| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 6.89% | 5.15% | 18.75% |
| 2025 | 2024 |
|---|---|
| 18.8% | 11.3% |
The Gabelli Dividend Growth Fund delivered strong performance in Q4 2025, returning 5.15% versus 2.7% for the S&P 500, driven by successful stock selection in healthcare, financials, and selective AI exposure. While AI euphoria faded somewhat amid concerns over escalating capex commitments, the Fund benefited from healthcare sector strength, with the S&P healthcare sector gaining 11.2% on M&A activity and pharmaceutical deals. Top contributors included Merck, which reversed earlier declines as investors reappreciated the franchise quality, Alphabet as the clear AI winner with strong earnings and YouTube growth, and Newmont benefiting from gold's strong performance. The Fund maintained a modestly defensive posture but benefited from larger position sizes in appreciating stocks. Financial holdings gained from yield curve dynamics and deregulation optimism. Despite challenges in consumer staples from GLP-1 concerns and promotional pressure, the Fund's focus on dividend-paying stocks with strong capital allocation and exposure to M&A activity drove outperformance.
The Fund focuses on dividend-paying stocks with strong fundamentals and capital allocation, benefiting from M&A activity, sector rotation into healthcare and financials, and selective exposure to AI implementors rather than infrastructure plays.
The manager expects continued opportunities in AI implementors including distributors that can replace SG&A labor with AI, financial and technology companies with large headcounts, and media companies with labor intensive customer service operations. The tone suggests cautious optimism about market conditions ahead.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Feb 18 2026 | 2025 Q4 | AIG, AMZN, C, GOOG, IP, MDLZ, MRK, MS, NEM, ORCL, PNC, PRGO, SATS, WFC | AI, dividends, financials, gold, healthcare, value |
GOOG MS NEM |
The Gabelli Dividend Growth Fund outperformed in Q4 2025 with a 5.15% return, benefiting from healthcare sector strength, financial deregulation optimism, and selective AI exposure through Alphabet. Top contributor Merck reversed earlier declines as investors reappreciated franchise quality, while Newmont gained from gold's strong performance. The Fund's defensive positioning and focus on dividend-paying stocks with M&A potential drove results. |
| Nov 16 2025 | 2025 Q3 | AAPL, AME, AMZN, AXP, BK, BRK.B, CAT, CHWY, DE, GOOGL, ITT, META, MSFT, NEM, NFLX, NVDA, RSG, SONY, TSLA, WBD | AI, gold, growth, M&A, Markets, rates, technology, Trade | MSGS US | Third quarter markets continued climbing with S&P 500 up 8.1%, driven by AI enthusiasm and broadening rally beyond technology. Fed cut rates 25bps while trade tensions eased with new deals. Gold hit $4,000 on fiscal concerns. M&A surged 33% to $3 trillion. Despite tailwinds from lower rates and reduced regulation, elevated 30x valuations present risks. |
| Jun 30 2025 | 2025 Q2 | AMETEK, AMZN, AXP, BATRA, BK, BRK.A, CAT, CHWY, CNH, CR, CVS, CZR, DEERE, DTE.DE, ELAN, FOX, FRPT, IDXX, IVG.DE, MA, MFI.TO, MLI, MSFT, MSGS, NEM, NESN.SW, NFG, NFLX, NVDA, PETCO, RR.L, RSG, SBGI, SONY, TDS, TGNA, TMUS, TRATON.DE, TRUP, WBD, ZTS | AI, defense, gold, M&A, Pet Care, Sports, tariffs, Utilities |
KR WCC |
GAMCO navigated Q2 2025's tariff-driven volatility by focusing on value opportunities in sports, AI infrastructure, and defense spending themes. Despite market swings from Liberation Day policies, the firm maintains its disciplined PMV approach, finding opportunities in domestic small caps and international markets while remaining cautious on overall valuations amid policy uncertainty. |
| Mar 31 2025 | 2025 Q1 | AAPL, AMZN, C, GOOGL, HPE, JPM, KR, MDLZ, MRK, NEM, PNC, TMUS, V, WFC, ZBH | dividends, financials, healthcare, tariffs, technology, value | - | The fund outperformed during Q1's market decline driven by tariff fears and AI concerns. Defensive positioning in financials and dividend-paying stocks proved beneficial as technology faced headwinds. Strong performance from Newmont, T-Mobile, and Mondelēz offset weakness in Amazon and tech holdings. The strategy continues focusing on quality businesses with competitive advantages at compelling valuations. |
| Dec 31 2024 | 2024 Q4 | AAPL, AMZN, C, JPM, KR, MDLZ, MRK, NEM, NFLX, PNC, TMUS, V, WFC | AI, financials, growth, interest rates, regulation, technology, value | - | Fund returned 0.48% in Q4 versus S&P 500's 2.41%, with 11.28% full-year performance. Financial sector strength from yield curve steepening and deregulation expectations drove outperformance. Netflix, Wells Fargo, and Amazon led contributors while Newmont, Mondelēz, and Merck detracted. Strategy focuses on quality businesses at compelling valuations across value and growth spectrum. |
