Gabelli Global Series Funds, Inc.
One Corporate Center
Rye, New York 10580 - 1434
The Gabelli Global Interactive Couch Potato(R) Fund
First Quarter Report
March 31, 1997
To Our Shareholders:
The stock market roared out of the blocks in January, but quickly lost
momentum as inflation jitters and a slumping bond market muddied the track. In
late March, a rate hike by the Federal Reserve and much stronger than expected
economic data stampeded equities investors, eroding most of the market's earlier
gains. The Dow Jones Industrial Average and Standard & Poor's 500 Index closed
the quarter with modest gains of 1.7% and 2.7%, respectively. Smaller stocks
continued to lag as evidenced by the Russell 2000 Index's 5.2% decline.
Investment Performance (a)
- --------------------------------------------------------------------------------
Quarter
----------------------------------
1st 2nd 3rd 4th Year
--- --- --- --- ----
1997: Net Asset Value ..... $11.79 -- -- -- --
Total Return ........ 0.3% -- -- -- --
- --------------------------------------------------------------------------------
1996: Net Asset Value ..... $12.57 $13.40 $13.22 $11.75 $11.75
Total Return ........ 7.3% 6.6% (1.3)% (0.3)% 12.5%
- --------------------------------------------------------------------------------
1995: Net Asset Value ..... $10.62 $11.28 $12.30 $11.72 $11.72
Total Return ........ 3.6% 6.2% 9.0% (1.8)% 17.9%
- --------------------------------------------------------------------------------
1994: Net Asset Value ..... $ 9.90 $ 9.97 $10.54 $10.25 $10.25
Total Return ........ (1.0)%(b) 0.7% 5.7% (2.8)% 2.5%(b)
- --------------------------------------------------------------------------------
- ---------------------------------------------
Average Annual Returns - March 31, 1997 (a)
1 Year............................... 5.3%
3 Year............................... 11.3%
Life of Fund (b)..................... 10.4%
- ---------------------------------------------
Dividend History
- --------------------------------------------------------
Payment (ex) Date Rate Per Share Reinvestment Price
- ----------------- -------------- ------------------
December 31, 1996 $1.436 $11.75
December 29, 1995 $0.363 $11.72
(a) Average annual and total returns reflect changes in share price,
reinvestment of dividends and are net of expenses. 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. Investing in foreign
securities involves risks not ordinarily associated with investments in domestic
issues, including currency fluctuation, economic and political risks.
(b) From commencement of operations on February 7, 1994.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
Interactive Couch Potato(R)
Interactive (in' ter ak' tiv) Having the capacity for communication flow in each
direction.*
Couch (kouch) An appellation for the heavy user of television,
depicted in the metaphor as plopped before the
television set like a vegetable with eyes. The
Potato (po ta' to) term was coined in the early 1980s by a group
(pe ta' to) of Baby Boomers in the San Francisco area
who playfully glorified their addiction to the
tube. Calling themselves The Couch Potatoes, they
formed a national club and published a hilarious
newsletter in the couch potato lifestyle
containing bizarre recipes for that vital
companion to the TV set, the toaster oven. After
a burst of enlistments, the club quietly
disappeared. All that remains today is the
metaphor, and its current use tends to be more
pejorative than self-mocking or affectionate.*
* Source: NTC Mass Media Directory.
- --------------------------------------------------------------------------------
For the first quarter ended March 31, 1997, the Gabelli Global Interactive
Couch Potato(R) Fund was up 0.3%, compared to the 0.7% return for the average
global fund tracked by Lipper Analytical Services Inc. The Lipper average covers
194 global open-end mutual funds which may invest in a diversified group of
industry sectors. During the twelve months ended March 31, 1997, the Fund
increased 5.3% which compares to a return of 11.1% over the same period for the
Lipper global fund average.
Since inception on February 7, 1994, through March 31, 1997, the Fund
achieved a total return of 36.4%, which equates to an average annual return of
10.4%.
THE PORTFOLIO
Global Allocation
The chart at the right represents the Fund's holdings by geographic region
as of March 31, 1997. The geographic allocation will change based on current
global market conditions. Countries and/or regions and companies represented in
the chart and below may or may not be included in the Fund's portfolio in the
future.
