-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, F5mU2ljrSSzT9KWpPM9ysvtlRiW12NZ9sGrrkycqlXNWjetzBuB44ecxGYgkD6P7 yGu8E3TYLTTRXnojMqhP8g== 0000935069-08-002221.txt : 20080905 0000935069-08-002221.hdr.sgml : 20080905 20080905131517 ACCESSION NUMBER: 0000935069-08-002221 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20080630 FILED AS OF DATE: 20080905 DATE AS OF CHANGE: 20080905 EFFECTIVENESS DATE: 20080905 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GABELLI VALUE FUND INC CENTRAL INDEX KEY: 0000853438 IRS NUMBER: 061283268 STATE OF INCORPORATION: CT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-05848 FILM NUMBER: 081058161 BUSINESS ADDRESS: STREET 1: ONE CORPORATE CENTER CITY: RYE STATE: NY ZIP: 10580 BUSINESS PHONE: 9149215070 MAIL ADDRESS: STREET 1: ONE CORPORATE CENTER CITY: RYE STATE: NY ZIP: 10580 0000853438 S000001076 THE GABELLI VALUE FUND INC. C000002902 CLASS A GABVX C000002903 CLASS B GVCBX C000002904 CLASS C GVCCX C000034316 CLASS I N-CSRS 1 value_ncsrs0608.txt GABELLI VALUE 6-30-08 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-05848 The Gabelli Value Fund Inc. (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: June 30, 2008 Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. The Report to Shareholders is attached herewith. THE GABELLI VALUE FUND INC. SEMI-ANNUAL REPORT JUNE 30, 2008 TO OUR SHAREHOLDERS, During the second quarter of 2008, The Gabelli Value Fund Inc.'s (the "Fund") net asset value ("NAV") per share declined 1.7%, while the Standard & Poor's ("S&P") 500 Index was down 2.7% and the Dow Jones Industrial Average dropped 6.8%. For the six month period ended June 30, 2008, the Fund was down 14.5% versus decreases of 11.9% and 13.3% for the S&P 500 Index and the Dow Jones Industrial Average, respectively. Enclosed are the financial statements and the investment portfolio as of June 30, 2008. COMPARATIVE RESULTS
AVERAGE ANNUAL RETURNS THROUGH JUNE 30, 2008 (a) Since Year to Inception Quarter Date 1 Year 3 Year 5 Year 10 Year 15 Year (9/29/89) ---------- ----------- ----------- --------- --------- ---------- ---------- ---------- GABELLI VALUE FUND CLASS A ..... (1.71)% (14.54)% (18.71)% 2.85% 7.47% 6.11% 11.34% 11.26% (7.36)(b) (19.46)(b) (23.38)(b) 0.84(b) 6.21(b) 5.49(b) 10.90(b) 10.91(b) S&P 500 Index .................. (2.72) (11.90) (13.11) 4.40 7.58 2.88 9.21 9.47 Dow Jones Industrial Average ... (6.84) (13.29) (13.27) 5.81 7.23 4.54 10.48 10.59 Nasdaq Composite Index ......... 0.61 (13.55) (11.92) 3.69 7.16 1.93 8.19 8.78 Class B ........................ (1.94) (14.88) (19.29) 2.09 6.68 5.45 10.88 10.89 (6.84)(c) (19.13)(c) (23.32)(c) 1.12(c) 6.37(c) 5.45 10.88 10.89 Class C ........................ (1.86) (14.86) (19.26) 2.12 6.69 5.48 10.90 10.91 (2.84)(d) (15.71)(d) (20.06)(d) 2.12 6.69 5.48 10.90 10.91 Class I ........................ (1.64) (14.42) (18.59) 2.90 7.50 6.13 11.35 11.27
IN THE CURRENT PROSPECTUS, THE EXPENSE RATIOS FOR CLASS A, B, C, AND I SHARES ARE 1.39%, 2.14%, 2.14%, AND 1.14%, RESPECTIVELY. CLASS I SHARES HAVE NO 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 and reinvestment of distributions and are net of expenses. Investment returns and the principal value of an investment will fluctuate. When shares are redeemed, they may be worth more or less than their original cost. Performance returns for periods less than one year are not annualized. Current performance may be lower or higher than the performance data presented. Visit www.gabelli.com for performance information as of the most recent month end. INVESTORS SHOULD CAREFULLY CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES, AND EXPENSES OF THE FUND BEFORE INVESTING. THE PROSPECTUS CONTAINS MORE INFORMATION ABOUT THIS AND OTHER MATTERS AND SHOULD BE READ CAREFULLY BEFORE INVESTING. The Class A Share NAVs per share are used to calculate performance for the periods prior to the issuance of Class B Shares and Class C Shares on March 15, 2000 and the 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. The S&P 500 Index is an unmanaged indicator of stock market performance. The Dow Jones Industrial Average is an unmanaged index of 30 large industrial stocks and the Nasdaq Composite Index is unmanaged indicators of stock market performance. Dividends are considered reinvested. You cannot invest directly in an index. (b) The maximum sales charge on Class A Shares is 5.75%. (c) Performance results include the deferred sales charges for the Class B Shares upon redemption at the end of the quarter, year to date, one year, three year, and five year periods of 5%, 5%, 5%, 3%, and 2%, respectively, of the Fund's NAV 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. We have separated the portfolio manager's commentary from the financial statements and investment portfolio due to corporate governance regulations stipulated by the Sarbanes-Oxley Act of 2002. We have done this to ensure that the content of the portfolio manager's commentary is unrestricted. The financial statements and investment portfolio are mailed separately from the commentary. Both the commentary and the financial statements, including the portfolio of investments, will be available on our website at www.gabelli.com/funds. THE GABELLI VALUE FUND INC. DISCLOSURE OF FUND EXPENSES (UNAUDITED) For the Six Month Period from January 1, 2008 through June 30, 2008 EXPENSE TABLE We believe it is important for you to understand the impact of fees and expenses regarding your investment. All mutual funds have operating expenses. As a shareholder of a fund, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund's gross income, directly reduce the investment return of a fund. When a fund's expenses are expressed as a percentage of its average net assets, this figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period. The Expense Table below illustrates your Fund's costs in two ways: ACTUAL FUND RETURN: This section provides information about actual account values and actual expenses. You may use this section to help you to estimate the actual expenses that you paid over the period after any fee waivers and expense reimbursements. The "Ending Account Value" shown is derived from the Fund's ACTUAL return during the past six months, and the "Expenses Paid During Period" shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your Fund under the heading "Expenses Paid During Period" to estimate the expenses you paid during this period. HYPOTHETICAL 5% RETURN: This section provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio. It assumes a hypothetical annualized return of 5% before expenses during the period shown. In this case - because the hypothetical return used is NOT the Fund's actual return - the results do not apply to your investment and you cannot use the hypothetical account value and expense to estimate the actual ending account balance or expenses you paid for the period. This example is useful in making comparisons of the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads), redemption fees, or exchange fees, if any, which are described in the Prospectus. If these costs were applied to your account, your costs would be higher. Therefore, the 5% hypothetical return is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Beginning Ending Annualized Expenses Account Value Account Value Expense Paid During 01/01/08 06/30/08 Ratio Period* --------------- --------------- ------------ ------------- THE GABELLI VALUE FUND INC. ACTUAL FUND RETURN Class A $ 1,000.00 $ 854.60 1.42% $ 6.55 Class B $ 1,000.00 $ 851.20 2.17% $ 9.99 Class C $ 1,000.00 $ 851.40 2.17% $ 9.99 Class I** $ 1,000.00 $ 855.80 1.17% $ 5.10 HYPOTHETICAL 5% RETURN Class A $ 1,000.00 $ 1,017.80 1.42% $ 7.12 Class B $ 1,000.00 $ 1,014.07 2.17% $ 10.87 Class C $ 1,000.00 $ 1,014.07 2.17% $ 10.87 Class I $ 1,000.00 $ 1,019.05 1.17% $ 5.87
- ---------- * Expenses are equal to the Fund's annualized expense ratio for the last six months multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by 366. ** Class I Shares were first issued on January 11, 2008. Account values and expense ratios for the Actual Fund Return are calculated from January 11, 2008 through June 30, 2008. 2 SUMMARY OF PORTFOLIO HOLDINGS (UNAUDITED) The following table presents portfolio holdings as a percent of net assets as of June 30, 2008: THE GABELLI VALUE FUND INC. Entertainment .............................. 15.1% Cable and Satellite ........................ 11.4% Metals and Mining .......................... 7.5% Food and Beverage .......................... 7.0% Telecommunications ......................... 6.5% Diversified Industrial ..................... 5.8% Financial Services ......................... 4.8% Equipment and Supplies ..................... 4.8% Consumer Products .......................... 4.7% Publishing ................................. 4.5% Environmental Services ..................... 3.6% Broadcasting ............................... 3.5% Energy and Utilities ....................... 3.1% Electronics ................................ 2.8% Communications Equipment ................... 1.7% Automotive: Parts and Accessories .......... 1.6% Hotels and Gaming .......................... 1.4% Machinery .................................. 1.3% Consumer Services .......................... 1.3% Specialty Chemicals ........................ 1.2% Business Services .......................... 1.2% Aerospace .................................. 1.1% Retail ..................................... 0.9% Aviation: Parts and Services ............... 0.8% Health Care ................................ 0.7% Real Estate ................................ 0.6% Computer Software and Services ............. 0.5% Agriculture ................................ 0.4% Wireless Communications .................... 0.3% Automotive ................................. 0.1% Manufactured Housing ....................... 0.0% Transportation ............................. 0.0% Other Assets and Liabilities (Net) ......... (0.2)% ------ 100.0% ======
