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The
Gabelli
Global
Opportunity
Fund
FIRST QUARTER REPORT
MARCH 31, 1999
<PAGE>
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Gabelli Global Opportunity Fund
First Quarter Report
March 31, 1999
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Marc J. Gabelli and Caesar Bryan
Portfolio Managers
To Our Shareholders,
In the first quarter of 1999, the U.S. and Japanese stock markets advanced
while major European markets retreated. Led by telecommunications, cable
television and media stocks, our portfolio delivered strong absolute and
relative gains.
Investment Performance
For the first quarter ended March 31, 1999, The Gabelli Global Opportunity
Fund's (the "Fund") total return was 8.7%. The Lipper Global Fund Average and
Morgan Stanley Capital International World Free Index of global equity markets
had total returns of 2.8% and 4.0%, respectively, over the same period. The
Lipper average and Morgan Stanley World Free index are unmanaged indicators of
investment and stock market performance. Since inception on May 11, 1998 through
March 31, 1999, the Fund was up 19.7%. The Lipper Global Fund Average and Morgan
Stanley World Free Index rose 2.2% and 10.3%, respectively, over the same
period.
Our Investment Objective
The Gabelli Global Opportunity Fund seeks to invest in common stock of
companies which have rapid growth in revenues and earnings and equities trading
at a significant discount to their intrinsic value. The Fund's primary objective
is capital appreciation. Marc Gabelli and Caesar Bryan are responsible for the
day-to-day management of the Gabelli Global Opportunity Fund. Currently, Marc
Gabelli is Portfolio Manager for the Gabelli Global Interactive Couch Potato(R)
Fund. Caesar Bryan is Portfolio Manager of the Gabelli International Growth and
Gold Funds.
<PAGE>
INVESTMENT RESULTS (a)
<TABLE>
<CAPTION>
Quarter
----------------------------------------
1st 2nd 3rd 4th Year
--- --- --- --- ----
<S> <C> <C> <C> <C> <C>
1999: Net Asset Value.......... $ 11.47 -- -- -- --
Total Return............. 8.7% -- -- -- --
- --------------------------------------------------------------------------------------
1998: Net Asset Value.......... -- $ 10.23 $ 9.69 $ 10.55 $ 10.55
Total Return............. -- 2.3%(b) (5.3)% 13.7% 10.1%(b)
- --------------------------------------------------------------------------------------
</TABLE>
Dividend History
- --------------------------------------------------------------------------------
Payment (ex) Date Rate Per Share Reinvestment Price
- ----------------- -------------- ------------------
December 28, 1998 $0.450 $10.34
(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 May 11, 1998.
The returns stated above cover short periods of less than one year beginning May
11, 1998 through March 31, 1999. Note: Investing in foreign securities involves
risks not ordinarily associated with investments in domestic issues, including
currency fluctuation, economic and political risks.
- --------------------------------------------------------------------------------
Global Allocation
The accompanying chart presents the Fund's holdings by geographic region
as of March 31, 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.
[GRAPHIC OMITTED]
HOLDINGS BY GEOGRAPHIC REGION - 3/31/99
[The following table was depicted as a pie chart in the printed material.]
Europe 42.8%
United States 36.2%
Japan 11.9%
Canada 5.3%
Australia 2.4%
South Africa 1.4%
COMMENTARY
United We Stand
In 1998, European stock markets were buoyed by optimism regarding the
benefits of economic union and the January 1, 1999 introduction of the Euro.
Thus far, however, European economies and the Euro have disappointed. European
economies remain sluggish and since its introduction, the Euro is off more than
9% versus the U.S. dollar. We believe this will change. The Euro's decline
against the dollar reflects the current economic fundamentals in the region,
rather than a lack of confidence in the new currency. With European inflation at
1.0% and a current account surplus of $100 billion at the end of
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1998, the Euro is on solid footing. Recent interest rate cuts initiated by the
European Central Bank should help regional economies regain some momentum, and
the Euro should firm against the dollar. Longer term, we believe that the free
movement of capital will shift power from politicians to the market (the
consumer) and that regional economies and stock markets will benefit from a
unified Europe.
Land of the Rising Sun?
