Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Small Cap Growth Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, equity markets experienced one of their most turbulent periods in recent history. Small-cap stocks managed a rebound in the quarter, recovering from declines at the beginning of the year. Among style indexes, the Russell 2000® Growth Index led the way with an 11.96% gain, outpacing the Russell 2000® Value Index, which rose by 4.96%. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its second-quarter 2025 investor letter, the Carillon Eagle Small Cap Growth Fund highlighted stocks such as ATI Inc. (NYSE:ATI). ATI Inc. (NYSE:ATI) is an industrial company that engages in the production and distribution of specialty materials and complex components. ATI Inc. (NYSE:ATI) stock fell 23.42% over the past month, while its shares rose 10.29% in value over the last 52 weeks. On August 19, 2025, ATI Inc. (NYSE:ATI) stock closed at $72.05 per share, with a market capitalization of $9.93 billion.
Carillon Eagle Small Cap Growth Fund stated the following regarding ATI Inc. (NYSE:ATI) in its second quarter 2025 investor letter:
“ATI Inc. (NYSE:ATI) produces specialty metals and alloys for a diversified set of industries, but most notably aerospace and defense. After a period of somewhat challenging operating results in the past year, the company put together a more impressive quarter that exceeded expectations across the board. We believe the company’s desirable positioning within an exceptionally tight aerospace specialty alloys market sets it up for a bright future if it can continue executing. We also believe ATI’s expo sure to newer-generation aircraft, an accelerating pricing environment, and newly announced contracts with a large OEM customer to which ATI historically has had little exposure all should provide for a positive backdrop going forward.”
A machinist performing intricate work on a high-temperature resistant alloy for a jet engine.
ATI Inc. (NYSE:ATI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held ATI Inc. (NYSE:ATI) at the end of the first quarter, which was 45 in the previous quarter. ATI Inc.’s (NYSE:ATI) second quarter revenue increased 4% year-over-year, to over $1.1 billion. While we acknowledge the potential of ATI Inc. (NYSE:ATI) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
