SCCM Enhanced Equity Income Fund Sold Conagra (CAG) in Q3

Group 1: Market Performance - US equities experienced growth in Q3 2025, with the S&P 500 returning 8.1% and the Russell 1000 Value up 5.3% [1] - The SCCM Enhanced Equity Income Fund had a composite return of 0.9% (net) for the quarter, compared to 3.5% for the S&P 500 Buy-Write Index and 2.5% for the SPDR Bloomberg High Yield Bond ETF [1] Group 2: Conagra Brands, Inc. (CAG) Overview - Conagra Brands, Inc. is a consumer-packaged goods food company, with a one-month return of -1.11% and a 52-week loss of 37.78% [2] - As of December 04, 2025, Conagra's stock closed at $16.95 per share, with a market capitalization of $8.108 billion [2] Group 3: Investment Position and Challenges - The SCCM Enhanced Equity Income Fund sold its position in Conagra Brands during the quarter due to ongoing industry challenges affecting traditional brands [3] - The frozen food category, which constitutes approximately one-third of Conagra's sales, is facing intense competition and declining volumes following inflationary price increases [3] - Conagra's stock valuation is considered attractive at 11x forward earnings, but the food industry has de-rated over recent years, and the current dividend payout ratio is at 80%, exceeding the company's target of 50-55%, which poses a risk to the dividend [3] Group 4: Hedge Fund Interest - Conagra Brands is not among the 30 most popular stocks among hedge funds, with 34 hedge fund portfolios holding the stock at the end of Q3, down from 38 in the previous quarter [4] - While there is potential for investment in Conagra, certain AI stocks are viewed as offering greater upside potential and less downside risk [4]