THE GABELLI GROWTH FUND
SEMI-ANNUAL REPORT
JUNE 30, 2000
[star graphic omitted]
MORNINGSTAR RATED [TRADEMARK] GABELLI GROWTH FUND 5 STARS
OVERALL AND FOR THE THREE, FIVE AND TEN-YEAR PERIODS ENDED 6/30/00
AMONG 3642, 2328 AND 783 DOMESTIC EQUITY FUNDS, RESPECTIVELY.
[PHOTO OF HOWARD WARD OMITTED]
TO OUR SHAREHOLDERS,
At the box office this summer it's THE PERFECT STORM vs. THE PATRIOT.
George Clooney vs. Mel Gibson. In TV land it's WHO WANTS TO BE A MILLIONAIRE vs.
SURVIVOR. What the public really wants is a DYNASTY-like version of SURVIVOR.
Put a bushel of investment banking big shots on a deserted island and see how
long it takes before they resort to cannibalism. Of course, you know the stock
market has been a test of survival so far this year and yes it has put some big
name millionaires out of business. The storm that knocked nearly 40% off the
NASDAQ market between March 10 and May 22 may have been less than perfect but it
served the purpose of bringing some discipline back into the market. The
silliness was exposed.
I haven't seen THE PATRIOT yet but I did finally see THE GREEN MILE.
Self-absorbed portfolio manager that I am, I thought I was going to see a movie
about Wall Street. Little did I know that THE GREEN MILE was about "death row".
Call me Mr. Out of Touch. I do know THE PATRIOT is about an American
Revolutionary War hero played by Mr. Gibson. Ironically, Mr. Gibson is actually
Australian. That's fine. THE PATRIOT, like THE PERFECT STORM, is a fictional
account of a factual event. In this respect, these movies have the look and feel
of so much Wall Street research.
INVESTMENT PERFORMANCE
For the second quarter ended June 30, 2000, The Gabelli Growth Fund (the
"Fund") declined 0.74%. The Standard and Poor's ("S&P") 500 Index and the Lipper
Large-Cap Growth Fund Average declined 2.66% and 5.01%, respectively, over the
same period. The S&P 500 Index is an unmanaged
--------------------------------------------------------------------------------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. Morningstar proprietary
ratings reflect historical risk adjusted performance as of June 30, 2000 and are
subject to change every month. Morningstar ratings are calculated from a Fund's
three, five and ten-year average annual returns in excess of 90-day T-Bill
returns with appropriate fee adjustments and a risk factor that reflects fund
performance below 90-day T-Bill returns. The top 10% of the funds in a broad
asset class receive five stars, the next 22.5% receive four stars, the next 35%
receive three stars, the next 22.5% receive two stars and the bottom 10% receive
one star.
<PAGE>
<TABLE>
<CAPTION>
INVESTMENT RESULTS (A)
-----------------------------------------------------------------------------------------------------------
Quarter
--------------------------------------------
<S> <C> <C> <C> <C> <C>
1st 2nd 3rd 4th Year
------ ------- ------- ------ -----
2000: Net Asset Value $50.10 $49.73 -- -- --
Total Return 7.7% (0.7)% -- -- --
-----------------------------------------------------------------------------------------------------------
1999: Net Asset Value $38.53 $41.38 $41.07 $46.51 $46.51
Total Return 8.8% 7.4% (0.8)% 26.1% 46.3%
-----------------------------------------------------------------------------------------------------------
1998: Net Asset Value $32.32 $33.37 $28.54 $35.40 $35.40
Total Return 12.9% 3.2% (14.5)% 30.2% 29.8%
-----------------------------------------------------------------------------------------------------------
1997: Net Asset Value $24.50 $29.25 $33.41 $28.63 $28.63
Total Return 1.5% 19.4% 14.2% 3.1% 42.6%
-----------------------------------------------------------------------------------------------------------
1996: Net Asset Value $23.75 $24.34 $25.35 $24.14 $24.14
Total Return 7.2% 2.5% 4.1% 4.4% 19.4%
------------------------------------------------------------------------------------------------------------
1995: Net Asset Value $20.86 $22.99 $24.91 $22.16 $22.16
Total Return 6.0% 10.2% 8.4% 4.9% 32.7%
------------------------------------------------------------------------------------------------------------
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 -- $10.84 $11.28 $9.51 $9.51
Total Return -- 8.4%(b) 4.1% (15.7)% (4.9)%(b)
------------------------------------------------------------------------------------------------------------
</TABLE>
-----------------------------------------------------------
AVERAGE ANNUAL RETURNS - JUNE 30, 2000 (A)
1 Year 33.8%
5 Year 31.5%
10 Year 20.6%
Life of Fund (b) 21.1%
-----------------------------------------------------------
DIVIDEND HISTORY
Payment (ex) Date Rate Per Share Reinvestment Price
----------------- -------------- ------------------
December 27, 1999 $5.160 $45.59
December 28, 1998 $1.745 $35.15
December 30, 1997 $5.790 $28.58
December 31, 1996 $2.324 $24.14
December 29, 1995 $3.960 $22.16
December 30, 1994 $2.790 $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
(a) Total returns and average annual 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 investment operations on April 10, 1987.
2
<PAGE>
indicator of stock market performance, while the Lipper Average reflects the
average performance of mutual funds classified in this particular category. For
the six-month period ended June 30, 2000, the Gabelli Growth Fund returned
6.92%, versus a loss of 0.43% for the S&P 500 and a gain of 2.97% for the Lipper
Average. The Fund was up 33.78% over the twelve months ended June 30, 2000. The
S&P 500 Index and Lipper Large-Cap Growth Fund Average rose 7.24% and 26.32%,
respectively, over the same twelve-month period.
