[GRAPHIC OF FLAGS OMITTED]
GABELLI GLOBAL OPPORTUNITY FUND
THIRD QUARTER REPORT
SEPTEMBER 30, 2000
[PHOTO OF MARC J. GABELLI AND CAESAR BRYAN OMITTED]
MARC J. GABELLI AND CAESAR BRYAN
Team Portfolio Managers
TO OUR SHAREHOLDERS,
In the third quarter of 2000, the roller-coaster ride that is global
investing remained a tricky endeavor. Europe and Asia suffered losses as the
Euro fell and oil prices rose. The U.S. market continued its up and down journey
through the first year of the new millennium. While the future remains unclear,
all is certainly not lost and the ride is not over yet.
INVESTMENT PERFORMANCE
For the third quarter ended September 30, 2000, The Gabelli Global
Opportunity Fund (the "Fund") Class AAA Shares' net asset value declined 3.10%.
The Morgan Stanley Capital International World Free Index of global equity
markets and Lipper Global Fund Average declined 5.42% and 3.11%, respectively,
over the same period. The Morgan Stanley World Free Index is an unmanaged
indicator of stock market performance, while the Lipper Average reflects the
average performance of mutual funds classified in this particular category. The
Fund was up 32.68% over the trailing twelve-month period. The Morgan Stanley
World Free Index and Lipper Global Fund Average rose 8.01% and 18.75%,
respectively, over the same twelve-month period.
Since inception on May 11, 1998 through September 30, 2000, the Fund had a
cumulative total return of 88.43%, which equates to an average annual total
return of 30.29%.
MULTI-CLASS SHARES
The Gabelli Global Series Funds, Inc. began offering additional classes of
Fund shares in March 2000. The existing shares remain no-load and have been
redesignated as "Class AAA" Shares. Class A, Class B and Class C Shares are
targeted to the needs of investors who seek advice through financial
consultants. For the third quarter ended September 30, 2000, the Gabelli Global
Opportunity
<PAGE>
<TABLE>
<CAPTION>
INVESTMENT RESULTS (CLASS AAA SHARES) (a)
-------------------------------------------------------------------------------------------------------------
Quarter
-----------------------------------------
1st 2nd 3rd 4th Year
--- --- --- --- ----
<S> <C> <C> <C> <C> <C>
2000: Net Asset Value ..................... $19.07 $17.77 $17.22 -- --
Total Return ........................ 5.8% (6.8)% (3.1)% -- --
--------------------------------------------------------------------------------------------------------------
1999: Net Asset Value ..................... $11.47 $13.00 $13.61 $18.03 $18.03
Total Return ........................ 8.7% 13.3% 4.7% 38.9% 79.2%
--------------------------------------------------------------------------------------------------------------
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>
-------------------------------------------------------
Average Annual Returns (Class AAA Shares)
-----------------------------------------
September 30, 2000 (a)
----------------------
1 Year ................................... 32.68%
Life of Fund (b) ......................... 30.26%
-------------------------------------------------------
Dividend History
----------------------------------------------------------
Payment (ex) Date Rate Per Share Reinvestment Price
----------------- -------------- -------------------
December 27, 1999 $0.850 $17.48
December 28, 1998 $0.450 $10.34
(a) Total returns and average annual returns for Class AAAShares 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. Note: Investing in foreign securities involves risks not
ordinarily associated with investments in domestic issues, including currency
fluctuation, economic and political risks.
--------------------------------------------------------------------------------
Fund Class A and Class B Shares declined by 3.10% (excluding the effect of the
5.75% front-end sales charge on the Class A Shares). (Class C Shares have not
been issued as of September 30, 2000). The Class A and Class B Shares both ended
the second quarter with net asset values of $17.22.
GLOBAL ALLOCATION
The accompanying chart presents the Fund's holdings by geographic region
as of September 30, 2000. 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.
HOLDINGS BY GEOGRAPHIC REGION - 9/30/00
[PIE CHART OMITTED]
EDGAR REPRESENTATION OF DATA POINTS AS FOLLOWS:
EUROPE 35.1%
UNITED STATES 28.0%
CASH 18.0%
JAPAN 13.2%
ASIA/PACIFIC RIM 3.3%
CANADA 2.0%
LATIN AMERICA 0.4%
COMMENTARY
Equity market participants are always on the lookout for things to fret
about, and recently they have not been disappointed. The persistent weakness of
the Euro has been a major disappointment for international investors. If the
strengthening of the dollar had occurred a few years ago, prior to the
introduction of the Euro, it would probably not have caused such widespread
consternation. The
2
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weakness of the Euro is thought to be the result of significant capital flows
out of the Euro zone and into the U.S. This reflects the desire of Euro zone
companies to acquire U.S. assets. Needless to say, when it rains it pours. Every
mistake by European Central Bank representatives has been seized upon by the
market, and thus has driven the Euro even lower.
