U.S. Markets closed
  • S&P 500

    3,638.35
    +8.70 (+0.24%)
     
  • Dow 30

    29,910.37
    +37.90 (+0.13%)
     
  • Nasdaq

    12,205.85
    +111.44 (+0.92%)
     
  • Russell 2000

    1,855.27
    +10.25 (+0.56%)
     
  • Crude Oil

    45.53
    -0.18 (-0.39%)
     
  • Gold

    1,788.10
    -23.10 (-1.28%)
     
  • Silver

    22.64
    -0.81 (-3.44%)
     
  • EUR/USD

    1.1970
    +0.0057 (+0.4788%)
     
  • 10-Yr Bond

    0.8420
    -0.0360 (-4.10%)
     
  • Vix

    20.84
    -0.41 (-1.93%)
     
  • GBP/USD

    1.3314
    -0.0042 (-0.3169%)
     
  • USD/JPY

    104.0850
    -0.1650 (-0.1583%)
     
  • BTC-USD

    17,725.89
    +540.55 (+3.15%)
     
  • CMC Crypto 200

    333.27
    -4.23 (-1.25%)
     
  • FTSE 100

    6,367.58
    +4.65 (+0.07%)
     
  • Nikkei 225

    26,644.71
    +107.40 (+0.40%)
     

Mario Gabelli's Top 5 Buys in 3rd Quarter

GuruFocus.com

Mario Gabelli (Trades, Portfolio), founder and CEO of GAMCO Investors Inc. (NYSE:GBL), disclosed last week his top five buys for the third quarter were Carbon Black Inc. (NASDAQ:CBLK), Pivotal Software Inc. (NYSE:PVTL), Genesee & Wyoming Inc. (NYSE:GWR), Sotheby's (NYSE:BID) and Acadia Communications Inc. (NASDAQ:ACIA).


Gabelli, one of our Value Conference speakers for this year, graduated summa con laude from Fordham University's College of Business Administration and did an MBA at Columbia University Graduate School of Business. The GAMCO CEO seeks companies that are trading below intrinsic value and have a growth catalyst.

b474a4880aecc3c40fd945ed28397ec6.png
b474a4880aecc3c40fd945ed28397ec6.png

As of quarter-end, Gabelli's $12 billion equity portfolio contains 895 stocks, of which 51 represent new holdings. The top three sectors in terms of portfolio weight are industrials, consumer cyclical and financial services.

Carbon Black

Gabelli purchased 341,394 shares of Carbon Black, giving the position 0.07% weight in the equity portfolio. Shares averaged $22.06 during the quarter.

On Oct. 8, VMware Inc. (NYSE:VMW) completed the acquisition of Carbon Black, a Waltham, Massachusetts-based application software company. Carbon Black CEO Patrick Morley, who will run VMware's new security business unit, said Carbon Black collected and analyzed endpoint data to understand cyberattack behaviors and help customers become more resilient against cyberattacks.

Pivotal Software

Gabelli purchased 293,909 shares of Pivotal Software, giving the position 0.04% weight in the equity portfolio. Shares averaged $12.25 during the quarter.

According to GuruFocus, the San Francisco-based software and services company has an equity-to-asset ratio of 0.69 and a debt-to-equity ratio of 0.11, both outperforming over 64% of global competitors.

Genesee & Wyoming

Gabelli purchased 37,741 shares of Genesee & Wyoming, giving the position 0.03% weight in the equity portfolio. Shares averaged $110.08 during the quarter.

ea4ae2890b56513e389621b419f27552.png
ea4ae2890b56513e389621b419f27552.png

The Darien, Connecticut-based company operates short-line and regional freight railroads in North America. GuruFocus ranks the company's profitability 8 out of 10 on several positive investing signs, which include profit margins that outperform over 73% of global competitors.

e16dbacd6ab249e828805695112eca89.png
e16dbacd6ab249e828805695112eca89.png

Sotheby's

Gabelli purchased 55,162 shares of Sotheby's, giving the position 0.03% weight in the equity portfolio. Shares averaged $57.92 during the quarter.

fbaf728551810638f9e0238cac9fabef.png
fbaf728551810638f9e0238cac9fabef.png

The New York-based company, which was acquired by BidFair USA in June, operates two businesses: Agency, which provides an auction space for fine art, decorative art, wine, jewelry and collectibles, and Finance, which provides financing activities for collectors and art dealers. GuruFocus ranks the company's profitability 8 out of 10 on several positive investing signs, which include a return on equity near a 10-year high of 23.31% and operating margins that are outperforming 94.81% of global competitors despite contracting over the past five years.

Acadia Communications

Gabelli purchased 40,608 shares of Acadia Communications, giving the position 0.02% equity portfolio weight. Shares averaged $63.09 during the quarter.

eb4b7aab19565d6c8c8ea36bb06ad155.png
eb4b7aab19565d6c8c8ea36bb06ad155.png

The Maynard, Massachusetts-based company manufactures optical interconnect products used in offering communication services. GuruFocus ranks the company's profitability 7 out of 10: Even though operating margins are outperforming just 54.92% of global competitors, net margins and returns on assets are outperforming 72.78% and 68.20% of global communication equipment companies.

c8bc44439f216bd8a6c085e20c010163.png
c8bc44439f216bd8a6c085e20c010163.png

Disclosure: No positions.

Read more here:

  • Gayner Invests in Embattled Berkshire Holding Kraft Heinz

  • 5 Magic Formula Leisure Stocks With High Business Quality

  • Top 5 Holdings of Jerome Dodson's Parnassus Fund



Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

This article first appeared on GuruFocus.