Gabelli Investor Funds N-CSR Certified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORMN-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number            811-07326                 

                               Gabelli Investor 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, 2018

FormN-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 Rule30e-1 under the Investment Company Act of 1940 (17 CFR270.30e-1). The Commission may use the information provided on FormN-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by FormN-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in FormN-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. § 3507.

Item 1. Reports to Stockholders.

The Report to Shareholders is attached herewith.

The Gabelli ABC Fund

Annual Report — December 31, 2018

(Y)our Portfolio Management Team

To Our Shareholders,

For the year ended December 31, 2018, the net asset value (NAV) per Class AAA Share of The Gabelli ABC Fund increased 0.2% compared with an increase of 3.3% for the Standard & Poor’s (S&P) Long-Only Merger Arbitrage Index. The performance of the ICE Bank of America Merrill Lynch 3 Month U.S. Treasury Bill Index for the year was 1.9%. Another class of shares is available. See page 4 for performance information for both classes of shares.

Enclosed are the financial statements, including the schedule of investments, as of December 31, 2018.

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (www.gabelli.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. To elect to receive all future reports in paper free of charge, please contact your financial intermediary, or, if you invest directly with the Fund, you may call800-422-3554 or send an email request to info@gabelli.com.

Performance Discussion (Unaudited)

The investment objective of the Fund is to seek to achieve total returns that are attractive to investors in various market conditions without excessive risk of capital loss.

The Fund invests primarily in securities of domestic and foreign issuers that Gabelli Funds, LLC, the Fund’s investment adviser (the Adviser), believes provide attractive opportunities for appreciation or investment income. The Adviser seeks to limit excessive risk of capital loss by utilizing various investment strategies, including investing in value oriented common stocks, i.e., common stocks that trade at a significant discount to the Adviser’s assessment of their “private market value” (the value informed investors would be willing to pay to acquire the entire company), virtually risk free U.S. Treasury Bills, and by utilizing certain “arbitrage” strategies. The Fund’s use of arbitrage may be described as investing in “event” driven situations such as announced mergers, acquisitions, and reorganizations. If the Adviser, through extensive research, determines that the acquisition is likely to be consummated on schedule at the stated acquisition price, the Fund may purchase the selling company’s securities, offering the Fund the possibility of returns relative to cash equivalents with a limited risk of excessive loss of capital. The Fund may hold a significant portion of its assets in cash in anticipation of arbitrage opportunities.

Overall deal volume topped $4 trillion in 2018. This volume was driven by deal size rather than the number of deals completed, with over 100 deals greater than $5 billion in size announced over the course of the year. Cross border Mergers and Acquisitions (M&A) also had a strong year, with $1.6 trillion in deals announced in 2018. The busiest sectors were Energy & Power, Technology, and Healthcare. The performance was affected by a combination of increased volatility in equity markets that caused several deal spreads to widen significantly, along with certain deal terminations.

Listed below are five selected deals that closed during 2018 which had positive effects on the return of the Fund.

Advanced Accelerator Application SA (AAAP) is aSt-Genis-Pouilly, France based pharmaceuticals company focused on nuclear medicine theragnostics. On October 30, 2017, AAAP agreed to be acquired by Novartis AG for $41 cash per ordinary share and $82 cash per ADS, valuing the company’s equity at $3.9 billion. Completion of the deal required the tender of at least 80% of AAAP shares and certain regulatory approvals. The deal closed on January 22, 2018.

Exactech Inc. (EXAC) is a Gainesville, Florida based medical device company that develops orthopedic implant devices and other instruments used in surgery. On October 23, 2017, EXAC agreed to be taken private by TPG Capital for $42 per share in cash which valued the company at $625 million. On December 4, 2017, after another bidder emerged, EXAC entered into an amended merger agreement with TPG Capital which increased the consideration to EXAC shareholders to $49.25 per share in cash, representing a $737 million total enterprise value. The transaction required regulatory and shareholder approvals and closed on February 15, 2018.

2

General Cable Corp. (BGC) is a Highland Heights, Kentucky based cable manufacturer that sells fiber optic, copper, and aluminum cables to the telecom, industrial, and construction sectors. On December 4, 2017, BGC agreed to be acquired by Prysmian Group for $30 per share in cash representing a $3 billion total enterprise value. The transaction required shareholder and regulatory approvals and closed on June 6, 2018.

XL Group, Ltd. (XL) is a Hamilton, Bermuda based insurance and reinsurance company. On March 5, 2018, XL agreed to be acquired by The AXA Group for $57.60 per share in cash representing a total consideration of $15.3 billion to expand AXA’s U.S. presence. The deal was subject to shareholder and regulatory approvals and closed on September 12, 2018.

Endocyte Inc. (ECYT) is a West Lafayette, Indiana based radiopharmaceuticals oncology company. On October 18, 2018, ECYT agreed to be acquired by Novartis AG for $24 cash per share in a $2.1 billion merger. The deal was subject to shareholder and regulatory approvals and closed on December 24, 2018.

Because of slower housing market conditions of 2018, the biggest detractor to the Fund’s performance was Lennar Corp. (3.3% of the net assets as of December 31, 2018). NXP Semiconductors (0.2%) saw U.S. chip maker QUALCOMM abandon its $44 billion merger with NXP in December. Sterling Bancorp (0.5%) also negatively impacted the Fund’s performance.

We appreciate your investment in The Gabelli ABC Fund.

Thank you for your confidence and trust.

3

Comparative Results

Average Annual Returns through December 31, 2018 (a) (Unaudited)					Since
	1 Year	5 Year	10 Year	15 Year	Inception (5/14/93)
AAA Shares (GABCX)	0.20%	1.79%	3.09%	3.58%	5.43%
Advisor Shares (GADVX)	(0.06)	1.54	2.84	3.38	5.32
S&P Long-Only Merger Arbitrage Index	3.33	3.15	4.71	N/A(b)	N/A(b)
Lipper U.S. Treasury Money Market Fund Average	1.47	0.39	0.20	0.99	2.13(c)
ICE Bank of America Merrill Lynch 3 Month U.S. Treasury Bill Index	1.87	0.63	0.37	1.32	2.57
S&P 500 Index	(4.38)	8.49	13.12	7.77	9.16(c)

In the current prospectuses dated April 30, 2018, the expense ratios for the Class AAA and the Advisor Class Shares, are 0.57% and 0.82%, respectively. See page 13 for the expense ratios for the year ended December 31, 2018. The Fund does not have a sales charge.

(a) Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, reinvestment of distributions, and are net of expenses. Investment returns and the principal value of an investment will fluctuate.When shares are redeemed, they may be worth more or less than their original cost. Current performance may be lower or higher than the performance data presented. Visit www.gabelli.com for performance information as of the most recent month end. Returns would have been lower had Gabelli Funds, LLC, the Adviser, not reimbursed certain expenses of the Fund for periods prior to December 31, 2007. The Fund imposes a 2% redemption fee on shares sold or exchanged within seven days after purchase. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectuses contain information about these and other matters and should be read carefully before investing. To obtain a prospectus, please visit our website at www.gabelli.com.The S&P Long-Only Merger Arbitrage Index is comprised of a maximum of 40 large and liquid stocks that are active targets in pending merger deals. The Lipper U.S. Treasury Money Market Fund Average reflects the average performance of mutual funds classified in this particular category. The ICE Bank of America Merrill Lynch 3 Month U.S. Treasury Bill Index is comprised of a single issue purchased at the beginning of the month and held for a full month. At the end of the month, that issue is sold and rolled into the outstanding Treasury Bill that matures closest to, but not beyond three months from the rebalancing date. To qualify for selection, an issue must have settled on or before the rebalancing (month end) date. The S&P 500 Index is a market capitalization weighted index of 500 large capitalization stocks commonly used to represent the U.S. equity market. Dividends are considered reinvested except for the ICE Bank of America Merrill Lynch 3 Month U.S. Treasury Bill Index. You cannot invest directly in an index. The Class AAA Share NAVs are used to calculate performance for the periods prior to the issuance of the Advisor Class Shares on May 1, 2007. The actual performance of the Advisor Class Shares would have been lower due to the additional expenses associated with this class of shares.

(b) S&P Long-Only Merger Arbitrage Index inception date is January 17, 2008.

(c) Lipper U.S. Treasury Money Market Fund Average and the S&P 500 Index since inception performance returns are as of April 30, 1993.

COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN

THE GABELLI ABC FUND (CLASS AAA SHARES), S&P 500 INDEX,

AND LIPPER U.S. TREASURY MONEY MARKET AVERAGE (Unaudited)

* Past performance is not predictive of future results. The performance tables and graph do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

4

The Gabelli ABC Fund
Disclosure of Fund Expenses (Unaudited)
For the Six Month Period from July 1, 2018 through December 31, 2018	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’sactualreturn 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 isnotthe 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. The “Annualized Expense Ratio” represents the actual expenses for the last six months and may be different from the expense ratio in the Financial Highlights which is for the year ended December 31, 2018.

	Beginning Account Value 07/01/18		Ending Account Value 12/31/18		Annualized Expense Ratio			Expenses Paid During Period*
The Gabelli ABC Fund
Actual Fund Return
Class AAA		$1,000.00		$   996.30		0.58	%		$2.92
Advisor Class		$1,000.00		$   995.50		0.83	%		$4.17
Hypothetical 5% Return
Class AAA		$1,000.00		$1,022.28		0.58	%		$2.96
Advisor Class		$1,000.00		$1,021.02		0.83	%		$4.23

* 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 (184 days), then divided by 365.

