-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MSwMROv0DAfvR3hGdWIbgPIRjgMq9eNC4nMLufDo27LCjjd9lDX4IPIbYZY/RFKO nl6djmC9gjFvMqIH31YX2A== 0000950123-04-003101.txt : 20040310 0000950123-04-003101.hdr.sgml : 20040310 20040310164908 ACCESSION NUMBER: 0000950123-04-003101 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20031231 FILED AS OF DATE: 20040310 EFFECTIVENESS DATE: 20040310 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GABELLI CAPITAL SERIES FUNDS INC CENTRAL INDEX KEY: 0000901246 IRS NUMBER: 133761834 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-07644 FILM NUMBER: 04660699 BUSINESS ADDRESS: STREET 1: ONE CORPORATE CENTER CITY: RYE STATE: NY ZIP: 10580 BUSINESS PHONE: 8004223554 MAIL ADDRESS: STREET 1: ONE CORPORATE CENTER CITY: RYE STATE: NY ZIP: 10580 FORMER COMPANY: FORMER CONFORMED NAME: WCC CAPITAL GROWTH FUND INC DATE OF NAME CHANGE: 19930714 N-CSR 1 y94821nvcsr.txt FORM N-CSR 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 811-7644 -------- Gabelli Capital Series Funds, 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: December 31, 2003 ------------------ 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, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507. ITEM 1. REPORTS TO STOCKHOLDERS. The Annual Report to Shareholders is attached herewith. / / Gabelli Capital Asset Fund Portfolio of Investments December 31, 2003
COMMON STOCKS -- 92.2% Market Shares Cost Value - ------------------------------------------------------------------- AEROSPACE -- 0.8% 80,000 Titan Corp.+ $ 1,697,844 $ 1,744,800 - ------------------------------------------------------------------- AGRICULTURE -- 2.4% 50,000 AGCO Corp.+ 1,018,345 1,007,000 275,000 Archer-Daniels-Midland Co. 3,486,966 4,185,500 ------------ ------------ 4,505,311 5,192,500 - ------------------------------------------------------------------- AUTOMOTIVE: PARTS AND ACCESSORIES -- 5.2% 7,000 BorgWarner Inc. 352,271 595,490 29,000 CLARCOR Inc. 548,692 1,278,900 280,000 Dana Corp. 4,386,399 5,138,000 90,000 GenCorp Inc. 854,121 969,300 55,000 Modine Manufacturing Co. 1,554,850 1,483,900 68,000 Scheib (Earl) Inc.+ 426,621 166,600 60,000 Standard Motor Products Inc. 976,678 729,000 6,000 Superior Industries International Inc. 156,207 261,120 45,000 Tenneco Automotive Inc.+ 330,019 301,050 34,300 TransPro Inc.+ 216,824 143,717 ------------ ------------ 9,802,682 11,067,077 - ------------------------------------------------------------------- AVIATION: PARTS AND SERVICES -- 2.6% 18,000 Aviall Inc.+ 244,445 279,180 3,000 Barnes Group Inc. 44,681 96,930 28,000 Curtiss-Wright Corp., Cl. B 758,388 1,257,200 115,000 Fairchild Corp., Cl. A+ 740,716 579,600 50,000 Kaman Corp., Cl. A 652,719 636,500 6,500 Moog Inc., Cl. A+ 109,858 321,100 20,001 Precision Castparts Corp. 881,665 908,224 30,000 Sequa Corp., Cl. A+ 1,048,824 1,470,000 ------------ ------------ 4,481,296 5,548,734 - ------------------------------------------------------------------- BROADCASTING -- 5.6% 40,000 Fisher Communications Inc.+ 2,341,396 2,040,000 130,000 Granite Broadcasting Corp.+ 811,711 214,500 220,000 Gray Television Inc. 2,308,168 3,326,400 50,000 Grupo Televisa SA, ADR 1,875,287 1,993,000 50,000 Liberty Corp. 2,401,567 2,259,500 22,000 Lin TV Corp., Cl. A+ 483,760 567,820 45,000 Paxson Communications Corp.+ 361,066 173,250 50,000 Sinclair Broadcast Group Inc., Cl. A+ 578,699 746,000 32,500 Young Broadcasting Inc., Cl. A+ 682,460 651,300 ------------ ------------ 11,844,114 11,971,770 - ------------------------------------------------------------------- BUSINESS SERVICES -- 0.5% 20,000 Cendant Corp.+ 305,380 445,400 73,000 Nashua Corp.+ 637,069 620,500 ------------ ------------ 942,449 1,065,900 - ------------------------------------------------------------------- CABLE -- 2.3% 5,000 Adelphia Communications Corp., Cl. A+ 5,250 3,000 181,900 Cablevision Systems Corp., Cl. A+ 1,339,300 4,254,641 75,000 UnitedGlobalCom Inc., Cl. A+ 343,292 636,000 ------------ ------------ 1,687,842 4,893,641 - -------------------------------------------------------------------
- ------------------------------------------------------------------- Market Shares Cost Value - ------------------------------------------------------------------- COMMUNICATIONS EQUIPMENT -- 2.0% 170,000 Corning Inc.+ $ 1,179,754 $ 1,773,100 100,000 Lucent Technologies Inc.+ 402,920 284,000 135,000 Motorola Inc. 1,421,983 1,899,450 100,000 Nortel Networks Corp.+ 481,000 423,000 ------------ ------------ 3,485,657 4,379,550 - ------------------------------------------------------------------- COMPUTER SOFTWARE AND SERVICES -- 0.2% 20,000 Maxtor Corp.+ 181,600 222,000 100,000 Xanser Corp.+ 290,627 237,000 ------------ ------------ 472,227 459,000 - ------------------------------------------------------------------- CONSUMER PRODUCTS -- 2.1% 9,000 Alberto-Culver Co., Cl. B 427,626 567,720 25,000 Gallaher Group plc, ADR 599,663 1,063,500 30,600 National Presto Industries Inc. 1,043,907 1,106,190 12,000 Procter & Gamble Co. 762,584 1,198,560 10,000 Sony Corp., ADR 317,134 346,700 60,000 Weider Nutrition International Inc.+ 149,346 267,000 ------------ ------------ 3,300,260 4,549,670 - ------------------------------------------------------------------- CONSUMER SERVICES -- 1.8% 20,000 InterActiveCorp.+ 154,375 678,600 140,000 Rollins Inc. 1,625,914 3,157,000 ------------ ------------ 1,780,289 3,835,600 - ------------------------------------------------------------------- DIVERSIFIED INDUSTRIAL -- 7.1% 47,000 Ampco-Pittsburgh Corp. 725,151 642,490 36,000 Baldor Electric Co. 773,737 822,600 40,000 Cooper Industries Ltd., Cl. A 1,695,376 2,317,200 30,000 Crane Co. 623,766 922,200 110,000 General Electric Co. 3,256,386 3,407,800 15,000 Greif Inc., Cl. A 394,217 532,650 13,500 Harbor Global Co. Ltd.+ 31,715 122,850 100,000 Honeywell International Inc. 2,916,354 3,343,000 73,600 Katy Industries Inc.+ 968,000 420,256 80,000 Myers Industries Inc. 752,751 969,600 85,000 Sensient Technologies Corp. 1,634,671 1,680,450 19,000 WHX Corp.+ 104,092 50,730 ------------ ------------ 13,876,216 15,231,826 - ------------------------------------------------------------------- ELECTRONICS -- 1.9% 35,000 Agere Systems Inc., Cl. B+ 71,120 101,500 75,000 Texas Instruments Inc. 1,787,940 2,203,500 75,000 Thomas & Betts Corp. 1,375,461 1,716,750 ------------ ------------ 3,234,521 4,021,750 - ------------------------------------------------------------------- ENERGY AND UTILITIES -- 5.5% 90,000 Allegheny Energy Inc.+ 773,790 1,148,400 80,000 Aquila Inc.+ 286,441 271,200 50,000 CMS Energy Corp.+ 356,085 426,000 20,000 ConocoPhillips 1,163,449 1,311,400 6,000 Devon Energy Corp. 287,172 343,560 70,000 Duquesne Light Holdings Inc. 1,060,298 1,283,800 95,000 El Paso Corp. 829,720 778,050 110,000 El Paso Electric Co.+ 988,418 1,468,500 20,000 Exxon Mobil Corp. 683,662 820,000 4,666 Florida Public Utilities Co. 55,292 73,653 20,000 Kerr-McGee Corp. 1,076,159 929,800
