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 WEC Energy Group, Inc. (NYSE:WEC). WEC Energy Group, Inc. (NYSE:WEC) is a utility holding company providing electric and natural gas services to customers in the Midwest. The one-month return of WEC Energy Group, Inc. (NYSE:WEC) was -4.69% while its shares traded between $102.49 and $119.62 over the last 52 weeks. On June 1, 2026, WEC Energy Group, Inc. (NYSE:WEC) stock closed at approximately $108.60 per share, with a market capitalization of about $35.37 billion.
Mairs & Power Balanced Fund stated the following regarding WEC Energy Group, Inc. (NYSE:WEC) in its Q1 2026 investor letter:
“Our build-up in exposure to Utilities in the last year aided relative performance in the quarter as the generally defensive sector overweight helped in a market that proved relatively choppy. The Fund owns WEC Energy Group (NYSE:WEC) which we believe should benefit from stable and visible earnings growth from attractive service areas with favorable regulatory oversight.”
High-voltage power lines. Electricity distribution station. high voltage electric transmission tower. Distribution electric substation with power lines and transformers.
WEC Energy Group, Inc. (NYSE:WEC) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 44 hedge fund portfolios held WEC Energy Group, Inc. (NYSE:WEC) at the end of the first quarter, which was 43 in the previous quarter. While we acknowledge the risk and potential of WEC Energy Group, Inc. (NYSE:WEC) 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 WEC Energy Group, Inc. (NYSE:WEC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered WEC Energy Group, Inc. (NYSE:WEC) and shared the list of the best electric utility stocks to buy for the data center power surge. 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.