For the ten-year period ended June 30, 2000, the Fund's total return
averaged 20.59% annually, versus average annual total returns of 17.79% and
18.46% for the S&P 500 Index and Lipper Large-Cap Growth Fund Average,
respectively. Since inception on April 10, 1987 through June 30, 2000, the Fund
had a cumulative total return of 1,157.71%, which equates to an average annual
total return of 21.08%. Our direct shareholders total 85,772 and net assets are
$4.2 billion as of June 30, 2000.
ECONOMIC BACKGROUND
There is growing evidence of a slowing in global economic activity.
Central banks around the World have been nudging short-term interest rates
higher and we are now seeing the impact. Higher energy costs have also acted
like a brake on discretionary spending, with gasoline prices up 80% in the past
year. The slowdown is seen in housing, autos, retail sales and durable goods
orders. Consumer confidence dipped with lower stock prices surely a factor. New
job creation has slowed markedly.
Highlights include 30-year mortgage rates hitting five year highs as
housing starts fell to a six year low in March. April retail sales fell for the
first time since August of 1998. The Federal Reserve's (the "Fed") Discount Rate
is at its highest level in 9 years. The Fed Funds Rate, at 6.5%, is at its
highest point in 10 years. The April decline in durable goods orders was the
biggest since December 1991.
It is likely that real Gross Domestic Product (GDP) growth in the second
quarter was 3% or less, compared to the 5.4% rate of growth in the first
quarter. Profit growth is slowing too. Overall year over year growth in
corporate profits may show growth of about 7%, down from 9% last year.
A slowdown is good news for growth stocks. The 30-year Treasury bond yield
is back below 6% and the 10-year yield is not much higher. The pressure for the
Fed to tighten yet again, at their August meeting, is abating. If we can avoid a
recession, and that is a hot topic of debate, then the back half of the year
could be a rewarding one for equity investors.
THE STOCK MARKET
The NASDAQ bubble burst, declining 25% during the week ended April 14, its
worst one-week fall ever. Peak to trough, the fall was about 40% over little
more than 3 months. The broader market averages fell too, but less seriously.
Let's face it, the market was ripe for a good old-fashioned flogging, as noted
in our year-end 1999 report. From November 1 to March 10, the NASDAQ rose from
3000 to 5000. By May 22, it was back to 3150. The Dow Jones Industrials and the
S&P 500 retraced all of their gains from November 1 through March 10.
3
<PAGE>
With a reduced degree of speculation, lower bond yields, healthy prospects
for profit growth and a less hostile Fed, we have to feel somewhat more positive
regarding the market's prospects for the next 6 months. This is always a tricky
and dangerous call. We must be careful not to overstate the positives and ignore
the potential for a further market correction. After all, someday the doomsday
bunch may be right. This could be their year. We don't know. We do know,
however, that market timing is ultimately a losers game and that we have
profited quite a bit from methodically investing in great companies at
defensible prices.
PORTFOLIO HIGHLIGHTS
As investors sold aggressive technology and dot.com stocks during March,
April and May, they embraced drug stocks. We were rewarded for our holdings in
Eli Lilly (up 59%), Johnson and Johnson (up 45%), Schering Plough (up 36%),
Pfizer (up 31%), Abbott Labs (up 26%), Merck (up 23%), Baxter (up 17%) and Amgen
(up 14%). Only a handful of technology holdings did well, including Corning (up
36%), EMC (up 22%), and Hewlett Packard (up 21%). While conventional wisdom says
financials do poorly during periods of Fed tightenings, we saw Mellon rise 22%,
while Merrill Lynch and State Street each advanced about 10%.
We took advantage of falling technology stock prices to boost our
investment in some of our smaller holdings like Qualcom and Microsoft. They are
controversial, but we believe in Qualcom's CDMA technology and our reservations
regarding Microsoft's valuation evaporated as the stock fell by nearly 50% from
its recent high. Other technology holdings we added to included Motorola, Hughes
Electronics, Dell Computer, Apple Computer and Tellabs. Our move to reduce
technology in favor of drugs and financials in the first quarter paid off in the
second quarter. We are hopeful that our move to increase technology in the
second quarter will pay off before year's end. We are funding this move with a
reduction in select drug names like Pharmacia, Abbott Labs and Bristol Myers and
a reduction in media holdings such as Tribune, Knight Ridder and Disney. In
addition to boosting technology, we established new positions in Paine Webber,
Goldman Sachs and Charles Schwab, all on price weakness. As we go to press, UBS
and Paine Webber have announced their marriage in a deal that values our Paine
Webber stock at a 65% premium to our cost. Thank you, Paine Webber.
LOOKING AHEAD
There are 3 easy ways to lose money in the stock market. The first way is
to try to time the market and get it wrong. You buy high and sell low or sell
high but never get back in except by buying even higher. The second way is to
ignore valuations and pay outrageous prices for stocks only to see them sink.
Sound familiar? The third way is to buy lousy businesses. Companies that just
never get their act together. We try to avoid these pitfalls. We don't engage in
market timing, we do pay attention to price and we only invest in established
growth companies. In other words, we try to invest in successful companies and
not companies that are trying to be successful. Our focus is very company
specific.
4
<PAGE>
LET'S TALK STOCKS
The following are stock specifics on selected holdings of our Fund.
Favorable earnings prospects do not necessarily translate into higher stock
prices, but they do express a positive trend which we believe will develop over
time.