| Sep 30 2024 | 2024 Q3 | AAPL, AMZN, AXP, C, CARR, EPC, GOOGL, JPM, MDLZ, MRK, NXPI, SLB, TMUS | AI, financials, rates, technology, Utilities, value | - | The fund returned 5.0% in Q3, underperforming due to sector positioning as financials and utilities led while technology lagged. Fed rate cuts drove sector rotation favoring value over growth. Top performers included American Express and T-Mobile, while energy and semiconductor names detracted. Portfolio maintains focus on quality businesses at compelling valuations across diversified sectors. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
Live SportsMario Gabelli emphasizes live entertainment and sports as major investment themes, citing massive viewership numbers and recommending Atlanta Braves Holdings, Madison Square Garden Sports, and Manchester United as key plays on the sector's growth potential. |
Sports Entertainment Media Valuation Teams |
Natural GasNational Fuel Gas is highlighted as an attractive utility investment with substantial mineral ownership in Appalachian Basin gas reserves, positioned to benefit from increasing free cash flow and potential company restructuring. |
Utilities Energy Infrastructure Reserves Cash Flow | |
AIGabelli acknowledges AI's transformative impact while warning of potential market corrections similar to historical manias. He notes AI will touch everything but expresses concern about leveraged ETFs and market mechanics that could accelerate selloffs. |
Technology Innovation Disruption Valuation Risk | |
MediaFox and Versant Media Group are recommended as media plays, with Fox benefiting from sports rights and World Cup coverage, while Versant represents a spin-off opportunity with strong cash generation potential. |
Broadcasting Content Sports Rights Spin-offs Cash Flow | |
| 2025 Q3 |
AIArtificial Intelligence continues to be the primary driver of market returns, with most of the Magnificent Seven at or near all time highs. The scale of investment in AI infrastructure continues to surpass expectations, with the five largest cloud computing platforms communicating capex plans for 2025 aggregating to approximately $380 billion. |
Infrastructure Investment Technology Cloud |
Trade PolicyTrade continues to be in flux, with the U.S. signing deals with many partners including the UK and European Union, though uncertainty remains for significant countries including China and India. The average U.S. tariff has decreased from 23% in April to 17.5% currently. |
Tariffs China Uncertainty Negotiations | |
GoldGold and bitcoin extended their rallies at nearly $4,000 per ounce and $120,000 respectively, driven by fiscal concerns and search for real-asset hedges. Gold rose 16.7% during the quarter, climbing from $3,305.65 to $3,859.40 per ounce. |
Inflation Hedge Fiscal Rally | |
RatesThe Federal Reserve cut rates for the first time this year in September, lowering the Fed Funds rate 25 bps to 4%-4.25%, with expectations for further cuts to come. 10 Year U.S. Treasury yields declined during the quarter and are currently around 4.1%. |
Fed Monetary Easing Treasury | |
BuybacksDespite a lull around Liberation Day due to tariff uncertainty, the merger & acquisition boom expected under President Trump has come to fruition so far in 2025, with global deals up 33% year to date to $3 trillion, a four year high. |
M&A Deals Activity Volume | |
| 2025 Q2 |
Trade PolicyThe Trump administration implemented sweeping tariffs on April 2nd (Liberation Day), creating significant market volatility. While initial tariff rates were very high, bilateral trade deals with the UK, China, Vietnam, and India reduced effective rates. The administration appears intent on rolling back globalization, with tariffs serving as both negotiation tactics and policy tools. |
Tariffs Globalization Bilateral Negotiation Liberation |
Live SportsGrowing enthusiasm for sports investments driven by increasing ticket sales and vital sports broadcasting rights. Major sports leagues now allow up to 30% private equity ownership, increasing team valuations. The growth of the Hispanic market and sports gambling provides additional tailwinds for baseball and other sports properties. |
Broadcasting Private Equity Gambling Hispanic Valuations | |
AIMajor AI infrastructure platforms committed approximately $330 billion in 2025 capex plans. ChatGPT's Weekly Active Users doubled since the start of the year, while Alphabet's Gemini showed 50x year-over-year growth in tokens generated. Commercial scale corporate productivity initiatives are expanding across multiple companies. |
Infrastructure Capex Productivity Tokens Commercial | |
Defense SpendingEuropean defense budgets rising sharply following the invasion of Ukraine, with 31 of 32 NATO member nations committing to boost defense spending to 5% of GDP by 2035. This represents roughly double current levels and creates significant opportunities for defense companies globally. |
NATO Ukraine GDP Budget European | |
Pet CareU.S. pet industry spending projected to reach $157 billion in 2025, up from $152 billion in 2024. Pet ownership reached new highs with 94 million U.S. households owning at least one pet. Gen Z shows 43.5% increase in pet ownership with tendency to own multiple pets, driving demand for premium products and services. |
Ownership Premium Generation Multiple Services | |