The Fund files a complete schedule of portfolio holdings with the Securities and Exchange Commission (the "SEC") for the first and third quarters of each fiscal year on Form N-Q, the last of which was filed for the quarter ended March 31, 2008. Shareholders may obtain this information at www.gabelli.com or by calling the Fund at 800-GABELLI (800-422-3554).The Fund's Form N-Q is available on the SEC's website at www.sec.gov and may also be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. PROXY VOTING The Fund files Form N-PX with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. A description of the Fund's proxy voting policies, procedures, and how the Fund voted proxies relating to portfolio securities is available without charge, upon request, by (i) calling 800-GABELLI (800-422-3554); (ii) writing to The Gabelli Funds at One Corporate Center, Rye, NY 10580-1422; or (iii) visiting the SEC's website at www.sec.gov. 3 THE GABELLI VALUE FUND INC. SCHEDULE OF INVESTMENTS -- JUNE 30, 2008 (UNAUDITED)
MARKET SHARES COST VALUE - ------------- ------------- ------------- COMMON STOCKS -- 100.1% AEROSPACE -- 1.1% 1,000 Lockheed Martin Corp. .............................. $ 25,800 $ 98,660 1,000,000 Rolls-Royce Group plc+ ............................. 7,007,796 6,802,110 89,600,000 Rolls-Royce Group plc, Cl. B ....................... 177,966 178,468 ------------- ------------- 7,211,562 7,079,238 ------------- ------------- AGRICULTURE -- 0.4% 65,000 Archer-Daniels-Midland Co. ......................... 1,643,645 2,193,750 500 The Mosaic Co.+ .................................... 8,345 72,350 ------------- ------------- 1,651,990 2,266,100 ------------- ------------- AUTOMOTIVE -- 0.1% 10,000 Navistar International Corp.+ ...................... 309,727 658,200 ------------- ------------- AUTOMOTIVE: PARTS AND ACCESSORIES -- 1.6% 2,000 BERU AG ............................................ 218,785 235,539 38,000 China Yuchai International Ltd. .................... 300,576 378,100 250,000 Genuine Parts Co. .................................. 6,781,559 9,920,000 16,000 Proliance International Inc.+ ...................... 70,925 15,200 ------------- ------------- 7,371,845 10,548,839 ------------- ------------- AVIATION: PARTS AND SERVICES -- 0.8% 43,000 Curtiss-Wright Corp. ............................... 764,822 1,923,820 340,000 GenCorp Inc.+ ...................................... 3,135,471 2,434,400 280,000 The Fairchild Corp., Cl. A+ ........................ 1,037,006 590,800 ------------- ------------- 4,937,299 4,949,020 ------------- ------------- BROADCASTING -- 3.5% 1,024,000 CBS Corp., Cl. A ................................... 19,458,256 19,947,520 135,000 Gray Television Inc. ............................... 1,453,712 387,450 182,000 Liberty Media Corp. - Capital, Cl. A+ .............. 1,832,079 2,620,800 ------------- ------------- 22,744,047 22,955,770 ------------- ------------- BUSINESS SERVICES -- 1.2% 13,000 Akamai Technologies Inc.+ .......................... 431,568 452,270 40,000 ChoicePoint Inc.+ .................................. 1,721,076 1,928,000 127,000 Intermec Inc.+ ..................................... 2,829,868 2,677,160 35,700 Nashua Corp.+ ...................................... 295,578 357,000 32,500 The Brink's Co. .................................... 1,885,951 2,126,150 ------------- ------------- 7,164,041 7,540,580 ------------- ------------- CABLE AND SATELLITE -- 11.4% 130,000 Adelphia Communications Corp., Cl. A+ (a) .......... 91,925 0 130,000 Adelphia Communications Corp., Cl. A, Escrow+ (a) .. 0 0 130,000 Adelphia Recovery Trust+ (a) ....................... 0 0 1,730,000 Cablevision Systems Corp., Cl. A+ .................. 7,066,676 39,098,000 42,000 Comcast Corp., Cl. A, Special ...................... 925,070 787,920 150,000 DISH Network Corp., Cl. A+ ......................... 3,985,701 4,392,000 30,000 EchoStar Corp., Cl. A+ ............................. 874,910 936,600 240,000 Liberty Global Inc., Cl. A+ ........................ 4,255,372 7,543,200 365,000 Rogers Communications Inc., Cl. B .................. 1,160,709 14,110,900 280,000 The DIRECTV Group Inc.+ ............................ 5,030,889 7,254,800 ------------- ------------- 23,391,252 74,123,420 ------------- ------------- COMMUNICATIONS EQUIPMENT -- 1.7% 70,000 Alcatel-Lucent, ADR+ ............................... 764,285 422,800 407,000 Corning Inc......................................... 3,748,367 9,381,350 30,000 Motorola Inc. ...................................... 210,940 220,200 130,000 Nortel Networks Corp.+ ............................. 2,827,572 1,068,600 ------------- ------------- 7,551,164 11,092,950 ------------- ------------- COMPUTER SOFTWARE AND SERVICES -- 0.5% 8,000 Alibaba.com Ltd.+ .................................. 14,075 11,286 60,000 Metavante Technologies Inc.+ ....................... 1,413,592 1,357,200 90,000 Yahoo! Inc.+ ....................................... 2,590,551 1,859,400 ------------- ------------- 4,018,218 3,227,886 ------------- ------------- CONSUMER PRODUCTS -- 4.7% 74,000 Energizer Holdings Inc.+ ........................... 1,736,294 5,408,660 500 Givaudan SA ........................................ 135,440 446,870 125,000 Hartmarx Corp.+ .................................... 564,094 271,250 3,000 National Presto Industries Inc. .................... 89,483 192,540 136,000 Pactiv Corp.+ ...................................... 1,298,598 2,887,280 1,050,000 Swedish Match AB ................................... 14,137,612 21,531,935 3,000 Wolverine World Wide Inc. .......................... 29,203 80,010 ------------- ------------- 17,990,724 30,818,545 ------------- ------------- CONSUMER SERVICES -- 1.3% 65,000 IAC/InterActiveCorp+ ............................... 1,782,568 1,253,200 300,000 Liberty Media Corp. - Interactive, Cl. A+ .......... 5,516,811 4,428,000 180,000 Rollins Inc. ....................................... 858,555 2,667,600 ------------- ------------- 8,157,934 8,348,800 ------------- ------------- DIVERSIFIED INDUSTRIAL -- 5.8% 43,000 Ampco-Pittsburgh Corp. ............................. 215,015 1,912,640 24,000 Cooper Industries Ltd., Cl. A ...................... 803,600 948,000 182,000 Crane Co. .......................................... 4,792,658 7,012,460 60,000 Griffon Corp.+ ..................................... 1,010,241 525,600 315,000 Honeywell International Inc. ....................... 9,287,382 15,838,200 121,000 ITT Corp. .......................................... 4,997,798 7,662,930 208,000 Katy Industries Inc.+ .............................. 1,546,689 405,600 1,000 Pentair Inc. ....................................... 31,908 35,020 92,000 Tyco International Ltd. ............................ 4,220,889 3,683,680 ------------- ------------- 26,906,180 38,024,130 ------------- -------------
See accompanying notes to financial statements. 4 THE GABELLI VALUE FUND INC. SCHEDULE OF INVESTMENTS (CONTINUED) -- JUNE 30, 2008 (UNAUDITED)
MARKET SHARES COST VALUE - ------------- ------------- ------------- COMMON STOCKS (CONTINUED) ELECTRONICS -- 2.8% 200,000 LSI Corp.+ ......................................... $ 1,178,577 $ 1,228,000 217,000 Texas Instruments Inc. ............................. 5,465,827 6,110,720 4,000 Thermo Fisher Scientific Inc.+ ..................... 92,199 222,920 215,000 Thomas & Betts Corp.+ .............................. 4,057,129 8,137,750 70,000 Tyco Electronics Ltd. .............................. 2,487,143 2,507,400 ------------- ------------- 13,280,875 18,206,790 ------------- ------------- ENERGY AND UTILITIES -- 3.0% 5,000 Allegheny Energy Inc. .............................. 61,743 250,550 12,000 Chevron Corp. ...................................... 723,710 1,189,560 150,500 ConocoPhillips ..................................... 4,107,004 14,205,695 5,420 Mirant Corp.+ ...................................... 25,619 212,193 200,000 Mirant Corp., Escrow+ (a) .......................... 0 0 100,000 Northeast Utilities ................................ 1,922,987 2,553,000 10,000 Puget Energy Inc. .................................. 275,000 239,900 40,000 Southwest Gas Corp. ................................ 959,676 1,189,200 ------------- ------------- 8,075,739 19,840,098 ------------- ------------- ENTERTAINMENT -- 15.1% 8,570 Chestnut Hill Ventures+ (a) ........................ 233,241 241,245 397,000 Discovery Holding Co., Cl. A+ ...................... 5,188,432 8,718,120 60,000 Dover Motorsports Inc. ............................. 309,314 305,400 302,000 Grupo Televisa SA, ADR ............................. 2,775,988 7,133,240 740,000 Liberty Media Corp. - Entertainment, Cl. A+ ........ 9,658,132 17,930,200 106,000 Macrovision Solutions Corp.+ ....................... 1,914,578 1,585,760 1,222,000 Time Warner Inc. ................................... 17,241,181 18,085,600 40,000 Triple Crown Media Inc.+ ........................... 178,465 18,800 1,010,000 Viacom Inc., Cl. A+ ................................ 30,067,324 30,916,100 363,000 Vivendi ............................................ 4,858,454 13,773,814 ------------- ------------- 72,425,109 98,708,279 ------------- ------------- ENVIRONMENTAL SERVICES -- 3.6% 357,000 Republic Services Inc. ............................. 4,393,210 10,602,900 347,000 Waste Management Inc. .............................. 8,308,100 13,085,370 ------------- ------------- 12,701,310 23,688,270 ------------- ------------- EQUIPMENT AND SUPPLIES -- 4.8% 200,000 CIRCOR International Inc. .......................... 2,246,238 9,798,000 102,000 Flowserve Corp. .................................... 