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

Mairs & Power, an investment advisor, released the third-quarter 2025 investor letter for the “Mairs & Power Small Cap Fund.” A copy of the letter can be downloaded here. The market’s concentration persists in 2025, with a few dominant mega-cap stocks tied to artificial intelligence (AI) driving most of the favorable outcomes. The fund returned 2.06% in the first nine months of 2025. The fund underperformed the benchmark Russell 2000 Total Returns (TR) Index, which was up 10.39%, the S&P Small Cap 600 TR, which rose 4.24% and the Morningstar U.S. Fund Small Blend, which returned 6.15%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Mairs & Power Small Cap Fund highlighted stocks such as MGP Ingredients, Inc. (NASDAQ:MGPI). MGP Ingredients, Inc. (NASDAQ:MGPI) produces and distributes distilled spirits, branded spirits, and food ingredients. The one-month return of MGP Ingredients, Inc. (NASDAQ:MGPI) was 1.93%, and its shares lost 43.49% of their value over the last 52 weeks. On December 10, 2025, MGP Ingredients, Inc. (NASDAQ:MGPI) stock closed at $26.35 per share, with a market capitalization of $561.105 million.

Mairs & Power Small Cap Fund stated the following regarding MGP Ingredients, Inc. (NASDAQ:MGPI) in its third quarter 2025 investor letter:

"Notable detractors from relative performance during the period were Inspire Medical, MGP Ingredients, Inc. (NASDAQ:MGPI), and Knife River. Inspire Medical had a difficult quarter due to challenges related to GLP-1 usage increases, as well as rolling out a new product version, and delays with billing software and reimbursement codes. Also impacted by GLP-1s was MGP Ingredients, which continues to work through excess inventory, particularly in bourbon, and shifts in consumer consumption levels across the alcohol industry."

MGP Ingredients, Inc. (NASDAQ:MGPI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held MGP Ingredients, Inc. (NASDAQ:MGPI) at the end of the third quarter, which was 26 in the previous quarter. While we acknowledge the potential of MGP Ingredients, Inc. (NASDAQ:MGPI) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. 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.

In another article, we covered MGP Ingredients, Inc. (NASDAQ:MGPI) and shared the list of consumer defensive stocks with more than 50% upside. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.