Gabelli Investment Management Firm recently released its "Mini Mites Fund" second-quarter 2026 investor letter. A copy of the letter can be downloaded here . The Fund benefited from a strong investment environment for global small- and micro-cap stocks in the second quarter of 2026, as AI adoption, reshoring, supply-chain reconfiguration, and strength in semiconductor, aerospace, defense, and data-center activity supported several portfolio holdings. The Fund's Class I shares gained 19.47% in Q2, outperforming the 15.99% return of the S&P Developed SmallCap Index, while its one-year return reached 35.14%, compared with 29.84% for the benchmark. Performance was driven by improved earnings, cash flow, and operating trends across several holdings, including the benefits of AI-enabled capabilities, stronger industrial backlogs, and demand shifts toward North American production, while weakness in parts of the biotechnology and media sectors limited gains. Looking ahead, Gabelli continues to see opportunities among smaller companies positioned to benefit from AI-related investment, industrial reshoring, infrastructure spending, and potential strategic transactions, while the broader market backdrop remains supported by resilient global economic growth and expanding AI adoption. In addition, please check the Fund's top five holdings to know its best picks in 2026.
In its second-quarter 2026 investor letter, Gabelli Global Mini Mites Fund highlighted stocks like Monro, Inc. (NASDAQ: MNRO ). Monro, Inc. (NASDAQ:MNRO) is a provider of automotive repair and tire services through its network of automotive service locations. The one-month return of Monro, Inc. (NASDAQ:MNRO) was 12.49% while its shares traded between $11.06 and $23.91 over the last 52 weeks. On September 29, 2026, Monro, Inc. (NASDAQ:MNRO) stock closed at approximately $13.76 per share, with a market capitalization of about $438.68 million.
Gabelli Global Mini Mites Fund stated the following regarding Monro, Inc. (NASDAQ:MNRO) in its Q2 2026 investor letter:
Monro, Inc. (NASDAQ:MNRO)(1.8% of net assets as of June 30, 2026) (MNRO – $17.11 – NASDAQ), headquartered in Fairport, New York, is the largest chain of company-operated undercar service facilities in the United States, operates 1,115 company-operated stores in 32 states, and has 47 franchised locations. On May 27, the company announced it had initiated a review of strategic alternatives to maximize shareholder value, including a potential sale of the company. The timing is notable, as on June 18 the Class C Preferred Stock, which had granted shareholder and Board member Peter Solomon voting control, was converted into common stock. We believe the industry backdrop and its network of stores makes MNRO an attractive acquisition candidate for both strategic buyers and private equity. Despite challenges in the broader automotive industry, the aftermarket remains a safe haven for investors supported by the durable fundamentals. The 6- to 12-year-old vehicle population, the "sweet spot" for MNRO, continues to grow, driven by aging fleets, constrained new/used vehicle production, and high new/used prices ( Click Here To Read The Letter In Detail ).
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Monro, Inc. (NASDAQ:MNRO) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 . As per our database, 28 hedge fund portfolios held Monro, Inc. (NASDAQ:MNRO) at the end of the first quarter, which was 20 in the previous quarter. While we acknowledge the risk and potential of Monro, Inc. (NASDAQ:MNRO) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock .
In another article , we covered Monro, Inc. (NASDAQ:MNRO) and shared the company's Earnings Call Transcript. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
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This article is originally published at Insider Monkey .
