N-Q 1 g06968nvq.htm FORM N-Q nvq
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-04494
The Gabelli Asset Fund
 
(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
 
(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
 
(Name and address of agent for service)
Registrant’s telephone number, including area code: 1-800-422-3554
Date of fiscal year end: December 31
Date of reporting period: September 30, 2010
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q 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 the 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. § 3507.
 
 

 


 

Item 1. Schedule of Investments.
The Schedule(s) of Investments is attached herewith.
         
 
(THE GABELLI ASSET FUND LOGO)
Morningstar® rated The Gabelli Asset Fund Class AAA Shares 5 stars overall and 5 stars for the five and ten year periods and 4 stars for the three year period ended September 30, 2010 among 1,723, 1,422, 761, and 1,723 Large Blend funds, respectively.
       
-s- Mario Gabelli
Mario Gabelli, CFA    
  -s- Kevin Dreyer
Kevin Dreyer
 
To Our Shareholders,
     During the third quarter of 2010, The Gabelli Asset Fund’s (the “Fund”) (Class AAA) total return was 13.4% compared with the Standard & Poor’s (“S&P”) 500 Index of 11.3%.
     Enclosed is the portfolio of investments as of September 30, 2010.
Comparative Results
Average Annual Returns through September 30, 2010 (a) (Unaudited)
                                                                         
                                                                    Since
            Year to                                                   Inception
    Quarter   Date   1 Year   3 Year   5 Year   10 Year   15 Year   20 Year   (3/3/86)
Gabelli Asset Fund Class AAA
    13.44 %     10.22 %     16.53 %     (3.94 )%     4.18 %     5.25 %     9.16 %     10.05 %     12.01 %
S&P 500 Index
    11.30       3.91       10.18       (7.15 )     0.64       (0.43 )     6.45       9.05       9.31  
Class A
    13.46       10.22       16.53       (3.93 )     4.18       5.25       9.16       10.04       12.01  
 
    6.93 (b)     3.88 (b)     9.83 (b)     (5.81 )(b)     2.96 (b)     4.63 (b)     8.73 (b)     9.72 (b)     11.73 (b)
Class B
    9.61       9.61       15.65       (4.69 )     3.37       4.71       8.80       9.77       11.78  
 
    8.23 (c)     4.61 (c)     10.65 (c)     (5.65 )(c)     3.02 (c)     4.71       8.80       9.77       11.78  
Class C
    13.24       9.61       15.65       (4.63 )     3.41       4.73       8.81       9.78       11.79  
 
    12.24 (d)     8.61 (d)     14.65 (d)     (4.63 )     3.41       4.73       8.81       9.78       11.79  
Class I
    13.54       10.43       16.84       (3.71 )     4.32       5.32       9.21       10.08       12.05  
In the current prospectus, the expense ratios for Class AAA, A, B, C, and I Shares are 1.40%, 1.40%, 2.15%, 2.15%, and 1.15%, respectively. Class AAA and Class I Shares do not have a sales charge. 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, 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. Current performance may be lower or higher than the performance data presented. Performance returns for periods of less than one year are not annualized. 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 information about this and other matters and should be read carefully before investing. The S&P 500 Index is unmanaged indicator of stock market performance. Dividends are considered reinvested. You cannot invest directly in an index. The Class AAA Shares net asset values (“NAV”) per share are used to calculate performance for the periods prior to the issuance of Class A Shares, Class B Shares, and Class C Shares on December 31, 2003 and Class I Shares on January 11, 2008. The actual performance of the Class B Shares and Class C Shares would have been lower due to the additional expenses associated with these classes of shares. The actual performance of the Class I Shares would have been higher due to lower expenses related to this class of shares.
 
(b)   Performance results include the effect of the maximum 5.75% sales charge at the beginning of the period.
 
(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 per share 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 per share at the time of purchase or sale, whichever is lower.

 


 

The Gabelli Asset Fund
Schedule of Investments — September 30, 2010 (Unaudited)
                 
            Market  
Shares         Value  
       
COMMON STOCKS — 99.5%
       
       
Aerospace — 1.3%
       
  110,000    
Herley Industries Inc.†
  $ 1,815,000  
  5,000    
Lockheed Martin Corp.
    356,400  
  15,000    
Northrop Grumman Corp.
    909,450  
  2,100,000    
Rolls-Royce Group plc†
    19,908,725  
  95,000    
The Boeing Co.
    6,321,300  
       
 
     
       
 
    29,310,875  
       
 
     
       
Agriculture — 1.0%
       
  490,000    
Archer-Daniels-Midland Co.
    15,640,800  
  89,058    
Monsanto Co.
    4,268,549  
  3,000    
Potash Corp. of Saskatchewan Inc.
    432,120  
  29,000    
The Mosaic Co.
    1,704,040  
       
 
     
       
 
    22,045,509  
       
 
     
       
Automotive — 1.1%
       
  210,000    
Ford Motor Co.†
    2,570,400  
  409,000    
Navistar International Corp.†
    17,848,760  
  101,250    
PACCAR Inc.
    4,875,187  
  3,400    
Volkswagen AG
    374,652  
       
 
     
       
 
    25,668,999  
       
 
     
       
Automotive: Parts and Accessories — 3.4%
       
  195,000    
BorgWarner Inc.†
    10,260,900  
  230,000    
CLARCOR Inc.
    8,884,900  
  340,000    
Dana Holding Corp.†
    4,188,800  
  40,000    
Federal-Mogul Corp.†
    756,400  
  480,000    
Genuine Parts Co.
    21,403,200  
  394,000    
Johnson Controls Inc.
    12,017,000  
  174,000    
Midas Inc.†
    1,324,140  
  159,000    
Modine Manufacturing Co.†
    2,062,230  
  190,000    
O’Reilly Automotive Inc.†
    10,108,000  
  260,000    
Standard Motor Products Inc.
    2,737,800  
  140,000    
Superior Industries International Inc.
    2,419,200  
  50,000    
Tenneco Inc.†
    1,448,500  
       
 
     
       
 
    77,611,070  
       
 
     
       
Aviation: Parts and Services — 2.7%
       
  1,100,000    
BBA Aviation plc
    3,255,521  
  480,000    
Curtiss-Wright Corp.
    14,544,000  
  600,000    
GenCorp Inc.†
    2,952,000  
  110,000    
Kaman Corp.
    2,883,100  
  297,500    
Precision Castparts Corp.
    37,886,625  
       
 
     
       
 
    61,521,246  
       
 
     
