<PAGE>
THE GABELLI VALUE FUND INC.
One Corporate Center
Rye, New York 10580-1434
FIRST QUARTER REPORT - 1995
TO OUR SHAREHOLDERS:
Robust corporate profits and investors' growing confidence that
the Federal Reserve will successfully engineer a soft landing for the economy
propelled the stock market to record highs in the first quarter of 1995.
Large cap growth stocks, particularly in the technology and consumer
non-durable sectors, led the market. Broader market indices such as the
Value Line Composite (+5.2%) and small
<TABLE>
INVESTMENT RESULTS (a)
<CAPTION>
QUARTER
-----------------------------------------
1ST 2ND 3RD 4TH
YEAR
--- --- --- --- ----
<S> <C> <C> <C>
<C> <C>
1995: Net Asset Value.................... $11.41 --- --- ---
- ---
Total Return ..................... 8.8% --- --- ---
- ---
1994: Net Asset Value.................... $11.37 $11.55 $12.43
$10.49 $10.49
Total Return....................... (6.0)% 1.6% 7.6%
(2.7)% 0.0%
1993: Net Asset Value.................... $11.15 $11.93 $13.92
$12.09 $12.09
Total Return....................... 10.1% 7.0% 16.7%
1.5% 39.4%
1992: Net Asset Value.................... $10.40 $9.84 $10.04
$10.13 $10.13
Total Return....................... 9.7% (5.4)% 2.0%
6.4% 12.7%
1991: Net Asset Value.................... $9.51 $9.50 $9.57
$9.48 $9.48
Total Return....................... 11.8% (0.1)% 0.7%
2.5% 15.3%
1990: Net Asset Value.................... $9.23 $9.36 $8.19
$8.51 $8.51
Total Return....................... (2.4)% 1.4% (12.5)%
9.0% (5.6)%
1989: Net Asset Value.................... --- --- --- $9.58
$9.58
Total Return....................... --- --- --- 2.1% (b)
2.1% (b)
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURNS - MARCH 31, 1995 (a)
<S> <C>
1 Year....................................... 15.7%
....................................... 9.3%(c)
5 Year....................................... 13.8%
....................................... 12.5%(c)
Life of Fund (b)............................. 12.4%
....................................... 11.2%(c)
</TABLE>
<TABLE>
<CAPTION>
DIVIDEND HISTORY
- ---------------------------------------------------------
PAYMENT (EX) DATE RATE PER SHARE REINVESTMENT PRICE
- ----------------- -------------- ------------------
<S> <C> <C>
December 30, 1994 $ 1.60 $10.49
December 31, 1993 $ 2.036 $12.09
December 31, 1992 $ 0.553 $10.13
December 31, 1991 $ 0.334 $ 9.48
December 31, 1990 $ 0.420 $ 8.51
March 19, 1990 $ 0.120 $ 9.21
December 29, 1989 $0.0678 $ 9.58
<FN>
(a) Total return 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
operations on September 29, 1989. (c) Includes the effect of the maximum 5.5% sales
charge at beginning of period.
</TABLE>
<PAGE>
cap indices like the Russell 2000 (+4.6%) also performed well on an absolute
return basis, but lagged the more widely followed market yardsticks.
For the three months ended March 31, 1995, The Gabelli Value Fund Inc.'s
net asset value increased 8.8% to $11.41 per share from $10.49 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 15.7% compared to the 15.6% return in the S&P 500 Index over the
same period.
The Value Fund's total return from inception on September 29, 1989
through March 31, 1995 is 90.0%, which reflects an average annual total
return of 12.4% assuming reinvestment of all dividends and distributions.
The five year total return of the Fund for the period ended March 31, 1995 is
90.7%, which equates to a 13.8%average annual total return versus the 11.4%
return in the S&P500 Index over the same period. On March 31, 1995 our
shareholder base is at 40,142 shareholders and total net assets are $463.0
million.
COMMENTARY
The Market
- ----------
We were pleasantly surprised by the market's strength in the
first quarter. Corporate earnings continued to exceed consensus expectations
with some signs of a slowing economy. Federal Reserve Chairman Alan
Greenspan hinted that further short-term rate hikes may not be necessary.
