The Gabelli Equity Income Fund
Schedule of Investments (Continued) — December 31, 2012 (Unaudited)
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Principal
Amount
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Market
Value
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CORPORATE BONDS (Continued)
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Diversified Industrial — 0.3%
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6,500,000
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Griffon Corp., Sub. Deb. Cv., 4.000%, 01/15/17(c)
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$
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6,930,625
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Energy and Utilities: Electric — 0.0%
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100,000
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Texas Competitive Electric Holdings Co. LLC, Ser. B, 10.250%, 11/01/15
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28,750
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TOTAL CORPORATE BONDS
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8,944,375
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TOTAL INVESTMENTS — 100.0%
(Cost $1,635,002,118)
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$
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2,167,787,415
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Aggregate tax
cost
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$
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1,644,218,949
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Gross unrealized appreciation
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$
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602,843,552
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Gross unrealized depreciation
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(79,275,086
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)
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Net unrealized appreciation/depreciation
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$
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523,568,466
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(a)
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Security fair valued under procedures established by the Board of Directors. The procedures may include reviewing available financial
information about the company and reviewing the valuation of comparable securities and other factors on a regular basis. At December 31, 2012, the market value of fair valued securities amounted to $1 or 0.00% of total investments.
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(c)
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Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers. At December 31, 2012, the market value of Rule 144A securities amounted to $7,049,666 or 0.33% of total investments.
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†
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Non-income producing security.
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ADR
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American Depositary Receipt
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CVR
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Contingent Value Right
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SDR
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Swedish Depositary Receipt
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Strips
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Regular income payment portion of the security traded separately from the principal portion of the security.
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See accompanying notes
to schedule of investments.
7
The Gabelli Equity Income Fund
Notes to Schedule of Investments (Unaudited)
The Fund’s schedule of investments is prepared in accordance with U.S. Generally Accepted Accounting Principles
(“GAAP”), which may require the use of management estimates and assumptions. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Fund in the preparation of its
schedule of investments.
Security Valuation.
Portfolio securities listed or traded on a nationally recognized
securities exchange or traded in the U.S. over-the-counter market for which market quotations are readily available are valued at the last quoted sale price or a market’s official closing price as of the close of business on the day the
securities are being valued. If there were no sales that day, the security is valued at the average of the closing bid and asked prices or, if there were no asked prices quoted on that day, then the security is valued at the closing bid price on
that day. If no bid or asked prices are quoted on such day, the security is valued at the most recently available price or, if the Board of Directors (the “Board”) so determines, by such other method as the Board shall determine in good
faith to reflect its fair market value. Portfolio securities traded on more than one national securities exchange or market are valued according to the broadest and most representative market, as determined by Gabelli Funds, LLC (the
“Adviser”).
Portfolio securities primarily traded on a foreign market are generally valued at the preceding
closing values of such securities on the relevant market, but may be fair valued pursuant to procedures established by the Board if market conditions change significantly after the close of the foreign market, but prior to the close of business on
the day the securities are being valued. Debt instruments with remaining maturities of sixty days or less that are not credit impaired are valued at amortized cost, unless the Board determines such amount does not reflect the securities’ fair
value, in which case these securities will be fair valued as determined by the Board. Debt instruments having a maturity greater than sixty days for which market quotations are readily available are valued at the average of the latest bid and asked
prices. If there were no asked prices quoted on such day, the security is valued using the closing bid price. U.S. government obligations with maturities greater than sixty days are normally valued using a model that incorporates market observable
data such as reported sales of similar securities, broker quotes, yields, bids, offers, and reference data. Certain securities are valued principally using dealer quotations.
Securities and assets for which market quotations are not readily available are fair valued as determined by the Board. Fair valuation methodologies and procedures may include, but are not limited
to: analysis and review of available financial and non-financial information about the company; comparisons with the valuation and changes in valuation of similar securities, including a comparison of foreign securities with the equivalent U.S.
dollar value ADR securities at the close of the U.S. exchange; and evaluation of any other information that could be indicative of the value of the security.
The inputs and valuation techniques used to measure fair value of the Fund’s investments are summarized into three levels as described in the hierarchy below:
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—
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Level 1 — quoted prices in active markets for identical securities;
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—
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Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates,
prepayment speeds, credit risk, etc.); and
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—
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Level 3 — significant unobservable inputs (including the Fund’s determinations as to the fair value of
investments).
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8
The Gabelli Equity Income Fund
Notes to Schedule of Investments (Unaudited) (Continued)
A financial instrument’s level within the fair value hierarchy is based on
the lowest level of any input both individually and in the aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in
those securities. The summary of the Fund’s investments in securities by inputs used to value the Fund’s investments as of December 31, 2012 is as follows:
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Valuation Inputs
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Level
1
Quoted Prices
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Level 2 Other Significant
Observable Inputs
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Level 3 Significant
Unobservable Inputs
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Total Market Value
at 12/31/12
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INVESTMENTS IN SECURITIES:
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ASSETS (Market Value):
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Common Stocks:
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Broadcasting
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$ 17,025,400
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—
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$ 1
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$ 17,025,401
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Energy and Utilities: Electric
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20,557,455
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—
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0
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20,557,455
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Other Industries (a)
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2,116,481,041
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—
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—
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2,116,481,041
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Total Common Stocks
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2,154,063,896
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—
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1
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2,154,063,897
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Preferred Stocks (a)
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2,333,891
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—
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—
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2,333,891
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Rights (a)
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630,850
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—
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—
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630,850
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Warrants (a)
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1,814,402
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—
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—
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1,814,402
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Corporate Bonds (a)
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—
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$8,944,375
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—
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8,944,375
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TOTAL INVESTMENTS IN SECURITIES – ASSETS
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$2,158,843,039
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$8,944,375
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$ 1
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$2,167,787,415
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(a)
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Please refer to the Schedule of Investments for the industry classifications of these portfolio holdings.
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The Fund did not have transfers between Level 1 and Level 2 during the period ended December 31, 2012. The Fund’s policy
is to recognize transfers among Levels as of the beginning of the reporting period.
Additional Information to Evaluate Qualitative
Information.
General
. The Fund uses recognized industry pricing services –
approved by the Board and unaffiliated with the Adviser – to value most of its securities, and uses broker quotes provided by market makers of securities not valued by these and other recognized pricing sources. Several different pricing feeds
are received to value domestic equity securities, international equity securities, preferred equity securities, and fixed income securities. The data within these feeds is ultimately sourced from major stock exchanges and trading systems where these
securities trade. The prices supplied by external sources are checked by obtaining quotations or actual transaction prices from market participants. If a price obtained from the pricing source is deemed unreliable, prices will be sought from another
pricing service or from a broker/dealer that trades that security or similar securities.
