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 AppFolio, Inc. (NASDAQ:APPF). AppFolio, Inc. (NASDAQ:APPF) is a US-based technology company that provides a cloud-based platform for the real estate industry. On June 24, 2026, AppFolio, Inc. (NASDAQ:APPF) closed at $148.81 per share. One-month return of AppFolio, Inc. (NASDAQ:APPF) was -6.51%, and its shares lost 35.10% over the past 52 weeks. AppFolio, Inc. (NASDAQ:APPF) has a market capitalization of $5.26 billion.
Carillon Eagle Small Cap Growth Fund stated the following regarding AppFolio, Inc. (NASDAQ:APPF) in its Q1 2026 investor letter:
“AppFolio, Inc. (NASDAQ:APPF) provides cloud-based multi-property management software. The company has been gaining share against legacy suppliers while delivering strong margins and cash flow. Investor concerns have emerged around AI tools potentially replacing proprietary solutions like the ones provided by AppFolio. We believe the company’s deep industry expertise. The importance of its software in managing the complexity of running thousands of rental units, the potential financial consequences, and AppFolio’s relatively low-cost offering together are enough to dissuade customers from using rudimentary AI-based tools.”
AppFolio, Inc. (NASDAQ:APPF) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 43 hedge fund portfolios held AppFolio, Inc. (NASDAQ:APPF) at the end of the first quarter, up from 33 in the previous quarter. In Q1 2026, AppFolio, Inc. (NASDAQ:APPF) delivered revenue of $262 million, up 20% year-over-year. While we acknowledge the risk and potential of AppFolio, Inc. (NASDAQ:APPF) 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 AppFolio, Inc. (NASDAQ:APPF) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered AppFolio, Inc. (NASDAQ:APPF) and shared the list of best upside stocks to buy according to hedge funds. 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.
