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 BorgWarner Inc. (NYSE:BWA). BorgWarner Inc. (NYSE:BWA) is a leading provider of solutions for combustion, hybrid, and electric vehicles. The one-month return of BorgWarner Inc. (NYSE:BWA) was -1.37%, and its shares gained 27.70% of their value over the last 52 weeks. On November 19, 2025, BorgWarner Inc. (NYSE:BWA) stock closed at $43.11 per share, with a market capitalization of $9.329 billion.
SCCM Value Equity Strategy stated the following regarding BorgWarner Inc. (NYSE:BWA) in its third quarter 2025 investor letter:
“BorgWarner Inc. (NYSE:BWA) (+31.8%) delivered impressive second quarter results that exceeded expectations and led management to raise full-year guidance. The company announced new turbocharger and high-voltage coolant heater programs in Europe and North America, including its first hybrid platform award, and expanded its electrification footprint in China with contracts for its electric cross-differential system and dual inverter. BorgWarner also raised its quarterly dividend by 55%, reflecting confidence in cash generation and shareholder returns. Continued momentum in electrification and disciplined execution supported the stock’s robust performance.”
BorgWarner Inc. (NYSE:BWA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 43 hedge fund portfolios held BorgWarner Inc. (NYSE:BWA) at the end of the second quarter, up from 34 in the previous quarter. In the third quarter of 2025, BorgWarner Inc. (NYSE:BWA) reported approximately $3.6 billion in sales, which was up 2% year-over-year, excluding foreign exchange. While we acknowledge the potential of BorgWarner Inc. (NYSE:BWA) 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.