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Global
Growth
Gabelli
Global Interactive
Couch Potato(R) Fund
THIRD QUARTER REPORT
SEPTEMBER 30, 1999
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Global Growth
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Marc J. Gabelli
Third Quarter Report - September 30, 1999
The Gabelli Global Interactive Couch Potato(R) Fund
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* * * * *
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Morningstar Rated(TM) Gabelli Global Interactive Couch Potato(R) Fund
5 stars overall and for the three-year period ended 9/30/99 among 3210
domestic equity funds, and for the five-year period ended 9/30/99
among 2010 domestic equity funds.
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#1 Global Fund!
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Lipper Inc. ranked Gabelli Global
Interactive Couch Potato(R) Fund 1 for the
three and five-year periods ended 9/30/99
among 155 and 92 global funds, respectively.
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To Our Shareholders,
In the third quarter of 1999, the Gabelli Global Interactive Couch
Potato(R) Fund delivered excellent returns, despite a sharp decline in the U.S.
stock market and mixed results from international equity markets. We believe
strong secular growth and accelerating consolidation in the telecommunications
and media industries shield the portfolio from much of the impact of cyclical
economic and market forces.
Investment Performance
For the third quarter ended September 30, 1999, The Gabelli Global
Interactive Couch Potato(R) Fund's (the "Fund") total return was 5.91%. The
Lipper Global Fund Average and Morgan Stanley Capital International World Free
Index of global equity markets declined 1.02% and 1.60% respectively, over the
same period. The Morgan Stanley World Free Index is an unmanaged indicator of
stock market
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Past performance is no guarantee of future results. Morningstar proprietary
ratings reflect historical risk adjusted performance as of September 30, 1999
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. Lipper Inc. ranked The Gabelli Global Interactive Couch
Potato(R) Fund 4 among 240 global funds for the one year period ended September
30, 1999. Lipper rankings are based upon one, three and five-year total returns
at NAV.
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Investment Results (a)
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<TABLE>
<CAPTION>
Quarter
-------------------------------------------
1st 2nd 3rd 4th Year
--- --- --- --- ----
<S> <C> <C> <C> <C> <C>
1999: Net Asset Value .............. $20.33 $23.52 $24.91 __ __
Total Return ................. 19.7% 15.7% 5.9% __ __
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1998: Net Asset Value .............. $16.45 $17.39 $15.17 $16.99 $16.99
Total Return ................. 15.2% 5.7% (12.8)% 21.4% 28.9%
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1997: Net Asset Value .............. $11.79 $13.72 $15.02 $14.28 $14.28
Total Return ................. 0.3% 16.4% 9.5% 10.9% 41.7%
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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%
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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%
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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)
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</TABLE>
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Average Annual Returns - September 30, 1999 (a)
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1 Year.................................. 77.94%
5 Year.................................. 28.14%
Life of Fund (b)........................ 25.70%
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Dividend History
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Payment (ex) Date Rate Per Share Reinvestment Price
- ----------------- -------------- ------------------
December 28, 1998 $1.385 $16.56
December 31, 1997 $2.370 $14.28
December 31, 1996 $1.436 $11.75
December 29, 1995 $0.363 $11.72
(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 February 7,
1994. Note: Investing in foreign securities involves risks not ordinarily
associated with investments in domestic issues, including currency fluctuation,
economic and political risks.
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performance, while the Lipper Average reflects the average performance of mutual
funds classified in this particular category. The Fund was up 77.94% over the
trailing twelve-month period. The Lipper Global Fund Average and Morgan Stanley
World Free Index rose 30.54% and 30.90%, respectively, over the same
twelve-month period.
For the five-year period ended September 30, 1999, the Fund's total return
averaged 28.14% annually versus average annual total returns of 13.55% and
15.07% for the Lipper Global Fund Average and Morgan Stanley World Free Index,
respectively. Since inception on February 7, 1994 through September 30, 1999,
the Fund had a cumulative total return of 264.14%, which equates to an average
annual total return of 25.70%.
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Global Allocation
The accompanying chart presents the Fund's holdings by geographic region
as of September 30, 1999. The geographic allocation will change based on
current global market conditions. Countries and/or regions represented in the
chart and below may or may not be included in the Fund's future portfolio.
