N-Q 1 y90248nvq.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: March 31, 2011
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
First Quarter Report — March 31, 2011
(IMAGE)
Morningstar® rated The Gabelli Asset Fund Class AAA Shares 5 stars overall and 5 stars for the three, five and ten year
periods ended March 31, 2011 among 1,757, 1,757, 1,471, and 816 Large Blend funds, respectively.
         
(PHOTO OF MARIO J. GABELLI)   (PHOTO OF KEVIN V. DREYER)   (PHOTO OF CHRISTOPHER J. MARANGI)
Mario J. Gabelli, CFA   Kevin V. Dreyer   Christopher J. Marangi
To Our Shareholders,
     During the first quarter of 2011, The Gabelli Asset Fund’s (the “Fund”) (Class AAA) total return was 6.8% compared with the Standard & Poor’s (“S&P”) 500 Index of 5.9%.
     Enclosed is the portfolio of investments as of March 31, 2011.

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.

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.

 


 

Comparative Results

Average Annual Returns through March 31, 2011 (a) (Unaudited)
                                                         
                                                    Since
                                                    Inception
    Quarter   1 Year   5 Year   10 Year   20 Year   25 Year   (3/3/86)
Gabelli Asset Fund Class AAA
    6.81 %     22.86 %     6.48 %     7.47 %     11.27 %     12.40 %     12.55 %
S&P 500 Index
    5.92       15.65       2.62       3.29       8.72       9.61       9.82 (e)
Dow Jones Industrial Average
    7.07       16.49       4.85       4.74       10.05       10.84       11.09 (e)
Nasdaq Composite Index
    5.05       17.19       4.44       4.96       9.15       8.34       8.49 (e)
Class A
    6.82       22.87       6.47       7.47       11.27       12.40       12.55  
With sales charge (b)
    0.68       15.81       5.22       6.84       11.27       12.40       12.27  
Class B
    6.58       21.91       5.63       6.88       10.96       12.15       12.30  
With contingent deferred sales charge (c)
    1.58       16.91       5.31       6.88       10.96       12.15       12.30  
Class C
    6.61       21.94       5.69       6.89       10.97       12.15       12.31  
With contingent deferred sales charge (d)
    5.61       20.94       5.69       6.89       10.97       12.15       12.31  
Class I
    6.87       23.15       6.65       7.56       11.32       12.43       12.59  
In the current prospectus dated April 29, 2011, the expense ratios for Class AAA, A, B, C, and I Shares are 1.38%, 1.38%, 2.13%, 2.13%, and 1.13%, 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 these and other matters and should be read carefully before investing. The S&P 500 Index, Dow Jones Industrial Average and the Nasdaq Composite Index are unmanaged indicators of stock market performance. Dividends are considered reinvested. You cannot invest directly in an index. The Class AAA Shares net asset value 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)   Assuming payment of the maximum contingent deferred sales charge (CDSC). The maximum CDSC for Class B Shares is 5% and is reduced to 0% after six years.
 
(d)   Assuming payment of the 1% maximum CDSC imposed on redemptions made within one year of purchase.
 
(e)   S&P 500 Index, Dow Jones Industrial Average and Nasdaq Composite Index since inception performance are as of February 28, 1986.

2


 

The Gabelli Asset Fund
Schedule of Investments — March 31, 2011 (Unaudited)
                 
            Market  
Shares         Value  
       
COMMON STOCKS — 98.0%
       
       
Aerospace — 1.1%
       
  5,000    
Lockheed Martin Corp.
  $ 402,000  
  12,000    
Northrop Grumman Corp.
    752,520  
  2,100,000    
Rolls-Royce Group plc†
    20,853,113  
  131,000    
The Boeing Co.
    9,684,830  
       
 
     
       
 
    31,692,463  
       
 
     
       
Agriculture — 0.9%
       
  490,000    
Archer-Daniels-Midland Co.
    17,644,900  
  92,058    
Monsanto Co.
    6,652,111  
  9,000    
Potash Corp of Saskatchewan Inc.
    530,370  
  29,000    
The Mosaic Co.
    2,283,750  
       
 
     
       
 
    27,111,131  
       
 
     
       
Automotive — 1.3%
       
  288,000    
Ford Motor Co.†
    4,294,080  
  409,000    
Navistar International Corp.†
    28,355,970  
  101,250    
PACCAR Inc.
    5,300,438  
  3,400    
Volkswagen AG
    521,839  
       
 
     
       
 
    38,472,327  
       
 
     
       
Automotive: Parts and Accessories — 3.5%
       
  191,000    
BorgWarner Inc.†
    15,220,790  
  230,000    
CLARCOR Inc.
    10,333,900  
  340,000    
Dana Holding Corp.†
    5,912,600  
  40,000    
Federal-Mogul Corp.†
    996,000  
  512,000    
Genuine Parts Co.
    27,463,680  
  394,000    
Johnson Controls Inc.
    16,378,580  
  174,000    
Midas Inc.†
    1,334,580  
  200,000    
Modine Manufacturing Co.†
    3,228,000  
  190,000    
O’Reilly Automotive Inc.†
    10,917,400  
  260,000    
Standard Motor Products Inc.
    3,595,800  
  143,000    
Superior Industries International Inc.
    3,666,520  
  50,000    
Tenneco Inc.†
    2,122,500  
       
 
     
       
 
    101,170,350  
       
 
     
       
Aviation: Parts and Services — 2.3%
       
  1,114,775    
BBA Aviation plc
    3,633,891  
  480,000    
Curtiss-Wright Corp.
    16,867,200  
  600,000    
GenCorp Inc.†
    3,588,000  
  110,000    
Kaman Corp.
    3,872,000  
  275,000    
Precision Castparts Corp.
    40,474,500  
       
 
     
       
 
    68,435,591  
       
 
     