5

Summary of Portfolio Holdings (Unaudited)

The following table presents portfolio holdings as a percent of net assets as of December 31, 2018:

The Gabelli ABC Fund

Long Positions
U.S. Treasury Bills	58.6	%
Energy and Utilities	7.8	%
Building and Construction	5.9	%
Computer Software and Services	4.2	%
Financial Services	3.8	%
Health Care.	3.7	%
Telecommunications	2.0	%
Entertainment	1.8	%
Metals and Mining	1.1	%
Wireless Communications	1.0	%
Food and Beverage	0.9	%
Cable and Satellite	0.8	%
Broadcasting	0.7	%
Semiconductors	0.3	%
Hotels and Gaming	0.3	%
Aerospace	0.3	%
Publishing	0.3	%
Machinery	0.3	%
Paper and Forest Products	0.3	%
Specialty Chemicals	0.2	%

Diversified Industrial	0.2	%
Real Estate	0.2	%
Automotive: Parts and Accessories .	0.2	%
Industrials	0.1	%
Consumer Products	0.1	%
Transportation	0.1	%
Business Services	0.1	%
Retail	0.0	%*
Closed-End Funds	0.0	%*
Other Assets and Liabilities (Net)	9.8	%
Short Positions
Building and Construction	(2.9	)%
Energy and Utilities	(2.1	)%
Metals and Mining	(0.1	)%
Health Care.	(0.0	)%**
	100.0	%

* Amount represents less than 0.05%.

** Amount represents greater than (0.05)%.

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 FormN-Q. Shareholders may obtain this information at www.gabelli.com or by calling the Fund at800-GABELLI(800-422-3554).The Fund’s FormN-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 calling800-SEC-0330.

Proxy Voting

The Fund files FormN-PX with its complete proxy voting record for the twelve months ended June 30, no later than August 31 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) calling800-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.

6

The Gabelli ABC Fund

Schedule of Investments — December 31, 2018

Shares			Cost		Market Value
		COMMON STOCKS — 36.6%
		Aerospace — 0.3%
	23,000	Esterline Technologies Corp.†	$	2,652,453		$      2,793,350
		Automotive: Parts and Accessories — 0.2%
	58,000	Clarion Co. Ltd.		1,272,138		1,320,287
		Broadcasting — 0.7%
	8,000	Cogeco Inc		155,796		341,283
	10,000	MSG Networks Inc., Cl. A†		166,150		235,600
	130,000	Tribune Media Co., Cl. A		5,101,298		5,899,400
				5,423,244		6,476,283
		Building and Construction — 5.9%
	46,000	Johnson Controls International plc		1,102,289		1,363,900
	1,005,000	Lennar Corp., Cl. B		40,289,526		31,486,650
	40,000	Norbord Inc., Toronto		926,855		1,063,580
	500,000	USG Corp.		21,563,884		21,330,000
				63,882,554		55,244,130
		Business Services — 0.1%
	30,000	exactEarth Ltd.†		86,126		5,274
	27,900	Travelport Worldwide Ltd.		435,901		435,798
				522,027		441,072
		Cable and Satellite — 0.8%
	1,500	AMC Networks Inc., Cl. A†		58,302		82,320
	6,200	Charter Communications Inc., Cl. A†		1,328,754		1,766,814
	50,340	Liberty Global plc, Cl. A†		1,855,285		1,074,256
	95,000	Liberty Global plc, Cl. C†		3,436,604		1,960,800
	4,699	Liberty Latin America Ltd., Cl. A†
	20,500	Liberty Latin America Ltd., Cl. C†		475,193		298,685
	120,000	Sky plc(a)		1,554,704		2,643,010
				8,821,485		7,893,927
		Computer Software and Services — 4.2%
	600,000	Apptio Inc., Cl. A†		22,719,071		22,776,000
	38,000	Business & Decision†		351,544		320,444
	34,200	ConvergeOne Holdings Inc.		426,189		423,396
	2,591	Dell Technologies Inc., Cl. C†		119,186		126,622
	122,000	Digi International Inc.†		1,533,879		1,230,980
	18,000	Donnelley Financial Solutions, Inc.†		382,559		252,540
	52,000	iGO Inc.†		163,480		115,700
	84,897	Imperva Inc.†		4,708,435		4,727,914
	2,500	InterXion Holding NV†		70,171		135,400
	53,000	MINDBODY Inc., Cl. A†		1,911,886		1,929,200
	450,000	MYOB Group Ltd.		1,152,535		1,064,976
	30,000	Red Hat Inc.†		5,182,237		5,269,200

Shares			Cost		Market Value
	6,300	Rockwell Automation Inc.	$	1,169,594		$      948,024
				39,890,766		39,320,396
		Consumer Products — 0.1%
	100	Accell Group NV		3,366		2,159
	75,000	Avon Products Inc.†		203,805		114,000
	14,000	Bang & Olufsen A/S†		147,074		190,992
	12,000	Edgewell Personal Care Co.†		637,837		448,200
				992,082		755,351
		Diversified Industrial — 0.2%
	140,000	Haldex AB		1,672,257		1,089,931
	30,000	Katy Industries Inc.†		23,299		128
	38,000	Myers Industries Inc.		385,343		574,180
	10,400	SLM Solutions Group AG†		359,659		107,242
	24,000	Wartsila OYJ Abp		354,500		382,085
				2,795,058		2,153,566
		Energy and Utilities — 7.8%
	64,800	Alerion Cleanpower SpA		177,654		213,825
	50,000	Alvopetro Energy Ltd., Toronto†		36,046		15,199
	30,500	Anadarko Petroleum Corp.		1,577,975		1,337,120
	12,000	Apache Corp.		510,496		315,000
	12,000	Avangrid Inc.		465,000		601,080
	30,000	Connecticut Water Service Inc.		2,061,943		2,006,100
	20,000	Endesa SA		453,617		461,279
	200,000	Gulf Coast Ultra Deep Royalty Trust		39,334		5,700
	3,000	Hess Corp.		139,784		121,500
	85,000	InfraREIT Inc., REIT†		1,796,892		1,786,700
	61,000	National Fuel Gas Co.		3,215,037		3,121,980
	20,000	Noble Energy Inc.		731,383		375,200
	410,000	SCANA Corp.		20,125,424		19,589,800
	130,000	Severn Trent plc		3,494,926		3,008,247
	800,000	Texas Competitive Electric Holdings Co. LLC, Escrow†(a)		0		0
	452,059	Valero Energy Partners LP		18,998,128		19,063,328
	300,000	Vectren Corp.		21,505,510		21,594,000
	9,000	Whiting Petroleum Corp.†		249,720		204,210
				75,578,869		73,820,268
		Entertainment — 1.8%
	27,036	International Speedway Corp., Cl. A		1,146,043		1,185,799
	19,000	Liberty Media Corp.- Liberty Braves, Cl. A†		452,527		473,860
	9,000	Liberty Media Corp.- Liberty Braves, Cl. C†		231,876		224,010
	1,300	The Madison Square Garden Co., Cl. A†		145,867		348,010

See accompanying notes to financial statements.

7

The Gabelli ABC Fund

Schedule of Investments (Continued) — December 31, 2018

Shares			Cost		Market Value
		COMMON STOCKS (Continued)
		Entertainment (Continued)
	110,000	Twenty-First Century Fox Inc., Cl. A	$	5,000,726	$	5,293,200
	200,000	Twenty-First Century Fox Inc., Cl. B		9,161,053		9,556,000
				16,138,092		17,080,879
		Financial Services — 3.8%
	7,000	Alimco Financial Corp.†		240,731		56,000
	50,000	AllianceBernstein Holding LP		305,878		1,366,000
	1,000	Aspen Insurance Holdings Ltd.		41,008		41,990
	60,000	AXA Equitable Holdings Inc.		1,087,643		997,800
	1,218	Horizon Bancorp Inc.		23,361		19,220
	189,000	Investment Technology Group Inc.		5,683,551		5,715,360
	6,000	Jardine Lloyd Thompson
		Group plc		148,774		144,693
	20,000	Kinnevik AB, Cl. A		602,222		476,139
	60,000	KKR & Co. Inc., Cl. A		180,658		1,177,800
	1,000	Mastercard Inc., Cl. A		19,963		188,650
	62,690	MoneyGram International Inc.†		435,136		125,380
	32,000	Navient Corp.		234,335		281,920
	10,000	Oritani Financial Corp.		103,087		147,500
	100	Patriot National Inc.†(a)		968		2
	270,000	Sterling Bancorp		4,613,289		4,457,700
	135,000	The Dun & Bradstreet Corp.		19,264,268		19,269,900
	15,000	The Navigators Group Inc.		1,039,439		1,042,350
	2,200	Topdanmark A/S		62,593		102,294
	18,000	Waddell & Reed Financial Inc., Cl. A		341,668		325,440
	177,000	Wright Investors’ Service Holdings Inc.†		442,500		67,260
				34,871,072		36,003,398
		Food and Beverage — 0.9%
	12,900	Nutrisystem Inc.		569,504		566,052
	1,000,000	Parmalat SpA		2,554,351		3,265,390
	3,500	Pernod Ricard SA		220,064		574,651
	3,500,000	Premier Foods plc†		2,305,951		1,472,163
	24,000	Remy Cointreau SA		1,467,270		2,720,929
	1,000	The Hershey Co.		91,618		107,180
				7,208,758		8,706,365
		Health Care — 3.6%
	30,000	Akorn Inc.†		178,571		101,700
	22,700	Allergan plc		4,233,756		3,034,082
	60,000	AstraZeneca plc, ADR		2,234,668		2,278,800
	500	Bio-Rad Laboratories Inc.,
		Cl. A†		49,970		116,110
	258,000	BTG plc†		2,748,747		2,729,428

