Cullen Capital Management, LLC, of Schafer Cullen Capital Management, Inc. (SCCM), operating under the name, published a fourth quarter investor letter “SCCM Enhanced Equity Income Fund.” A copy of the letter can be downloaded here. In the fourth quarter, the US stock market continued to fall, fueled largely by enthusiasm for artificial intelligence. The leveraged income strategy returned 2.0% (net) for the fourth quarter and 7.5% (net) for the year, compared to 6.5% and 8.9% for its primary benchmark, the S&P 500 Buy/Write Index, and 1.4% and 8.7% for its second benchmark, YDRsBD. ETF (JNK), respectively. The overall return of the strategy has been affected by investors’ disregard for high dividend and low volatility factors, as well as an equity market that has failed to expand across sectors. The strategy predicts a positive economic outlook for 2026, driven by Federal Reserve interest rate cuts, tax cuts, capital expenditure bonus depreciation (OBBBA), and potentially lower tariffs, all supporting growth. In addition, please see the top five retention strategies to identify the best of these in 2025.
In its fourth quarter 2025 investor letter, SCCM Enhanced Equity Income Fund highlighted stocks like Norfolk Southern Corporation (NYSE: NSC ). Norfolk Southern Corporation (NYSE: NSC ) is a transportation company specializing in the rail transportation of raw materials, intermediate products, and finished goods. On February 27, 2026, Norfolk Southern Corporation (NYSE: NSC ) stock closed at $314.74 per share. Norfolk Southern Corporation (NYSE:NSC)’s one-month return was 7.97%, and its shares have moved 28.39% over the past 52 weeks. Norfolk Southern Corporation (NYSE:NSC) has a market capitalization of $70.682 billion.
SCCM Advanced Equity Income Fund said the following about Norfolk Southern Corporation (NYSE:NSC) in its 4th quarter 2025 investor letter:
“Norfolk Southern Corporation (NYSE: NSC ) sold during the quarter. Norfolk Southern’s shares were bought into the strategy in May 2025 and have therefore been held for less than a year. However, in July, Union Pacific announced the acquisition of Norfolk Weld and the deal is expected to close in early 2027. Norfolk Southern’s shares have appreciated significantly since our purchase date, helped by the bid from Union Pacific, but driven by strong trading revenues as well as good operating ratios. At 22x earnings and a dividend yield that is now less than 2%, we decided to sell shares and buy shares of Union Pacific, which trades at a low P/E and high dividend yield.
