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| Quarter | Letter Date | Fund Name | QTD | YTD | Tickers | Themes | Quick Take |
|---|---|---|---|---|---|---|---|
Buyside Digest is not affiliated with, and does not endorse, Mairs & Power - Small Cap Fund. This analysis is provided for institutional research purposes only and is not investment advice.
"The Mairs & Power Small Cap Fund lagged its benchmark in 2025 due to a speculative, risk-on environment, but the managers maintain high conviction in their quality-first approach as small-cap earnings show strong signs of recovery amidst historically cheap valuations."
In 2025, the Mairs & Power Small Cap Fund returned 3.98%, underperforming the Russell 2000 TR Index which gained 12.81%. Relative underperformance was driven by adverse stock selection in Health Care, IT, and Materials, alongside a speculative rally in unprofitable small-cap names. Despite these headwinds, the managers see significant opportunity ahead as small-cap earnings recover (13% growth in 2025, 15% projected for 2026) and valuations remain heavily discounted relative to large-cap peers. The fund continues to execute its disciplined, quality-compounder strategy, adding Bentley Systems in Q4.
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Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.
Market Conviction
High-conviction positioning: The Mairs & Power Small Cap Fund lagged its benchmark in 2025 due to a speculative, risk-on environment, but the managers maintain high conviction in their quality-first approach a...
Growth Outlook
Market outlook remains above average conviction: The Mairs & Power Small Cap Fund lagged its benchmark in 2025 due to a speculative, risk-on environment, but the managers maintain high conviction in their quality-first approach a...
Risk Appetite
Risk appetite posture is moderate conviction: The Mairs & Power Small Cap Fund lagged its benchmark in 2025 due to a speculative, risk-on environment, but the managers maintain high conviction in their quality-first approach a...
Capital Deployment
Manager actively deployed capital into high-conviction opportunities. The Mairs & Power Small Cap Fund lagged its benchmark in 2025 due to a speculative, risk-on environment, but the managers maintain high conviction in their quality-first approach a...
Forward Guidance
Forward guidance signal: The Mairs & Power Small Cap Fund lagged its benchmark in 2025 due to a speculative, risk-on environment, but the managers maintain high conviction in their quality-first approach a...
Language Signal
Tone analysis indicates above average conviction language: The Mairs & Power Small Cap Fund lagged its benchmark in 2025 due to a speculative, risk-on environment, but the managers maintain high conviction in their quality-first approach a...
Perceived Risk
Perceived risk level is evaluated as above average conviction. The Mairs & Power Small Cap Fund lagged its benchmark in 2025 due to a speculative, risk-on environment, but the managers maintain high conviction in their quality-first approach a...
Opportunity Density
Opportunity density index indicates high conviction actionable entry points. The Mairs & Power Small Cap Fund lagged its benchmark in 2025 due to a speculative, risk-on environment, but the managers maintain high conviction in their quality-first approach a...
Time Horizon
Investment time horizon reflects a high conviction orientation. The Mairs & Power Small Cap Fund lagged its benchmark in 2025 due to a speculative, risk-on environment, but the managers maintain high conviction in their quality-first approach a...
