Mairs & Power Balanced Fund Added Amazon (AMZN) Amid Market Share Capture

Mairs & Power, an investment advisor, released the third-quarter 2025 investor letter for the “Mairs & Power Balanced Fund.” A copy of the letter can be downloaded here. As we move into 2025, the market’s concentration persists, with a few dominant mega-cap stocks tied to artificial intelligence (AI) driving most of the favorable outcomes. The fund returned 6.47% in the first nine months 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 11.35% and the Morningstar Moderate Allocation peer group, which rose 10.73%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Mairs & Power Balanced Fund highlighted stocks such as Amazon.com, Inc. (NASDAQ:AMZN). Amazon.com, Inc. (NASDAQ:AMZN) provides consumer products, advertising, and subscription services through online and physical stores. The one-month return of Amazon.com, Inc. (NASDAQ:AMZN) was -2.44%, and its shares gained 1.23% of their value over the last 52 weeks. On December 10, 2025, Amazon.com, Inc. (NASDAQ:AMZN) stock closed at $231.78 per share, with a market capitalization of $2.478 trillion.

Mairs & Power Balanced Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its third quarter 2025 investor letter:

"The Fund’s relative performance was aided by a positive contribution from the Consumer Discretionary sector which benefited both from favorable allocation and selection. The Fund initiated a new position in Amazon.com, Inc. (NASDAQ:AMZN), which is well positioned to continue capturing market share in retail distribution while also growing its market-leading cloud business. The Fund took advantage of weakness in the stock during April to start the position as tariff news and a precipitous market decline provided an attractive valuation opportunity."

Amazon.com, Inc. (NASDAQ:AMZN) is in first position our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 332 hedge fund portfolios held Amazon.com, Inc. (NASDAQ:AMZN) at the end of the third quarter, which was 325 in the previous quarter. In Q3 2025, Amazon.com, Inc. (NASDAQ:AMZN) reported $180.2 billion in revenue, up 12% year-over-year, excluding the impact from foreign exchange rates. While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN) 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 Amazon.com, Inc. (NASDAQ:AMZN) and shared the list of best AI stocks to watch in December 2025. In addition, please check out our hedge fund investor letters Q3 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.