Investors have also been unnerved by the increase in the price of oil.
Tensions in the Middle East and a damaged U.S. destroyer add to the feelings of
uncertainty. Interestingly, in an era of less government intervention and a
laissez-faire attitude towards markets, both the Euro and the oil price were the
subject of government intervention. On September 22, all the major central banks
intervened to support the Euro, and its price rose to $0.90 against the dollar.
However, since then the Euro has fallen to a new low relative to the dollar. The
President, by Executive Order, also announced the sale of part of the Strategic
Oil Reserve. This was done to prevent a shortage of heating oil this winter, but
the move was not successful in lowering crude oil prices.
Aside from the price of oil and the sinking Euro, some signs of financial
stress have surfaced. The difference between government bond yields and the
yield on lower quality corporate bonds, as well as emerging market debt, have
widened considerably. Furthermore, some emerging market stock indices have
almost fallen to levels last seen during the Russian debt crisis of 1998. Is
there a silver lining to these storm clouds? We believe there is. First, bond
yields are falling, which suggests that the world economy is slowing. Indeed, if
the economy is in fact slowing, we are closer to a point where short-term
interest rates can be reduced. Second, although we do not know how low the Euro
can fall, we expect the currency to recover reflected by good economic
fundamentals in Europe. And lastly, while both Europe and Japan have been
adversely impacted by higher energy costs, we have probably seen the high in oil
prices.
The pace of consolidation has not slowed and corporate mergers and
acquisitions activity is expected to remain at high levels. Also, economic
reform continues with the French, German and Italian governments proposing
significant tax reform packages. Looking ahead, the weak Euro has improved
Europe's competitive position and we expect reasonable corporate earnings growth
during 2001.
We believe that the Japanese economy is in recovery mode. Higher corporate
profitability has led to increased capital spending, which in turn is beginning
to feed through to better consumer confidence. Japan appears to be recovering
from its lost decade. This year, non-financial corporate profits will exceed
financial corporate profits for the first time since 1989. The Nikkei peaked at
40,000 in December 1989, compared to the current level of around 15,000. Some
multiple contraction! Our optimism for Japan is largely based on the positive
outlook for corporate earnings. Although the Bank of Japan has abandoned its
zero interest rate policy, Japanese interest rates still remain low.
TMT
Technology, media, and telecommunications ("TMT") stocks produced
exceptional returns in 1997-99. This year, media and telecommunications stocks
languished. This is partially the result of good old-fashioned profit taking in
stocks that had delivered spectacular returns and momentum investors were
dumping.
3
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However, there are other factors that have temporarily soured investors on
media and telecommunication stocks. Consolidation has slowed as regulators here
and abroad are redefining "competitive" standards. European regulators rejected
Time Warner's proposed acquisition of European recorded music powerhouse EMI.
The WorldCom/Sprint merger was derailed by U.S. regulators. U.S. antitrust
authorities are taking a hard look at the Time Warner/AOL deal. These actions
have put potential international telecommunications acquirers such as Deutsche
Telecom temporarily on hold. Smaller deals without antitrust implications are
being completed. However, these smaller deals do not generate the kind of
headlines that captivate investors. Is this the start of a global regulatory
backlash? We do not think so. Consolidation in these industries makes economic
sense in a truly global marketplace.
The constricted capital markets are also causing disruption. As a result
of the "dot.com" stock massacre, the new issue market appears to be closed for
the season and venture capital firms have pulled in their horns. Internet
start-ups are not the only companies being hurt. Promising young media and
telecommunications companies are just not going to be able to survive without
being able to tap the equity or venture capital markets for cash infusions.
These cash-burn casualties will be absorbed by larger entities at rock-bottom
prices, indiscriminately depressing asset values for more worthy competitors.
For example, Time Warner Telecom scooped up bankrupt competitive local exchange
carrier ("CLEC") GST Telecommunications at a fire sale price. Shortly
thereafter, virtually every CLEC stock got shelled.
Media and telecommunications companies do face serious challenges in the
years ahead. Not all will be up to the task. The Internet is the competitive
tool of the future, but not all media companies will make a successful
transition into the online world. This will be a particularly tough hurdle for
print media companies without a well-planned Internet strategy. The long
distance telephony market is besieged by cutthroat competition and pricing. This
will likely continue for the foreseeable future as margins and earnings are
sacrificed on the altar of market share. Technology will bring new entrants and
established companies will have to fight vigorously to preserve their
franchises.