The Japanese stock market has experienced six significant rallies since
the market peaked in 1989. Each one has stalled after a few months. Is this one
any different? Maybe. Two things have changed. First, a massive bank bailout has
been implemented which will help end the credit crunch. Second, Japanese
companies have finally recognized that restructuring is necessary for survival.
Restructuring involves a degree of economic dislocation. People lose jobs and
wages often fall. This has spooked consumers, who are simply not spending, and
despite massive injections of capital from the government, the economy remains
weak. If the politicians continue to encourage corporate restructuring and if
corporate managements continue to effectively implement these restructuring,
short term pain will produce long term gain. If the Japanese give up and return
to business as usual, the Japanese stock market rally will most likely be
short-lived.
Telecommunications and Media
Telecommunications and media stocks shrugged off higher U.S. interest
rates and a disappointing European economy on their way to posting another
strong quarter. Secular trends in these industries are proving more powerful
than macroeconomic and market forces in the U.S. and abroad. We expect this to
continue as deregulation, technology and accelerating merger and acquisition
activity alters the telecommunications and media landscape.
In the U.S. much of the action has centered on mergers between
telecommunications and cable television companies. Believing that broadband
cable television wires will be the most effective highway into American homes
and offices, AT&T bought cable giant Tele-Communications Inc. and signed a
merger agreement with MediaOne. AT&T is also working out a deal with Time Warner
to use its cable lines to provide a package of local and long distance
telephony, Internet access and home entertainment services.
AT&T is not the only company hoping to offer more services to more
customers. Virtually every major player in the telecommunications industry
worldwide is looking for a way to offer a full menu of telephony, Internet and
entertainment services to more people, whether it be through cable television
lines, wireless systems or via technologically enhanced telephone wires. This is
the gold rush of the next millennium and it has already started as we prepare to
exit this millennium. What does this mean for creativity and content providers?
It means a rapidly expanding global audience. Almost everyone from
3
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e-commerce retailers, to television or movie producers, to newspaper and
magazine publishers will benefit by the ability to easily reach into more
people's wallets worldwide.
International telephone companies have not advanced toward their cable
television colleagues yet, but they may begin following the AT&T's lead.
International telephone companies appear to be focusing on global alliances. We
are hearing whispers that British Telecom and AT&T are considering investments
in Japan Telecom. We think this kind of activity--the global extension of
dominant telephone franchises--should continue to drive values in the
telecommunications industry.
Winners and Losers
This quarter's top ten performance list is dominated by telecommunications
and cable television companies including United International Holdings, Global
Crossing, Rogers Communications, Japan Telecom and two takeovers, MediaOne (by
AT&T) and Frontier Corp. (by Global Crossing). Financial services investments
Citigroup, J.P. Morgan and Banca Commerciale Italiana, and retailers Richemont
and Christian Dior also performed well.
Our biggest disappointments included global branded consumer goods giants
Unilever and Nestle, Barrick Gold Corp. and Whitman.
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 March 31, 1999.
BCE Inc. (BCE - $44.3125 - NYSE) is Canada's global communications company. BCE
recently announced a major transaction with Ameritech (AIT - $57.875 - NYSE).
Under the agreement, BCE will sell 20% of Bell Canada, its wholly-owned Canadian
telecommunications subsidiary, to Ameritech. BCE also owns strategic stakes in
Northern Telecom (NT - $62.125 - NYSE), Teleglobe, BCE Emergis and CGI Group.
One share of BCE provides ownership of 0.42 shares of Northern Telecom. The
company's positions in satellites, network operations, information technology,
media and e-commerce are expected to provide growth for the company.
Canal + (CNLP.PA - $293.11 - 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.
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Citizens Utilities Co. (CZN - $7.75 - NYSE) provides telecommunications services
and public services to approximately 1.8 million customers in 21 states.
Citizens owns 83% of Electric Lightwave (ELIX - $9.125 - Nasdaq), a CLEC serving
primarily the western U.S. A year ago, management authorized the separation of
Citizen's telecommunications businesses and public services businesses into two
stand-alone, publicly traded companies. Upon separation, which is expected to
occur in the fall, the new company's telecommunications business will include
Citizen's stake in Electric Lightwave, as well as incumbent local exchange
carrier operations with nearly one million access lines. The company's public
services businesses, consisting of natural gas distribution, electric
distribution, water distribution and wastewater treatment facilities in 10
states, will continue to trade as Citizens Utilities. The company sold its 16%
stake in Centennial Cellular Corp. for approximately $205 million. Citizens also
anticipates monetizing its ownership of Century Communications' (CTYA - $46.4375
- - Nasdaq) stock and cable operations through a sale to Adelphia Communications
for approximately $220 million.
