UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-05848
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The Gabelli Value Fund Inc.
------------------------------------------------------------
(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
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(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
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(Name and address of agent for service)
registrant's telephone number, including area code: 1-800-422-3554
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Date of fiscal year end: December 31
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Date of reporting period: June 30, 2007
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 100 F Street, NE,
Washington, DC 20549. The OMB has reviewed this collection of information under
the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
The Report to Shareholders is attached herewith.
THE GABELLI VALUE FUND INC.
SEMI-ANNUAL REPORT
JUNE 30, 2007
TO OUR SHAREHOLDERS,
During the second quarter of 2007, The Gabelli Value Fund Inc. (the
"Fund") rose 7.0%, while the Standard & Poor's ("S&P") 500 Index was up 6.3% and
the Dow Jones Industrial Average advanced 9.1%. For the six month period ended
June 30, 2007, the Fund was up 10.0% versus gains of 7.0% and 8.8% for the S&P
500 Index and the Dow Jones Industrial Average, respectively.
Enclosed are the financial statements and the investment portfolio as of
June 30, 2007.
COMPARATIVE RESULTS
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS THROUGH JUNE 30, 2007 (A)
------------------------------------------------
Since
Year to Inception
Quarter Date 1 Year 3 Year 5 Year 10 Year 15 Year (9/29/89)
- ---------------------------------------------------------------------------------------------------------------------
GABELLI VALUE FUND CLASS A...... 7.02% 9.99% 23.68% 13.73% 13.72% 12.31% 14.76% 13.25%
0.86(B) 3.67(B) 16.57(B) 11.51(B) 12.38(B) 11.64(B) 14.30(B) 12.87(B)
S&P 500 Index................... 6.27 6.96 20.57 11.67 10.70 7.13 11.18 10.90
Dow Jones Industrial Average.... 9.10 8.79 22.98 11.26 10.21 7.88 12.20 12.11
Nasdaq Composite Index.......... 7.50 7.78 19.85 8.33 12.21 6.08 10.74 10.08
Class B......................... 6.75 9.53 22.70 12.86 12.86 11.68 14.33 12.89
1.75(c) 4.53(c) 17.70(c) 12.07(c) 12.61(c) 11.68 14.33 12.89
Class C......................... 6.86 9.65 22.76 12.87 12.86 11.72 14.35 12.91
5.86(d) 8.65(d) 21.76(d) 12.87 12.86 11.72 14.35 12.91
THE CURRENT EXPENSE RATIO FOR CLASS A, B, AND C SHARES IS 1.41%, 2.16%, AND
2.16%, RESPECTIVELY. THE MAXIMUM SALES CHARGE FOR CLASS A, B, AND C SHARES IS
5.75%, 5.00%, AND 1.00%, RESPECTIVELY.
(a) RETURNS REPRESENT PAST PERFORMANCE AND DO NOT GUARANTEE FUTURE RESULTS.
TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN SHARE PRICE AND
REINVESTMENT OF DISTRIBUTIONS AND ARE NET OF EXPENSES. 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.
PERFORMANCE RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA
PRESENTED. VISIT WWW.GABELLI.COM FOR PERFORMANCE INFORMATION AS OF THE MOST
RECENT MONTH END. INVESTORS SHOULD CAREFULLY CONSIDER THE INVESTMENT
OBJECTIVES, RISKS, CHARGES, AND EXPENSES OF THE FUND BEFORE INVESTING. THE
PROSPECTUS CONTAINS MORE INFORMATION ABOUT THIS AND OTHER MATTERS AND SHOULD
BE READ CAREFULLY BEFORE INVESTING.
THE CLASS A SHARES' NET ASSET VALUES ("NAV'S") PER SHARE ARE USED TO
CALCULATE PERFORMANCE FOR THE PERIODS PRIOR TO THE ISSUANCE OF CLASS B
SHARES AND CLASS C SHARES ON MARCH 15, 2000. THE ACTUAL PERFORMANCE FOR THE
CLASS B SHARES AND CLASS C SHARES WOULD HAVE BEEN LOWER DUE TO THE
ADDITIONAL EXPENSES ASSOCIATED WITH THESE CLASSES OF SHARES. THE DOW JONES
INDUSTRIAL AVERAGE IS AN UNMANAGED INDEX OF 30 LARGE CAPITALIZATION STOCKS.
THE S&P 500 INDEX AND THE NASDAQ COMPOSITE INDEX ARE UNMANAGED INDICATORS
OF STOCK MARKET PERFORMANCE. DIVIDENDS ARE REINVESTED EXCEPT FOR THE NASDAQ
COMPOSITE INDEX. YOU CANNOT INVEST DIRECTLY IN AN INDEX.
(b) THE MAXIMUM SALES CHARGE ON CLASS A SHARES FROM INCEPTION THROUGH APRIL 30,
2007 WAS 5.50%. AFTER THAT DATE, THE MAXIMUM SALES CHARGE ON CLASS A SHARES
BECAME 5.75%.
(c) PERFORMANCE RESULTS INCLUDE THE DEFERRED SALES CHARGES FOR THE CLASS B
SHARES UPON REDEMPTION AT THE END OF THE QUARTER, YEAR TO DATE, ONE YEAR,
THREE YEAR, AND FIVE YEAR PERIODS OF 5%, 5%, 5%, 3%, AND 2%, RESPECTIVELY,
OF THE FUND'S NAV AT THE TIME OF PURCHASE OR SALE, WHICHEVER IS LOWER. CLASS
B SHARES ARE NOT AVAILABLE FOR NEW PURCHASES.
(d) PERFORMANCE RESULTS INCLUDE THE DEFERRED SALES CHARGES FOR THE CLASS C
SHARES UPON REDEMPTION AT THE END OF THE QUARTER, YEAR TO DATE, AND ONE YEAR
PERIODS OF 1% OF THE FUND'S NAV AT THE TIME OF PURCHASE OR SALE, WHICHEVER
IS LOWER.
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We have separated the portfolio manager's commentary from the financial
statements and investment portfolio due to corporate governance regulations
stipulated by the Sarbanes-Oxley Act of 2002. We have done this to ensure that
the content of the portfolio manager's commentary is unrestricted. The financial
statements and investment portfolio are mailed separately from the commentary.
Both the commentary and the financial statements, including the portfolio of
investments, will be available on our website at www.gabelli.com/funds.
- --------------------------------------------------------------------------------
THE GABELLI VALUE FUND INC.
DISCLOSURE OF FUND EXPENSES (UNAUDITED)
For the Six Month Period from January 1, 2007 through June 30, 2007
EXPENSE TABLE
================================================================================
We believe it is important for you to understand the impact of fees and expenses
regarding your investment. All mutual funds have operating expenses. As a
shareholder of a fund, you incur ongoing costs, which include costs for
portfolio management, administrative services, and shareholder reports (like
this one), among others. Operating expenses, which are deducted from a fund's
gross income, directly reduce the investment return of a fund. When a fund's
expenses are expressed as a percentage of its average net assets, this figure is
known as the expense ratio. The following examples are intended to help you
understand the ongoing costs (in dollars) of investing in your Fund and to
compare these costs with those of other mutual funds. The examples are based on
an investment of $1,000 made at the beginning of the period shown and held for
the entire period.
The Expense Table below illustrates your Fund's costs in two ways:
ACTUAL FUND RETURN: This section provides information about actual account
values and actual expenses. You may use this section to help you to estimate the
actual expenses that you paid over the period after any fee waivers and expense
reimbursements. The "Ending Account Value" shown is derived from the Fund's
ACTUAL return during the past six months, and the "Expenses Paid During Period"
shows the dollar amount that would have been paid by an investor who started
with $1,000 in the Fund. You may use this information, together with the amount
you invested, to estimate the expenses that you paid over the period.
To do so, simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
given for your Fund under the heading "Expenses Paid During Period" to estimate
the expenses you paid during this period.
HYPOTHETICAL 5% RETURN: This section provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio. It assumes a hypothetical annualized return of 5% before expenses during
the period shown. In this case - because the hypothetical return used is NOT the
Fund's actual return - the results do not apply to your investment and you
cannot use the hypothetical account value and expense to estimate the actual
ending account balance or expenses you paid for the period. This example is
useful in making comparisons of the ongoing costs of investing in the Fund and
other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs such as sales
charges (loads), redemption fees, or exchange fees, if any, which are described
in the Prospectus. If these costs were applied to your account, your costs would
be higher. Therefore, the 5% hypothetical return is useful in comparing ongoing
costs only, and will not help you determine the relative total costs of owning
different funds.
Beginning Ending Annualized Expenses
Account Value Account Value Expense Paid During
01/01/07 06/30/07 Ratio Period*
- --------------------------------------------------------------------------------
THE GABELLI VALUE FUND INC.
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Class A $1,000.00 $1,049.27 1.39% $ 7.02
Class B $1,000.00 $1,047.00 2.14% $10.80
Class C $1,000.00 $1,047.59 2.14% $10.80
HYPOTHETICAL 5% RETURN
Class A $1,000.00 $1,017.80 1.39% $ 6.92
Class B $1,000.00 $1,014.10 2.14% $10.63
Class C $1,000.00 $1,014.10 2.14% $10.63
* Expenses are equal to the Fund's annualized expense ratio for the last six
months multiplied by the average account value over the period, multiplied by
the number of days in the most recent fiscal half-year, then divided by 365.
2
SUMMARY OF PORTFOLIO HOLDINGS (UNAUDITED)
The following table presents portfolio holdings as a percent of total net assets
as of June 30, 2007:
THE GABELLI VALUE FUND INC.
