| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 11.37% | 3.75% | 3.75% |
The Mairs & Power Small Cap Fund returned 3.75% in Q1 2026, outperforming its benchmarks as small-cap stocks showed improved earnings and outperformed large-cap stocks. The fund benefited from sector allocation, particularly in Information Technology, with strong contributions from Entegris, Plexus, and Cognex. However, escalating conflict in the Middle East disrupted global energy markets, driving oil prices higher and reintroducing inflation risks, with March CPI jumping to 3.3%. The fund added four new positions including Ambarella and APi Group while exiting seven positions due to poor execution or cyclical headwinds. Looking ahead, small-cap stocks continue to show vastly improved earnings growth estimates with 16% expected for the S&P 600. Valuations remain compelling after underperformance, with market rotation away from narrow megacap leadership creating opportunities. The fund maintains its valuation discipline and long-term focus on business quality while navigating the uncertain geopolitical environment.
Small-cap stocks present compelling opportunities with improved earnings growth and attractive valuations after a long period of underperformance, supported by market rotation away from narrow megacap leadership toward more reasonably valued, high-quality businesses.
The outlook for corporate earnings has remained a bright spot and continues to show signs of broadening beyond the large technology companies. While today's environment is not without risk, corporate balance sheets, pricing power, and innovation capacity are quite different than previous eras. The Fund is well positioned to benefit long-term investors, especially if the market further broadens.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 29 2026 | 2026 Q1 | AMBA, APG, CGNX, ENTG, HUBG, HWKN, PLXS, RDNT, SFM, WK | Automation, earnings, energy, inflation, Middle East, semiconductors, small cap, Valuations |
ENTG PLXS CGNX AMBA APG HWKN SFM |
Small-cap fund outperformed in Q1 2026 as the asset class showed improved earnings and rotation away from megacaps. Middle East conflict disrupted energy markets and reignited inflation concerns, but small-cap earnings growth remains strong at 16% expected for S&P 600. Fund maintains disciplined approach targeting high-quality businesses at attractive valuations. |
| Jan 18 2026 | 2025 Q4 | ABT, AIR, BSY, CASY, CVRX, EXAS, INSP, KNF, MEDP, MGPI, NVT, WK | AI, earnings, healthcare, rates, small caps, technology, Valuations | - | Small caps delivered first earnings growth in three years but the Fund underperformed due to healthcare stock selection challenges. With small caps trading at significant discounts while showing 13% earnings growth and benefiting from Fed rate cuts, managers see attractive long-term opportunity despite AI cycle entering higher-risk phase with excessive capital deployment. |
| Oct 24 2025 | 2025 Q3 | AIR, AZEK, CASY, CLFD, HUBG, INSP, JHX, KNF, MEDP, MGPI, NVT, PATK, TREX, WK | AI, earnings, GLP1, infrastructure, small caps, technology, value | PATK | Small cap fund underperformed due to GLP-1 headwinds and construction delays, but sees attractive opportunities as small caps trade at significant discounts despite earnings stabilization. Added positions in Patrick Industries and Trex at compelling valuations. Maintains valuation discipline while AI-driven mega caps reach extreme valuations, positioning for long-term outperformance when market leadership broadens. |
| Jul 18 2025 | 2025 Q2 | AIR, AZEK, CASY, CLFD, HUBG, INSP, JHX, KNF, MEDP, MGPI, NVT, PATK, TREX, WK | AI, healthcare, infrastructure, materials, small caps, technology, valuation |
PATK TREX JHX |
Small cap fund underperformed due to stock selection, with GLP-1 headwinds hitting healthcare holdings and construction slowdowns affecting materials names. However, small caps trade at significant discounts despite earnings stabilization, creating attractive long-term opportunities. Managers maintain valuation discipline in concentrated market, adding selective positions while avoiding expensive momentum plays. |
| May 1 2025 | 2025 Q1 | ALTR, AZEK, BKH, CASY, CGNX, HUBG, JHX, LFUS, LTH, NWE, PLXS, SIEGY, THRM, WK | Automation, small caps, tariffs, Trade Policy, Utilities, valuation | CGNX | Mairs & Power Small Cap Fund fell 11.04% in Q1 2025 on tariff uncertainty and sector rotation, underperforming due to software and automotive holdings while utilities outperformed. Despite trade policy creating stagflation risks, compressed small-cap valuations at 30% discount to large caps present compelling long-term opportunities for quality companies with durable advantages. |
