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.
9. Ryman Hospitality Properties Inc. (NYSE:RHP)
GAMCO Investors’ Stake: $100.85 million
Number of Hedge Fund Holders: 35
Market Capitalization as of May 8: $5.81 billion
Average Upside Potential as of May 8: 18.69%
Ryman Hospitality Properties Inc. (NYSE:RHP) is a leading lodging and hospitality real estate investment trust. It specializes in upscale convention center resorts and entertainment experiences. The company’s holdings include 5 of the top 7 largest non-gaming convention center hotels in the US based on total indoor meeting space.
In Q1 2025, the company’s Hospitality segment achieved record results, with revenue increasing by 11% year-over-year. This was fueled by a 10% increase in RevPAR (Revenue Per Available Room) and a 9% increase in total RevPAR. The average daily rate (ADR) also reached a first-quarter record of $264, which was up ~6% and showed strength in both group and transient customer segments.
Notably, group room nights booked for all future years increased by 10% year-over-year, with particularly strong bookings for 2026 and 2027. These are up 13% and 35% respectively. Ryman Hospitality Properties Inc. (NYSE:RHP) is managing the Hospitality segment by operating model efficiencies in partnership with its operator, Marriott. It’s also communicating with meeting planners to navigate near-term uncertainties.
8. Herc Holdings Inc. (NYSE:HRI)
GAMCO Investors’ Stake: $212.26 million
Number of Hedge Fund Holders: 32
Market Capitalization as of May 8: $3.50 billion
Average Upside Potential as of May 8: 18.81%
Herc Holdings Inc. (NYSE:HRI) operates as an equipment rental supplier. It rents aerial, earthmoving, material handling, trucks & trailers, air compressors, compaction, and lighting equipment. The company sells its products through its sales team and industry catalogs, as well as through participation and sponsorship of industry events, trade shows, and the Internet.
The company’s Equipment Rental segment grew its revenue by ~5% year-over-year in Q1 2025. This growth was achieved despite headwinds from unusually cold weather that impacted local rentals. The acquisition of H&E Equipment Services and its 160 US branch locations is positioned to drive further growth at Herc. This acquisition aims to expand Herc’s scale, geographic coverage, and long-term opportunities by integrating H&E’s locations, fleet categories, and local & national account presence.
Herc plans to use its expertise in cross-selling specialty fleet to H&E’s general rental customer base to drive revenue synergies. The company anticipates 20% capture in the first year of integration, which would potentially ramp up to 60% in year 2 with specialty cross-selling, and the remainder in year 3. Herc Holdings Inc. (NYSE:HRI) is also managing its fleet investments, with a ~35% lower net fleet CapEx plan for 2025 at the midpoint of the company’s guidance.
7. GATX Corp. (NYSE:GATX)
GAMCO Investors’ Stake: $204.74 million
Number of Hedge Fund Holders: 14
Market Capitalization as of May 8: $5.25 billion
Average Upside Potential as of May 8: 19.70%
GATX Corp. (NYSE:GATX) is a railcar leasing company in the US, Canada, Mexico, Europe, and India. It operates through three segments: Rail North America, Rail International, and Engine Leasing. The company leases tank & freight railcars, and locomotives for petroleum, chemical, food/agriculture, and transportation industries. It also offers maintenance services.
In Q1 2025, GATX’s Rail North America segment maintained a high fleet utilization of 99.2% at the end of the quarter. The renewal success rate was strong at 85.1%, which shows continued customer satisfaction and the essential nature of the company’s railcars. GATX is successfully placing new railcars from its 2022 Trinity supply agreement, having placed more than 5,700 railcars with deliveries starting in Q1 2026.
In addition to new builds, GATX invested over $227 million in acquiring railcars in the secondary market during the quarter. The company also capitalized on a secondary market by selectively selling cars and generating over $30 million in asset remarketing income. While the direct impact of tariffs on procurement costs is currently limited, GATX Corp. (NYSE:GATX) acknowledges potential indirect impacts from broader economic conditions and commodity flow changes.
However, GATX Rail North America, with its diverse fleet, over 800 customers, and ability to move over 600 commodity types, is positioned to navigate these uncertainties. The focus remains on leveraging their existing fleet, strategically investing in new and used railcars, and optimizing their portfolio through selective sales to drive continued revenue and growth in this core segment.
6. Flowserve Corp. (NYSE:FLS)
GAMCO Investors’ Stake: $75.93 million
Number of Hedge Fund Holders: 60
Market Capitalization as of May 8: $6.82 billion
Average Upside Potential as of May 8: 22.73%
Flowserve Corp. (NYSE:FLS) designs, manufactures, distributes, and services industrial flow management equipment. It operates in two segments: Flowserve Pump Division and Flow Control Division. It offers custom-engineered pumps, pre-configured industrial pumps, pump systems, mechanical seals, auxiliary systems, replacement parts, and related aftermarket services.
