UGI Corporation (UGI) Benefited From Improved Leadership

Diamond Hill Capital, an investment management company, released its “Small Cap Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q1, markets were uneven due to the new presidential administration’s activity, leading to concern about the future. The Russell 3000 Index fell by 4.7% in Q1, the first quarterly loss since Q3 2023. Diamond Hill Small Cap Fund returned -11.56% in Q1, trailing the Russell 2000 Index’s -9.48% return. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its first-quarter 2025 investor letter, Diamond Hill Small Cap 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 11.07%, and its shares gained 36.54% of their value over the last 52 weeks. On May 5, 2025, UGI Corporation (NYSE:UGI) stock closed at $33.52 per share with a market capitalization of $7.201 billion.

Diamond Hill Small Cap Fund stated the following regarding UGI Corporation (NYSE:UGI) in its Q1 2025 investor letter:

“On an individual holdings basis, among our top contributors in Q1 were Mr. Cooper Group and UGI Corporation (NYSE:UGI. Natural gas and electric power utility UGI is benefiting from improved leadership under experienced, new CEO Bob Flexon, who has a solid strategy for improving UGI’s underperforming US propane business. We have confidence Flexon can maximize the value of each of UGI’s business segments and maintain our conviction in the company’s ability to shift its portfolio into more sustainable fuel types over the long term, allowing it to capitalize on its advantage in delivering alternative fuels to rural locations not easily served by gas pipelines.”

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 cheapest AI stock.

In another article, we covered UGI Corporation (NYSE:UGI) and shared the list of best dividend stocks. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.