Mario Gabelli Performance, Portfolio, and Top Picks

In this article, we will take a look at the top stock picks of billionaire Mario Gabelli. If you want to explore similar stocks, you can also take a look at Mario Gabelli's Top 5 Stock Picks.

Mario Gabelli is a renowned American investor, financial analyst, and philanthropist who has made a name for himself in the world of finance. He is the founder, chairman, and CEO of New York-based investment advisory and brokerage firm, GAMCO Investors. As of March 17, Mario Gabelli has a real-time net worth of $1.7 billion. Mr. Gabelli founded GAMCO Investors in 1976 and has grown it into a leading investment management firm with over $29.3 billion in assets under management.

Mario Gabelli's Market Outlook, Top Sectors, and Favorite Stocks

On March 15, Mario Gabelli appeared in an interview on CNBC where he discussed his market outlook along with some of his favorite sectors and stocks. Amid rising geopolitical risks, one of Mario Gabelli's favorite sectors is the aerospace and defense sector and within that sector he likes Textron Inc. (NYSE:TXT).

Mario Gabelli likes the commercial aviation industry and noted that order backlogs for the sector are healthy and rising. One of his top stock picks in the commercial aircraft sector include The Boeing Company (NYSE:BA). As of December 31, Mario Gabelli's hedge fund has a position worth $24.15 million in The Boeing Company (NYSE:BA). As of March 17, The Boeing Company (NYSE:BA) has returned 38.77% to investors over the past 6 months.

Mr. Gabelli is also bullish on the auto sector and noted that it is one of the sectors he is "importantly involved in". Mr. Gabelli's hedge fund has a sizable position in American aftermarket car parts company, Genuine Parts Company (NYSE:GPC).

Another one of Mario Gabelli's favorite stocks is communication services and broadcasting company TEGNA Inc. (NYSE:TGNA). Mr. Gabelli noted that "broadcasting is gonna do extremely well in a political environment (which) you have next year". As of December 31, GAMCO Investors has a position worth $10.9 million in TEGNA Inc. (NYSE:TGNA) and the investment covers 0.11% of the firm's 13F portfolio. As of March 17, TEGNA Inc. (NYSE:TGNA) is trading at a TTM PE multiple of 5x.

Mario Gabelli also named Warner Bros. Discovery, Inc. (NASDAQ:WBD) and Paramount Global (NASDAQ:PARA). While Paramount Global (NASDAQ:PARA) is suffering "a negative cash flow problem" for the short term, Mario Gabelli is bullish on the company in the long-term. As of December 31, GAMCO Investors has a position worth $10.9 million in Paramount Global (NASDAQ:PARA). Gabelli also likes Warner Bros. Discovery, Inc. (NASDAQ:WBD) and as of March 17, the stock has gained 50.31% year to date. GAMCO Investors' stake in Warner Bros. Discovery, Inc. (NASDAQ:WBD) is valued at $18.3 million, as of December 31.

Finally, Mario Gabelli is bullish on CNH Industrial N.V. (NYSE:CNHI) and recommends buying it at current levels. As of December 31, GAMCO Investors has a position worth $151.3 million in CNH Industrial N.V. (NYSE:CNHI) and the investment covers 1.62% of the firm's 13F portfolio. As of March 17, CNH Industrial N.V. (NYSE:CNHI) has returned 11.81% to investors over the past 6 months and is trading at a PE multiple of 9x.

Mario Gabelli thinks "the markets might be flat for 2 or 3 years, but you can still make a lot of money". Mr. Gabelli also gave his global economic outlook and said that he thinks China will outperform significantly in the second half of 2024 relative to the second half of 2021 and this will affect macro demand. Mario Gabelli spoke about the consumer in the U.S. and noted that the consumer remains strong and has spending power. Mario Gabelli thinks that "the consumer will be okay in the second half of the year, even with the current interest rates".

