UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-01311
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THE GABELLI MATHERS FUND
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(Exact name of registrant as specified in charter)
ONE CORPORATE CENTER,
RYE, NEW YORK 10580-1422
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(Address of principal executive offices) (Zip code)
BRUCE N. ALPERT
GABELLI FUNDS, LLC
ONE CORPORATE CENTER,
RYE, NEW YORK 10580-1422
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(Name and address of agent for service)
registrant's telephone number, including area code: 1-800-422-3554
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Date of fiscal year end: DECEMBER 31, 2003
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Date of reporting period: JUNE 30, 2003
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
THE GABELLI MATHERS FUND
SEMI-ANNUAL REPORT
JUNE 30, 2003
TO OUR SHAREHOLDERS,
We are changing the way we provide portfolio managers' commentary to
shareholders of our Funds. Our shareholder reports have typically contained
commentary on each portfolio manager's assessment of the stock market,
individual stocks and how economic events affect their thinking in managing a
specific Fund. We have always provided details about performance and presented
returns, both good and bad, hopefully in a clear and concise fashion. These
comments have been included as part of each Fund's quarterly, semi-annual, and
annual financial statements.
The Sarbanes-Oxley Act's new corporate governance regulations now require
a Fund's principal executive and financial officers to certify the entire
contents of shareholder reports in a filing with the Securities and Exchange
Commission on form N-CSR. This certification covers the portfolio manager's
commentary and subjective opinions if they are attached to or a part of the
financial statements.
Rather than ask our portfolio managers to eliminate their opinions and/or
restrict their commentary to historical facts only, we are removing their
commentary from the financial statements and sending it to you separately. As a
result, this commentary will no longer be considered part of a Fund's financial
report and therefore will not be subject to the officers' certifications.
We trust that you understand that our approach is an unintended
consequence of the ever-increasing regulatory requirements affecting public
companies generally. We hope the specific certification requirements of these
new regulations will be modified as they relate to mutual funds, since
investment companies have different corporate structures and objectives than
other public companies.
Sincerely yours,
/S/ BRUCE N. ALPERT
Bruce N. Alpert
Chief Operating Officer
August 8, 2003 Gabelli Funds, LLC
THE GABELLI MATHERS FUND
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
------ ---- ------
COMMON STOCKS -- 0.5%
AEROSPACE -- 0.3%
6,000 Veridian Corp.+ .....$ 208,310 $ 209,340
----------- -----------
BUSINESS SERVICES -- 0.0%
500 Quintiles
Transnational Corp.+ 7,120 7,095
----------- -----------
FINANCIAL SERVICES -- 0.0%
2,000 Factual Data Corp.+ . 34,860 34,760
----------- -----------
FINANCIAL SERVICES: BANKS -- 0.0%
500 Port Financial Corp. 26,900 26,940
----------- -----------
FOOD AND BEVERAGE -- 0.1%
500 Dreyer's Grand Ice Cream
Holdings Inc.,
Cl. A ............. 39,595 39,260
----------- -----------
REAL ESTATE -- 0.1%
1,000 Chateau Communities
Inc. .............. 29,940 29,590
1,000 Insignia Financial
Group Inc.+ ....... 11,140 11,110
----------- -----------
41,080 40,700
----------- -----------
TOTAL COMMON STOCKS . 357,865 358,095
----------- -----------
PRINCIPAL
AMOUNT
---------
U.S. GOVERNMENT OBLIGATIONS -- 91.4%
$70,000,000 U.S. Treasury Bill,
1.020%++,
07/03/03 (c) ...... 69,996,034 69,996,034
----------- -----------
REPURCHASE AGREEMENTS -- 8.4%
1,414,501 State Street Bank & Trust Co.,
1.080%, dated 06/30/03,
due 07/01/03, proceeds
at maturity,
$1,414,544 (a) .... 1,414,501 1,414,501
5,000,000 Warburg Dillon Reed,
1.090%, dated 06/30/03,
due 07/01/03, proceeds
at maturity,
$5,000,151 (b) .... 5,000,000 5,000,000
----------- -----------
TOTAL REPURCHASE
AGREEMENTS ........ 6,414,501 6,414,501
----------- -----------
TOTAL INVESTMENTS --
100.3% ............$76,768,400 76,768,630
===========
OTHER ASSETS AND
LIABILITIES (NET) -- (0.3)% ... (240,379)
-----------
NET ASSETS -- 100.0% ............ $76,528,251
===========
MARKET
SHARES COMMON STOCKS PROCEEDS VALUE
------ ------------- -------- ------
SECURITIES SOLD SHORT
1,000 Carnival Corp. ......$ (25,859) $ (32,510)
3,000 Diamonds Trust ...... (255,343) (269,730)
5,000 Ford Motor Co. ...... (57,225) (54,950)
1,000 Gap Inc. (The) ...... (16,949) (18,760)
5,000 Harley-Davidson Inc. (207,760) (199,300)
2,000 Home Depot Inc. ..... (57,782) (66,240)
