The Mairs & Power, an investment firm, released the first-quarter 2026 investor letter for the “Mairs & Power Balanced Fund.” A copy of the letter can be downloaded here. The fund returned -1.77% in the first quarter of 2026, outperforming its benchmark composite index decline of -2.68% as strong stock selection and exposure to Utilities and Industrials helped offset market volatility triggered by the Iran conflict and rising energy prices. The fund said inflation concerns resurfaced after Middle East tensions pushed oil prices higher, causing the Federal Reserve to adopt a more cautious stance on interest rates. Despite the uncertain backdrop, the firm maintained a constructive long-term outlook, citing resilient corporate earnings, improving small-cap trends, and attractive opportunities in reasonably valued sectors such as Utilities, Industrials, and Health Care. In addition, you can check the Fund’s top five holdings to determine its best picks for 2026.
In its first-quarter 2026 investor letter, Mairs & Power Balanced Fund highlighted stocks like Waste Management, Inc. (NYSE:WM). Waste Management, Inc. (NYSE:WM) is North America’s largest provider of waste collection, recycling, and environmental services. The one-month return of Waste Management, Inc. (NYSE:WM) was -5.67% while its shares traded between $194.11 and $248.13 over the last 52 weeks. On June 1, 2026, Waste Management, Inc. (NYSE:WM) stock closed at approximately $212.51 per share, with a market capitalization of about $84.68 billion.
Mairs & Power Balanced Fund stated the following regarding Waste Management, Inc. (NYSE:WM) in its Q1 2026 investor letter:
“During the quarter, the Fund added Waste Management (NYSE:WM). Waste Management collects, transports, recycles, and disposes residential, commercial, industrial, and municipal waste. The company sets itself apart thanks to its scale, route density, and landfill/recycling facilities.”
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Waste Management, Inc. (NYSE:WM) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 61 hedge fund portfolios held Waste Management, Inc. (NYSE:WM) at the end of the first quarter, which was 65 in the previous quarter. While we acknowledge the risk and potential of Waste Management, Inc. (NYSE:WM) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. 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.