Do You Believe in the Upside Potential of Quaker Houghton (KWR)?

Cullen Capital Management, LLC, operating under the name Schafer Cullen Capital Management, Inc. (SCCM), has released its “SCCM Small Cap 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 Russell 2000 returning 12.4% and the Russell 2000 Value surging 12.6%. The Small Cap Value Equity strategy returned 14.4% (gross of fees) and 14.2% (net of fees) in the quarter. The small caps delivered strong results in the quarter, driven by Fed rate cuts, broad-based economic resilience, and renewed investor appetite for risk. 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 Small Cap Value Equity Strategy highlighted stocks such as Quaker Chemical Corporation (NYSE:KWR). Quaker Chemical Corporation (NYSE:KWR) offers industrial process fluids for steel, aluminum, automotive, aerospace, offshore, can, mining, and metalworking companies. The one-month return of Quaker Chemical Corporation (NYSE:KWR) was 2.48%, and its shares lost 13.72% of their value over the last 52 weeks. On November 24, 2025, Quaker Chemical Corporation (NYSE:KWR) stock closed at $136.15 per share, with a market capitalization of $2.368 billion.

SCCM Small Cap Value Equity Strategy stated the following regarding Quaker Chemical Corporation (NYSE:KWR) in its third quarter 2025 investor letter:

“Quaker Chemical Corporation (NYSE:KWR) is a global leader in industrial process fluids, lubricants, and specialty chemicals serving the metalworking, steel, automotive, aerospace, and general manufacturing industries. The company provides mission-critical products that improve process efficiency, extend equipment life, and support sustainability initiatives across diverse industrial supply chains. Quaker Houghton has built a resilient business model characterized by high customer retention, strong pricing power, and disciplined execution through economic cycles. Its management team continues to navigate raw material volatility effectively while expanding margins through operational efficiencies and innovation-driven product differentiation. The company’s exposure to industrial production, infrastructure investment, and reshoring trends should position it to benefit from a sustained recovery in global manufacturing. Continued penetration in international markets, particularly in emerging economies, alongside prudent capital allocation and ongoing sustainability initiatives, supports durable earnings growth and attractive long-term compounding potential. With a strong balance sheet, solid free cash flow generation, and expanding strategic partnerships, Quaker Houghton represents a high-quality franchise in a position to outperform through the next phase of the cycle.”

Quaker Chemical Corporation (NYSE:KWR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 21 hedge fund portfolios held Quaker Chemical Corporation (NYSE:KWR) at the end of the second quarter, compared to 25 in the previous quarter. In the third quarter of 2025, Quaker Chemical Corporation (NYSE:KWR) reported net sales of $494 million, marking a 7% increase from the prior year. While we acknowledge the risk and potential of Quaker Chemical Corporation (NYSE:KWR) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Quaker Chemical Corporation (NYSE:KWR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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.