CRH plc (CRH.L - $17.26 - London Stock Exchange) is a Dublin, Ireland-based
international building materials company. CRH is a leading producer and
distributor of a wide range of building products and materials. CRH's diversity
in its product line and geographic reach keep this company well protected
against a slow down in any one particular product segment or country. This
global presence will contribute to CRH's continued organic growth.
Frontier Corp. (FRO - $51.875 - NYSE) is a telecommunications provider operating
various business segments: the nation's fifth largest long distance company, a
local telephone provider in and around Rochester, NY with one million lines, a
CLEC with over 200,000 lines, a nationwide network leased long term from Qwest
and a high-end web hosting business. Frontier has announced plans to merge with
Global Crossing (GBLX - $46.25 - Nasdaq) in a stock for stock transaction for
$62 per Frontier share if GBLX trades between $34.56 and $56.78 before the
transaction is completed. Hamilton, Bermuda-based GBLX also will take on $1.3
billion in FRO debt. The acquisition of FRO is the latest step by GBLX toward
becoming a worldwide phone company.
Granada Group plc (GAA.L - $20.26 - London Stock Exchange) is involved in two
business segments, media and hospitality. The company has a leading position in
commercial television in the U.K. serving 26 million people, nearly half of the
total population. Granada also owns the largest commercial television production
company in the U.K. and has also recently been awarded a license to broadcast
digital terrestrial television. The hospitality division, which includes
restaurants and hotels, has been benefiting from strong economic growth in the
U.K. Granada is the market leader in hotels following their takeover of Forte.
We believe Granada is an attractively valued growth stock.
Ito Yokado Co. Ltd. (8264.T - $64.34 - Tokyo Stock Exchange) is one of Japan's
leading retailers and operates supermarket stores mainly in Tokyo and Kanagawa,
selling clothing, foodstuffs and household utensils. The company's subsidiaries
include Seven-Eleven Japan. Ito Yokado ranks second in industry sales and is
top-ranked in profits.
5
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Japan Telecom Co. Ltd. (9434.T - $14,354.40 - 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 and Telephone and local common carriers. The company also participates
in other telecommunications-related businesses such as cellular telephone
services. British Telecom and AT&T have each recently taken a significant stake
in Japan Telecom.
Liberty Media Group (LMG'A - $52.625 - NYSE) is engaged in businesses which
provide programming services, including production, acquisition and distribution
through all available media formats, and businesses engaged in electronic
retailing, direct marketing and other services. LMG holds interests in globally
branded entertainment networks such as Discovery Channel, USA, 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 - $79.8125 - NYSE) and are now traded on the New York Stock Exchange.
MediaOne Group Inc. (UMG - $63.50 - NYSE) is one of the nation's leading
broadband services companies. UMG provides more than five million 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, MediaOne provides
high quality cable television services. 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. The Group'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 company recently agreed to be acquired by AT&T Corp. (T -
$79.8125 - NYSE) for $54 billion.
Rogers Communications Inc. (RG - $18.125 - NYSE) provides cellular service and
digital personal communications services ("PCS") through its interest in Rogers
Cantel Mobile Communications. The company also offers cable television and video
services through Rogers Cablesystems and radio and television broadcasting,
publishing, and new media businesses through Rogers Multi-media. We believe the
company is likely to participate in the concentration of the North American
cable television industry.
Schlumberger Ltd. (SLB - $60.1875 - NYSE) is the leading provider of engineering
and technical services to the international petroleum industry. The company is
the industry leader in terms of research and development. The Oilfield Services
segment includes wireline and testing, cementing and stimulation, pumping, drill
fluids, marine and land seismic surveys, contract drilling, directional drilling
and measurement-while-drilling. The acquisition of Camco International in a
transaction valued at $2.2 billion
6
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has been completed. The Measurement and Systems segment includes meters and
instruments and automatic test equipment. The Smart Cards & Terminals division
is the leading provider of smart card-based solutions worldwide, shaping the new
world of smart solutions by providing leading-edge technology to enable
innovative smart card and terminal applications that enhance the security and
convenience of businesses and communities.
