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
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Gabelli Capital Series Funds, Inc.
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(Exact name of registrant as specified in charter)
One Corporate Center,
Rye, New York 10580-1422
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(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center,
Rye, New York 10580-1422
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(Name and address of agent for service)
registrant's telephone number, including area code: 1-800-422-3554
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Date of fiscal year end: December 31, 2003
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Date of reporting period: June 30, 2003
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
Item 1. Reports to Stockholders.
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Gabelli Capital Asset Fund
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Portfolio of Investments
June 30, 2003 (Unaudited)
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Common Stocks -- 98.8%
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Market
Shares Cost Value
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Agriculture -- 1.3%
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170,000 Archer-Daniels-Midland Co. $ 2,025,575 $ 2,187,900
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Automotive -- 0.1%
5,000 General Motors Corp. 215,450 180,000
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Automotive: Parts and Accessories -- 4.1%
11,000 BorgWarner Inc. 548,038 708,400
30,000 CLARCOR Inc. 568,183 1,156,500
135,000 Dana Corp. 2,386,037 1,560,600
95,000 GenCorp Inc. 884,960 844,550
65,000 Modine Manufacturing Co. 2,115,587 1,259,050
68,000 Scheib (Earl) Inc.+ 426,621 186,660
45,000 Standard Motor Products Inc. 956,300 499,500
8,000 Superior Industries
International Inc. 208,557 333,600
45,000 Tenneco Automotive Inc.+ 330,020 162,000
34,300 TransPro Inc.+ 216,824 153,664
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8,641,127 6,864,524
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Aviation: Parts and Services -- 2.6%
6,000 AAR Corp.+ 85,746 42,360
27,000 Barnes Group Inc. 517,834 587,520
14,662 Curtiss-Wright Corp., Cl. B 763,086 913,443
105,500 Fairchild Corp., Cl. A+ 695,111 425,165
50,000 Kaman Corp., Cl. A 652,719 584,500
20,000 Moog Inc., Cl. A+ 384,283 695,000
30,000 Sequa Corp., Cl. A+ 1,048,824 1,029,000
2,000 Sequa Corp., Cl. B+ 99,299 82,720
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4,246,902 4,359,708
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Broadcasting -- 5.5%
34,500 Fisher Communications Inc.+ 2,118,303 1,687,395
130,000 Granite Broadcasting Corp.+ 811,711 397,800
212,000 Gray Television Inc. 2,206,808 2,628,800
52,000 Grupo Televisa SA, ADR 1,949,217 1,794,000
50,000 Liberty Corp. 2,401,567 2,125,000
40,000 Paxson Communications
Corp.+ 385,178 239,600
17,000 Young Broadcasting Inc.,
Cl. A+ 334,600 359,210
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10,207,384 9,231,805
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Business Services -- 1.5%
100,000 Cendant Corp.+ 1,415,716 1,832,000
71,500 Nashua Corp.+ 624,923 636,350
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2,040,639 2,468,350
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Cable -- 3.4%
5,000 Adelphia Communications
Corp., Cl. A+ 5,250 1,360
255,000 Cablevision Systems Corp.,
Cl. A+ 2,570,316 5,293,800
80,000 UnitedGlobalCom Inc., Cl. A+ 432,979 413,600
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3,008,545 5,708,760
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Communications Equipment -- 1.5%
235,000 Corning Inc.+ 1,859,030 1,736,650
75,000 Lucent Technologies Inc.+ 359,333 152,250
50,000 Motorola Inc. 557,233 471,500
65,000 Nortel Networks Corp.+ 337,500 175,500
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3,113,096 2,535,900
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Computer Software and Services -- 1.0%
80,000 EMC Corp.+ 1,160,420 837,600
3,000 J.D. Edwards & Co.+ 39,694 42,990
21,000 PeopleSoft Inc.+ 377,725 369,390