Portfolio Structure
As we have indicated in past discussions, the Interactive Couch
Potato's(R) investments are focused in areas of growth, within the context of
two main investment themes: 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 and
commerce-related services such as basic voice, data and the Internet.
The accompanying chart depicts our equity mix of the copyright/creativity
and distribution companies in our portfolio as of September 30, 1999.
HOLDINGS BY GEOGRAPHIC REGION - 9/30/99
[The following table was depicted as a pie chart in the printed material]
United States 45.0%
Europe 25.5%
Japan 17.5%
Canada 6.6%
Asia/Pacific Rim 4.1%
Latin America 1.3%
United States 45.0%
PORTFOLIO STRUCTURE - 9/30/99
[The following table was depicted as a pie chart in the printed material]
Distribution 67.1%
Copyright/Creativity 32.9%
Commentary
Wireless Works
About one year ago, AT&T began to set a new standard for the wireless
communications industry. By piecing together a nearly seamless national network,
eliminating roaming charges, and lowering prices to 20 cents per minute for
calls to anywhere in the U.S., AT&T has forced other wireless providers to
follow suit. The push is on for low cost national and even global wireless
services. Prices throughout the industry are dropping and usage is increasing.
New programs such as "calling party pays" and prepaid plans are also making
wireless services more attractive. Finally, laptop computer sales continue
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to rise, and more data is moving over wireless systems. This further fuels
demand for wireless spectrum and enhances the value of wireless assets.
Toward the end of this quarter, we celebrated a blessed event. Telephone &
Data Systems, one of our larger holdings, sold its personal communications
services ("PCS") business Aerial Communications to VoiceStream Wireless.
Although we like the investment prospects for PCS, TDS obtained a premium price
for this business, and in the process of eliminating an asset that demanded
considerable capital expenditures, improved its net earnings outlook. TDS stock
made a move upward in the midst of the market declines during the last two weeks
of September. In addition, this transaction should help to surface value in our
other wireless communications holdings.
Viacom and CBS--Dan Rather, Meet The Rugrats
We are not likely to see cartoon characters on the CBS Evening News, but
there is a great deal of synergy in the new Viacom/CBS. The combined company
joins Time Warner, News Corp., and Disney in the pantheon of fully integrated
media companies. They have content--Paramount Pictures, CBS' programming assets,
and Simon & Schuster publishing--and distribution--the CBS Television Network,
CBS Radio, Viacom's thriving cable networks (MTV, VH-1, and Nickelodeon), and
CBS' huge outdoor advertising (billboard) business. Any advertiser looking to
reach any demographic consumer segment will not have to go anywhere else. This
"one stop shopping" feature for advertisers, the complete vertical integration
of the company, and the ability to cross-market its own products should enhance
revenues and drive down costs. In addition, CBS' Mel Karmazin is a worthy heir
apparent to Viacom's energetic Chairman Sumner Redstone, thus diluting Wall
Street's concern regarding the management succession question at Viacom. Both
CBS' and Viacom's stock prices moved higher on the announcement of the merger,
an indication that Wall Street understands that one plus one equals more than
two in this combined company.
Broadcast News
The FCC's August 1999 decision to allow duopolies--ownership of two
television stations in the same market--should accelerate consolidation in the
broadcast industry. Any broadcaster with a station in the top fifty markets will
likely be entertaining overtures from the likes of NBC (owned by General
Electric), ABC (owned by Disney), the new CBS/Viacom, and larger independent
broadcasters, such as Tribune. NBC has already purchased a 32% position in
Paxson Communications. We expect to see portfolio holdings such as Young
Broadcasting, Sinclair Broadcast Group, and Granite Broadcasting receive a lot
of attention in the months ahead.
Cable Modems
In our second quarter letter to shareholders, we opined that high speed
cable modems gave the cable television providers an edge over telephone
companies in the battle for Internet traffic. This was also the reason we cited
for our investment in Scientific-Atlanta, one of the leading cable modem
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manufacturers. Scientific-Atlanta's stock price rose sharply this quarter on the
announcement that Motorola was buying its larger competitor General Instrument.
