The Mairs & Power, an investment firm, released the first-quarter 2026 investor letter for the “Mairs & Power Balanced Fund.” A copy of the letter can be downloaded here. The fund returned -1.77% in the first quarter of 2026, outperforming its benchmark composite index decline of -2.68% as strong stock selection and exposure to Utilities and Industrials helped offset market volatility triggered by the Iran conflict and rising energy prices. The fund said inflation concerns resurfaced after Middle East tensions pushed oil prices higher, causing the Federal Reserve to adopt a more cautious stance on interest rates. Despite the uncertain backdrop, the firm maintained a constructive long-term outlook, citing resilient corporate earnings, improving small-cap trends, and attractive opportunities in reasonably valued sectors such as Utilities, Industrials, and Health Care. In addition, you can check the Fund’s top five holdings to determine its best picks for 2026.
In its first-quarter 2026 investor letter, Mairs & Power Balanced Fund highlighted stocks like Automatic Data Processing, Inc. (NASDAQ:ADP). Automatic Data Processing, Inc. (NASDAQ:ADP) provides payroll, human resources, and workforce management solutions to employers worldwide. The one-month return of Automatic Data Processing, Inc. (NASDAQ:ADP) was 329.93% while its shares traded between $188.16 and $329.93 over the last 52 weeks. On June 1, 2026, Automatic Data Processing, Inc. (NASDAQ:ADP) stock closed at approximately $220.08 per share, with a market capitalization of about $91.68 billion.
Mairs & Power Balanced Fund stated the following regarding Automatic Data Processing, Inc. (NASDAQ:ADP) in its Q1 2026 investor letter:
“Offsetting this, fears around AI impacting software pricing and jobs into the future negatively affected Automatic Data Processing, Inc. (NASDAQ:ADP). We reassessed our position on ADP and continue to be confident in the company’s position going forward.”
Automatic Data Processing, Inc. (NASDAQ:ADP) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 67 hedge fund portfolios held Automatic Data Processing, Inc. (NASDAQ:ADP) at the end of the first quarter, which was 68 in the previous quarter. While we acknowledge the risk and potential of Automatic Data Processing, Inc. (NASDAQ:ADP) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Automatic Data Processing, Inc. (NASDAQ:ADP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Automatic Data Processing, Inc. (NASDAQ:ADP) and shared the list of the best stocks for a dividend stock portfolio. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