1,000 La-Z-Boy Inc. ....... (21,459) (22,380)
1,000 McDonald's Corp. .... (17,099) (22,060)
1,000 NIKE, Inc., Cl. B ... (53,092) (53,490)
2,000 Polaris
Industries Inc. ... (112,595) (122,800)
1,000 Research in
Motion Ltd.+ ...... (18,969) (21,610)
2,000 Sherwin-Williams Co. (55,217) (53,760)
13,000 Standard & Poor's
Depository Receipts (1,297,979) (1,269,190)
4,000 Starbucks Corp.+ .... (96,751) (98,080)
30,000 Tiffany & Co. ....... (710,224) (980,400)
4,000 Toro Co. ............ (128,296) (159,000)
----------- -----------
TOTAL SECURITIES
SOLD SHORT ........$(3,132,600) $(3,444,260)
=========== ===========
- ----------------
For Federal tax purposes:
Aggregate cost ...................$76,768,400
===========
Gross unrealized appreciation ....$ 1,070
Gross unrealized depreciation .... (840)
-----------
Net unrealized appreciation/
(depreciation) ................$ 230
===========
- ----------------
(a) Collateralized by U.S. Treasury Bond, 7.625%, due 02/15/25, market value
$1,424,375.
(b) Collateralized by U.S. Treasury Bond, 1.75%, due 12/31/04, market value
$5,044,531.
(c) At June 30, 2003, $18,000,000 of the principal amount was pledged as
collateral for short sale securities.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
See accompanying notes to financial statements.
2
THE GABELLI MATHERS FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSETS:
Investments, at value (cost $70,353,899) .. $ 70,354,129
Repurchase Agreements, at value
(cost $6,414,501) ....................... 6,414,501
Cash ...................................... 41,733
Deposit at Brokers ........................ 298,809
Dividends and interest receivable ......... 744
Receivable for investments sold ........... 3,132,600
Other assets .............................. 3,501
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TOTAL ASSETS .............................. 80,246,017
-------------
LIABILITIES:
Securities sold short (proceeds $3,132,600) 3,444,260
Payable for investments purchased ......... 108,475
Dividends payable on securities sold short 7,153
Payable for investment advisory fees ...... 63,052
Payable for distribution fees ............. 15,763
Other accrued expenses and liabilities .... 79,063
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TOTAL LIABILITIES ......................... 3,717,766
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NET ASSETS applicable to 7,132,837
shares outstanding ...................... $ 76,528,251
=============
NET ASSETS CONSIST OF:
Shares of beneficial interest, at par value $ 7,132,837
Additional paid-in capital ................ 117,251,011
Accumulated net investment income ......... (174,689)
Accumulated net realized gain/(loss)
on investments .......................... (47,369,478)
Net unrealized appreciation/(depreciation)
on securities sold short ................ (311,660)
Net unrealized appreciation/(depreciation)
on investments .......................... 230
-------------
NET ASSETS ................................ $ 76,528,251
=============
NET ASSET VALUE, offering and redemptions price
per share (76,528,251 (DIVIDE) 7,132,837
shares outstanding;100,000,000 shares
authorized of $1.00 par value) $10.73
======
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends ................................................... $ 808
Interest .................................................... 440,000
Other Income ................................................ 8,038
---------
TOTAL INVESTMENT INCOME ..................................... 448,846
---------
EXPENSES:
Investment advisory fees .................................... 388,342
Distribution fees ........................................... 97,086
Trustees' fees .............................................. 27,019
Shareholder services fees ................................... 18,897
Custodian fees .............................................. 18,308
Shareholder communications expenses ......................... 16,030
Legal and audit fees ........................................ 13,862
Registration fees ........................................... 11,032
Dividends on securities sold short .......................... 11,248
Miscellaneous expenses ...................................... 21,711
---------
TOTAL EXPENSES .............................................. 623,535
---------
NET INVESTMENT LOSS ......................................... (174,689)
---------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON
INVESTMENTS AND SECURITIES SOLD SHORT:
Net realized gain/(loss) on investments ..................... (134,330)
Net realized gain/(loss) on securities sold short ........... 111,582
Net change in unrealized appreciation/
(depreciation) on investments and securities sold short ... (420,111)
---------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON
INVESTMENTS AND SECURITIES SOLD SHORT ..................... (442,859)
