The Gabelli Asset Fund's third-quarter 2025 performance reflects a mixed landscape of market dynamics, with gold mining and industrial sectors showing strength, while agricultural machinery faced headwinds. This overview highlights the key contributors to the fund's results, illustrating how specific company performances and broader market trends shaped its investment scorecard during this period.
Newmont Corporation (NEM) emerged as the primary driver of performance, contributing significantly to the fund's gains. The company's stock price surged by 45%, propelled by a notable increase in gold prices. During the quarter, gold saw its value rise from approximately $3,300 per ounce to nearly $3,800 per ounce, directly benefiting Newmont, which held a 1.8% net asset allocation as of September 30, 2025. This upward trend in gold prices underscore the precious metal's role as a hedge and a key factor for mining company valuations.
Caterpillar Inc. also delivered strong performance, with its shares climbing by 23%. This growth was fueled by robust demand for its mining equipment, reflecting a buoyant global mining sector. Additionally, investor optimism surrounding Caterpillar's potential to supply backup power generators for data centers contributed to its positive momentum. This highlights the company's diversification beyond traditional heavy machinery into emerging technological infrastructure needs.
In contrast, agricultural equipment manufacturers Deere & Company and CNH Industrial experienced declines in their stock values. This downturn was largely attributed to a weakening in commodity prices and reduced demand for agricultural products such as soybeans and corn. The agricultural sector faced challenges during the quarter, impacting companies reliant on farming machinery sales and suggesting a cautious outlook for this segment of the economy.
Madison Square Garden Sports Co. was identified as a unique investment opportunity, offering public investors access to the dynamic and growth-oriented sports franchise market. The company's shares appreciated by 27%, reflecting the increasing value and positive trends within the professional sports industry. Its position provides exposure to a sector often dominated by private ownership, making it an attractive option for certain investors.
Textron Inc. also demonstrated positive progress, with its stock rising by 21%. The company's consistent efforts in improving operational efficiencies and expanding its market share were key factors in this appreciation. Textron's strategic enhancements are expected to further strengthen its competitive standing in the market, suggesting a stable long-term outlook for the company.
BellRing Brands faced intense competition and a deceleration in growth. Despite these challenges, the company is viewed as a potential long-term leader in its sector and a possible acquisition target. The V-280 tiltrotor program by Textron, backed by a significant U.S. Army contract, alongside its near-duopoly in the business jet market, provides substantial upside. Additionally, Rogers Communications' strategic move to acquire the remaining 25% of MLSE is anticipated to create synergies in revenue and costs, indicating a promising future for these entities.
The Gabelli Asset Fund's strategic investment approach emphasizes identifying undervalued companies with significant growth potential across various sectors. The fund's managers aim to capitalize on both macroeconomic trends, such as rising commodity prices, and company-specific operational improvements and strategic initiatives. This active management style seeks to generate superior returns by focusing on fundamental analysis and long-term value creation.