When interviewed by the financial press following this announced deal,
Scientific-Atlantic management stated that they believe they can continue to
compete in the fast growing market for cable modems as an independent company.
However, they also promised not to stand in the way of anything that would
enhance the value of their shareholders' investment. That could be interpreted
as an invitation to dance.
Sprinting into Battle
As we write, BellSouth has joined MCI WorldCom in bidding for Sprint. Both
bids face serious regulatory hurdles. Bell South/Sprint would challenge current
rules preventing the regional Bells from getting into the long distance business
and an MCI WorldCom/Sprint combination may inspire antitrust scrutiny. So, we
may not see any deal get done. But, these competing bids underscore the value of
wireless and wired telecommunications assets and the economic forces driving
large telecommunications companies to get even larger. We believe that at some
point, regulatory resistance to such deals will wane and the telecommunications
giants here and abroad will be allowed to slug it out for the assets they need
to become global powerhouses.
This Quarter's Scorecard
Three wireless communications companies (Omnipoint, Western Wireless, and
Vodafone AirTouch) were on our Top Twenty performance list this quarter. Three
Japanese broadcasters (Nippon Broadcasting System, Asahi Broadcasting, and Tokyo
Broadcasting System) also made the list, as did U.S. independent broadcasters
Granite Broadcasting and Young Broadcasting. The previously-mentioned Telephone
& Data Systems and Scientific-Atlanta also finished high on our leaderboard.
Three of the now Big Four media companies (News Corp., Disney, and Time Warner)
disappointed, and although it rallied after announcing the CBS acquisition,
Viacom closed the quarter with a modest loss. Despite its position as the number
one diversified telecommunications company in the world, AT&T also gave up
considerable ground.
Let's Talk Stocks
The following are stock specifics on selected holdings of our Fund.
Favorable earnings prospects do not necessarily translate into higher stock
prices, but they do express a positive trend which we believe will develop over
time. The share prices of foreign holdings are stated in U.S. dollar equivalent
terms as of September 30, 1999.
Bell Atlantic Corp. (BEL - $67.3125 - NYSE), following its merger with NYNEX and
its impending merger with GTE (GTE - $76.875 - NYSE), is a premier provider of
advanced voice and data services from Maine to Virginia - the world's most
information-intensive marketplace. The company serves 22 million households.
Bell Atlantic is one of the world's largest and most successful wireless
companies, with domestic operations in 24 states and international investments
in Latin America, Europe and the Pacific
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Rim. In September 1999, BEL announced a wireless joint venture with Vodafone
AirTouch to provide domestic cellular and PCS services. BEL is also a global
leader in publishing directories and in providing Internet-based shopping
guides, website creation and hosting, and other electronic commerce services.
The company has a mix of mature and start-up communications businesses in Europe
and the Pacific Rim, including a 24.9% stake in Telecom Corp. of New Zealand and
an 18.5% stake in Cable & Wireless Communications plc.
Cablevision Systems Corp. (CVC - $72.75 - AMEX) is one of the nation's leading
communications and entertainment companies, with a portfolio of operations that
span 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 has
a controlling interest in 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 operates Radio City Entertainment and holds a long term
lease for Radio City Music Hall, home of the world famous Rockettes.
Canal + (CNLP.PA - $59.70 - Paris Stock Exchange) is Europe's leading pay
television company operating throughout Europe with the exception of the U.K.,
Ireland and Germany. Canal + provides premium channels as well as film and
television programming. The company has expanded its businesses to include
digital television service and is a majority owner in Numericable, one of
France's top three cable operators, and Paris St. Germain, the top French soccer
club.
Compagnie Financiere Richemont AG (RIFZ.S - $2,002.23 - Zurich Stock Exchange)
is one of the world's leading luxury goods companies with such brand names as
Cartier, Piaget, Montblanc, Karl Lagerfeld and Alfred Dunhill. The company also
has a major investment in tobacco. Richemont recently swapped its tobacco
business, Rothmans International, in exchange for a 25% stake in B.A.T., the
world's second largest tobacco company. Adjusted for its stake in B.A.T. and
Vivendi, the French utility and media conglomerate, the market values its wholly
owned luxury goods business at a significant discount to other luxury goods
producers.