Long bonds rallied on the news, providing an additional tailwind for
equities.
With this strong quarter behind us, we look to the future. Our
concerns include an anemic dollar that central bank intervention alone may
not be able to cure. Will Doctor Greenspan, however reluctantly, be forced
to administer an interest rate booster shot to prop up the greenback? We
can't ignore the possibility of more inflation than is currently anticipated.
Raw materials prices, oil and gold are rising again. Also, all may not be
as quiet as it seems on the labor front. Finally, our distrust of strong
consensus opinion makes us cautious. At current levels, the market may
already be fully discounting all the good news.
A New Era of Global Consolidation
- ---------------------------------
On the positive side of the ledger, accelerating merger and
acquisition activity in a broad range of industries is once again focusing
Wall Street's attention on value. In our 1994 Annual Report, we discussed
the dawning of a new era of strategic global consolidation. Our thesis is
that in an increasingly competitive global business environment, corporate
managements here and abroad are recognizing that extending product lines and
building international distribution systems are critical to growth, if not
survival.
2
<PAGE>
The necessary financial ingredients are in place. The world is
full of willing lenders, equity is a viable currency, and there are still a
lot of attractive franchises that are far cheaper to buy than build. Also,
the weak dollar makes shopping for businesses in the U.S. stock market a real
bargain for European and Japanese companies. Capital gains tax relief in the
U.S. would help further incentivize sellers.
We also opined that General Electric's (GE - $54.125 - NYSE)
unsolicited bid for Kemper Corporation (KEM - $40.375 - NYSE) signalled the
re-emergence of the hostile tender offer. We believe deals are going to be
aggressively pursued regardless of target companies' willingness to politely
negotiate. Our opinions are being validated by a surge in hostile bids.
Already in 1995, we have seen six unsolicited bids for companies totalling
more than $20 billion. This compares to approximately $24 billion in hostile
bids for all of 1994.
This dynamic has a powerful impact on investor perception.
Ingersoll Rand's (IR - $32.875 - NYSE) hostile bid for Clark Equipment
Company (CKL - $82.50 - NYSE) in late March, almost single-handedly sparked a
sharp rally in cyclical stocks. Investors who had been rotating out of
industrial companies due to expectations of decelerating earnings began
positively re-assessing this sector on the basis of cash flow and long-term
strategic values.
How does this impact our Fund? As cash flow oriented value
investors focusing on dominant franchise companies, we expect to benefit in
two ways from ongoing global consolidation. Firstly, we think our portfolio
represents an excellent shopping list for corporate bargain hunters. We
expect to move more of our portfolio inventory over the next several years.
Secondly, as deal flow accelerates, investors' focus shifts from net earnings
to cash flow (a much better barometer of business worth), helping others
"discover" our type of value. This will serve as a rising tide that should
lift many of the boats in our portfolio.
Taking Advantage of the Dollar
- ------------------------------
While the weak dollar is problematic for certain sectors of the
U.S. economy and the broad stock market, it is a boon for American
manufacturers with "world class" products and well developed international
distribution systems. Ten years ago, smart investors avoided companies that
competed with Japan. Today, due in part to the cheap dollar versus the yen,
those same smart folks are seeking out efficient U.S. companies that are
going head to head against the Japanese. Auto manufacturers like General Moto
rs Corporation (GM - $44.25 - NYSE), telecommunications equipment makers like
AT&T Corporation (T - $51.75 - NYSE) and agricultural equipment companies
like Deere &Company (DE - $81.25 - NYSE) are some of the more direct
beneficiaries.
I Have Just One Word for You, Edgar: Entertainment!
- ---------------------------------------------------
As of this writing, Seagram Company Ltd. (VO - $31.75 - NYSE) is
expected to announce the sale of its 25% ownership position in E.I. du Pont
de Nemours (DD - $60.50 - NYSE) and the purchase of a majority stake in MCA,
the filmed entertainment producer and distributor currently owned by Japan's
Matsushita Electric (MC - $158.00 - NYSE). We are reminded of the famous
line in Mike Nichols' award
3
<PAGE>
winning film THE GRADUATE: "I have just one word for you, Benjamin: Plastics!"
