In the third quarter of 2025, the Mairs & Power Growth Fund reported a mixed performance, slightly lagging its primary benchmark but managing to surpass its peer group. This period was characterized by a concentrated market, with a select few mega-capitalization companies tied to artificial intelligence driving much of the positive returns. The fund's performance highlights the dynamic landscape of modern investing, where technological advancements like AI play an increasingly pivotal role in market movements.
Detailed Report on Q3 2025 Fund Performance
The Mairs & Power Growth Fund, a key player in the investment landscape, faced a challenging third quarter in 2025. During this period, the broader market continued its trend of high concentration, predominantly influenced by a handful of mega-cap stocks associated with artificial intelligence. This market dynamic led to a slight underperformance of the fund compared to its designated benchmark. However, the fund demonstrated resilience and strategic acumen by outperforming its peer group, indicating a relative strength within its competitive set. Among the individual holdings, UnitedHealth Group (UNH) and Fiserv (FI) emerged as significant detractors from the fund's relative performance throughout 2025. Conversely, JPMorgan Chase (JPM) proved to be a strong positive contributor. Microsoft (MSFT) also played a crucial role in bolstering the fund's returns, primarily due to the impressive expansion of its Azure cloud platform and the sustained momentum in its cloud and AI services. Looking ahead, the fund made proactive adjustments to its portfolio, adding Cognex Corporation (CGNX) and Palo Alto Networks (PANW) during the third quarter, signaling a strategic repositioning to capture future growth opportunities.
The performance of the Mairs & Power Growth Fund in Q3 2025 offers valuable insights for investors. It underscores the importance of a diversified yet strategically focused portfolio in a market heavily influenced by specific sectors like artificial intelligence. The fund's ability to outperform its peers, despite falling short of its benchmark, suggests robust management and a keen understanding of market trends. The addition of companies like Cognex and Palo Alto Networks reflects a forward-looking approach, aiming to capitalize on emerging technologies and market needs. This quarterly review serves as a reminder that even in concentrated markets, careful stock selection and active management can yield competitive results.