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 SiTime Corporation (NASDAQ:SITM). SiTime Corporation (NASDAQ:SITM) designs and develops solutions for silicon timing systems, which contributed 1.68% to the fund's returns this quarter. On September 18, 2026, SiTime Corporation (NASDAQ:SITM) closed at $614.27 per share.
Over the past month, SiTime Corporation (NASDAQ:SITM) returned 5.73%, and its shares are up 102.14% over the past year. SiTime Corporation (NASDAQ:SITM) has a market capitalization of $18.40 billion, and its stock has traded within a 52-week range of $243.68 to $901.81. Carillon Eagle Small Cap Growth Fund stated the following regarding SiTime Corporation (NASDAQ:SITM) in its Q2 2026 investor letter: "SiTime Corporation (NASDAQ:SITM), a provider of precision timing semiconductors, delivered earnings results well above expectations, driven by modern AI data center demand for AI-processing semiconductors, optical components, and network switches and servers.
The company announced a plan to acquire the precision timing business of a competitor, strengthening SiTime's competitive position, gaining scale, and providing the company with a new installed base of customers to whom it can cross-sell its products." SiTime Corporation (NASDAQ:SITM) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. According to our database, 76 hedge fund portfolios held SiTime Corporation (NASDAQ:SITM) at the end of the second quarter, compared to 54 in the previous quarter. While we acknowledge the potential of SiTime Corporation (NASDAQ:SITM) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk.
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