Someone has convinced Seagram's CEO Edgar Bronfman that the future is in
filmed entertainment, not chemicals or plastics. No details on the proposed
transaction have been released and if it does transpire, only time will tell
if it will ultimately be a box office blockbuster for Seagrams' shareholders.
However, as interactive media becomes a reality worldwide, we do see
unparalleled growth potential for entertainment software providers. It
underscores our belief that portfolio companies like Time Warner Inc.
(TWX - $37.75 - NYSE) and Viacom Inc. (VIA - $45.75 - ASE; VIA'B - $44.75 -
ASE) are materially undervalued at their current prices.
LET'S TALK STOCKS
The following are stock specifics on selected holdings of your Fund's
investments. Favorable earnings before interest, taxes, depreciation and
amortization (EBITDA) prospects do not necessarily translate into higher
stock prices, but they do express a positive trend which we believe will
develop over time.
Time Warner Inc. (TWX - $37.75 - NYSE; CONV. SUB. DEB. 8.75% - $100.375) is
one of the largest diversified media and publishing companies in the world
with a market capitalization of over $15 billion. Warner Brothers Studios,
the company's filmed entertainment subsidiary, was ranked number one at the
box office for the third consecutive year. Time Warner is restructuring its
business into copyright and creativity (notably publishing, music and filmed
entertainment) on one side and distribution (mostly cable) on the other. The
company is strongly positioned to benefit from the telecommunications
revolution and the worldwide demand for software. Under the aegis of Gerald
M. Levin, investors can expect significant returns.
American Express Company (AXP - $34.875 - NYSE), founded in 1850, is a
diversified travel and financial services company operating in 160 countries
around the world. The company is best known for its American Express Card.
Less recognized, however, are its other operations such as Minneapolis-based A
merican Express Financial Advisors, Inc. (formerly IDS Financial Services),
which sells financial products ranging from mutual funds to annuities. In
1993, American Express completed the sale of The Boston Company, Inc. and the
brokerage and asset management divisions of Shearson Lehman Brothers Holdings
Inc. The former went to Mellon Bank Corporation, while the latter joined
Primerica's Smith Barney unit. In 1994, Harvey Golub, Chairman and CEO,
continued to demonstrate his desire to refocus AXP on its core charge card
and travel services businesses by spinning off Lehman Brothers Holdings Inc.
(LEH - $18.00 - NYSE). This divestiture places American Express in a strong
position to focus on growing its earnings at a double digit rate over the
balance of this decade.
General Motors Corporation (GM - $44.25 - NYSE) is benefitting from a sharp
recovery in North American auto sales. In 1994, its North American
operations were profitable for the first time in four years and international
profits continue to grow. Additionally, with Jack Smith at the helm, GM is
improving the style and quality of its cars, rationalizing its production
processes and greatly reducing its costs. With peak earning power of over
$10 per share, GM remains a core holding.
Media General, Inc. (MEG'A - $32.25 - ASE), our largest holding, representing
close to 16% of the Fund, is a Richmond, Va. - based company with interests
in newspapers (Richmond, Va, Tampa, Fl. and
4
<PAGE>
Winston-Salem, N.C.), TV stations (Tampa, Charleston, S.C. and Jacksonville,
Fl.) and cable television (Fairfax County, Va). With a cyclical recovery in
the operations and values of media properties, the defense of the Richmond
franchise from encroachment from the Washington Post and the pickup in
transactions in the cable arena, this company is poised for a rebound.
Viacom Inc. (VIA - $45.75 - ASE; VIA'B - $44.75 - ASE) has evolved into one
of the world's dominant media companies. Following its recent acquisitions
of Paramount Communications and Blockbuster Entertainment, the company is now
selling non-core assets and focusing on the global expansion of its media
franchises.
Chris-Craft Industries, Inc. (CCN - $33.375 - NYSE) is primarily engaged in
television broadcasting through its roughly 70% ownership of BHC
Communications, Inc. (BHC - $73.75 - ASE). BHC owns and operates independent
TV stations in Los Angeles (KCOP) and Portland, Oregon (KPTV). BHC controls
50% of United Television, Inc. (UTVI - $61.50 - NASDAQ) an operator of an
NBC-affiliated TV station, an ABC affiliate and three independent outlets.