Fair
Valuation
. Fair valued securities may be common and preferred equities, warrants, options, rights, and fixed income obligations. Where appropriate, Level 3 securities are those for which market quotations are not available, such as
securities not traded for several days, or for which current bids are not available, or which are restricted as to transfer. Among the factors to be considered to fair value a security are recent prices of comparable securities that are publicly
traded, reliable prices of securities not publicly traded, the use of valuation models, current analyst reports, valuing the income or cash flow of the issuer, or cost if the preceding factors do not apply. The circumstances of Level 3 securities
are frequently monitored to determine if fair valuation measures continue to apply.
9
The Gabelli Equity Income Fund
Notes to Schedule of Investments (Unaudited) (Continued)
The Adviser reports quarterly to the Board the results of the application of fair
valuation policies and procedures. These include back testing the prices realized in subsequent trades of these fair valued securities to fair values previously recognized.
Derivative Financial Instruments.
The Fund may engage in various portfolio investment strategies by investing in a number of derivative financial instruments for the purposes of
increasing the income of the Fund, hedging against changes in the value of its portfolio securities and in the value of securities it intends to purchase, or hedging against a specific transaction with respect to either the currency in which the
transaction is denominated or another currency. Investing in certain derivative financial instruments, including participation in the options, futures, or swap markets, entails certain execution, liquidity, hedging, tax, and securities, interest,
credit, or currency market risks. Losses may arise if the Adviser’s prediction of movements in the direction of the securities, foreign currency, and interest rate markets is inaccurate. Losses may also arise if the counterparty does not
perform its duties under a contract, or that, in the event of default, the Fund may be delayed in or prevented from obtaining payments or other contractual remedies owed to it under derivative contracts. The creditworthiness of the counterparties is
closely monitored in order to minimize these risks. Participation in derivative transactions involves investment risks, transaction costs, and potential losses to which the Fund would not be subject absent the use of these strategies. The
consequences of these risks, transaction costs, and losses may have a negative impact on the Fund’s ability to pay distributions.
The Fund’s derivative contracts held at December 31, 2012, if any, are not accounted for as hedging instruments under GAAP and are disclosed in the Schedule of Investments together with
the related counterparty.
Swap Agreements.
The Fund may enter into equity contract
for difference swap transactions for the purpose of increasing the income of the Fund. The use of swaps is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio security
transactions. In an equity contract for difference swap, a set of future cash flows is exchanged between two counterparties. One of these cash flow streams will typically be based on a reference interest rate combined with the performance of a
notional value of shares of a stock. The other will be based on the performance of the shares of a stock. Depending on the general state of short-term interest rates and the returns on the Fund’s portfolio securities at the time a swap
transaction reaches its scheduled termination date, there is a risk that the Fund will not be able to obtain a replacement transaction or that the terms of the replacement will not be as favorable as on the expiring transaction. At December 31,
2012, the Fund held no investments in equity contract for difference swap agreements.
Foreign Currency
Translations.
The books and records of the Fund are maintained in U.S. dollars. Foreign currencies, investments, and other assets and liabilities are translated into U.S. dollars at current exchange rates. Purchases and sales of investment
securities, income, and expenses are translated at the exchange rate prevailing on the respective dates of such transactions. Unrealized gains and losses that result from changes in foreign exchange rates and/or changes in market prices of
securities have been included in unrealized appreciation/depreciation on investments and foreign currency translations. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses
between trade date and settlement date on investment securities transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of the Fund and the amounts actually
10
The Gabelli Equity Income Fund
Notes to Schedule of Investments (Unaudited) (Continued)
received. The portion of foreign currency gains and losses related to fluctuation in exchange rates between the initial purchase trade date and subsequent sale trade date is included in realized
gain/(loss) on investments.
Foreign Securities
. The Fund may directly purchase securities of foreign
issuers. Investing in securities of foreign issuers involves special risks not typically associated with investing in securities of U.S. issuers. The risks include possible revaluation of currencies, the inability to repatriate funds, less complete
financial information about companies, and possible future adverse political and economic developments. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than securities of comparable
U.S. issuers.
Foreign Taxes.
The Fund may be subject to foreign taxes on income, gains on investments, or
currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.
Restricted Securities.
The Fund may invest up to 15% of its net assets in securities for which the markets are
restricted. Restricted securities include securities whose disposition is subject to substantial legal or contractual restrictions. The sale of restricted securities often requires more time and results in higher brokerage charges or dealer
discounts and other selling expenses than does the sale of securities eligible for trading on national securities exchanges or in the over-the-counter markets. Restricted securities may sell at a price lower than similar securities that are not
subject to restrictions on resale. Securities freely saleable among qualified institutional investors under special rules adopted by the SEC may be treated as liquid if they satisfy liquidity standards established by the Board. The continued
liquidity of such securities is not as well assured as that of publicly traded securities, and accordingly the Board will monitor their liquidity. For the restricted securities the Fund held as of December 31, 2012, refer to the Schedule of
Investments.
Tax Information.
The Fund intends to continue to qualify as a regulated investment company under
Subchapter M of the Internal Revenue Code of 1986, as amended.
At September 30, 2012, the Fund had net capital
loss carryforwards for federal income tax purposes which are available to reduce future required distributions of net capital gains to shareholders. Under the Regulated Investment Company Modernization Act of 2010, the Fund will be permitted to
carry forward for an unlimited period capital losses incurred in years beginning after December 22, 2010. In addition, these losses must be utilized prior to the losses incurred in pre-enactment taxable years. As a result of the rule,
pre-enactment capital loss carryforwards may have an increased likelihood of expiring unused. Additionally, post enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather
than being considered all short-term as under previous law.
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Capital Loss Carryforward Available through 2018
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$
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63,699,245
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Capital Loss Carryforward Available through 2019
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8,243,283
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Total Capital Loss Carryforwards
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$
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71,942,528
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11
The Gabelli Equity Income Fund
Notes to Schedule of Investments (Unaudited) (Continued)
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Morningstar Rating™ is based on risk-adjusted returns. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with a fund’s three, five,
and ten year (if applicable) Morningstar Rating metrics. For funds with at least a three year history, a Morningstar Rating is based on a risk-adjusted return measure (including the effects of sales charges, loads, and redemption fees) placing more
emphasis on downward variations and rewarding consistent performance. That accounts for variations in a fund’s monthly performance. The top 10% of funds in each category receive 5 stars, the next 22.5% 4 stars, the next 35% 3 stars, the next
22.5% 2 stars, and the bottom 10% 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Morningstar Rating is for the AAA Share
class only; other classes may have different performance characteristics. Ratings reflect relative performance. Results for certain periods were negative. ©2013 Morningstar, Inc. All Rights Reserved. The information contained herein:
(1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any
damages or losses arising from any use of this information.