Entertainment ................................ 11.8%
Cable and Satellite .......................... 11.4%
Telecommunications ........................... 8.2%
Publishing ................................... 7.3%
Broadcasting ................................. 6.8%
Food and Beverage ............................ 5.7%
Financial Services ........................... 5.6%
Diversified Industrial ....................... 4.7%
Electronics .................................. 4.1%
Consumer Products ............................ 3.8%
Metals and Mining ............................ 3.7%
Equipment and Supplies ....................... 3.5%
Hotels and Gaming ............................ 2.9%
Environmental Services ....................... 2.8%
Energy and Utilities ......................... 2.3%
Aviation: Parts and Services ................. 2.1%
Communications Equipment ..................... 1.8%
Consumer Services ............................ 1.7%
Automotive: Parts and Accessories ............ 1.5%
Aerospace .................................... 1.3%
Specialty Chemicals .......................... 1.1%
Retail ....................................... 1.1%
Machinery .................................... 1.0%
Repurchase Agreements ........................ 0.8%
Real Estate .................................. 0.5%
Agriculture .................................. 0.5%
Manufactured Housing ......................... 0.5%
Business Services ............................ 0.4%
Wireless Communications ...................... 0.4%
Health Care .................................. 0.4%
Computer Software and Services ............... 0.3%
Transportation ............................... 0.1%
Automotive ................................... 0.1%
Other Assets and Liabilities (Net) ........... (0.2)%
------
100.0%
======
THE FUND FILES A COMPLETE SCHEDULE OF PORTFOLIO HOLDINGS WITH THE SECURITIES AND
EXCHANGE COMMISSION (THE "SEC") FOR THE FIRST AND THIRD QUARTERS OF EACH FISCAL
YEAR ON FORM N-Q, THE LAST OF WHICH WAS FILED FOR THE QUARTER ENDED MARCH 31,
2007. SHAREHOLDERS MAY OBTAIN THIS INFORMATION AT WWW.GABELLI.COM OR BY CALLING
THE FUND AT 800-GABELLI (800-422-3554). THE FUND'S FORM N-Q IS AVAILABLE ON THE
SEC'S WEBSITE AT WWW.SEC.GOV AND MAY ALSO BE REVIEWED AND COPIED AT THE SEC'S
PUBLIC REFERENCE ROOM IN WASHINGTON, DC. INFORMATION ON THE OPERATION OF THE
PUBLIC REFERENCE ROOM MAY BE OBTAINED BY CALLING 1-800-SEC-0330.
PROXY VOTING
The Fund files Form N-PX with its complete proxy voting record for the 12 months
ended June 30th, no later than August 31st of each year. A description of the
Fund's proxy voting policies, procedures, and how the Fund voted proxies
relating to portfolio securities is available without charge, upon request, by
(i) calling 800-GABELLI (800-422-3554); (ii) writing to The Gabelli Funds at One
Corporate Center, Rye, NY 10580-1422; or (iii) visiting the SEC's website at
www.sec.gov.
3
THE GABELLI VALUE FUND INC.
SCHEDULE OF INVESTMENTS -- JUNE 30, 2007 (UNAUDITED)
================================================================================
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS -- 99.3%
AEROSPACE -- 1.3%
1,000 Lockheed Martin Corp. ................$ 25,800 $ 94,130
10,000 Rockwell Automation Inc. ............. 618,209 694,400
1,000,000 Rolls-Royce Group plc+ ............... 7,007,796 10,813,688
59,200,000 Rolls-Royce Group plc, Cl. B ......... 115,993 121,258
------------ ------------
7,767,798 11,723,476
------------ ------------
AGRICULTURE -- 0.5%
100,000 Archer-Daniels-Midland Co. ........... 1,384,467 3,309,000
35,000 The Mosaic Co.+ ...................... 456,574 1,365,700
------------ ------------
1,841,041 4,674,700
------------ ------------
AUTOMOTIVE -- 0.1%
10,000 Navistar International Corp.+......... 283,786 660,000
------------ ------------
AUTOMOTIVE: PARTS AND ACCESSORIES -- 1.5%
38,000 China Yuchai International Ltd. ...... 300,576 433,960
350,000 Dana Corp.+ .......................... 3,257,744 707,000
250,000 Genuine Parts Co. .................... 6,781,559 12,400,000
25,000 Proliance International Inc.+ ........ 116,679 77,500
------------ ------------
10,456,558 13,618,460
------------ ------------
AVIATION: PARTS AND SERVICES -- 2.1%
43,000 Curtiss-Wright Corp. ................. 764,822 2,004,230
340,000 GenCorp Inc.+ ........................ 3,135,471 4,443,800
76,000 Sequa Corp., Cl. A+ .................. 3,344,763 8,512,000
33,000 Sequa Corp., Cl. B+ .................. 1,673,268 3,735,105
400,000 The Fairchild Corp., Cl. A+ .......... 2,484,916 888,000
------------ ------------
11,403,240 19,583,135
------------ ------------
BROADCASTING -- 6.8%
1,150,000 CBS Corp., Cl. A ..................... 21,088,588 38,329,500
147,000 Gray Television Inc. ................. 1,606,197 1,362,690
187,500 Liberty Media Corp. -
Capital, Cl. A+ .................... 11,537,181 22,065,000
30,000 Young Broadcasting Inc.,
Cl. A+ ............................. 270,342 110,700
------------ ------------
34,502,308 61,867,890
------------ ------------
BUSINESS SERVICES -- 0.4%
10,000 ChoicePoint Inc.+ .................... 375,967 424,500
120,000 Intermec Inc.+ ....................... 2,713,571 3,037,200
35,700 Nashua Corp.+ ........................ 295,578 385,203
------------ ------------
3,385,116 3,846,903
------------ ------------
CABLE AND SATELLITE -- 11.4%
130,000 Adelphia Communications
Corp., Cl. A+ ...................... 91,925 2,600
130,000 Adelphia Communications
Corp., Cl. A Escrow+ ............... 0 0
130,000 Adelphia Recovery Trust+ ............. 0 0
1,785,000 Cablevision Systems Corp.,
Cl. A+ ............................. 6,329,036 64,599,150
MARKET
SHARES COST VALUE
------ ---- ------
115,000 EchoStar Communications
Corp., Cl. A+ ......................$ 3,551,365 $ 4,987,550
250,000 Liberty Global Inc., Cl. A+ .......... 4,300,954 10,260,000
455,000 Rogers Communications Inc.,
Cl. B .............................. 1,607,866 19,332,950
195,000 The DIRECTV Group Inc.+ .............. 2,763,101 4,506,450
------------ ------------
18,644,247 103,688,700
------------ ------------
COMMUNICATIONS EQUIPMENT -- 1.8%
75,000 Alcatel-Lucent, ADR .................. 1,494,503 1,050,000
410,000 Corning Inc.+ ........................ 3,768,467 10,475,500
30,000 Motorola Inc. ........................ 210,940 531,000
165,000 Nortel Networks Corp.+ ............... 5,553,768 3,968,250
------------ ------------
11,027,678 16,024,750
------------ ------------
COMPUTER SOFTWARE AND SERVICES -- 0.3%
100,000 Yahoo! Inc.+ ......................... 3,175,611 2,713,000
------------ ------------
CONSUMER PRODUCTS -- 3.8%
85,000 Energizer Holdings Inc.+ ............. 1,992,017 8,466,000
500 Givaudan SA .......................... 135,440 495,293
125,000 Hartmarx Corp.+ ...................... 564,094 996,250
3,000 National Presto Industries Inc. ...... 89,483 187,020
165,000 Pactiv Corp.+ ........................ 1,590,048 5,261,850
1,000,000 Swedish Match AB ..................... 13,071,817 19,373,611
3,000 Wolverine World Wide Inc. ............ 29,203 83,130
------------ ------------
17,472,102 34,863,154
------------ ------------
CONSUMER SERVICES -- 1.7%
59,000 IAC/InterActiveCorp+ ................. 1,471,263 2,041,990
420,000 Liberty Media Corp. -
Interactive, Cl. A+ ................ 8,191,842 9,378,600
180,000 Rollins Inc. ......................... 1,308,325 4,098,600
------------ ------------
10,971,430 15,519,190
------------ ------------
DIVERSIFIED INDUSTRIAL -- 4.7%
47,000 Ampco-Pittsburgh Corp. ............... 235,016 1,884,230
24,000 Cooper Industries Ltd., Cl. A ........ 803,600 1,370,160
200,000 Crane Co. ............................ 5,254,374 9,090,000
29,000 Griffon Corp.+ ....................... 644,825 631,620
335,000 Honeywell International Inc. ......... 10,002,593 18,853,800
150,000 ITT Corp. ............................ 5,499,219 10,242,000
218,000 Katy Industries Inc.+ ................ 1,786,267 283,400
1,000 Pentair Inc. ......................... 31,908 38,570
3,000 The Lamson & Sessions Co.+ ........... 34,956 79,710
------------ ------------
24,292,758 42,473,490
------------ ------------
ELECTRONICS -- 4.1%
170,000 LSI Corp.+ ........................... 976,866 1,276,700
218,000 Texas Instruments Inc. ............... 5,498,427 8,203,340
5,000 Thermo Fisher Scientific Inc.+ ....... 115,249 258,600
300,000 Thomas & Betts Corp.+ ................ 5,345,034 17,400,000
300,000 Tyco International Ltd. .............. 9,085,349 10,137,000
------------ ------------
21,020,925 37,275,640
------------ ------------
See accompanying notes to financial statements.
4
THE GABELLI VALUE FUND INC.
