Bristol Gate Capital Partners, an investment management company, published its Q3 2025 investor letter for the “US Equity Strategy”. A copy of the letter can be downloaded here. The strategy underperformed the benchmark, the S&P 500® Total Return Index, this quarter, but still surpassed the index in dividend growth. The underperformance was due to a lack of significant exposure to the AI/TMT sector or the Value sector, which provides advantages stemming from the Federal Reserve's rate cut. The portfolio ret ...

Core Insights - Carillon Tower Advisers released its third-quarter 2025 investor letter for the Carillon Eagle Growth & Income Fund, highlighting the S&P 500 Index's year-to-date return of 13.7% and emphasizing the reliance on AI deployment as a key market driver [1] - The fund's top holdings include Carrier Global Corporation, which has shown a one-month return of -0.42% and a 52-week gain of 25.43% [2] - Carrier Global Corporation's stock underperformed in the third quarter due to lowered guidance in its residential HVAC segment, reflecting softer demand trends and dealer destocking [3] Company Performance - Carrier Global Corporation reported sales of $5.6 billion in the third quarter of 2025, with a market capitalization of $47.981 billion as of November 11, 2025 [4] - The company's stock closed at $56.97 per share, indicating a significant increase over the past year despite recent underperformance [2][4] - The company is not among the top 30 most popular stocks among hedge funds, with 53 hedge fund portfolios holding its shares at the end of the second quarter [4] Market Context - The current market performance is heavily influenced by growth and momentum, particularly in AI-related stocks, which poses a risk if the AI deployment narrative weakens [1] - The reset in Carrier's residential HVAC guidance has overshadowed stable results in its commercial HVAC and aftermarket segments, raising concerns about near-term earnings [3] - There is a belief that certain AI stocks may offer greater upside potential compared to Carrier Global Corporation, suggesting a shift in investment focus [4]