Gabelli SRI Fund on EchoStar Corp.
Thesis
EchoStar declined even as SpaceX, in which EchoStar holds a stake representing roughly half of its value, completed an IPO near a $2 trillion valuation. Gabelli sees that divergence as a timing issue rather than a deterioration in the underlying asset value. The thesis is that the market should eventually better reflect the value of EchoStar's SpaceX exposure.
“we see the divergence as a timing dislocation rather than a change in the underlying value.”