Cullen Capital Management, LLC, operating under the name Schafer Cullen Capital Management, Inc. (SCCM), recently released its “SCCM Small Cap Value Equity Strategy” third-quarter investor letter. The US equity market saw a continued rally in the third quarter, with the Russell 2000 returning 12.4% and the Russell 2000 Value surging 12.6%. SCCM’s Small Cap Value Equity strategy performed well, returning 14.4% (gross of fees) and 14.2% (net of fees) in the quarter. The strong results in small caps were attributed to Fed rate cuts, economic resilience, and renewed investor risk appetite.
One of the highlighted stocks in SCCM’s third-quarter 2025 investor letter was Quaker Chemical Corporation (NYSE:KWR). Quaker Chemical Corporation offers industrial process fluids for various industries such as steel, aluminum, automotive, aerospace, and more. Despite a one-month return of 2.48%, the company’s shares lost 13.72% of their value over the past 52 weeks. As of November 24, 2025, Quaker Chemical Corporation stock closed at $136.15 per share, with a market capitalization of $2.368 billion.
In the investor letter, SCCM Small Cap Value Equity Strategy provided insight into Quaker Chemical Corporation, describing it as a global leader in industrial process fluids, lubricants, and specialty chemicals. The company serves various industries and has a resilient business model with high customer retention and strong pricing power. The management team has effectively navigated raw material volatility and expanded margins through operational efficiencies and innovation-driven product differentiation. Quaker Chemical Corporation’s exposure to industrial production, infrastructure investment, and reshoring trends positions it well for sustained growth in global manufacturing.
While Quaker Chemical Corporation is not among the 30 most popular stocks among hedge funds, it reported a 7% increase in net sales in the third quarter of 2025. Despite its potential as an investment, SCCM believes that certain AI stocks offer greater upside potential with less downside risk. Investors looking for undervalued AI stocks can explore the free report on the best short-term AI stock for potential opportunities.
For more investor letters from hedge funds and leading investors, readers are encouraged to visit the hedge fund investor letters Q3 2025 page. Additionally, they can explore articles on the best and worst Dow stocks for the next 12 months and 10 unstoppable stocks that could double their money. Disclosure: None. This article was originally published on Insider Monkey.