| Dec 31 2024 | 2024 Q4 | ALTR, AZEK, CASY, CLFD, CTLT, CVRX, CWAN, DOC, FUL, JBT, KNF, LFUS, LTH, MCS, MGPI, PIPR, PLXS, THRM, TNC, WTFC | financials, industrials, infrastructure, Manufacturing, small caps, value | - | Small cap fund targeting quality companies at attractive valuations, with small caps trading at 29% discount to S&P 500 despite superior earnings growth estimates. Active portfolio management adding to high-conviction positions while trimming appreciated holdings. Optimistic on small cap rotation potential given historical cycles and improving business fundamentals across portfolio companies. |
| Sep 30 2024 | 2024 Q3 | AZEK, CASY, CFR, CLFD, CTLT, CVRX, DOC, ENTG, JBT, KNF, LTH, MCS, MGPI, PIPR, QCRH, THRM, TNC, TTC, WK, WTFC | banks, Fed, growth, rates, small caps, Valuations | - | Small caps trade at steep discounts despite superior earnings growth prospects, creating compelling opportunities as Fed rate cuts reduce borrowing costs for smaller companies. The fund maintains conviction in quality small cap names with durable advantages while trimming bank exposure due to commercial real estate concerns. |
| Jul 23 2024 | 2024 Q2 | ALRS, ASB, AZEK, CASY, CFR, CLFD, CVRX, GBCI, HUBG, INSP, JBT, KNF, MEDP, MGPI, NVT, PIPR, QCRH, TNC, WK, WTFC | healthcare, interest rates, Regional Banks, small caps, technology, value | - | Small cap fund outperformed benchmark despite challenging environment dominated by large cap concentration. Managers trimmed regional banks on commercial real estate concerns while adding to attractively valued positions. Small caps trade at significant discounts with superior earnings growth prospects. Potential Fed rate cuts could catalyze outperformance by reducing borrowing costs that have pressured smaller companies. |
| Apr 15 2024 | 2024 Q1 | AMZN, AZEK, CASY, CLFD, CTLT, CVRX, DOC, KNF, LFUS, MEDP, META, MGPI, MSFT, NVDA, NVT, PIPR, PLXS, TNC, WK | AI, financials, productivity, small caps, technology, value | - | Small cap fund outperformed by 241bps in Q1 on strong stock selection across sectors. Financials led performance recovery while AI infrastructure and Old Economy names with technology adoption potential drive positioning. Small caps trade at 32% discount to market despite superior earnings growth outlook, creating attractive long-term opportunities for disciplined value investors. |
| Jan 28 2024 | 2023 Q4 | AIR, ALTR, AZEK, CFR, CLFD, DGII, ENTG, INSP, JAMF, KNF, NVT, PIPR, SNBR, THRM | financials, healthcare, industrials, infrastructure, small cap, technology, value | - | Small cap fund underperformed in 2023 due to Consumer Discretionary underweight but maintains conviction in Industrials, Technology, Healthcare, and Financials overweights. Added infrastructure and investment banking exposure while trimming execution-challenged names. Expects value rotation and mid-cap outperformance in 2024 as earnings improve and rates stabilize. Views current volatility as buying opportunity for quality companies. |
| Sep 30 2023 | 2023 Q3 | AIR, AZEK, CASY, CFR, CLFD, DCI, FIBK, GBCI, JAMF, NVT, TTC, WK | AI, Banking, financials, industrials, small cap, technology, value | - | Mairs & Power Small Cap Fund underperformed in Q3 2023 primarily due to bank holdings pressured by rising rates. The fund maintains conviction in quality small caps trading at cycle-low discounts, selectively adding to positions with strong fundamentals and attractive valuations while favoring companies positioned to benefit from AI advancements and evolving labor dynamics. |
| Jun 30 2023 | 2023 Q2 | ALTR, ASB, AZEK, CFR, CLFD, ENTG, ENV, FIBK, GBCI, JAMF, LFUS, NVT, THRM, TTC | AI, Banking, healthcare, industrials, small caps, technology, Valuations | - | Small-cap fund outperformed benchmark despite banking sector headwinds, benefiting from technology and electrification themes. Manager sees attractive valuations with small caps trading at 29% discount to large caps during economic normalization period. Selectively adding to financials at cycle lows while trimming industrials after outperformance, maintaining long-term conviction in quality companies at discounted prices. |
| Feb 2 2023 | 2022 Q4 | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
Small CapsSmall-cap stocks outperformed large-cap stocks in the quarter, showing improved earnings growth with 16% expected for S&P 600 and 54% for Russell 2000. Valuations remain compelling after a long period of underperformance, with market rotation away from narrow megacap leadership creating opportunities. |