Seagram Co. (VO - $50.00 - 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, Absolut, Martell, Mumm, Crown Royal and
Seagram's Gin. With its 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 -
$35.8125 - Nasdaq).
Telecom Italia SpA (TIT.MI - $10.62 - Milan Stock Exchange) is the principal
provider of domestic and international telecommunications services in Italy.
Telecom Italia is also the seventh largest fixed telecommunications operator as
well as the largest mobile operator in Europe through its 60% held subsidiary,
Telecom Italia Mobile. In addition, Telecom Italia also provides leased lines,
data communications services, satellite communications services and the
development and manufacture of telecommunications equipment and networks. The
company is currently the subject of a takeover battle between Deutsche Telekom
and Olivetti.
Telephone & Data Systems Inc. (TDS - $56.375 - AMEX) is a diversified
telecommunications company with established cellular and local telephone
operations and a developing personal communications services ("PCS") business.
TDS provides high quality telecommunications services to 3 million customers in
35 states. TDS owns 81.1% of United States Cellular Corp. (USM - $44.00 - AMEX),
the nation's seventh largest cellular telephone company. It also owns 82.4% of
Aerial Communications Inc. (AERL - $7.75 - Nasdaq), TDS's PCS subsidiary which
owns the licenses to provide PCS service in six major trading areas ("MTAs")
encompassing approximately 27.6 million population equivalents. On December 8,
1998, TDS announced its intent to spin-off its Aerial stake to existing TDS
shareholders on a tax-free basis and focus on its core wireline and cellular
operations. The transaction is expected to close by the end of the year.
USA Networks Inc. (USAI - $35.8125 - 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.
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Vivendi (EX.PA - $246.04 - 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. With 159 million shares outstanding, the
company has an equity market capitalization of Euro 35 billion or $40 billion.
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 Opportunity Fund and other Gabelli Funds are
available through the no-transaction fee programs at many major discount
brokerage firms.
Proposal to Shareholders
The Fund's Board of Directors has asked shareholders to consider a
proposal to amend the Fund's Articles of Incorporation to permit the Fund to
offer additional classes of shares. We believe that this proposal would benefit
the shareholders, and we urge you to give the proposal your careful
consideration.
For existing shareholders we intend to remain a no-load fund. At the same
time, mutual fund distributors are increasingly employing a variety of different
types and combinations of sales charge arrangements for different classes of
shares that are targeted to the needs of particular types of investors. Your
Board of Directors believes that the Fund should be able to provide the
distribution alternatives and investment flexibility provided by other similarly
situated funds that offer multiple classes of shares. We believe that approval
of the proposal to permit the Fund to offer additional classes of shares will
enhance the potential for the Fund to attract additional investors in a manner
that could provide additional benefits for all investors in the Fund. Again, to
repeat, approval of this proposal will not diminish the ability of existing and
future shareholders to purchase and redeem shares at net asset value.
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].
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In Conclusion
We are pleased to have reported another excellent quarter during a period
in which global stock markets produced uneven returns. We believe our
substantial commitment to telecommunications and media stocks will continue to
reward shareholders and that our stock selection discipline in other industry
groups will help us maximize returns.
The Fund's daily net asset value is available each evening after 6:00 PM
(Eastern Time) by calling 1-800-GABELLI (1-800-422-3554). The Fund's Nasdaq
symbol is GABOX. Please call us during the business day for further information.
Sincerely,
/s/ Marc J. Gabelli /s/ Caesar Bryan
Marc J. Gabelli Caesar Bryan
Portfolio Manager Portfolio Manager
/s/ Ivan Arteaga
Ivan Arteaga, CFA
Associate Portfolio Manager
April 30, 1999
- --------------------------------------------------------------------------------
Top Ten Holdings
March 31, 1999
--------------
Rogers Communications Inc. Granada Group plc
Telecom Italia SpA Japan Telecom Co. Ltd.
Liberty Media Group Telephone & Data Systems Inc.
Vivendi Frontier Corp.
Schlumberger Ltd. Ito Yokado Co. Ltd.
- --------------------------------------------------------------------------------
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.
