Why RPC (RES) Was a Q2 Detractor for Gabelli Small Cap Growth Fund

Attiya Zainib

Tue, September 22, 2026 at 9:36 AM PDT 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 Atlanta Braves Holdings Inc. (NASDAQ:BATRK). Atlanta Braves Holdings Inc. (NASDAQ:BATRK) consists primarily of the Atlanta Braves baseball club and a mixed-use real estate development surrounding Truist Park. The one-month return of Atlanta Braves Holdings Inc. (NASDAQ:BATRK) was -1.07% while its shares traded between $37.76 and $54.46 over the last 52 weeks. On September 21, 2026, Atlanta Braves Holdings Inc. (NASDAQ:BATRK) stock closed at approximately $52.22 per share, with a market capitalization of about $3.36 billion.

Gabelli Small Cap Growth Fund stated the following regarding Atlanta Braves Holdings Inc. (NASDAQ:BATRK) in its Q2 2026 investor letter:

"Atlanta Braves Holdings Inc. (NASDAQ:BATRK) (0.5% of net assets as of June 30, 2026) (BATRA – $56.31 – NASDAQ) primary assets are the Atlanta Braves baseball club and the mixed-use real estate development known as 'The Battery' surrounding Truist Park (Click Here To Read The Letter In Detail)."

Atlanta Braves Holdings Inc. (NASDAQ:BATRK) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 54 hedge fund portfolios held Atlanta Braves Holdings Inc. (NASDAQ:BATRK) at the end of the first quarter, which was 45 in the previous quarter. While we acknowledge the risk and potential of Atlanta Braves Holdings Inc. (NASDAQ:BATRK) 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.