All things considered, how do we feel about the media and
telecommunications stocks that have rewarded us so generously over the past
several years, but performed so poorly in 2000? Just fine thank you. There are
going to be winners and losers in these rapidly changing industries. Risk and
reward always go hand in hand. Going forward, stock selection remains the key to
making money in these dynamic industries. The silver lining in the cloud
overhanging the media and telecommunications groups is that we now have more
value oriented opportunities to choose from. We believe if we do our analysis,
we can identify many of the companies that will prosper while avoiding most of
those that will fail. A solid stock picking batting average in these groups
should produce attractive long-term returns.
A MEDIA BASTILLE DAY?
In recent years, regulatory barricades in the media industry have been
coming down. Television and radio station cross-ownership barriers have fallen
and broadcast companies have been allowed to substantially expand their national
footprints. But, there are still walls preventing media companies from realizing
their full potential. Media companies are not permitted to own television
stations and newspapers in the same market. Broadcasters and cable television
companies still have onerous and unnecessary restrictions on the number of
customers they can service. We believe as the Internet Age
4
<PAGE>
unfolds--making information and entertainment instantly available to an
increasing percentage of the American public--media companies will be liberated
from largely unnecessary restrictions. Federal Communications Commission ("FCC")
Chairman William Kennard is retiring after the election. The new FCC boss,
whether a Democrat or a Republican, may promote more market oriented regulation.
Eventually, common sense and economic realities will rise above politics, and
media companies will be unshackled. Our portfolio is well positioned to
celebrate a Bastille Day for the media industry. Content will again be
King--just as Cash is again King.
SPECTRUM
America is well behind the rest of the developed world in building
state-of-the-art wireless communications systems. One of the reasons is that the
FCC has kept tight control over the transmission spectrum needed to fully
develop wireless networks. Broadcasters have been allocated large chunks of
spectrum to be used to deliver high definition television ("HDTV"). It now
appears that the demand for HDTV will fall well short of previous expectations.
Currently, there is a debate over whether the FCC should retake control of this
spectrum or allow broadcasters to sell it on the open market. We think the
latter option makes more sense. This is a win/win situation. Broadcasters could
make a bundle by auctioning off spectrum and wireless communications companies
would be able to acquire the spectrum they need to further develop their
systems.
INVESTMENT SCOREBOARD
The Fund's holdings in the financial services industry, namely J.P.
Morgan, Mellon Financial, Bank of Ireland, and Merrill Lynch, strongly enhanced
the performance of the Fund due to the high level of acquisitions in that
industry. Also, some foreign stocks in the communications equipment industry,
such as Furukawa Electric and Marconi plc, boosted the Fund's performance.
The telecommunications industry lagged in the third quarter, and our
positions in Olivetti, AT&T Corp., and DDI Corp. negatively impacted the Fund.
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 the following holdings are stated in U.S. dollar
equivalent terms as of September 30, 2000.
ALLIANZ AG (ALVG.F - $330.47 - FRANKFURT STOCK EXCHANGE) provides many insurance
and reinsurance products including property, casualty, life and health
insurance. Allianz operates in over fifty countries through its subsidiaries and
affiliates. The company owns brands such as AGF in France and RAS is Italy.
Allianz controls significant stakes in a number of leading financial companies
in Germany and should be at the center of the expected reorganization of
corporate Germany, following the implementation of the recently enacted tax
reform package which eliminates corporate capital gains taxes among other
changes.
5
<PAGE>
AT&T CORP. (T - $29.375 - NYSE) provides voice, data and video communications
services to large and small businesses, as well as consumers and government
entities. AT&T and its subsidiaries furnish domestic and international long
distance, regional, local and wireless communications services, cable television
and Internet communications services. Recently, the company announced that it
would split into four separate companies. After the restructuring, AT&T Wireless
will be converted from a tracking stock to an independent common stock. AT&T
Broadband, which includes cable, will have an initial public offering (IPO) for
a tracking stock, and within 12 months of the IPO the tracking stock will be
converted into common stock. AT&T Consumer will become a new consumer tracking
stock that will mirror the performance of the companies' residential long
distance and WorldNet Internet access business. AT&T's principal unit would be
AT&T Business, and shareholders would ultimately own all four.
CABLE & WIRELESS PLC (CWP - $42.5625 - NYSE) is a United Kingdom-based provider
of global telecommunications network services. Its key assets include: (1)
ownership in leading voice, data & ISP networks in the U.K. and U.S.; (2)
numerous stakes in undersea telecom network routes; and (3) a strong regional
presence in Asia/Pacific, Europe and the Caribbean/Latin America. Sale of Cable
& Wireless HKT plc to Pacific Century Cyberworks (PCW - $11.00 - NYSE) closed on
August 17, 2000. As a result of this transaction, CWP holds a meaningful
position in PCW.