BHC has entered into a partnership agreement with Paramount Communications,
Inc. to form and launch a new, fifth television network called United
Paramount Television Network. With about $1.5 billion in marketable
securities and cash, derived from the 1993 disposition of Time Warner
securities, CCN is strongly positioned to expand its operations. CCN is the
eighth largest TV station group owner in the U.S., covering almost 20% of TV
households.
Hilton Hotels Corporation (HLT - $74.125 - NYSE) is a major lodging and
gaming company. Hilton owns and manages about 240 hotels throughout the
United States and franchises the Hilton name to other hotel operators.
Hilton's hotels include the Waldorf-Astoria (New York), the Beverly Hilton
(Los Angeles), the Chicago Hilton and a 50% interest in Hilton Hawaiian
Village. HLT's international hotel business is operated under the Conrad
Hotels name. Hotels bearing the Hilton name outside the U.S. are properties
of the British company Ladbroke Group, plc (LADGY - $2.745 - NASDAQ). HLT
operates gaming properties, primarily in Nevada with two casino/hotels in Las
Vegas, two in Reno and one in Laughlin. HLT's Nevada properties have about
11,000 rooms and more than 350,000 square feet of gaming space. HLT has
engaged an investment banking firm to study strategic alternatives for
enhancing shareholder value. Such alternatives include the sale of the entire
company, a spin-off of one or more businesses, recapitalization, a business
combination or a share repurchase program. The recent announcement by Promus
Companies of a plan to spin-off its hotel properties (Embassy Suites and
Hampton Inns) to its shareholders, retaining its Harrah's casino/hotels, may
provide a model for Hilton to follow.
Tele-Communications, Inc. (TCOMA - $21.00 - NASDAQ) We are bullish on the
prospects for cable television in 1995 and beyond. TCI remains the largest
cable television multiple system operator (MSO) in the U.S., serving some
11.5 million subscribers. Regulation historically has driven the outlook for
cable stocks. With a newly-elected, deregulation-minded Congress in place,
the outlook is once again improving. Recently proposed legislation which
provides for eliminating rate regulation and cross ownership restrictions of
cable television systems would be a significant catalyst for cable if various
elements fall into place this year. We will be tracking this process
closely. TCI is well positioned for the future. In 1994, in association with
Comcast Corporation (CMCSA - $15.5625 - NASDAQ) and Cox Communications,
TCI
established a joint venture and strategic alliance with Sprint Corporation
(FON - $30.25 - NYSE) to provide both wired and wireless telephone services
in competition with the local
5
<PAGE>
telephone industry utilizing TCI's cable infrastructure and Sprint's well
recognized national brand name. The joint venture is one of the largest
bidders for new PCS spectrum and looks to emerge as one of the best
positioned competitors to the cellular telephone duopoly. TCI has recently
announced various financial restructuring moves which we expect will benefit
the price of the stock this year.
MINIMUM INITIAL INVESTMENT - $1,000
The Fund's minimum initial investment is now $1,000. IRAs may be
established with a minimum initial investment of $250. No initial minimum is
required for those establishing an Automatic Investment Plan. The Fund
imposes a maximum front-end sales charge of 5.5% and is available through
many brokerage firms.
GABELLI U.S. TREASURY MONEY MARKET FUND
Shareholders of any of the Gabelli Funds may invest in The Gabelli U.S.
Treasury Money Market Fund with an initial investment of $3,000 or more. The
Fund provides checkwriting and exchange privileges. The Fund's expenses are
currently capped at .30% of average net assets, making it one of the most
attractive U.S. Treasury-only money market funds. With dividends that are
exempt from state and local income taxes in all states, the Fund is an
excellent vehicle in which to store idle cash. Call us at 1-800-GABELLI
(1-800-422-3554) for a prospectus which gives a more complete description of
the Fund, including management fees and expenses. Read it carefully before
you invest or send money.
IN CONCLUSION
After a flat 1994, we are delighted the Fund has generated
strong returns in the first quarter of 1995. We remain cautious regarding
the short-term prospects for the broad market. With accelerating merger and
acquisition activity worldwide, we do expect investors to focus more
intensely on value to the general advantage of our portfolio.
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 GABVX. Please call us during
the day for further information.