Japan Telecom Co. Ltd. (9434.T - $23,405.00 - Tokyo Stock Exchange) provides
domestic long distance telephone and leased line services through its fiber
optic cable network connected to local telephone exchanges owned by Nippon
Telegraph & Telephone and local common carriers. The company also participates
in other telecommunications-related businesses such as cellular telephone
services. British Telecommunications and AT&T have each recently taken a
significant stake in Japan Telecom and Vodafone AirTouch is a partner in its
cellular operations.
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KDD Corp. (9431.T - $103.08 - Tokyo Stock Exchange) provides international
telecommunications services in Japan. The company's services include telephone,
telex, circuit leasing, data communications, and data transfer. KDD completed
the JIH (a nationwide fiber-optic network) in the spring of this year,
augmenting the existing fiber-optic network it inherited from its merger with
TWJ, forming the most extensive fiber-optic network in the country. KDD is
reportedly discussing a joint venture with American providers Qwest
Communications and SBC.
Liberty Media Group (LMG'A - $37.125 - NYSE) is engaged in businesses which
provide programming services, including production, acquisition and distribution
through all available 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 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 Corp. (T - $43.50 - NYSE) and are now traded on the New York
Stock Exchange.
NTT Mobile Communications Network Inc. (9437.T - $19,660.16 - Tokyo Stock
Exchange) provides various telecommunication services including cellular,
pagers, alternative telephone (for ships and airplanes) and packet communication
services. The company also sells cellular phones, car phones, and pager
equipment. NTT Mobile Communications is now well know as NTT DoCoMo in Japan.
Omnipoint Corp. (OMPT - $55.875 - Nasdaq) is a leading personal communications
services ("PCS") carrier in the U.S., with licenses covering major metropolitan
areas containing nearly 100 million people. On June 23, 1999, Omnipoint agreed
to be acquired by VoiceStream Wireless (VSTR - $61.72 - Nasdaq) for 0.825 shares
of VoiceStream and $8.00 cash per shares of OMPT. The combined company will have
PCS licenses covering about 190 million points of presence ("POPs") and will
become a major PCS carrier.
Seagram Co. (VO - $45.50 - NYSE), with its 1995 purchase of an 80% interest in
MCA from Matsushita Electric Industrial Co. for $5.7 billion, operates two
global businesses: beverages and entertainment. Spirits and Wine group's major
beverage brands include Chivas Regal, Martell, Mumm, Crown Royal and Seagram's
Gin. With its $10.4 billion December acquisition of Polygram, Seagram has
created the world's leading music company, the Universal Music Group. Seagram's
entertainment business includes the Universal Motion Pictures Group, the
Universal Studios Recreation Group and a 46% interest in USA Networks (USAI -
$38.75 - Nasdaq).
Softbank Corp. (9984.T - $382.00 - Tokyo Stock Exchange) is Japan's number one
software distributor, holding franchises for Microsoft, Novell and Oracle
products. The company also owns Kingston Technology, the number one memory
module maker in the world. Softbank's 71%-ownership of Ziff-Davis (ZD - $16.125
- - NYSE), the second largest magazine publisher in the U.S., and its 11% stake in
Japan Digital Broadcasting, illustrate its media interests. ZD COMDEX and
Forums, a division of Ziff-
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Davis, produce computer-related trade shows. Softbank has direct or indirect
investments in over 60 Internet-related companies including Yahoo! (28%),
GeoCities (22%) and E*Trade Group (27%). With the deregulation of the financial
services sector, the company is now poised to develop its Web-based businesses
in Japan.
Sony Corp. (6758.T - $148.95 - Tokyo Stock Exchange) develops and manufactures
consumer and industrial electronic equipment. The company's products include
audio and video equipment, televisions, displays, semiconductors, electronic
components, computers and computer peripherals, and telecommunication equipment.
Sony will focus on evolving digital network technology in its electronics
business. In July, the Columbia House record and video club subsidiary announced
plans to merge with CDNow. After the merger, Sony will have a 37% stake in the
new company.
Tokyo Broadcasting System Inc. (9401.T - $20.08 - Tokyo Stock Exchange) is a
media company, nationally broadcasting television and radio programs. The
company is active in television program production, film production, recorded
music, and both domestic and international cable television programming. Tokyo
Broadcasting also produces and sells software, videotapes, CD-ROMs, and DVDs.
