UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05848
The Gabelli Value Fund Inc.
(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
(Name and address of agent for service)
registrant's telephone number, including area code: 1-800-422-3554
Date of fiscal year end: December 31
Date of reporting period: June 30, 2008
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 100 F Street, NE,
Washington, DC 20549. The OMB has reviewed this collection of information under
the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
The Report to Shareholders is attached herewith.
THE GABELLI VALUE FUND INC.
SEMI-ANNUAL REPORT
JUNE 30, 2008
TO OUR SHAREHOLDERS,
During the second quarter of 2008, The Gabelli Value Fund Inc.'s (the
"Fund") net asset value ("NAV") per share declined 1.7%, while the Standard &
Poor's ("S&P") 500 Index was down 2.7% and the Dow Jones Industrial Average
dropped 6.8%. For the six month period ended June 30, 2008, the Fund was down
14.5% versus decreases of 11.9% and 13.3% for the S&P 500 Index and the
Dow Jones Industrial Average, respectively.
Enclosed are the financial statements and the investment portfolio as of
June 30, 2008.
COMPARATIVE RESULTS
AVERAGE ANNUAL RETURNS THROUGH JUNE 30, 2008 (a)
Since
Year to Inception
Quarter Date 1 Year 3 Year 5 Year 10 Year 15 Year (9/29/89)
---------- ----------- ----------- --------- --------- ---------- ---------- ----------
GABELLI VALUE FUND CLASS A ..... (1.71)% (14.54)% (18.71)% 2.85% 7.47% 6.11% 11.34% 11.26%
(7.36)(b) (19.46)(b) (23.38)(b) 0.84(b) 6.21(b) 5.49(b) 10.90(b) 10.91(b)
S&P 500 Index .................. (2.72) (11.90) (13.11) 4.40 7.58 2.88 9.21 9.47
Dow Jones Industrial Average ... (6.84) (13.29) (13.27) 5.81 7.23 4.54 10.48 10.59
Nasdaq Composite Index ......... 0.61 (13.55) (11.92) 3.69 7.16 1.93 8.19 8.78
Class B ........................ (1.94) (14.88) (19.29) 2.09 6.68 5.45 10.88 10.89
(6.84)(c) (19.13)(c) (23.32)(c) 1.12(c) 6.37(c) 5.45 10.88 10.89
Class C ........................ (1.86) (14.86) (19.26) 2.12 6.69 5.48 10.90 10.91
(2.84)(d) (15.71)(d) (20.06)(d) 2.12 6.69 5.48 10.90 10.91
Class I ........................ (1.64) (14.42) (18.59) 2.90 7.50 6.13 11.35 11.27
IN THE CURRENT PROSPECTUS, THE EXPENSE RATIOS FOR CLASS A, B, C, AND I SHARES
ARE 1.39%, 2.14%, 2.14%, AND 1.14%, RESPECTIVELY. CLASS I SHARES HAVE NO SALES
CHARGE. THE MAXIMUM SALES CHARGE FOR CLASS A, B, AND C SHARES IS 5.75%, 5.00%,
AND 1.00%, RESPECTIVELY.
- ----------
(a) RETURNS REPRESENT PAST PERFORMANCE AND DO NOT GUARANTEE FUTURE RESULTS.
Total returns and average annual returns reflect changes in share price
and reinvestment of distributions and are net of expenses. Investment
returns and the principal value of an investment will fluctuate. When
shares are redeemed, they may be worth more or less than their original
cost. Performance returns for periods less than one year are not
annualized. Current performance may be lower or higher than the
performance data presented. Visit www.gabelli.com for performance
information as of the most recent month end. INVESTORS SHOULD CAREFULLY
CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES, AND EXPENSES OF THE
FUND BEFORE INVESTING. THE PROSPECTUS CONTAINS MORE INFORMATION ABOUT THIS
AND OTHER MATTERS AND SHOULD BE READ CAREFULLY BEFORE INVESTING.
The Class A Share NAVs per share are used to calculate performance for the
periods prior to the issuance of Class B Shares and Class C Shares on
March 15, 2000 and the Class I Shares on January 11, 2008. The actual
performance of the Class B Shares and Class C Shares would have been lower
due to the additional expenses associated with these classes of shares.
The actual performance of the Class I Shares would have been higher due to
lower expenses related to this class of shares. The S&P 500 Index is an
unmanaged indicator of stock market performance. The Dow Jones Industrial
Average is an unmanaged index of 30 large industrial stocks and the Nasdaq
Composite Index is unmanaged indicators of stock market performance.
Dividends are considered reinvested. You cannot invest directly in an
index.
(b) The maximum sales charge on Class A Shares is 5.75%.
(c) Performance results include the deferred sales charges for the Class B
Shares upon redemption at the end of the quarter, year to date, one year,
three year, and five year periods of 5%, 5%, 5%, 3%, and 2%, respectively,
of the Fund's NAV per share at the time of purchase or sale, whichever is
lower. Class B Shares are not available for new purchases.
(d) Performance results include the deferred sales charges for the Class C
Shares upon redemption at the end of the quarter, year to date, and one
year periods of 1% of the Fund's NAV per share at the time of purchase or
sale, whichever is lower.
We have separated the portfolio manager's commentary from the financial
statements and investment portfolio due to corporate governance regulations
stipulated by the Sarbanes-Oxley Act of 2002. We have done this to ensure that
the content of the portfolio manager's commentary is unrestricted. The financial
statements and investment portfolio are mailed separately from the commentary.
Both the commentary and the financial statements, including the portfolio of
investments, will be available on our website at www.gabelli.com/funds.
THE GABELLI VALUE FUND INC.
DISCLOSURE OF FUND EXPENSES (UNAUDITED)
For the Six Month Period from January 1, 2008 through June 30, 2008
EXPENSE TABLE
We believe it is important for you to understand the impact of fees and expenses
regarding your investment. All mutual funds have operating expenses. As a
shareholder of a fund, you incur ongoing costs, which include costs for
portfolio management, administrative services, and shareholder reports (like
this one), among others. Operating expenses, which are deducted from a fund's
gross income, directly reduce the investment return of a fund. When a fund's
expenses are expressed as a percentage of its average net assets, this figure is
known as the expense ratio. The following examples are intended to help you
understand the ongoing costs (in dollars) of investing in your Fund and to
compare these costs with those of other mutual funds. The examples are based on
an investment of $1,000 made at the beginning of the period shown and held for
the entire period.
The Expense Table below illustrates your Fund's costs in two ways:
ACTUAL FUND RETURN: This section provides information about actual account
values and actual expenses. You may use this section to help you to estimate the
actual expenses that you paid over the period after any fee waivers and expense
reimbursements. The "Ending Account Value" shown is derived from the Fund's
ACTUAL return during the past six months, and the "Expenses Paid During Period"
shows the dollar amount that would have been paid by an investor who started
with $1,000 in the Fund. You may use this information, together with the amount
you invested, to estimate the expenses that you paid over the period.
To do so, simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
given for your Fund under the heading "Expenses Paid During Period" to estimate
the expenses you paid during this period.
HYPOTHETICAL 5% RETURN: This section provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio. It assumes a hypothetical annualized return of 5% before expenses during
the period shown. In this case - because the hypothetical return used is NOT the
Fund's actual return - the results do not apply to your investment and you
cannot use the hypothetical account value and expense to estimate the actual
ending account balance or expenses you paid for the period. This example is
useful in making comparisons of the ongoing costs of investing in the Fund and
other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs such as sales
charges (loads), redemption fees, or exchange fees, if any, which are described
in the Prospectus. If these costs were applied to your account, your costs would
be higher. Therefore, the 5% hypothetical return is useful in comparing ongoing
costs only, and will not help you determine the relative total costs of owning
different funds.
Beginning Ending Annualized Expenses
Account Value Account Value Expense Paid During
01/01/08 06/30/08 Ratio Period*
--------------- --------------- ------------ -------------
THE GABELLI VALUE FUND INC.
ACTUAL FUND RETURN
Class A $ 1,000.00 $ 854.60 1.42% $ 6.55
Class B $ 1,000.00 $ 851.20 2.17% $ 9.99
Class C $ 1,000.00 $ 851.40 2.17% $ 9.99
Class I** $ 1,000.00 $ 855.80 1.17% $ 5.10
HYPOTHETICAL 5% RETURN
Class A $ 1,000.00 $ 1,017.80 1.42% $ 7.12
Class B $ 1,000.00 $ 1,014.07 2.17% $ 10.87
Class C $ 1,000.00 $ 1,014.07 2.17% $ 10.87
Class I $ 1,000.00 $ 1,019.05 1.17% $ 5.87
- ----------
* Expenses are equal to the Fund's annualized expense ratio for the last six
months multiplied by the average account value over the period, multiplied
by the number of days in the most recent fiscal half-year, then divided by
366.
** Class I Shares were first issued on January 11, 2008. Account values and
expense ratios for the Actual Fund Return are calculated from January
11, 2008 through June 30, 2008.
2
SUMMARY OF PORTFOLIO HOLDINGS (UNAUDITED)
The following table presents portfolio holdings as a percent of net assets as of
June 30, 2008:
THE GABELLI VALUE FUND INC.
