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SIGNATURE BRUCE N. ALPERT
TITLE PRESIDENT/TREAS
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000783898
<NAME> K:\WDATA\ADMIN\EDGAR\GABELLI\ASSET.FDS
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-1-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 847398996
<INVESTMENTS-AT-VALUE> 1597068823
<RECEIVABLES> 3464725
<ASSETS-OTHER> 3327
<OTHER-ITEMS-ASSETS> 3491372
<TOTAL-ASSETS> 1604028247
<PAYABLE-FOR-SECURITIES> 7455631
<SENIOR-LONG-TERM-DEBT> 0
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<TOTAL-LIABILITIES> 28052342
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 827276606
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To the Shareholders and Board of Trustees of
The Gabelli Asset Fund
In planning and performing our audit of the financial statements of The
Gabelli Asset Fund (the "Fund") for the year ended December 31, 1998, we
considered its internal control, including control activities for safeguarding
securities, in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and to comply with the
requirements of Form N-SAR, not to provide assurance on internal control.
The management of the Fund is responsible for establishing and maintaining
internal control. In fulfilling this responsibility, estimates and judgments
by management are required to assess the expected benefits and related costs
of controls. Generally, controls that are relevant to an audit pertain to
the entity's objective of preparing financial statements for external
purposes that are fairly presented in conformity with generally accepted
accounting principles. Those controls include the safeguarding of assets
against unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, errors or fraud may
occur and not be detected. Also, projection of any evaluation of internal
control to future periods is subject to the risk that it may become
inadequate because of changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of internal control would not necessarily disclose all
matters in internal control that might be material weaknesses under standards
established by the American Institute of Certified Public Accountants.
A material weakness is a condition in which the design or operation of one
or more of the internal control components does not reduce to a relatively
low level the risk that misstatements caused by error or fraud in amounts
that would be material in relation to the financial statements being audited
may occur and not be detected within a timely period by employees in the
normal course of performing their assigned functions. However, we noted no
matters involving internal control and its operation, including controls
for safeguarding securities, that we consider to be material weaknesses as
defined above as of December 31, 1998.
This report is intended solely for the information and use of management and
the Board of Trustees of the Fund and the Securities and Exchange Commission.
PricewaterhouseCoopers LLP
February 25, 1999
The Gabelli Asset Fund
4th Quarter 1998
Section 10f-3 Transactions
The following securities were purchased pursuant to Rule 10f-3 and all
requirements of the Affiliated Underwriting Procedures of the Fund. A
folder documenting such compliance for each transaction is available for
inspection by Board Members.
Trade Dates 12-09-98
Issue Infinity Brocasting Corp.
Shares 3,000
Price $20.50
Amount $61,500
Spread Amount 0.82
Spread % 4.0%
Fund's % of Issue 0.002%
% of Issue for all
GabelliFunds 0.22%
Broker Merrill Lynch & Co.
Issues within
90 days 3
Reason (1).(2)
The Purchases listed above meet the following requirements of 10f-3
...Part of an issue registered under the Securities Act of 1933.
...Purchased at not more than the offering price.
...Offered pursuant to a firm commitment underwriting.
... The issuer has been in continuos operation for at least 3 years.
All other requirements are presented in the table above.
Reason Key
(1) Does not exceed 125% of the mean offering spread of 3 comparable
Issues underwritten in the last 90 days.
(2) Does not exceed 110% of this underwriting spread of 3 comparable
Issues underwritten in the last 90 days.
Note: If 3 comparable issues are not available within 90 days, a one-year
window is used.