Energy TransitionElectricity demand growing at fastest pace since mid-20th century, driven by AI-powered data centers, manufacturing reshoring, and transport electrification. Utilities responding with record capital investment in generation and grid upgrades, often in partnership with hyperscalers like Amazon, Microsoft, and Google. |
Electricity Data Centers Reshoring Grid Hyperscalers | |
GoldGold continued strong performance with central banks driving demand as they diversify reserve assets. Gold now represents 20% of central bank reserves, recently overtaking the euro as the second largest allocation after the dollar. Private investor interest through gold ETFs also continued adding holdings during the quarter. |
Central Banks Reserves Diversification ETFs Dollar | |
M&AGlobal M&A activity was resilient with $1.98 trillion in first half 2025, a 33% increase versus 2024. The Trump administration initiated a more pragmatic approach to antitrust enforcement, with new FTC Chair Andrew Ferguson signaling willingness to accept remedies and pursue litigation only when confident of favorable outcomes. |
Antitrust Enforcement Remedies Litigation Pragmatic | |
| 2025 Q1 |
TariffsThe quarter was dominated by concerns about President Trump's tariff announcements, with levels announced on April 2nd being beyond almost any expectations. This led to broad-based declines in equity markets and created significant market uncertainty. |
Trade Policy Inflation Economic Policy |
AIAI technology faced headwinds during the quarter with concerns about AI capex, competition, and monetization spilling over to major tech companies. DeepSeek's success in creating AI models at dramatically lower costs challenged the investment thesis for many AI-related companies. |
Technology Cloud Semiconductors | |
FinancialsThe S&P financial sector was up 3.4% in the first quarter, benefiting from lower interest rates, optimism around deal activity and deregulation. The 2-10 Year Treasury spread maintained a healthy 30-35bps level. |
Banks Interest Rates Deregulation | |
| 2024 Q4 |
FinancialsFinancial sector performed strongly in Q4 with 7.0% gain and 20% for 2024. Higher long-term rates and favorable yield curve steepening benefited banks. Expectations of easier regulatory policy under new administration supported large cap financial stocks. |
Banks Regulation Yield Curve Interest Rates Capital |
AIArtificial intelligence remained a key market theme with continued optimism around AI infrastructure spending. Tesla shares celebrated Elon Musk's political significance. Mag7 stocks found reasons to rally with AI-related developments. |
Infrastructure Technology Innovation Computing Investment | |
RatesInterest rate environment was central to market dynamics. 2-10 year spread widened from 15bps to 33bps. Higher long-term rates created headwinds for some sectors but benefited financials through yield curve steepening. |
Federal Reserve Yield Curve Monetary Policy Treasury Duration | |
| 2024 Q3 |
RatesFederal Reserve cut rates by 50 basis points in September, with 10-year Treasury yield falling 55 basis points to 3.81%. Lower rates benefited financial and utility stocks significantly. |
Interest Rates Fed Cuts Treasury Yields Monetary Policy Financial Sector |
AIArtificial Intelligence investments by major tech companies raised investor concerns about returns on hundreds of billions in capital expenditures. Some questioning of AI investment rationale emerged. |
Artificial Intelligence Technology Capital Expenditure Microsoft Alphabet | |
FinancialsFinancial sector performed strongly, up 10.5% in the quarter, benefiting from lower long-term interest rates and expectations of Fed rate cuts. Banks and financial services were top performers. |
Banks Financial Services Interest Rates American Express Citigroup |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Feb 18, 2026 | Fund Letters | Justin Bergner | MS | Morgan Stanley | Financials | Investment Banking & Brokerage | Bull | New York Stock Exchange | asset management, Fees, ROE, scale, wealth management | Login |
| Feb 18, 2026 | Fund Letters | Justin Bergner | NEM | Newmont Corporation | Materials | Gold | Bull | New York Stock Exchange | acquisition, diversification, Gold, Integration, Real Rates | Login |
| Feb 18, 2026 | Fund Letters | Justin Bergner | GOOG | Alphabet Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | AI, CapEx, cloud, Optionality, Search | Login |
| Nov 16, 2025 | Fund Letters | Justin Bergner | MSGS US | Madison Square Garden Sports Corp. | Communication Services | Sports Franchises & Entertainment | Bull | NYSE | asset value, inflation hedge, Knicks, Media rights, Sports Franchises | Login |
| Jun 30, 2025 | Fund Letters | Justin Bergner | WCC | Wesco International, Inc. | Industrials | Trading Companies & Distributors | Bull | New York Stock Exchange | Automation, cashflow, datacenter, deleveraging, Distribution, inflation, Margins, utility | Login |
| Jun 30, 2025 | Fund Letters | Justin Bergner | KR | The Kroger Co. | Consumer Staples | Food Retail | Bull | New York Stock Exchange | analytics, Data, Loyalty, Margins, media, Private, retail, Value | Login |
| TICKER | COMMENTARY |
|---|---|
