Top 5 Small-Cap Stocks Added to Billionaire Mario Gabelli’s Portfolio

2. Kyndryl Holdings Inc. (NYSE:KD)

Value of GAMCO Investors’ 13F Position: $5.11 million

Number of Hedge Fund Shareholders: 27

27 hedge funds, including GAMCO Investors, were shareholders of Kyndryl Holdings Inc (NYSE:KD) following the company’s Q4 spinoff from International Business Machines Corporation (NYSE:IBM).

While that figure sounds moderately impressive on its own for a small-cap company, it’s less so when one considers that there were 46 IBM shareholders in our database, all of whom received Kyndryl Holdings Inc (NYSE:KD) shares upon the Q4 spinoff. Thus, nearly half of IBM’s own shareholders wanted nothing to do with its former managed infrastructure services business, which will remain a prominent IBM customer.

It’s not hard to see why, as Kyndryl Holdings Inc (NYSE:KD) was one of the slower-growing and lower-margin segments of IBM, which itself isn’t exactly growing like gangbusters or achieving fat margins. For that reason, KD shares have hit the ground staggering like a punch drunk boxer, losing over 67% of their value since being forced to stand on their own two feet back in November.