In this piece, we will take a look at Mario Gabelli Stock Picks for 2023: Top 15. For more stocks, head on over to Mario Gabelli Stock Picks for 2023: Top 5.
GAMCO Investors, Inc. is an American hedge fund that is headquartered in Rye, New York. It is one of the largest investment institutions in the world, with a total of $9.2 billion of stock market investments as of the fourth quarter of last year (for the biggest hedge funds in the world, head on over to 15 Biggest Hedge Funds in the World by AUM). The fund is managed by Mr. Mario J. Gabelli, who is its chief executive officer. Mr. Gabelli set up GAMCO, previously known as Gabelli Asset Management Company, in 1976, and has been running it since then, giving him decades of experience in the finance industry.
2022 has been a year of significant economic turmoil, and as we enter 2023, institutions and investors all over are sharing their thoughts on what to expect. For instance, investment bank The Goldman Sachs Group, Inc. (NYSE:GS) is one of the more optimistic analysts right now, as it believes that the ever dreaded recession that is being speculated since the mid of last year might be avoided. Mr. Gabelli also has a take on the current situation, and in an interview with CNBC he mirrored sentiments that while the first half of this year will be turbulent, investors can expect the market to take off in 2024. His research comes from the proverbial horse’s mouth, as the investor outlined:
“A year from now, Joe [laughs], it’s gonna be 2024 and the opportunities a year later are gonna be terrific. But short term, what I’m learning from visiting companies, listening to meetings, reading the dynamics, one, goods are becoming more available, but more importantly, the managements have learned how to deal with pass throughs, how to deal with inflation, how to deal with currency, how to deal with the balance sheet and interest rates. And they’re learning the inelastic questions about the demand for their products. Now from my point of view revenue’s gonna be quite okay this year in nominal terms. Gross margins are going to be challenged short term for the manufacturing sector. SG&A, kind of held in check, and then the question is taxes, we talked about, there’s a 15% tax on booked profits, that’s kinda gotta be worked out. Bottom line, I think that things are okay, but there’s going to be a lot of tension in the first half of the year in the markets.”
Naturally, his insight merits a deeper look at GAMCO Investors’ latest investments, out of which the top three are Herc Holdings Inc. (NYSE:HRI), GATX Corporation (NYSE:GATX), and Aerojet Rocketdyne Holdings, Inc. (NYSE:AJRD).
Our Methodology
We took a look at GAMCO Investors’ Q4 portfolio to check which firms are on its radar. These were then sorted through the total dollar amount invested and the top fifteen picks are listed here.
Mario Gabelli Stock Picks for 2023: Top 15
15. Griffon Corporation (NYSE:GFF)
GAMCO Investors’ Q4 2022 Stake: $97.1 million
Number of Hedge Fund Holders in Q3 2022: 26
Griffon Corporation (NYSE:GFF) is a toolmaking company that serves the needs of the home building and construction industry by providing products such as storage products, carts, shears, and closet organization products. It is also one of the oldest companies in America, having been set up in 1774.
Griffon Corporation (NYSE:GFF)’s first fiscal quarter results released in January 2023 saw the firm beat analyst estimates as it posted $48 million in revenue. 26 of the 920 hedge funds polled by Insider Monkey in Q3 2022 had bought the firm’s shares, and in the prior quarter, Mr. Gabelli’s hedge fund had owned 2.7 million shares that were worth $97 million.
Griffon Corporation (NYSE:GFF)’s largest investor is Travis Cocke’s Voss Capital which owns 2.8 million shares that are worth $103 million.
Along with GATX Corporation (NYSE:GATX), Herc Holdings Inc. (NYSE:HRI), and Aerojet Rocketdyne Holdings, Inc. (NYSE:AJRD), Griffon Corporation (NYSE:GFF) is a top Mario Gabelli stock pick.
14. Republic Services, Inc. (NYSE:RSG)
GAMCO Investors’ Q4 2022 Stake: $97.9 million
Number of Hedge Fund Holders in Q3 2022: 41
Republic Services, Inc. (NYSE:RSG) is a waste management firm headquartered in Phoenix, Arizona. The firm operates through collection operations, transfer stations, and landfills.
After a devastating train accident in Ohio in February 2023, Republic Services, Inc. (NYSE:RSG) offered the area’s residents free of charge waste collection services. GAMCO Investors owned a $97.9 million stake in the company during last year’s third quarter, which came through 759,161 shares.
