N-CSRS

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, 2010

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. § 3507.

Item 1. Reports to Stockholders.

The Report to Shareholders is attached herewith.

The Gabelli Value Fund Inc.
Semi-Annual Report — June 30, 2010

Christopher Marangi

To Our Shareholders,

     For the quarter ended June 30, 2010, the net asset value (“NAV”) per share of The Gabelli Value Fund Inc.’s (the “Fund”) Class AAA Shares declined 5.67%, while the Standard & Poor’s (“S&P”) 500 Index dropped 11.41% and the Dow Jones Industrial Average decreased 9.36%. For the year ended June 30, 2010, the Fund was up 32.48% versus increases of 14.43% and 18.90% 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, 2010.

Comparative Results

Average Annual Returns through June 30, 2010 (a) (Unaudited)

																						Since
				Year to																		Inception
	Quarter			Date			1 Year			3 Year			5 Year			10 Year			20 Year			(9/29/89)
Gabelli Value Fund Class AAA		(5.67	)%		1.91	%		32.48	%		(8.53	)%		0.48	%		2.49	%		10.13	%		9.80	%
S&P 500 Index		(11.41	)		(6.64	)		14.43			(9.80	)		(0.79	)		(1.59	)		7.67			7.64
Dow Jones Industrial Average		(9.36	)		(5.00	)		18.90			(7.38	)		1.65			1.70			8.89			9.06
Nasdaq Composite Index		(12.04	)		(7.05	)		14.94			(6.77	)		0.50			(6.12	)		7.88			7.47
Class A		(5.74	)		1.83			32.38			(8.55	)		0.46			2.48			10.13			9.80
		(11.16	)(b)		(4.03	)(b)		24.76	(b)		(10.34	)(b)		(0.72	)(b)		1.87	(b)		9.80	(b)		9.49	(b)
Class B		(5.92	)		1.40			31.40			(9.25	)		(0.30	)		1.71			9.69			9.38
		(10.62	)(c)		(3.60	)(c)		26.40	(c)		(10.17	)(c)		(0.70	)(c)		1.71			9.69			9.38
Class C		(5.91	)		1.39			31.47			(9.24	)		(0.28	)		1.72			9.71			9.40
		(6.85	)(d)		0.39	(d)		30.47	(d)		(9.24	)		(0.28	)		1.72			9.71			9.40
Class I		(5.67	)		1.99			32.79			(8.36	)		0.59			2.55			10.16			9.83

In the current prospectus, the expense ratios for Class AAA, A, B, C, and I Shares are 1.52%, 1.52%, 2.27%, 2.27%, and 1.27%, respectively. Class AAA and 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 of less than one year are not annualized. Current performance may be lower or higher than the performance data presented. Visit www.gabelli.com for performance information as of the most recent month end. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectus contains more information about this and other matters and should be read carefully before investing. The Class A Shares NAVs per share are used to calculate performance for the periods prior to the issuance of Class AAA Shares on April 30, 2010, 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 an unmanaged indicator 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.

The Gabelli Value Fund Inc.
Disclosure of Fund Expenses (Unaudited)
For the Six Month Period from January 1, 2010 through June 30, 2010	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
	01/01/10		06/30/10		Ratio			Period*
The Gabelli Value Fund Inc.
Actual Fund Return
Class AAA**	$	1,000.00	$	1,019.10		1.46	%	$	2.50
Class A	$	1,000.00	$	1,018.30		1.47	%	$	7.36
Class B	$	1,000.00	$	1,014.00		2.22	%	$	11.09
Class C	$	1,000.00	$	1,013.90		2.22	%	$	11.09
Class I	$	1,000.00	$	1,019.90		1.22	%	$	6.11
Hypothetical 5% Return
Class AAA	$	1,000.00	$	1,017.55		1.46	%	$	7.30
Class A	$	1,000.00	$	1,017.50		1.47	%	$	7.35
Class B	$	1,000.00	$	1,013.79		2.22	%	$	11.08
Class C	$	1,000.00	$	1,013.79		2.22	%	$	11.08
Class I	$	1,000.00	$	1,018.74		1.22	%	$	6.11

*	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 (181 days), then divided by 365.
**	Class AAA Shares were first issued on April 30, 2010. Account values and expense ratios for the Actual Fund Return are calculated from April 30, 2010 through June 30, 2010.

2

Summary of Portfolio Holdings (Unaudited)

The following table presents portfolio holdings as a percent of net assets as of June 30, 2010:

The Gabelli Value Fund Inc.

Cable and Satellite	15.9	%
Entertainment	14.8	%
Metals and Mining	9.6	%
Diversified Industrial	6.1	%
Food and Beverage	5.8	%
Consumer Products	5.5	%
Telecommunications	4.6	%
Broadcasting	4.5	%
Financial Services	4.3	%
Electronics	3.2	%
Equipment and Supplies	3.1	%
Publishing	2.7	%
Environmental Services	2.5	%
Energy and Utilities	2.2	%
Aerospace	1.9	%
Automotive: Parts and Accessories	1.6	%
Machinery	1.4	%
Consumer Services	1.4	%
Business Services	1.3	%
Hotels and Gaming	1.2	%
Communications Equipment	1.1	%
Retail	1.1	%
Health Care	0.9	%
Real Estate	0.7	%
Aviation: Parts and Services	0.7	%
Wireless Communications	0.6	%
Specialty Chemicals	0.6	%
Automotive	0.2	%
Agriculture	0.2	%
Educational Services	0.2	%
Computer Software and Services	0.1	%
U.S. Government Obligations	0.1	%
Other Assets and Liabilities (Net)	(0.1	)%
	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, 2010. 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 twelve 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.

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.

3

The Gabelli Value Fund Inc.
Schedule of Investments — June 30, 2010 (Unaudited)