       
Broadcasting — 1.4%
       
  324,500    
CBS Corp., Cl. A, Voting
    8,151,440  
  20,000    
Cogeco Inc.
    855,905  
  26,666    
Corus Entertainment Inc., Cl. B, OTC
    571,452  
  13,334    
Corus Entertainment Inc., Cl. B, Toronto
    284,147  
  106,000    
Fisher Communications Inc.†
    3,294,480  
  843    
Granite Broadcasting Corp.† (a)
    0  
  224,000    
Liberty Media Corp. — Capital, Cl. A†
    16,502,080  
  61,000    
Liberty Media Corp. — Starz, Cl. A†
    4,733,600  
  210,000    
LIN TV Corp., Cl. A†
    1,245,300  
  12,000    
Naspers Ltd., Cl. N
    645,676  
  400,000    
Television Broadcasts Ltd.
    2,350,052  
  160,000    
Tokyo Broadcasting System Holdings Inc.
    1,881,221  
       
 
     
       
 
    40,515,353  
       
 
     
       
Business Services — 1.6%
       
  28,000    
ACCO Brands Corp.†
    267,120  
  37,450    
Ascent Media Corp., Cl. A†
    1,829,432  
  171,000    
Clear Channel Outdoor Holdings Inc., Cl. A†
    2,488,050  
  190,000    
Ecolab Inc.
    9,693,800  
  15,000    
Edenred†
    452,687  
  20,000    
Equinix Inc.†
    1,822,000  
  61,000    
Landauer Inc.
    3,752,720  
  300,487    
Live Nation Entertainment Inc.†
    3,004,870  
  12,000    
Macquarie Infrastructure Co. LLC†
    286,320  
  27,000    
MasterCard Inc., Cl. A
    6,796,440  
  93,000    
Monster Worldwide Inc.†
    1,478,700  
  82,000    
The Brink’s Co.
    2,715,020  
  765,000    
The Interpublic Group of Companies Inc.
    9,616,050  
  18,000    
Visa Inc., Cl. A
    1,325,160  
       
 
     
       
 
    45,528,369  
       
 
     
       
Cable and Satellite — 7.4%
       
  1,880,000    
Cablevision Systems Corp., Cl. A
    65,066,800  
  188,000    
Comcast Corp., Cl. A
    4,647,360  
  182,000    
Comcast Corp., Cl. A, Special
    4,226,040  
  1,035,002    
DIRECTV, Cl. A†
    48,438,094  
  370,000    
DISH Network Corp., Cl. A†
    9,013,200  
  51,000    
EchoStar Corp., Cl. A†
    1,930,350  
  1,000    
Jupiter Telecommunications Co. Ltd.
    982,207  
  227,000    
Liberty Global Inc., Cl. A†
    9,400,070  
  225,000    
Liberty Global Inc., Cl. C†
    8,997,750  
  1,077,000    
Rogers Communications Inc., Cl. B, New York
    39,202,800  
  50,000    
Rogers Communications Inc., Cl. B, Toronto
    1,817,432  
  220,000    
Scripps Networks Interactive Inc., Cl. A
    11,019,800  
  150,000    
Shaw Communications Inc., Cl. B, New York
    3,160,500  
  120,000    
Shaw Communications Inc., Cl. B, Non-Voting, Toronto
    2,529,964  
  58,000    
Time Warner Cable Inc.
    4,137,720  
       
 
     
       
 
    214,570,087  
       
 
     
See accompanying notes to schedule of investments.

3


 

The Gabelli Asset Fund
Schedule of Investments (Continued) — March 31, 2011 (Unaudited)
                 
            Market  
Shares         Value  
       
COMMON STOCKS (Continued)
       
       
Closed-End Funds — 0.0%
       
  79,920    
Royce Value Trust Inc.
  $ 1,229,969  
       
 
     
       
Communications Equipment — 1.2%
       
  520,000    
Corning Inc.
    10,727,600  
  413,000    
Thomas & Betts Corp.†
    24,561,110  
       
 
     
       
 
    35,288,710  
       
 
     
       
Computer Hardware — 0.0%
       
  3,000    
International Business Machines Corp.
    489,210  
  5,000    
Wincor Nixdorf AG
    404,821  
       
 
     
       
 
    894,031  
       
 
     
       
Computer Software and Services — 1.1%
       
  100,001    
AOL Inc.†
    1,953,020  
  220,000    
Diebold Inc.
    7,801,200  
  44,000    
eBay Inc.†
    1,365,760  
  98,250    
Fidelity National Information Services Inc.
    3,211,793  
  25,000    
Internap Network Services Corp.†
    164,250  
  3,000    
NaviSite Inc.†
    16,470  
  80,000    
NCR Corp.†
    1,507,200  
  112,000    
Rockwell Automation Inc.
    10,600,800  
  350,000    
Yahoo! Inc.†
    5,827,500  
       
 
     
       
 
    32,447,993  
       
 
     
       
Consumer Products — 4.9%
       
  49,000    
Alberto-Culver Co.
    1,826,230  
  35,000    
Altria Group Inc.
    911,050  
  82,000    
Avon Products Inc.
    2,217,280  
  11,000    
Christian Dior SA
    1,548,468  
  220,000    
Church & Dwight Co. Inc.
    17,454,800  
  25,000    
Clorox Co.
    1,751,750  
  350,000    
Eastman Kodak Co.†
    1,130,500  
  322,500    
Energizer Holdings Inc.†
    22,949,100  
  171,000    
Fortune Brands Inc.
    10,583,190  
  3,400    
Givaudan SA†
    3,418,508  
  35,000    
Harley-Davidson Inc.
    1,487,150  
  73,000    
Kimberly-Clark Corp.
    4,764,710  
  20,000    
Mattel Inc.
    498,600  
  21,500    
National Presto Industries Inc.
    2,422,620  
  25,000    
Philip Morris International Inc.
    1,640,750  
  50,000    
Reckitt Benckiser Group plc
    2,568,339  
  125,000    
Sally Beauty Holdings Inc.†
    1,751,250  
  50,000    
Svenska Cellulosa AB, Cl. B
    804,829  
  1,080,000    
Swedish Match AB
    35,915,018  
  10,000    
Syratech Corp.†
    254  
  1,500    
The Estee Lauder Companies Inc., Cl. A
    144,540  
  435,000    
The Procter & Gamble Co.
    26,796,000  
  35,000    
Wolverine World Wide Inc.
    1,304,800  
       
