Mairs and Power Strategically Revises Portfolio in Q4 2023
In a recent turn of events, Mairs and Power, the Minnesota-based investment firm known for its disciplined investment strategy, has made significant adjustments to its portfolio composition. The firm, which manages various funds including the Growth Fund, the Balanced Fund and the Small-Cap Fund, is known for its focus on growth, strong capital appreciation and sustainable competitive advantages. Its recent portfolio changes, as revealed in its 13F filings for the fourth quarter of 2023, highlight a strategic shift in its investment approach.
In the last quarter of the year, the company expanded its investment horizon by adding 20 new stocks to its portfolio. This expansion included various acquisitions such as Knife River Holding Co., Health Care Select Sector SPDR and Consumer Staples Select Sector SPDR. These additions, while modest in percentage terms, add a layer of diversity to the firm’s holdings. For example, Knife River Holding Co. now represents 0.06% of the portfolio, valued at approximately $5.61 million.
The firm’s portfolio reshuffle also saw significant increases in its positions in several key companies. In particular, Apple Inc. saw a jump in shares owned by Mairs and Power, with the firm acquiring an additional 434,396 shares. This purchase marked a significant increase of 288.63%, bringing the total number of shares to 584,900. Similarly, the shares of Best Buy Co Inc in the firm’s portfolio skyrocketed by 9,155.08%, with an additional 526,417 shares.
On the other side of the spectrum, Mairs and Power also divested from four companies, including Sleep Number Corp and Plug Power Inc. However, these exits had a minimal impact on the overall portfolio. The firm continued to reduce its holdings in several other stocks, with Ecolab Inc. and Amazon.com Inc. seeing notable reductions in share count.
At year-end, Mairs and Power portfolio comprised 231 stocks, with significant holdings in industry giants such as Microsoft Corp, Alphabet Inc, UnitedHealth Group Inc, Amazon.com Inc, and NVIDIA. The portfolio is particularly concentrated in sectors such as technology, industrials, healthcare and financial services, among others.
Mairs and Power activities in the fourth quarter indicate a deliberate recalibration of its portfolio in line with its philosophy of long-term growth and exploration of less efficient market segments. The firm’s diverse and broad market approach is evident in its recent strategic moves. These adjustments provide insight into the firm’s current operational tactics and its approach to the ever-evolving economic environment.
To sum up, Mairs and Power’s Q4 2023 portfolio updates underscore the firm’s adherence to a disciplined investment strategy focused on long-term growth. The company’s latest maneuvers in the market, characterized by new acquisitions and significant increases in certain holdings, reflect a strategic response to the dynamic economic landscape. The firm’s commitment to a diversified investment approach across multiple industries remains a cornerstone of its philosophy, as it continues to navigate through the complexities of the market.
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