Sony (7.2% of net assets as of June 30, 2023, 18%), the Fund’s largest position, was also its largest first half contributor. The company posted strong results in gaming and its role as a leading player in semiconductors become better appreciated. Circor (1.1%, +135%) was the subject of a bidding war, contributing to its strong performance.
Two spin-offs, Crane NXT (2.6%, +60%) and Sphere Co. (1.9%, +38%), had strong debuts. However, National Fuel Gas (3.3%, -17%) and Drill-Quip (0.5%, -14%) suffered from softer energy prices. Newmont (5.1%, -8%) followed gold down. Despite completing its initial wireless network build on time, satellite video pioneer DISH Corp. (0.5%, -53%) is struggling with limited liquidity.
ANALYSIS OF SELECTED STOCKS
Madison Square Garden Sports Corp (MSGS, Financial) (1.3% of net assets as of June 30, 2023) (MSGS – $33.62 – NYSE), owner of the New York Knicks basketball team and the New York Rangers hockey team, is one of the few ways for the public to access the positive dynamics of sports franchises. The company’s predecessor was spun-off from Cablevision in 2010 and subsequently separated its venue and entertainment businesses. Team values have appreciated significantly as they represent excellent stores of value in an inflationary environment; basketball in particular has significant global growth potential.
The Knicks’ performance on court has also improved, with a core of young players and significant draft capital that should engender additional fan engagement and create incremental pricing power in future years.
GLOBAL FINANCIAL LEADERS
Bank of New York Mellon Corp (BK, Financial) (3.7%) (BK – $44.52 – NYSE) is a global leader in providing financial services to institutions and individuals. The company operates in more than one hundred markets worldwide and strives to be the global provider of choice for investment management and investment services. As of June 30, the firm had $46.9 trillion in assets under custody and $1.9 trillion in assets under management. BK is benefiting from higher interest rates, rising global incomes, and the cross border movement of financial transactions.
ENTERTAINMENT AND AUTOMOTIVE INDUSTRY INSIGHTS
Paramount Global (PARA, Financial) (4.2%) (VIA – $18.56 – NASDAQ) is the product of the December 2019 recombination of Viacom and CBS, two companies controlled by the family of the late Sumner Redstone. Paramount (formerly ViacomCBS) is a globally-scaled content company with networks including CBS, Showtime, Nickelodeon, MTV, Comedy Central, VH1, BET, thirty television stations, and the Paramount movie studio. The company has used its increased scale to better navigate the shifts in consumer behavior and monetization primarily through the successful launch of its Paramount+ direct-to-consumer platform.
Genuine Parts Co (GPC, Financial) (4.6%) (GPC – $169.23 – NYSE) is an Atlanta, Georgia-based distributor of automotive and industrial replacement parts. GPC has a strong competitive position in both its Industrial and Automotive segments and should continue to drive earnings via scale and operational execution. The company should continue to deliver growth, as consumers see the value in repairing their vehicles over buying new, and the industrial market benefits from reshoring and exposure to high growth end markets in automation and conveyance.
Returns represent past performance and do not guarantee future results. Investment returns and the principal value of an investment will fluctuate. When shares are redeemed, they may be worth more or less than their original cost. Current performance may be lower or higher than the performance data presented. Visit www.gabelli.com for performance information as of the most recent month end.