5,000 Veridian Corp.+ 173,700 174,450
153,600 Xanser Corp.+ 502,113 330,240
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2,253,652 1,754,670
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Consumer Products -- 3.2%
8,000 Alberto-Culver Co., Cl. B 370,976 408,800
2,000 Fortune Brands Inc. 80,080 104,400
35,000 Gallaher Group plc, ADR 845,494 1,386,000
25,000 Gillette Co. 764,346 796,500
35,000 National Presto Industries Inc. 1,221,215 1,106,000
12,000 Procter & Gamble Co. 762,584 1,070,160
5,000 Sony Corp., ADR 142,892 140,000
50,000 Weider Nutrition International
Inc.+ 112,870 113,000
5,000 Wolverine World Wide Inc. 75,650 96,300
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4,376,107 5,221,160
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Consumer Services -- 2.4%
20,000 InterActiveCorp+ 154,375 791,400
170,000 Rollins Inc. 2,001,838 3,204,500
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2,156,213 3,995,900
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Diversified Industrial -- 4.7%
43,000 Ampco-Pittsburgh Corp. 673,519 576,200
44,000 Baldor Electric Co. 940,017 906,400
50,000 Cooper Industries Ltd., Cl. A 2,279,267 2,065,000
30,000 Crane Co. 623,766 678,900
25,000 GATX Corp. 874,865 408,750
10,000 Greif Inc., Cl. A 278,969 230,000
13,500 Harbor Global Co. Ltd.+ 31,716 101,250
10,000 Honeywell International Inc. 207,700 268,500
73,600 Katy Industries Inc.+ 968,000 359,168
80,000 Myers Industries Inc. 752,751 760,000
70,000 Sensient Technologies Corp. 1,321,921 1,609,300
19,000 WHX Corp.+ 104,092 39,900
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9,056,583 8,003,368
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Electronics -- 1.4%
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35,000 Agere Systems Inc., Cl. B+ 83,825 80,500
65,000 Texas Instruments Inc. 1,602,240 1,144,000
75,000 Thomas & Betts Corp.+ 1,375,461 1,083,750
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3,061,526 2,308,250
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See accompanying notes to financial statements.
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124
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Market
Shares Cost Value
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Energy and Utilities -- 4.8%
16,369 ConocoPhillips $ 973,243 $ 897,021
6,000 Devon Energy Corp. 287,172 320,400
70,000 DQE Inc. 1,060,298 1,054,900
105,000 El Paso Corp. 1,581,994 848,400
110,000 El Paso Electric Co.+ 988,418 1,356,300
15,000 Exxon Mobil Corp. 495,749 538,650
4,666 Florida Public Utilities Co. 55,292 76,289
30,000 Kerr-McGee Corp. 1,609,051 1,344,000
15,000 Mirant Corp.+ 145,050 43,500
60,000 Northeast Utilities 1,151,948 1,004,400
17,000 Progress Energy Inc., CVO+ 7,800 1,785
10,000 SEMCO Energy Inc. 96,767 58,200
31,000 Southwest Gas Corp. 755,588 656,580
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9,208,370 8,200,425
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Entertainment -- 9.4%
100,000 AOL Time Warner Inc.+ 1,745,918 1,609,000
35,000 Dover Motorsports Inc. 222,318 143,500
70,000 Fox Entertainment Group Inc.,
Cl. A+ 1,745,087 2,014,600
6,000 GC Companies Inc.+ 12,120 900
150,000 Gemstar-TV Guide
International Inc.+ 1,155,200 763,500
330,000 Liberty Media Corp., Cl. A+ 1,571,714 3,814,800
100,000 Metro-Goldwyn-Mayer Inc.+ 1,428,013 1,242,000
125,000 The Walt Disney Co. 2,664,559 2,468,750
22,000 Topps Co. Inc.+ 195,925 188,980
50,000 Viacom Inc., Cl. A+ 906,108 2,185,000
77,000 Vivendi Universal SA, ADR+ 1,393,454 1,419,880
10,000 World Wrestling
Entertainment Inc. 108,994 102,900
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13,149,410 15,953,810
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Environmental Services -- 1.0%
75,000 Allied Waste Industries Inc.+ 708,062 753,750
10,000 Catalytica Energy Systems
Inc.+ 64,527 27,000
40,000 Waste Management Inc. 725,561 963,600
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1,498,150 1,744,350
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Equipment and Supplies -- 7.4%
38,000 AMETEK Inc. 765,217 1,392,700
20,000 Baldwin Technology Co. Inc.,
Cl. A+ 51,196 12,800