GAMCO Investors' Performance and Portfolio

GAMCO Investors is known for its value-oriented investment strategies and has a strong track record of success. Over the past 2 years, the fund has generated an average quarter-on-quarter return of 4.28%. For the fiscal fourth quarter of 2022, GAMCO Investors generated a quarter-on-quarter return of 8.12%. The firm initiated 65 positions, increased its exposure to 204 securities, exited 78 positions, and reduced its exposure to 428 securities. GAMCO Investors increased its portfolio value to $9.29 billion in Q4 2022, up 1.09% from $8.49 billion in the preceding quarter.

Some of the Mario Gabelli's top stock picks include Mueller Industries, Inc. (NYSE:MLI), Crane Holdings, Co. (NYSE:CR), and Herc Holdings Inc. (NYSE:HRI). Let's now look at these stocks, and others, in detail below.

Mario Gabelli Performance, Portfolio, and Top Picks
Mario Gabelli Performance, Portfolio, and Top Picks

Our Methodology

To determine Mario Gabelli's top stock picks, we sifted through the Q4 2022 13F filings of GAMCO Investors. We picked the firm's top 10 holdings and sorted them in ascending order of GAMCO Investors' stake in it. We have also included the hedge fund sentiment along with each stock.

Mario Gabelli Performance, Portfolio, and Top Picks

10. Genuine Parts Company (NYSE:GPC)

GAMCO Investors' Stake Value: $105,068,633

Number of Hedge Fund Holders: 35

Genuine Parts Company (NYSE:GPC) is involved in the distribution and supply of automotive parts and also parts for industrial equipment. The stock is one of Mario Gabelli's top stock picks. As of December 31, GAMCO Investors has a stake worth $105 million in Genuine Parts Company (NYSE:GPC) and the investment covers 1.13% of the firm's 13F portfolio.

On February 23, Genuine Parts Company (NYSE:GPC) released strong earnings for the fiscal fourth quarter of 2022. The company reported an EPS of $2.05 and beat EPS estimates by $0.17. The company generated a revenue of $5.52 billion, up 15% year over year and ahead of Wall Street expectations by $193.07 million.

Genuine Parts Company (NYSE:GPC) was spotted on 35 investors' portfolios at the end of Q4 2022. These funds held collective positions worth $628.2 million in the company, up from $474.1 million in the preceding quarter with 36 positions.

9. Madison Square Garden Sports Corp. (NYSE:MSGS)

GAMCO Investors' Stake Value: $112,778,199

Number of Hedge Fund Holders: 33

Madison Square Garden Sports Corp. (NYSE:MSGS) is a leading American professional sports company and one of billionaire Mario Gabelli's top stock picks. As of December 31, Mario Gabelli's hedge fund's stake in the company is valued at $112.7 million and the investment covers 1.21% of the firm's 13F portfolio. As of March 17, Madison Square Garden Sports Corp. (NYSE:MSGS) has returned 24.02% over the past 6 months.

At the close of Q4 2022, 33 hedge funds were bullish on Madison Square Garden Sports Corp. (NYSE:MSGS) and disclosed positions worth $1.11 billion in the company. This is compared to 38 hedge funds in the previous quarter with stakes worth $894.3 million.

Here is what Ariel Investments had to say about Madison Square Garden Sports Corp. (NYSE:MSGS) in its Q4 2022 investor letter:

“Additionally, pure-play professional sports content company, Madison Square Garden Sports Corp. (NYSE:MSGS) rebounded following the recent sale of the Phoenix Suns (NBA). This recent share appreciation suggests MSGS’ franchises could realize outsized returns due to the prominence of the New York Knicks (NBA) and the New York Rangers (NHL) in the largest U.S. market, particularly given high demand and the large premiums other sports franchises have traded at.”

8. American Express Company (NYSE:AXP)

GAMCO Investors' Stake Value: $119,913,752

Number of Hedge Fund Holders: 71

American Express Company (NYSE:AXP) covers 1.28% of GAMCO Investors' 13F portfolio. As of December 31, the fund's stake in the company is valued at $119.9 million. American Express Company (NYSE:AXP) is currently trading at a PE multiple of 16x and is offering a forward dividend yield of 1.50%, as of March 17. The stock is one of Mario Gabelli's top stock picks.