- -------------------------------------------------------------------------------- See accompanying notes to financial statements. 5 Gabelli Capital Asset Fund Portfolio of Investments (Continued)
- ------------------------------------------------------------------- Market Shares Cost Value - ------------------------------------------------------------------- 40,000 Mirant Corp.+ $ 153,300 $ 15,600 60,000 Northeast Utilities 1,151,948 1,210,200 22,000 NSTAR 991,703 1,067,000 17,000 Progress Energy Inc., CVO+ 7,800 3,910 30,400 Southwest Gas Corp. 743,740 682,480 ------------ ------------ 10,608,977 11,833,553 - ------------------------------------------------------------------- ENTERTAINMENT -- 9.0% 37,000 Dover Motorsports Inc. 231,118 129,500 60,000 Fox Entertainment Group Inc., Cl. A+ 1,516,044 1,749,000 6,000 GC Companies Inc.+ 12,120 2,100 140,000 Gemstar-TV Guide International Inc.+ 875,323 707,000 330,000 Liberty Media Corp., Cl. A+ 1,571,714 3,923,700 80,000 Metro-Goldwyn-Mayer Inc.+ 1,098,013 1,367,200 115,000 The Walt Disney Co. 2,402,259 2,682,950 200,000 Time Warner Inc.+ 3,362,397 3,598,000 50,000 Topps Co. Inc. 460,778 513,000 60,000 Viacom Inc., Cl. A 1,326,428 2,656,200 70,000 Vivendi Universal SA, ADR+ 1,086,493 1,699,600 15,000 World Wrestling Entertainment Inc. 145,483 196,500 ------------ ------------ 14,088,170 19,224,750 - ------------------------------------------------------------------- ENVIRONMENTAL SERVICES -- 1.4% 100,000 Allied Waste Industries Inc.+ 999,912 1,388,000 12,000 Catalytica Energy Systems Inc.+ 71,187 41,988 55,000 Waste Management Inc. 1,153,971 1,628,000 ------------ ------------ 2,225,070 3,057,988 - ------------------------------------------------------------------- EQUIPMENT AND SUPPLIES -- 6.4% 35,000 AMETEK Inc. 717,894 1,689,100 40,000 Baldwin Technology Co. Inc., Cl. A+ 63,576 92,000 35,000 Belden Inc. 492,982 738,150 5,000 C&D Technologies Inc. 91,700 95,850 40,000 Capstone Turbine Corp.+ 70,880 74,400 7,000 CIRCOR International Inc. 73,502 168,700 100,000 CTS Corp. 1,102,936 1,150,000 16,000 Cuno Inc.+ 315,437 720,480 21,000 Eastern Co. 326,937 328,440 225,000 Fedders Corp. 1,120,992 1,620,000 35,000 Flowserve Corp.+ 495,714 730,800 21,000 Franklin Electric Co. Inc. 367,306 1,270,290 30,000 GrafTech International Ltd.+ 388,561 405,000 20,000 IDEX Corp. 498,310 831,800 3,000 Imagistics International Inc.+ 60,106 112,500 200,000 Interpump Group SpA 784,404 895,560 40,000 Navistar International Corp.+ 789,981 1,915,600 40,000 Watts Water Technologies Inc., Cl. A 552,914 888,000 ------------ ------------ 8,314,132 13,726,670 - ------------------------------------------------------------------- FINANCIAL SERVICES -- 5.5% 95,000 American Express Co. 3,411,042 4,581,850 48,000 Argonaut Group Inc.+ 1,086,565 745,920 20,000 Bank of New York Co. Inc. 646,337 662,400 15,000 BKF Capital Group Inc.+ 388,458 370,200 13,000 Deutsche Bank AG, ADR 797,893 1,068,730
- ------------------------------------------------------------------- Market Shares Cost Value - ------------------------------------------------------------------- 165,500 J Net Enterprises Inc.+ $ 555,391 $ 231,700 25,000 KeyCorp 706,750 733,000 30,000 Midland Co. 221,322 708,600 85,000 MONY Group Inc.+ 2,759,592 2,659,650 ------------ ------------ 10,573,350 11,762,050 - ------------------------------------------------------------------- FOOD AND BEVERAGE -- 8.3% 10,000 Allied Domecq plc, ADR 204,522 315,900 10,000 Brown-Forman Corp., Cl. A 477,226 969,500 35,000 Campbell Soup Co. 938,291 938,000 30,000 Coca-Cola Co. 1,439,266 1,522,500 52,000 Corn Products International Inc. 1,275,632 1,791,400 30,000 Del Monte Foods Co.+ 252,853 312,000 55,000 Diageo plc, ADR 2,099,518 2,907,300 35,000 Dreyer's Grand Ice Cream Holdings Inc., Cl. A 2,717,479 2,721,250 73,000 Heinz (H.J.) Co. 2,704,248 2,659,390 20,000 Kellogg Co. 542,423 761,600 130,000 PepsiAmericas Inc. 1,730,112 2,225,600 20,000 Tootsie Roll Industries Inc. 324,957 720,000 60,000 Twinlab Corp.+ 144,933 1,200 ------------ ------------ 14,851,460 17,845,640 - ------------------------------------------------------------------- HEALTH CARE -- 3.0% 8,000 DENTSPLY International Inc. 340,300 361,360 10,000 Eli Lilly & Co. 614,026 703,300 4,400 Henry Schein Inc.+ 225,302 297,352 9,000 INAMED Corp.+ 418,918 432,540 4,000 Invitrogen Corp.+ 167,555 280,000 13,000 IVAX Corp.+ 146,900 310,440 24,000 Johnson & Johnson 1,198,000 1,239,840 18,000 Merck & Co. Inc. 794,290 831,600 2,000 Patterson Dental Co.+ 88,120 128,320 50,000 Pfizer Inc. 1,634,499 1,766,500 ------------ ------------ 5,627,910 6,351,252 - ------------------------------------------------------------------- HOTELS AND GAMING -- 2.9% 55,000 Aztar Corp.+ 368,807 1,237,500 70,000 Boca Resorts Inc., Cl. A+ 871,991 1,047,200 27,000 Dover Downs Gaming & Entertainment Inc. 309,456 255,420 80,000 Gaylord Entertainment Co.+ 2,297,856 2,388,000 80,000 Hilton Hotels Corp. 631,540 1,370,400 ------------ ------------ 4,479,650 6,298,520 - ------------------------------------------------------------------- METALS AND MINING -- 0.1% 8,000 Compania de Minas Buenaventura SA, ADR 161,850 226,240 - ------------------------------------------------------------------- PAPER AND FOREST PRODUCTS -- 0.3% 25,000 Pactiv Corp.+ 241,711 597,500 - ------------------------------------------------------------------- PUBLISHING -- 4.9% 10,000 Knight-Ridder Inc. 671,664 773,700 10,000 Lee Enterprises Inc. 289,859 436,500 22,000 McClatchy Co., Cl. A 637,731 1,513,600 8,000 Meredith Corp. 171,362 390,480 40,000 New York Times Co., Cl. A 1,847,173 1,911,600 150,000 Penton Media Inc.+ 264,737 204,000 380,000 PRIMEDIA Inc.+ 1,484,601 1,075,400 28,000 Pulitzer Inc. 1,006,758 1,512,000
- -------------------------------------------------------------------------------- See accompanying notes to financial statements. 6 Gabelli Capital Asset Fund Portfolio of Investments (Continued)