COMPAGNIE FINANCIERE RICHEMONT AG (RIFZ.S - $3005.60 - ZURICH STOCK EXCHANGE) is
one of the world's leading luxury goods companies with brand names such as
Cartier, Piaget, Montblanc, Karl Lagerfeld and Alfred Dunhill. The company also
has a major investment in tobacco with its significant investment in B.A.T., the
world's second largest tobacco company. Adjusted for its stake in B.A.T., the
market values its wholly owned luxury goods business at a significant discount
to other luxury goods producers.
DDI CORP. (9433.T - $6570.43 - TOKYO STOCK EXCHANGE) is a major Japanese
telecommunications company created in 1985 to compete against the NTT monopoly.
DDI recently closed the transaction that combined DDI with KDD and IDO to create
KDDI. KDDI offers fixed-line and cellular service internationally and
domestically. KDDI has approximately fourteen million cellular subscribers,
which represents roughly eleven percent of the Japanese population. The
company's largest shareholders are Kyocera, who holds greater than 15%, and
Toyota, who holds greater than 13%.
FURUKAWA ELECTRIC CO. LTD. (5801.T - $27.62 - TOKYO STOCK EXCHANGE) manufactures
electric wire and cable, light metals, and fiber optic cables. The company also
provides related services, including installation. Furukawa is currently
expanding into superconductor wire and optical transmission, network systems and
devices. The company has a significant stake in JDS Uniphase (JDSU - $94.6875 -
Nasdaq), an optical equipment manufacturer.
LIBERTY MEDIA GROUP (LMG'A - $18.00 - NYSE), run by savvy media investor John
Malone, is engaged in businesses that provide programming services (including
production, acquisition and distribution through all media formats) as well as
businesses engaged in electronic retailing, direct marketing and other services.
LMG holds interests in globally branded entertainment networks such as Discovery
Channel, USA Network, QVC, Encore and STARZ!. Liberty's investment portfolio
also includes interests in international video distribution businesses,
international telephony and domestic wireless companies, 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.
6
<PAGE>
MELLON FINANCIAL CORP. (MEL - $46.375 - NYSE) is one of the largest asset
managers in the country. In addition to the Bank's traditional Mellon brand
asset gathering arm, their Dreyfus, Founders and Boston Company subsidiaries are
showing improvement. New management has shed non-core assets to focus on the
company's highest margin and best growth opportunities. Fees represent over 60%
of revenues and that number will grow as the year progresses. Assets under
management now exceed $500 billion, which creates an enviable stream of
recurring fee revenue.
VERIZON COMMUNICATIONS (VZ - $48.4375 - NYSE) was formed by the merger of Bell
Atlantic and GTE, and a combination of the wireless assets of the combined
company with U.S. assets of Vodafone Group plc (VOD - $37.00 - NYSE). VZ is one
of the world's leading providers of high-growth communications services. Verizon
companies are the largest providers of wireline and wireless communications in
the United States, with 95 million access line equivalents and 25 million
wireless customers. Verizon is also the world's largest provider of print and
on-line directory information. Verizon's global presence extends to 40 countries
in the Americas, Europe, Asia and the Pacific.
VOICESTREAM WIRELESS CORP. (VSTR - $116.0625 - NASDAQ) is one of the remaining
two U.S. independent national wireless service providers with PCS licenses
covering over 220 million people. VSTR was spun-off of Western Wireless about 18
months ago and is the only national carrier utilizing GSM (Global System for
Mobile Communication) technology, a dominant standard in Europe. VSTR is in the
process of being acquired by Deutsche Telecom (DT - $34.25 - NYSE), a former
German phone monopoly, for 3.2 DT shares plus $30 in cash per VSTR share. The
merger is pending regulatory approval and is expected to close in 2001. DT
ownership will provide VSTR with significant financial resources and allow it to
aggressively build out its licensed territory and gain market share in the
growing domestic wireless industry.
MINIMUM INITIAL INVESTMENT - $1,000
The Fund's minimum initial investment for regular accounts is $1,000.
There are no subsequent investment minimums. No initial minimum is required for
those establishing an Automatic Investment Plan. Additionally, the Fund and
other Gabelli Funds are available through the no-transaction fee programs at
many major brokerage firms.
WWW.GABELLI.COM
Please 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
The Gabelli Global Opportunity Fund continued its bumpy ride through the
third quarter. As we take a step back and examine what have been a difficult
quarter and a difficult year, we are confident that as dynamics improve the Fund
is positioned to get back on track in the months ahead. We do have our work cut
out for us, though, and we are ready to face these challenges head-on.
7
<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 GABOX. Please call us during the
business day for further information.
