Why Sony Group Corporation (SONY) Remains a Key Gabelli Holding

Why Sony Group Corporation (SONY) Remains a Key Gabelli Holding

Wed, September 23, 2026 at 5:05 PM GMT+3 4 min read

Gabelli Investment Management Firm recently released its "Global Rising Income and Dividend Fund" second-quarter 2026 investor letter. A copy of the letter can be downloaded here. The Fund returned 5.78% in the second quarter of 2026, trailing the MSCI World Index, which gained 13.90% as global markets rallied broadly during the period. The letter highlighted easing concerns around tariffs and the global trade war, while geopolitical tensions also moderated toward quarter-end. The Fund noted that the S&P 500 gained approximately 15%, while the MSCI EAFE Index rose about 4%, with substantial differences among international markets. Looking ahead, the Fund expects the Federal Reserve to keep short-term interest rates steady for several more months because inflation remains above the central bank's 2% target, making near-term rate cuts less likely. The Fund continues to pursue income and long-term capital appreciation through a diversified global portfolio, and had $73.1 million in net assets at the end of the quarter. 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 Rising Income and Dividend Fund highlighted stocks like Sony Group Corporation (NYSE:SONY). Sony Group Corporation (NYSE:SONY) is a global conglomerate based in Tokyo, Japan, focused on direct-to-consumer entertainment products. The company operates across gaming, music, film, image sensors, anime, and other entertainment businesses. The one-month return of Sony Group Corporation (NYSE:SONY) was -3.71% while its shares traded between $19.32 and $30.34 over the last 52 weeks. On September 22, 2026, Sony Group Corporation (NYSE:SONY) stock closed at approximately $23.42 per share, with a market capitalization of about $135.73 billion.

Gabelli Global Rising Income and Dividend Fund stated the following regarding Sony Group Corporation (NYSE:SONY) in its Q2 2026 investor letter:

"Sony Group Corporation (NYSE:SONY) (5.1%) (SONY | 6758 – $20.06 | ¥ 3,280.00 – NYSE | Tokyo Stock Exchange) is a global conglomerate based in Tokyo, Japan, focused on direct-to-consumer entertainment products. Sony is the #1 integrated global gaming company with its Sony PlayStation 5 gaming platform and video game development studios. Sony Music Recording commands the #2 and Music Publishing the #1 global share. Sony Music is capitalizing on the growth of streaming and higher music royalty fees. Sony also operates the Sony/Columbia film studio, which is well positioned in the over-the-top (OTT) streaming wars as a major supplier of high-quality library shows. Sony's new exclusive Pay-1 global licensing deal with Netflix (announced in January 2026) will bring higher rates of streaming content payments in 2027. Sony is the number one image sensor leader and the sole supplier to Apple iPhones, with a growth roadmap toward larger sensors and higher average selling prices through its fiscal year 2030. Sony will divest its home entertainment business into a joint venture in a strategic partnership with TCL Electronics Holdings. The company is also pursuing growth opportunities in anime, including its anime streaming subscription Crunchyroll, and cross-content media opportunities. In response to inflationary memory costs, Sony managed to secure supplies through the end of its fiscal year ending March 31, 2027."

Sony Group Corporation (NYSE:SONY) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 31 hedge fund portfolios held Sony Group Corporation (NYSE:SONY) at the end of the first quarter, which was 27 in the previous quarter. While we acknowledge the risk and potential of Sony Group Corporation (NYSE:SONY) 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 Sony Group Corporation (NYSE:SONY) and shared the list of blue-chip stocks Jim Cramer is crazy about. 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.