Why Dana (DAN) Was a Q2 Detractor for Gabelli Small Cap Growth Fund

Why Dana (DAN) Was a Q2 Detractor for Gabelli Small Cap Growth Fund

Tue, September 22, 2026 at 7:36 PM GMT+3 3 min read

• DAN +0.78%

Gabelli Investment Management Firm recently released its "Small Cap Growth Fund" second-quarter 2026 investor letter. A copy 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 well as the S&P SmallCap 600 and Lipper Small-Cap Core Funds Average. The Fund's performance reflected weaker relative results despite gains across several portfolio holdings, while the broader small-cap market delivered a particularly strong quarter. The Fund remains focused on identifying smaller companies with attractive long-term growth potential, with its investment approach centered on fundamental research and opportunities where the market price does not fully reflect the underlying value of a business. The Fund had $1.9 billion in net assets at quarter-end and has generated a 12.18% annualized return since inception, underscoring its long-term focus despite shorter-term periods of relative underperformance. 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 Small Cap Growth Fund highlighted stocks like Dana Inc. (NYSE:DAN). Dana Inc. specializes in designing and manufacturing propulsion and energy-management solutions for vehicles and machines across global mobility markets. Its technologies include drive systems, electrodynamic technologies, sealing solutions, thermal-management technologies, and digital solutions. The one-month return of Dana Inc. (NYSE:DAN) was 0.30% while its shares traded between $17.74 and $39.56 over the last 52 weeks. On September 21, 2026, Dana Inc. (NYSE:DAN) stock closed at approximately $29.99 per share, with a market capitalization of about $3.25 billion.

Gabelli Small Cap Growth Fund stated the following regarding Dana Inc. (NYSE:DAN) in its Q2 2026 investor letter:

"Dana Inc. (NYSE:DAN) specializes in designing and manufacturing propulsion and energy-management solutions that power vehicles and machines in all mobility markets across the globe (Click Here To Read The Letter In Detail)."

Dana Inc. (NYSE:DAN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 41 hedge fund portfolios held Dana Inc. (NYSE:DAN) at the end of the first quarter, which was 32 in the previous quarter. While we acknowledge the risk and potential of Dana Inc. (NYSE:DAN) 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 Dana Inc. (NYSE:DAN) and shared the list of most undervalued growth stocks to buy for the next 10 years. 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.