UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-7644
--------
Gabelli Capital Series Funds, Inc.
-----------------------------------------------------
(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
-------------------------------------------
(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
-------------------------------------------
(Name and address of agent for service)
registrant's telephone number, including area code: 1-800-422-3554
---------------
Date of fiscal year end: December 31
------------
Date of reporting period: December 31, 2003
------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. Section 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
The Annual Report to Shareholders is attached herewith.
/ / Gabelli Capital Asset Fund
Portfolio of Investments
December 31, 2003
<Table>
<Caption>
COMMON STOCKS -- 92.2%
Market
Shares Cost Value
- -------------------------------------------------------------------
AEROSPACE -- 0.8%
80,000 Titan Corp.+ $ 1,697,844 $ 1,744,800
- -------------------------------------------------------------------
AGRICULTURE -- 2.4%
50,000 AGCO Corp.+ 1,018,345 1,007,000
275,000 Archer-Daniels-Midland
Co. 3,486,966 4,185,500
------------ ------------
4,505,311 5,192,500
- -------------------------------------------------------------------
AUTOMOTIVE: PARTS AND ACCESSORIES -- 5.2%
7,000 BorgWarner Inc. 352,271 595,490
29,000 CLARCOR Inc. 548,692 1,278,900
280,000 Dana Corp. 4,386,399 5,138,000
90,000 GenCorp Inc. 854,121 969,300
55,000 Modine Manufacturing Co. 1,554,850 1,483,900
68,000 Scheib (Earl) Inc.+ 426,621 166,600
60,000 Standard Motor Products
Inc. 976,678 729,000
6,000 Superior Industries
International Inc. 156,207 261,120
45,000 Tenneco Automotive Inc.+ 330,019 301,050
34,300 TransPro Inc.+ 216,824 143,717
------------ ------------
9,802,682 11,067,077
- -------------------------------------------------------------------
AVIATION: PARTS AND SERVICES -- 2.6%
18,000 Aviall Inc.+ 244,445 279,180
3,000 Barnes Group Inc. 44,681 96,930
28,000 Curtiss-Wright Corp.,
Cl. B 758,388 1,257,200
115,000 Fairchild Corp., Cl. A+ 740,716 579,600
50,000 Kaman Corp., Cl. A 652,719 636,500
6,500 Moog Inc., Cl. A+ 109,858 321,100
20,001 Precision Castparts
Corp. 881,665 908,224
30,000 Sequa Corp., Cl. A+ 1,048,824 1,470,000
------------ ------------
4,481,296 5,548,734
- -------------------------------------------------------------------
BROADCASTING -- 5.6%
40,000 Fisher Communications
Inc.+ 2,341,396 2,040,000
130,000 Granite Broadcasting
Corp.+ 811,711 214,500
220,000 Gray Television Inc. 2,308,168 3,326,400
50,000 Grupo Televisa SA, ADR 1,875,287 1,993,000
50,000 Liberty Corp. 2,401,567 2,259,500
22,000 Lin TV Corp., Cl. A+ 483,760 567,820
45,000 Paxson Communications
Corp.+ 361,066 173,250
50,000 Sinclair Broadcast Group
Inc., Cl. A+ 578,699 746,000
32,500 Young Broadcasting Inc.,
Cl. A+ 682,460 651,300
------------ ------------
11,844,114 11,971,770
- -------------------------------------------------------------------
BUSINESS SERVICES -- 0.5%
20,000 Cendant Corp.+ 305,380 445,400
73,000 Nashua Corp.+ 637,069 620,500
------------ ------------
942,449 1,065,900
- -------------------------------------------------------------------
CABLE -- 2.3%
5,000 Adelphia Communications
Corp., Cl. A+ 5,250 3,000
181,900 Cablevision Systems
Corp., Cl. A+ 1,339,300 4,254,641
75,000 UnitedGlobalCom Inc.,
Cl. A+ 343,292 636,000
------------ ------------
1,687,842 4,893,641
- -------------------------------------------------------------------
</Table>
<Table>
<Caption>
- -------------------------------------------------------------------
Market
Shares Cost Value
- -------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT -- 2.0%
170,000 Corning Inc.+ $ 1,179,754 $ 1,773,100
100,000 Lucent Technologies
Inc.+ 402,920 284,000
135,000 Motorola Inc. 1,421,983 1,899,450
100,000 Nortel Networks Corp.+ 481,000 423,000
------------ ------------
3,485,657 4,379,550
- -------------------------------------------------------------------
COMPUTER SOFTWARE AND SERVICES -- 0.2%
20,000 Maxtor Corp.+ 181,600 222,000
100,000 Xanser Corp.+ 290,627 237,000
------------ ------------
472,227 459,000
- -------------------------------------------------------------------
CONSUMER PRODUCTS -- 2.1%
9,000 Alberto-Culver Co., Cl.
