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Mairs & Power Growth Revs Up a Bit

Management buys a little tech.

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So far in 2001, performance hasn't been quite dazzling for Mairs & Power Growth Fund (MPGFX). Its 1.7% loss for the year to date through May 9 is just about even with the mid-blend average. The last month or so has provided much of the performance drag for the fund; though its 5.4% return during that time is healthy, the fund hasn't caught the tech bounce of recent weeks like some of its tech-heavier peers have.

Though manager George Mairs and his team avoided most tech stocks during 1999's bubble and much of 2000's crash, lately they have made one noteworthy purchase in that area, Corning (GLW). The Minnesota-based company has a long history and strong management, and its valuation was crushed during the tech wreck of 2000. Thus, Mairs and his team jumped in. They also purchased a small-growth company called eFunds (EFDS), which was a spinoff from Deluxe (DLX), another holding. Efunds is a credit-card payment verification firm, and Mairs says it has strong prospects for earnings growth.

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Catherine Hickey does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.