Gabelli fund flags T-Mobile as 4.5% holding amid growth push

Gabelli Investment Management Firm’s Global Content & Connectivity Fund identified T-Mobile US as a 4.5 per cent holding in its second-quarter 2026 investor letter, highlighting potential growth across wireless, broadband, advertising, financial services and emerging technology.

The fund said T-Mobile raised its 2027 targets for service revenue, EBITDA and free cash flow at its February 2026 Capital Markets Day. Management expects growth to be supported by continued market-share gains, expansion of the broadband business and use of the company’s 5G Advanced network.

The letter described T-Mobile as the second-largest wireless operator in the United States, serving more than 142 million branded customers. It also identified longer-term opportunities in edge and physical artificial intelligence, while presenting them as emerging areas rather than established revenue streams.

T-Mobile closed at approximately US$188.02 on 3 September, according to the account, giving the company a reported market capitalisation of about US$194.71 billion. The price cited in the fund letter was US$167.73 and relates to a different date.

Gabelli’s Class I shares gained 12.88 per cent in the second quarter, compared with a 6.02 per cent return for its communication-services benchmark. The fund said it remained focused on long-term opportunities linked to AI adoption, digital infrastructure, connectivity, content and entertainment, while acknowledging that higher interest rates, geopolitical tensions and the durability of AI spending could contribute to volatility.