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NewSouth Capital Management, Inc.
Stephen Morrow · Investment Advisor · Value
NewSouth Capital Management, Inc. is an independently owned investment firm headquartered in Memphis, Tennessee. Founded in 1985, the firm specializes in managing concentrated equity portfolios for institutional and private clients through a fundamental, value-oriented approach. It offers several strategies categorized by market capitalization, including Small Cap, Small/Mid Cap, Mid Cap, and Value Opportunity. NewSouth is registered with the SEC as an investment adviser and maintains a focus on long-term capital appreciation and preservation by identifying market inefficiencies through bottom-up research.
Simulated Performance
| Metric | Value |
|---|---|
| Total return | +26.5% |
| YTD return | +24.3% |
| Sharpe ratio | 3.48 |
| Win rate | 50% |
| AUM | $1.8B |
| Inception | Oct 1, 2025 |
| Updated | Sep 18, 2026 |
Institution Status
| Field | Value |
|---|---|
| AUM | $1.8B |
| Turnover | Low (<15%) |
| Avg holding | 18 Months |
| Inception | Oct 1, 2025 |
| Website | https://www.newsouthcapital.com |
Current Holdings
Updated on Sep 18, 2026.
| Ticker | Name | Portfolio % | Return |
|---|---|---|---|
| VRT | Vertiv Holdings Co | 11.4% | +33.9% |
| WCC | WESCO International Inc | 9.9% | +53.7% |
| RPRX | Royalty Pharma Plc | 8.5% | +50.1% |
| ZBRA | Zebra Technologies Corporation | 8.3% | +18.7% |
| ENS | Enersys | 7.3% | +40.2% |
| AZO | AutoZone Inc | 6.2% | -28.0% |
| VAC | Marriot Vacations Worldwide | 5.6% | +20.2% |
| TMO | Thermo Fisher Scientific Inc | 5.3% | +21.9% |
| WEX | Wex Inc | 4.7% | +12.8% |
| ESI | Element Solutions Inc | 4.5% | +17.2% |
| GTX | Garrett Motion Inc | 4.5% | +82.1% |
| MSM | MSC Industrial Direct Company Inc | 3.6% | +31.3% |
| EEFT | Euronet Worldwide Inc | 3.3% | -16.7% |
| FISV | Fiserv, Inc. Common Stock | 2.9% | -18.1% |
| OTEX | Open Text Corp | 2.7% | -29.9% |
| FDX | FedEx Corporation | 2.6% | +18.2% |
| SSNC | SS&C Technologies Holdings Inc | 2.4% | +14.4% |
| CCS | Century Communities Inc | 2.2% | -1.1% |
| OSW | OneSpaWorld Holdings Ltd | 2.2% | +3.5% |
| FCFS | FirstCash Inc | 2.0% | -3.2% |
Recent activity
| Date | Action | Ticker | Weight |
|---|---|---|---|
| Sep 7, 2026 | BUY | WCC | 9.8% → 9.9% |
| Sep 7, 2026 | BUY | RPRX | 7.4% → 8.5% |
| Sep 7, 2026 | SELL | KFRC | 2.0% → 0.0% |
| Sep 7, 2026 | SELL | ENS | 8.0% → 7.3% |
| Sep 7, 2026 | SELL | SSNC | 2.3% → 2.4% |
Investment Style Analysis
NewSouth Capital Management, Inc. is widely recognized for employing a Value strategy. As of Sep 18, 2026, the firm oversees approximately $1.8B in assets under management (AUM). The portfolio demonstrates a clear preference for the Electrical Equipment & Parts and Industrial Distribution sectors, reflecting a high-conviction approach to capital allocation.
Recent Market Moves
During the latest rebalancing period ending Sep 7, NewSouth Capital Management, Inc. made a significant move by increasing exposure to WCC. This adjustment aligns with the fund's dynamic approach to risk management and capital deployment in current market conditions.
Investment Philosophy
NewSouth’s philosophy is rooted in the belief that market inefficiencies, often driven by emotion or short-term perspectives, create attractive investment opportunities. The firm employs a repeatable, bottom-up fundamental research process to identify businesses that can be valued confidently and purchased at a significant discount to their intrinsic value, incorporating a "margin of safety" discipline. They maintain an ownership mindset with a long-term horizon, typically holding concentrated portfolios of 25 to 35 companies to maximize conviction while managing risk through disciplined valuation and quality assessments.
Disclaimer
The content provided on this page, including the simulated portfolio performance, holdings analysis, and AI-generated insights, is for informational and educational purposes only. It does not constitute financial advice, investment recommendations, or an offer to buy or sell any securities. All data is derived from historical SEC 13F filings and other public disclosures, which have a reporting lag. The "Simulated Performance" is a hypothetical reconstruction based on past disclosures and does not represent the actual returns of the institution. Past performance is not indicative of future results. Tritonix.ai is not affiliated with NewSouth Capital Management, Inc..
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Frequently asked questions
How is the simulated portfolio for NewSouth Capital Management, Inc. constructed?
This simulation is powered by Tritonix AI using official SEC filings. We focus on the "Best Ideas" by filtering for only the Top 20 largest holdings and rebalancing them to 100%. The simulation tracks performance starting from Oct 1, 2025. Our AI monitors for updates every Monday to capture major shifts. This concentrated approach highlights the manager's true stock-picking skill and mirrors their actual investment returns.
What is NewSouth Capital Management, Inc.'s largest holding?
As of the latest filing, NewSouth Capital Management, Inc.'s top position is Vertiv Holdings Co (VRT), representing 11.4% of the portfolio. This reflects a high-conviction bet by the institution.
What is NewSouth Capital Management, Inc.'s historical performance and risk profile?
Our simulation indicates a total return of +26.5% with a win rate of 50%. Notably, the portfolio maintains a Sharpe Ratio of 3.48, suggesting an exceptional level of risk-adjusted returns compared to the broader market.
What sectors does NewSouth Capital Management, Inc. primarily invest in?
NewSouth Capital Management, Inc. has a strong preference for the Electrical Equipment & Parts sector, which makes up 18.7% of their disclosed assets. The portfolio also has exposure to Industrial Distribution, indicating a specific thematic focus.
Is NewSouth Capital Management, Inc.'s portfolio concentrated or diversified?
NewSouth Capital Management, Inc. runs a moderately concentrated portfolio with 20 disclosed positions. The top 3 holdings alone account for 29.8% of the total portfolio weight, suggesting a strategy that favors broader market exposure.
How has NewSouth Capital Management, Inc. performed in 2026?
Our AI-simulated model portfolio for NewSouth Capital Management, Inc. tracks a Year-to-Date (YTD) return of +24.3%. This metric helps investors gauge the institution's effectiveness in the current market environment.
Does Stephen Morrow manage NewSouth Capital Management, Inc. directly?
Yes, Stephen Morrow serves as the key portfolio manager for NewSouth Capital Management, Inc., overseeing the investment strategy and final capital allocation decisions.