Here’s What Impacted Knife River (KNF) in Q3

Core Insights - The Mairs & Power Small Cap Fund reported a return of 2.06% in the first nine months of 2025, underperforming the benchmark Russell 2000 Total Returns Index, which increased by 10.39% [1] - The market remains concentrated in 2025, with a few dominant mega-cap stocks related to artificial intelligence driving most favorable outcomes [1] Company Overview: Knife River Corporation (NYSE:KNF) - Knife River Corporation is a US-based provider of aggregates and construction materials, with a market capitalization of $4.311 billion as of December 10, 2025 [2] - The stock experienced a one-month return of 7.14% but has lost 27.65% of its value over the past 52 weeks [2] Performance Analysis - Knife River Corporation was noted as a significant detractor from the fund's relative performance, facing challenges due to federally funded construction program concerns, weather-related slowdowns, and environmental delays [3] - The number of hedge funds holding Knife River Corporation decreased from 24 in the previous quarter to 18 by the end of the third quarter [4] Investment Perspective - While Knife River Corporation is recognized for its potential, the company is considered less favorable compared to certain AI stocks that are believed to offer greater upside potential and lower downside risk [4]