Carillon Tower Advisers, an investment management company, released its first-quarter 2026 investor letter for the “Carillon Eagle Small Cap Growth Fund”. A copy of the letter can be downloaded here. Small-cap stocks delivered mixed results in the quarter as the market favored value stocks over growth. The Russell 2000 Growth Index fell 2.82% in the quarter, while the Russell 2000® Value Index increased 4.96%. The first quarter saw equity market volatility due to Iran strikes, boosting energy prices. The firm is optimistic that the turbulence in the market will be short-lived, with improved valuations and potential positive developments from de-escalation in the Middle East. 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 Small Cap Growth Fund highlighted Credo Technology Group Holding Ltd (NASDAQ:CRDO). Credo Technology Group Holding Ltd (NASDAQ:CRDO) is a US-based semiconductor company that provides high-speed connectivity solutions for optical and electrical Ethernet and PCIe applications. On June 23, 2026, Credo Technology Group Holding Ltd (NASDAQ:CRDO) closed at $272.01 per share. One-month return of Credo Technology Group Holding Ltd (NASDAQ:CRDO) was 22.95%, and its shares gained 195.02% over the past 52 weeks. Credo Technology Group Holding Ltd (NASDAQ:CRDO) has a market capitalization of $50.72 billion.
Carillon Eagle Small Cap Growth Fund stated the following regarding Credo Technology Group Holding Ltd (NASDAQ:CRDO) in its Q1 2026 investor letter:
“Credo Technology Group Holding Ltd (NASDAQ:CRDO) provides specialized cables used in AI data centers. The company has been growing very rapidly, but investors have become concerned about replacement risks from both increased competition and evolving data center architecture potentially reducing demand for its specialized cables. While we acknowledge the risk from technological change, we view it as unlikely to impact the business in the immediate to mid term. The massive spending in data centers as telecasted by hyperscalers should benefit all suppliers, even with some market share shifts.”
Credo Technology Group Holding Ltd (NASDAQ:CRDO) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 59 hedge fund portfolios held Credo Technology Group Holding Ltd (NASDAQ:CRDO) at the end of the first quarter, compared to 69 in the previous quarter. While we acknowledge the risk and potential of Credo Technology Group Holding Ltd (NASDAQ:CRDO) 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 Credo Technology Group Holding Ltd (NASDAQ:CRDO) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Credo Technology Group Holding Ltd (NASDAQ:CRDO) and shared the list of AI stocks analysts are watching. 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.
