Here's Why Mairs & Power Balanced Fund Initiated a Position in WEC Energy Group (WEC)

Mairs & Power, an investment advisor, released the “Mairs & Power Balanced Fund” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The quarter started with tariff uncertainty, conflicts in the Middle East, rising national debt, and the worst start to a year for the dollar; however, it bounced back to rise 25% from that low by the end of the quarter. The fund returned 2.66% in the first half of 2025. The fund underperformed the benchmark composite indexes (60% S&P 500 Total Return Index and 40% Bloomberg U.S. Government/Credit Bond Index), which were up 5.43% and the Morningstar Moderate Allocation peer group, which rose 5.67%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Mairs & Power Balanced Fund highlighted stocks such as WEC Energy Group, Inc. (NYSE:WEC). WEC Energy Group, Inc. (NYSE:WEC) is engaged in the provision of regulated natural gas and electricity, and renewable and nonregulated energy services. The one-month return of WEC Energy Group, Inc. (NYSE:WEC) was 3.79%, and its shares gained 18.14% of their value over the last 52 weeks. On September 23, 2025, WEC Energy Group, Inc. (NYSE:WEC) stock closed at $111.76 per share, with a market capitalization of $35.972 billion.

Mairs & Power Balanced Fund stated the following regarding WEC Energy Group, Inc. (NYSE:WEC) in its second quarter 2025 investor letter:

"The Fund built a new position in WEC Energy Group, Inc. (NYSE:WEC) during the first half of the year. This was for two reasons. WEC operates in one of the most balanced regulatory environments for a utility in Wisconsin combined with a stable service area which led us to add the name early in the quarter. Additionally, the Fund is overweight equities, and this provides a quasi-fixed income holding in Utilities where a utility has a limited return profile within its regulatorily defined returns."

WEC Energy Group, Inc. (NYSE:WEC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 35 hedge fund portfolios held WEC Energy Group, Inc. (NYSE:WEC) at the end of the second quarter, compared to 37 in the previous quarter.  While we acknowledge the potential of WEC Energy Group, Inc. (NYSE:WEC) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered WEC Energy Group, Inc. (NYSE:WEC) and shared Carillon Scout Mid Cap Fund's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 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.