Here's What Made SCCM Value Equity Fund Add NextEra Energy (NEE) to Its Portfolio

Cullen Capital Management, LLC, operating under the name Schafer Cullen Capital Management, Inc. (SCCM), has released its “SCCM Value Equity Strategy” third-quarter investor letter. A copy of the letter can be downloaded here. The US equity market continued the rally in the third quarter, with the S&P 500 returning 8.1% and the Russell 1000 Value surging 5.3%. The value equity strategy returned 6.9% (gross of fees) and 6.8% (net of fees) in the quarter, while the Russell 1000 Value and S&P 500 returned 5.3% and 8.1%, respectively, during the same period. The strategy returned 13.0% (gross), YTD, compared to the Russell 1000 Value’s +11.7% return and the S&P 500’s +14.8% return. 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 Value Equity Strategy highlighted stocks such as NextEra Energy, Inc. (NYSE:NEE). NextEra Energy, Inc. (NYSE:NEE) generates, transmits, distributes, and sells electric power to retail and wholesale customers. The one-month return of NextEra Energy, Inc. (NYSE:NEE) was 2.17%, and its shares gained 10.09% of their value over the last 52 weeks. On November 18, 2025, NextEra Energy, Inc. (NYSE:NEE) stock closed at $84.64 per share, with a market capitalization of $176.27 billion.

SCCM Value Equity Strategy stated the following regarding NextEra Energy, Inc. (NYSE:NEE) in its third quarter 2025 investor letter:

"NextEra Energy, Inc. (NYSE:NEE) was purchased in the Value Equity strategy. NextEra is a Florida-based regulated utility (70% of revenue) and renewables company (30% of revenue). The company's rate-regulated utility is located in regions with strong economic and population growth with a supportive regulator that has approved above-average ROE levels and strong rate base growth. Its portfolio of solar and wind assets has seen considerable growth through long-term contracted assets and the drive toward clean energy generation. Despite the roll-back of federal renewable subsidiaries, the cost of solar and wind generation has fallen substantially and the company is capitalizing on the rapid growth of generation and transmission demand. The valuation of the stock is currently at the Utilities' sector average at 19x forward earnings with a 2.8% dividend yield."

NextEra Energy, Inc. (NYSE:NEE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 66 hedge fund portfolios held NextEra Energy, Inc. (NYSE:NEE) at the end of the second quarter, compared to 75 in the previous quarter.  While we acknowledge the potential of NextEra Energy, Inc. (NYSE:NEE) 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 NextEra Energy, Inc. (NYSE:NEE) and shared the list of best renewable energy dividend stocks to buy. In addition, please check out our hedge fund investor letters Q3 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.