60,000 Belden Inc. 966,920 953,400
2,000 Capstone Turbine Corp.+ 2,800 2,180
7,000 CIRCOR International Inc. 73,502 124,810
100,000 CTS Corp. 1,102,936 1,045,000
16,000 Cuno Inc.+ 315,437 577,920
21,000 Eastern Co. 326,937 306,600
200,000 Fedders Corp. 999,986 614,000
50,000 Flowserve Corp.+ 681,978 983,500
21,000 Franklin Electric Co. Inc. 367,306 1,168,650
30,000 GrafTech International Ltd.+ 434,094 163,500
25,000 IDEX Corp. 649,162 906,000
3,000 Imagistics International Inc.+ 60,106 77,400
200,000 Interpump Group SpA 828,802 810,730
43,000 Navistar International Corp.+ 881,354 1,403,090
47,000 SPS Technologies Inc.+ 1,966,512 1,270,880
45,000 Watts Industries Inc., Cl. A 624,805 803,250
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11,099,050 12,616,410
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Financial Services -- 4.4%
8,000 Allstate Corp. 269,291 285,200
82,000 American Express Co. 2,811,691 3,428,420
66,000 Argonaut Group Inc. 1,666,305 813,780
10,000 Bank of New York Co. Inc. 332,387 287,500
15,000 BKF Capital Group Inc.+ 388,458 327,450
13,000 Deutsche Bank AG, ADR 797,893 837,460
120,000 J Net Enterprises Inc.+ 501,321 129,600
44,000 Midland Co. 318,783 977,240
8,000 Wachovia Corp. 229,125 319,680
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7,315,254 7,406,330
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Food and Beverage -- 8.8%
6,000 Allied Domecq plc, ADR 114,300 136,140
11,000 Brown-Forman Corp., Cl. A 526,976 885,500
35,000 Campbell Soup Co. 938,291 857,500
6,000 Coca-Cola Co. 300,882 278,460
60,000 Corn Products International
Inc. 1,491,142 1,801,800
52,029 Del Monte Foods Co.+ 458,537 459,936
55,000 Diageo plc, ADR 2,099,518 2,406,800
75,000 Flowers Foods Inc. 793,594 1,482,000
5,000 General Mills Inc. 201,390 237,050
72,000 Heinz (H.J.) Co. 2,670,208 2,374,560
35,000 Kellogg Co. 951,565 1,202,950
190,000 PepsiAmericas Inc. 2,587,238 2,386,400
21,854 Tootsie Roll Industries Inc. 351,017 666,329
60,000 Twinlab Corp.+ 144,933 13,800
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13,629,591 15,189,225
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Health Care -- 1.1%
2,000 DENTSPLY International Inc. 77,680 81,800
4,000 Henry Schein Inc.+ 202,390 209,360
5,000 Invitrogen Corp.+ 227,883 191,850
13,000 IVAX Corp.+ 146,900 232,050
3,000 Lilly (Eli) & Co. 170,550 206,910
2,000 Patterson Dental Co.+ 88,120 90,760
25,000 Pfizer Inc. 815,114 853,750
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1,728,637 1,866,480
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See accompanying notes to financial statements.
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125
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Gabelli Capital Asset Fund
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Portfolio of Investments
June 30, 2003 (Unaudited) (Continued)
Market
Shares Cost Value
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Hotels and Gaming -- 3.1%
70,000 Aztar Corp.+ $ 469,883 $ 1,127,700
35,000 Boca Resorts Inc., Cl. A+ 412,168 455,000
23,000 Dover Downs Gaming &
Entertainment Inc. 271,366 212,750
115,000 Gaylord Entertainment Co.+ 3,130,194 2,250,550
90,000 Hilton Hotels Corp. 707,015 1,151,100
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4,990,626 5,197,100
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Paper and Forest Products -- 0.4%
5,000 MeadWestvaco Corp. 105,119 123,500
30,000 Pactiv Corp.+ 286,555 591,300
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391,674 714,800
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Publishing -- 7.0%
6,000 Knight-Ridder Inc. 399,210 413,580
20,000 Lee Enterprises Inc. 537,934 750,600
22,000 McClatchy Co., Cl. A 637,731 1,267,640
77,000 Media General Inc., Cl. A 3,429,240 4,404,400
8,000 Meredith Corp. 171,362 352,000
153,600 Penton Media Inc.+ 453,316 90,624
320,000 PRIMEDIA Inc.+ 1,528,685 976,000
24,000 Pulitzer Inc. 799,187 1,186,080
70,000 Reader's Digest Association
Inc. 1,172,322 943,600
5,000 Scripps (E.W.) Co., Cl. A 377,750 443,600
78,000 Thomas Nelson Inc.+ 887,216 975,000
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10,393,953 11,803,124
