THE GABELLI VALUE FUND INC.
FIRST QUARTER REPORT
MARCH 31, 2000
[Graphic of 4 stars omitted]
MORNINGSTAR RATED(TM) GABELLI VALUE FUND 4 STARS OVERALL
AND FOR THE THREE AND TEN-YEAR PERIODS ENDED
03/31/00 AMONG 3571 AND 786 DOMESTIC EQUITY FUNDS,
RESPECTIVELY, AND THREE STARS FOR THE FIVE-YEAR PERIOD ENDED
03/31/00 AMONG 2283 DOMESTIC EQUITY FUNDS.
TO OUR SHAREHOLDERS,
In the first quarter of 2000, we continued to experience a "have and have
not" stock market. Until the last week of the quarter, when we saw a rotation
out of the technology sector and into value sectors, so called "new economy"
stocks flourished, while "old economy" stocks languished or retreated. Despite
the late sell-off, the technology-heavy Nasdaq Composite Index and the small cap
growth-oriented Russell 2000 Index finished with solid gains. However, the
Standard & Poor's 500 Index closed the quarter only modestly higher, while the
Dow Jones Industrial Average declined.
Momentum investing--buying stocks that are rising in price--continued to
be considerably more rewarding than owning stocks representing good fundamental
values. We do not know how much longer this trend will continue. However, we see
exceptional opportunity for selective value investors in a market that has
shunned high quality companies in a wide range of healthy industries.
INVESTMENT PERFORMANCE
For the first quarter ended March 31, 2000, The Gabelli Value Fund's (the
"Fund") total return was (3.86)%. The Standard & Poor's ("S&P") 500 Index, Value
Line Composite and Russell 2000 Indices had total returns of 2.29%, 4.03% and
7.08%, respectively, over the same period. Each index is an unmanaged indicator
of stock market performance. The Fund was up 17.96% over the trailing
twelve-month period. The S&P 500, Value Line Composite and Russell 2000 Indices
rose 17.93%, 19.47% and 37.29%, respectively, over the same twelve-month period.
For the ten-year period ended March 31, 2000, the Fund's total return
averaged 18.39% annually versus average annual returns of 18.82%, 14.34% and
14.44% for the S&P 500, Value Line Composite and Russell 2000 Indices,
respectively. Since inception on September 29, 1989 through March 31, 2000, the
Fund had a cumulative total return of 438.98%, which equates to an average
annual total return of 17.38%.
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PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. Morningstar proprietary
ratings reflect historical risk adjusted performance as of March 31, 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.
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INVESTMENT RESULTS (a)
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Quarter
-----------------------------------------
1st 2nd 3rd 4th Year
--- --- --- --- ----
2000: Net Asset Value $18.70 -- -- -- --
Total Return (3.9)% -- -- -- --
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1999: Net Asset Value $17.29 $19.58 $18.93 $19.45 $19.45
Total Return 7.5% 13.2% (3.3)% 12.1% 31.9%
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1998: Net Asset Value $16.43 $16.94 $14.71 $16.08 $16.08
Total Return 14.9% 3.1% (13.2)% 19.8% 23.2%
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1997: Net Asset Value $11.63 $14.11 $15.73 $14.30 $14.30
Total Return 1.0% 21.3% 11.5% 8.6% 48.2%
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1996: Net Asset Value $12.88 $13.08 $12.63 $11.52 $11.52
Total Return 10.9% 1.6% (3.4)% 0.0% 8.7%
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1995: Net Asset Value $11.41 $11.75 $12.81 $11.61 $11.61
Total Return 8.8% 3.0% 9.0% 0.3% 22.5%
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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%
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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%
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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%
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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%
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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)%
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1989: Net Asset Value -- -- -- $9.58 $9.58
Total Return -- -- -- 2.1%(b) 2.1%(b)
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Average Annual Returns - March 31, 2000 (a)
-------------------------------------------
1 Year ..................................... 17.96%
..................................... 11.45%(c)
5 Year ..................................... 23.18%
........................................... 21.81%(c)
10 Year .................................... 18.39%
..................................... 17.72%(c)
Life of Fund (b) ........................... 17.38%
..................................... 16.75%(c)
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Dividend History
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Payment (ex) Date Rate Per Share Reinvestment Price
- ----------------- -------------- ------------------
December 27, 1999 $1.720 $18.98
December 28, 1998 $1.490 $15.54
December 29, 1997 $2.720 $14.01
December 27, 1996 $1.110 $11.57
December 27, 1995 $1.230 $11.56
December 30, 1994 $1.600 $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 $0.068 $ 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 September 29,
1989. (c) Includes the effect of the maximum 5.5% sales charge at beginning of
period.
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MULTI-CLASS SHARES
In March of 2000, we introduced new classes of shares of the Gabelli Value
Fund. The original shares have been redesignated as Class A Shares, while the
new classes will be known as Class B and Class C Shares and incorporate
contingent deferred sales charges upon redemption within certain time periods.
The new share classes provide alternative options for investing in the Value
Fund through brokers who have entered into selling agreements with our
distributor. For the month ended March 31, 2000, the Gabelli Value Fund Class B
and Class C Shares both returned 3.43%. The Class B and Class C Shares each
ended the quarter with net asset values of $18.70.