Sincerely,
/S/ SIGNUATURE /S/ SIGNATURE
MARC J. GABELLI CAESAR BRYAN
Team Portfolio Manager Team Portfolio Manager
/S/ SIGNATURE
IVAN ARTEAGA, CFA
Associate Portfolio Manager
November 14, 2000
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TOP TEN HOLDINGS
SEPTEMBER 30, 2000
------------------
Allianz AG DDI Corp.
AT&T Corp. Verizon Communications
Mellon Financial Corp. Morgan (J.P.) & Co. Inc.
Lockheed Martin Corp. NTL Inc.
Merrill Lynch & Co. Inc. Furukawa Electric 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.
8
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THE GABELLI GLOBAL OPPORTUNITY FUND
PORTFOLIO OF INVESTMENTS -- SEPTEMBER 30, 2000 (UNAUDITED)
================================================================================
MARKET
SHARES VALUE
------ -----
COMMON STOCKS -- 80.7%
AEROSPACE -- 2.8%
85,000 BAE Systems plc .............................. $ 458,705
20,000 Lockheed Martin Corp. ........................ 659,200
-----------
1,117,905
-----------
AUTOMOTIVE -- 0.6%
3,761 General Motors Corp. ......................... 244,465
-----------
BROADCASTING -- 4.0%
3,650 Audiofina .................................... 395,521
15 Fuji Television Network Inc. ................. 194,336
15,000 Mediaset SpA ................................. 223,430
4,000 Nippon Broadcasting System Inc. .............. 222,839
7,750 NRJ Groupe+ .................................. 305,010
6,000 Tokyo Broadcasting System Inc. ............... 241,533
-----------
1,582,669
-----------
BUILDING AND CONSTRUCTION -- 0.8%
20,300 CRH plc ...................................... 323,155
-----------
BUSINESS SERVICES -- 2.6%
5,000 Asatsu-DK Inc. ............................... 171,201
15,000 Reuters Holdings plc ......................... 284,316
3,000 Secom Co. Ltd. ............................... 241,255
4,376 Vivendi ...................................... 325,138
-----------
1,021,910
-----------
CABLE -- 1.9%
12,187 NTL Inc.+ .................................... 564,410
7,000 UnitedGlobalCom Inc., Cl. A+ ................. 210,000
-----------
774,410
-----------
COMMUNICATIONS EQUIPMENT -- 2.6%
20,000 Furukawa Electric Co. Ltd. ................... 552,471
27,000 Marconi plc .................................. 369,255
7,000 Telesystem International Wireless Inc.+ ...... 98,862
-----------
1,020,588
-----------
COMPUTER SOFTWARE AND SERVICES -- 1.1%
15 Net One Systems Co. Ltd. ..................... 426,152
-----------
CONSUMER PRODUCTS -- 3.2%
8,000 Christian Dior SA ............................ 430,977
150 Compagnie Financiere Richemont AG, Cl. A ..... 450,840
40 Givaudan+ .................................... 10,356
2,000 Nintendo Co. Ltd. ............................ 365,168
-----------
1,257,341
-----------
ELECTRONICS -- 1.3%
2,000 Kyocera Corp. ................................ 305,386
2,000 Sony Corp., ADR .............................. 201,875
-----------
507,261
-----------
MARKET
SHARES VALUE
------ -----
ENERGY AND UTILITIES -- 0.5%
2,500 Schlumberger Ltd. ............................ $ 205,781
-----------
ENTERTAINMENT -- 5.7%
2,000 Avex Inc. .................................... 205,441
45,131 Granada Compass plc+ ......................... 422,377
25,176 Liberty Media Group, Cl. A+ .................. 453,168
30,000 Publishing & Broadcasting Ltd. ............... 217,707
9,500 Seagram Co. .................................. 545,656
20,000 USA Networks Inc.+ ........................... 438,750
-----------
2,283,099
-----------
FINANCIAL SERVICES -- 14.9%
2,250 Allianz AG ................................... 743,554
2,000 AXA-UAP ...................................... 261,198
50,000 Bank of Ireland .............................. 400,401
8,000 Citigroup Inc. ............................... 432,500
5,000 Invik & Co. AB, Cl. B ........................ 464,029
15,000 Mellon Financial Corp. ....................... 695,625
9,000 Merrill Lynch & Co. Inc. ..................... 594,000
3,500 Morgan (J.P.) & Co. Inc. ..................... 571,813
1,000 Munich Re .................................... 295,613
50,000 Nikko Securities Co. Ltd. .................... 444,198
20,000 Prudential plc ............................... 272,931
25,000 San Paolo - IMI SpA .......................... 406,357
30,000 Skandinaviska Enskilda Banken, Cl. A ......... 362,815
-----------
5,945,034