[THE FOLLOWING TABLE WAS DEPICTED AS A PIE CHART IN THE PRINTED MATERIAL]
United States 66.9%
Europe 19.4%
Asia/Pacific Rim 6.7%
Canada 4.9%
Latin America 2.1%
2
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Equity Mix
As we have indicated in past discussions, the Interactive Couch Potato's(R)
investment premise falls within the context of two main investment universes: 1)
companies involved in creativity, as it relates to the development of
intellectual property rights (copyrights); and 2) companies involved in
distribution, as it relates to the delivery of these copyrights. Additionally,
this includes the broad scope of communications-related services such as basic
voice and data.
[THE FOLLOWING TABLE WAS DEPICTED AS A PIE CHART IN THE PRINTED MATERIAL]
Copyright/Creativity 57.2%
Distribution 42.8%
The chart above depicts our equity mix of the copyright/creativity and
distribution companies in our portfolio as of March 31, 1997.
Must Carry
In an upset rivaling the University of Arizona's victory over Kentucky in
the 1997 NCAA basketball championship, the Supreme Court voted 5 to 4 to uphold
the "must carry" provision for local broadcast companies. The must carry rule
specified that cable television systems must make one-third of their channel
capacity available free to local broadcasters. Led by Ted Turner, the cable
television industry had challenged the rule on the grounds that it violated
their first amendment rights. The industry's economic goal was to free up
channel capacity for new cable television networks providing more popular
programming and paying the cable operator for channel space. The consensus of
the lawyers on both sides of the issue was the cable guys would win. However,
the Supreme Court decided that allowing cable operators to exclude local
broadcast channels would create undue economic hardship for many broadcasters
and threaten the survival of weaker independents.
Who are the winners and losers? The broadcasters, particularly those with
extensive UHF properties get a renewed lease on life as they maintain and in
some cases add to their cable audience. The entrenched cable television
networks, like International Family Entertainment, Inc. (FAM - $20.375 - NYSE),
BET Holdings, Inc. (BTV - $29.625 - NYSE), Gaylord Entertainment Company (GET -
$21.50 - NYSE), HSN, Inc. (HSNI - $25.375 - NASDAQ) and Tele-Communications,
Inc./Liberty Media Group (LBTYA - $19.9375 - NASDAQ) benefit because with cable
channel capacity still restrained, the value of their "slots" with cable
operators increase in value. For example, the prospective value of International
Family Entertainment to a News Corporation Limited (NWS - $18.00 - NYSE), which
is trying to expand distribution of its programming, increases substantially.
The biggest losers are the cable television
3
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network wannabes who will have to wait until cable operators complete upgrades
to their systems before channel space is available.
In This Corner Wearing the Red Trunks . . .
A heavyweight battle is unfolding between Hilton Hotels Corporation (HLT -
$24.25 - NYSE) CEO Stephen Bollenbach and ITT Corporation (ITT - $58.875 - NYSE)
Chairman Rand Araskog. Bollenbach landed the first punch with an unsolicited $56
per share offer for ITT. Araskog responded by selling off non-core assets like
ITT's 50% ownership of MSG (Madison Square Garden, the Knicks, and the Rangers)
to partner Cablevision Systems Corporation (CVC - $29.75 - ASE) and ITT's 6%
stake in French telecommunications giant Alsthom SA (ALA - $23.75 - NYSE). ITT's
Educational Services and Worldwide Yellow Pages businesses are also on the
block. For the time being, Bollenbach is circling the ring waiting for Araskog
to counter-attack. What does this wily veteran of many takeover battles have up
his sleeve? Our guess is that, aside from serving K-rations to corporate staff,
he will further build up his cash reserves for a self tender in the $60 plus per
share range. If this happens, we expect Bollenbach to wade in looking for a
merger. It's still too early in what should be a full fifteen rounder to predict
the winner. We're betting that shareholders of both these firms will benefit
from these corporate heavyweights slugging it out.
Let's Talk Stocks
The following are stock specifics on selected holdings of our Fund.
Favorable EBITDA prospects do not necessarily translate into higher stock
prices, but they do express a positive trend which we believe will develop over
time.
