Mairs & Power Small Cap Fund Added James Hardie Industries (JHX) Following the Acquisition

Mairs & Power, an investment advisor, released the third-quarter 2025 investor letter for the “Mairs & Power Small Cap Fund.” A copy of the letter can be downloaded here. The market’s concentration persists in 2025, with a few dominant mega-cap stocks tied to artificial intelligence (AI) driving most of the favorable outcomes. The fund returned 2.06% in the first nine months of 2025. The fund underperformed the benchmark Russell 2000 Total Returns (TR) Index, which was up 10.39%, the S&P Small Cap 600 TR, which rose 4.24% and the Morningstar U.S. Fund Small Blend, which returned 6.15%. 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 Small Cap Fund highlighted stocks such as James Hardie Industries plc (NYSE:JHX). Based in Dublin, Ireland, James Hardie Industries plc (NYSE:JHX) manufactures and supplies fiber cement, fiber gypsum, and cement-bonded building products. The one-month return of James Hardie Industries plc (NYSE:JHX) was 19.28%, and its shares lost 41.58% of their value over the last 52 weeks. On December 10, 2025, James Hardie Industries plc (NYSE:JHX) stock closed at $19.98 per share, with a market capitalization of $11.574 billion.

Mairs & Power Small Cap Fund stated the following regarding James Hardie Industries plc (NYSE:JHX) in its third quarter 2025 investor letter:

“The Fund also started a position in James Hardie Industries plc (NYSE:JHX) after the company’s acquisition of our long-term holding, AZEK Company. James Hardie is a leading provider of fiber-cement building solutions, producing and selling siding, and cement-bonded boards for residential and commercial construction, and should benefit from shared innovation with and cross selling of the acquired AZEK product portfolio.”

James Hardie (JHX) Jumps 7% as Analyst Turns Bullish

James Hardie Industries plc (NYSE:JHX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held James Hardie Industries plc (NYSE:JHX) at the end of the third quarter, which was 32 in the previous quarter. While we acknowledge the risk and potential of James Hardie Industries plc (NYSE:JHX) 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 James Hardie Industries plc (NYSE:JHX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered James Hardie Industries plc (NYSE:JHX) and shared Alger Spectra Fund’s views on the company. 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.