Overview
- SCCM’s Value Equity Strategy returned 6.9% gross (6.8% net) in Q3 2025 versus 5.3% for the Russell 1000 Value and 8.1% for the S&P 500, bringing YTD gross returns to 13.0%.
- The fund bought Becton, Dickinson (BDX), citing durable market share in syringes and three-segment breadth, with shares at roughly 12x earnings versus a ~19x 10‑year average.
- SCCM attributes BDX’s depressed multiple to near-term pressures including post‑pandemic inventory destocking, softer China demand, and reduced NIH-related research spending.
- Applied Materials (AMAT) was highlighted after better‑than‑expected fiscal Q3 results and continued AI-driven semiconductor capital spending exposure despite moderating China demand.
- Oracle (ORCL) rallied on a cloud services contract valued at about $30 billion annually that SCCM says should start generating revenue in fiscal 2028; recent data show hedge fund holders at 58 for BDX, 81 for AMAT, and 124 for ORCL, with BDX closing Nov. 18 at $192.33.