What Makes Patrick Industries (PATK) an Investment Choice?

Group 1: Fund Performance - The Mairs & Power Small Cap Fund returned 2.06% in the first nine months of 2025, underperforming the benchmark Russell 2000 Total Returns Index, which was up 10.39% [1] - The fund also lagged behind the S&P Small Cap 600 TR, which rose 4.24%, and the Morningstar U.S. Fund Small Blend, which returned 6.15% [1] Group 2: Investment Highlights - The fund initiated a position in Patrick Industries, Inc. (NASDAQ:PATK) during the third quarter of 2025, recognizing its potential due to ongoing outsourcing trends in its markets [3] - Patrick Industries, Inc. manufactures components and materials for various sectors, including recreational vehicles and marine markets, and has seen a one-month return of 12.72% and a 52-week gain of 25.89% [2] - As of December 10, 2025, Patrick Industries, Inc. stock closed at $114.13 per share, with a market capitalization of $3.798 billion [2] Group 3: Market Analysis - The market concentration in 2025 is driven by a few dominant mega-cap stocks linked to artificial intelligence, impacting overall fund performance [1] - Despite the potential of Patrick Industries, certain AI stocks are viewed as having greater upside potential and less downside risk [4] - In Q3 2025, Patrick Industries, Inc.'s consolidated net sales increased by 6% to $976 million [4]