered MSA Safety Incorporated (NYSE:MSA) being one of the best dividend stocks to buy and hold forever. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.

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