-----------
HEALTH CARE -- 4.9%
340 Novartis AG .................................. 521,279
40 Roche Holding AG ............................. 351,762
10,000 Sanofi-Synthelabo SA ......................... 537,397
40,000 SmithKline Beecham plc ....................... 547,932
-----------
1,958,370
-----------
METALS AND MINING -- 1.9%
40,000 Antofagasta Holdings plc ..................... 280,324
17,500 Stillwater Mining Co.+ ....................... 473,725
-----------
754,049
-----------
PUBLISHING -- 4.2%
20,000 Arnoldo Mondadori Editore SpA ................ 237,902
32,032 Gruppo Editoriale L'Espresso SpA ............. 386,677
68,000 Independent News & Media plc, Dublin ......... 249,021
7,000 News Corp. Ltd., ADR ......................... 392,438
8,000 Schibsted ASA ................................ 140,554
25,000 United News & Media plc ...................... 269,641
-----------
1,676,233
-----------
REAL ESTATE -- 0.9%
30,000 Cheung Kong (Holdings) Ltd. .................. 362,645
-----------
9
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THE GABELLI GLOBAL OPPORTUNITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- SEPTEMBER 30, 2000 (UNAUDITED)
================================================================================
MARKET
SHARES VALUE
------ -----
COMMON STOCKS (CONTINUED)
RETAIL -- 0.9%
7,000 Ito Yokado Co. Ltd. .......................... $ 364,705
-----------
SATELLITE -- 2.6%
10,000 EchoStar Communications Corp., Cl. A+ ........ 527,500
3,957 General Motors Corp., Cl. H+ ................. 147,121
2,500 Societe Europeenne Satellites ................ 375,031
-----------
1,049,652
-----------
TELECOMMUNICATIONS -- 16.6%
25,000 AT&T Corp. ................................... 734,375
5,500 BCE Inc. ..................................... 128,563
15,000 British Telecommunications plc ............... 157,682
10,000 BroadWing Inc.+ .............................. 255,625
7,750 Cable & Wireless plc, ADR .................... 329,859
35,180 Citizens Communications Co. .................. 472,731
90 DDI Corp. .................................... 591,338
12,500 Electric Lightwave Inc., Cl. A+ .............. 106,250
5,125 Global Crossing Ltd.+ ........................ 158,875
15 Japan Telecom Co. Ltd. ....................... 433,093
3,000 KDD Corp. .................................... 214,020
15,000 Manitoba Telecom Services Inc. ............... 301,569
160,000 Olivetti SpA+ ................................ 440,507
25,000 Portugal Telecom SA .......................... 257,006
10,500 Rogers Communications Inc., Cl. B, ADR+ ...... 248,719
12,000 Sprint Corp. ................................. 351,750
1,500 Telecom Italia SpA, ADR ...................... 157,500
25,000 Telecom Italia SpA, Cl. RNC .................. 136,335
3,714 Telefonica SA, ADR ........................... 220,751
10,000 United Pan-Europe Communications NV,
Cl. A, ADR+ ................................ 194,375
12,000 Verizon Communications ....................... 581,250
15,000 Viatel Inc.+ ................................. 153,750
-----------
6,625,923
-----------
TRANSPORTATION -- 1.2%
15,000 AMR Corp.+ ................................... 490,313
-----------
MARKET
SHARES VALUE
------ -----------
WIRELESS COMMUNICATIONS -- 5.5%
5,000 AT&T Wireless Group+ ......................... $ 104,375
10,000 Nextel Communications Inc., Cl. A+ ........... 467,500
30,000 Telecom Italia Mobile SpA .................... 242,491
2,300 Telephone & Data Systems Inc. ................ 254,610
5,000 United States Cellular Corp.+ ................ 350,000
83,964 Vodafone Group plc ........................... 313,455
4,000 VoiceStream Wireless Corp.+ .................. 464,250
-----------
2,196,681
-----------
TOTAL COMMON STOCKS .......................... 32,188,341
-----------
PRINCIPAL
AMOUNT
------
U.S. GOVERNMENT OBLIGATIONS -- 17.7%
$7,162,000 U.S. Treasury Bills,
6.12% to 6.29%++,
due 10/05/00 to 12/28/00 ................... 7,088,654
-----------
TOTAL INVESTMENTS -- 98.4%
(Cost $36,995,135) .......................... 39,276,995
OTHER ASSETS AND
LIABILITIES (NET) -- 1.6% .................. 620,482
-----------
NET ASSETS -- 100.0%
(2,317,525 shares outstanding) ............. $39,897,477
===========
------------------------
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR - American Depositary Receipt.
