INVESTMENT SCORECARD
By far the largest contributor to returns for the quarter was Swedish Match (OSTO:SWMA, Financial) (2.7% of net assets as of June 30, 2022, +35%) which agreed to an acquisition by Philip Morris International (PM, Financial) for SEK 106 per share in cash. The deal marks the realization of our long-held thesis that a global cigarette firm would bolster their smokeless tobacco offerings via market leader ZYN, owned by Swedish Match. We expect the deal to close in late 2022. Other consumer staples companies such as Post Holdings (POST, Financial) (0.3%, +19%), General Mills (GIS, Financial) (0.3%, +12%) and Yakult Honsha (TSE:2267, Financial) (0.4%, +7%) and pharmaceuticals firms including Merck & Co (MRK, Financial) (0.3%, +12%) and Bristol-Myers Squibb (BMY, Financial) (0.4%, +6%) added ballast during a choppy quarter. Advertising-driven and consumer oriented companies including Warner Brothers Discovery (WBD, Financial) (0.4%, -45%), Madison Square Garden Entertainment (MSGE, Financial) (0.7%, -37%), Paramount Global (0.6%, -32%) and American Express (AXP, Financial) (1.4%, -25%) were more challenged. The late quarter swoon in commodities hit agricultural equipment manufacturers Deere & Co. (DE, Financial) (3.0%, -28%) and CNH Industrial (CNHI, Financial) (1.1%, -25%) as well as gold miner Newmont Corp. (NEM, Financial) (1.6%, -24%).
COMPARATIVE RESULTS
Average Annual Returns through June 30, 2022 (a)
Total returns and average annual returns reflect changes in share price, reinvestment of distributions, and are net of expenses.
Performance returns for periods of less than one year are not annualized.
| Gabelli Asset Fund | QTR |
| Class I (GABIX) (b) | (13.79)% |
| S&P 500 Index (c) | (16.10) |
- Other classes of shares are available, with different 800-GABELLI.
| 1 Year | 5 Year | 10 Year | 15 Year | Since Inception | |
| (03/03/86) | |||||
| (13.45)% | 6.70% | 9.36% | 6.68% | 11.20% | |
| (10.62) | 11.31 | 12.96 | 8.54 | 10.48 | |
| characteristics. | For additional | information | please contact | your financial advisor or call |
- Returns would have been lower had Gabelli Funds, LLC (the Adviser) not reimbursed certain expenses of the Fund for periods prior to December 31, 1988. The Class AAA Share NAVs are used to calculate performance for the period prior to the issuance of Class I Shares on January 11, 2008. The actual performance of the Class I Shares would have been higher due to lower expenses related to this class of shares. The Fund imposes a 2% redemption fee on shares sold or exchanged within seven days of purchase.
- The S&P 500 Index is a market capitalization weighted index of 500 large capitalization stocks commonly used to represent the U.S. equity market. Dividends are considered reinvested. You cannot invest directly in an index. S&P 500 Index since inception performance is as of February 28, 1986.
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. 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.
LET’S TALK STOCKS
Liberty Braves Group (BATRA, Financial) (0.2% of net assets as of June 30, 2022) (BATRA -$25.15 – NASDAQ), is a tracking stock whose primary assets are theAtlanta Braves baseball club and the mixed-use real estate development known as “The Battery” surrounding Truist Park. The Braves, founded in 1871, are the oldest continuously operating professional sports franchise in U.S. with fans across the Southeastern U.S. The team has recently reclaimed much of its prior success and are reigning 2021 World Champions. Long term, team values should be supported by growing media revenue and the growth of recently legalized sports betting.
Paramount Global (PARA, Financial) (0.7%) (VI – $27.26 – NASDAQ) is the product of the December 2019 recombination of Viacom and CBS,two companies controlled by the family of the late Sumner Redstone. Paramount (formerly ViacomCBS) is a globally-scaled content company with networks including CBS, Showtime, Nickelodeon, MTV, Comedy Central, VH1, BET, thirty television stations and the Paramount movie studio. The company has used its increased scale to better navigate the shifts in consumer behavior and monetization primarily through the successful launch of its Paramount+ direct-to-consumer platform.
When discussing specific stocks in the portfolios of the Funds, favorable earnings prospects do not necessarily translate into higher stock prices, but they do express a positive trend that we believe will develop over time. Individual securities mentioned are not necessarily representative of a Fund’s entire portfolio. For the holdings discussed, the percentage of the Fund’s net assets and their share prices stated in U.S. dollar equivalent terms are presented as of June 30, 2022.