CISCO SYSTEMS INC. (CSCO - $63.5625 - NASDAQ) is the leading supplier of data
networking equipment such as routers and ATM switches for use in Local Area
Networks, Wide Area Networks and the Internet. As an integral provider of
infrastructure for the Internet, the company is a major beneficiary of the Net's
explosive growth. We forecast strong earnings growth for this year and next.
CLEAR CHANNEL COMMUNICATIONS INC. (CCU - $75.00 - NYSE) is one of the top two
radio broadcasters along with Infinity Broadcasting (80% owned by CBS). The
company is also a leader in outdoor advertising. Both markets are strong,
reflecting the growing national economy and heavy advertising by new Internet
companies as they strive to develop brand awareness. Radio ad rates are low
compared to other media like TV and newspapers, which gives radio operators some
pricing protection.
EMC CORP. (EMC - $76.9375 - NYSE) is the leading provider of enterprise wide
data storage products. Storage has become a high growth market in today's
information based economy. Electronic commerce requires massive amounts of
storage, which has given EMC a tremendous business opportunity. We believe EMC
is the technology leader in enterprise storage (competitors are IBM, Hitachi and
Sun Microsystems) and is leading the field in introducing Storage Area Networks
(SANs). EMC is the vendor of choice for Internet Service Providers, just as
Cisco is for routers and Sun is for Client Servers. We expect continued strong
earnings growth in the foreseeable future.
THE HOME DEPOT INC. (HD - $49.9375 - NYSE) continues to take market share in the
home improvement retailing segment, in which it is the leader by a wide margin.
HD does not rest on its laurels. The company is testing a smaller format store
known as Villager's Hardware, which competes with small hardware stores. The
company continues to roll out Expo Design Centers and is expanding into
institutional facilities maintenance. Finally, the company is developing an
Internet sales facility, which will leverage the company's brand beyond
traditional retail outlets.
HUGHES ELECTRONICS (GMH - $87.75 - NYSE) is the leading provider of satellite
based television services through its DIRECTV product. The company expects to
offer two-way satellite based Internet communication through their DIRECTPC
product later this year. Healthy subscriber additions should drive revenue
growth and higher growth in EBITDA over the next couple of years.
INTEL CORP. (INTC - $133.6875 - NASDAQ) is the dominant supplier of
microprocessors for the personal computer industry with an 80% market share. The
company is developing new lines of business in semiconductors for the
communications equipment market and "server farms" for managing the electronic
commerce needs of other companies. As a leader in flash memory chips, Intel will
benefit from the robust growth expected in the wireless handset business. We
expect earnings to grow based on continued mid-teen growth in personal computer
shipments. The company is an integral member of the information revolution.
5
<PAGE>
MARSH AND MCLENNAN COMPANIES INC. (MMC - $104.4375 - NYSE) is the world's
largest insurance brokerage and one of the leading asset managers through its
ownership of The Putnam Funds. MMC is also a leader in employee benefit
consulting with its ownership of the Mercer Group. The company's growth rate has
accelerated in recent years due primarily to the success of Putnam. We expect
solid overall growth based on continued strong results at Putnam, albeit slower
than last year, and some modest improvement in the company's traditional
insurance brokerage business.
MELLON FINANCIAL CORP. (MEL - $36.4375 - NYSE) is one of the largest asset
managers in the country. In addition to the bank's asset gathering arm, their
Dreyfus and Boston Company subsidiaries continue to grow and prosper. New
management is shedding non-core assets to focus on the company's highest margin
and best growth opportunities. Fees represent over 60% of revenues and that
number will grow as the year progresses. The bank prefers to remain independent
but it is an attractive property to all the financial services companies seeking
to boost their asset management businesses.
MOTOROLA INC. (MOT - $29.0625 - NYSE) is a leading supplier of semiconductors,
cable set-top boxes, wireless handsets and infrastructure for the wireless
telecommunications industry. Earnings should be bolstered by explosive growth in
the demand for wireless handsets and infrastructure. The stock's valuation is
presently depressed due to a low level of profitability in the handset business.
We view this as a buying opportunity.
PFIZER INC. (PFE - $48.00 - NYSE) is a diversified consumer products and
pharmaceutical company. The company recently completed the acquisition of Warner
Lambert. The newly combined company has a research budget in excess of $4
billion, which bodes well for future growth. Business trends are strong and we
expect the new enterprise to grow earnings steadily for the next couple of
years, making Pfizer one of the fastest growing pharmaceutical companies.
STATE STREET CORP. (STT - $106.025 - NYSE) is a leading provider of financial
services to mutual funds and other institutional investors. The company is the
third largest custodian of assets in the world with $6 trillion under custody.
Additionally, the company is a major asset manager itself with $574 billion
under management. The company is focused on these two business lines and
recently exited the corporate lending business altogether. We believe this
enhances the company's growth prospects and valuation. Management believes the
company has strong growth prospects overseas and growing this part of their
business is a strategic priority, as is having a greater presence directly with
retail investors.
SUN MICROSYSTEMS INC. (SUNW - $90.9375 - NASDAQ) is a leading provider of
hardware and software for network based distributed computing systems. While
most of the company's revenue is derived from UNIX based workstations and client
servers, its JAVA operating software is gaining in popularity with software
writers. The company has entered into a joint venture with America Online, which
provides SUNW with a platform to enhance its presence in electronic commerce. As
the top supplier of client server computers to Internet Service Providers, SUNW
is a major beneficiary of continued Internet growth.
6
<PAGE>
TELLABS (TLAB - $68.4375 - NASDAQ) is a rapidly growing provider of
telecommunications equipment. The company is in the early stage of a new product
cycle for which it has received little attention. The company's stock should
benefit from the growing visibility of new products over the next 18 months.