Small Cap Earnings Valuations Outperformance Russell 2000 |
SemiconductorsEntegris benefited from spending and expansion across the semiconductor industry with accelerated revenue growth. Ambarella was added as a leader in computer vision semiconductors leveraging growth across IoT, automotive, robotics, and emerging infrastructure applications. |
Semiconductors Computer Vision IoT Automotive Infrastructure | |
AutomationCognex builds machine vision and AI systems for factories and warehouses, benefiting from infrastructure spending on logistics and semiconductor automation. The company experienced a shift from supply cycle recovery. |
Machine Vision AI Factory Automation Logistics Infrastructure | |
OilEscalating conflict in the Middle East disrupted global energy markets, driving oil prices higher and reintroducing inflation risks. The conflict in Iran created upward pressure on energy costs, though the US is now a net exporter which reduces some impact. |
Oil Middle East Iran Energy Prices Inflation | |
InflationMarch CPI jumped to 3.3%, the highest since May 2024, driven by energy disruption from Middle East conflict. Rising energy and commodity prices pose a real threat to the inflation outlook, complicating Fed policy decisions. |
CPI Energy Commodities Fed Policy Economic Outlook | |
| 2025 Q4 |
AIAI and increasing market concentration took center stage in 2025, driving investment in technology infrastructure. McKinsey projects $7 trillion in capital expenditures needed worldwide by 2030 to build AI infrastructure. The managers believe they are entering a transition period for AI with signals that the cycle is moving into a higher risk phase given the flood of capital and unusual financing structures. |
Infrastructure Data Centers Technology Valuations Capital Expenditures |
Small CapsSmall cap companies are showing their first signs of earnings growth recovery after three years of contraction, posting 13% growth in 2025. Lower interest rates, reduced corporate tax burdens, and regulatory relief could offer further support. Small cap stocks are still trading at a significant discount to the S&P 500, presenting an attractive opportunity for long-term investors. |
Earnings Growth Valuations Interest Rates Recovery | |
EarningsThe consistency of corporate earnings is a major reason for continued stock market strength. The S&P 500 is projected to deliver 12% earnings growth in 2025. Small cap companies are showing signs of growth after three years of contraction, with 15% growth projected for the S&P 600 in 2026. |
Growth Corporate Performance Projections | |
RatesThe Federal Reserve began cutting rates in the fourth quarter of 2025, with the process expected to accelerate and further cool in 2026. Lower interest rates should provide a tailwind to profitability for smaller companies, as it typically takes around a year to feel the effects from rate changes. |
Federal Reserve Monetary Policy Interest Rates Small Business | |
| 2025 Q3 |
AIAI-related stocks in the S&P 500 have accounted for around 75% of market returns since ChatGPT's 2022 launch. Investment in infrastructure to power, cool, and connect a data-intensive economy shows durable momentum. The AI and data-center buildout is fueling a multi-year capital expenditure cycle extending beyond semiconductors to power generation, transmission, distribution, nuclear capacity, and thermal management. |
Data Centers Infrastructure Spending Semiconductors Power Equipment Nuclear |
Small CapsSmall cap stocks are trading at a significant discount despite earnings growth estimate stabilization. The Russell 2000 is trading at a notable discount to the S&P 500, presenting an attractive opportunity for long-term investors. Smaller cap stocks edged out large caps during the third quarter as improved conditions are being appreciated by investors. |
Value Earnings Russell 2000 Discount Opportunity | |
GLP1GLP-1 usage increases created challenges for portfolio holdings. Inspire Medical had difficulties due to GLP-1 usage increases affecting their business. MGP Ingredients was also impacted by GLP-1s as the company continues to work through excess inventory, particularly in bourbon, amid shifts in consumer consumption levels. |
Medical Devices Pharmaceuticals Consumer Behavior Alcohol Healthcare | |
| 2025 Q2 |
