Cullen Capital Management, LLC, doing business as Schafer Cullen Capital Management, Inc. (SCCM), has released its third quarter investor letter “SCCM Enhanced Equity Income Fund.” A copy of the letter can be downloaded here. US stocks continued to rise in the third quarter, with the S&P 500 returning 8.1% while the Russell 1000 Value rose 5.3%. The composite returned 0.9% (net) for the quarter, compared with a 3.5% return for the S&P 500 Buy-Write Index (BXM) and a 2.5% return for the SPDR Bloomberg High Yield Bond ETF (JNK). Additionally, you can check out the fund’s top five holdings to determine your best picks for 2025.
In its Q3 2025 investor letter, SCCM Enhanced Equity Income Fund highlighted stocks like Baxter International Inc. (NYSE:BAX). Baxter International Inc. (NYSE:BAX) is a healthcare company that offers a portfolio of healthcare products. Baxter International Inc. (NYSE:BAX)’s monthly performance was 2.67% and its shares gained 41.89% in the past 52 weeks. On December 4, 2025, shares of Baxter International Inc. (NYSE:BAX) closed at $18.48 per share, with a market capitalization of $9.5 billion.
SCCM Enhanced Equity Income Fund stated the following regarding Baxter International Inc. (NYSE:BAX) in its Q3 2025 investor letter:
“Our position in Baxter International Inc. (NYSE:BAX) was sold in the quarter. While Baxter has historically provided strong returns to shareholders, its stock has lagged significantly since the onset of the Covid pandemic in 2020. Although management had a plan to recover from the challenges of the Covid era and improve its profitability, including the sale of its underperforming kidney care business to private equity, pressure on margins continued in 2024. Management cut the dividend by 40% in early 2025. to improve its financial strength and announced a CEO change in July. However, Baxter faced continued pricing pressure from hospital group purchasing organizations (GPOs) in 2025, and faced operational challenges, including safety incidents with its Novum IQ high-volume pump that forced management to cut full-year profit outlook.”
Baxter International Inc. (NYSE:BAX) isn’t on our list of the 30 most popular stocks among hedge funds. According to our database, 38 hedge fund portfolios held Baxter International Inc. (NYSE:BAX) at the end of the third quarter, up from 31 in the previous quarter. While we recognize the potential of Baxter International Inc. (NYSE:BAX) as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.