Tellabs is one of the most profitable telecom equipment companies with operating
margins of 30%.
TEXAS INSTRUMENTS INC. (TXN - $68.6875 - NYSE) is the largest provider of
digital signal processors, a critical component for digital communication
devices, including wireless phones and digital signal lines ("DSL's"). Having
restructured the company in recent years, its valuation is no longer hostage to
the memory chip ("DRAM") cycle and defense businesses. We believe the DSP chip
business, in which TXN is the leader, will grow at a rate in excess of 20% in
the foreseeable future.
TIME WARNER INC. (TWX - $76.00 - NYSE) owns one of the finest collections of
media assets in the world. In addition to being the largest operator of cable
television systems, the company is a leading content provider through its
ownership of CNN, Warner Brothers, HBO, Turner Broadcasting, The Cartoon Channel
and other premium and basic cable programs. The company's media empire extends
to music and publishing, where it is a leader in both. The company's business
fundamentals are the best they have been in years. A merger with America Online
is pending.
MINIMUM INITIAL INVESTMENT - $1,000
The Fund's minimum initial investment for both regular and retirement
accounts is $1,000. There are no subsequent investment minimums. No initial
minimum is required for those establishing an Automatic Investment Plan.
WWW.GABELLI.COM
Please visit us on the Internet. Our home page at http://www.gabelli.com
contains information about Gabelli Asset Management Inc., the Gabelli Mutual
Funds, IRAs, 401(k)s, quarterly reports, closing prices and other current news.
You can e-mail us at [email protected].
Subscribe in time and join me for a chat session entitled "Investing for
Growth in a Volatile Market" on Wednesday, August 30.
IN CONCLUSION
We have recognized athletes for outstanding accomplishment in this space
in the past. Sports competition is not altogether different from business
competition. In this report we want to recognize William Clay Ford Jr., Chairman
of Ford Motor Company. It may seem out of character for me to praise an
executive of an automobile company. This is not a "growth" industry and Ford is
not a classic growth stock. We don't own it for those reasons. You see Mr. Ford
is a rarity in today's business world. He has a conscience and he is not afraid
to say and do the right thing even at the expense of short-term profit. Here is
a high profile executive who speaks of concern about the environment, the safety
attributes of
7
<PAGE>
Ford's products and the welfare of Ford's work force. He is setting an example
for other corporate chieftains to follow. Ford is lucky to have Ford. We wish
him good luck.
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
business day for further information.
Sincerely,
[/s/signature omitted]
HOWARD F. WARD, CFA
Portfolio Manager
July 14, 2000
---------------------------------------------------------------------
TOP TEN HOLDINGS
JUNE 30, 2000
-------------
Pfizer Inc. Marsh & McLennan Companies Inc.
Intel Corp. Motorola Inc.
State Street Corp. US West Inc.
Mellon Financial Corp. General Motors Corp., Cl. H
Tellabs Inc. Clear Channel Communications Inc.
---------------------------------------------------------------------
NOTE: The views expressed in this report reflect those of the portfolio manager
only through the end of the period stated in this report. The manager's views
are subject to change at any time based on market and other conditions.
8
<PAGE>
THE GABELLI GROWTH FUND
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS -- 98.9%
BROADCASTING -- 2.6%
1,371,600 Clear Channel
Communications Inc.+ ........... $ 75,896,522 $102,870,000
------------ ------------
BUSINESS SERVICES -- 4.0%
1,205,000 Automatic Data
Processing Inc. ................ 38,799,524 64,542,812
1,488,100 Interpublic Group
of Companies Inc. .............. 41,705,625 63,988,300
372,000 Omnicom Group Inc. ............. 20,682,950 33,131,250
------------ ------------
101,188,099 161,662,362
------------ ------------
CABLE -- 0.7%
730,000 Comcast Corp., Cl. A,
Special ........................ 28,188,809 29,565,000
------------ ------------
COMMUNICATIONS EQUIPMENT -- 13.2%
601,000 Cisco Systems Inc.+ ............ 15,434,338 38,201,062
210,000 Corning Inc. ................... 21,814,504 56,673,750
635,000 Lucent Technologies Inc. ....... 38,338,361 37,623,750
4,365,000 Motorola Inc. .................. 184,335,969 126,857,813
1,180,000 Nokia Corp., Cl. A, ADR ........ 41,941,125 58,926,250
1,003,000 Qualcomm Inc.+ ................. 66,282,636 60,180,000
2,190,000 Tellabs Inc.+ .................. 130,604,025 149,878,125
------------ ------------
498,750,958 528,340,750
------------ ------------
COMPUTER HARDWARE -- 7.0%
1,230,000 Apple Computer Inc.+ ........... 73,723,463 64,421,250