WHAT WE DO
The success of momentum investing in recent years and investors' desire
for instant gratification have combined to make value investing appear dull. At
the risk of being dull, we will once again describe the "boring" value approach
that has seen us through both good and bad markets over the last ten years at
The Gabelli Value Fund and for over 23 years at Gabelli Asset Management
Company. In past reports, we have tried to articulate our investment philosophy
and methodology. The accompanying graphic further illustrates the interplay
among the four components of our valuation approach.
[Graphic omitted]
Pyramid text as follows:
EPS
PMV
MANAGEMENT
CASH FLOW
RESEARCH
Our focus is on free cash flow: earnings before interest, taxes,
depreciation and amortization ("EBITDA") minus the capital expenditures
necessary to grow the business. We believe free cash flow is the best barometer
of a business' value. Rising free cash flow often foreshadows net earnings
improvement. We also look at earnings per share trends. Unlike Wall Street's
ubiquitous earnings momentum players, we do not try to forecast earnings with
accounting precision and then trade stocks based on quarterly expectations and
realities. We simply try to position ourselves in front of long term earnings
uptrends. In addition, we analyze on and off balance sheet assets and
liabilities such as plant and equipment, inventories, receivables, and legal,
environmental and health care issues. We want to know everything and anything
that will add to, or detract from, our private market value ("PMV") estimates.
Finally, we look for a catalyst: something happening in the company's industry
or indigenous to the company itself that will surface value. In the case of the
independent telephone stocks, the catalyst is a regulatory change. In the
agricultural equipment business, it is the increasing worldwide demand for
American food and feed crops. In other instances, it may be a change in
management, sale or spin-off of a division, or the development of a profitable
new business.
Once we identify stocks that qualify as fundamental and conceptual
bargains, we then become patient investors. This has been a proven long term
method for preserving and enhancing wealth in the U.S. equity markets. At the
margin, our new investments are focused on businesses that are well-managed and
will benefit from sustainable long term economic dynamics. These include macro
trends, such as the globalization of the market in filmed entertainment and
telecommunications, and micro trends, such as an increased focus on productivity
enhancing goods and services.
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COMMENTARY
THE PERILS OF PAULINE
In each episode of the old movie serial, "The Perils of Pauline", the
heroine faced certain doom until a hero suddenly appeared to save the day.
Through most of the first quarter of 2000, equities were imperiled by rising
short-term interest rates and the perception that Federal Reserve Chairman Alan
Greenspan was determined to restrain the stock market as well as the economy.
With equities dangling from a cliff, a hero in the form of declining market
interest rates (bond yields) rescued stocks from a sharp correction that
appeared ready to turn into a full scale bear market.
Of course, in the old movie shorts, as soon as Pauline escaped from one
life-threatening predicament, she was thrust into another. Over the short term,
we suspect the stock market will also face a series of new dangers. The Federal
Reserve should continue to hike short-term interest rates, eventually killing
the nascent bond market rally and putting pressure back on stocks. Valuations in
the technology sector also present a risk to the market. If some of the
technology "bellwethers" fall short of rather grand earnings expectations, we
could see a sharp correction that would drag down the market indices. There is
also the uncertainty of an election year. Will a Bush victory lead to tax cuts
that will help sustain consumer spending or will a Gore triumph dash the hopes
of consumers and investors counting on tax relief?
There are plenty of potential heroes that could once again rescue the
market. Corporate earnings growth is strong and, with synchronized global
growth, may get stronger. If we see evidence of economic deceleration in the
second half of the year, the Fed may release the monetary brakes and market
interest rates could come down further. We should continue to see deals,
particularly in out-of-favor industries where many great companies have become
irresistible business bargains. Deals may finally prop up the value sector of
the market. Finally, investors love happy endings. Over the last several years,
whenever stocks have stumbled investors have rushed in to lift them to safety.
We are always attuned to the economic and stock market melodrama. However,
we try to keep our shareholders out of harm's way by investing in quality
companies trading at a discount to their "real world" economic value. This may
be dull and periodically not particularly productive. However, over the Fund's
history, this approach has produced rewarding returns.
OLD ECONOMY, NEW ECONOMY
The financial press and market observers are adept at developing
simplistic theories to explain market trends. Recently, the pundits have divided
the market into "old economy" and "new economy" stocks. The former are thought
to be worthless and the latter are perceived as almost priceless. A closer look
at the situation reveals the flaws in this current logic.
The so-called "new economy" stocks are primarily technology companies
developing new ways to distribute information, products, and services. Some are
fine companies with exceptional growth prospects. However, the "new economy"
superstars do not drill for oil, process chemicals, make household goods or
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food products, or manufacture automobiles. They do not knit sweaters or make
shoes. They do not build houses. They do not produce motion pictures or
television programs. They are simply building systems that make it possible for
"old economy" companies to provide these essential products and services more
efficiently and cost effectively. Will the best of the "new economy" companies
make money and, over the long term, enrich investors? Yes. Will the "old
economy" companies that harness the power of new technologies prosper and also
reward shareholders? Yes. Presently, investors can pay sky-high valuations for
"new economy" companies or scoop up high quality "old economy" stocks at deep
discounts.
Let me give you an example. General Motors, Ford, and Daimler Chrysler are
developing a business-to-business Internet network to streamline the procurement
of auto parts from original equipment manufacturers. Oracle, E-commerce (20%
owned by GM), and i2 Technologies are building the network and will help operate
it. We imagine they will profit in the process. But the automobile manufacturers
will also benefit substantially. The automakers estimate this new network could
shave as much as $2,000 from the cost of manufacturing a new automobile. This
should translate into lower automobile prices, increased demand, higher volume
and better earnings for these boring "old economy" companies.
