Gabelli Focused Growth and Income Fund's Top Contributor in Q2 Was Herc Holdings Inc.
In its second-quarter 2026 investor letter, Gabelli Focused Growth and Income Fund highlighted Herc Holdings Inc. (HRI) as the top contributor to returns during a challenging quarter for rate-sensitive investments. The fund declined by 1.61% due to pressures in telecommunications and income-producing assets amid an elevated interest-rate environment. Despite this backdrop, HRI surged approximately 45%, driven by strong first-quarter results that exceeded expectations. Herc Holdings reported equipment rental revenue of $981 million—a 33% increase—and adjusted EBITDA rose 33% to $448 million. The company affirmed its full-year guidance for equipment rental revenue between $4.275 billion and $4.4 billion, supported by strong national account activity and a growing mega-project pipeline. HRI also pays an annualized dividend of $2.80 per share. The fund remains optimistic about the cyclical nature of high interest rates and is focused on companies with resilient business models and sustainable cash flows.
Tickers: $HRI
Topics: Gabelli Focused Growth and Income Fund Herc Holdings Inc. portfolio performance Q2 2026 investor letter