Here's What Impacted Knife River (KNF) 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 Knife River Corporation (NYSE:KNF). Knife River Corporation (NYSE:KNF) is a US-based aggregates-led construction materials and contracting services provider. The one-month return of Knife River Corporation (NYSE:KNF) was 7.14%, and its shares lost 27.65% of their value over the last 52 weeks. On December 10, 2025, Knife River Corporation (NYSE:KNF) stock closed at $76.08 per share, with a market capitalization of $4.311 billion.

Mairs & Power Small Cap Fund stated the following regarding Knife River Corporation (NYSE:KNF) in its third quarter 2025 investor letter:

"Notable detractors from relative performance during the period were Inspire Medical, MGP Ingredients, and Knife River Corporation (NYSE:KNF). Knife River, a provider of aggregates and construction services, experienced a slowdown due to concerns related to federally funded construction programs, weather-related slowdowns, and concerns around environmental delays."

Knife River Corporation (NYSE:KNF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Knife River Corporation (NYSE:KNF) at the end of the third quarter, which was 24 in the previous quarter. While we acknowledge the potential of Knife River Corporation (NYSE:KNF) 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 Knife River Corporation (NYSE:KNF) and shared the list of best infrastructure stocks to buy with huge 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.