Additionally, the automakers will own this network. Marked to market based
on valuations currently being given to "B2B" network companies, this could be an
incredibly valuable and still largely unrecognized asset. You can pay incredible
multiples for the stock of Oracle and i2 Technologies and you may continue to be
rewarded, albeit with the escalating risk that accompanies historically
unprecedented valuations. Or, you can buy the stock of GM for ten times earnings
and three times cash flow. We also note that GM has a substantial investment in
General Motors Hughes, a "new economy" company dominating the satellite
broadcasting business through its DirecTV division. If we back out the value of
GM's ownership in GM Hughes, the stock is even less expensive, trading at an
almost absurdly low price to earnings multiple and roughly 2.5 times cash flow.
GM is just one example of an "old economy" company employing "new economy"
technologies to its advantage. We believe "brick and mortar" retailers will do
well as they further develop "click and mortar" capabilities. Established
financial services companies should also do well as they introduce on-line
services. Once again, you have the option of paying up for the "new economy"
kids on the block or paying discount prices for established, high quality
companies that can and will prosper using new technologies.
THE ENVELOPE PLEASE
This quarter, our performance awards go to entertainment stocks such as
Seagram and GC Companies. Industrial companies Lamson & Sessions and Gentek
contributed nicely to returns. We enjoyed our stay at Hilton Group and Mirage
Resorts (which agreed to be acquired by MGM Grand), and were rewarded for
staying tuned to Rogers Communications.
A few of our old favorites stumbled slightly in the first quarter,
including broadcasters Chris-Craft and Liberty Corp. as well as equipment
manufacturer Navistar. We expect these stocks to improve in the future.
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TIME WARNER AND AOL--THE SHAPE OF DEALS TO COME
The impending marriage of Time Warner and America Online combines the old
economy with the new (product with distribution)--a merger trend that we believe
will gain momentum in the years ahead. Wall Street is struggling over how to
value the bride and the groom prior to the wedding. Analysts following AOL were
accustomed to looking primarily at top line revenue growth and making
assumptions regarding future operating margins. Analysts covering Time Warner
(including yours truly) looked primarily at cash flow growth, and now must come
up with a different yardstick to assess value.
As evidenced by the decline in both stocks shortly after the merger was
announced, both camps were disappointed with the deal. AOL loyalists did not
like the fact that the addition of Time Warner would slow revenue growth and
Time Warner enthusiasts saw healthy operating profits being diluted. Both stocks
have rebounded since, and as we write, Time Warner is at a 52-week high.
Backing away from the problem of valuing two very different companies and
taking a longer-term view, the marriage of quality products and terrific
distribution makes economic sense. Sometimes it will take the form of mutually
rewarding joint venture arrangements. But, we also expect to see more deals with
old and new economy companies finding synergistic partners. This trend should
further intensify already strong merger and acquisition activity, providing an
additional tailwind for value investors.
AN APPETITE FOR FOOD STOCKS
There is a degree of economic logic in the recent poor performance of
cyclical industrial companies. The Federal Reserve is committed to slowing the
economy, and if it succeeds, we may be seeing peak earnings for economically
sensitive companies. We are of the opinion that earnings will be better than
anticipated and that the sell-off in cyclical companies is overdone. That is why
we continue to own high quality cyclical stocks.
We see no economic justification for the poor performance of food stocks.
High quality brand name franchises including General Mills, Kellogg, Quaker
Oats, H. J. Heinz, Hershey Foods, Keebler Foods, Pepsico and Sara Lee all
declined this quarter, with some down quite sharply. We doubt that if economic
growth slows from 5.0% to 3.5%, consumers are going to reduce spending on food
or switch from brand name products to cheaper private label goods. "Honey, Gross
Domestic Product ("GDP") growth is now down to 3.5%. We better cut back on the
pickles and coffee cake, and instead of buying Pepsi, let's get that generic
cola."
Historically, food company earnings have not been particularly sensitive
to modestly slower economic growth, and in general, earnings for food companies
have been relatively stable and should stay that way. Food stocks are not down
because of any fundamental change in the business or disappointing earnings. In
our opinion, food stocks are simply a casualty of investors' general disregard
for any industry group lacking the rapid growth potential of technology stocks.
Currently, you can load up on some of the best companies in the food business at
very attractive valuations. Food for thought for value investors.
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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 that we believe will develop over
time.
CABLEVISION SYSTEMS CORP. (CVC - $60.75 - AMEX) is one of the nation's leading
communications and entertainment companies, with a portfolio of operations that
spans state-of-the-art, high-speed multimedia delivery, subscription cable
television services, championship professional sports teams and national cable
television networks. Headquartered in Bethpage, N.Y., Cablevision serves more
than 3.4 million cable customers primarily in three core markets: New York,
Boston and Cleveland. Cablevision is a leader in delivering cutting-edge
technological innovation, such as Optimum TV, to the home. Through its Rainbow
Media Holdings subsidiary, Cablevision manages and develops internationally
recognized content offerings such as the popular national television networks
American Movie Classics, Bravo and The Independent Film Channel. Cablevision
owns and operates New York City's famed Madison Square Garden, which includes
the arena complex, the N.Y. Knicks, the N.Y. Rangers and the MSG network.
Cablevision also operates Radio City Entertainment and holds a long term lease
for Radio City Music Hall, home of the world-famous Rockettes.
