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 |
|---|---|---|---|---|---|---|
The Mairs & Power Fund focuses on constructing a portfolio of high-quality, durable businesses with strong competitive advantages, prudent balance sheets, and attractive valuations to achieve long-term compounding. During the first half of 2026, the fund returned 9.20%, trailing its S&P 500 benchmark but performing in-line with peers. While sector allocation—particularly an overweight in industrials—benefited results, stock selection in the information technology sector dragged on performance. The market has been heavily driven by high-momentum, speculative hardware players in the artificial intelligence build-out. Rather than chasing these cyclical peaks, the fund remains disciplined, focusing on downstream beneficiaries of AI data center growth and high-quality software names hit by displacement fears. Key risks include sticky energy-driven inflation and the potential for a pullback in technology capital expenditures if AI monetization fails to meet high expectations. Conversely, rising nonfarm productivity remains a vital macro tailwind.
Investing in high-quality, durable businesses with sustainable competitive advantages, prudent balance-sheet management, and capable management teams at attractive valuations to deliver long-term compounding.
The manager remains disciplined during times of ambiguity, emphasizing that the transition of AI spending from a 'land grab' build-out to monetization is a critical wildcard. In the economy, persistent inflation will keep pressure on the Fed to hold rates higher for longer, but productivity improvements and strong corporate balance sheets provide a solid cushion. The fund aims to mitigate downside risk by holding durable, reasonably valued downstream AI beneficiaries and software names rather than attempting to time market cycles.
As of Jun 30, 2026
Portfolio Manager and primary investment lead for MPGFX Commentary.
Lead Portfolio Manager
Moderate Conviction Bullish
Market Conviction
The fund displays moderate-to-high conviction (0.65) by highlighting core long-term holdings like Microsoft (7.88% of net assets) and NVIDIA (9.35% of net assets), while presenting detailed fundamental theses for newly initiated positions.
Growth Outlook
The manager has a constructive yet balanced view (0.60) of the market, noting that despite persistent inflation, higher interest rates, and geopolitical conflicts, corporate earnings growth is broadening and underlying fundamentals appear remarkably sturdy.
Risk Appetite
The fund exhibits a balanced risk appetite (0.50), intentionally avoiding highly speculative, high-momentum AI hardware and memory stocks in favor of durable downstream beneficiaries and defensive compounders with strong balance sheets.
Capital Deployment
Capital deployment is rated at 0.65, reflecting the deliberate initiation of three new equity positions (Bentley Systems, Arthur J. Gallagher, and CME Group) during the quarter, indicating active deployment of capital into market dislocations.
Forward Guidance
The manager shows a moderate bias toward action (0.65), actively searching for valuation dislocations in beaten-up software names and starting new positions in companies like Bentley Systems, Arthur J. Gallagher, and CME Group.
Language Signal
The linguistic signal is slightly positive (0.60) as the letter frequently references robust earnings expansion, attractive valuations, and compelling dislocations, while systematically addressing risks like sticky inflation and market volatility.
Perceived Risk
Perceived risk is scored at 0.65 due to the extensive analysis of macro risks, including sticky inflation, Federal Reserve policy wildcards under new leadership, and the critical transition of AI capital expenditures from build-out to monetization.
Opportunity Density
Opportunity density is rated at 0.60, representing a selective environment where the manager finds compelling valuation dislocations in software and other sectors hit by broad displacement fears, rather than an all-inclusive market rally.
Time Horizon
The fund’s investment horizon is strongly long-term (0.85), anchored in a multi-year compounding philosophy that explicitly seeks to avoid short-term market timing in favor of riding out full market cycles.
Top Conviction Themes
Key Catalysts
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