Shares			Cost		Market Value
	121,000	Civitas Solutions Inc.†	$	2,126,479	$	2,118,710
	500	ICU Medical Inc.†		29,090		114,815
	158,000	Idorsia Ltd.†		1,626,602		2,607,346
	300	Illumina Inc.†		12,176		89,979
	5,000	Incyte Corp.†		346,870		317,950
	37,000	McKesson Europe AG		1,170,357		1,102,212
	433,000	Myrexis Inc.†		44,849		4,763
	800,000	Pacific Biosciences of California Inc.†		6,113,845		5,920,000
	5,000	Perrigo Co. plc		448,482		193,750
	1,000	Shire plc		59,816		58,249
	11,083	Shire plc, ADR		1,873,907		1,928,885
	155,000	TESARO Inc.†		11,413,802		11,508,750
				34,711,987		34,225,529
		Hotels and Gaming — 0.3%
	70,000	Belmond Ltd., Cl. A†		1,002,935		1,752,100
	55,800	Cherry AB, Cl. B†		529,824		545,223
	10,000	Eldorado Resorts Inc.†		46,878		362,100
	10,000	Pebblebrook Hotel Trust, REIT.		354,324		283,100
				1,933,961		2,942,523
		Industrials — 0.1%
	52,000	Arconic Inc.		1,154,875		876,720
		Machinery — 0.3%
	28,000	Astec Industries Inc.		998,791		845,320
	140,000	CNH Industrial NV		1,121,455		1,289,400
	45,000	CNH Industrial NV, Borsa Italiana.		383,886		404,633
				2,504,132		2,539,353
		Metals and Mining — 1.1%
	12,000	Alamos Gold Inc., Cl. A		52,895		43,200
	42,000	Ampco-Pittsburgh Corp.†		398,580		130,200
	9,000	Detour Gold Corp.†		84,211		76,011
	170,000	Freeport-McMoRan Inc.		1,617,498		1,752,700
	35,000	Newmont Mining Corp.		785,524		1,212,750
	12,000	Pan American Silver Corp.		170,418		175,183
	5,500	Randgold Resources Ltd., ADR		380,999		455,895
	1,600,000	Tahoe Resources Inc.†		5,225,369		5,840,000
	10,000	Vulcan Materials Co.		438,009		988,000
				9,153,503		10,673,939
		Paper and Forest Products — 0.3%
	131,497	Papeles y Cartones de Europa SA		2,595,123		2,528,122
		Publishing — 0.3%
	4,000	Meredith Corp		170,375		207,760
	14,000	Telegraaf Media Groep NV†(a)		89,203		96,243
	145,000	The E.W. Scripps Co., Cl. A		2,483,481		2,280,850
				2,743,059		2,584,853

See accompanying notes to financial statements.

8

The Gabelli ABC Fund

Schedule of Investments (Continued) — December 31, 2018

Shares			Cost		Market Value
		COMMON STOCKS (Continued)
		Real Estate — 0.2%
	500	American Tower Corp., REIT	$	7,707	$	79,095
	34,298	Vastned Retail Belgium NV, REIT		2,340,350		1,607,246
			2,348,057		1,686,341
		Retail — 0.0%
	11,400	Bojangles’ Inc.†		183,027		183,312
	101,770	TheBon-Ton Stores Inc.†		4,946		1,119
			187,973		184,431
		Semiconductors — 0.3%
	100,000	AIXTRON SE†		402,795		963,347
	8,000	Integrated Device Technology Inc.†		370,905		387,440
	24,000	NXP Semiconductors NV		2,178,440		1,758,720
			2,952,140		3,109,507
		Specialty Chemicals — 0.2%
	9,240	Linde plc		1,497,283		1,441,810
	44,500	SGL Carbon SE†		526,718		310,759
	11,000	Valvoline Inc.		243,650		212,850
			2,267,651		1,965,419
		Telecommunications — 2.0%
	195,000	ARRIS International plc†		5,998,414		5,961,150
	260,000	Asia Satellite Telecommunications Holdings Ltd.		591,447		174,982
	230,000	CenturyLink Inc.		4,727,990		3,484,500
	10,000	Finisar Corp.†		209,515		216,000
	4,000	Harris Corp.		317,245		538,600
	130,000	Koninklijke KPN NV		396,278		381,306
	64,700	Parrot SA†		234,622		236,846
	100,000	Pharol SGPS SA†		26,205		18,699
	650,000	Sprint Corp.†		3,356,454		3,783,000
	83,000	Telenet Group Holding NV		3,782,125		3,860,952
			19,640,295		18,656,035
		Transportation — 0.1%
	2,000	XPO Logistics Europe SA		486,463		714,949
		Wireless Communications — 1.0%
	10,000	Blackberry Ltd.†		68,396		71,100
	130,000	Millicom International Cellular SA, SDR		7,988,294		8,235,971
	7,500	T-Mobile US Inc.†		121,875		477,075
	13,000	United States Cellular Corp.†		491,946		675,610
				8,670,511		9,459,756
		TOTAL COMMON STOCKS		351,398,328		344,156,749
		CLOSED-END FUNDS — 0.0%
	1,400	Altaba Inc.†		20,580		81,116

Shares			Cost		Market Value
		RIGHTS — 0.1%
		Entertainment — 0.0%
	201,000	Media General Inc., CVR†(a)	$	0	$	0
		Health Care — 0.1%
	110,600	Adolor Corp., CPR, expire 07/01/19†(a)		0		0
	187,969	Ambit Biosciences Corp., CVR†(a)		0		112,781
	135,000	American Medical Alert Corp., CPR†(a)		0		1,350
	5,000	Community Health Systems Inc., CVR†		158		6
	640,000	Innocoll, CVR†(a)		384,000		384,000
	95,400	Ocera Therapeutics, CVR†(a)		25,758		37,206
	100	Omthera Pharmaceuticals Inc., CVR†(a)		0		0
	400,000	Sanofi, CVR†		88,100		192,000
	825,000	Teva Pharmaceutical Industries Ltd., CCCP, expire 02/20/23†(a)		401,888		0
	12,000	Tobira Therapeutics Inc., CVR†(a)		720		720
				900,624		728,063
		Hotels and Gaming — 0.0%
	1,041,500	Ladbrokes plc, CVR†(a)		69,148		0
		Specialty Chemicals — 0.0%
96,986		A. Schulman Inc., CVR†(a)	193,972		193,972
		TOTAL RIGHTS		1,163,744		922,035
Principal Amount
		CORPORATE BONDS — 0.0%
		Health Care — 0.0%
$	65,000	Constellation Health Promissory Note, PIK, 5.000%, 01/31/24(a)(b)		27,950		27,950
		U.S. GOVERNMENT OBLIGATIONS — 58.6%
	555,102,000	U.S. Treasury Bills, 2.151% to 2.517%††, 01/08/19 to 06/20/19(c)		552,360,622		552,352,073
		TOTAL INVESTMENTS BEFORE SECURITIES SOLD SHORT — 95.3%	$	904,971,224		897,539,923

See accompanying notes to financial statements.

9

The Gabelli ABC Fund

Schedule of Investments (Continued) — December 31, 2018

					Market Value
		SECURITIES SOLD SHORT — (5.1)%
		(Proceeds received $56,516,862)			$	(47,547,738	)
		Other Assets and Liabilities (Net) — 9.8%				92,266,841
		NET ASSETS — 100.0%.			$	942,259,026
Shares			Proceeds		Market Value
		SECURITIES SOLD SHORT — (5.1)%
		Building and Construction — (2.9)%
	700,000	Lennar Corp., Cl. A	$	35,877,460	$	27,405,000
		Energy and Utilities — (2.1)%
	274,290	Dominion Energy Inc.		20,164,551		19,600,763
		Health Care — (0.0)%
	4,283	Takeda Pharmaceutical Co. Ltd.		150,852		144,779
		Metals and Mining — (0.1)%
	29,335	Barrick Gold Corp.		323,999		397,196
		TOTAL SECURITIES SOLD SHORT(d)	$	56,516,862	$	47,547,738

(a) Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

(b) Payment-in-kind (PIK) security. 5.00% PIK interest income will be paid as additional securities at the discretion of the issuer.

(c) At December 31, 2018, $108,000,000 of the principal amount was reserved and/or pledged with the custodian for securities sold short, equity contract for difference swap agreements, and forward foreign exchange contracts.

(d) At December 31, 2018, these proceeds were being held at Pershing LLC.

† Non-income producing security.

†† Represents annualized yields at dates of purchase.

ADR American Depositary Receipt

CCCP Contingent Cash Consideration Payment

CPR Contingent Payment Right

CVR Contingent Value Right

REIT Real Estate Investment Trust

SDR Swedish Depositary Receipt

As of December 31, 2018, forward foreign exchange contracts outstanding were as follows:

Currency Purchased	Currency Sold	Counterparty	Settlement Date		Unrealized Depreciation
USD 19,833,654	EUR  17,300,000	State Street Bank and Trust Co.		01/24/19		$  (28,713)
USD 9,893,582	GBP   7,800,000	State Street Bank and Trust Co.		01/24/19		(60,476)
USD 531,658	SEK   4,800,000	State Street Bank and Trust Co.		01/24/19		(11,007)
TOTAL FORWARD FOREIGN EXCHANGE CONTRACTS						$(100,196)

As of December 31, 2018, equity contract for difference swap agreements outstanding were as follows:

Market Value Appreciation Received

One Month LIBOR Plus 90 bps plus Market Value Depreciation Paid

Counterparty

Payment Frequency

Termination Date

Notional Amount

Value

Upfront Payments/ Receipts

Unrealized Appreciation

Premier Foods plc

Premier Foods plc

The Goldman Sachs Group, Inc.