       
Broadcasting — 1.4%
       
  324,000    
CBS Corp., Cl. A, Voting
    5,151,600  
  20,000    
Cogeco Inc.
    612,304  
  26,666    
Corus Entertainment Inc., Cl. B, New York
    557,053  
  13,334    
Corus Entertainment Inc., Cl. B, Toronto
    279,925  
  112,000    
Fisher Communications Inc.†
    1,952,160  
  843    
Granite Broadcasting Corp.† (a)
    0  
  230,000    
Liberty Media Corp. — Capital, Cl. A†
    11,973,800  
  75,000    
Liberty Media Corp. — Starz, Cl. A†
    4,866,000  
  255,000    
LIN TV Corp., Cl. A†
    1,132,200  
  12,000    
Naspers Ltd., Cl. N
    586,722  
  400,000    
Television Broadcasts Ltd.
    2,283,844  
  180,000    
Tokyo Broadcasting System Holdings Inc.
    2,315,764  
       
 
     
       
 
    31,711,372  
       
 
     
       
Business Services — 1.5%
       
  28,000    
ACCO Brands Corp.†
    161,000  
  37,450    
Ascent Media Corp., Cl. A†
    1,000,289  
  120,000    
Clear Channel Outdoor Holdings Inc., Cl. A†
    1,371,600  
  190,000    
Ecolab Inc.
    9,640,600  
  64,000    
Landauer Inc.
    4,008,320  
  29,487    
Live Nation Entertainment Inc.†
    291,332  
  27,000    
MasterCard Inc., Cl. A
    6,048,000  
  100,000    
Monster Worldwide Inc.†
    1,296,000  
  20,000    
The Brink’s Co.
    460,000  
  835,000    
The Interpublic Group of Companies Inc.†
    8,375,050  
  18,000    
Visa Inc., Cl. A
    1,336,680  
       
 
     
       
 
    33,988,871  
       
 
     
       
Cable and Satellite — 7.9%
       
  1,890,000    
Cablevision Systems Corp., Cl. A
    49,499,100  
  160,000    
Comcast Corp., Cl. A
    2,892,800  
  50,000    
Comcast Corp., Cl. A, Special
    850,500  
  1,060,002    
DIRECTV, Cl. A†
    44,127,883  
  215,000    
DISH Network Corp., Cl. A
    4,119,400  
  40,000    
EchoStar Corp., Cl. A†
    763,200  
  1,000    
Jupiter Telecommunications Co. Ltd.
    1,078,103  
  320,096    
Liberty Global Inc., Cl. A†
    9,862,158  
  260,000    
Liberty Global Inc., Cl. C†
    7,945,600  
  1,095,000    
Rogers Communications Inc., Cl. B, New York
    40,985,850  
  50,000    
Rogers Communications Inc., Cl. B, Toronto
    1,871,416  
  225,000    
Scripps Networks Interactive Inc., Cl. A
    10,705,500  
  120,000    
Shaw Communications Inc., Cl. B
    2,642,822  
  150,000    
Shaw Communications Inc., Cl. B, Non-Voting
    3,301,500  
  60,000    
Time Warner Cable Inc.
    3,239,400  
       
 
     
       
 
    183,885,232  
       
 
     
       
Closed-End Funds — 0.0%
       
  79,920    
Royce Value Trust Inc.†
    970,229  
       
 
     
       
Commercial Services — 0.0%
       
  15,000    
Edenred†
    297,121  
       
 
     
       
Communications Equipment — 1.2%
       
  540,000    
Corning Inc.
    9,871,200  
  150,000    
Motorola Inc.†
    1,279,500  
  390,000    
Thomas & Betts Corp.†
    15,997,800  
       
 
     
       
 
    27,148,500  
       
 
     
See accompanying notes to schedule of investments.

2


 

The Gabelli Asset Fund
Schedule of Investments (Continued) — September 30, 2010 (Unaudited)
                 
            Market  
Shares         Value  
       
COMMON STOCKS (Continued)
       
       
Computer Hardware — 0.0%
       
  5,000    
Wincor Nixdorf AG
  $ 325,988  
       
 
     
       
Computer Software and Services — 1.0%
       
  110,001    
AOL Inc.†
    2,722,525  
  210,000    
Diebold Inc.
    6,528,900  
  65,250    
Fidelity National Information Services Inc.
    1,770,232  
  100,000    
NCR Corp.†
    1,363,000  
  118,000    
Rockwell Automation Inc.
    7,284,140  
  265,000    
Yahoo! Inc.†
    3,755,050  
       
 
     
       
 
    23,423,847  
       
 
     
       
Consumer Products — 5.3%
       
  49,000    
Alberto-Culver Co.
    1,844,850  
  35,000    
Altria Group Inc.
    840,700  
  11,000    
Christian Dior SA
    1,437,795  
  241,000    
Church & Dwight Co. Inc.
    15,650,540  
  26,000    
Clorox Co.
    1,735,760  
  340,000    
Eastman Kodak Co.†
    1,428,000  
  265,000    
Energizer Holdings Inc.†
    17,815,950  
  128,000    
Fortune Brands Inc.
    6,301,440  
  3,400    
Givaudan SA
    3,473,872  
  35,000    
Harley-Davidson Inc.
    995,400  
  70,000    
Kimberly-Clark Corp.
    4,553,500  
  24,000    
Mattel Inc.
    563,040  
  25,700    
National Presto Industries Inc.
    2,736,279  
  25,000    
Philip Morris International Inc.
    1,400,500  
  50,000    
Reckitt Benckiser Group plc
    2,749,850  
  125,000    
Sally Beauty Holdings Inc.†
    1,400,000  
  50,000    
Svenska Cellulosa AB, Cl. B
    760,346  
  1,070,000    
Swedish Match AB
    28,542,435  
  10,000    
Syratech Corp.†
    253  
  435,000    
The Procter & Gamble Co.
    26,086,950  
  35,000    
Wolverine World Wide Inc.
    1,015,350  
       
 
     
       
 
    121,332,810  
       
 
     
       
Consumer Services — 1.1%
       
  175,000    
IAC/InterActiveCorp.†
    4,597,250  
  430,000    
Liberty Media Corp. — Interactive, Cl. A†
    5,895,300  
  645,000    
Rollins Inc.
    15,080,100  
       
 
     
       
 
    25,572,650  
       
 
     
       
Diversified Industrial — 5.8%
       
  13,000    
Acuity Brands Inc.
    575,120  
  5,000    
Anixter International Inc.†
    269,950  
  75,403    
Contax Participacoes SA, ADR
    236,765  
  420,000    
Cooper Industries plc
    20,550,600  
  410,100    
Crane Co.
    15,559,194  
  110,000    
Gardner Denver Inc.
    5,904,800  
  123,224    
Greif Inc., Cl. A
    7,250,500  
  263,343    
Greif Inc., Cl. B
    15,115,888  
  435,000    
Honeywell International Inc.
    19,113,900  
  25,000    
Ingersoll-Rand plc
    892,750  
  575,000    
ITT Corp.
    26,927,250  
  95,000    
Jardine Strategic Holdings Ltd.
    2,546,000  
  233,000    
Katy Industries Inc.†
    186,400  
  300,000    
Magnetek Inc.†
    396,000  
  240,000    
Myers Industries Inc.
    2,061,600  
  52,000    
Pentair Inc.
    1,748,760  
  53,333    
Smiths Group plc
    1,021,284  
  30,000    
Sulzer AG
    3,480,385  
  160,000    
Textron Inc.
    3,289,600  
  110,000    
Trinity Industries Inc.
    2,449,700  
  115,000    
Tyco International Ltd.
    4,223,950  
       