Insider Monkey took a look at 920 hedge fund portfolios for last year’s third quarter to discover that 41 had invested in Republic Services, Inc. (NYSE:RSG).
Out of these, Ian Simm’s Impax Asset Management is Republic Services, Inc. (NYSE:RSG)’s largest investor. It owns 2 million shares that are worth $266 million.
13. EnPro Industries, Inc. (NYSE:NPO)
GAMCO Investors’ Q4 2022 Stake: $100 million
Number of Hedge Fund Holders in Q3 2022: 15
EnPro Industries, Inc. (NYSE:NPO) is an industrial machinery company headquartered in Charlotte, North Carolina. It makes and sells products such as seals, tubes, joints, and gaskets.
Amidst a broader market turmoil in 2022 that saw major indices drop massively in value once again, EnPro Industries, Inc. (NYSE:NPO)’s shares weathered the storm and are currently up 7.16% over the past 12 months. By the end of 2022’s third quarter, 15 of the 920 hedge funds polled by Insider Monkey had held a stake in the company.
GAMCO Investors owns a $100 million stake in EnPro Industries, Inc. (NYSE:NPO) that comes through 924,234 shares.
EnPro Industries, Inc. (NYSE:NPO)’s second largest hedge fund shareholder is David Paradice’s Paradice Investment Management which owns 316,563 shares that are worth $34 million.
12. AMETEK, Inc. (NYSE:AME)
GAMCO Investors’ Q4 2022 Stake: $102 million
Number of Hedge Fund Holders in Q3 2022: 45
AMETEK, Inc. (NYSE:AME) is another industrial machinery company. The firm is based in Berwyn, Pennsylvania, and it sells instruments for a variety of crucial industries such as semiconductor fabrication and aerospace.
AMETEK, Inc. (NYSE:AME) reported bumper fourth quarter of 2022 results, even as several other large and well established firms failed to bear inflationary pressures. Its results, revealed in February 2023, outlined that the firm had raked in a massive $1.63 billion in revenue, for an 8% annual growth. GAMCO Investors owned 731,515 shares of the firm worth $102 million in Q4 2022.
Insider Monkey scanned 920 hedge fund portfolios for their September quarter of 2022 investments to discover that 45 had bought AMETEK, Inc. (NYSE:AME)’s shares.
Out of these, Dimitry Balyasny’s Balyasny Asset Management is AMETEK, Inc. (NYSE:AME)’s largest investor. It owns 945,915 shares that are worth $132 million.
11. Genuine Parts Company (NYSE:GPC)
GAMCO Investors’ Q4 2022 Stake: $102 million
Number of Hedge Fund Holders in Q3 2022: 36
Genuine Parts Company (NYSE:GPC) is an automotive parts manufacturer. It makes and sells products for industries as well, including power generation and industrial manufacturing.
Genuine Parts Company (NYSE:GPC) has one of the stronger balance sheets that you’re likely to come across, as it has a low debt to EBITDA ratio of 1.2 and an interest coverage greater than 24x. Insider Monkey’s Q3 2022 hedge fund survey of 920 funds revealed that 36 had held a stake in the firm.
Mr. Gabelli’s hedge fund, on the other hand, had owned 605,668 Genuine Parts Company (NYSE:GPC) shares that were worth $102 million in Q4 2022.
Genuine Parts Company (NYSE:GPC)’s largest investor is Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital which owns 1.4 million shares that are worth $250 million.
10. Madison Square Garden Sports Corp. (NYSE:MSGS)
GAMCO Investors’ Q4 2022 Stake: $112 million
Number of Hedge Fund Holders in Q3 2022: 38
Madison Square Garden Sports Corp. (NYSE:MSGS) is a sports company with several valuable brands such as NHL and NBA teams. It also owns sports properties, a league team, and a gaming franchise.
Madison Square Garden Sports Corp. (NYSE:MSGS) is currently asking the New York government to approve a permanent permit for its venue above the Penn station. GAMCO Investors owned 613,665 shares of the firm in Q4 2022, for a $112 million stake.
Insider Monkey’s third quarter of 2022 survey covering 920 hedge funds revealed that 38 had held a stake in Madison Square Garden Sports Corp. (NYSE:MSGS).