AIAI-related stocks in the S&P 500 have accounted for around 75 percent of the market's return since ChatGPT's 2022 launch. Roughly 40 percent of capital expenditures are linked to AI. Investment in infrastructure required to power, cool, and connect a more data-intensive economy continues, with the AI and data-center buildout fueling a multi-year capital-expenditure cycle. |
Data Centers Infrastructure Semiconductors Capital Expenditures Technology |
Small CapsSmall cap stocks are trading at a significant discount despite signs of earnings growth estimate stabilization. The Russell 2000 is trading at a notable discount to the S&P 500, which presents an attractive opportunity for long-term investors. Smaller cap stocks edged out large caps during the third quarter. |
Valuation Discount Earnings Russell 2000 Opportunity | |
GLP1GLP-1 usage increases have created challenges for certain holdings. Inspire Medical had difficulties due to GLP-1 usage increases, and MGP Ingredients was also impacted by GLP-1s as the company works through excess inventory in bourbon and shifts in consumer consumption levels. |
Healthcare Pharmaceuticals Consumer Medical Devices Alcohol | |
| 2025 Q1 |
Trade PolicyTariff uncertainty in March caused equity declines while prospects of prolonged trade war with China raise concerns about reigniting inflation and slowing economic growth. Tariffs are viewed as a tax that businesses will likely pass to consumers, creating upward pressure on prices and potential stagflation. |
Tariffs China Inflation Stagflation Supply Chains |
Small CapsThe S&P Small Cap 600 trades at 14.3 times forward earnings, a 30% discount to the S&P 500 and well below its 10-year average of 16.7. This valuation compression represents an attractive entry point for long-term focused investors in high-quality small-cap companies. |
Valuation Discount Russell 2000 Opportunity | |
AutomationManagement teams highlight efficiencies gained from technology adoption, particularly automation, and reference the use of new technologies like AI. The fund initiated a position in Cognex Corporation, a provider of computer vision systems for industrial automation with embedded AI capabilities. |
AI Industrial Computer Vision Efficiency | |
| 2024 Q4 |
Small CapsSmall cap stocks trade at a 29% discount to the S&P 500 despite earnings growth estimates outpacing large caps. The fund sees great opportunities in small companies with above-average growth prospects trading at favorable valuations. Management notes potential for small caps to narrow the gap with large caps given less regulation and increased small business confidence. |
Valuation Discount Earnings Growth Opportunities |
IndustrialsThe fund holds positions in industrial companies like Knife River benefiting from infrastructure projects driving revenue growth and margin expansion, and John Bean Technologies experiencing a capital expenditure cycle in the protein industry. Manufacturing sector shows contraction while services sector remains strong. |
Infrastructure Manufacturing Construction Equipment Automation | |
FinancialsPiper Sandler, a mid-market investment bank providing advisory services for mergers and acquisitions, was the largest contributor to performance. Small cap banks are showing improved profit growth estimates for 2025 as an exception to broader small cap earnings revisions. |
Investment Banking Regional Banks Advisory M&A | |
| 2024 Q3 |
Small CapsSmall cap stocks currently trade at a 29% discount to the broader market and 6% discount to their long-term average, despite analysts expecting small cap earnings growth to outpace large caps. The fund sees great opportunities in small companies with above-average growth prospects at favorable valuations. Lower interest rates should disproportionately benefit smaller companies over time. |
Valuation Discount Outperformance Growth Rates |
RatesThe Federal Reserve cut rates by 50 basis points in September, which should ease conditions for smaller businesses that typically issue variable rate debt. Lower rates could boost earnings growth for smaller companies and make it easier for them to plan and execute growth strategies. The fund expects this to aid operating visibility for small companies. |
Fed Variable Debt Earnings Visibility | |
Regional BanksThe fund trimmed bank holdings including Wintrust, Cullen-Frost, and QCR Holdings as bank stock valuations rebounded. Management remains guarded on potential rising credit expenses related to commercial real estate lending. Despite positive performance from the Financials sector, they reduced these holdings due to credit concerns. |
Valuations Credit Commercial Real Estate Expenses | |
| 2024 Q2 |