SCHEDULE OF INVESTMENTS (CONTINUED) -- JUNE 30, 2007 (UNAUDITED)
================================================================================
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS (CONTINUED)
ENERGY AND UTILITIES -- 2.2%
6,000 Allegheny Energy Inc.+ ...............$ 74,092 $ 310,440
14,000 Chevron Corp. ........................ 848,670 1,179,360
184,000 ConocoPhillips ....................... 5,093,241 14,444,000
5,420 Mirant Corp.+ ........................ 25,619 231,163
200,000 Mirant Corp. Escrow+ (a) ............. 0 0
100,000 Northeast Utilities .................. 1,922,987 2,836,000
30,000 Southwest Gas Corp. .................. 664,382 1,014,300
------------ ------------
8,628,991 20,015,263
------------ ------------
ENTERTAINMENT -- 11.8%
8,570 Chestnut Hill Ventures+ (a) .......... 233,241 390,038
370,000 Discovery Holding Co., Cl. A+ ........ 4,456,502 8,506,300
60,000 Dover Motorsports Inc................. 309,314 363,600
1,280,000 Gemstar-TV Guide
International Inc.+ ................ 6,176,619 6,297,600
315,000 Grupo Televisa SA, ADR ............... 2,901,682 8,697,150
1,230,000 Time Warner Inc. ..................... 17,440,521 25,879,200
34,000 Triple Crown Media Inc.+ ............. 365,718 316,880
975,000 Viacom Inc., Cl. A+ .................. 27,031,517 40,560,000
390,000 Vivendi .............................. 5,189,157 16,843,608
------------ ------------
64,104,271 107,854,376
------------ ------------
ENVIRONMENTAL SERVICES -- 2.8%
360,000 Republic Services Inc................. 4,425,922 11,030,400
380,000 Waste Management Inc. ................ 8,959,895 14,839,000
------------ ------------
13,385,817 25,869,400
------------ ------------
EQUIPMENT AND SUPPLIES -- 3.5%
210,000 CIRCOR International Inc.............. 2,325,092 8,490,300
185,000 Flowserve Corp. ...................... 2,864,920 13,246,000
85,000 Gerber Scientific Inc.+............... 578,987 987,700
95,000 GrafTech International Ltd.+.......... 1,159,625 1,599,800
200,000 Watts Water Technologies Inc.,
Cl. A .............................. 2,930,394 7,494,000
------------ ------------
9,859,018 31,817,800
------------ ------------
FINANCIAL SERVICES -- 5.6%
530,000 American Express Co. ................. 17,244,922 32,425,400
100,000 Ameriprise Financial Inc.............. 2,346,124 6,357,000
120,000 Citigroup Inc. ....................... 5,928,509 6,154,800
27,000 Deutsche Bank AG ..................... 1,569,799 3,907,980
16,000 Interactive Brokers Group Inc.,
Cl. A+ ............................. 472,145 434,080
110,000 The Phoenix Companies Inc............. 1,214,394 1,651,100
------------ ------------
28,775,893 50,930,360
------------ ------------
FOOD AND BEVERAGE -- 5.7%
5,000 Constellation Brands Inc.,
Cl. A+ ............................. 104,585 121,400
15,000 Corn Products
International Inc. ................. 184,912 681,750
30,000 Davide Campari-Milano SpA ............ 310,435 314,881
MARKET
SHARES COST VALUE
------ ---- ------
40,000 Del Monte Foods Co. ..................$ 303,364 $ 486,400
208,000 Diageo plc, ADR ...................... 7,993,283 17,328,480
98,000 Flowers Foods Inc. ................... 785,928 3,269,280
231,000 Fomento Economico Mexicano
SAB de CV, ADR ..................... 2,825,162 9,082,920
65,000 General Mills Inc. ................... 3,302,432 3,797,300
75,000 H.J. Heinz Co. ....................... 2,415,535 3,560,250
70,000 Kerry Group plc, Cl. A ............... 797,221 1,963,411
380,000 PepsiAmericas Inc. ................... 5,323,773 9,332,800
14,000 Remy Cointreau SA .................... 897,443 1,050,687
3,000 The Hershey Co. ...................... 145,382 151,860
14,000 Wm. Wrigley Jr. Co. .................. 680,116 774,340
3,750 Wm. Wrigley Jr. Co., Cl. B ........... 193,262 206,250
------------ ------------
26,262,833 52,122,009
------------ ------------
HEALTH CARE -- 0.4%
20,000 Advanced Medical Optics Inc.+ ........ 782,903 697,600
5,000 Chemed Corp. ......................... 157,240 331,450
100,000 Pfizer Inc. .......................... 2,487,765 2,557,000
------------ ------------
3,427,908 3,586,050
------------ ------------
HOTELS AND GAMING -- 2.9%
57,000 Dover Downs Gaming &
Entertainment Inc. ................. 361,532 855,570
185,000 Gaylord Entertainment Co.+............ 5,187,585 9,923,400
180,000 Hilton Hotels Corp. .................. 1,475,235 6,024,600
352,941 Ladbrokes plc ........................ 3,502,005 3,068,868
20,000 Las Vegas Sands Corp.+................ 736,642 1,527,800
65,000 MGM Mirage+ .......................... 1,478,603 5,361,200
------------ ------------
12,741,602 26,761,438
------------ ------------
MACHINERY -- 1.0%
86,800 CNH Global NV ........................ 1,632,870 4,434,612
38,000 Deere & Co. .......................... 1,565,024 4,588,120
------------ ------------
3,197,894 9,022,732
------------ ------------
MANUFACTURED HOUSING -- 0.5%
470,000 Champion Enterprises Inc.+............ 4,616,447 4,620,100
------------ ------------
METALS AND MINING -- 3.7%
478,000 Barrick Gold Corp. ................... 7,651,550 13,895,460
123,133 Kinross Gold Corp.+ .................. 1,119,196 1,438,193
471,000 Newmont Mining Corp. ................. 9,100,344 18,397,260
------------ ------------
17,871,090 33,730,913
------------ ------------
PUBLISHING -- 7.3%
150,000 Belo Corp., Cl. A .................... 2,592,089 3,088,500
855,000 Media General Inc., Cl. A ............ 16,809,300 28,445,850
70,000 Meredith Corp. ....................... 1,404,532 4,312,000
750,000 News Corp., Cl. A .................... 10,676,747 15,907,500
320,000 PRIMEDIA Inc.+ ....................... 927,102 912,000
300,000 The E.W. Scripps Co., Cl. A .......... 10,208,574 13,707,000
12,687 Tribune Co. .......................... 386,531 372,998
------------ ------------
43,004,875 66,745,848
------------ ------------
See accompanying notes to financial statements.
5
THE GABELLI VALUE FUND INC.
SCHEDULE OF INVESTMENTS (CONTINUED) -- JUNE 30, 2007 (UNAUDITED)
================================================================================
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS (CONTINUED)
REAL ESTATE -- 0.5%
134,000 Griffin Land & Nurseries Inc.+ ...... $ 1,587,460 $ 4,837,400
------------ ------------
RETAIL -- 1.1%
50,000 Ingles Markets Inc., Cl. A ........... 572,181 1,722,500
130,000 Safeway Inc. ......................... 2,649,854 4,423,900
30,000 SUPERVALU Inc. ....................... 850,468 1,389,600
55,000 The Home Depot Inc. .................. 1,877,099 2,164,250
------------ ------------
5,949,602 9,700,250
------------ ------------
SPECIALTY CHEMICALS -- 1.1%
220,000 Ferro Corp. .......................... 4,605,734 5,484,600
200,000 Hercules Inc.+ ....................... 1,840,472 3,930,000
6,000 International Flavors &
Fragrances Inc. .................... 293,026 312,840
4,000 Monsanto Co. ......................... 170,632 270,160
10,000 Sensient Technologies Corp............ 197,746 253,900
8,065 Tronox Inc., Cl. B ................... 78,763 113,313
------------ ------------
7,186,373 10,364,813
------------ ------------
TELECOMMUNICATIONS -- 8.2%
645,000 Cincinnati Bell Inc.+ ................ 2,473,255 3,728,100
55,000 Embarq Corp. ......................... 1,417,679 3,485,350
240,000 Qwest Communications
International Inc.+ ................ 653,937 2,328,000
1,480,000 Sprint Nextel Corp. .................. 19,872,449 30,650,800
420,000 Telephone & Data
Systems Inc. ....................... 9,155,804 26,279,400
145,000 Telephone & Data
Systems Inc., Special .............. 3,235,781 8,344,750
------------ ------------
36,808,905 74,816,400
------------ ------------
TRANSPORTATION -- 0.1%
97,000 Grupo TMM SA, Cl. A, ADR+............. 758,120 328,830
10,000 Laidlaw International Inc............. 345,800 345,500
------------ ------------
1,103,920 674,330
------------ ------------
WIRELESS COMMUNICATIONS -- 0.4%
40,000 United States Cellular Corp.+ ........ 1,880,524 3,624,000
------------ ------------
TOTAL COMMON STOCKS .................. 466,638,021 905,625,970
------------ ------------
WARRANTS -- 0.1%
ENERGY AND UTILITIES -- 0.1%
17,405 Mirant Corp., Ser. A,
expire 01/03/11+ ................. 35,380 400,663
------------ ------------
PRINCIPAL MARKET
AMOUNT COST VALUE
------ ---- ------
REPURCHASE AGREEMENTS -- 0.8%
$7,357,000 Daiwa Securities America Inc.,
4.000%, dated 06/29/07, due
07/02/07, proceeds at
maturity, $7,359,452(b) ........... $ 7,357,000 $ 7,357,000
------------ ------------
TOTAL
INVESTMENTS -- 100.2% ............. $474,030,401 913,383,633
============
OTHER ASSETS AND LIABILITIES (NET) -- (0.2)% (1,452,822)
------------
NET ASSETS -- 100.0% ............................. $911,930,811
============
- ----------------
(a) Security fair valued under procedures established by the Board of Directors.