Cablevision Systems Corporation (CVC - $29.75 - ASE), based in Woodbury, NY, is
a major cable TV operator serving 2.7 million subscribers, including managed
systems. CVC's cable systems generate average monthly subscriber revenues among
the highest in the industry. CVC has signed definitive agreements to purchase
ITT's 50% interest in the venture that manages Madison Square Garden for $500
million cash, plus options that bring the transaction's value to almost $690
million. CVC also owns Rainbow Programming which has interests in cable TV
networks (Bravo, AMC, News 12 Long Island, and various sports channels). Having
already upgraded its cable systems, CVC is well-positioned to offer telephony,
high speed data and enhanced video services. We believe CVC's PMV is about $90
per share.
GC Companies, Inc. (GCX - $39.25 - NYSE), is the outcome of the December 1993
spin-off of Harcourt General's movie theater business (General Cinema) in a tax
free distribution to shareholders. The result was a pure theatrical motion
picture exhibitor with 7.8 million shares outstanding, a strong balance sheet
with about $90 million in cash, and a proven wealthbuilder, Chairman Richard
Smith, owning 29% of the stock. GC is viewed as an attractive investment on two
fronts. As a pure, basic film exhibition business, it offers high returns on
investment. GC's theater chain's critical mass increases its bargaining power
with film suppliers. The scale of operations optimizes its site capacity by
using more efficient multiplexing.
4
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Havas (Sub. Deb. Cv., 3.00%, 12/31/97 - NASDAQ), the second largest multimedia
company in Europe, is involved in advertising, publishing and tourism. The
company has a good mix of cyclical and non-cyclical businesses. With investments
in CANAL+, the pay TV channel; EuroRSCG, Europe's leading advertising
consultancy firm; and CLT, one of Europe's main television and radio operators;
Havas is in a position to build a powerful multimedia group.
HSN, Inc. (HSNI - $25.375 - NYSE) is the new name for the surviving company
resulting from the merger of Silver King Communications Inc., Home Shopping
Network Inc. and Savoy Pictures Entertainment. The combined companies will be
guided by a new board, chaired by Barry Diller.
News Corporation Ltd. (NWS - $18.00 - NYSE) is engaged in newspaper and magazine
publishing and, as the owner of 20th Century Fox and Fox Broadcasting, in film
operations and television broadcasting. The company is also engaged in
commercial printing, book publishing and distribution, air transportation,
record and cassette production and distribution. News Corp. is a global
enterprise operating mainly in the United States, United Kingdom, Australia and
The Pacific Rim. Satellite television operations include 64% of Star Television
and 40% of British Sky Broadcasting.
Tele-Communications, Inc./Liberty Media Group (LBTYA - $19.9375 - NASDAQ) owns a
collection of interests in some of the most powerful programming entities in the
world. Liberty Media is the second largest investor in Time Warner (TWX - $43.25
- - NYSE), the world's largest media company. Liberty Media, News Corporation Ltd.
(NWS - $18.00 - NYSE), and Tele-Communications International, Inc. (TINTA -
$12.875 - NASDAQ) have created a global sports joint-venture, called Fox Sports,
that will offer an integrated package of sports programming across network
broadcast, national cable, and regional cable channels. Liberty's 49% owned
Discovery Communications is a major advertiser-supported basic cable network
that includes the flagship Discovery Channel, The Learning Channel, and
developing businesses such as Discovery Europe and Animal Planet. We consider
Liberty Media to be ideally positioned to benefit from expanding distribution
channels, including direct broadcast satellite ventures like DirecTV and the
Internet.
Telefonica de Espana (TEF - $71.75 - NYSE) is a diversified telecommunications
service provider offering services to more than 15 million lines. The company
also services a fast growing cellular subscriber base which now exceeds two
million subscribers. We consider TEF an ideal way to invest in Latin America,
with a diversified portfolio of telecommunication operations in the region. Its
portfolio of publicly-traded Latin American companies includes: Compania
Telefonos Chile, Telefonica de Argentina S.A. and Compania Peruana de Telefonos.
TEF also holds interests in non-public Latin American telecom operations in
Mexico, Colombia, Puerto Rico, Uruguay and Venezuela. The company's long-term
strategy is to create a Pan-American network, leveraging the Spanish-speaking
world. TEF jump-started this effort with its decision to form a global alliance
with British Telecom/MCI's Concert plc, which is gaining momentum in the race to
become the dominant provider of one-stop shopping for full-service, global
telecommunications products.