1,342,290 13,943,400 100,000 Gerber Scientific Inc.+ ............................ 728,983 1,138,000 100,000 GrafTech International Ltd.+ ....................... 1,250,825 2,683,000 150,000 Watts Water Technologies Inc., Cl. A ............... 2,155,289 3,735,000 ------------- ------------- 7,723,625 31,297,400 ------------- ------------- FINANCIAL SERVICES -- 4.8% 502,000 American Express Co. ............................... 16,264,798 18,910,340 40,000 Ameriprise Financial Inc. .......................... 1,047,544 1,626,800 100,000 Citigroup Inc. ..................................... 4,720,684 1,676,000 27,000 Deutsche Bank AG ................................... 1,569,800 2,304,450 30,000 H&R Block Inc. ..................................... 601,319 642,000 18,000 Interactive Brokers Group Inc., Cl. A+ ............. 468,122 578,340 5,438 JPMorgan Chase & Co. ............................... 229,783 186,578 29,000 Legg Mason Inc. .................................... 2,353,866 1,263,530 12,000 SAFECO Corp. ....................................... 803,346 805,920 70,000 SLM Corp.+ ......................................... 1,791,426 1,354,500 110,000 The Phoenix Companies Inc. ......................... 1,214,394 837,100 53,000 Wells Fargo & Co. .................................. 1,555,879 1,258,750 ------------- ------------- 32,620,961 31,444,308 ------------- ------------- FOOD AND BEVERAGE -- 7.0% 11,000 Cadbury plc, ADR ................................... 585,540 553,520 27,000 Constellation Brands Inc., Cl. A+ .................. 590,876 536,220 10,000 Corn Products International Inc. ................... 123,275 491,100 40,000 Davide Campari-Milano SpA .......................... 406,275 334,415 40,000 Del Monte Foods Co. ................................ 303,364 284,000 201,000 Diageo plc, ADR .................................... 7,742,232 14,847,870 50,000 Dr. Pepper Snapple Group Inc.+ ..................... 1,305,080 1,049,000 26,000 Flowers Foods Inc. ................................. 140,959 736,840 200,000 Fomento Economico Mexicano SAB de CV, ADR .......... 2,449,908 9,102,000 70,000 General Mills Inc. ................................. 3,596,140 4,253,900 60,000 H.J. Heinz Co. ..................................... 1,928,599 2,871,000 70,000 Kerry Group plc, Cl. A ............................. 797,221 2,080,772 2,000 Meiji Seika Kaisha Ltd. ............................ 10,116 8,532 105,000 PepsiAmericas Inc. ................................. 1,513,475 2,076,900 16,000 Pernod-Ricard SA ................................... 1,778,901 1,643,732 14,000 Remy Cointreau SA .................................. 897,443 765,532 45,000 The Hershey Co. .................................... 1,878,155 1,475,100 25,000 Wm. Wrigley Jr. Co. ................................ 1,653,598 1,944,500 3,750 Wm. Wrigley Jr. Co., Cl. B ......................... 193,262 291,750 ------------- ------------- 27,894,419 45,346,683 ------------- ------------- HEALTH CARE -- 0.7% 98,000 Advanced Medical Optics Inc.+ ...................... 2,937,920 1,836,520 4,000 Chemed Corp. ....................................... 125,792 146,440 12,000 Covidien Ltd. ...................................... 499,814 574,680 100,000 Pfizer Inc. ........................................ 2,487,765 1,747,000 ------------- ------------- 6,051,291 4,304,640 ------------- ------------- HOTELS AND GAMING -- 1.4% 52,900 Dover Downs Gaming & Entertainment Inc. ............ 328,276 339,618 180,000 Gaylord Entertainment Co.+ ......................... 5,032,335 4,312,800
See accompanying notes to financial statements. 5 THE GABELLI VALUE FUND INC. SCHEDULE OF INVESTMENTS (CONTINUED) -- JUNE 30, 2008 (UNAUDITED)
MARKET SHARES COST VALUE - ------------- ------------- ------------- COMMON STOCKS (CONTINUED) HOTELS AND GAMING (CONTINUED) 352,941 Ladbrokes plc ...................................... $ 3,502,005 $ 1,804,951 12,000 Las Vegas Sands Corp.+ ............................. 665,036 569,280 60,000 MGM Mirage+ ........................................ 2,009,429 2,033,400 ------------- ------------- 11,537,081 9,060,049 ------------- ------------- MACHINERY -- 1.3% 85,000 CNH Global NV ...................................... 1,596,781 2,887,450 69,000 Deere & Co. ........................................ 1,439,849 4,976,970 27,000 Zebra Technologies Corp., Cl. A+ ................... 930,868 881,280 ------------- ------------- 3,967,498 8,745,700 ------------- ------------- MANUFACTURED HOUSING -- 0.0% 50,000 Champion Enterprises Inc.+ ......................... 469,208 292,500 ------------- ------------- METALS AND MINING -- 7.5% 478,000 Barrick Gold Corp. ................................. 7,651,550 21,749,000 123,133 Kinross Gold Corp. ................................. 1,119,196 2,907,170 469,000 Newmont Mining Corp. ............................... 9,057,369 24,463,040 ------------- ------------- 17,828,115 49,119,210 ------------- ------------- PUBLISHING -- 4.5% 12,000 AH Belo Corp., Cl. A ............................... 207,792 68,400 135,000 Belo Corp., Cl. A .................................. 1,866,009 986,850 848,000 Media General Inc., Cl. A .......................... 16,671,680 10,133,600 65,000 Meredith Corp. ..................................... 1,305,657 1,838,850 608,000 News Corp., Cl. A .................................. 9,245,826 9,144,320 16,000 PRIMEDIA Inc. ...................................... 274,913 74,560 165,000 The E.W. Scripps Co., Cl. A ........................ 5,714,215 6,854,100 ------------- ------------- 35,286,092 29,100,680 ------------- ------------- REAL ESTATE -- 0.6% 134,300 Griffin Land & Nurseries Inc. ...................... 1,598,131 4,123,010 ------------- ------------- RETAIL -- 0.9% 50,000 Ingles Markets Inc., Cl. A. ........................ 572,181 1,166,500 127,000 Safeway Inc. ....................................... 2,586,888 3,625,850 30,000 SUPERVALU Inc. ..................................... 850,468 926,700 4,000 Wal-Mart Stores Inc. ............................... 178,418 224,800 ------------- ------------- 4,187,955 5,943,850 ------------- ------------- SPECIALTY CHEMICALS -- 1.2% 215,000 Ferro Corp. ........................................ 4,526,490 4,033,400 120,000 Hercules Inc. ...................................... 1,023,836 2,031,600 16,000 International Flavors & Fragrances Inc. ............ 726,220 624,960 3,500 Monsanto Co. ....................................... 149,303 442,540 10,000 Rohm & Haas Co. .................................... 487,259 464,400 10,000 Sensient Technologies Corp. ........................ 197,746 281,600 8,065 Tronox Inc., Cl. B ................................ 78,763 24,356 ------------- ------------- 7,189,617 7,902,856 ------------- ------------- TELECOMMUNICATIONS -- 6.5% 645,000 Cincinnati Bell Inc.+ .............................. 2,473,255 2,567,100 22,000 Embarq Corp. ....................................... 579,180 1,039,940 150,000 Qwest Communications International Inc. ............ 367,000 589,500 1,345,000 Sprint Nextel Corp. ................................ 17,491,991 12,777,500 404,000 Telephone & Data Systems Inc. ...................... 8,792,582 19,097,080 143,000 Telephone & Data Systems Inc., Special ............. 3,191,333 6,306,300 ------------- ------------- 32,895,341 42,377,420 ------------- ------------- TRANSPORTATION -- 0.0% 94,000 Grupo TMM SA, Cl. A, ADR+ .......................... 726,005 175,780 ------------- ------------- WIRELESS COMMUNICATIONS -- 0.3% 40,000 United States Cellular Corp.+ ...................... 1,880,524 2,262,000 ------------- ------------- TOTAL COMMON STOCKS 437,744,879 653,573,001 ------------- ------------- WARRANTS -- 0.1% ENERGY AND UTILITIES -- 0.1% 17,405 Mirant Corp., Ser. A, expire 01/03/11+ ............. 35,380 312,072 ------------- ------------- TOTAL INVESTMENTS -- 100.2% ............................ $ 437,780,259 653,885,073 ============= OTHER ASSETS AND LIABILITIES (NET) -- (0.2)% (1,308,040) ------------- NET ASSETS -- 100.0% ............................... $ 652,577,033 =============
- ---------- (a) Security fair valued under procedures established by the Board of Directors. The procedures may include reviewing available financial information about the company and reviewing valuation of comparable securities and other factors on a regular basis. At June 30, 2008, the market value of fair valued securities amounted to $241,245 or 0.04% of net assets. + Non-income producing security. ADR American Depositary Receipt See accompanying notes to financial statements. 6 THE GABELLI VALUE FUND INC. STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 2008 (UNAUDITED) ASSETS: Investments, at value (cost $437,780,259) .............................................. $ 653,885,073 Cash ................................................................................... 78,866 Receivable for investments sold ........................................................ 1,236,721 Receivable for Fund shares sold ........................................................ 169,389 Dividends and interest receivable ...................................................... 588,010 Prepaid expense ........................................................................ 40,428 --------------- TOTAL ASSETS ........................................................................... 655,998,487 --------------- LIABILITIES: Payable for Fund shares redeemed ....................................................... 2,275,803 Payable for investment advisory fees ................................................... 568,960 Payable for distribution fees .......................................................... 154,455 Payable for accounting fees ............................................................ 