Core Insights - The Mairs & Power Balanced Fund reported a return of 6.47% in the first nine months of 2025, underperforming benchmark indexes which increased by 11.35% and 10.73% respectively [1] - The market remains concentrated with a few mega-cap stocks related to artificial intelligence driving most favorable outcomes [1] Company Overview - WEC Energy Group, Inc. (NYSE:WEC) provides regulated natural gas and electricity, as well as renewable and nonregulated energy services [2] - As of December 10, 2025, WEC Energy Group's stock closed at $103.66 per share, with a market capitalization of $34.04 billion [2] Investment Positioning - The fund initiated a new position in WEC Energy Group due to its stable service area and balanced regulatory environment, along with significant investments in AI-related data centers in Wisconsin [3] - The Utilities sector positively contributed to the fund's relative performance [3] Hedge Fund Interest - WEC Energy Group was held by 37 hedge fund portfolios at the end of the third quarter, an increase from 35 in the previous quarter [4] - Despite recognizing WEC's potential, the company believes certain AI stocks present greater upside potential and lower downside risk [4]

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]