Time Warner Inc. (TWX - $43.25 - NYSE), having completed its acquisition of
Turner Broadcasting in the fourth quarter of 1996, is the world's largest
diversified media and publishing company. The combined companies have more than
$23 billion in revenues and over $4.5 billion in EBITDA. Together they control a
host of powerful media brands, such as CNN, Warner Brothers film, HBO, Cinemax
and Time
5
<PAGE>
and People magazines. Under the leadership of Chairman Gerald Levin and
Vice-Chairman Ted Turner, Time Warner is now focused on reducing its almost $13
billion debt and simplifying its capital structure. Achievement of both goals
would be greatly aided by a successful restructuring of the Time Warner
Entertainment partnership with U.S. West Media Group.
Viacom Inc. (VIA - $32.625 - ASE; VIA'B - $33.125 - ASE), long a major provider
of entertainment "content", has evolved into one of the world's dominant media
companies. Following its acquisitions of Paramount Communications and
Blockbuster Entertainment, the company is now divesting non-core assets to
reduce debt and is focusing on the global expansion of its media franchises. The
company has divested its cable systems subsidiary in a transaction with
Tele-Communications, Inc. which has reduced Viacom's debt by $1.7 billion and
the number of common shares outstanding by about 4%. Its radio group, Evergreen
Media, is being sold for $1.1 billion in cash. Viacom is well-positioned in
music (notably MTV) and cable networks such as Nickelodeon, USA (50% interest)
and the Sci-Fi Channel.
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.
Furthermore, The Gabelli Global Interactive Couch Potato(R) Fund and other
Gabelli Funds are available through the no-transaction fee programs at many
major discount brokerage firms.
Internet
You can now visit us on the Internet. Our home page at
http://www.gabelli.com contains information about Gabelli Funds, Inc., the
Gabelli Mutual Funds, quarterly reports, closing prices, IRAs, 401(k)s and other
current news. You can also send us e-mail at [email protected].
In Conclusion
In our year-end 1996 letter to you, we expressed our doubts about the
market's ability to duplicate its substantial gains in 1995 and 1996. After
getting off to a strong start, the market lost momentum and then sputtered badly
at the end of the first quarter of 1997 as strong economic data re-ignited
inflationary fears. As we write, the jury is still out on inflation, but long
interest rates are above 7%, providing sizeable "real" rates of return. Looking
ahead, we anticipate a continually volatile stock market that will have many
investors on the edge of their seats. We rest somewhat more comfortably having
been through such uneasy times before and having faith that our value oriented
discipline will sustain us as it has in the past.
6
<PAGE>
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 GICPX. Please call us during the
day for further information.
We thank you for your confidence in our investing abilities and wish you a
productive and financially rewarding 1997.
Sincerely,
/s/ Mario J. Gabelli /s/ Marc J. Gabelli
Mario J. Gabelli, CFA Marc J. Gabelli
President Portfolio Manager
/s/ Ivan Arteaga
Ivan Arteaga, CPA
Associate Portfolio Manager
May 1, 1997
-----------------------------------------------------
Top Ten Holdings
March 31, 1997
--------------
Viacom, Inc. Telefonica de Espana
Cablevision Systems Corp. Havas
HSN, Inc. News Corporation Ltd.
TCI-Liberty Media Group GC Companies
Time Warner, Inc. ITT Corporation
-----------------------------------------------------
NOTE: The views expressed in this report reflect those of the portfolio manager
only through the end of the period of this report as stated on the cover. The
manager's views are subject to change at any time based on market and other
conditions.