---------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ................................. $(617,548)
=========
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS ENDED
JUNE 30, 2003 YEAR ENDED
(UNAUDITED) DECEMBER 31, 2002
---------------- -----------------
OPERATIONS:
Net investment income/(loss) .................................. $ (174,689) $ (1,706)
Net realized gain/(loss) on investments ....................... (134,330) (12,725,118)
Net realized gain/(loss) on securities sold short ............. 111,582 285,919
Net change in unrealized appreciation/(depreciation) on
investments and securities sold short ....................... (420,111) 1,274,536
------------ ------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (617,548) (11,166,369)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income ......................................... -- --
------------ ------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ........................... -- --
------------ ------------
SHARE TRANSACTIONS:
Net increase/(decrease) in net assets from shares
of beneficial interest transactions ........................ (3,681,380) (5,899,570)
------------ ------------
NET DECREASE IN NET ASSETS .................................... (4,298,928) (17,065,939)
------------ ------------
NET ASSETS:
Beginning of period ........................................... 80,827,179 97,893,118
------------ ------------
End of period ................................................. $ 76,528,251 $ 80,827,179
============ ============
See accompanying notes to financial statements.
3
THE GABELLI MATHERS FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. ORGANIZATION. The Gabelli Mathers Fund (the "Fund") was organized on June 17,
1999 as a Delaware business trust. The Fund commenced investment operations on
October 1, 1999 as the successor to the Mathers Fund, Inc. (the "Mathers Fund")
which was organized on March 31, 1965 as a Maryland corporation. The Mathers
Fund commenced investment operations on August 19, 1965. The Fund is a
diversified, open-end management investment company registered under the
Investment Company Act of 1940, as amended (the "1940 Act"). The Fund's primary
objective is long-term capital appreciation.
2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements in
accordance with accounting principles generally accepted in the United States
requires management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results could differ
from those estimates. The following is a summary of significant accounting
policies followed by the Fund in the preparation of its financial statements.
SECURITY VALUATION. Portfolio securities listed or traded on a nationally
recognized securities exchange or traded in the U.S. over-the-counter market for
which market quotations are readily available are valued at the last quoted sale
price or a market's official closing price as of the close of business on the
day the securities are being valued. If there were no sales that day, the
security is valued at the average of the closing bid and asked prices or, if
there were no asked prices quoted on that day, then the security is valued at
the closing bid price on that day. If no bid or asked prices are quoted on such
day, the security is valued at the most recently available price or, if the
Board of Trustees so determines, by such other method as the Board of Trustees
shall determine in good faith, to reflect its fair market value. Portfolio
securities traded on more than one national securities exchange or market are
valued according to the broadest and most representative market, as determined
by Gabelli Funds, LLC (the "Adviser"). Portfolio securities primarily traded on
foreign markets are generally valued at the preceding closing values of such
securities on their respective exchanges. Securities and assets for which market
quotations are not readily available are valued at their fair value as
determined in good faith under procedures established by and under the general
supervision of the Board of Trustees. Short term debt securities with remaining
maturities of 60 days or less are valued at amortized cost, unless the Board of
Trustees determines such does not reflect the securities fair value, in which
case these securities will be valued at their fair value as determined by the
Board of Trustees. Debt instruments having a maturity greater than 60 days for
which market quotations are readily available are valued at the latest average
of the bid and asked prices. If there were no asked prices quoted on such day,
the security is valued using the closing bid price. Options are valued at the
last sale price on the exchange on which they are listed. If no sales of such
options have taken place that day, they will be valued at the mean between their
closing bid and asked prices.
