Should You Consider Selling Ecovyst (ECVT)?

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 Ecovyst Inc. (NYSE:ECVT). Ecovyst Inc. (NYSE:ECVT) provides specialty catalysts and services. The one-month return of Ecovyst Inc. (NYSE:ECVT) was 10.00%, and its shares gained 14.84% of their value over the last 52 weeks. On November 26, 2025, Ecovyst Inc. (NYSE:ECVT) stock closed at $9.13 per share, with a market capitalization of $1.045 billion.

SCCM Small Cap Value Equity Strategy stated the following regarding Ecovyst Inc. (NYSE:ECVT) in its third quarter 2025 investor letter:

“Ecovyst Inc. (NYSE:ECVT) was sold during the quarter as end-market demand across catalysts and silicas softened, leading to reduced pricing power and lower utilization rates. Slower-than-anticipated recovery in industrial activity and limited operating leverage tempered confidence in earnings growth.”

Ecovyst Inc. (NYSE:ECVT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Ecovyst Inc. (NYSE:ECVT) at the end of the second quarter, which was 23 in the previous quarter. While we acknowledge the risk and potential of Ecovyst Inc. (NYSE:ECVT) 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 Ecovyst Inc. (NYSE:ECVT) 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.