CARTER-WALLACE INC. (CAR - $18.75 - NYSE), founded in 1880 as the Carter
Medicine Company marketing a single product called Carter Little Liver Pills,
now manufactures and sells a diversified line of consumer health care products
including toiletries, pharmaceuticals, diagnostic specialties, proprietary drugs
and pet supplies. Such brands as Arrid deodorant, Nair hair remover and Pearl
Drops toothpaste are Carter-Wallace products. The company also sells certain
products exclusively in international markets.
CHRIS-CRAFT INDUSTRIES INC. (CCN - $63.6875 - NYSE; CCN'B - $63.50 - NYSE),
through its 80% ownership of BHC Communications (BHC - $156.00 - AMEX), is
primarily a television broadcaster. BHC owns and operates UPN affiliated
stations in New York (WWOR), Los Angeles (KCOP) and Portland, Oregon (KPTV). BHC
also owns 58% of United Television (UTVI - $132.375 - Nasdaq), which operates an
NBC affiliate, an ABC affiliate and five UPN affiliates. UTVI acquired WRBW, a
UPN affiliate in Orlando, for $60 million in July 1999. Chris-Craft's television
stations constitute one of the nation's largest television station groups,
reaching approximately 22% of U.S. households. Chris-Craft is a major
beneficiary of the recent FCC ruling allowing television duopoly, or ownership
of two stations in a single market. The Chris-Craft complex is debt free and
strongly positioned to expand its operations, with roughly $1.5 billion in cash
and marketable securities.
CITIZENS UTILITIES CO. (CZN - $16.375 - NYSE) provides telecommunications
services and public services to approximately 1.9 million customers in 22
states. Citizens owns 83% of Electric Lightwave (ELIX - $23.875 - Nasdaq), a
competitive local exchange carrier ("CLEC") serving primarily the western U.S.
Management has authorized the separation of Citizens' telecommunications
businesses and public services businesses into two stand-alone, publicly traded
companies. Recently, CZN announced
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agreements to acquire about one million rural access lines in 11 states for $2.8
billion. CZN intends to finance these transactions by divesting its public
services operations. Its water and waste water operations have been sold for
$835 million. The company has an agreement to sell all its electric and waste
water utility operations to Cap Rock Energy and Kauai Island Electric Company
for an aggregate purchase price of $535 million. The company has sold its 16%
stake in Centennial Communications for approximately $205 million. Citizens
monetized its ownership of Century Communications' (CTYA - $45.625 - Nasdaq)
stock and cable operations through a sale to Adelphia Communications for
approximately $220 million.
GENUINE PARTS CO. (GPC - $23.875 - NYSE), founded in 1928, is a service
organization engaged in the distribution of automotive replacement parts,
industrial replacement parts and office products. The company offers access to
over 225,000 automotive replacement parts and, in conjunction with NAPA,
inventory, accounting, cataloging, marketing, training and other programs. The
company's NAPA automotive parts distribution centers distribute replacement
parts (other than body parts) for virtually all motor vehicle makes and models
in service in the United States, including imported vehicles, trucks, buses,
motorcycles, recreational vehicles and farm vehicles. Genuine Parts distributes
industrial replacement parts used in fluid transmission and irrigation,
including pumps, pulleys, valves, hoses and belts. Through SP Richards Company,
Genuine Parts also distributes office products including diskettes, telephones,
furniture and copiers. Through EIS Inc., Genuine Parts is a wholesale
distributor of materials and supplies to the electrical and electronic
industries.
HILTON HOTELS CORP. (HLT - $7.75 - NYSE) is recognized as one of the world's
preeminent hospitality companies. Hilton develops, owns, manages and franchises
hotels, resorts and vacation ownership properties. Based on the number of hotel
rooms, Hilton is the nation's seventh largest hotel company. Hilton has
approximately 260 hotels and resorts in cities throughout the United States,
including 54 owned and/or managed hotels and 199 hotels under franchise
agreements. Flagship properties include The Waldorf-Astoria, the Hilton Chicago
& Towers, Hilton Hawaiian Village (98%-owned) and Palmer House Hilton. HLT
formalized a marketing alliance with British based Hilton Group plc (HG.L -
$4.65 - London Stock Exchange) (owner of Hilton International) in January 1997
to reunite the Hilton name worldwide for the first time in over 30 years.
Hilton's casino gaming properties have been spun-off into a new company, Park
Place Entertainment (PPE - $11.5625 - NYSE).
LIBERTY CORP. (LC - $37.50 - NYSE), headquartered in Greenville, S.C., is a
holding company with operations in broadcasting and insurance. Liberty's Cosmos
Broadcasting owns and operates eleven network affiliated television stations in
the Southeast and Midwest. Six stations are affiliated with NBC, three with ABC
and two with CBS. These stations serve more than four million households.
Liberty Life is a regional insurer, with North Carolina, South Carolina and
Louisiana accounting for more than 50% of its premium volume. The insurance
segment specializes in providing agency (home service) and mortgage protection,
life and health insurance.
LIBERTY MEDIA GROUP (LMG'A - $59.25 - NYSE), owned by AT&T Corp. (T - $56.25 -
NYSE), is engaged in businesses which provide programming services, including
production, acquisition and distribution through all media formats, as well as
businesses engaged in electronic retailing, direct marketing and other services.