Entertainment .............................. 15.1%
Cable and Satellite ........................ 11.4%
Metals and Mining .......................... 7.5%
Food and Beverage .......................... 7.0%
Telecommunications ......................... 6.5%
Diversified Industrial ..................... 5.8%
Financial Services ......................... 4.8%
Equipment and Supplies ..................... 4.8%
Consumer Products .......................... 4.7%
Publishing ................................. 4.5%
Environmental Services ..................... 3.6%
Broadcasting ............................... 3.5%
Energy and Utilities ....................... 3.1%
Electronics ................................ 2.8%
Communications Equipment ................... 1.7%
Automotive: Parts and Accessories .......... 1.6%
Hotels and Gaming .......................... 1.4%
Machinery .................................. 1.3%
Consumer Services .......................... 1.3%
Specialty Chemicals ........................ 1.2%
Business Services .......................... 1.2%
Aerospace .................................. 1.1%
Retail ..................................... 0.9%
Aviation: Parts and Services ............... 0.8%
Health Care ................................ 0.7%
Real Estate ................................ 0.6%
Computer Software and Services ............. 0.5%
Agriculture ................................ 0.4%
Wireless Communications .................... 0.3%
Automotive ................................. 0.1%
Manufactured Housing ....................... 0.0%
Transportation ............................. 0.0%
Other Assets and Liabilities (Net) ......... (0.2)%
------
100.0%
======
The Fund files a complete schedule of portfolio holdings with the Securities and
Exchange Commission (the "SEC") for the first and third quarters of each fiscal
year on Form N-Q, the last of which was filed for the quarter ended March 31,
2008. Shareholders may obtain this information at www.gabelli.com or by calling
the Fund at 800-GABELLI (800-422-3554).The Fund's Form N-Q is available on the
SEC's website at www.sec.gov and may also be reviewed and copied at the SEC's
Public Reference Room in Washington, DC. Information on the operation of the
Public Reference Room may be obtained by calling 1-800-SEC-0330.
PROXY VOTING
The Fund files Form N-PX with its complete proxy voting record for the 12 months
ended June 30th, no later than August 31st of each year. A description of the
Fund's proxy voting policies, procedures, and how the Fund voted proxies
relating to portfolio securities is available without charge, upon request, by
(i) calling 800-GABELLI (800-422-3554); (ii) writing to The Gabelli Funds at One
Corporate Center, Rye, NY 10580-1422; or (iii) visiting the SEC's website at
www.sec.gov.
3
THE GABELLI VALUE FUND INC.
SCHEDULE OF INVESTMENTS -- JUNE 30, 2008 (UNAUDITED)
MARKET
SHARES COST VALUE
- ------------- ------------- -------------
COMMON STOCKS -- 100.1%
AEROSPACE -- 1.1%
1,000 Lockheed Martin Corp. .............................. $ 25,800 $ 98,660
1,000,000 Rolls-Royce Group plc+ ............................. 7,007,796 6,802,110
89,600,000 Rolls-Royce Group plc, Cl. B ....................... 177,966 178,468
------------- -------------
7,211,562 7,079,238
------------- -------------
AGRICULTURE -- 0.4%
65,000 Archer-Daniels-Midland Co. ......................... 1,643,645 2,193,750
500 The Mosaic Co.+ .................................... 8,345 72,350
------------- -------------
1,651,990 2,266,100
------------- -------------
AUTOMOTIVE -- 0.1%
10,000 Navistar International Corp.+ ...................... 309,727 658,200
------------- -------------
AUTOMOTIVE: PARTS AND ACCESSORIES -- 1.6%
2,000 BERU AG ............................................ 218,785 235,539
38,000 China Yuchai International Ltd. .................... 300,576 378,100
250,000 Genuine Parts Co. .................................. 6,781,559 9,920,000
16,000 Proliance International Inc.+ ...................... 70,925 15,200
------------- -------------
7,371,845 10,548,839
------------- -------------
AVIATION: PARTS AND SERVICES -- 0.8%
43,000 Curtiss-Wright Corp. ............................... 764,822 1,923,820
340,000 GenCorp Inc.+ ...................................... 3,135,471 2,434,400
280,000 The Fairchild Corp., Cl. A+ ........................ 1,037,006 590,800
------------- -------------
4,937,299 4,949,020
------------- -------------
BROADCASTING -- 3.5%
1,024,000 CBS Corp., Cl. A ................................... 19,458,256 19,947,520
135,000 Gray Television Inc. ............................... 1,453,712 387,450
182,000 Liberty Media Corp. - Capital, Cl. A+ .............. 1,832,079 2,620,800
------------- -------------
22,744,047 22,955,770
------------- -------------
BUSINESS SERVICES -- 1.2%
13,000 Akamai Technologies Inc.+ .......................... 431,568 452,270
40,000 ChoicePoint Inc.+ .................................. 1,721,076 1,928,000
127,000 Intermec Inc.+ ..................................... 2,829,868 2,677,160
35,700 Nashua Corp.+ ...................................... 295,578 357,000
32,500 The Brink's Co. .................................... 1,885,951 2,126,150
------------- -------------
7,164,041 7,540,580
------------- -------------
CABLE AND SATELLITE -- 11.4%
130,000 Adelphia Communications Corp., Cl. A+ (a) .......... 91,925 0
130,000 Adelphia Communications Corp., Cl. A, Escrow+ (a) .. 0 0
130,000 Adelphia Recovery Trust+ (a) ....................... 0 0
1,730,000 Cablevision Systems Corp., Cl. A+ .................. 7,066,676 39,098,000
42,000 Comcast Corp., Cl. A, Special ...................... 925,070 787,920
150,000 DISH Network Corp., Cl. A+ ......................... 3,985,701 4,392,000
30,000 EchoStar Corp., Cl. A+ ............................. 874,910 936,600
240,000 Liberty Global Inc., Cl. A+ ........................ 4,255,372 7,543,200
365,000 Rogers Communications Inc., Cl. B .................. 1,160,709 14,110,900
280,000 The DIRECTV Group Inc.+ ............................ 5,030,889 7,254,800
------------- -------------
23,391,252 74,123,420
------------- -------------
COMMUNICATIONS EQUIPMENT -- 1.7%
70,000 Alcatel-Lucent, ADR+ ............................... 764,285 422,800
407,000 Corning Inc......................................... 3,748,367 9,381,350
30,000 Motorola Inc. ...................................... 210,940 220,200
130,000 Nortel Networks Corp.+ ............................. 2,827,572 1,068,600
------------- -------------
7,551,164 11,092,950
------------- -------------
COMPUTER SOFTWARE AND SERVICES -- 0.5%
8,000 Alibaba.com Ltd.+ .................................. 14,075 11,286
60,000 Metavante Technologies Inc.+ ....................... 1,413,592 1,357,200
90,000 Yahoo! Inc.+ ....................................... 2,590,551 1,859,400
------------- -------------
4,018,218 3,227,886
------------- -------------
CONSUMER PRODUCTS -- 4.7%
74,000 Energizer Holdings Inc.+ ........................... 1,736,294 5,408,660
500 Givaudan SA ........................................ 135,440 446,870
125,000 Hartmarx Corp.+ .................................... 564,094 271,250
3,000 National Presto Industries Inc. .................... 89,483 192,540
136,000 Pactiv Corp.+ ...................................... 1,298,598 2,887,280
1,050,000 Swedish Match AB ................................... 14,137,612 21,531,935
3,000 Wolverine World Wide Inc. .......................... 29,203 80,010
------------- -------------
17,990,724 30,818,545
------------- -------------
CONSUMER SERVICES -- 1.3%
65,000 IAC/InterActiveCorp+ ............................... 1,782,568 1,253,200
300,000 Liberty Media Corp. - Interactive, Cl. A+ .......... 5,516,811 4,428,000
180,000 Rollins Inc. ....................................... 858,555 2,667,600
------------- -------------
8,157,934 8,348,800
------------- -------------
DIVERSIFIED INDUSTRIAL -- 5.8%
43,000 Ampco-Pittsburgh Corp. ............................. 215,015 1,912,640
24,000 Cooper Industries Ltd., Cl. A ...................... 803,600 948,000
182,000 Crane Co. .......................................... 4,792,658 7,012,460
60,000 Griffon Corp.+ ..................................... 1,010,241 525,600
315,000 Honeywell International Inc. ....................... 9,287,382 15,838,200
121,000 ITT Corp. .......................................... 4,997,798 7,662,930
208,000 Katy Industries Inc.+ .............................. 1,546,689 405,600
1,000 Pentair Inc. ....................................... 31,908 35,020
92,000 Tyco International Ltd. ............................ 4,220,889 3,683,680
------------- -------------
26,906,180 38,024,130
------------- -------------
See accompanying notes to financial statements.
4
THE GABELLI VALUE FUND INC.