1,030,000 Dell Computer Corp.+ ........... 36,443,401 50,791,875
320,000 Hewlett-Packard Co. ............ 26,130,632 39,960,000
800,000 International Business
Machines Corp. ................. 79,236,777 87,650,000
390,000 Sun Microsystems Inc.+ ......... 6,269,895 35,465,625
------------ ------------
221,804,168 278,288,750
------------ ------------
COMPUTER SOFTWARE AND SERVICES -- 3.5%
620,000 EMC Corp.+ ..................... 13,116,255 47,701,250
1,155,000 Microsoft Corp.+ ............... 82,795,851 92,400,000
------------ ------------
95,912,106 140,101,250
------------ ------------
ELECTRONICS -- 8.9%
1,150,000 Analog Devices Inc.+ ........... 104,602,467 87,400,000
1,400,000 Intel Corp. .................... 99,105,099 187,162,500
1,206,000 Texas Instruments Inc. ......... 31,283,799 82,837,125
------------ ------------
234,991,365 357,399,625
------------ ------------
ENTERTAINMENT -- 4.1%
350,000 Disney (Walt) Co. .............. 12,382,190 13,584,375
610,000 Time Warner Inc. ............... 39,379,050 46,360,000
1,505,851 Viacom Inc., Cl. B+ ............ 52,645,289 102,680,215
------------ ------------
104,406,529 162,624,590
------------ ------------
MARKET
SHARES COST VALUE
------ ---- -------
FINANCIAL SERVICES -- 17.5%
520,000 Goldman Sachs
Group Inc. ..................... $ 45,032,129 $ 49,335,000
1,223,500 Marsh & McLennan
Companies Inc. ................. 75,463,891 127,779,281
4,301,000 Mellon Financial Corp. ......... 120,074,571 156,717,688
445,000 Merrill Lynch & Co. Inc. ....... 34,899,059 51,175,000
1,299,900 Northern Trust Corp. ........... 40,414,665 84,574,744
900,000 Paine Webber Group Inc. ........ 39,972,588 40,950,000
810,000 Schwab (Charles) Corp. ......... 26,923,177 27,236,250
1,534,400 State Street Corp. ............. 94,561,591 162,742,300
------------ ------------
477,341,671 700,510,263
------------ ------------
HEALTH CARE -- 15.9%
630,000 Abbott Laboratories ............ 20,838,049 28,074,375
648,000 Amgen Inc.+ .................... 19,939,742 45,522,000
1,042,000 Baxter International Inc. ...... 61,794,695 73,265,625
727,000 Johnson & Johnson .............. 57,822,437 74,063,125
940,000 Lilly (Eli) & Co. .............. 65,025,799 93,882,500
871,000 Merck & Co. Inc. ............... 53,450,312 66,740,375
4,077,500 Pfizer Inc. .................... 101,561,408 195,720,000
1,175,000 Schering-Plough Corp. .......... 49,314,185 59,337,500
------------ ------------
429,746,627 636,605,500
------------ ------------
PUBLISHING -- 4.9%
741,000 Dow Jones & Co. Inc. ........ 47,719,461 54,278,250
690,000 Gannett Co. Inc. ............ 36,491,130 41,270,625
210,000 Knight-Ridder Inc. .......... 11,451,378 11,169,375
917,500 McGraw-Hill
Companies Inc. .............. 35,389,308 49,545,000
968,000 New York Times
Co., Cl. A .................. 28,359,690 38,236,000
------------ ------------
159,410,967 194,499,250
------------ ------------
RETAIL -- 3.8%
1,921,577 Home Depot Inc. ................ 22,184,095 95,958,751
834,200 Tiffany & Co. .................. 18,541,883 56,308,500
------------ ------------
40,725,978 152,267,251
------------ ------------
SATELLITE -- 2.8%
1,290,000 General Motors
Corp., Cl. H+ .................. 119,014,086 113,197,500
------------ ------------
TELECOMMUNICATIONS -- 8.9%
1,160,000 Bell Atlantic Corp. ............ 64,381,897 58,942,500
1,290,000 BellSouth Corp. ................ 60,372,393 54,986,250
1,290,000 SBC Communications Inc. ........ 58,369,201 55,792,500
1,165,000 Sprint Corp.+ .................. 70,230,116 59,415,000
1,475,000 US West Inc. ................... 105,241,613 126,481,250
------------ ------------
358,595,220 355,617,500
------------ ------------
See accompanying notes to financial statements.
9
<PAGE>
THE GABELLI GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS (CONTINUED)
WIRELESS COMMUNICATIONS -- 1.1%
1,080,000 Vodafone AirTouch
plc, ADR $ 51,155,170 $ 44,752,500
------------ ------------
TOTAL COMMON STOCKS 2,997,128,275 3,958,302,091
------------- -------------
PRINCIPAL
AMOUNT
---------
U.S. GOVERNMENT OBLIGATIONS -- 1.1%
$46,370,000 U.S. Treasury Bills,
5.70% to 5.92%++,
due 07/06/00 to 10/05/00 45,817,032 45,828,581
----------- ----------
MARKET
COST VALUE
---- ------
TOTAL
INVESTMENTS -- 100.0% $ 3,042,945,307 $4,004,130,672
===============
OTHER ASSETS AND
LIABILITIES (NET) -- 0.0% (678,070)
--------------
NET ASSETS -- 100.0%
(80,499,607 shares outstanding) $4,003,452,602
==============
For Federal tax purposes:
Aggregate cost $3,042,945,307
==============
Gross unrealized appreciation $1,088,704,064
Gross unrealized depreciation (127,518,699)
--------------
Net unrealized appreciation $ 961,185,365
===============
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR - American Depositary Receipt.
See accompanying notes to financial statements.