REPURCHASE AGREEMENTS. The Fund may enter into repurchase agreements with
primary government securities dealers recognized by the Federal Reserve Board,
with member banks of the Federal Reserve System or with other brokers or dealers
that meet credit guidelines established by the Adviser and reviewed by the Board
of Trustees. Under the terms of a typical repurchase agreement, the Fund takes
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Fund to resell, the obligation at an agreed-upon
price and time, thereby determining the yield during the Fund's holding period.
The Fund will always receive and maintain securities as collateral whose market
value, including accrued interest, will be at least equal to 102% of the dollar
amount invested by the Fund in each agreement. The Fund
4
THE GABELLI MATHERS FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
- --------------------------------------------------------------------------------
will make payment for such securities only upon physical delivery or upon
evidence of book entry transfer of the collateral to the account of the
custodian. To the extent that any repurchase transaction exceeds one business
day, the value of the collateral is marked-to-market on a daily basis to
maintain the adequacy of the collateral. If the seller defaults and the value of
the collateral declines or if bankruptcy proceedings are commenced with respect
to the seller of the security, realization of the collateral by the Fund may be
delayed or limited.
FUTURES CONTRACTS. The Fund may engage in futures contracts for the purpose of
hedging against changes in the value of its portfolio securities and in the
value of securities it intends to purchase. Upon entering into a futures
contract, the Fund is required to deposit with the broker an amount of cash or
cash equivalents equal to a certain percentage of the contract amount. This is
known as the "initial margin." Subsequent payments ("variation margin") are made
or received by the Fund each day, depending on the daily fluctuation of the
value of the contract. The daily changes in the contract are included in
unrealized gains or losses. The Fund recognizes a realized gain or loss when the
contract is closed. At June 30, 2003, there were no open futures contracts.
There are several risks in connection with the use of futures contracts as a
hedging device. The change in value of futures contracts primarily corresponds
with the value of their underlying instruments, which may not correlate with the
change in value of the hedged investments. In addition, there is the risk that
the Fund may not be able to enter into a closing transaction because of an
illiquid secondary market.
SECURITIES SOLD SHORT. A short sale involves selling a security which the Fund
does not own. The proceeds received for 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 the 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 price of the security sold short. Dividends on
short sales are recorded as an expense by the Fund on the ex-dividend date and
interest expense is recorded on the accrual basis. Securities sold short at June
30, 2003 are reflected in the Portfolio of Investments.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are
accounted for on the trade date with realized gain or loss on investments
determined by using the identified cost method. Interest income (including
amortization of premium and accretion of discount) is recorded as earned.
Dividend income is recorded on the ex-dividend date.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders are recorded on the ex-dividend date. Income distributions and
capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles in
the United States. These differences are primarily due to differing treatments
of income and gains on various investment securities held by the Fund, timing
differences and differing characterization of distributions made by the Fund.
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. As a result, a Federal income tax provision is not required.
5
THE GABELLI MATHERS FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
- --------------------------------------------------------------------------------
The Fund has a net capital loss carryforward for Federal income tax purposes at
December 31, 2002 of $47,346,730. This capital loss carryforward is available to
reduce future distributions of net capital gains to shareholders. $4,819,701 of
the loss carryforward is available through 2003; $22,226,886 is available
through 2004; $7,869,968 is available through 2006; and $12,430,175 is available
through 2010.
3. INVESTMENT ADVISORY AGREEMENT. The Fund has entered into an investment
advisory agreement (the "Advisory Agreement") with the Adviser which provides
that the Fund will pay the Adviser a fee, computed daily and paid monthly, at
the annual rate of 1.00% of the value of the Fund's average 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 Trustees of the Fund who are its affiliates.