Small CapsSmall cap stocks currently trade at a 40% discount to the broader market as measured by the S&P 500, a 13% discount to the S&P 500 Equal-Weighted Index, and at a 15% discount to small cap stocks' long-term average. Analysts' earnings growth estimates for small cap companies outpace large cap companies for the next several years. The fund continues to see great opportunities to invest in small companies with above-average growth prospects that are trading at favorable valuations. |
Valuation Discount Earnings Growth Opportunities |
Regional BanksThe fund trimmed regional bank holdings including Wintrust, QCR Holdings, Associated Bancorp, Cullen-Frost, Glacier Bancorp, and Alerus. While valuations have rebounded somewhat, the managers are guarded on potential rising credit expenses related to commercial real estate lending. Glacier Bancorp was impacted by volatile interest rates and broader concerns regarding commercial real estate trends. |
Credit Commercial Real Estate Valuations Interest Rates | |
RatesCurrent high interest rates have elevated borrowing costs for smaller companies, cutting into their earnings and explaining weaker market performance. Interest rate cuts could boost earnings growth for smaller companies, leading to better performance for all stocks and sectors. The Fed's progress on inflation increases the likelihood of rate cuts in coming months. |
Interest Rates Borrowing Costs Fed Inflation | |
| 2024 Q1 |
Small CapsSmall cap stocks continue to trade at a significant discount to their larger cap peers, with small caps trading at a 32% discount to the broader market as measured by the S&P 500, and at a 14% discount to small cap stock's average as measured by the S&P 600. This is despite the average of analysts' earnings growth estimates for small cap companies outpacing large cap companies for the next several years. The fund sees great opportunities to invest in small companies with above-average growth prospects that are trading at favorable valuations. |
Valuation Discount Growth Opportunities |
AIAI and its exciting transformative possibilities have driven the market in the last year. The fund believes there's potential for a more durable AI-powered productivity boom, as AI could help companies in numerous industries relieve labor shortages, boost capital utilization, and make more efficient use of raw materials and supply chains. The fund has made investments in companies serving as pick and shovel providers of AI that are crafting tools for businesses of all kinds to utilize. |
Productivity Technology Infrastructure Tools | |
FinancialsThe Financials sector was the leading contribution to both relative outperformance and stock selection during the quarter, where there was particular stress and volatility at this time last year. The fund added to Minnesota-based midmarket investment bank Piper Sandler, which is benefiting from years of investing in people and relationships which should continue to aid the company as mergers & acquisitions activity inevitably reopens. |
Banking Recovery M&A Investment | |
| 2023 Q4 |
Infrastructure SpendingIndustrial companies are positioned to benefit from significant multi-year state and federal government infrastructure projects which will likely play out in the coming decade. Knife River is viewed as ideally positioned to address multiple significant state and federal infrastructure stimulus programs spanning many years. |
Infrastructure Government Construction Stimulus |
AIThe advent of AI is seen as a secular tailwind for the economy and enabling companies. Altair Engineering has performed well due to proximity to generative design and the related halo effect from AI, showing growth, share gains, and margin expansion. |
Artificial Intelligence Software Technology Secular | |
Semiconductor CycleInventory destocking in end markets like PCs, cell phones, and communications equipment drove disappointing fundamentals and stock underperformance. The near-term headwinds driven by inventory destocking are viewed as temporary, with these patterns having sharply reversed in prior cycles. |
Semiconductors Inventory Cycle Technology | |
GLP1Recent significant excitement around repurposing diabetes drugs to treat obesity has fueled fear of disruption in healthcare and life sciences focused on obesity symptoms. This has created volatility in healthcare stocks as safety, efficacy, and reimbursement policies are studied. |
Obesity Diabetes Healthcare Disruption | |
| 2023 Q3 |
