Carillon Tower Advisers, an investment management company, released its fourth-quarter 2025 investor letter for the “Carillon Scout Mid Cap Fund”. A copy of the letter can be downloaded here. Major U.S. equity indices delivered positive returns in the fourth quarter, while the Russell Midcap® Index return lagged with nominal positive gains. Strong corporate earnings revisions and lower short-term interest rates supported U.S. market returns. Investors’ focus on an optimistic 2026, and consensus outperformed the market amid long-term government shutdowns. High sector return dispersion was observed in the Russell Midcap Index, with healthcare, materials, and IT leading. However, investors’ bias towards higher beta and more cyclical stocks led Communication services, real estate, and utilities to lag in the quarter. The fund expects the Midcap equities to trade higher in 2026, supported by broader market involvement, though this view aligns with consensus. U.S. market index earnings are projected to grow significantly in 2026 despite price-to-earnings ratios being higher than historical averages. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Carillon Scout Mid Cap Fund highlighted ATI Inc. (NYSE:ATI) as one of its leading contributors. ATI Inc. (NYSE:ATI) is a leading manufacturer of specialty materials and complex components, including titanium and titanium-based alloys, nickel- and cobalt-based alloys and superalloys, advanced powder alloys, and other specialty materials. On March 20, 2026, ATI Inc. (NYSE:ATI) stock closed at $141.80 per share. One-month return of ATI Inc. (NYSE:ATI) was -10.97%, and its shares gained 161.67% over the past 52 weeks. ATI Inc. (NYSE:ATI) has a market capitalization of $19.418 billion.
Carillon Scout Mid Cap Fund stated the following regarding ATI Inc. (NYSE:ATI) in its fourth quarter 2025 investor letter:
“ATI Inc. (NYSE:ATI) is a specialty materials company that makes high-performance metals and alloys. The company recently exited its commoditized metals business and increased its exposure to higher-margin nickel and titanium alloys. Sales to the aerospace industry now account for more than two-thirds of total revenue, up from less than half just four years ago. An increasing aerospace production outlook, new business awards from a major airplane manufacturer, improved execution, and a focus on more value-added engine and airframe parts has boosted investor interest. An opportunity in nuclear energy is also emerging. We believe ATI should trade more in line with other aerospace parts suppliers as the company proves it can produce more consistent revenue growth at higher margins.”
ATI Inc. (NYSE:ATI) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 62 hedge fund portfolios held ATI Inc. (NYSE:ATI) at the end of the fourth quarter, up from 58 in the previous quarter. ATI Inc.’s (NYSE:ATI) 2025 revenue increased 5% year-over-year, to $4.6 billion. While we acknowledge the risk and potential of ATI Inc. (NYSE:ATI) 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 ATI Inc. (NYSE:ATI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered ATI Inc. (NYSE:ATI) and shared a list of best 3D printing stocks to buy according to hedge funds. In Q4 2025, ATI Inc. (NYSE:ATI) contributed to Fidelity Growth Strategies Fund’s performance. In addition, please check out our hedge fund investor letters Q4 2025 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.
