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 a 2025 Q4 investor letter, SCCM Enhanced Equity Income Fund highlighted stocks like Union Pacific Corporation (NYSE: UNP ). Union Pacific Corporation (NYSE: UNP ) is a railroad holding company that operates through its subsidiary Union Pacific Railroad Company. On February 27, 2026, Union Pacific Corporation (NYSE: UNP ) stock closed at $264.98 per share. Union Pacific Corporation (NYSE:UNP)’s one-month return was 12.65%, and its dividend yielded 7.80% over the past 52 weeks. Union Pacific Corporation (NYSE:UNP) has a market capitalization of $157.237 billion.
SCCM Enhanced Equity Income Fund made the following comments about Union Pacific Corporation (NYSE: UNP ) in its fourth quarter 2025 investor letter:
“Union Pacific Corporation (NYSE:UNP) is North America’s largest Class I railroad, operating a premier network in the western two-thirds of the United States connecting key ports, industrial centers, and population centers. The company benefits from a structurally advantageous network with long haul lengths, a rich carrier mix, and strong exposure to intermodal, industrial, and agricultural end markets, supporting sustained pricing power and margin potential. A key catalyst is the growing prospect and growing investor focus on the proposed transcontinental merger with Norfolk Southern, which offers a clear path to meaningful revenue synergies, cost efficiencies, and an accelerated revenue growth profile. Even on a standalone basis, Union Pacific is positioned to improve operating ratios driven by labor productivity gains, network efficiency initiatives, and contract restructuring. Management’s executive track record and strong free cash flow generation provide the flexibility to return capital while continuing to invest in service and reliability. As integration clarity improves, the market is likely to re-rate the shares to reflect the long-term growth opportunity and enhanced earnings power. Overall, Union Pacific combines high-quality assets, visible operating momentum, and attractive strategic options that support an attractive investment outlook. The stock trades at 18x forward earnings and offers a 2.4% dividend yield.”