3,750 Payable for shareholder services fees .................................................. 236,906 Other accrued expenses ................................................................. 181,580 --------------- TOTAL LIABILITIES ...................................................................... 3,421,454 --------------- NET ASSETS applicable to 45,621,353 shares outstanding ................................. $ 652,577,033 =============== NET ASSETS CONSIST OF: Paid-in capital, each class at $0.001 par value ........................................ $ 426,239,915 Accumulated net investment income ...................................................... 899,260 Accumulated net realized gain on investments and foreign currency transactions ......... 9,333,035 Net unrealized appreciation on investments ............................................. 216,104,814 Net unrealized appreciation on foreign currency translations............................ 9 --------------- NET ASSETS ............................................................................. $ 652,577,033 =============== SHARES OF CAPITAL STOCK: CLASS A: Net Asset Value and redemption price per share ($631,694,872 / 44,048,854 shares outstanding; 100,000,000 shares authorized) ........................................... $ 14.34 =============== Maximum offering price per share (NAV / .9425, based on maximum sales charge of 5.75% of the offering price) .......................................................... $ 15.21 =============== CLASS B: Net Asset Value and offering price per share ($7,759,363 / 589,571 shares outstanding; 100,000,000 shares authorized) ........................................... $ 13.16(a) CLASS C: Net Asset Value and offering price per share ($11,045,965 / 838,290 shares outstanding; 50,000,000 shares authorized) ............................................ $ 13.18(a) =============== CLASS I: Net Asset Value and redemption price per share ($2,076,833 / 144,638 shares outstanding; 50,000,000 shares authorized) ............................................ $ 14.36 ===============
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2008 (UNAUDITED) INVESTMENT INCOME: Dividends (net of foreign taxes of $ 279,730) .......................................... $ 6,053,375 Interest ............................................................................... 39,866 --------------- TOTAL INVESTMENT INCOME ................................................................ 6,093,241 --------------- EXPENSES: Investment advisory fees ............................................................... 3,612,432 Distribution fees - Class A ............................................................ 873,714 Distribution fees - Class B ............................................................ 45,303 Distribution fees - Class C ............................................................ 64,137 Shareholder services fees .............................................................. 275,478 Shareholder communications expenses .................................................... 105,522 Custodian fees ......................................................................... 59,639 Legal and audit fees ................................................................... 45,963 Directors' fees ........................................................................ 34,443 Accounting fees ........................................................................ 22,500 Registration expenses .................................................................. 15,860 Interest expense ....................................................................... 3,232 Miscellaneous expenses ................................................................. 35,899 --------------- TOTAL EXPENSES ......................................................................... 5,194,122 Less: Custodian fee credits ............................................................ (141) --------------- NET EXPENSES ........................................................................... 5,193,981 --------------- NET INVESTMENT INCOME .................................................................. 899,260 --------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: Net realized gain on investments ....................................................... 16,140,025 Net realized loss on foreign currency transactions ..................................... (14,096) --------------- Net realized gain on investments and foreign currency transactions ..................... 16,125,929 --------------- Net change in unrealized appreciation/depreciation on investments ...................... (133,729,964) Net change in unrealized appreciation/depreciation on foreign currency translations .... (375) --------------- Net change in unrealized appreciation/depreciation on investments and foreign currency translations ......................................................... (133,730,339) --------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY ............ (117,604,410) --------------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ................................... $ (116,705,150) ===============
- ---------- (a) Redemption price varies based on the length of time held. See accompanying notes to financial statements. 7 THE GABELLI VALUE FUND INC. STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED (UNAUDITED) DECEMBER 31, 2007 ---------------- ----------------- OPERATIONS: Net investment income (loss) ......................................... $ 899,260 $ (1,961,922) Net realized gain on investments and foreign currency transactions ............................................... 16,125,929 75,551,053 Net change in unrealized appreciation/depreciation on investments and foreign currency translations .................................. (133,730,339) (31,123,073) ---------------- ----------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...... (116,705,150) 42,466,058 ---------------- ----------------- DISTRIBUTIONS TO SHAREHOLDERS: Net realized gains on investments and foreign currency transactions Class A ............................................................. -- (72,089,295) Class B ............................................................. -- (1,048,345) Class C ............................................................. -- (1,434,056) ---------------- ----------------- -- (74,571,696) ---------------- ----------------- Return of capital Class A ............................................................. -- (50,036) Class B ............................................................. -- (728) Class C ............................................................. -- (995) ---------------- ----------------- -- (51,759) ---------------- ----------------- TOTAL DISTRIBUTIONS TO SHAREHOLDERS .................................. -- (74,623,455) ---------------- ----------------- CAPITAL SHARE TRANSACTIONS: Class A ............................................................. (55,984,813) (29,345,720) Class B ............................................................. (1,499,777) (1,778,459) Class C ............................................................. (1,553,338) 779,864 Class I ............................................................. 2,280,399 -- ---------------- ----------------- NET DECREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS ............ (56,757,529) (30,344,315) ---------------- ----------------- REDEMPTION FEES ....................................................... 312 2,293 ---------------- ----------------- NET DECREASE IN NET ASSETS ............................................ (173,462,367) (62,499,419) NET ASSETS: Beginning of period ................................................... 826,039,400 888,538,819 ---------------- ----------------- End of period (including undistributed net investment income of $899,260 and $0, respectively) ....................................... $ 652,577,033 $ 826,039,400 ================ =================
See accompanying notes to financial statements. 8 THE GABELLI VALUE FUND INC. FINANCIAL HIGHLIGHTS Selected data for a share of capital stock outstanding throughout each period:
INCOME FROM INVESTMENT OPERATIONS DISTRIBUTIONS ------------------------------------------- ----------------------------------------------------- Net Net Asset Net Realized and Total Net Period Value, Investment Unrealized from Net Realized Return Ended Beginning Income/ Gain/(Loss) on Investment Investment Gain on of Total December 31 of Period (Loss)(a) Investments Operations Income Investments Capital Distributions - ----------- ----------- ------------ --------------- ------------ ------------ ----------- ----------- ------------- CLASS A 2008 (b) $ 16.78 $ 0.02 $ (2.46) $ (2.44) -- -- -- -- 2007 17.61 (0.04) 0.86 0.82 -- $ (1.65) $ 0.00(c) $ (1.65) 2006 18.11 0.03 3.92 3.95 $ (0.03) (4.42) -- (4.45) 2005 19.49 0.02 (0.05) (0.03) (0.01) (1.34) -- (1.35) 2004 17.97 (0.02) 2.31 2.29 -- (0.77) -- (0.77) 2003 13.81 (0.05) 4.45 4.40 -- (0.24) -- (0.24) CLASS B 2008 (b) $ 15.46 $ (0.03) $ (2.27) $ (2.30) -- -- -- -- 2007 16.46 (0.17) 0.82 0.65 -- $ (1.65) $ 0.00(c) $ (1.65) 2006 17.28 (0.10) 3.70 3.60 -- (4.42) -- (4.42) 2005 18.79 (0.12) (0.05) (0.17) -- (1.34) -- (1.34) 2004 17.47 (0.15) 2.24 2.09 -- (0.77) -- (0.77) 2003 13.53 (0.17) 4.35 4.18 -- (0.24) -- (0.24) CLASS C 2008 (b) $ 15.48 $ (0.03) $ (2.27) $ (2.30) -- -- -- -- 2007 16.47 (0.17) 0.83 0.66 -- $ (1.65) $ 0.00(c) $ (1.65) 2006 17.29 (0.11) 3.71 3.60 -- (4.42) -- (4.42) 2005 18.80 (0.12) (0.05) (0.17) -- (1.34) -- (1.34) 2004 17.49 (0.15) 2.23 2.08 -- (0.77) -- (0.77) 2003 13.54 (0.17) 4.36 4.19 -- (0.24) -- (0.24) CLASS I 2008 (g) $ 15.87 $ 0.05 $ (1.56) $ (1.51) -- -- -- -- RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA ------------------------------------------------------------------- Net Asset Net Assets Net Period Value, End of Investment Portfolio Ended Redemption End of Total Period Income/ Operating Turnover December 31 Fees(a) Period Return+ (in 000's) (Loss) Expenses Rate++ - ----------- ------------ ---------- --------- ------------- -------------- ----------------- ---------- CLASS A 2008 (b) $ 0.00(c) $ 14.34 (14.5)% $ 631,695 0.27%(d) 1.42%(d)(e) 2% 2007 0.00(c) 16.78 4.6 800,586 (0.20) 1.39 9 2006 0.00(c) 17.61 21.7 860,789 0.14 1.41(e) 17 2005 0.00(c) 18.11 (0.2) 1,063,137 0.08 1.40 3 2004 0.00(c) 19.49 12.8 1,261,293 (0.11) 1.39 12 2003 -- 17.97 31.9 1,255,668 (0.35) 1.44(f) 8 CLASS B 2008 (b) $ 0.00(c) $ 13.16 (14.9)% $ 7,759 (0.49)%(d) 2.17%(d)(e) 2% 2007 0.00(c) 15.46 3.9 10,774 (0.95) 2.14 9 2006 0.00(c) 16.46 20.8 13,046 (0.53) 2.16(e) 17 2005 0.00(c) 17.28 (0.9) 17,804 (0.67) 2.15 3 2004 0.00(c) 18.79 12.0 20,366 (0.86) 2.14 12 2003 -- 17.47 30.9 18,059 (1.10) 2.19(f) 8 CLASS C 2008 (b) $ 0.00(c) $ 13.18 (14.9)% $ 11,046 (0.47)%(d) 2.17%(d)(e) 2% 2007 0.00(c) 15.48 4.0 14,679 (0.94) 2.14 9 2006 0.00(c) 16.47 20.7 14,704 (0.58) 2.16(e) 17 2005 0.00(c) 17.29 (0.9) 14,003 (0.67) 2.15 3 2004 0.00(c) 18.80 11.9 16,400 (0.85) 2.14 12 2003 -- 17.49 30.9 14,973 (1.10) 2.19(f) 8 CLASS I 2008 (g) $ 0.00(c) $ 14.36 (14.4)% $ 2,077 0.72%(d) 1.17%(d)(e) 2%
