Mairs and Power Refines Portfolio Strategy in Q4 2023
In a dynamic shift of strategy, Mairs and Power, the Minnesota-based investment firm known for its disciplined and long-term investment approach, has undertaken a significant realignment of its portfolio composition in the fourth quarter of 2023. The enterprise, which oversees the management of the Growth Fund, the Balanced Fund and the Small-Cap Fund, has long been acknowledged for its commitment to consistent growth and strong returns on invested capital.
The firm’s latest strategic move includes the addition of 20 new stocks to its portfolio, marking a notable expansion of its holdings. Among these new acquisitions, Knife River Holding Co., Health Care Select Sector SPDR and Consumer Staples Select Sector SPDR stand out as modest yet strategic enhancements to the firm’s diverse investment array.
In a significant development, the firm has increased its stake in several key companies. Apple Inc., for instance, has seen a substantial rise in shares owned by Mairs and Power, with the addition of 434,396 shares, a 288.63% increase that impacts the portfolio by 0.88%. Similarly, Best Buy Co Inc’s share count surged by 9,155.08%, reflecting the firm’s bolstered confidence in the market positions of these entities.
Conversely, the firm has also decided to divest from positions in four companies, including Sleep Number Corp and Plug Power Inc. Additionally, the quarter witnessed significant reductions in holdings of Ecolab Inc. and Amazon.com Inc., aligning with the regular rebalancing characteristic of active portfolio management.
By the close of Q4, Mairs and Power portfolio comprised 231 stocks, with top holdings that spanned a variety of industries. The firm’s investments covered sectors such as Technology, Industrials, Healthcare, Financial Services and more, with NVIDIA Corp among the significant positions. This broad market engagement underscores the firm’s commitment to a diversified market presence.
The fourth quarter of 2023 has indeed been a period of active portfolio management for Mairs and Power. The firm’s calculated adjustments, encompassing both increases and decreases in various company stakes, as well as complete exits from others, mirror the ongoing strategy to maintain a diversified and well-positioned portfolio. As the firm continues to navigate market conditions, its dedication to long-term growth and sustainable competitive advantages remains unwavering. The recent portfolio adjustments are indicative of the firm’s proactive approach to fund management and its adherence to the foundational principles that have solidified its standing in the financial sector.
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