					Market
Shares			Cost		Value
		COMMON STOCKS — 100.0%
		Aerospace — 1.9%
	1,000,000	Rolls-Royce Group plc†	$	7,007,796	$	8,404,301
	90,000,000	Rolls-Royce Group plc, Cl. C†		138,177		134,469
				7,145,973		8,538,770
		Agriculture — 0.2%
	28,000	Archer-Daniels-Midland Co.		906,097		722,960
	500	The Mosaic Co.		8,345		19,490
				914,442		742,450
		Automotive — 0.2%
	20,000	Navistar International Corp.†		668,627		984,000
		Automotive: Parts and Accessories — 1.6%
	38,000	China Yuchai International Ltd.		300,576		585,580
	169,000	Genuine Parts Co.		4,395,630		6,667,050
				4,696,206		7,252,630
		Aviation: Parts and Services — 0.7%
	110,000	BBA Aviation plc		218,145		301,255
	40,000	Curtiss-Wright Corp.		730,684		1,161,600
	365,000	GenCorp Inc.†		3,112,583		1,598,700
				4,061,412		3,061,555
		Broadcasting — 4.5%
	789,000	CBS Corp., Cl. A, Voting		14,754,840		10,233,330
	178,000	Liberty Media Corp. - Capital, Cl. A†		1,957,028		7,459,980
	52,500	Liberty Media Corp. — Starz, Cl. A†		1,213,115		2,721,600
				17,924,983		20,414,910
		Business Services — 1.3%
	26,000	Akamai Technologies Inc.†		578,478		1,054,820
	35,300	Ascent Media Corp., Cl. A†		912,006		891,678
	14,000	Broadridge Financial Solutions Inc.		164,276		266,700
	83,000	Clear Channel Outdoor Holdings Inc., Cl. A†		617,031		720,440
	29,950	Fidelity National Information Services Inc.		525,707		803,259
	40,000	Intermec Inc.†		770,269		410,000
	4,000	MasterCard Inc., Cl. A		926,109		798,120
	27,000	Monster Worldwide Inc.†		395,830		314,550
	121,000	SearchMedia Holdings Ltd.†		958,322		372,680
	5,000	The Brink’s Co.		136,183		95,150
				5,984,211		5,727,397
		Cable and Satellite — 15.9%
	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†		0		1,300
	1,252,000	Cablevision Systems Corp., Cl. A		3,015,247		30,060,520
	52,000	Comcast Corp., Cl. A, Special		927,430		854,360
	500,000	DIRECTV, Cl. A†		7,632,118		16,960,000
	97,000	DISH Network Corp., Cl. A		1,854,882		1,760,550
	49,000	EchoStar Corp., Cl. A†		1,244,899		934,920
	235,000	Liberty Global Inc., Cl. A†		4,284,186		6,107,650
	332,000	Rogers Communications Inc., Cl. B		1,060,510		10,876,320
	106,000	Scripps Networks Interactive Inc., Cl. A		3,388,205		4,276,040
	10,000	Time Warner Cable Inc.		442,515		520,800
				23,941,917		72,352,460
		Communications Equipment — 1.1%
	10,000	Alcatel-Lucent, ADR†		76,325		25,400
	297,000	Corning Inc.		2,719,121		4,796,550
				2,795,446		4,821,950
		Computer Software and Services — 0.1%
	8,000	Alibaba.com Ltd.		14,075		16,006
	24,000	AOL Inc.†		525,455		498,960
				539,530		514,966
		Consumer Products — 5.5%
	58,000	Energizer Holdings Inc.†		1,360,690		2,916,240
	10,000	Fortune Brands Inc.		473,277		391,800
	566	Givaudan SA		161,059		483,898
	800	National Presto Industries Inc.		23,862		74,288
	85,000	Pactiv Corp.†		753,082		2,367,250
	855,000	Swedish Match AB		12,018,734		18,783,497
	2,000	Wolverine World Wide Inc.		19,468		50,440
				14,810,172		25,067,413
		Consumer Services — 1.4%
	6,500	IAC/InterActiveCorp.†		109,646		142,805
	205,000	Liberty Media Corp. - Interactive, Cl. A†		3,306,266		2,152,500
	165,000	Rollins Inc.		829,471		3,413,850
	65,000	TiVo Inc.†		582,089		479,700
				4,827,472		6,188,855

See accompanying notes to financial statements.

4

The Gabelli Value Fund Inc.
Schedule of Investments (Continued) — June 30, 2010 (Unaudited)

					Market
Shares			Cost		Value
		COMMON STOCKS (Continued)
		Diversified Industrial — 6.1%
	42,000	Ampco-Pittsburgh Corp.	$	210,015	$	874,860
	8,000	Cooper Industries plc		267,867		352,000
	163,000	Crane Co.		4,256,891		4,924,230
	112,037	Griffon Corp.†		1,176,293		1,239,129
	291,000	Honeywell International Inc.		8,339,780		11,357,730
	116,000	ITT Corp.		4,906,736		5,210,720
	209,000	Katy Industries Inc.†		1,273,584		361,570
	98,330	Tyco International Ltd.		3,924,817		3,464,166
				24,355,983		27,784,405
		Educational Services — 0.2%
	8,500	ITT Educational Services Inc.†		821,211		705,670
		Electronics — 3.2%
	184,000	LSI Corp.†		1,079,118		846,400
	12,500	Rovi Corp.†		194,418		473,875
	195,000	Texas Instruments Inc.		4,775,927		4,539,600
	4,000	Thermo Fisher Scientific Inc.†		92,199		196,200
	191,000	Thomas & Betts Corp.†		3,647,439		6,627,700
	74,000	Tyco Electronics Ltd.		2,405,054		1,878,120
				12,194,155		14,561,895
		Energy and Utilities — 2.2%
	11,700	Chevron Corp.		716,073		793,962
	110,000	ConocoPhillips		2,924,997		5,399,900
	5,420	Mirant Corp.†		25,619		57,235
	200,000	Mirant Corp., Escrow† (a)		0		0
	16,000	National Fuel Gas Co.		794,136		734,080
	8,000	NextEra Energy Inc.		375,557		390,080
	67,000	Northeast Utilities		1,304,223		1,707,160
	35,000	Southwest Gas Corp.		869,427		1,032,500
				7,010,032		10,114,917
		Entertainment — 14.8%
	8,570	Chestnut Hill Ventures† (a)		233,241		289,066
	148,000	Discovery Communications Inc., Cl. A†		2,445,935		5,285,080
	172,000	Discovery Communications Inc., Cl. C†		2,023,975		5,319,960
	65,000	Dover Motorsports Inc.†		315,664		118,300
	255,000	Grupo Televisa SA, ADR		2,309,514		4,439,550
	289,000	Madison Square Garden Inc., Cl. A†		661,883		5,684,630
	310,001	Time Warner Inc.		8,256,741		8,962,129
	878,000	Viacom Inc., Cl. A		25,827,439		31,309,480
	276,001	Vivendi		4,059,584		5,675,206
				46,133,976		67,083,401
		Environmental Services — 2.5%
	299,000	Republic Services Inc.		3,831,595		8,889,270
	80,000	Waste Management Inc.		2,159,086		2,503,200
				5,990,681		11,392,470
		Equipment and Supplies — 3.1%
	165,000	CIRCOR International Inc.		1,953,490		4,220,700
	59,000	Federal Signal Corp.		511,917		356,360
	50,500	Flowserve Corp.		664,565		4,282,400
	61,000	Gerber Scientific Inc.†		375,425		326,350
	87,000	GrafTech International Ltd.†		1,003,574		1,271,940
	123,000	Watts Water Technologies Inc., Cl. A		1,736,732		3,525,180
				6,245,703		13,982,930
		Financial Services — 4.3%
	260,000	American Express Co.		7,054,769		10,322,000
	20,000	Artio Global Investors Inc.		517,480		314,800
	26,000	Deutsche Bank AG		1,500,517		1,460,160
	95,000	H&R Block Inc.		1,750,555		1,490,550
	20,000	Interactive Brokers Group Inc., Cl. A†		386,998		332,000
	11,038	JPMorgan Chase & Co.		324,057		404,101
	46,000	Kinnevik Investment AB, Cl. B		698,808		742,740
	64,000	Legg Mason Inc.		1,757,088		1,793,920
	21,000	SLM Corp.†		438,855		218,190
	71,000	The Bank of New York Mellon Corp.		2,119,517		1,752,990
	33,000	Wells Fargo & Co.		898,085		844,800
				17,446,729		19,676,251
		Food and Beverage — 5.8%
	49,000	Constellation Brands Inc., Cl. A†		786,417		765,380
	5,000	Corn Products International Inc.		61,638		151,500
	90,000	Davide Campari — Milano SpA		439,326		445,180
	18,000	Del Monte Foods Co.		136,514		259,020
	178,000	Diageo plc, ADR		6,869,120		11,167,720
	45,000	Dr. Pepper Snapple Group Inc.		1,109,303		1,682,550
	8,000	Flowers Foods Inc.		43,372		195,440
	98,000	Fomento Economico Mexicano SAB de CV, ADR		1,180,702		4,228,700
	31,000	H.J. Heinz Co.		1,045,150		1,339,820
	12,000	Kellogg Co.		554,827		603,600
	25,000	Kerry Group plc, Cl. A		290,481		697,026
	48,000	Kraft Foods Inc., Cl. A		1,402,031		1,344,000
	7,000	PepsiCo Inc.		341,514		426,650
	18,000	Pernod-Ricard SA		1,540,990		1,408,286
	14,000	Remy Cointreau SA		831,862		750,110
	16,000	Sara Lee Corp.		229,370		225,600
	9,000	The Hershey Co.		344,327		431,370
				17,206,944		26,121,952

See accompanying notes to financial statements.