SCHEDULE OF INVESTMENTS (CONTINUED) -- JUNE 30, 2008 (UNAUDITED)
MARKET
SHARES COST VALUE
- ------------- ------------- -------------
COMMON STOCKS (CONTINUED)
ELECTRONICS -- 2.8%
200,000 LSI Corp.+ ......................................... $ 1,178,577 $ 1,228,000
217,000 Texas Instruments Inc. ............................. 5,465,827 6,110,720
4,000 Thermo Fisher Scientific Inc.+ ..................... 92,199 222,920
215,000 Thomas & Betts Corp.+ .............................. 4,057,129 8,137,750
70,000 Tyco Electronics Ltd. .............................. 2,487,143 2,507,400
------------- -------------
13,280,875 18,206,790
------------- -------------
ENERGY AND UTILITIES -- 3.0%
5,000 Allegheny Energy Inc. .............................. 61,743 250,550
12,000 Chevron Corp. ...................................... 723,710 1,189,560
150,500 ConocoPhillips ..................................... 4,107,004 14,205,695
5,420 Mirant Corp.+ ...................................... 25,619 212,193
200,000 Mirant Corp., Escrow+ (a) .......................... 0 0
100,000 Northeast Utilities ................................ 1,922,987 2,553,000
10,000 Puget Energy Inc. .................................. 275,000 239,900
40,000 Southwest Gas Corp. ................................ 959,676 1,189,200
------------- -------------
8,075,739 19,840,098
------------- -------------
ENTERTAINMENT -- 15.1%
8,570 Chestnut Hill Ventures+ (a) ........................ 233,241 241,245
397,000 Discovery Holding Co., Cl. A+ ...................... 5,188,432 8,718,120
60,000 Dover Motorsports Inc. ............................. 309,314 305,400
302,000 Grupo Televisa SA, ADR ............................. 2,775,988 7,133,240
740,000 Liberty Media Corp. - Entertainment, Cl. A+ ........ 9,658,132 17,930,200
106,000 Macrovision Solutions Corp.+ ....................... 1,914,578 1,585,760
1,222,000 Time Warner Inc. ................................... 17,241,181 18,085,600
40,000 Triple Crown Media Inc.+ ........................... 178,465 18,800
1,010,000 Viacom Inc., Cl. A+ ................................ 30,067,324 30,916,100
363,000 Vivendi ............................................ 4,858,454 13,773,814
------------- -------------
72,425,109 98,708,279
------------- -------------
ENVIRONMENTAL SERVICES -- 3.6%
357,000 Republic Services Inc. ............................. 4,393,210 10,602,900
347,000 Waste Management Inc. .............................. 8,308,100 13,085,370
------------- -------------
12,701,310 23,688,270
------------- -------------
EQUIPMENT AND SUPPLIES -- 4.8%
200,000 CIRCOR International Inc. .......................... 2,246,238 9,798,000
102,000 Flowserve Corp. .................................... 1,342,290 13,943,400
100,000 Gerber Scientific Inc.+ ............................ 728,983 1,138,000
100,000 GrafTech International Ltd.+ ....................... 1,250,825 2,683,000
150,000 Watts Water Technologies Inc., Cl. A ............... 2,155,289 3,735,000
------------- -------------
7,723,625 31,297,400
------------- -------------
FINANCIAL SERVICES -- 4.8%
502,000 American Express Co. ............................... 16,264,798 18,910,340
40,000 Ameriprise Financial Inc. .......................... 1,047,544 1,626,800
100,000 Citigroup Inc. ..................................... 4,720,684 1,676,000
27,000 Deutsche Bank AG ................................... 1,569,800 2,304,450
30,000 H&R Block Inc. ..................................... 601,319 642,000
18,000 Interactive Brokers Group Inc., Cl. A+ ............. 468,122 578,340
5,438 JPMorgan Chase & Co. ............................... 229,783 186,578
29,000 Legg Mason Inc. .................................... 2,353,866 1,263,530
12,000 SAFECO Corp. ....................................... 803,346 805,920
70,000 SLM Corp.+ ......................................... 1,791,426 1,354,500
110,000 The Phoenix Companies Inc. ......................... 1,214,394 837,100
53,000 Wells Fargo & Co. .................................. 1,555,879 1,258,750
------------- -------------
32,620,961 31,444,308
------------- -------------
FOOD AND BEVERAGE -- 7.0%
11,000 Cadbury plc, ADR ................................... 585,540 553,520
27,000 Constellation Brands Inc., Cl. A+ .................. 590,876 536,220
10,000 Corn Products International Inc. ................... 123,275 491,100
40,000 Davide Campari-Milano SpA .......................... 406,275 334,415
40,000 Del Monte Foods Co. ................................ 303,364 284,000
201,000 Diageo plc, ADR .................................... 7,742,232 14,847,870
50,000 Dr. Pepper Snapple Group Inc.+ ..................... 1,305,080 1,049,000
26,000 Flowers Foods Inc. ................................. 140,959 736,840
200,000 Fomento Economico Mexicano SAB de CV, ADR .......... 2,449,908 9,102,000
70,000 General Mills Inc. ................................. 3,596,140 4,253,900
60,000 H.J. Heinz Co. ..................................... 1,928,599 2,871,000
70,000 Kerry Group plc, Cl. A ............................. 797,221 2,080,772
2,000 Meiji Seika Kaisha Ltd. ............................ 10,116 8,532
105,000 PepsiAmericas Inc. ................................. 1,513,475 2,076,900
16,000 Pernod-Ricard SA ................................... 1,778,901 1,643,732
14,000 Remy Cointreau SA .................................. 897,443 765,532
45,000 The Hershey Co. .................................... 1,878,155 1,475,100
25,000 Wm. Wrigley Jr. Co. ................................ 1,653,598 1,944,500
3,750 Wm. Wrigley Jr. Co., Cl. B ......................... 193,262 291,750
------------- -------------
27,894,419 45,346,683
------------- -------------
HEALTH CARE -- 0.7%
98,000 Advanced Medical Optics Inc.+ ...................... 2,937,920 1,836,520
4,000 Chemed Corp. ....................................... 125,792 146,440
12,000 Covidien Ltd. ...................................... 499,814 574,680
100,000 Pfizer Inc. ........................................ 2,487,765 1,747,000
------------- -------------
6,051,291 4,304,640
------------- -------------
HOTELS AND GAMING -- 1.4%
52,900 Dover Downs Gaming & Entertainment Inc. ............ 328,276 339,618
180,000 Gaylord Entertainment Co.+ ......................... 5,032,335 4,312,800
See accompanying notes to financial statements.
5
THE GABELLI VALUE FUND INC.
SCHEDULE OF INVESTMENTS (CONTINUED) -- JUNE 30, 2008 (UNAUDITED)
MARKET
SHARES COST VALUE
- ------------- ------------- -------------
COMMON STOCKS (CONTINUED)
HOTELS AND GAMING (CONTINUED)
352,941 Ladbrokes plc ...................................... $ 3,502,005 $ 1,804,951
12,000 Las Vegas Sands Corp.+ ............................. 665,036 569,280
60,000 MGM Mirage+ ........................................ 2,009,429 2,033,400
------------- -------------
11,537,081 9,060,049
------------- -------------
MACHINERY -- 1.3%
85,000 CNH Global NV ...................................... 1,596,781 2,887,450
69,000 Deere & Co. ........................................ 1,439,849 4,976,970
27,000 Zebra Technologies Corp., Cl. A+ ................... 930,868 881,280
------------- -------------
3,967,498 8,745,700
------------- -------------
MANUFACTURED HOUSING -- 0.0%
50,000 Champion Enterprises Inc.+ ......................... 469,208 292,500
------------- -------------
METALS AND MINING -- 7.5%
478,000 Barrick Gold Corp. ................................. 7,651,550 21,749,000
123,133 Kinross Gold Corp. ................................. 1,119,196 2,907,170
469,000 Newmont Mining Corp. ............................... 9,057,369 24,463,040
------------- -------------
17,828,115 49,119,210
------------- -------------
PUBLISHING -- 4.5%
12,000 AH Belo Corp., Cl. A ............................... 207,792 68,400
135,000 Belo Corp., Cl. A .................................. 1,866,009 986,850
848,000 Media General Inc., Cl. A .......................... 16,671,680 10,133,600
65,000 Meredith Corp. ..................................... 1,305,657 1,838,850
608,000 News Corp., Cl. A .................................. 9,245,826 9,144,320
16,000 PRIMEDIA Inc. ...................................... 274,913 74,560
165,000 The E.W. Scripps Co., Cl. A ........................ 5,714,215 6,854,100
------------- -------------
35,286,092 29,100,680
------------- -------------
REAL ESTATE -- 0.6%
134,300 Griffin Land & Nurseries Inc. ...................... 1,598,131 4,123,010
------------- -------------
RETAIL -- 0.9%
50,000 Ingles Markets Inc., Cl. A. ........................ 572,181 1,166,500
127,000 Safeway Inc. ....................................... 2,586,888 3,625,850
30,000 SUPERVALU Inc. ..................................... 850,468 926,700
4,000 Wal-Mart Stores Inc. ............................... 178,418 224,800
------------- -------------
4,187,955 5,943,850
------------- -------------
SPECIALTY CHEMICALS -- 1.2%
215,000 Ferro Corp. ........................................ 4,526,490 4,033,400
120,000 Hercules Inc. ...................................... 1,023,836 2,031,600
16,000 International Flavors & Fragrances Inc. ............ 726,220 624,960
3,500 Monsanto Co. ....................................... 149,303 442,540
10,000 Rohm & Haas Co. .................................... 487,259 464,400
10,000 Sensient Technologies Corp. ........................ 197,746 281,600
8,065 Tronox Inc., Cl. B ................................ 78,763 24,356
------------- -------------
7,189,617 7,902,856
------------- -------------
TELECOMMUNICATIONS -- 6.5%
645,000 Cincinnati Bell Inc.+ .............................. 2,473,255 2,567,100
22,000 Embarq Corp. ....................................... 579,180 1,039,940
150,000 Qwest Communications International Inc. ............ 367,000 589,500
1,345,000 Sprint Nextel Corp. ................................ 17,491,991 12,777,500
404,000 Telephone & Data Systems Inc. ...................... 8,792,582 19,097,080
143,000 Telephone & Data Systems Inc., Special ............. 3,191,333 6,306,300
------------- -------------
32,895,341 42,377,420
------------- -------------
TRANSPORTATION -- 0.0%
94,000 Grupo TMM SA, Cl. A, ADR+ .......................... 726,005 175,780
------------- -------------
WIRELESS COMMUNICATIONS -- 0.3%
40,000 United States Cellular Corp.+ ...................... 1,880,524 2,262,000
------------- -------------
TOTAL COMMON STOCKS 437,744,879 653,573,001
------------- -------------
WARRANTS -- 0.1%
ENERGY AND UTILITIES -- 0.1%
17,405 Mirant Corp., Ser. A, expire 01/03/11+ ............. 35,380 312,072
------------- -------------
TOTAL
INVESTMENTS -- 100.2% ............................ $ 437,780,259 653,885,073
=============
OTHER ASSETS AND LIABILITIES (NET) -- (0.2)% (1,308,040)
-------------
NET ASSETS -- 100.0% ............................... $ 652,577,033
=============
- ----------
(a) Security fair valued under procedures established by the Board of
Directors. The procedures may include reviewing available financial
information about the company and reviewing valuation of comparable
securities and other factors on a regular basis. At June 30, 2008, the
market value of fair valued securities amounted to $241,245 or 0.04% of
net assets.