LMG holds interests in globally-branded entertainment networks such as Discovery
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Channel, USA Network, QVC, Encore and STARZ!. Liberty's assets also include
interests in international video distribution businesses, international
telephony and domestic wireless, plant and equipment manufacturers, and other
businesses related to broadband services. Liberty Media Group Class A and Class
B common stock are tracking stocks of AT&T.
MARK IV INDUSTRIES INC. (IV - $22.0625 - NYSE) is a diversified manufacturer of
a broad range of proprietary and other power and fluid transfer products and
systems that serve primarily industrial and automotive markets. The company
classifies its operations into two business segments. Mark IV Industrial
includes the design, manufacture and distribution of power and fluid management
systems and components for industrial original equipment manufacturers ("OEM")
and distribution markets worldwide. Mark IV Automotive includes the design,
manufacture and distribution of power transmission, fuel, and fluid handling
systems and components, and filters and filtration systems, for the global
automotive aftermarket and OEM market.
MEDIA GENERAL INC. (MEG'A - $52.375 - AMEX) is a Richmond, Virginia-based
communications company, publishing newspapers throughout the Southeast with
daily circulation of nearly 250,000. Media General also operates thirteen
television stations in Southeastern markets, including Tampa and Jacksonville,
Florida. The relaxation of broadcast station ownership restrictions provided by
the Telecommunications Reform Act of 1996 is driving industry consolidation and
is increasing the franchise values of strong, well-positioned media properties
such as those owned by Media General. The company produces newsprint from
recycled newspapers at its Garden State Paper Co. On October 1, the company sold
its Virginia cable franchises to Cox Communications (COX - $48.50 - NYSE) for
approximately $1.4 billion and in June, MEG'A sold its equity interest in the
Denver Post to Media News Group and redeemed its preferred stock for a total of
$92 million. Late in the year, the company announced its intention to acquire
Spartan Communications and its group of 13 broadcast television stations in a
transaction valued at approximately $605 million.
MEDIAONE GROUP INC. (UMG - $81.00 - NYSE) is one of the nation's leading
broadband services companies. UMG provides approximately five million domestic
subscribers in 17 states with basic and premium cable television services and
has recently introduced high speed Internet access, telephone services and
digital television in some of its service areas. MediaOne was created from the
1996 union of telecommunications company MediaOne Group (formerly US West Media
Group) and Continental Cablevision. Headquartered in Englewood, Colorado, the
company is conducting a national upgrade of its hybrid fiber optic/coaxial cable
("HFC") network to broadband technology, which improves traditional cable
service and enables next-generation products and services. UMG's investment
interests include 25% of Time Warner Entertainment (which includes Warner
Brothers Studio and Home Box Office), 24% of PCS Prime Co. and almost 27% of
TeleWest plc. The number three U.S. cable television provider recently agreed to
be acquired by AT&T Corp. (T - $56.25 - NYSE) for $54 billion.
NAVISTAR INTERNATIONAL CORP. (NAV - $40.125 - NYSE), with world headquarters in
Chicago, is a leading North American manufacturer and marketer of medium and
heavy trucks, school buses, and mid-range diesel engines in North America and
selected export markets. The company is a leading supplier of diesel engines in
a range of 160 to 300 horsepower for the International(REGISTRATION MARK) brand.
The company is also a private label designer and manufacturer of diesel engines
for the full-size pickup truck and van markets.
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The company's products, parts and services are sold through a network of 1,000
International(REGISTRATION MARK) brand dealer outlets in the United States,
Canada, Brazil and Mexico, and through more than 90 dealers in 75 countries.
Navistar provides financing for its customers and distributors principally
through its wholly-owned subsidiary, Navistar Financial Corp.
TELEPHONE & DATA SYSTEMS INC. (TDS - $111.00 - AMEX) is a diversified
telecommunications service company with cellular telephone, local telephone and
personal communications services ("PCS") operations. TDS serves 3.7 million
customers in 35 states. TDS conducts the vast majority of its cellular
operations through its 81% owned United States Cellular Corp. (USM - $71.00 -
AMEX) and conducts its telephone operations through its wholly-owned TDS
Telecommunications Corp. ("TDS Telecom") subsidiary, a full-service local
exchange carrier. TDS conducts its broadband PCS operations through 82.3% owned
Aerial Communications Inc. (AERL - $56.8125 - Nasdaq), which provides PCS
service in the Minneapolis, Tampa-St. Petersburg-Orlando, Houston, Pittsburgh,
Kansas City and Columbus Major Trading Areas. On September 20, 1999, VoiceStream
Wireless (VSTR - $128.8125 - Nasdaq) announced the acquisition of Aerial in a
$3.3 billion transaction. Pro-forma for this acquisition, TDS will own over 36
million shares of VoiceStream.
USA NETWORKS INC. (USAI - $22.5625 - NASDAQ), through its subsidiaries, engages
in diversified media and electronic commerce businesses that include: electronic
retailing, ticketing operations and television broadcasting. Chairman and CEO
Barry Diller has brought together under one umbrella: the USA Network, the
Sci-Fi Channel, USA Networks Studios, USA Broadcasting, The Home Shopping
Network and the Ticketmaster Group. The plan is to integrate these assets,
leveraging programming, production capabilities and electronic commerce across
this strong distribution platform.
VIACOM INC. (VIA'A - $53.4375 - NYSE), long a major provider of entertainment
"content", has evolved into one of the world's dominant media companies.
Non-core assets are being divested and debt has been reduced to approximately $8
billion. Viacom is focusing on global expansion of its media franchises. Viacom
is particularly well-positioned in music (notably MTV) and cable networks (such
as Nickelodeon). Viacom is in the process of merging with CBS in a $36 billion
transaction.
