<PAGE>
THE GABELLI GROWTH FUND
One Corporate Center
Rye, New York 10580-1434
FIRST QUARTER REPORT - 1995
TO OUR SHAREHOLDERS:
The stock market shook off the financial world's biggest concerns, rose
to new highs and posted a solid gain for the new year's first quarter. The
market's resilience in the face of apparent adversity is a classic example of
the pitfalls of trying to "time" the market on a short-term basis. Bull
markets are difficult to predict and the penalty for being wrong can be
significant given the market's tendency to surge, hiccup and then sprint to
higher levels in what seems like a mad dash. Our policy is to avoid the
temptation to "time" the market. This allows us to participate in the
long-term trend of rising equity prices and avoid the frustrations shared with
dogs in pursuit of their tails. As you know, the market does not advance in a
straight line and has no respect for the calendar year. Your Fund has
achieved a positive total return in 5 of its 7 full calendar years of
operation. While your Fund trailed the Standard & Poor's 500 Stock Index (S&P
500) last year (-3.4% versus +1.3%), we are pleased to report it has provided
a higher return than the S&P 500 from its inception on April 10, 1987 through
March 31,1995. By focusing on established growth companies with strong
fundamental operating trends, selling at reasonable valuations, we hope to
further enhance your Fund's long-term record and serve you, the shareholder,
with distinction.
NEW PORTFOLIO MANAGER
We are privileged to announce that Howard Frank Ward has joined our
firm as Portfolio Manager of The Gabelli Growth Fund.
Howard joins us from Scudder, Stevens and Clark, where he served as
Managing Director and lead Portfolio Manager for several Scudder mutual funds
including Scudder Quality Growth and Balanced Funds. As Director of the
Quality Growth Equity Management Group, Howard supervised the management of
approximately $3 billion in client assets. Howard is a Chartered Financial
Analyst and member of the New York Society of Security Analysts. He is a 1978
graduate of Northwestern University, where he earned a Bachelor of Arts degree
in Economics.
INVESTMENT RESULTS (a)
For the three months ended March 31, 1995, The Gabelli Growth Fund's
net asset value increased 6.0% to $20.86 per share from $19.68 per share on
December 31, 1994. This compares to the 9.7% return in the Standard & Poor's
500 Index, a widely accepted unmanaged index of stock market performance, over
the same period. For the twelve months ended March 31, 1995, the Fund's total
return was up 8.8% versus the 15.6% return in the Standard & Poor's 500 Index.
The Growth Fund's total return from inception on April 10, 1987
through March 31, 1995 is 190.6%, which reflects an average annual total
return of 14.3% assuming reinvestment of all dividends and distributions. The
five year total return of the Fund ending on March 31, 1995 is 59.8%, which
equates to a 9.8% average annual total return. On March 31, 1995 our
shareholder base is at 44,512 shareholders and total net assets of the Fund
are $476.1 million.
