In this article, we will list Billionaire Mario Gabelli’s top 5 stock picks. Please visit Mario Gabelli Stock Portfolio: Top 10 Stock Picks if you would like to see the extended list and the methodology behind it.
5. Herc Holdings Inc. (NYSE:HRI)
GAMCO Investors’ Stake: $158 Million
Herc Holdings Inc. (NYSE:HRI) is a relatively recent addition to the 13F portfolio of GAMCO Investors, compared to other top holdings. The fund first disclosed a stake in the company in the third quarter of 2016. This holding comprised nearly 2.5 million shares. By early 2019, the fund had grown this position to just under 4 million shares. Since then, Gabelli has steadily trimmed this stake. Filings for the fourth quarter of 2025 show that the fund owned just over a million shares in the company, down 3% compared to filings for the previous quarter.
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Hedge funds are increasingly focused on Herc Holdings Inc. (NYSE:HRI) as a strategic play on the North American infrastructure super-cycle. As of April 2026, the company has positioned itself as a primary beneficiary of large-scale federal and private construction projects. Hedge funds are betting on a massive wave of industrial construction. Management recently highlighted that roughly $600 billion in new mega-projects are slated to begin in 2026. Investors see the current market as being in the early to mid-innings of a long-term investment cycle in chip plants, EV battery factories, and renewable energy infrastructure. These massive projects require specialized equipment and long-term rental commitments, which provide Herc with highly predictable, high-margin revenue.
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.
3. Crane Company (NYSE:CR)
GAMCO Investors’ Stake: $196 Million
Crane Company (NYSE:CR) is a recent addition to the 13F portfolio of GAMCO Investors. The fund first disclosed a stake in the company in the second quarter of 2023. This position comprised 1.35 million shares. The fund has maintained this position, only trimming it by a minor amount, in the ensuing quarters. Filings for the fourth quarter of 2025 show that the fund owned over a million shares in the firm, down more than 3% compared to filings for the third quarter of 2025. The firm engages in the manufacture and sale of engineered industrial products in the United States, Canada, the United Kingdom, Continental Europe, and internationally.
Hedge funds are bullish on Crane Company (NYSE:CR) because following its 2023 separation from Crane NXT, the firm has emerged as a streamlined, high-growth industrial player focused on aerospace and process technologies. The aerospace segment has been a major performance driver, recently showing double-digit core sales growth, nearly 12.8% in late 2025. Crane has also been highly active in the M&A space to bolster its technology portfolio. Earlier this year, the company completed the acquisition of high-tech brands including Druck, Panametrics, and Reuter-Stokes. Management has signaled that its strong balance sheet provides ample dry powder for further acquisitions in optical sensing and aerospace components.
2. GATX Corporation (NYSE:GATX)
GAMCO Investors’ Stake: $203 Million
GATX Corporation (NYSE:GATX) is a long-term holding of GAMCO Investors. The fund first disclosed a stake in the company back in the third quarter of 2012. This position comprised 3.7 million shares. Since then, the fund has steadily trimmed this holding. Filings for the fourth quarter of 2025 show that the fund owned 1.2 million shares in the company, down more than 2% compared to filings for the previous quarter. The firm operates as a railcar leasing company in the United States, Canada, Mexico, Europe, and India.
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Hedge funds favor GATX Corporation (NYSE:GATX) because of its exceptionally stable operations. As of early 2026, GATX reported a 99% utilization rate for its North American rail fleet. Institutional analysts note that strong supply dynamics in the railcar market have allowed GATX to renew leases at significantly higher rates, driving organic revenue growth. A primary driver for hedge fund interest in the stock is the successful integration of the Wells Fargo railcar fleet acquisition. The addition of these assets has contributed to GATX’s 2026 guidance, which projects a 10% increase in EPS, estimated at $9.50–$10.10. By increasing its fleet size, GATX has lowered its per-unit maintenance costs as well.
1. Mueller Industries, Inc. (NYSE:MLI)
GAMCO Investors’ Stake: $214 Million
Mueller Industries, Inc. (NYSE:MLI) has consistently featured in the 13F portfolio of GAMCO Investors since the third quarter of 2012. Back then, this position comprised 644,000 shares. The fund steadily built up this stake in the coming quarters, growing it to 8.7 million shares by the second quarter of 2018. Thereafter, it started trimming this holding. Filings for the fourth quarter of 2025 show that the fund owned nearly 1.9 million shares in the firm, down close to 15% compared to filings for the previous quarter.
Hedge funds are drawn to Mueller Industries, Inc. (NYSE:MLI) due to its high-quality financial metrics, its status as a critical supplier for the white-hot data center market, and significant shareholder value initiatives. As of early 2026, MLI boasts a Return on Equity of 25%, which is more than double the industry average of 11%. For every $1 of shareholders’ equity, the company generates $0.25 in profit. While Mueller is a veteran industrial company, manufacturing copper and brass components, it is currently benefiting from modern tech trends. Mueller’s plumbing and HVACR (heating, ventilation, air conditioning, and refrigeration) products are essential for the cooling systems required in massive AI data centers. In mid-February 2026, Mueller announced a 40% increase in its quarterly dividend, to $0.35 per share.
While we acknowledge the potential of MLI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MLI and that has 100x upside potential, check out our report about the cheapest AI stock.
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