Carillon Tower Advisers, an investment management company, released its second-quarter 2026 investor letter for the “Carillon Eagle Small Cap Growth Fund”. The letter can be downloaded here. Small-cap stocks rallied broadly in the second quarter, with the Russell 2000 Growth Index (+25.71%) outpacing Value +17.24%). Information Technology (+46.79%) led all sectors, supported by solid gains in Real Estate (+25.91%), Industrials (+25.80%), and Health Care (+25.54%). Consumer and defensive sectors lagged, while Energy (-2.40%) was the sole sector in the red. Following a strong quarter, the outlook for equity markets remains positive, supported by robust corporate profits and economic growth. However, midterm election uncertainties could introduce volatility, especially around data center development, a key economic driver. The $1 trillion data center spending boosts corporate earnings and supports ongoing AI infrastructure investments. Additionally, reviewing the Fund’s top five holdings could help identify its best picks for 2026.
In its second-quarter 2026 investor letter, Carillon Eagle Small Cap Growth Fund highlighted Applied Optoelectronics, Inc. (NASDAQ:AAOI). Applied Optoelectronics, Inc. (NASDAQ:AAOI), a US-based manufacturer of fiber-optic networking products, contributed 1.02% to the Fund’s returns in the quarter. On September 18, 2026, Applied Optoelectronics, Inc. (NASDAQ:AAOI) closed at $105.17 per share. Over the past month, Applied Optoelectronics, Inc. (NASDAQ:AAOI) declined 2.29%, but its shares are up 244.37% over the past year. Applied Optoelectronics, Inc. (NASDAQ:AAOI) has a market capitalization of $8.93 billion, and its stock has traded within a 52-week range of $18.50 to $233.67.
Carillon Eagle Small Cap Growth Fund stated the following regarding Applied Optoelectronics, Inc. (NASDAQ:AAOI) in its Q2 2026 investor letter:
“Applied Optoelectronics, Inc. (NASDAQ:AAOI) supplies key fiber-optic lasers and related networking equipment for data centers. The optical industry has seen unprecedented demand given the massive hyperscaler capital expenditure (capex) announcements. The optical industry is currently under-supplied, and Applied Optoelectronics, among others, is building capacity to address that demand. This past quarter, management reported receiving early orders for next-generation optical products and discussed increasing revenue visibility into the middle of next year. We remain enthusiastic about the company’s mid-term prospects despite what might be some near-term digestion.”
