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Learn moreCarillon 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 Black Rock Coffee Bar, Inc. (NASDAQ:BRCB). Black Rock Coffee Bar, Inc. (NASDAQ:BRCB), a US-based coffee chain that owns and operates a chain of drive-thru coffee bars, detracted from performance this quarter. On September 18, 2026, Black Rock Coffee Bar, Inc. (NASDAQ: BRCB) closed at $7.19 per share. Over the past month, Black Rock Coffee Bar, Inc. (NASDAQ:BRCB) declined 23.92%, but its shares are down 72.65% over the past year. Black Rock Coffee Bar, Inc. (NASDAQ:BRCB) has a market capitalization of $159.67 million, and its stock has traded within a 52-week range of $366.00 to $26.99.
Carillon Eagle Small Cap Growth Fund stated the following regarding Black Rock Coffee Bar, Inc. (NASDAQ:BRCB) in its Q2 2026 investor letter:
"Black Rock Coffee Bar, Inc. (NASDAQ:BRCB) operates drive-through coffee bars. The stock sold off sharply after quarterly earnings disappointed. The company is experiencing cannibalization as it opens new stores at an aggressive pace, challenging the long term square footage growth thesis."
Black Rock Coffee Bar, Inc. (NASDAQ:BRCB) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held Black Rock Coffee Bar, Inc. (NASDAQ:BRCB) at the end of the second quarter, which was 23 in the previous quarter. While we acknowledge the potential of Black Rock Coffee Bar, Inc. (NASDAQ:BRCB) 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 significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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