 
     
       
 
    143,889,736  
       
 
     
       
Consumer Services — 1.1%
       
  170,000    
IAC/InterActiveCorp.†
    5,251,300  
  430,000    
Liberty Media Corp. — Interactive, Cl. A†
    6,897,200  
  962,000    
Rollins Inc.
    19,528,600  
  11,000    
TiVo Inc.†
    96,360  
       
 
     
       
 
    31,773,460  
       
 
     
       
Diversified Industrial — 6.0%
       
  13,000    
Acuity Brands Inc.
    760,370  
  5,000    
Anixter International Inc.
    349,450  
  75,403    
Contax Participacoes SA, ADR
    212,636  
  400,000    
Cooper Industries plc
    25,960,000  
  428,100    
Crane Co.
    20,732,883  
  99,000    
Gardner Denver Inc.
    7,724,970  
  120,000    
Greif Inc., Cl. A
    7,849,200  
  265,043    
Greif Inc., Cl. B
    16,326,649  
  435,000    
Honeywell International Inc.
    25,973,850  
  25,000    
Ingersoll-Rand plc
    1,207,750  
  604,000    
ITT Corp.
    36,270,200  
  95,000    
Jardine Strategic Holdings Ltd.
    2,536,500  
  239,000    
Katy Industries Inc.†
    136,230  
  310,000    
Magnetek Inc.†
    682,000  
  240,000    
Myers Industries Inc.
    2,383,200  
  52,000    
Pentair Inc.
    1,965,080  
  110,033    
Smiths Group plc
    2,289,412  
  30,000    
Sulzer AG
    4,520,414  
  160,000    
Textron Inc.
    4,382,400  
  110,000    
Trinity Industries Inc.
    4,033,700  
  179,000    
Tyco International Ltd.
    8,013,830  
  4,000    
Waters Corp.†
    347,600  
       
 
     
       
 
    174,658,324  
       
 
     
       
Electronics — 1.2%
       
  45,000    
Chemring Group plc
    499,190  
  98,000    
Intel Corp.
    1,976,660  
  8,500    
Kyocera Corp., ADR
    857,225  
  375,000    
LSI Corp.†
    2,550,000  
  1,500    
Mettler-Toledo International Inc.†
    258,000  
  24,000    
Molex Inc., Cl. A
    496,560  
  32,000    
Samsung Electronics Co. Ltd., GDR (b)(c)
    13,635,200  
  50,000    
Sony Corp., ADR
    1,591,500  
  77,000    
TE Connectivity Ltd.
    2,681,140  
  303,000    
Texas Instruments Inc.
    10,471,680  
       
 
     
       
 
    35,017,155  
       
 
     
       
Energy and Utilities — 8.5%
       
  11,000    
Anadarko Petroleum Corp.
    901,120  
  208,000    
BP plc, ADR
    9,181,120  
  29,000    
CH Energy Group Inc.
    1,465,660  
  324,000    
Chevron Corp.
    34,807,320  
  340,000    
ConocoPhillips
    27,152,400  
See accompanying notes to schedule of investments.

4


 

The Gabelli Asset Fund
Schedule of Investments (Continued) — March 31, 2011 (Unaudited)
                 
            Market  
Shares         Value  
       
COMMON STOCKS (Continued)
       
       
Energy and Utilities (Continued)
       
  232,000    
CONSOL Energy Inc.
  $ 12,442,160  
  25,000    
Constellation Energy Group Inc.
    778,250  
  122,000    
Devon Energy Corp.
    11,195,940  
  9,000    
Diamond Offshore Drilling Inc.
    699,300  
  25,000    
DPL Inc.
    685,250  
  90,000    
Duke Energy Corp.
    1,633,500  
  20,000    
Edison International
    731,800  
  480,000    
El Paso Corp.
    8,640,000  
  240,000    
El Paso Electric Co.†
    7,296,000  
  95,000    
EOG Resources Inc.
    11,258,450  
  319,000    
Exxon Mobil Corp.
    26,837,470  
  70,000    
FirstEnergy Corp.
    2,596,300  
  130,000    
GenOn Energy Inc., Escrow† (a)
    0  
  90,000    
Great Plains Energy Inc.
    1,801,800  
  205,000    
Halliburton Co.
    10,217,200  
  232,000    
National Fuel Gas Co.
    17,168,000  
  29,000    
NextEra Energy Inc.
    1,598,480  
  160,000    
Northeast Utilities
    5,536,000  
  25,000    
NSTAR
    1,156,750  
  12,000    
Occidental Petroleum Corp.
    1,253,880  
  45,000    
Oceaneering International Inc.†
    4,025,250  
  47,000    
Petroleo Brasileiro SA, ADR
    1,900,210  
  100,000    
Progress Energy Inc., CVO†
    14,500  
  235,000    
Rowan Companies Inc.†
    10,382,300  
  48,000    
Royal Dutch Shell plc, Cl. A, ADR
    3,497,280  
  129,100    
SJW Corp.
    2,988,665  
  255,000    
Southwest Gas Corp.
    9,937,350  
  245,000    
Spectra Energy Corp.
    6,659,100  
  50,000    
Talisman Energy Inc.
    1,235,000  
  100,000    
The AES Corp.†
    1,300,000  
  53,000    
Transocean Ltd.†
    4,131,350  
  200,000    
Weatherford International Ltd.†
    4,520,000  
       
 
     
       
 
    247,625,155  
       
 
     
