In this article, we discuss the top 15 stock picks of billionaire Mario Gabelli.
Mario Gabelli is a legendary American investor, renowned for his expertise in value investing and his focus on media, telecommunications, and consumer goods. As the founder and CEO of GAMCO Investors, Gabelli has built a storied career, consistently delivering strong returns for investors while amassing significant wealth. He was born in 1942 in Italy to a family of modest means. His father was a schoolteacher, and the Gabelli family immigrated to the United States when Mario was a child. Settling in the Bronx, Gabelli became fluent in English while excelling academically. He attended Columbia Business School, where he earned his MBA.
Gabelli’s early career began at Lyon, Lavey, and Bessemer, where he worked as a financial analyst before moving to Tudor Investment Corporation in the late 1960s. At Tudor, Gabelli developed a deep interest in media and entertainment stocks, recognizing that these sectors were undervalued and ripe for investment. Gabelli’s early years in finance provided him with a solid foundation in analyzing companies, market trends, and financial statements. In 1976, Gabelli founded Gabelli & Company — which would later become Gabelli Asset Management and then GAMCO Investors — with the goal of applying his value investing philosophy to select, often underappreciated companies.
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Under Gabelli’s stewardship, the firm has delivered above-market returns, with Gabelli’s flagship Gabelli Equity Fund returning an average annualized return of 13% over several decades. Gabelli is an ardent advocate of value investing, a strategy pioneered by Benjamin Graham and Warren Buffett. His approach emphasizes thorough analysis, buying companies at a significant discount to their intrinsic value, and holding them for the long term. One of Gabelli’s most notable achievements was his early recognition of the potential in media companies. He was one of the first investors to spot the potential of CBS, Time Warner, and Viacom, turning those investments into massive successes. Gabelli is particularly well-known for his focus on the telecommunications sectors as well. He has invested in companies like Comcast, Disney, and Liberty Media, often advocating for management changes and strategic restructuring to unlock value.
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For this article, we selected stocks by combing through the 13F portfolio of GAMCO Investors at the end of the third quarter of 2024. Only the companies that have been in the 13F portfolio of the fund consistently for the past three years were selected. These stocks are also popular among other hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Billionaire Mario Gabelli’s Top 15 Stock Picks
15. Atlanta Braves Holdings, Inc. (NASDAQ:BATRA)
Number of Hedge Fund Holders: 12
GAMCO Investors’ Stake: $94.4 million
Atlanta Braves Holdings, Inc. (NASDAQ:BATRA) owns and operates the Atlanta Braves Major League Baseball Club. There are several compelling factors that make this company a strong investment. The first rewarding factor is the company’s great financial growth depicted in the report for the third quarter of 2024. For instance, total revenue grew to $291 million in the third quarter, up from $272 million in the prior year period. Additionally, baseball revenue increased 7% to $273 million and mixed-use development revenue grew 12% to $17 million. This demonstrates that baseball operations along with mixed-use development are contributing to revenue growth positively.
14. Watts Water Technologies, Inc. (NYSE:WTS)
Number of Hedge Fund Holders: 24
GAMCO Investors’ Stake: $99.7 million
Watts Water Technologies, Inc. (NYSE:WTS) makes and sells systems that manage and control the flow of fluids and energy. The following elements demonstrate why this company is an excellent investment choice. Firstly, the report for the third quarter of 2024 reflects the company’s robust financial growth, including contributions from acquisition. For instance, reported sales of $544 million increased 8%. Secondly, the company’s acquisition of I-CON Systems adds great worth to the company’s investment portfolio. This would allow the company to expand its digital water management solutions and particularly target the institutional market with innovative water management systems. This acquisition also aligns with Watts’ ongoing strategy to develop smart and connected products with IoT connectivity. Moreover, the company continues its partnership supporting Planet Water Foundation and its impactful Project 24 campaign to help expand access to clean water for vulnerable communities around the world.
13. Ryman Hospitality Properties, Inc. (NYSE:RHP)
Number of Hedge Fund Holders: 28
GAMCO Investors’ Stake: $104.5 million
Ryman Hospitality Properties, Inc. (NYSE:RHP) is a leading lodging and hospitality real estate investment trust that specializes in upscale convention center resorts and entertainment experiences. This company presents a solid investment opportunity, supported by the following points. Firstly, the company’s strong financial performance is seen in the report for the third quarter of 2024, driven by record levels of net income and Adjusted EBITDA. For instance, the company generated a net income of $60.4 million and recorded consolidated Adjusted EBITDA of $174.8 million. Secondly, the company aims to add approximately 108,000 square feet of premium, carpeted meeting space to its flagship Gaylord Opryland Resort & Convention Center in Nashville, Tennessee. The planned expansion, expected to be complete by spring 2027, includes a new approximately 31,000-square-foot ballroom, approximately 38,000 square feet of breakout space and approximately 39,000 square feet of pre-function space.