The company is in the process of launching digital satellite broadcasting in a
joint venture with Sumitomo and is also considering spinning off its radio and
other production divisions.
Viacom Inc. (VIA'A - $43.25 - AMEX; VIA'B - $42.25 - AMEX), long a major
provider of entertainment "content", has evolved into one of the world's
dominant media companies. The additions of Paramount Communications, Blockbuster
Entertainment (acquired in 1994), and publisher Simon & Schuster make Viacom one
of the largest entertainment and publishing 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).
Vivendi (EX.PA - $70.19 - Paris Stock Exchange) is France's largest
environmental services company, engaged in water purification and distribution,
energy, waste management, construction and communications. The group owns 44% of
Cegetel, France's second largest telecommunications operator. Sales at Cegetel
rose 90% in 1998 to $3.4 billion following the company's launch of long distance
service and the boom in demand for mobile services. Only five percent of sales
are generated in emerging markets.
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.
Additionally, 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.
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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].
In Conclusion
Telecommunications and multimedia stocks continued to excel in largely
uninspiring global equity markets. We saw deals throughout all of the sectors of
our interactive universe. There is a "whole lotta shakin' goin' on" in these
industries, and as we advance further into the "Age of Interactivity", we
believe values will continue to grow.
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
business day for further information.
Sincerely,
/s/ Marc J. Gabelli /s/ Ivan Arteaga
Marc J. Gabelli Ivan Arteaga, CFA
Portfolio Manager Associate Portfolio Manager
October 25, 1999
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Top Ten Holdings
September 30, 1999
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Liberty Media Group Seagram Co.
Sony Corp. NTT Mobile Communications
Viacom Inc. Cablevision Systems Corp.
Softbank Corp. Omnipoint Corp.
Vivendi Bell Atlantic Corp.
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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.
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The Gabelli Global Interactive Couch Potato(R) Fund
Portfolio of Investments -- September 30, 1999 (Unaudited)
================================================================================
Market
Shares Value
------ ------
COMMON STOCKS -- 96.6%
Broadcasting -- 10.7%
55,000 Ackerley Group Inc. ................................... $ 677,187
1,000 Asahi Broadcasting Corp. .............................. 102,045
69,500 Audiofina ............................................. 3,513,355
100,000 Flextech plc+ ......................................... 1,554,930
180,000 Granada Group plc ..................................... 1,542,418
55,000 Granite Broadcasting Corp. ............................ 611,875
70,000 Grupo Televisa SA, GDR ................................ 2,795,625
4,000 Nippon Broadcasting System Inc. ....................... 299,583
10,015 NRJ SA ................................................ 2,717,908
200,000 Publishing & Broadcasting Ltd. ........................ 1,194,533
540,000 Seven Network Ltd. .................................... 1,674,304
125,000 Sinclair Broadcast Group Inc.+ ........................ 1,132,812
181,000 Tokyo Broadcasting System Inc. ........................ 3,634,742
30,000 Young Broadcasting Inc., Cl. A+ ....................... 1,571,250
------------
23,022,567
------------
Business Services -- 4.1%
10,000 Berlitz International Inc.+ ........................... 210,625
8,000 Havas Advertising SA .................................. 1,915,650
9,000 Publicas SA ........................................... 2,088,058
2,000 Telefonica Publicidad e Informacion SA+ ............... 46,188
66,000 Vivendi ............................................... 4,632,360
------------
8,892,881
------------
Cable -- 5.1%
60,000 Cablevision Systems Corp., Cl. A+ ..................... 4,365,000
40,000 Jones Intercable Inc., Cl. A+ ......................... 2,162,500
30,000 MediaOne Group Inc.+ .................................. 2,049,375
25,000 NTL Inc.+ ............................................. 2,402,344
