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 United Rentals, Inc. (NYSE:URI). United Rentals, Inc. (NYSE:URI) is a leading equipment rental company headquartered in Stamford, Connecticut. On March 20, 2026, United Rentals, Inc. (NYSE:URI) stock closed at $710.47 per share. One-month return of United Rentals, Inc. (NYSE:URI) was -19.51%, and its shares gained 9.80% over the past 52 weeks. United Rentals, Inc. (NYSE:URI) has a market capitalization of $45.207 billion.

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

"United Rentals, Inc. (NYSE:URI), the largest equipment rental company in North America, offers construction, industrial, and specialty equipment rentals. The company reported a disappointing quarter that was impacted by weaker construction markets. Profitability felt pressure as fleet equipment was repositioned for large-scale projects. We believe construction market conditions could improve in 2026, driven by reshoring and manufacturing projects due in part to incentives in the One Big Beautiful Bill Act, support from data center construction, and power generation. As activity picks up, margins also should improve. We also believe the stock appears attractive at current prices."

United Rentals, Inc. (NYSE:URI) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 74 hedge fund portfolios held United Rentals, Inc. (NYSE:URI) at the end of the fourth quarter, up from 63 in the previous quarter. In Q4 2025, United Rentals, Inc.'s (NYSE:URI) revenue grew by 2.8% year-over-year to $4.2 billion. While we acknowledge the potential of United Rentals, Inc. (NYSE:URI) 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 United Rentals, Inc. (NYSE:URI) and shared the list of stocks discussed by Jim Cramer. 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.