Mairs & Power Small Cap Fund Expects MGP Ingredients’ (MGPI) Cyclical Pressures to Ease

1 hour ago 1

Soumya Eswaran

Mon, April 6, 2026 astatine 8:53 AM CDT 3 min read

Mairs & Power, an concern advisor, released the fourth-quarter 2025 capitalist missive for the “Mairs & Power Small Cap Fund.” A transcript of the missive tin beryllium downloaded here. In 2025, artificial quality (AI) and marketplace attraction dominated the market. Increased concern successful exertion and AI infrastructure drove rising valuations and firm spending, starring to bubble-like tendencies. However, easing inflation, a Federal Reserve complaint chopped successful Q4, and resilient firm net provided immoderate optimism. In this environment, the Fund returned 3.98% successful 2025, trailing the Russell 2000 Total Return (TR) Index’s 12.81% gain, the S&P Small Cap 600 TR’s 6.02% return, and the Morningstar U.S. Fund Small Blend’s 7.68% gain. Macro headwinds affected smaller companies successful 2025, but the 2nd fractional of the twelvemonth saw small-cap stocks summation arsenic the labour marketplace softened. Stock enactment notably impacted performance, particularly successful Health Care, Information Technology, and Materials. While assemblage allocation positively contributed. Looking up to 2026, the Fund remains optimistic astir small-cap stocks, which are expected to turn astatine oregon supra the S&P 500's rate. In addition, delight cheque the Fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its fourth-quarter 2025 capitalist letter, Mairs & Power Small Cap Fund highlighted MGP Ingredients, Inc. (NASDAQ:MGPI). MGP Ingredients, Inc. (NASDAQ:MGPI) is simply a starring shaper and distributor of distilled spirits, branded spirits, and nutrient ingredients. On April 2, 2026, MGP Ingredients, Inc. (NASDAQ:MGPI) closed astatine $18.49 per share. One-month instrumentality of MGP Ingredients, Inc. (NASDAQ:MGPI) was -0.75%, and its shares mislaid 31.75% implicit the past 52 weeks. MGP Ingredients, Inc. (NASDAQ:MGPI) has a marketplace capitalization of $395.01 million.

Mairs & Power Small Cap Fund stated the pursuing regarding MGP Ingredients, Inc. (NASDAQ:MGPI) successful its 4th fourth 2025 capitalist letter:

"Notable detractors from comparative show during the play were Inspire Medical, CVRx, and MGP Ingredients, Inc. (NASDAQ:MGPI). Difficult conditions crossed the beer/wine/spirits manufacture person impacted MGP Ingredients arsenic the institution continues to enactment done elevated bourbon inventory levels. We judge those cyclical pressures volition apt easiness successful the coming quarters, and the company’s premium brands and marketplace stock inactive enactment our optimism for semipermanent growth."

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

MGP Ingredients, Inc. (NASDAQ:MGPI) is not connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 19 hedge money portfolios held MGP Ingredients, Inc. (NASDAQ:MGPI) astatine the extremity of the 4th quarter, up from 18 successful the erstwhile quarter. While we admit the imaginable of MGP Ingredients, Inc. (NASDAQ:MGPI) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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