       
Entertainment — 4.1%
       
  8,010    
Chestnut Hill Ventures† (a)
    364,856  
  270,000    
Discovery Communications Inc., Cl. A†
    10,773,000  
  265,000    
Discovery Communications Inc., Cl. C†
    9,330,650  
  39,000    
DreamWorks Animation SKG Inc., Cl. A†
    1,089,270  
  752,000    
Grupo Televisa SA, ADR†
    18,446,560  
  512,500    
Madison Square Garden Inc., Cl. A†
    13,832,375  
  1,600    
Nintendo Co. Ltd.
    432,219  
  80,000    
Rank Group plc
    191,735  
  20,000    
Regal Entertainment Group, Cl. A
    270,000  
  560,001    
Time Warner Inc.
    19,992,036  
  515,000    
Viacom Inc., Cl. A
    27,444,350  
  15,000    
Viacom Inc., Cl. B
    697,800  
  560,000    
Vivendi
    15,991,610  
  38,000    
World Wrestling Entertainment Inc., Cl. A
    477,660  
       
 
     
       
 
    119,334,121  
       
 
     
       
Environmental Services — 1.2%
       
  557,000    
Republic Services Inc.
    16,732,280  
  500,000    
Waste Management Inc.
    18,670,000  
       
 
     
       
 
    35,402,280  
       
 
     
       
Equipment and Supplies — 7.3%
       
  963,500    
AMETEK Inc.
    42,268,745  
  6,000    
Amphenol Corp., Cl. A
    326,340  
  100,000    
CIRCOR International Inc.
    4,702,000  
  144,000    
Crown Holdings Inc.†
    5,555,520  
  175,000    
CTS Corp.
    1,890,000  
  8,000    
Danaher Corp.
    415,200  
  390,000    
Donaldson Co. Inc.
    23,903,100  
  239,000    
Flowserve Corp.
    30,783,200  
  190,000    
Gerber Scientific Inc.†
    1,778,400  
  235,000    
GrafTech International Ltd.†
    4,848,050  
  762,000    
IDEX Corp.
    33,261,300  
  151,000    
Interpump Group SpA†
    1,280,767  
  389,000    
Lufkin Industries Inc.
    36,359,830  
  70,000    
Met-Pro Corp.
    833,000  
  20,000    
Sealed Air Corp.
    533,200  
  2,000    
SL Industries Inc.†
    36,620  
  100,000    
Tenaris SA, ADR
    4,946,000  
  100,000    
The Manitowoc Co. Inc.
    2,188,000  
  100,000    
The Weir Group plc
    2,776,886  
  29,000    
Valmont Industries Inc.
    3,026,730  
  320,000    
Watts Water Technologies Inc., Cl. A
    12,220,800  
       
 
     
       
 
    213,933,688  
       
 
     
       
Financial Services — 7.2%
       
  16,014    
Alleghany Corp.†
    5,300,314  
  75,000    
AllianceBernstein Holding LP
    1,635,000  
  683,000    
American Express Co.
    30,871,600  
  7,000    
Ameriprise Financial Inc.
    427,560  
  32,000    
Argo Group International Holdings Ltd.
    1,057,280  
  118,000    
Artio Global Investors Inc.
    1,906,880  
  115,000    
Bank of America Corp.
    1,532,950  
  211    
Berkshire Hathaway Inc., Cl. A†
    26,438,300  
  71,000    
BKF Capital Group Inc.†
    76,680  
  20,000    
Calamos Asset Management Inc., Cl. A
    331,800  
  400,000    
Citigroup Inc.†
    1,768,000  
  76,000    
Commerzbank AG, ADR†
    594,320  
  204,500    
Deutsche Bank AG
    12,079,815  
  27,000    
Fortress Investment Group LLC, Cl. A†
    153,360  
  30,000    
GAM Holding AG†
    569,951  
  125,000    
H&R Block Inc.
    2,092,500  
  24,000    
HSBC Holdings plc, ADR
    1,243,200  
  50,000    
Interactive Brokers Group Inc., Cl. A
    794,500  
  450,000    
Janus Capital Group Inc.
    5,611,500  
  262,000    
JPMorgan Chase & Co.
    12,078,200  
  56,000    
Kinnevik Investment AB, Cl. A
    1,304,203  
  65,000    
Kinnevik Investment AB, Cl. B
    1,514,837  
See accompanying notes to schedule of investments.

5


 

The Gabelli Asset Fund
Schedule of Investments (Continued) — March 31, 2011 (Unaudited)
                 
            Market  
Shares         Value  
       
COMMON STOCKS (Continued)
       
       
Financial Services (Continued)
       
  75,000    
KKR & Co. LP
  $ 1,230,750  
  330,000    
Legg Mason Inc.
    11,909,700  
  75,000    
Leucadia National Corp.
    2,815,500  
  62,000    
Loews Corp.
    2,671,580  
  48,800    
M&T Bank Corp.
    4,317,336  
  150,000    
Marsh & McLennan Companies Inc.
    4,471,500  
  150,000    
NewAlliance Bancshares Inc.
    2,226,000  
  70,000    
Northern Trust Corp.
    3,552,500  
  113,000    
PNC Financial Services Group Inc.
    7,117,870  
  500,000    
Popular Inc.†
    1,455,000  
  44,000    
Royal Bank of Canada
    2,726,680  
  139,200    
State Street Corp.
    6,255,648  
  20,000    
SunTrust Banks Inc.
    576,800  
  50,000    
T. Rowe Price Group Inc.
    3,321,000  
  526,000    
The Bank of New York Mellon Corp.
    15,711,620  
  49,000    
The Blackstone Group LP
    876,120  
  11,000    
The Goldman Sachs Group Inc.
    1,743,170  
  5,000    
The Travelers Companies Inc.
    297,400  
  70,866    
Tree.com Inc.†
    418,109  
  19,000    
Unitrin Inc.
    586,720  
  8,500    
Value Line Inc.
    125,800  
  180,000    
Waddell & Reed Financial Inc., Cl. A
    7,309,800  
  646,000    
Wells Fargo & Co.
    20,478,200  
       