<PAGE>
<TABLE>
PERFORMANCE HISTORY (a)
- ---------------------------------------------------------------------------------------------------------
- -------
<CAPTION>
QUARTER
-------------------------------------------
1ST 2ND 3RD 4TH
YEAR
--- --- --- --- ----
<S> <C> <C> <C>
<C> <C>
1995: Net Asset Value............ $20.86 --- --- ---
- ---
Total Return............... 6.0% --- --- --- ---
------------------------------------------------------------------------------------------------------
- -------
1994: Net Asset Value............ $21.90 $21.23 $22.58 $19.68
$19.68
Total Return............... (5.8)% (3.1)% 6.4% (0.5)%
(3.4)%
------------------------------------------------------------------------------------------------------
- -------
1993: Net Asset Value............ $21.71 $21.84 $23.43 $23.26
$23.26
Total Return............... 0.6% 0.6% 7.3% 2.5%
11.3%
------------------------------------------------------------------------------------------------------
- -------
1992: Net Asset Value............ $20.27 $19.72 $20.50 $21.59
$21.59
Total Return............... (4.7)% (2.7)% 4.0% 8.5%
4.5%
------------------------------------------------------------------------------------------------------
- -------
1991: Net Asset Value............ $18.18 $18.02 $19.51 $21.28
$21.28
Total Return............... 11.7% (0.9)% 8.3% 12.0%
34.3%
------------------------------------------------------------------------------------------------------
- -------
1990: Net Asset Value............ $16.74 $17.80 $15.75 $16.27
$16.27
Total Return............... (1.9)% 6.3% (11.5)% 6.2%
(2.0)%
------------------------------------------------------------------------------------------------------
- -------
1989: Net Asset Value............ $13.99 $15.73 $17.46 $17.07
$17.07
Total Return............... 10.6% 12.4% 11.0% 1.5%
40.1%
------------------------------------------------------------------------------------------------------
- -------
1988: Net Asset Value............ $10.87 $12.40 $12.71 $12.65
$12.65
Total Return............... 16.1% 14.1% 2.5% 2.5%
39.2%
------------------------------------------------------------------------------------------------------
- -------
1987: Net Asset Value............ $10.00 $10.84 $11.28 $ 9.51
$ 9.51
Total Return............... --- 8.4%(b) 4.1% (15.7)%
(4.9)%(b)
------------------------------------------------------------------------------------------------------
- -------
</TABLE>
<TABLE>
- -------------------------------------------
AVERAGE ANNUAL RETURNS - MARCH 31, 1995 (a)
- -------------------------------------------
<S> <C>
1 Year........................... 8.8%
5 Year........................... 9.8%
Life of Fund (b)................. 14.3%
- -------------------------------------------
</TABLE>
<TABLE>
Dividend History
- ---------------------------------------------------------
<CAPTION>
Payment (ex) Date Rate Per Share Reinvestment Price
- ----------------- -------------- ------------------
<S> <C> <C>
December 30, 1994 $ 2.79 $19.68
December 31, 1993 $0.760 $23.26
December 31, 1992 $0.646 $21.59
December 31, 1991 $0.573 $21.28
December 31, 1990 $0.460 $16.27
December 29, 1989 $0.654 $17.07
December 30, 1988 $0.377 $12.65
January 4, 1988 $0.152 $ 9.58
<FN>
(a) Average annual and total returns reflect changes in share price and
reinvestment of dividends and are net of expenses. The net asset value of the
Fund is reduced on the ex-dividend (payment) date by the amount of the dividend
paid. Of course, returns represent past performance and do not guarantee future
results. 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. (b) From commencement of operations on April 10, 1987.
- --------------------------------------------------------------------------------
</TABLE>
COMMENTARY
The quarter ending March 31, 1995 saw the stock market scale a wall of
worry inflated by international currency turmoil. A crises of confidence
enveloped Mexico and threatened to brake capital flows to its Latin American
neighbors. As the peso fell in value, news of U.S. financial aid to Mexico
further weakened an already bruised dollar. The Japanese yen and German mark
were the principal beneficiaries of the dollar's weakness. Fortunately, the
dollar stabilized with the help of Central Bank intervention. Additionally,
like the cavalry riding to the rescue, Federal Reserve Board Chairman
Greenspan's pronouncements that the U.S. economy was slowing, inflation was
under control and an eighth round of Fed tightening may not be needed, were
enough to calm the waters and send stock prices to all time highs.
Surprisingly, interest rates fell with little hesitation, despite the pressure
on the dollar.
2
<PAGE>
If the currency battles being waged under the big tent were not
spectacular enough, a sideshow was taking place in Singapore that led to the
fall of one of England's oldest and most respected merchant banks. The fall of
the house of Barings can be traced to a series of bad bets involving various
currency and stock market derivatives. A young trader's market timing decision
was wrong and the Barings name is gone. Financial history is rich with tales of
speculators who sink under the weight of their leverage and arrogance. It's a
potent combination.
We increased your investment in U.S. companies that derive a material
and growing percentage of their sales from foreign markets. We believe in the
existence of a global economy and the large U.S.-based multinational companies
are well positioned to prosper in such an environment. Increasingly, they have
new and large markets for their goods and are able to produce where costs are
lowest and raise capital where it is the cheapest. New Fund holdings which fit
this profile include Duracell International (DUR - $44.75 - NYSE), McDonald's
Corporation (MCD - $34.125 - NYSE), Pepsico Inc. (PEP - $39.00 - NYSE), Conagra
Inc. (CAG - $33.125 - NYSE) and Nabisco Holdings (NA - $27.875 - NYSE).
