Is it Worthy to Invest Your Money in Silicon Laboratories (SLAB)?

Carillon Tower Advisers, an investment management firm, published its “Carillon Eagle Small Cap Growth Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. Small-cap stocks overall posted minor gains in the final quarter of 2021. In what has become a common theme, the Russell 2000® Growth Index (up 0.02%) trailed its Russell 2000® Value Index (up 4.36%) counterpart for the fifth consecutive quarter. Sector returns across the Russell 2000 Growth Index were mostly positive, with the defensively oriented utilities (up 14.18%) and real estate (up 13.94%) sectors leading the way. Industrials (up 9.73%), financials (up 9.05%), and consumer staples (up 5.67%) also provided returns that outpaced the benchmark. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Carillon Eagle Small Cap Growth Fund, in its Q4 2021 investor letter, mentioned Silicon Laboratories Inc. (NASDAQ: SLAB) and discussed its stance on the firm. Silicon Laboratories Inc. is an Austin, Texas-based semiconductor manufacturing company with a $5.9 billion market capitalization. SLAB delivered a -24.23% return since the beginning of the year, while its 12-month returns are up by 1.33%. The stock closed at $156.40 per share on February 10, 2022.

Here is what Carillon Eagle Small Cap Growth Fund has to say about Silicon Laboratories Inc. in its Q4 2021 investor letter:

“Silicon Laboratories provides silicon, software, and solutions used in a variety of technologies. The company now is solely focused on the Internet-of-Things (IoT) market after divesting non-core assets. The company reported excellent acceleration in growth for IoT products, and management gave a forecast that suggested very strong growth coupled with healthy improvement in gross margins. We remain optimistic the company now has sharp focus on a compelling growth area, and with the sale of the non-core assets, the balance sheet allows for significant share buybacks or dividends.”

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Our calculations show that Silicon Laboratories Inc. (NASDAQ: SLAB) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. SLAB was in 18 hedge fund portfolios at the end of the third quarter of 2021, compared to 15 funds in the previous quarter. Silicon Laboratories Inc. (NASDAQ: SLAB) delivered a -22.95% return in the past 3 months. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.