 
     
       
 
    211,577,553  
       
 
     
       
Food and Beverage — 10.6%
       
  345,000    
Brown-Forman Corp., Cl. A
    23,411,700  
  85,000    
Brown-Forman Corp., Cl. B
    5,805,500  
  80,000    
Campbell Soup Co.
    2,648,800  
  400,000    
China Mengniu Dairy Co. Ltd.
    1,059,323  
  80,000    
Coca-Cola Enterprises Inc.
    2,184,000  
  16,500    
Coca-Cola Hellenic Bottling Co. SA, ADR
    447,645  
  210,000    
Constellation Brands Inc., Cl. A†
    4,258,800  
  225,000    
Corn Products International Inc.
    11,659,500  
  323,000    
Danone
    21,100,146  
  585,000    
Davide Campari — Milano SpA
    3,957,924  
  130,000    
Dean Foods Co.†
    1,300,000  
  331,000    
Diageo plc, ADR
    25,228,820  
  2,000    
Diamond Foods Inc.
    111,600  
  190,000    
Dr Pepper Snapple Group Inc.
    7,060,400  
  70,000    
Farmer Brothers Co.
    848,400  
  275,000    
Flowers Foods Inc.
    7,488,250  
  70,000    
Fomento Economico Mexicano SAB de CV, ADR
    4,109,000  
  589,000    
General Mills Inc.
    21,527,950  
  52,000    
Green Mountain Coffee Roasters Inc.†
    3,359,720  
  800,000    
Grupo Bimbo SAB de CV, Cl. A
    6,782,995  
  72,000    
H.J. Heinz Co.
    3,515,040  
  95,000    
Heineken NV
    5,190,790  
  200,000    
ITO EN Ltd.
    3,484,011  
  50,000    
Kellogg Co.
    2,699,000  
  82,000    
Kerry Group plc, Cl. A
    3,056,319  
  450,000    
Kikkoman Corp.
    4,241,404  
  285,229    
Kraft Foods Inc., Cl. A
    8,944,781  
  32,000    
LVMH Moet Hennessy Louis Vuitton SA
    5,065,616  
  15,000    
MEIJI Holdings Co. Ltd.
    603,210  
  245,000    
Morinaga Milk Industry Co. Ltd.
    874,790  
  93,000    
Nestlé SA
    5,330,920  
  200,000    
NISSIN FOODS HOLDINGS CO. LTD.
    7,049,772  
  200,000    
Parmalat SpA
    670,049  
  24,000    
Peet’s Coffee & Tea Inc.†
    1,154,160  
  239,274    
PepsiCo Inc.
    15,411,639  
  94,000    
Pernod-Ricard SA
    8,778,946  
  146,000    
Ralcorp Holdings Inc.†
    9,990,780  
  86,430    
Remy Cointreau SA
    6,509,014  
  978,016    
Sara Lee Corp.
    17,281,543  
  326,000    
The Coca-Cola Co.
    21,630,100  
  32,000    
The Hain Celestial Group Inc.†
    1,032,960  
  42,000    
The Hershey Co.
    2,282,700  
  20,000    
The J.M. Smucker Co.
    1,427,800  
  400,000    
Tingyi (Cayman Islands) Holding Corp.
    978,074  
  164,800    
Tootsie Roll Industries Inc.
    4,673,728  
  165,000    
Tyson Foods Inc., Cl. A
    3,166,350  
  440,000    
YAKULT HONSHA Co. Ltd.
    11,245,973  
       
 
     
       
 
    310,639,942  
       
 
     
       
Health Care — 3.8%
       
  40,000    
Abbott Laboratories
    1,962,000  
  15,000    
Alere Inc.†
    587,100  
  50,000    
Allergan Inc.
    3,551,000  
  44,000    
Amgen Inc.†
    2,351,800  
  70,000    
AngioDynamics Inc.†
    1,058,400  
  10,000    
ArthroCare Corp.†
    333,400  
  75,000    
Baxter International Inc.
    4,032,750  
  151,000    
Beckman Coulter Inc.
    12,543,570  
  41,000    
Becton, Dickinson and Co.
    3,264,420  
  200    
Bio-Rad Laboratories Inc., Cl. A†
    24,028  
  51,000    
Biogen Idec Inc.†
    3,742,890  
  220,000    
Boston Scientific Corp.†
    1,581,800  
  212,000    
Bristol-Myers Squibb Co.
    5,603,160  
  10,000    
Cephalon Inc.†
    757,800  
  18,000    
Cepheid Inc.†
    504,360  
  67,000    
Chemed Corp.
    4,462,870  
  32,000    
CONMED Corp.†
    840,960  
  50,000    
Covidien plc
    2,597,000  
  10,000    
DENTSPLY International Inc.
    369,900  
  55,000    
Eli Lilly & Co.
    1,934,350  
  44,000    
Exactech Inc.†
    772,200  
  80,000    
Genzyme Corp.†
    6,092,000  
  38,000    
Henry Schein Inc.†
    2,666,460  
See accompanying notes to schedule of investments.

6


 

The Gabelli Asset Fund
Schedule of Investments (Continued) — March 31, 2011 (Unaudited)
                 
            Market  
Shares         Value  
       
COMMON STOCKS (Continued)
       
       
Health Care (Continued)
       
