Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” first quarter 2024 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund returned 3.36% compared to a 2.90% return for the Russell 2000 Value Index. Small value and small quality have outperformed over longer periods, although small caps have significantly underperformed over the past ten years. The firm focuses on the high-quality compounders in its portfolio. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
FPA Queens Road Small Cap Value Fund highlighted stocks like UGI Corporation (NYSE:UGI) in the first quarter 2024 investor letter. UGI Corporation (NYSE:UGI) markets and distributes energy products and services. UGI Corporation’s (NYSE:UGI) one-month return was -0.24%, and its shares lost 16.63% of their value over the last 52 weeks. On June 4, 2024, UGI Corporation (NYSE:UGI) stock closed at $24.72 per share with a market capitalization of $5.182 billion.
FPA Queens Road Small Cap Value Fund stated the following regarding UGI Corporation (NYSE:UGI) in its first quarter 2024 investor letter:
“UGI Corporation (NYSE:UGI) owns gas utilities and pipelines in Pennsylvania and West Virginia and the largest propane distribution businesses in the United States and Europe. Despite its disparate parts, UGI has increased consolidated earnings at a relatively steady high- single-digit rate while distributing excess cash through dividends. UGI’s share price has declined because of a combination of poor execution and too much debt at AmeriGas, UGI’s U.S. propane business. On August 30, 2023 UGI announced a review of strategic alternatives. We believe the company’s stock price is attractive at less than 10x earnings, and we have been incrementally adding to the Fund’s position.”
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 31 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held UGI Corporation (NYSE:UGI) at the end of the first quarter which was 33 in the previous 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 discussed UGI Corporation (NYSE:UGI) and shared the list of best high-yield dividend growth stocks to buy. Miller Value Income Strategy added UGI Corporation (NYSE:UGI) to its portfolio in the first quarter 2024.In addition, please check out our hedge fund investor letters Q1 2024 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.