B 427,626 567,720
25,000 Gallaher Group plc, ADR 599,663 1,063,500
30,600 National Presto
Industries Inc. 1,043,907 1,106,190
12,000 Procter & Gamble Co. 762,584 1,198,560
10,000 Sony Corp., ADR 317,134 346,700
60,000 Weider Nutrition
International Inc.+ 149,346 267,000
------------ ------------
3,300,260 4,549,670
- -------------------------------------------------------------------
CONSUMER SERVICES -- 1.8%
20,000 InterActiveCorp.+ 154,375 678,600
140,000 Rollins Inc. 1,625,914 3,157,000
------------ ------------
1,780,289 3,835,600
- -------------------------------------------------------------------
DIVERSIFIED INDUSTRIAL -- 7.1%
47,000 Ampco-Pittsburgh Corp. 725,151 642,490
36,000 Baldor Electric Co. 773,737 822,600
40,000 Cooper Industries Ltd.,
Cl. A 1,695,376 2,317,200
30,000 Crane Co. 623,766 922,200
110,000 General Electric Co. 3,256,386 3,407,800
15,000 Greif Inc., Cl. A 394,217 532,650
13,500 Harbor Global Co. Ltd.+ 31,715 122,850
100,000 Honeywell International
Inc. 2,916,354 3,343,000
73,600 Katy Industries Inc.+ 968,000 420,256
80,000 Myers Industries Inc. 752,751 969,600
85,000 Sensient Technologies
Corp. 1,634,671 1,680,450
19,000 WHX Corp.+ 104,092 50,730
------------ ------------
13,876,216 15,231,826
- -------------------------------------------------------------------
ELECTRONICS -- 1.9%
35,000 Agere Systems Inc., Cl.
B+ 71,120 101,500
75,000 Texas Instruments Inc. 1,787,940 2,203,500
75,000 Thomas & Betts Corp. 1,375,461 1,716,750
------------ ------------
3,234,521 4,021,750
- -------------------------------------------------------------------
ENERGY AND UTILITIES -- 5.5%
90,000 Allegheny Energy Inc.+ 773,790 1,148,400
80,000 Aquila Inc.+ 286,441 271,200
50,000 CMS Energy Corp.+ 356,085 426,000
20,000 ConocoPhillips 1,163,449 1,311,400
6,000 Devon Energy Corp. 287,172 343,560
70,000 Duquesne Light Holdings
Inc. 1,060,298 1,283,800
95,000 El Paso Corp. 829,720 778,050
110,000 El Paso Electric Co.+ 988,418 1,468,500
20,000 Exxon Mobil Corp. 683,662 820,000
4,666 Florida Public Utilities
Co. 55,292 73,653
20,000 Kerr-McGee Corp. 1,076,159 929,800
</Table>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
5
Gabelli Capital Asset Fund
Portfolio of Investments (Continued)
<Table>
<Caption>
- -------------------------------------------------------------------
Market
Shares Cost Value
- -------------------------------------------------------------------
40,000 Mirant Corp.+ $ 153,300 $ 15,600
60,000 Northeast Utilities 1,151,948 1,210,200
22,000 NSTAR 991,703 1,067,000
17,000 Progress Energy Inc.,
CVO+ 7,800 3,910
30,400 Southwest Gas Corp. 743,740 682,480
------------ ------------
10,608,977 11,833,553
- -------------------------------------------------------------------
ENTERTAINMENT -- 9.0%
37,000 Dover Motorsports Inc. 231,118 129,500
60,000 Fox Entertainment Group
Inc., Cl. A+ 1,516,044 1,749,000
6,000 GC Companies Inc.+ 12,120 2,100
140,000 Gemstar-TV Guide
International Inc.+ 875,323 707,000
330,000 Liberty Media Corp., Cl.
A+ 1,571,714 3,923,700
80,000 Metro-Goldwyn-Mayer
Inc.+ 1,098,013 1,367,200
115,000 The Walt Disney Co. 2,402,259 2,682,950
200,000 Time Warner Inc.+ 3,362,397 3,598,000
50,000 Topps Co. Inc. 460,778 513,000
60,000 Viacom Inc., Cl. A 1,326,428 2,656,200
70,000 Vivendi Universal SA,
ADR+ 1,086,493 1,699,600
15,000 World Wrestling
Entertainment Inc. 145,483 196,500
------------ ------------
14,088,170 19,224,750
- -------------------------------------------------------------------
ENVIRONMENTAL SERVICES -- 1.4%
100,000 Allied Waste Industries
Inc.+ 999,912 1,388,000
12,000 Catalytica Energy
Systems Inc.+ 71,187 41,988
55,000 Waste Management Inc. 1,153,971 1,628,000
------------ ------------
2,225,070 3,057,988
- -------------------------------------------------------------------
EQUIPMENT AND SUPPLIES -- 6.4%
35,000 AMETEK Inc. 717,894 1,689,100
40,000 Baldwin Technology Co.
Inc., Cl. A+ 63,576 92,000
35,000 Belden Inc. 492,982 738,150
5,000 C&D Technologies Inc. 91,700 95,850
40,000 Capstone Turbine Corp.+ 70,880 74,400
7,000 CIRCOR International
Inc. 73,502 168,700
100,000 CTS Corp. 1,102,936 1,150,000
16,000 Cuno Inc.+ 315,437 720,480
21,000 Eastern Co. 326,937 328,440
225,000 Fedders Corp. 1,120,992 1,620,000
35,000 Flowserve Corp.+ 495,714 730,800
21,000 Franklin Electric Co.
Inc. 367,306 1,270,290
30,000 GrafTech International
Ltd.+ 388,561 405,000
20,000 IDEX Corp. 498,310 831,800
3,000 Imagistics International
Inc.+ 60,106 112,500
200,000 Interpump Group SpA 784,404 895,560
40,000 Navistar International
Corp.+ 789,981 1,915,600
40,000 Watts Water Technologies
Inc., Cl. A 552,914 888,000
------------ ------------
8,314,132 13,726,670
- -------------------------------------------------------------------
FINANCIAL SERVICES -- 5.5%
95,000 American Express Co. 3,411,042 4,581,850
48,000 Argonaut Group Inc.+ 1,086,565 745,920
20,000 Bank of New York Co.