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Real Estate -- 1.5%
15,000 Catellus Development Corp.+ 192,000 330,000
28,000 Chateau Communities Inc. 838,144 828,520
40,000 Griffin Land & Nurseries Inc.+ 563,663 552,200
70,000 RFS Hotel Investors Inc. 859,100 862,400
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2,452,907 2,573,120
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Retail -- 1.2%
15,000 Aaron Rents Inc., Cl. A 281,332 364,500
12,000 Ingles Markets Inc., Cl. A 150,950 121,200
55,000 Lillian Vernon Corp. + 809,167 397,650
30,000 Neiman Marcus Group Inc.,
Cl. A+ 956,121 1,098,000
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2,197,570 1,981,350
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Satellite -- 0.9%
120,000 General Motors Corp., Cl. H+ 2,335,691 1,537,200
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Specialty Chemicals -- 2.8%
40,000 Ferro Corp. 813,581 901,200
8,000 Fuller (H.B.) Co. 219,916 176,160
35,000 Great Lakes Chemical Corp. 1,027,914 714,000
2,000 Hawkins Inc. 15,000 20,040
142,000 Hercules Inc.+ 2,101,915 1,405,800
25,000 MacDermid Inc. 370,582 657,500
40,000 Material Sciences Corp.+ 395,297 388,000
81,500 Omnova Solutions Inc.+ 603,317 329,260
5,000 Quaker Chemical Corp. 87,063 125,250
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5,634,585 4,717,210
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Telecommunications -- 6.7%
37,000 AT&T Corp. 1,233,240 712,250
10,000 BellSouth Corp. 262,312 266,300
10,000 BT Group plc, ADR 382,029 336,600
45,000 CenturyTel Inc. 1,234,302 1,568,250
330,000 Cincinnati Bell Inc.+ 2,798,065 2,211,000
105,000 Citizens Communications
Co.+ 1,177,224 1,353,450
200,000 Qwest Communications
International Inc.+ 665,120 956,000
35,000 SBC Communications Inc. 1,069,062 894,250
138,000 Sprint Corp. - FON Group 2,430,000 1,987,200
12,000 Swisscom AG, ADR 353,279 340,080
18,000 Verizon Communications Inc. 597,003 710,100
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12,201,636 11,335,480
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Wireless Communications -- 5.6%
160,000 AT&T Wireless Services Inc.+ 1,611,289 1,313,600
30,000 Leap Wireless International
Inc.+ 8,400 1,500
95,000 mm02 plc, ADR+ 1,041,228 876,850
95,000 Nextel Communications Inc.,
Cl. A+ 1,489,705 1,717,600
40,000 Price Communications Corp.+ 609,914 516,400
90,000 Rogers Wireless
Communications Inc.,
Cl. B+ 1,221,345 1,521,000
110,000 Sprint Corp. - PCS Group+ 842,822 632,500
48,000 Telephone & Data Systems
Inc. 1,997,965 2,385,600
50,000 Western Wireless Corp.,
Cl. A+ 275,500 576,500
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9,098,168 9,541,550
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Total Common Stocks 161,728,071 167,198,259
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PREFERRED STOCKS -- 0.6%
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Broadcasting -- 0.6%
43,000 News Corp. Ltd., Pfd., ADR 1,456,380 1,077,150
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See accompanying notes to financial statements.
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126
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U.S. GOVERNMENT OBLIGATIONS -- 0.7%
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Principal Market
Amount Cost Value
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1,127,000 U.S. Treasury Bills,
0.848% to 1.075%++,
07/03/03 to 12/26/03 $ 1,125,755 1,125,778
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TOTAL INVESTMENTS -- 100.1% $164,310,206 169,401,187
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Other Assets and Liabilities (Net) -- (0.1)% (163,812)
NET ASSETS -- 100.0% $169,237,375
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For Federal tax purposes:
Aggregate cost $164,310,206
============
Gross unrealized appreciation $ 26,861,851
Gross unrealized depreciation (21,770,870)
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Net unrealized appreciation/(depreciation) $ 5,090,981
============
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR - American Depositary Receipt.
CVO - Contingent Value Obligation
See accompanying notes to financial statements.