------------
10,979,219
------------
Communications Equipment -- 3.3%
165,000 Furukawa Electric Co. Ltd. ............................ 980,902
22,500 Mannesmann AG ......................................... 3,608,126
50,000 Scientific-Atlanta Inc. ............................... 2,478,125
------------
7,067,153
------------
Computer Software and Services -- 4.4%
80,000 CDNow Inc.+ ........................................... 995,000
20,000 EMusic.com Inc.+ ...................................... 297,500
30,000 Lycos Inc.+ ........................................... 1,503,750
50,000 PSINet Inc.+ .......................................... 1,798,437
13,000 Softbank Corp. ........................................ 4,929,083
------------
9,523,770
------------
Consumer Products -- 2.5%
1,300 Compagnie Financiere Richemont AG ..................... 2,628,902
6,000 Nintendo Co. Ltd. ..................................... 952,675
90,000 Sega Enterprises Ltd. ................................. 1,874,736
-------------
5,456,313
-------------
Electronics -- 2.5%
35,800 Sony Corp. ............................................ 5,332,378
-------------
Entertainment -- 7.4%
270,000 Liberty Media Group, Cl. A+ ........................... $10,023,750
605,000 Rank Group plc ........................................ 2,133,954
100,000 USA Networks Inc.+ .................................... 3,875,000
-------------
16,032,704
-------------
Entertainment Distribution -- 1.0%
70,000 GC Companies Inc.+ .................................... 2,100,000
-------------
Global Entertainment -- 8.1%
50,000 Canal Plus ............................................ 2,985,221
90,000 Disney (Walt) Co. ..................................... 2,328,750
180,000 EMI Group plc ......................................... 1,315,722
100,000 Seagram Co. ........................................... 4,550,000
20,000 Time Warner Inc.+ ..................................... 1,215,000
80,000 Viacom Inc., Cl. A+ ................................... 3,460,000
40,000 Viacom Inc., Cl. B+ ................................... 1,690,000
-------------
17,544,693
-------------
Hotels and Gaming -- 0.5%
1,200,000 Star City Holdings Ltd. ............................... 1,174,950
-------------
Publishing -- 9.9%
130,500 Arnoldo Mondadori Editore SpA ......................... 2,277,707
46,000 Dow Jones & Co. Inc. .................................. 2,455,250
1,000,000 Gakken Co. Ltd.+ ...................................... 1,320,039
200,000 Independent News & Media plc, Dublin .................. 1,053,607
25,000 Independent News & Media plc, London .................. 125,530
62,000 New York Times Co., Cl. A ............................. 2,325,000
175,000 Primedia Inc.+ ........................................ 2,450,000
141,000 Schibsted ASA ......................................... 1,392,615
20,000 Scripps (E.W.) Co. .................................... 982,500
30,000 Times Mirror Co., Cl. A ............................... 1,974,375
51,000 Tribune Co. ........................................... 2,537,250
255,000 United News & Media plc ............................... 2,455,867
-------------
21,349,740
-------------
Satellite -- 0.3%
22,555 COMSAT Corp. .......................................... 668,192
-------------
Telecommunications -- 27.3%
32,500 AT&T Canada Inc.+ ..................................... 2,041,406
24,000 AT&T Canada Inc., Cl. B+ .............................. 1,507,858
30,000 AT&T Corp. ............................................ 1,305,000
60,000 Bell Atlantic Corp. ................................... 4,038,750
85,000 Cable & Wireless plc, ADR ............................. 2,815,625
95,000 Cincinnati Bell Inc. .................................. 1,846,563
250,751 Citizens Utilities Co., Cl. B+ ........................ 2,836,621
400 DDI Corp. ............................................. 2,995,834
250,000 GST Telecommunications Inc.+ .......................... 1,757,813
100,000 Intermedia Communications Inc.+ ....................... 2,175,000
165 Japan Telecom Co. Ltd. ................................ 3,861,817
37,900 KDD Corp. ............................................. 3,906,558
60,000 Korea Telecom Corp., ADR+ ............................. 2,220,000
50,000 KPN NV ................................................ 2,197,676
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The Gabelli Global Interactive Couch Potato(R) Fund