Inc. 646,337 662,400
15,000 BKF Capital Group Inc.+ 388,458 370,200
13,000 Deutsche Bank AG, ADR 797,893 1,068,730
</Table>
<Table>
<Caption>
- -------------------------------------------------------------------
Market
Shares Cost Value
- -------------------------------------------------------------------
165,500 J Net Enterprises Inc.+ $ 555,391 $ 231,700
25,000 KeyCorp 706,750 733,000
30,000 Midland Co. 221,322 708,600
85,000 MONY Group Inc.+ 2,759,592 2,659,650
------------ ------------
10,573,350 11,762,050
- -------------------------------------------------------------------
FOOD AND BEVERAGE -- 8.3%
10,000 Allied Domecq plc, ADR 204,522 315,900
10,000 Brown-Forman Corp., Cl.
A 477,226 969,500
35,000 Campbell Soup Co. 938,291 938,000
30,000 Coca-Cola Co. 1,439,266 1,522,500
52,000 Corn Products
International Inc. 1,275,632 1,791,400
30,000 Del Monte Foods Co.+ 252,853 312,000
55,000 Diageo plc, ADR 2,099,518 2,907,300
35,000 Dreyer's Grand Ice Cream
Holdings Inc., Cl. A 2,717,479 2,721,250
73,000 Heinz (H.J.) Co. 2,704,248 2,659,390
20,000 Kellogg Co. 542,423 761,600
130,000 PepsiAmericas Inc. 1,730,112 2,225,600
20,000 Tootsie Roll Industries
Inc. 324,957 720,000
60,000 Twinlab Corp.+ 144,933 1,200
------------ ------------
14,851,460 17,845,640
- -------------------------------------------------------------------
HEALTH CARE -- 3.0%
8,000 DENTSPLY International
Inc. 340,300 361,360
10,000 Eli Lilly & Co. 614,026 703,300
4,400 Henry Schein Inc.+ 225,302 297,352
9,000 INAMED Corp.+ 418,918 432,540
4,000 Invitrogen Corp.+ 167,555 280,000
13,000 IVAX Corp.+ 146,900 310,440
24,000 Johnson & Johnson 1,198,000 1,239,840
18,000 Merck & Co. Inc. 794,290 831,600
2,000 Patterson Dental Co.+ 88,120 128,320
50,000 Pfizer Inc. 1,634,499 1,766,500
------------ ------------
5,627,910 6,351,252
- -------------------------------------------------------------------
HOTELS AND GAMING -- 2.9%
55,000 Aztar Corp.+ 368,807 1,237,500
70,000 Boca Resorts Inc., Cl.
A+ 871,991 1,047,200
27,000 Dover Downs Gaming &
Entertainment Inc. 309,456 255,420
80,000 Gaylord Entertainment
Co.+ 2,297,856 2,388,000
80,000 Hilton Hotels Corp. 631,540 1,370,400
------------ ------------
4,479,650 6,298,520
- -------------------------------------------------------------------
METALS AND MINING -- 0.1%
8,000 Compania de Minas
Buenaventura SA, ADR 161,850 226,240
- -------------------------------------------------------------------
PAPER AND FOREST PRODUCTS -- 0.3%
25,000 Pactiv Corp.+ 241,711 597,500
- -------------------------------------------------------------------
PUBLISHING -- 4.9%
10,000 Knight-Ridder Inc. 671,664 773,700
10,000 Lee Enterprises Inc. 289,859 436,500
22,000 McClatchy Co., Cl. A 637,731 1,513,600
8,000 Meredith Corp. 171,362 390,480
40,000 New York Times Co., Cl.
A 1,847,173 1,911,600
150,000 Penton Media Inc.+ 264,737 204,000
380,000 PRIMEDIA Inc.+ 1,484,601 1,075,400
28,000 Pulitzer Inc. 1,006,758 1,512,000
</Table>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
6
Gabelli Capital Asset Fund
Portfolio of Investments (Continued)
<Table>
<Caption>
- -------------------------------------------------------------------
Market
Shares Cost Value
- -------------------------------------------------------------------
60,000 Reader's Digest
Association Inc. $ 975,486 $ 879,600
5,000 Scripps (E.W.) Co., Cl.
A 377,750 470,700
73,000 Thomas Nelson Inc. 824,481 1,411,090
------------ ------------
8,551,602 10,578,670
- -------------------------------------------------------------------
REAL ESTATE -- 0.3%
47,000 Griffin Land & Nurseries
Inc.+ 659,368 667,917
- -------------------------------------------------------------------
RETAIL -- 0.8%
22,500 Aaron Rents Inc., Cl. A 281,332 416,025
12,000 Ingles Markets Inc., Cl.