6
<PAGE>
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,
/s/ MARIO J. GABELLI
MARIO J. GABELLI, CFA
President and
Chief Investment Officer
May 1, 1995
TOP TEN HOLDINGS
MARCH 31, 1995
----------------
Media General, Inc General Electric Company
Time Warner Inc Hilton Hotels Corporation
Chris-Craft Industries, Inc. General Motors Corporation
Tele-Communications, Inc. Viacom Inc.
American Express Company Century Telephone Enterprises, Inc.
7
<PAGE>
<TABLE>
THE GABELLI VALUE FUND INC.
PORTFOLIO OF INVESTMENTS -- MARCH 31, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<CAPTION>
MARKET
SHARES VALUE (c)
- ------------ -------------
<C> <S> <C>
COMMON STOCKS -- 88.2%
CABLE -- 21.8%
50,000 Home Shopping Network, Inc. +....... $ 393,750
2,245,000 Media General, Inc., Class A........ 72,401,250
200,000 Multimedia, Inc., New +............. 7,575,000
980,000 Tele-Communications, Inc., Class A+. 20,580,000
-------------
100,950,000
-------------
CONSUMER PRODUCTS -- 12.0%
350,000 American Brands, Inc. .............. 13,737,500
140,000 Carter-Wallace, Inc. ............... 1,662,500
360,000 General Electric Company............ 19,485,000
25,000 Procter & Gamble Company............ 1,656,250
140,000 Ralston Purina Group................ 6,685,000
75,000 Syratech Corporation +.............. 1,368,750
60,000 Tambrands Inc. ..................... 2,677,500
430,000 Whitman Corporation................. 8,223,750
-------------
55,496,250
-------------
BROADCASTING -- 10.2%
130,000 BHC Communications, Inc., Class A+.. 9,587,500
781,770 Chris-Craft Industries, Inc. ....... 26,091,574
110,000 Liberty Corporation................. 3,025,000
16,000 LIN Television Corporation +........ 532,000
100,000 Turner Broadcasting Systems, Inc.,
Class A............................ 1,700,000
100,000 United Television, Inc. +........... 6,150,000
-------------
47,086,074
-------------
TELECOMMUNICATIONS -- 7.1%
230,000 AT&T Corporation.................... 11,902,500
210,000 BCE Inc. ........................... 6,483,750
10,000 Cable & Wireless plc, Sponsored
ADR................................ 188,750
76,000 C-TEC Corporation +................. 1,615,000
40,000 Globalstar Telecommunications +..... 630,000
28,000 Lincoln Telecommunications
Company............................ 427,000
12,000 Motorola, Inc. ..................... 655,500
60,000 Southern New England
Telecommunications Corporation..... 2,002,500
300,000 Sprint Corporation.................. 9,075,000
-------------
32,980,000
-------------
FINANCIAL SERVICES -- 6.0%
580,000 American Express Company............ 20,227,500
250,000 Lehman Brothers Holdings Inc. ...... 4,500,000
90,000 Salomon Inc. ....................... 3,048,750
-------------
27,776,250
-------------
WIRELESS COMMUNICATIONS -- 5.3%
160,000 AirTouch Communications Inc. +...... 4,360,000
465,000 Century Telephone Enterprises,
Inc. .............................. 14,124,375
33,500 LIN Broadcasting Corporation +...... 4,078,625
30,000 NEXTEL Telecommunications, Inc. +... 408,750
40,000 Telephone and Data Systems, Inc. ... 1,580,000
-------------
24,551,750
-------------
HOTELS AND CASINOS -- 5.0%
200,000 Aztar Corporation +................. 1,775,000
30,000 Circus Circus Enterprises, Inc. +... 967,500
236,000 Hilton Hotels Corporation........... 17,493,500
100,000 Mirage Resorts, Incorporated +...... 2,800,000
-------------
23,036,000
-------------
<CAPTION>
MARKET
SHARES VALUE (c)
- ------------ -------------
<C> <S> <C>
INDUSTRIAL EQUIPMENT AND
SUPPLIES -- 4.7%
50,000 Ampco-Pittsburgh Corporation........ $ 393,750
100,000 AptarGroup, Inc. ................... 2,862,500
13,000 Brad Ragan, Inc. +.................. 422,500
