Carrier Global Corporation (CARR) Fell in Q3 Despite Good Results

Group 1: Company Performance - Bristol Gate Capital Partners' US Equity Strategy underperformed the S&P 500® Total Return Index in Q3 2025, primarily due to limited exposure to the AI/TMT and Value sectors, which benefited from the Federal Reserve's rate cut [1] - The portfolio achieved a 15% dividend growth over the trailing 12 months, supported by strong underlying fundamentals [1] Group 2: Carrier Global Corporation (NYSE:CARR) - Carrier Global Corporation's stock experienced a one-month return of -0.72% and a 52-week decline of 21.73%, closing at $53.43 per share with a market capitalization of $45.47 billion on December 30, 2025 [2] - Despite quarterly results meeting or exceeding consensus estimates, Carrier's stock fell due to concerns over weak US residential HVAC orders and negative product mix affecting margins [3] - CEO David Gitlin indicated a lower Q3 volume forecast at a Morgan Stanley industry conference, citing a nearly 30% reduction in industry volumes for July and similar declines projected for August and September, with high interest rates and dealer destocking as primary headwinds [3] Group 3: Hedge Fund Interest - Carrier Global Corporation was held by 48 hedge fund portfolios at the end of Q3 2025, a decrease from 53 in the previous quarter, indicating reduced interest among hedge funds [4] - While acknowledging Carrier's potential, the analysis suggests that certain AI stocks may offer greater upside potential and lower downside risk [4]