 
     
       
 
    133,800,396  
       
 
     
       
Electronics — 1.3%
       
  9,000    
Chemring Group plc
    424,990  
  110,000    
Intel Corp.
    2,115,300  
  9,500    
Kyocera Corp., ADR
    904,495  
  375,000    
LSI Corp.†
    1,710,000  
  24,000    
Molex Inc., Cl. A
    419,520  
  40,700    
Samsung Electronics Co. Ltd., GDR
    13,960,100  
  50,000    
Sony Corp., ADR
    1,546,000  
  245,000    
Texas Instruments Inc.
    6,649,300  
  80,000    
Tyco Electronics Ltd.
    2,337,600  
       
 
     
       
 
    30,067,305  
       
 
     
       
Energy and Utilities — 7.9%
       
  15,000    
AGL Resources Inc.
    575,400  
  130,000    
Allegheny Energy Inc.
    3,187,600  
  11,000    
Anadarko Petroleum Corp.
    627,550  
  200,000    
BP plc, ADR
    8,234,000  
  26,700    
CH Energy Group Inc.
    1,179,072  
  324,000    
Chevron Corp.
    26,260,200  
  350,000    
ConocoPhillips
    20,100,500  
  100,000    
CONSOL Energy Inc.
    3,696,000  
  25,000    
Constellation Energy Group Inc.
    806,000  
  122,000    
Devon Energy Corp.
    7,898,280  
  5,000    
Diamond Offshore Drilling Inc.
    338,850  
  25,000    
DPL Inc.
    653,250  
  90,000    
Duke Energy Corp.
    1,593,900  
  20,000    
Edison International
    687,800  
  500,000    
El Paso Corp.
    6,190,000  
  240,000    
El Paso Electric Co.†
    5,707,200  
  95,000    
EOG Resources Inc.
    8,832,150  
  319,000    
Exxon Mobil Corp.
    19,711,010  
  90,000    
Great Plains Energy Inc.
    1,701,000  
  210,000    
Halliburton Co.
    6,944,700  
  130,000    
Mirant Corp., Escrow† (a)
    0  
  200,000    
National Fuel Gas Co.
    10,362,000  
  30,000    
NextEra Energy Inc.
    1,631,700  
  10,000    
NiSource Inc.
    174,000  
  175,000    
Northeast Utilities
    5,174,750  
  30,000    
NSTAR
    1,180,500  
See accompanying notes to schedule of investments.

3


 

The Gabelli Asset Fund
Schedule of Investments (Continued) — September 30, 2010 (Unaudited)
                 
            Market  
Shares         Value  
       
COMMON STOCKS (Continued)
       
       
Energy and Utilities (Continued)
       
  12,000    
Occidental Petroleum Corp.
  $ 939,600  
  45,000    
Oceaneering International Inc.†
    2,423,700  
  55,000    
Petroleo Brasileiro SA, ADR
    1,994,850  
  100,000    
Progress Energy Inc., CVO†
    15,000  
  235,000    
Rowan Companies Inc.†
    7,134,600  
  48,000    
Royal Dutch Shell plc, Cl. A, ADR
    2,894,400  
  129,100    
SJW Corp.
    3,179,733  
  255,000    
Southwest Gas Corp.
    8,565,450  
  245,000    
Spectra Energy Corp.
    5,524,750  
  100,000    
The AES Corp.†
    1,135,000  
  52,000    
Transocean Ltd.†
    3,343,080  
  185,000    
Weatherford International Ltd.†
    3,163,500  
       
 
     
       
 
    183,761,075  
       
 
     
       
Entertainment — 4.7%
       
  8,010    
Chestnut Hill Ventures† (a)
    364,856  
  360,000    
Discovery Communications Inc., Cl. A†
    15,678,000  
  335,000    
Discovery Communications Inc., Cl. C†
    12,793,650  
  34,000    
DreamWorks Animation SKG Inc., Cl. A†
    1,084,940  
  750,000    
Grupo Televisa SA, ADR
    14,190,000  
  477,500    
Madison Square Garden Inc., Cl. A†
    10,065,700  
  1,600    
Nintendo Co. Ltd.
    399,808  
  80,000    
Rank Group plc
    147,287  
  20,000    
Regal Entertainment Group, Cl. A
    262,400  
  525,001    
Time Warner Inc.
    16,091,281  
  515,000    
Viacom Inc., Cl. A
    20,646,350  
  10,000    
Viacom Inc., Cl. B
    361,900  
  545,000    
Vivendi
    14,896,597  
  46,000    
World Wrestling Entertainment Inc., Cl. A
    639,860  
       
 
     
       
 
    107,622,629  
       
 
     
       
Environmental Services — 1.5%
       
  555,000    
Republic Services Inc.
    16,921,950  
  500,000    
Waste Management Inc.
    17,870,000  
       
 
     
       
 
    34,791,950  
       
 
     
       
Equipment and Supplies — 6.8%
       
  665,000    
AMETEK Inc.
    31,767,050  
  6,000    
Amphenol Corp., Cl. A
    293,880  
  100,000    
CIRCOR International Inc.
    3,160,000  
  145,000    
Crown Holdings Inc.†
    4,155,700  
  175,000    
CTS Corp.
    1,683,500  
  8,000    
Danaher Corp.
    324,880  
  390,000    
Donaldson Co. Inc.
    18,380,700  
  247,000    
Flowserve Corp.
    27,026,740  
  190,000    
Gerber Scientific Inc.†
    1,172,300  
  235,000    
GrafTech International Ltd.†
    3,673,050  
  762,000    
IDEX Corp.
    27,058,620  
  150,000    
Interpump Group SpA†
    938,599  
  392,000    
Lufkin Industries Inc.
    17,208,800  
  70,000    
Met-Pro Corp.
    706,300  
  20,000    
Sealed Air Corp.
    449,600  
  2,000    
SL Industries Inc.†
    28,180  
  104,000    
Tenaris SA, ADR
    3,995,680  
  100,000    
The Manitowoc Co. Inc.
    1,211,000  
  100,000    
The Weir Group plc
    2,235,382  
  29,000    
Valmont Industries Inc.
    2,099,600  
  350,000    
Watts Water Technologies Inc., Cl. A
    11,917,500  
       
 
     
       
 
    159,487,061  
       
 
     
