Gamco Investors (NYSE:GBL) is a textbook example of the disconnect between a strong company and a weak stock due to the recent market pullback, which creates an asymmetric opportunity.
The implied discount due to the controlling ownership of Mario Gabelli is completely unwarranted given his significant skin in the game and history of returning excess cash to shareholders through buybacks, regular dividend increases and special cash dividends.
GBL should trade in line with peers due to the comparable operating margin, expected AUM growth driven by new market initiatives and relatively higher exposure to actively managed equities (with their higher fees).
GBL is an asset manager providing investment advisory services to investment partnerships, open/closed-end funds...
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