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We have separated the portfolio manager’s commentary from the financial statements and investment portfolio due to corporate governance regulations stipulated by the Sarbanes-Oxley Act of 2002.
We have done this to ensure that the content of the portfolio manager’s commentary is unrestricted. Both the commentary and the financial statements, including the portfolio of investments, will be available on our website at
www.gabelli.com.
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12
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Gabelli/GAMCO Funds and Your Personal Privacy
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Who are we?
The Gabelli/GAMCO Funds are investment companies registered with the Securities and Exchange Commission under the Investment Company Act of 1940. We are managed by Gabelli Funds, LLC, which is
affiliated with GAMCO Investors, Inc. GAMCO Investors, Inc. is a publicly held company that has subsidiaries that provide investment advisory or brokerage services for a variety of clients.
What kind of non-public information do we
collect about you if you become a fund shareholder?
If you apply to open an account directly with us, you will be giving us some non-public information about yourself. The non-public information we collect about you is:
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—
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Information you give us on your
application form
. This could include your name, address, telephone number, social security number, bank account number, and other information.
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—
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Information about your transactions with
us, any transactions with our affiliates, and transactions with the entities we hire to provide services to you
. This would include information about the shares that you buy or redeem. If we hire someone else to provide services — like a
transfer agent — we will also have information about the transactions that you conduct through them.
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What information do we
disclose and to whom do we disclose it?
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We do not disclose any non-public
personal information about our customers or former customers to anyone other than our affiliates, our service providers who need to know such information, and as otherwise permitted by law. If you want to find out what the law permits, you can read
the privacy rules adopted by the Securities and Exchange Commission. They are in volume 17 of the Code of Federal Regulations, Part 248. The Commission often posts information about its regulations on its website, www.sec.gov.
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What do we do to protect
your personal information?
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We restrict access to non-public personal information about you to the people who need to know that information in order to provide services to you or the fund and to ensure that we are complying
with the laws governing the securities business. We maintain physical, electronic, and procedural safeguards to keep your personal information confidential.
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GABELLI/GAMCO FAMILY OF FUNDS
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Seeks to invest primarily in a diversified portfolio of common stocks selling at significant
discounts to their private market value. The Fund’s primary objective is growth of capital.
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(Multiclass)
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Team Managed
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Gabelli Dividend Growth Fund
Seeks to invest at least 80% of its net assets in dividend paying stocks.
(Multiclass)
Portfolio Manager: Barbara G. Marcin, CFA
TETON Westwood Equity Fund
Seeks to invest primarily in the
common stock of well seasoned companies that have recently reported positive earnings surprises and are trading below Westwood’s proprietary growth rate estimates. The Fund’s primary objective is capital appreciation.
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(Multiclass)
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Team Managed
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FOCUSED VALUE
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Gabelli Focus Five Fund
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Seeks to invest up to 50% of its net assets in the equity securities of five companies with the
remaining net assets invested in ten to twenty other companies or in short-term high grade investments or cash and cash equivalents.
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(Multiclass)
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Team Managed
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Gabelli Value Fund
Seeks to invest in securities of companies believed to be undervalued. The Fund’s primary objective is long-term capital appreciation.
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(Multiclass)
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Team Managed
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SMALL CAP
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Gabelli Small Cap Growth Fund
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Seeks to invest primarily in common stock of smaller companies (market capitalizations at the time
of investment of $2 billion or less) believed to have rapid revenue and earnings growth potential. The Fund’s primary objective is capital appreciation.
(Multiclass)
Portfolio Manager: Mario J. Gabelli, CFA
TETON Westwood
SmallCap Equity Fund
Seeks to invest primarily in smaller capitalization equity securities – market caps of
$2.5 billion or less. The Fund’s primary objective is long-term capital appreciation.
(Multiclass)
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Portfolio Manager: Nicholas F. Galluccio
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Seeks to invest primarily in large cap stocks believed to have favorable, yet undervalued, prospects
for earnings growth. The Fund’s primary objective is capital appreciation.
(Multiclass)
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Portfolio Manager: Howard F. Ward, CFA
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GAMCO International Growth Fund
Seeks to invest in the equity securities of foreign issuers with long-term capital appreciation potential. The Fund offers investors
global diversification.
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(Multiclass)
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Portfolio Manager: Caesar Bryan
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AGGRESSIVE GROWTH
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GAMCO Global Growth Fund
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Seeks capital appreciation through a disciplined investment program focusing on the globalization
and interactivity of the world’s marketplace. The Fund invests in companies at the forefront of accelerated growth. The Fund’s primary objective is capital appreciation.
(Multiclass)
Team Managed
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MICRO-CAP
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TETON Westwood Mighty Mites
SM
Fund
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Seeks to invest in micro-cap companies that have market capitalizations of $500 million or less. The
Fund’s primary objective is long-term capital appreciation.
(Multiclass)
Team Managed
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EQUITY INCOME
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Gabelli Equity Income Fund
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Seeks to invest primarily in equity securities with above average market yields. The Fund pays
monthly distributions and seeks a high level of total return with an emphasis on income.
(Multiclass)
Portfolio
Manager: Mario J. Gabelli, CFA
TETON Westwood Balanced Fund
Seeks to invest in a balanced and diversified portfolio of stocks and bonds. The Fund’s primary objective is both capital
appreciation and current income.
(Multiclass)
Team Managed
TETON Westwood Income Fund
Seeks to provide a high level of current income as well as long-term capital appreciation by investing in income producing equity and fixed income securities.
(Multiclass)
Portfolio Manager: Barbara G. Marcin, CFA
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SPECIALTY EQUITY
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GAMCO Vertumnus Fund
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Seeks to invest principally in common stock and convertible securities of domestic and foreign
companies. The Fund’s primary objective is total return through a combination of current income and capital appreciation.
(Multiclass)
Portfolio Manager: Mario J. Gabelli, CFA
GAMCO Global
Opportunity Fund
Seeks to invest in common stock of companies which have rapid growth in revenues and earnings and
potential for above average capital appreciation or are undervalued. The Fund’s primary objective is capital appreciation.
(Multiclass)
Team Managed
Gabelli SRI Green Fund
Seeks to invest in common and preferred stocks meeting guidelines for social responsibility (avoiding defense contractors and
manufacturers of alcohol, abortifacients, gaming, and tobacco products) and sustainability (companies engaged in climate change, energy security and independence, natural resource shortages, organic living, and urbanization). The Fund’s primary
objective is capital appreciation.