A 150,950 123,240
20,000 Neiman Marcus Group
Inc., Cl. A+ 629,298 1,073,400
------------ ------------
1,061,580 1,612,665
- -------------------------------------------------------------------
SATELLITE -- 0.6%
78,206 Hughes Electronics
Corp.+ 1,278,957 1,294,301
- -------------------------------------------------------------------
SPECIALTY CHEMICALS -- 2.0%
40,000 Ferro Corp. 813,581 1,088,400
20,000 Great Lakes Chemical
Corp. 504,191 543,800
2,000 Hawkins Inc. 15,000 27,920
95,000 Hercules Inc.+ 1,226,065 1,159,000
20,000 MacDermid Inc. 287,919 684,800
11,200 Material Sciences Corp.+ 100,389 113,232
100,000 Omnova Solutions Inc.+ 678,542 480,000
5,000 Quaker Chemical Corp. 87,062 153,750
------------ ------------
3,712,749 4,250,902
- -------------------------------------------------------------------
TELECOMMUNICATIONS -- 3.9%
40,000 AT&T Corp. 1,273,070 812,000
30,000 CenturyTel Inc. 822,178 978,600
330,000 Cincinnati Bell Inc.+ 2,493,938 1,666,500
140,000 Citizens Communications
Co.+ 1,583,525 1,738,800
250,000 Qwest Communications
International Inc.+ 875,990 1,080,000
35,000 SBC Communications Inc. 1,025,917 912,450
76,000 Sprint Corp.-FON Group 1,057,187 1,247,920
------------ ------------
9,131,805 8,436,270
- -------------------------------------------------------------------
WIRELESS COMMUNICATIONS -- 2.8%
170,000 AT&T Wireless Services
Inc.+ 1,407,348 1,358,300
30,000 Leap Wireless
International Inc.+ 8,400 990
95,000 mm02 plc, ADR+ 1,041,228 1,297,700
35,000 Price Communications
Corp.+ 520,488 480,550
7,500 Rogers Wireless
Communications Inc.,
Cl. B+ 86,303 160,500
</Table>
<Table>
<Caption>
- -------------------------------------------------------------------
Market
Shares Cost Value
- -------------------------------------------------------------------
150,000 Sprint Corp.-PCS Group+ $ 990,538 $ 843,000
6,000 Telephone & Data Systems
Inc. 251,190 375,300
30,000 United States Cellular
Corp.+ 944,739 1,065,000
20,000 Western Wireless Corp.,
Cl. A+ 60,000 367,200
------------ ------------
5,310,234 5,948,540
- -------------------------------------------------------------------
TOTAL COMMON STOCKS 161,989,283 197,675,246
- -------------------------------------------------------------------
<Caption>
PREFERRED STOCKS -- 0.7%
BROADCASTING -- 0.7%
48,747 News Corp. Ltd., Pfd.,
ADR $ 1,615,225 $ 1,474,599
- -------------------------------------------------------------------
<Caption>
RIGHTS -- 0.0%
EQUIPMENT AND SUPPLIES -- 0.0%
225,000 Fedders Corp. Rights+ $ 0 $ 13,500
- -------------------------------------------------------------------
<Caption>
U.S. GOVERNMENT OBLIGATIONS -- 5.6%
Principal Market
Amount Cost Value
- -------------------------------------------------------------------
$12,145,000 U.S. Treasury Bills,
0.822% to 0.956%++,
01/02/04 to 03/04/04 $ 12,137,114 $ 12,137,310
- -------------------------------------------------------------------
TOTAL INVESTMENTS -- 98.5% $175,741,622 211,300,655
OTHER ASSETS AND LIABILITIES (NET) -- 1.5% 3,179,339
- -------------------------------------------------------------------
NET ASSETS -- 100.0% $214,479,994
- -------------------------------------------------------------------
For Federal tax purposes:
Aggregate cost $180,859,498
------------
Gross unrealized appreciation $ 37,899,755
Gross unrealized depreciation (7,458,598)
------------
Net unrealized appreciation $ 30,441,157
============
- -------------------------------------------------------------------
</Table>
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
GLOSSARY OF TERMS:
ADR -- American Depository Receipt.
CVO -- Contingent Value Obligation.
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
7
/ / Gabelli Capital Asset Fund
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2003
- ------------------------------------------------------------
STATEMENT OF OPERATIONS
Year Ended
December 31, 2003
- ------------------------------------------------------------
<Table>
ASSETS
Investments, at value (Cost $175,741,622) $211,300,655
Cash 732
Dividends receivable 206,799
Receivable for investments sold 4,309,262
Receivable for Fund shares sold 101,734
Other assets 11,046
------------
TOTAL ASSETS 215,930,228
------------
LIABILITIES:
Payable for Fund shares redeemed 45,261
Payable for investments purchased 1,141,511
Payable for investment advisory fees 176,135
Other accrued expenses 87,327
------------
TOTAL LIABILITIES 1,450,234
------------
NET ASSETS applicable to 13,043,543 shares
outstanding $214,479,994
============
NET ASSETS CONSIST OF:
Capital stock, at par value 13,044
Additional paid-in capital 183,823,560
Accumulated net realized loss on investments (4,915,642)
Net unrealized appreciation on investments 35,559,032
------------
TOTAL NET ASSETS $214,479,994
============
NET ASSET VALUE, offering and redemption
price per share ($214,479,994 /
13,043,543 shares outstanding;
500,000,000 shares authorized of $0.001
par value) $ 16.44
============
</Table>
<Table>
INVESTMENT INCOME:
Dividends (net of foreign taxes of $10,903) $ 2,102,825
Interest 35,421
-----------
Total Investment Income 2,138,246
-----------
EXPENSES:
Management fees 1,729,402
Custodian fees 56,246
Legal and audit fees 47,316
Directors' fees 24,028
Shareholder services fees 11,643
Miscellaneous expenses 48,292
-----------
Total Expenses 1,916,927
-----------
NET INVESTMENT INCOME 221,319
-----------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Net realized gain on investments 1,712,646
Net change in unrealized
appreciation/depreciation on investments 51,807,823
-----------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS 53,520,469
-----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $53,741,788
===========
</Table>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
8
/ / Gabelli Capital Asset Fund
STATEMENT OF CHANGES IN NET ASSETS
<Table>
<Caption>
YEAR ENDED DECEMBER 31,
------------------------------------
2003 2002
------------ ------------
OPERATIONS:
Net investment income $ 221,319 $ 363,082
Net realized gain/(loss) on investments 1,712,646 (4,036,759)
Net change in unrealized appreciation/depreciation on
investments 51,807,823 (26,863,133)
------------ ------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS 53,741,788 (30,536,810)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income (217,324) (363,739)
Net realized gain on investments (191,297) (66,467)
------------ ------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (408,621) (430,206)
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Net increase/(decrease) in net assets from capital share
transactions 2,316,212 (3,352,410)
------------ ------------
NET INCREASE/(DECREASE) IN NET ASSETS 55,649,379 (34,319,426)
NET ASSETS:
Beginning of period 158,830,615 193,150,041
------------ ------------
End of period $214,479,994 $158,830,615
============ ============
</Table>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
9
/ / Gabelli Capital Asset Fund
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
NOTE A. ORGANIZATION
The Gabelli Capital Asset Fund (the "Fund"), a series of Gabelli Capital
Series Funds, Inc. (the "Company"), which was organized on April 8, 1993 as a
Maryland corporation. The Company is a diversified, open-end management
investment company registered under the Investment Company Act of 1940, as
amended. The Fund's primary objective is growth of capital. The Fund commenced
investment operations on May 1, 1995. Shares of the Fund are available to the
public only through the purchase of certain variable annuity and variable life
insurance contracts issued by The Guardian Insurance & Annuity Company, Inc.