One of the characteristics of a global economy is heightened
competition, which helps to keep prices low and forces companies to become more
productive. This has led to an increase in capital spending on technology goods.
We believe this trend will continue and therefore, we have established new
positions in Microsoft Corporation (MSFT - $71.125 - NASDAQ), Hewlett-Packard
Co. (HWP - $120.375 - NYSE), Texas Instruments Inc. (TXN- $88.50 - NYSE) and
Motorola, Inc. (MOT- $54.625 - NYSE). Additionally, we added to your existing
commitments in Intel Corporation (INTC - $84.875 - NASDAQ) and Molex
Incorporated (MOLX - $35.75 - NASDAQ). We are investing in large, seasoned,
technology industry leaders only. Approximately 10% of your Fund is invested in
technology companies.
Healthcare companies were among the first true multinational
organizations. The industry is going through a consolidation phase brought on
by competitive pressures, while demand for healthcare services continues to
grow. We added Warner Lambert (WLA - $78.25 - NYSE), Schering Plough (SGP -
$74.375 - NYSE) and Eli Lilly &Co. (LLY - $73.125 - NYSE) to your portfolio as
we view these three as among the best positioned in the current environment. On
the managed care\cost containment side of the ledger we initiated positions in
United Healthcare Corp. (UNH - $46.75 - NYSE) and Colombia HCA/Healthcare
Corp.
(COL - $43.00 - NYSE). Again, both are industry leaders with exceptional
management.
As the U.S. economy slows, as we believe it will in coming months,
financial stocks should receive greater investor interest. We look for
companies filling special niches within the financial services community.
Examples include State Street Boston Corp. (STT - $31.875 - NYSE) (leading
provider of services to the mutual fund industry), MBIA Inc. (MBI - $62.875 -
NYSE) (leading insurer of municipal bonds), Federal National Mortgage
Association (FNM - $81.375 - NYSE) (leading provider of mortgages) and American
International Group (AIG - $104.25 - NYSE) (multinational provider of insurance
with strong Asian presence).
LOOKING AHEAD
We believe economic growth is moderating in the U.S. as a result of the
year long rise in interest rates (which may have peaked in November 1994) and
prospects for a reduced level of exports to Mexico as the devalued peso makes
U.S. goods more expensive. Real Gross Domestic Product (GDP) growth should be
approximately 3.5% for the year, versus 4.0% last year. Inflation remains low,
hovering
3
<PAGE>
near the 3.2% level for the consumer price index (CPI). An environment of low
inflation and moderate growth is frequently a positive backdrop for common
stocks.
LET'S TALK STOCKS
The following are stock specifics on selected holdings of your Fund's
investments. Favorable EBITDA prospects do not necessarily translate into
higher stock prices, but they do express a positive trend which we believe will
develop over time.
Importantly, your Fund is well diversified among "Blue Chip" companies
expected to generate healthy profit gains in 1995 and 1996. We expect to
continue to emphasize investments in global consumer franchises (Coca-Cola,
Gillette), productivity drivers (Intel, Microsoft), financial service providers
(American Express, Mellon Bank), media content owners (Time Warner, Disney,
Viacom) and telecommunications equipment and service suppliers (Motorola, AT&T).
American International Group (AIG - $104.25 - NYSE), headquartered in New York
City, is one of the world's leading insurance organizations, providing
property, casualty, marine, life and financial guaranteed insurance. American
International Group has global exposure, with foreign operations accounting for
over 50% of sales. AIG will achieve over $20 billion in revenue in 1994 spurred
by increased premium rates and new written business. Earnings should be greater
than $6.50 per share for 1994 and will grow by roughly 15% this year.