4. DISTRIBUTION PLAN. On October 1, 1999, the Fund's Board of Trustees adopted a
distribution plan (the "Plan") pursuant to Rule 12b-1 under the 1940 Act. For
the six months ended June 30, 2003, the Fund incurred distribution costs payable
to Gabelli & Company, Inc., an affiliate of the Adviser, of $97,086, or 0.25% of
average daily net assets, the annual limitation under the Plan. Such payments
are accrued daily and paid monthly.
5. PORTFOLIO SECURITIES. Purchases and proceeds from the sales of securities for
the six months ended June 30, 2003, other than short term securities, aggregated
$8,773,466 and $8,734,147, respectively.
6. TRANSACTIONS WITH AFFILIATES. During the six months ended June 30, 2003, the
Fund paid brokerage commissions of $5,805 to Gabelli & Company, Inc.
The cost of calculating the Fund's net asset value per share is a Fund expense
pursuant to the Advisory Agreement between the Fund and the Adviser. For the six
months ended June 30, 2003, the Gabelli Mathers Fund reimbursed the Adviser
$17,400 in connection with the cost of computing the Fund's net asset value.
7. SHARES OF BENEFICIAL INTEREST. Transactions in shares of beneficial interest
were as follows:
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2003 DECEMBER 31, 2002
-------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
-------- ----------- ---------- ------------
Shares sold .......................................... 215,617 $ 2,323,317 729,693 $ 8,237,339
Shares issued upon reinvestment of dividends ......... -- -- -- --
Shares redeemed ...................................... (557,226) (6,004,697) (1,246,765) (14,136,909)
-------- ----------- ---------- ------------
Net decrease ..................................... (341,609) $(3,681,380) (517,072) $ (5,899,570)
======== =========== ========== ============
6
THE GABELLI MATHERS FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
- --------------------------------------------------------------------------------
8. FINANCIAL HIGHLIGHTS. Selected data for a share of beneficial interest
outstanding throughout each period:
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2003 -----------------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999(A) 1998
---------------- -------- -------- ------- ------- ------
OPERATING PERFORMANCE:
Net asset value, beginning of period .... $ 10.81 $ 12.25 $ 12.05 $ 11.94 $ 11.73 $ 13.06
------- ------- ------- ------- ------- -------
Net investment income/(loss) ............ (0.02) (0.00)* 0.30 0.49 0.46 0.58
Net realized and unrealized
gain/(loss) on investments ............ (0.06) (1.44) 0.21 0.11 0.21 (1.26)
------- ------- ------- ------- ------- -------
Total from investment operations ........ (0.08) (1.44) 0.51 0.60 0.67 (0.68)
------- ------- ------- ------- ------- -------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income ................... -- -- (0.31) (0.49) (0.46) (0.65)
------- ------- ------- ------- ------- -------
Total distributions ..................... -- -- (0.31) (0.49) (0.46) (0.65)
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD .......... $ 10.73 $ 10.81 $ 12.25 $ 12.05 $ 11.94 $ 11.73
======= ======= ======= ======= ======= =======
Total return+ ........................... (0.74)% (11.76)% 4.25% 5.02% 5.73% (5.21)%
======= ======= ======= ======= ======= =======
RATIOS TO AVERAGE NET ASSETS
AND SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) .... $76,528 $80,827 $97,893 $99,855 $104,693 $108,548
Ratio of net investment income/(loss)
to average net assets ................. (0.45)%(c) (0.00)% 2.45% 3.79% 3.50% 4.56%
Ratio of operating expenses
to average net assets ................. 1.61%(b)(c) 1.63%(b) 1.35%(b) 1.34%(b) 1.24%(b) 1.16%(b)
Portfolio turnover rate ................. 254% 776% 1013% 977% 922% 67%
- --------------------------------
+ Total return represents aggregate total return of a hypothetical $1,000
investment at the beginning of the period and sold at the end of the period
including reinvestment of dividends. Total return for the period of less
than one year is not annualized.
(a) Gabelli Funds, LLC became the sole investment adviser of the Fund on October
1, 1999.