("Guardian") and other selected insurance companies.
NOTE B. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in accordance with accounting
principles generally accepted in the United States requires management to make
estimates and assumptions that affect the reported amounts and disclosures in
the financial statements. Actual results could differ from those estimates. The
following is a summary of significant accounting policies followed by the Fund
in the preparation of its financial statements.
Security Valuation
Portfolio securities listed or traded on a nationally recognized securities
exchange or traded in the U.S. over-the-counter market for which market
quotations are readily available are valued at the last quoted sale price or a
market's official closing price as of the close of business on the day the
securities are being valued. If there were no sales that day, the security is
valued at the average of the closing bid and asked prices or, if there were no
asked prices quoted on that day, then the security is valued at the closing bid
price on that day. If no bid or asked prices are quoted on such day, the
security is valued at the most recently available price or, if the Board of
Directors so determines, by such other method as the Board of Directors shall
determine in good faith, to reflect its fair market value. Portfolio securities
traded on more than one national securities exchange or market are valued
according to the broadest and most representative market, as determined by
Gabelli Funds, LLC (the "Adviser"). Portfolio securities primarily traded on
foreign markets are generally valued at the preceding closing values of such
securities on their respective exchanges. Securities and assets for which market
quotations are not readily available are valued at their fair value as
determined in good faith under procedures established by and under the general
supervision of the Board of Directors. Short term debt securities with remaining
maturities of 60 days or less are valued at amortized cost, unless the Board of
Directors determine such does not reflect the securities fair value, in which
case these securities will be valued at their fair value as determined by the
Directors. Debt instruments having a maturity greater than 60 days for which
market quotations are readily available are valued at the latest average of the
bid and asked prices. If there were no asked prices quoted on such day, the
security is valued using the closing bid price. Options are valued at the last
sale price on the exchange on which they are listed. If no sales of such options
have taken place that day, they will be valued at the mean between their closing
bid and asked prices.
Securities Transactions and Investment Income
Securities transactions are accounted for on the trade date with realized
gain or loss on the sale of investments determined by using the identified cost
method. Interest income (including amortization of premium and accretion of
discount) is recorded as earned. Dividend income is recorded on the ex-dividend
date.
Dividends and Distributions to Shareholders
Dividends and distributions to shareholders are recorded on the ex-dividend
date. Income and long term capital gain distributions are determined in
accordance with federal income tax regulations, which may differ from accounting
principles generally accepted in the United States. These differences are
primarily due to differing treatments of income and gains on various investment
securities held by the Fund, timing differences and differing characterization
of distributions made by the Fund.
For the year ended December 31, 2003, reclassifications were made to
decrease accumulated net investment income for $3,995, with an offsetting
adjustment to accumulated net realized loss on investments.
10
The tax character of distributions paid during the fiscal years ended
December 31, 2003 and 2002 were as follows:
<Table>
<Caption>
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
2003 2002
------------ ------------
Distributions paid from:
Ordinary income (inclusive
of short term capital
gains) $207,052 $414,298
Net long term capital
gains 201,569 15,908
-------- --------
Total Taxable
Distributions: $408,621 $430,206
======== ========
</Table>
Provision for Income Taxes
The Fund intends to continue to qualify as a regulated investment company
under Subchapter M of the Internal Revenue Code of 1986, as amended. It is the
Fund's policy to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute substantially all
of its net investment company taxable income and net capital gains. Therefore,
no provision for Federal income taxes is required.
As of December 31, 2003, the components of accumulated earnings/(losses) on
a tax basis were as follows:
<Table>
Accumulated net gain on investments $ 202,233
Net unrealized appreciation 30,441,157
-----------
Total accumulated earnings $30,643,390
===========
</Table>
The difference between book basis and tax basis unrealized appreciation is
attributable primarily to the tax deferral of losses on wash sales. For the year
ended December 31, 2003, the Fund deducted net capital losses carryovers from
prior years against its current year capital gains in the amount of $3,125,346.
