Carillon Tower Advisers has released its second-quarter 2026 investor letter for the Carillon Eagle Small Cap Growth Fund, outlining both the broader small-cap backdrop and stock-specific contributors to performance. The letter said small-cap shares rallied broadly in the quarter, with the Russell 2000 Growth Index up 25.71%, ahead of the Value segment's 17.24% gain.
According to the fund, Information Technology led all sectors with a 46.79% rise. It was followed by Real Estate at 25.91%, Industrials at 25.80%, and Health Care at 25.54%. Consumer and defensive sectors lagged, while Energy, down 2.40%, was the only sector in negative territory.
In the same letter, Carillon Eagle Mid Cap Growth Fund highlighted The Ensign Group, Inc. (NASDAQ:ENSG), saying the healthcare services company detracted from performance during the quarter. The Ensign Group operates in skilled nursing, senior living, and rehabilitative services. As of September 18, 2026, the stock closed at $173.91 a share. It fell 3.04% over the past month but was still up 4.25% over the previous 52 weeks. The company had a market capitalization of $10.14 billion.
The fund said the weakness followed a pair of short-seller reports. Those reports alleged that Ensign understaffed its skilled nursing facilities to boost profits, violated state staffing rules, falsified care-quality data used in Centers for Medicare & Medicaid Services (CMS) star ratings, and contributed to patient harm.
Management rejected those claims and said its facilities are subject to ongoing state and federal audits. It also pointed to a recent CMS audit covering all facilities, which it said produced an error rate significantly better than that of competitors. Carillon Eagle Mid Cap Growth Fund said it was unable to substantiate the short-seller allegations, and added that while the stock sold off sharply, it later rebounded well from its lows.
The article also noted that The Ensign Group, Inc. (NASDAQ:ENSG) is not among the 40 most popular stocks held by hedge funds. Database figures showed 52 hedge fund portfolios held the stock at the end of the second quarter, up from 37 in the prior quarter.
At the same time, the investor letter maintained a broadly constructive view on equities, supported by strong corporate earnings and economic growth, while cautioning that midterm election uncertainty could add volatility. It also highlighted data center development as a key economic driver, tied to $1 trillion in spending and continued investment in AI infrastructure.