(Multiclass)
Team Managed
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SECTOR
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GAMCO Global Telecommunications Fund
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Seeks to invest in telecommunications companies throughout the world – targeting undervalued
companies with strong earnings and cash flow dynamics. The Fund’s primary objective is capital appreciation.
(Multiclass)
Team Managed
Gabelli Gold Fund
Seeks to invest in a global portfolio of equity securities of gold mining and related companies. The Fund’s objective is
long-term capital appreciation. Investment in gold stocks is considered speculative and is affected by a variety of worldwide economic, financial, and political factors.
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(Multiclass)
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Portfolio Manager: Caesar Bryan
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Gabelli Utilities Fund
Seeks to provide a high level of total return through a combination of capital appreciation and current income.
(Multiclass)
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Portfolio Manager: Mario J. Gabelli, CFA
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MERGER AND ARBITRAGE
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Gabelli ABC Fund
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Seeks to invest in securities with attractive opportunities for appreciation or investment income.
The Fund’s primary objective is total return in various market conditions without excessive risk of capital loss.
(No-load)
(Multiclass)
Portfolio Manager: Mario J. Gabelli, CFA
Gabelli Enterprise
Mergers and Acquisitions Fund
Seeks to invest in securities believed to be likely acquisition targets within
12–18 months or in arbitrage transactions of publicly announced mergers or other corporate reorganizations. The Fund’s primary objective is capital appreciation.
(Multiclass)
Portfolio Manager: Mario J. Gabelli, CFA
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CONTRARIAN
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GAMCO Mathers Fund
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Seeks long-term capital appreciation in various market conditions without excessive risk of capital
loss.
(No-load)
Portfolio Manager: Henry Van der Eb, CFA
Comstock Capital Value Fund
Seeks capital appreciation and current income. The Fund may use either long or short positions to achieve its objective.
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(Multiclass)
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Portfolio Managers: Charles L. Minter
Martin Weiner, CFA
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FIXED INCOME
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TETON Westwood Intermediate Bond Fund
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Seeks to invest in a diversified portfolio of bonds with various maturities. The Fund’s primary
objective is total return.
(Multiclass)
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Portfolio Manager: Mark R. Freeman, CFA
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CASH MANAGEMENT-MONEY MARKET
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Gabelli U.S. Treasury Money Market Fund
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Seeks to invest exclusively in short-term U.S. Treasury securities. The Fund’s primary
objective is to provide high current income consistent with the preservation of principal and liquidity.
(No-load)
Co-Portfolio Managers: Judith A. Raneri
Ronald S. Eaker
An investment in the above Money Market
Fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.
The Funds may invest in foreign securities which involve risks not ordinarily associated with investments in
domestic issues, including currency fluctuation, economic, and political risks.
To receive a
prospectus, call 800-GABELLI (800-422-3554). Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. The prospectus contains more information about these and other matters and should be
read carefully before investing.
Distributed by G. distributors, LLC, One Corporate Center, Rye, NY 10580.
This page was intentionally left blank.
Gabelli Equity Series Funds, Inc.
THE GABELLI EQUITY INCOME FUND
One Corporate Center
Rye, New York 10580-1422
t
800-GABELLI (800-422-3554)
f
914-921-5118
e
info@gabelli.com
GABELLI.COM
Net Asset Value per share available daily
by calling 800-GABELLI after 7:00 P.M.
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BOARD OF DIRECTORS
Mario J. Gabelli, CFA
Chairman and
Chief Executive Officer,
GAMCO Investors,
Inc.
Anthony J. Colavita
President,
Anthony J. Colavita, P.C.
Vincent D. Enright
Former Senior Vice
President and Chief
Financial Officer,
KeySpan Corp.
John D. Gabelli
Senior Vice President,
Gabelli & Company, Inc.
Robert J. Morrissey
Partner,
Morrissey, Hawkins & Lynch
Kuni Nakamura
President,
Advanced Polymer, Inc.
Anthony R. Pustorino
Certified Public Accountant,
Professor Emeritus,
Pace University
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Anthonie C. van Ekris
Chairman,
BALMAC International, Inc.
Salvatore J. Zizza
Chairman,
Zizza & Associates Corp.
OFFICERS
Bruce N. Alpert
President, Secretary, and
Acting Chief Compliance
Officer
Agnes Mullady
Treasurer
DISTRIBUTOR
G.distributors, LLC
CUSTODIAN, TRANSFER
AGENT, AND DIVIDEND
DISBURSING AGENT
State Street Bank and Trust
Company
LEGAL COUNSEL
Skadden, Arps, Slate, Meagher
&
Flom LLP
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This report is submitted for the general information of the shareholders of The Gabelli Equity Income Fund. It is not authorized for
distribution to prospective investors unless preceded or accompanied by an effective prospectus.
Overall Morningstar Rating
TM
Morningstar
®
rated The Gabelli Equity Income Fund Class AAA Shares 4 stars overall, 4 stars for the three and five year periods, and 5 stars for the ten year period ended
December 31, 2012 among 1,506, 1,506, 1,324, and 836, Large Blend funds, respectively. Morningstar Rating
TM
is based on risk-adjusted returns.
GAB444Q412QR
The Gabelli Focus Five Fund
First Quarter Report — December 31, 2012
To Our Shareholders,
For the quarter ended December 31, 2012, the net
asset value (“NAV”) per Class AAA Share of The Gabelli Focus Five Fund increased 8.4% compared with a decrease of 0.4% for the Standard & Poor’s (“S&P”) 500 Index.
Enclosed is the schedule of investments as of December 31, 2012.
Comparative Results
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Average Annual Returns through December 31, 2012 (a)(b) (Unaudited)
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Since
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Since
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January 1,
|
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Inception
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Quarter
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1 Year
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5 Year
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10 Year
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2012(c)
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(12/31/02)
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Class AAA (GWSVX)
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8.37
|
%
|
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|
|
26.20
|
%
|
|
|
|
4.95
|
%
|
|
|
|
8.49
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%
|
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26.20
|
%
|
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8.49%
|
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S&P 500 Index
|
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(0.38
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)
|
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16.00
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1.66
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7.10
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16.00
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(d)
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7.10
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Class A (GWSAX)
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8.39
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26.30
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4.96
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8.53
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26.30
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|
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8.52
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With sales charge (e)
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2.15
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19.04
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3.69
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7.87
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19.04
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7.87
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Class C (GWSCX)
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8.22
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25.40
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4.19
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7.75
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25.40
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7.74
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With contingent deferred sales charge (f)
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7.22
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24.40
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4.19
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7.75
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24.40
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7.74
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Class I (GWSIX)
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8.44
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|
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26.66
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5.24
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|
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8.64
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26.66
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|
|
8.64
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In the current prospectus dated January 28, 2013, the gross expense ratios for Class AAA, A, C, and I Shares are 2.41%, 2.41%, 3.16%, and 2.16%, respectively, and the net expense ratios after contractual
reimbursements by Gabelli Funds, LLC (the “Adviser”) in place through January 31, 2014 are 1.70%, 1.70%, 2.45%, and 1.45%, respectively. Class AAA and Class I Shares do not have a sales charge. The maximum sales charge for
Class A and C Shares is 5.75% and 1.00%, respectively.