NOTE C. AGREEMENTS WITH AFFILIATED PARTIES
Pursuant to a management agreement (the "Management Agreement"), the Fund
will pay Guardian Investor Services LLC (the "Manager") a fee, computed daily
and paid monthly, at the annual rate of 1.00% of the value of the Fund's average
daily net assets. Pursuant to an Investment Advisory Agreement among the Fund,
the Manager and the Adviser, the Adviser, under the supervision of the Company's
Board of Directors and the Manager, manages the Fund's assets in accordance with
the Fund's investment objectives and policies, makes investment decisions for
the Fund, places purchase and sale orders on behalf of the Fund, provides
investment research and provides facilities and personnel required for the
Fund's administrative needs. The Adviser may delegate its administrative role
and currently has done so to PFPC Inc., the Fund's sub-administrator (the
"Sub-Administrator"). The Adviser will supervise the performance of
administrative and professional services provided by others and pays the
compensation of the Sub-Administrator and all officers and Directors of the
Company who are its affiliates. As compensation for its services and the related
expenses borne by the Adviser, the Manager pays the Adviser a fee, computed
daily and paid monthly, at the annual rate of 0.75% of the value of the Fund's
average daily net assets.
NOTE D. PORTFOLIO SECURITIES
Purchases and proceeds from the sales of securities for the year ended
December 31, 2003, other than short term securities, aggregated $66,477,440 and
$72,942,439, respectively.
NOTE E. TRANSACTIONS WITH AFFILIATES
During the year ended December 31, 2003, the Fund paid brokerage
commissions of $208,502 to Gabelli & Company, Inc. and its affiliates.
The cost of calculating the Fund's net asset value per share is a Fund
expense pursuant to the Investment Advisory Agreement between the Fund and
Gabelli Funds, LLC (the "Adviser"). During fiscal 2003, the Fund reimbursed the
Adviser $34,800 in connection with the cost of computing the Fund's net asset
value, which is included in miscellaneous expense in the Statement of
Operations.
NOTE F. LINE OF CREDIT
The Fund has access to an unsecured line of credit up to $25,000,000 from
the custodian for temporary borrowing purposes. Borrowings under this
arrangement bear interest at 0.75% above the Federal Funds rate on outstanding
balances. There were no borrowings outstanding at December 31, 2003.
The average daily amount of borrowings outstanding within the year ended
December 31, 2003 was $225,808, with a related weighted interest rate of 2.04%.
The maximum amount borrowed at any time during the year ended December 31, 2003
was $3,130,000.
NOTE G. CAPITAL STOCK TRANSACTIONS
Transactions in shares of capital stock were as follows:
<Table>
<Caption>
YEAR ENDED YEAR ENDED
DECEMBER 31, 2003 DECEMBER 31, 2002
------------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
Shares sold 1,931,106 $ 27,715,553 2,556,216 $ 34,683,501
Shares issued upon reinvestment of
dividends 24,795 408,621 35,582 430,206
Shares redeemed (1,972,341) (25,807,962) (3,104,668) (38,466,117)
---------- ------------ ---------- ------------
Net increase (decrease) (16,440) $ 2,316,212 (512,870) $ (3,352,410)
========== ============ ========== ============
</Table>
11
/ / Gabelli Capital Asset Fund
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT THE PERIODS
INDICATED:
<Table>
<Caption>
YEAR ENDED DECEMBER 31,
----------------------------------------------------
2003 2002 2001 2000 1999
----------------------------------------------------
OPERATING PERFORMANCE:
Net asset value, beginning of period....... $ 12.16 $ 14.23 $ 14.71 $ 17.48 $ 16.20
-------- -------- -------- -------- --------
Net investment income...................... 0.02 0.03 0.07 0.04 0.02
Net realized and unrealized gain/(loss) on
investments.............................. 4.29 (2.07) 0.31 0.87 3.15
-------- -------- -------- -------- --------
Total from investment operations........... 4.31 (2.04) 0.38 0.91 3.17
-------- -------- -------- -------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income...................... (0.02) (0.03) (0.08) (0.04) (0.02)
Net realized gain on investments........... (0.01) (0.00)(b) (0.78) (3.64) (1.87)
-------- -------- -------- -------- --------
Total distributions........................ (0.03) (0.03) (0.86) (3.68) (1.89)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD............... $ 16.44 $ 12.16 $ 14.23 $ 14.71 $ 17.48
-------- -------- -------- -------- --------
TOTAL RETURN+................................ 35.5% (14.3)% 2.6% 5.6% 19.8%
-------- -------- -------- -------- --------
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL
DATA:
Net assets, end of period (in 000's)....... $214,480 $158,831 $193,150 $155,870 $176,086
Ratio of net investment income to average
net assets............................... 0.13% 0.20% 0.54% 0.18% 0.13%
Ratio of operating expenses to average net
assets(a)................................ 1.11% 1.12% 1.09% 1.09% 1.08%
Portfolio turnover rate.................... 39% 19% 29% 64% 54%
</Table>
+ Total return represents aggregate total return of a hypothetical $1,000
investment at the beginning of the period and sold at the end of the period
including reinvestment of dividends.
(a) The Fund incurred interest expense during the year ended December 31, 2000.
If interest expense had not been incurred, the ratio of operating expenses
to average net assets would have been 1.08%.
(b) Amount represents less than $0.005 per share.
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
12
Report of Ernst & Young LLP,
Independent Auditors
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS OF
GABELLI CAPITAL ASSET FUND
(A SERIES OF GABELLI CAPITAL SERIES FUNDS, INC.)
We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments, of the Gabelli Capital Asset Fund (the
"Fund") (a series of Gabelli Capital Series Fund, Inc.) as of December 31, 2003,
and the related statement of operations for the year then ended, the statements
of changes in net assets for each of the two years in the period then ended, and
the financial highlights for each of the five years in the period then ended.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of December 31, 2003, by correspondence with
the custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Gabelli Capital Asset Fund at December 31, 2003, and the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the five years in the period then ended, in conformity with accounting
principles generally accepted in the United States.
