Mario Gabelli Stock Portfolio: Top 5 Stock Picks

4. Madison Square Garden Sports Corp. (NYSE:MSGS)

GAMCO Investors’ Stake: $159 Million

Madison Square Garden Sports Corp. (NYSE:MSGS) first made an appearance in the 13F portfolio of GAMCO Investors in the fourth quarter of 2015. This position comprised 1.2 million shares. It was increased to 1.3 million within a couple of quarters. By the middle of 2020, the fund had steadily trimmed this holding down to just under 600,000 shares. Filings for the fourth quarter of 2025 show that the fund owned 613,000 shares in the firm, up a little over 1.1% compared to filings for the third quarter of 2025.

The core hedge fund thesis for Madison Square Garden Sports Corp. (NYSE:MSGS) is that the stock trades at a deep discount compared to the private market value of its teams. Analysts from Citi and JPMorgan noted in early 2026 that while the stock has a market cap around $7.7 billion, the combined private market value of the Knicks and Rangers is estimated to be significantly higher. Hedge funds buy MSGS to capture this conglomerate discount, betting that the public market will eventually catch up to the record-breaking valuations seen in recent private sports team sales. In February 2026, the Board unanimously approved a plan to explore a possible spin-off or minority stake sale. Institutional investors believe selling even a small percentage of the Knicks or Rangers would provide a definitive mark-to-market price point, likely forcing the stock price higher to reflect that new valuation.