5

The Gabelli Value Fund Inc.
Schedule of Investments (Continued) — June 30, 2010 (Unaudited)

					Market
Shares			Cost		Value
		COMMON STOCKS (Continued)
		Health Care — 0.9%
	4,000	Chemed Corp.	$	125,792	$	218,560
	16,000	Covidien plc		663,014		642,880
	18,500	Mead Johnson Nutrition Co.		566,601		927,220
	20,000	Millipore Corp.†		2,123,400		2,133,000
				3,478,807		3,921,660
		Hotels and Gaming — 1.2%
	48,000	Dover Downs Gaming & Entertainment Inc.		296,074		138,720
	142,000	Gaylord Entertainment Co.†		3,914,343		3,136,780
	475,000	Ladbrokes plc		3,467,650		902,734
	50,000	Las Vegas Sands Corp.†		526,498		1,107,000
	25,300	MGM Resorts International†		178,109		243,892
				8,382,674		5,529,126
		Machinery — 1.4%
	73,000	CNH Global NV†		1,295,607		1,653,450
	66,000	Deere & Co.		1,384,349		3,674,880
	41,000	Zebra Technologies Corp., Cl. A†		1,147,408		1,040,170
				3,827,364		6,368,500
		Metals and Mining — 9.6%
	308,000	Barrick Gold Corp.		5,686,940		13,986,280
	30,000	Freeport-McMoRan Copper & Gold Inc.		940,407		1,773,900
	98,000	Kinross Gold Corp.		808,548		1,674,820
	422,000	Newmont Mining Corp.		7,907,210		26,054,280
				15,343,105		43,489,280
		Publishing — 2.7%
	520,000	Media General Inc., Cl. A†		9,681,401		5,075,200
	53,000	Meredith Corp.		1,068,357		1,649,890
	482,000	News Corp., Cl. A		7,173,222		5,764,720
	1	The E.W. Scripps Co., Cl. A†		11		8
				17,922,991		12,489,818
		Real Estate — 0.7%
	133,600	Griffin Land & Nurseries Inc.		1,586,869		3,393,440
		Retail — 1.1%
	66,000	HSN Inc.†		988,012		1,584,000
	50,000	Ingles Markets Inc., Cl. A		572,181		752,500
	100,000	Safeway Inc.		2,020,190		1,966,000
	19,000	Walgreen Co.		633,593		507,300
				4,213,976		4,809,800
		Specialty Chemicals — 0.6%
	195,000	Ferro Corp.†		2,681,832		1,437,150
	6,500	FMC Corp.		289,248		373,295
	16,000	International Flavors & Fragrances Inc.		710,361		678,720
	3,000	Monsanto Co.		127,974		138,660
				3,809,415		2,627,825
		Telecommunications — 4.6%
	550,000	Cincinnati Bell Inc.†		1,872,564		1,655,500
	65,000	RCN Corp.†		414,187		962,650
	965,000	Sprint Nextel Corp.†		9,224,383		4,091,600
	365,000	Telephone & Data Systems Inc.		7,914,668		11,092,350
	122,000	Telephone & Data Systems Inc., Special		2,724,202		3,237,880
				22,150,004		21,039,980
		Wireless Communications — 0.6%
	10,000	Millicom International Cellular SA		723,656		810,700
	40,000	United States Cellular Corp.†		1,880,524		1,646,000
	7,000	ViaSat Inc.†		215,315		227,920
				2,819,495		2,684,620
		TOTAL COMMON STOCKS		309,250,505		453,445,296
		WARRANTS — 0.0%
		Business Services — 0.0%
	32,000	SearchMedia Holdings Ltd., expire 11/19/11†		79,875		15,360
		Energy and Utilities — 0.0%
	17,405	Mirant Corp., Ser. A, expire 01/03/11†		35,380		1,081
		TOTAL WARRANTS		115,255		16,441

Principal
Amount
		U.S. GOVERNMENT OBLIGATIONS — 0.1%
$	507,000	U.S. Treasury Bills, 0.122% to 0.175%††, 07/22/10 to 12/02/10		506,839		506,839
		TOTAL INVESTMENTS — 100.1%	$	309,872,599		453,968,576
		Other Assets and Liabilities (Net) — (0.1)%				(383,080	)
		NET ASSETS — 100.0%			$	453,585,496

(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, 2010, the market value of fair valued securities amounted to $289,066 or 0.06% of net assets.
†	Non-income producing security.
††	Represents annualized yield at date of purchase.
ADR	American Depositary Receipt

See accompanying notes to financial statements.

6

The Gabelli Value Fund Inc.

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)

Assets:
Investments, at value (cost $309,872,599)	$	453,968,576
Receivable for investments sold		331,333
Receivable for Fund shares sold		185,917
Dividends receivable		706,663
Prepaid expenses		37,564
Total Assets		455,230,053
Liabilities:
Payable to custodian		88,623
Payable for Fund shares redeemed		391,659
Payable for investments purchased		137,746
Payable for investment advisory fees		391,759
Payable for distribution fees		102,079
Payable for accounting fees		7,500
Payable for shareholder services fees		335,390
Payable for shareholder communications expenses		120,321
Other accrued expenses		69,480
Total Liabilities		1,644,557
Net Assets applicable to 35,476,926 shares outstanding	$	453,585,496
Net Assets Consist of:
Paid-in capital	$	304,812,861
Accumulated net investment income		573,754
Accumulated net realized gain on investments and foreign currency transactions		4,103,039
Net unrealized appreciation on investments		144,095,977
Net unrealized depreciation on foreign currency translations		(135	)
Net Assets	$	453,585,496
Shares of Capital Stock, each at $0.001 par value:
Class AAA:
Net Asset Value, offering, and redemption price per share ($26,560 ÷2,072 shares outstanding; 50,000,000 shares authorized)	$	12.82
Class A:
Net Asset Value and redemption price per share ($440,152,201 ÷34,363,613 shares outstanding; 100,000,000 shares authorized)	$	12.81
Maximum offering price per share (NAV ÷0.9425, based on maximum sales charge of 5.75% of the offering price)	$	13.59
Class B:
Net Asset Value and offering price per share ($2,130,067 ÷183,460 shares outstanding; 100,000,000 shares authorized)	$	11.61	(a)
Class C:
Net Asset Value and offering price per share ($5,983,440 ÷514,455 shares outstanding; 50,000,000 shares authorized)	$	11.63	(a)
Class I:
Net Asset Value, offering, and redemption price per share ($5,293,228 ÷413,326 shares outstanding; 50,000,000 shares authorized)	$	12.81

(a) Redemption price varies based on the length of time held.

