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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Carillon Eagle Mid Cap Growth Fund 2023 Q4 Investor Letter | Buyside Digest

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

Primary Source Intelligence • Q4 2023 Letter Analysis

Carillon Eagle Mid Cap Growth Fund Quarterly Analysis

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

Fund Returns

Positioning StanceConstructive

Market CapMid Cap

GeographyUS

Digest Analysis

Quick Take

"Mid-cap growth fund focused on companies generating strong free cash flow through cycles, with emphasis on AI, cybersecurity, and healthcare themes. Top holdings include CrowdStrike and Dexcom, both benefiting from secular tailwinds."

Executive Summary

The Carillon Eagle Mid Cap Growth Fund delivered strong performance in Q4 2023 as mid-cap growth stocks rallied 14.55%. The fund's core thesis centers on investing in companies that generate strong free cash flow margins through market cycles, with particular focus on technology and healthcare companies benefiting from secular growth themes. Top contributors included CrowdStrike Holdings, which benefited from elevated cyber threats and AI-driven demand for security software, and Dexcom, where concerns about GLP-1 drug impact proved unfounded as patients using these medications actually increased glucose monitor usage. The portfolio also includes exposure to semiconductor companies like Monolithic Power Systems and Synopsys, which are benefiting from AI applications in data centers. While the managers share market optimism for 2024 following the Fed's dovish pivot and cooling inflation, they maintain vigilant risk management given potential lagging effects from monetary tightening and election year uncertainties. The fund continues to focus on companies with differentiated products in large addressable markets that can compound through various market cycles.

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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

68%

CautiousHigh

Moderate (68%)

The fund demonstrates moderate-high conviction with 86 named holdings and detailed thesis explanations for individual positions. The managers provide specific commentary on 10 individual stocks with clear rationales for holding or selling decisions. However, the diversified nature of the portfolio (86 holdings) and some hedged language around market outlook prevents a higher conviction score.

Growth Outlook

60%

BearishBullish

Neutral (60%)

The managers express optimism for 2024 following the Fed's dovish pivot and cooling inflation data, describing a 'nice setup' for technology investment and embracing the soft landing narrative. However, they acknowledge risks and maintain vigilant risk management, preventing a more bullish score.

Risk Appetite

40%

DefensiveAggressive

Defensive (40%)

The fund maintains its focus on quality companies with strong free cash flow margins and continues vigilant risk management. While not explicitly defensive, the positioning emphasizes stability and risk awareness rather than aggressive risk-taking, suggesting a moderately cautious stance.

Capital Deployment

0%

De-riskingDeploying

De-risking (0%)

No specific cash level changes or deployment activity is mentioned in the letter. The managers describe maintaining their existing focus and strategy without indicating net deployment or de-risking activity, suggesting neutral capital allocation.

Forward Guidance

50%

CautiousExpansionary

Neutral (50%)

The managers share market optimism for 2024 but emphasize maintaining heightened awareness of risks. They describe continuing to focus on their existing strategy rather than indicating clear directional deployment bias, suggesting a balanced monitoring approach.

Language Signal

45%

BearishBullish

Balanced (45%)

The letter contains balanced language with positive terms like 'optimism,' 'attractive opportunities,' and 'nice setup' offset by risk-focused language including 'vigilant,' 'underappreciated risks,' and 'contentious political backdrop.' The net balance is slightly more cautious than bullish.

Perceived Risk

55%

Low RiskElevated

Moderate Risk (55%)

The managers identify several specific risks including lagging effects from monetary tightening, election year uncertainty, potential Treasury issuance impact on rates, and bond market volatility. While they maintain optimism, the detailed discussion of multiple risk factors indicates moderate risk perception.

Opportunity Density

65%

ScarceAbundant

Abundant (65%)

The managers describe 'attractive opportunities' in multiple sectors including technology, financials, healthcare, and consumer areas. They identify specific themes and sectors where they see compelling investments, suggesting a moderately rich opportunity set despite some selectivity.

Time Horizon

70%

Short-TermLong-Term

Decade+ (70%)

The fund focuses on companies that can 'generate strong free cash flow margins through market cycles' and discusses secular themes like AI and cybersecurity that will play out over multiple years. The emphasis on cycle-resilient businesses and long-term secular trends suggests a multi-year investment horizon.