7
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The Gabelli Global Interactive Couch Potato(R) Fund
Portfolio of Investments -- March 31, 1997 (Unaudited)
================================================================================
Market
Shares Value
------ -----
COMMON STOCKS -- 95.17%
COPYRIGHT/CREATIVITY COMPANIES -- 52.38%
ADVERTISING -- 0.37%
6,250 More Group .......................................... $ 65,190
5,000 National Media Corp. ................................ 42,500
-----------
107,690
-----------
CABLE PROGRAMMERS -- 10.39%
12,500 BET Holdings, Inc.+ ................................. 370,312
5,000 Canal + Spons. ADR .................................. 196,500
40,000 Flextech plc+ ....................................... 409,344
20,000 Gaylord Entertainment Company ....................... 430,000
15,000 HSN, Inc.+ .......................................... 380,625
18,125 International Family Entertainment, Inc.+ ........... 369,297
45,000 Tele-Communications, Inc. / Liberty
Media Group Cl. A ............................... 897,188
-----------
3,053,266
-----------
COMPUTER SOFTWARE & SERVICES -- 5.25%
20,000 BBN Corporation ..................................... 332,500
6,431 CUC International, Inc. ............................. 144,697
2,500 H & R Block Inc. .................................... 73,437
500 Intel Corporation ................................... 69,563
5,000 Microsoft Corporation ............................... 458,438
20,000 Netcom On-Line Communications
Services, Inc. .................................. 192,500
10,000 Novell Inc. ......................................... 95,000
25,000 NTN Communications, Inc. ............................ 104,688
10,500 StarSight Telecast, Inc. ............................ 73,500
-----------
1,544,323
-----------
ENTERTAINMENT PRODUCTION -- 2.76%
10,000 All American Communications, Inc.+ .................. 130,633
10,000 All American Communications, Inc. Cl. B+ ........... 106,250
6,100 Ascent Entertainment Group Inc.+ .................... 64,812
12,000 EMI Group plc ADR ................................... 219,700
24,000 Golden Harvest Entertainment Ltd. ................... 4,026
3,000 Grammy Entertainment plc ............................ 41,339
70,000 Shaw Brothers (Hong Kong) Ltd. ...................... 72,267
30,000 Spelling Entertainment Group, Inc. .................. 172,500
-----------
811,527
-----------
GAMING -- 3.76%
3,500 Churchill Downs Incorporated ........................ 132,125
10,000 ITT Corporation+ .................................... 588,750
75,000 Ladbroke Group plc .................................. 276,750
5,000 Mirage Resorts, Incorporated+ ....................... 106,250
-----------
1,103,875
-----------
Principal
Amount or Market
Shares Value
------ -----
GLOBAL MEDIA AND ENTERTAINMENT -- 13.57%
35,000 Havas ADR ........................................... $ 649,817
30,000 News Corporation Limited ADR ........................ 540,000
6,000 News Corporation Limited Preference
Shares ADR ...................................... 89,250
1,500 PolyGram NV ADR ..................................... 73,875
7,500 Seagram Company Ltd. ................................ 286,875
1,200 Sony Corporation ADR ................................ 82,950
20,000 Time Warner Inc. .................................... 865,000
30,000 Viacom Inc. Cl. A+ .................................. 978,750
5,000 Viacom Inc. Cl. B+ .................................. 165,630
3,500 Walt Disney Company ................................. 255,500
-----------
3,987,647
-----------
INFORMATION PUBLISHING -- 2.19%
8,000 Berlitz International, Inc.+ ........................ 179,000
15,000 Data Broadcasting Corporation+ ...................... 80,625
3,000 Elsevier NV Spons. ADR .............................. 94,500
5,000 Reuters Holdings plc ADR ............................ 290,938
-----------
645,063
-----------
PUBLISHING -- 14.09%
35,000 American Media Inc. Cl. A+ .......................... 205,624
20,000 Arnoldo Mondadori Editore SpA+ ...................... 125,403
3,500 Central Newspaper, Inc. Cl. A ....................... 175,438
3,000 E.W. Scripps Company ................................ 97,875
300 Filipacchi Medias ................................... 79,737
10,000 Golden Books Family Entertainment, Inc.+ ............ 92,500
5,000 Houghton Mifflin Company ............................ 270,000
37,501 Independent Newspapers Ltd. ......................... 201,581
6,000 Knight-Ridder, Inc. ................................. 239,250
10,000 Lee Enterprises, Incorporated ....................... 242,500
6,000 McGraw-Hill Companies, Inc. ......................... 306,750
8,000 Media General, Inc. Cl. A ........................... 227,000
12,000 Meredith Corporation ................................ 277,500
50,000 Nation Multimedia Group plc ........................ 143,380
5,000 New York Times Company Cl. A ........................ 220,625
12,000 Pulitzer Publishing Company ......................... 519,000
3,000 Reed International plc ADR .......................... 111,000
200,000 South China Morning Post Holdings ................... 170,345
3,500 Times Mirror Company Cl. A .......................... 191,188