The procedures may include reviewing available financial information about
the company and reviewing the valuation of comparable securities and other
factors on a regular basis. At June 30, 2007, the market value of the fair
valued securities amounted to $390,038 or 0.04% of total net assets.
(b) Collateralized by $7,542,000 U.S. Treasury Note, 4.375%, due 11/15/08,
market value $7,504,290.
+ Non-income producing security.
ADR American Depository Receipt
See accompanying notes to financial statements.
6
THE GABELLI VALUE FUND INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2007 (UNAUDITED)
================================================================================
ASSETS:
Investments, at value (cost $466,673,401) $906,026,633
Repurchase agreements, at value
(cost $7,357,000)............................... 7,357,000
Cash.............................................. 634
Receivable for Fund shares sold................... 606,670
Dividends and interest receivable................. 694,120
Prepaid expense................................... 14,346
------------
TOTAL ASSETS...................................... 914,699,403
------------
LIABILITIES:
Payable for Fund shares redeemed.................. 1,384,370
Payable for investment advisory fees.............. 732,701
Payable for shareholder services fees............. 324,993
Payable for distribution fees..................... 200,723
Payable for Directors' fees....................... 5,059
Payable for accounting fees....................... 3,627
Other accrued expenses............................ 117,119
------------
TOTAL LIABILITIES................................. 2,768,592
------------
NET ASSETS applicable to 47,196,065
shares outstanding.............................. $911,930,811
============
NET ASSETS CONSIST OF:
Paid-in capital, each class at $0.001 par value... $452,102,472
Accumulated net investment loss................... (404,122)
Accumulated net realized gain on
investments and foreign currency transactions... 20,879,059
Net unrealized appreciation on investments........ 439,353,232
Net unrealized appreciation on foreign
currency translations........................... 170
------------
NET ASSETS........................................ $911,930,811
============
SHARES OF CAPITAL STOCK:
CLASS A:
Net Asset Value and redemption price per
share ($882,833,578 / 45,584,233 shares
outstanding; 100,000,000 shares authorized)..... $19.37
======
Maximum offering price per share (NAV / .9425,
based on maximum sales charge of 5.75%
of the offering price).......................... $20.55
======
CLASS B:
Net Asset Value and offering price per share
($12,818,690 / 710,373 shares outstanding;
100,000,000 shares authorized).................. $18.05(a)
======
CLASS C:
Net Asset Value and offering price per share
($16,278,543 / 901,459 shares outstanding;
50,000,000 shares authorized)................... $18.06(a)
======
- --------------------
(a) Redemption price varies based on the length of time held.
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2007 (UNAUDITED)
================================================================================
INVESTMENT INCOME:
Dividends (net of foreign taxes of $180,075) $ 5,635,132
Interest.......................................... 224,031
-----------
TOTAL INVESTMENT INCOME........................... 5,859,163
-----------
EXPENSES:
Investment advisory fees.......................... 4,428,088
Distribution fees - Class A....................... 1,071,726
Distribution fees - Class B....................... 63,778
Distribution fees - Class C....................... 77,407
Shareholder services fees......................... 311,771
Shareholder communications expenses............... 110,787
Custodian fees.................................... 42,495
Legal and audit fees.............................. 34,753
Directors' fees................................... 33,559
Accounting fees .................................. 22,375
Interest expense.................................. 16,860
Registration expenses............................. 16,016
Miscellaneous expenses............................ 38,292
-----------
TOTAL EXPENSES.................................... 6,267,907
Less: Custodian fee credits....................... (4,161)
-----------
NET EXPENSES...................................... 6,263,746
-----------
NET INVESTMENT LOSS............................... (404,583)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCY:
Net realized gain on investments ................. 27,437,038
Net realized loss on
foreign currency transactions................... (1,266)
-----------
Net realized gain on investments and
foreign currency transactions................... 27,435,772
-----------
Net change in unrealized appreciation/
depreciation on investments..................... 58,395,219
Net change in unrealized appreciation/
depreciation on foreign currency translations... (52)
-----------
Net change in unrealized appreciation/
depreciation on investments and
foreign currency translations................... 58,395,167
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY................ 85,830,939
-----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS................................. $85,426,356
===========
See accompanying notes to financial statements.
7
THE GABELLI VALUE FUND INC.
STATEMENT OF CHANGES IN NET ASSETS
================================================================================
SIX MONTHS ENDED
JUNE 30, 2007 YEAR ENDED
(UNAUDITED) DECEMBER 31, 2006
---------------- -----------------
OPERATIONS:
Net investment income (loss)................................................ $ (404,583) $ 1,165,445
Net realized gain on investments and foreign currency transactions.......... 27,435,772 180,292,600
Net change in unrealized appreciation/depreciation on
investments and foreign currency translations ............................ 58,395,167 4,923,797
------------ --------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ....................... 85,426,356 186,381,842
------------ --------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A .................................................................. -- (1,177,420)
Class B .................................................................. -- (6)
------------ --------------
-- (1,177,426)
------------ --------------
Net realized gains on investments and foreign currency transactions
Class A .................................................................. -- (175,292,657)
Class B .................................................................. -- (2,830,343)
Class C .................................................................. -- (3,171,930)
------------ --------------
-- (181,294,930)
------------ --------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS......................................... -- (182,472,356)
------------ --------------
CAPITAL SHARE TRANSACTIONS
Class A .................................................................. (60,765,588) (206,787,976)
Class B .................................................................. (1,405,934) (4,770,251)
Class C .................................................................. 135,513 1,241,683
------------ --------------
NET DECREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (62,036,009) (210,316,544)
------------ --------------
REDEMPTION FEES ............................................................ 1,645 1,667
------------ --------------
NET INCREASE (DECREASE) IN NET ASSETS....................................... 23,391,992 (206,405,391)
NET ASSETS:
Beginning of period......................................................... 888,538,819 1,094,944,210
------------ --------------
End of period (including undistributed net investment
income of $0 and $461, respectively)...................................... $911,930,811 $ 888,538,819
============ ==============
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
================================================================================
1. ORGANIZATION. The Gabelli Value Fund Inc. (the "Fund") was organized on July
20, 1989 as a Maryland corporation. The Fund is a non-diversified open-end
management investment company registered under the Investment Company Act of
1940, as amended (the "1940 Act"). The Fund's primary objective is long-term
capital appreciation. The Fund commenced investment operations on September 29,
1989.
2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements in
accordance with United States ("U.S.") generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results could differ
from those estimates. The following is a summary of significant accounting
policies followed by the Fund in the preparation of its financial statements.
SECURITY VALUATION. Portfolio securities listed or traded on a nationally
recognized securities exchange or traded in the U.S. over-the-counter market for
which market quotations are readily available are valued at the last quoted sale
price or a market's official closing price as of the close of business on the
day the securities are being valued. If there were no sales that day, the
security is valued at the average of the closing bid
8
THE GABELLI VALUE FUND INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
================================================================================
and asked prices or, if there were no asked prices quoted on that day, then the
security is valued at the closing bid price on that day. If no bid or asked
prices are quoted on such day, the security is valued at the most recently
available price or, if the Board of Directors (the "Board") so determines, by
such other method as the Board shall determine in good faith to reflect its fair
market value. Portfolio securities traded on more than one national securities
exchange or market are valued according to the broadest and most representative
market, as determined by Gabelli Funds, LLC (the "Adviser").
Portfolio securities primarily traded on a foreign market are generally valued
at the preceding closing values of such securities on the relevant market, but
may be fair valued pursuant to procedures established by the Board if market
conditions change significantly after the close of the foreign market but prior
to the close of business on the day the securities are being valued. Debt
instruments with remaining maturities of 60 days or less that are not credit
impaired are valued at amortized cost, unless the Board determines such amount
does not reflect the securities' fair value, in which case these securities will
be fair valued as determined by the Board. Debt instruments having a maturity
greater than 60 days for which market quotations are readily available are
valued at the average of the latest bid and asked prices. If there were no asked
prices quoted on such day, the security is valued using the closing bid price.
Futures contracts are valued at the closing settlement price of the exchange or
board of trade on which the applicable contract is traded.
Securities and assets for which market quotations are not readily available are
fair valued as determined by the Board. Fair valuation methodologies and
procedures may include, but are not limited to: analysis and review of available
financial and non-financial information about the company; comparisons to the
valuation and changes in valuation of similar securities, including a comparison
of foreign securities to the equivalent U.S. dollar value ADR securities at the
close of the U.S. exchange; and evaluation of any other information that could
be indicative of the value of the security.
In September 2006, the Financial Accounting Standards Board (the "FASB") issued
Statement of Financial Accounting Standards ("SFAS") 157, Fair Value
Measurements, which clarifies the definition of fair value and requires
companies to expand their disclosure about the use of fair value to measure
assets and liabilities in interim and annual periods subsequent to initial
recognition. Adoption of SFAS 157 requires the use of the price that would be
received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. SFAS 157 is
effective for financial statements issued for fiscal years beginning after
November 15, 2007, and interim periods within those fiscal years. At this time,
management is in the process of reviewing the requirements of SFAS 157 against
its current valuation policies to determine future applicability.