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)

Investment Income:
Dividends (net of foreign taxes of $235,025)	$	4,052,382
Interest		881
Total Investment Income		4,053,263
Expenses:
Investment advisory fees		2,359,724
Distribution fees — Class AAA		7
Distribution fees — Class A		571,830
Distribution fees — Class B		14,686
Distribution fees — Class C		31,215
Shareholder services fees		245,352
Shareholder communications expenses		73,598
Legal and audit fees		42,329
Directors’ fees		34,350
Custodian fees		34,066
Registration expenses		23,226
Accounting fees		22,500
Tax expense		12,209
Interest expense		228
Miscellaneous expenses		23,736
Total Expenses		3,489,056
Net Investment Income		564,207
Net Realized and Unrealized Gain/(Loss) on Investments and Foreign Currency:
Net realized gain on investments		12,125,200
Net realized loss on foreign currency transactions		(19,011	)
Net realized gain on investments and foreign currency transactions		12,106,189
Net change in unrealized depreciation:
on investments		(3,940,562	)
on foreign currency translations		(205	)
Net change in unrealized depreciation on investments and foreign currency translations		(3,940,767	)
Net Realized and Unrealized Gain/(Loss) on Investments and Foreign Currency		8,165,422
Net Increase in Net Assets Resulting from Operations	$	8,729,629

See accompanying notes to financial statements.

7

The Gabelli Value Fund Inc.

Statement of Changes in Net Assets

	Six Months Ended
	June 30, 2010			Year Ended
	(Unaudited)			December 31, 2009
Operations:
Net investment income	$	564,207		$	1,364,135
Net realized gain on investments and foreign currency transactions		12,106,189			3,734,305
Net change in unrealized appreciation/depreciation on investments and foreign currency translations		(3,940,767	)		135,855,468
Net Increase in Net Assets Resulting from Operations		8,729,629			140,953,908
Distributions to Shareholders:
Net investment income
Class A		—			(1,357,710	)
Class I		—			(24,144	)
		—			(1,381,854	)
Net realized gain
Class A		—			(3,899,428	)
Class B		—			(36,843	)
Class C		—			(59,939	)
Class I		—			(40,548	)
		—			(4,036,758	)
Total Distributions to Shareholders		—			(5,418,612	)
Capital Share Transactions:
Class AAA		28,503			—
Class A		(18,144,724	)		(47,622,480	)
Class B		(1,826,724	)		(1,687,072	)
Class C		(413,342	)		(1,254,766	)
Class I		535,333			(335,971	)
Net Decrease in Net Assets from Capital Share Transactions		(19,820,954	)		(50,900,289	)
Redemption Fees		706			7,406
Net Increase/(Decrease) in Net Assets		(11,090,619	)		84,642,413
Net Assets:
Beginning of period		464,676,115			380,033,702
End of period (including undistributed net investment income of $573,754 and $9,547, respectively)	$	453,585,496		$	464,676,115

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:

																																	Ratios to Average Net Assets/
			Income from Investment Operations									Distributions																					Supplemental Data
						Net
	Net Asset		Net			Realized and			Total						Net											Net Asset					Net Assets		Net
Period	Value,		Investment			Unrealized			from			Net			Realized			Return								Value,					End of		Investment						Portfolio
Ended	Beginning		Income			Gain (Loss) on			Investment			Investment			Gain on			of			Total			Redemption		End of		Total			Period		Income			Operating			Turnover
December 31	of Period		(Loss)(a)			Investments			Operations			Income			Investments			Capital			Distributions			Fees(a)(b)		Period		Return†			(in 000’s)		(Loss)			Expenses(c)			Rate
Class AAA
2010(d)	$	14.37	$	0.01		$	(1.56	)	$	(1.55	)		—			—			—			—		$	0.00	$	12.82		(10.8	)%	$	27		0.55	%(e)		1.46	%(e)		3	%
Class A
2010(f)	$	12.58	$	0.02		$	0.21		$	0.23			—			—			—			—		$	0.00	$	12.81		1.8	%	$	440,152		0.25	%(e)		1.47	%(e)		3	%
2009		9.00		0.04			3.69			3.73		$	(0.04	)	$	(0.11	)		—		$	(0.15	)		0.00		12.58		41.4			449,865		0.36			1.52			5
2008		16.78		0.04			(7.47	)		(7.43	)		(0.04	)		(0.03	)	$	(0.28	)		(0.35	)		0.00		9.00		(44.2	)		366,568		0.28			1.41			4
2007		17.61		(0.04	)		0.86			0.82			—			(1.65	)		0.00	(b)		(1.65	)		0.00		16.78		4.6			800,586		(0.20	)		1.39			9
2006		18.11		0.03			3.92			3.95			(0.03	)		(4.42	)		—			(4.45	)		0.00		17.61		21.7			860,789		0.14			1.41			17
2005		19.49		0.02			(0.05	)		(0.03	)		(0.01	)		(1.34	)		—			(1.35	)		0.00		18.11		(0.2	)		1,063,137		0.08			1.40			3
Class B
2010(f)	$	11.45	$	(0.04	)	$	0.20		$	0.16			—			—			—			—		$	0.00	$	11.61		1.4	%	$	2,130		(0.62)	%(e)		2.22	%(e)		3	%
2009		8.24		(0.03	)		3.35			3.32			—		$	(0.11	)		—		$	(0.11	)		0.00		11.45		40.3			3,850		(0.38	)		2.27			5
2008		15.46		(0.06	)		(6.85	)		(6.91	)		—			(0.03	)	$	(0.28	)		(0.31	)		0.00		8.24		(44.6	)		4,252		(0.48	)		2.16			4
2007		16.46		(0.17	)		0.82			0.65			—			(1.65	)		0.00	(b)		(1.65	)		0.00		15.46		3.9			10,774		(0.95	)		2.14			9
2006		17.28		(0.10	)		3.70			3.60			—			(4.42	)		—			(4.42	)		0.00		16.46		20.8			13,046		(0.53	)		2.16			17
2005		18.79		(0.12	)		(0.05	)		(0.17	)		—			(1.34	)		—			(1.34	)		0.00		17.28		(0.9	)		17,804		(0.67	)		2.15			3
Class C
2010(f)	$	11.47	$	(0.03	)	$	0.19		$	0.16			—			—			—			—		$	0.00	$	11.63		1.4	%	$	5,983		(0.51)	%(e)		2.22	%(e)		3	%
2009		8.25		(0.04	)		3.37			3.33			—		$	(0.11	)		—		$	(0.11	)		0.00		11.47		40.4			6,314		(0.39	)		2.27			5
2008		15.48		(0.06	)		(6.86	)		(6.92	)		—			(0.03	)	$	(0.28	)		(0.31	)		0.00		8.25		(44.6	)		5,686		(0.47	)		2.16			4
2007		16.47		(0.17	)		0.83			0.66			—			(1.65	)		0.00	(b)		(1.65	)		0.00		15.48		4.0			14,679		(0.94	)		2.14			9
2006		17.29		(0.11	)		3.71			3.60			—			(4.42	)		—			(4.42	)		0.00		16.47		20.7			14,704		(0.58	)		2.16			17
2005		18.80		(0.12	)		(0.05	)		(0.17	)		—			(1.34	)		—			(1.34	)		0.00		17.29		(0.9	)		14,003		(0.67	)		2.15			3
Class I
2010(f)	$	12.56	$	0.04		$	0.21		$	0.25			—			—			—			—		$	0.00	$	12.81		2.0	%	$	5,293		0.54	%(e)		1.22	%(e)		3	%
2009		8.99		0.06			3.69			3.75		$	(0.07	)	$	(0.11	)		—		$	(0.18	)		0.00		12.56		41.6			4,647		0.59			1.27			5
2008(g)		15.87		0.08			(6.57	)		(6.49	)		(0.08	)		(0.03	)	$	(0.28	)		(0.39	)		0.00		8.99		(40.8	)		3,528		0.66	(e)		1.16	(e)		4