(a)
Returns
represent past performance and do not guarantee future results.
Total returns and average annual returns reflect changes in share price, reinvestment of distributions and are net of expenses. Investment returns and the principal value of
an investment will fluctuate. When shares are redeemed, they may be worth more or less than their original cost. The Fund imposes a 2% redemption fee on shares sold or exchanged within seven days after the date of purchase. Performance returns for
periods of less than one year are not annualized. Current performance may be lower or higher than the performance data presented. Visit www.gabelli.com for performance information as of the most recent month end.
Investors should carefully
consider the investment objectives, risks, charges, and expenses of the
Fund before investing. The prospectus contains information about these and other matters and should be read carefully before investing.
The Class AAA
Share NAVs are used to calculate performance for the periods prior to the issuance of Class I Shares on January 11, 2008. The actual performance of Class I Shares would have been higher due to lower expenses associated to this class of shares.
Returns would have been lower had the Adviser not reimbursed certain expenses of the Fund. The S&P 500 Index is a market capitalization weighted index of 500 large capitalization stocks commonly used to represent the U.S. equity market.
Dividends are considered reinvested. You cannot invest directly in an index.
(b)
The Fund’s fiscal year ends September 30.
(c)
On January 1, 2012, the Fund changed its investment strategy to the current
investment strategy.
(d)
S&P 500 Index performance is as of December 31,
2011.
(e)
Performance results include the effect of the maximum 5.75% sales
charge at the beginning of the period.
(f)
Assuming payment of the
maximum 1% contingent deferred sales charge imposed on redemptions made within one year of purchase.
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The Gabelli Focus Five Fund
Schedule of Investments — December 31, 2012 (Unaudited)
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Shares
|
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Market
Value
|
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|
COMMON STOCKS — 82.1%
|
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Automotive: Parts and Accessories — 5.3%
|
|
|
|
160,000
|
|
|
Dana Holding Corp.
|
|
$
|
2,497,600
|
|
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45,000
|
|
|
Tenneco Inc.†
|
|
|
1,579,950
|
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|
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|
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|
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4,077,550
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Aviation: Parts and Services — 0.9%
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|
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|
|
|
22,000
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|
|
Curtiss-Wright Corp.
|
|
|
722,260
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|
|
|
|
|
|
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|
|
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Business Services — 2.2%
|
|
|
|
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|
|
60,000
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|
|
The Brink’s Co.
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|
|
1,711,800
|
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Cable and Satellite — 3.3%
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|
75,000
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|
|
EchoStar Corp., Cl. A†
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|
|
2,566,500
|
|
|
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|
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|
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|
|
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|
|
|
|
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|
|
Computer Software and Services — 10.8%
|
|
|
|
530,000
|
|
|
Internap Network Services Corp.†
|
|
|
3,678,200
|
|
|
|
415,000
|
|
|
RealD Inc.†
|
|
|
4,652,150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,330,350
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Services — 1.8%
|
|
|
|
|
|
|
30,000
|
|
|
The ADT Corp.
|
|
|
1,394,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diversified Industrial — 2.1%
|
|
|
|
|
|
|
55,000
|
|
|
Tyco International Ltd.
|
|
|
1,608,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy and Energy Services — 4.6%
|
|
|
|
|
|
|
315,000
|
|
|
Weatherford International Ltd.†
|
|
|
3,524,850
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy and Utilities — 1.6%
|
|
|
|
|
|
|
22,000
|
|
|
CONSOL Energy Inc.
|
|
|
706,200
|
|
|
|
10,000
|
|
|
National Fuel Gas Co.
|
|
|
506,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,213,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equipment and Supplies — 2.9%
|
|
|
|
|
|
|
3,200
|
|
|
Gerber Scientific Inc., Escrow†(a)
|
|
|
32
|
|
|
|
50,000
|
|
|
Sealed Air Corp.
|
|
|
875,500
|
|
|
|
27,500
|
|
|
Timken Co.
|
|
|
1,315,325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,190,857
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Services — 4.3%
|
|
|
|
|
|
|
85,000
|
|
|
CIT Group Inc.†
|
|
|
3,284,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Food and Beverage — 15.3%
|
|
|
|
|
|
|
32,500
|
|
|
Hillshire Brands Co.
|
|
|
914,550
|
|
|
|
300,300
|
|
|
Inventure Foods Inc.†
|
|
|
1,948,947
|
|
|
|
70,000
|
|
|
Ralcorp Holdings Inc.†
|
|
|
6,275,500
|
|
|
|
110,000
|
|
|
Snyders-Lance Inc.
|
|
|
2,652,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,791,097
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Health Care — 5.0%
|
|
|
|
|
|
|
756,220
|
|
|
Lexicon Pharmaceuticals Inc.†
|
|
|
1,678,808
|
|
|
|
17,500
|
|
|
Mead Johnson Nutrition Co.
|
|
|
1,153,075
|
|
|
|
103,500
|
|
|
Rochester Medical Corp.†
|
|
|
1,043,280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,875,163
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
|
|
Market
Value
|
|
|
|
|
|
|
Hotels and Gaming — 1.2%
|
|
|
|
|
|
|
116,000
|
|
|
Red Lion Hotels Corp.†
|
|
$
|
915,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Machinery — 4.3%
|
|
|
|
|
|
|
65,000
|
|
|
Kennametal Inc.
|
|
|
2,600,000
|
|
|
|
25,000
|
|
|
Xylem Inc.
|
|
|
677,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,277,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metals and Mining — 3.2%
|
|
|
|
|
|
|
167,000
|
|
|
Golden Queen Mining Co. Ltd.†
|
|
|
374,394
|
|
|
|
225,000
|
|
|
Molycorp Inc.†
|
|
|
2,124,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,498,394
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail — 13.3%
|
|
|
|
|
|
|
45,600
|
|
|
Coinstar Inc.†
|
|
|
2,371,656
|
|
|
|
172,500
|
|
|
GNC Holdings, Inc., Cl. A
|
|
|
5,740,800
|
|
|
|
45,000
|
|
|
Rush Enterprises Inc., Cl. B†
|
|
|
778,950
|
|
|
|
36,000
|
|
|
Walgreen Co.