American Express Company (NYSE:AXP) was spotted on 71 investors' portfolios at the end of Q4 2022. These funds held collective stakes worth $26.8 billion in the company, up from $24.8 billion in the preceding quarter with 68 positions. The hedge fund sentiment for the stock is positive.

In addition to American Express Company (NYSE:AXP), GAMCO Investors has sizable positions in Mueller Industries, Inc. (NYSE:MLI), Crane Holdings, Co. (NYSE:CR), and Herc Holdings Inc. (NYSE:HRI).

7. Textron Inc. (NYSE:TXT)

GAMCO Investors' Stake Value: $120,328,990

Number of Hedge Fund Holders: 36

Mario Gabelli has a sizable position in Textron Inc. (NYSE:TXT), valued at $120.3 million as of December 31, and the stock is one of his top stock picks. Textron Inc. (NYSE:TXT) is a leading American aircraft manufacturing company and has six business divisions: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation, and Finance. As of March 17, the stock is trading at a PE multiple of 16.51 and has gained 6.33% over the past 6 months.

36 hedge funds were long Textron Inc. (NYSE:TXT) at the end of Q4 2022. These funds disclosed positions worth $819.5 million in the company, up from $626.8 million in the previous quarter with 28 positions.

Other stock Mario Gabelli is bullish on include Mueller Industries, Inc. (NYSE:MLI), Crane Holdings, Co. (NYSE:CR), and Herc Holdings Inc. (NYSE:HRI).

6. Sony Group Corporation (NYSE:SONY)

GAMCO Investors' Stake Value: $123,562,387

Number of Hedge Fund Holders: 28

Sony Group Corporation (NYSE:SONY) is gaining and is also trading at an attractive PE multiple. As of March 17, the stock has returned 21.57% to investors over the past 6 months and is trading at a PE multiple of 15x. Sony Group Corporation (NYSE:SONY) represents 1.32% of Mario Gabelli's 13F portfolio. As of December 31, GAMCO Investors' position in the company is valued at $123.5 million. The stock is one of Mario Gabelli's top picks.

Sony Group Corporation (NYSE:SONY) was held by 28 hedge funds at the end of the fourth quarter of 2022. These funds held stakes worth $865 million in the company, up from $706 million in the preceding quarter with 27 positions.

Here is what Aristotle Capital had to say about Sony Group Corporation (NYSE:SONY) in its Q3 2022 investor letter:

Sony Group Corporation (NYSE:SONY), the global provider of video games and consoles, image sensors, and music, as well as movies, was a major detractor for the period. The share price of the company has struggled this year following its strong performance in 2021. Signs of a slowdown in the gaming industry (as people seem inclined to take on outdoor activities as pandemic fears have subsided), combined with sales of its PlayStation 5 that have been held up by a global parts shortage, have led to gaming‐related software sales falling more than 20% year‐over‐year. Rather than focusing on short‐term demand dislocations, we focus on the company’s ability to continue migrating videogame users toward the firm’s subscription offerings, as well as its capacity to leverage content across its video, music and gaming platforms. We are also impressed with the expansion of Sony’s Music segment, which has been supported by the pervasiveness of streaming services. Management’s ongoing work to improve the company’s TV and film studios is bearing fruit as well, with sales growing 67% year‐over‐year for its Pictures segment as its regional strategy has taken hold, including recent progress made toward solidifying a merger plan with India‐based Zee Entertainment. All of this is to say we remain excited by the oligopolistic nature of the businesses Sony operates in, and the future prospects for the company given its leadership in image sensors, music publishing and gaming consoles.”

 

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Disclosure: None. Mario Gabelli Performance, Portfolio, and Top Picks is originally published on Insider Monkey.