  147,000    
Johnson & Johnson
  $ 8,709,750  
  16,000    
Laboratory Corp. of America Holdings†
    1,474,080  
  80,000    
Life Technologies Corp.†
    4,193,600  
  98,000    
Mead Johnson Nutrition Co.
    5,677,140  
  65,000    
Medco Health Solutions Inc.†
    3,650,400  
  100,000    
Merck & Co. Inc.
    3,301,000  
  11,000    
Nobel Biocare Holding AG†
    228,024  
  125,000    
Pain Therapeutics Inc.†
    1,195,000  
  70,000    
Patterson Companies Inc.
    2,253,300  
  175,000    
Pfizer Inc.
    3,554,250  
  25,000    
Quidel Corp.†
    299,000  
  15,000    
Roche Holding AG, ADR
    539,250  
  2,000    
Stryker Corp.
    121,600  
  2,000    
Techne Corp.
    143,200  
  430,000    
Tenet Healthcare Corp.†
    3,203,500  
  50,000    
UnitedHealth Group Inc.
    2,260,000  
  88,000    
Watson Pharmaceuticals Inc.†
    4,928,880  
  34,000    
William Demant Holding A/S†
    2,944,271  
  30,000    
Wright Medical Group Inc.†
    510,300  
  3,000    
Young Innovations Inc.
    94,200  
  13,000    
Zimmer Holdings Inc.†
    786,890  
       
 
     
       
 
    111,701,853  
       
 
     
       
Hotels and Gaming — 2.0%
       
  15,000    
Accor SA
    673,982  
  24,000    
Churchill Downs Inc.
    996,000  
  350,000    
Gaylord Entertainment Co.†
    12,138,000  
  450,000    
Genting Singapore plc†
    731,852  
  10,000    
Home Inns & Hotels Management Inc., ADR†
    395,700  
  14,422    
Host Hotels & Resorts Inc.
    253,971  
  20,000    
Hyatt Hotels Corp., Cl. A†
    860,800  
  147,000    
International Game Technology
    2,385,810  
  60,000    
Interval Leisure Group Inc.†
    981,000  
  2,600,000    
Ladbrokes plc
    5,526,500  
  124,000    
Las Vegas Sands Corp.†
    5,235,280  
  4,200,000    
Mandarin Oriental International Ltd.
    8,778,000  
  135,000    
MGM Resorts International†
    1,775,250  
  55,000    
Orient-Express Hotels Ltd., Cl. A†
    680,350  
  110,000    
Pinnacle Entertainment Inc.†
    1,498,200  
  98,000    
Starwood Hotels & Resorts Worldwide Inc.
    5,695,760  
  1,800,000    
The Hongkong & Shanghai Hotels Ltd.
    3,299,844  
  187,000    
Universal Entertainment Corp.†
    5,487,701  
  18,000    
Wyndham Worldwide Corp.
    572,580  
  15,000    
Wynn Resorts Ltd.
    1,908,750  
       
 
     
       
 
    59,875,330  
       
 
     
       
Machinery — 4.2%
       
  160,000    
Bucyrus International Inc.
    14,632,000  
  135,000    
Caterpillar Inc.
    15,032,250  
  400,000    
CNH Global NV†
    19,420,000  
  745,500    
Deere & Co.
    72,231,495  
  22,000    
Mueller Water Products Inc., Cl. A
    98,560  
  22,000    
Zebra Technologies Corp., Cl. A†
    863,280  
       
 
     
       
 
    122,277,585  
       
 
     
       
Manufactured Housing and Recreational Vehicles — 0.1%
       
  185,000    
All American Group Inc.†
    42,180  
  32,000    
Cavco Industries Inc.†
    1,445,120  
  32,000    
Nobility Homes Inc.†
    294,400  
  77,500    
Skyline Corp.
    1,553,875  
       
 
     
       
 
    3,335,575  
       
 
     
       
Metals and Mining — 2.4%
       
  5,000    
Agnico-Eagle Mines Ltd.
    331,750  
  220,000    
Alcoa Inc.
    3,883,000  
  365,000    
Barrick Gold Corp.
    18,947,150  
  178,000    
Freeport-McMoRan Copper & Gold Inc.
    9,887,900  
  105,000    
Ivanhoe Mines Ltd.†
    2,883,300  
  8,000    
James River Coal Co.†
    193,360  
  50,000    
Kinross Gold Corp.
    787,500  
  52,000    
New Hope Corp. Ltd.
    267,856  
  550,000    
Newmont Mining Corp.
    30,019,000  
  25,000    
Peabody Energy Corp.
    1,799,000  
       
 
     
       
 
    68,999,816  
       
 
     
       
Publishing — 2.4%
       
  37,000    
Belo Corp., Cl. A†
    325,970  
  550,000    
Il Sole 24 Ore SpA†
    1,028,882  
  433,000    
Media General Inc., Cl. A†
    2,979,040  
  70,000    
Meredith Corp.
    2,374,400  
  3,160,000    
News Corp., Cl. A
    55,489,600  
  22,000    
News Corp., Cl. B
    409,640  
  155,000    
The E.W. Scripps Co., Cl. A†
    1,534,500  
  170,000    
The McGraw-Hill Companies Inc.
    6,698,000  
  27,000    
The New York Times Co., Cl. A†
    255,690  
       
 
     
       
 
    71,095,722  
       
 
     
       
Real Estate — 0.4%
       
  11,000    
Brookfield Asset Management Inc., Cl. A
    357,060  
  103,000    
Griffin Land & Nurseries Inc.
    3,314,540  
  36,000    
ProLogis
    575,280  
  250,000    
The St. Joe Co.†
    6,267,500  
       
 
     
       
 
    10,514,380  
       
 
     
See accompanying notes to schedule of investments.