|
|
|
1,332,360
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,223,766
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL COMMON STOCKS
|
|
|
63,206,277
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
Amount
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GOVERNMENT OBLIGATIONS — 17.9%
|
|
|
|
$13,778,000
|
|
|
U.S. Treasury Bills,
0.085% to 0.142%††,
02/07/13 to 06/20/13
|
|
|
13,773,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL INVESTMENTS — 100.0%
(Cost $71,706,538)
|
|
$
|
76,979,580
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate tax cost
|
|
$
|
71,861,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross unrealized appreciation
|
|
|
5,596,237
|
|
|
|
|
|
|
Gross unrealized depreciation
|
|
|
(478,093
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized appreciation/depreciation
|
|
$
|
5,118,144
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Security fair valued under procedures established by the Board of Directors. The procedures may include reviewing available financial information about the
company and reviewing the valuation of comparable securities and other factors on a regular basis. At December 31, 2012, the market value of the fair valued security amounted to $32 or 0.00% of total investments.
|
|
†
|
Non-income producing security.
|
|
††
|
Represents annualized yield at date of purchase.
|
See accompanying notes to
schedule of investments.
2
The Gabelli Focus Five Fund
Notes to Schedule of Investments (Unaudited)
The Fund’s schedule of investments is prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), which may
require the use of management estimates and assumptions. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Fund in the preparation of its schedule of investments.
Security Valuation.
Portfolio securities listed or traded on a nationally recognized securities exchange or traded in the U.S.
over-the-counter market for which market quotations are readily available are valued at the last quoted sale price or a market’s official closing price as of the close of business on the day the securities are being valued. If there were no
sales that day, the security is valued at the average of the closing bid and asked prices or, if there were no asked prices quoted on that day, then the security is valued at the closing bid price on that day. If no bid or asked prices are quoted on
such day, the security is valued at the most recently available price or, if the Board of Directors (the “Board”) so determines, by such other method as the Board shall determine in good faith to reflect its fair market value. Portfolio
securities traded on more than one national securities exchange or market are valued according to the broadest and most representative market, as determined the Gabelli Funds, LLC (the “Adviser”).
Portfolio securities primarily traded on a foreign market are generally valued at the preceding closing values of such securities on the relevant
market, but may be fair valued pursuant to procedures established by the Board if market conditions change significantly after the close of the foreign market, but prior to the close of business on the day the securities are being valued. Debt
instruments with remaining maturities of sixty days or less that are not credit impaired are valued at amortized cost, unless the Board determines such amount does not reflect the securities’ fair value, in which case these securities will be
fair valued as determined by the Board. Debt instruments having a maturity greater than sixty days for which market quotations are readily available are valued at the average of the latest bid and asked prices. If there were no asked prices quoted
on such day, the security is valued using the closing bid price. U.S. government obligations with maturities greater than sixty days are normally valued using a model that incorporates market observable data such as reported sales of similar
securities, broker quotes, yields, bids, offers, and reference data. Certain securities are valued principally using dealer quotations.
Securities and assets for which market quotations are not readily available are fair valued as determined by the Board. Fair valuation
methodologies and procedures may include, but are not limited to: analysis and review of available financial and non-financial information about the company; comparisons with the valuation and changes in valuation of similar securities, including a
comparison of foreign securities with the equivalent U.S. dollar value American Depositary Receipt securities at the close of the U.S. exchange; and evaluation of any other information that could be indicative of the value of the security.
The inputs and valuation techniques used to measure fair value of the Fund’s investments are summarized into three levels as
described in the hierarchy below:
|
|
—
|
|
Level 1 — quoted prices in active markets for identical securities;
|
|
|
—
|
|
Level 2 — other significant observable inputs (including quoted prices for similar securities, interest
rates, prepayment speeds, credit risk, etc.); and
|
|
|
—
|
|
Level 3 — significant unobservable inputs (including the Fund’s determinations as to the fair value of
investments).
|
3
The Gabelli Focus Five Fund
Notes to Schedule of Investments (Unaudited) (Continued)
A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually and in the aggregate
that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of the Fund’s investments in
securities by inputs used to value the Fund’s investments as of December 31, 2012 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Inputs
|
|
|
|
|
|
|
|
|
Level 1
Quoted Prices
|
|
|
Level 2 Other Significant
Observable Inputs
|
|
Level 3 Significant
Unobservable Inputs
|
|
Total Market Value
at 12/31/12
|
|
INVESTMENTS IN SECURITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS (Market Value):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equipment and Supplies
|
|
|
$ 2,190,825
|
|
|
|
—
|
|
|
|
|
$32
|
|
|
$ 2,190,857
|
|
|
|
|
Other Industries (a)
|
|
|
61,015,420
|
|
|
|
—
|
|
|
|
|
—
|
|
|
61,015,420
|
|
|
|
|
Total Common Stocks
|
|
|
63,206,245
|
|
|
|
—
|
|
|
|
|
32
|
|
|
63,206,277
|
|
|
|
|
U.S. Government Obligations
|
|
|
—
|
|
|
|
$13,773,303
|
|
|
|
|
—
|
|
|
13,773,303
|
|
|
|
|
TOTAL INVESTMENTS IN SECURITIES – ASSETS
|
|
|
$63,206,245
|
|
|
|
$13,773,303
|
|
|
|
|
$32
|
|
|
$76,979,580
|
|
|
|
|
(a)
|
Please refer to the Schedule of Investments for the industry classifications of these portfolio holdings.
|
The Fund did not have transfers between Level 1 and Level 2 during the period ended December 31, 2012. The Fund’s policy is to recognize
transfers among Levels as of the beginning of the reporting period.
Additional Information to Evaluate Qualitative Information.
General
. The Fund uses recognized industry pricing services – approved by the Board and unaffiliated with the Adviser
– to value most of its securities, and uses broker quotes provided by market makers of securities not valued by these and other recognized pricing sources. Several different pricing feeds are received to value domestic equity securities,
international equity securities, preferred equity securities, and fixed income securities. The data within these feeds is ultimately sourced from major stock exchanges and trading systems where these securities trade. The prices supplied by external
sources are checked by obtaining quotations or actual transaction prices from market participants. If a price obtained from the pricing source is deemed unreliable, prices will be sought from another pricing service or from a broker/dealer that
trades that security or similar securities.
Fair Valuation
. Fair valued securities may be common and preferred
equities, warrants, options, rights, and fixed income obligations. Where appropriate, Level 3 securities are those for which market quotations are not available, such as securities not traded for several days, or for which current bids are not
available, or which are restricted as to transfer. Among the factors to be considered to fair value a security are recent prices of comparable securities that are publicly traded, reliable prices of securities not publicly traded, the use of
valuation models, current analyst reports, valuing the income or cash flow of the issuer, or cost if the preceding factors do not apply. The circumstances of Level 3 securities are frequently monitored to determine if fair valuation measures
continue to apply.
