Here's Why SCCM Enhanced Equity Income Fund Called Away RTX (RTX) in Q2

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 RTX Corporation (NYSE:RTX). RTX Corporation (NYSE:RTX) is an aerospace and defense company. The one-month return of RTX Corporation (NYSE:RTX) was 1.14%, and its shares gained 28.59% of their value over the last 52 weeks. On August 29, 2025, RTX Corporation (NYSE:RTX) stock closed at $158.60 per share, with a market capitalization of $212.292 billion.

SCCM Enhanced Equity Income Fund stated the following regarding RTX Corporation (NYSE:RTX) in its second quarter 2025 investor letter:

"RTX Corporation (NYSE:RTX) – Our position in RTX was called away and not repurchased. The stock had been a long-term holding but has appreciated substantially over the past year, benefiting from its exposure to increasing defense budgets and RTX’s particular exposure to missile defense systems, one of the most in-demand defense products. Moreover, the company has managed its GTF engine recall and well-mitigated the risks. While we continue to believe in the company’s strong and improving fundamentals, the valuation now reflects that positive outlook. Given the price appreciation, the stock’s P/E multiple has expanded to 25x and the dividend yield has fallen to 1.8%."

RTX Corporation (NYSE:RTX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 71 hedge fund portfolios held RTX Corporation (NYSE:RTX) at the end of the second quarter, which was 79 in the previous quarter. In the second quarter, RTX Corporation’s (NYSE:RTX) adjusted sales reached $21.6 billion, reflecting a 9% increase on both an adjusted and organic basis. While we acknowledge the potential of RTX Corporation (NYSE:RTX) 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 RTX Corporation (NYSE:RTX) and shared the list of must-buy US stocks to invest in. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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