Scout Investments, Inc, an affiliate of Carillon Tower Advisers, released the “Carillon Scout Mid Cap Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The Russell Midcap® Index fell in Q2 as investors prioritized mega-cap technology businesses over smaller ones. IT, communications, and utilities were among the midcap industries with significant links to AI and attractive returns, as they matched the power requirements of AI servers. Surprisingly, the generally less cyclical consumer staples and healthcare sectors underperformed despite the index’s negative returns in the quarter. Overall, the U.S. economy appears steady going into the second half of the year. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Carillon Scout Mid Cap Fund highlighted stocks like Dell Technologies Inc. (NYSE:DELL), in the second quarter 2024 investor letter. Dell Technologies Inc. (NYSE:DELL) develops, manufactures, distributes and services various IT solutions, products, and services. The one-month return of Dell Technologies Inc. (NYSE:DELL) was 5.95%, and its shares gained 49.71% of their value over the last 52 weeks. On September 9, 2024, Dell Technologies Inc. (NYSE:DELL) stock closed at $105.89 per share with a market capitalization of $74.897 billion.
Carillon Scout Mid Cap Fund stated the following regarding Dell Technologies Inc. (NYSE:DELL) in its Q2 2024 investor letter:
“Dell Technologies Inc. (NYSE:DELL) was a top contributor despite reporting disappointing first-quarter earnings results, because investors looked through the near-term disappointment and expected strong growth from AI-related servers and personal computers. We expect Dell to participate in the growth of artificial intelligence hardware, especially as enterprises invest more aggressively. We like the company’s depth and breadth of products and services, as well as its focus on keeping costs low.”
A team of IT experts discussing the latest network security trends over a laptop screen.
Dell Technologies Inc. (NYSE:DELL) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 88 hedge fund portfolios held Dell Technologies Inc. (NYSE:DELL) at the end of the second quarter which was 82 in the previous quarter. Dell Technologies Inc.’s (NYSE:DELL) revenue in the second quarter was $25 billion, up 9% year-over-year and Diluted EPS was $1.89, up 9% from previous year’s quarter. While we acknowledge the potential of Dell Technologies Inc. (NYSE:DELL) 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 cheapest AI stock.
In another article, we discussed Dell Technologies Inc. (NYSE:DELL) and shared the list of top trending AI stocks amid latest news and analyst ratings. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
