Why Gorman-Rupp Co. (GRC) Was a Top Performer for Gabelli in Q2

Why Gorman-Rupp Co. (GRC) Was a Top Performer for Gabelli in Q2

Tue, September 22, 2026 at 7:34 PM GMT+3 3 min read

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 Gorman-Rupp Co. (NYSE:GRC). Gorman-Rupp Co. (NYSE:GRC)designs, manufactures, and sells pumps and pump systems in the United States and internationally. Its products include self-priming, standard, and magnetic drive centrifugal systems, as well as boosters, diaphragms, bellows, and pumps. The one-month return of Gorman-Rupp Co. (NYSE:GRC) was -3.31% while its shares traded between $42.31 and $92.78 over the last 52 weeks. On September 21, 2026, Gorman-Rupp Co. (NYSE:GRC) stock closed at approximately $73.75 per share, with a market capitalization of about $1.96 billion.

Gabelli Small Cap Growth Fund stated the following regarding Gorman-Rupp Co. (NYSE:GRC) in its Q2 2026 investor letter:

"Gorman-Rupp Co. (NYSE:GRC) designs, manufactures, and sells pumps and pump systems in the United States and internationally. The company offers self-priming, standard, and magnetic drive centrifugal systems, as well as several types of boosters, diaphragms, bellows, and pumps. Its products are used in water, wastewater, construction, dewatering, industrial, petroleum, original equipment, agriculture, fire suppression, heating, ventilating, and air conditioning, military, and other liquid-handling applications (Click Here To Read The Letter In Detail)."

Gorman-Rupp Co. (NYSE:GRC) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 17 hedge fund portfolios held Gorman-Rupp Co. (NYSE:GRC) at the end of the first quarter, which was 15 in the previous quarter. While we acknowledge the risk and potential of Gorman-Rupp Co. (NYSE:GRC) 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 Gorman-Rupp Co. (NYSE:GRC) and shared a bullish thesis on the company. 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.