[Ernest & Young SIG]
New York, New York
February 10, 2004
13
/ / Gabelli Capital Asset Fund
ADDITIONAL FUND INFORMATION (UNAUDITED)
The business and affairs of the Fund are managed under the direction of the
Fund's Board of Directors. Information pertaining to the Directors and Officers
of the Fund is set forth below. The Fund's Statement of Additional Information
includes additional information about Gabelli Capital Series Funds, Inc.
Directors and is available without charge, upon request, by writing to Gabelli
Capital Series Funds, Inc. at One Corporate Center, Rye, NY 10580.
<Table>
<Caption>
- --------------------------------------------------------------------------------------------------------------------------
TERM OF NUMBER OF
OFFICE AND FUNDS IN
LENGTH OF FUND COMPLEX
NAME, POSITION(S) TIME OVERSEEN BY PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIP
ADDRESS(1) AND AGE SERVED(2) DIRECTOR DURING PAST FIVE YEARS HELD BY DIRECTOR
- --------------------------------------------------------------------------------------------------------------------------
INTERESTED DIRECTORS:(3)
Mario J. Gabelli Since 1995 24 Chairman of the Board and Chief Director of Morgan Group
Director, President and Executive Officer of Gabelli Holdings, Inc. (holding company);
Chief Investment Officer Asset Management Inc. and Chief Vice Chairman of Lynch
Age: 61 Investment Officer of Gabelli Corporation (diversified
Funds, LLC and GAMCO Investors, manufacturing)
Inc.; Vice Chairman and Chief
Executive Officer of Lynch
Interactive Corporation
(multimedia and services)
Arthur V. Ferrara Since 1995 9 Formerly, Chairman of the Board Director of The Guardian Life
Director and Chief Executive Officer of Insurance Company of America;
Age: 73 The Guardian Life Insurance Director of The Guardian
Company of America from January Insurance & Annuity Company, Inc.
1993 to December 1995; President, Guardian Investor Services LLC,
Chief Executive Officer and and 5 mutual funds within the
Director prior thereto Guardian Fund Complex
Karl Otto Pohl Since 1995 33 Member of the Shareholder Director of Gabelli Asset
Director Committee of Sal Oppenheim Jr. & Management Inc. (investment
Age: 74 Cie (private investment bank); management); Chairman, Incentive
Former President of the Deutsche Capital and Incentive Asset
Bundesbank and Chairman of its Management (Zurich); Director at
Central Bank Council (1980-1991) Sal Oppenheim, Jr. & Cie, Zurich
</Table>
14
<Table>
<Caption>
- --------------------------------------------------------------------------------------------------------------------------
TERM OF NUMBER OF
OFFICE AND FUNDS IN
LENGTH OF FUND COMPLEX
NAME, POSITION(S) TIME OVERSEEN BY PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIP
ADDRESS(1) AND AGE SERVED(2) DIRECTOR DURING PAST FIVE YEARS HELD BY DIRECTOR
- --------------------------------------------------------------------------------------------------------------------------
NON-INTERESTED DIRECTORS:
Anthony J. Colavita Since 1995 35 President and Attorney at Law at
Director the law firm of Anthony J.
Age: 68 Colavita, P.C.
Anthony R. Pustorino Since 1995 17 Certified Public Accountant; Director of Lynch Corp.
Director Professor Emeritus, Pace (diversified manufacturing)
Age: 78 University
Werner J. Roeder, MD Since 1995 26 Vice President/Medical Affairs,
Director Lawrence Hospital Center and
Age: 63 practicing private physician
Anthonie C. van Ekris Since 1995 20 Managing Director of BALMAC Director of Aurado Exploration,
Director International, Inc. (commodities) Inc. (oil and gas operations)
Age: 69
OFFICERS:
Bruce N. Alpert Since 1995 -- Executive Vice President and
President Chief Operating Officer of
Age: 52 Gabelli Funds, LLC since 1988 and
an officer of all mutual funds
advised by Gabelli Funds, LLC and
its affiliates. Director and
President of Gabelli Advisers,
Inc.
James E. McKee Since 1995 -- Vice President, General Counsel
Secretary and Secretary of Gabelli Asset
Age: 40 Management Inc. since 1999 and
GAMCO Investors Inc. since 1993;
Secretary of all mutual funds
advised by Gabelli Advisers, Inc.
and Gabelli Funds, LLC
</Table>
- ---------------
1 Address: One Corporate Center, Rye, NY 10580, unless otherwise noted.
2 Each Director will hold office for an indefinite term until the earliest of
(i) the next meeting of shareholders, if any, called for the purpose of
considering the election or re-election of such Director and until the
election and qualification of his or her successor, if any, elected at such
meeting, or (ii) the date a Director resigns or retires, or a Director is
removed by the Board of Directors or shareholders, in accordance with the
Fund's Amended and Restated By-Laws and Articles of Amendment and Restatement.
3 "Interested person" of the Fund as defined in the Investment Company Act of
1940. Messrs. Gabelli and Pohl are each considered an "interested person"
because of their affiliation with Gabelli Funds, LLC which acts as the Fund's
investment adviser. Mr. Ferrara is considered an interested person because of
his affiliation with The Guardian Life Insurance Company of America, which is
the parent company of the Fund's Manager.
15
ITEM 2. CODE OF ETHICS.
(a) The registrant, as of the end of the period covered by this report,
has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal
accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by
the registrant or a third party.
(b) No response required.
(c) There have been no amendments, during the period covered by this
report, to a provision of the code of ethics that applies to the
registrant's principal executive officer, principal financial
officer, principal accounting officer or controller, or persons
performing similar functions, regardless of whether these
individuals are employed by the registrant or a third party, and
that relates to any element of the code of ethics description.