†	Total return represents aggregate total return of a hypothetical $1,000 investment at the beginning of the period and sold at the end of the period including reinvestment of distributions and does not reflect applicable sales charges. Total return for a period of less than one year is not annualized.
(a)	Per share amounts have been calculated using the average shares outstanding method.
(b)	Amount represents less than $0.005 per share.
(c)	The Fund incurred interest expense during the year ended December 31, 2006. If interest expense had not been incurred, the ratios of operating expenses to average net assets would have been 1.40% (Class A), and 2.15% (Class B and Class C), respectively. For the six months ended June 30, 2010, and the years ended December 31, 2009, 2008, and 2007, the effect of interest expense was minimal. For the year ended December 31, 2005, there was no interest expense.
(d)	From the commencement of offering Class AAA Shares on April 30, 2010 through June 30, 2010, unaudited.
(e)	Annualized.
(f)	For the six months ended June 30, 2010, unaudited.
(g)	From the commencement of offering Class I Shares on January 11, 2008 through December 31, 2008.

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 Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) has become the exclusive reference of authoritative United States of America (“U.S.”) generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The ASC has superseded all existing non-SEC accounting and reporting standards. The Fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.

Security Valuation. Portfolio securities listed or traded on a nationally recognized securities exchange or traded in the U.S. over-the-counter market for which market quotations are readily available are valued at the last quoted sale price or a market’s official closing price as of the close of business on the day the securities are being valued. If there were no sales that day, the security is valued at the average of the closing bid and asked prices or, if there were no asked prices quoted on that day, then the security is valued at the closing bid price on that day. If no bid or asked prices are quoted on such day, the security is valued at the most recently available price or, if the Board of 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 sixty days or less that are not credit impaired are valued at amortized cost, unless the Board determines such amount does not reflect the securities’ fair value, in which case these securities will be fair valued as determined by the Board. Debt instruments having a maturity greater than sixty days for which market quotations are readily available are valued at the average of the latest bid and asked prices. If there were no asked prices quoted on such day, the security is valued using the closing bid price. U.S. government obligations with maturities greater than sixty days are normally valued using a model that incorporates market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, and reference data. Certain securities are valued principally using dealer quotations. Futures contracts are valued at the closing settlement price of the exchange or board of trade on which the applicable contract is traded.

10

The Gabelli Value Fund Inc.
Notes to Financial Statements (Continued) (Unaudited)

Securities and assets for which market quotations are not readily available are fair valued as determined by the Board. Fair valuation methodologies and procedures may include, but are not limited to: analysis and review of available financial and non-financial information about the company; comparisons with the valuation and changes in valuation of similar securities, including a comparison of foreign securities with the equivalent U.S. dollar value ADR securities at the close of the U.S. exchange; and evaluation of any other information that could be indicative of the value of the security.

The inputs and valuation techniques used to measure fair value of the Fund’s investments are summarized into three levels as described in the hierarchy below:

• Level 1 – quoted prices in active markets for identical securities;

• Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.); and

• Level 3 – significant unobservable inputs (including the Fund’s determinations as to the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of the Fund’s investments in securities by inputs used to value the Fund’s investments as of June 30, 2010 is as follows:

	Valuation Inputs
	Level 1		Level 2 Other Significant		Level 3 Significant		Total Market Value
	Quoted Prices		Observable Inputs		Unobservable Inputs		at 6/30/10
INVESTMENTS IN SECURITIES:
ASSETS (Market Value):
Common Stocks:
Aerospace	$	8,404,301	$	134,469		—	$	8,538,770
Cable and Satellite		72,352,460		—	$	0		72,352,460
Energy and Utilities		10,114,917		—		0		10,114,917
Entertainment		66,794,335		—		289,066		67,083,401
Other Industries (a)		295,355,748		—		—		295,355,748
Total Common Stocks		453,021,761		134,469		289,066		453,445,296
Warrants (a)		16,441		—		—		16,441
U.S. Government Obligations		—		506,839		—		506,839
TOTAL INVESTMENTS IN SECURITIES – ASSETS	$	453,038,202	$	641,308	$	289,066	$	453,968,576

(a) Please refer to the Schedule of Investments for the industry classifications of these portfolio holdings.

The Fund did not have significant transfers between Level 1 and Level 2 during the reporting period.

11

The Gabelli Value Fund Inc.
Notes to Financial Statements (Continued) (Unaudited)

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

																	Net change
																	in unrealized
																	appreciation/
																	depreciation
																	during the
																	period on
							Change in										Level 3
	Balance		Accrued		Realized		unrealized		Net		Transfers		Transfers		Balance		investments
	as of		discounts/		gain/		appreciation/		purchases/		into		out of		as of		held at
	12/31/09		(premiums)		(loss)		depreciation†		(sales)		Level 3††		Level 3††		6/30/10		6/30/10†
INVESTMENTS IN SECURITIES:
ASSETS (Market Value):
Common Stocks:
Cable and Satellite	$	0	$	—	$	—	$	—	$	—	$	—	$	—	$	0	$	—
Energy and Utilities		0		—		—		—		—		—		—		0		—
Entertainment		289,066		—		—		—		—		—		—		289,066		—
Total Common Stocks		289,066		—		—		—		—		—		—		289,066		—
TOTAL INVESTMENTS IN SECURITIES	$	289,066	$	—	$	—	$	—	$	—	$	—	$	—	$	289,066	$	—

†	Net change in unrealized appreciation/depreciation on investments is included in the related amounts in the Statement of Operations.
††	The Fund’s policy is to recognize transfers into and transfers out of Level 3 as of the beginning of the reporting period.

In January 2010, the FASB issued amended guidance to improve disclosure about fair value measurements which requires additional disclosures about transfers between Levels 1 and 2 and separate disclosures about purchases, sales, issuances, and settlements in the reconciliation of fair value measurements using significant unobservable inputs (Level 3). It also clarifies existing disclosure requirements relating to the levels of disaggregation of fair value measurement and inputs and valuation techniques used to measure fair value. Disclosures about purchases, sales, issuances, and settlements in the rollforward of activity in Level 3 fair value measurements are effective for fiscal years beginning after December 15, 2010 and for interim periods within those fiscal years. Management is currently evaluating the implications of this guidance on the Fund’s financial statements. The remainder of the amended guidance is effective for financial statements for fiscal years beginning after December 15, 2009 and interim periods within those fiscal years. Management has evaluated the impact of this guidance on the Fund’s financial statements and determined that there is no impact as of June 30, 2010.

Derivative Financial Instruments.

