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.”

Is MGP Ingredients, Inc. (MGPI) the Underperforming Stock Targeted By Short Sellers?

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 risk and potential of MGP Ingredients, Inc. (NASDAQ:MGPI) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MGP Ingredients, Inc. (NASDAQ:MGPI) and that has 10,000% upside potential, check out our report about this cheapest 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.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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