Mario J. Gabelli founded Gabelli Asset Management Company in 1977. The firm is now called GAMCO Investors and is an American firm headquartered in New York. It specializes in providing investment advice and brokerage services to mutual funds, institutional clients, and select investors. It is majority-owned by Mario Gabelli, who is the Chairman and CEO of it. GAMCO Investors includes two businesses: GAMCO Asset Management, with institutional and separate accounts; and Gabelli Funds. The last reported 13F filing for Q4 2024 included $9.55 billion in managed 13F securities and a top 10 holdings concentration of 16.81%. Gabelli stayed true to the principles of value investing and used a solid base created by Warren Buffett and Ben Graham, while adding some of his elements to the mix. He believes that value investing isn’t focused on short-term market movements. He looks for the ignored and unloved companies that nobody covers for whatever reason, with a good business, solid management, and a good price.
As January was ending, Gabelli joined ‘Squawk Box’ on CNBC to discuss a range of topics. He explained how the stock market’s performance is tied to company earnings, revenue growth, gross margins, expenses, and taxes, but most importantly to the market multiple, which is influenced by interest rates. These are shaped by debt, deficits, and overall confidence. Gabelli also mentioned that strategic corporate M&A was returning after a freeze caused by regulatory uncertainty and some failed deals. Activist investors are also seeking greater visibility and pushing for changes at companies. He argued against reducing the corporate tax rate below 21% but advocated for a minimum tax on a cash basis. He called for the restoration of 100% bonus depreciation, which would allow businesses, such as farmers, to fully write off new equipment purchases immediately, thereby encouraging investment in technologically advanced machinery. Gabelli mentioned that similar incentives should apply to capital expenditures in sectors like cable and referenced comments from Hans Vestberg. He noted that while corporations currently receive tax deductions for capital expenditures, these are spread over longer periods, and accelerating them would provide more immediate benefits.
Gabelli graduated summa cum laude in 1965 from Fordham University’s College of Business Administration in 1965 and holds an MBA from Columbia University Graduate School of Business. He has received honorary doctorates from Fordham University and Roger Williams University. He also serves on the Boards of Boston College, Roger Williams University, Columbia University Graduate School of Business, the American-Italian Cancer Foundation, and the Foundation for Italian Art & Culture. He is a Trustee of the Winston Churchill Foundation of the US and the EL Wiegand Foundation. Gabelli was honored as Morningstar’s Portfolio Manager of the Year in 1997, named Money Manager of the Year by Institutional Investor in 2011, and is a member of Barron’s All-Star Century Team.
That being said, we’re here with a list of billionaire Mario Gabelli’s 10 small-cap stock picks with huge upside potential.
Mario Gabelli of GAMCO Investors
Our Methodology
To compile the list of billionaire Mario Gabelli’s 10 small-cap stock picks with huge upside potential, we sifted through the Q4 2024 13F filings of GAMCO Investors from Insider Monkey. From these filings, we checked the upside potential from CNN for the top 50 stock picks that were trading between $1 billion and $10 billion and ranked the stocks in ascending order of this upside potential. We have also added GAMCO Investors’ stake in each company and the hedge fund sentiment around each stock.
Note: All data was sourced on May 8.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Billionaire Mario Gabelli’s 10 Small-Cap Stock Picks with Huge Upside Potential
10. TEGNA Inc. (NYSE:TGNA)
GAMCO Investors’ Stake: $43.69 million
Number of Hedge Fund Holders: 28
Market Capitalization as of May 8: $2.82 billion
Average Upside Potential as of May 8: 13.45%
TEGNA Inc. (NYSE:TGNA) is a journalism company in the US. It engages in content and tools to help people navigate their daily lives. It also offers marketing solutions and provides news content to consumers across various platforms, such as online, mobile, connected television, and social platforms.
In Q4 2024, TEGNA’s Subscription Revenue reached $357 million, which was a 5% increase year-over-year. This growth was attributed to successful MVPD contract renewals for ~20% of the company’s traditional subscribers during the quarter. There were also contractual rate increases and a favorable comparison to a prior service disruption, which was partially offset by subscriber decline.
For the full year 2024, Subscription Revenue totaled $1.5 billion. For 2025, TEGNA has ~45% of its traditional subscribers up for renewal, which presents opportunities to secure appropriate value for its content. This recurring revenue stream provides a stable financial base for TEGNA Inc. (NYSE:TGNA) as it navigates the evolving media landscape and focuses on its broader transformation initiatives.