In this article, we discuss the top 10 stock picks of Mario Gabelli. If you want to skip our detailed analysis of these stocks, go directly to the Top 5 Stock Picks of Mario Gabelli.
Mario Gabelli has earned legendary status on Wall Street through his value investing prowess, growing his hedge fund, GAMCO Investors, into one of the most formidable investment firms in the market over the past few decades. The billionaire, whose personal net worth stands close to $2 billion, in a recent noteworthy interview with business news publication Business Insider, outlined his border economic outlook and addressed the inflation concerns surrounding the stock market. Gabelli predicted that a major pullback in stocks was unlikely for at least another twelve months.
Although Gabelli is famous for his expertise on value equities, the market also takes his words on growth stocks very seriously, considering that his fund owns sizable stakes in Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), and Microsoft Corporation (NASDAQ:MSFT). Gabelli has termed the rise of “gamified trading platforms” like Robinhood and other applications a consequence of zero commissions and virus lockdowns, appreciating the role of technology in pushing a new generation into the market.
The hedge fund of Gabelli had a portfolio value of $11.3 billion at the end of September, The top ten holdings comprise just 15% of the portfolio, and are concentrated in the industrial and consumer goods sectors. Latest data shows that between June and September, GAMCO Investors reduced holdings in 403 stocks, made new purchases in 57, sold out of 51, and made additional purchases in 232 stocks. Gabelli gained prominence on Wall Street in the 1980s through successful bets on the telecom and media firms.
Our Methodology
The stocks were picked from the investment portfolio of GAMCO Investors at the end of the third quarter of 2021. They are arranged according to the value of each holding in the portfolio of the fund.
Top Stock Picks of Mario Gabelli
10. The Bank of New York Mellon Corporation (NYSE:BK)
Number of Hedge Fund Holders: 46
The Bank of New York Mellon Corporation (NYSE:BK) provides financial products and services. According to latest 13F data, the fund holds a stake in the firm worth more than $119 million, consisting of over 2.2 million shares.
In early December, The Bank of New York Mellon Corporation (NYSE:BK) announced that it will be acquiring Optimal Asset Management, a direct indexing solutions provider, as part of a larger plan to build business solutions for the advisory industry.
At the end of the third quarter of 2021, 46 hedge funds in the database of Insider Monkey held stakes worth $4.6 billion in The Bank of New York Mellon Corporation (NYSE:BK), compared to 52 the preceding quarter worth $4.9 billion.
Among the hedge funds being tracked by Insider Monkey, Omaha-based investment firm Berkshire Hathaway is a leading shareholder in The Bank of New York Mellon Corporation (NYSE:BK) with 72 million shares worth more than $3.7 billion.
Just like Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), and Microsoft Corporation (NASDAQ:MSFT), The Bank of New York Mellon Corporation (NYSE:BK) is one of the stocks that hedge funds are buying.
In its Q3 2020 investor letter, First Eagle Investment Management, an asset management firm, highlighted a few stocks and The Bank of New York Mellon Corporation (NYSE:BK) was one of them. Here is what the fund said:
“The world’s largest custody bank, Bank of New York Mellon has been challenged by the persistently low-rate environment. While custody tends to be a wide-moat business, revenue generation is highly sensitive to net interest margins. Low rates have also hurt Bank of New York’s other primary line of business—investment management—as it has been forced to waive fees on its money market funds to preserve their net asset value.”
9. Watts Water Technologies, Inc. (NYSE:WTS)
Number of Hedge Fund Holders: 16
Watts Water Technologies, Inc. (NYSE:WTS) makes and sells systems that manage and control the flow of fluids and energy. Latest filings show that GAMCO Investors is long on more than 722,429 shares in the firm worth $121 million, representing 1.07% of the portfolio.
In November, Stifel analyst Nathan Jones raised the price target on Watts Water Technologies, Inc. (NYSE:WTS) stock to $189 from $159 and kept a Hold rating, noting the valuation reflected the “high quality” of the company.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Impax Asset Management is a leading shareholder in Watts Water Technologies, Inc. (NYSE:WTS) with 2 million shares worth more than $348 million.
At the end of the third quarter of 2021, 16 hedge funds in the database of Insider Monkey held stakes worth $515 million in Watts Water Technologies, Inc. (NYSE:WTS), compared to 18 the preceding quarter worth $471 million.
8. Mueller Industries, Inc. (NYSE:MLI)
Number of Hedge Fund Holders: 14
Mueller Industries, Inc. (NYSE:MLI) markets copper, brass, aluminum, and plastic products. In the filings for the third quarter, the fund detailed that it owned 3.1 million shares of the company worth $129 million, representing 1.14% of the portfolio.
Mueller Industries, Inc. (NYSE:MLI) has registered solid earnings and revenue growth over the past three years and is one of the most trusted names in the market due in part to a company performance history stretching back more than 100 years.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Royce & Associates is a leading shareholder in Mueller Industries, Inc. (NYSE:MLI) with 623,278 shares worth more than $25 million.
At the end of the third quarter of 2021, 14 hedge funds in the database of Insider Monkey held stakes worth $220 million in Mueller Industries, Inc. (NYSE:MLI), compared to 17 the preceding quarter worth $227 million.
7. Textron Inc. (NYSE:TXT)
Number of Hedge Fund Holders: 31
Textron Inc. (NYSE:TXT) operates as an aerospace and defense firm. GAMCO Investors, as of the end of September, had over 1.9 million shares of the company worth $136 million in the portfolio.
In late November, Textron Inc. (NYSE:TXT) announced that the Beechcraft Denali, a single-engine turboprop powered by a new Catalyst engine, completed the first test flight and reached an altitude of 15,600 feet and a top speed of 180 knots.
At the end of the third quarter of 2021, 31 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in Textron Inc. (NYSE:TXT), up from 22 in the previous quarter worth $962 million.
Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Adage Capital Management is a leading shareholder in Textron Inc. (NYSE:TXT) with 5.2 million shares worth more than $366 million.
6. Crane Co. (NYSE:CR)
Number of Hedge Fund Holders: 20
Crane Co. (NYSE:CR) makes and sells engineered industrial products. The hedge fund of Mario Gabelli entered the fourth quarter of 2021 with more than 1.5 million shares of the company in the portfolio worth more than $142 million.
Morgan Stanley analyst Kristine Liwag recently initiated coverage of Crane Co. (NYSE:CR) stock with an Equal Weight rating and a price target of $111, noting that the firm had a “market-leading niche business” with high barriers to entry.
At the end of the third quarter of 2021, 20 hedge funds in the database of Insider Monkey held stakes worth $286 million in Crane Co. (NYSE: CR), compared to 25 in the previous quarter worth $303 million.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Royce & Associates is a leading shareholder in Crane Co. (NYSE:CR) with 309,281 shares worth more than $29 million.
Along with Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), and Microsoft Corporation (NASDAQ:MSFT), Crane Co. (NYSE:CR) is one of the stocks on the radar of elite investors.
Click to continue reading and see Top 5 Stock Picks of Mario Gabelli.
Suggested Articles:
- 10 Stocks to Buy and Hold for Long Term According to Warren Buffett
- Hedge Funds are Selling Tesla (TSLA) and Buying These 10 EV Stocks Instead
- 10 Best SPACs to Invest In According to Reddit
Disclosure. None. Top 10 Stock Picks of Mario Gabelli is originally published on Insider Monkey.