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.
INTERNET
You can now 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 send us e-mail at [email protected].
10
<PAGE>
IN CONCLUSION
In a market that loved technology stocks and disdained just about
everything else, the Fund took a small step forward in the first quarter of
2000. We are not anti-technology, but prefer investing in companies with
products and services we understand. We are also risk averse and not inclined to
own stocks with valuations that challenge economic logic. Finally, momentum
investing--buying stocks simply because they are going up--is the antithesis of
our value discipline.
The upside of this narrow market is that we see truly appealing valuations
for some great companies in a wide range of industry groups. We cannot be sure
when investors will gravitate to these great values. However, we are quite
confident that our portfolio should continue to generate attractive long-term
returns.
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 Nasdaq symbol for the Fund's Class A Shares is GABVX.
Please call us during the business day for further information.
Sincerely,
/S/ MARIO J.GABELLI
MARIO J. GABELLI, CFA
Portfolio Manager and
Chief Investment Officer
April 14, 2000
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
MARCH 31, 2000
--------------
Viacom Inc. Liberty Media Group
Media General Inc. Chris-Craft Industries Inc.
Telephone & Data Systems Inc. Navistar International Corp.
MediaOne Group Inc. USA Networks Inc.
Cablevision Systems Corp. Liberty Corp.
- --------------------------------------------------------------------------------
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.
11
<PAGE>
THE GABELLI VALUE FUND INC.
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
------ ------
COMMON STOCKS -- 97.0%
AEROSPACE -- 1.5%
320,000 Cordant Technologies Inc. ... $ 18,100,000
--------------
AGRICULTURE -- 0.6%
630,000 Archer-Daniels-Midland Co. .. 6,536,250
--------------
AUTOMOTIVE -- 0.3%
45,000 General Motors Corp. ........ 3,726,562
--------------
AUTOMOTIVE: PARTS AND ACCESSORIES -- 3.9%
635,000 Dana Corp. .................. 17,899,062
540,000 GenCorp Inc. ................ 4,185,000
560,000 Genuine Parts Co. ........... 13,370,000
260,000 Modine Manufacturing Co. .... 6,532,500
45,000 Superior Industries
International Inc. ......... 1,425,937
400,000 Tenneco Automotive Inc. ..... 3,175,000
--------------
46,587,499
--------------
AVIATION: PARTS AND SERVICES -- 0.3%
80,000 Barnes Group Inc. ........... 1,160,000
270,000 Fairchild Corp., Cl. A+ ..... 1,839,375
--------------
2,999,375
--------------
BROADCASTING -- 6.9%
150,000 Ackerley Group Inc. ......... 2,268,750
4,500 BHC Communications Inc., Cl. A 702,000
684,950 Chris-Craft Industries Inc.+ 43,622,753
165,000 Gray Communications Systems
Inc., Cl. B ................ 1,938,750
58,000 Grupo Televisa SA, GDR+ ..... 3,944,000
706,500 Liberty Corp. ............... 26,493,750
340,000 Paxson Communications Corp.,
Cl. A+ ..................... 2,635,000
--------------
81,605,003
--------------
BUSINESS SERVICES -- 2.9%
160,000 Berlitz International Inc.+ . 1,830,000
340,369 Cendant Corp.+ .............. 6,296,826
75,000 National Processing Inc.+ ... 712,500
1,000,000 U.S. Foodservice+ ........... 25,750,000
--------------
34,589,326
--------------
CABLE -- 9.9%
950,000 Cablevision Systems Corp., Cl. A+ 57,712,500
740,000 MediaOne Group Inc.+ ........ 59,940,000
--------------
117,652,500
--------------
COMMUNICATIONS EQUIPMENT -- 0.3%
54,000 Scientific-Atlanta Inc. ..... 3,425,625
--------------
COMPUTER SOFTWARE AND SERVICES -- 0.1%
180,000 Tyler Technologies Inc. ..... 1,068,750
--------------
MARKET
SHARES VALUE
------ ------
CONSUMER PRODUCTS -- 3.7%
526,000 Carter-Wallace Inc. ......... $ 9,862,500
100,000 Fortune Brands Inc. ......... 2,500,000
50,000 Gallaher Group plc, ADR ..... 984,375
630,000 General Cigar Holdings Inc.+ 9,528,750
168,000 General Cigar Holdings Inc.,
Cl. B+ (a) ................. 2,530,500
170,000 Hartmarx Corp.+ ............. 467,500
10,000 National Presto Industries Inc. 326,250
600,000 Ralston Purina Group ........ 16,425,000
41,700 Syratech Corp.+ ............. 333,600
85,000 Wolverine World Wide Inc. ... 935,000
--------------
43,893,475
--------------
CONSUMER SERVICES -- 0.7%
512,300 Rollins Inc. ................ 7,620,462
--------------
DIVERSIFIED INDUSTRIAL -- 0.5%
50,000 Ampco-Pittsburgh Corp. ...... 543,750
135,000 GenTek Inc. ................. 1,890,000
225,000 Katy Industries Inc. ........ 2,067,187
90,000 Lamson & Sessions Co.+ ...... 669,375
145,000 WHX Corp.+ .................. 996,875
--------------
6,167,187
--------------
ELECTRONICS -- 0.3%
140,000 Thomas & Betts Corp. ........ 3,955,000
--------------
ENERGY AND UTILITIES -- 1.8%
160,000 Columbia Energy Group ....... 9,480,000
250,000 Conectiv Inc. ............... 4,375,000
110,000 Florida Progress Corp. ...... 5,046,250
156,000 Southwest Gas Corp. ......... 2,973,750
--------------
21,875,000
--------------
ENTERTAINMENT -- 18.4%
150,000 GC Companies Inc.+ .......... 5,212,500
870,000 Liberty Media Group, Cl. A+ . 51,547,500
110,000 Seagram Co. ................. 6,545,000
1,550,000 USA Networks Inc.+ .......... 34,971,875
2,240,000 Viacom Inc., Cl. A+ ......... 119,700,000
--------------
217,976,875
--------------
ENVIRONMENTAL SERVICES -- 1.0%
820,000 Waste Management Inc. ....... 11,223,750
--------------
EQUIPMENT AND SUPPLIES -- 7.2%
200,000 CIRCOR International Inc.+ .. 2,662,500
30,000 Deere & Co. ................. 1,140,000
365,000 Flowserve Corp. ............. 4,699,375
130,000 Gerber Scientific Inc. ...... 2,510,625
225,000 Hussmann International Inc. . 2,854,687
12
<PAGE>
THE GABELLI VALUE FUND INC.
