The Role of AI and Digital Connectivity in Driving Growth in the Gabelli Global Content & Connectivity Fund

The Gabelli Global Content & Connectivity Fund (GABTX) has emerged as a standout performer in the evolving tech landscape, posting a remarkable 12.3% net asset value (NAV) growth in Q3 2025. This surge underscores the fund's strategic focus on artificial intelligence (AI) and digital connectivity, sectors poised to redefine global innovation. Managed by Sergey Dluzhevskiy, CFA, CPA, the fund's 19-year track record of sector expertise has positioned it to capitalize on the convergence of telecommunications, media, and AI-driven technologies.

Strategic Sector Positioning: AI and Digital Connectivity as Growth Engines

The fund's investment thesis centers on companies leveraging AI to enhance user engagement and operational efficiency. As stated by the fund's management, "At least 25% of the Fund's assets are allocated to telecommunications-related industries, with a secondary emphasis on innovation and growth in AI integration." This approach aligns with the accelerating demand for digital infrastructure, from 5G networks to cloud-based content delivery.

Key to this strategy is the fund's exposure to SoftBank Group Corp., which accounts for 11.0% of its portfolio. SoftBank's investment in AI startups and its role in advancing robotics and IoT technologies have driven a 74.0% increase in its value, directly contributing to the fund's Q3 performance. Similarly, Alphabet Inc. (7.08% of the fund) and Prosus N.V. (6.67%) have bolstered returns through their AI-centric initiatives in search algorithms, content personalization, and e-commerce platforms.

Top Holdings and Sector Diversification

The fund's top holdings reflect a diversified yet targeted approach to high-growth sectors. T-Mobile US Inc. (6.66%) and Deutsche Telekom AG benefit from the global rollout of 5G infrastructure, while Meta Platforms Inc. (6.5%) continues to innovate in AI-driven social media and virtual reality ecosystems. This mix of telecom and media companies ensures the fund captures both the hardware and software components of digital connectivity.

Notably, the fund's 25% minimum allocation to telecommunications-related industries provides a stable foundation amid market volatility. As data from the Gabelli website indicates, this sectoral discipline has historically insulated the fund from downturns in less dynamic industries.

Sergey Dluzhevskiy's 19-Year Impact

Dluzhevskiy's deep expertise in tech and telecom sectors has been instrumental in shaping the fund's success. Over his 19-year tenure, he has consistently prioritized companies with disruptive potential, such as those pioneering AI in content creation or network optimization. A report by Seeking Alpha highlights that his strategic decisions have led to a year-to-date return of 25.09% as of December 19, 2025, outperforming broader market indices.

His approach is rooted in identifying early-stage innovations that scale rapidly. For instance, the fund's early adoption of SoftBank's Vision Fund, which invests in AI and robotics, has paid dividends as these technologies mature. Dluzhevskiy's ability to balance long-term vision with short-term execution has solidified the fund's reputation as a leader in digital innovation.

A Compelling Case for Investors

The Gabelli Global Content & Connectivity Fund's Q3 2025 performance exemplifies the power of aligning with AI and digital connectivity trends. With a 12.3% NAV increase, driven by top holdings like SoftBank and Alphabet, the fund demonstrates the tangible returns of investing in tomorrow's technologies. For investors seeking exposure to the next wave of innovation, GABTX offers a compelling vehicle, combining sectoral expertise with a forward-looking portfolio.

As global demand for AI and digital infrastructure accelerates, the fund's strategic positioning ensures it remains at the forefront of this transformation. With Dluzhevskiy's seasoned leadership and a portfolio weighted toward high-growth sectors, the Gabelli Global Content & Connectivity Fund is well-positioned to deliver sustained value in an increasingly connected world.