1 month

04/02/2019

$704,375

$6,469

—

$6,469

TOTAL EQUITY CONTRACT FOR DIFFERENCE SWAP AGREEMENT

$6,469

See accompanying notes to financial statements.

10

The Gabelli ABC Fund

Statement of Assets and Liabilities

December 31, 2018

Assets:
Investments, at value (cost $904,971,224)	$	897,539,923
Cash		69,305
Deposit at broker for securities sold short		34,004,892
Receivable for Fund shares sold		33,246,872
Receivable for investments sold		47,835,154
Dividends and interest receivable		169,709
Prepaid expenses		17,556
Unrealized appreciation on swap contracts		6,469
Total Assets		1,012,889,880
Liabilities:
Securities sold short, at value (proceeds $56,516,862)		47,547,738
Payable for investments purchased		20,194,572
Payable for Fund shares redeemed		2,096,467
Payable for investment advisory fees		401,153
Payable for distribution fees		85,423
Payable for accounting fees		7,500
Unrealized depreciation on forward foreign exchange contracts		100,196
Dividends payable on securities sold short		3,990
Other accrued expenses		193,815
Total Liabilities		70,630,854
Net Assets (applicable to 94,306,954 shares outstanding)	$	942,259,026
Net Assets Consist of:
Paid-in capital	$	945,600,329
Total accumulated loss(a)		(3,341,303	)
Net Assets	$	942,259,026
Shares of Capital Stock, each at $0.001 par value; 500,000,000 shares authorized:
Class AAA:
Net Asset Value, offering, and redemption price per share ($564,928,617 ÷ 56,301,615 shares outstanding)		$10.03
Advisor Class:
Net Asset Value, offering, and redemption price per share ($377,330,409 ÷ 38,005,339 shares outstanding)		$  9.93

(a) Effective December 31, 2018, the Fund has adopted disclosure requirements conforming to SEC Rule6-04.17 of RegulationS-X and discloses total distributable earnings/accumulated loss.

See Note 2 for further details.

Statement of Operations

For the Year Ended December 31, 2018

Investment Income:
Dividends (net of foreign withholding taxes of $309,196)	$	9,688,734
Interest		13,694,340
Total Income		23,383,074
Expenses:
Investment advisory fees.		5,941,292
Distribution fees - Advisor Class		1,384,203
Dividend expense on securities sold short		177,106
Service fees for securities sold short (See Note 2)		4,191
Custodian fees		142,896
Shareholder communications expenses		105,860
Directors’ fees		92,000
Legal and audit fees		72,172
Shareholder services fees		64,428
Registration expenses		59,904
Accounting fees		45,000
Tax expense		11,572
Interest expense		9,780
Miscellaneous expenses		79,768
Total Expenses		8,190,172
Less:
Expenses paid indirectly by broker (See Note 6)		(9,936	)
Net Expenses		8,180,236
Net Investment Income		15,202,838
Net Realized and Unrealized Gain/(Loss) on Investments, Securities Sold Short, Swap Contracts, Forward Foreign Exchange Contracts, and Foreign Currency:
Net realized gain on investments		12,319,336
Net realized gain on securities sold short		206,364
Net realized loss on swap contracts		(254,334	)
Net realized gain on forward foreign exchange contracts		6,352,747
Net realized loss on foreign currency transactions		(523,230	)
Net realized gain on investments, securities sold short, swap contracts, forward foreign exchange contracts, and foreign currency transactions		18,100,883
Net change in unrealized appreciation/depreciation:
on investments		(48,451,578	)
on securities sold short		18,156,353
on swap contracts		(50,452	)
on forward foreign exchange contracts		522,214
on foreign currency translations		544
Net change in unrealized appreciation/depreciation on investments, securities sold short, swap contracts, forward foreign exchange contracts, and foreign currency translations		(29,822,919	)
Net Realized and Unrealized Gain/(Loss) on Investments, Securities Sold Short, Swap Contracts, Forward Foreign Exchange Contracts, and Foreign Currency		(11,722,036	)
Net Increase in Net Assets Resulting from Operations	$	3,480,802

See accompanying notes to financial statements.

11

The Gabelli ABC Fund

Statement of Changes in Net Assets

	Year Ended December 31, 2018			Year Ended December 31, 2017
Operations:
Net investment income	$	15,202,838		$	5,266,222
Net realized gain on investments, securities sold short, swap contracts, forward foreign exchange contracts, and foreign currency transactions		18,100,883			2,977,213
Net change in unrealized appreciation/depreciation on investments, securities sold short, swap contracts, forward foreign exchange contracts, and foreign currency translations		(29,822,919	)		21,562,333
Net Increase in Net Assets Resulting from Operations		3,480,802			29,805,768
Distributions to Shareholders:
Accumulated earnings
Class AAA		(18,814,207	)		(873,690	)
Advisor Class		(12,506,327	)		(992,479	)
Total Distributions to Shareholders(a)		(31,320,534	)		(1,866,169	)(b)
Capital Share Transactions:
Class AAA		(78,769,868	)		17,342,365
Advisor Class		(343,100,748	)		(63,106,925	)
Net Decrease in Net Assets from Capital Share Transactions		(421,870,616	)		(45,764,560	)
Redemption Fees		13,498			8,752
Net Decrease in Net Assets		(449,696,850	)		(17,816,209	)
Net Assets:
Beginning of year		1,391,955,876			1,409,772,085
End of year	$	942,259,026		$	1,391,955,876

(a) Effective December 31, 2018, the Fund has adopted disclosure requirements conforming to SEC Rule6-04.17 of RegulationS-X. See Note 2 for further details.

(b) For the year ended December 31, 2017, the distributions to shareholders were comprised entirely of net realized gain.

See accompanying notes to financial statements.

12

The Gabelli ABC Fund

Financial Highlights

Selected data for a share of capital stock outstanding throughout each year:

			Income (Loss) from Investment Operations							Distributions														Ratios to Average Net Assets/ Supplemental Data
Year Ended	Net Asset Value, Beginning		Net Investment Income			Net Realized and Unrealized Gain (Loss) on		Total from Investment		Net Investment			Net Realized Gain on		Total		Redemption		Net Asset Value, End of		Total			Net Assets, End of Year		Net Investment Income			Operating			Portfolio Turnover
December 31	of Year		(Loss) (a)			Investments		Operations		Income			Investments		Distributions		Fees (a)(b)		Year		Return†			(in 000’s)		(Loss)			Expenses			Rate
Class AAA
2018		$10.38		$ 0.15			$(0.13)		$ 0.02		$(0.24	)		$(0.13)		$(0.37)		$0.00		$10.03		0.2	%		$564,929		1.41	%		0.57	%(c)(d)(e)		231	%
2017		10.17		0.05			0.17		0.22		—			(0.01)		(0.01)		0.00		10.38		2.2			660,559		0.51			0.58	(c)(d)(e)(f)		205
2016		10.10		0.02			0.29		0.31		(0.07	)		(0.17)		(0.24)		0.00		10.17		3.1			630,052		0.19			0.60	(d)(e)(f)		287
2015		10.13		(0.00	)(b)		0.24		0.24		(0.06	)		(0.21)		(0.27)		0.00		10.10		2.3			630,205		(0.01	)		0.59	(d)(e)		276
2014		10.24		(0.00	)(b)		0.12		0.12		(0.05	)		(0.18)		(0.23)		0.00		10.13		1.2			659,818		(0.04	)		0.58	(e)		281
Advisor Class
2018		$10.27		$0.12			$(0.13)		$(0.01)		$(0.20	)		$(0.13)		$(0.33)		$0.00		$ 9.93		(0.1	)%		$377,330		1.14	%		0.82	%(c)(d)(e)		231	%
2017		10.08		0.03			0.17		0.20		—			(0.01)		(0.01)		0.00		10.27		2.0			731,397		0.26			0.83	(c)(d)(e)(f)		205
2016		10.01		(0.01	)		0.30		0.29		(0.05	)		(0.17)		(0.22)		0.00		10.08		2.9			779,720		(0.06	)		0.85	(d)(e)(f)		287
2015		10.05		(0.03	)		0.23		0.20		(0.03	)		(0.21)		(0.24)		0.00		10.01		2.0			717,303		(0.27	)		0.84	(d)(e)		276
2014		10.16		(0.03	)		0.12		0.09		(0.02	)		(0.18)		(0.20)		0.00		10.05		0.9			712,086		(0.30	)		0.83	(e)		281

† Total return represents aggregate total return of a hypothetical $1,000 investment at the beginning of the year and sold at the end of the year including reinvestment of distributions and does not reflect the applicable sales charges.

(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 tax expense during the years ended December 31, 2018 and 2017. For the year ended December 31, 2018, the effect was minimal. For the year ended December 31, 2017, if the tax expense had not been incurred, the ratios of operating expenses to average net assets would have been 0.57% (Class AAA) and 0.82% (Advisor Class).

(d) The Fund received credits from a designated broker who agreed to pay certain Fund operating expenses. For the years ended December 31, 2018, 2017, 2016, and 2015, there was no impact to the expense ratios.