AIThe fund views artificial intelligence as crucial for creating workforce efficiencies amid changing labor market dynamics. They see investment opportunities in technology companies utilizing AI to create efficiencies in the workforce. The fund favors companies likely to benefit from recent advancements in AI. |
Artificial Intelligence Workforce Efficiency Technology Automation Labor |
Regional BanksThe fund holds six bank stocks that faced pressure from rising interest rates competing for deposits and forcing banks to raise rates, pressuring margins. Despite current challenges, they believe these banks have track records for weathering cycles and view valuations as attractive at near cycle lows. |
Banking Interest Rates Deposits Margins Valuations | |
Small CapsSmall cap companies are currently trading at a discount, which often occurs during this stage of an economic cycle when excess inventories are being reduced and inflation pressures begin to wane. The fund believes their long-term approach is well-suited for current conditions where many high-quality companies' shares are trading at a discount. |
Small Cap Discount Valuations Economic Cycle Quality | |
| 2023 Q2 |
AIThe manager discusses artificial intelligence as a key driver of Technology sector performance, noting investor excitement over AI has boosted large tech names like Alphabet, Amazon, Microsoft, and Nvidia. They maintain a favorable long-term view on Technology given growth in AI, automation, and cloud computing but are cautious near-term due to over-extended valuations. |
Technology Automation Cloud Valuations Growth |
Small CapsThe fund focuses exclusively on small-cap investing, noting that small caps traded at a 29% discount to the S&P 500 and 21% discount to their 10-year average as of quarter-end. The manager believes these valuation discounts present opportunities for long-term investors during turbulent economic cycles. |
Valuations Discount Opportunity Cycle Long-term | |
Regional BanksBanking sector performance was a meaningful drag on relative performance year-to-date, with rising interest rates pressuring bank margins as they compete for deposits. The manager selectively added to two bank holdings based on positive fundamentals and compelling valuations at cycle-low levels. |
Interest Rates Margins Deposits Fundamentals Cycle |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Apr 29, 2026 | Fund Letters | Mairs & Power - Small Cap Fund | ENTG | Entegris, Inc. | Semiconductor Equipment & Materials | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | advanced materials, Capital equipment, Contamination Control, semiconductors, technology infrastructure | Login |
| Apr 29, 2026 | Fund Letters | Mairs & Power - Small Cap Fund | PLXS | Plexus Corp. | Electronic Components | Electronic Manufacturing Services | Bull | NASDAQ | Electronic Manufacturing, Manufacturing Services, Outsourced Engineering, Regulated Industries, supply chain | Login |
| Apr 29, 2026 | Fund Letters | Mairs & Power - Small Cap Fund | CGNX | Cognex Corp. | Scientific & Technical Instruments | Electronic Equipment, Instruments & Components | Bull | NASDAQ | Artificial Intelligence, Factory Automation, Industrial automation, Logistics Infrastructure, Machine vision | Login |
| Apr 29, 2026 | Fund Letters | Mairs & Power - Small Cap Fund | AMBA | Ambarella, Inc. | Semiconductor Equipment & Materials | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | automotive technology, Computer Vision, Internet of Things, robotics, semiconductors | Login |
| Apr 29, 2026 | Fund Letters | Mairs & Power - Small Cap Fund | APG | APi Group Corp. | Engineering & Construction | Commercial Services & Supplies | Bull | New York Stock Exchange | Fire Safety, Life Safety, recurring revenue, regulatory compliance, Service Business | Login |
| Apr 29, 2026 | Fund Letters | Mairs & Power - Small Cap Fund | HWKN | Hawkins, Inc. | Specialty Chemicals | Chemicals | Bull | NASDAQ | buy-and-build strategy, chemical distribution, margin expansion, specialty chemicals, water treatment | Login |
| Apr 29, 2026 | Fund Letters | Mairs & Power - Small Cap Fund | SFM | Sprouts Farmers Market, Inc. | Grocery Stores | Food & Staples Retailing | Bull | NASDAQ | Health-Conscious Consumers, Natural Foods, Organic Foods, Specialty Grocery, store expansion | Login |
| Oct 24, 2025 | Fund Letters | Mike C. Marzolf | PATK | Patrick Industries Inc. | Consumer Discretionary | Building Products | Bull | NASDAQ | Housing, manufacturing, Outsourcing, recovery, RV, tariffs, valuation | Login |
