Profiles On Who We Watch
Many people in the investment community claim to be proponents of long-term investing, where buying companies and not stocks is the focus. However, there are very few that actually follow through on this strategy. Mairs & Power, however is one investment company that epitomizes this tough-to-follow philosophy. This small firm currently holds many positions that have been in its funds for nearly a decade. Mairs & Power focuses on a conservative growth approach in its investments, seeking companies with a large potential for growth at a reasonable valuation. It has been this strict investment philosophy, and the company's strong dedication to upholding it, that has produced market-beating returns.
Mairs & Power Growth Fund, which was founded in 1958, is headed by William Frels who took over as head portfolio manager in 2004 after George Mairs III retired. Frels, who has been with the firm since 1992, has co-managed the growth fund since 2000 and is also the lead manager for the company?s balanced fund. Frels has a bachelor?s degree in finance from the University of Wisconsin, along with a Chartered Financial Analyst designation.
The investment strategy used by Mairs & Power is focused on looking for growing companies with fair valuations, but is restricted to companies the firm knows and understands. This Buffett-like thinking has led to a strong focus on Midwestern firms, where Mairs & Power operates, as management argues that they have a greater ability to fully understand the companies within their own region. While this does limit the companies that can be added to the fund, this is not a major problem for a company that limits its holdings to fewer than 50.
The two funds under management at Mairs & Power, the growth and balance, have both been given a five-star rating by Morningstar. As noted by the fund rating agency, Mairs & Power's provides strong stewardship and performance coupled with below-average expenses for investors. In fact, the company tops not only the market, but its peers as well.
This strong investment philosophy and management team, along with the firm's long history, should be cause for any Coattailer to follow the moves of Mairs & Power closely.
Mairs & Power
|
Average Annual Return (since 1996)
|
3-Year
|
5-Year
|
| Growth Fund ('58) |
13.65%
|
15.55%
|
8.83%
|
| S&P 500(Benchmark) |
8.94%
|
13.22%
|
1.32%
|
|