REPURCHASE AGREEMENTS. The Fund may enter into repurchase agreements with
primary government securities dealers recognized by the Federal Reserve Board,
with member banks of the Federal Reserve System, or with other brokers or
dealers that meet credit guidelines established by the Adviser and reviewed by
the Board. Under the terms of a typical repurchase agreement, the Fund takes
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Fund to resell, the obligation at an agreed-upon
price and time, thereby determining the yield during the Fund's holding period.
The Fund will always receive and maintain securities as collateral whose market
value, including accrued interest, will be at least equal to 102% of the dollar
amount invested by the Fund in each agreement. The Fund will make payment for
such securities only upon physical delivery or upon evidence of book entry
transfer of the collateral to the account of the custodian. To the extent that
any repurchase transaction exceeds one business day, the value
9
THE GABELLI VALUE FUND INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
================================================================================
of the collateral is marked-to-market on a daily basis to maintain the adequacy
of the collateral. If the seller defaults and the value of the collateral
declines or if bankruptcy proceedings are commenced with respect to the seller
of the security, realization of the collateral by the Fund may be delayed or
limited. At June 30, 2007, the Fund had an investment of $7,357,000 in a
repurchase agreement.
FUTURES CONTRACTS. The Fund may engage in futures contracts for the purpose of
hedging against changes in the value of its portfolio securities and in the
value of securities it intends to purchase. Upon entering into a futures
contract, the Fund is required to deposit with the broker an amount of cash or
cash equivalents equal to a certain percentage of the contract amount. This is
known as the "initial margin". Subsequent payments ("variation margin") are made
or received by the Fund each day, depending on the daily fluctuations in the
value of the contract, which are included in unrealized
appreciation/depreciation on investments and futures contracts. The Fund
recognizes a realized gain or loss when the contract is closed.
There are several risks in connection with the use of futures contracts as a
hedging instrument. The change in value of futures contracts primarily
corresponds with the value of their underlying instruments, which may not
correlate with the change in value of the hedged investments. In addition, there
is the risk that the Fund may not be able to enter into a closing transaction
because of an illiquid secondary market. At June 30, 2007, there were no open
futures contracts.
SECURITIES SOLD SHORT. The Fund may enter into short sale transactions. Short
selling involves selling securities that may or may not be owned and, at times,
borrowing the same securities for delivery to the purchaser, with an obligation
to replace such borrowed securities at a later date. The proceeds received from
short sales are recorded as liabilities and the Fund records an unrealized gain
or loss to the extent of the difference between the proceeds received and the
value of an open short position on the day of determination. The Fund records a
realized gain or loss when the short position is closed out. By entering into a
short sale, the Fund bears the market risk of an unfavorable change in the price
of the security sold short. Dividends on short sales are recorded as an expense
by the Fund on the ex-dividend date and interest expense is recorded on the
accrual basis. The Fund did not hold any short positions as of June 30, 2007.
FOREIGN CURRENCY TRANSLATIONS. The books and records of the Fund are maintained
in U.S. dollars. Foreign currencies, investments, and other assets and
liabilities are translated into U.S. dollars at the current exchange rates.
Purchases and sales of investment securities, income, and expenses are
translated at the exchange rate prevailing on the respective dates of such
transactions. Unrealized gains and losses that result from changes in foreign
exchange rates and/or changes in market prices of securities have been included
in unrealized appreciation/depreciation on investments and foreign currency
translations. Net realized foreign currency gains and losses resulting from
changes in exchange rates include foreign currency gains and losses between
trade date and settlement date on investment securities transactions, foreign
currency transactions, and the difference between the amounts of interest and
dividends recorded on the books of the Fund and the amounts actually received.
The portion of foreign currency gains and losses related to fluctuation in
exchange rates between the initial purchase trade date and subsequent sale trade
date is included in realized gain/(loss) on investments.
FOREIGN SECURITIES. The Fund may directly purchase securities of foreign
issuers. Investing in securities of foreign issuers involves special risks not
typically associated with investing in securities of U.S. issuers. The risks
include possible revaluation of currencies, the ability to repatriate funds,
less complete financial
10
THE GABELLI VALUE FUND INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
================================================================================
information about companies, and possible future adverse political and economic
developments. Moreover, securities of many foreign issuers and their markets may
be less liquid and their prices more volatile than those of securities of
comparable U.S. issuers.
FOREIGN TAXES. The Fund may be subject to foreign taxes on income, gains on
investments, or currency repatriation, a portion of which may be recoverable.
The Fund will accrue such taxes and recoveries as applicable, based upon its
current interpretation of tax rules and regulations that exist in the markets in
which it invests.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are
accounted for on the trade date with realized gain or loss on investments
determined by using the identified cost method. Interest income (including
amortization of premium and accretion of discount) is recorded on the accrual
basis. Premiums and discounts on debt securities are amortized using the
effective yield to maturity method. Dividend income is recorded on the
ex-dividend date except for certain dividends which are recorded as soon as the
Fund is informed of the dividend.
DETERMINATION OF NET ASSET VALUE AND CALCULATION OF EXPENSES. Certain
administrative expenses are common to, and allocated among, various affiliated
funds. Such allocations are made on the basis of each Fund's average net assets
or other criteria directly affecting the expenses as determined by the Adviser
pursuant to procedures established by the Board.
In calculating the NAV per share of each class, investment income, realized and
unrealized gains and losses, redemption fees, and expenses other than class
specific expenses are allocated daily to each class of shares based upon the
proportion of net assets of each class at the beginning of each day.
Distribution expenses are borne solely by the class incurring the expense.
CUSTODIAN FEE CREDITS AND INTEREST EXPENSE. When cash balances are maintained in
the custody account, the Fund receives credits which are used to offset
custodian fees. The gross expenses paid under the custody arrangement are
included in custodian fees in the Statement of Operations with the corresponding
expense offset, if any, shown as "custodian fee credits". When cash balances are
overdrawn, the Fund is charged an overdraft fee equal to 2.00% above the Federal
Funds rate on outstanding balances. This amount, if any, would be shown as
"interest expense" in the Statement of Operations.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions to shareholders are recorded on the
ex-dividend date. Distributions to shareholders are based on income and capital
gains as determined in accordance with federal income tax regulations, which may
differ from income and capital gains as determined under U.S. generally accepted
accounting principles. These differences are primarily due to differing
treatments of income and gains on various investment securities and foreign
currency transactions held by the Fund, timing differences, and differing
characterizations of distributions made by the Fund. Distributions from net
investment income include net realized gains on foreign currency transactions.
These book/tax differences are either temporary or permanent in nature. To the
extent these differences are permanent, adjustments are made to the appropriate
capital accounts in the period when the differences arise. These
reclassifications have no impact on the NAV of the Fund.
11
THE GABELLI VALUE FUND INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
================================================================================
The tax character of distributions paid during the fiscal year ended December
31, 2006 was as follows:
DISTRIBUTIONS PAID FROM:
Ordinary income (inclusive of short-term
capital gains)..................................... $ 1,874,083
Net long-term capital gains.......................... 180,598,273
------------
Total distributions paid............................. $182,472,356
============
PROVISION FOR INCOME TAXES. The Fund intends to continue to qualify as a
regulated investment company under Subchapter M of the Internal Revenue Code of
1986, as amended (the "Code"). It is the policy of the Fund to comply with the
requirements of the Code applicable to regulated investment companies and to
distribute substantially all of its net investment company taxable income and
net capital gains. Therefore, no provision for federal income taxes is required.
The following summarizes the tax cost of investments and the related unrealized
appreciation/(depreciation) at June 30, 2007:
GROSS GROSS
UNREALIZED UNREALIZED NET UNREALIZED
COST APPRECIATION DEPRECIATION APPRECIATION
---- ------------ ------------ --------------
Investments............. $480,761,241 $449,104,817 $(16,482,425) $432,622,392
In July 2006, the FASB issued Interpretation No. 48, "Accounting for Uncertainty
in Income Taxes, an Interpretation of FASB Statement No. 109" ("the
Interpretation"). The Interpretation established for all entities, including
pass-through entities such as the Fund, a minimum threshold for financial
statement recognition of the benefit of positions taken in filing tax returns
(including whether an entity is taxable in a particular jurisdiction), and
required certain expanded tax disclosures. The Interpretation was implemented by
the Fund on June 29, 2007 and applied to all open tax years as of the effective
date. Management has evaluated the application of the Interpretation to the
Fund, and the adoption of the Interpretation had no impact on the amounts
reported in the financial statements.
3. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS. The Fund has entered
into an investment advisory agreement (the "Advisory Agreement") with the
Adviser which provides that the Fund will pay the Adviser a fee, computed daily
and paid monthly, at the annual rate of 1.00% of the value of its average daily
net assets. In accordance with the Advisory Agreement, the Adviser provides a
continuous investment program for the Fund's portfolio, oversees the
administration of all aspects of the Fund's business and affairs, and pays the
compensation of all Officers and Directors of the Fund who are affiliated
persons of the Adviser.
The Fund pays each Director that is not considered to be an affiliated person an
annual retainer of $10,000 plus $1,000 for each Board meeting attended and they
are reimbursed for any out of pocket expenses incurred in attending meetings.
All Board committee members receive $1,000 per meeting attended and the chairman
of each committee also receives $2,500 per year. Directors who are directors or
employees of the Adviser or an affiliated company receive no compensation or
expense reimbursement from the Fund.
12
THE GABELLI VALUE FUND INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
================================================================================
4. DISTRIBUTION PLAN. The Fund's Board has adopted a distribution plan (the
"Plan") for each class of shares pursuant to Rule 12b-1 under the 1940 Act.
