Carillon Tower Advisers, an investment management company, released its second-quarter 2026 investor letter for the "Carillon Eagle Small Cap Growth Fund". The letter can be downloaded here. Small-cap stocks rallied broadly in the second quarter, with the Russell 2000 Growth Index (+25.71%) outpacing Value +17.24%).
Information Technology (+46.79%) led all sectors, supported by solid gains in Real Estate (+25.91%), Industrials (+25.80%), and Health Care (+25.54%). Consumer and defensive sectors lagged, while Energy (-2.40%) was the sole sector in the red. Following a strong quarter, the outlook for equity markets remains positive, supported by robust corporate profits and economic growth.
However, midterm election uncertainties could introduce volatility, especially around data center development, a key economic driver. The $1 trillion data center spending boosts corporate earnings and supports ongoing AI infrastructure investments. Additionally, reviewing the Fund's top five holdings could help identify its best picks for 2026.
In its second-quarter 2026 investor letter, Carillon Eagle Small Cap Growth Fund highlighted Fastly, Inc. (NASDAQ:FSLY). Fastly, Inc. (NASDAQ:FSLY) operates an edge cloud platform that enables customers to process, serve, and secure applications. On September 18, 2026, Fastly, Inc. (NASDAQ:FSLY) closed at $23.86 per share.
Over the past month, Fastly, Inc. (NASDAQ:FSLY) returned 4.01%, but its shares are up 172.37% over the past year. Fastly, Inc. (NASDAQ:FSLY) has a market capitalization of $3.80 billion, and its stock has traded within a 52-week range of $7.74 to $34.82. Carillon Eagle Mid Cap Growth Fund stated the following regarding Fastly, Inc. (NASDAQ:FSLY) in its Q2 2026 investor letter: "Fastly, Inc. (NASDAQ:FSLY) provides a content delivery network (CDN) to speed up access to data over the internet.
The company has seen strength in the core business as certain sub-scale competitors have left the industry, but that did not translate into a more robust growth rate. However, we remain enthusiastic about the company as the CDN industry needs more compute at the edge of the network and we see Fastly as well positioned to benefit as AI and increasingly agentic AI drive the need for speed and compute closer to the end user." Fastly, Inc. (NASDAQ:FSLY) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Fastly, Inc. (NASDAQ:FSLY) at the end of the second quarter, which was 41 in the previous quarter.
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