- ---------- + Total return represents aggregate total return of a hypothetical $1,000 investment at the beginning of the period and sold at the end of the period including reinvestment of distributions and does not reflect applicable sales charges. Total return for a period of less than one year is not annualized. ++ Effective in 2008, a change in accounting policy was adopted with regard to the calculation of the portfolio turnover rate. Had this policy been adopted retroactively, the portfolio turnover rate for the fiscal years ended December 31, 2007, 2006, 2005, 2004, and 2003 would have been as shown. (a) Per share amounts have been calculated using the average shares outstanding method. (b) For the six months ended June 30, 2008, unaudited. (c) Amount represents less than $0.005 per share. (d) Annualized. (e) The Fund incurred interest expense during the six months ended June 30, 2008, and the fiscal year ended December 31, 2006. If interest expense had not been incurred, the ratios of operating expenses to average net assets would have been 1.41% and 1.40% (Class A), 2.16% and 2.15% (Class B and Class C), and 1.17% for Class I, respectively. For the fiscal year ended December 31, 2007, the effect of interest expense was minimal. (f) The Fund incurred dividend expense on securities sold short for the year ended December 31, 2003. If dividend expense had not been incurred, the ratios of operating expenses to average net assets would have been 1.43% (Class A), 2.18% (Class B), and 2.18% (Class C), respectively. (g) From the commencement of offering Class I Shares on January 11, 2008 through June 30, 2008, unaudited. See accompanying notes to financial statements. 9 THE GABELLI VALUE FUND INC. NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 1. ORGANIZATION. The Gabelli Value Fund Inc. (the "Fund") was organized on July 20, 1989 as a Maryland corporation. The Fund is a non-diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). The Fund's primary objective is long-term capital appreciation. The Fund commenced investment operations on September 29, 1989. 2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements in accordance with United States ("U.S.") generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. SECURITY VALUATION. Portfolio securities listed or traded on a nationally recognized securities exchange or traded in the U.S. over-the-counter market for which market quotations are readily available are valued at the last quoted sale price or a market's official closing price as of the close of business on the day the securities are being valued. If there were no sales that day, the security is valued at the average of the closing bid and asked prices or, if there were no asked prices quoted on that day, then the security is valued at the closing bid price on that day. If no bid or asked prices are quoted on such day, the security is valued at the most recently available price or, if the Board of Directors (the "Board") so determines, by such other method as the Board shall determine in good faith to reflect its fair market value. Portfolio securities traded on more than one national securities exchange or market are valued according to the broadest and most representative market, as determined by Gabelli Funds, LLC (the "Adviser"). Portfolio securities primarily traded on a foreign market are generally valued at the preceding closing values of such securities on the relevant market, but may be fair valued pursuant to procedures established by the Board if market conditions change significantly after the close of the foreign market but prior to the close of business on the day the securities are being valued. Debt instruments with remaining maturities of 60 days or less that are not credit impaired are valued at amortized cost, unless the Board determines such amount does not reflect the securities' fair value, in which case these securities will be fair valued as determined by the Board. Debt instruments having a maturity greater than 60 days for which market quotations are readily available are valued at the average of the latest bid and asked prices. If there were no asked prices quoted on such day, the security is valued using the closing bid price. Futures contracts are valued at the closing settlement price of the exchange or board of trade on which the applicable contract is traded. Securities and assets for which market quotations are not readily available are fair valued as determined by the Board. Fair valuation methodologies and procedures may include, but are not limited to: analysis and review of available financial and non-financial information about the company; comparisons to the valuation and changes in valuation of similar securities, including a comparison of foreign securities to the equivalent U.S. dollar value ADR securities at the close of the U.S. exchange; and evaluation of any other information that could be indicative of the value of the security. On January 1, 2008, the Fund adopted Statement of Financial Accounting Standard No. 157, "Fair Value Measurements" ("SFAS 157") that clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value, and requires additional disclosures about the use of fair value measurements. The three levels of the fair value hierarchy under SFAS 157 are described below: - Level 1 - quoted prices in active markets for identical securities; 10 THE GABELLI VALUE FUND INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) - 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). 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 inputs used to value the Fund's net assets as of June 30, 2008 is as follows:
INVESTMENTS IN SECURITIES (MARKET VALUE) --------------- VALUATION INPUTS Level 1 - Quoted Prices $ 653,643,828 Level 2 - Other Significant Observable Inputs -- Level 3 - Significant Unobservable Inputs 241,245 --------------- TOTAL $ 653,885,073 ===============
The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
INVESTMENTS IN SECURITIES (MARKET VALUE) --------------- BALANCE AS OF 12/31/07 $ 241,246 Accrued discounts/premiums -- Realized gain (loss) -- Change in unrealized appreciation/depreciation (1) Net purchases (sales) -- Transfers in and/or out of Level 3 -- --------------- BALANCE AS OF 6/30/08 $ 241,245 ===============
In March 2008, The Financial Accounting Standards Board (The "FASB") issued Statement of Financial Accounting Standard No.161, "Disclosures about Derivative Instruments and Hedging Activities" ("SFAS 161") that is effective for fiscal years beginning after November 15, 2008. SFAS 161 is intended to improve financial reporting for derivative instruments by requiring enhanced disclosure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity's results of operations and financial position. Management is currently evaluating the implications of SFAS 161 on the Fund's financial statement disclosures. REPURCHASE AGREEMENTS. The Fund may enter into repurchase agreements with primary government securities dealers recognized by the Federal Reserve Board, with member banks of the Federal Reserve System, or with other brokers or dealers that meet credit guidelines established by the Adviser and reviewed by the Board. Under the terms of a typical repurchase agreement, the Fund takes possession of an underlying debt obligation subject to an obligation of the seller to repurchase, and the Fund to resell, the obligation at an agreed-upon price and time, thereby determining the yield during the Fund's holding period. The Fund will always receive and maintain securities as collateral whose market value, including accrued interest, will be at least equal to 102% of the dollar amount invested by the Fund in each agreement. The Fund will make payment 11 THE GABELLI VALUE FUND INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) for such securities only upon physical delivery or upon evidence of book entry transfer of the collateral to the account of the custodian. To the extent that any repurchase transaction exceeds one business day, the value of the collateral is marked-to-market on a daily basis to maintain the adequacy of the collateral. If the seller defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited. At June 30, 2008, there were no open repurchase agreements. FUTURES CONTRACTS. The Fund may engage in futures contracts for the purpose of hedging against changes in the value of its portfolio securities and in the value