       
Financial Services — 6.6%
       
  15,700    
Alleghany Corp.†
    4,757,571  
  25,000    
AllianceBernstein Holding LP
    660,250  
  440,000    
American Express Co.
    18,493,200  
  30,000    
AmeriCredit Corp.†
    733,800  
  15,000    
Ameriprise Financial Inc.
    709,950  
  32,000    
Argo Group International Holdings Ltd.
    1,111,680  
  98,000    
Artio Global Investors Inc.
    1,499,400  
  150,000    
Bank of America Corp.
    1,966,500  
  214    
Berkshire Hathaway Inc., Cl. A†
    26,643,000  
  73,000    
BKF Capital Group Inc.†
    76,650  
  15,000    
Calamos Asset Management Inc., Cl. A
    172,500  
  400,000    
Citigroup Inc.†
    1,560,000  
  97,000    
Commerzbank AG, ADR†
    795,400  
  145,000    
Deutsche Bank AG
    7,964,850  
  27,000    
Fortress Investment Group LLC, Cl. A†
    96,930  
  110,000    
H&R Block Inc.
    1,424,500  
  18,000    
HSBC Holdings plc, ADR
    910,620  
  44,000    
Interactive Brokers Group Inc., Cl. A†
    757,240  
  330,000    
Janus Capital Group Inc.
    3,613,500  
  135,000    
JPMorgan Chase & Co.
    5,139,450  
  56,000    
Kinnevik Investment AB, Cl. A
    1,195,546  
  65,000    
Kinnevik Investment AB, Cl. B
    1,376,115  
  60,000    
KKR & Co. LP
    636,000  
  330,000    
Legg Mason Inc.
    10,002,300  
  75,000    
Leucadia National Corp.†
    1,771,500  
  60,000    
Loews Corp.
    2,274,000  
  28,000    
M&T Bank Corp.
    2,290,680  
  160,000    
Marsh & McLennan Companies Inc.
    3,859,200  
  150,000    
NewAlliance Bancshares Inc.
    1,893,000  
  45,000    
PNC Financial Services Group Inc.
    2,335,950  
  130,137    
Popular Inc.†
    377,397  
  25,000    
Royal Bank of Canada
    1,303,250  
  85,000    
State Street Corp.
    3,201,100  
  20,000    
SunTrust Banks Inc.
    516,600  
  50,000    
T. Rowe Price Group Inc.
    2,503,250  
  440,000    
The Bank of New York Mellon Corp.
    11,497,200  
  44,000    
The Blackstone Group LP
    558,360  
  10,000    
The Goldman Sachs Group Inc.
    1,445,800  
  30,000    
The Travelers Companies Inc.
    1,563,000  
  70,866    
Tree.com Inc.†
    464,172  
  19,000    
Unitrin Inc.
    463,410  
  8,500    
Value Line Inc.
    117,895  
See accompanying notes to schedule of investments.

4


 

The Gabelli Asset Fund
Schedule of Investments (Continued) — September 30, 2010 (Unaudited)
                 
            Market  
Shares         Value  
       
COMMON STOCKS (Continued)
       
       
Financial Services (Continued)
       
  195,000    
Waddell & Reed Financial Inc., Cl. A
  $ 5,335,200  
  642,000    
Wells Fargo & Co.
    16,133,460  
       
 
     
       
 
    152,201,376  
       
 
     
       
Food and Beverage — 12.5%
       
  345,000    
Brown-Forman Corp., Cl. A
    21,238,200  
  85,000    
Brown-Forman Corp., Cl. B
    5,239,400  
  130,000    
Campbell Soup Co.
    4,647,500  
  275,000    
China Mengniu Dairy Co. Ltd.
    850,642  
  80,000    
Coca-Cola Enterprises Inc.
    2,480,000  
  16,500    
Coca-Cola Hellenic Bottling Co. SA, ADR
    429,000  
  410,000    
Constellation Brands Inc., Cl. A†
    7,252,900  
  273,000    
Corn Products International Inc.
    10,237,500  
  323,000    
Danone
    19,319,499  
  560,000    
Davide Campari — Milano SpA
    3,349,511  
  135,000    
Dean Foods Co.†
    1,378,350  
  180,000    
Del Monte Foods Co.
    2,359,800  
  316,000    
Diageo plc, ADR
    21,807,160  
  2,000    
Diamond Foods Inc.
    81,980  
  170,000    
Dr. Pepper Snapple Group Inc.
    6,038,400  
  70,000    
Farmer Brothers Co.
    1,120,000  
  305,000    
Flowers Foods Inc.
    7,576,200  
  70,000    
Fomento Economico Mexicano SAB de CV, ADR
    3,551,100  
  589,000    
General Mills Inc.
    21,522,060  
  39,000    
Green Mountain Coffee Roasters Inc.†
    1,216,410  
  820,000    
Grupo Bimbo SAB de CV, Cl. A
    5,986,518  
  107,000    
H.J. Heinz Co.
    5,068,590  
  95,000    
Heineken NV
    4,926,521  
  200,000    
ITO EN Ltd.
    3,284,619  
  65,000    
Kellogg Co.
    3,283,150  
  82,000    
Kerry Group plc, Cl. A
    2,895,275  
  450,000    
Kikkoman Corp.
    4,964,662  
  275,229    
Kraft Foods Inc., Cl. A
    8,493,566  
  100,000    
Lianhua Supermarket Holdings Ltd., Cl. H
    404,055  
  32,000    
LVMH Moet Hennessy Louis Vuitton SA
    4,693,950  
  15,000    
MEIJI Holdings Co. Ltd.
    706,157  
  210,000    
Morinaga Milk Industry Co. Ltd.
    900,575  
  90,000    
Nestle’ SA
    4,794,688  
  200,000    
NISSIN FOODS HOLDINGS CO. LTD.
    7,223,287  
  10,000    
Peet’s Coffee & Tea Inc.†
    342,300  
  244,274    
PepsiCo Inc.
    16,229,565  
  93,000    
Pernod-Ricard SA
    7,765,425  
  148,000    
Ralcorp Holdings Inc.†
    8,655,040  
  86,430    
Remy Cointreau SA
    5,821,188  
  400,000    
Sara Lee Corp.
    5,372,000  
  310,000    
The Coca-Cola Co.
    18,141,200  
  32,000    
The Hain Celestial Group Inc.†
    767,360  
  70,000    
The Hershey Co.
    3,331,300  
  20,000    
The J.M. Smucker Co.
    1,210,600  
  100,000    
Tingyi (Cayman Islands) Holding Corp.
    275,814  
  160,000    
Tootsie Roll Industries Inc.
    3,980,800  
  195,000    
Tyson Foods Inc., Cl. A
    3,123,900  
  420,000    
YAKULT HONSHA Co. Ltd.
    12,970,292  
       
 
     
       
 
    287,308,009  
       
 
     