The Fund may engage in various portfolio investment strategies by investing in a number of derivative financial instruments for the purpose of hedging against changes in the value of its portfolio securities and in the value of securities it intends to purchase. Investing in certain derivative financial instruments, including participation in the options, futures, or swap markets, entails certain execution, liquidity, hedging, tax, and securities, interest, credit, or currency market risks. Losses may arise if the Adviser’s prediction of movements in the direction of the securities, foreign currency, and interest rate markets is inaccurate. Losses may also arise if the counterparty does not perform its duties under a contract, or that, in the event of default, the Fund may be delayed in or prevented from obtaining payments or other contractual remedies owed to it under derivative contracts. The creditworthiness of the counterparties is closely monitored in order to minimize these risks. Participation in derivative transactions involves investment risks, transaction costs, and potential losses to

12

The Gabelli Value Fund Inc.
Notes to Financial Statements (Continued) (Unaudited)

which the Fund would not be subject absent the use of these strategies. The consequences of these risks, transaction costs, and losses may have a negative impact on the Fund’s ability to pay distributions.

The Fund’s derivative contracts held at June 30, 2010, if any, are not accounted for as hedging instruments under GAAP.

     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, and 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. During the six months ended June 30, 2010, the Fund had no investments in futures contracts.

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. It is the policy of the Fund to receive and maintain securities as collateral whose market value is not less than their repurchase price. The Fund will make payment for such securities only upon physical delivery or upon evidence of book entry transfer of the collateral to the account of the custodian. To the extent that any repurchase transaction exceeds one business day, the value 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, 2010, there were no open repurchase agreements.

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 broker retains collateral for the value of the open positions, which is adjusted periodically as the value of the position fluctuates. The Fund did not hold any short positions as of June 30, 2010.

13

The Gabelli Value Fund Inc.
Notes to Financial Statements (Continued) (Unaudited)

Foreign Currency Translations. The books and records of the Fund are maintained in U.S. dollars. Foreign currencies, investments, and other assets and liabilities are translated into U.S. dollars at the current exchange rates. Purchases and sales of investment securities, income, and expenses are translated at the exchange rate prevailing on the respective dates of such transactions. Unrealized gains and losses that result from changes in foreign exchange rates and/or changes in market prices of securities have been included in unrealized appreciation/depreciation on investments and foreign currency translations. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date on investment securities transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of the Fund and the amounts actually received. The portion of foreign currency gains and losses related to fluctuation in exchange rates between the initial purchase trade date and subsequent sale trade date is included in realized gain/loss on investments.

Foreign Securities. The Fund may directly purchase securities of foreign issuers. Investing in securities of foreign issuers involves special risks not typically associated with investing in securities of U.S. issuers. The risks include possible revaluation of currencies, the inability to repatriate funds, less complete financial information about companies, and possible future adverse political and economic developments. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than 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 net asset value (“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

14

The Gabelli Value Fund Inc.
Notes to Financial Statements (Continued) (Unaudited)

be included in “interest expense” in the Statement of Operations. There were no custodian fee credits earned during the six months ended June 30, 2010.

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 GAAP. 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 for federal income tax purposes 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.

The tax character of distributions paid during the year ended December 31, 2009 was as follows:

Distributions paid from:
Ordinary income	$	1,369,755
Net long-term capital gains		4,048,857
Total distributions paid	$	5,418,612

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.

To be consistent with the application of Federal Excise Tax rules regarding undistributed income of regulated investment companies, the Fund paid $12,209 with its 2009 federal excise return.

The following summarizes the tax cost of investments and the related net unrealized appreciation/depreciation at June 30, 2010:

			Gross		Gross
			Unrealized		Unrealized			Net Unrealized
	Cost		Appreciation		Depreciation			Appreciation
Investments	$	318,323,262	$	174,743,066	$	(39,097,752	)	$	135,645,314

The Fund is required to evaluate tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Income tax and related interest and penalties would be recognized by the Fund as tax expense in the Statement of Operations if the tax positions were deemed not to meet the more-likely-than-not threshold. For the six months ended June 30, 2010, the Fund did not incur any interest or penalties. As of June 30, 2010, the Adviser has reviewed all open tax years and concluded that there was no impact to the Fund’s net assets or results of operations. Tax years ended December 31, 2007 through December 31, 2009 remain subject to examination by the Internal Revenue Service and state taxing authorities. On an ongoing basis, the Adviser will monitor the Fund’s tax positions to determine if adjustments to this conclusion are necessary.

15

The Gabelli Value Fund Inc.
Notes to Financial Statements (Continued) (Unaudited)

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 an affiliated person an annual retainer of $10,000 plus $1,000 for each Board meeting attended. Each Director is reimbursed by the Fund for any out of pocket expenses incurred in attending meetings. All Board committee members receive $500 per meeting attended, the Chairman of each committee receives $2,500 per year, and the Lead Director receives an annual fee of $1,000. A Director may receive a single meeting fee, allocated among the participating funds, for participation in certain meetings held on behalf of multiple funds. 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 & Co.”), an affiliate of the Adviser, serves as Distributor of the Fund. Under the Class AAA, Class A, Class B, and Class C Share Plans, payments are authorized to Gabelli & Co. at annual rates of 0.25%, 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 sales of securities for the six months ended June 30, 2010, other than short-term securities and U.S. Government obligations, aggregated $13,378,576 and $32,388,726, respectively.

Sales of U.S. Government obligations for the six months ended June 30, 2010, other than short-term obligations, aggregated $762,461.

6. Transactions with Affiliates. During the six months ended June 30, 2010, the Fund paid brokerage commissions on security trades of $44,242 to Gabelli & Co. Additionally, Gabelli & Co. informed the Fund that it retained $12,485 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, 2010, the Fund paid or accrued $22,500 to the Adviser in connection with the cost of computing the Fund’s NAV.

16

The Gabelli Value Fund Inc.
Notes to Financial Statements (Continued) (Unaudited)

7. Capital Stock. The Fund offers five classes of shares – Class AAA Shares, Class A Shares, Class B Shares, Class C Shares, and Class I Shares. Class AAA Shares are offered without a sales charge only to investors who acquire them directly from Gabelli & Co., through selected broker/dealers, or the transfer agent. Class I Shares are offered through Gabelli & Co. and selected broker/dealers to foundations, endowments, institutions, and employee benefit plans without a sales charge. Class A Shares are subject to a maximum front-end sales charge of 5.75%. 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 Class B CDSC is equal to a percentage declining from 5% 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 & Co. Class AAA Shares were first issued on April 30, 2010.

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, 2010 and the year ended December 31, 2009 amounted to $706 and $7,406, 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.

17

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, 2010						Year Ended
	(Unaudited)*						December 31, 2009
	Shares			Amount			Shares			Amount
Class AAA
Shares sold		2,072		$	28,503			—			—
Net increase		2,072		$	28,503			—			—
Class A
Shares sold		1,289,650		$	17,244,941			1,330,319		$	13,802,526
Shares issued upon reinvestment of distributions		—			—			382,008			4,851,497
Shares redeemed		(2,679,723	)		(35,389,665	)		(6,677,972	)		(66,276,503	)
Net decrease		(1,390,073	)	$	(18,144,724	)		(4,965,845	)	$	(47,622,480	)
Class B
Shares sold		—			—			58		$	596
Shares issued upon reinvestment of distributions		—			—			3,014			34,808
Shares redeemed		(152,854	)	$	(1,826,724	)		(182,748	)		(1,722,476	)
Net decrease		(152,854	)	$	(1,826,724	)		(179,676	)	$	(1,687,072	)
Class C
Shares sold		33,242		$	399,923			29,220		$	257,961
Shares issued upon reinvestment of distributions		—			—			3,701			42,816
Shares redeemed		(69,351	)		(813,265	)		(171,558	)		(1,555,543	)
Net decrease		(36,109	)	$	(413,342	)		(138,637	)	$	(1,254,766	)
Class I
Shares sold		91,529		$	1,185,812			181,265		$	1,722,290
Shares issued upon reinvestment of distributions		—			—			1,396			17,693
Shares redeemed		(48,077	)		(650,479	)		(205,306	)		(2,125,954	)
Net increase/(decrease)		43,452		$	535,333			(22,645	)	$	(335,971	)

* For Class AAA Shares, from the commencement of offering these shares on April 30, 2010.

