Carillon Tower Advisers, an investment management company, released its second-quarter 2026 investor letter for the "Carillon Eagle Growth & Income Fund". A copy of the letter is available to download here. The second quarter of 2026 was driven by a sharp rally in AI-related stocks, although gains were concentrated in highly cyclical semiconductor, memory and optical companies. The S&P 500 gained 15.2%, while the semiconductor index surged 87.8%. Unlike earlier AI rallies led by megacaps and strong earnings growth, some smaller technology stocks rose 200% to 300%, making the advance more fragile. Software and services stocks declined as investors questioned the impact of AI disruption. Oil prices also rose during the Iran conflict before retreating, briefly increasing inflation and interest-rate concerns. Despite the volatility, economic data and corporate earnings remained strong. S&P 500 earnings are projected to rise 25% in 2026 and 15% in 2027, with the market trading near 20x earnings. The Fund continues to focus on financially strong companies with durable earnings growth that can perform across different economic conditions. In addition, please check the Fund's top five holdings to know its best picks in 2026.
In its second-quarter 2026 investor letter, Carillon Eagle Growth & Income Fund highlighted Chevron Corporation (NYSE:CVX). Chevron Corporation (NYSE:CVX) engages in the integrated energy and chemicals operations. On July 27, 2026, Chevron Corporation (NYSE:CVX) closed at $190.00 per share. One-month return of Chevron Corporation (NYSE:CVX) was 14.62% and its shares gained 21.00% over the past 52 weeks. Chevron Corporation (NYSE:CVX) has a market capitalization of $378.4 billion with a 52-week range between $146.49 - $214.71.
Carillon Eagle Growth & Income Fund stated the following regarding Chevron Corporation (NYSE:CVX) in its Q2 2026 investor letter:
"Chevron Corporation's (NYSE:CVX) weak share price performance in the second quarter, following very strong performance in the first quarter, closely aligns with crude oil prices throughout 2026. Crude prices mirror news flows out of the Middle East with particular attention to transit levels through the Strait of Hormuz. This will continue for the duration of the conflict. However, Chevron is well placed to benefit from generally high commodity price levels, a high-quality ***** et base, and continued discipline around cash flow generation and capital deployment."
Chevron Corporation (NYSE:CVX) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 103 hedge fund portfolios held Chevron Corporation (NYSE:CVX) at the end of the first quarter which was 86 in the previous quarter. While we acknowledge the potential of Chevron Corporation (NYSE:CVX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantl