The curated database of hedge funds that publish investor letters. Research by geography, strategy, and schools of thought.
| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
As of Oct 19, 2026
The Mairs & Power Small Cap Fund recorded a net-of-fees return of -11.42% for the third quarter of 2026, trailing the Russell 2000 Total Return Index benchmark return of -7.23% and the S&P SmallCap 600 TR return of -6.93%. Year-to-date through September 30, 2026, the Fund gained 10.98% net of fees compared to 13.71% for the Russell 2000 TR and 14.08% for the S&P SmallCap 600 TR. Relative underperformance over the first nine months stemmed primarily from stock selection, which offset favorable sector allocation as small-cap equities retraced first-half advances amid rate pressures. The macroeconomic environment was characterized by resilient broader economic growth accompanied by persistent inflationary headwinds, driven by geopolitical conflict with Iran and oil trading near $100 per barrel. Long-term interest rates ascended, with the ten-year Treasury yield ending at 5.25% following a Federal Reserve rate hike. While massive capital investment into artificial intelligence infrastructure continues toward an anticipated $1 trillion by 2027, the strategy maintains a conservative stance against cyclical hardware commoditization while anticipating a cyclical recovery in small-cap corporate earnings after two years of contraction. Key positive performance drivers year-to-date included technology and industrial compounders Entegris, Cognex, Plexus, Littelfuse, and nVent Electric, which benefited from robust AI-related infrastructure and automation demand. Performance detractors included Patrick Industries, JBT Marel, Knife River, Hub Group, and Workiva, pressured by higher interest rates and end-market uncertainty. Portfolio activity featured the initiation of a 2.02% position in diagnostic testing leader Labcorp Holdings, while executing zero portfolio exits during the quarter.
Identify promising smaller companies early, invest at reasonable valuations, and allow their earnings power and durable competitive advantages to compound over long horizons.
The outlook for small-cap stocks anticipates meaningful earnings growth following two years of contraction, supported by compelling relative valuations for disciplined long-term investors.
Neutral / Balanced
Market Conviction
Growth Outlook
Risk Appetite
Capital Deployment
Forward Guidance
Language Signal
Perceived Risk
Opportunity Density
Time Horizon
Top Conviction Themes
Key Catalysts
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