Carillon Tower Advisers, an investment management firm, published its “Carillon Eagle Mid Cap Growth Fund” second quarter 2021 investor letter – a copy of which can be downloaded here. Mid-cap stocks extended their recent run of success in the second quarter, advancing for the fifth consecutive quarter following the sharp selloff induced by the early stages of the pandemic. Among the two style indexes, the Russell Midcap® Growth Index (up 11.07%) staged a strong comeback against its Russell Midcap® Value Index (up 5.66%) counterpart, after lagging rather significantly in the first quarter. You can take a look at the fund’s top 5 holdings to have an idea about their top bets for 2021.
In the Q2 2021 investor letter of Carillon Tower Advisers, the fund mentioned CrowdStrike Holdings, Inc. (NASDAQ: CRWD) and discussed its stance on the firm. CrowdStrike Holdings, Inc. is a Sunnyvale, California-based cybersecurity technology company with a $59.4 billion market capitalization. CRWD delivered a 23.08% return since the beginning of the year, while its 12-month returns are up by 102.76%. The stock closed at $259.57 per share on September 15, 2021.
Here is what Carillon Tower Advisers has to say about CrowdStrike Holdings, Inc. in its Q2 2021 investor letter:
“CrowdStrike provides cloud-based software solutions used in the security of computers, servers, and mobile phones. The company delivered revenue that came in above expectations and provided strong guidance as protection of enterprise assets and cloud workloads from cyber attacks remains top of mind for enterprises of all sizes. This ongoing dynamic should continue to result in a robust demand environment for CrowdStrike’s innovative products and services.”
Photo by Danial Igdery on Unsplash
Based on our calculations, CrowdStrike Holdings, Inc. (NASDAQ: CRWD) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. CRWD was in 66 hedge fund portfolios at the end of the first half of 2021, compared to 77 funds in the previous quarter. CrowdStrike Holdings, Inc. (NASDAQ: CRWD) delivered an 8.05% return in the past 3 months.
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by 115 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
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Disclosure: None. This article is originally published at Insider Monkey.
