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 Morgan Stanley (NYSE:MS). Morgan Stanley (NYSE:MS) is a financial holding company that offers various financial products and services. The one-month return of Morgan Stanley (NYSE:MS) was 2.64%, and its shares gained 23.24% of their value over the last 52 weeks. On November 19, 2025, Morgan Stanley (NYSE:MS) stock closed at $162.29 per share, with a market capitalization of $259.069 billion.
SCCM Value Equity Strategy stated the following regarding Morgan Stanley (NYSE:MS) in its third quarter 2025 investor letter:
“Our strong stock selection within Financials made the sector the largest contributor to relative performance for the quarter. Morgan Stanley (NYSE:MS) (+13.6%) reported record Capital Markets revenue in the second quarter, driven by equity capital markets activity and equities trading volumes. The company’s Wealth Management division reported 14% y/y revenue growth, as fund flows grew 7% and market share was strong. Management was able to control expenses well despite the strong revenue growth, as a 70.7% efficiency ratio was 130 bps below consensus estimates.”
Morgan Stanley (NYSE:MS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 67 hedge fund portfolios held Morgan Stanley (NYSE:MS) at the end of the second quarter, compared to 68 in the previous quarter. In the third quarter of 2025, Morgan Stanley (NYSE:MS) reported revenues of $18.2 billion and EPS of $2.80. While we acknowledge the potential of Morgan Stanley (NYSE:MS) 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.