AT&T Corporation (T - $51.75 - NYSE) is the second largest telephone company in
the world. AT&T, selling at 7.5 times EBITDA is attractively valued relative to
its growth potential. The company is well positioned to benefit from the above
average long-term growth of the global telecommunications industry. Its strategy
includes a tailored approach to take advantage of its strong global franchise,
including its brand name, broad product offerings and an international customer
base. AT&T will satisfy communication needs by packaging a broad array of
products, including its global wired and wireless telecommunications services,
telecommunications equipment and financial services.
Capital Cities/ABC (CCB - $88.25 - NYSE) The company owns the ABC Television
and Radio Networks, publishes numerous newspapers and trade magazines and has
investments in cable programming such as ESPN, Lifetime and the Arts &
Entertainment channel. The company is well positioned to exploit new
opportunities in the coming multimedia age, as both a producer and distributor
of programming.
General Electric Company (GE - $54.125 - NYSE), with sales expected to top $40
billion in 1995, stands among the world's largest industrial concerns. As a
company with a global footprint, GE is a primary beneficiary of a developing
European recovery and continued strength in the developing markets of Asia and
Latin America. GE's varied businesses include financial services (through
General Electric Capital Corporation), broadcasting (through the NBC Television
Network) and jet engines. The company is also a leader in home appliances and
industrial power systems. GE's controversial unit, Kidder Peabody, has been
sold to PaineWebber. GE declared a 2-for-1 stock split in mid-1994 and the
dividend was increased by almost 14%. Earnings should hit a record level in 1995
and the shares should benefit from a recently announced $5 billion share
repurchase plan.
Gillette Company (G - $81.625 - NYSE), along with Coca-Cola, is becoming a true
global consumer brand. The company is aggressively pursuing foreign markets
and developing new and better products. Earnings should advance at nearly a 20%
rate this year, reflecting strong results both domestically and abroad.
4
<PAGE>
Home Depot, INC. (HD - $44.25 - NYSE) is the undisputed leader of the home
improvement warehouse retailers. We expect earnings to rise nearly 30% this
year. The management team, led by co-founders Bernie Marcus and Arthur Blank,
have a disciplined strategy to continuously improve and add services to what is
already a winning store format. They do not rest on their laurels.
Intel Corporation (INTC - $84.875 - NASDAQ) is one of the primary beneficiaries
of the increasing demand for personal computers. The company's microprocessors
dominate the personal computer industry with a market share in excess of 80%.
The company's technological lead seems protected by a rese arch effort that
dwarfs the competition. Selling for less than 12 times expected 1995 earnings,
Intel's shares remain undervalued.
McDonald's Corporation (MCD - $34.125 - NYSE) Simply the best restaurant chain,
period. McDonald's has tapped new sources of growth overseas and foreign
earnings now exceed domestic earnings. The company is accelerating the pace of
new restaurant openings which should enhance near-term growth. Two-thirds of
all new restaurants are outside the U.S. with huge potential remaining.
Mellon Bank Corporation (MEL - $40.75 - NYSE), with the acquisitions of Dreyfus
Corporation and The Boston Company, has become a powerhouse in money
management. We believe the rising contribution to earnings from predictable fee
sources will result in an expansion in the company's price to earnings multiple
(presently about 8). We look for double-digit growth in earnings this year and
anticipate a share repurchase in 1996.
MINIMUM INITIAL INVESTMENT - $1,000
The Fund's minimum initial investment for both regular and retirement
accounts is $1,000. There are no subsequent minimums. No initial minimum is
required for those establishing an Automatic Investment Plan.
IN CONCLUSION
The Fund's daily net asset value is available in the financial press
and each evening after 6:00 PM (Eastern Time) by calling 1-800-GABELLI
(1-800-422-3554). The Fund's NASDAQ symbol is GABGX. Please call us during the
day for further information.
In closing, we thank you for the trust you have shown in our investment
capabilities and express our dedication to achieving our shared financial goal:
to increase the value of the assets you have entrusted to us.
Sincerely,
HOWARD F. WARD, CFA DONALD C. JENKINS, CFA
Portfolio Manager Associate Portfolio Manager
May 1, 1995
5
<PAGE>
-----------------------------------------------------------------
TOP TEN HOLDINGS MARCH 31, 1995
--------------
General Electric Company AT&T Corporation
Motorola, Inc. American International Group
Intel Corporation Coca-Cola Company
Home Depot, Inc. State Street Boston Corporation
Mellon Bank Corporation Illinois Tool Works, Inc.