- ------------------------------------------------------------------- Market Shares Cost Value - ------------------------------------------------------------------- 60,000 Reader's Digest Association Inc. $ 975,486 $ 879,600 5,000 Scripps (E.W.) Co., Cl. A 377,750 470,700 73,000 Thomas Nelson Inc. 824,481 1,411,090 ------------ ------------ 8,551,602 10,578,670 - ------------------------------------------------------------------- REAL ESTATE -- 0.3% 47,000 Griffin Land & Nurseries Inc.+ 659,368 667,917 - ------------------------------------------------------------------- RETAIL -- 0.8% 22,500 Aaron Rents Inc., Cl. A 281,332 416,025 12,000 Ingles Markets Inc., Cl. A 150,950 123,240 20,000 Neiman Marcus Group Inc., Cl. A+ 629,298 1,073,400 ------------ ------------ 1,061,580 1,612,665 - ------------------------------------------------------------------- SATELLITE -- 0.6% 78,206 Hughes Electronics Corp.+ 1,278,957 1,294,301 - ------------------------------------------------------------------- SPECIALTY CHEMICALS -- 2.0% 40,000 Ferro Corp. 813,581 1,088,400 20,000 Great Lakes Chemical Corp. 504,191 543,800 2,000 Hawkins Inc. 15,000 27,920 95,000 Hercules Inc.+ 1,226,065 1,159,000 20,000 MacDermid Inc. 287,919 684,800 11,200 Material Sciences Corp.+ 100,389 113,232 100,000 Omnova Solutions Inc.+ 678,542 480,000 5,000 Quaker Chemical Corp. 87,062 153,750 ------------ ------------ 3,712,749 4,250,902 - ------------------------------------------------------------------- TELECOMMUNICATIONS -- 3.9% 40,000 AT&T Corp. 1,273,070 812,000 30,000 CenturyTel Inc. 822,178 978,600 330,000 Cincinnati Bell Inc.+ 2,493,938 1,666,500 140,000 Citizens Communications Co.+ 1,583,525 1,738,800 250,000 Qwest Communications International Inc.+ 875,990 1,080,000 35,000 SBC Communications Inc. 1,025,917 912,450 76,000 Sprint Corp.-FON Group 1,057,187 1,247,920 ------------ ------------ 9,131,805 8,436,270 - ------------------------------------------------------------------- WIRELESS COMMUNICATIONS -- 2.8% 170,000 AT&T Wireless Services Inc.+ 1,407,348 1,358,300 30,000 Leap Wireless International Inc.+ 8,400 990 95,000 mm02 plc, ADR+ 1,041,228 1,297,700 35,000 Price Communications Corp.+ 520,488 480,550 7,500 Rogers Wireless Communications Inc., Cl. B+ 86,303 160,500
- ------------------------------------------------------------------- Market Shares Cost Value - ------------------------------------------------------------------- 150,000 Sprint Corp.-PCS Group+ $ 990,538 $ 843,000 6,000 Telephone & Data Systems Inc. 251,190 375,300 30,000 United States Cellular Corp.+ 944,739 1,065,000 20,000 Western Wireless Corp., Cl. A+ 60,000 367,200 ------------ ------------ 5,310,234 5,948,540 - ------------------------------------------------------------------- TOTAL COMMON STOCKS 161,989,283 197,675,246 - ------------------------------------------------------------------- PREFERRED STOCKS -- 0.7% BROADCASTING -- 0.7% 48,747 News Corp. Ltd., Pfd., ADR $ 1,615,225 $ 1,474,599 - ------------------------------------------------------------------- RIGHTS -- 0.0% EQUIPMENT AND SUPPLIES -- 0.0% 225,000 Fedders Corp. Rights+ $ 0 $ 13,500 - ------------------------------------------------------------------- U.S. GOVERNMENT OBLIGATIONS -- 5.6% Principal Market Amount Cost Value - ------------------------------------------------------------------- $12,145,000 U.S. Treasury Bills, 0.822% to 0.956%++, 01/02/04 to 03/04/04 $ 12,137,114 $ 12,137,310 - ------------------------------------------------------------------- TOTAL INVESTMENTS -- 98.5% $175,741,622 211,300,655 OTHER ASSETS AND LIABILITIES (NET) -- 1.5% 3,179,339 - ------------------------------------------------------------------- NET ASSETS -- 100.0% $214,479,994 - ------------------------------------------------------------------- For Federal tax purposes: Aggregate cost $180,859,498 ------------ Gross unrealized appreciation $ 37,899,755 Gross unrealized depreciation (7,458,598) ------------ Net unrealized appreciation $ 30,441,157 ============ - -------------------------------------------------------------------
+ Non-income producing security. ++ Represents annualized yield at date of purchase. GLOSSARY OF TERMS: ADR -- American Depository Receipt. CVO -- Contingent Value Obligation. - -------------------------------------------------------------------------------- See accompanying notes to financial statements. 7 / / Gabelli Capital Asset Fund STATEMENT OF ASSETS AND LIABILITIES December 31, 2003 - ------------------------------------------------------------ STATEMENT OF OPERATIONS Year Ended December 31, 2003 - ------------------------------------------------------------ ASSETS Investments, at value (Cost $175,741,622) $211,300,655 Cash 732 Dividends receivable 206,799 Receivable for investments sold 4,309,262 Receivable for Fund shares sold 101,734 Other assets 11,046 ------------ TOTAL ASSETS 215,930,228 ------------ LIABILITIES: Payable for Fund shares redeemed 45,261 Payable for investments purchased 1,141,511 Payable for investment advisory fees 176,135 Other accrued expenses 87,327 ------------ TOTAL LIABILITIES 1,450,234 ------------ NET ASSETS applicable to 13,043,543 shares outstanding $214,479,994 ============ NET ASSETS CONSIST OF: Capital stock, at par value 13,044 Additional paid-in capital 183,823,560 Accumulated net realized loss on investments (4,915,642) Net unrealized appreciation on investments 35,559,032 ------------ TOTAL NET ASSETS $214,479,994 ============ NET ASSET VALUE, offering and redemption price per share ($214,479,994 / 13,043,543 shares outstanding; 500,000,000 shares authorized of $0.001 par value) $ 16.44 ============
INVESTMENT INCOME: Dividends (net of foreign taxes of $10,903) $ 2,102,825 Interest 35,421 ----------- Total Investment Income 2,138,246 ----------- EXPENSES: Management fees 1,729,402 Custodian fees 56,246 Legal and audit fees 47,316 Directors' fees 24,028 Shareholder services fees 11,643 Miscellaneous expenses 48,292 ----------- Total Expenses 1,916,927 ----------- NET INVESTMENT INCOME 221,319 ----------- NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized gain on investments 1,712,646 Net change in unrealized appreciation/depreciation on investments 51,807,823 ----------- NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 53,520,469 ----------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $53,741,788 ===========