       
Health Care — 3.2%
       
  29,000    
Abbott Laboratories
    1,514,960  
  15,000    
Alere Inc.†
    463,950  
  50,000    
Allergan Inc.
    3,326,500  
  44,000    
Amgen Inc.†
    2,424,840  
  75,000    
AngioDynamics Inc.†
    1,143,000  
  10,000    
ArthroCare Corp.†
    271,800  
  60,000    
Baxter International Inc.
    2,862,600  
  8,000    
Becton, Dickinson and Co.
    592,800  
  51,000    
Biogen Idec Inc.†
    2,862,120  
  185,000    
Boston Scientific Corp.†
    1,134,050  
  170,000    
Bristol-Myers Squibb Co.
    4,608,700  
  13,500    
Cephalon Inc.†
    842,940  
  15,000    
Cepheid Inc.†
    280,650  
  67,000    
Chemed Corp.
    3,816,990  
  32,000    
CONMED Corp.†
    717,120  
  40,000    
Covidien plc
    1,607,600  
  10,000    
DENTSPLY International Inc.
    319,700  
  50,000    
Eli Lilly & Co.
    1,826,500  
  44,000    
Exactech Inc.†
    718,080  
  38,000    
Henry Schein Inc.†
    2,226,040  
  136,000    
Johnson & Johnson
    8,426,560  
  17,000    
Laboratory Corp. of America Holdings†
    1,333,310  
  80,000    
Life Technologies Corp.†
    3,735,200  
  74,000    
Mead Johnson Nutrition Co.
    4,211,340  
  71,000    
Medco Health Solutions Inc.†
    3,696,260  
  75,000    
Merck & Co. Inc.
    2,760,750  
  10,000    
Nobel Biocare Holding AG
    179,616  
  125,000    
Pain Therapeutics Inc.†
    772,500  
  62,500    
Patterson Companies Inc.
    1,790,625  
  175,000    
Pfizer Inc.
    3,004,750  
  2,000    
Stryker Corp.
    100,100  
  280,000    
Tenet Healthcare Corp.†
    1,321,600  
  50,000    
UnitedHealth Group Inc.
    1,755,500  
  88,000    
Watson Pharmaceuticals Inc.†
    3,723,280  
  34,000    
William Demant Holding A/S†
    2,508,890  
  20,000    
Wright Medical Group Inc.†
    288,200  
  3,000    
Young Innovations Inc.
    85,830  
  10,000    
Zimmer Holdings Inc.†
    523,300  
       
 
     
       
 
    73,778,551  
       
 
     
       
Hotels and Gaming — 2.2%
       
  15,000    
Accor SA
    547,721  
  18,000    
Churchill Downs Inc.
    642,960  
  355,000    
Gaylord Entertainment Co.†
    10,827,500  
  140,000    
Genting Singapore plc†
    198,008  
See accompanying notes to schedule of investments.

5


 

The Gabelli Asset Fund
Schedule of Investments (Continued) — September 30, 2010 (Unaudited)
                 
            Market  
Shares         Value  
       
COMMON STOCKS (Continued)
       
       
Hotels and Gaming (Continued)
       
  10,000    
Home Inns & Hotels Management Inc., ADR†
  $ 494,400  
  14,422    
Host Hotels & Resorts Inc.
    208,831  
  185,000    
International Game Technology
    2,673,250  
  60,000    
Interval Leisure Group Inc.†
    808,200  
  2,200,000    
Ladbrokes plc
    4,637,907  
  145,000    
Las Vegas Sands Corp.†
    5,053,250  
  4,200,000    
Mandarin Oriental International Ltd.
    7,182,000  
  200,000    
MGM Resorts International†
    2,256,000  
  55,000    
Orient-Express Hotels Ltd., Cl. A†
    613,250  
  110,000    
Pinnacle Entertainment Inc.†
    1,226,500  
  98,000    
Starwood Hotels & Resorts Worldwide Inc.
    5,149,900  
  1,250,000    
The Hongkong & Shanghai Hotels Ltd.
    2,200,713  
  190,000    
Universal Entertainment Corp.†
    4,137,758  
  18,000    
Wyndham Worldwide Corp.
    494,460  
  15,000    
Wynn Resorts Ltd.
    1,301,550  
       
 
     
       
 
    50,654,158  
       
 
     
       
Machinery — 3.7%
       
  150,000    
Baldor Electric Co.
    6,060,000  
  135,000    
Caterpillar Inc.
    10,621,800  
  406,300    
CNH Global NV†
    14,886,832  
  756,000    
Deere & Co.
    52,753,680  
  18,000    
Mueller Water Products Inc., Cl. A
    54,360  
       
 
     
       
 
    84,376,672  
       
 
     
       
Manufactured Housing and Recreational Vehicles — 0.1%
       
  190,000    
All American Group Inc.†
    43,700  
  32,000    
Cavco Industries Inc.†
    1,149,120  
  31,000    
Nobility Homes Inc.†
    301,475  
  81,000    
Skyline Corp.
    1,641,060  
       
 
     
       
 
    3,135,355  
       
 
     
       
Metals and Mining — 2.9%
       
  5,000    
Agnico-Eagle Mines Ltd.
    355,150  
  190,000    
Alcoa Inc.
    2,300,900  
  365,000    
Barrick Gold Corp.
    16,895,850  
  89,000    
Freeport-McMoRan Copper & Gold Inc.
    7,599,710  
  100,000    
Ivanhoe Mines Ltd.†
    2,341,000  
  8,000    
James River Coal Co.†
    140,240  
  50,000    
Kinross Gold Corp.
    939,500  
  52,000    
New Hope Corp. Ltd.
    253,816  
  550,000    
Newmont Mining Corp.
    34,545,500  
  25,000    
Peabody Energy Corp.
    1,225,250  
       
 
     
       
 
    66,596,916  
       
 
     
       
Publishing — 2.6%
       
  37,000    
Belo Corp., Cl. A†
    229,400  
  800,000    
II Sole 24 Ore†
    1,441,775  
  400,000    
Media General Inc., Cl. A†
    3,584,000  
  75,000    
Meredith Corp.
    2,498,250  
  3,345,000    
News Corp., Cl. A
    43,685,700  
  22,000    
News Corp., Cl. B
    331,320  
  155,000    
The E.W. Scripps Co., Cl. A†
    1,221,400  
  192,000    
The McGraw-Hill Companies Inc.
    6,347,520  
  30,000    
The New York Times Co., Cl. A†
    232,200  
       
 
     
       
 
    59,571,565  
       
 
     
       
Real Estate — 0.4%
       
  11,000    
Brookfield Asset Management Inc., Cl. A
    312,070  
  103,000    
Griffin Land & Nurseries Inc.
    2,723,320  
  36,000    
ProLogis
    424,080  
  250,000    
The St. Joe Co.†
    6,217,500  
       
 
     
       
 
    9,676,970  
       
 
     
