Mario Gabelli Restates His Value Investing Approach; Yearly Spectrum Not Relevant

Let’s now take a look at the top three positions of Gabelli that were raised during the April – June period. To start with, GAMCO Investors increased its position in Bank of New York Mellon Corp (NYSE:BK) by 119,785 shares during the second quarter, amassing a stake of over 6.68 million shares. The investment firm also lifted its stake in Ryman Hospitality Properties Inc (NYSE:RHP) to 5.03 million shares. Finally, Mario Gabelli’s firm also increased its stake in electronics giant Sony Corporation (NYSE:SNE) to 6.2 million shares during the quarter as well.

Professional investors like Mario Gabelli spend considerable time and money conducting due diligence on each company they invest in, which makes them the perfect investors to emulate. However, we also know that the returns of hedge funds on the whole have not been good for several years, underperforming the market. We analyzed the historical stock picks of these investors and our research revealed that the small-cap picks of these funds performed far better than their large-cap picks, which is where most of their money is invested and why their performances as a whole have been poor. Why pay fees to invest in both the best and worst ideas of a particular hedge fund when you can simply mimic the best ideas of the best fund managers on your own? A portfolio consisting of the 15 most popular small-cap stock picks among the funds we track has returned more than 118% and beaten the market by more than 60 percentage points since the end of August 2012, and by 4.6 percentage points in the first quarter of this year (see more details).

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