of securities it intends to purchase. Upon entering into a futures contract, the Fund is required to deposit with the broker an amount of cash or cash equivalents equal to a certain percentage of the contract amount. This is known as the "initial margin." Subsequent payments ("variation margin") are made or received by the Fund each day, depending on the daily fluctuations in the value of the contract, which are included in unrealized appreciation/depreciation on investments and futures contracts. The Fund recognizes a realized gain or loss when the contract is closed. There are several risks in connection with the use of futures contracts as a hedging instrument. The change in value of futures contracts primarily corresponds with the value of their underlying instruments, which may not correlate with the change in value of the hedged investments. In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid secondary market. At June 30, 2008, there were no open futures contracts. SECURITIES SOLD SHORT. The Fund may enter into short sale transactions. Short selling involves selling securities that may or may not be owned and, at times, borrowing the same securities for delivery to the purchaser, with an obligation to replace such borrowed securities at a later date. The proceeds received from short sales are recorded as liabilities and the Fund records an unrealized gain or loss to the extent of the difference between the proceeds received and the value of an open short position on the day of determination. The Fund records a realized gain or loss when the short position is closed out. By entering into a short sale, the Fund bears the market risk of an unfavorable change in the price of the security sold short. Dividends on short sales are recorded as an expense by the Fund on the ex-dividend date and interest expense is recorded on the accrual basis. The Fund did not hold any short positions as of June 30, 2008. 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. 12 THE GABELLI VALUE FUND INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) FOREIGN SECURITIES. The Fund may directly purchase securities of foreign issuers. Investing in securities of foreign issuers involves special risks not typically associated with investing in securities of U.S. issuers. The risks include possible revaluation of currencies, the ability to repatriate funds, less complete financial information about companies, and possible future adverse political and economic developments. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than those of securities of comparable U.S. issuers. FOREIGN TAXES. The Fund may be subject to foreign taxes on income, gains on investments, or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests. SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are accounted for on the trade date with realized gain or loss on investments determined by using the identified cost method. Interest income (including amortization of premium and accretion of discount) is recorded on the accrual basis. Premiums and discounts on debt securities are amortized using the effective yield to maturity method. Dividend income is recorded on the ex-dividend date except for certain dividends which are recorded as soon as the Fund is informed of the dividend. DETERMINATION OF NET ASSET VALUE AND CALCULATION OF EXPENSES. Certain administrative expenses are common to, and allocated among, various affiliated funds. Such allocations are made on the basis of each Fund's average net assets or other criteria directly affecting the expenses as determined by the Adviser pursuant to procedures established by the Board. In calculating the NAV per share of each class, investment income, realized and unrealized gains and losses, redemption fees, and expenses other than class specific expenses are allocated daily to each class of shares based upon the proportion of net assets of each class at the beginning of each day. Distribution expenses are borne solely by the class incurring the expense. CUSTODIAN FEE CREDITS AND INTEREST EXPENSE. When cash balances are maintained in the custody account, the Fund receives credits which are used to offset custodian fees. The gross expenses paid under the custody arrangement are included in custodian fees in the Statement of Operations with the corresponding expense offset, if any, shown as "custodian fee credits." When cash balances are overdrawn, the Fund is charged an overdraft fee equal to 2.00% above the federal funds rate on outstanding balances. This amount, if any, would be shown as "interest expense" in the Statement of Operations. DISTRIBUTIONS TO SHAREHOLDERS. Distributions to shareholders are recorded on the ex-dividend date. Distributions to shareholders are based on income and capital gains as determined in accordance with federal income tax regulations, which may differ from income and capital gains as determined under U.S. generally accepted accounting principles. These differences are primarily due to differing treatments of income and gains on various investment securities and foreign currency transactions held by the Fund, timing differences, and differing characterizations of distributions made by the Fund. Distributions from net investment income include net realized gains on foreign currency transactions. These book/tax differences are either temporary or permanent in nature. To the extent these differences are permanent, adjustments are made to the appropriate capital accounts in the period when the differences arise. These reclassifications have no impact on the NAV of the Fund. 13 THE GABELLI VALUE FUND INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) The tax character of distributions paid during the fiscal year ended December 31, 2007 was as follows: DISTRIBUTIONS PAID FROM: Net long-term capital gains ..... $ 74,571,696 Return of capital ............... 51,759 ------------- Total distributions paid ........ $ 74,623,455 =============
PROVISION FOR INCOME TAXES. The Fund intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"). It is the policy of the Fund to comply with the requirements of the Code applicable to regulated investment companies and to distribute substantially all of its net investment company taxable income and net capital gains. Therefore, no provision for federal income taxes is required. The following summarizes the tax cost of investments and the related unrealized appreciation/(depreciation) at June 30, 2008:
GROSS GROSS UNREALIZED UNREALIZED NET UNREALIZED COST APPRECIATION DEPRECIATION APPRECIATION ------------- -------------- ------------- -------------- Investments ............... $ 443,973,290 $ 251,224,699 $ (41,312,916) $ 209,911,783
FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109" ("the Interpretation") established a minimum threshold for financial statement recognition of the benefit of positions taken in filing tax returns (including whether the Fund is taxable in a particular jurisdiction) and required certain expanded tax disclosures. For the six months ended June 30, 2008, the Fund did not have any liability for any unrecognized tax benefits. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expenses in the Statement of Operations. The Fund is not subject to examination by U.S. federal tax authorities for tax years before 2004 and by state tax authorities for tax years before 2003. 3. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS. The Fund has entered into an investment advisory agreement (the "Advisory Agreement") with the Adviser which provides that the Fund will pay the Adviser a fee, computed daily and paid monthly, at the annual rate of 1.00% of the value of its average daily net assets. In accordance with the Advisory Agreement, the Adviser provides a continuous investment program for the Fund's portfolio, oversees the administration of all aspects of the Fund's business and affairs, and pays the compensation of all Officers and Directors of the Fund who are affiliated persons of the Adviser. The Fund pays each Director who is not considered to be an affiliated person an annual retainer of $10,000 plus $1,000 for each Board meeting attended and they are reimbursed for any out of pocket expenses incurred in attending meetings. All Board committee members receive $1,000 per meeting attended, the chairman of each committee receives $2,500 per year, and the Lead Director receives an annual fee of $1,000. Directors who are directors or employees of the Adviser or an affiliated company receive no compensation or expense reimbursement from the Fund. 4. DISTRIBUTION PLAN. The Fund's Board has adopted a distribution plan (the "Plan") for each class of shares except for Class I Shares, pursuant to Rule 12b-1 under the 1940 Act. Gabelli & Company, Inc. ("Gabelli & Company"), an affiliate of the Adviser, serves as distributor of the Fund. Under the Class A, Class B, and Class 14 THE GABELLI VALUE FUND INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) C Share Plans, payments are authorized to Gabelli & Company at annual rates of 0.25%, 1.00%, and 1.00%, respectively, of the average daily net assets of those classes, the annual limitations under each Plan. Such payments are accrued daily and paid monthly. 5. PORTFOLIO SECURITIES. Purchases and proceeds from the sale of securities for the six months ended June 30, 2008, other than short-term securities and U.S. Government obligations, aggregated $13,595,631 and $48,275,779, respectively. 