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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 2024 Q1 Investor Letter | Buyside Digest

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

Primary Source Intelligence • Q1 2024 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

Digest Analysis

Quick Take

"Mid-cap growth fund benefited from AI infrastructure themes and cybersecurity demand in Q1. Key winners included Celsius, CrowdStrike, and Vertiv, while the team trimmed underperformers."

Executive Summary

The Carillon Eagle Mid Cap Growth Fund delivered solid performance in Q1 2024, benefiting from broad-based sector gains led by utilities and financials. The fund's core thesis centers on companies positioned for secular growth themes including AI-driven data center expansion, cybersecurity demand, and healthcare innovation. Top contributors included Celsius, which exceeded expectations with strong market share gains in energy drinks, CrowdStrike, which benefited from elevated cyber threats and AI-driven attack sophistication, and Vertiv, positioned for data center infrastructure spending acceleration. The team sold underperforming positions including MarketAxess, SBA Communications, and Planet Fitness due to various headwinds. Looking forward, the managers maintain a constructive outlook supported by resilient economic growth, moderating inflation, and expected Fed rate cuts. However, they remain vigilant about momentum-driven market risks and are actively monitoring the sustainability of the AI investment cycle. The portfolio emphasizes companies with strong secular growth prospects that can outperform across economic cycles while managing exposure to high-momentum names.

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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 concentrated exposure to named themes like AI, data centers, and cybersecurity. Managers provide detailed thesis explanations for top holdings and make decisive selling decisions on underperformers. However, the 88-position portfolio and hedged language around market risks prevent a higher score.

Growth Outlook

65%

BearishBullish

Bullish (65%)

The managers express a constructive outlook citing resilient economic growth, moderating inflation, and supportive Fed policy. They note the market has broadened beyond the Magnificent Seven and expect continued rally with Fed staying in limbo. However, they acknowledge risks around presidential election uncertainty and potential rate backup.

Risk Appetite

45%

DefensiveAggressive

Balanced (45%)

The fund maintains selective positioning with 88 holdings, actively managing momentum exposure and trimming underperformers. While they sold three positions due to headwinds, they remain invested in secular growth themes. The positioning reflects moderate risk appetite with active risk management rather than aggressive deployment.

Capital Deployment

15%

De-riskingDeploying

De-risking (15%)

The letter describes selling three positions (MarketAxess, SBA Communications, Planet Fitness) while maintaining focus on existing themes. No mention of cash level changes or significant new position additions. This represents modest rotation activity rather than net deployment or de-risking.

Forward Guidance

55%

CautiousExpansionary

Neutral (55%)

The team indicates continued focus on secular growth companies and monitoring of AI application adoption. They express intention to remain focused on companies that can outperform across cycles while managing momentum risks. The guidance is constructive but measured, with emphasis on selectivity rather than aggressive deployment.

Language Signal

60%

BearishBullish

Balanced (60%)

Language is predominantly positive with terms like constructive outlook, strong gains, solid performance, and attractive opportunities. However, this is balanced with risk language including vulnerable, consolidate gains, and momentum-driven risks. The net balance tilts positive but acknowledges meaningful risks.

Perceived Risk

55%

Low RiskElevated

Moderate Risk (55%)

Managers identify several specific risks including momentum-driven market risks, potential industrial stock consolidation due to election uncertainty and rate backup risks, vulnerability of cyclical sectors to inflation rekindling, and AI investment cycle sustainability concerns. Risks are named and discussed but not characterized as systemic threats.

Opportunity Density

65%

ScarceAbundant

Abundant (65%)

The team sees opportunities across multiple secular themes including AI infrastructure, cybersecurity, healthcare innovation, and various consumer segments. They identify specific areas of excitement in financials, consumer discretionary, and technology sectors. The tone suggests a reasonably rich opportunity set requiring selectivity.

Time Horizon

70%

Short-TermLong-Term

Decade+ (70%)

The fund focuses on secular growth themes and companies that can outperform over the course of an economic cycle. They discuss multi-year trends like AI investment cycle sustainability and expect Unity Software transition to be complete by late 2024. The emphasis on secular themes and cycle-spanning performance indicates a multi-year investment horizon.