- -------------------------------------------------------------------------------- See accompanying notes to financial statements. 8 / / Gabelli Capital Asset Fund STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31, ------------------------------------ 2003 2002 ------------ ------------ OPERATIONS: Net investment income $ 221,319 $ 363,082 Net realized gain/(loss) on investments 1,712,646 (4,036,759) Net change in unrealized appreciation/depreciation on investments 51,807,823 (26,863,133) ------------ ------------ NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 53,741,788 (30,536,810) ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS: Net investment income (217,324) (363,739) Net realized gain on investments (191,297) (66,467) ------------ ------------ TOTAL DISTRIBUTIONS TO SHAREHOLDERS (408,621) (430,206) ------------ ------------ CAPITAL SHARE TRANSACTIONS: Net increase/(decrease) in net assets from capital share transactions 2,316,212 (3,352,410) ------------ ------------ NET INCREASE/(DECREASE) IN NET ASSETS 55,649,379 (34,319,426) NET ASSETS: Beginning of period 158,830,615 193,150,041 ------------ ------------ End of period $214,479,994 $158,830,615 ============ ============
- -------------------------------------------------------------------------------- See accompanying notes to financial statements. 9 / / Gabelli Capital Asset Fund NOTES TO FINANCIAL STATEMENTS December 31, 2003 NOTE A. ORGANIZATION The Gabelli Capital Asset Fund (the "Fund"), a series of Gabelli Capital Series Funds, Inc. (the "Company"), which was organized on April 8, 1993 as a Maryland corporation. The Company is a diversified, open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund's primary objective is growth of capital. The Fund commenced investment operations on May 1, 1995. Shares of the Fund are available to the public only through the purchase of certain variable annuity and variable life insurance contracts issued by The Guardian Insurance & Annuity Company, Inc. ("Guardian") and other selected insurance companies. NOTE B. SIGNIFICANT ACCOUNTING POLICIES The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. Security Valuation Portfolio securities listed or traded on a nationally recognized securities exchange or traded in the U.S. over-the-counter market for which market quotations are readily available are valued at the last quoted sale price or a market's official closing price as of the close of business on the day the securities are being valued. If there were no sales that day, the security is valued at the average of the closing bid and asked prices or, if there were no asked prices quoted on that day, then the security is valued at the closing bid price on that day. If no bid or asked prices are quoted on such day, the security is valued at the most recently available price or, if the Board of Directors so determines, by such other method as the Board of Directors 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 foreign markets are generally valued at the preceding closing values of such securities on their respective exchanges. Securities and assets for which market quotations are not readily available are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Board of Directors. Short term debt securities with remaining maturities of 60 days or less are valued at amortized cost, unless the Board of Directors determine such does not reflect the securities fair value, in which case these securities will be valued at their fair value as determined by the Directors. Debt instruments having a maturity greater than 60 days for which market quotations are readily available are valued at the latest average of the bid and asked prices. If there were no asked prices quoted on such day, the security is valued using the closing bid price. Options are valued at the last sale price on the exchange on which they are listed. If no sales of such options have taken place that day, they will be valued at the mean between their closing bid and asked prices. Securities Transactions and Investment Income Securities transactions are accounted for on the trade date with realized gain or loss on the sale of investments determined by using the identified cost method. Interest income (including amortization of premium and accretion of discount) is recorded as earned. Dividend income is recorded on the ex-dividend date. Dividends and Distributions to Shareholders Dividends and distributions to shareholders are recorded on the ex-dividend date. Income and long term capital gain distributions are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States. These differences are primarily due to differing treatments of income and gains on various investment securities held by the Fund, timing differences and differing characterization of distributions made by the Fund. For the year ended December 31, 2003, reclassifications were made to decrease accumulated net investment income for $3,995, with an offsetting adjustment to accumulated net realized loss on investments. 10 The tax character of distributions paid during the fiscal years ended December 31, 2003 and 2002 were as follows:
YEAR ENDED YEAR ENDED DECEMBER 31, DECEMBER 31, 2003 2002 ------------ ------------ Distributions paid from: Ordinary income (inclusive of short term capital gains) $207,052 $414,298 Net long term capital gains 201,569 15,908 -------- -------- Total Taxable Distributions: $408,621 $430,206 ======== ========
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. It is the Fund's policy to comply with the requirements of the Internal Revenue 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. As of December 31, 2003, the components of accumulated earnings/(losses) on a tax basis were as follows: Accumulated net gain on investments $ 202,233 Net unrealized appreciation 30,441,157 ----------- Total accumulated earnings $30,643,390 ===========