+ Non-income producing security.
ADR American Depositary Receipt
See accompanying notes to financial statements.
6
THE GABELLI VALUE FUND INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2008 (UNAUDITED)
ASSETS:
Investments, at value (cost $437,780,259) .............................................. $ 653,885,073
Cash ................................................................................... 78,866
Receivable for investments sold ........................................................ 1,236,721
Receivable for Fund shares sold ........................................................ 169,389
Dividends and interest receivable ...................................................... 588,010
Prepaid expense ........................................................................ 40,428
---------------
TOTAL ASSETS ........................................................................... 655,998,487
---------------
LIABILITIES:
Payable for Fund shares redeemed ....................................................... 2,275,803
Payable for investment advisory fees ................................................... 568,960
Payable for distribution fees .......................................................... 154,455
Payable for accounting fees ............................................................ 3,750
Payable for shareholder services fees .................................................. 236,906
Other accrued expenses ................................................................. 181,580
---------------
TOTAL LIABILITIES ...................................................................... 3,421,454
---------------
NET ASSETS applicable to 45,621,353 shares outstanding ................................. $ 652,577,033
===============
NET ASSETS CONSIST OF:
Paid-in capital, each class at $0.001 par value ........................................ $ 426,239,915
Accumulated net investment income ...................................................... 899,260
Accumulated net realized gain on investments and foreign currency transactions ......... 9,333,035
Net unrealized appreciation on investments ............................................. 216,104,814
Net unrealized appreciation on foreign currency translations............................ 9
---------------
NET ASSETS ............................................................................. $ 652,577,033
===============
SHARES OF CAPITAL STOCK:
CLASS A:
Net Asset Value and redemption price per share ($631,694,872 / 44,048,854 shares
outstanding; 100,000,000 shares authorized) ........................................... $ 14.34
===============
Maximum offering price per share (NAV / .9425, based on maximum sales charge of
5.75% of the offering price) .......................................................... $ 15.21
===============
CLASS B:
Net Asset Value and offering price per share ($7,759,363 / 589,571 shares
outstanding; 100,000,000 shares authorized) ........................................... $ 13.16(a)
CLASS C:
Net Asset Value and offering price per share ($11,045,965 / 838,290 shares
outstanding; 50,000,000 shares authorized) ............................................ $ 13.18(a)
===============
CLASS I:
Net Asset Value and redemption price per share ($2,076,833 / 144,638 shares
outstanding; 50,000,000 shares authorized) ............................................ $ 14.36
===============
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2008 (UNAUDITED)
INVESTMENT INCOME:
Dividends (net of foreign taxes of $ 279,730) .......................................... $ 6,053,375
Interest ............................................................................... 39,866
---------------
TOTAL INVESTMENT INCOME ................................................................ 6,093,241
---------------
EXPENSES:
Investment advisory fees ............................................................... 3,612,432
Distribution fees - Class A ............................................................ 873,714
Distribution fees - Class B ............................................................ 45,303
Distribution fees - Class C ............................................................ 64,137
Shareholder services fees .............................................................. 275,478
Shareholder communications expenses .................................................... 105,522
Custodian fees ......................................................................... 59,639
Legal and audit fees ................................................................... 45,963
Directors' fees ........................................................................ 34,443
Accounting fees ........................................................................ 22,500
Registration expenses .................................................................. 15,860
Interest expense ....................................................................... 3,232
Miscellaneous expenses ................................................................. 35,899
---------------
TOTAL EXPENSES ......................................................................... 5,194,122
Less: Custodian fee credits ............................................................ (141)
---------------
NET EXPENSES ........................................................................... 5,193,981
---------------
NET INVESTMENT INCOME .................................................................. 899,260
---------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY:
Net realized gain on investments ....................................................... 16,140,025
Net realized loss on foreign currency transactions ..................................... (14,096)
---------------
Net realized gain on investments and foreign currency transactions ..................... 16,125,929
---------------
Net change in unrealized appreciation/depreciation on investments ...................... (133,729,964)
Net change in unrealized appreciation/depreciation on foreign currency translations .... (375)
---------------
Net change in unrealized appreciation/depreciation on investments and
foreign currency translations ......................................................... (133,730,339)
---------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY ............ (117,604,410)
---------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ................................... $ (116,705,150)
===============
- ----------
(a) Redemption price varies based on the length of time held.
See accompanying notes to financial statements.
7
THE GABELLI VALUE FUND INC.
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED
JUNE 30, 2008 YEAR ENDED
(UNAUDITED) DECEMBER 31, 2007
---------------- -----------------
OPERATIONS:
Net investment income (loss) ......................................... $ 899,260 $ (1,961,922)
Net realized gain on investments and foreign
currency transactions ............................................... 16,125,929 75,551,053
Net change in unrealized appreciation/depreciation on investments
and foreign currency translations .................................. (133,730,339) (31,123,073)
---------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ...... (116,705,150) 42,466,058
---------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net realized gains on investments and foreign currency transactions
Class A ............................................................. -- (72,089,295)
Class B ............................................................. -- (1,048,345)
Class C ............................................................. -- (1,434,056)
---------------- -----------------
-- (74,571,696)
---------------- -----------------
Return of capital
Class A ............................................................. -- (50,036)
Class B ............................................................. -- (728)
Class C ............................................................. -- (995)
---------------- -----------------
-- (51,759)
---------------- -----------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .................................. -- (74,623,455)
---------------- -----------------
CAPITAL SHARE TRANSACTIONS:
Class A ............................................................. (55,984,813) (29,345,720)
Class B ............................................................. (1,499,777) (1,778,459)
Class C ............................................................. (1,553,338) 779,864
Class I ............................................................. 2,280,399 --
---------------- -----------------
NET DECREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS ............ (56,757,529) (30,344,315)
---------------- -----------------
REDEMPTION FEES ....................................................... 312 2,293
---------------- -----------------
NET DECREASE IN NET ASSETS ............................................ (173,462,367) (62,499,419)
NET ASSETS:
Beginning of period ................................................... 826,039,400 888,538,819
---------------- -----------------
End of period (including undistributed net investment income of
$899,260 and $0, respectively) ....................................... $ 652,577,033 $ 826,039,400
================ =================
See accompanying notes to financial statements.
8
THE GABELLI VALUE FUND INC.
