Small-Cap Fund Highlights UGI’s 18.5% Annual Gain and Debt Repayment
FPA’s Queens Road Small Cap Value Fund ranked UGI Corporation among its top-five Q4 2025 holdings, citing a 1.97% one-month gain, 18.53% annual return, and $8.22 billion market cap. The fund praised UGI’s redirection of cash flow to repay Amerigas and utility holding debt and its upgraded long-term EPS growth forecast.
1. Fund Q4 Performance
FPA Queens Road Small Cap Value Fund returned –0.36% in Q4 2025 versus a 3.26% gain for the Russell 2000 Value Index, driven by quality and value stocks during market volatility.
2. UGI Stock Metrics
UGI Corporation shares closed at $38.26 on February 12, 2026, delivering a 1.97% return over one month and an 18.53% gain over twelve months, with a market capitalization of $8.218 billion.
3. Portfolio Rationale
The fund highlighted UGI’s diversified operations—including regulated pipelines, European propane distribution and Amerigas—while commending management’s focus on channeling cash flow to Amerigas and utility holding company debt reduction.
4. Growth Outlook
Fund managers noted an upgrade to UGI’s long-term EPS growth rate announced during recent earnings, viewing improved financial positioning and early Amerigas turnaround results as catalysts for future returns.