Carillon Tower Advisers, an investment management company, released its fourth-quarter 2025 investor letter for the “Carillon Eagle Mid Cap Growth Fund”. A copy of the letter can be downloaded here. The fourth quarter of 2025 saw mixed results for midcap stocks. Among the style indexes, the Russell Midcap® Growth Index decreased by 3.70%, while the Russell Midcap® Value Index rose by 1.41%. In the growth index, materials achieved the highest absolute return at 17.51%. However, due to their smaller weight in the index, their contribution to overall returns was limited. The healthcare (up 1.13%) and real estate (up 0.24%) sectors were the only other positive contributing sectors. Midcap stocks generated positive returns in 2025 but trailed their 2024 annual returns. The Russell Midcap Growth Index rose by 8.66%, trailing the Russell Midcap Value Index’s 11.04% return. In the growth index, utilities recorded the highest absolute return among all sectors, up 29.40%. The firm anticipates a favorable year ahead for equity markets. The letter outlined potential opportunities in Cyclicals, Healthcare, Information Technology, Financials, and Consumer Spending sectors through 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 Mid Cap Growth Fund highlighted Axon Enterprise, Inc. (NASDAQ:AXON) as one of its leading detractors. Headquartered in Scottsdale, Arizona, Axon Enterprise, Inc. (NASDAQ:AXON) is a public safety technology solutions company. On March 3, 2026, Axon Enterprise, Inc. (NASDAQ:AXON) stock closed at $579.09 per share. Axon Enterprise, Inc. (NASDAQ:AXON) delivered a 34.47% return in the past month, and its shares gained 8.25% over the past twelve months. Axon Enterprise, Inc. (NASDAQ:AXON) has a market capitalization of $46.56 billion.
Carillon Eagle Mid Cap Growth Fund stated the following regarding Axon Enterprise, Inc. (NASDAQ:AXON) in its fourth quarter 2025 investor letter:
“Axon Enterprise, Inc. (NASDAQ:AXON) provides law enforcement and security technology solutions. Axon’s shares lagged after reporting softer than anticipated bookings growth. While near-term results were slightly disappointing, management reiterated confidence for a strong rebound in fourth-quarter bookings, which could position the company for another year of impressive revenue growth in 2026. Axon remains intensely focused on developing innovative solutions to address all aspects of law enforcement, and it has made significant recent strides in the emerging areas of drones and potentially transformational AI-enabled solutions. In addition, Axon continues to expand its offerings outside of its traditional law enforcement area, and it recently highlighted the considerable opportunity that could lie ahead in these new markets.”
Axon Enterprise, Inc. (NASDAQ:AXON) is not on our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 68 hedge fund portfolios held Axon Enterprise, Inc. (NASDAQ:AXON) at the end of the fourth quarter, up from 61 in the previous quarter. In Q4 2025, Axon Enterprise, Inc.’s (NASDAQ:AXON) revenue grew 39% year-over-year to $797 million. While we acknowledge the risk and potential of Axon Enterprise, Inc. (NASDAQ:AXON) 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 Axon Enterprise, Inc. (NASDAQ:AXON) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Axon Enterprise, Inc. (NASDAQ:AXON) and shared a list of best performing S&P 500 stocks in the last 10 years. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. This article is originally published at Insider Monkey.