12. Republic Services, Inc. (NYSE:RSG)
Number of Hedge Fund Holders: 45
GAMCO Investors’ Stake: $107.7 million
Republic Services, Inc. (NYSE:RSG) provides non-hazardous solid waste collection, transfer, and disposal services for commercial, industrial, municipal, and residential customers. There are several compelling factors that make this company a strong investment. Firstly, the report for the third quarter of 2024 portrays a compelling picture of the company’s financial growth. The total revenue growth of 6.5% includes 4.2% organic growth and 2.3% growth from acquisitions. Third quarter core price on total revenue increased revenue by 6.2%. Core price on related business revenue increased revenue by 7.4%, which consisted of 9.1% in the open market and 4.8% in the restricted portion of the business. Secondly, Republic Services expects to invest at least $500 million in acquisitions, significantly lower than the $1.8 billion invested in 2023.
11. The Bank of New York Mellon Corporation (NYSE:BK)
Number of Hedge Fund Holders: 45
GAMCO Investors’ Stake: $112.7 million
The Bank of New York Mellon Corporation (NYSE:BK) provides financial products and services. This company is an excellent investment option for the following reasons. Firstly, the report for the fourth quarter of 2024 reflects the company’s strong financial performance, characterized by record revenue and net income and significant profitability expansion. For instance, BNY delivered a record net income of $4.3 billion on record revenue of $18.6 billion and generated a return on tangible common equity of 23% for the year. Significant positive operating leverage resulted in pre-tax margin and profitability expansion, and the company returned $4.4 billion of capital to common shareholders. Secondly, BNY Mellon’s collaboration with Accenture aims to modernize financial services offerings with an initial focus on data management and analytics product development and delivery.
10. AMETEK, Inc. (NYSE:AME)
Number of Hedge Fund Holders: 37
GAMCO Investors’ Stake: $114.3 million
AMETEK, Inc. (NYSE:AME) is an American multinational conglomerate and a global designer and manufacturer of electronic instruments and electromechanical devices. The company’s strong financial growth driven by solid revenue growth and expanding operating margins is witnessed in the report for the third quarter of 2024, and makes it a standout investment. For instance, sales were $1.71 billion, a 5% increase over the third quarter of the prior year. Operating income increased 2% to $445.9 million, operating margins were 26.1% in the quarter and operating cash flow in the quarter was $487.2 million, up 3% versus the prior year, with free cash flow to net income conversion of 135%.
9. Madison Square Garden Sports Corp. (NYSE:MSGS)
Number of Hedge Fund Holders: 40
GAMCO Investors’ Stake: $122.6 million
Madison Square Garden Sports Corp. (NYSE:MSGS) is a professional sports firm. This company emerges as a prime investment opportunity for several reasons. First and foremost, the company’s strong revenue growth is illustrated in the report for the first quarter of 2025. For instance, the company generated revenues of $53.3 million, an increase of $10.3 million, or 24%, as compared to the prior year period. Secondly, the company has announced a partnership with global technology powerhouse and its subsidiary Motorola Mobility. Motorola will also become an Official Partner of Madison Square Garden, the New York Knicks and New York Rangers. This partnership is committed to giving back to society in meaningful ways and driving significant value for businesses through high-profile brand exposure opportunities.
8. Sony Group Corporation (NYSE:SONY)
Number of Hedge Fund Holders: 21
GAMCO Investors’ Stake: $124.2 million
Sony Group Corporation (NYSE:SONY) makes and sells consumer electronics. There are several compelling factors that make this company a strong investment. The first is the company’s strong business performance and growth across its key segments illustrated in the report for the second quarter of 2024. For instance, operating income increased 184% year-on-year to 138.8 billion yen, a new record high for this segment in the second quarter, due to an increase in the profit of hardware, third-party software and network services. Secondly, three blockchain-related companies under Sony Group have announced the launch of the blockchain mainnet Soneium, along with an updated version of crypto asset exchange services and the NFT1 issuance platform. By providing comprehensive solutions from the blockchain —the foundational infrastructure of Web3— to the application layer, the companies will work to support creators in expanding their creativity and enhancing engagement with their fan communities.
7. Textron Inc. (NYSE:TXT)
Number of Hedge Fund Holders: 31
GAMCO Investors’ Stake: $128.5 million
Textron Inc. (NYSE:TXT) operates as an aerospace and defense firm. The following key aspects make this company a standout investment. To start with, the company signals robust financial growth as depicted in the report for the fourth quarter of 2024. For instance, earnings per share was $0.76 and adjusted EPS was $1.34, which indicates better financial health and profitability. In addition, full-year share repurchases were $1.1 billion, reflecting the company’s confidence in its future prospects and a commitment to enhancing shareholder value. Secondly, the company has announced the launch of EvoX, specialized aftermarket upgrade packages designed for Cessna Citation and Beechcraft King Air customers who are seeking the latest aircraft upgrades and modifications to maximize the value of their aircraft.