FINANCIAL HIGHLIGHTS
Selected data for a share of capital stock outstanding throughout each period:
INCOME FROM INVESTMENT OPERATIONS DISTRIBUTIONS
------------------------------------------- -----------------------------------------------------
Net
Net Asset Net Realized and Total Net
Period Value, Investment Unrealized from Net Realized Return
Ended Beginning Income/ Gain/(Loss) on Investment Investment Gain on of Total
December 31 of Period (Loss)(a) Investments Operations Income Investments Capital Distributions
- ----------- ----------- ------------ --------------- ------------ ------------ ----------- ----------- -------------
CLASS A
2008 (b) $ 16.78 $ 0.02 $ (2.46) $ (2.44) -- -- -- --
2007 17.61 (0.04) 0.86 0.82 -- $ (1.65) $ 0.00(c) $ (1.65)
2006 18.11 0.03 3.92 3.95 $ (0.03) (4.42) -- (4.45)
2005 19.49 0.02 (0.05) (0.03) (0.01) (1.34) -- (1.35)
2004 17.97 (0.02) 2.31 2.29 -- (0.77) -- (0.77)
2003 13.81 (0.05) 4.45 4.40 -- (0.24) -- (0.24)
CLASS B
2008 (b) $ 15.46 $ (0.03) $ (2.27) $ (2.30) -- -- -- --
2007 16.46 (0.17) 0.82 0.65 -- $ (1.65) $ 0.00(c) $ (1.65)
2006 17.28 (0.10) 3.70 3.60 -- (4.42) -- (4.42)
2005 18.79 (0.12) (0.05) (0.17) -- (1.34) -- (1.34)
2004 17.47 (0.15) 2.24 2.09 -- (0.77) -- (0.77)
2003 13.53 (0.17) 4.35 4.18 -- (0.24) -- (0.24)
CLASS C
2008 (b) $ 15.48 $ (0.03) $ (2.27) $ (2.30) -- -- -- --
2007 16.47 (0.17) 0.83 0.66 -- $ (1.65) $ 0.00(c) $ (1.65)
2006 17.29 (0.11) 3.71 3.60 -- (4.42) -- (4.42)
2005 18.80 (0.12) (0.05) (0.17) -- (1.34) -- (1.34)
2004 17.49 (0.15) 2.23 2.08 -- (0.77) -- (0.77)
2003 13.54 (0.17) 4.36 4.19 -- (0.24) -- (0.24)
CLASS I
2008 (g) $ 15.87 $ 0.05 $ (1.56) $ (1.51) -- -- -- --
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
-------------------------------------------------------------------
Net Asset Net Assets Net
Period Value, End of Investment Portfolio
Ended Redemption End of Total Period Income/ Operating Turnover
December 31 Fees(a) Period Return+ (in 000's) (Loss) Expenses Rate++
- ----------- ------------ ---------- --------- ------------- -------------- ----------------- ----------
CLASS A
2008 (b) $ 0.00(c) $ 14.34 (14.5)% $ 631,695 0.27%(d) 1.42%(d)(e) 2%
2007 0.00(c) 16.78 4.6 800,586 (0.20) 1.39 9
2006 0.00(c) 17.61 21.7 860,789 0.14 1.41(e) 17
2005 0.00(c) 18.11 (0.2) 1,063,137 0.08 1.40 3
2004 0.00(c) 19.49 12.8 1,261,293 (0.11) 1.39 12
2003 -- 17.97 31.9 1,255,668 (0.35) 1.44(f) 8
CLASS B
2008 (b) $ 0.00(c) $ 13.16 (14.9)% $ 7,759 (0.49)%(d) 2.17%(d)(e) 2%
2007 0.00(c) 15.46 3.9 10,774 (0.95) 2.14 9
2006 0.00(c) 16.46 20.8 13,046 (0.53) 2.16(e) 17
2005 0.00(c) 17.28 (0.9) 17,804 (0.67) 2.15 3
2004 0.00(c) 18.79 12.0 20,366 (0.86) 2.14 12
2003 -- 17.47 30.9 18,059 (1.10) 2.19(f) 8
CLASS C
2008 (b) $ 0.00(c) $ 13.18 (14.9)% $ 11,046 (0.47)%(d) 2.17%(d)(e) 2%
2007 0.00(c) 15.48 4.0 14,679 (0.94) 2.14 9
2006 0.00(c) 16.47 20.7 14,704 (0.58) 2.16(e) 17
2005 0.00(c) 17.29 (0.9) 14,003 (0.67) 2.15 3
2004 0.00(c) 18.80 11.9 16,400 (0.85) 2.14 12
2003 -- 17.49 30.9 14,973 (1.10) 2.19(f) 8
CLASS I
2008 (g) $ 0.00(c) $ 14.36 (14.4)% $ 2,077 0.72%(d) 1.17%(d)(e) 2%
- ----------
+ Total return represents aggregate total return of a hypothetical $1,000
investment at the beginning of the period and sold at the end of the
period including reinvestment of distributions and does not reflect
applicable sales charges. Total return for a period of less than one year
is not annualized.
++ Effective in 2008, a change in accounting policy was adopted with regard
to the calculation of the portfolio turnover rate. Had this policy been
adopted retroactively, the portfolio turnover rate for the fiscal years
ended December 31, 2007, 2006, 2005, 2004, and 2003 would have been as
shown.
(a) Per share amounts have been calculated using the average shares
outstanding method.
(b) For the six months ended June 30, 2008, unaudited.
(c) Amount represents less than $0.005 per share.
(d) Annualized.
(e) The Fund incurred interest expense during the six months ended June 30,
2008, and the fiscal year ended December 31, 2006. If interest expense had
not been incurred, the ratios of operating expenses to average net assets
would have been 1.41% and 1.40% (Class A), 2.16% and 2.15% (Class B and
Class C), and 1.17% for Class I, respectively. For the fiscal year ended
December 31, 2007, the effect of interest expense was minimal.
(f) The Fund incurred dividend expense on securities sold short for the year
ended December 31, 2003. If dividend expense had not been incurred, the
ratios of operating expenses to average net assets would have been 1.43%
(Class A), 2.18% (Class B), and 2.18% (Class C), respectively.
(g) From the commencement of offering Class I Shares on January 11, 2008
through June 30, 2008, unaudited.
See accompanying notes to financial statements.
9
THE GABELLI VALUE FUND INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION. The Gabelli Value Fund Inc. (the "Fund") was organized on July
20, 1989 as a Maryland corporation. The Fund is a non-diversified open-end
management investment company registered under the Investment Company Act of
1940, as amended (the "1940 Act"). The Fund's primary objective is long-term
capital appreciation. The Fund commenced investment operations on September 29,
1989.
2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements in
accordance with United States ("U.S.") generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results could differ
from those estimates. The following is a summary of significant accounting
policies followed by the Fund in the preparation of its financial statements.
SECURITY VALUATION. Portfolio securities listed or traded on a nationally
recognized securities exchange or traded in the U.S. over-the-counter market for
which market quotations are readily available are valued at the last quoted sale
price or a market's official closing price as of the close of business on the
day the securities are being valued. If there were no sales that day, the
security is valued at the average of the closing bid and asked prices or, if
there were no asked prices quoted on that day, then the security is valued at
the closing bid price on that day. If no bid or asked prices are quoted on such
day, the security is valued at the most recently available price or, if the
Board of Directors (the "Board") so determines, by such other method as the
Board shall determine in good faith to reflect its fair market value. Portfolio
securities traded on more than one national securities exchange or market are
valued according to the broadest and most representative market, as determined
by Gabelli Funds, LLC (the "Adviser").
Portfolio securities primarily traded on a foreign market are generally valued
at the preceding closing values of such securities on the relevant market, but
may be fair valued pursuant to procedures established by the Board if market
conditions change significantly after the close of the foreign market but prior
to the close of business on the day the securities are being valued. Debt
instruments with remaining maturities of 60 days or less that are not credit
impaired are valued at amortized cost, unless the Board determines such amount
does not reflect the securities' fair value, in which case these securities will
be fair valued as determined by the Board. Debt instruments having a maturity
greater than 60 days for which market quotations are readily available are
valued at the average of the latest bid and asked prices. If there were no asked
prices quoted on such day, the security is valued using the closing bid price.
Futures contracts are valued at the closing settlement price of the exchange or
board of trade on which the applicable contract is traded.
Securities and assets for which market quotations are not readily available are
fair valued as determined by the Board. Fair valuation methodologies and
procedures may include, but are not limited to: analysis and review of available
financial and non-financial information about the company; comparisons to the
valuation and changes in valuation of similar securities, including a comparison
of foreign securities to the equivalent U.S. dollar value ADR securities at the
close of the U.S. exchange; and evaluation of any other information that could
be indicative of the value of the security.
On January 1, 2008, the Fund adopted Statement of Financial Accounting Standard
No. 157, "Fair Value Measurements" ("SFAS 157") that clarifies the definition of
fair value for financial reporting, establishes a framework for measuring fair
value, and requires additional disclosures about the use of fair value
measurements. The three levels of the fair value hierarchy under SFAS 157 are
described below:
- Level 1 - quoted prices in active markets for identical securities;
10
THE GABELLI VALUE FUND INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
- Level 2 - other significant observable inputs (including quoted
prices for similar securities, interest rates, prepayment speeds,
credit risk, etc.); and
- Level 3 - significant unobservable inputs (including the Fund's
determinations as to the fair value of investments).
