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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 2026 Q2 Investor Letter | Buyside Digest

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

Primary Source Intelligence • Q2 2026 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 StanceNEUTRAL

Market CapSmallCap

GeographyUS

Digest Analysis

Quick Take

"Small-cap growth navigated Q1 volatility with data center infrastructure holdings driving outperformance as hyperscalers committed nearly $800 billion in AI capex. Energy spiked on Iran strikes but appears temporary."

Executive Summary

The Carillon Eagle Small Cap Growth Fund navigated a volatile first quarter marked by mixed small-cap performance, with the Russell 2000 Growth Index declining 2.82% while value stocks outperformed. The fund's top contributors included data center infrastructure beneficiaries Applied Optoelectronics, Modine Manufacturing, and Powell Industries, all capitalizing on hyperscaler capital expenditure plans approaching $800 billion. Energy holdings performed strongly as oil prices spiked above $100 following US strikes on Iran, though the fund expects this geopolitical tension to be short-lived given the administration's focus on gasoline prices. Detractors included Vital Farms facing temporary egg supply gluts and software names like AppFolio confronting AI displacement concerns. The portfolio maintains constructive positioning in cyclicals, particularly electrical equipment and defense, while increasing exposure to predictable healthcare distributors. Despite near-term uncertainty from energy shocks and regulatory changes, the fund sees reasonable valuations and multiple positive catalysts including manufacturing recovery, LNG infrastructure development, and robust healthcare M&A activity supporting the small-cap growth opportunity set.

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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 holds 108 positions, indicating meaningful diversification that inherently limits conviction scoring. However, the letter provides specific position-level commentary with clear theses for top holdings including Applied Optoelectronics, Modine Manufacturing, Powell Industries, Solstice Advanced Materials, and Archrock, with average weights ranging from 0.97% to 1.82%. Management articulates specific catalysts and growth drivers for these names. The detailed discussion of both winners and losers with explicit reasoning demonstrates moderate conviction in the portfolio construction. The absence of language about doubling positions or holding indefinitely, combined with the diversified structure, places this in the moderate conviction range rather than high conviction.

Growth Outlook

45%

BearishBullish

Neutral (45%)

The manager expresses cautious optimism, acknowledging significant volatility and uncertainty from geopolitical events (Iran strikes, oil above $100) but maintains that the US economy is on strong enough footing to withstand temporary shocks. The outlook describes valuations as now at more reasonable levels with potential for positive catalysts, and expects current turbulence to be short-lived. However, this is balanced against concerns about economic growth being questioned and multiple headwinds. The constructive tone is hedged with meaningful caveats about near-term uncertainty.

Risk Appetite

55%

DefensiveAggressive

Balanced (55%)

The fund maintains net long positioning with constructive exposure to cyclicals, data center infrastructure, energy, and defense. The letter describes being broadly constructive on cyclical areas and maintaining holdings despite volatility. However, positioning is selective rather than aggressive, with the fund monitoring certain areas closely (residential construction, aerospace aftermarket) and placing larger bets on defensive healthcare distributors. The 108-position portfolio suggests diversified rather than concentrated risk-taking. Overall tilted toward risk but with selective caution.

Capital Deployment

5%

De-riskingDeploying

De-risking (5%)

The letter describes selective activity including shifting preference toward OE-exposed aerospace companies and placing larger active bets on healthcare distributors, suggesting some rotation. However, there is no explicit discussion of cash level changes, and the language emphasizes maintaining positions and monitoring rather than aggressive deployment or de-risking. The fund continues to hold existing positions in data centers, energy, and defense while making selective adjustments. This represents modest rotation activity with no clear evidence of net cash deployment or withdrawal, scoring near neutral.

Forward Guidance

40%

CautiousExpansionary

Neutral (40%)

The fund is selectively adding in specific areas (healthcare distributors, OE-exposed aerospace) and maintaining positions in data center and energy infrastructure, but the language is measured rather than aggressive. Phrases like continues to monitor, watching for inflection points, and shifting preference suggest a watchful stance. The fund is not aggressively deploying into new positions but rather maintaining current exposures and making selective rotations. The tone is one of patience and selectivity rather than urgent deployment.

Language Signal

50%

BearishBullish

Balanced (50%)

The letter contains balanced directional language. Bullish terms include well positioned, strong performance, constructive, attractive valuations, robust, accelerating, optimistic, and positive catalysts. Bearish language includes uncertainty, volatility, concerns, risks, pressure, struggled, challenged, and underperformed. The discussion of multiple portfolio detractors and sector-specific headwinds balances the optimistic framing around data centers and energy. The net balance leans slightly positive but is notably hedged throughout.

Perceived Risk

68%

Low RiskElevated

Elevated Risk (68%)

The manager identifies multiple specific, named risks with meaningful discussion: oil prices above $100 from Iran strikes creating geopolitical uncertainty, energy price shocks acting as a consumer tax, AI displacement risk in software, regulatory uncertainty in healthcare with new agency leadership, interest rate concerns, credit stress in financials, and potential impacts on air travel from Middle East tensions. The letter devotes substantial space to discussing these risks across sectors, though it frames many as manageable or temporary. The depth and specificity of risk discussion, covering macro, sector, and company-specific concerns, indicates elevated perceived risk even as the manager maintains constructive positioning.

Opportunity Density

58%

ScarceAbundant

Selective (58%)

The manager sees selective opportunities in defined areas rather than a broad opportunity set. The letter identifies specific pockets of opportunity in data center infrastructure, energy at depressed valuations, defense spending, healthcare M&A targets, and uranium conversion services. However, the language emphasizes selectivity and monitoring, with phrases like selective opportunities, increasingly mindful, and continues to monitor closely. The fund is finding compelling ideas in multiple sectors but characterizes the environment as requiring careful selection rather than presenting abundant opportunities across the board. This represents a moderately selective opportunity environment.

Time Horizon

68%

Short-TermLong-Term

Multi-Year (68%)

The fund demonstrates a multi-year investment horizon with discussion of secular trends including AI infrastructure buildout, energy transition, LNG export capacity expansion, and defense spending cycles that will play out over several years. Language includes longer term positioning, sustained growth, durable growth profile, and multi-year targets. However, the letter also discusses near-term catalysts including quarterly earnings, acquisition closings in Q2, and upcoming midterm elections. The balance between secular multi-year themes and near-term event monitoring places this in the 2-4 year range typical of public equity small-cap growth strategies, rather than the permanent capital horizon of private equity or the urgent catalyst-driven approach of activists.