(e) The Fund incurred dividend expense and service fees on securities sold short. If these expenses and fees had not been incurred, the ratios of operating expenses to average net assets for the years ended December 31, 2018, 2017, 2016, 2015, and 2014 would have been 0.56%, 0.55%, 0.55%, 0.55%, and 0.57% (Class AAA) and 0.81%, 0.80%, 0.80%, 0.77%, and 0.82% (Advisor Class), respectively.

(f) During the years ended December 31, 2017 and 2016, the Fund received reimbursements of custody expenses paid in prior years. Had such reimbursements (allocated by relative net asset values of the Fund’s share classes) been included in the 2016 calculation, the annualized expense ratios would have been 0.58% (Class AAA) and 0.83% (Advisor Class). The 2017 reimbursement had no effect on the expense ratio.

See accompanying notes to financial statements.

13

The Gabelli ABC Fund

Notes to Financial Statements

1. Organization.The Gabelli ABC Fund, a series of Gabelli Investor Funds, Inc., was incorporated on October 30, 1992 in Maryland, and commenced investment operations on May 14, 1993. The Fund is anon-diversifiedopen-end management investment company registered under the Investment Company Act of 1940, as amended (the 1940 Act). The Fund’s primary objective is to achieve total returns that are attractive to investors in various market conditions without excessive risk of capital loss.

2. Significant Accounting Policies.As an investment company, the Fund follows the investment company accounting and reporting guidance, which is part of U.S. generally accepted accounting principles (GAAP) that may require the use of management estimates and assumptions in the preparation of its 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.

New Accounting Pronouncements.The SEC recently adopted changes to RegulationS-X to simplify the reporting of information by registered investment companies in financial statements. The amendments require presentation of the total, rather than the components, of distributable earnings on the Statement of Assets and Liabilities and also require presentation of the total, rather than the components, of distributions to shareholders, except for tax return of capital distributions, if any, on the Statement of Changes in Net Assets. The amendments also removed the requirement for parenthetical disclosure of undistributed net investment income on the Statement of Changes in Net Assets. These RegulationS-X amendments are reflected in the Fund’s financial statements for the fiscal year ended December 31, 2018. As a result of adopting these amendments, the distributions to shareholders in the December 31, 2017 Statement of Changes in Net Assets presented herein have been reclassified to conform to the current year presentation.

To improve the effectiveness of fair value disclosure requirements, the Financial Accounting Standards Board recently issued Accounting Standard Update (ASU)2018-13, Fair Value Measurement Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (ASU2018-13), which adds, removes, and modifies certain aspects relating to fair value disclosure. ASU2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption of the additions relating to ASU2018-13 is not required, even if early adoption is elected for the removals under ASU2018-13. Management has early adopted the removals set forth in ASU2018-13 in these financial statements and has not early adopted the additions set forth in ASU2018-13.

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

14

The Gabelli ABC Fund

Notes to Financial Statements (Continued)

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 obligations 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, 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. 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. OTC futures and options on futures for which market quotations are readily available will be valued by quotations received from a pricing service or, if no quotations are available from a pricing service, by quotations obtained from one of more dealers in the instrument in question by the Adviser.

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 andnon-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 American Depositary Receipt 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 Board’s determinations as to the fair value of investments).

15

The Gabelli ABC Fund

Notes to Financial Statements (Continued)

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually and in the aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of the Fund’s investments in securities and other financial instruments by inputs used to value the Fund’s investments as of December 31, 2018 is as follows:

	Valuation Inputs
	Level 1 Quoted Prices			Level 2 Other Significant Observable Inputs				Level 3 Significant Unobservable Inputs			Total Market Value at 12/31/18
INVESTMENTS IN SECURITIES:
ASSETS (Market Value):
Common Stocks:
Business Services		$	435,798		$	5,274				—		$	441,072
Cable and Satellite			5,250,917			—			$	2,643,010			7,893,927
Diversified Industrial			2,153,438			128				—			2,153,566
Energy and Utilities			73,820,268			—				0			73,820,268
Financial Services			36,003,396			—				2			36,003,398
Metals and Mining			10,218,044			455,895				—			10,673,939
Publishing			2,488,610			—				96,243			2,584,853
Other Industries (a)			210,585,726			—				—			210,585,726
Total Common Stocks			340,956,197			461,297				2,739,255			344,156,749
Closed-End Funds			81,116			—				—			81,116
Rights (a)			192,006			—				730,029			922,035
Corporate Bonds (a)			—			—				27,950			27,950
U.S. Government Obligations			—			552,352,073				—			552,352,073
TOTAL INVESTMENTS IN SECURITIES – ASSETS		$	341,229,319		$	552,813,370			$	3,497,234		$	897,539,923
LIABILITIES (Market Value):
Common Stocks Sold Short (a)		$	(47,547,738)			—				—		$	(47,547,738	)
TOTAL INVESTMENTS IN SECURITIES - LIABILITIES		$	(47,547,738)			—				—		$	(47,547,738	)
OTHER FINANCIAL INSTRUMENTS:*
ASSETS (Unrealized Appreciation):
EQUITY CONTRACTS
Contract for Difference Swap Agreements			—		$	6,469				—		$	6,469
LIABILITIES (Unrealized Depreciation):
FORWARD CURRENCY EXCHANGE
CONTRACTS
Forward Foreign Exchange Contracts			—			(100,196	)			—			(100,196	)
TOTAL OTHER FINANCIAL INSTRUMENTS:			—		$	(93,727	)			—		$	(93,727	)

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

* Other financial instruments are derivatives reflected in the SOI, such as options, futures, forwards, and swaps, which may be valued at the unrealized appreciation/(depreciation) of the instrument.

The Fund did not have material transfers into or out of Level 3 during the year ended December 31, 2018. The Fund’s policy is to recognize transfers among Levels as of the beginning of the reporting period.

Additional Information to Evaluate Qualitative Information.

General.The Fund uses recognized industry pricing services – approved by the Board and unaffiliated with the Adviser – to value most of its securities, and uses broker quotes provided by market makers of securities not valued by these and other recognized pricing sources. Several different pricing feeds are received to value domestic equity securities, international equity securities, preferred equity securities, and fixed income securities.

16

The Gabelli ABC Fund

Notes to Financial Statements (Continued)

The data within these feeds are ultimately sourced from major stock exchanges and trading systems where these securities trade. The prices supplied by external sources are checked by obtaining quotations or actual transaction prices from market participants. If a price obtained from the pricing source is deemed unreliable, prices will be sought from another pricing service or from a broker/dealer that trades that security or similar securities.

Fair Valuation.Fair valued securities may be common or preferred equities, warrants, options, rights, or fixed income obligations. Where appropriate, Level 3 securities are those for which market quotations are not available, such as securities not traded for several days, or for which current bids are not available, or which are restricted as to transfer. Among the factors to be considered to fair value a security are recent prices of comparable securities that are publicly traded, reliable prices of securities not publicly traded, the use of valuation models, current analyst reports, valuing the income or cash flow of the issuer, or cost if the preceding factors do not apply. A significant change in the unobservable inputs could result in a lower or higher value in Level 3 securities. The circumstances of Level 3 securities are frequently monitored to determine if fair valuation measures continue to apply.

The Adviser reports quarterly to the Board the results of the application of fair valuation policies and procedures. These may include back testing the prices realized in subsequent trades of these fair valued securities to fair values previously recognized.

Derivative Financial Instruments.The Fund may engage in various portfolio investment strategies by investing in derivative financial instruments for the purposes of increasing the income of the Fund, hedging against changes in the value of its portfolio securities and in the value of securities it intends to purchase, or hedging against a specific transaction with respect to either the currency in which the transaction is denominated or another currency. Investing in certain derivative financial instruments, including participation in the options, futures, or swap markets, entails certain execution, liquidity, hedging, tax, and securities, interest, credit, or currency market risks. Losses may arise if the Adviser’s prediction of movements in the direction of the securities, foreign currency, and interest rate markets is inaccurate. Losses may also arise if the counterparty does not perform its duties under a contract, or that, in the event of default, the Fund may be delayed in or prevented from obtaining payments or other contractual remedies owed to it under derivative contracts. The creditworthiness of the counterparties is closely monitored in order to minimize these risks. Participation in derivative transactions involves investment risks, transaction costs, and potential losses to which the Fund would not be subject absent the use of these strategies. The consequences of these risks, transaction costs, and losses may have a negative impact on the Fund’s ability to pay distributions.

Collateral requirements differ by type of derivative. Collateral requirements are set by the broker or exchange clearing house for exchange traded derivatives, while collateral terms are contract specific for derivatives tradedover-the-counter. Securities pledged to cover obligations of the Fund under derivative contracts are noted in the Schedule of Investments. Cash collateral, if any, pledged for the same purpose will be reported separately in the Statement of Assets and Liabilities.

The Fund’s policy with respect to offsetting is that, absent an event of default by the counterparty or a termination of the agreement, the master agreement does not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities across transactions between the Fund and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction.

17

The Gabelli ABC Fund

Notes to Financial Statements (Continued)

The Fund’s derivative contracts held at December 31, 2018, if any, are not accounted for as hedging instruments under GAAP and are disclosed in the Schedule of Investments together with the related counterparty.

