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 stocks like CoreWeave, Inc. (NASDAQ:CRWV). CoreWeave, Inc. (NASDAQ:CRWV) is an AI-centric cloud computing company that enables the automation and efficiency needed to manage complex artificial intelligence (AI) infrastructure at scale. On March 20, 2026, CoreWeave, Inc. (NASDAQ:CRWV) stock closed at $81.47 per share. One-month return of CoreWeave, Inc. (NASDAQ:CRWV) was -10.31%, and YTD its shares gained 13.77%. CoreWeave, Inc. (NASDAQ:CRWV) has a market capitalization of $42.83 billion.
Carillon Scout Mid Cap Fund stated the following regarding CoreWeave, Inc. (NASDAQ:CRWV) in its fourth quarter 2025 investor letter:
“CoreWeave, Inc. (NASDAQ:CRWV) is a specialized AI cloud computing platform that provides GPU-powered infrastructure for training and running large-scale artificial intelligence models. The stock lagged largely due to elevated financing concerns. CoreWeave’s business is capital-intensive, and the customer concentration risk is high. Though we do not expect material financial or customer concentration risks to impact near-term fundamentals we grew uncomfortable with debt levels that are likely to rise as CoreWeave expands.”
CoreWeave, Inc. (NASDAQ:CRWV) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 58 hedge fund portfolios held CoreWeave, Inc. (NASDAQ:CRWV) at the end of the fourth quarter, up from 62 in the previous quarter. While we acknowledge the risk and potential of CoreWeave, Inc. (NASDAQ:CRWV) 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 CoreWeave, Inc. (NASDAQ:CRWV) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered CoreWeave, Inc. (NASDAQ:CRWV) and shared a list of most promising stocks under $100 to buy. 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.
