Here’s What Dampens Motorola Solutions’ (MSI) Performance

Mairs & Power, an investment advisor, released the third-quarter 2025 investor letter for the “Mairs & Power Balanced Fund.” A copy of the letter can be downloaded here. As we move into 2025, the market’s concentration persists, with a few dominant mega-cap stocks tied to artificial intelligence (AI) driving most of the favorable outcomes. The fund returned 6.47% in the first nine months of 2025. The fund underperformed the benchmark composite indexes (60% S&P 500 Total Return Index and 40% Bloomberg U.S. Government/Credit Bond Index), which were up 11.35% and the Morningstar Moderate Allocation peer group, which rose 10.73%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Mairs & Power Balanced Fund highlighted stocks such as Motorola Solutions, Inc. (NYSE:MSI). Motorola Solutions, Inc. (NYSE:MSI) is a public safety and enterprise security solutions provider. The one-month return for Motorola Solutions, Inc. (NYSE:MSI) was -3.14%, and its shares lost 21.66% over the last 52 weeks. On December 11, 2025, Motorola Solutions, Inc. (NYSE:MSI) stock closed at $368.05 per share, with a market capitalization of $61.319 billion.

Mairs & Power Balanced Fund stated the following regarding Motorola Solutions, Inc. (NYSE:MSI) in its third quarter 2025 investor letter:

“The Information Technology sector was the largest contributor to the underperformance of equities during the period. A handful of companies witnessed outsized share price performance driven by enthusiasm around artificial intelligence (AI), while the Fund largely lacked exposure to these companies. Additionally, several technology companies the Fund has exposure to also underperformed the market, specifically Entegris (ENTG), Motorola Solutions, Inc. (NYSE:MSI), and Texas Instruments (TXN). For Motorola Solutions, underlying results remain quite positive, but an acquisition will dilute earnings and an expectation for tariff headwinds helped to dampen performance.”

Motorola Solutions Inc. (MSI) Introduces Pelco AI Security Devices for Tough Environments

Motorola Solutions, Inc. (NYSE:MSI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held Motorola Solutions, Inc. (NYSE:MSI) at the end of the third quarter, which was 55 in the previous quarter. While we acknowledge the risk and potential of Motorola Solutions, Inc. (NYSE:MSI) 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 Motorola Solutions, Inc. (NYSE:MSI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Motorola Solutions, Inc. (NYSE:MSI) and shared the list of best hardware stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q3 2025 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.