Soumya Eswaran
3 min read
In This Article:
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 Aris Water Solutions, Inc. (NYSE:ARIS). Aris Water Solutions, Inc. (NYSE:ARIS) is an environmental infrastructure and solutions company. The one-month return of Aris Water Solutions, Inc. (NYSE:ARIS) was -11.08%, and its shares gained 53.32% of their value over the last 52 weeks. On May 23, 2025, Aris Water Solutions, Inc. (NYSE:ARIS) stock closed at $23.35 per share with a market capitalization of $1.381 billion.
Carillon Eagle Small Cap Growth Fund stated the following regarding Aris Water Solutions, Inc. (NYSE:ARIS) in its Q1 2025 investor letter:
"Aris Water Solutions, Inc. (NYSE:ARIS) provides water infrastructure and solutions for the oil and gas industry within the Permian Basin in West Texas and southeastern New Mexico. The stock performed well. We believe the company is distinctly positioned to benefit from a number of important trends unfolding in the oil and gas industry and more specifically in the Delaware sub-basin of the Permian Basin. Well output that contains rising ratios of water to oil, as well as increased demand for recycled water to be used in new-well completion activities, combined to help drive strong quarterly results."
An industrial complex with a pillar of steam billowing from a water recycling plant.
Aris Water Solutions, Inc. (NYSE:ARIS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Aris Water Solutions, Inc. (NYSE:ARIS) at the end of the first quarter, which was 31 in the previous quarter. While we acknowledge the potential of Aris Water Solutions, Inc. (NYSE:ARIS) 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.