Swap Agreements.The Fund may enter into equity contract for difference swap transactions for the purpose of increasing the income of the Fund. The use of swaps is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio security transactions. In an equity contract for difference swap, a set of future cash flows is exchanged between two counterparties. One of these cash flow streams will typically be based on a reference interest rate combined with the performance of a notional value of shares of a stock. The other will be based on the performance of the shares of a stock. Depending on the general state of short term interest rates and the returns on the Fund’s portfolio securities at the time an equity contract for difference swap transaction reaches its scheduled termination date, there is a risk that the Fund will not be able to obtain a replacement transaction or that the terms of the replacement will not be as favorable as on the expiring transaction. Equity contract for difference swap agreements at December 31, 2018 are presented within the Schedule of Investments.

Unrealized gains related to swaps are reported as an asset and unrealized losses are reported as a liability in the Statement of Assets and Liabilities. The change in value of swaps, including the accrual of periodic amounts of interest to be received or paid on swaps, is reported as unrealized gain or loss in the Statement of Operations. A realized gain or loss is recorded upon receipt or payment of a periodic payment or termination of swap agreements.

The Fund’s volume of activity in equity contract for difference swap agreements during the year ended December 31, 2018 had an average monthly notional amount of approximately $1,193,727 over the period that the swaps were outstanding.

At December 31, 2018, the value of equity contract for difference swap agreements can be found in the Statement of Assets and Liabilities under Assets, Unrealized appreciation on swap contracts. For the year ended December 31, 2018, the effect of equity contract for difference swap agreements can be found in the Statement of Operations under Net Realized and Unrealized Gain/(Loss) on Investments, Securities Sold Short, Swap Contracts, Forward Foreign Exchange Contracts, and Foreign Currency within Net realized loss on swap contracts and Net change in unrealized appreciation/depreciation on swap contracts.

Forward Foreign Exchange Contracts.The Fund may engage in forward foreign exchange contracts for the purpose of hedging a specific transaction with respect to either the currency in which the transaction is denominated or another currency as deemed appropriate by the Adviser. Forward foreign exchange contracts are valued at the forward rate and aremarked-to-market daily. The change in market value is included in unrealized appreciation/depreciation on foreign currency translations. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

The use of forward foreign exchange contracts does not eliminate fluctuations in the underlying prices of the Fund’s portfolio securities, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign exchange contracts limit the risk of loss due to a decline in the value of the hedged currency, they also limit any potential gain that might result should the value of the currency increase. Forward foreign exchange contracts at December 31, 2018 are reflected within the Schedule of Investments. The Fund’s volume

18

The Gabelli ABC Fund

Notes to Financial Statements (Continued)

of activity in forward foreign exchange contracts during the year ended December 31, 2018 had an average monthly notional amount of approximately $61,223,077.

At December 31, 2018, the value of forward foreign exchange contracts can be found in the Statement of Assets and Liabilities under Liabilities, Unrealized depreciation on forward foreign exchange contracts. For the year ended December 31, 2018, the effect of forward foreign exchange contracts can be found in the Statement of Operations under Net Realized and Unrealized Gain/(Loss) on Investments, Securities Sold Short, Swap Contracts, Forward Foreign Exchange Contracts, and Foreign Currency, within Net realized gain on forward foreign exchange contracts and Net change in unrealized appreciation/depreciation on forward foreign exchange contracts.

At December 31, 2018, the Fund’s derivative assets (by type) are as follows:

	Gross Amounts of Recognized Assets Presented in the Statement of Assets and Liabilities	Gross Amounts Available for Offset in the Statement of Assets and Liabilities		Net Amounts of Assets Presented in the Statement of Assets and Liabilities
Assets
Equity Contract for Difference Swap Agreements	$6,469		—		$6,469
	Gross Amounts of Recognized Liabilities Presented in the Statement of Assets and Liabilities	Gross Amounts Available for Offset in the Statement of Assets and Liabilities		Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities
Liabilities
Forward Foreign Exchange Contracts	$100,196		—		$100,196

The following tables present the Fund’s derivative assets and liabilities by counterparty net of the related collateral segregated by the Fund for the benefit of the counterparty as of December 31, 2018:

	Net Amounts Not Offset in the Statement of Assets and Liabilities
	Net Amounts of Assets Presented in the Statement of Assets and Liabilities		Securities Pledged as Collateral		Cash Collateral Received		Net Amount
Counterparty
The Goldman Sachs Group, Inc.		$6,469		—		—		$6,469
	Net Amounts Not Offset in the Statement of Assets and Liabilities
	Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities		Securities Pledged as Collateral		Cash Collateral Pledged		Net Amount
Counterparty
State Street Bank & Trust Co.		$100,196		$100,196		—		—

19

The Gabelli ABC Fund

Notes to Financial Statements (Continued)

Securities Sold Short.The Fund enters 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 theex-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. Securities sold short and details of collateral at December 31, 2018 are reflected within the Schedule of Investments. For the year ended December 31, 2018, the Fund incurred $4,191 in service fees related to its investment positions sold short and held by the broker. These amounts are included in the Statement of Operations under Expenses, Service fees for securities sold short.

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

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

Foreign Taxes.The Fund may be subject to foreign taxes on income, gains on investments, or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.

Restricted Securities.The Fund may invest up to 15% of its net assets in securities for which the markets are restricted. Restricted securities include securities whose disposition is subject to substantial legal or contractual restrictions. The sale of restricted securities often requires more time and results in higher brokerage charges or dealer discounts and other selling expenses than does the sale of securities eligible for trading on national securities exchanges or in theover-the-counter markets. Restricted securities may sell at a price lower than similar securities that are not subject to restrictions on resale. Securities freely saleable among qualified institutional investors under special rules adopted by the SEC may be treated as liquid if they satisfy liquidity standards

20

The Gabelli ABC Fund

Notes to Financial Statements (Continued)

established by the Board. The continued liquidity of such securities is not as well assured as that of publicly traded securities, and accordingly the Board will monitor their liquidity. At December 31, 2018, the Fund held no restricted securities.

Investments in other Investment Companies.The Fund may invest, from time to time, in shares of other investment companies (or entities that would be considered investment companies but are excluded from the definition pursuant to certain exceptions under the 1940 Act) (the Acquired Funds) in accordance with the 1940 Act and related rules. Shareholders in the Fund would bear the pro rata port on of the periodic expenses of the Acquired Funds in addition to the Fund’s expenses. For the year ended December 31, 2018, the Fund’s pro rata portion of the periodic expenses charged by the Acquired Funds was less than one basis point.

Securities Transactions and Investment Income.Securities transactions are accounted for on the trade date with realized gain/(loss) on investments determined by using the identified cost method. Interest income (including amortization of premium and accretion of discount) is recorded on an accrual basis. Premiums and discounts on debt securities are amortized using the effective yield to maturity method. Dividend income is recorded on theex-dividend date, except for certain dividends from foreign securities that are recorded as soon after theex-dividend date as the Fund becomes aware of such dividends.

Determination of Net Asset Value and Calculation of Expenses.Certain administrative expenses are common to, and allocated among, various affiliated funds. Such allocations are made on the basis of each fund’s average net assets or other criteria directly affecting the expenses as determined by the Adviser pursuant to procedures established by the Board.

In calculating the NAV per share of each class, investment income, realized and unrealized gains and losses, redemption fees, and expenses other than class specific expenses are allocated daily to each class of shares based upon the proportion of net assets of each class at the beginning of each day. Distribution expenses are borne solely by the class incurring the expense.

Distributions to Shareholders.Distributions to shareholders are recorded on theex-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. Permanent differences were primarily due to the tax treatment of currency gains and losses, reclassifications of capital gains on passive foreign investment companies, and tax equalization utilized during the year. These reclassifications have no impact on the NAV of the Fund. For the year ended December 31, 2018, reclassifications were made to increasepaid-in capital by $7,627,507, with an offsetting adjustment to total distributable earnings.

21

The Gabelli ABC Fund

Notes to Financial Statements (Continued)

The tax character of distributions paid during the years ended December 31, 2018 and 2017 was as follows:

	Year Ended December 31, 2018		Year Ended December 31, 2017
Distributions paid from:*
Ordinary income (inclusive of short term capital gains)		$30,408,114		$4,088,762
Net long term capital gains		8,637,344		101,986
Total distributions paid		$39,045,458		$4,190,748

* Total distributions paid differs from the Statement of Changes in Net Assets due to the utilization of equalization.

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. During the year ended December 31, 2018, the Fund paid excise tax of $11,572.

As of December 31, 2018, the components of accumulated earnings/losses on a tax basis were as follows:

Undistributed ordinary income	$	45,027
Net unrealized depreciation on investments, foreign currency translations, forwards and swap contracts		(3,386,330	)
Total	$	(3,341,303	)

The Fund is permitted to carry capital losses forward for an unlimited period. Capital losses that are carried forward will retain their character as either short term or long term capital losses.

At December 31, 2018, the temporary difference between book basis and tax basis net unrealized appreciation/(depreciation) on investments were primarily due to deferral of losses from wash sales for tax purposes,mark-to-market adjustments on currency gains and losses and swaps, and basis adjustments on investments in partnerships.

The following summarizes the tax cost of investments and the related net unrealized depreciation at December 31, 2018:

	Cost/ (Proceeds)		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Net Unrealized Depreciation
Investments and derivative instruments	$	853,286,957		$27,627,719	$	(31,016,218)		$(3,388,499)

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 themore-likely-than-not threshold. Except as disclosed above, for the year ended December 31, 2018, the Fund did not incur any income tax, interest, or penalties. As of December 31, 2018, 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. The Fund’s federal and state tax returns for the prior three fiscal years remain open, subject to examination. On an ongoing basis, the Adviser will monitor the Fund’s tax positions to determine if adjustments to this conclusion are necessary.

