Cullen Capital Management, LLC, operating under the name Schafer Cullen Capital Management, Inc. (SCCM), recently released its fourth-quarter investor letter for the SCCM Enhanced Equity Income Fund. The letter highlighted the performance of the fund in the fourth quarter of 2025, where it returned 2.0% (net) and 7.5% (net) for the year. This was compared to 6.5% and 8.9% from its primary benchmark, the S&P 500 Buy/Write Index, and 1.4% and 8.7% for its secondary benchmark, the SPDR Barclays High Yield Bond ETF (JNK), respectively.
The fund’s total return was impacted by investors’ lack of interest in high-dividend and low-volatility factors, as well as a stagnant equity market across various sectors. Despite these challenges, the fund remains optimistic about the economic outlook for 2026. Factors such as the Federal Reserve’s interest-rate cuts, tax reductions, capital-expenditure bonus depreciation (OBBBA), and potential lower tariffs are expected to contribute to growth in the coming year.
One of the top holdings highlighted in the investor letter was QUALCOMM Incorporated (NASDAQ:QCOM). QUALCOMM is a multinational company that focuses on developing and commercializing foundational technologies for the wireless industry. As of February 27, 2026, QUALCOMM’s stock closed at $142.36 per share, with a one-month return of -6.72% and a 7.33% loss over the past 52 weeks. The company has a market capitalization of $151.9 billion.
In the investor letter, SCCM Enhanced Equity Income Fund provided a detailed analysis of QUALCOMM Incorporated (NASDAQ:QCOM). The fund expressed confidence in QUALCOMM’s long-term growth prospects despite near-term uncertainties surrounding handset demand and competitive dynamics in China. The company’s diversified portfolio across automotive, IoT, and AI-enabled computing sectors, along with its strong competitive position in premium smartphones, were highlighted as key strengths.
QUALCOMM’s expanding presence in non-handset businesses such as automotive and edge AI, coupled with its attractive valuation of 14.0x 2026 EPS and a 2.1% dividend yield, were cited as reasons for the fund’s investment in the company. The fund believes that QUALCOMM’s earnings profile will become more robust over time as non-handset businesses scale and Apple-related headwinds diminish.
While QUALCOMM Incorporated (NASDAQ:QCOM) is not among the 30 Most Popular Stocks Among Hedge Funds, the fund sees significant potential in the company as an investment. However, they also recommend exploring other AI stocks with greater upside potential and less downside risk. For investors seeking undervalued AI stocks, a list of recommendations can be found in another article on the subject.
Overall, SCCM Enhanced Equity Income Fund’s investor letter provides valuable insights into their investment strategy and top holdings, including QUALCOMM Incorporated (NASDAQ:QCOM). As the fund remains optimistic about the economic outlook for 2026, investors may find opportunities for growth and diversification in the coming year.