10,000 United Newspapers plc ADR ........................... 243,750
-----------
4,140,446
-----------
TOTAL COPYRIGHT/CREATIVITY
COMPANIES ....................................... 15,393,837
-----------
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The Gabelli Global Interactive Couch Potato(R) Fund
Portfolio of Investments (Continued) -- March 31, 1997 (Unaudited)
================================================================================
Market
Shares Value
------ -----
DISTRIBUTION COMPANIES -- 42.79%
BROADCASTING -- 9.08%
35,000 Ackerley Group, Inc. ................................ $ 459,374
2,000 BHC Communications, Inc. Cl. A+ ..................... 210,500
10,000 CanWest Global Communications Corp. ................. 147,399
2,500 Carlton Communications plc ADR ...................... 107,266
4,635 Chris-Craft Industries, Inc.+ ....................... 183,662
720 Europe 1 Communication .............................. 156,749
2,000 Fisher Companies Inc. ............................... 242,000
5,000 Heritage Media Corporation Cl. A+ ................... 91,875
25,000 Jacor Communications, Inc. - Warrants+ .............. 43,750
5,000 LIN Television Corporation+ ......................... 181,250
500 Nippon Television Broadcasting ...................... 137,047
15,000 Paxson Communication ................................ 161,250
50,000 Television Broadcasting Ltd. ........................ 203,252
2,000 Television Francaise 1 .............................. 199,787
10,000 Tokyo Broadcasting System ........................... 142,303
-----------
2,667,464
-----------
CABLE DISTRIBUTION -- 8.72%
32,500 Cablevision Systems Corporation Cl. A+ .............. 966,874
20,000 Comcast UK Cable Partners Limited ................... 222,500
25,000 Comcast Corporation Class A ......................... 409,375
3,474 Comcast Corporation - Special Cl. A ................ 58,624
5,000 International CableTel Incorporated ................. 105,625
20,000 Tele-Communications, Inc. Cl. A .................... 240,000
25,000 Tele-Communications International, Inc. - A+ ........ 321,875
25,000 United International Holdings Inc. Cl. A ............ 237,500
-----------
2,562,373
-----------
ENTERTAINMENT DISTRIBUTION -- 2.35%
16,000 GC Companies, Inc. .................................. 628,000
2,000 Lodgenet Entertainment Corporation .................. 21,000
5,000 Metromedia International Group, Inc. ................ 43,438
-----------
692,438
-----------
EQUIPMENT -- 3.55%
2,200 Ericsson (L.M.) Telephone Company ADR ............... 74,387
7,000 Lucent Technologies, Inc. ........................... 369,250
2,500 Northern Telecom Limited ............................ 163,438
12,500 Scientific-Atlanta, Inc. ............................ 190,625
20,000 Trans-Lux Corporation ............................... 245,000
-----------
1,042,700
-----------
INTERNATIONAL TELEPHONE -- 8.74%
12,500 BC TELECOM Inc. ..................................... 273,212
7,500 BCE Inc. ............................................ 345,000
17,000 Cable & Wireless plc ADR ............................ 403,750
50,000 CPT Telefonica del Peru Cl. B ....................... 111,237
8 Japan Telecom Co. Ltd.+ ............................. 135,084
10 Nippon Telegraph & Telephone Corp. .................. 70,424
Principal
Amount or Market
Shares Value
------ -----
5,000 Telecomunicacoes Brasileiras S.A.
(Telebras) Spons. ADR ........................... $ 511,875
10,000 Telefonica de Espana ADR ............................ 717,500
-----------
2,568,082
-----------
SATELLITE COMMUNICATIONS -- 2.22%
15,000 COMSAT Corporation .................................. 365,625
5,000 General Motors Corporation Cl. H .................... 271,250
2,000 TCI Satellite Entertainment, Inc.+ .................. 15,500
-----------
652,375
-----------
TELECOMMUNICATIONS: LONG DISTANCE -- 1.27%
50 DDI Corp. ........................................... 315,734
2,500 Teleport Communications Group Inc. Cl. A+ ........... 57,500
-----------
373,234
-----------
U.S. REGIONAL OPERATORS -- 0.95%
6,000 GTE Corporation ..................................... 279,750
WIRELESS COMMUNICATIONS-- 5.91%
5,000 Advanced Information Service Ltd. ................... 42,725
12,500 Aerial Communications, Inc. ....................... 68,750
5,000 AirTouch Communications, Inc. ....................... 115,000
1,000 American Mobile Satellite Corporation ............... 11,250
30,000 Centennial Cellular Corp. Cl. A ..................... 311,250
6,000 Himachal Futuristic ................................. 7,600
12,500 NEXTEL Communications, Inc. Cl. A+ ................. 167,188
10,000 Rogers Communications, Inc. Cl. B+ .................. 62,500
175,000 Telecom Italia Mobile SpA ........................... 501,612
6,000 Telephone and Data Systems, Inc. .................... 230,250
5,000 Vodafone Group plc ADR .............................. 220,625
-----------
1,738,750
-----------
TOTAL DISTRIBUTION COMPANIES ........................ 12,577,166
-----------
TOTAL COMMON STOCKS ................................. 27,971,003
-----------
CONVERTIBLE CORPORATE BONDS -- 2.72%
CABLE PROGRAMMERS -- 1.77%
$500,000 HSN, Inc. Sub. Deb. Cv.
