Mairs & Power, an investment advisor, released the “Mairs & Power Small Cap Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. The Mairs & Power Small Cap Fund was up 11.04% in 2023 compared to the S&P Small Cap 600 TR benchmark’s 16.05% return, and the Morningstar U.S. Fund Small Blend’s 16.03% gain. The performance of various sectors varied throughout the year, with several sectors experiencing increased volatility. The Fund’s year-to-date underperformance compared to the benchmark can be attributed primarily to the strong performance of the Consumer Discretionary sector, in which the Fund has a significant underweight position. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Mairs & Power Small Cap Fund featured stocks such as Digi International Inc. (NASDAQ:DGII) in the fourth quarter 2023 investor letter. Headquartered in Hopkins, Minnesota, Digi International Inc. (NASDAQ:DGII) is a business and Internet of Things products and services provider. On February 1, 2024, Digi International Inc. (NASDAQ:DGII) stock closed at $27.68 per share. The one-month return of Digi International Inc. (NASDAQ:DGII) was 12.75%, and its shares lost 21.39% of their value over the last 52 weeks. Digi International Inc. (NASDAQ:DGII) has a market capitalization of $1.002 billion.
Mairs & Power Small Cap Fund stated the following regarding Digi International Inc. (NASDAQ:DGII) in its fourth quarter 2023 investor letter:
“We also sold our position in Digi International Inc. (NASDAQ:DGII) based on lower conviction in the pace of organic growth and product mix, the trajectory of margins, and the cadence of acquisitions contributing to rising debt levels and interest expense, which has been excluded from the company’s non-GAAP reporting which we view as unconventional.”
A close-up of a cellular router being tested and debugged in a laboratory setting.
Digi International Inc. (NASDAQ:DGII) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held Digi International Inc. (NASDAQ:DGII) at the end of third quarter which was 13 in the previous quarter.
We discussed Digi International Inc. (NASDAQ:DGII) in another article and shared Conestoga Capital Advisors’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2023 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.
