In this article, we discuss 10 new stock picks of billionaire Mario Gabelli. If you want to read about some more stocks in the Gabelli portfolio, go directly to 5 New Stock Picks of Billionaire Mario Gabelli.
It has become increasingly difficult for investors to identify winners in a market that is dogged by inflation, rising commodity prices, and fears of a recession. Even veteran value investors like Mario Gabelli of GAMCO Investors are finding life difficult at the moment. Gabelli, who owns famous growth names like Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:FB), manages an equity portfolio worth more than $9 billion as of the end of the second quarter of 2022.
Filings from the end of June 2022 show that the portfolio of GAMCO Investors decreased by around $2 billion, compared to the first three months of 2022. Between March and June, the fund made new purchases in 39 stocks during the period, additional purchases in 206, sold out of 55, and reduced holdings in 427 stocks. The top ten holdings of the fund, in contrast to other elite hedge funds, comprise just a little over 14.5% of the entire portfolio. The bulk of the portfolio comprises stocks in the services and consumer goods sectors.
On September 9, Gabelli appeared on news platform CNBC to outline his take on the current market situation, saying that he was bullish on sectors like agriculture and aerospace because there were indications that they would benefit from increased government spending in the coming months. Gabelli added that he was also paying attention to the weapons industry in the wake of the Ukraine war, and food and defense were some of the spaces that made a lot of sense in a world weighed down by fears of war and food shortages.
Our Methodology
The companies listed below were picked from the investment portfolio of GAMCO Investors at the end of the second quarter of 2022. The stocks that are a new addition to the portfolio, compared to filings for the first quarter of 2022, were selected. Data from around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.
New Stock Picks of Billionaire Mario Gabelli
10. Whirlpool Corporation (NYSE:WHR)
Number of Hedge Fund Holders: 24
Whirlpool Corporation (NYSE:WHR) manufactures and markets home appliances and related products. According to the latest filings, GAMCO Investors owned over 2,000 shares of Whirlpool Corporation (NYSE:WHR) at the end of the second quarter of 2022 worth $310,000, representing a very small portion of the portfolio.
On July 15, JPMorgan analyst Michael Rehaut maintained an Overweight rating on Whirlpool Corporation (NYSE:WHR) stock and lowered the price target to $191 from $227, noting that key investor concerns around the firm were likely to remain unresolved in the near term.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Greenhaven Associates is a leading shareholder in Whirlpool Corporation (NYSE:WHR), with 2.8 million shares worth more than $438.8 million.
Just like Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:FB), Whirlpool Corporation (NYSE:WHR) is one of the stocks that elite investors are buying.
9. VICI Properties Inc. (NYSE:VICI)
Number of Hedge Fund Holders: 25
VICI Properties Inc. (NYSE:VICI) is an experiential real estate investment trust that owns market-leading gaming, hospitality, and entertainment destinations. Latest data shows that GAMCO Investors owned more than 39,100 shares of VICI Properties Inc. (NYSE:VICI) at the end of the second quarter of 2022 worth over $1.1 million, representing a minor portion of the portfolio.
On August 24, JMP Securities analyst Mitch Germain initiated coverage of VICI Properties Inc. (NYSE:VICI) stock with an Outperform rating and a price target of $38, noting that the business strategy of the firm had been stress tested during the pandemic.
Among the hedge funds being tracked by Insider Monkey, Naples, Florida-based investment firm Pentwater Capital Management is a leading shareholder in VICI Properties Inc. (NYSE:VICI), with 4.5 million shares worth more than $135 million.
In its Q2 2022 investor letter, Meridian Funds, an asset management firm, highlighted a few stocks and VICI Properties Inc. (NYSE:VICI) was one of them. Here is what the fund said:
“VICI Properties Inc. (NYSE:VICI) is a real estate investment trust company specializing in casinos and other entertainment properties. We invested in VICI in 2018 when earnings were declining due to dilutive acquisitions. Our thesis was that, as investors grew more comfortable with casinos as a REIT subsector, the value of their properties would increase. We also liked the defensive characteristics of the company, specifically the triple-net lease structure, which dictates that lessees pay all maintenance and capital expenditures, and the history of casino REITs with zero rent payments missed by casinos during either the global financial crisis or the 2020 pandemic. Furthermore, we were confident that VICI’s growth prospects would increase as more casinos monetized land holdings with VICI’s ability to use its extensive cash and liquidity to make acquisitions. VICI’s stock outperformed in the quarter due to its appeal as a fairly defensive investment and the news that it would be included in the S&P 500 Index. We maintained our position in VICI.”
