Mairs & Power Small Cap Merits a Second Look
This young fund comes from a company that is an old Morningstar favorite.
Mairs & Power Small Cap (MSCFX) recently achieved a three-year track record and earned its first Morningstar Rating: 5 stars. We don't normally mark such milestones. As any regular reader knows, the star rating merely assesses past risk-adjusted performance, while it is the Analyst Rating that indicates Morningstar's assessment of a fund's prospects. But once a fund has three years of excellent performance on the record, it starts popping up on investors' screens.
This one is worthy of attention given its pedigree. Mairs and Power is a fine firm that has received a Positive score for Parent, one of the five pillars comprising the Morningstar Analyst Rating. It specializes in companies headquartered in the upper Midwest, in close range of its St. Paul, Minnesota office. The managers seek companies with sustainable competitive advantages, and they believe an ongoing relationship with management and community ties with employees give them an edge in fundamental analysis. This perspective has led to low-turnover, high-conviction portfolios.
Laura Lallos does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
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