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Here’s Why Horos Asset Management Bought Mario Gabelli’s GAMCO Investors (BBL) Stock

·3 min read

Horos Asset Management, an asset management firm, published its ‘Horos Value Internacional’ fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 26.3% was recorded by the fund for the Q4 of 2020, outperforming its benchmark index that delivered an 11.9% return. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Horos Asset Management, in their Q4 2020 Investor Letter, said that they initiated a position in billionaire Mario Gabelli's GAMCO Investors, Inc. (NYSE: GBL) during the fourth quarter of 2020. GAMCO Investors, Inc. is an investment advice company that currently has a $558 million market cap. For the past 3 months, GBL delivered a decent 51.98% return and settled at $20.18 per share at the closing of February 8th.

Here is what Horos Asset Management has to say about GAMCO Investors, Inc. in their Q4 2020 investor letter:

"Lastly, this quarter we initiated a position in GAMCO Investors ("GAMCO"). Followers of the value investing philosophy will be familiar with this asset management firm, which was founded in 1977 by legendary investor Mario Gabelli, who today holds the positions of Chairman, CEO and Co-Chief Investment Officer. GAMCO has nearly $30 billion in assets under management, comprising its own mutual funds and a range of portfolio and wealth management services for institutional clients and separate accounts.

Like most active asset managers, GAMCO has suffered heavy net outflows in the last few years, losing more than thirty percent of AUM since the 2017 peak. However, we believe that, at some point, active managers will eventually add value again to their investors and we are confident in the expertise and good work of Gabelli and his team. Moreover, even assuming a very conservative cash generation scenario for the next few years, we are buying this historic asset manager with an extraordinarily high margin of safety, trading below 6-7x current earnings."

Just recently, we published an article about the 10 Cheap Stocks Billionaire Leon Cooperman is Buying and GAMCO Investors, Inc. (NYSE: GBL) was ranked 2nd in the list. In our recent data, the company was in 6 hedge fund portfolios. Its all time high statistics is 11. GBL delivered a 15.20% return in the past 12 months.

Our calculations show that GAMCO Investors, Inc. (NYSE: GBL) does not belong in our list of the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

https://www.youtube.com/watch?v=OgBhPDmWMtI

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website.

Disclosure: None. This article is originally published at Insider Monkey.