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 Brunswick Corporation (NYSE:BC), in the second quarter 2024 investor letter. Brunswick Corporation (NYSE:BC) designs, manufactures, and markets recreational marine products that operates through Propulsion, Engine P&A, Navico Group, and Boat segments. The one-month return of Brunswick Corporation (NYSE:BC) was -0.73%, and its shares lost 1.06% of their value over the last 52 weeks. On September 9, 2024, Brunswick Corporation (NYSE:BC) stock closed at $75.66 per share with a market capitalization of $5.01 billion.
Carillon Scout Mid Cap Fund stated the following regarding Brunswick Corporation (NYSE:BC) in its Q2 2024 investor letter:
“Brunswick Corporation (NYSE:BC) was another detractor. The company is a leading recreational boat and marine engine manufacturer; its popular brands include Sea Ray, Boston Whaler and Mercury Marine. Worries over consumer spending, continuing elevated interest rates, and updates from other recreational product providers — such as swimming pool suppliers — weighed on the stock. We like Brunswick’s market position, especially in marine engines, and the stock looks very attractive on long-term earnings power.”
An aerial view of a boat sailing in the open sea at sunset.
Brunswick Corporation (NYSE:BC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Brunswick Corporation (NYSE:BC) at the end of the second quarter which was 26 in the previous quarter. In the second quarter, Brunswick Corporation (NYSE:BC) reported 15% decline in Q2 net sales, with adjusted operating margins of 12.5%. While we acknowledge the potential of Brunswick Corporation (NYSE:BC) 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 addition, please check out our hedge fund investor letters Q2 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.