7


 

The Gabelli Asset Fund
Schedule of Investments (Continued) — March 31, 2011 (Unaudited)
                 
            Market  
Shares         Value  
       
COMMON STOCKS (Continued)
       
       
Retail — 2.3%
       
  110,000    
Aaron’s Inc.†
  $ 2,789,600  
  250,000    
AutoNation Inc.†
    8,842,500  
  13,000    
AutoZone Inc.†
    3,556,280  
  260,000    
Coldwater Creek Inc.†
    686,400  
  125,000    
Costco Wholesale Corp.
    9,165,000  
  377,000    
CVS Caremark Corp.
    12,938,640  
  102,000    
HSN Inc.†
    3,267,060  
  900,000    
Lianhua Supermarket Holdings Ltd., Cl. H
    3,575,216  
  200,000    
Macy’s Inc.
    4,852,000  
  90,000    
Safeway Inc.
    2,118,600  
  20,000    
The Cheesecake Factory Inc.†
    601,800  
  51,000    
The Home Depot Inc.
    1,890,060  
  74,000    
The Kroger Co.
    1,773,780  
  50,000    
Wal-Mart Stores Inc.
    2,602,500  
  70,000    
Walgreen Co.
    2,809,800  
  60,000    
Whole Foods Market Inc.
    3,954,000  
  136,000    
Winn-Dixie Stores Inc.†
    971,040  
       
 
     
       
 
    66,394,276  
       
 
     
       
Specialty Chemicals — 1.7%
       
  22,500    
Airgas Inc.
    1,494,450  
  17,000    
Ashland Inc.
    981,920  
  10,172    
Chemtura Corp.†
    174,958  
  510,000    
Ferro Corp.†
    8,460,900  
  110,000    
General Chemical Group Inc.†
    1,375  
  136,000    
H.B. Fuller Co.
    2,921,280  
  145,000    
International Flavors & Fragrances Inc.
    9,033,500  
  40,000    
Material Sciences Corp.†
    288,400  
  2,000    
NewMarket Corp.
    316,440  
  590,000    
Omnova Solutions Inc.†
    4,643,300  
  297,000    
Sensient Technologies Corp.
    10,644,480  
  65,000    
The Lubrizol Corp.
    8,707,400  
  70,000    
Zep Inc.
    1,218,700  
       
 
     
       
 
    48,887,103  
       
 
     
       
Telecommunications — 3.2%
       
  7,000    
AboveNet Inc.
    454,020  
  145,000    
AT&T Inc.
    4,437,000  
  23,000    
Brasil Telecom SA, ADR
    621,230  
  14,000    
Brasil Telecom SA, Cl. C, ADR
    150,360  
  24,000    
CenturyLink Inc.
    997,200  
  1,170,000    
Cincinnati Bell Inc.†
    3,135,600  
  385,000    
Deutsche Telekom AG, ADR
    5,936,700  
  27,000    
France Telecom SA, ADR
    607,770  
  36,000    
Hellenic Telecommunications Organization SA
    402,029  
  11,000    
Hellenic Telecommunications Organization SA, ADR
    60,170  
  14,000    
Loral Space & Communications Inc.†
    1,085,700  
  107,000    
NII Holdings Inc.†
    4,458,690  
  235,000    
Portugal Telecom SGPS SA
    2,712,281  
  120,000    
Qwest Communications International Inc.†
    819,600  
  10,000    
SAVVIS Inc.†
    370,900  
  745,000    
Sprint Nextel Corp.†
    3,456,800  
  75,403    
Tele Norte Leste Participacoes SA, ADR
    1,321,815  
  3,100,000    
Telecom Italia SpA
    4,766,730  
  200,000    
Telecom Italia SpA, ADR
    3,076,000  
  279,000    
Telefonica SA, ADR
    7,036,380  
  40,000    
Telefonos de Mexico SAB de CV, Cl. L, ADR
    730,400  
  585,000    
Telephone & Data Systems Inc.
    19,714,500  
  500,000    
Telephone & Data Systems Inc., Special
    14,760,000  
  82,000    
tw telecom inc.†
    1,574,400  
  232,000    
Verizon Communications Inc.
    8,941,280  
  40,000    
VimpelCom Ltd., ADR
    564,800  
       
 
     
       
 
    92,192,355  
       
 
     
       
Transportation — 0.6%
       
  375,000    
AMR Corp.†
    2,422,500  
  330,000    
GATX Corp.
    12,757,800  
  2,000    
Huntington Ingalls Industries Inc.†
    83,000  
  4,000    
Kansas City Southern†
    217,800  
  39,100    
Providence and Worcester Railroad Co.
    653,948  
       
 
     
       
 
    16,135,048  
       
 
     
       
Wireless Communications — 1.0%
       
  91,000    
America Movil SAB de CV, Cl. L, ADR
    5,287,100  
  54,000    
Millicom International Cellular SA
    5,193,180  
  2,700    
NTT DoCoMo Inc.
    4,745,612  
  13,001    
Tim Participacoes SA, ADR
    567,494  
  185,000    
United States Cellular Corp.†
    9,525,650  
47 Vivo  
Participacoes SA
    1,886  
  30,000    
Vivo Participacoes SA, ADR
    1,211,400  
  79,075    
Vodafone Group plc, ADR
    2,273,406  
       
 
     
       
 
    28,805,728  
       
 
     
       
TOTAL COMMON STOCKS
    2,861,422,559  
       
 
     
       
WARRANTS — 0.0%
       
       
Automotive: Parts and Accessories — 0.0%
       
  14,727    
Federal-Mogul Corp., expire 12/27/14†
    5,891  
       
 
     
       
Broadcasting — 0.0%
       
  2,109    
Granite Broadcasting Corp., Ser. A, expire 06/04/12† (a)
    0  
  2,109    
Granite Broadcasting Corp., Ser. B, expire 06/04/12† (a)
    0  
       
 
     
       
 
    0  
       
 
     
See accompanying notes to schedule of investments.

8


 

The Gabelli Asset Fund
Schedule of Investments (Continued) — March 31, 2011 (Unaudited)
                 
            Market  
Shares         Value  
       
WARRANTS (Continued)
       
       
Hotels and Gaming — 0.0%
       
  200,000    
Indian Hotels Co. Ltd, expire 06/16/14† (b)
  $ 374,800  
       
 
     
       
TOTAL WARRANTS
    380,691  
       
 
     
                 
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)
    1,021,500  
       
 
     
       
CORPORATE BONDS — 0.0%
       
       
Specialty Chemicals — 0.0%
       
  200,000    
Chemtura Corp., Escrow, Zero Coupon, 11/17/20† (a)
    0  
       
 
     
       
U.S. GOVERNMENT OBLIGATIONS — 2.0%
       
  58,341,000    
U.S. Treasury Bills, 0.118% to 0.200%††, 04/28/11 to 09/22/11
    58,324,215  
       
 
     
       
TOTAL INVESTMENTS — 100.0%
(Cost $1,455,754,690)
  $ 2,921,148,965  
       
 
     
       
Aggregate tax cost
  $ 1,471,901,663  
       
 
     
       
Gross unrealized appreciation
  $ 1,511,178,566  
       
Gross unrealized depreciation
    (61,931,264 )
       
 
     
       
Net unrealized appreciation/depreciation
  $ 1,449,247,302  
       
 
     
 
(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 March 31, 2011, the market value of fair valued securities amounted to $1,386,356 or 0.05% of total investments.
 