9
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The Gabelli Global Opportunity Fund
Portfolio of Investments -- March 31, 1999 (Unaudited)
================================================================================
Market
Shares Value
------ -----
COMMON STOCKS - 97.9%
Automotive - 1.0%
900 General Motors Corp. ....................... $ 78,188
---------
Broadcasting - 6.6%
2,150 Audiofina .................................. 85,881
7,400 Granada Group plc .......................... 149,920
450 NRJ SA ..................................... 90,361
375 Pathe SA ................................... 96,353
8,000 Tokyo Broadcasting System Inc. ............. 101,663
---------
524,178
---------
Building and Construction - 1.5%
3,300 CRH plc .................................... 56,966
6,000 Sekisui House Ltd. ......................... 63,836
---------
120,802
---------
Business Services - 3.4%
730 Vivendi .................................... 179,607
2,200 Young & Rubicam Inc.+ ...................... 89,650
---------
269,257
---------
Cable - 4.9%
1,100 Comcast Corp., Cl. A ....................... 67,650
1,600 MediaOne Group Inc.+ ....................... 101,600
1,400 NTL Inc.+ .................................. 113,925
2,500 United International Holdings Inc., Cl. A+ 108,750
---------
391,925
---------
Computer Software and Services - 1.4%
1,000 Softbank Corp. ............................. 112,134
---------
Conglomerates - 1.0%
1,250 Invik & Co. AB, B Free ..................... 81,327
---------
Consumer Products - 4.7%
720 Christian Dior SA .......................... 92,421
70 Compagnie Financiere Richemont AG .......... 116,340
4,000 KAO Corp. .................................. 88,322
8,200 Unilever NV ................................ 76,181
---------
373,264
---------
Consumer Services - 1.1%
5,000 Rollins Inc. ............................... 84,063
---------
Diversified Industrial - 1.8%
7,000 General Electric Co. plc ................... 63,111
1,125 Indus Holding AG ........................... 36,679
300 Oerlikon-Buhrle Holding AG ................. 43,577
---------
143,367
---------
Energy and Utilities - 5.6%
700 BP Amoco plc, ADR .......................... 70,656
12,180 Citizens Utilities Co., Cl. B+ ............. 94,395
2,500 Endesa SA .................................. 63,102
2,500 Schlumberger Ltd. .......................... 150,469
1,200 Veba AG .................................... 63,091
---------
441,713
---------
Entertainment - 5.2%
3,894 Liberty Media Group, Cl. A+ ................ 204,921
27,000 Rank Group plc ............................. 98,614
3,000 USA Networks Inc.+ ......................... 107,438
---------
410,973
---------
Equipment and Supplies - 0.5%
2,000 Toyo Seikan Kaisha Ltd. .................... 43,148
---------
Financial Services - 13.2%
2,600 Assicurazioni Generali SpA ................. 104,137
500 AXA-UAP .................................... 66,286
15,500 Banca Commerciale Italiana ................. 127,157
3,300 Bank of Ireland ............................ 68,614
1,200 Citigroup Inc. ............................. 76,650
1,500 Federal Home Loan Mortgage Corp. ........... 85,688
2,300 KeyCorp .................................... 69,719
1,500 Mellon Bank Corp. .......................... 105,563
900 Morgan (J.P.) & Co. ........................ 111,038
1,900 Pioneer Group Inc. ......................... 28,144
3,500 Schroders plc .............................. 81,078
10,000 Skandinaviska Enskilda Banken, Cl. A ....... 122,217
---------
1,046,291
---------
Food and Beverage - 4.7%
25,800 Foster's Brewing Group Ltd. ................ 75,614
45 Nestle SA .................................. 81,752
2,500 Seagram Co. ................................ 125,001
5,100 Whitman Corp. .............................. 87,656
---------
370,023
---------
Global Entertainment - 1.8%
325 Canal Plus ................................. 95,260
6,100 EMI Group plc .............................. 43,648
---------
138,908
---------
Health Care - 3.6%
60 Novartis AG ................................ 97,328
9 Roche Holding AG ........................... 109,752
650 Schering AG ................................ 75,682
---------
282,762
---------
Hotels and Gaming - 1.1%
4,000 Mirage Resorts Inc.+ ....................... 85,000