| AIG | Property and casualty insurer American International Group (AIG) reported better-than-expected earnings, with strong expense management and share repurchases offsetting a weakening pricing environment. Shares also benefited from reports that fellow insurer Chubb is exploring a potential acquisition of the company. |
| AMZN | One company we own that we think has unique positioning to benefit from both the infrastructure and application layers is Amazon. Amazon's logistical prowess is one of the foremost moats in business today and it can and will be enhanced with AI. The company will do this in multiple ways, with better orchestration of its logistics assets and underlying cargo, as well as the buildout of more capable, sophisticated and robust robotics. Amazon is singularly well positioned to dominate the coordination layer, with AI's help, across its entire logistics network. |
| C | Money center bank Citigroup rose amid strong capital markets activity and benign credit conditions. The company continued to repurchase stock and return capital to shareholders, while expenses related to its transformation are expected to decline next year. |
| GOOG | From the moment OpenAI hit the scene with ChatGPT 3.5 in the Fall of 2022, Google was a perceived loser and thousands of pontificators warned about the end of search. Fast forward three years and this was Google Search's fastest quarter of revenue growth since Q1 2022, when the reopening and pandemic were still considerable drivers of results. In parallel with the Search re-acceleration, Google has also emerged as a leader in AI itself. This combination has been potent for Google's stock and could not have opened on Search alone, given the terminal value fears. |
| IP | International Paper's stock has roundtripped after nearly doubling in 2024 after acclaimed CEO Andy Silvernail took the helm. Despite aggressive cost and asset optimization actions, demand for containerboard has softened in the U.S. and Europe, with price pressure in Europe. |
| MDLZ | Mondelez International is a global snacking powerhouse with leading market share positions in crackers, cookies and chocolate. The brand portfolio houses iconic names like Cadbury, Milka, Toblerone, Oreo and Ritz. Mondelez possesses a unique global footprint that over-indexes to snacking occasions. Snacking is an advantaged category that benefits from robust pricing power, low private label competition and rising per capita consumption. We believe these attributes will help Mondelez sustain industry-leading growth. A rapid rise in commodity costs has temporarily depressed margins, masking the company's true earnings power. We believe Mondelez's strong pricing power and commodity relief will help improve margins. The short-term fears surrounding commodity inflation allowed us to purchase shares at a discounted valuation relative to history, peers and the broader market. |
| MRK | Top gainers in the Fund this quarter included Merck (+26%) |
| MS | During the quarter, the Fund invested in Morgan Stanley, a leading global investment bank and wealth management firm. Morgan Stanley has successfully diversified its business beyond cyclical banking and trading fees into more recurring wealth and investment management. These businesses collectively oversee $9.3 trillion in client assets that generate predictable, capital-light revenue that grows from inflows and market appreciation. |
| NEM | Newmont delivered +18% performance over the quarter, contributing meaningfully to portfolio returns as gold gained another 12%, taking its 2025 gains to an extraordinary 64%. |
| ORCL | Investor enthusiasm for Oracle's stock in calendar year 2025 was initially driven by several multi-billion-dollar contracts it signed with leading AI companies, including OpenAI and Meta. However, in Q4 sentiment for ORCL's growth prospects shifted to skepticism, as investors began to scrutinize the return profile of the substantial capital investments required to support the approximately $500 billion of contracts signed by Oracle. Given the widening range of potential outcomes associated with Oracle's elevated capital needs, we reduced our position in ORCL during Q4. |
| PNC | We initiated a preferred perpetual security in this bank holding company due to its robust capital position. |
| PRGO | Perrigo, an over-the-counter (OTC) pharmaceuticals manufacturer, saw shares decline following weak results in its infant formula and European OTC businesses. Long term, the company is conducting a strategic review of its infant formula business and will refocus on consumer-oriented operations by expanding the range of products offered alongside its store-brand OTC portfolio, actions we view positively. |
| SATS | December saw the GA-Courtenay Special Situations fund (USD I) appreciate by +6.3%, resulting in a return for 2025 of +6.5%. The positive result was primarily driven by price appreciation in Echostar and Filtronic, the fund's largest two positions, and both publically listed proxies for SpaceX. |
| WFC | and money center banks Citigroup and Wells Fargo, all following strong performance |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
