Quick Facts
- Ticker: MPGFX
- Primary Strategy: Growth at a Reasonably Price (GARP)
- Expense Ratio: 0.62%
- Active Share: 68.45%
- Management Update: Pete Johnson becomes Lead Manager effective June 30, 2026
- Portfolio Shift: Information Technology exposure increased to approximately 33% of total assets
- Regional Evolution: Historical Upper-Midwest concentration reduced from 66% to approximately 36%
The Mairs & Power Growth Fund (MPGFX) employs a GARP investment strategy, focusing on companies with durable competitive advantages and consistent earnings. While the fund historically leaned toward upper-Midwest regional firms, it has successfully transitioned to a more diversified portfolio where technology stocks now represent approximately one-third of total assets. By maintaining a strict focus on valuation even within high-growth sectors, the fund seeks to manage the risks inherent in the high market valuations seen in 2026.
The GARP Philosophy: Investing in MPGFX During High Market Valuations
In an era where equity valuations often appear detached from historical norms, the Mairs & Power Growth Fund continues to champion a middle-ground approach. Known as a GARP investment strategy, this philosophy rejects the idea of growth at any cost. Instead, the management team looks for a durable competitive advantage—often referred to as a competitive moat—that allows a company to maintain profitability over decades rather than quarters.
How mairs and power growth fund uses garp strategy is distinct from pure value or pure growth funds. The objective is to identify firms with high return on invested capital that are trading at a discount or a reasonable multiple of their intrinsic value. In 2026, this involves rigorous fundamental analysis to ensure that heavy hitters in the portfolio are not just riding market momentum but are backed by solid earnings growth. For investors, investing in mpgfx during high market valuations provides a layer of active management that attempts to filter out speculative bubbles while staying participating in the broader market upside.
Portfolio Evolution: Top Holdings Analysis 2026
The structural composition of the Mairs & Power Growth Fund has undergone a significant transformation to remain relevant in a tech-dominated economy. Historically, the fund was famous for its regional bias toward the Upper Midwest. However, that concentration has shifted from two-thirds of the fund down to roughly 36% as the team seeks a more diversified portfolio growth strategy.
One of the most consequential changes was the removal of the historical 5% cap on individual position sizes. This regulatory and internal shift allowed for increased concentration in major growth constituents. As of March 2026, Microsoft and Nvidia accounted for approximately 8.8% and 9.1% of the portfolio respectively, reflecting a pragmatic embrace of the AI and cloud computing revolution.
MPGFX Key Metrics & Fund Vitals
| Metric | Detail |
|---|---|
| Ticker | MPGFX |
| Net Assets | ~$4.8 Billion (March 2026) |
| Turnover Rate | 12.53% |
| Number of Holdings | 45-55 |
| Category | Large Blend |
Mairs and power growth fund top holdings analysis 2026 reveals a blend of "Magnificent Seven" leaders and traditional stalwarts. While technology is the largest sector at roughly one-third of assets, the fund balances this with meaningful exposure to healthcare and financials.
Top 10 Holdings (Estimated March 2026)
| Company | Sector | Weight (%) |
|---|---|---|
| Nvidia Corp. | Information Technology | 9.1% |
| Microsoft Corp. | Information Technology | 8.8% |
| Amazon.com Inc. | Consumer Discretionary | 5.4% |
| Apple Inc. | Information Technology | 4.9% |
| JPMorgan Chase & Co. | Financials | 4.2% |
| Roche Holding AG | Health Care | 3.8% |
| UnitedHealth Group Inc. | Health Care | 3.5% |
| Fiserv Inc. | Financials | 3.2% |
| Alphabet Inc. | Communication Services | 3.0% |
| Fastenal Co. | Industrials | 2.8% |
Performance Analysis: MPGFX vs. S&P 500
Navigating the 2026 landscape requires understanding the "Value Tax" that disciplined funds often pay during aggressive growth cycles. High market valuations fueled by a handful of mega-caps have made benchmark comparison difficult for those who refuse to ignore valuation fundamentals. In 2025, the fund returned 10.54% while the index gained 17.88%. This gap was largely attributed to the fund's security selection in healthcare and fintech. Specifically, significant pullbacks in UnitedHealth Group and Fiserv created headwinds that even gains in technology could not entirely offset.
