AeroVironment (AVAV) Rebounded in Q2

Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Small Cap Growth Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, equity markets experienced one of their most turbulent periods in recent history. Small-cap stocks managed a rebound in the quarter, recovering from declines at the beginning of the year. Among style indexes, the Russell 2000® Growth Index led the way with an 11.96% gain, outpacing the Russell 2000® Value Index, which rose by 4.96%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, the Carillon Eagle Small Cap Growth Fund highlighted stocks such as AeroVironment, Inc. (NASDAQ:AVAV). AeroVironment, Inc. (NASDAQ:AVAV) develops and supports a portfolio of robotic systems and related services. AeroVironment, Inc. (NASDAQ:AVAV) stock fell 10.40% over the past month, while its shares appreciated 25.60% in value over the last 52 weeks. On August 19, 2025, AeroVironment, Inc. (NASDAQ:AVAV) stock closed at $235.18 per share, with a market capitalization of $11.6 billion.

Carillon Eagle Small Cap Growth Fund stated the following regarding AeroVironment, Inc. (NASDAQ:AVAV) in its second quarter 2025 investor letter:

"AeroVironment, Inc. (NASDAQ:AVAV) is a defense technology provider of integrated capabilities across air, land, sea, space, and cyberspace. Following several quarters of choppy results that caused investors to question the company’s future growth prospects after a swift decline in the revenue contribution from Ukraine’s war with Russia, the shares rebounded largely on the prospects of increased global defense spending in a number of next-generation product areas that the company provides. After a period of some doubt, the company also closed what we view as a transformational acquisition of BlueHalo."

AeroVironment, Inc. (NASDAQ:AVAV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held AeroVironment, Inc. (NASDAQ:AVAV) at the end of the first quarter, which was 24 in the previous quarter. While we acknowledge the potential of AeroVironment, Inc. (NASDAQ:AVAV) 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 AeroVironment, Inc. (NASDAQ:AVAV) and shared the list of best Russell 2000 stocks to buy. In addition, please check out our hedge fund investor letters Q2 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.