| Sep 30, 2025 | Fund Letters | Mairs & Power - Small Cap Fund | PATK | Patrick Industries | Consumer Discretionary | Leisure Products | Bull | NASDAQ | Components, construction, Equity, Housing, Manufacturer, Marine, materials, Outsourcing, RV | Login |
| Sep 30, 2025 | Fund Letters | Mairs & Power - Small Cap Fund | TREX | Trex Company, Inc. | Materials | Building Products | Bull | NYSE | Brand, Building Products, Composite, Decking, Equity, Housing, Recycled Materials, Secular Shift | Login |
| Sep 30, 2025 | Fund Letters | Mairs & Power - Small Cap Fund | JHX | James Hardie Industries | Materials | Building Products | Bull | NYSE | acquisition, Building Solutions, construction, cross-selling, Equity, fiber cement, innovation, Siding | Login |
| Mar 31, 2025 | Fund Letters | Mairs & Power - Small Cap Fund | CGNX | Cognex Corporation | Information Technology | Electronic Equipment, Instruments & Components | Bull | NASDAQ | AI technology, automotive, Computer Vision, healthcare, Industrial automation, Logistics, manufacturing, Semiconductor, technology | Login |
| TICKER | COMMENTARY |
|---|---|
| ENTG | Entegris, which provides advanced materials, contamination control, and handling systems, is benefitting from spending and expansion across the semiconductor industry. The company posted better than expected results in the fourth quarter and experienced accelerated revenue growth in the first quarter. |
| PLXS | Plexus, based in Wisconsin, helps Original Equipment Manufacturers design, build, and support complex electronic products by acting as an outsourced engineering, supply-chain, and manufacturing partner, particularly in highly regulated and technically demanding markets. The company's differentiated and all-encompassing product model drove market share gains and record sales. |
| CGNX | Cognex builds the eyes and brain automating systems and processes, utilizing machine vision and AI to help factories, warehouses, and other industrial operations inspect, identify, measure, and automate with high accuracy. The company has experienced a shift from supply cycle recovery and has benefitted from the increase in infrastructure spending on logistics and semiconductor automation. |
| WK | Workiva, which provides cloud-based collaboration and reporting software, has been swept up in much of the selloff in the software industry as well as slower-than-expected ESG adoption and rising competitive pressure from large platforms (e.g., Microsoft), which could compress growth if ESG demand slows further. The company's niche is still a differentiator with growth, rising margins, and high retention, but we are keeping an eye on industry trends related to the company. |
| RDNT | RadNet, one of the largest providers of outpatient diagnostic imaging services, had a difficult quarter as persistent labor cost inflation pressured margins as they work to offset those costs via artificial intelligence (AI) adoption, as well as some concerns about the impact of rising helium prices due to the war in Iran. However, the company still stands to benefit from shifts in diagnostic imaging to outpatient facilities. |
| HUBG | Hub Group's recent underperformance is driven by an accounting restatement combined with a prolonged recession in the transportation industry, characterized by excess capacity, weak pricing, and cautious shippers. That has weighed on earnings and investor confidence despite operational productivity gains. The company still has a scale advantage and an attractive valuation. |
| AMBA | Ambarella, headquartered in California, is a leader in computer vision semiconductors, leveraging its portfolio to drive growth across Internet of Things (IoT), automotive, robotics, and emerging infrastructure applications. |
| APG | APi Group, based in New Brighton, Minnesota, is a leading provider of fire and life safety services with a recurring, inspections-first business model, benefiting from regulatory tailwinds, disciplined M&A, and service-driven margin expansion. |
| HWKN | Hawkins, based in Roseville, Minnesota, is a high-quality compounder transitioning from commodity chemical distribution to a higher-margin, value-added water treatment platform through a disciplined buy-and-build strategy. |
| SFM | Sprouts Farmers Market is a specialty grocer that focuses on fresh, natural, and organic foods that appeal to health-conscious consumers at value-oriented prices. We are excited about the company's potential for long-term growth driven by steady new store expansion, improving unit economics, and disciplined capital allocation. |
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