By Josh Beckerman
Mario Gabelli's investment firm Gamco Investors Inc. said it
will pursue a possible split into two publicly traded companies,
following in the footsteps of a number of corporations that have
decided the sum of its parts is worth more than the whole.
The company, which said it will soon file a registration
statement with the Securities and Exchange Commission, didn't offer
specific details about the possible split in its news release.
Gamco is well-known for its mutual-fund business. Through
G.research Inc., it provides research and brokerage services to
institutional clients and investment partnerships. And
G.distributors LLC acts as an underwriter and distributor of
open-ended funds.
Mr. Gabelli said that he plans to remain chairman and chief
executive of the Gamco asset management business, and will have "an
active executive role" during the initial formation of the new
entity.
He founded the company in 1977 and took it public in 1999.
Mr. Gabelli has previously said he likes to invest in companies
that have a history of splitting off successful businesses, and
then invest in both companies. He was one of several large
investors who voiced support last year when Madison Square Garden
Co. said it was considering a split.
Mr. Gabelli has been one of the highest paid executives on Wall
Street. The long-term stock picker earned $85 million in 2013,
easily topping the pay of other titans like KKR & Co.'s Henry
Kravis and George Roberts, BlackRock Inc.'s Larry Fink and even
Goldman Sachs & Co.'s Lloyd Blankfein.
Write to Josh Beckerman at josh.beckerman@wsj.com
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