Soumya Eswaran
2 min read
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Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund returned -2.51% compared to a -7.74% return for the Russell 2000 Value Index. President Trump announced his tariffs on April 2nd, causing equity markets to decline sharply and increasing volatility. Additionally, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its first-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 8.90%, and its shares gained 45.66% of their value over the last 52 weeks. On May 21, 2025, UGI Corporation (NYSE:UGI) stock closed at $35.60 per share with a market capitalization of $7.634 billion.
FPA Queens Road Small Cap Value Fund stated the following regarding UGI Corporation (NYSE:UGI) in its Q1 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."
A view of the skyline from an electricity pylon, to show the ubiquity of the companies energy products.
UGI Corporation (NYSE:UGI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held UGI Corporation (NYSE:UGI) at the end of the fourth quarter, compared to 26 in the third quarter. While we acknowledge the potential of UGI Corporation (NYSE:UGI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
In another article, we covered UGI Corporation (NYSE:UGI) and shared Diamond Hill Small Cap Fund's views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.
