What Makes UGI Corp. (UGI) a Good Investment?

Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fund returned -0.36% in Q4 2025, compared to the Russell 2000 Value Index’s 3.26%. In 2025, the Fund has returned 13.36% compared to 12.59% gain for the Index. The Fund outperformed in the first half of 2025, when markets were weak and volatile. However, in the second half of 2025, markets favored speculative and low-quality stocks, leading to the Fund’s underperformance. The portfolio is designed to protect clients from market drawdowns by focusing on quality and value. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, FPA Queens Road Small Cap Value Fund highlighted stocks like UGI Corporation (NYSE:UGI). Headquartered in King of Prussia, Pennsylvania UGI Corporation (NYSE:UGI) is an energy products and related services distributor. On February 12, 2026, UGI Corporation (NYSE:UGI) stock closed at $38.26 per share. One-month return of UGI Corporation (NYSE:UGI) was 1.97%, and its shares are up 18.53% over the past twelve months. UGI Corporation (NYSE:UGI) has a market capitalization of $8.218 billion.

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

"UGI Corporation (NYSE:UGI) is a well ack stock 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, green shoots at Amerigas and the upgrade to UGI’s long term EPS growth rate announced during earnings. "

UGI Corporation (NYSE:UGI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 44 hedge fund portfolios held UGI Corporation (NYSE:UGI) at the end of the third quarter, compared to 47 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 a list of high yield utility stocks to buy in 2026. In addition, please check out our hedge fund investor letters Q4 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.