6. TRANSACTIONS WITH AFFILIATES. During the six months ended June 30, 2008, the Fund paid brokerage commissions on security trades of $61,484 to Gabelli & Company. Additionally, Gabelli & Company informed the Fund that it received $27,008 from investors representing commissions (sales charges and underwriting fees) on sales and redemptions of Fund shares. The cost of calculating the Fund's NAV per share is a Fund expense pursuant to the Advisory Agreement between the Fund and the Adviser. During the six months ended June 30, 2008, the Fund paid or accrued $22,500 to the Adviser in connection with the cost of computing the Fund's NAV. 7. CAPITAL STOCK. The Fund offers four classes of shares - Class A Shares, Class B Shares, Class C Shares, and Class I Shares. Class I Shares are offered to investors without a front-end sales charge. Class A Shares are subject to a maximum front-end sales charge of 5.75%. Prior to May 1, 2007, the maximum front-end load on Class A Shares was 5.50%. Class B Shares are subject to a contingent deferred sales charge ("CDSC") upon redemption within six years of purchase and automatically convert to Class A Shares approximately eight years after the original purchase. The applicable CDSC is equal to a declining percentage of the lesser of the NAV per share at the date of the original purchase or at the date of redemption, based on the length of time held. Class C Shares are subject to a 1.00% CDSC for one year after purchase. Class B Shares are available only through exchange of Class B Shares of other funds distributed by Gabelli & Company. Class I Shares were first issued on January 11, 2008. The Fund imposes a redemption fee of 2.00% on all classes of shares that are redeemed or exchanged on or before the seventh day after the date of a purchase. The redemption fee is deducted from the proceeds otherwise payable to the redeeming shareholders and is retained by the Fund. The redemption fees retained by the Fund during the six months ended June 30, 2008 and the fiscal year ended December 31, 2007 amounted to $312 and $2,293, respectively. The redemption fee does not apply to redemptions of shares where (i) the shares were purchased through automatic reinvestment of distributions, (ii) the redemption was initiated by the Fund, (iii) the shares were purchased through programs that collect the redemption fee at the program level and remit them to the Fund, or (iv) the shares were purchased through programs that the Adviser determines to have appropriate anti-short-term trading policies in place or as to which the Adviser has received assurances that look-through redemption fee procedures or effective anti-short-term trading policies and procedures are in place. 15 THE GABELLI VALUE FUND INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) Transactions in shares of capital stock were as follows:
SIX MONTHS ENDED JUNE 30, 2008 YEAR ENDED (UNAUDITED) DECEMBER 31, 2007 ----------------------------- ------------------------------ SHARES AMOUNT SHARES AMOUNT ------------ -------------- ------------- -------------- CLASS A CLASS A ----------------------------- ------------------------------ Shares sold......................................... 408,438 $ 6,262,667 1,478,576 $ 27,445,819 Shares issued upon reinvestment of distributions.... -- -- 4,003,660 67,344,910 Shares redeemed..................................... (4,062,019) (62,247,480) (6,674,075) (124,136,449) ------------ -------------- ------------- -------------- Net decrease..................................... (3,653,581) $ (55,984,813) (1,191,839) $ (29,345,720) ============ ============== ============= ============== CLASS B CLASS B ----------------------------- ------------------------------ Shares sold......................................... -- -- 4,521 $ 74,391 Shares issued upon reinvestment of distributions.... -- -- 61,782 957,619 Shares redeemed..................................... (107,353) $ (1,499,777) (161,790) (2,810,469) ------------ -------------- ------------- -------------- Net decrease..................................... (107,353) $ (1,499,777) (95,487) $ (1,778,459) ============ ============== ============= ============== CLASS C CLASS C ----------------------------- ------------------------------ Shares sold......................................... 76,204 $ 1,062,237 191,138 $ 3,300,404 Shares issued upon reinvestment of distributions.... -- -- 62,213 964,928 Shares redeemed..................................... (186,370) (2,615,575) (197,724) (3,485,468) ------------ -------------- ------------- -------------- Net increase (decrease).......................... (110,166) $ (1,553,338) 55,627 $ 779,864 ============ ============== ============= ============== CLASS I* ----------------------------- Shares sold......................................... 146,665 $ 2,310,462 Shares redeemed..................................... (2,027) (30,063) ------------ -------------- Net increase..................................... 144,638 $ 2,280,399 ============ ==============
- ---------- * From the commencement of offering Class I Shares on January 11, 2008. 8. INDEMNIFICATIONS. The Fund enters into contracts that contain a variety of indemnifications. The Fund's maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote. 9. OTHER MATTERS. On April 24, 2008, the Adviser entered into an administrative settlement with the SEC to resolve the SEC's inquiry regarding prior frequent trading activity in shares of the GAMCO Global Growth Fund (the "Global Growth Fund") by one investor who was banned from the Global Growth Fund in August 2002. In the settlement, the SEC found that the Adviser had violated Section 206(2) of the Investment Advisers Act, Section 17(d) of the 1940 Act and Rule 17d-1 thereunder, and had aided and abetted and caused violations of Section 12(d)(1)(B)(i) of the 1940 Act. Under the terms of the settlement, the Adviser, while neither admitting nor denying the SEC's findings and allegations, agreed, among other things, to pay the previously reserved total of $16 million (including a $5 million penalty), of which at least $11 million will be distributed to shareholders of the Global Growth Fund in accordance with a plan to be developed by an independent distribution consultant and approved by the independent directors of the Global Growth Fund and the staff of the SEC, and to cease and desist from future violations of the above referenced federal securities laws. The settlement will not have a material adverse impact on the Adviser or its ability to fulfill its obligations under the Advisory Agreement. On the same day, the SEC filed a civil action against the Executive Vice President and Chief Operating Officer of the 16 THE GABELLI VALUE FUND INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) Adviser, alleging violations of certain federal securities laws arising from the same matter. The officer is also an officer of the Global Growth Fund and other funds in the Gabelli/GAMCO fund complex. The officer denies the allegations and is continuing in his positions with the Adviser and the funds. The Adviser currently expects that any resolution of the action against the officer will not have a material adverse impact on the Adviser or its ability to fulfill its obligations under the Advisory Agreement. On a separate matter, in August 2008, the Adviser made an offer to the staff of the SEC to settle a previously disclosed matter concerning compliance with Section 19(a) and Rule 19a-1 of the 1940 Act by two closed-end funds managed by the Adviser. These provisions require registered investment companies to provide written statements to shareholders when a distribution is made in the nature of a dividend from a source other than net investment income. While the two funds sent annual statements and provided other materials containing this information, the funds did not send the notices required by Rule 19a-1 to shareholders with each distribution in 2002 and 2003. The Adviser believes that the funds have been in compliance with Rule 19a-1 since that time. The Adviser believes that the settlement would have no effect on the funds or any material adverse effect on the Adviser or its ability to manage the funds. This offer of settlement is subject to final agreement regarding the specific language of the SEC's administrative order and other settlement documents and approval by the SEC. 17 THE GABELLI VALUE FUND INC. BOARD CONSIDERATION AND RE-APPROVAL OF INVESTMENT ADVISORY AGREEMENT (UNAUDITED) Section 15(c) of the Investment Company Act of 1940, as amended (the "1940 Act"), contemplates that the Board of Directors (the "Board") of The Gabelli Value Fund Inc. (the "Fund"), including a majority of the Directors who have no direct or indirect interest in the investment advisory agreement and are not "interested persons" of the Fund, as defined in the 1940 Act (the "Independent Board Members"), are required to annually review and re-approve the terms of the Fund's existing investment advisory agreement and approve any newly proposed terms therein. In this regard, the Board reviewed and re-approved, during the most recent six month period covered by this report, the Investment Advisory Agreement (the "Advisory Agreement") with Gabelli Funds, LLC (the "Adviser") for the Fund. More specifically, at a meeting held on February 28, 2008, the Independent Board Members, meeting in executive session with their counsel, reviewed the written and oral information that had been made available, and considered the factors and reached the conclusions described below relating to the selection of the Adviser and the re-approval of the Advisory Agreement. 1. NATURE, EXTENT, AND QUALITY OF SERVICES. The Independent Board Members considered the nature, quality, and extent of administrative and shareholder services performed by the Adviser, including portfolio management, supervision of Fund operations and compliance and regulatory filings and disclosures to shareholders, general oversight of other service providers, coordination of Fund marketing initiatives, review of Fund legal issues, assisting the Independent Board Members in their capacity as directors and other services. The Independent Board Members concluded that the services are extensive in nature and that the Adviser consistently delivered a high level of service. 