The inputs or methodology used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. The
summary of inputs used to value the Fund's net assets as of June 30, 2008 is as
follows:
INVESTMENTS IN
SECURITIES
(MARKET VALUE)
---------------
VALUATION INPUTS
Level 1 - Quoted Prices $ 653,643,828
Level 2 - Other Significant Observable Inputs --
Level 3 - Significant Unobservable Inputs 241,245
---------------
TOTAL $ 653,885,073
===============
The following is a reconciliation of Level 3 investments for which significant
unobservable inputs were used to determine fair value:
INVESTMENTS IN
SECURITIES
(MARKET VALUE)
---------------
BALANCE AS OF 12/31/07 $ 241,246
Accrued discounts/premiums --
Realized gain (loss) --
Change in unrealized appreciation/depreciation (1)
Net purchases (sales) --
Transfers in and/or out of Level 3 --
---------------
BALANCE AS OF 6/30/08 $ 241,245
===============
In March 2008, The Financial Accounting Standards Board (The "FASB") issued
Statement of Financial Accounting Standard No.161, "Disclosures about Derivative
Instruments and Hedging Activities" ("SFAS 161") that is effective for fiscal
years beginning after November 15, 2008. SFAS 161 is intended to improve
financial reporting for derivative instruments by requiring enhanced disclosure
that enables investors to understand how and why an entity uses derivatives, how
derivatives are accounted for, and how derivative instruments affect an entity's
results of operations and financial position. Management is currently evaluating
the implications of SFAS 161 on the Fund's financial statement disclosures.
REPURCHASE AGREEMENTS. The Fund may enter into repurchase agreements with
primary government securities dealers recognized by the Federal Reserve Board,
with member banks of the Federal Reserve System, or with other brokers or
dealers that meet credit guidelines established by the Adviser and reviewed by
the Board. Under the terms of a typical repurchase agreement, the Fund takes
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Fund to resell, the obligation at an agreed-upon
price and time, thereby determining the yield during the Fund's holding period.
The Fund will always receive and maintain securities as collateral whose market
value, including accrued interest, will be at least equal to 102% of the dollar
amount invested by the Fund in each agreement. The Fund will make payment
11
THE GABELLI VALUE FUND INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
for such securities only upon physical delivery or upon evidence of book entry
transfer of the collateral to the account of the custodian. To the extent that
any repurchase transaction exceeds one business day, the value of the collateral
is marked-to-market on a daily basis to maintain the adequacy of the collateral.
If the seller defaults and the value of the collateral declines or if bankruptcy
proceedings are commenced with respect to the seller of the security,
realization of the collateral by the Fund may be delayed or limited. At June 30,
2008, there were no open repurchase agreements.
FUTURES CONTRACTS. The Fund may engage in futures contracts for the purpose of
hedging against changes in the value of its portfolio securities and in the
value of securities it intends to purchase. Upon entering into a futures
contract, the Fund is required to deposit with the broker an amount of cash or
cash equivalents equal to a certain percentage of the contract amount. This is
known as the "initial margin." Subsequent payments ("variation margin") are made
or received by the Fund each day, depending on the daily fluctuations in the
value of the contract, which are included in unrealized
appreciation/depreciation on investments and futures contracts. The Fund
recognizes a realized gain or loss when the contract is closed.
There are several risks in connection with the use of futures contracts as a
hedging instrument. The change in value of futures contracts primarily
corresponds with the value of their underlying instruments, which may not
correlate with the change in value of the hedged investments. In addition, there
is the risk that the Fund may not be able to enter into a closing transaction
because of an illiquid secondary market. At June 30, 2008, there were no open
futures contracts.
SECURITIES SOLD SHORT. The Fund may enter into short sale transactions. Short
selling involves selling securities that may or may not be owned and, at times,
borrowing the same securities for delivery to the purchaser, with an obligation
to replace such borrowed securities at a later date. The proceeds received from
short sales are recorded as liabilities and the Fund records an unrealized gain
or loss to the extent of the difference between the proceeds received and the
value of an open short position on the day of determination. The Fund records a
realized gain or loss when the short position is closed out. By entering into a
short sale, the Fund bears the market risk of an unfavorable change in the price
of the security sold short. Dividends on short sales are recorded as an expense
by the Fund on the ex-dividend date and interest expense is recorded on the
accrual basis. The Fund did not hold any short positions as of June 30, 2008.
FOREIGN CURRENCY TRANSLATIONS. The books and records of the Fund are maintained
in U.S. dollars. Foreign currencies, investments, and other assets and
liabilities are translated into U.S. dollars at the current exchange rates.
Purchases and sales of investment securities, income, and expenses are
translated at the exchange rate prevailing on the respective dates of such
transactions. Unrealized gains and losses that result from changes in foreign
exchange rates and/or changes in market prices of securities have been included
in unrealized appreciation/depreciation on investments and foreign currency
translations. Net realized foreign currency gains and losses resulting from
changes in exchange rates include foreign currency gains and losses between
trade date and settlement date on investment securities transactions, foreign
currency transactions, and the difference between the amounts of interest and
dividends recorded on the books of the Fund and the amounts actually received.
The portion of foreign currency gains and losses related to fluctuation in
exchange rates between the initial purchase trade date and subsequent sale trade
date is included in realized gain/(loss) on investments.
12
THE GABELLI VALUE FUND INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
FOREIGN SECURITIES. The Fund may directly purchase securities of foreign
issuers. Investing in securities of foreign issuers involves special risks not
typically associated with investing in securities of U.S. issuers. The risks
include possible revaluation of currencies, the ability to repatriate funds,
less complete financial information about companies, and possible future adverse
political and economic developments. Moreover, securities of many foreign
issuers and their markets may be less liquid and their prices more volatile than
those of securities of comparable U.S. issuers.
FOREIGN TAXES. The Fund may be subject to foreign taxes on income, gains on
investments, or currency repatriation, a portion of which may be recoverable.
The Fund will accrue such taxes and recoveries as applicable, based upon its
current interpretation of tax rules and regulations that exist in the markets in
which it invests.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are
accounted for on the trade date with realized gain or loss on investments
determined by using the identified cost method. Interest income (including
amortization of premium and accretion of discount) is recorded on the accrual
basis. Premiums and discounts on debt securities are amortized using the
effective yield to maturity method. Dividend income is recorded on the
ex-dividend date except for certain dividends which are recorded as soon as the
Fund is informed of the dividend.
DETERMINATION OF NET ASSET VALUE AND CALCULATION OF EXPENSES. Certain
administrative expenses are common to, and allocated among, various affiliated
funds. Such allocations are made on the basis of each Fund's average net assets
or other criteria directly affecting the expenses as determined by the Adviser
pursuant to procedures established by the Board.
In calculating the NAV per share of each class, investment income, realized and
unrealized gains and losses, redemption fees, and expenses other than class
specific expenses are allocated daily to each class of shares based upon the
proportion of net assets of each class at the beginning of each day.
Distribution expenses are borne solely by the class incurring the expense.
CUSTODIAN FEE CREDITS AND INTEREST EXPENSE. When cash balances are maintained in
the custody account, the Fund receives credits which are used to offset
custodian fees. The gross expenses paid under the custody arrangement are
included in custodian fees in the Statement of Operations with the corresponding
expense offset, if any, shown as "custodian fee credits." When cash balances are
overdrawn, the Fund is charged an overdraft fee equal to 2.00% above the federal
funds rate on outstanding balances. This amount, if any, would be shown as
"interest expense" in the Statement of Operations.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions to shareholders are recorded on the
ex-dividend date. Distributions to shareholders are based on income and capital
gains as determined in accordance with federal income tax regulations, which may
differ from income and capital gains as determined under U.S. generally accepted
accounting principles. These differences are primarily due to differing
treatments of income and gains on various investment securities and foreign
currency transactions held by the Fund, timing differences, and differing
characterizations of distributions made by the Fund. Distributions from net
investment income include net realized gains on foreign currency transactions.
These book/tax differences are either temporary or permanent in nature. To the
extent these differences are permanent, adjustments are made to the appropriate
capital accounts in the period when the differences arise. These
reclassifications have no impact on the NAV of the Fund.
13
THE GABELLI VALUE FUND INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
The tax character of distributions paid during the fiscal year ended December
31, 2007 was as follows:
DISTRIBUTIONS PAID FROM:
Net long-term capital gains ..... $ 74,571,696
Return of capital ............... 51,759
-------------
Total distributions paid ........ $ 74,623,455
=============
PROVISION FOR INCOME TAXES. The Fund intends to continue to qualify as a
regulated investment company under Subchapter M of the Internal Revenue Code of
1986, as amended (the "Code"). It is the policy of the Fund to comply with the
requirements of the Code applicable to regulated investment companies and to
distribute substantially all of its net investment company taxable income and
net capital gains. Therefore, no provision for federal income taxes is required.
The following summarizes the tax cost of investments and the related unrealized
appreciation/(depreciation) at June 30, 2008:
GROSS GROSS
UNREALIZED UNREALIZED NET UNREALIZED
COST APPRECIATION DEPRECIATION APPRECIATION
------------- -------------- ------------- --------------
Investments ............... $ 443,973,290 $ 251,224,699 $ (41,312,916) $ 209,911,783
FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes, an
Interpretation of FASB Statement No. 109" ("the Interpretation") established a
minimum threshold for financial statement recognition of the benefit of
positions taken in filing tax returns (including whether the Fund is taxable in
a particular jurisdiction) and required certain expanded tax disclosures.
