A Look at Billionaire Mario Gabelli’s Favorite Small-Cap Picks

GATX Corporation (NYSE:GMT) comes next in the list of GAMCO’s top small-cap picks, as the fund reported holding 3.17 million shares of the stock worth $140.10 million. GATX Corporation (NYSE:GMT) is a rail car lessor and its stock has lost 18% since the beginning of the year, as the demand for rail car transportation has declined amid lower oil prices. However, analysts are still bullish on the stock, setting an average price target of $55.00 on it, which represents an upside potential of around 17%. Moreover, the stock trades at around 10-times earnings and sports a dividend yield of 3.23%. Charles Paquelet‘s Skylands Capital is another fund bullish on GATX Corporation (NYSE:GMT), holding 397,600 shares as of September 30.

In the manufacturer of industrial products, Crane Co. (NYSE:CR), GAMCO owns some 2.93 million shares valued at $136.40 million. In its most recent financial results, Crane reported EPS of $1.03, slightly missing the estimates of $1.06. The stock is down by 10% year-to-date and is trading at around 12.1-times forward earnings. Among the funds that we track, a total of 23 reported holding stakes equal to nearly 11% of Crane Co. (NYSE:CR)’s common stock as of the end of June, up from 21 funds a quarter earlier. Billionaires Steve Cohen, Israel Englander, and Jim Simons ranked among Crane Co. (NYSE:CR)’s top shareholders in our database at the end of June.

Last but not least, GAMCO reported holding 3.59 million shares of Kaman Corporation (NYSE:KAMN), valued at $128.60 million. Kaman is a $1.08 billion machinery and equipment company that operates in the distribution and aerospace segments. Its stock is flat year-to-date and is trading at a P/E of 15.2, which is below the industry average of 18.2. Moreover, a total of 16 funds in our database held shares of Kaman Corporation (NYSE:KAMN) at the end of June, down from 18 a quarter earlier, while the total value of their holdings was equal to roughly 19.80% of the company’s shares.

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