SCCM Value Equity Fund Sold Kenvue (KVUE) Due to Less Compelling Valuation

Core Insights - Cullen Capital Management's "SCCM Value Equity Strategy" reported a gross return of 6.9% for 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 gross return of 13.0%, compared to Russell 1000 Value's +11.7% and S&P 500's +14.8% [1] Company Analysis: Kenvue Inc. (NYSE:KVUE) - Kenvue Inc. experienced a one-month return of 6.43% but has lost 33.33% of its value over the past 52 weeks, with a market capitalization of $30.82 billion as of November 19, 2025 [2] - The company was sold from the SCCM Value Equity Strategy during Q3 2025 due to challenges such as pressures on US consumer spending, delayed seasonal demand, and competition from challenger brands [3] - Kenvue's stock is currently valued at 19x 2025 EPS, which is considered less compelling compared to its initial portfolio addition in 2023 [3] Market Position - Kenvue Inc. is not among the 30 most popular stocks among hedge funds, although it saw an increase in hedge fund holdings from 52 to 72 in the last quarter [4] - Despite its potential, Kenvue is viewed as less attractive compared to certain AI stocks that are believed to offer greater upside potential and lower downside risk [4]