Gabelli & Company, Inc. ("Gabelli & Company"), an affiliate of the Adviser,
serves as distributor of the Fund. Under the Class A, Class B, and Class C Share
Plans, payments are authorized to Gabelli & Company at annual rates of 0.25%,
1.00%, and 1.00%, respectively, of the average daily net assets of those
classes, the annual limitations under each Plan. Such payments are accrued daily
and paid monthly.
5. PORTFOLIO SECURITIES. Purchases and proceeds from the sales of securities for
the six months ended June 30, 2007, other than short-term securities, aggregated
$21,990,851 and $72,207,856, respectively.
6. TRANSACTIONS WITH AFFILIATES. During the six months ended June 30, 2007, the
Fund paid brokerage commissions of $77,577 to Gabelli & Company. Additionally,
Gabelli & Company informed the Fund that it received $52,687 from investors
representing commissions (sales charges and underwriting fees) on sales and
redemptions of Fund shares.
The cost of calculating the Fund's NAV per share is a Fund expense pursuant to
the Advisory Agreement between the Fund and the Adviser. During the six months
ended June 30, 2007, the Fund paid or accrued $22,375 to the Adviser in
connection with the cost of computing the Fund's NAV.
7. CAPITAL STOCK TRANSACTIONS. The Fund currently offers three classes of shares
- - Class A Shares, Class B Shares, and Class C Shares. Class A Shares are subject
to a maximum front-end sales charge of 5.75%. For the period from January 1,
through April 30, 2007, the maximum front-end load on Class A Shares was 5.50%.
Class B Shares are subject to a contingent deferred sales charge ("CDSC") upon
redemption within six years of purchase and automatically convert to Class A
Shares approximately eight years after the original purchase. The applicable
CDSC is equal to a declining percentage of the lesser of the NAV per share at
the date of the original purchase or at the date of redemption, based on the
length of time held. Class C Shares are subject to a 1.00% CDSC for one year
after purchase. Class B Shares are available only through exchange of Class B
Shares of other funds distributed by Gabelli & Company. The Board has approved
Class I Shares which have not been offered publicly.
The Fund imposes a redemption fee of 2.00% on Class A Shares, Class B Shares,
and Class C Shares that are redeemed or exchanged on or before the seventh day
after the date of a purchase. The redemption fee is deducted from the proceeds
otherwise payable to the redeeming shareholders and is retained by the Fund. The
redemption fees retained by the Fund during the six months ended June 30, 2007
and the fiscal year ended December 31, 2006 amounted to $1,645 and $1,667,
respectively.
The redemption fee does not apply to redemptions of shares where (i) the shares
were purchased through automatic reinvestment of dividends or other
distributions, (ii) the redemption was initiated by the Fund, (iii) the shares
were purchased through programs that collect the redemption fee at the program
level and remit them to the Fund, or (iv) the shares were purchased through
programs that the Adviser determines to have appropriate anti-short-term trading
policies in place or as to which the Adviser has received assurances that
look-through redemption fee procedures or effective anti-short-term trading
policies and procedures are in place.
13
THE GABELLI VALUE FUND INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
================================================================================
Transactions in shares of capital stock were as follows:
SIX MONTHS ENDED
JUNE 30, 2007 YEAR ENDED
(UNAUDITED) DECEMBER 31, 2006
-------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- -------------
CLASS A CLASS A
-------------------------- ---------------------------
Shares sold ....................................... 850,501 $ 15,659,137 2,603,599 $ 50,582,707
Shares issued upon reinvestment of distributions... -- -- 9,303,834 164,770,939
Shares redeemed ................................... (4,160,542) (76,424,725) (21,715,392) (422,141,622)
---------- ------------ ---------- -------------
Net decrease .................................... (3,310,041) $(60,765,588) (9,807,959) $(206,787,976)
========== ============ ========== =============
CLASS B CLASS B
-------------------------- ---------------------------
Shares sold ....................................... 2,717 $ 46,445 7,500 $ 131,453
Shares issued upon reinvestment of distributions... -- -- 148,543 2,459,882
Shares redeemed ................................... (84,755) (1,452,379) (394,141) (7,361,586)
---------- ------------ ---------- -------------
Net decrease .................................... (82,038) $ (1,405,934) (238,098) $ (4,770,251)
========== ============ ========== =============
CLASS C CLASS C
-------------------------- ---------------------------
Shares sold ....................................... 95,130 $ 1,619,871 140,139 $ 2,542,951
Shares issued upon reinvestment of distributions... -- -- 128,599 2,130,888
Shares redeemed ................................... (86,500) (1,484,358) (185,965) (3,432,156)
---------- ------------ ---------- -------------
Net increase..................................... 8,630 $ 135,513 82,773 $ 1,241,683
========== ============ ========== =============
8. INDEMNIFICATIONS. The Fund enters into contracts that contain a variety of
indemnifications. The Fund's maximum exposure under these arrangements is
unknown. However, the Fund has not had prior claims or losses pursuant to these
contracts and expects the risk of loss to be remote.
9. OTHER MATTERS. The Adviser and/or affiliates received subpoenas from the
Attorney General of the State of New York and the SEC requesting information on
mutual fund share trading practices involving certain funds managed by the
Adviser. GAMCO Investors, Inc. ("GAMCO"), the Adviser's parent company,
responded to these requests for documents and testimony. In June 2006, GAMCO
began discussions with the SEC regarding a possible resolution of their inquiry.
In February 2007, the Adviser made an offer of settlement to the staff of the
SEC for communication to the Commission for its consideration to resolve this
matter. This offer of settlement is subject to agreement regarding the specific
language of the SEC's administrative order and other settlement documents. On a
separate matter, in September 2005, the Adviser was informed by the staff of the
SEC that the staff may recommend to the Commission that an administrative remedy
and a monetary penalty be sought from the Adviser in connection with the actions
of two of seven closed-end funds managed by the Adviser relating to Section
19(a) and Rule 19a-1 of the 1940 Act. These provisions require registered
investment companies to provide written statements to shareholders when a
dividend is made from a source other than net investment income. While the two
closed-end funds sent annual statements and provided other materials containing
this information, the funds did not send written statements to shareholders with
each distribution in 2002 and 2003. The Adviser believes that all of the funds
are now in compliance. The Adviser believes that these matters would have no
effect on the Fund or any material adverse effect on the Adviser or its ability
to manage the Fund.
14
THE GABELLI VALUE FUND INC.
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock outstanding throughout each period:
INCOME FROM INVESTMENT OPERATIONS DISTRIBUTIONS
----------------------------------------- ---------------------------------------
Net
Net Asset Net Realized and Total Net
Period Value, Investment Unrealized from Net Realized
Ended Beginning Income/ Gain/(Loss) on Investment Investment Gain on Total
December 31 of Period (Loss)(a) Investments Operations Income Investments Distributions
----------- --------- --------- ----------- ---------- ------ ----------- -------------
CLASS A
2007(c) $17.61 $(0.01) $ 1.77 $ 1.76 -- -- --
2006 18.11 0.03 3.92 3.95 $(0.03) $(4.42) $(4.45)
2005 19.49 0.02 (0.05) (0.03) (0.01) (1.34) (1.35)
2004 17.97 (0.02) 2.31 2.29 -- (0.77) (0.77)
2003 13.81 (0.05) 4.45 4.40 -- (0.24) (0.24)
2002 16.43 (0.04) (2.58) (2.62) -- -- --
CLASS B
2007(c) $16.46 $(0.07) $ 1.66 $ 1.59 -- -- --
2006 17.28 (0.10) 3.70 3.60 -- $(4.42) $(4.42)
2005 18.79 (0.12) (0.05) (0.17) -- (1.34) (1.34)
2004 17.47 (0.15) 2.24 2.09 -- (0.77) (0.77)
2003 13.53 (0.17) 4.35 4.18 -- (0.24) (0.24)
2002 16.23 (0.14) (2.56) (2.70) -- -- --
CLASS C
2007(c) $16.47 $(0.07) $ 1.66 $ 1.59 -- -- --
2006 17.29 (0.11) 3.71 3.60 -- $(4.42) $(4.42)
2005 18.80 (0.12) (0.05) (0.17) -- (1.34) (1.34)
2004 17.49 (0.15) 2.23 2.08 -- (0.77) (0.77)
2003 13.54 (0.17) 4.36 4.19 -- (0.24) (0.24)
2002 16.24 (0.14) (2.56) (2.70) -- -- --
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
-------------------------------------------------
Net Asset Net Assets Net
Period Value, End of Investment Portfolio
Ended Redemption End of Total Period Income/ Operating Turnover
December 31 Fees(a) Period Return+ (in 000's) (Loss) Expenses (b) Rate
----------- ------- ------ ------- ---------- ------ ------------ ----
CLASS A
2007(c) $0.00(d) $19.37 10.0% $ 882,834 (0.07)%(e) 1.39%(e) 2%
2006 0.00(d) 17.61 21.7 860,789 0.14 1.41(f) 17
2005 0.00(d) 18.11 (0.2) 1,063,137 0.08 1.40 3
2004 0.00(d) 19.49 12.8 1,261,293 (0.11) 1.39 12
2003 -- 17.97 31.9 1,255,668 (0.35) 1.44(g) 8
2002 -- 13.81 (16.0) 1,024,452 (0.28) 1.40 16
CLASS B
2007(c) $0.00(d) $18.05 9.5% $ 12,819 (0.82)%(e) 2.14%(e) 2%
2006 0.00(d) 16.46 20.8 13,046 (0.53) 2.16(f) 17
2005 0.00(d) 17.28 (0.9) 17,804 (0.67) 2.15 3
2004 0.00(d) 18.79 12.0 20,366 (0.86) 2.14 12
2003 -- 17.47 30.9 18,059 (1.10) 2.19(g) 8
2002 -- 13.53 (16.6) 10,493 (1.01) 2.16 16
CLASS C
2007(c) $0.00(d) $18.06 9.7% $ 16,278 (0.81)%(e) 2.14%(e) 2%
2006 0.00(d) 16.47 20.7 14,704 (0.58) 2.16(f) 17
2005 0.00(d) 17.29 (0.9) 14,003 (0.67) 2.15 3
2004 0.00(d) 18.80 11.9 16,400 (0.85) 2.14 12
2003 -- 17.49 30.9 14,973 (1.10) 2.19(g) 8
2002 -- 13.54 (16.6) 8,078 (1.01) 2.16 16
+ Total return represents aggregate total return of a hypothetical $1,000
investment at the beginning of the period and sold at the end of the period
including reinvestment of distributions and does not reflect applicable
sales charges. Total return for a period of less than one year is not
annualized.