Out of these, Jim Davidson, Dave Roux, and Glenn Hutchins’s Silver Lake Partners is Madison Square Garden Sports Corp. (NYSE:MSGS)’s largest investor in our database. It owns 1.8 million shares that are worth $348 million.
9. American Express Company (NYSE:AXP)
GAMCO Investors’ Q4 2022 Stake: $119.4 million
Number of Hedge Fund Holders in Q3 2022: 68
American Express Company (NYSE:AXP) is a financial services firm that is headquartered in New York, New York. The firm provides credit cards, travel services, and working capital management solutions.
American Express Company (NYSE:AXP) is leveraging the developments in artificial intelligence, by partnering up with Microsoft to develop a platform to make traveling smoother for both firms and their workers. By the end of last year’s September quarter, 68 of the 920 hedge funds surveyed by Insider Monkey had invested in the company.
GAMCO Investors’ Q4 2022 stake in American Express Company (NYSE:AXP) was worth $119 million and it came through the firm owning 808,199 shares.
American Express Company (NYSE:AXP)’s largest shareholder is Warren Buffett’s Berkshire Hathaway which owns 151 million shares that are worth $22 billion.
8. Textron Inc. (NYSE:TXT)
GAMCO Investors’ Q4 2022 Stake: $119.8 million
Number of Hedge Fund Holders in Q3 2022: 28
Textron Inc. (NYSE:TXT) is a defense contractor based in Providence, Rhode Island. The firm makes and sells different kinds of aircraft, fuel systems, tanks, and other products.
Textron Inc. (NYSE:TXT) made a nice upgrade to its Cessna aircraft in January 2023 when it revealed that customers will now be able to operate the aircraft on a variety of runways. Mr. Gabelli’s hedge fund owned 1.6 million Textron Inc. (NYSE:TXT) shares for a $119.8 million stake as of December 2022.
28 of the 920 hedge funds part of Insider Monkey’s Q3 2022 survey had bought Textron Inc. (NYSE:TXT)’s shares.
Out of these, Cliff Asness’ AQR Capital Management is Textron Inc. (NYSE:TXT)’s largest investor. It owns 1.8 million shares that are worth $133 million.
7. Sony Group Corporation (NYSE:SONY)
GAMCO Investors’ Q4 2022 Stake: $119.8 million
Number of Hedge Fund Holders in Q3 2022: 27
Sony Group Corporation (NYSE:SONY) is a Japanese technology behemoth that sells a host of different products such as gaming consoles and laptops. It is based in Tokyo, Japan.
Sony Group Corporation (NYSE:SONY)’s a7R mark III and mark IV cameras won a big contract in February 2023 as Atmos started to integrate them into its fixed wing drone for surveyors. Insider Monkey scoured through 920 hedge fund portfolios for last year’s third quarter to discover that 27 had owned the firm’s shares.
GAMCO Investors owned 1.5 million Sony Group Corporation (NYSE:SONY) shares during Q4 2022 for a $119.8 million stake.
Sony Group Corporation (NYSE:SONY)’s largest shareholder in our database is Ken Fisher’s Fisher Asset Management which owns 5 million shares that are worth $384 million.
6. Crane Holdings, Co. (NYSE:CR)
GAMCO Investors’ Q4 2022 Stake: $144.1 million
Number of Hedge Fund Holders in Q3 2022: 22
Crane Holdings, Co. (NYSE:CR) is an industrial equipment manufacturer. The firm makes and sells fluid handling equipment, systems for aerospace products, and coils used in buildings and vans.
Crane Holdings, Co. (NYSE:CR)’s full year 2022 results saw the firm post $3.3 billion in revenue, which remained static annually in nominal terms. GAMCO Investors held a $144 million stake in the firm during Q4 2022. In the prior quarter, 22 of the 920 hedge funds part of Insider Monkey’s survey had bought the firm’s shares.
Some of Mario Gabelli’s top stock picks for 2023 include Crane Holdings, Co. (NYSE:CR), Herc Holdings Inc. (NYSE:HRI), GATX Corporation (NYSE:GATX), and Aerojet Rocketdyne Holdings, Inc. (NYSE:AJRD).
Click to continue reading and see Mario Gabelli Stock Picks for 2023: Top 5.
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Disclosure: None. Mario Gabelli Stock Picks for 2023: Top 15 is originally published on Insider Monkey.
