Mairs & Power Small-Cap Fund Details Q3 Moves After Lagging AI-Led Market

Overview

• The Small Cap Fund returned 2.06% in the first nine months of 2025 versus 10.39% for the Russell 2000 TR, 4.24% for the S&P SmallCap 600 TR, and 6.15% for the Morningstar U.S. Fund Small Blend.
• Inspire Medical, MGP Ingredients, and Knife River were key detractors, with issues ranging from GLP-1 effects and product rollout and reimbursement delays at Inspire to alcohol consumption shifts and excess bourbon inventory at MGP, and weather, environmental, and federal-program timing concerns at Knife River.
• The fund initiated positions in Patrick Industries after a valuation pullback tied to tariff and inventory concerns, and in Trex on perceived attractive pricing despite housing slowdown worries.
• Insider Monkey’s holdings data show hedge-fund positions fell in MGP Ingredients to 18 from 26 quarter over quarter, rose in Patrick Industries to 29 from 25, and were unchanged in Trex at 41.
• The fund also added James Hardie Industries following its acquisition of AZEK, expecting benefits from shared innovation and cross-selling across the combined product portfolio.