% OF
MARKET MARKET
GEOGRAPHIC DIVERSIFICATION VALUE VALUE
-------------------------- ------ -----------
North America 48.0% $18,852,451
Latin America 0.4% 158,875
Europe 35.1% 13,788,009
Asia/Pacific Rim 3.3% 13,302,649
Japan 13.2% 5,175,011
------ -----------
100.0% $39,276,995
====== ===========
10
<PAGE>
--------------------------------------------------------------------------------
GABELLI FAMILY OF FUNDS
--------------------------------------------------------------------------------
GABELLI ASSET FUND ________________________
Seeks to invest primarily in a diversified portfolio of common stocks selling at
significant discounts to their private market value. The Fund's primary
objective is growth of capital. (NO-LOAD)
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI GROWTH FUND _______________________
Seeks to invest primarily in large cap stocks believed to have favorable, yet
undervalued, prospects for earnings growth. The Fund's primary objective is
capital appreciation. (NO-LOAD)
PORTFOLIO MANAGER: HOWARD F. WARD, CFA
GABELLI WESTWOOD EQUITY FUND _____________
Seeks to invest primarily in the common stock of seasoned companies believed to
have proven records and above average historical earnings growth. The Fund's
primary objective is capital appreciation. (MULTI-CLASS)
PORTFOLIO MANAGER: SUSAN M. BYRNE
GABELLI SMALL CAP GROWTH FUND ____________
Seeks to invest primarily in common stock of smaller companies (market
capitalizations less than $500 million) believed to have rapid revenue and
earnings growth potential. The Fund's primary objective is capital appreciation.
(NO-LOAD)
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI BLUE CHIP VALUE FUND ______________
Seeks long-term growth of capital through investment primarily in the common
stocks of well-established, high quality companies that have market
capitalizations of greater than $5 billion.
(NO-LOAD) PORTFOLIO MANAGER: BARBARA MARCIN, CFA
GABELLI WESTWOOD SMALLCAP EQUITY FUND ___________
Seeks to invest primarily in smaller capitalization equity securities - market
caps of $1 billion or less. The Fund's primary objective is long-term capital
appreciation. (MULTI-CLASS)
PORTFOLIO MANAGER: LYNDA CALKIN, CFA
GABELLI WESTWOOD INTERMEDIATE BOND FUND __________
Seeks to invest in a diversified portfolio of bonds with various maturities. The
Fund's primary objective is total return. (MULTI-CLASS)
PORTFOLIO MANAGER: PATRICIA FRAZE
GABELLI EQUITY INCOME FUND ________________
Seeks to invest primarily in equity securities with above market average yields.
The Fund pays quarterly dividends and seeks a high level of total return with an
emphasis on income. (NO-LOAD)
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI WESTWOOD BALANCED FUND __________
Seeks to invest in a balanced and diversified portfolio of stocks and bonds. The
Fund's primary objective is both capital appreciation and current income.
(MULTI-CLASS)
PORTFOLIO MANAGERS: SUSAN M. BYRNE & PATRICIA FRAZE
GABELLI WESTWOOD MIGHTY MITES[SERVICE MARK} FUND _____
Seeks to invest in micro-cap companies that have market capitalizations of $300
million or less. The Fund's primary objective is long-term capital appreciation.
(MULTI-CLASS)
TEAM MANAGED: MARIO J. GABELLI, CFA,
MARC J. GABELLI, LAURA K. LINEHAN AND
WALTER K. WALSH
GABELLI VALUE FUND ________________________
Seeks to invest in securities of companies believed to be undervalued. The
Fund's primary objective is long-term capital appreciation.
MAX. SALES CHARGE: 51/2% (MULTI-CLASS)
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI UTILITIES FUND ______________________
Seeks to provide a high level of total return through a combination of capital
appreciation and current income. (NO-LOAD)
PORTFOLIO MANAGER: TIMOTHY O'BRIEN, CFA
GABELLI ABC FUND _________________________
Seeks to invest in securities with attractive opportunities for appreciation or
investment income. The Fund's primary objective is total return in various
market conditions without excessive risk of capital loss. (NO-LOAD)
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GABELLI MATHERS FUND _____________________
Seeks long-term capital appreciation in various market conditions without
excessive risk of capital loss. (NO-LOAD)
PORTFOLIO MANAGER: HENRY VAN DER EB, CFA
GABELLI U.S. TREASURY MONEY MARKET FUND ____________
Seeks to invest exclusively in short-term U.S. Treasury securities. The Fund's
primary objective is to provide high current income consistent with the
preservation of principal and liquidity.