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

22

The Gabelli ABC Fund

Notes to Financial Statements (Continued)

a fee, computed daily and paid monthly, at the annual rate of 0.50% 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 $9,000 plus $2,000 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 and the Chairman of the Audit Committee and the Lead Director each receives a $2,000 annual fee. 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 the Advisor Class Shares pursuant to Rule12b-1 under the 1940 Act. Under the Advisor Class Share Plan, payment is authorized to G.distributors, LLC (the Distributor), an affiliate of the Adviser, at an annual rate of 0.25% of the average daily net assets of the Advisor Class Shares, the annual limitation under the Plan. Such payments are accrued daily and paid monthly.

5. Portfolio Securities.Purchases and sales of securities during the year ended December 31, 2018, other than short term securities and U.S. Government obligations, aggregated $1,068,919,470 and $1,159,843,304, respectively.

6. Transactions with Affiliates and Other Arrangements.During the year ended December 31, 2018, the Fund paid $300,605 in brokerage commissions on security trades to G.research, LLC, an affiliate of the Adviser.

During the year ended December 31, 2018, the Fund received credits from a designated broker who agreed to pay certain Fund operating expenses. The amount of such expenses paid through this directed brokerage arrangement during this period was $9,936.

The cost of calculating the Fund’s NAV per share is a Fund expense pursuant to the Advisory Agreement. During the year ended December 31, 2018, the Fund accrued $45,000 in accounting fees in the Statement of Operations.

As of December 31, 2018, the Fund’s Adviser and its affiliates beneficially owned greater than 25% of the voting securities of the Fund. This includes accounts for which the affiliates of the Adviser have voting control but disclaim pecuniary interest.

7. Line of Credit.The Fund participates in an unsecured line of credit, which expires on March 6, 2019 and may be renewed annually, of up to $75,000,000 under which it may borrow up to 10% of its net assets from the custodian for temporary borrowing purposes. Borrowings under this arrangement bears interest at a floating rate equal to the higher of the overnight Federal Funds rate plus 125 basis points or the 30 day ICE LIBOR plus 125 basis points in effect on that day. This amount, if any, would be included in “Interest expense” in the Statement of Operations. During the year ended December 31, 2018, there was a one day borrowing of $4,066,000

23

The Gabelli ABC Fund

Notes to Financial Statements (Continued)

at an interest rate of 3.63%. Interest amounted to $410. At December 31, 2018, there were no borrowings outstanding under the line of credit.

8. Capital Stock.The Fund offers Class AAA Shares and Advisor Class Shares to investors without afront-end sales charge. Class AAA Shares are available directly through the Distributor or through the Fund’s transfer agent. Advisor Class Shares are available through registered broker-dealers or other financial intermediaries that have entered into appropriate selling agreements with the Distributor.

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 as an increase inpaid-in capital. The redemption fees retained by the Fund during the fiscal years ended December 31, 2018 and 2017, if any, can be found in the Statement of Changes in Net Assets under Redemption Fees.

Transactions in shares of capital stock were as follows:

	Year Ended December 31, 2018						Year Ended December 31, 2017
	Shares			Amount			Shares			Amount
Class AAA
Shares sold		15,442,449		$	159,369,883			9,081,287		$	93,724,610
Shares issued upon reinvestment of distributions		1,843,634			18,454,779			83,487			865,755
Shares redeemed		(24,602,821	)		(256,594,530	)		(7,512,033	)		(77,248,000	)
Net increase/(decrease)		(7,316,738	)	$	(78,769,868	)		1,652,741		$	17,342,365
Advisor Class
Shares sold		11,623,078		$	119,499,115			25,957,392		$	263,827,681
Shares issued upon reinvestment of distributions		1,117,749			11,076,893			70,146			719,001
Shares redeemed		(45,984,679	)		(473,676,756	)		(32,149,227	)		(327,653,607	)
Net (decrease)		(33,243,852	)	$	(343,100,748	)		(6,121,689	)	$	(63,106,925	)

9. 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.

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.

24

The Gabelli ABC Fund

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of

Gabelli Investor Funds, Inc.

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of Gabelli Investor Funds, Inc. (the “Corporation”) (comprising The Gabelli ABC Fund (the “Fund”)) including the schedule of investments, as of December 31, 2018, 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, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund comprising Gabelli Investor Funds, Inc. at December 31, 2018, 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 its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Corporation’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Corporation in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Corporation is not required to have, nor were we engaged to perform, an audit of the Corporation’s internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Corporation’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more Gabelli/GAMCO Funds investment companies since 1992.

Philadelphia, Pennsylvania

February 28, 2019

25

The Gabelli ABC 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 the Fund’s Directors and is available without charge, upon request, by calling800-GABELLI(800-422-3554) or by writing to The Gabelli ABC Fund at One Corporate Center, Rye, NY 10580-1422.

Name, Position(s) Address1 and Age	Term of Office and Length of Time Served2	Number of Funds in Fund Complex Overseen by Director	Principal Occupation(s) During Past Five Years	Other Directorships Held by Director3
INTERESTED DIRECTORS4:
Mario J. Gabelli, CFA Director and Chief Investment Officer Age: 76	Since 1993	35	Chairman, Chief Executive Officer, and Chief Investment Officer– Value Portfolios of GAMCO Investors, Inc. and Chief Investment Officer– Value Portfolios of Gabelli Funds, LLC and GAMCO Asset Management Inc.; Director/ Trustee or Chief Investment Officer of other registered investment companies within the Gabelli/GAMCO Fund Complex; Chief Executive Officer of GGCP, Inc.; Executive Chairman of Associated Capital Group, Inc.	Director of Morgan Group Holdings, Inc. (holding company); Chairman of the Board and Chief Executive Officer of LICT Corp. (multimedia and communication services company); Director of CIBL, Inc. (broadcasting and wireless communications); Director of ICTC Group Inc. (communications)
INDEPENDENT DIRECTORS5:
Anthony J. Colavita Director Age: 83	Since 1993	20	President of the law firm of Anthony J. Colavita, P.C.	—
Vincent D. Enright Director Age: 75	Since 1993	17	Former Senior Vice President and Chief Financial Officer of KeySpan Corp. (public utility) (1994-1998)	Director of Echo Therapeutics, Inc. (therapeutics and diagnostics) (2008-2014); Director of The LGL Group, Inc. (diversified manufacturing) (2011-2014)
Mary E. Hauck Director Age: 76	Since 2000	11	Retired Senior Manager of the Gabelli- O’Connor Fixed Income Mutual Funds Management Company	—
Kuni Nakamura6 Director Age: 50	Since 2009	37	President of Advanced Polymer, Inc. (chemical manufacturing company); President of KEN Enterprises, Inc. (real estate)	—
Werner J. Roeder Director Age: 78	Since 1993	23	Retired physician; Former Vice President of Medical Affairs (Medical Director) of New York Presbyterian/Lawrence Hospital (1999-2014)	—

26

The Gabelli ABC Fund

Additional Fund Information (Continued) (Unaudited)

Name, Position(s) Address1 and Age	Term of Office and Length of Time Served2	Principal Occupation(s) During Past Five Years
OFFICERS:
Bruce N. Alpert President Age: 67	Since 1993	Executive Vice President and Chief Operating Officer of Gabelli Funds, LLC since 1988; Officer of registered investment companies within the Gabelli/GAMCO Fund Complex; Senior Vice President of GAMCO Investors, Inc. since 2008
John C. Ball Treasurer Age: 42	Since 2017	Treasurer of funds within the Gabelli/GAMCO Fund Complex since 2017; Vice President and Assistant Treasurer of AMG Funds, 2014-2017; Vice President of State Street Corporation, 2007-2014
Agnes Mullady Vice President Age: 60	Since 2006	Officer of registered investment companies within the Gabelli/GAMCO Fund Complex since 2006; President and Chief Operating Officer of the Fund Division of Gabelli Funds, LLC since 2015; Chief Executive Officer of G.distributors, LLC since 2010; Senior Vice President of GAMCO Investors, Inc. since 2009; Vice President of Gabelli Funds, LLC since 2007; Executive Vice President of Associated Capital Group, Inc. since 2016
Andrea R. Mango Secretary Age: 46	Since 2013	Vice President of GAMCO Investors, Inc. since 2016; Counsel of Gabelli Funds, LLC since 2013; Secretary of registered investment companies within the Gabelli/GAMCO Fund Complex since 2013; Vice President ofclosed-end funds within the Gabelli/GAMCO Fund Complex since 2014; Corporate Vice President within the Corporate Compliance Department of New York Life Insurance Company, 2011-2013
Richard J. Walz Chief Compliance Officer Age: 59	Since 2013	Chief Compliance Officer of registered investment companies within the Gabelli/GAMCO Fund Complex since 2013; Chief Compliance Officer of AEGON USA Investment Management, 2011-2013

¹  Address: One Corporate Center, Rye, NY 10580-1422, 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 orre-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’sBy-Laws and Articles of Incorporation. Each officer will hold office for an indefinite term until the date he or she resigns or retires or until his or her successor is elected and qualified. For Officers includes time served in other officer positions with the Fund.

³  This column includes only directorships of companies required to report to the SEC under the Securities Exchange Act of 1934, as amended, i.e., public companies, or other investment companies registered under the 1940 Act.

⁴  “Interested person” of the Fund as defined in the 1940 Act. Mr. Gabelli is considered an “interested person” because of his affiliation with Gabelli Funds, LLC which acts as the Fund’s investment adviser.

⁵  Directors who are not interested persons are considered “Independent” Directors.

