Gabelli Investment Management Firm not too long ago launched its “Small Cap Growth Fund” second-quarter 2026 investor letter. A duplicate of the letter can be downloaded here. The Fund returned 14.44% in the second quarter of 2026, underperforming the Russell 2000 Index, which gained 21.49%, as nicely as the S&P SmallCap 600 and Lipper Small-Cap Core Funds Average. The Fund’s efficiency mirrored weaker relative outcomes despite features across several portfolio holdings, while the broader small-cap market delivered a notably robust quarter. The Fund stays centered on figuring out smaller firms with enticing long-term growth potential, with its investment strategy centered on elementary analysis and alternatives where the market price does not totally mirror the underlying worth of a business. The Fund had $1.9 billion in web property at quarter-end and has generated a 12.18% annualized return since inception, underscoring its long-term focus despite shorter-term intervals of relative underperformance. In addition, please examine the Fund’s prime 5 holdings to know its best picks in 2026.
In its second-quarter 2026 investor letter, Gabelli Small Cap Growth Fund highlighted shares like Crane Co. (NYSE:CR). Crane Co. (NYSE:CR) is a producer of extremely engineered parts for mission-critical functions centered on aerospace, protection, space, and course of industry finish markets. Its segments embody Aerospace & Electronics and Process Flow Technologies. The one-month return of Crane Co. (NYSE:CR) was -2.50% while its shares traded between $159.58 and $230.50 over the last 52 weeks. On September 21, 2026, Crane Co. (NYSE:CR) stock closed at roughly $198.96 per share, with a market capitalization of about $11.62 billion.
Gabelli Small Cap Growth Fund said the following regarding Crane Co. (NYSE:CR) in its Q2 2026 investor letter:
“Crane Co. (NYSE:CR) is a producer of extremely engineered parts for mission-critical functions centered on aerospace, protection, space and course of industry finish markets. Its segments embody Aerospace & Electronics and Process Flow Technologies (Click Here To Read The Letter In Detail).”
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Crane Co. (NYSE:CR) is not on our checklist of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 47 hedge fund portfolios held Crane Co. (NYSE:CR) at the finish of the first quarter, which was 59 in the earlier quarter. While we acknowledge the risk and potential of Crane Co. (NYSE:CR) as an investment, our conviction lies in the perception that some AI shares maintain better promise for delivering increased returns and doing so within a shorter time body. If you’re trying for an extraordinarily undervalued AI stock that also stands to benefit considerably from Trump-era tariffs and the onshoring development, see our free report on the best short-term AI stock.