(NO-LOAD) PORTFOLIO MANAGER: JUDITH A. RANERI
GABELLI CASH MANAGEMENT SHARES OF
THE TREASURER'S FUND ______________________
Three money market portfolios designed to generate superior returns without
compromising portfolio safety. U.S. Treasury Money Market seeks to invest in
U.S. Treasury bills, notes and bonds. Tax Exempt Money Market seeks to invest in
municipal securities. Domestic Prime Money Market seeks to invest in prime
quality, domestic money market instruments. (NO-LOAD)
PORTFOLIO MANAGER: JUDITH A. RANERI
AN INVESTMENT IN THE ABOVE MONEY MARKET FUNDS IS NEITHER INSURED NOR GUARANTEED
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY GOVERNMENT AGENCY. ALTHOUGH
THE FUNDS SEEK TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT
IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUNDS.
GLOBAL SERIES
GABELLI GLOBAL TELECOMMUNICATIONS FUND
Seeks to invest in telecommunications companies throughout the world -
targeting undervalued companies with strong earnings and cash flow dynamics.
The Fund's primary objective is capital appreciation. (MULTI-CLASS) TEAM
MANAGED
GABELLI GLOBAL CONVERTIBLE SECURITIES FUND
Seeks to invest principally in bonds and preferred stocks which are
convertible into common stock of foreign and domestic companies. The Fund's
primary objective is total return through a combination of current income and
capital appreciation. (MULTI-CLASS) TEAM MANAGED
GABELLI GLOBAL GROWTH FUND
Seeks capital appreciation through a disciplined investment program focusing
on the globalization and interactivity of the world's marketplace. The Fund
invests in companies at the forefront of accelerated growth. The Fund's
primary objective is capital appreciation. (MULTI-CLASS) TEAM MANAGED
GABELLI GLOBAL OPPORTUNITY FUND
Seeks to invest in common stock of companies which have rapid growth in
revenues and earnings and potential for above average capital appreciation or
are undervalued. The Fund's primary objective is capital appreciation.
(MULTI-CLASS) TEAM MANAGED
GABELLI GOLD FUND _________________________
Seeks to invest in a global portfolio of equity securities of gold mining and
related companies. The Fund's objective is long-term capital appreciation.
Investment in gold stocks is considered speculative and is affected by a
variety of world-wide economic, financial and political factors. (NO-LOAD)
PORTFOLIO MANAGER: CAESAR BRYAN
GABELLI INTERNATIONAL GROWTH FUND __________
Seeks to invest in the equity securities of foreign issuers with long-term
capital appreciation potential. The Fund offers investors global
diversification. (MULTI-CLASS) PORTFOLIO MANAGER: CAESAR BRYAN
THE SIX FUNDS ABOVE INVEST IN FOREIGN SECURITIES WHICH INVOLVES RISKS NOT
ORDINARILY ASSOCIATED WITH INVESTMENTS IN DOMESTIC ISSUES, INCLUDING CURRENCY
FLUCTUATION, ECONOMIC AND POLITICAL RISKS. THE FUNDS LISTED ABOVE ARE
DISTRIBUTED BY GABELLI & COMPANY, INC.
--------------------------------------------------------------------------------
TO RECEIVE A PROSPECTUS, CALL 1-800-GABELLI (422-3554). THE
PROSPECTUS GIVES A MORE COMPLETE DESCRIPTION OF THE FUND,
INCLUDING FEES AND EXPENSES. READ THE PROSPECTUS CAREFULLY
BEFORE YOU INVEST OR SEND MONEY.
VISIT OUR WEBSITE AT:
www.gabelli.com
OR, CALL:
1-800-GABELLI
1-800-422-3554 [BULLET] 914-921-5100 [BULLET] FAX: 914-921-5118
[BULLET] [email protected]
ONE CORPORATE CENTER, RYE, NEW YORK 10580
<PAGE>
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.
Felix J. Christiana Werner J. Roeder, MD
FORMER SENIOR VICE PRESIDENT MEDICAL DIRECTOR
DOLLAR DRY DOCK SAVINGS BANK LAWRENCE HOSPITAL
Anthony J. Colavita Anthonie C. van Ekris
ATTORNEY-AT-LAW MANAGING DIRECTOR
ANTHONY J. COLAVITA, P.C. BALMAC INTERNATIONAL, INC.
John D. Gabelli
SENIOR VICE PRESIDENT
GABELLI & COMPANY, INC.
OFFICERS
Mario J. Gabelli, CFA Bruce N. Alpert
PRESIDENT AND CHIEF VICE PRESIDENT AND TREASURER
INVESTMENT OFFICER
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 Opportunity Fund. It is not authorized for distribution to
prospective investors unless preceded or accompanied by an effective prospectus.
--------------------------------------------------------------------------------
GAB403Q300SR
[PHOTO OF MARIO J. GABELLI OMITTTED]
THE
GABELLI
GLOBAL
OPPORTUNITY
FUND
THIRD QUARTER REPORT
SEPTEMBER 30, 2000
