SCCM Value Equity Fund Sold Kenvue (KVUE) Due to Less Compelling Valuation

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 Kenvue Inc. (NYSE:KVUE). Headquartered in Summit, New Jersey, Kenvue Inc. (NYSE:KVUE) is a consumer health company. The one-month return of Kenvue Inc. (NYSE:KVUE) was 6.43%, and its shares lost 33.33% of their value over the last 52 weeks. On November 19, 2025, Kenvue Inc. (NYSE:KVUE) stock closed at $16.06 per share, with a market capitalization of $30.82 billion.

SCCM Value Equity Strategy stated the following regarding Kenvue Inc. (NYSE:KVUE) in its third quarter 2025 investor letter:

"Kenvue Inc. (NYSE:KVUE) was sold from the strategy during the quarter. The company, a global consumer health business spun off from Johnson & Johnson in 2023, has seen volume trends stabilize following significant investment in its R&D and marketing across its health and beauty brands. However, it continues to face multiple challenges, including pressures on US consumer spending, a prolonged winter season that likely delayed allergy and sun care season, and persistent headwinds from China destocking and distribution issues. Additionally, growing competition from challenger brands and shrinking shelf space have eroded market share, while categories including cold/flu and allergy remain subject to volatile inventory trends. At 19x 2025 EPS, the stock’s valuation is less compelling than when it was initially added to the portfolio in 2023."

Kenvue Inc. (NYSE:KVUE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 72 hedge fund portfolios held Kenvue Inc. (NYSE:KVUE) at the end of the second quarter, up from 52 in the previous quarter. While we acknowledge the potential of Kenvue Inc. (NYSE:KVUE) 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 Kenvue Inc. (NYSE:KVUE) and shared the list of best low-priced stocks to buy according to analysts. 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.