6. American Express Company (NYSE:AXP)
Number of Hedge Fund Holders: 62
GAMCO Investors’ Stake: $148.5 million
American Express Company (NYSE:AXP) provides payments and travel-related services. The following key aspects make this company a standout investment. To start with, in the third quarter of 2024, total card member spending increased by 6%, and card fee revenue growth accelerated to 18%. The company continued to attract large numbers of new premium card members with 3.3 million new card acquisitions while maintaining high retention rates, excellent credit performance, and expense discipline. Secondly, the company has introduced new initiatives to support low-carbon communities, including the expansion of its carbon footprint tool for select corporate clients. Moreover, the company has announced new product updates and analytics enhancements to its digital cash flow management hub, American Express Business Blueprint, which would help small business card members understand their cash flow trends in a better way.
5. Modine Manufacturing Company (NYSE:MOD)
Number of Hedge Fund Holders: 32
GAMCO Investors’ Stake: $169.7 million
Modine Manufacturing Company (NYSE:MOD) is a Wisconsin-based thermal management company founded in 1916. There are several compelling factors that make this company a strong investment. The first is, as per the report for the fiscal year of 2024, the total revenue generated from the company’s sales of products or services was $2.4 billion. This is a 5% increase from the previous year, indicating that the company has grown its business. Secondly, the company plans to open a new facility in Chennai, India, in mid-2025 to meet the increased demand for mission-critical cooling solutions used at data centers. The facility will manufacture data center cooling equipment under the Airedale by Modine brand, and also cooling modules for stationary power generation equipment. Moreover, the company is opening a new facility in Franklin, leasing a 153,000-square-foot facility.
4. GATX Corporation (NYSE:GATX)
Number of Hedge Fund Holders: 16
GAMCO Investors’ Stake: $180.4 million
GATX Corporation (NYSE:GATX) is a railcar leasing firm. The following elements demonstrate why this company is an excellent investment choice. First of all, the company showed strong financial results for the third quarter of 2024, with net income significantly rising to $89 million, or $2.43 per share. The company saw robust demand in its Rail North America sector, maintaining a high fleet utilization rate and achieving a surge in lease revenues. Secondly, GATX Corporation announced its acquisition of 156 locomotives from Progress Rail for an undisclosed amount. The acquired fleet mix is consistent with GATX’s locomotive fleet strategy. Moreover, the company is heavily invested in making Digital and Automated Coupling (DAC) and is digitizing railcar maintenance workshops across Europe.
3. Crane Company (NYSE:CR)
Number of Hedge Fund Holders: 39
GAMCO Investors’ Stake: $194.5 million
Crane Company (NYSE:CR) manufactures and sells engineered industrial products. This company emerges as a prime investment opportunity for several reasons. First and foremost, as per the report for the third quarter of 2024, sales were $403 million, increasing 14.3% year-over-year, with 4.7% core sales growth. Also, the GAAP operating profit margin was 18.6%, and adjusted operating profit margin was 23.9%, suggesting the company is effectively managing costs and growing its core business, potentially enhancing investor confidence. Secondly, the company has also acquired Cryoworks for $61 million. This acquisition is expected to strengthen Crane Co.’s capabilities in the aerospace and electronics sectors. Moreover, the company has also entered into a definitive agreement to sell its Engineered Materials business to KPS Capital Partners, LP for $227 million, allowing the company to focus on its core industrial operations and enhance shareholder value.
2. Mueller Industries, Inc. (NYSE:MLI)
Number of Hedge Fund Holders: 27
GAMCO Investors’ Stake: $225.6 million
Mueller Industries, Inc. (NYSE:MLI) markets copper, brass, aluminum, and plastic products. There are several compelling factors that make this company a strong investment. Firstly, as per the report for the third quarter, net sales were $997.8 million. The increase in net sales was attributable to the inclusion of $102.4 million of sales from recently acquired businesses, as well as the higher copper prices. This combination indicates strong growth potential and enhanced profitability, positioning the company for future success. Secondly, the company has acquired Nehring Electrical Works Company and certain affiliated companies. The acquisition of Nehring provides a substantial platform for long-term growth in the electrical and power infrastructure space and complements the other critical infrastructure sectors already supported by Mueller. Moreover, the company has also acquired Elkhart Products Corporation. This acquisition would increase production capacity and potentially drive revenue growth.
1. Herc Holdings Inc. (NYSE:HRI)
Number of Hedge Fund Holders: 26
GAMCO Investors’ Stake: $227.3 million
Herc Holdings Inc. (NYSE:HRI) operates as an equipment rental supplier. This company is an excellent investment option for the following reasons. As per the report for the third quarter of 2024, the rental revenue recorded was $866 million, an increase of 13%, highlighting strong demand and growth in that specific segment. Also, total revenues were $965 million, showing an increase of 6%, signaling solid performance across the company, and positioning it well for future growth. It has featured in the GAMCO portfolio consistently since the third quarter of 2016, making it one of the long-term stock picks of Mario Gabelli.
While we acknowledge the potential of Herc Holdings Inc. (NYSE:HRI) as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than Herc Holdings Inc. (NYSE:HRI) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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