SCCM Enhanced Equity Income Fund called away stake in Philip Morris due to high P/E valuation

Cullen Capital Management, LLC, and Schafer Cullen Capital Management, Inc. (SCCM) released their SCCM Enhanced Equity Income Fund first-quarter investor letter. US stocks had mixed results, with the S&P 500 down 4.3% and the Russell 1000 Value up 2.1%. SCCM’s composite outperformed benchmarks, returning 5.8% compared to -3.1% by the CBOE Buy/Write Index and 0.8% by the SPDR Bloomberg High Yield Bond ETF.

In Q1 2025, SCCM Enhanced Equity Income Fund highlighted Philip Morris International Inc. (NYSE: PM), a tobacco company focused on a smoke-free future. PM had a one-month return of -1.73% and shares up 75.04% in the past 52 weeks. On July 1, 2025, PM stock closed at $177.53 per share with a $276.329 billion market cap.

SCCM Enhanced Equity Income Fund noted PM’s performance in Q1 2025, stating the stock had strong returns in 2024 and 2025, with a P/E ratio at the higher end of historical range. Despite favorable fundamentals, SCCM’s position in PM was called away due to high P/E valuation. PM’s growth was attributed to a smoke-free future strategy.

Philip Morris International Inc. (NYSE: PM) outperformed in 2025 with a focus on smoke-free growth. PM is not among the 30 most popular stocks among hedge funds, but 104 hedge fund portfolios held PM at the end of Q1 2025. PM delivered double-digit organic net revenue growth of 10.2% in Q1 2025, reaching $9.3 billion in total. Hedge funds are shifting focus to AI stocks for higher returns.

Read more at Yahoo Finance: SCCM Enhanced Equity Income Called Away Its Stake in Philip Morris (PM)