PORTFOLIO OF INVESTMENTS (CONTINUED) -- MARCH 31, 2000 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
------ ------
COMMON STOCKS (CONTINUED)
EQUIPMENT AND SUPPLIES (CONTINUED)
840,000 Mark IV Industries Inc. ..... $ 18,532,500
1,000,000 Navistar International Corp.+ 40,125,000
75,000 Sequa Corp., Cl. A+ ......... 2,971,875
24,500 Sequa Corp., Cl. B+ ......... 1,157,625
6,000 Smith (A.O.) Corp., Cl. A ... 108,000
245,000 UCAR International Inc.+ .... 3,230,938
420,000 Watts Industries Inc., Cl. A 5,197,500
--------------
85,190,625
--------------
FINANCIAL SERVICES -- 1.9%
35,000 Mellon Financial Corp. ...... 1,032,500
200,000 Pioneer Group Inc.+ ......... 4,650,000
40,000 St. Paul Companies Inc. ..... 1,365,000
380,500 Travelers Property Casualty
Corp., Cl. A ............... 15,695,625
--------------
22,743,125
--------------
FOOD AND BEVERAGE -- 2.9%
30,000 Advantica Restaurant Group Inc.+ 45,000
105,000 Bestfoods Inc. .............. 4,915,313
45,000 Celestial Seasonings Inc.+ .. 1,546,875
250,000 Corn Products International Inc. 6,015,625
225,000 Pepsi Bottling Group Inc. ... 4,500,000
250,000 PepsiCo Inc. ................ 8,640,625
650,000 Whitman Corp. ............... 9,059,375
--------------
34,722,813
--------------
HEALTH CARE -- 1.0%
85,000 American Home Products Corp. 4,558,125
270,000 IVAX Corp.+ ................. 7,357,500
--------------
11,915,625
--------------
HOTELS AND GAMING -- 4.5%
600,000 Aztar Corp.+ ................ 5,700,000
269,200 Bristol Hotels & Resorts Inc.+ 2,557,400
270,000 Gaylord Entertainment Co. ... 7,323,750
2,000,000 Hilton Group plc ............ 9,292,245
1,100,000 Hilton Hotels Corp. ......... 8,525,000
1,000,000 Mirage Resorts Inc.+ ........ 19,375,000
--------------
52,773,395
--------------
METALS AND MINING -- 0.4%
15,000 Barrick Gold Corp. .......... 235,313
500,000 Echo Bay Mines Ltd.+ ........ 656,250
80,000 Homestake Mining Co. ........ 480,000
70,000 Newmont Mining Corp. ........ 1,570,625
65,000 Placer Dome Inc. ............ 528,125
365,000 Royal Oak Mines Inc.+ ....... 3,650
2,000,000 TVX Gold Inc.+ .............. 1,500,000
--------------
4,973,963
--------------
MARKET
SHARES VALUE
------ ------
PAPER AND FOREST PRODUCTS -- 0.4%
570,000 Pactiv Corp.+ ............... $ 4,987,500
--------------
PUBLISHING -- 9.3%
25,000 McGraw Hill Companies Inc. .. 1,137,500
1,700,000 Media General Inc., Cl. A (b) 89,037,500
120,000 Meredith Corp. .............. 3,322,500
340,000 Penton Media Inc. ........... 8,840,000
250,000 Reader's Digest Association
Inc., Cl. B ................ 7,156,250
30,000 Tribune Co. ................. 1,096,875
--------------
110,590,625
--------------
REAL ESTATE -- 1.0%
750,000 Catellus Development Corp.+ 10,406,250
130,000 Griffin Land & Nurseries Inc.+ 1,430,000
--------------
11,836,250
--------------
RETAIL -- 3.1%
400,000 Albertson's Inc. ............ 12,400,000
1,440,000 AutoNation Inc.+ ............ 11,430,000
125,000 Blockbuster Inc., Cl. A ..... 1,250,000
20,000 Burlington Coat Factory Warehouse
Corp. ...................... 343,750
70,000 Delhaize America Inc., Cl. A 1,207,500
68,000 Ingles Markets Inc., Cl. A .. 709,750
140,000 Lillian Vernon Corp. ........ 1,330,000
298,000 Neiman Marcus Group Inc., Cl. B+ 8,195,000
--------------
36,866,000
--------------
SATELLITE -- 0.7%
230,000 COMSAT Corp. ................ 4,743,750
145,000 Loral Space & Communications
Ltd.+ ...................... 1,477,188
130,000 TCI Satellite Entertainment
Inc., Cl. A+ ............... 2,486,250
--------------
8,707,188
--------------
SPECIALTY CHEMICALS -- 1.2%
25,000 Dexter Corp. ................ 1,325,000
270,000 Ferro Corp. ................. 4,809,375
100,000 General Chemical Group Inc. . 212,500
150,000 Monsanto Co. ................ 7,725,000
--------------
14,071,875
--------------
TELECOMMUNICATIONS -- 2.9%
825,000 Citizens Utilities Co., Cl. B+ 13,509,375
172,462 Commonwealth Telephone
Enterprises Inc.+ .......... 8,094,935
43,000 Esat Telecom Group plc, ADR+ 4,294,625
92,000 RCN Corp.+ .................. 4,956,500
135,000 Rogers Communications Inc.,
Cl. B, ADR+ ................ 4,024,688
--------------
34,880,123
--------------
13
<PAGE>
THE GABELLI VALUE FUND INC.
