Core Insights - Carillon Tower Advisers released its third-quarter 2025 investor letter for the Carillon Eagle Growth & Income Fund, highlighting a 13.7% year-to-date return for the S&P 500 Index, driven by growth and momentum factors [1] - The market's current performance is heavily reliant on AI deployment, indicating potential vulnerabilities if this trend falters [1] Company Highlights - Corning Incorporated (NYSE:GLW) was noted for its strong performance, with a one-month return of 1.51% and a remarkable 86.25% increase in value over the past 52 weeks, closing at $87.93 per share with a market capitalization of $75.388 billion [2] - Corning's outperformance is attributed to robust second-quarter earnings and positive forward guidance, particularly in fiber optics and related technologies essential for AI infrastructure development [3] - In the third quarter of 2025, Corning's core sales grew 14% year-over-year, reaching $4.27 billion, reflecting strong market demand [4]

Core Insights - The discussion revolves around concerns of a potential bubble in the AI sector and the implications for investment strategies, particularly regarding diversification and risk management [3][4][12]. Investment Strategies - Investors are advised to diversify their portfolios beyond technology companies to mitigate risks associated with potential market bubbles [3][6][19]. - A contrarian approach is suggested, where bullish sentiment on AI should lead to underweighting technology in equity portfolios over the next five to seven years [19][22]. Market Dynamics - The AI sector is characterized by a circular funding model where various AI players fund each other, raising concerns about sustainability and potential overvaluation [2][9]. - Historical technology cycles indicate that while tech companies may initially outperform, non-tech companies could benefit more significantly as technology spreads and efficiency gains are realized [22][24]. Economic Implications - The potential for AI to enhance productivity could lead to improved operating margins and earnings per share for companies that effectively harness this technology [9][10]. - However, if AI does not significantly improve productivity, investments in tech-heavy indices like the S&P 500 may yield poor returns due to overvaluation concerns [17][22]. Global Perspective - There is a recognition that not all markets are correlated, and diversification into international markets may provide opportunities for better returns, especially when the US market underperforms [24][25]. - The analysis suggests that regions with less technological baggage, like certain areas in Europe and China, may experience different growth trajectories due to their unique circumstances [16][24]. Historical Context - The current sentiment mirrors the telecom boom and bust of the early 2000s, where significant capital expenditure did not guarantee immediate returns [15][26]. - The analysis of past market cycles emphasizes the importance of understanding the long-term implications of technology adoption on investment returns [18][22].

Market Overview - The third quarter of 2025 was characterized by exuberant markets and rising speculation, with major U.S. equity indices reaching new highs despite stretched valuations [2][3] - The enthusiasm surrounding artificial intelligence (AI) and cryptocurrencies significantly influenced risk assets, leading to concerns about potential bubble-like conditions [2][3][4] - AI-related companies saw rapid valuation increases as investors anticipated AI's transformative potential across various industries [3][4] AI and Cryptocurrency Trends - AI-linked companies propelled the S&P 500 and Nasdaq to all-time highs, reflecting a strong investor appetite for AI-related investments [3] - Bitcoin surpassed the $100,000 mark and approached $120,000 by late Q3, contributing to a broader crypto market valuation of approximately $3.9 trillion [5] - The rapid inflows into crypto markets exemplify speculative behavior, raising concerns about volatility and the potential for sudden reversals [5][6] Investment Strategy - The company emphasizes a disciplined investment approach, focusing on genuine innovation while being cautious of extreme market pricing [2][6] - Historical precedents, such as the late-1990s tech boom, highlight the risks associated with "priced for perfection" scenarios, particularly in AI-related stocks [4][6] - The company aims to separate durable economic fundamentals from speculative narratives, maintaining a balanced stance amid market hype [6] Corning's Position - Corning has benefited from increased demand for fiber optics driven by AI, with its stock rising approximately 75% year-to-date [7] - The company is compared to its past during the dot-com boom, where it experienced extraordinary demand and soaring valuations, raising caution about current market conditions [8][9] - Corning's current valuation is near 36x earnings, which, while not at 2000 extremes, still raises concerns about sustainability given historical returns on equity [13] Portfolio Adjustments - The company exited positions in Donnelley Financial, Lazard, and Capstone Copper, while initiating a new holding in Topgolf Callaway Brands [19] - The decision to exit Donnelley Financial was based on concerns over market share loss to competitors, while Lazard's stock approached fair value [20][22] - Topgolf Callaway Brands was initiated due to its straightforward business model and potential for value realization through a possible sale [24][29]

Financial Performance & Outlook - Uniti is targeting strategic recurring revenue growth of 4% to 6% in 2025[8] - Uniti is targeting strategic recurring Adjusted EBITDA growth of 8% to 10% in 2025[8] - Strategic Fiber Revenue 2025 MRR Growth Outlook is ~$365 million to $370 million[10] - Uniti Leasing revenue is projected to be between $897 million and $907 million in 2025[66] - Uniti Fiber revenue is projected to be between $299 million and $309 million in 2025[66] Capital & Investment - Net Success-Based Capital Intensity is estimated to be 20% - 25% in 2025[15] - Initial Aggregate Cash Yields on Major Wireless Anchor Builds of ~7%, results in Combined Anchor and Lease-Up Cash Yield of ~27%[23] - Uniti issued $589 million Inaugural ABS Facility at Fixed Rate of ~6.5% in January 2025[47] Merger & Strategy - The merger with Windstream is expected to close in 3Q25[8] - Kinetic is expected to pass an incremental 325K homes with fiber in 2025, reaching ~2 million homes in total[8] - Strategic Fiber Infrastructure Revenue is Expected to Grow ~5% in 2025[52]

Core Points - Crown Electrokinetics Corp. announced the resignation of Andrew "Andy" Mayer, President of Construction, effective March 25, 2025 [1] - CEO Doug Croxall expressed gratitude for Mayer's contributions and emphasized the company's focus on executing its diversified business strategy [2] - Crown is committed to delivering long-term value through innovation in its critical infrastructure businesses, including Smart Windows, Fiber Optics, Water Service Lines, and Water Intake Solutions [2] Company Overview - Crown Electrokinetics is an innovative infrastructure solutions provider dedicated to benefiting communities and the environment [3] - The company operates across multiple sectors, including Smart Windows and Construction, and aims to redefine industry standards with cutting-edge solutions [3]