The difference between book basis and tax basis unrealized appreciation is attributable primarily to the tax deferral of losses on wash sales. For the year ended December 31, 2003, the Fund deducted net capital losses carryovers from prior years against its current year capital gains in the amount of $3,125,346. NOTE C. AGREEMENTS WITH AFFILIATED PARTIES Pursuant to a management agreement (the "Management Agreement"), the Fund will pay Guardian Investor Services LLC (the "Manager") a fee, computed daily and paid monthly, at the annual rate of 1.00% of the value of the Fund's average daily net assets. Pursuant to an Investment Advisory Agreement among the Fund, the Manager and the Adviser, the Adviser, under the supervision of the Company's Board of Directors and the Manager, manages the Fund's assets in accordance with the Fund's investment objectives and policies, makes investment decisions for the Fund, places purchase and sale orders on behalf of the Fund, provides investment research and provides facilities and personnel required for the Fund's administrative needs. The Adviser may delegate its administrative role and currently has done so to PFPC Inc., the Fund's sub-administrator (the "Sub-Administrator"). The Adviser will supervise the performance of administrative and professional services provided by others and pays the compensation of the Sub-Administrator and all officers and Directors of the Company who are its affiliates. As compensation for its services and the related expenses borne by the Adviser, the Manager pays the Adviser a fee, computed daily and paid monthly, at the annual rate of 0.75% of the value of the Fund's average daily net assets. NOTE D. PORTFOLIO SECURITIES Purchases and proceeds from the sales of securities for the year ended December 31, 2003, other than short term securities, aggregated $66,477,440 and $72,942,439, respectively. NOTE E. TRANSACTIONS WITH AFFILIATES During the year ended December 31, 2003, the Fund paid brokerage commissions of $208,502 to Gabelli & Company, Inc. and its affiliates. The cost of calculating the Fund's net asset value per share is a Fund expense pursuant to the Investment Advisory Agreement between the Fund and Gabelli Funds, LLC (the "Adviser"). During fiscal 2003, the Fund reimbursed the Adviser $34,800 in connection with the cost of computing the Fund's net asset value, which is included in miscellaneous expense in the Statement of Operations. NOTE F. LINE OF CREDIT The Fund has access to an unsecured line of credit up to $25,000,000 from the custodian for temporary borrowing purposes. Borrowings under this arrangement bear interest at 0.75% above the Federal Funds rate on outstanding balances. There were no borrowings outstanding at December 31, 2003. The average daily amount of borrowings outstanding within the year ended December 31, 2003 was $225,808, with a related weighted interest rate of 2.04%. The maximum amount borrowed at any time during the year ended December 31, 2003 was $3,130,000. NOTE G. CAPITAL STOCK TRANSACTIONS Transactions in shares of capital stock were as follows:
YEAR ENDED YEAR ENDED DECEMBER 31, 2003 DECEMBER 31, 2002 ------------------------- ------------------------- SHARES AMOUNT SHARES AMOUNT ---------- ------------ ---------- ------------ Shares sold 1,931,106 $ 27,715,553 2,556,216 $ 34,683,501 Shares issued upon reinvestment of dividends 24,795 408,621 35,582 430,206 Shares redeemed (1,972,341) (25,807,962) (3,104,668) (38,466,117) ---------- ------------ ---------- ------------ Net increase (decrease) (16,440) $ 2,316,212 (512,870) $ (3,352,410) ========== ============ ========== ============
11 / / Gabelli Capital Asset Fund FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT THE PERIODS INDICATED:
YEAR ENDED DECEMBER 31, ---------------------------------------------------- 2003 2002 2001 2000 1999 ---------------------------------------------------- OPERATING PERFORMANCE: Net asset value, beginning of period....... $ 12.16 $ 14.23 $ 14.71 $ 17.48 $ 16.20 -------- -------- -------- -------- -------- Net investment income...................... 0.02 0.03 0.07 0.04 0.02 Net realized and unrealized gain/(loss) on investments.............................. 4.29 (2.07) 0.31 0.87 3.15 -------- -------- -------- -------- -------- Total from investment operations........... 4.31 (2.04) 0.38 0.91 3.17 -------- -------- -------- -------- -------- DISTRIBUTIONS TO SHAREHOLDERS: Net investment income...................... (0.02) (0.03) (0.08) (0.04) (0.02) Net realized gain on investments........... (0.01) (0.00)(b) (0.78) (3.64) (1.87) -------- -------- -------- -------- -------- Total distributions........................ (0.03) (0.03) (0.86) (3.68) (1.89) -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD............... $ 16.44 $ 12.16 $ 14.23 $ 14.71 $ 17.48 -------- -------- -------- -------- -------- TOTAL RETURN+................................ 35.5% (14.3)% 2.6% 5.6% 19.8% -------- -------- -------- -------- -------- RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA: Net assets, end of period (in 000's)....... $214,480 $158,831 $193,150 $155,870 $176,086 Ratio of net investment income to average net assets............................... 0.13% 0.20% 0.54% 0.18% 0.13% Ratio of operating expenses to average net assets(a)................................ 1.11% 1.12% 1.09% 1.09% 1.08% Portfolio turnover rate.................... 39% 19% 29% 64% 54%
+ 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 dividends. (a) The Fund incurred interest expense during the year ended December 31, 2000. If interest expense had not been incurred, the ratio of operating expenses to average net assets would have been 1.08%. (b) Amount represents less than $0.005 per share. - -------------------------------------------------------------------------------- See accompanying notes to financial statements. 12 Report of Ernst & Young LLP, Independent Auditors TO THE SHAREHOLDERS AND BOARD OF DIRECTORS OF GABELLI CAPITAL ASSET FUND (A SERIES OF GABELLI CAPITAL SERIES FUNDS, INC.) We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Gabelli Capital Asset Fund (the "Fund") (a series of Gabelli Capital Series Fund, Inc.) as of December 31, 2003, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2003, by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Gabelli Capital Asset Fund at December 31, 2003, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States. [Ernest & Young SIG] New York, New York February 10, 2004 13 / / Gabelli Capital Asset Fund ADDITIONAL FUND INFORMATION (UNAUDITED) The business and affairs of the Fund are managed under the direction of the Fund's Board of Directors. Information pertaining to the Directors and Officers of the Fund is set forth below. The Fund's Statement of Additional Information includes additional information about Gabelli Capital Series Funds, Inc. Directors and is available without charge, upon request, by writing to Gabelli Capital Series Funds, Inc. at One Corporate Center, Rye, NY 10580.