(b)   Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2011, the market value of Rule 144A securities amounted to $14,010,000 or 0.48% of total investments.
 
(c)   Illiquid security.
 
  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.

9


 

The Gabelli Asset 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.
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.

10


 

The Gabelli Asset Fund
Notes to Schedule of Investments (Continued) (Unaudited)
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).
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 March 31, 2011 is as follows:
                                 
    Valuation Inputs    
    Level 1   Level 2 Other Significant   Level 3 Significant   Total Market Value
    Quoted Prices   Observable Inputs   Unobservable Inputs   at 3/31/11
INVESTMENTS IN SECURITIES:
                               
ASSETS (Market Value):
                               
Common Stocks:
                               
Broadcasting
  $ 40,515,353           $ 0     $ 40,515,353  
Consumer Products
    143,889,482     $ 254             143,889,736  
Energy and Utilities
    247,625,155             0       247,625,155  
Entertainment
    118,969,265             364,856       119,334,121  
Other Industries (a)
    2,310,058,194                   2,310,058,194  
 
Total Common Stocks
    2,861,057,449       254       364,856       2,861,422,559  
 
Warrants:
                               
Automotive: Parts and Accessories
    5,891                   5,891  
Broadcasting
                0       0  
Hotels and Gaming
          374,800             374,800  
 
Total Warrants
    5,891       374,800       0       380,691  
 
Convertible Corporate Bonds
          1,021,500             1,021,500  
Corporate Bonds
                0       0  
U.S. Government Obligations
          58,324,215             58,324,215  
 
TOTAL INVESTMENTS IN SECURITIES — ASSETS
  $ 2,861,063,340     $ 59,720,769     $ 364,856     $ 2,921,148,965  
 
 
(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 March 31, 2011.

11


 

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 determine fair value:
                                                                                 
                                                                            Net change
                                                                            in unrealized
                                                                            appreciation/
                                                                            depreciation
                                                                            during the
                                                                            period on
                            Change in                                           Level 3
    Balance   Accrued   Realized   unrealized                   Transfers   Transfers   Balance   investments
    as of   discounts/   gain/   appreciation/                   into   out of   as of   held at
    12/31/10   (premiums)   (loss)   depreciation   Purchases   Sales   Level 3†   Level 3†   3/31/11   3/31/11
 
INVESTMENTS IN SECURITIES:
                                                                               
ASSETS (Market Value):
                                                                               
Common Stocks:
                                                                               
Broadcasting
  $ 0     $     $     $     $     $     $     $     $ 0     $  
Energy and Utilities
    0                                                 0        
Entertainment
    364,856                                                 364,856        
 
Total Common Stocks
    364,856                                                 364,856        
 
Warrants:
                                                                               
Broadcasting
    0                                                 0        
Energy and Utilities
    79             (149,058 )     148,979             (0 )                        
Total Warrants
    79             (149,058 )     148,979             (0 )                 0        
Corporate Bonds
    0                                                 0        
 
TOTAL INVESTMENTS IN SECURITIES
  $ 364,935     $     $ (149,058 )   $ 148,979     $     $ (0 )   $     $     $ 364,856     $  
 
 
  The Fund’s policy is to recognize transfers into and transfers out of Level 3 as of the beginning of the reporting period.
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 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 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.

12


 

The Gabelli Asset Fund
Notes to Schedule of Investments (Continued) (Unaudited)
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. For the restricted and illiquid securities the Fund held as of March 31, 2011, 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 purposes 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 market 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 March 31, 2011, if any, are not accounted for as hedging instruments under GAAP.
     Swap Agreements. The Fund may enter into equity 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 an equity contract for difference 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 March 31, 2011, the Fund held no investments in equity contract for difference swap agreements.

13


 

The Gabelli Asset Fund
Notes to Schedule of Investments (Continued) (Unaudited)
     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 March 31, 2011, the Fund held 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.

14


 

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 Fund 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.

 


 

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
  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
President
  Medical Director
Anthony J. Colavita, P.C.
  Lawrence Hospital
 
   
James P. Conn
  Anthonie C. van Ekris
Former Chief Investment Officer
  Chairman
Financial Security Assurance
  BALMAC International, Inc.
Holdings Ltd.
   
 
  Salvatore J. Zizza
John D. Gabelli
  Chairman
Senior Vice President
  Zizza & Co., Ltd.
Gabelli & Company, Inc.
   
Kuni Nakamura
President
Advanced Polymer, Inc.
Officers
     
Bruce N. Alpert
  Peter D. Goldstein
President and Secretary
  Chief Compliance Officer
 
   
Agnes Mullady
   
Treasurer
   
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.
GAB405Q111SR
(IMAGE)
(IMAGE)
The Gabelli Asset Fund
Morningstar® rated The Gabelli Asset Fund Class AAA Shares 5 stars overall and 5 stars for the three, five and ten year periods ended March 31, 2011 among 1,757, 1,757, 1,471, and 816 Large Blend funds, respectively.
FIRST QUARTER REPORT MARCH 31, 2011


 


 

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 5/31/11
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 5/31/11
       
         
By (Signature and Title)*
  /s/ Agnes Mullady
 
Agnes Mullady, Principal Financial Officer and Treasurer
   
         
Date 5/31/11
       
 
*   Print the name and title of each signing officer under his or her signature.