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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Carillon Eagle Growth & Income Fund 2023 Q4 Investor Letter | Buyside Digest

Back to Fund Profile (Carillon Eagle Growth & Income Fund)

Primary Source Intelligence • Q4 2023 Letter Analysis

Carillon Eagle Growth & Income Fund Quarterly Analysis

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

Fund Returns

QTD+11.7%

Positioning StanceConstructive

Market CapLarge Cap

GeographyUS

Digest Analysis

Quick Take

"The fund benefited from the Q4 rally driven by Fed rate cut expectations, with AI beneficiaries Broadcom and Microsoft leading gains alongside financials."

Executive Summary

The Carillon Eagle Growth & Income Fund delivered strong performance in Q4 2023 as markets rallied on expectations of Fed rate cuts. The S&P 500 gained 11.7% in the quarter and 26.3% for the year. Top contributors included Broadcom, which benefited from its VMware acquisition and emerging AI revenue opportunities, Microsoft with strong Azure cloud growth driven by AI, and financial stocks like BlackRock, PNC, and JPMorgan that rallied on declining recession fears. The fund sold underperforming Genuine Parts due to competitive pressures and slowing growth. Looking ahead, the managers see a potential regime change in market leadership favoring small-cap, dividend-oriented, and cyclical stocks after years of large-cap tech dominance. They remain committed to their dividend growth strategy, seeking companies that consistently pay and increase dividends while generating strong free cash flows. Key risks include persistent labor market tightness that could prevent the Fed from achieving its 2% inflation target and disrupt rate cut expectations.

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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

62%

CautiousHigh

Moderate (62%)

The fund demonstrates moderate conviction through specific position commentary on 10 named holdings with clear rationales for performance. They made a decisive sell decision on Genuine Parts with explicit reasoning. However, the 41-position portfolio and balanced commentary prevent a higher score.

Growth Outlook

65%

BearishBullish

Bullish (65%)

The managers express constructive optimism about markets, describing a 'soft landing' scenario and potential regime change favoring previously underperforming sectors. They see opportunities in dividend-paying stocks and expect continued market broadening, though they acknowledge some inflation risks.

Risk Appetite

40%

DefensiveAggressive

Defensive (40%)

The fund maintains a balanced approach with selective positioning. They sold one underperforming position (Genuine Parts) and are reinvesting in higher-conviction names, but there's no indication of aggressive risk-taking or major portfolio changes.

Capital Deployment

15%

De-riskingDeploying

De-risking (15%)

Limited deployment activity is evident. The fund sold Genuine Parts and is reinvesting proceeds in a higher-conviction stock, representing rotation rather than net new deployment. No cash level changes or significant position sizing adjustments are mentioned.

Forward Guidance

50%

CautiousExpansionary

Neutral (50%)

The managers plan to continue their dividend growth strategy and remain diligent in seeking high-quality businesses. They express commitment to their approach but don't indicate aggressive deployment or major strategic shifts.

Language Signal

55%

BearishBullish

Balanced (55%)

Language is moderately positive with terms like 'strong performance,' 'broadening market,' and 'rich opportunity set,' balanced against risk discussions around labor tightness and inflation concerns. Overall tone is constructive but measured.

Perceived Risk

45%

Low RiskElevated

Moderate Risk (45%)

Moderate risk awareness is expressed around labor market tightness potentially disrupting Fed policy and inflation targets. However, risks are discussed as manageable concerns rather than systemic threats, and the overall tone suggests confidence in the soft landing scenario.

Opportunity Density

65%

ScarceAbundant

Abundant (65%)

The managers see selective opportunities, particularly in dividend-paying stocks that may benefit from a regime change in market leadership. They describe continuing to seek excellent ideas and expect their dividend growth strategy to serve clients well, suggesting a reasonably rich opportunity set.

Time Horizon

70%

Short-TermLong-Term

Decade+ (70%)

The fund emphasizes long-term dividend growth and compounding of income to serve clients well in the future. They focus on consistent dividend payers and businesses that generate strong free cash flows over time, indicating a multi-year investment horizon.