Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgency to invest in AI technologies now [1][13] - The energy demands of AI technologies are highlighted, with data centers consuming as much energy as small cities, leading to concerns about power grid strain and rising electricity prices [2][3] Investment Opportunity - A specific company is presented as a key player in the AI energy sector, owning critical energy infrastructure assets that are essential for supporting the anticipated surge in energy demand from AI data centers [3][7] - This company is characterized as a "toll booth" operator in the AI energy boom, benefiting from the increasing need for energy as AI technologies expand [4][5] Market Position - The company is noted for its unique position in the market, being debt-free and holding a significant cash reserve, which is approximately one-third of its market capitalization [8][10] - It also has a substantial equity stake in another AI-related company, providing investors with indirect exposure to multiple growth opportunities in the AI sector [9][10] Strategic Advantages - The company is involved in large-scale engineering, procurement, and construction (EPC) projects across various energy sectors, including nuclear energy, which is crucial for America's future power strategy [7][8] - The current political climate, particularly the push for onshoring and increased U.S. LNG exports, positions this company favorably to capitalize on these trends [6][14] Future Outlook - The influx of talent into the AI sector is expected to drive continuous innovation and advancements, making investments in AI a strategic move for future growth [12] - The potential for significant returns is emphasized, with projections suggesting a possible 100% return within 12 to 24 months for investors who act now [15]

Core Insights - MDU Resources Group, Inc. announced that its subsidiary, Montana-Dakota Utilities Co., received an Advanced Determination of Prudence (ADP) and Certificate of Public Convenience and Necessity (CPCN) from the North Dakota Public Service Commission for acquiring a 49% stake in the Badger Wind Farm [1][2] Group 1: Project Details - The Badger Wind project, currently under construction near Wishek, North Dakota, is expected to be completed by the end of 2025, with an estimated investment of approximately $294 million for a 122.5 MW stake in the net 250 MW wind project [2] - The ADP confirms that the project is prudent up to an investment of $295.5 million, which includes $1.5 million of internal costs capitalized as part of the project, providing a regulatory framework that supports the project's financial viability [2] Group 2: Company Overview - MDU Resources Group, Inc. is a member of the S&P SmallCap 600 index and provides electric utility and natural gas distribution services to over 1.2 million customers across the Pacific Northwest and Midwest [3] - The company's pipeline business operates a network of over 3,800 miles of natural gas pipelines and storage systems, ensuring reliable energy delivery across the Northern Plains [3]

Core Insights - Duke Energy has selected three properties in Southwest Ohio and Northern Kentucky for its 2025 Site Readiness Program, aimed at preparing high-potential business and industrial sites for economic development investments [1][4]. Group 1: Economic Impact - Since 2010, Duke Energy's Site Readiness Program has evaluated 42 sites in Ohio and Kentucky, resulting in 20 companies committing to grow on these sites, which collectively bring over $2 billion in capital investments and 5,400 new jobs to the region [2][6]. - In 2024 alone, Duke Energy facilitated the recruitment of $548 million in new capital investment and over 1,000 jobs across Ohio and Kentucky [4]. Group 2: Program Details - The Site Readiness Program helps communities enhance their competitiveness for economic development, leading to new jobs and a broader tax base [3]. - Duke Energy collaborates with the Site Selection Group, Bayer Becker, REDI Cincinnati, BE NKY Growth Partnership, and local governments to implement the program [3]. Group 3: Selected Properties - The three properties selected for the 2025 program include: 1. Frick Family Farms in Monroe, Ohio (Butler County) 2. Union Ren Farms in Middletown, Ohio (Warren County) 3. Commonwealth Commerce Center in Northern Kentucky (Pendleton County) [4]. Group 4: Recognition - Duke Energy has been recognized for 21 consecutive years by Site Selection magazine as one of the "Top Utilities in Economic Development" [4].

