SpringWorks Therapeutics (SWTX) Surged on Acquisition News

Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Small Cap Growth Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. Small-cap stocks experienced a significant drop in Q1, with the Russell 2000 Growth Index (down 11.12%) trailing the Russell 2000 Value Index (down 7.74%). In the Russell 2000 Growth Index, real estate, which increased by 1.76%, outperformed all sectors both absolutely and relatively. The only other sector delivering positive returns was consumer staples, which rose by 0.67%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Carillon Eagle Small Cap Growth Fund highlighted stocks such as SpringWorks Therapeutics, Inc. (NASDAQ:SWTX). Headquartered in Stamford, Connecticut, SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) is a biopharmaceutical company. The one-month return of SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) was 0.65%, and its shares gained 9.67% of their value over the last 52 weeks. On May 23, 2025, SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) stock closed at $46.48 per share with a market capitalization of $3.5 billion.

Carillon Eagle Small Cap Growth Fund stated the following regarding SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) in its Q1 2025 investor letter:

“SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) is a commercial-stage biopharmaceutical company that develops treatments for various diseases and cancers. During the first quarter, a major pharmaceutical company announced that it was in talks to acquire SpringWorks. In response, SpringWorks cancelled all meetings and its earnings call, reflecting the significance of the potential deal. Although no agreement has been finalized, the stock performed well last quarter.”

Is SpringWorks Therapeutics, Inc. (SWTX) The Best Immunology Stock To Buy Now?

A closeup of a scientist in a lab coat, mixing two liquids for a compound to treat rare diseases.

SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 71 hedge fund portfolios held SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) at the end of the first quarter, which was 40 in the previous quarter. While we acknowledge the potential of SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) and shared the list of best immunology stocks to buy. In addition, please check out our hedge fund investor letters Q1 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.