PORTFOLIO OF INVESTMENTS (CONTINUED) -- MARCH 31, 2000 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
------ ------
COMMON STOCKS (CONTINUED)
WIRELESS COMMUNICATIONS -- 7.4%
128,000 Rogers Cantel Mobile
Communications Inc., Cl. B+ $ 5,176,000
500,000 Telecom Italia Mobile SpA ... 6,137,895
690,000 Telephone & Data Systems Inc. 76,590,000
--------------
87,903,895
--------------
TOTAL COMMON STOCKS ......... 1,151,165,641
--------------
PREFERRED STOCKS -- 0.6%
PUBLISHING -- 0.6%
155,500 News Corp. Ltd., Pfd., ADR .. 7,425,125
--------------
PRINCIPAL
AMOUNT
---------
U.S. GOVERNMENT OBLIGATIONS -- 0.3%
$ 4,200,000 U.S. Treasury Bill, 6.07%++,
due 04/18/00 ............... 4,188,160
--------------
REPURCHASE AGREEMENTS -- 1.8%
20,965,000 Agreement with State Street,
6.07%, dated 3/31/00, due 04/03/00,
proceeds at maturity
$20,975,605 (c) ............ 20,965,000
--------------
MARKET
VALUE
------
TOTAL INVESTMENTS -- 99.7%
(Cost $797,329,556) ....... $1,183,743,926
OTHER ASSETS AND
LIABILITIES (NET) -- 0.3% 3,140,235
--------------
NETASSETS -- 100.0%
(63,467,818 shares
outstanding) ............. $1,186,884,161
==============
NUMBER OF PREMIUM EXPIRATION STRIKE MARKET
CONTRACTS RECEIVED DATE PRICE VALUE
--------- -------- ---------- ------ ------
CALL OPTIONS WRITTEN
500,000 AT&T Corp.
$(3,216,250) 05/20/00 $55.00 $(2,625,000)
===========
- ------------------------
(a) Security fair valued under procedures established by the Board of
Directors.
(b) Security considered an affiliated holding because the Fund owns at least
5% of the outstanding shares.
(c) Collateralized by U.S. Treasury Bill, 5.96%++, due 04/20/00, market value
$21,384,506.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR - American Depositary Receipt.
14
<PAGE>
- --------------------------------------------------------------------------------
GABELLI FAMILY OF FUNDS
- --------------------------------------------------------------------------------
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:
5 1/2%
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 VALUE FUND INC.
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 DIRECTORS
Mario J. Gabelli, CFA Robert J. Morrissey
CHAIRMAN AND CHIEF ATTORNEY-AT-LAW
INVESTMENT OFFICER MORRISSEY, HAWKINS & LYNCH
GABELLI ASSET MANAGEMENT INC.
Felix J. Christiana Karl Otto Pohl
FORMER SENIOR VICE PRESIDENT FORMER PRESIDENT
DOLLAR DRY DOCK SAVINGS BANK DEUTSCHE BUNDESBANK
Anthony J. Colavita Anthony R. Pustorino
ATTORNEY-AT-LAW CERTIFIED PUBLIC ACCOUNTANT
ANTHONY J. COLAVITA, P.C. PROFESSOR, PACE UNIVERSITY
OFFICERS
Mario J. Gabelli, CFA Bruce N. Alpert
PRESIDENT AND CHIEF CHIEF OPERATING OFFICER
INVESTMENT OFFICER VICE PRESIDENT AND TREASURER
James E. McKee
SECRETARY
CUSTODIAN
Boston Safe Deposit and Trust Company
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT
State Street Bank and Trust Company
LEGAL COUNSEL
Willkie Farr & Gallagher
UNDERWRITER
Gabelli & Company, Inc.
- --------------------------------------------------------------------------------
This report is submitted for the general information of the shareholders of The
Gabelli Value Fund Inc. It is not authorized for distribution to prospective
investors unless preceded or accompanied by an effective prospectus.
- --------------------------------------------------------------------------------
GAB409Q100SR
[Photo of Mario J.Gabelli omitted]
THE
GABELLI
VALUE
FUND
INC.
FIRST QUARTER REPORT
MARCH 31, 2000