The Adviser reports quarterly to the Board the results of the application of fair valuation policies and procedures.
These include back testing the prices realized in subsequent trades of these fair valued securities to fair values previously recognized.
4
The Gabelli Focus Five Fund
Notes to Schedule of Investments (Unaudited) (Continued)
Foreign Securities
. The Fund may directly purchase securities of foreign issuers. Investing in securities of foreign issuers involves special
risks not typically associated with investing in securities of U.S. issuers. The risks include possible revaluation of currencies, the inability to repatriate funds, less complete financial information about companies, and possible future adverse
political and economic developments. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than securities of comparable U.S. issuers.
Foreign Taxes.
The Fund may be subject to foreign taxes on income, gains on investments, or currency repatriation, a portion of which may be
recoverable. The Fund will accrue such taxes and recoveries as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.
Tax Information.
The Fund intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code
of 1986, as amended.
Under the Regulated Investment Company Modernization Act of 2010, the Fund will be permitted to carry forward for
an unlimited period capital losses incurred in years beginning after December 22, 2010. As a result of the rule, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses
rather than being considered all short-term as under previous law.
|
|
|
We have separated the portfolio managers’ commentary from the financial statements and
investment portfolio due to corporate governance regulations stipulated by the Sarbanes-Oxley Act of 2002. We have done this to ensure that the content of the portfolio managers’ commentary is unrestricted. Both the commentary and the financial
statements, including the portfolio of investments, are available on our website at www.gabelli.com.
|
5
Gabelli/GAMCO Funds and Your Personal Privacy
Who are we?
The Gabelli/GAMCO Funds are investment companies registered with the Securities and Exchange
Commission under the Investment Company Act of 1940. We are managed by Gabelli Funds, LLC, which is affiliated with GAMCO Investors, Inc. GAMCO Investors, Inc. is a publicly held company that has subsidiaries that provide investment advisory or
brokerage services for a variety of clients.
What kind of non-public information do we collect about you if you
become a fund shareholder?
If you apply to open an account directly with us, you will be giving us
some non-public information about yourself. The non-public information we collect about you is:
|
|
—
|
|
Information you give us on your application form.
This could include your name, address, telephone number, social security number, bank account number,
and other information.
|
|
|
|
—
|
|
Information about your transactions with us, any transactions with our affiliates, and transactions with the entities we hire to provide services to you.
This would include information about the shares that you buy or redeem. If we hire someone else to provide services — like a transfer agent — we will also have information about the transactions that you conduct through them.
|
|
What information do we disclose and to whom do we disclose it?
We do not disclose any non-public personal information about our customers or former customers to
anyone other than our affiliates, our service providers who need to know such information, and as otherwise permitted by law. If you want to find out what the law permits, you can read the privacy rules adopted by the Securities and Exchange
Commission. They are in volume 17 of the Code of Federal Regulations, Part 248. The Commission often posts information about its regulations on its website, www.sec.gov.
What do we do to protect your personal information?
We restrict access to non-public personal information about you to the people who need to know that information in
order to provide services to you or the fund and to ensure that we are complying with the laws governing the securities business. We maintain physical, electronic, and procedural safeguards to keep your personal information confidential.
|
|
|
GABELLI/GAMCO FAMILY OF
FUNDS
|
VALUE
Gabelli Asset Fund
Seeks to invest primarily
in a diversified portfolio of common stocks selling at significant discounts to their private market value. The Fund’s primary objective is growth of capital.
(Multiclass)
Team Managed
Gabelli Dividend Growth Fund
Seeks to invest at least 80% of its net assets in dividend paying stocks.
(Multiclass)
Portfolio Manager: Barbara G. Marcin, CF
A
TETON Westwood Equity Fund
Seeks to invest primarily in the common stock of well seasoned
companies that have recently reported positive earnings surprises and are trading below Westwood’s proprietary growth rate estimates. The Fund’s primary objective is capital appreciation.
(Multiclass)
Team Managed
FOCUSED VALUE
Gabelli Focus Five Fund
Seeks to invest up to 50% of its net assets in the equity securities of five companies with the remaining net assets invested in ten to twenty other companies or in short-term high grade investments or cash and
cash equivalents.
(Multiclass)
Team Managed
Gabelli Value Fund
Seeks to invest in securities of companies believed to be undervalued. The
Fund’s primary objective is long-term capital appreciation
.
(Multiclass)
Team Managed
SMALL CAP
Gabelli Small Cap Growth Fund
Seeks to invest primarily in common stock of smaller companies (market capitalizations at the time of investment of $2 billion or less) believed to
have rapid revenue and earnings growth potential. The Fund’s primary objective is capital appreciation.
(Multiclass)
Portfolio Manager: Mario J. Gabelli, CFA
TETON Westwood SmallCap Equity Fund
Seeks to invest primarily in smaller capitalization equity securities – market caps of $2.5 billion or less. The Fund’s primary objective
is long-term capital appreciation.
(Multiclass)
Portfolio Manager: Nicholas F. Galluccio
GROWTH
GAMCO Growth Fund
Seeks to invest primarily in large cap stocks believed to have favorable, yet undervalued, prospects for earnings growth. The
Fund’s primary objective is capital appreciation.
(Multiclass)
Portfolio Manager: Howard F. Ward, CFA
GAMCO International Growth Fund
Seeks to invest in the equity securities of foreign issuers with long-term capital appreciation potential. The Fund offers investors global diversification.
(Multiclass)
Portfolio Manager: Caesar Bryan
AGGRESSIVE GROWTH
GAMCO Global Growth Fund
Seeks capital appreciation through a disciplined investment program focusing on the globalization and interactivity of the world’s marketplace.
The Fund invests in companies at the forefront of accelerated growth. The Fund’s primary objective is capital appreciation.
(Multiclass)
Team Managed
MICRO-CAP
TETON Westwood Mighty Mites
SM
Fund
Seeks to invest in micro-cap companies that have
market capitalizations of $500 million or less. The Fund’s primary objective is long-term capital appreciation.
(Multiclass)
Team Managed
EQUITY INCOME
Gabelli Equity Income Fund
Seeks to invest primarily in equity securities with above average market yields. The Fund pays monthly distributions and seeks a high level of total
return with an emphasis on income.
(Multiclass)
Portfolio Manager: Mario J. Gabelli, CFA
TETON Westwood Balanced Fund
Seeks to invest in a balanced and diversified portfolio of stocks and bonds. The Fund’s primary objective is both capital appreciation and
current income.
