Soumya Eswaran
3 min read
In This Article:
Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Growth & Income Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The S&P 500 Index ended Q1 down 4.3%, marking a turbulent start to 2025. The volatility that began in February was triggered by factors including policy uncertainties, economic deceleration, and AI investment sustainability concerns. The market's first intra-quarter drawdown exceeded 10% in 28 months. Adding to the uncertainty, the 10-year U.S. Treasury yield declined from 4.8% to 4.25%, leading to an equity market rotation favoring defensive sectors, quality stocks, and dividend-yielding equities over growth and momentum-driven investments, with top-performing sectors like energy, healthcare, and consumer staples. Moreover, the quarter saw market participation broaden, with index leadership shifting from mega-cap technology companies to a more diverse base of stocks, as evidenced by the S&P 500® Equal Weight Index's outperformance. Additionally, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its first-quarter 2025 investor letter, Carillon Eagle Growth & Income Fund highlighted stocks such as Eaton Corporation plc (NYSE:ETN). Eaton Corporation plc (NYSE:ETN) is a global power management company. The one-month return of Eaton Corporation plc (NYSE:ETN) was 23.37%, and its shares lost 2.21% of their value over the last 52 weeks. On May 19, 2025, Eaton Corporation plc (NYSE:ETN) stock closed at $329.29 per share with a market capitalization of $128.85 billion.
Carillon Eagle Growth & Income Fund stated the following regarding Eaton Corporation plc (NYSE:ETN) in its Q1 2025 investor letter:
"Pressure on Eaton Corporation plc (NYSE:ETN) shares stemmed from concerns about the possibility that reduced capital spending in the data center market could affect the entire AI supply chain. As a critical supplier of power connection products, the company’s multi-year growth prospects are affected by overall data center capital spending trends that continue to be favorable."
A technician standing in the middle of a power station, inspecting a power distribution system.
Eaton Corporation plc (NYSE:ETN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 88 hedge fund portfolios held Eaton Corporation plc (NYSE:ETN) at the end of the fourth quarter, compared to 90 in the third quarter. Eaton Corporation plc (NYSE:ETN) reported revenue of $6.4 billion and adjusted EPS of $2.72 representing a 13% increase from the previous year. While we acknowledge the potential of Eaton Corporation plc (NYSE:ETN) 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.