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. Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote.

18

The Gabelli Value Fund Inc.
Notes to Financial Statements (Continued) (Unaudited)

9. Other Matters. On April 24, 2008, the Investment Adviser entered into a settlement with the SEC to resolve an 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 an administrative order that was entered in connection with the settlement, the SEC found that the Investment Adviser had willfully violated Section 206(2) of the Investment Advisers Act of 1940, Section 17(d) of the 1940 Act and Rule 17d-1 thereunder, and had willfully aided and abetted and caused violations of Section 12(d)(1)(B)(i) of the 1940 Act. Under the terms of the settlement, the Investment Adviser, while neither admitting nor denying the SEC’s findings and allegations, paid $16 million (which included a $5 million civil monetary penalty), approximately $12.8 million of which is in the process of being paid to shareholders of the Global Growth Fund in accordance with a plan developed by an independent distribution consultant and approved by the independent directors of the Global Growth Fund and acceptable to the staff of the SEC, and agreed to cease and desist from future violations of the above referenced federal securities laws. The SEC’s order also noted the cooperation that the Investment Adviser gave the staff of the SEC. The settlement will not have a material adverse impact on the Investment Adviser or its ability to fulfill its obligations under the Investment Advisory Agreement. On the same day, the SEC filed a civil action against the Executive Vice President and Chief Operating Officer of the Investment Adviser, alleging violations of certain federal securities laws arising from the same matter. The officer is also an officer of the Fund, the Global Growth Fund, and other funds in the Gabelli/GAMCO fund complex. The officer denied the allegations and is continuing in his positions with the Investment Adviser and the funds. The court dismissed certain claims, finding that the SEC was not entitled to pursue various remedies against the officer while leaving one remedy in the event the SEC were able to prove violations of law. The court, in response to a motion by the SEC, subsequently dismissed the remaining remedy without prejudice against the officer, which would allow the SEC to appeal the court’s rulings. The Investment Adviser currently expects that any resolution of the action against the officer will not have a material adverse impact on the Investment Adviser or its ability to fulfill its obligations under the Investment Advisory Agreement.

10. Subsequent Events. Management has evaluated the impact on the Fund of all subsequent events occurring through the date the financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.

19

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 24, 2010, 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. While the Fund had underperformed relative to its peer group over various time periods, the Independent Board Members noted the improvement during the most recently completed nine months. In addition, they noted several factors that may have contributed to the past underperformance and which may not have affected many peer funds, including (1) that the Fund is a non-diversified fund with larger exposure to certain issuers; (2) that the Fund tends to have low turnover, holding positions for longer periods; (3) that the Fund’s investments had focused on the entertainment and media sectors, which underperformed certain other sectors; and (4) that the Fund was experiencing net redemptions, which can adversely affect portfolio management flexibility. Encouraged by the more recent Fund performance, the Independent Board Members and concluded that the Adviser was delivering acceptable performance results.

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. They noted that, while the management fees are at the higher end relative to peer firms, the Fund’s other expenses are below the group average. The independent Board Members also considered 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 is much more extensive than those under the advisory agreements for non-fund clients.

20

b) Profitability and Costs of Services to Adviser. The Independent Board Members considered the Adviser’s overall profitability and costs, and pro forma estimates of the Adviser’s profitability and costs attributable to the Fund. With regard to the Adviser, that information was presented (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.

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.

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 Advisory Agreement was in the best interests of the Fund and its shareholders. As a part of its decision making process, the Independent Board Members noted that the Adviser has managed the Fund since its inception, and the Independent Board Members believe that a long-term relationship with a capable, conscientious adviser is in the best interests of the Fund. The Independent Board Members considered, generally, that shareholders invested in the Fund knowing that the Adviser managed the Fund and knowing its investment 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.

21

Gabelli/GAMCO Funds and Your Personal Privacy

Who are we?

The Gabelli/GAMCO Funds are investment companies registered with the Securities and Exchange Commission under the Investment Company Act of 1940. We are managed by Gabelli Funds, LLC or Teton Advisors, Inc., which are affiliated with GAMCO Investors, Inc. GAMCO Investors, Inc. is a publicly held company that has subsidiaries that provide investment advisory or brokerage services for a variety of clients. Teton Advisors, Inc. is a publicly held company that provides investment advisory services to the GAMCO Westwood Funds.

What kind of non-public information do we collect about you if you become a shareholder?

If you apply to open an account directly with us, you will be giving us some non-public information about yourself. The non-public information we collect about you is:

• Information you give us on your application form. This could include your name, address, telephone number, social security number, bank account number, and other information.

• Information about your transactions with us, any transactions with our affiliates, and transactions with the entities we hire to provide services to you. This would include information about the shares that you buy or redeem. If we hire someone else to provide services—like a transfer agent—we will also have information about the transactions that you conduct through them.

What information do we disclose and to whom do we disclose it?

We do not disclose any non-public personal information about our customers or former customers to anyone other than our affiliates, our service providers who need to know such information, and as otherwise permitted by law. If you want to find out what the law permits, you can read the privacy rules adopted by the Securities and Exchange Commission. They are in volume 17 of the Code of Federal Regulations, Part 248. The Commission often posts information about its regulations on its website, www.sec.gov.

What do we do to protect your personal information?

We restrict access to non-public personal information about you to the people who need to know that information in order to provide services to you or the Fund and to ensure that we are complying with the laws governing the securities business. We maintain physical, electronic, and procedural safeguards to keep your personal information confidential.

GABELLI FAMILY OF FUNDS

VALUE

Gabelli Asset Fund

Seeks to invest primarily in a diversified portfolio of common stocks selling at significant discounts to their private market value. The Fund’s primary objective is growth of capital. (Multiclass)

Portfolio Manager: Mario J. Gabelli, CFA

Gabelli Blue Chip Value Fund

Seeks long term growth of capital through investment primarily in the common stocks of established companies which are temporarily out of favor. The fund’s objective is to identify a catalyst or sequence of events that will return the company to a higher value. (Multiclass)

Portfolio Manager: Barbara Marcin, CFA

GAMCO Westwood Equity Fund

Seeks to invest primarily in the common stock of well seasoned companies that have recently reported positive earnings surprises and are trading below Westwood’s proprietary growth rate estimates. The Fund’s primary objective is capital appreciation. (Multiclass)

Portfolio Manager: Susan M. Byrne

FOCUSED VALUE

Gabelli Value Fund

Seeks to invest in securities of companies believed to be undervalued. The Fund’s primary objective is long-term capital appreciation. (Multiclass)

Portfolio Manager: Mario J. Gabelli, CFA

SMALL CAP VALUE

Gabelli Small Cap Fund

Seeks to invest primarily in common stock of smaller companies (market capitalizations at the time of investment of $2 billion or less) believed to have rapid revenue and earnings growth potential. The Fund’s primary objective is capital appreciation. (Multiclass)

