Mairs & Power Small Cap Fund Added James Hardie Industries (JHX) Following the Acquisition

Core Insights - The Mairs & Power Small Cap Fund reported a return of 2.06% in the first nine months of 2025, underperforming the benchmark Russell 2000 Total Returns Index, which increased by 10.39% [1] - The market remains concentrated in 2025, with a few dominant mega-cap stocks related to artificial intelligence driving most favorable outcomes [1] Company Overview: James Hardie Industries plc - James Hardie Industries plc, based in Dublin, Ireland, specializes in manufacturing and supplying fiber cement, fiber gypsum, and cement-bonded building products [2] - The stock of James Hardie Industries plc experienced a one-month return of 19.28%, but it has lost 41.58% of its value over the last 52 weeks, closing at $19.98 per share with a market capitalization of $11.574 billion on December 10, 2025 [2] Investment Positioning - The Mairs & Power Small Cap Fund initiated a position in James Hardie Industries plc following the company's acquisition of AZEK Company, indicating a strategic move to benefit from shared innovation and cross-selling opportunities [3] - Despite the potential of James Hardie Industries plc, some analysts suggest that certain AI stocks may offer greater upside potential and lower downside risk [4]