2. INVESTMENT PERFORMANCE OF THE FUND AND ADVISER. The Independent Board Members considered investment performance for the Fund over various periods of time as compared with the performance of such Fund's Lipper peer group and concluded that the Adviser was delivering satisfactory performance results over the long term consistent with the long-term investment strategies being pursued by the Fund. 3. COSTS OF SERVICES AND PROFITS REALIZED BY THE ADVISER. (a) COSTS OF SERVICES TO FUND: FEES AND EXPENSES. The Independent Board Members considered the Fund's management fee rate and expense ratio relative to industry averages for the Fund's peer group category and the advisory fees charged by the Adviser and its affiliates to other fund and non-fund clients. The Independent Board Members noted that the mix of services under the Agreement are much more extensive than those under the advisory agreements for non-fund clients. (b) PROFITABILITY AND COSTS OF SERVICES TO ADVISER. The Independent Board Members considered the Adviser's overall profitability and costs and proforma estimates of the Adviser's profitability and costs attributable to the Fund. With regard to the Adviser, that information was prorated (i) assuming the Fund was part of the Gabelli/GAMCO fund complex and (ii) assuming the Fund constituted the Adviser's only investment company under its management. The Independent Board Members also considered whether the amount of profit is a fair entrepreneurial profit for the management of the Fund and noted that the Adviser has substantially increased its resources devoted to Fund matters in response to recently enacted regulatory requirements and new or enhanced Fund policies and procedures. The Independent Board Members concluded that the Adviser's profitability was at an acceptable level, particularly in light of the high quality of the services being provided to the Fund. 18 4. EXTENT OF ECONOMIES OF SCALE AS FUND GROWS. The Independent Board Members considered whether there have been economies of scale with respect to the management of the Fund and whether the Fund has appropriately benefited from any economies of scale. The Independent Board Members noted that economies of scale may develop for certain funds as their assets increase and their fund level expenses decline as a percentage of assets, but that fund level economies of scale may not necessarily result in Adviser level economies of scale. 5. WHETHER FEE LEVELS REFLECT ECONOMIES OF SCALE. The Independent Board Members also considered whether the management fee rate is reasonable in relation to the asset size of the Fund and any economies of scale that may exist and concluded that it currently was reasonable. 6. OTHER RELEVANT CONSIDERATIONS. (a) ADVISER PERSONNEL AND METHODS. The Independent Board Members considered the size, education, and experience of the Adviser's staff, the Adviser's fundamental research capabilities, and the Adviser's approach to recruiting, training, and retaining portfolio managers and other research and management personnel, and concluded that in each of these areas the Adviser was structured in such a way to support the high level of services being provided to the Fund. (b) OTHER BENEFITS TO THE ADVISER. The Independent Board Members also considered the character and amount of other incidental benefits received by the Adviser and its affiliates from its association with the Fund. The Independent Board Members concluded that potential "fall-out" benefits that the Adviser and its affiliates may receive, such as brokerage commissions paid to an affiliated broker, greater name recognition, or increased ability to obtain research services, appear to be reasonable, and may in some cases benefit the Fund. The Independent Board Members also noted that a substantial portion of the Fund's portfolio transactions were executed by an affiliated broker, and that the affiliated broker received distribution fees and commissions from the Fund, and the Adviser received a moderate amount of soft dollar benefits (but no third party research services) from unaffiliated brokers through the Fund's portfolio brokerage. CONCLUSIONS. In considering the Agreement, the Independent Board Members did not identify any factor as all important or all controlling and instead considered these factors collectively in light of the Fund's surrounding circumstances. Based on this review, it was the judgment of the Independent Board Members that shareholders had received satisfactory absolute and relative performance at reasonable fees and, therefore, re-approval of the Agreement was in the best interests of the Fund and its shareholders. As a part of its decision-making process, the Independent Board Members noted that the Adviser has managed the Fund since its inception, and the Independent Board Members believe that a long-term relationship with a capable, conscientious adviser is in the best interests of the Fund. The Independent Board Members considered, generally, that shareholders invested in the Fund knowing that the Adviser managed the Fund and knowing its investment management fee schedule. As such, the Independent Board Members considered, in particular, whether the Adviser managed the Fund in accordance with its investment objectives and policies as disclosed to shareholders. The Independent Board Members concluded that the Fund was managed by the Adviser consistent with its investment objectives and policies. 19 THE GABELLI VALUE FUND INC. One Corporate Center Rye, New York 10580-422 800-GABELLI 800-422-3554 FAX: 914-921-5118 WEBSITE: www.gabelli.com E-MAIL: info@gabelli.com Net Asset Value per share available daily by calling 800-GABELLI after 6:00 P.M. BOARD OF DIRECTORS Mario J. Gabelli, CFA Anthony R. Pustorino Chairman and Chief Certified Public Accountant, Executive Officer Professor Emeritus GAMCO Investors, Inc. Pace University Anthony J. Colavita Werner J. Roeder, MD Attorney-at-Law Medical Director Anthony J. Colavita, P.C. Lawrence Hospital Robert J. Morrissey Attorney-at-Law Morrissey, Hawkins & Lynch OFFICERS Bruce N. Alpert Peter D. Goldstein President and Secretary Chief Compliance Officer Agnes Mullady Treasurer CUSTODIAN The Bank of New York Mellon TRANSFER AGENT AND DIVIDEND DISBURSING AGENT State Street Bank and Trust Company LEGAL COUNSEL Willkie Farr & Gallagher LLP DISTRIBUTOR Gabelli & Company, Inc. This report is submitted for the general information of the shareholders of The Gabelli Value Fund Inc. It is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. GAB409Q208SR [GRAPHIC] THE GABELLI VALUE FUND INC. SEMI ANNUAL REPORT JUNE 30, 2008 ITEM 2. CODE OF ETHICS. Not applicable. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. INVESTMENTS. (a) Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. (b) Not applicable. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant's Board of Directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant's second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. (a)(1) Not applicable. (a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. (a)(3) Not applicable. (b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (registrant) The Gabelli Value Fund Inc. ----------------------------------------------------------------- By (Signature and Title)* /s/ Bruce N. Alpert ------------------------------------------------------- Bruce N. Alpert, Principal Executive Officer Date 9/3/08 ---------------------------------------------------------------------------- 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 9/3/08 ---------------------------------------------------------------------------- By (Signature and Title)* /s/ Agnes Mullady ------------------------------------------------------- Agnes Mullady, Principal Financial Officer & Treasurer Date 9/3/08 ---------------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature. EX-99.CERT 2 exh302.txt EXHIBIT TO SECTION 302 OF SOA CERTIFICATION PURSUANT TO RULE 30A-2(A) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT I, Bruce N. Alpert, certify that: 1. I have reviewed this report on Form N-CSR of The Gabelli Value Fund Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: 9/3/08 /s/ Bruce N. Alpert --------------- ------------------------------------------------- Bruce N. Alpert, Principal Executive Officer CERTIFICATION PURSUANT TO RULE 30A-2(A) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT I, Agnes Mullady, certify that: 1. I have reviewed this report on Form N-CSR of The Gabelli Value Fund Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: 9/3/08 /s/ Agnes Mullady --------------- ------------------------------------------------ Agnes Mullady, Principal Financial Officer & Treasurer EX-99.906CERT 3 exh906.txt EXHIBIT TO SECTION 906 OF SOA CERTIFICATION PURSUANT TO RULE 30A-2(B) UNDER THE 1940 ACT AND SECTION 906 OF THE SARBANES-OXLEY ACT I, Bruce N. Alpert, Principal Executive Officer of The Gabelli Value Fund Inc. (the "Registrant"), certify that: 1. The Form N-CSR of the Registrant (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Date: 9/3/08 /s/ Bruce N. Alpert --------------------- ---------------------------------------------- Bruce N. Alpert, Principal Executive Officer I, Agnes Mullady, Principal Financial Officer & Treasurer of The Gabelli Value Fund Inc. (the "Registrant"), certify that: 1. The Form N-CSR of the Registrant (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Date: 9/3/08 /s/ Agnes Mullady ---------------------- ------------------------------------------ Agnes Mullady, Principal Financial Officer & Treasurer -----END PRIVACY-ENHANCED MESSAGE-----