Crane NXT (CXT): SouthersSun Small Cap Strategy's New Portfolio Holding

SouthernSun Asset Management, LLC, an investment management firm, released its “SouthernSun Small Cap Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the strategy returned 11.73% on a gross basis (11.52% net) compared to a 12.39% return for the Russell 2000 Index and 12.60% for the Russell 2000 Value Index. The strategy returned -0.66% on a gross basis (-0.10% net) for the trailing twelve months compared to 10.76% and 7.88% respectively for the indexes over the same period. In addition, please check the top 5 holdings of the strategy to know its best pick in 2025.

In its third-quarter 2025 investor letter, SouthernSun Small Cap Strategy highlighted stocks such as Crane NXT, Co. (NYSE:CXT). Crane NXT, Co. (NYSE:CXT) is an industrial technology company. The one-month return Crane NXT, Co. (NYSE:CXT) was -8.39%, and its shares gained 10.72% of their value over the last 52 weeks. On November 4, 2025, Crane NXT, Co. (NYSE:CXT) stock closed at $63.13 per share, with a market capitalization of $3.625 billion.

SouthernSun Small Cap Strategy stated the following regarding Crane NXT, Co. (NYSE:CXT) in its third quarter 2025 investor letter:

"Crane NXT, Co. (NYSE:CXT). We initiated a new position in Crane NXT (CXT) in the Small Cap strategy during the quarter. CXT was spun off from Crane Corporation in 2023. We owned the parent company (Crane Corporation) for several years – so, we know the business quite well. This is a nichey business; CXT has a strong foundation in security and authentication technologies and automated payment systems.

It now operates through two primary segments: Crane Payment Innovations (CPI) provides a comprehensive suite of payment solutions including cash validation, payment acceptance, vending and kiosk automation, and cash processing systems. This segment serves diverse markets including retail, gaming, transportation, and financial institutions. This segment demonstrates niche dominance in several specialized markets and with more than 350 engineers dedicated to R&D, we believe that they can remain a very strong player..." (Click here to read the full text)

Crane NXT, Co. (NYSE:CXT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 24 hedge fund portfolios held Crane NXT, Co. (NYSE:CXT) at the end of the second quarter, up from 21 in the previous quarter. While we acknowledge the potential of Crane NXT, Co. (NYSE:CXT) 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 addition, please check out our hedge fund investor letters Q3 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.