5.875%, 03/01/06 ................................ 520,000
-----------
ENTERTAINMENT -- 0.78%
50,000 Savoy Pictures Entertainment, Inc.
7.00%, 07/01/03 ................................. 41,750
200,000 Viacom Inc. Sub. Deb. Cv.
8.00%, 07/07/06 ................................. 187,250
-----------
229,000
-----------
9
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The Gabelli Global Interactive Couch Potato(R) Fund
Portfolio of Investments (Continued) -- March 31, 1997 (Unaudited)
================================================================================
Principal
Amount or Market
Shares Value
------ -----
MEDIA -- 0.17%
218,750(a) Havas Sub. Deb. Cv.
3.00%, 12/31/97 .............................. $ 49,339
-----------
TOTAL CONVERTIBLE
CORPORATE BONDS .............................. 798,339
-----------
CONVERTIBLE PREFERRED STOCKS -- 0.09%
PUBLISHING -- 0.09%
500 Golden Books Family Entertainment, Inc.
8.75% Cv. Pfd. ............................... 26,000
-----------
TOTAL CONVERTIBLE
PREFERRED STOCKS ............................. 26,000
-----------
PREFERRED STOCK -- 0.04%
EQUIPMENT -- 0.04%
200 Nokia Group AB Preference ........................ 11,650
-----------
TOTAL PREFERRED STOCK ............................ 11,650
-----------
U.S. GOVERMENT OBLIGATIONS -- 0.34%
$100,000 U.S. Treasury Bills 5.15%, Due 05/22/97 .......... 99,270
-----------
TOTAL U.S. GOVERMENT OBLIGATIONS ................. 99,270
-----------
TOTAL INVESTMENTS -- 98.36% ...................... 28,906,262
Other Assets Less Liabilities -- 1.64%
(2,492150.083 Shares outstanding) ............ 483,159
-----------
NET ASSETS -- 100.00% ............................ $29,389,421
===========
Net Asset Value And Redemption
Price Per Share .............................. $11.79
======
- -----------
+ Non-income producing security.
(a) Principal amount denoted in French Francs
10
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Gabelli Global Series Funds, Inc.
The Gabelli Global Interactive Couch Potato(R) 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 Directors
Mario J. Gabelli, CFA Karl Otto Pohl
Chairman and Chief Former President
Investment Officer Deutsche Bundesbank
Gabelli Funds, Inc.
Felix J. Christiana Werner J. Roeder, MD
Former Senior Director of Surgery
Vice President Lawrence Hospital
Dollar Dry Dock Savings Bank
Anthony J. Colavita Anthonie C. van Ekris
Attorney-at-Law Managing Director
Anthony J. Colavita, P.C. BALMAC International, Inc.
John D. Gabelli
Vice President
Gabelli & Company,Inc
Officers and Portfolio Managers
Mario J. Gabelli, CFA Bruce N. Alpert
President Vice President
and Treasurer
Marc J. Gabelli James E. McKee
Portfolio Manager Secretary
Ivan Arteaga, CPA
Associate Portfolio Manager
Distributor
Gabelli & Company, Inc.
Custodian, Transfer Agent and Dividend Agent
State Street Bank and Trust Company
Legal Counsel
Skadden, Arps, Slate, Meagher & Flom LLP
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This report is submitted for the general information of the shareholders of The
Gabelli Global Interactive Couch Potato(R) Fund. It is not authorized for
distribution to prospective investors unless preceded or accompanied by an
effective prospectus.
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[PHOTO]
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The
Gabelli
Global
Interactive
Couch Potato(R)
Fund
FIRST QUARTER REPORT
MARCH 31, 1997
