Carillon Tower Advisers, an investment management company, released its fourth-quarter 2025 investor letter for the “Carillon Eagle Small Cap Growth Fund”. You can download a copy of the letter here. Small-cap stocks delivered marginal gains in the fourth quarter of 2025. The Russell 2000® Value Index outperformed the Russell 2000® Growth Index in the quarter, with more balanced results. In line with the broader stock market, small-cap stocks delivered solid results in 2025. The Russell 2000 Growth Index returned 13.01%, outperforming the Russell 2000 Value Index’s 12.58% gain. The firm anticipates a favorable year ahead for equity markets. The letter outlined the potential opportunities within Cyclicals, Healthcare, Information Technology, Financials, and Consumer spending sectors heading to 2026. 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 Eagle Small Cap Growth Fund highlighted Varonis Systems, Inc. (NASDAQ:VRNS). Varonis Systems, Inc. (NASDAQ:VRNS) is a cybersecurity software company that provides AI-powered data protection security software. On February 17, 2026, Varonis Systems, Inc. (NASDAQ:VRNS) stock closed at $25.32 per share. One-month return of Varonis Systems, Inc. (NASDAQ:VRNS) was -23.04%, and its shares are down 41.86% over the past twelve months. Varonis Systems, Inc. (NASDAQ:VRNS) has a market capitalization of $2.985 billion.
Carillon Eagle Small Cap Growth Fund stated the following regarding Varonis Systems, Inc. (NASDAQ:VRNS) in its fourth quarter 2025 investor letter:
“Varonis Systems, Inc. (NASDAQ:VRNS), which provides data protection security software, delivered disappointing earnings results and an outlook below expectations. While the important cloud-de livered product performed reasonably well, the on-premises version saw poor contract renewals and longer sales cycles, especially during the last two weeks of the quarter. The company has decided to stop selling the on-premises version of the product by the end of 2026, thereby becoming a pure play provider in the higher-growth segment of the market. Over time, we expect this to allow Varonis to reduce costs and facilitate upselling of new product features.”
Varonis Systems, Inc. (NASDAQ:VRNS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 37 hedge fund portfolios held Varonis Systems, Inc. (NASDAQ:VRNS) at the end of the third quarter, the same as in the previous quarter. In Q4 2025, Varonis Systems, Inc. (NASDAQ:VRNS) reported total revenue of $173.4 million, reflecting an increase of 9% from Q4 2024.While we acknowledge the risk and potential of Varonis Systems, Inc. (NASDAQ:VRNS) 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 Varonis Systems, Inc. (NASDAQ:VRNS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Varonis Systems, Inc. (NASDAQ:VRNS) and shared a list of best strong buy tech stocks to invest in. 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.