       
Retail — 2.1%
       
  4,500    
Aaron’s Inc.
    83,025  
  94,200    
Aaron’s Inc., Cl. A
    1,733,280  
  250,000    
AutoNation Inc.†
    5,812,500  
  13,500    
AutoZone Inc.†
    3,090,285  
  250,000    
Coldwater Creek Inc.†
    1,317,500  
  125,000    
Costco Wholesale Corp.
    8,061,250  
  225,000    
CVS Caremark Corp.
    7,080,750  
  60,000    
HSN Inc.†
    1,794,000  
  200,000    
Macy’s Inc.
    4,618,000  
  50,000    
Safeway Inc.
    1,058,000  
  155,000    
The Great Atlantic & Pacific Tea Co. Inc.†
    613,800  
  5,000    
The Home Depot Inc.
    158,400  
  78,000    
The Kroger Co.
    1,689,480  
  75,000    
Wal-Mart Stores Inc.
    4,014,000  
  80,000    
Walgreen Co.
    2,680,000  
  60,000    
Whole Foods Market Inc.†
    2,226,600  
  190,000    
Winn-Dixie Stores Inc.†
    1,354,700  
       
 
     
       
 
    47,385,570  
       
 
     
       
Specialty Chemicals — 1.4%
       
  17,000    
Ashland Inc.
    829,090  
  200,000    
Chemtura Corp.†
    88,200  
  525,000    
Ferro Corp.†
    6,767,250  
  110,000    
General Chemical Group Inc.†
    3,850  
  136,000    
H.B. Fuller Co.
    2,702,320  
  135,000    
International Flavors & Fragrances Inc.
    6,550,200  
  40,000    
Material Sciences Corp.†
    178,400  
  1,600    
NewMarket Corp.
    181,888  
  590,000    
Omnova Solutions Inc.†
    4,242,100  
  297,000    
Sensient Technologies Corp.
    9,055,530  
  70,000    
Zep Inc.
    1,220,800  
       
 
     
       
 
    31,819,628  
       
 
     
       
Telecommunications — 3.5%
       
  2,000    
AboveNet Inc.†
    104,180  
  145,000    
AT&T Inc.
    4,147,000  
  23,000    
Brasil Telecom SA, ADR†
    456,550  
  14,000    
Brasil Telecom SA, Cl. C, ADR†
    120,680  
See accompanying notes to schedule of investments.

6


 

The Gabelli Asset Fund
Schedule of Investments (Continued) — September 30, 2010 (Unaudited)
                 
            Market  
Shares         Value  
       
COMMON STOCKS (Continued)
       
       
Telecommunications (Continued)
       
  45,000    
CenturyLink Inc.
  $ 1,775,700  
  800,000    
Cincinnati Bell Inc.†
    2,136,000  
  390,000    
Deutsche Telekom AG, ADR
    5,315,700  
  30,000    
France Telecom SA, ADR
    645,900  
  35,000    
Hellenic Telecommunications Organization SA
    251,929  
  11,000    
Hellenic Telecommunications Organization SA, ADR
    38,830  
  250,000    
Portugal Telecom SGPS SA
    3,336,560  
  150,000    
Qwest Communications International Inc.
    940,500  
  750,000    
Sprint Nextel Corp.†
    3,472,500  
  75,403    
Tele Norte Leste Participacoes SA, ADR
    1,061,674  
  3,100,000    
Telecom Italia SpA
    4,331,734  
  200,000    
Telecom Italia SpA, ADR
    2,786,000  
  93,000    
Telefonica SA, ADR
    6,895,950  
  40,000    
Telefonos de Mexico SAB de CV, Cl. L, ADR
    597,200  
  585,000    
Telephone & Data Systems Inc.
    19,188,000  
  500,000    
Telephone & Data Systems Inc., Special
    14,175,000  
  30,000    
tw telecom inc.†
    557,100  
  237,000    
Verizon Communications Inc.
    7,723,830  
  40,000    
VimpelCom Ltd., ADR†
    594,000  
       
 
     
       
 
    80,652,517  
       
 
     
       
Transportation — 0.5%
       
  270,000    
AMR Corp.†
    1,692,900  
  290,000    
GATX Corp.
    8,502,800  
  4,000    
Kansas City Southern†
    149,640  
  33,000    
Providence and Worcester Railroad Co.
    407,550  
       
 
     
       
 
    10,752,890  
       
 
     
       
Wireless Communications — 0.9%
       
  93,000    
America Movil SAB de CV, Cl. L, ADR
    4,959,690  
  10,000    
Millicom International Cellular SA
    959,500  
  2,700    
NTT DoCoMo Inc.
    4,495,688  
  72,000    
Price Communications Corp., Escrow† (a)
    0  
  13,001    
Tim Participacoes SA, ADR
    428,903  
  185,000    
United States Cellular Corp.†
    8,504,450  
  47    
Vivo Participacoes SA
    3,181  
  30,000    
Vivo Participacoes SA, ADR
    815,100  
  4,375    
Vodafone Group plc, ADR
    108,544  
       
 
     
       
 
    20,275,056  
       
 
     
       
TOTAL COMMON STOCKS
    2,292,529,968  
       
 
     
       
RIGHTS — 0.0%
       
       
Financial Services — 0.0%
       
  145,000    
Deutsche Bank AG, expire 10/05/10†
    720,650  
       
 
     
       
WARRANTS — 0.0%
       
       
Automotive: Parts and Accessories — 0.0%
       
  14,727    
Federal-Mogul Corp., expire 12/27/14†
    4,860  
       
 
     
       
Broadcasting — 0.0%
       
  2,109    
Granite Broadcasting Corp., Ser. A, expire 06/04/12† (a)
    2  
  2,109    
Granite Broadcasting Corp., Ser. B, expire 06/04/12† (a)
    0  
       
 
     
       
 
    2  
       
 
     
       
Energy and Utilities — 0.0%
       
  11,313    
Mirant Corp., Ser. A, expire 01/03/11†
    171  
       
 
     
       
Hotels and Gaming — 0.0%
       
  200,000    
Indian Hotels Co. Ltd, expire 06/16/14† (b)
    438,000  
       
 
     
       
TOTAL WARRANTS
    443,033  
       
 
     
 
Principal  
 
       
Amount  
 
       
     
 
     
                 
       
CONVERTIBLE CORPORATE BONDS — 0.0%
       
       
Automotive: Parts and Accessories — 0.0%
       
$ 1,000,000    
Standard Motor Products Inc., Sub. Deb. Cv., 15.000%, 04/15/11 (a)
    1,001,000  
       
 
     
       
U.S. GOVERNMENT OBLIGATIONS — 0.5%
       
  12,230,000    
U.S. Treasury Bills, 0.060% to 0.186%††, 10/21/10 to 03/17/11
    12,227,652  
       
 
     
       
TOTAL INVESTMENTS — 100.0%
       
       
(Cost $1,258,967,694)
  $ 2,306,922,303  
       
 
     
       
Aggregate tax cost
  $ 1,275,927,418  
       
 
     
       
Gross unrealized appreciation
  $ 1,126,135,945  
       
Gross unrealized depreciation
    (95,141,060 )
       
 
     
       
Net unrealized appreciation/depreciation
  $ 1,030,994,885  
       
 
     
 
(a)   Security fair valued under procedures established by the Board of Trustees. The procedures may include reviewing available financial information about the company and reviewing valuation of comparable securities and other factors on a regular basis. At September 30, 2010, the market value of fair valued securities amounted to $1,365,858 or 0.06% of total investments.
 
