Carillon Tower Advisers, an investment management company, released its fourth-quarter 2025 investor letter for the “Carillon Scout Mid Cap Fund”. A copy of the letter can be downloaded here. Major U.S. equity indices delivered positive returns in the fourth quarter, while the Russell Midcap® Index return lagged with nominal positive gains. Strong corporate earnings revisions and lower short-term interest rates supported U.S. market returns. Investors’ focus on an optimistic 2026, and consensus outperformed the market amid long-term government shutdowns. High sector return dispersion was observed in the Russell Midcap Index, with healthcare, materials, and IT leading. However, investors’ bias towards higher beta and more cyclical stocks led Communication services, real estate, and utilities to lag in the quarter.  The fund expects the Midcap equities to trade higher in 2026, supported by broader market involvement, though this view aligns with consensus. U.S. market index earnings are projected to grow significantly in 2026 despite price-to-earnings ratios being higher than historical averages.  Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Carillon Scout Mid Cap Fund highlighted stocks like Coupang, Inc. (NYSE:CPNG). Coupang, Inc. (NYSE:CPNG) is a Korean technology and e-commerce platform that operates through Product Commerce and Developing Offerings segments. On March 20, 2026, Coupang, Inc. (NYSE:CPNG) stock closed at $18.83 per share. One-month return of Coupang, Inc. (NYSE:CPNG) was 1.35%, and its shares lost 20.18% over the past 52 weeks. Coupang, Inc. (NYSE:CPNG) has a market capitalization of $34.42 billion.

Carillon Scout Mid Cap Fund stated the following regarding Coupang, Inc. (NYSE:CPNG) in its fourth quarter 2025 investor letter:

"Coupang, Inc. (NYSE:CPNG) is a South Korean e-commerce leader, often called the “Amazon of Korea,” that provides online retail, food delivery, video streaming, and financial payment services. In November 2025, Coupang disclosed a large cybersecurity breach affecting tens of millions of customer records. South Korean authorities raided Coupang’s headquarters, and the CEO of its Korean subsidiary resigned over the incident. This triggered regulatory risk, potential fines, and reputational concerns, which hurt the stock, though it was later discovered that the breach impacted fewer customers than originally reported. We expect Coupang to recover fully from the breach."

Coupang, Inc. (NYSE:CPNG) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 94 hedge fund portfolios held Coupang, Inc. (NYSE:CPNG) at the end of the fourth quarter, up from 83 in the previous quarter.  While we acknowledge the potential of Coupang, Inc. (NYSE:CPNG) 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.

In another article, we covered Coupang, Inc. (NYSE:CPNG) and shared the list of best Korean stocks to buy. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.