For the six months ended June 30, 2008, the Fund did not have any liability for
any unrecognized tax benefits. The Fund recognizes interest and penalties, if
any, related to unrecognized tax benefits as income tax expenses in the
Statement of Operations. The Fund is not subject to examination by U.S. federal
tax authorities for tax years before 2004 and by state tax authorities for tax
years before 2003.
3. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS. The Fund has entered
into an investment advisory agreement (the "Advisory Agreement") with the
Adviser which provides that the Fund will pay the Adviser a fee, computed daily
and paid monthly, at the annual rate of 1.00% of the value of its average daily
net assets. In accordance with the Advisory Agreement, the Adviser provides a
continuous investment program for the Fund's portfolio, oversees the
administration of all aspects of the Fund's business and affairs, and pays the
compensation of all Officers and Directors of the Fund who are affiliated
persons of the Adviser.
The Fund pays each Director who is not considered to be an affiliated person an
annual retainer of $10,000 plus $1,000 for each Board meeting attended and they
are reimbursed for any out of pocket expenses incurred in attending meetings.
All Board committee members receive $1,000 per meeting attended, the chairman of
each committee receives $2,500 per year, and the Lead Director receives an
annual fee of $1,000. Directors who are directors or employees of the Adviser or
an affiliated company receive no compensation or expense reimbursement from the
Fund.
4. DISTRIBUTION PLAN. The Fund's Board has adopted a distribution plan (the
"Plan") for each class of shares except for Class I Shares, pursuant to Rule
12b-1 under the 1940 Act. Gabelli & Company, Inc. ("Gabelli & Company"), an
affiliate of the Adviser, serves as distributor of the Fund. Under the Class A,
Class B, and Class
14
THE GABELLI VALUE FUND INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
C Share Plans, payments are authorized to Gabelli & Company at annual rates of
0.25%, 1.00%, and 1.00%, respectively, of the average daily net assets of those
classes, the annual limitations under each Plan. Such payments are accrued daily
and paid monthly.
5. PORTFOLIO SECURITIES. Purchases and proceeds from the sale of securities for
the six months ended June 30, 2008, other than short-term securities and U.S.
Government obligations, aggregated $13,595,631 and $48,275,779, respectively.
6. TRANSACTIONS WITH AFFILIATES. During the six months ended June 30, 2008, the
Fund paid brokerage commissions on security trades of $61,484 to Gabelli &
Company. Additionally, Gabelli & Company informed the Fund that it received
$27,008 from investors representing commissions (sales charges and underwriting
fees) on sales and redemptions of Fund shares.
The cost of calculating the Fund's NAV per share is a Fund expense pursuant to
the Advisory Agreement between the Fund and the Adviser. During the six months
ended June 30, 2008, the Fund paid or accrued $22,500 to the Adviser in
connection with the cost of computing the Fund's NAV.
7. CAPITAL STOCK. The Fund offers four classes of shares - Class A Shares, Class
B Shares, Class C Shares, and Class I Shares. Class I Shares are offered to
investors without a front-end sales charge. Class A Shares are subject to a
maximum front-end sales charge of 5.75%. Prior to May 1, 2007, the maximum
front-end load on Class A Shares was 5.50%. Class B Shares are subject to a
contingent deferred sales charge ("CDSC") upon redemption within six years of
purchase and automatically convert to Class A Shares approximately eight years
after the original purchase. The applicable CDSC is equal to a declining
percentage of the lesser of the NAV per share at the date of the original
purchase or at the date of redemption, based on the length of time held. Class C
Shares are subject to a 1.00% CDSC for one year after purchase. Class B Shares
are available only through exchange of Class B Shares of other funds distributed
by Gabelli & Company. Class I Shares were first issued on January 11, 2008.
The Fund imposes a redemption fee of 2.00% on all classes of shares that are
redeemed or exchanged on or before the seventh day after the date of a purchase.
The redemption fee is deducted from the proceeds otherwise payable to the
redeeming shareholders and is retained by the Fund. The redemption fees retained
by the Fund during the six months ended June 30, 2008 and the fiscal year ended
December 31, 2007 amounted to $312 and $2,293, respectively.
The redemption fee does not apply to redemptions of shares where (i) the shares
were purchased through automatic reinvestment of distributions, (ii) the
redemption was initiated by the Fund, (iii) the shares were purchased through
programs that collect the redemption fee at the program level and remit them to
the Fund, or (iv) the shares were purchased through programs that the Adviser
determines to have appropriate anti-short-term trading policies in place or as
to which the Adviser has received assurances that look-through redemption fee
procedures or effective anti-short-term trading policies and procedures are in
place.
15
THE GABELLI VALUE FUND INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
Transactions in shares of capital stock were as follows:
SIX MONTHS ENDED
JUNE 30, 2008 YEAR ENDED
(UNAUDITED) DECEMBER 31, 2007
----------------------------- ------------------------------
SHARES AMOUNT SHARES AMOUNT
------------ -------------- ------------- --------------
CLASS A CLASS A
----------------------------- ------------------------------
Shares sold......................................... 408,438 $ 6,262,667 1,478,576 $ 27,445,819
Shares issued upon reinvestment of distributions.... -- -- 4,003,660 67,344,910
Shares redeemed..................................... (4,062,019) (62,247,480) (6,674,075) (124,136,449)
------------ -------------- ------------- --------------
Net decrease..................................... (3,653,581) $ (55,984,813) (1,191,839) $ (29,345,720)
============ ============== ============= ==============
CLASS B CLASS B
----------------------------- ------------------------------
Shares sold......................................... -- -- 4,521 $ 74,391
Shares issued upon reinvestment of distributions.... -- -- 61,782 957,619
Shares redeemed..................................... (107,353) $ (1,499,777) (161,790) (2,810,469)
------------ -------------- ------------- --------------
Net decrease..................................... (107,353) $ (1,499,777) (95,487) $ (1,778,459)
============ ============== ============= ==============
CLASS C CLASS C
----------------------------- ------------------------------
Shares sold......................................... 76,204 $ 1,062,237 191,138 $ 3,300,404
Shares issued upon reinvestment of distributions.... -- -- 62,213 964,928
Shares redeemed..................................... (186,370) (2,615,575) (197,724) (3,485,468)
------------ -------------- ------------- --------------
Net increase (decrease).......................... (110,166) $ (1,553,338) 55,627 $ 779,864
============ ============== ============= ==============
CLASS I*
-----------------------------
Shares sold......................................... 146,665 $ 2,310,462
Shares redeemed..................................... (2,027) (30,063)
------------ --------------
Net increase..................................... 144,638 $ 2,280,399
============ ==============
- ----------
* From the commencement of offering Class I Shares on January 11, 2008.
8. INDEMNIFICATIONS. The Fund enters into contracts that contain a variety of
indemnifications. The Fund's maximum exposure under these arrangements is
unknown. However, the Fund has not had prior claims or losses pursuant to these
contracts and expects the risk of loss to be remote.
9. OTHER MATTERS. On April 24, 2008, the Adviser entered into an administrative
settlement with the SEC to resolve the SEC's inquiry regarding prior frequent
trading activity in shares of the GAMCO Global Growth Fund (the "Global Growth
Fund") by one investor who was banned from the Global Growth Fund in August
2002. In the settlement, the SEC found that the Adviser had violated Section
206(2) of the Investment Advisers Act, Section 17(d) of the 1940 Act and Rule
17d-1 thereunder, and had aided and abetted and caused violations of Section
12(d)(1)(B)(i) of the 1940 Act. Under the terms of the settlement, the Adviser,
while neither admitting nor denying the SEC's findings and allegations, agreed,
among other things, to pay the previously reserved total of $16 million
(including a $5 million penalty), of which at least $11 million will be
distributed to shareholders of the Global Growth Fund in accordance with a plan
to be developed by an independent distribution consultant and approved by the
independent directors of the Global Growth Fund and the staff of the SEC, and to
cease and desist from future violations of the above referenced federal
securities laws. The settlement will not have a material adverse impact on the
Adviser or its ability to fulfill its obligations under the Advisory Agreement.
On the same day, the SEC filed a civil action against the Executive Vice
President and Chief Operating Officer of the
16
THE GABELLI VALUE FUND INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
Adviser, alleging violations of certain federal securities laws arising from the
same matter. The officer is also an officer of the Global Growth Fund and other
funds in the Gabelli/GAMCO fund complex. The officer denies the allegations and
is continuing in his positions with the Adviser and the funds. The Adviser
currently expects that any resolution of the action against the officer will not
have a material adverse impact on the Adviser or its ability to fulfill its
obligations under the Advisory Agreement.
On a separate matter, in August 2008, the Adviser made an offer to the staff of
the SEC to settle a previously disclosed matter concerning compliance with
Section 19(a) and Rule 19a-1 of the 1940 Act by two closed-end funds managed by
the Adviser. These provisions require registered investment companies to provide
written statements to shareholders when a distribution is made in the nature of
a dividend from a source other than net investment income. While the two funds
sent annual statements and provided other materials containing this information,
the funds did not send the notices required by Rule 19a-1 to shareholders with
each distribution in 2002 and 2003. The Adviser believes that the funds have
been in compliance with Rule 19a-1 since that time. The Adviser believes that
the settlement would have no effect on the funds or any material adverse effect
on the Adviser or its ability to manage the funds. This offer of settlement is
subject to final agreement regarding the specific language of the SEC's
administrative order and other settlement documents and approval by the SEC.