(b)   Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2010, the market value of the Rule 144A security amounted to $438,000 or 0.02% of total investments.
 
  Non-income producing security.
 
††   Represents annualized yield at date of purchase.
 
ADR   American Depositary Receipt
 
CVO   Contingent Value Obligation
 
GDR   Global Depositary Receipt
See accompanying notes to schedule of investments.

7


 

The Gabelli Asset Fund (the “Fund”)
Notes to Schedule of Investments (Unaudited)
The Fund’s financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), which may require the use of management estimates and assumptions. 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 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 Trustees (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 sixty 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 sixty 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. U.S. government obligations with maturities greater than sixty days are normally valued using a model that incorporates market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, and reference data. Certain securities are valued principally using dealer quotations. 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 with the valuation and changes in valuation of similar securities, including a comparison of foreign securities with 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.
The inputs and valuation techniques used to measure fair value of the Fund’s investments are summarized into three levels as described in the hierarchy below:
    Level 1 — quoted prices in active markets for identical securities;
 
    Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.); and
 
    Level 3 — significant unobservable inputs (including the Fund’s determinations as to the fair value of investments).

8


 

The Gabelli Asset Fund
Notes to Schedule of Investments (Continued) (Unaudited)
A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually and in aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of the Fund’s investments in securities by inputs used to value the Fund’s investments as of September 30, 2010 is as follows:
                                 
    Valuation Inputs    
    Level 1   Level 2 Other Significant   Level 3 Significant   Total Market Value
    Quoted Prices   Observable Inputs   Unobservable Inputs   at 9/30/10
INVESTMENTS IN SECURITIES:
                               
ASSETS (Market Value):
                               
Common Stocks:
                               
Broadcasting
  $ 31,711,372           $ 0     $ 31,711,372  
Consumer Products
    121,332,557     $ 253             121,332,810  
Energy and Utilities
    183,746,075       15,000       0       183,761,075  
Entertainment
    107,257,773             364,856       107,622,629  
Wireless Communications
    20,275,056             0       20,275,056  
Other Industries (a)
    1,827,827,026                   1,827,827,026  
 
Total Common Stocks
    2,292,149,859       15,253       364,856       2,292,529,968  
 
Rights (a)
    720,650                   720,650  
Warrants:
                               
Broadcasting
          2             2  
Other Industries (a)
    443,031                   443,031  
 
Total Warrants
    443,031       2             443,033  
 
Convertible Corporate Bonds
          1,001,000             1,001,000  
U.S. Government Obligations
          12,227,652             12,227,652  
 
TOTAL INVESTMENTS IN SECURITIES — ASSETS
  $ 2,293,313,540     $ 13,243,907     $ 364,856     $ 2,306,922,303  
 
(a)   Please refer to the Schedule of Investments for the industry classifications of these portfolio holdings.
The Fund did not have significant transfers between Level 1 and Level 2 during the period ended September 30, 2010.

9


 

The Gabelli Asset Fund
Notes to Schedule of Investments (Continued) (Unaudited)
The following table reconciles Level 3 investments for which significant unobservable inputs were used to determined fair value:
                                                                         
                                                                    Net change
                                                                    in unrealized
                                                                    appreciation/
                                                                    depreciation
                                                                    during the
                                                                    period on
                            Change in                                   Level 3
    Balance   Accrued   Realized   unrealized   Net   Transfers   Transfers   Balance   investments
    as of   discounts/   gain/   appreciation/   purchases/   into   out of   as of   held at
    12/31/09   (premiums)   (loss)   depreciation   (sales)   Level 3†   Level 3†   9/30/10   9/30/10
INVESTMENTS IN SECURITIES:
                                                                       
ASSETS (Market Value):
                                                                       
Common Stocks:
                                                                       
Broadcasting
  $     $     $     $     $     $ 0     $     $ 0     $  
Energy and Utilities
    0                                           0        
Entertainment
    270,177                   94,679                         364,856       94,679  
Equipment and Supplies
    0             (32,625 )     32,625       (0 )                        
Wireless Communications
    0                                           0        
 
Total Common Stocks
    270,177             (32,625 )     127,304       (0 )     0             364,856       94,679  
 
TOTAL INVESTMENTS IN SECURITIES
  $ 270,177     $     $ (32,625 )   $ 127,304     $ (0 )   $ 0     $     $ 364,856     $ 94,679  
 
  The Fund’s policy is to recognize transfers into and transfers out of Level 3 as of the beginning of the reporting period.
In January 2010, the Financial Accounting Standards Board (“FASB”) issued amended guidance to improve disclosure about fair value measurements which requires additional disclosures about transfers between Levels 1 and 2 and separate disclosures about purchases, sales, issuances, and settlements in the reconciliation of fair value measurements using significant unobservable inputs (Level 3). FASB also clarified existing disclosure requirements relating to the levels of disaggregation of fair value measurement and inputs and valuation techniques used to measure fair value. The amended guidance is effective for financial statements for fiscal years beginning after December 15, 2009 and interim periods within those fiscal years. Management has adopted the amended guidance and determined that there was no material impact to the Fund’s financial statements except for additional disclosures made in the notes. Disclosures about purchases, sales, issuances, and settlements in the rollforward of activity in Level 3 fair value measurements are effective for fiscal years beginning after December 15, 2010 and for interim periods within those fiscal years. Management is currently evaluating the impact of the additional disclosure requirements on the Fund’s financial statements.
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

10


 

The Gabelli Asset Fund
Notes to Schedule of Investments (Continued) (Unaudited)
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 inability to repatriate funds, less complete financial 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.
Restricted and Illiquid Securities. The Fund may invest up to 10% of its net assets in securities for which the markets are illiquid. Illiquid securities include securities the disposition of which is subject to substantial legal or contractual restrictions. The sale of illiquid securities often requires more time and results in higher brokerage charges or dealer discounts and other selling expenses than does the sale of securities eligible for trading on national securities exchanges or in the over-the-counter markets. Restricted securities may sell at a price lower than similar securities that are not subject to restrictions on resale. Securities freely saleable among qualified institutional investors under special rules adopted by the SEC may be treated as liquid if they satisfy liquidity standards established by the Board. The continued liquidity of such securities is not as well assured as that of publicly traded securities, and accordingly the Board will monitor their liquidity. The Fund held no illiquid securities at September 30, 2010. For the restricted securities the Fund held as of September 30, 2010, refer to the Schedule of Investments.
Derivative Financial Instruments. The Fund may engage in various portfolio investment strategies by investing in a number of derivative financial instruments for the purpose of increasing the income of the Fund or hedging against a specific transaction with respect to either the currency in which the transaction is denominated or another currency. Investing in certain derivative financial instruments, including participation in the options, futures, or swap markets, entails certain execution, liquidity, hedging, tax, and securities, interest, credit, or currency markets risks. Losses may arise if the Adviser’s prediction of movements in the direction of the securities, foreign currency, and interest rate markets is inaccurate. Losses may also arise if the counterparty does not perform its duties under a contract, or that, in the event of default, the Fund may be delayed in or prevented from obtaining payments or other contractual remedies owed to it under derivative contracts. The creditworthiness of the counterparties is closely monitored in order to minimize these risks. Participation in derivative transactions involves investment risks, transaction costs, and potential losses to which the Fund would not be subject absent the use of these strategies. The consequences of these risks, transaction costs, and losses may have a negative impact on the Fund’s ability to pay distributions.
The Fund’s derivative contracts held at September 30, 2010, if any, are not accounted for as hedging instruments under GAAP.

