Here’s Why UGI Corporation (UGI) Struggled in Q2

Diamond Hill Capital, an investment management company, released its “Mid Cap Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. The portfolio delivered positive results in the second quarter while modestly trailing the Russell Midcap Index. The healthcare holdings positively contributed to the relative performance while the information technology and materials holdings trailed benchmark peers. The fund returned 6.76% (net) in Q2 compared to 9.10% for the benchmark. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2023.

Diamond Hill Capital Mid Cap Strategy highlighted stocks like UGI Corporation (NYSE:UGI) in the second quarter 2023 investor letter. Headquartered in King of Prussia, Pennsylvania, UGI Corporation (NYSE:UGI) markets and distributes energy products and services. On September 6, 2023, UGI Corporation (NYSE:UGI) stock closed at $24.99 per share. One-month return of UGI Corporation (NYSE:UGI) was 4.82%, and its shares lost 37.46% of their value over the last 52 weeks. UGI Corporation (NYSE:UGI) has a market capitalization of $5.235 billion.

Diamond Hill Capital Mid Cap Strategy made the following comment about UGI Corporation (NYSE:UGI) in its Q2 2023 investor letter:

“On an individual holdings basis, among our bottom contributors in Q2 were Ashland and UGI Corporation (NYSE:UGI). Propane distributor UGI has struggled to stem customer churn and consequently had to infuse a small amount of equity into the business in Q2 to meet its debt covenants — in turn pressuring shares. However, we anticipate UGI will be able to remain in compliance with its debt covenants over the next 12 months, giving management time to take further corrective action. In the interim, we will monitor the position closely for signs of change in either direction.”

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UGI Corporation (NYSE:UGI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held UGI Corporation (NYSE:UGI) at the end of second quarter which was 20 in the previous quarter.

We discussed UGI Corporation (NYSE:UGI) in another article and shared the list of 52-week low dividend stocks to consider. In addition, please check out our hedge fund investor letters Q2 2023 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.