10
<PAGE>
THE GABELLI GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
ASSETS:
Investments, at value
(Cost $3,042,945,307) ..................... $ 4,004,130,672
Dividends receivable ........................ 1,336,895
Receivable for Fund shares sold ............. 9,376,925
---------------
TOTAL ASSETS ................................ 4,014,844,492
---------------
LIABILITIES:
Payable for investments purchased ........... 7,099,685
Payable for Fund shares redeemed ............ 123,499
Payable for investment advisory fees ........ 3,254,957
Payable for distribution fees ............... 813,739
Payable to custodian ........................ 36,000
Other accrued expenses ...................... 64,010
---------------
TOTAL LIABILITIES ........................... 11,391,890
---------------
NET ASSETS applicable to 80,499,607
shares outstanding ........................ $ 4,003,452,602
===============
NET ASSETS CONSIST OF:
Shares of beneficial interest, at par value . $ 804,996
Additional paid-in capital .................. 2,566,124,806
Accumulated net investment loss ............. (9,629,412)
Accumulated net realized gain on investments 484,966,847
Net unrealized appreciation on investments .. 961,185,365
---------------
TOTAL NET ASSETS ............................. $ 4,003,452,602
===============
NET ASSET VALUE, offering and redemption
price per share ($4,003,452,602 / 80,499,607
shares outstanding; unlimited number of shares
authorized of $0.01 par value) $49.73
======
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
----------------------------------------------------------------------
INVESTMENT INCOME:
Dividends .................................... $ 12,445,215
Interest ..................................... 1,410,811
---------------
TOTAL INVESTMENT INCOME ...................... 13,856,026
---------------
EXPENSES:
Investment advisory fees ..................... 17,680,669
Distribution fees ............................ 4,420,167
Shareholder services fees .................... 882,241
Custodian fees ............................... 134,654
Legal and audit fees ......................... 41,750
Trustees' fees ............................... 22,434
Miscellaneous expenses ....................... 303,523
---------------
TOTAL EXPENSES ............................... 23,485,438
---------------
NET INVESTMENT LOSS .......................... (9,629,412)
---------------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain on investments ............. 486,399,530
Net change in unrealized appreciation
on investments ............................. (233,335,572)
---------------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS ................................ 253,063,958
---------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ............................ $243,434,546
===============
STATEMENT OF CHANGES IN NET ASSETS
----------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999
---------------- ------------------
OPERATIONS:
<S> <C> <C>
NET INVESTMENT LOSS ...................................................... $ (9,629,412) $ (15,338,893)
Net realized gain on investments ......................................... 486,399,530 326,900,048
Net change in unrealized appreciation on investments ..................... (233,335,572) 616,076,849
--------------- ---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ..................... 243,434,546 927,638,004
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net realized gain on investments ......................................... -- (312,444,198)
--------------- ---------------
SHARE TRANSACTIONS:
Net increase in net assets from shares of beneficial interest transactions 601,569,874 678,698,282
--------------- ---------------
NET INCREASE IN NET ASSETS ............................................... 845,004,420 1,293,892,088
NET ASSETS:
Beginning of period ...................................................... 3,158,448,182 1,864,556,094
--------------- ---------------
END OF PERIOD ............................................................ $ 4,003,452,602 $ 3,158,448,182
=============== ===============
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
THE GABELLI GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
1. ORGANIZATION. The Gabelli Growth Fund (the "Fund") was organized on October
24, 1986 as a Massachusetts business trust. The Fund is a diversified, open-end
management investment company registered under the Investment Company Act of
1940, as amended (the "1940 Act"). The Fund's primary objective is capital
appreciation. The Fund commenced investment operations on April 10, 1987.
2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements in
accordance with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts and disclosures
in the financial statements. 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 financial statements.
SECURITY VALUATION. Portfolio securities listed or traded on a nationally
recognized securities exchange, quoted by the National Association of Securities
Dealers Automated Quotations, Inc. ("Nasdaq") or traded on foreign exchanges are
valued at the last sale price on that exchange 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). All other portfolio securities for which
over-the-counter market quotations are readily available are valued at the
latest average of the bid and asked prices. 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"). Securities and assets for which market quotations are not
readily available are valued at their fair value as determined in good faith
under procedures established by and under the general supervision of the Board
of Trustees. Short term debt securities with remaining maturities of 60 days or
less are valued at amortized cost, unless the Trustees determine such does not
reflect the securities' fair value, in which case these securities will be
valued at their fair value as determined by the Trustees. Debt instruments
having a maturity greater than 60 days are valued at the highest bid price
obtained from a dealer maintaining an active market in those securities.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are
accounted for on the trade date with realized gain or loss on investments
determined by using the identified cost method. Interest income (including
amortization of premium and accretion of discount) is recorded as earned.
Dividend income is recorded on the ex-dividend date.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders are recorded on the ex-dividend date. Income distributions and
capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments of income and gains
on various investment securities held by the Fund, timing differences and
differing characterization of distributions made by the Fund.
PROVISION FOR INCOME TAXES. The Fund intends to continue to qualify as a
regulated investment company under Subchapter M of the Internal Revenue Code of
1986, as amended. As a result, a Federal income tax provision is not required.
12
<PAGE>
THE GABELLI GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
--------------------------------------------------------------------------------
3. INVESTMENT ADVISORY AGREEMENT. The Fund has entered into an investment
advisory agreement (the "Advisory Agreement") with the Adviser which provides
that the Fund will pay the Adviser a fee, computed daily and paid monthly, at
the annual rate of 1.00% of the value of the Fund's average daily net assets. In
accordance with the Advisory Agreement, the Adviser provides a continuous
investment program for the Fund's portfolio, oversees the administration of all
aspects of the Fund's business and affairs and pays the compensation of all
Officers and Trustees of the Fund who are its affiliates.
4. DISTRIBUTION PLAN. The Fund's Board of Trustees has adopted a distribution
plan (the "Plan") pursuant to Rule 12b-1 under the 1940 Act. For the six months
ended June 30, 2000, the Fund incurred distribution costs payable to Gabelli &
Company, Inc., an affiliate of the Adviser, of $4,420,167, or 0.25% of average
daily net assets, the annual limitation under the Plan. Such payments are
accrued daily and paid monthly.
5. PORTFOLIO SECURITIES. Purchases and sales of securities for the six months
ended June 30, 2000, other than short term securities, aggregated $1,821,255,579
and $1,219,209,402, respectively.
