Mairs & Power’s Balanced Fund Leans into Utilities and Outperforms Benchmark
The firm says a defensive shift into regulated utilities and industrials boosts earnings visibility as oil-driven inflation worries prompt a more cautious Fed.
Overview
- The Balanced Fund, which reported results Tuesday, returned -1.77% in Q1 2026 and outperformed its composite benchmark decline of -2.68%.
- Mairs & Power credited strong stock selection and a year-long build in Utilities and Industrials for the relative outperformance in a choppy market.
- The firm highlighted holdings in WEC Energy Group and Xcel Energy as examples of regulated utilities that should deliver stable, visible earnings under favorable state regulatory regimes.
- Mairs & Power linked the sector tilt to renewed inflation concerns after early Q2 Middle East tensions pushed oil prices higher and prompted the Federal Reserve to signal a more cautious rate stance.
- Insider Monkey published contemporaneous market snapshots showing short-term share moves and hedge-fund holding counts for WEC and Xcel, underscoring that these data points are near-term snapshots that can change rapidly.