- -------------------------------------------------------------------------------------------------------------------------- TERM OF NUMBER OF OFFICE AND FUNDS IN LENGTH OF FUND COMPLEX NAME, POSITION(S) TIME OVERSEEN BY PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIP ADDRESS(1) AND AGE SERVED(2) DIRECTOR DURING PAST FIVE YEARS HELD BY DIRECTOR - -------------------------------------------------------------------------------------------------------------------------- INTERESTED DIRECTORS:(3) Mario J. Gabelli Since 1995 24 Chairman of the Board and Chief Director of Morgan Group Director, President and Executive Officer of Gabelli Holdings, Inc. (holding company); Chief Investment Officer Asset Management Inc. and Chief Vice Chairman of Lynch Age: 61 Investment Officer of Gabelli Corporation (diversified Funds, LLC and GAMCO Investors, manufacturing) Inc.; Vice Chairman and Chief Executive Officer of Lynch Interactive Corporation (multimedia and services) Arthur V. Ferrara Since 1995 9 Formerly, Chairman of the Board Director of The Guardian Life Director and Chief Executive Officer of Insurance Company of America; Age: 73 The Guardian Life Insurance Director of The Guardian Company of America from January Insurance & Annuity Company, Inc. 1993 to December 1995; President, Guardian Investor Services LLC, Chief Executive Officer and and 5 mutual funds within the Director prior thereto Guardian Fund Complex Karl Otto Pohl Since 1995 33 Member of the Shareholder Director of Gabelli Asset Director Committee of Sal Oppenheim Jr. & Management Inc. (investment Age: 74 Cie (private investment bank); management); Chairman, Incentive Former President of the Deutsche Capital and Incentive Asset Bundesbank and Chairman of its Management (Zurich); Director at Central Bank Council (1980-1991) Sal Oppenheim, Jr. & Cie, Zurich
14
- -------------------------------------------------------------------------------------------------------------------------- TERM OF NUMBER OF OFFICE AND FUNDS IN LENGTH OF FUND COMPLEX NAME, POSITION(S) TIME OVERSEEN BY PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIP ADDRESS(1) AND AGE SERVED(2) DIRECTOR DURING PAST FIVE YEARS HELD BY DIRECTOR - -------------------------------------------------------------------------------------------------------------------------- NON-INTERESTED DIRECTORS: Anthony J. Colavita Since 1995 35 President and Attorney at Law at Director the law firm of Anthony J. Age: 68 Colavita, P.C. Anthony R. Pustorino Since 1995 17 Certified Public Accountant; Director of Lynch Corp. Director Professor Emeritus, Pace (diversified manufacturing) Age: 78 University Werner J. Roeder, MD Since 1995 26 Vice President/Medical Affairs, Director Lawrence Hospital Center and Age: 63 practicing private physician Anthonie C. van Ekris Since 1995 20 Managing Director of BALMAC Director of Aurado Exploration, Director International, Inc. (commodities) Inc. (oil and gas operations) Age: 69 OFFICERS: Bruce N. Alpert Since 1995 -- Executive Vice President and President Chief Operating Officer of Age: 52 Gabelli Funds, LLC since 1988 and an officer of all mutual funds advised by Gabelli Funds, LLC and its affiliates. Director and President of Gabelli Advisers, Inc. James E. McKee Since 1995 -- Vice President, General Counsel Secretary and Secretary of Gabelli Asset Age: 40 Management Inc. since 1999 and GAMCO Investors Inc. since 1993; Secretary of all mutual funds advised by Gabelli Advisers, Inc. and Gabelli Funds, LLC
- --------------- 1 Address: One Corporate Center, Rye, NY 10580, unless otherwise noted. 2 Each Director will hold office for an indefinite term until the earliest of (i) the next meeting of shareholders, if any, called for the purpose of considering the election or re-election of such Director and until the election and qualification of his or her successor, if any, elected at such meeting, or (ii) the date a Director resigns or retires, or a Director is removed by the Board of Directors or shareholders, in accordance with the Fund's Amended and Restated By-Laws and Articles of Amendment and Restatement. 3 "Interested person" of the Fund as defined in the Investment Company Act of 1940. Messrs. Gabelli and Pohl are each considered an "interested person" because of their affiliation with Gabelli Funds, LLC which acts as the Fund's investment adviser. Mr. Ferrara is considered an interested person because of his affiliation with The Guardian Life Insurance Company of America, which is the parent company of the Fund's Manager. 15 ITEM 2. CODE OF ETHICS. (a) The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. (b) No response required. (c) There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description. (d) The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item's instructions. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. As of the end of the period covered by the report, the registrant's board of directors has determined that Anthony R. Pustorino is qualified to serve as an audit committee financial expert serving on its audit committee and that he is "independent," as defined by this Item 3. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. (a) AUDIT FEES: The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $33,000 in 2003 and $33,000 in 2002. (b) AUDIT-RELATED FEES: The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item are $0 in 2003 and $0 in 2002. (c) TAX FEES: The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $3,400 in 2003 and $3,250 in 2002. Tax fees represent tax compliance services provided in connection with the review of the Registrant's tax returns. (d) ALL OTHER FEES: The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 in 2003 and $0 in 2002. (e)(1) Disclose the audit committee's pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. Pre-Approval Policies and Procedures. The Audit Committee ("Committee") of the registrant is responsible for pre-approving (i) all audit and permissible non-audit services to be provided by the independent auditors to the registrant and (ii) all permissible non-audit services to be provided by the independent auditors to Gabelli and any affiliate of Gabelli that provides services to the registrant (a "Covered Services Provider") if the independent auditors' engagement relates directly to the operations and financial reporting of the registrant. The Committee may delegate its responsibility to pre-approve any such audit and permissible non-audit services to the Chairperson of the Committee, and the Chairperson must report to the Committee, at its next regularly scheduled meeting after the Chairperson's pre-approval of such services, his or her decision(s). The Committee may also establish detailed pre-approval policies and procedures for pre-approval of such services in accordance with applicable laws, including the delegation of some or all of the Committee's pre-approval responsibilities to other persons (other than Gabelli or the registrant's officers). Pre-approval by the Committee of any permissible non-audit services is not required so long as: (i) the aggregate amount of all such permissible non-audit services provided to the registrant, Gabelli and any Covered Services Provider constitutes not more than 5% of the total amount of revenues paid by the registrant to its independent auditors during the fiscal year in which the permissible non-audit services are provided; (ii) the permissible non-audit services were not recognized by the registrant at the time of the engagement to be non-audit services; and (iii) such services are promptly brought to the attention of the Committee and approved by the Committee or the Chairperson prior to the completion of the audit. (e)(2) The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows: (b) N/A (c) 100% (d) N/A (f) The percentage of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees was zero percent (0%). (g) The aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant was $62,400 in 2003 and $65,750 in 2002. (h) The registrant's audit committee of the board of directors HAS considered whether the provision of non-audit services that were rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Not yet applicable. ITEM 10. