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Mairs & Power, an investment advisor, released the “Mairs & Power Balanced Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The stock market reached a record high in February. However, tariff uncertainty in March led to a fall in equities, while fixed income benefited from perceived safety. The fund ended the quarter up 0.04%. The fund outperformed the benchmark composite indexes (60% S&P 500 Total Return Index and 40% Bloomberg U.S. Government/Credit Bond Index), down 1.48%, and the Morningstar Moderate Allocation peer group, which fell 0.34%. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Mairs & Power Balanced Fund highlighted stocks such as WEC Energy Group, Inc. (NYSE:WEC). WEC Energy Group, Inc. (NYSE:WEC) is engaged in the provision of regulated natural gas and electricity, and renewable and nonregulated energy services. The one-month return of WEC Energy Group, Inc. (NYSE:WEC) was 5.17%, and its shares gained 29.27% of their value over the last 52 weeks. On May 6, 2025, WEC Energy Group, Inc. (NYSE:WEC) stock closed at $109.76 per share with a market capitalization of $35.028 billion.
Mairs & Power Balanced Fund stated the following regarding WEC Energy Group, Inc. (NYSE:WEC) in its Q1 2025 investor letter:
"During the quarter, the Fund started a new position in WEC Energy Group, Inc. (NYSE:WEC). WEC, a public utility headquartered in Wisconsin, operates in one of the most balanced regulatory environments for a utility and its stable service area led us to add the name early in the quarter. Additionally, the Fund is overweight equities, and WEC provides a quasi-fixed income holding in utilities, by which we mean the utility has a limited return profile within its regulatorily defined returns."
A wind turbine in a large green field, highlighting the companies commitment to renewable energy.
WEC Energy Group, Inc. (NYSE:WEC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held WEC Energy Group, Inc. (NYSE:WEC) at the end of the fourth quarter, compared to 23 in the third quarter. While we acknowledge the potential of WEC Energy Group, Inc. (NYSE:WEC) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.