The Gabelli Dividend Growth Fund, a series of Gabelli Equity Series Funds, Inc. on Genuine Parts Company
Thesis
Gabelli initiated Genuine Parts as the company prepared to separate its industrial-distribution and automotive-aftermarket businesses. The manager believes the two operations are worth materially more than the market currently reflects based on their respective earnings potential. The separation is therefore the catalyst that could allow the market to value each business more appropriately.
“We believe Genuine Parts is materially undervalued relative to the earnings potential of the respective businesses.”