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 The E.W. Scripps Company (NASDAQ: SSP ). The E.W. Scripps Company (NASDAQ:SSP) is a diversified media company operating local TV stations, Scripps News, entertainment networks, and sports broadcasting businesses. The one-month return of The E.W. Scripps Company (NASDAQ:SSP) was -19.85% while its shares traded between $2.0200 and $5.3900 over the last 52 weeks. On September 29, 2026, The E.W. Scripps Company (NASDAQ:SSP) stock closed at approximately $2.6100 per share, with a market capitalization of about $241.40 billion.
Gabelli Global Mini Mites Fund stated the following regarding The E.W. Scripps Company (NASDAQ:SSP) in its Q2 2026 investor letter:
The E.W. Scripps Company (NASDAQ:SSP)is a diversified media enterprise and one of the largest independent owners of local TV stations in the U.S. The company's Local Media segment operates over 60 TV stations in 40+ markets, reaching approximately 38% of U.S. TV households, while its Networks division reaches households nationally with news outlet Scripps News and entertainment brands including ION and Bounce. Shares were pressured during the quarter due to weakness in the Networks segment, reflecting softer direct-response advertising and the impact of two carriage disputes. While the Comcast blackout was resolved in early May, the DirecTV dispute remains ongoing. Despite these near-term headwinds, Scripps is expected to benefit from stronger political ad spending ahead of the mid-term elections, and the company continues to progress on its transformation plan, which targets $125–$150 million of earnings before interest, taxes, depreciation and amortization (EBITDA) improvement by 2028. Lastly, while Scripps' Board rejected Sinclair Inc.'s unsolicited $7 per share bid in December 2025, Sinclair Inc. remains one of Scripps' largest outside shareholders with about a 10% stake and has continued to advocate for engagement. At our annual Sports & Media Symposium in early June, Scripps reiterated its openness to smart consolidation. A more favorable Federal Communications Commission (FCC) regulatory landscape could create additional strategic M&A opportunities that surface value for shareholders from here ( Click Here To Read The Letter In Detail ).
The E.W. Scripps Company (NASDAQ:SSP) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 . As per our database, 21 hedge fund portfolios held The E.W. Scripps Company (NASDAQ:SSP) at the end of the first quarter, which was 17 in the previous quarter. While we acknowledge the risk and potential of The E.W. Scripps Company (NASDAQ:SSP) 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 The E.W. Scripps Company (NASDAQ:SSP) 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 .
