SCCM Enhanced Equity Income Fund Sold Dow (DOW) Amid Prolonged Market Weakness and Uncertain Recovery

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 Dow Inc. (NYSE:DOW). Dow Inc. (NYSE:DOW) provides materials science solutions for packaging, infrastructure, mobility, and consumer applications. The one-month return of Dow Inc. (NYSE:DOW) was 13.03%, and its shares lost 54.03% of their value over the last 52 weeks. On August 29, 2025, Dow Inc. (NYSE:DOW) stock closed at $24.63 per share, with a market capitalization of $17.459 billion.

SCCM Enhanced Equity Income Fund stated the following regarding Dow Inc. (NYSE:DOW) in its second quarter 2025 investor letter:

"Dow Inc. (NYSE:DOW) – Our position in DOW was sold during the quarter. The company has been hurt by a down market in construction, manufacturing, and automotive markets, which has been exacerbated by trade tensions in the past few months. Management has announced several actions to improve cash flow, including $2.4 billion of asset sales, a $1 billion capex reduction, and a >$1 billion settlement from a years long lawsuit. While we continue to see considerable upside in the stock once its end markets recover, the timing remains uncertain."

Dow Inc. (NYSE:DOW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Dow Inc. (NYSE:DOW) at the end of the second quarter, which was 43 in the previous quarter. Dow Inc.'s (NYSE:DOW) net sales were $10.1 billion in Q2 2025, down 7% compared to Q2 2024. While we acknowledge the potential of Dow Inc. (NYSE:DOW) 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.

In another article, we covered Dow Inc. (NYSE:DOW) and shared the list of stocks Jim Cramer recently discussed. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.