⁶  Mr. Nakamura is a director of Gabelli Merger Plus+ Trust Plc, which may be deemed to be controlled by Mario J. Gabelli and/or affiliates and, in that event, would be deemed to be under common control with the Fund’s Adviser.

27

Gabelli/GAMCO Funds and Your Personal Privacy
Who are we?
The Gabelli/GAMCO Funds are investment companies registered with the Securities and Exchange Commission under the Investment Company Act of 1940. We are managed by Gabelli Funds, LLC, which is affiliated with GAMCO Investors, Inc., a publicly held company with subsidiaries and affiliates that provide investment advisory services for a variety of clients. What kind ofnon-public information do we collect about you if you become a fund shareholder? If you apply to open an account directly with us, you will be giving us somenon-public information about yourself. Thenon-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 anynon-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 tonon-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.

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THE GABELLI ABC FUND

One Corporate Center

Rye, NY 10580-1422

Portfolio Management Team Biographies

Mario J. Gabelli, CFA,is Chairman, Chief Executive Officer, and Chief Investment Officer - Value Portfolios of GAMCO Investors, Inc. that he founded in 1977, and Chief Investment Officer - Value Portfolios of Gabelli Funds, LLC and GAMCO Asset Management Inc. He is also Executive Chairman of Associated Capital Group, Inc. Mr. Gabelli is a summa cum laude graduate of Fordham University and holds an MBA degree from Columbia Business School and Honorary Doctorates from Fordham University and Roger Williams University.

Ryan N. Kahn, CFA,is an analyst dedicated to the Gabelli merger arbitrage portfolios, specifically to our U.S. open andclosed-end funds. He joined the team in 2013 after working as a generalist in the research department. Mr. Kahn earned a Bachelor of Science in Business Management from Babson College.

Regina M. Pitarois a Managing Director and Head of Institutional Marketing at GAMCO Investors, Inc. Ms. Pitaro joined the firm in 1984 and coordinates the organization’s focus with consultants and plan sponsors. She also serves as a Managing Director and Director of GAMCO Asset Management, Inc., and serves as a portfolio manager for Gabelli Funds, LLC. Ms. Pitaro holds an MBA in Finance from the Columbia University Graduate School of Business, a Master’s degree in Anthropology from Loyola University of Chicago, and a Bachelor’s degree from Fordham University.

Gian Maria Magrini, CFA,is an analyst dedicated to the Gabelli merger arbitrage portfolios, specifically to our U.S. open andclosed-end funds. He joined the team in 2013 after serving various roles in the operations and research departments. Mr. Magrini earned a Bachelor of Science in Finance from Fordham University.

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. Both the commentary and the financial statements, including the portfolio of investments, will be available on our website at www.gabelli.com.

2018 TAX NOTICE TO SHAREHOLDERS(Unaudited)

For the fiscal year ended December 31, 2018, the Fund paid to shareholders ordinary income distributions (comprised of net investment income and short term capital gains) totaling $0.2988 and $0.2619 per share for Class AAA and Advisor Class Shares, respectively, and long term capital gains totaling $8,637,344, or the maximum allowable. The distribution of long term capital gains has been designated as a capital gain dividend by the Fund’s Board of Directors. For the year ended December 31, 2018, 24.14% of the ordinary income distribution qualifies for the dividends received deduction available to corporations. The Fund designates 35.44% of the ordinary income distribution as qualified dividend income pursuant to the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund designates 65.72% of the ordinary income distribution as qualified interest income pursuant to the Tax Relief, Unemployment Reauthorization, and Job Creation Act of 2010. The Fund designates 100% of the ordinary income distribution as qualified short term gain pursuant to the American Jobs Creation Act of 2004.

U.S. Government Income:

The percentage of the ordinary income distribution paid by the Fund during the year ended December 31, 2018 which was derived from U.S. Treasury securities was 33.47%. Such income is exempt from state and local tax in all states. However, many states, including New York and California, allow a tax exemption for a portion of the income earned only if a mutual fund has invested at least 50% of its assets at the end of each quarter of the Fund’s fiscal year in U.S. Government securities. The Gabelli ABC Fund did not meet this strict requirement in 2018. The percentage of U.S. Government securities held as of December 31, 2018 was 58.62%. Due to the diversity in state and local tax law, it is recommended that you consult your personal tax adviser as to the applicability of the information provided to your specific situation.

All designations are based on financial information available as of the date of this annual report and, accordingly, are subject to change. For each item, it is the intention of the Fund to designate the maximum amount permitted under the Internal Revenue Code and the regulations thereunder.

THE GABELLI ABC FUND

One Corporate Center

Rye, New York 10580-1422

t    800-GABELLI(800-422-3554)

f   914-921-5118

e  info@gabelli.com

    GABELLI.COM

Net Asset Value per share available daily

by calling800-GABELLI after 7:00 P.M.

BOARD OF DIRECTORS Mario J. Gabelli, CFA Chairman and Chief Executive Officer, GAMCO Investors, Inc. Executive Chairman, Associated Capital Group, Inc.   Anthony J. Colavita President, Anthony J. Colavita, P.C.   Vincent D. Enright Former Senior Vice President and Chief Financial Officer, KeySpan Corp.   Mary E. Hauck FormerSenior Portfolio Manager, Gabelli-O’Connor Fixed Income Mutual Fund Management Co.   Kuni Nakamura President, Advanced Polymer, Inc.   Werner J. Roeder Former Medical Director, Lawrence Hospital OFFICERS   Bruce N. Alpert President   John C. Ball Treasurer   Agnes Mullady Vice President   Andrea R. Mango Secretary   Richard J. Walz Chief Compliance Officer   DISTRIBUTOR   G.distributors, LLC   CUSTODIAN   State Street Bank and Trust Company   TRANSFER AGENT AND DIVIDEND DISBURSING AGENT   DST Asset Manager Solutions, Inc.   LEGAL COUNSEL   Skadden, Arps, Slate, Meagher & Flom LLP

This report is submitted for the general information of the shareholders of The Gabelli ABC Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.

GAB408Q418AR,

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.

(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 Vincent D. Enright is qualified to serve as an audit committee financial expert serving on its audit committee and that he is “independent,” as defined by Item 3 of FormN-CSR.

Item 4. Principal Accountant Fees and Services.

Audit Fees

(a) 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 $26,500 for 2017 and $27,300 for 2018.

Audit-Related Fees

(b) 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 for 2017 and $0 for 2018.

Tax Fees

(c) 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 $3,700 for 2017 and $3,800 for 2018. Tax fees represent tax compliance services provided in connection with the review of the Registrant’s tax returns.

All Other Fees

(d) 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 $1,617 for 2017 and $2,312 for 2018. The fees relate to Passive Foreign Investment Company identification database subscription fees billed on an annual basis.

(e)(1) Disclose the audit committee’spre-approval policies and procedures described in paragraph (c)(7) of Rule2-01 of RegulationS-X.

Pre-Approval Policies and Procedures. The Audit Committee (“Committee”) of the registrant is responsible forpre-approving (i) all audit and permissiblenon-audit services to be provided by the independent registered public accounting firm to the registrant and (ii) all permissiblenon-audit services to be provided by the independent registered public accounting firm to the Adviser, Gabelli Funds, LLC, and any affiliate of Gabelli Funds, LLC (“Gabelli”) that provides services to the registrant (a “Covered Services Provider”) if the independent registered public accounting firm’s engagement related directly to the operations and financial reporting of the registrant. The Committee may delegate its responsibility topre-approve any such audit and permissiblenon-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’spre-approval of such services, his or her decision(s). The Committee may also establish detailedpre-approval policies and procedures forpre-approval of such services in accordance with applicable laws, including the delegation of some or all of the Committee’spre-approval responsibilities to the other persons (other than Gabelli or the registrant’s officers).Pre-approval by the Committee of any permissiblenon-audit services is not required so long as: (i) the permissiblenon-audit services were not recognized by the registrant at the time of the engagement to benon-audit services; and (ii) such services are promptly brought to the attention of the Committee and approved by the Committee or 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 Rule2-01 of RegulationS-X are as follows:

(b) N/A

(c) 0%

(d) 0%

(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.

(g) The aggregatenon-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including anysub-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 $36,986 for 2017 and $43,421 for 2018.

(h) The registrant’s audit committee of the board of directorshas considered whether the provision ofnon-audit services that were rendered to the registrant’s investment adviser (not including anysub-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 notpre-approved pursuant to paragraph (c)(7)(ii) of Rule2-01 of RegulationS-X is compatible with maintaining the principal accountant’s independence.

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 forClosed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers ofClosed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities byClosed-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 RegulationS-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR240.14a-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 Rule30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR270.30a-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 Rule30a-3(b) under the 1940 Act (17 CFR270.30a-3(b)) and Rules13a-15(b) or15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR240.13a-15(b) or240.15d-15(b)).

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule30a-3(d) under the 1940 Act (17 CFR270.30a-3(d))) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities forClosed-End Management Investment Companies.

Not applicable.

Item 13. 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 Rule30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3)	Not applicable.

(a)(4)   Not applicable.

(b) Certifications pursuant to Rule30a-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)                          Gabelli Investor Funds, Inc.                                                      

By (Signature and Title)*    /s/ Bruce N. Alpert                                                                    

Bruce N. Alpert, Principal Executive Officer

Date 3/7/19                                                                                                                               

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 3/7/19                                                                                                                              

By (Signature and Title)*    /s/ John C. Ball                                                                         

John C. Ball, Principal Financial Officer and Treasurer

Date 3/7/19                                                                                                                              

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