Mairs & Power, an investment advisor, released the fourth-quarter 2025 investor letter for the “Mairs & Power Small Cap Fund.” A copy of the letter can be downloaded here. In 2025, artificial intelligence (AI) and market concentration dominated the market. Increased investment in technology and AI infrastructure drove rising valuations and corporate spending, leading to bubble-like tendencies. However, easing inflation, a Federal Reserve rate cut in Q4, and resilient corporate earnings provided some optimism. In this environment, the Fund returned 3.98% in 2025, trailing the Russell 2000 Total Return (TR) Index’s 12.81% gain, the S&P Small Cap 600 TR’s 6.02% return, and the Morningstar U.S. Fund Small Blend’s 7.68% gain. Macro headwinds affected smaller companies in 2025, but the second half of the year saw small-cap stocks gain as the labor market softened. Stock selection notably impacted performance, especially in Health Care, Information Technology, and Materials. While sector allocation positively contributed. Looking ahead to 2026, the Fund remains optimistic about small-cap stocks, which are expected to grow at or above the S&P 500’s rate. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Mairs & Power Small Cap Fund highlighted stocks like NVent Electric plc (NYSE:NVT). NVent Electric plc (NYSE:NVT) is an industrial technology company that provides solutions for electrical connection and protection products. The one-month return of NVent Electric plc (NYSE:NVT) was 11.26%, and its shares gained 160.74% of their value over the last 52 weeks. On April 2, 2026, NVent Electric plc (NYSE:NVT) stock closed at $117.96 per share, with a market capitalization of $19.08 billion.
Mairs & Power Small Cap Fund stated the following regarding NVent Electric plc (NYSE:NVT) in its fourth quarter 2025 investor letter:
“Notable positive contributors for the Fund were Exact Sciences, Medpace Holdings, Inc., and NVent Electric plc (NYSE:NVT). Finally, nVent had a positive 2025 due to surging data center demand related to liquid cooling of servers and a key acquisition helping to improve revenue.”
NVent Electric plc (NYSE:NVT) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 68 hedge fund portfolios held NVent Electric plc (NYSE:NVT) at the end of the fourth quarter, up from 61 in the previous quarter. While we acknowledge the risk and potential of NVent Electric plc (NYSE:NVT) 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 NVent Electric plc (NYSE:NVT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered NVent Electric plc (NYSE:NVT) and shared Artisan Mid Cap Value Fund’s views on the company. In addition, please check out our hedge fund investor letters Q4 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.
