Market Overview

Mario Gabelli Is Betting On Micro-Caps Tecumseh And Sevcon


Mario Gabelli on Tuesday filed two Schedule 13D forms with the SEC, disclosing increased stakes in two micro-cap companies: Sevcon Inc (NASDAQ: SEV) and Tecumseh Products Company (NASDAQ: TECU). Let’s take a look at these moves and the companies involved in order to elucidate if they stand as attractive investment options.

Tecumseh Products Company

Tecumseh Products Company is a $92.07 million market cap industrials manufacturer. According to the latest filing, the funds affiliated with Gabelli (GAMCO, Gabelli Funds and GSI) boosted their exposure to the company by 7.8 percent.

The firms may be deemed beneficial ownership of 2,637,268 shares (up from a previous 2,445,468), representing 14.21 percent of the total shares outstanding.

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Only one institutional investor holds a larger stake in Tecumseh: Aegis Financial Corp. According to its latest 13F filing, the firm owns 3,056,098 shares of the company. Another major hedge fund betting on the micro-cap is Chuck Royce’s Royce & Associates, which last disclosed ownership of more than 8.7 percent of the company, or 1,609,965 shares.


Sevcon, an electronic controls company with a market cap of under $30 million, is a nano-cap. In this case, the increase in Gabelli’s exposure reached 38.3 percent.

According to the filing, Gabelli and the funds affiliated with him (plus Teton Advisors) now own 2,195,872 shares of Common Stock, or 48.75 percent of the company’s outstanding stock.

This position makes Gabelli the largest institutional investor in Sevcon, trailed by Wells Fargo & Co., which last declared holding 230,938 shares, and Dimensional Fund Advisors, which owns 108,224 shares of Sevcon and 1,232,891 shares of Tecumseh.

Posted-In: Aegis Financial Corp Chuck Royce Dimensional Fund Advisors Gabelli FundsLong Ideas Hedge Funds Trading Ideas General


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