Mairs & Power Boosts Apple Holdings: Q2 Portfolio Shift Signals Strategic Focus

Mairs & Power Boosts Apple Holdings: Q2 Portfolio Shift Signals Strategic Focus

Mairs & Power, a prominent investment firm headquartered in Minnesota, has unveiled its 13F filings for the second quarter of 2024, revealing significant adjustments to its portfolio. The firm, known for its three mutual funds – the Growth Fund, the Balanced Fund, and the Small-Cap Fund – has maintained a focused long-term investment strategy since its establishment in 1931.

Mairs & Power's investment philosophy centres on identifying companies that demonstrate consistent above-average growth, robust returns on invested capital, and sustainable competitive advantages. Their low turnover strategy prioritises long-term gains over short-term market fluctuations, targeting less efficient market segments to maximise investor returns.

New Additions to the Portfolio

Mairs & Power expanded its portfolio in the second quarter of 2024 by adding six new holdings. Notable new acquisitions include:

The S&P MidCap 400 ETF (MDY), with a purchase of 985 shares valued at approximately £420,000.

GE Vernova Inc (NYSE:GEV), acquiring 1,942 shares, representing a total investment of around £265,000.

HP Inc (NYSE:HPQ), acquiring 5,814 shares, totalling approximately £162,000.

Significant Increases in Existing Positions

During the same period, Mairs & Power increased its holdings in 53 stocks. Key increases include:

Apple Inc (NASDAQ:AAPL), where an additional 347,651 shares were purchased, bringing the total to 1,303,200 shares. This represents a significant 36.38% increase in share count, amounting to a 0.71% impact on the current portfolio, with a total value of £218,000,000.

Alliant Energy Corp (NASDAQ:LNT), with an additional 510,031 shares, increasing the total to 3,831,399 shares. This signifies a 15.36% increase in share count, valued at £154,000,000.

Positions Completely Exited

Mairs & Power also decided to completely exit 11 holdings in the second quarter of 2024, including:

Marcus Corp (NYSE:MCS), selling all 169,856 shares, impacting the portfolio by -0.02%.

iShares Russell Mid-Cap ETF (IWR), liquidating all 2,385 shares, with a negligible impact on the portfolio.

Reductions in Key Holdings

The firm reduced its positions in 116 stocks. Significant reductions were made in:

Alphabet Inc (NASDAQ:GOOG), with a decrease of 389,741 shares, resulting in a -12.16% reduction and a -0.58% portfolio impact. The stock traded at an average price of £135 during the quarter.

Ecolab Inc (NYSE:ECL), reducing holdings by 157,173 shares, marking a -15.85% decrease and a -0.35% impact on the portfolio. The stock's average trading price was £184 during the quarter.

Portfolio Overview and Sector Allocation

As of the second quarter of 2024, Mairs & Power's portfolio comprised 222 stocks. The top holdings included 8.45% in Microsoft Corp (NASDAQ:MSFT), 7.38% in NVIDIA Corp (NASDAQ:NVDA), 4.99% in Alphabet Inc (NASDAQ:GOOG), 4.39% in Amazon.com Inc (NASDAQ:AMZN), and 4.16% in UnitedHealth Group Inc (NYSE:UNH). The investments are predominantly concentrated across 11 industries, with significant allocations in Technology, Industrials, and Healthcare sectors.

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