6. LINE OF CREDIT. The Fund has access to an unsecured line of credit up to
$25,000,000 from the custodian for temporary borrowing purposes. Borrowings
under this arrangement bear interest at 0.75% above the Federal Funds rate on
outstanding balances. There were no borrowings against the line of credit during
the six months ended June 30, 2000.
7. SHARES OF BENEFICIAL INTEREST. Transactions in shares of beneficial interest
were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2000 DECEMBER 31, 1999
---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------- ---------- --------------
<S> <C> <C> <C> <C>
Shares sold ..................................... 23,177,737 $1,101,538,502 23,312,269 $ 964,769,065
Shares issued upon reinvestment of dividends .... -- -- 6,422,964 292,802,709
Shares redeemed ................................. (10,590,517) (499,968,628) (14,494,427) (578,873,492)
---------- -------------- ----------- -------------
Net increase ................................ 12,587,220 $ 601,569,874 15,240,806 $ 678,698,282
========== ============== =========== =============
13
</TABLE>
<PAGE>
THE GABELLI GROWTH FUND
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period.
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2000 -------------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
---------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
OPERATING PERFORMANCE:
Net asset value, beginning of period $ 46.51 $ 35.40 $ 28.63 $ 24.14 $ 22.16 $ 19.68
---------- ---------- ---------- ---------- -------- ----------
Net investment income (loss) (0.12) (0.23) (0.07) (0.06) 0.03 0.05
Net realized and unrealized gain (loss)
on investments 3.34 16.50 8.58 10.34 4.27 6.39
---------- ---------- ---------- ---------- -------- ----------
Total from investment operations 3.22 16.27 8.51 10.28 4.30 6.44
---------- ---------- ---------- ---------- -------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income -- -- -- (0.00)(a) (0.02) (0.05)
In excess of net investment income -- -- -- (0.00)(a) -- --
Net realized gain on investments -- (5.16) (1.74) (5.79) (2.30) (3.91)
In excess of net realized gains -- -- (0.00)(a) (0.00)(a) -- --
---------- ---------- ---------- ---------- -------- ----------
Total distributions -- (5.16) (1.74) (5.79) (2.32) (3.96)
--------- ---------- ---------- ---------- -------- ----------
NET ASSET VALUE, END OF PERIOD $ 49.73 $ 46.51 $ 35.40 $ 28.63 $ 24.14 $ 22.16
========== ========== ========== ========== ======== =========
Total return+ 6.9% 46.3% 29.8% 42.6% 19.4% 32.7%
========== ========== ========== ========== ======== =========
RATIOS TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) $4,003,453 $3,158,448 $1,864,556 $943,985 $609,405 $ 533,041
Ratio of net investment income (loss)
to average net assets (0.54)%(b) (0.68)% (0.33)% (0.23)% 0.12% 0.22%
Ratio of operating expenses
to average net assets 1.33%(b) 1.37% 1.41% 1.43% 1.43% 1.44%
Portfolio turnover rate 35% 52% 40% 83% 88% 140%
</TABLE>
--------------------------------
+ Total return represents aggregate total return of a hypothetical $1,000
investment at the beginning of the period and sold at the end of the
period including reinvestment of dividends. Total return for the period of
less than one year is not annualized.
(a) Amount represents less than $0.005 per share.
(b) Annualized.
See accompanying notes to financial statements.
14
<PAGE>
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. (NO-LOAD)
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI 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. (NO-LOAD)
PORTFOLIO MANAGER: HOWARD F. WARD, CFA
GABELLI WESTWOOD EQUITY FUND _____________
Seeks to invest primarily in the common stock of seasoned companies believed to
have proven records and above average historical earnings growth. the Fund's
primary objective is capital appreciation. (NO-LOAD)
PORTFOLIO MANAGER: SUSAN M. BYRNE
GABELLI SMALL CAP GROWTH FUND ____________
Seeks to invest primarily in common stock of smaller companies (market
capitalizations less than $500 million) believed to have rapid revenue and
earnings growth potential. the Fund's primary objective is capital appreciation.
(NO-LOAD)
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI BLUE CHIP VALUE FUND ______________
Seeks long-term growth of capital through investment primarily in the common
stocks of well-established, high quality companies that have market
capitalizations of greater than $5 billion. (NO-LOAD)
PORTFOLIO MANAGER: BARBARA MARCIN, CFA
GABELLI WESTWOOD SMALLCAP EQUITY FUND ___
Seeks to invest primarily in smaller capitalization equity securities - market
caps of $1 billion or less. The Fund's primary objective is long-term capital
appreciation. (NO-LOAD)
PORTFOLIO MANAGER: LYNDA CALKIN, CFA
GABELLI WESTWOOD INTERMEDIATE BOND FUND __
seeks to invest in a diversified portfolio of bonds with various maturities. the
Fund's primary objective is total return. (NO-LOAD)
PORTFOLIO MANAGER: PATRICIA FRAZE
GABELLI EQUITY INCOME FUND ________________
Seeks to invest primarily in equity securities with above market average yields.
The Fund pays quarterly dividends and seeks a high level of total return with an
emphasis on income. (NO-LOAD)
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI 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.
(NO-LOAD)
PORTFOLIO MANAGERS: SUSAN M. BYRNE & PATRICIA FRAZE
GABELLI WESTWOOD MIGHTY MITES [SERVICE MARK] FUND _____
Seeks to invest in micro-cap companies that have market capitalizations of $300
million or less. The Fund's primary objective is long-term capital appreciation.
