Here’s How GLP-1 Affected MGP Ingredients (MGPI) in Q3

Core Insights - The Mairs & Power Small Cap Fund reported a return of 2.06% in the first nine months of 2025, underperforming against benchmarks such as the 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] Fund Performance - The fund's performance lagged behind the S&P Small Cap 600 TR, which rose by 4.24%, and the Morningstar U.S. Fund Small Blend, which returned 6.15% [1] Company Focus: MGP Ingredients, Inc. - MGP Ingredients, Inc. (NASDAQ:MGPI) experienced a one-month return of 1.93% but saw a significant decline of 43.49% over the last 52 weeks, closing at $26.35 per share with a market capitalization of $561.105 million on December 10, 2025 [2] - The company faced challenges due to excess inventory, particularly in bourbon, and shifts in consumer consumption levels across the alcohol industry [3] Hedge Fund Interest - MGP Ingredients, Inc. was held by 18 hedge fund portfolios at the end of the third quarter, down from 26 in the previous quarter, indicating reduced interest among hedge funds [4] - While MGP Ingredients is acknowledged for its potential, certain AI stocks are viewed as offering greater upside potential with less downside risk [4]