(d) The registrant has not granted any waivers, including an implicit
waiver, from a provision of the code of ethics that applies to the
registrant's principal executive officer, principal financial
officer, principal accounting officer or controller, or persons
performing similar functions, regardless of whether these
individuals are employed by the registrant or a third party, that
relates to one or more of the items set forth in paragraph (b) of
this item's instructions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
As of the end of the period covered by the report, the registrant's board of
directors has determined that Anthony R. Pustorino is qualified to serve as an
audit committee financial expert serving on its audit committee and that he is
"independent," as defined by this Item 3.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) AUDIT FEES: The aggregate fees billed for each of the last two
fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial
statements or services that are normally provided by the accountant
in connection with statutory and regulatory filings or engagements
for those fiscal years are $33,000 in 2003 and $33,000 in 2002.
(b) AUDIT-RELATED FEES: The aggregate fees billed in each of the last
two fiscal years for assurance and related services by the principal
accountant that are reasonably related to the performance of the
audit of the registrant's financial statements and are not reported
under paragraph (a) of this Item are $0 in 2003 and $0 in 2002.
(c) TAX FEES: The aggregate fees billed in each of the last two fiscal
years for professional services rendered by the principal accountant
for tax compliance, tax advice, and tax planning are $3,400 in 2003
and $3,250 in 2002.
Tax fees represent tax compliance services provided in connection
with the review of the Registrant's tax returns.
(d) ALL OTHER FEES: The aggregate fees billed in each of the last two
fiscal years for products and services provided by the principal
accountant, other than the services reported in paragraphs (a)
through (c) of this Item are $0 in 2003 and $0 in 2002.
(e)(1) Disclose the audit committee's pre-approval policies and
procedures described in paragraph (c)(7) of Rule 2-01 of
Regulation S-X.
Pre-Approval Policies and Procedures. The Audit Committee
("Committee") of the registrant is responsible for
pre-approving (i) all audit and permissible non-audit services
to be provided by the independent auditors to the registrant
and (ii) all permissible non-audit services to be provided by
the independent auditors to Gabelli and any affiliate of
Gabelli that provides services to the registrant (a "Covered
Services Provider") if the independent auditors' engagement
relates directly to the operations and financial reporting of
the registrant. The Committee may delegate its responsibility
to pre-approve any such audit and permissible non-audit
services to the Chairperson of the Committee, and the
Chairperson must report to the Committee, at its next
regularly scheduled meeting after the Chairperson's
pre-approval of such services, his or her decision(s). The
Committee may also establish detailed pre-approval policies
and procedures for pre-approval of such services in accordance
with applicable laws, including the delegation of some or all
of the Committee's pre-approval responsibilities to other
persons (other than Gabelli or the registrant's officers).
Pre-approval by the Committee of any permissible non-audit
services is not required so long as: (i) the aggregate amount
of all such permissible non-audit services provided to the
registrant, Gabelli and any Covered Services Provider
constitutes not more than 5% of the total amount of revenues
paid by the registrant to its independent auditors during the
fiscal year in which the permissible non-audit services are
provided; (ii) the permissible non-audit services were not
recognized by the registrant at the time of the engagement to
be non-audit services; and (iii) such services are promptly
brought to the attention of the Committee and approved by the
Committee or the Chairperson prior to the completion of the
audit.
(e)(2) The percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit
committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of
Regulation S-X are as follows:
(b) N/A
(c) 100%
(d) N/A
(f) The percentage of hours expended on the principal accountant's
engagement to audit the registrant's financial statements for the
most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent
employees was zero percent (0%).
(g) The aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the
registrant's investment adviser (not including any sub-adviser whose
role is primarily portfolio management and is subcontracted with or
overseen by another investment adviser), and any entity controlling,
controlled by, or under common control with the adviser that
provides ongoing services to the registrant for each of the last two
fiscal years of the registrant was $62,400 in 2003 and $65,750 in
2002.
(h) The registrant's audit committee of the board of directors HAS
considered whether the provision of non-audit services that were
rendered to the registrant's investment adviser (not including any
sub-adviser whose role is primarily portfolio management and is
subcontracted with or overseen by another investment adviser), and
any entity controlling, controlled by, or under common control with
the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with
maintaining the principal accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not yet applicable.
ITEM 10. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial
officers, or persons performing similar functions, have concluded
that the registrant's disclosure controls and procedures (as defined
in Rule 30a-3(c) under the Investment Company Act of 1940, as
amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of
a date within 90 days of the filing date of the report that includes
the disclosure required by this paragraph, based on their evaluation
of these controls and procedures required by Rule 30a-3(b) under the
1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b)
under the Securities Exchange Act of 1934, as amended (17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the registrant's last
fiscal half-year (the registrant's second fiscal half-year in the
case of an annual report) that has materially affected, or is
reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 11. EXHIBITS.
(a)(1) Code of ethics, or any amendment thereto, that is the subject of
disclosure required by Item 2 is attached hereto.
(a)(2) Certifications pursuant to Rule 30a-2(a) of the Investment Company
Act of 1940, as amended, are attached hereto.
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) of the Investment Company
Act of 1940, as amended, are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) Gabelli Capital Series Funds, Inc.
--------------------------------------------------------------------
By (Signature and Title)* /s/ Bruce N. Alpert
-------------------------------------------------------
Bruce N. Alpert, Principal Executive Officer
Date March 9, 2004
----------------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Bruce N. Alpert
-------------------------------------------------------
Bruce N. Alpert, Principal Executive Officer and
Principal Financial Officer
Date March 9, 2004
--------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.