65,000 Deere & Company..................... 5,281,250
280,000 Navistar International Corporation+. 3,570,000
15,000 OHM Corporation +................... 151,875
175,000 Pittway Corporation, Class A........ 8,115,625
19,000 Sequa Corporation, Class A +........ 555,750
20,000 Teledyne, Inc. +.................... 525,000
-------------
21,878,250
-------------
ENTERTAINMENT -- 4.1%
160,000 Time Warner Inc. ................... 6,040,000
195,000 Viacom Inc., Class A +.............. 8,921,250
90,000 Viacom Inc., Class B +.............. 4,027,500
-------------
18,988,750
-------------
AUTOMOTIVE -- 3.3%
350,000 General Motors Corporation.......... 15,487,500
-------------
BUSINESS SERVICES -- 1.3%
79,250 Berlitz International, Inc., New+... 1,168,937
135,000 Gerber Scientific, Inc. ............ 1,940,625
139,000 Nashua Corporation.................. 2,693,125
-------------
5,802,687
-------------
METALS AND MINING -- 1.2%
75,000 Barrick Gold Corporation............ 1,875,000
60,000 Echo Bay Mines Ltd. ................ 622,500
40,000 Homestake Mining Company............ 740,000
65,000 Placer Dome Inc. ................... 1,584,375
200,000 Royal Oak Mines Inc. +.............. 662,500
-------------
5,484,375
-------------
PUBLISHING -- 1.0%
40,000 McGraw-Hill, Inc. .................. 2,870,000
208,000 Western Publishing Group, Inc. +.... 1,768,000
-------------
4,638,000
-------------
DIVERSIFIED INDUSTRIAL -- 1.0%
3,900 Brady (W.H.) Co., Class A
(non-voting)....................... 206,700
40,000 Culbro Corporation +................ 600,000
217,500 Katy Industries, Inc. .............. 2,093,437
54,000 Lamson & Sessions Co. +............. 310,500
35,000 Trinity Industries, Inc. ........... 1,308,125
-------------
4,518,762
-------------
HEALTH CARE -- 0.9%
169,000 Marion Merrell Dow, Inc. ........... 4,182,750
-------------
ENERGY -- 0.8%
14,500 Atlantic Richfield Company.......... 1,667,500
30,000 Burlington Resources Inc. .......... 1,222,500
520,000 Kaneb Services, Inc. +.............. 975,000
-------------
3,865,000
-------------
AUTOMOTIVE: PARTS AND
ACCESSORIES -- 0.8%
25,000 Handy & Harman...................... 412,500
50,000 Johnson Controls, Inc. ............. 2,543,750
50,000 Quaker State Corporation............ 687,500
-------------
3,643,750
-------------
</TABLE>
8
<PAGE>
<TABLE>
THE GABELLI VALUE FUND INC.
PORTFOLIO OF INVESTMENTS (CONTINUED) -- MARCH 31, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<CAPTION>
MARKET
SHARES VALUE (c)
- ------------ -------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
FOOD AND BEVERAGE -- 0.6%
33,333 Ralcorp Holdings Inc. +............. $ 791,659
270,000 Ralston-Continental Baking Group+... 1,012,500
35,000 Seagram Company Ltd. ............... 1,111,250
-------------
2,915,409
-------------
RETAIL -- 0.6%
82,000 Hartmarx Corporation +.............. 440,750
150,000 Neiman-Marcus Group, Inc.,.......... 2,137,500
-------------
2,578,250
-------------
SPECIALITY CHEMICAL -- 0.4%
70,000 Ferro Corporation................... 1,776,250
-------------
AVIATION: PARTS AND SERVICE -- 0.1%
34,000 Hudson General Corporation +........ 539,750
-------------
TOTAL COMMON STOCKS................................. 408,175,807
-------------
COMMON STOCK WARRANTS
AND RIGHTS -- 0.1%
ENTERTAINMENT -- 0.1%
10,000 Viacom Inc., Contingent Value
Rights, expires 07/07/1995 +....... 19,375
149,200 Viacom Inc., Variable Common
Rights, expires 09/29/1995 +....... 177,175
25,000 Viacom Inc., Class B, Warrants,
expires 06/06/1997 +............... 81,250
20,000 Viacom Inc., Class B, Warrants,
expires 06/06/1999 +............... 102,500
-------------
TOTAL COMMON STOCK WARRANTS
AND RIGHTS......................................... 380,300
-------------
