Cullen Capital Management, LLC, operating under the name Schafer Cullen Capital Management, Inc. (SCCM), has released its “SCCM Enhanced Equity Income Fund” third-quarter investor letter. A copy of the letter can be downloaded here. US equities continued to rise in the third quarter, with the S&P 500 returning 8.1% while the Russell 1000 Value was up 5.3%. The composite returned 0.9% (net) in the quarter, compared to a 3.5% return for the S&P 500 Buy-Write Index (BXM) and a 2.5% return for 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 third-quarter 2025 investor letter, SCCM Enhanced Equity Income Fund highlighted stocks such as Conagra Brands, Inc. (NYSE:CAG). Conagra Brands, Inc. (NYSE:CAG) is a consumer-packaged goods food company. The one-month return for Conagra Brands, Inc. (NYSE:CAG) was -1.11%, and its shares lost 37.78% over the last 52 weeks. On December 04, 2025, Conagra Brands, Inc. (NYSE:CAG) stock closed at $16.95 per share, with a market capitalization of $8.108 billion.
SCCM Enhanced Equity Income Fund stated the following regarding Conagra Brands, Inc. (NYSE:CAG) in its third quarter 2025 investor letter:
“Our position in Conagra Brands, Inc. (NYSE:CAG) was sold during the quarter. Conagra has bolstered its food portfolio over the years through M&A, however industry challenges impacting leading traditional brands have yet to abate. The frozen food category, approximately 1/3 of CAG’s sales, has struggled amidst intense competition from challenger brands while volumes continue to decline following inflationary price increases. While the stock’s valuation is attractive at 11x forward earnings, the entire food industry has de-rated over the past several years. In addition, the current dividend payout ratio is 80% versus the company’s target of 50-55% which places the dividend at risk.”
Conagra Brands, Inc. (NYSE:CAG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Conagra Brands, Inc. (NYSE:CAG) at the end of the third quarter, which was 38 in the previous quarter. While we acknowledge the potential of Conagra Brands, Inc. (NYSE:CAG) 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.
