Carillon Tower Advisers, an investment management company, released its first-quarter 2026 investor letter for the “Carillon Eagle Mid Cap Growth Fund”. A copy of the letter can be downloaded here. Mid-cap stocks delivered mixed results in the first quarter, and value notably outperformed growth. The Russell Midcap® Growth Index (down 6.35%) lagged behind the Russell Midcap® Value Index (up 3.69%). The notable contributing sector was energy, returning 45.23%, outperforming other sectors in the growth index and its value peers. The first quarter was volatile for equity markets, but investors were optimistic. However, military strikes on Iran caused energy prices to rise, creating uncertainty among investors. Despite this turbulence, with improved valuations and potential positive developments from de-escalation in the Middle East, the firm is optimistic that the current market fluctuations will be short-lived. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Carillon Eagle Mid Cap Growth Fund highlighted Axon Enterprise, Inc. (NASDAQ:AXON). Axon Enterprise, Inc. (NASDAQ:AXON) is a public-safety technology company focused on developing connected law enforcement products and services, including taser, body camera, drone, and other hardware solutions. On April 20, 2026, Axon Enterprise, Inc. (NASDAQ:AXON) closed at $403.75 per share. One-month return of Axon Enterprise, Inc. (NASDAQ:AXON) was -11.57%, and its shares lost 27.32% over the past 52 weeks. Axon Enterprise, Inc. (NASDAQ:AXON) has a market capitalization of $32.53 billion.
Carillon Eagle Mid Cap Growth Fund stated the following regarding Axon Enterprise, Inc. (NASDAQ:AXON) in its Q1 2026 investor letter:
“Axon Enterprise, Inc. (NASDAQ:AXON), a market leader in next-generation law enforcement technology, delivered a strong quarterly update that drove upward revisions to key growth metric expectations. Despite this positive fundamental performance, the stock lagged as the market severely compressed valuation multiples across software and related industries, particularly those perceived as vulnerable to rapid advancements in artificial intelligence. In Axon’s case, we believe this reaction is misplaced, as the company remains well positioned and has already demonstrated the ability to become a key adopter and implementer of AI, enhancing its product offerings while remaining mission-critical to customers’ daily operations.”
Axon Enterprise, Inc. (NASDAQ:AXON) is not on our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 68 hedge fund portfolios held Axon Enterprise, Inc. (NASDAQ:AXON) at the end of the fourth quarter, up from 61 in the previous quarter. In Q4 2025, Axon Enterprise, Inc.’s (NASDAQ:AXON) revenue grew 39% year-over-year to $797 million. While we acknowledge the risk and potential of Axon Enterprise, Inc. (NASDAQ:AXON) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Axon Enterprise, Inc. (NASDAQ:AXON) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Axon Enterprise, Inc. (NASDAQ:AXON) and shared Brown Advisory Mid-Cap Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