-----------------------------------------------------------------
<PAGE>
<TABLE>
THE GABELLI GROWTH FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<CAPTION>
MARKET
SHARES VALUE
- ---------- -------------
<C> <S> <C>
COMMON STOCKS -- 97.32%
BUSINESS SERVICES -- 2.03%
28,000 Automatic Data Processing.......... $ 1,764,000
115,000 First Data Corporation............. 5,965,625
42,000 Reuters Holdings PLC -- ADR........ 1,932,000
-------------
9,661,625
-------------
COMMUNICATIONS EQUIPMENT -- 3.42%
70,000 Ericsson (L.M.) Telephone
Company -- SP ADR................ 4,326,875
219,000 Motorola, Inc. .................... 11,962,875
-------------
16,289,750
-------------
CONGLOMERATES -- 3.39%
230,000 General Electric Company........... 12,448,750
89,000 General Motors Corporation Class H. 3,671,250
-------------
16,120,000
-------------
CONSTRUCTION AND ENGINEERING -- 1.24%
73,000 Fluor Corporation.................. 3,522,250
71,000 Foster Wheeler Corp................ 2,405,125
-------------
5,927,375
-------------
CONSUMER DURABLES -- 2.83%
100,000 Chrysler Corporation............... 4,187,500
110,000 Cooper Tire & Rubber Company....... 3,121,250
229,000 Ford Motor Company................. 6,183,000
-------------
13,491,750
-------------
ENERGY -- 3.13%
85,000 Chevron Corporation................ 4,080,000
174,000 Enron Corporation.................. 5,742,000
55,000 Mobil Corporation.................. 5,094,375
-------------
14,916,375
-------------
FINANCIAL SERVICES -- 14.19%
200,000 American Express Company........... 6,975,000
96,000 American International Group....... 10,008,000
220,000 Banc One Corporation............... 6,270,000
100,000 BankAmerica........................ 4,825,000
40,000 Barnett Bank Inc. ................. 1,820,000
40,000 Federal National Mortgage
Association...................... 3,255,000
25,000 General RE Corp.................... 3,300,000
80,000 MBIA Inc. ......................... 5,030,000
280,000 Mellon Bank Corp................... 11,410,000
25,000 Midlantic Corporation Inc. ........ 856,250
160,000 Norwest Corporation................ 4,060,000
278,000 State Street Boston Corp........... 8,861,250
17,000 Suntrust Banks Inc. ............... 909,500
-------------
67,580,000
-------------
FOOD, BEVERAGE AND TOBACCO -- 11.05%
190,000 American Brands, Inc. ............. 7,457,500
60,000 Campell Soup Company............... 2,902,500
172,000 Coca-Cola Company.................. 9,718,000
100,000 Conagra Inc. ...................... 3,312,500
70,000 Hershey Foods Corporation.......... 3,578,750
213,000 Nabisco Holdings................... 6,097,125
155,000 Pepsico Inc. ...................... 6,045,000
115,000 Phillip Morris Companies Inc. ..... 7,503,750
41,200 Tootsie Roll Industries, Inc. ..... 2,605,900
76,000 Wrigley (Wm.) Jr. Company.......... 3,372,500
-------------
52,593,525
-------------
HEALTH CARE -- 7.81%
60,000 Amgen Inc.*........................ 4,042,500
105,000 Columbia HCA Healthcare Corp. ..... 4,515,000
85,000 Johnson & Johnson.................. 5,057,500
77,000 Lilly (ELI) & Co................... 5,630,625
92,000 Schering-Plough.................... 6,842,500
90,000 United Healthcare Corp. ........... 4,207,500
88,000 Warner-Lambert..................... 6,886,000
-------------
37,181,625
-------------
HOTELS/CASINOS -- 1.74%
130,000 Circus Circus Enterprises, Inc.*... 4,192,500
55,000 Hilton Hotels Corporation.......... 4,076,875
-------------
8,269,375
-------------
HOUSEHOLD PRODUCTS/PERSONAL CARE -- 4.45%
