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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Carillon Eagle Small Cap Growth Fund 2025 Q1 Investor Letter | Buyside Digest

Back to Fund Profile (Carillon Eagle Small Cap Growth Fund)

Primary Source Intelligence • Q1 2025 Letter Analysis

Carillon Eagle Small Cap Growth Fund Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Carillon Eagle Small Cap Growth Fund. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

Annualized+1.41%

Positioning StanceConstructive

Market CapSmallCap

GeographyUS

Digest Analysis

Quick Take

"Top performers included biotech acquisitions while payment and vaccine stocks lagged on guidance disappointments."

Executive Summary

Small-cap growth stocks experienced a broad drawdown in Q1 2025, with the Russell 2000 Growth Index declining 11.12% as uncertainty surrounding U.S. trade policy and AI model efficiency weighed on investor sentiment. The fund's top performers included Intra-Cellular Therapies, which was acquired after expanding its Caplyta drug label, and Aris Water Solutions, benefiting from Permian Basin water infrastructure trends. Bottom performers included Flywire, which disappointed with 2025 guidance, and Vaxcyte, facing vaccine trial concerns. Despite headwinds from tariff policy uncertainty and questions about hyperscaler data center spending, the team remains constructive on stocks at current levels. They expect clarity around tariffs to act as a positive catalyst and believe the AI investment cycle is still in early innings. The healthcare sector, representing $5 trillion in U.S. expenditures, offers attractive valuations despite recent underperformance. Current market volatility is viewed as creating opportunities to add shares of higher-quality companies with durable growth prospects at attractive valuations, particularly in predictable businesses with steady margins and strong cash flows.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

72%

CautiousHigh

High Conviction (72%)

The manager demonstrates high conviction through detailed sector analysis, specific company commentary, and clear positioning statements about being constructive on current levels and expecting positive catalysts, despite acknowledging significant market challenges.

Growth Outlook

43%

BearishBullish

Neutral (43%)

The manager acknowledges significant market headwinds including trade policy uncertainty and AI model concerns that caused broad drawdowns, but maintains a constructive outlook on current levels and expects positive catalysts from policy clarity.

Risk Appetite

25%

DefensiveAggressive

Defensive (25%)

The fund is positioned to benefit from data center buildout and is looking to add quality companies at attractive valuations during market volatility, indicating a moderately bullish risk appetite despite current challenges.

Capital Deployment

40%

De-riskingDeploying

Net Neutral (40%)

The manager indicates readiness to add to quality companies at attractive valuations during market volatility and maintains positions in areas expected to benefit from secular trends, suggesting moderate deployment appetite.

Forward Guidance

35%

CautiousExpansionary

Cautious (35%)

The manager explicitly states being constructive on stocks at current levels, expects positive catalysts from tariff clarity, and views market volatility as creating opportunities to add quality companies, showing optimistic forward guidance.

Language Signal

10%

BearishBullish

Bearish (10%)

Language includes both risk-focused terms like uncertainty, headwinds, and drawdown, balanced with opportunity-focused terms like constructive, attractive valuations, and positive catalysts, resulting in slightly positive net sentiment.

Perceived Risk

65%

Low RiskElevated

Elevated Risk (65%)

The manager identifies multiple significant risks including trade policy uncertainty, global trade war potential, AI model efficiency concerns, and policy uncertainty at record high levels, indicating moderate to high perceived risk.

Opportunity Density

60%

ScarceAbundant

Selective (60%)

The manager sees selective opportunities in healthcare at attractive valuations, data center infrastructure, and quality companies during market volatility, but acknowledges challenging environment in cyclical areas, indicating moderate opportunity density.

Time Horizon

75%

Short-TermLong-Term

Decade+ (75%)

The manager focuses on secular themes like AI investment cycle being in early innings, healthcare sector long-term growth drivers, and durable growth prospects, indicating a patient, multi-year investment approach.