Portfolio of Investments (Continued) -- September 30, 1999 (Unaudited)
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Market
Shares Value
------ ------
Telecommunications (Continued)
215 Nippon Telegraph and Telephone Corp. .................. $ 2,636,802
45,000 Portugal Telecom SA ................................... 1,871,590
115,000 Rogers Communications Inc., Cl. B+ .................... 1,944,180
101,500 Rogers Communications Inc., Cl. B, ADR+ ............... 1,706,469
100,000 RSL Communications Ltd., Cl. A+ ....................... 1,825,000
50,000 Sprint Corp. .......................................... 2,712,500
25,000 Telecom Italia SpA, ADR ............................... 2,154,688
146,880 Telefonica SA ......................................... 2,349,445
130,650 Viag AG ............................................... 2,474,987
124,000 Viatel Inc.+ .......................................... 3,665,750
------------
58,847,932
------------
Wireless Communications -- 9.5%
225 NTT Mobile Communication Network Inc. ................. 4,423,536
75,000 Omnipoint Corp. ....................................... 4,190,625
97,000 Rogers Cantel Mobile Communications Inc., Cl. B+ ...... 2,297,688
45,000 Telephone & Data Systems Inc. ......................... 3,996,563
10,000 Vodafone AirTouch plc, ADR ............................ 2,377,500
72,000 Western Wireless Corp., Cl. A+ ........................ 3,228,750
------------
20,514,662
------------
TOTAL COMMON STOCKS 208,507,154
------------
PREFERRED STOCKS -- 2.0%
Broadcasting -- 0.3%
350,000 Village Roadshow Ltd., Pfd. ........................... 658,657
------------
Publishing -- 0.9%
70,000 News Corp. Ltd., ADR Preference Shares ................ 1,868,125
------------
Satellite -- 0.8%
100,000 Loral Space & Communications Ltd., 6.00% Cv. Pfd. ..... 1,718,750
------------
TOTAL PREFERRED STOCKS 4,245,532
------------
Principal Market
Amount Value
--------- ------
CORPORATE BONDS -- 0.0%
Entertainment -- 0.0%
$50,000 USA Networks Inc., Cv. 7.00%, 07/01/03 ................ $ 48,438
------------
TOTAL INVESTMENTS -- 98.6% (Cost $166,572,639) ........ 212,801,124
Other Assets and Liabilities (Net) -- 1.4% ............ 2,952,562
------------
NET ASSETS -- 100.0%
(8,662,154 shares outstanding) ...................... $215,753,686
============
NET ASSET VALUE, Offering and Redemption
Price Per Share ..................................... $24.91
======
Number of Unrealized
Contracts Appreciation
--------- ------------
FUTURES CONTRACTS
100 Short S&P 500 Index Futures 12/17/99 .................. $ 1,868,750
============
- -----------
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR -- American Depositary Receipt.
GDR -- Global Depositary Receipt.
% of
Market Market
Geographic Diversification Value Value
------ ------
North America 51.6% $109,734,569
Europe 25.5% 54,229,629
Japan 17.5% 37,250,732
Asia/Pacific Rim 4.1% 8,790,569
Latin America 1.3% 2,795,625
----- -----------
100.0% $212,801,124
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11
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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
Chairman and Chief
Investment Officer
Gabelli Asset Management Inc.
Felix J. Christiana
Former Senior Vice President
Dollar Dry Dock Savings Bank
Anthony J. Colavita
Attorney-at-Law
Anthony J. Colavita, P.C.
John D. Gabelli
Senior Vice President
Gabelli & Company, Inc.
Karl Otto Pohl
Former President
Deutsche Bundesbank
Werner J. Roeder, MD
Medical Director
Lawrence Hospital
Anthonie C. van Ekris
Managing Director
BALMAC International, Inc.
Officers and Portfolio Managers
Mario J. Gabelli, CFA
President and Chief
Investment Officer
Bruce N. Alpert
Vice President and Treasurer
Marc J. Gabelli
Portfolio Manager
James E. McKee
Secretary
Distributor
Gabelli & Company, Inc.
Custodian, Transfer Agent and Dividend Agent
State Street Bank and Trust Company
Legal Counsel
Skadden, Arps, Slate, Meagher & Flom LLP
- --------------------------------------------------------------------------------
This report is submitted for the general information of the shareholders of The
Gabelli Global Interactive Couch Potato(R) Fund. It is not authorized for
distribution to prospective investors unless preceded or accompanied by an
effective prospectus.
- --------------------------------------------------------------------------------
GAB 442 Q399SR