85,000 Colgate-Palmolive Company.......... 5,610,000
45,000 Duracell International............. 2,013,750
80,000 Gillette Company................... 6,530,000
52,000 Procter & Gamble Company........... 3,445,000
75,000 Ralston Purina Group............... 3,581,250
-------------
21,180,000
-------------
MANUFACTURING -- 4.75%
85,000 Crane Co. ......................... 2,581,875
74,000 Emerson Electric Co. .............. 4,921,000
165,000 Illinois Tool Works, Inc. ......... 8,064,375
110,000 Minerals Technologies Inc. ........ 3,547,500
60,000 Minnesota Mining & Manufacturing
Co. ............................. 3,487,500
-------------
22,602,250
-------------
MEDIA -- 9.81%
60,000 Capital Cities/ABC, Inc. .......... 5,295,000
130,000 Comcast Corporation Special Class
A................................ 2,031,250
110,000 Walt Disney Co. ................... 5,871,250
115,000 Dow Jones & Company Inc. .......... 4,355,625
40,700 Interpublic Group of Companies..... 1,521,163
50,000 McGraw-Hill, Inc. ................. 3,587,500
120,000 Multimedia, Inc. .................. 4,545,000
380,000 Tele-Communications, Inc. Class A.. 7,980,000
190,500 Time Warner Inc. .................. 7,191,375
31,000 United International Holdings Inc.
Class A.......................... 503,750
</TABLE>
6
<PAGE>
<TABLE>
THE GABELLI GROWTH FUND
PORTFOLIO OF INVESTMENTS -- MARCH 31, 1995 (UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<CAPTION>
MARKET
SHARES VALUE
- ---------- -------------
<C> <S> <C>
18,000 Viacom Inc. -- Class A............. $ 823,500
67,000 Viacom Inc. -- Class B............. 2,998,250
-------------
46,703,663
-------------
METALS & MINING -- 0.47%
40,000 Nucor Corporation.................. 2,250,000
-------------
MISCELLANEOUS -- 0.07%
10,000 Ceridian Corp...................... 333,750
-------------
PRODUCER DURABLES -- 2.20%
82,000 Caterpiller, Inc. ................. 4,561,250
40,000 Deere & Company.................... 3,250,000
60,000 Parker-Hannifin Corp............... 2,655,000
-------------
10,466,250
-------------
RESTAURANTS -- 1.05%
147,000 McDonald's Corporation............. 5,016,375
-------------
RETAIL -- 7.50%
150,000 Albertson's, Inc. ................. 4,837,500
130,000 Burlington Coat Factory Warehouse
Corporation...................... 1,348,750
268,806 Home Depot, Inc. .................. 11,894,665
35,000 Kroger Co. ........................ 923,125
91,200 Mattel Inc. ....................... 2,245,800
100,000 Office Depot, Inc. ................ 2,437,500
90,000 Toys R Us.......................... 2,306,250
240,000 Wal-Mart........................... 6,120,000
75,000 Walgreen Co. ...................... 3,609,375
-------------
35,722,965
-------------
SPECIALTY MATERIALS -- 1.59%
135,000 Lubrizol Corporation............... 4,758,750
65,000 Sealed Air Corporation............. 2,803,125
-------------
7,561,875
-------------
TECHNOLOGY -- 8.30%
50,000 Hewlett-Packard Co. ............... 6,018,750
145,000 Intel Corporation *................ 12,306,875
110,000 Loral Corporation.................. 4,675,000
100,000 Microsoft Corporation.............. 7,112,500
50,000 Molex Incorporated................. 1,787,500
81,250 Molex Incorporated Class A......... 2,742,187
55,000 Texas Instruments, Inc............. 4,867,500
-------------
39,510,312
-------------
TELECOMMUNICATIONS -- 6.30%
220,000 AT&T Corporation................... 11,385,000
210,000 AirTouch Communications............ 5,722,500
107,000 Century Telephone Enterprises,
Inc. ............................ 3,250,125