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant's last fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 11. EXHIBITS. (a)(1) Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto. (a)(2) Certifications pursuant to Rule 30a-2(a) of the Investment Company Act of 1940, as amended, are attached hereto. (a)(3) Not applicable. (b) Certifications pursuant to Rule 30a-2(b) of the Investment Company Act of 1940, as amended, 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) Gabelli Capital Series Funds, Inc. -------------------------------------------------------------------- By (Signature and Title)* /s/ Bruce N. Alpert ------------------------------------------------------- Bruce N. Alpert, Principal Executive Officer Date March 9, 2004 ---------------------------------------------------------------------------- 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 and Principal Financial Officer Date March 9, 2004 -------------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature. EX-99.CODE ETH 3 y94821exv99wcodeeth.txt CODE OF ETHICS EX-99.CODE ETH CODE OF CONDUCT FOR CHIEF EXECUTIVE AND SENIOR FINANCIAL OFFICERS OF THE GABELLI FUNDS AS ADOPTED BY THE BOARDS OF TRUSTEES/DIRECTORS MAY 2003 Each Gabelli Fund listed on Exhibit 1 hereto (each a "Company") is committed to conducting business in accordance with applicable laws, rules and regulations and the highest standards of business ethics, and to full and accurate disclosure -- financial and otherwise -- in compliance with applicable law. This Code of Conduct, applicable to each Company's Chief Executive Officer, President, Chief Financial Officer and Treasurer (or persons performing similar functions) (together, "Senior Officers"), sets forth policies to guide you in the performance of your duties. As a Senior Officer, you must comply with applicable law. You also have a responsibility to conduct yourself in an honest and ethical manner. You have leadership responsibilities that include creating a culture of high ethical standards and a commitment to compliance, maintaining a work environment that encourages the internal reporting of compliance concerns and promptly addressing compliance concerns. This Code of Conduct recognizes that the Senior Officers are subject to certain conflicts of interest inherent in the operation of investment companies, because the Senior Officers currently or may in the future serve as Senior Officers of each of the Companies, as officers or employees of the investment advisor to the Companies (the "Advisor") and/or affiliates of the Advisor (the "Advisory Group") and as officers or trustees/directors of other registered investment companies and unregistered investment funds advised by the Advisory Group. This Code of Conduct also recognizes that certain laws and regulations applicable to, and certain policies and procedures adopted by, the Companies or the Advisory Group govern your conduct in connection with many of the conflict of interest situations that arise in connection with the operations of the Companies, including: - - the Investment Company Act of 1940, and the rules and regulation promulgated thereunder by the Securities and Exchange Commission (the "1940 Act"); - - the Investment Advisers Act of 1940, and the rules and regulations promulgated thereunder by the Securities and Exchange Commission (the "Advisers Act"); - - the Code of Ethics adopted by each Company pursuant to Rule 17j-1(c) under the 1940 Act (collectively, the "Company's 1940 Act Code of Ethics"); - - one or more codes of ethics adopted by the Advisory Group that have been reviewed and approved by those trustees/directors (the "Directors") of each Company that are not "interested persons" of such Company (the "Independent Directors") within the meaning of the 1940 Act (the "Advisory Group's 1940 Act Code of Ethics" and, together with such Company's 1940 Act Code of Ethics, the "1940 Act Codes of Ethics"); - - the policies and procedures adopted by each Company to address conflict of interest situations, such as procedures under Rule 10f-3, Rule 17a-7, Rule 17d-1 and Rule 17e-1 under the 1940 Act (collectively, the "Conflict Policies"); and - - the Advisory Group's policies and procedures to address, among other things, conflict of interest situations and related matters (collectively, the "Advisory Policies"). The provisions of the 1940 Act, the Advisers Act, the 1940 Act Codes of Ethics, the Conflict Policies and the Advisory Policies are referred to herein collectively as the "Additional Conflict Rules". This Code of Conduct is different from, and is intended to supplement, the Additional Conflict Rules. Accordingly, a violation of the Additional Conflict Rules by a Senior Officer is hereby deemed not to be a violation of this Code of Conduct, unless and until the Directors shall determine that any such violation of the Additional Conflict Rules is also a violation of this Code of Conduct. SENIOR OFFICERS SHOULD ACT HONESTLY AND CANDIDLY Each Senior Officer has a responsibility to each Company to act with integrity. Integrity requires, among other things, being honest and candid. Deceit and subordination of principle are inconsistent with integrity. Each Senior Officer must: - - act with integrity, including being honest and candid while still maintaining the confidentiality of information where required by law or the Additional Conflict Rules; - - comply with the laws, rules and regulations that govern the conduct of each Company's operations and report any suspected violations thereof in accordance with the section below entitled "Compliance With Code Of Conduct"; and - - adhere to a high standard of business ethics. CONFLICTS OF INTEREST A conflict of interest for the purpose of this Code of Conduct occurs when your private interests interfere in any way, or even appear to interfere, with the interests of a Company. Senior Officers are expected to use objective and unbiased standards when making decisions that affect each Company, keeping in mind that Senior Officers are subject to certain inherent conflicts of interest because Senior Officers of a Company also are or may be officers of other Companies and/or the Advisory Group (as a result of which it is incumbent upon you to be familiar with and to seek to comply with the Additional Conflict Rules). You are required to conduct the business of each Company in an honest and ethical manner, including the ethical handling of actual or apparent conflicts of interest between personal and business relationships. When making any investment, accepting any position or benefits, participating in any transaction or business arrangement or otherwise acting in a manner that creates or appears to create a conflict of interest with respect to each Company where you are receiving a personal benefit, you should act in accordance with the letter and spirit of this Code of Conduct. If you are in doubt as to the application or interpretation of this Code of Conduct to you as a Senior Officer of a Company, you should make full disclosure of all relevant facts and circumstances to the general counsel of the Advisory Group (the "General Counsel") and obtain the approval of the General Counsel prior to taking action. Some conflict of interest situations that should always be approved by the General Counsel, if material, include the following: - - the receipt of any entertainment or non-nominal gift by the Senior Officer, or a member of his or her family, from any company with which a Company has current or prospective business dealings (other than the Advisory Group), unless such entertainment or gift is business related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety; - - any ownership interest in, or any consulting or employment relationship with, of any of the Companies' service providers, other than the Advisory Group; or - - a direct or indirect financial interest in commissions, transaction charges or spreads paid by a Company for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Senior Officer's employment by the Advisory Group, such as compensation or equity ownership. DISCLOSURES It is the policy of each Company to make full, fair, accurate, timely and understandable disclosure in compliance with all applicable