Clearwater Analytics (CWAN) Surged Following a Buyout Offer

Core Viewpoint - Carillon Scout Mid Cap Fund's fourth-quarter 2025 investor letter indicates a positive outlook for mid-cap equities in 2026, driven by strong corporate earnings and lower interest rates, despite a lagging performance in the Russell Midcap Index [1] Group 1: Market Performance - Major U.S. equity indices showed positive returns in Q4 2025, while the Russell Midcap® Index had nominal positive gains [1] - Strong corporate earnings revisions and lower short-term interest rates supported U.S. market returns [1] - High sector return dispersion was noted in the Russell Midcap Index, with healthcare, materials, and IT sectors leading [1] Group 2: Clearwater Analytics Holdings, Inc. - Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is highlighted as a leading contributor to the fund, with a market capitalization of $7.01 billion [2] - The stock closed at $23.44 per share on March 20, 2026, delivering a 1.30% return in the past month but losing 13.41% over the past twelve months [2] - The company develops cloud-native software for investment accounting operations and has received a buyout offer from a private equity firm, expected to close by mid-2026 [3] Group 3: Investment Sentiment - The buyout offer for Clearwater Analytics includes a "go shop" clause, allowing the company to seek better offers until late January [3] - Despite the potential of Clearwater Analytics as an investment, the fund believes certain AI stocks present greater upside potential and less downside risk [4] - Clearwater Analytics is not among the 40 most popular stocks among hedge funds heading into 2026, with 59 hedge fund portfolios holding the stock at the end of Q4, up from 33 in the previous quarter [4]