The company’s Flow Control Division/FCD had its bookings surge by 21% year-over-year in Q1 2025 due to double-digit increases in both original equipment and aftermarket activity. FCD also benefited from the strength in the nuclear sector, alongside positive contributions from general industries and energy markets. While FCD’s sales growth of 2% in the quarter was modest, it exceeded expectations.
On March 17, Baird analyst Michael Halloran upgraded Flowserve to Outperform from Neutral with an unchanged price target of $71. Baird believes that the company’s earnings power is attractive, as there is a compelling internally fueled margin expansion story. Flowserve Corp. (NYSE:FLS) anticipates continued margin expansion within FCD, partly due to disciplined pricing & cost management, and the benefits of the company’s 80-20 complexity reduction program.
Artisan Small Cap Fund stated the following regarding Flowserve Corporation (NYSE:FLS) in its Q4 2024 investor letter:
“During the quarter, we initiated new GardenSM positions in VSE, Flowserve Corporation (NYSE:FLS) and Integer Holdings. Flowserve is a leading provider of fluid motion and control products and services. The company designs, manufactures and services a wide range of pumps, valves, seals, automation solutions and related systems for industries that require the management and transfer of fluids. As we highlight in the Stewardship Update section later in this letter, we believe the company is in a good position to benefit from rising natural gas production that is being driven by rising baseload power needs for data centers. And within the oil end market, a loosening of regulatory policies could increase production demands.”
5. Madison Square Garden Sports Corp. (NYSE:MSGS)
GAMCO Investors’ Stake: $132.85 million
Number of Hedge Fund Holders: 42
Market Capitalization as of May 8: $4.62 billion
Average Upside Potential as of May 8: 31.24%
Madison Square Garden Sports Corp. (NYSE:MSGS) is a professional sports company in the US. It owns and operates a portfolio of assets that consists of the New York Knickerbockers of the NBA (National Basketball Association) and the New York Rangers of the National Hockey League. The company was formerly known as The Madison Square Garden Company.
Macquarie’s Paul Golding increased the price target on Madison Square from $240 to $250, while keeping an Outperform rating on the shares due to the company’s FQ2 2025 results. The company made $357.8 million in FQ2 revenues, as compared to $326.9 million in the prior year period, which was partly driven by the ticketing revenue segment.
The ticketing revenue segment also grew year-over-year due to increases in average ticket yield and average paid attendance per game. This is highlighted by an average combined season ticket renewal rate of ~97%. Madison Square Garden Sports Corp. (NYSE:MSGS) has also strategically priced ticketing offerings and seen increased demand for flexible ticket plans.
4. Mueller Industries Inc. (NYSE:MLI)
GAMCO Investors’ Stake: $214.54 million
Number of Hedge Fund Holders: 34
Market Capitalization as of May 8: $8.38 billion
Average Upside Potential as of May 8: 38.39%
Mueller Industries Inc. (NYSE:MLI) manufactures and sells copper, brass, and aluminum products. It operates through three segments: Piping Systems, Industrial Metals, and Climate. It sells its products to wholesalers in the plumbing & refrigeration markets, distributors to the manufactured housing & recreational vehicle industries, building material retailers, and air-conditioning OEMs.
The Piping Systems Segment generated net sales of $639.7 million for Mueller in Q1 2025 due to higher selling prices, which were reflected in the increased raw material costs and tariffs. This outweighed modestly lower shipment volumes due to production challenges early in the quarter. The Piping Systems Segment also contributed significantly to the company’s profitability, reporting operating income of $158.2 million in Q1 2025, up from $142.7 million in Q1 2025.
Mueller Industries Inc. (NYSE:MLI) acknowledges the potential challenges posed by tariffs and trade policies, but it’s proactively implementing price adjustments where necessary to mitigate these effects. Despite some initial production disruptions, the Piping Systems Segment remains a focus for Mueller and uses the company’s established market presence to adjust pricing to maintain profitability.
3. Atlanta Braves Holdings Inc. (NASDAQ:BATRK)
GAMCO Investors’ Stake: $92.26 million
Number of Hedge Fund Holders: 37
Market Capitalization as of May 8: $2.52 billion
Average Upside Potential as of May 8: 43.34%
Atlanta Braves Holdings Inc. (NASDAQ:BATRK) owns and operates the Atlanta Braves Major League Baseball Club in the US. It operates through two segments: Baseball and Mixed-Use Development. The mixed-use development business includes services/products like retail, office, hotel, and entertainment operations, primarily within The Battery Atlanta.
This segment generated a revenue of $17.9 million for Atlanta Braves Holdings Inc. (NASDAQ:BATRK) in Q4 2024, which improved by 21% year-over-year. For the full year 2024, Mixed-use development revenue reached $67.3 million, which marked a 14% growth from the $59.0 million in the prior year, due to The Battery Atlanta mixed-use facilities, and includes rental income and parking revenue.
