Cullen Capital Management, operating as Schafer Cullen Capital Management, has published its third-quarter investor letter for the SCCM Value Equity Strategy. During this quarter, the US equity market experienced a notable rally, with the S&P 500 recording an impressive 8.1% return and the Russell 1000 Value climbing 5.3%. The SCCM Value Equity Strategy achieved a return of 6.9% (gross) and 6.8% (net) for the quarter, outperforming the Russell 1000 Value index, which returned 5.3%, though falling slightly short of the S&P 500’s higher performance.
Year-to-date, the strategy is ahead with a gross return of 13.0%, outpacing the Russell 1000 Value’s 11.7% and trailing only slightly behind the S&P 500’s 14.8%. As part of their analysis, SCCM highlighted Oracle Corporation as a strong performer within their portfolio, noting its significant impact on their overall performance within the Information Technology sector.
Oracle Corporation reported a one-month return of -19.13%, but has had a robust annual performance, gaining 15.59% over the past year. As of November 18, 2025, Oracle’s stock closed at $220.49 per share, giving it a market capitalization of approximately $628.57 billion. The SCCM letter specifically called out Oracle’s remarkable 28.9% rise following the announcement of a transformative $30 billion annual cloud services contract, which is expected to nearly triple the revenue from its current cloud infrastructure business. The expectation is that this deal will not only enhance Oracle’s revenue significantly but also improve visibility into future growth as it is projected to start generating earnings in fiscal 2028.
Moreover, the anticipated expenditure on US data center buildouts, along with the surge in demand for memory chips, also positively influenced shares of Micron, which saw a noteworthy rise of 35.9% in the third quarter.
While Oracle has shown promise, SCCM indicates that it is not among the top 30 most popular stocks held by hedge funds, with 124 hedge fund portfolios holding Oracle by the end of the second quarter, an increase from 97 in the previous quarter. While Oracle is considered a viable investment, SCCM believes there may be AI stocks that present more significant upside potential and lower downside risk.
Overall, the growth in Oracle’s business and the strategic investments in technology highlight a broader optimistic trend within the technology sector, suggesting a path forward that could yield fruitful returns for investors.