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 Xcel Energy Inc. (NASDAQ:XEL). Xcel Energy Inc. (NASDAQ:XEL) is a regulated utility company that generates and distributes electricity and natural gas across several U.S. states. The one-month return of Xcel Energy Inc. (NASDAQ:XEL) was -5.32% while its shares traded between $65.21 and $84.23 over the last 52 weeks. On June 1, 2026, Xcel Energy Inc. (NASDAQ:XEL) stock closed at approximately $76.41 per share, with a market capitalization of about $47.7 billion.
Mairs & Power Balanced Fund stated the following regarding Xcel Energy Inc. (NASDAQ:XEL) 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 Xcel Energy (NASDAQ:XEL) which we believe should benefit from stable and visible earnings growth from attractive service areas with favorable regulatory oversight.”
Pixabay/Public Domain
Xcel Energy Inc. (NASDAQ:XEL) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 55 hedge fund portfolios held Xcel Energy Inc. (NASDAQ:XEL) at the end of the first quarter, which was 57 in the previous quarter. While we acknowledge the risk and potential of Xcel Energy Inc. (NASDAQ:XEL) 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 Xcel Energy Inc. (NASDAQ:XEL) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Xcel Energy Inc. (NASDAQ:XEL) 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.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years
Disclosure: None. This article is originally published at Insider Monkey.