(Multiclass)
Team Managed
TETON Westwood Income Fund
Seeks to provide a high level of current income as well as long-term capital appreciation by investing in income producing equity and fixed income
securities.
(Multiclass)
Portfolio
Manager: Barbara G. Marcin, CFA
SPECIALTY EQUITY
GAMCO Vertumnus Fund
Seeks
to invest principally in common stock and convertible securities of domestic and foreign companies. The Fund’s primary objective is total return through a combination of current income and capital appreciation.
(Multiclass)
Portfolio Manager: Mario J. Gabelli, CFA
GAMCO Global Opportunity Fund
Seeks to invest in common stock of companies which have rapid
growth in revenues and earnings and potential for above average capital appreciation or are undervalued. The Fund’s primary objective is capital appreciation.
(Multiclass)
Team Managed
Gabelli SRI Green Fund
Seeks
to invest in common and preferred stocks meeting guidelines for social responsibility (avoiding defense contractors and manufacturers of alcohol, abortifacients, gaming, and tobacco products) and sustainability (companies engaged in climate change,
energy security and independence, natural resource shortages, organic living, and urbanization). The Fund’s primary objective is capital appreciation.
(Multiclass)
Team Managed
SECTOR
GAMCO Global
Telecommunications Fund
Seeks to invest in telecommunications companies throughout the world – targeting undervalued companies
with strong earnings and cash flow dynamics. The Fund’s primary objective is capital appreciation.
(Multiclass)
Team
Managed
Gabelli Gold Fund
Seeks to invest in a global portfolio of equity securities of gold mining and related companies. The Fund’s objective is long-term capital appreciation. Investment in gold stocks is considered speculative and
is affected by a variety of worldwide economic, financial, and political factors.
(Multiclass)
Portfolio Manager: Caesar
Bryan
Gabelli Utilities Fund
Seeks to provide a high level of total return through a combination of capital appreciation and current income.
(Multiclass)
Portfolio Manager:
Mario J. Gabelli, CFA
MERGER AND ARBITRAGE
Gabelli ABC Fund
Seeks to invest in securities with attractive opportunities for appreciation
or investment income. The Fund’s primary objective is total return in various market conditions without excessive risk of capital loss. (No-load)
(Multiclass)
Portfolio Manager: Mario J. Gabelli, CFA
Gabelli Enterprise Mergers and Acquisitions Fund
Seeks to invest in securities believed to be
likely acquisition targets within 12–18 months or in arbitrage transactions of publicly announced mergers or other corporate reorganizations. The Fund’s primary objective is capital appreciation.
(Multiclass)
Portfolio Manager: Mario J. Gabelli, CFA
CONTRARIAN
GAMCO Mathers Fund
Seeks long-term capital appreciation in various market conditions without excessive risk of capital loss.
(No-load)
Portfolio Manager: Henry Van der Eb, CFA
Comstock Capital Value Fund
Seeks capital appreciation and current income. The Fund may use
either long or short positions to achieve its objective.
(Multiclass)
Portfolio Managers: Charles L. Minter
Martin Weiner, CFA
FIXED INCOME
TETON Westwood Intermediate Bond Fund
Seeks to invest in a diversified portfolio of bonds with various maturities. The Fund’s primary objective is total return.
(Multiclass)
Portfolio Manager: Mark R.
Freeman, CFA
CASH MANAGEMENT-MONEY MARKET
Gabelli U.S. Treasury
Money Market Fund
Seeks to invest exclusively in short-term U.S. Treasury securities. The Fund’s primary objective is to
provide high current income consistent with the preservation of principal and liquidity.
(No-load)
Co-Portfolio Managers: Judith A. Raneri
Ronald S. Eaker
An investment in the above Money Market Fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any government agency. Although the Fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in the Fund.
The Funds may invest in foreign securities
which involve risks not ordinarily associated with investments in domestic issues,including currency fluctuation, economic, and political risks.
To receive a prospectus, call 800-GABELLI
(800-422-3554). Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. The prospectus contains more information about these and other matters and should be read carefully before
investing. Distributed by G.distributors, LLC, One Corporate Center, Rye, NY 10580.
Gabelli Equity Series Funds, Inc.
THE GABELLI FOCUS FIVE FUND
One Corporate Center
Rye, New York 10580-1422
|
t
|
800-GABELLI (800-422-3554)
|
GABELLI.COM
Net Asset Value per share available daily
by calling 800-GABELLI after 7:00 P.M.
BOARD OF DIRECTORS
Mario J. Gabelli, CFA
Chairman and
Chief Executive Officer,
GAMCO Investors, Inc.
Anthony J. Colavita
President,
Anthony J.
Colavita, P.C.
Vincent D. Enright
Former Senior Vice
President and Chief
Financial Officer,
KeySpan Corp.
John D.
Gabelli
Senior Vice President,
Gabelli & Company, Inc.
Robert J. Morrissey
Partner,
Morrissey,
Hawkins & Lynch
Kuni Nakamura
President,
Advanced Polymer, Inc.
Anthony R. Pustorino
Certified Public Accountant,
Professor Emeritus,
Pace University
Anthonie C. van Ekris
Chairman,
BALMAC International, Inc.
Salvatore J. Zizza
Chairman,
Zizza &
Associates Corp.
OFFICERS
Bruce N. Alpert
President, Secretary, and
Acting Chief Compliance
Officer
Agnes Mullady
Treasurer
DISTRIBUTOR
G.distributors, LLC
CUSTODIAN, TRANSFER
AGENT, AND DIVIDEND
DISBURSING AGENT
State Street Bank and Trust
Company
LEGAL
COUNSEL
Skadden, Arps, Slate, Meagher &
Flom LLP
|
|
|
|
|
This report is submitted for the general information of the shareholders of The Gabelli
Focus Five Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.
|
GAB840Q412QR
Item 2. Controls and Procedures.
|
|
(a)
|
The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the
registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of
the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).
|
|
|
(b)
|
There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR
270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
|
Item 3. Exhibits.
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
|
|
|
|
|
(Registrant)
|
|
Gabelli Equity Series Funds, Inc.
|
|
|
|
|
|
By (Signature and Title)*
|
|
/s/ Bruce N. Alpert
|
|
|
|
Bruce N. Alpert, Principal Executive Officer
|
Pursuant to the requirements of the
Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
|
|
|
|
|
By (Signature and Title)*
|
|
/s/ Bruce N. Alpert
|
|
|
|
Bruce N. Alpert, Principal Executive Officer
|
|
|
|
|
|
By (Signature and Title)*
|
|
/s/ Agnes Mullady
|
|
|
|
Agnes Mullady, Principal Financial Officer and Treasurer
|
*
Print the
name and title of each signing officer under his or her signature.
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