Keep An Eye On Mario Gabelli's Latest Small-Cap Moves

Mario Gabelli’s GAMCO Investors is one of the largest hedge funds in the world. With an equity portfolio worth more than $19 billion, the firm has managed to beat the S&P 500 for almost three decades now.

This week, the fund disclosed three moves in small-cap companies that could provide investors with attractive ideas.

First off, the fund declared having added 2,205,823 shares of Common Stock to its activist position in Mueller Industries, Inc. MLI. The wage now comprises 5,790,160 shares, which represent 10.16 percent of the company’s shares outstanding and are worth more than $186 million at current stock prices.

This stake makes of GAMCO the largest institutional investor in Mueller Industries, trailed by the Vanguard Group, which owns 3,982,760 and last boosted its bet by 179,654 shares, and hedge fund Gates Capital Management, which last trimmed its exposure by 23 percent to 3,387,040 shares.

Another company that saw Gabelli increase his participation is Brink's Company BCO, a provider of secure logistics and security solutions. According to a recent 13D filing, the fund added 586,701 shares of Common Stock to its stake, which now amounts to 3,464,984 shares, representing 7.12 percent of the company’s outstanding stock.

Also betting on Brink’s is Jeffrey Smith’s Starboard Value LP, which increased its exposure to the stock twice since the end of the first quarter – the last reported one. As of the end of the first quarter, the fund held 2,075,000 shares; now, it owns 4,371,760 shares, according to an SEC filing issued Wednesday.

On the other hand, Mason Hawkins’ Southeastern Asset Management, which was the largest institutional shareholder in the company as of the end of the first quarter, declared having disposed of 1,164,564 shares, taking its holdings down to 3,948,473 shares.

Finally, there’s Astec Industries, Inc. ASTE, which saw GAMCO almost double its stake from 1,151,527 shares to 2,230,870 shares. The new position accounts for 9.71 percent of the company’s shares outstanding, and is worth about $87 million at current stock prices.

This stake makes of GAMCO the largest hedge fund investor in the company. However, Franklin Resources, Inc. BEN has an 11.12 percent stake in the company, comprising 2,549,398 shares.