laws and regulations in all reports and documents that such Company files with, or submits to, the Securities and Exchange Commission or a national securities exchange and in all other public communications made by such Company. As a Senior Officer, you are required to promote compliance with this policy and to abide by such Company 's standards, policies and procedures designed to promote compliance with this policy. Each Senior Officer must: - - familiarize himself or herself with the disclosure requirements applicable to each Company as well as the business and financial operations of each Company; and - - not knowingly misrepresent, or cause others to misrepresent, facts about any Company to others, including to the Directors, such Company's independent auditors, such Company's counsel, any counsel to the Independent Directors, governmental regulators or self-regulatory organizations. COMPLIANCE WITH CODE OF CONDUCT If you know of or suspect a violation of this Code of Conduct or other laws, regulations, policies or procedures applicable to any Company, you must report that information on a timely basis to the General Counsel or report it anonymously by following the "whistle blower" policies adopted by the Advisory Group from time to time. No one will be subject to retaliation because of a good faith report of a suspected violation. Each Company will follow these procedures in investigating and enforcing this Code of Conduct, and in reporting on this Code of Conduct: - - the General Counsel will take all appropriate action to investigate any actual or potential violations reported to him or her; - - violations and potential violations will be reported to the Board of Directors of each affected Company after such investigation; - - if the Board of Directors determines that a violation has occurred, it will take all appropriate disciplinary or preventive action; and - - appropriate disciplinary or preventive action may include a letter of censure, suspension, dismissal or, in the event of criminal or other serious violations of law, notification to the Securities and Exchange Commission or other appropriate law enforcement authorities. WAIVERS OF CODE OF CONDUCT Except as otherwise provided in this Code of Conduct, the General Counsel is responsible for applying this Code of Conduct to specific situations in which questions are presented to the General Counsel and has the authority to interpret this Code of Conduct in any particular situation. The General Counsel shall take all action he or she considers appropriate to investigate any actual or potential violations reported under this Code of Conduct. The General Counsel is authorized to consult, as appropriate, with counsel to the affected Company, the Advisory Group or the Independent Directors, and is encouraged to do so. The Board of Directors of the affected Company is responsible for granting waivers of this Code of Conduct, as appropriate. Any changes to or waivers of this Code of Conduct will, to the extent required, be disclosed on Form N-CSR, or otherwise, as provided by Securities and Exchange Commission rules. RECORDKEEPING Each Company will maintain and preserve for a period of not less than six (6) years from the date an action is taken, the first two (2) years in an easily accessible place, a copy of the information or materials supplied to the Boards of Directors pursuant to this Code of Conduct: - - that provided the basis for any amendment or waiver to this Code of Conduct; and - - relating to any violation of this Code of Conduct and sanctions imposed for such violation, together with a written record of the approval or action taken by the relevant Board of Directors. CONFIDENTIALITY All reports and records prepared or maintained pursuant to this Code of Conduct shall be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code of Conduct, such matters shall not be disclosed to anyone other than the Independent Directors and their counsel, the Companies and their counsel, the Advisory Group and its counsel and any other advisors, consultants or counsel retained by the Directors, the Independent Directors or any committee of Directors. AMENDMENTS This Code of Conduct may not be amended as to any Company except in written form, which is specifically approved by a majority vote of the affected Company's Directors, including a majority of its Independent Directors. NO RIGHTS CREATED This Code of Conduct is a statement of certain fundamental principles, policies and procedures that govern each of the Senior Officers in the conduct of the Companies' business. It is not intended to and does not create any rights in any employee, investor, supplier, competitor, shareholder or any other person or entity. ACKNOWLEDGMENT FORM I have received and read the Joint Code of Conduct for Chief Executive and Senior Financial Officers, and I understand its contents. I agree to comply fully with the standards contained in the Code of Conduct and the Company's related policies and procedures. I understand that I have an obligation to report any suspected violations of the Code of Conduct on a timely basis to the General Counsel or report it anonymously by following the "whistle blower" policies adopted by the Advisory Group from time to time. -------------------------------------------- Printed Name -------------------------------------------- Signature -------------------------------------------- Date EXHIBIT 1 List of Registered Investment Companies The Gabelli Asset Fund The Gabelli Dividend & Income Trust The Gabelli Growth Fund The Gabelli Value Fund Inc. The Gabelli Convertible Securities Fund, Inc. The Gabelli Global Multimedia Trust Inc. The Gabelli Equity Trust Inc. Gabelli Gold Fund, Inc. Gabelli International Growth Fund, Inc. The Gabelli Mathers Fund Gabelli Blue Chip Value Fund The Gabelli Utilities Fund The Gabelli Utility Trust GABELLI EQUITY SERIES FUNDS, INC.: The Gabelli Equity Income Fund The Gabelli Small Cap Growth Fund The Gabelli Woodland Small Cap Value Fund GABELLI INVESTOR FUNDS, INC.: The Gabelli ABC Fund GABELLI GLOBAL SERIES FUNDS, INC.: The Gabelli Global Telecommunications Fund The Gabelli Global Convertible Securities Fund The Gabelli Global Growth Fund The Gabelli Global Opportunity Fund THE GABELLI MONEY MARKET FUNDS: The Gabelli U.S. Treasury Money Market Fund GABELLI CAPITAL SERIES FUNDS, INC.: The Gabelli Capital Asset Fund THE GABELLI WESTWOOD FUNDS: Gabelli Westwood Equity Fund Gabelli Westwood Intermediate Bond Fund Gabelli Westwood Balanced Fund Gabelli Westwood Cash Management Fund Gabelli Westwood SmallCap Fund Gabelli Westwood Realty Fund Gabelli Westwood Mighty Mites Fund THE TREASURER'S FUND, INC. U.S. Treasury Money Market Portfolio Domestic Prime Money Market Portfolio Tax Exempt Money Market Portfolio Global Money Market Portfolio Limited Term Portfolio Tax Exempt Limited Term Portfolio COMSTOCK FUNDS, INC. Comstock Capital Value Fund Comstock Strategy Fund Ned Davis Research Funds Ned Davis Research Asset Allocation Fund August 20, 2003 EX-99.CERT 4 y94821exv99wcert.txt CERTIFICATIONS PURSUANT TO RULE 30A-2(A) EX-99.CERT CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT I, Bruce N. Alpert, certify that: 1. I have reviewed this report on Form N-CSR of Gabelli Capital Series Funds, 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) 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) [Omitted] (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 registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual 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: March 9, 2004 /s/ Bruce N. Alpert -------------- -------------------------------------------- Bruce N. Alpert, Principal Executive Officer and Principal Financial Officer EX-99.906CERT 5 y94821exv99w906cert.txt CERTIFICATIONS PURSUANT TO RULE 30A-2(B) EX-99.906CERT CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT I, Bruce N. Alpert, Principal Executive Officer of Gabelli Capital Series Funds, 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: March 9, 2004 /s/ Bruce N. Alpert -------------- -------------------------------------------- Bruce N. Alpert, Principal Executive Officer and Principal Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----