Here's What Boosted Wells Fargo (WFC)

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 Wells Fargo & Company (NYSE:WFC). Wells Fargo & Company (NYSE:WFC) is a financial services company. The one-month return for Wells Fargo & Company (NYSE:WFC) was 8.87%, and its shares gained 31.45% over the last 52 weeks. On December 11, 2025, Wells Fargo & Company (NYSE:WFC) stock closed at $92.59 per share, with a market capitalization of $296.607 billion.

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

"JPMorgan & Chase (JPM) and Wells Fargo & Company (NYSE:WFC) outperformed due to an improving outlook for credit conditions as well as a trend toward deregulation which should benefit the largest banks. Wells Fargo further benefited as several consent decrees, which outline specific reforms and improvements, were lifted by various regulators. With these restrictions aside, 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. As per our database, 76 hedge fund portfolios held Wells Fargo & Company (NYSE:WFC) at the end of the third quarter, which was 75 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 the list of stocks Jim Cramer discussed. 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.