Mairs & Power, an investment advisor, released the “Mairs & Power Balanced Fund” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The quarter started with tariff uncertainty, conflicts in the Middle East, rising national debt, and the worst start to a year for the dollar; however, it bounced back to rise 25% from that low by the end of the quarter. The fund returned 2.66% in the first half of 2025. The fund underperformed the benchmark composite indexes (60% S&P 500 Total Return Index and 40% Bloomberg U.S. Government/Credit Bond Index), which were up 5.43% and the Morningstar Moderate Allocation peer group, which rose 5.67%. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its second-quarter 2025 investor letter, Mairs & Power Balanced Fund highlighted stocks such as Fiserv, Inc. (NYSE:FI). Fiserv, Inc. (NYSE:FI) is a payment and fintech services provider. The one-month return of Fiserv, Inc. (NYSE:FI) was -5.91%, and its shares lost 26.57% of their value over the last 52 weeks. On September 23, 2025, Fiserv, Inc. (NYSE:FI) stock closed at $129.82 per share, with a market capitalization of $70.569 billion.
Mairs & Power Balanced Fund stated the following regarding Fiserv, Inc. (NYSE:FI) in its second quarter 2025 investor letter:
“The Fund’s overweight to the Financials sector aided performance in the first half of 2025 but was also offset by stock selection within the sector. Fiserv, Inc. (NYSE:FI) had a difficult first six months of 2025 as the company revised its guidance lower for its Clover product, a cloud-based payment platform, which is at the core of its growth in merchant acceptance. The company has performed well in recent years, and the Clover product has been a meaningful part of that growth. Although we remain confident in the company’s future, the downward revision of expectations had an outsized impact on stock performance.”
Fiserv, Inc. (NYSE:FI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 94 hedge fund portfolios held Fiserv, Inc. (NYSE:FI) at the end of the second quarter, up from 72 in the previous quarter. In the second quarter of 2025, Fiserv, Inc.’s (NYSE:FI) adjusted revenue grew 8% to $5.2 billion. While we acknowledge the potential of Fiserv, Inc. (NYSE:FI) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