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE (c)
- ------------ -------------
<C> <S> <C>
CORPORATE BONDS -- 5.2%
ENTERTAINMENT -- 5.2%
$ 22,000,000 Time Warner Inc., Conv. Sub. Deb.,
8.750% due 01/10/2015.............. $ 22,082,500
2,187,000 Viacom Inc., Ex. Sub. Deb.,
8.000% due 07/07/2006.............. 1,980,602
-------------
TOTAL CORPORATE BONDS............................... 24,063,102
-------------
U.S. TREASURY BILL -- 4.7%
22,000,000 5.650% ++ due 05/11/1995............ 21,859,717
-------------
REPURCHASE AGREEMENT -- 1.6%
7,614,000 Agreement with Carroll McEntee,
6.220% due 04/03/1995 (a).......... 7,614,000
-------------
TOTAL INVESTMENTS%
(COST $385,802,582) (B)....................... 99.8 462,092,926
OTHER ASSETS
AND LIABILITIES (NET).......................... 0.2 955,575
--- -------------
NET ASSETS APPLICABLE%
TO 40,581,337 SHARES OF
COMMON STOCK OUTSTANDING.................... 100.0 $ 463,048,501
===== =============
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE....................................
$ 11.41
=============
MAXIMUM OFFERING PRICE PER SHARE
($11.41/.945, BASED ON MAXIMUM
SALES CHARGE OF 5.5% OF THE OFFERING
PRICE AT MARCH 31, 1995)...........................
$ 12.07
=============
- ------------------------------
<FN>
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
(a) Agreement dated 03/31/1995, to be repurchased at $7,617,947, collateralized by
$7,343,300 U.S. Treasury Bonds, 7.875% due
04/15/1998 (value $8,074,785).
(b) Aggregate cost for Federal income tax purposes was $386,123,488. Net unrealized
appreciation for Federal income tax purposes
was $75,969,438 (gross unrealized appreciation was $92,210,398 and gross
unrealized depreciation was $16,240,960).
(c) Securities traded on a national securities exchange are valued at the last sale price
as of the close of business on the day
the securities are being valued. Securities for which no sale was reported on that
day and over-the-counter securities are
valued at the mean between the last reported bid and asked prices. U.S.
Government obligations and other debt instruments
with 60 days or less to maturity are valued at amortized cost which approximates
market value. Short-term investments with
greater than 60 days to maturity are valued at the highest independent bid price as
quoted by market makers.
</TABLE>
9
<PAGE>
THE GABELLI VALUE FUND INC.
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.)
BOARD OF DIRECTORS
Mario J. Gabelli, CFA Robert J. Morrissey
Chairman and Chief Attorney-at-Law
Investment Officer Morrissey & Hawkins
Gabelli Funds, Inc.
Bill Callaghan Karl Otto Pohl
President Former President
Bill Callaghan Associates Deutsch Bundesbank THE
Felix J. Christiana Anthony R. Pustorino
Former Senior Vice President Certified Public Accountant
Dollar Dry Dock Savings Bank Professor, Pace University
Anthony J. Colavita
GABELLI
Attorney-at-Law
Anthony J. Colavita, P.C.
OFFICERS
VALUE
Mario J. Gabelli, CFA Bruce N. Alpert
President and Chief Chief Operating Officer,
Investment Officer Vice President and
Treasurer
FUND
J. Hamilton Crawford, Jr.
Secretary
CUSTODIAN
Boston Safe Deposit and Trust Company
INC.
TRANSFER AGENT AND DIVIDEND AGENT
State Street Bank and Trust Company
LEGAL COUNSEL
Willkie Farr & Gallagher
UNDERWRITER
Gabelli & Company, Inc.
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These financial statements are submitted
for the general information of the
shareholders of The Gabelli Value Fund Inc.
They are not authorized for distribution
to prospective investors unless preceded FIRST QUARTER REPORT
or accompanied by an effective prospectus. MARCH 31, 1995
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