(b) The Fund incurred dividend expense on securities sold short for the six
months ended June 30, 2003 and the years ended December 31, 2002, 2001,
2000, 1999 and 1998. If the dividend expense had not been incurred, the
ratios of operating expenses to average net assets would have been 1.58%,
1.63%, 1.33%, 1.31%, 1.24%, and 1.12%, respectively.
(c) Annualized.
* Amount is less than $0.005 per share.
See accompanying notes to financial statements.
7
THE GABELLI MATHERS FUND
One Corporate Center
Rye, New York 10580-1422
800-GABELLI
800-422-3554
FAX: 914-921-5118
WEBSITE: WWW.GABELLI.COM
E-MAIL: INFO@GABELLI.COM
Net Asset Value available daily by calling
800-GABELLI after 6:00 P.M.
BOARD OF TRUSTEES
Mario J. Gabelli, CFA Anthony R. Pustorino
CHAIRMAN AND CHIEF CERTIFIED PUBLIC ACCOUNTANT
INVESTMENT OFFICER PROFESSOR, PACE UNIVERSITY
GABELLI ASSET MANAGEMENT INC.
E. Val Cerutti Werner J. Roeder, MD
CHIEF EXECUTIVE OFFICER VICE PRESIDENT/MEDICAL AFFAIRS
CERUTTI CONSULTANTS, INC. LAWRENCE HOSPITAL CENTER
Anthony J. Colavita Henry G. Van der Eb, CFA
ATTORNEY-AT-LAW PRESIDENT AND CHIEF
ANTHONY J. COLAVITA, P.C. EXECUTIVE OFFICER
THE GABELLI MATHERS FUND
Vincent D. Enright Anthonie C. van Ekris
FORMER SENIOR VICE PRESIDENT MANAGING DIRECTOR
AND CHIEF FINANCIAL OFFICER BALMAC INTERNATIONAL, INC.
KEYSPAN ENERGY CORP.
Karl Otto Pohl
FORMER PRESIDENT
DEUTSCHE BUNDESBANK
OFFICERS AND PORTFOLIO MANAGER
Henry G. Van der Eb, CFA Anne E. Morrissy, CFA
PRESIDENT AND EXECUTIVE VICE PRESIDENT
PORTFOLIO MANAGER
Bruce N. Alpert James E. McKee
EXECUTIVE VICE PRESIDENT VICE PRESIDENT
AND TREASURER AND SECRETARY
Heidi M. Stubner Edith L. Cook
VICE PRESIDENT VICE PRESIDENT
DISTRIBUTOR
Gabelli & Company, Inc.
CUSTODIAN, TRANSFER AGENT AND DIVIDEND AGENT
State Street Bank and Trust Company
LEGAL COUNSEL
Skadden, Arps, Slate, Meagher & Flom LLP
- --------------------------------------------------------------------------------
This report is submitted for the general information of the shareholders of The
Gabelli Mathers Fund. It is not authorized for distribution to prospective
investors unless preceded or accompanied by an effective prospectus.
- --------------------------------------------------------------------------------
GAB1726Q203SR
[GRAPHIC OMITTED]
PICTURE OF MARIO GABELLI
THE
GABELLI
MATHERS
FUND
SEMI-ANNUAL REPORT
JUNE 30, 2003
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of the report that includes the disclosure
required by this paragraph, based on their evaluation of these controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act
(17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17
CFR 270.30a-3(d)) that occurred during the registrant's last fiscal
half-year (the registrant's second fiscal half-year in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial
reporting.
ITEM 10. EXHIBITS.
(a)(1) Not applicable.
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of
2002 are attached hereto.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of
2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) THE GABELLI MATHERS FUND
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By (Signature and Title)* /S/ BRUCE N. ALPERT
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Bruce N. Alpert, Principal Executive Officer
Date 09/03/03
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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
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Bruce N. Alpert, Principal Executive Officer
Date 09/03/03
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By (Signature and Title)* /S/ GUS A. COUTSOUROS
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Gus A. Coutsouros, Principal Financial Officer
Date 09/03/03
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* Print the name and title of each signing officer under his or her signature.