130,000 Cox Communications Inc. Class A.... 2,177,500
50,000 Globalstar Telecommunications...... 787,500
147,751 LDDS Communications, Inc.*......... 3,453,680
85,000 Sprint Corporation................. 2,571,250
20,000 Vodafone Group plc -- ADR.......... 662,500
-------------
30,010,055
-------------
TOTAL COMMON STOCKS
(Cost $398,046,712).............. 463,388,895
-------------
PREFERRED STOCKS -- 0.70%
COMMUNICATIONS EQUIPMENT -- 0.70%
45,000 Nokia Group AB..................... 3,307,500
-------------
TOTAL PREFERRED STOCKS
(Cost $3,502,376)................ 3,307,500
-------------
CONVERTIBLE BONDS -- 0.61%
MEDIA -- 0.61%
7,000,000 Comcast Corporation Step-Up
Debentures, 1.125%, due
04/15/2007....................... $ 2,905,000
-------------
TOTAL CONVERTIBLE BONDS
(Cost $3,896,854)................ 2,905,000
-------------
TOTAL INVESTMENTS -- 98.63%
(Cost $405,445,942+)............. $ 469,601,395
CASH AND OTHER ASSETS IN EXCESS OF
LIABILITIES -- 1.37%............. 6,542,790
-------------
NET ASSETS--100.00%
22,829,440 shares outstanding...... $ 476,144,185
===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE....... $ 20.86
===========
<FN>
* Non-income producing.
+ For Federal income tax purposes aggregate cost is $405,845,509. Aggregate
unrealized appreciation and depreciation are $68,432,846 and $4,676,960,
respectively.
</TABLE>
<TABLE>
-------------------------------------------------------------------------
TOP TEN HOLDINGS -- MARCH 31, 1995
<S> <C>
General Electric Company AT&T Corporation
Motorola, Inc. American International Group
Intel Corporation Coca-Cola Company
Home Depot, Inc. State Street Boston Corporation
Mellon Bank Corporation Illinois Tool Works, Inc.
-------------------------------------------------------------------------
</TABLE>
7
<PAGE>
THE GABELLI GROWTH FUND
One Corporate Center
Rye, New York 10580-1434
1-800-GABELLI
[1-800-422-3554]
(Net Asset Value may be obtained daily by calling
1-800-GABELLI after 6:00 P.M.)
<TABLE>
BOARD OF DIRECTORS
<S> <C>
Mario J. Gabelli, CFA Karl Otto Pohl
Chairman and Chief Former President
Investment Officer Deutsche Bundesbank
Gabelli Funds, Inc.
Felix J. Christiana Anthony R. Pustorino
Former Senior Certified Public Accountant
Vice President Professor, Pace University
Dollar Dry Dock Savings Bank
Anthony J. Colavita Anthony Torna
Attorney-at-Law Herzog, Heine & Geduld, Inc.
Anthony J. Colavita, P.C.
James P. Conn Anthonie C. van Ekris
Managing Director and Managing Director
Chief Investment Officer BALMAC International, Inc.
Financial Security
Assurance
Dugald A. Fletcher Salvatore J. Zizza
President Chairman, Chief
Fletcher & Company, Inc. Executive Officer
The Lehigh Group, Inc.
OFFICERS AND PORTFOLIO MANAGERS
Bruce N. Alpert Howard F. Ward, CFA
President and Treasurer Portfolio Manager
J. Hamilton Crawford, Jr. Donald C. Jenkins, CFA
Secretary Associate Portfolio Manager
</TABLE>
DISTRIBUTOR
Gabelli & Company, Inc.
CUSTODIAN, TRANSFER AGENT AND DIVIDEND AGENT
State Street Bank and Trust Company
LEGAL COUNSEL
Skadden, Arps, Slate, Meagher & Flom
- --------------------------------------------------------------------------------
This report is submitted for the general information of the shareholders of The
Gabelli Growth Fund. It is not authorized for distribution to prospective
investors unless preceded or accompanied by an effective prospectus.
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[GRAPHIC]
THE
GABELLI
GROWTH
FUND
FIRST QUARTER REPORT
MARCH 31, 1995
