Here’s Why SCCM Value Equity Fund Sold Sempra (SRE) in Q3

Group 1 - Cullen Capital Management's "SCCM Value Equity Strategy" reported a 6.9% return (gross of fees) and 6.8% (net of fees) in Q3 2025, outperforming the Russell 1000 Value's 5.3% and underperforming the S&P 500's 8.1% during the same period [1] - Year-to-date, the strategy achieved a 13.0% return (gross), compared to the Russell 1000 Value's +11.7% and the S&P 500's +14.8% [1] - The fund's top 5 holdings are highlighted as potential best picks for 2025 [1] Group 2 - Sempra (NYSE:SRE) is an energy infrastructure company with a market capitalization of $59.407 billion, closing at $91.02 per share on November 19, 2025 [2] - Sempra's one-month return was -0.86%, and it lost 3.88% of its value over the last 52 weeks [2] - Sempra was sold from the SCCM Value Equity Strategy during the quarter due to challenges in the California utility market, which outweighed the positives from Texas [3] - The company's P/E multiple increased to 20x, making it less compelling compared to the 16x P/E multiple at the time of purchase in 2024 [3] Group 3 - Sempra is not among the 30 Most Popular Stocks Among Hedge Funds, with 47 hedge fund portfolios holding it at the end of Q2 2025, down from 48 in the previous quarter [4] - The potential of Sempra as an investment is acknowledged, but certain AI stocks are considered to offer greater upside potential and less downside risk [4]