17
THE GABELLI VALUE FUND INC.
BOARD CONSIDERATION AND RE-APPROVAL OF INVESTMENT ADVISORY AGREEMENT (UNAUDITED)
Section 15(c) of the Investment Company Act of 1940, as amended (the "1940
Act"), contemplates that the Board of Directors (the "Board") of The Gabelli
Value Fund Inc. (the "Fund"), including a majority of the Directors who have no
direct or indirect interest in the investment advisory agreement and are not
"interested persons" of the Fund, as defined in the 1940 Act (the "Independent
Board Members"), are required to annually review and re-approve the terms of the
Fund's existing investment advisory agreement and approve any newly proposed
terms therein. In this regard, the Board reviewed and re-approved, during the
most recent six month period covered by this report, the Investment Advisory
Agreement (the "Advisory Agreement") with Gabelli Funds, LLC (the "Adviser") for
the Fund.
More specifically, at a meeting held on February 28, 2008, the Independent Board
Members, meeting in executive session with their counsel, reviewed the written
and oral information that had been made available, and considered the factors
and reached the conclusions described below relating to the selection of the
Adviser and the re-approval of the Advisory Agreement.
1. NATURE, EXTENT, AND QUALITY OF SERVICES. The Independent Board Members
considered the nature, quality, and extent of administrative and shareholder
services performed by the Adviser, including portfolio management, supervision
of Fund operations and compliance and regulatory filings and disclosures to
shareholders, general oversight of other service providers, coordination of Fund
marketing initiatives, review of Fund legal issues, assisting the Independent
Board Members in their capacity as directors and other services. The Independent
Board Members concluded that the services are extensive in nature and that the
Adviser consistently delivered a high level of service.
2. INVESTMENT PERFORMANCE OF THE FUND AND ADVISER. The Independent Board Members
considered investment performance for the Fund over various periods of time as
compared with the performance of such Fund's Lipper peer group and concluded
that the Adviser was delivering satisfactory performance results over the long
term consistent with the long-term investment strategies being pursued by the
Fund.
3. COSTS OF SERVICES AND PROFITS REALIZED BY THE ADVISER.
(a) COSTS OF SERVICES TO FUND: FEES AND EXPENSES. The Independent Board Members
considered the Fund's management fee rate and expense ratio relative to industry
averages for the Fund's peer group category and the advisory fees charged by the
Adviser and its affiliates to other fund and non-fund clients. The Independent
Board Members noted that the mix of services under the Agreement are much more
extensive than those under the advisory agreements for non-fund clients.
(b) PROFITABILITY AND COSTS OF SERVICES TO ADVISER. The Independent Board
Members considered the Adviser's overall profitability and costs and proforma
estimates of the Adviser's profitability and costs attributable to the Fund.
With regard to the Adviser, that information was prorated (i) assuming the Fund
was part of the Gabelli/GAMCO fund complex and (ii) assuming the Fund
constituted the Adviser's only investment company under its management. The
Independent Board Members also considered whether the amount of profit is a fair
entrepreneurial profit for the management of the Fund and noted that the Adviser
has substantially increased its resources devoted to Fund matters in response to
recently enacted regulatory requirements and new or enhanced Fund policies and
procedures. The Independent Board Members concluded that the Adviser's
profitability was at an acceptable level, particularly in light of the high
quality of the services being provided to the Fund.
18
4. EXTENT OF ECONOMIES OF SCALE AS FUND GROWS. The Independent Board Members
considered whether there have been economies of scale with respect to the
management of the Fund and whether the Fund has appropriately benefited from any
economies of scale. The Independent Board Members noted that economies of scale
may develop for certain funds as their assets increase and their fund level
expenses decline as a percentage of assets, but that fund level economies of
scale may not necessarily result in Adviser level economies of scale.
5. WHETHER FEE LEVELS REFLECT ECONOMIES OF SCALE. The Independent Board Members
also considered whether the management fee rate is reasonable in relation to the
asset size of the Fund and any economies of scale that may exist and concluded
that it currently was reasonable.
6. OTHER RELEVANT CONSIDERATIONS.
(a) ADVISER PERSONNEL AND METHODS. The Independent Board Members considered the
size, education, and experience of the Adviser's staff, the Adviser's
fundamental research capabilities, and the Adviser's approach to recruiting,
training, and retaining portfolio managers and other research and management
personnel, and concluded that in each of these areas the Adviser was structured
in such a way to support the high level of services being provided to the Fund.
(b) OTHER BENEFITS TO THE ADVISER. The Independent Board Members also considered
the character and amount of other incidental benefits received by the Adviser
and its affiliates from its association with the Fund. The Independent Board
Members concluded that potential "fall-out" benefits that the Adviser and its
affiliates may receive, such as brokerage commissions paid to an affiliated
broker, greater name recognition, or increased ability to obtain research
services, appear to be reasonable, and may in some cases benefit the Fund. The
Independent Board Members also noted that a substantial portion of the Fund's
portfolio transactions were executed by an affiliated broker, and that the
affiliated broker received distribution fees and commissions from the Fund, and
the Adviser received a moderate amount of soft dollar benefits (but no third
party research services) from unaffiliated brokers through the Fund's portfolio
brokerage.
CONCLUSIONS. In considering the Agreement, the Independent Board Members did not
identify any factor as all important or all controlling and instead considered
these factors collectively in light of the Fund's surrounding circumstances.
Based on this review, it was the judgment of the Independent Board Members that
shareholders had received satisfactory absolute and relative performance at
reasonable fees and, therefore, re-approval of the Agreement was in the best
interests of the Fund and its shareholders. As a part of its decision-making
process, the Independent Board Members noted that the Adviser has managed the
Fund since its inception, and the Independent Board Members believe that a
long-term relationship with a capable, conscientious adviser is in the best
interests of the Fund. The Independent Board Members considered, generally, that
shareholders invested in the Fund knowing that the Adviser managed the Fund and
knowing its investment management fee schedule. As such, the Independent Board
Members considered, in particular, whether the Adviser managed the Fund in
accordance with its investment objectives and policies as disclosed to
shareholders. The Independent Board Members concluded that the Fund was managed
by the Adviser consistent with its investment objectives and policies.
19
THE GABELLI VALUE FUND INC.
One Corporate Center
Rye, New York 10580-422
800-GABELLI
800-422-3554
FAX: 914-921-5118
WEBSITE: www.gabelli.com
E-MAIL: info@gabelli.com
Net Asset Value per share available daily by calling
800-GABELLI after 6:00 P.M.
BOARD OF DIRECTORS
Mario J. Gabelli, CFA Anthony R. Pustorino
Chairman and Chief Certified Public Accountant,
Executive Officer Professor Emeritus
GAMCO Investors, Inc. Pace University
Anthony J. Colavita Werner J. Roeder, MD
Attorney-at-Law Medical Director
Anthony J. Colavita, P.C. Lawrence Hospital
Robert J. Morrissey
Attorney-at-Law
Morrissey, Hawkins & Lynch
OFFICERS
Bruce N. Alpert Peter D. Goldstein
President and Secretary Chief Compliance Officer
Agnes Mullady
Treasurer
CUSTODIAN
The Bank of New York Mellon
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT
State Street Bank and Trust Company
LEGAL COUNSEL
Willkie Farr & Gallagher LLP
DISTRIBUTOR
Gabelli & Company, Inc.
This report is submitted for the general information of the shareholders of The
Gabelli Value Fund Inc. It is not authorized for distribution to prospective
investors unless preceded or accompanied by an effective prospectus.
GAB409Q208SR
[GRAPHIC]
THE GABELLI VALUE FUND INC.
SEMI ANNUAL REPORT
JUNE 30, 2008
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. INVESTMENTS.
(a) Schedule of Investments in securities of unaffiliated issuers as of the
close of the reporting period is included as part of the report to
shareholders filed under Item 1 of this form.
(b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which the shareholders
may recommend nominees to the registrant's Board of Directors, where those
changes were implemented after the registrant last provided disclosure in
response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR
229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)),
or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of the report that includes the disclosure
required by this paragraph, based on their evaluation of these controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or
240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17
CFR 270.30a-3(d)) that occurred during the registrant's second fiscal
quarter of the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Not applicable.
(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and
Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and
Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) The Gabelli Value Fund Inc.
-----------------------------------------------------------------
By (Signature and Title)* /s/ Bruce N. Alpert
-------------------------------------------------------
Bruce N. Alpert, Principal Executive Officer
Date 9/3/08
----------------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Bruce N. Alpert
-------------------------------------------------------
Bruce N. Alpert, Principal Executive Officer
Date 9/3/08
----------------------------------------------------------------------------
By (Signature and Title)* /s/ Agnes Mullady
-------------------------------------------------------
Agnes Mullady,
Principal Financial Officer & Treasurer
Date 9/3/08
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.