Additionally, the acquisition of the adjacent Pennant Park office complex for an undisclosed amount represents a move to further expand this segment. Pennant Park adds 763,465 square feet of office space across 6 buildings on ~34 acres, which includes over 2,700 parking spaces. With an occupancy rate of over 80% and anchored by strong tenants like The Home Depot (fully leasing two buildings), this acquisition is immediately accretive.
2. Modine Manufacturing Co. (NYSE:MOD)
GAMCO Investors’ Stake: $139.62 million
Number of Hedge Fund Holders: 43
Market Capitalization as of May 8: $4.95 billion
Average Upside Potential as of May 8: 49.62%
Modine Manufacturing Co. (NYSE:MOD) provides thermal management products and solutions. It operates through Climate Solutions and Performance Technologies segments. It also provides data center products that consist of IT cooling solutions, such as precision air conditioning units for data center applications and computer room air conditioning & handler units.
The company recently secured a $180 million order from a leading AI infrastructure developer for its specialized Airedale by Modine data center cooling systems. This system is an AI-enhanced version of Modine’s Cooling System Optimizer that offers energy consumption reductions of up to 40%. To fully capitalize on this, Modine is making Cooling AI available as a new system and as a retrofit option for existing Airedale by Modine Cooling System Optimizers.
DA Davidson reiterated a Buy rating on the stock on March 31, while lowering its price target to $140 from $155. Modine Manufacturing Co. (NYSE:MOD) now projects to grow data center sales by 110% to 120% for the full FY2025. In FQ3 2025, Modine’s data center revenues grew by 176% year-over-year. This was fueled by the acquisition of Scott Springfield, which contributed $63 million to this revenue.
SouthernSun Small Cap Strategy is positive on the company and stated the following regarding Modine Manufacturing Company (NYSE:MOD) in its Q1 2025 investor letter:
“Modine Manufacturing Company (NYSE:MOD) is an over 100-year-old thermal management company based in Racine, WI. The company started out producing heat exchangers for tractors but quickly expanded into the automotive market and became a major supplier of heat exchangers to leading car manufacturers. As demand for automobiles increased significantly throughout the 20th century, Modine expanded operations globally. However, as the automotive market matured and became more competitive, MOD’s growth slowed, and the company went through numerous restructurings to take cost out of the business. The company attempted to diversify into the HVAC industry by buying Airedale in 2005 and Luvata in 2016, but management lacked a clear strategic vision, and the legacy automotive business continued to attract most of the time and resources.
In December 2020, MOD’s board decided new leadership was needed and hired Neil Brinker as CEO. Brinker was previously COO at Advanced Energy (AEIS) and had experience working at Idex Corporation (IEX) and Danaher (DANH) – both high performing industrials (we have been owners of AEIS and IEX and think highly of their business culture). After assessing the business, Brinker decided the company needed to move away from its legacy automotive parts businesses and shift resources into HVAC. He quickly implemented operational changes including reorganizing the business into 6 business units, hiring new general managers, implementing 80/20, and divesting low growth, low-margin automotive businesses. The changes yielded quick results with Adjusted EBITDA rising roughly 80% over three years…” (Click here to read the full text)
1. Telephone and Data Systems Inc. (NYSE:TDS)
GAMCO Investors’ Stake: $65.33 million
Number of Hedge Fund Holders: 36
Market Capitalization as of May 8: $3.67 billion
Average Upside Potential as of May 8: 50.10%
Telephone and Data Systems Inc. (NYSE:TDS) is a telecom company that provides communications services to consumers, businesses, and government in the US. It operates through three segments: UScellular Wireless, UScellular Towers, and TDS Telecom. It sells and distributes its products through third-party direct sales, retail stores, sales agents, and an online platform.
Over the past three years, the company’s ongoing fiber program in its TDS Telecom segment has expanded TDS Telecom’s footprint by over 30%. In Q1 2025, TDS Telecom delivered 14,000 new fiber service addresses and anticipates achieving 150,000 fiber addresses for the full year. While fiber net additions of 8,300 in the quarter were lower than in previous periods due to the timing of service address delivery, the company expects these additions will increase as build-out accelerates throughout the year.
TDS Telecom is actively investing in its fiber infrastructure, with more than 80% of its full-year capital expenditures dedicated to fiber in 2025. This investment supports both expansion markets, primarily in Wisconsin and the Pacific Northwest, as well as the new Enhanced A-CAM (E-ACAM) program, which will bring fiber deeper into rural communities. The company has already begun construction in its first E-ACAM market in Wisconsin.
While we acknowledge the growth potential of Telephone and Data Systems Inc. (NYSE:TDS), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TDS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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