(a) Per share amounts have been calculated using the average shares outstanding
method.
(b) The ratios do not include a reduction of expenses for custodian fee credits
on cash balances maintained with the custodian. For the six months ended
June 30, 2007 and the fiscal years ended December 31, 2002, 2003, and 2006,
the effect of the custodian fee credits were minimal. For the fiscal years
ended December 31, 2004 and 2005, there were no custodian fee credits.
(c) For the six months ended June 30, 2007, unaudited.
(d) Amount represents less than $0.005 per share.
(e) Annualized.
(f) The Fund incurred interest expense during the fiscal year ended December 31,
2006. If interest expense had not been incurred, the ratios of operating
expenses to average net assets would have been 1.40% (Class A), 2.15% (Class
B), and 2.15% (Class C), respectively. For the six months ended June 30,
2007, interest expense was minimal.
(g) The Fund incurred dividend expense on securities sold short for the year
ended December 31, 2003. If dividend expense had not been incurred, the
ratios of operating expenses to average net assets would have been 1.43%
(Class A), 2.18% (Class B), and 2.18% (Class C), respectively.
See accompanying notes to financial statements.
15
THE GABELLI VALUE FUND INC.
BOARD CONSIDERATION AND RE-APPROVAL OF INVESTMENT ADVISORY AGREEMENT (UNAUDITED)
Section 15(c) of the Investment Company Act of 1940, as amended (the "1940
Act"), contemplates that the Board of Directors (the "Board") of The Gabelli
Value Fund Inc. (the "Fund"), including a majority of the Directors who have no
direct or indirect interest in the investment advisory agreement and are not
"interested persons" of the Fund, as defined in the 1940 Act (the "Independent
Board Members"), are required to annually review and re-approve the terms of the
Fund's existing investment advisory agreement and approve any newly proposed
terms therein. In this regard, the Board reviewed and re-approved, during the
most recent six month period covered by this report, the Investment Advisory
Agreement (the "Advisory Agreement") with Gabelli Funds, LLC (the "Adviser") for
the Fund.
More specifically, at a meeting held on February 22, 2007, the Independent Board
Members, meeting in executive session with Fund counsel, reviewed the written
and oral information that had been made available, and considered the factors
and reached the conclusions described below relating to the selection of the
Adviser and the re-approval of the Advisory Agreement.
1. NATURE, EXTENT, AND QUALITY OF SERVICES. The Independent Board Members
considered the nature, quality, and extent of administrative and shareholder
services performed by the Adviser, including portfolio management, supervision
of Fund operations and compliance and regulatory filings and disclosures to
shareholders, general oversight of other service providers, coordination of Fund
marketing initiatives, review of Fund legal issues, assisting the Independent
Board Members in their capacity as directors, and other services. The
Independent Board Members concluded that the services are extensive in nature
and that the Adviser consistently delivered a high level of service.
2. INVESTMENT PERFORMANCE OF THE FUND AND ADVISER. The Independent Board Members
considered investment performance for the Fund over various periods of time as
compared to the performance of such Fund's Lipper, Inc. peer group, and
concluded that the Adviser was delivering satisfactory performance results over
the long term consistent with the long-term investment strategies being pursued
by the Fund.
3. COSTS OF SERVICES AND PROFITS REALIZED BY THE ADVISER.
(A) COSTS OF SERVICES TO FUND: FEES AND EXPENSES. The Independent Board Members
considered the Fund's management fee rate and expense ratio relative to industry
averages for the Fund's peer group category and the advisory fees charged by the
Adviser and its affiliates to other fund and non-fund clients. The Independent
Board Members noted that the mix of services under the Agreement are much more
extensive than those under the advisory agreements for non-fund clients.
(B) PROFITABILITY AND COSTS OF SERVICES TO ADVISER. The Independent Board
Members considered the Adviser's overall profitability and costs and pro forma
estimates of the Adviser's profitability and costs attributable to the Fund (i)
as part of the Gabelli fund complex and (ii) assuming the Fund constituted the
Adviser's only investment company under its management. The Independent Board
Members also considered whether the amount of profit is a fair entrepreneurial
profit for the management of the Fund and noted that the Adviser has
substantially increased its resources devoted to Fund matters in response to
recently enacted regulatory requirements and new or enhanced Fund policies and
procedures. The Independent Board Members concluded that the Adviser's
profitability was at an acceptable level, particularly in light of the high
quality of the services being provided to the Fund.
16
4. EXTENT OF ECONOMIES OF SCALE AS FUND GROWS. The Independent Board Members
considered whether there have been economies of scale with respect to the
management of the Fund and whether the Fund has appropriately benefited from any
economies of scale. The Independent Board Members noted that economies of scale
may develop for certain funds as their assets increase and their fund level
expenses decline as a percentage of assets, but that fund level economies of
scale may not necessarily result in Adviser level economies of scale.
5. WHETHER FEE LEVELS REFLECT ECONOMIES OF SCALE. The Independent Board Members
also considered whether the advisory fee rate is reasonable in relation to the
asset size of the Fund and any economies of scale that may exist and concluded
that it currently was reasonable.
6. OTHER RELEVANT CONSIDERATIONS.
(A) ADVISER PERSONNEL AND METHODS. The Independent Board Members considered the
size, education, and experience of the Adviser's staff, the Adviser's
fundamental research capabilities and the Adviser's approach to recruiting,
training, and retaining portfolio managers and other research and management
personnel, and concluded that in each of these areas the Adviser was structured
in such a way to support the high level of services being provided to the Fund.
(B) OTHER BENEFITS TO THE ADVISER. The Independent Board Members also considered
the character and amount of other incidental benefits received by the Adviser
and its affiliates from its association with the Fund. The Independent Board
Members concluded that potential "fall-out" benefits that the Adviser and its
affiliates may receive, such as greater name recognition or increased ability to
obtain research services, appear to be reasonable, and may in some cases benefit
the Fund.
CONCLUSIONS. In considering the Advisory Agreement, the Independent Board
Members did not identify any factor as all-important or all-controlling and
instead considered these factors collectively in light of the Fund's surrounding
circumstances. Based on this review, it was the judgment of the Independent
Board Members that shareholders had received satisfactory absolute and relative
performance at reasonable fees and, therefore, re-approval of the Advisory
Agreement was in the best interests of the Fund and its shareholders. As a part
of its decision making process, the Independent Board Members noted that the
Adviser has managed the Fund since its inception, and the Independent Board
Members believe that a long-term relationship with a capable, conscientious
adviser is in the best interests of the Fund. The Independent Board Members
considered, generally, that shareholders invested in the Fund knowing that the
Adviser managed the Fund and knowing its investment advisory fee schedule. As
such, the Independent Board Members considered, in particular, whether the
Adviser managed the Fund in accordance with its investment objectives and
policies as disclosed to shareholders. The Independent Board Members concluded
that the Fund was managed by the Adviser consistent with its investment
objectives and policies.
17
- --------------------------------------------------------------------------------
GABELLI/GAMCO FUNDS AND YOUR PERSONAL PRIVACY
================================================================================
WHO ARE WE?
The Gabelli/GAMCO Funds are investment companies registered with the
Securities and Exchange Commission under the Investment Company Act of
1940. We are managed by Gabelli Funds, LLC and Gabelli Advisers, Inc.,
which are affiliated with GAMCO Investors, Inc. GAMCO Investors, Inc. is a
publicly held company that has subsidiaries that provide investment
advisory or brokerage services for a variety of clients.
WHAT KIND OF NON-PUBLIC INFORMATION DO WE COLLECT ABOUT YOU IF YOU BECOME A
SHAREHOLDER?
If you apply to open an account directly with us, you will be giving us
some non-public information about yourself. The non-public information we
collect about you is:
o INFORMATION YOU GIVE US ON YOUR APPLICATION FORM. This could include
your name, address, telephone number, social security number, bank
account number, and other information.
o INFORMATION ABOUT YOUR TRANSACTIONS WITH US, ANY TRANSACTIONS WITH OUR
AFFILIATES, AND TRANSACTIONS WITH THE ENTITIES WE HIRE TO PROVIDE
SERVICES TO YOU. This would include information about the shares that
you buy or redeem. If we hire someone else to provide services--like a
transfer agent--we will also have information about the transactions
that you conduct through them.
WHAT INFORMATION DO WE DISCLOSE AND TO WHOM DO WE DISCLOSE IT?
We do not disclose any non-public personal information about our customers
or former customers to anyone other than our affiliates, our service
providers who need to know such information, and as otherwise permitted by
law. If you want to find out what the law permits, you can read the privacy
rules adopted by the Securities and Exchange Commission. They are in volume
17 of the Code of Federal Regulations, Part 248. The Commission often posts
information about its regulations on its web site, www.sec.gov.
