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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 Q3 Investor Letter | Buyside Digest

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

Primary Source Intelligence • Q3 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 delivered mixed Q3 results with energy and cybersecurity winners offset by healthcare concerns over GLP-1 drugs. Managers remain constructive on growth stocks with secular drivers despite rising real rates creating economic uncertainty."

Executive Summary

The Carillon Eagle Mid Cap Growth Fund focuses on high-quality mid-cap growth companies positioned to benefit from secular trends and generate robust free cash flows. In Q3 2023, the fund's top performers included energy services companies Baker Hughes and Halliburton, which benefited from rising oil prices and international upstream investment cycles, along with cybersecurity leader CrowdStrike and beverage company Celsius. The fund faced headwinds from healthcare holdings like Dexcom and Penumbra due to concerns over GLP-1 drugs potentially reducing demand for medical devices. Looking forward, the managers believe higher real interest rates create risks for cyclical areas but see opportunities in companies benefiting from artificial intelligence, data center spending, and energy transition themes. They maintain conviction in growth stocks with reasonable valuations, secular growth drivers, and strong balance sheets, expecting these companies to outperform as economic growth potentially slows. The fund continues to find attractive opportunities across technology, energy, and selective consumer areas while remaining patient on healthcare valuations.

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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 through concentrated holdings in 88 positions with detailed thesis explanations for top and bottom performers. Managers provide specific catalysts and sizing language for key positions like Baker Hughes (2.40% weight) and express clear views on secular themes, though some hedging language around economic uncertainty prevents a higher score.

Growth Outlook

38%

BearishBullish

Neutral (38%)

The managers express caution about the economic outlook for 2024 becoming murkier due to sustained monetary tightness and Fed policy mistake risks. They note higher real interest rates impacting investment spending and consumer vulnerability, but balance this with constructive views on growth stock opportunities.

Risk Appetite

15%

DefensiveAggressive

Defensive (15%)

The fund maintains selective long positioning in growth stocks while acknowledging sector-specific headwinds in healthcare. They continue to find attractive opportunities across technology, energy, and consumer areas, suggesting a mildly positive risk appetite despite market challenges.

Capital Deployment

5%

De-riskingDeploying

De-risking (5%)

The letter describes ongoing selective positioning and finding attractive opportunities but provides no specific cash level changes or major position additions/reductions. The activity appears to be primarily rotation and monitoring rather than net deployment or de-risking.

Forward Guidance

25%

CautiousExpansionary

Cautious (25%)

The managers indicate continued selective deployment in companies with secular growth drivers and strong balance sheets. They express optimism about finding opportunities in AI, energy transition, and data center themes, suggesting a mild bias toward adding positions in quality names.

Language Signal

10%

BearishBullish

Bearish (10%)

The letter contains balanced language with terms like 'attractive opportunities,' 'well-positioned,' and 'constructive' offset by risk language including 'headwinds,' 'vulnerable consumer,' and 'murkier outlook.' The net balance is slightly positive but largely neutral.

Perceived Risk

72%

Low RiskElevated

Elevated Risk (72%)

The managers identify multiple significant risks including Fed policy mistakes, higher real interest rates impacting investment spending, healthcare sector headwinds, and consumer vulnerability. They discuss specific threats like GLP-1 drug impact on medical devices and provide detailed risk analysis throughout the letter.

Opportunity Density

65%

ScarceAbundant

Abundant (65%)

The managers indicate selective opportunities across multiple sectors including technology (AI beneficiaries), energy (transition themes), and consumer areas. They note finding attractive opportunities in companies with secular growth drivers, though emphasize the need for selectivity given market conditions.

Time Horizon

70%

Short-TermLong-Term

Decade+ (70%)

The fund emphasizes long-term secular trends, multi-year investment cycles (international upstream, energy transition), and companies positioned for long-term outperformance. While they discuss some near-term catalysts, the overall focus is on 2-5 year thesis realization for growth companies with durable competitive advantages.