Cullen Capital Management, LLC, operating under the name Schafer Cullen Capital Management, Inc. (SCCM), has released its “SCCM Enhanced Equity Income Fund” second-quarter investor letter. A copy of the letter can be downloaded here. US equities surged in the second quarter, with the S&P 500 gaining 10.9% while the Russell 1000 Value was up 3.8%. The composite underperformed both of its benchmarks in the second quarter, returning -1.2% (net) compared to a 1.9% return by the S&P 500 Buy-Write Index (BXM) and a 3.7% return by the SPDR Bloomberg High Yield Bond ETF (JNK). In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its second-quarter 2025 investor letter, SCCM Enhanced Equity Income Fund highlighted stocks such as Chevron Corporation (NYSE:CVX). Chevron Corporation (NYSE:CVX) engages in integrated energy and chemicals operations that operate through Upstream and Downstream segments. The one-month return of Chevron Corporation (NYSE:CVX) was 6.08%, and its shares gained 8.55% of their value over the last 52 weeks. On August 29, 2025, Chevron Corporation (NYSE:CVX) stock closed at $160.60 per share, with a market capitalization of $323.58 billion.
SCCM Enhanced Equity Income Fund stated the following regarding Chevron Corporation (NYSE:CVX) in its second quarter 2025 investor letter:
“Chevron Corporation (NYSE:CVX) – Our position in Chevron was sold during the quarter. Chevron continues to offer a high quality asset base, strong balance sheet, and attractive dividend profile. However, with the pending Hess acquisition and ongoing arbitration process creating some uncertainty around timing and integration, we saw an opportunity to rotate into ConocoPhillips. While the transaction is strategically sound, expected free cash flow contributions are more weighted toward the back half of the decade. We initiated a position in ConocoPhillips, which offers similar upstream exposure, a clearer near-term cash flow inflection, and trades at a meaningfully lower valuation.”
Chevron Corporation (NYSE:CVX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 76 hedge fund portfolios held Chevron Corporation (NYSE:CVX) at the end of the second quarter, which was 81 in the previous quarter. While we acknowledge the potential of Chevron Corporation (NYSE:CVX) 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.
