Do You Have Conviction in UGI Corp's (UGI) Improved Financial Position?

Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund returned 8.60% compared to a 4.97% return for the Russell 2000 Value Index. Moreover, the Fund returned 5.87% YTD, compared to -3.16% for the index. Additionally, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, FPA Queens Road Small Cap Value Fund highlighted stocks such as UGI Corporation (NYSE:UGI). UGI Corporation (NYSE:UGI) engages in the marketing and distribution of energy products and services. UGI Corporation’s (NYSE:UGI) one-month return was -3.95%, and its shares gained 44.09% of their value over the last 52 weeks. On August 15, 2025, UGI Corporation (NYSE:UGI) stock closed at $35.23 per share, with a market capitalization of $7.572 billion.

FPA Queens Road Small Cap Value Fund stated the following regarding UGI Corporation (NYSE:UGI) in its second quarter 2025 investor letter:

"UGI Corporation (NYSE:UGI) is a well run gas and electric utility in Western Pennsylvania and West Virginia. The company also owns a sizable regulated pipeline business, a large propane distribution business in Europe, and Amerigas, the U.S.’s largest propane distributor. UGI has been redirecting cash flow to pay down debt at Amerigas and the utility holding company. We are pleased with the company’s improved financial position and with green shoots at Amerigas."

UGI Corporation (NYSE:UGI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held UGI Corporation (NYSE:UGI) at the end of the first quarter, which was 27 in the previous quarter. While we acknowledge the potential of UGI Corporation (NYSE:UGI) 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 UGI Corporation (NYSE:UGI) and shared the list of stocks Jim Cramer recently talked about. In addition, please check out our hedge fund investor letters Q2 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.