(NO-LOAD)
TEAM MANAGED: MARIO J. GABELLI, CFA,
MARC J. GABELLI, LAURA K. LINEHAN AND
WALTER K. WALSH
GABELLI VALUE FUND ________________________
Seeks to invest in securities of companies believed to be undervalued. The
Fund's primary objective is long-term capital appreciation.
MAX. SALES CHARGE: 51/2%
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI UTILITIES FUND ______________________
seeks to provide a high level of total return through a combination of capital
appreciation and current income. (NO-LOAD)
PORTFOLIO MANAGER: TIMOTHY O'BRIEN, CFA
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)
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI 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
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) PORTFOLIO MANAGER: JUDITH A. RANERI
GABELLI CASH MANAGEMENT SHARES OF
THE TREASURER'S FUND ______________________
Three money market portfolios designed to generate superior returns without
compromising portfolio safety. U.S. Treasury Money Market seeks to invest in
U.S. Treasury bills, notes and bonds. Tax Exempt Money Market seeks to invest in
municipal securities. domestic prime money market seeks to invest in prime
quality, domestic money market instruments. (NO-LOAD)
PORTFOLIO MANAGER: JUDITH A. RANERI
AN INVESTMENT IN THE ABOVE MONEY MARKET FUNDS IS NEITHER INSURED NOR GUARANTEED
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY GOVERNMENT AGENCY. ALTHOUGH
THE FUNDS SEEK TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT
IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUNDS.
GLOBAL SERIES
GABELLI 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.
(NO-LOAD) TEAM MANAGED: MARIO J. GABELLI, CFA,
MARC J. GABELLI AND IVAN ARTEAGA, CFA
GABELLI GLOBAL CONVERTIBLE SECURITIES FUND
Seeks to invest principally in bonds and preferred stocks which are
convertible into common stock of foreign and domestic companies. The Fund's
primary objective is total return through a combination of current income and
capital appreciation.
(NO-LOAD) PORTFOLIO MANAGER: HART WOODSON
GABELLI 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. (NO-LOAD)
PORTFOLIO MANAGER: MARC J. GABELLI
GABELLI 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.
(NO-LOAD)
PORTFOLIO MANAGERS: MARC J. GABELLI
AND CAESAR BRYAN
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 world-wide economic, financial and political factors.
(NO-LOAD) PORTFOLIO MANAGER: CAESAR BRYAN
GABELLI 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. (NO-LOAD) PORTFOLIO MANAGER: CAESAR BRYAN
THE SIX FUNDS ABOVE INVEST IN FOREIGN SECURITIES WHICH INVOLVES RISKS NOT
ORDINARILY ASSOCIATED WITH INVESTMENTS IN DOMESTIC ISSUES, INCLUDING CURRENCY
FLUCTUATION, ECONOMIC AND POLITICAL RISKS. THE FUNDS LISTED ABOVE ARE
DISTRIBUTED BY GABELLI & COMPANY, INC.
--------------------------------------------------------------------------------
TO RECEIVE A PROSPECTUS, CALL 1-800-GABELLI (422-3554). THE PROSPECTUS
GIVES A MORE COMPLETE DESCRIPTION OF THE FUND, INCLUDING FEES AND
EXPENSES. READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
VISIT OUR WEBSITE AT:
WWW.GABELLI.COM
OR, CALL:
1-800-GABELLI
1-800-422-3554 (BULLET) 914-921-5100 (BULLET) FAX: 914-921-5118
(BULLET) [email protected]
ONE CORPORATE CENTER, RYE, NEW YORK 10580
<PAGE>
THE GABELLI GROWTH FUND
One Corporate Center
Rye, New York 10580-1434
1-800-GABELLI
[1-800-422-3554]
FAX: 1-914-921-5118
HTTP://WWW.GABELLI.COM
E-MAIL: [email protected]
(Net Asset Value may be obtained daily by calling
1-800-GABELLI after 6:00 P.M.)
BOARD OF TRUSTEES
Mario J. Gabelli, CFA Karl Otto Pohl
CHAIRMAN AND CHIEF FORMER PRESIDENT
INVESTMENT OFFICER DEUTSCHE BUNDESBANK
GABELLI ASSET MANAGEMENT INC.
Felix J. Christiana Anthony R. Pustorino
FORMER SENIOR VICE PRESIDENT CERTIFIED PUBLIC ACCOUNTANT
DOLLAR DRY DOCK SAVINGS BANK PROFESSOR, PACE UNIVERSITY
Anthony J. Colavita Anthony Torna
ATTORNEY-AT-LAW HERZOG, HEINE & GEDULD, INC.
ANTHONY J. COLAVITA, P.C.
James P. Conn Anthonie C. van Ekris
FORMER CHIEF INVESTMENT OFFICER MANAGING DIRECTOR
FINANCIAL SECURITY ASSURANCE BALMAC INTERNATIONAL, INC.
HOLDINGS LTD.
John D. Gabelli
SENIOR VICE PRESIDENT
GABELLI & COMPANY, INC.
OFFICERS AND PORTFOLIO MANAGERS
Bruce N. Alpert Howard F. Ward, CFA
PRESIDENT AND TREASURER PORTFOLIO MANAGER
James E. McKee
SECRETARY
DISTRIBUTOR
Gabelli & Company, Inc.
CUSTODIAN, TRANSFER AGENT AND DIVIDEND 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 Growth Fund. It is not authorized for distribution to prospective
investors unless preceded or accompanied by an effective prospectus.
--------------------------------------------------------------------------------
GAB406Q200SR
[PHOTO OF MARIO GABELLI OMITTED]
THE
GABELLI
GROWTH
FUND
SEMI-ANNUAL REPORT
JUNE 30, 2000
