What Makes ONE Gas (OGS) an Investment Bet?

Aristotle Capital Boston, LLC, an investment advisor, released its “Small Cap Equity Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the small-cap equities delivered strong results with the Russell 2000 Index reaching its first all-time high since November 2021. A favorable macroeconomic backdrop led the rally. In the quarter, the fund (Class I-2) delivered a return of 3.16% underperforming the 12.39% total return of the Russell 2000 Index. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Aristotle Small Cap Equity Fund highlighted stocks such as ONE Gas, Inc. (NYSE:OGS). ONE Gas, Inc. (NYSE:OGS) is a U.S.-based regulated natural gas distribution utility company. The one-month return for ONE Gas, Inc. (NYSE:OGS) was -4.92%, and its shares gained 14.73% over the last 52 weeks. On December 18, 2025, ONE Gas, Inc. (NYSE:OGS) stock closed at $78.84 per share, with a market capitalization of $4.72 billion.

Aristotle Small Cap Equity Fund stated the following regarding ONE Gas, Inc. (NYSE:OGS) in its third quarter 2025 investor letter:

“ONE Gas, Inc. (NYSE:OGS) is an Oklahoma-based, fully regulated gas utility company with service territories in Oklahoma, Kansas, and Texas. The company has a proven track record of consistent rate base increases driven by population growth and infrastructure investments. A favorable regulatory backdrop in each of their service territories should allow for continued operational consistency and regular modest dividend increases, creating an attractive total return opportunity for the Fund.”

ONE Gas, Inc. (NYSE:OGS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 28 hedge fund portfolios held ONE Gas, Inc. (NYSE:OGS) at the end of the third quarter, up from 24 in the previous quarter. In the third quarter of 2025, ONE Gas, Inc. (NYSE:OGS) net income of $26.5 million or $0.44 per diluted share compared with $19.3 million or $0.34 in Q3 2024. While we acknowledge the risk and potential of ONE Gas, Inc. (NYSE:OGS) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ONE GAS, INC. (NYSE:OGS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In addition, please check out our hedge fund investor letters Q3 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.