8. Royal Gold, Inc. (NASDAQ:RGLD)
Number of Hedge Fund Holders: 25
Royal Gold, Inc. (NASDAQ:RGLD) acquires and manages precious metal streams, royalties, and related interests. Regulatory filings show that GAMCO Investors owned 8,480 shares of Royal Gold, Inc. (NASDAQ:RGLD) at the end of June 2022 worth $2.1 million, representing a small portion of the portfolio.
On August 5, investment advisory Raymond James maintained an Outperform rating on Royal Gold, Inc. (NASDAQ:RGLD) stock and lowered the price target to C$142 from C$144. Analyst Brian MacArthur issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm First Eagle Investment Management is a leading shareholder in Royal Gold, Inc. (NASDAQ:RGLD, with 3.2 million shares worth more than $344 million.
7. DICK’S Sporting Goods, Inc. (NYSE:DKS)
Number of Hedge Fund Holders: 28
DICK’S Sporting Goods, Inc. (NYSE:DKS) operates as a sporting goods retailer primarily in the eastern United States. Securities filings show that GAMCO Investors owned 6,800 shares of DICK’S Sporting Goods, Inc. (NYSE:DKS) at the end of June 2022 worth $513,000, representing a small portion of the portfolio.
On August 24, Evercore ISI analyst Warren Cheng maintained an Outperform rating on DICK’S Sporting Goods, Inc. (NYSE:DKS) stock and raised the price target to $160 from $120, noting that the normalized EPS for the firm would likely settle out somewhere north of $11-$12.
At the end of the second quarter of 2022, 28 hedge funds in the database of Insider Monkey held stakes worth $1 billion in DICK’S Sporting Goods, Inc. (NYSE:DKS), compared to 31 in the previous quarter worth $1.1 billion.
In its Q1 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and DICK’S Sporting Goods, Inc. (NYSE:DKS) was one of them. Here is what the fund said:
“DICK’S Sporting Goods, Inc. (NYSE:DKS) was the first stock Michael recommended to us shortly after he joined Baron Capital in 2003. Dick’s share price has since increased about nine-fold. Unfortunately, we sold our investment in Dick’s about six years ago and, although it was a successful investment, we did not realize the full benefit of Michael’s recommendation. We sold too soon because I was concerned that competition from internet retailers would have a permanent negative impact on Dick’s stores’ profitability. I was wrong. Dick’s stock price so far has about doubled after we sold…and its prospects have brightened! (…read more)
6. Vertiv Holdings Co (NYSE:VRT)
Number of Hedge Fund Holders: 34
Vertiv Holdings Co (NYSE:VRT) designs, manufactures, and services critical digital infrastructure technologies. The hedge fund of Mario Gabelli entered the second quarter of 2022 with 14,000 shares of Vertiv Holdings Co (NYSE:VRT) in its portfolio worth more than $115,000.
On August 4, Citi analyst Andrew Kaplowitz maintained a Buy rating on Vertiv Holdings Co (NYSE:VRT) stock and increased the price target to $15 from $14, noting that the demand for the products of the firm remained strong in the second quarter.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Eminence Capital is a leading shareholder in Vertiv Holdings Co (NYSE:VRT), with 11 million shares worth more than $91 million.
In addition to Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:FB), Vertiv Holdings Co (NYSE:VRT) is one of the stocks on the radar of hedge funds.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Vertiv Holdings Co (NYSE:VRT) was one of them. Here is what the fund said:
“Vertiv Holdings Co (NYSE:VRT), a leading provider of critical infrastructure for data centers, fell in the quarter. The market became concerned that capital spending for data centers might be slowing along with the economy, which could be the case. If you recall, shares of Vertiv were very weak when the company reported first quarter costs were not properly passed through to their customers, so margins would fall well short of projections.
We believe that Vertiv is now ahead of the curve on this and will demonstrate robust earnings power in the back half of 2022 and into next year. We think it’s a very cheap stock, with strong management and board oversight, and remain hopeful that when the company reverts to form, the shares can appreciate significantly.”
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Disclosure. None. 10 New Stock Picks of Billionaire Mario Gabelli is originally published on Insider Monkey.