WHAT DO WE DO TO PROTECT YOUR PERSONAL INFORMATION?
We restrict access to non-public personal information about you to the
people who need to know that information in order to provide services to
you or the Fund and to ensure that we are complying with the laws governing
the securities business. We maintain physical, electronic, and procedural
safeguards to keep your personal information confidential.
- --------------------------------------------------------------------------------
GABELLI FAMILY OF FUNDS
VALUE _______________________________________
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. (MULTICLASS)
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 established companies which are temporarily out of favor. The fund's
objective is to identify a catalyst or sequence of events that will return the
company to a higher value.
(MULTICLASS) PORTFOLIO MANAGER: BARBARA MARCIN, CFA
GAMCO WESTWOOD EQUITY FUND
Seeks to invest primarily in the common stock of well seasoned companies that
have recently reported positive earnings surprises and are trading below
Westwood's proprietary growth rate estimates. The Fund's primary objective is
capital appreciation.
(MULTICLASS) PORTFOLIO MANAGER: SUSAN M. BYRNE
FOCUSED VALUE _______________________________
GABELLI VALUE FUND
Seeks to invest in securities of companies believed to be undervalued. The
Fund's primary objective is long-term capital appreciation. (MULTICLASS)
PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
SMALL CAP VALUE _____________________________
GABELLI SMALL CAP FUND
Seeks to invest primarily in common stock of smaller companies (market
capitalizations at the time of investment of $2 billion or less) believed to
have rapid revenue and earnings growth potential. The Fund's primary objective
is capital appreciation.
(MULTICLASS) PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GAMCO WESTWOOD SMALLCAP EQUITY FUND
Seeks to invest primarily in smaller capitalization equity securities - market
caps of $2.5 billion or less. The Fund's primary objective is long-term capital
appreciation. (MULTICLASS) PORTFOLIO MANAGER: ELIZABETH M. LILLY, CFA
GABELLI WOODLAND SMALL CAP VALUE FUND
Seeks to invest primarily in the common stocks of smaller companies (market
capitalizations generally less than $3.0 billion) believed to be undervalued
with shareholder oriented management teams that are employing strategies to grow
the company's value. The Fund's primary objective is capital appreciation.
(MULTICLASS) PORTFOLIO MANAGER: ELIZABETH M. LILLY, CFA
GROWTH ______________________________________
GAMCO 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. (MULTICLASS) PORTFOLIO MANAGER: HOWARD F. WARD, CFA
GAMCO 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. (MULTICLASS) PORTFOLIO MANAGER: CAESAR BRYAN
AGGRESSIVE GROWTH ___________________________
GAMCO 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. (MULTICLASS) TEAM MANAGED
MICRO-CAP ___________________________________
GAMCO WESTWOOD MIGHTY MITES(SM) 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.
(MULTICLASS) TEAM MANAGED
EQUITY INCOME _______________________________
GABELLI EQUITY INCOME FUND
Seeks to invest primarily in equity securities with above average market yields.
The Fund pays monthly dividends and seeks a high level of total return with an
emphasis on income. (MULTICLASS) PORTFOLIO MANAGER: MARIO J. GABELLI, CFA
GAMCO 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.
(MULTICLASS) CO-PORTFOLIO MANAGERS: SUSAN M. BYRNE
MARK FREEMAN, CFA
GAMCO WESTWOOD INCOME FUND
Seeks to provide a high level of current income as well as long-term capital
appreciation by investing in income producing equity and fixed income
securities. (MULTICLASS) PORTFOLIO MANAGER: BARBARA MARCIN, CFA
SPECIALTY EQUITY ____________________________
GAMCO 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. (MULTICLASS) TEAM MANAGED
GAMCO 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.
(MULTICLASS) TEAM MANAGED
GABELLI SRI FUND
Seeks to invest in common and preferred stocks of companies that meet the Fund's
guidelines for social responsibility at the time of investment, looking to avoid
companies in tobacco, alcohol, and gaming, defense/weapons contractors, and
manufacturers of abortifacients. The Fund's primary objective is capital
appreciation. (MULTICLASS) PORTFOLIO MANAGER: CHRISTOPHER C. DESMARAIS
SECTOR ______________________________________
GAMCO 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. (MULTICLASS) TEAM MANAGED
GAMCO 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 worldwide economic, financial, and political factors. (MULTICLASS)
PORTFOLIO MANAGER: CAESAR BRYAN
GABELLI UTILITIES FUND
Seeks to provide a high level of total return through a combination of capital
appreciation and current income. (MULTICLASS) TEAM MANAGED
MERGER AND ARBITRAGE ________________________
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
CONTRARIAN __________________________________
GAMCO 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
COMSTOCK CAPITAL VALUE FUND
Seeks capital appreciation and current income. The Fund may use either long or
short positions to achieve its objective.
(MULTICLASS) PORTFOLIO MANAGER: MARTIN WEINER, CFA
COMSTOCK STRATEGY FUND
The Fund emphasizes investments in debt securities, which maximize total return
in light of credit risk, interest rate risk, and the risk associated with the
length of maturity of debt instruments. (MULTICLASS)
PORTFOLIO MANAGER: MARTIN WEINER, CFA
FIXED INCOME ________________________________
GAMCO WESTWOOD INTERMEDIATE BOND FUND
Seeks to invest in a diversified portfolio of bonds with various maturities. The
Fund's primary objective is total return.
(MULTICLASS) PORTFOLIO MANAGER: MARK FREEMAN, CFA
CASH MANAGEMENT-MONEY MARKET ________________
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
AN INVESTMENT IN THE ABOVE MONEY MARKET FUND IS NEITHER INSURED NOR GUARANTEED
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY GOVERNMENT AGENCY. ALTHOUGH
THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT
IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
THE FUNDS MAY INVEST IN FOREIGN SECURITIES WHICH INVOLVE RISKS NOT ORDINARILY
ASSOCIATED WITH INVESTMENTS IN DOMESTIC ISSUES, INCLUDING CURRENCY FLUCTUATION,
ECONOMIC, AND POLITICAL RISKS.
TO RECEIVE A PROSPECTUS, CALL 800-GABELLI (422-3554). INVESTORS SHOULD CAREFULLY
CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES, AND EXPENSES OF THE FUND
BEFORE INVESTING. THE PROSPECTUS CONTAINS MORE INFORMATION
ABOUT THIS AND OTHER MATTERS AND SHOULD BE READ CAREFULLY BEFORE INVESTING.
THE GABELLI VALUE FUND INC.
One Corporate Center
Rye, New York 10580-1422
800-GABELLI
800-422-3554
FAX: 914-921-5118
WEBSITE: WWW.GABELLI.COM
E-MAIL: INFO@GABELLI.COM
Net Asset Value per share available daily by calling
800-GABELLI after 6:00 P.M.
BOARD OF DIRECTORS
Mario J. Gabelli, CFA Anthony R. Pustorino
CHAIRMAN AND CHIEF CERTIFIED PUBLIC ACCOUNTANT,
EXECUTIVE OFFICER PROFESSOR EMERITUS
GAMCO INVESTORS, INC. PACE UNIVERSITY
Anthony J. Colavita Werner J. Roeder, MD
ATTORNEY-AT-LAW MEDICAL DIRECTOR
ANTHONY J. COLAVITA, P.C. LAWRENCE HOSPITAL
Robert J. Morrissey
ATTORNEY-AT-LAW
MORRISSEY, HAWKINS & LYNCH
OFFICERS
Bruce N. Alpert James E. McKee
PRESIDENT SECRETARY
Agnes Mullady Peter D. Goldstein
TREASURER CHIEF COMPLIANCE OFFICER
CUSTODIAN
Bank of New York Mellon
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT
State Street Bank and Trust Company
LEGAL COUNSEL
Willkie Farr & Gallagher LLP
DISTRIBUTOR
Gabelli & Company, Inc.
- --------------------------------------------------------------------------------
This report is submitted for the general information of the shareholders of The
Gabelli Value Fund Inc. It is not authorized for distribution to prospective
investors unless preceded or accompanied by an effective prospectus.
- --------------------------------------------------------------------------------
GAB409Q207SR
THE
GABELLI
VALUE
FUND
INC.
[GRAPHIC OMITTED] E P
Gabelli Triangle P M
MANAGEMENT S V
CASH FLOW
RESEARCH
SEMI-ANNUAL REPORT
JUNE 30, 2007
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Schedule of Investments in securities of unaffiliated issuers as of the close of
the reporting period is included as part of the report to shareholders filed
under Item 1 of this form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which the shareholders
may recommend nominees to the registrant's Board of Directors, where those
changes were implemented after the registrant last provided disclosure in
response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR
229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)),
or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of the report that includes the disclosure
required by this paragraph, based on their evaluation of these
controls and procedures required by Rule 30a-3(b) under the 1940 Act
(17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the
Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or
240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the registrant's second
fiscal quarter of the period covered by this report that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Not applicable.
(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and
Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and
Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) The Gabelli Value Fund Inc.
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By (Signature and Title)* /s/ Bruce N. Alpert
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Bruce N. Alpert, Principal Executive Officer
Date August 31, 2007
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Bruce N. Alpert
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Bruce N. Alpert, Principal Executive Officer
Date August 31, 2007
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By (Signature and Title)* /s/ Agnes Mullady
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Agnes Mullady, Principal Financial Officer
& Treasurer
Date August 31, 2007
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* Print the name and title of each signing officer under his or her signature.