However, the long-term track record remains a testament to the fund's risk-adjusted returns and its commitment to an extended investment horizon. As of March 31, 2026, the Mairs & Power Growth Fund (MPGFX) reported a 10-year annualized total return of 11.56%, compared to a 14.16% return for the S&P 500 Total Return Index during the same period.
The start of 2026 saw a minor pivot. The Russell 3000 Value Index surged 8.9% year-to-date through early March, while large-cap growth declined 4.8%. This 14-percentage-point swing highlights why Mairs & Power maintains its large blend mutual funds status; when the market rotates away from pure growth, the GARP discipline serves as a stabilizer.
Strategic Rebranding: The Shift to Mairs & Power Fund
A notable change for 2026 is the fund’s move toward a potential name change. Under the SEC Names Rule, funds must ensure their titles accurately reflect their investments. By dropping "Growth" to become simply the Mairs & Power Fund, the team gains the flexibility to pursue companies across the valuation spectrum without being confined by rigid style boxes.
This transition coincides with a leadership change. Pete Johnson is set to become the Lead Manager on June 30, 2026, succeeding Andy Adams. This succession plan highlights the firm's dedication to continuity and active management. The strategy remains focused on lower turnover (historically around 12.53%) compared to peers, which helps in maintaining tax efficiency—a critical factor for investors with a long-term investment horizon.
Conclusion: Role of MPGFX in a Diversified Portfolio
When evaluating mairs and power growth fund for retirement accounts, investors should consider it a "core" holding. Its profile as a large blend mutual funds option makes it suitable for those who want exposure to market leaders like Microsoft and Nvidia but also want the protection offered by companies like JPMorgan and Roche.
The role of mairs and power growth fund in diversified portfolio strategy is to act as a ballast. It may not capture 100% of the upside during a speculative tech rally, but its valuation discipline aims to protect capital when the market eventually recalibrates. For the long-term investor, the fund’s evolution into a diversified portfolio growth strategy suggests it is well-positioned to navigate the complexities of the 2026 markets while staying true to its intrinsic value roots.
FAQ
What is the Mairs & Power Growth Fund?
The Mairs & Power Growth Fund (MPGFX) is an actively managed mutual fund that primarily invests in common stocks of companies with a focus on long-term capital appreciation. Founded in 1958 and based in Minnesota, it is known for its Growth at a Reasonable Price (GARP) investment philosophy and its historical emphasis on companies located in the Upper Midwest region of the United States.
What are the top holdings in the Mairs & Power Growth Fund?
As of early 2026, the fund's top holdings are dominated by large-cap technology and financial leaders. Major positions include Nvidia, Microsoft, Amazon, and Apple. Other significant holdings include JPMorgan Chase, Roche Holding, and UnitedHealth Group, representing a mix of growth-oriented tech and established value-driven companies.
How has the Mairs & Power Growth Fund performed over the long term?
The fund has a strong multi-decade track record, though it has faced recent headwinds relative to the S&P 500 due to its valuation discipline. Over the 10-year period ending March 2026, it delivered an annualized total return of 11.56%. While this lagged the S&P 500 Total Return Index (14.16%), the fund has historically outperformed over longer cycles by minimizing downside risk during market corrections.
What is the investment strategy of the Mairs & Power Growth Fund?
The fund utilizes a Growth at a Reasonable Price (GARP) strategy. This involves identifying companies with a durable competitive advantage, high return on invested capital, and a consistent track record of earnings growth. The managers seek to buy these stocks when they are trading at prices that represent a fair value, avoiding companies that appear overvalued even if they have high growth potential.
How does the Mairs & Power Growth Fund compare to the S&P 500?
Unlike the S&P 500, which is a market-cap-weighted index, the Mairs & Power Growth Fund is actively managed with a high active share of approximately 68.45%. This means its performance can deviate significantly from the index. It recently underperformed the S&P 500 in 2025 due to its lower relative weighting in certain ultra-high-valuation tech stocks and specific losses in healthcare holdings like UnitedHealth Group.
