Cullen Capital Management, LLC, operating under the name Schafer Cullen Capital Management, Inc. (SCCM), has released its “SCCM Enhanced Equity Income Fund” fourth-quarter investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the US equity market continued to rally, largely fueled by enthusiasm for artificial intelligence. The Enhanced Equity Income Strategy returned 2.0% (net) for the fourth quarter and 7.5% (net) for the year, compared to 6.5% and 8.9% from its primary benchmark, the S&P 500 Buy/Write Index, and 1.4% and 8.7% for its secondary benchmark, the SPDR Barclays High Yield Bond ETF (JNK), respectively. The Strategy’s total return was significantly affected by investors’ disregard for high-dividend and low-volatility factors, as well as an equity market that failed to expand across sectors. The Strategy anticipates a positive economic outlook for 2026, driven by the Federal Reserve’s interest-rate cuts, tax reductions, capital-expenditure bonus depreciation (OBBBA), and potential lower tariffs, all contributing to growth. In addition, please check the Strategy’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, SCCM Enhanced Equity Income Fund highlighted QUALCOMM Incorporated (NASDAQ:QCOM). QUALCOMM Incorporated (NASDAQ:QCOM) is a multinational company focuses on the development and commercialization of foundational technologies for the wireless industry. On February 27, 2026, QUALCOMM Incorporated (NASDAQ:QCOM) stock closed at $142.36 per share. One-month return of QUALCOMM Incorporated (NASDAQ:QCOM) was -6.72%, and its shares lost 7.33% over the past 52 weeks. QUALCOMM Incorporated (NASDAQ:QCOM) has a market capitalization of $151.9 billion.
SCCM Enhanced Equity Income Fund stated the following regarding QUALCOMM Incorporated (NASDAQ:QCOM) in its fourth quarter 2025 investor letter:
“Shares of QUALCOMM Incorporated (NASDAQ:QCOM) were purchased in the strategy during the quarter. Qualcomm is a leading global semiconductor and wireless technology company with a strong competitive position in premium smartphones and an increasingly diversified portfolio across automotive, IoT and AI-enabled computing. While near-term uncertainty around handset demand, competitive dynamics in China, and the gradual reduction of Apple modem volumes has weighed on sentiment, we view these factors as manageable within a broader, improving long-term growth profile. Qualcomm continues to benefit from a mix shift toward higher-end Android devices, where its content per handset and pricing power are structurally higher, supporting resilience even in a flat unit environment. Beyond handsets, Qualcomm’s automotive business now represents around 10% of QCT revenue and, together with its expanding presence in edge AI and AI enabled PCs, reinforces the company’s ongoing revenue diversification. As these non-handset businesses scale and Apple-related headwinds diminish, we believe Qualcomm’s earnings profile should become more durable over time. Qualcomm trades at an attractive valuation of 14.0x 2026 EPS with a 2.1% dividend yield.”
QUALCOMM Incorporated (NASDAQ:QCOM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 78 hedge fund portfolios held QUALCOMM Incorporated (NASDAQ:QCOM) at the end of the fourth quarter, up from 63 in the previous quarter. While we acknowledge the risk and potential of QUALCOMM Incorporated (NASDAQ:QCOM) 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 QUALCOMM Incorporated (NASDAQ:QCOM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered QUALCOMM Incorporated (NASDAQ:QCOM) and shared a list of most undervalued AI stocks to buy. In addition, please check out our hedge fund investor letters Q4 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.
