In the third quarter of 2025, Gabelli Funds observed significant movements across its portfolio, with notable contributions from Newmont Corp., Warner Bros. Discovery, and Sony Group. Newmont's strong performance was primarily driven by the escalating price of gold and successful ongoing expansion initiatives. Warner Bros. Discovery experienced a boost following market speculation about a potential acquisition. Meanwhile, Sony Group's positive trajectory was fueled by robust operational results, the anticipated spin-off of its financial arm, and a resurgence of investor interest in Japanese equities. Conversely, CNH Industrials faced headwinds due to prevailing weaknesses in the agricultural sector and persistent trade tensions, which dampened demand for farm equipment. The fund projects continued growth for Newmont, forecasting a gold production of 6 million ounces in the coming year.
Newmont Corporation, a prominent gold miner, emerged as the top performer in the fund's portfolio during the third quarter of 2025, accounting for 8.8% of net assets and a 45% return. The company successfully capitalized on the historic surge in gold prices, effectively narrowing the disparity between its operational results and the market's bullish gold trend. Newmont's strategic expansion projects in Australia and Ghana are expected to be pivotal in achieving a projected gold production of 6 million ounces in 2025, underscoring its potential for sustained growth and profitability.
Warner Bros. Discovery also posted significant gains, benefiting from recent news reports suggesting that Paramount Skydance, itself a product of a recent merger, was considering a bid for the company. This speculation injected considerable optimism into the stock, reflecting investor confidence in the media giant's future prospects amid potential consolidation in the entertainment industry.
Sony Group's shares ascended due to a confluence of factors, including solid financial performance, the eagerly awaited October spin-off of its Sony Financial division, and a renewed wave of enthusiasm for Japanese equities. The strategic restructuring and strong core business segments, such as gaming and entertainment, positioned Sony favorably in the global market, attracting significant investor attention.
In contrast, CNH Industrials acted as a notable drag on the fund's performance. The company was negatively affected by a downturn in the agricultural sector, which, partly due to ongoing international trade disputes, reduced demand for farm machinery and equipment. This highlights the vulnerabilities of companies tied to cyclical industries and geopolitical influences.
Looking ahead, Gabelli Funds remains optimistic about the strategic positioning of its key holdings. Newmont's continued focus on operational efficiency and expansion is set to bolster its gold output, reinforcing its market leadership. Sony's post-spin-off structure is expected to unlock further value, leveraging its strong brand and diverse portfolio. While some sectors face challenges, the fund's diversified approach aims to mitigate risks and capture opportunities arising from evolving market dynamics and strategic corporate actions.