Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Small Cap Growth Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. Small-cap stocks had mixed results in the fourth quarter, failing to match their previous quarter’s rebound. The Russell 2000® Growth Index rose 1.70%, outperforming the Russell 2000® Value Index, which fell 1.07%, ending in negative territory. Small caps had a strong year in 2024, with the Russell 2000 Growth Index rising 15.14%, nearly matching the previous year’s results and outperforming the Russell 2000 Value Index, which increased by 8.04% but saw a decline on an annual basis. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Carillon Eagle Small Cap Growth Fund emphasized stocks such as Evolent Health, Inc. (NYSE:EVH). Evolent Health, Inc. (NYSE:EVH) is a US-based specialty care management services provides in oncology, cardiology, and musculoskeletal markets. The one-month return Evolent Health, Inc. (NYSE:EVH) was -7.55%, and its shares lost 69.87% of their value over the last 52 weeks. On March 24, 2025, Evolent Health, Inc. (NYSE:EVH) stock closed at $9.68 per share with a market capitalization of $1.129 billion.
Carillon Eagle Small Cap Growth Fund stated the following regarding Evolent Health, Inc. (NYSE:EVH) in its Q4 2024 investor letter:
“Evolent Health, Inc. (NYSE:EVH) provides tech-enabled services for health plans and large physician groups focused on value-based care, particularly in cardiology, oncology, and musculoskeletal diseases. Despite strong revenue growth and adding significant clients, the company faced a challenging recent quarter due to higher than expected medical expenses, drastically reducing the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA). To address this, Evolent Health is seeking higher rates from clients, but the process will take time and its success is uncertain. The lack of visibility into future EBITDA and cash flow is concerning for investors.”
A doctor looking at their computer, discussing their patient’s care options with a group of experts.
Evolent Health, Inc. (NYSE:EVH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Evolent Health, Inc. (NYSE:EVH) at the end of the fourth quarter which was 36 in the previous quarter. While we acknowledge the potential of Evolent Health, Inc. (NYSE:EVH) 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 Evolent Health, Inc. (NYSE:EVH) and shared the list of stocks that will bounce back according to hedge funds. In the previous quarter investor letter, Carillon Eagle Small Cap Growth Fund noted that despite stock pressure from rising care levels impacting margins, Evolent Health, Inc. (NYSE:EVH) remains on track for a strong EBITDA run rate by year-end, making it a potential target for acquisition. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.