Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Mid Cap Growth Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. Mid-cap stocks experienced a notable improvement in the third quarter after incurring losses in the second quarter. The Russell Midcap Growth Index (up 6.54%) underperformed the Russell Midcap Value Index (up 10.08%) during the quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Carillon Eagle Mid Cap Growth Fund highlighted stocks like Synopsys, Inc. (NASDAQ:SNPS), in the third quarter 2024 investor letter. Synopsys, Inc. (NASDAQ:SNPS) offers electronic design automation software products used to design and test integrated circuits. The one-month return of Synopsys, Inc. (NASDAQ:SNPS) was 11.24%, and its shares gained 2.81% of their value over the last 52 weeks. On November 21, 2024, Synopsys, Inc. (NASDAQ:SNPS) stock closed at $557.94 per share with a market capitalization of $85.707 billion.
Carillon Eagle Mid Cap Growth Fund stated the following regarding Synopsys, Inc. (NASDAQ:SNPS) in its Q3 2024 investor letter:
“Synopsys, Inc. (NASDAQ:SNPS) provides software for the development of semiconductors. After a strong first half of the year driven by demand from major semiconductor companies, the stock retraced somewhat due to its exposure to a major customer, as well as due to general concerns about AI-related spending. As one of the leading buyers of semiconductor software, the major customer’s strategic issues have become a concern for Synopsys investors. However, we believe the long-term case for using intelligent software to design leading-edge chips, especially AI chips, remains as strong as ever. Even if Synopsys’s customer reduces spending, that expenditure will likely shift to other semiconductor manufacturers.”
A close-up of a tech engineer soldering a modern system-on-chip circuit board in a laboratory setting.
Synopsys, Inc. (NASDAQ:SNPS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 53 hedge fund portfolios held Synopsys, Inc. (NASDAQ:SNPS) at the end of the third quarter which was 53 in the previous quarter. Synopsys, Inc. (NASDAQ:SNPS) generated total revenue of $1.53 billion in the fiscal third quarter, up 13% year-over-year. While we acknowledge the potential of Synopsys, Inc. (NASDAQ:SNPS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Synopsys, Inc. (NASDAQ:SNPS) and shared the list of top stocks that are leading the market in investing in their growth according to Goldman Sachs. In Q3 2024, Synopsys, Inc. (NASDAQ:SNPS) detracted from Aristotle Focus Growth Strategy’s performance due to a broader sell-off in AI-related semiconductor stocks. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.