Energy Demand & Supply Concerns - The US existing grid may not have enough power to support the massive scale of data centers, leading to concerns about fulfilling energy demand [1][2] - AI data centers are increasing electricity prices due to their growing power needs [2][3] - Bottlenecks exist in bringing natural gas online, hindering the ability to meet the power demands of data centers [5][6] - Fulfilling data center companies' ambitions will require 5-10 years to bring online energy sources like solar power and batteries [6] Nuclear Energy & Regulatory Landscape - The US has taken a pullback on nuclear energy due to environmental and safety concerns, while China is pressing forward with nuclear reactor construction [4] - The average construction time for a nuclear reactor in China is 57 years, raising questions about the US's ability to meet power demands [4] - Both the Trump and Biden administrations have attempted to ease regulatory bottlenecks for bringing new reactors online, but it still takes a long time [8][9][10] - Nuclear companies anticipate new reactors may not be operational until the end of the decade or into the 2030s [8] Cost Considerations & Investment Outlook - The cost to build a US reactor is significantly higher compared to China, potentially creating a log jam [10][11] - Small modular reactors (SMRs) promise to bring scale and reduce costs, but this is currently theoretical [11][12][13] - For investors with long-term horizons, nuclear power investments may be wise, but near-term volatility should be expected [14] - Investment opportunities exist in bridge power solutions, such as companies like Fluence and Amoresco that are deploying batteries and solar on the grid [6][15]

Core Insights - Mairs & Power Balanced Fund experienced a challenging start to Q2 2025 but rebounded to a 25% increase by the end of the quarter, with a total return of 2.66% in the first half of 2025, underperforming benchmark indexes [1] Fund Performance - The fund's performance was below benchmark composite indexes, which rose 5.43%, and the Morningstar Moderate Allocation peer group, which increased by 5.67% [1] Investment Focus - The fund highlighted WEC Energy Group, Inc. (NYSE:WEC) as a key investment, noting a one-month return of 3.79% and a 52-week gain of 18.14%, with a market capitalization of $35.972 billion as of September 23, 2025 [2][3] Rationale for Investment - The fund established a new position in WEC Energy Group due to its favorable regulatory environment in Wisconsin and stable service area, providing a quasi-fixed income holding in utilities [3] Hedge Fund Interest - WEC Energy Group was held by 35 hedge fund portfolios at the end of Q2 2025, a slight decrease from 37 in the previous quarter, indicating moderate interest among hedge funds [4]

Economic Outlook - Fed Chair Jerome Powell highlighted ongoing risks to both the labor market and inflation, indicating a challenging path for policymakers regarding potential rate cuts [1] - Chicago Fed President Austan Goolsbee and Atlanta Fed President Raphael Bostic emphasized caution on further rate cuts due to inflation remaining above target [6] Economic Data - U.S. S&P Global manufacturing PMI fell to 52.0 in September, below expectations of 52.2, while services PMI dropped to 53.9, also weaker than the anticipated 54.0 [2] - The Richmond Fed manufacturing index unexpectedly declined to -17 in September, compared to expectations of -5 [2] Stock Market Performance - Wall Street's major indexes closed lower, with notable declines in the Magnificent Seven stocks, including Amazon.com (AMZN) down over -3% and Nvidia (NVDA) down more than -2% [3] - Alibaba Group (BABA) shares surged over +9% in pre-market trading following an announcement to increase AI spending beyond its initial $53 billion target [4] - Micron Technology (MU) rose over +1% in pre-market trading after reporting strong FQ4 results and issuing above-consensus FQ1 guidance [4][15] Futures and Bonds - December Nasdaq 100 E-Mini futures are trending up +0.30% amid optimism over AI investments [5] - The yield on the benchmark 10-year U.S. Treasury note is at 4.110%, down -0.24% [8] International Markets - The Euro Stoxx 50 Index is down -0.29%, reflecting caution among investors following Powell's comments [9] - Asian stock markets closed higher, with China's Shanghai Composite Index up +0.83% and Japan's Nikkei 225 up +0.30% [11] Corporate News - Lanxess AG (LXS.D.DX) shares fell over -6% after Deutsche Bank downgraded the stock to Hold from Buy [10] - Firefly Aerospace (FLY) plunged more than -15% after reporting weaker-than-expected Q2 results [3]

Core Insights - Regulated utilities underperformed in the second quarter, while utilities with exposure to data center load growth outperformed the market [3] Performance Review - The Fund advanced 17.34% in the quarter, outperforming the S&P 500® Utilities Index [4]