11


 

The Gabelli Asset Fund
Notes to Schedule of Investments (Continued) (Unaudited)
     Swap Agreements. The Fund may enter into equity and contract for difference swap transactions for the purpose of increasing the income of the Fund. The use of swaps is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio security transactions. In a swap, a set of future cash flows is exchanged between two counterparties. One of these cash flow streams will typically be based on a reference interest rate combined with the performance of a notional value of shares of a stock. The other will be based on the performance of the shares of a stock. Depending on the general state of short-term interest rates and the returns on the Fund’s portfolio securities at the time a swap transaction reaches its scheduled termination date, there is a risk that the Fund will not be able to obtain a replacement transaction or that the terms of the replacement will not be as favorable as on the expiring transaction. During the period ended September 30, 2010, the Fund had no investments in swap agreements.
     Forward Foreign Exchange Contracts. The Fund may engage in forward foreign exchange contracts for the purpose of hedging a specific transaction with respect to either the currency in which the transaction is denominated or another currency as deemed appropriate by the Adviser. Forward foreign exchange contracts are valued at the forward rate and are marked-to-market daily. The change in market value is included in unrealized appreciation/depreciation on foreign currency translations. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.
The use of forward foreign exchange contracts does not eliminate fluctuations in the underlying prices of the Fund’s portfolio securities, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign exchange contracts limit the risk of loss due to a decline in the value of the hedged currency, they also limit any potential gain that might result should the value of the currency increase. In addition, the Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts. During the period ended September 30, 2010, the Fund had no investments in forward foreign exchange contracts.
Tax Information. The Fund intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended.
At December 31, 2009, the Fund had net capital loss carryforwards for federal income tax purposes of $19,021,792, which are available to reduce future required distributions of net capital gains to shareholders through 2017.

12


 

Morningstar Rating™ is based on risk-adjusted returns. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with a fund’s three, five, and ten year (if applicable) Morningstar Rating metrics. For funds with at least a three year history, a Morningstar Rating is based on a risk-adjusted return measure (including the effects of sales charges, loads, and redemption fees) placing more emphasis on downward variations and rewarding consistent performance. That accounts for variations in a fund’s monthly performance. The top 10% of funds in each category receive 5 stars, the next 22.5% 4 stars, the next 35% 3 stars, the next 22.5% 2 stars, and the bottom 10% 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Morningstar Rating is for the AAA Share class only; other classes may have different performance characteristics. Ratings reflect relative performance. Results for certain periods were negative. ©2010 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

We have separated the portfolio managers’ 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 managers’ 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.

13


 

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, which is 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:
  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.
 
  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 website, 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: Nicholas F. Galluccio
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 MitesSM 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 Green Fund
Seeks to invest in common and preferred stocks meeting guidelines for social responsibility (avoiding defense contractors and manufacturers of alcohol, abortifacients, gaming, and tobacco products) and sustainability (companies engaged in climate change, energy security and independence, natural resource shortages,organic living,and urbanization). The Fund’s primary objective is capital appreciation. (Multiclass)
Co-Portfolio Managers: Christopher C. Desmarais
John M. Segrich, CFA
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
Gabelli Enterprise Mergers and Acquisitions Fund
Seeks to invest in securities believed to be likely acquisition targets within 12—18 months or in arbitrage transactions of publicly announced mergers or other corporate reorganizations. The Fund’s primary objective is capital appreciation. (Multiclass)
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
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)
Co-Portfolio Managers: Judith A. Raneri
Ronald S. Eaker
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 Asset Fund
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 7:00 P.M.
Board of Trustees
     
Mario J. Gabelli, CFA
 
Chairman and Chief
 
Executive Officer
 
GAMCO Investors, Inc.
 
 
   
Anthony J. Colavita
 
President
 
Anthony J. Colavita, P.C.
 
 
   
James P. Conn
 
Former Chief Investment Officer
 
Financial Security Assurance
 
Holdings Ltd.
   
 
   
John D. Gabelli
 
Senior Vice President
 
Gabelli & Company, Inc.
 
 
   
Kuni Nakamura
   
President
   
Advanced Polymer, Inc.
   
   
Anthony R. Pustorino    
Certified Public Accountant,    
Professor Emeritus    
Pace University    
 
Werner J. Roeder, MD    
Medical Director    
Lawrence Hospital    
 
Anthonie C. van Ekris    
Chairman    
BALMAC International, Inc.    
 
Salvatore J. Zizza    
Chairman    
Zizza & Co., Ltd.    

Officers
   
 
Bruce N. Alpert
 
President and Secretary
 
 
   
Agnes Mullady
   
Treasurer
   
 
Peter D. Goldstein    
Chief Compliance Officer    
Distributor
Gabelli & Company, Inc.

Custodian, Transfer Agent, and Dividend Agent
State Street Bank and Trust Company

Legal Counsel
Skadden, Arps, Slate, Meagher & Flom LLP
 
This report is submitted for the general information of the shareholders of The Gabelli Asset Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.
 
GAB405Q310SR
(RESEARCH)
()
The Gabelli Asset Fund
      
Morningstar® rated The Gabelli Asset Fund Class AAA
Shares 5 stars overall and 5 stars for the five and ten
year periods and 4 stars for the three year period
ended September 30, 2010 among 1,723, 1,422, 761,
and 1,723 Large Blend funds, respectively.
THIRD QUARTER REPORT
SEPTEMBER 30, 2010

 


 

Item 2. 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 last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3. Exhibits.
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 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 Asset Fund
 
   
         
By (Signature and Title)*
            /s/ Bruce N. Alpert
 
   
 
            Bruce N. Alpert, Principal Executive Officer    
         
Date
  11/26/10
 
   
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
 
   
 
            Bruce N. Alpert, Principal Executive Officer    
         
Date
  11/26/10
 
   
         
By (Signature and Title)*
            /s/ Agnes Mullady
 
   
 
            Agnes Mullady, Principal Financial Officer and Treasurer    
         
Date
  11/26/10
 
   
 
*   Print the name and title of each signing officer under his or her signature.