| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 65.25 | 991 |
| Intrinsic value (DCF) | 3.23 | -46 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 56.71 | 848 |
The Gabelli Utility Trust (NYSE: GUT) is a closed-end equity mutual fund managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. Focused on the utility sector, GUT invests in global public equities of companies engaged in electricity, gas, water, telecommunications, and infrastructure operations. The fund targets companies of all market capitalizations, offering investors diversified exposure to essential utility services. GUT benchmarks its performance against the S&P 500 Utilities Index, Lipper Utility Fund Average, and S&P 500 Index, providing a comparative measure for investors. Established in 1999 and domiciled in the U.S., GUT is designed for income-seeking investors, evidenced by its consistent dividend payouts. With a market cap of approximately $475 million, the fund operates in the financial services sector, specifically asset management, and is listed on the New York Stock Exchange. Its low beta of 0.473 suggests lower volatility relative to the broader market, making it an attractive option for conservative investors.
The Gabelli Utility Trust (GUT) presents a compelling investment opportunity for income-focused investors, given its consistent dividend yield of $0.59619 per share and exposure to the stable utility sector. The fund's low beta (0.473) indicates resilience during market downturns, appealing to risk-averse portfolios. However, its reliance on utility stocks may limit growth potential compared to more dynamic sectors. The absence of debt and positive net income ($36.5 million in FY 2024) underscore financial stability, but the fund's modest revenue ($37.4 million) and limited cash reserves ($1,416) could constrain aggressive strategies. Investors should weigh GUT's defensive positioning against potential underperformance in high-growth market environments.
The Gabelli Utility Trust (GUT) differentiates itself through its specialized focus on utility equities, a niche within the broader asset management industry. Its competitive advantage lies in Gabelli Funds' active management approach, which seeks to capitalize on undervalued utility stocks with growth potential. The fund's benchmarking against multiple indices (S&P 500 Utilities, Lipper Utility Fund Average, and S&P 500) provides transparency and performance accountability. However, GUT faces competition from both passive utility ETFs and actively managed utility funds, which may offer lower fees or broader diversification. Its closed-end structure allows for leveraged strategies, but this also introduces liquidity risks compared to open-end funds. GUT's low expense ratio (implied by its net income/revenue ratio) and consistent dividends enhance its appeal, though its small market cap limits economies of scale relative to larger asset managers. The fund's performance is closely tied to regulatory and macroeconomic factors affecting utilities, such as interest rate fluctuations and infrastructure spending.