Gabelli Funds

On November 15th, Gabelli is partnering with Columbia Business School's Healthcare and Pharmaceutical Management Program to host the 6th Annual Healthcare Symposium at the Paley Center for Media in NYC. This Symposium will address exciting advancements in atrial fibrillation technology, enhancements in patient care, and the potential for surgical robotics. Attendees will hear from medical experts across a variety of healthcare services including surgery, robotic surgery, and pharmaceuticals, delving into major trends in innovation, healthcare delivery, access, and economics. To register now, please follow: https://lnkd.in/eNXAc2zq

Small Caps are Beautiful: 2024++ | November Insights As of September 30, 2024, the ‘Magnificent 7’ contributed over 1,000 basis points – roughly 46% of the total return of the S&P 500 during 2024. The rise of the M7, driven by cloud computing and AI, has led to historically elevated levels of concentration – ~31% of the S&P 500. Despite the market dominance of the mega-cap tech companies, our Value Team is optimistic that further signals from the Federal Reserve to reduce interest rates will act as a strong catalyst for small-cap stocks. Interest rate cuts can lead to lower borrowing costs, increased consumer spending, renewed investor risk appetite, higher valuation multiples for small-cap stocks and robust M&A activity. Anticipation of rate cuts helped fuel a small-cap rally that drove the Russell 2000 Index 10% higher in July. Active managers, such as the Portfolio Managers at Gabelli Funds, avoid unprofitable businesses and carefully research opportunistic growers. We source ideas from broad, index-agnostic research universes and identify overlooked and undervalued stocks that complement our accumulated compounded knowledge within both the Value and Growth sectors. 

Co-CIOs of Value, Kevin Dreyer and Christopher Marangi, released their Q3 All Cap Value Commentary, noting significant market gains fueled by the Federal Reserve’s first interest rate cut in over two years. Value stocks and small-cap companies outperformed growth for the first time since early 2021, even as the Magnificent Seven—particularly in AI—continued to drive most market gains. They remain vigilant of geopolitical tensions and aim to leverage market volatility to invest in quality companies at attractive prices. Meanwhile, Howard Ward, CFA, and John Belton, Co-Portfolio Managers of the Gabelli Growth Innovators ETF (GGRW), noted a return of volatility in the stock market, driven by mixed economic data. While major indices closed the quarter positively, market leadership shifted in favor of small-caps (which outperformed large-caps) and value (which outperformed growth). Moving into the fourth quarter, they continue to feel optimistic about our growth stock portfolio which features a concentrated group of technology innovators and evergreen franchises. As we head into Q4, both teams are committed to navigating this evolving landscape and finding opportunities. Read the full reports here: Value Q3 Commentary: https://lnkd.in/e68PQcg4 Growth Q3 Commentary: https://lnkd.in/eB-twXUE

We have just welcomed Kristopher Keach, MBA to our all-star Gabelli team! Kris is a former professional baseball player, pitching for the Tucson Saguaros before taking his talents to the wealth management business. Prior to joining Gabelli Funds, Kris advised athletes on personal finance, business opportunities, and contract management, merging his passion for wealth management and sports.   Watch our latest video to hear how Kris Keach continues to apply the disciplines learned throughout his baseball career to his career at Gabelli! https://lnkd.in/eB2UT5ZV

Christopher Mancini, CFA, CFA and Co-Portfolio Manager of the Gabelli Gold Fund, recently shared his thoughts on the price of gold rising to an all-time high. Chris notes that over the past five years, gold mining stocks have underperformed as compared to the price of gold. This was in part due to the significant and unique challenges faced by gold miners during the pandemic as it was impossible to “work from home” - thus government-imposed mining limits and social distancing resulted in inefficiencies and underperformance. During the pandemic, the price of gold increased from about $1,550 per ounce at the end of 2019 to $1,950 per ounce by mid-2022. This $400 rise in price was offset by a $400-per-ounce mining cost. However, since the start of 2024, the price of gold has surged by $700 per ounce while mining costs have remained stable. This margin improvement will likely be reflected in upcoming quarterly reports, in which Chris predicts miners will show a strong free cash flow generation. Read the full article here: https://lnkd.in/gS-QG9KV Stay tuned for Chris Mancini’s interview with the CEO of Artemis, Steven Dean, which will be released this Friday through our YouTube channel @GabelliTV.

Join us for the 48th Annual Automotive Symposium on November 4th and 5th! This two-day conference is designed to bring together senior management from top automotive retailers, equipment suppliers, and trucking companies, helping investors navigate the evolving dynamics of the automotive industry. Tune in to explore cutting-edge technologies, emerging trends, and strategic innovations. While the conference will take place in Las Vegas, we invite you to join us virtually via Zoom! Hear more about the event directly from Brian Sponheimer, our Portfolio Manager specializing in the automotive industry: https://lnkd.in/djGUZ_cn To register now, please follow this link: https://lnkd.in/d5ktth9h

Timothy Winter, CFA, Portfolio Manager of the Gabelli Utilities Fund (GABUX), shared his thoughts on Amazon’s newly announced deal with Dominion Energy that plans to advance Small Modular Reactor (SMR) nuclear development within Virginia, calling it a “marriage made in heaven.” Winter notes that Big Tech companies like Amazon need power to fuel huge AI data centers, and utility companies like Dominion Energy have resources, expertise, and a grid to allow for this new power supply. He believes that deals like this one and the Google/Kairos announcement are key in accelerating SMR development and new SMR’s would be important to future power affordability for the overall customer base.   Amazon’s $500 million investment in nuclear power marks a huge leap in supporting carbon-free large data center power needs. AWS expects the new SMRs to bring at least 300 megawatts of power to the Virginia region. AWS plans to invest $35 billion by 2040 to establish multiple data center campuses across Virginia, according to an announcement from Youngkin last year. Tim Winter and our additional research analysts look forward to seeing where this SMR development leads for utilities in the future.

Portfolio manager Macrae Sykes joins CNBC to delve into a couple of banks that released their quarterly earnings today. He also discusses what’s driving this strong earnings season for the financial sector. Watch now: https://lnkd.in/eRj7cnEK.

Edward Nakamura, our research analyst covering the heating, ventilation, and air conditioning (HVAC) industry, recently shared his insights in his latest whitepaper, “The Cool Stats About the Hot Stocks.” This comprehensive piece delves into the history, current market dynamics, and long-term trends that have recently propelled HVAC stocks to near all-time high levels.   Eddie highlights the environmental impact of HVAC systems, government and regulatory actions being taken to decrease the environmental footprint, and other long-term catalysts for the stocks involved such as artificial intelligence, growing aftermarket exposure, digitalization through software-connect equipment, and financial engineering. We expect these dynamics to provide steady demand for HVAC products and drive long-term growth for the companies involved.   To learn more about why we think this space is attractive and who the main players are, please visit: https://lnkd.in/ec2Djubq

Today, our team met with Judith Raneri, Vice President and Senior Portfolio Manager of The Gabelli U.S. Treasury Money Market Fund, to discuss the latest jobs report. Raneri highlighted that with 254,000 jobs added, surpassing expectations, and the unemployment rate dropping to 4.1%, the labor market remains resilient. She explained that this strength will likely allow the Federal Reserve to take a less aggressive approach in its easing cycle, providing more flexibility as they manage inflation and maintain economic stability. To learn more about The Gabelli U.S. Treasury Money Market Fund please visit: https://lnkd.in/e5MD-y7H