Here's What Lifted Wells Fargo (WFC) in the First Half of 2025

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 Wells Fargo & Company (NYSE:WFC). Wells Fargo & Company (NYSE:WFC) is a financial services company. The one-month return of Wells Fargo & Company (NYSE:WFC) was 2.27%, and its shares gained 57.38% of their value over the last 52 weeks. On September 23, 2025, Wells Fargo & Company (NYSE:WFC) stock closed at $84.37 per share, with a market capitalization of $270.274 billion.

Mairs & Power Balanced Fund stated the following regarding Wells Fargo & Company (NYSE:WFC) in its second quarter 2025 investor letter:

"Wells Fargo & Company (NYSE:WFC) outperformed as the expectation of a recession has diminished and a trend toward deregulation should benefit the banking and payments sectors. Wells Fargo further benefited as several consent decrees, which outline specific reforms and improvements, were lifted by various regulators. The most impactful of these was the Fed’s restriction on growth, which was unprecedented and lasted seven years. With these restrictions being largely lifted, the company is now in a much better position for future growth."

Wells Fargo & Company (NYSE:WFC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 75 hedge fund portfolios held Wells Fargo & Company (NYSE:WFC) at the end of the second quarter, compared to 88 in the previous quarter.  While we acknowledge the potential of Wells Fargo & Company (NYSE:WFC) 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 Wells Fargo & Company (NYSE:WFC) and shared stocks Jim Cramer offered insights on. 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.