Portfolio Manager: Mario J. Gabelli, CFA

GAMCO Westwood SmallCap Equity Fund

Seeks to invest primarily in smaller capitalization equity securities – market caps of $2.5 billion or less. The Fund’s primary objective is long-term capital appreciation. (Multiclass)

Portfolio Manager: Nicholas F. Galluccio

Gabelli Woodland Small Cap Value Fund

Seeks to invest primarily in the common stocks of smaller companies (market capitalizations generally less than $3.0 billion) believed to be undervalued with shareholder oriented management teams that are employing strategies to grow the company’s value. The Fund’s primary objective is capital appreciation. (Multiclass)

Portfolio Manager: Elizabeth M. Lilly, CFA

GROWTH

GAMCO Growth Fund

Seeks to invest primarily in large cap stocks believed to have favorable, yet undervalued, prospects for earnings growth. The Fund’s primary objective is capital appreciation. (Multiclass)

Portfolio Manager: Howard F. Ward, CFA

GAMCO International Growth Fund

Seeks to invest in the equity securities of foreign issuers with long-term capital appreciation potential. The Fund offers investors global diversification. (Multiclass)

Portfolio Manager: Caesar Bryan

AGGRESSIVE GROWTH

GAMCO Global Growth Fund

Seeks capital appreciation through a disciplined investment program focusing on the globalization and interactivity of the world’s marketplace. The Fund invests in companies at the forefront of accelerated growth. The Fund’s primary objective is capital appreciation. (Multiclass)

Team Managed

MICRO-CAP

GAMCO Westwood Mighty Mites^SM Fund

Seeks to invest in micro-cap companies that have market capitalizations of $300 million or less. The Fund’s primary objective is long-term capital appreciation. (Multiclass)

Team Managed

EQUITY INCOME

Gabelli Equity Income Fund

Seeks to invest primarily in equity securities with above average market yields. The Fund pays monthly dividends and seeks a high level of total return with an emphasis on income. (Multiclass)

Portfolio Manager: Mario J. Gabelli, CFA

GAMCO Westwood Balanced Fund

Seeks to invest in a balanced and diversified portfolio of stocks and bonds. The Fund’s primary objective is both capital appreciation and current income. (Multiclass)

Co-Portfolio Managers: Susan M. Byrne      
Mark Freeman, CFA

GAMCO Westwood Income Fund

Seeks to provide a high level of current income as well as long-term capital appreciation by investing in income producing equity and fixed income securities. (Multiclass)

Portfolio Manager: Barbara Marcin, CFA

SPECIALTY EQUITY

GAMCO Global Convertible Securities Fund

Seeks to invest principally in bonds and preferred stocks which are convertible into common stock of foreign and domestic companies. The Fund’s primary objective is total return through a combination of current income and capital appreciation. (Multiclass)

Team Managed

GAMCO Global Opportunity Fund

Seeks to invest in common stock of companies which have rapid growth in revenues and earnings and potential for above average capital appreciation or are undervalued. The Fund’s primary objective is capital appreciation. (Multiclass)

Team Managed

Gabelli SRI Green Fund

Seeks to invest in common and preferred stocks meeting guidelines for social responsibility (avoiding defense contractors and manufacturers of alcohol, abortifacients, gaming, and tobacco products) and sustainability (companies engaged in climate change, energy security and independence, natural resource shortages,organic living,and urbanization). The Fund’s primary objective is capital appreciation. (Multiclass)

Co-Portfolio Managers: Christopher C. Desmarais
John M. Segrich, CFA        

SECTOR

GAMCO Global Telecommunications Fund

Seeks to invest in telecommunications companies throughout the world – targeting undervalued companies with strong earnings and cash flow dynamics. The Fund’s primary objective is capital appreciation. (Multiclass)

Team Managed

GAMCO Gold Fund

Seeks to invest in a global portfolio of equity securities of gold mining and related companies. The Fund’s objective is long-term capital appreciation. Investment in gold stocks is considered speculative and is affected by a variety of worldwide economic, financial, and political factors. (Multiclass)

Portfolio Manager: Caesar Bryan

Gabelli Utilities Fund

Seeks to provide a high level of total return through a combination of capital appreciation and current income. (Multiclass)

Team Managed

MERGER AND ARBITRAGE

Gabelli ABC Fund

Seeks to invest in securities with attractive opportunities for appreciation or investment income. The Fund’s primary objective is total return in various market conditions without excessive risk of capital loss. (No-load)

Portfolio Manager: Mario J. Gabelli, CFA

Gabelli Enterprise Mergers and Acquisitions Fund

Seeks to invest in securities believed to be likely acquisition targets within 12–18 months or in arbitrage transactions of publicly announced mergers or other corporate reorganizations. The Fund’s primary objective is capital appreciation. (Multiclass)

Portfolio Manager: Mario J. Gabelli, CFA

CONTRARIAN

GAMCO Mathers Fund

Seeks long-term capital appreciation in various market conditions without excessive risk of capital loss. (No-load)

Portfolio Manager: Henry Van der Eb, CFA

Comstock Capital Value Fund

Seeks capital appreciation and current income. The Fund may use either long or short positions to achieve its objective. (Multiclass)

Portfolio Manager: Martin Weiner, CFA

FIXED INCOME

GAMCO Westwood Intermediate Bond Fund

Seeks to invest in a diversified portfolio of bonds with various maturities. The Fund’s primary objective is total return. (Multiclass)

Portfolio Manager: Mark Freeman, CFA

CASH MANAGEMENT-MONEY MARKET

Gabelli U.S. Treasury Money Market Fund

Seeks to invest exclusively in short-term U.S. Treasury securities. The Fund’s primary objective is to provide high current income consistent with the preservation of principal and liquidity. (No-load)

Co-Portfolio Managers: Judith A. Raneri
Ronald S. Eaker

An investment in the above Money Market Fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.

The Funds may invest in foreign securities which involve risks not ordinarily associated with investments in domestic issues, including currency fluctuation, economic, and political risks.

To receive a prospectus, call 800-GABELLI (422-3554). Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectus contains more information about this and other matters and should be read carefully before investing.

The Gabelli Value Fund Inc.
One Corporate Center
Rye, New York 10580-1422
800-GABELLI
800-422-3554
fax: 914-921-5118
website: www.gabelli.com
e-mail: info@gabelli.com
Net Asset Value per share available daily by
calling 800-GABELLI after 7:00 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
President	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
Joseph H. Egan
Acting 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.

* Agnes Mullady, Treasurer, is on a leave of absence.

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.

GAB409Q210SR

The
Gabelli
Value
Fund
Inc.

SEMI ANNUAL REPORT
JUNE 30, 2010

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 9/1/10 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)*	/s/ Bruce N. Alpert
	Bruce N. Alpert, Principal Executive Officer

Date 9/1/10

By (Signature and Title)*	/s/ Joseph H. Egan
	Joseph H. Egan, Principal Financial Officer

Date 9/1/10

^* Print the name and title of each signing officer under his or her signature.

EX-99.CERT

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: 9/1/10	/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, Joseph H. Egan, 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: 9/1/10	/s/ Joseph H. Egan
	Joseph H. Egan, Principal Financial Officer

EX-99.906CERT

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: 9/1/10	/s/ Bruce N. Alpert
	Bruce N. Alpert, Principal Executive Officer

I, Joseph H. Egan, Principal Financial 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: 9/1/10	/s/ Joseph H. Egan
	Joseph H. Egan, Principal Financial Officer