---------
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The Gabelli Global Opportunity Fund
Portfolio of Investments (Continued) -- March 31, 1999 (Unaudited)
================================================================================
Market
Shares Value
------ -----
COMMON STOCKS (Continued)
Metals and Mining - 3.8%
3,000 Anglogold Ltd., ADR ........................ $ 60,374
3,000 Barrick Gold Corp. ......................... 51,188
8,300 Harmony Gold Mining Ltd. ................... 38,719
2,800 Harmony Gold Mining Ltd., ADR .............. 13,125
1,500 Newmont Mining Corp. ....................... 26,250
3,800 Placer Dome Inc. ........................... 42,513
2,700 Stillwater Mining Co.+ ..................... 71,212
---------
303,381
---------
Publishing - 6.9%
4,400 Arnoldo Mondadori Editore SpA .............. 65,790
9,250 Gruppo Editoriale L'Espresso SpA ........... 103,856
24,000 Independent Newspapers plc ................. 108,822
1,200 McGraw-Hill Companies Inc. ................. 65,400
3,700 News Corp. Ltd., ADR ....................... 109,149
8,000 Schibsted ASA .............................. 95,229
---------
548,246
---------
Retail - 1.6%
2,000 Ito Yokado Co. Ltd. ........................ 128,684
---------
Telecommunications - 19.7%
2,000 BCE Inc. ................................... 88,625
1,500 Bell Atlantic Corp. ........................ 77,531
3,250 Cable & Wireless plc, ADR .................. 120,047
25 DDI Corp. .................................. 118,213
10,500 Electric Lightwave Inc.+ ................... 95,813
2,500 Frontier Corp. ............................. 129,688
600 Global Crossing Ltd.+ ...................... 27,750
10 Japan Telecom Co. Ltd. ..................... 143,544
13 Nippon Telegraph & Telephone Corp. ......... 127,333
12,500 Rogers Communications Inc., Cl. B+ ......... 226,562
5,500 Societe Europeenne de Communication SA+ .... 13,377
2,000 Telecom Italia SpA, ADR .................... 208,749
500 Telefonica SA, ADR ......................... 63,875
4,000 Viatel Inc.+ ............................... 114,000
---------
1,555,107
---------
Wireless Communications - 2.8%
1,500 Omnipoint Corp.+ ........................... 21,656
2,300 Telephone & Data Systems Inc. .............. 129,950
2,700 Vanguard Cellular Systems Inc., Cl. A+ ..... 73,744
---------
225,350
---------
TOTAL COMMON STOCKS ........................ 7,758,091
---------
TOTAL INVESTMENTS - 97.9%
(Cost $7,049,275) .................................... $7,758,091
Other Assets and
Liabilities (Net) - 2.1% ........................... 169,133
----------
NET ASSETS - 100.0%
(691,421 shares outstanding) ......................... $7,927,224
==========
NET ASSET VALUE,
Offering and Redemption
Price Per Share ...................................... $11.47
======
- ----------
+ Non-income producing security.
ADR - American Depositary Receipt.
% of
Market Market
Geographic Diversification Value Value
- -------------------------- ----- -----
Europe 42.8% $3,316,846
North America 41.5% 3,217,386
Japan 11.9% 926,876
Asia/Pacific Rim 2.4% 184,764
South Africa 1.4% 112,219
----- ----------
100.0% $7,758,091
===== ==========
11
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Gabelli Global Series Funds, Inc.
The Gabelli Global Opportunity 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 Asset Management Inc.
Werner J. Roeder, MD
Felix J. Christiana Director of Surgery
Former Senior Vice President Lawrence Hospital
Dollar Dry Dock Savings Bank
Anthonie C. van Ekris
Anthony J. Colavita Managing DIrector
Attorney-at-Law BALMAC International, Inc.
Anthony J. Colavita, P.C.
John D. Gabelli
Senior Vice President
Gabelli & Company, Inc.
Officers and Portfolio Managers
Mario J. Gabelli, CFA Marc J. Gabelli
President and Chief Portfolio Manager
Investment Officer
Caesar Bryan Bruce N. Alpert
Portfolio Manager Vice President and Treasurer
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
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This report is submitted for the general information of the shareholders of The
Gabelli Global Opportunity Fund. It is not authorized for distribution to
prospective investors unless preceded or accompanied by an effective prospectus.
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