Group 1: AI Investment Opportunity - Artificial intelligence is considered the greatest investment opportunity of our lifetime, with a strong emphasis on the urgency to invest now [1] - Wall Street is investing hundreds of billions into AI, but there is a critical question regarding the energy supply needed to support this technology [2] - AI data centers consume as much energy as small cities, leading to concerns about power grid strain and rising electricity prices [2] Group 2: Company Overview - A specific company, largely overlooked by AI investors, is positioned to benefit from the increasing demand for energy due to AI [3] - This company owns critical energy infrastructure assets and is involved in the U.S. LNG exportation sector, which is expected to grow under the current administration's energy policies [7] - The company is debt-free and has a significant cash reserve, equating to nearly one-third of its market cap, making it financially robust [8] Group 3: Market Position and Valuation - The company is trading at less than 7 times earnings, indicating it is undervalued compared to its potential [10] - It also holds a substantial equity stake in another AI-related company, providing indirect exposure to multiple growth engines in the AI sector [9] - Wall Street is beginning to take notice of this company as it benefits from various market trends without the high valuations typical of the sector [8] Group 4: Future Outlook - The future of AI is closely tied to energy infrastructure, and this company is strategically positioned to capitalize on the upcoming energy demands [6][14] - The influx of talent into the AI sector ensures continuous innovation, making investments in AI a strong bet for future growth [12] - The company is seen as a key player in the AI energy boom, linking AI, energy, tariffs, and onshoring trends together [6][14]

Group 1: AI Investment Opportunity - Artificial intelligence is considered the greatest investment opportunity of our lifetime, with a strong emphasis on the urgency to invest now [1] - Wall Street is investing hundreds of billions into AI, but there is a critical question regarding the energy supply needed to support this technology [2] - AI data centers consume as much energy as a small city, leading to concerns about power grid strain and rising electricity prices [2] Group 2: Company Overview - A specific company is highlighted as a potential investment opportunity, owning critical energy infrastructure assets that are essential for supporting the upcoming AI energy demand [3][6] - This company is not a chipmaker or cloud platform but is positioned to benefit from the increasing need for electricity in the digital age [3] - It has a significant role in U.S. LNG exportation, which is expected to grow under the current administration's energy policies [7] Group 3: Financial Position - The company is noted for being completely debt-free and has a cash reserve that is nearly one-third of its market capitalization [8] - It also holds a substantial equity stake in another AI-related company, providing indirect exposure to multiple growth engines without a premium price [9] Group 4: Market Perception - The company is gaining attention from Wall Street as it is seen as undervalued compared to other energy and utility firms that are heavily indebted [8][10] - It is trading at less than 7 times earnings, making it an attractive option for investors looking for value in the AI and energy sectors [10] Group 5: Future Outlook - The future of AI is closely tied to energy infrastructure, and the company is positioned to capitalize on the expected surge in demand for electricity [14] - The ongoing trends of onshoring and increased U.S. LNG exports further enhance the company's strategic importance in the energy landscape [14]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] - A specific company is highlighted as a key player in the AI energy sector, owning critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI technologies [3][7][8] Investment Landscape - Wall Street is investing hundreds of billions into AI, but there is a looming question regarding the energy supply needed to sustain this growth [2] - AI data centers, such as those powering large language models, consume energy equivalent to that of a small city, indicating a significant strain on global power grids [2] - The company in focus is positioned to benefit from the surge in demand for electricity driven by AI, making it a unique investment opportunity [3][6] Company Profile - The company is described as a "toll booth" operator in the AI energy boom, collecting fees from energy exports and benefiting from the onshoring trend due to tariffs [5][6] - It possesses critical nuclear energy infrastructure assets, making it integral to America's future power strategy [7] - The company is noted for its capability to execute large-scale engineering, procurement, and construction projects across various energy sectors, including oil, gas, and renewables [7] Financial Position - The company is completely debt-free and has a cash reserve that is nearly one-third of its market capitalization, positioning it favorably compared to other energy firms burdened with debt [8] - It also holds a significant equity stake in another AI-related company, providing investors with indirect exposure to multiple growth engines in the AI sector [9][10] Market Sentiment - There is a growing interest from hedge funds in this company, which is considered undervalued and off-the-radar, trading at less than seven times earnings [10][11] - The company is recognized for delivering real cash flows and owning critical infrastructure, making it a compelling investment choice in the context of the AI revolution [11][12] Future Outlook - The ongoing influx of talent into the AI sector is expected to drive continuous innovation and advancements, reinforcing the importance of investing in AI-related companies [12][13] - The combination of AI infrastructure demands, energy needs, and the onshoring boom presents a unique investment landscape that the highlighted company is well-positioned to navigate [14]