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127
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Gabelli Capital Asset Fund
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Statement of Assets
and Liabilities
June 30, 2003 (Unaudited)
Assets:
Investments, at value (Cost $164,310,206) $ 169,401,187
Cash and foreign currency, at value
(Cost $831,401) 826,616
Dividends, interest and reclaims receivable 185,762
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Total Assets 170,413,565
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Liabilities:
Payable for investments purchased 971,695
Payable for investment advisory fees 140,071
Other accrued expenses 64,424
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Total Liabilities 1,176,190
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Net Assets applicable to 12,251,741 shares
outstanding $ 169,237,375
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Net Assets consist of:
Capital stock, at par value $ 12,252
Additional paid-in capital 172,037,060
Accumulated net investment income 172,132
Accumulated net realized loss on investments (8,073,567)
Net unrealized appreciation on investments 5,089,498
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Total Net Assets $ 169,237,375
=============
Net Asset Value, offering and redemption
price per share ($169,237,375 / 12,251,741
shares outstanding; 500,000,000 shares
authorized of $0.001 par value) $ 13.81
=============
Statement of Operations
For the Six Months Ended
June 30, 2003 (Unaudited)
Investment Income:
Dividends (net of foreign taxes of $9,209) $ 1,036,596
Interest 6,863
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Total Investment Income 1,043,459
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Expenses:
Management fees 776,365
Legal and audit fees 23,357
Custodian fees 21,733
Directors' fees 11,834
Shareholder services fees 5,372
Interest expense 5,645
Miscellaneous expenses 27,021
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Total Expenses 871,327
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Net Investment Income 172,132
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NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized loss on investments (1,632,581)
Net change in unrealized appreciation
(depreciation) on investments 21,338,289
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Net Realized and Unrealized Gain
on Investments 19,705,708
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NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 19,877,840
=============
See accompanying notes to financial statements.
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128
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Statement of Changes in Net Assets
Six Months
Ended Year Ended
June 30, 2003 December 31,
(Unaudited) 2002
------------- -------------
Operations:
Net investment income $ 172,132 $ 363,082
Net realized loss on investments (1,632,581) (4,036,759)
Net change in unrealized appreciation (depreciation) on investments 21,338,289 (26,863,133)
------------- -------------
Net increase (decrease) in net assets resulting from operations 19,877,840 (30,536,810)
------------- -------------
Distributions to shareholders:
Net investment income -- (363,739)
Net realized gain on investments -- (66,467)
------------- -------------
Total distributions to shareholders -- (430,206)
------------- -------------
Capital share transactions:
Net decrease in net assets from capital share transactions (9,471,080) (3,352,410)
------------- -------------
Net increase (decrease) in net assets 10,406,760 (34,319,426)
Net Assets:
Beginning of period 158,830,615 193,150,041
------------- -------------
End of period $ 169,237,375 $ 158,830,615
============= =============
See accompanying notes to financial statements.
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129
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Gabelli Capital Asset Fund
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Notes to Financial Statements
June 30, 2003 (Unaudited)
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1. Organization
- ---------------
The Gabelli Capital Asset Fund (the "Fund"), a series of Gabelli Capital
Series Funds, Inc. (the "Company"), 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.
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2. Significant Accounting Policies
- ----------------------------------
The preparation of financial statements in accordance with accounting
principles generally accepted in the United States requires management to make
estimates and assumptions that affect the reported amounts and disclosures in
the financial statements. Actual results could differ from those estimates. The
following is a summary of significant accounting policies followed by the Fund
in the preparation of its financial statements.
Security Valuation.
Portfolio securities listed or traded on a nationally recognized
securities exchange or traded in the U.S. over-the-counter market for which
market quotations are readily available are valued at the last quoted sale price
or a market's official closing price as of the close of business on the day the
securities are being valued. If there were no sales that day, the security is
valued at the average of the closing bid and asked prices or, if there were no
asked prices quoted on that day, then the security is valued at the closing bid
price on that day. If no bid or asked prices are quoted on such day, the
security is valued at the most recently available price or, if the Board of
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.
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130
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Notes to Financial Statements
June 30, 2003 (Unaudited) (continued)
Provision for Income Taxes.
The Fund has qualified and intends to continue to qualify as a regulated
investment company under Subchapter M of the Internal Revenue Code of 1986, as
amended. As a result, a Federal income tax provision is not required.
The Fund has a net capital loss carryforward for Federal income tax
purposes at December 31, 2002 of $3,125,346. The capital loss carryforward is
available to reduce future distributions of net capital gains to shareholders
through 2010.
- -------------------------------------
3. 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.
- -----------------------
4. Portfolio Securities
- -----------------------
Purchases and proceeds from the sales of securities for the six months
ended June 30, 2003, other than short term securities, aggregated $13,409,805
and $21,949,279, respectively.
- -------------------------------
5. Transactions with Affiliates
- -------------------------------
During the six months ended June 30, 2003, the Fund paid brokerage
commissions of $49,488 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 among the Fund, the
Manager and the Adviser. During the six months ended June 30, 2003, the Fund
reimbursed the Adviser $17,263 in connection with the cost of computing the
Fund's net asset value.
- ------------------
6. 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 June 30, 2003.
The average daily amount of borrowings outstanding within the six months
ended June 30, 2003 was $455,359, with a related weighted interest rate of
2.04%. The maximum amount borrowed at any time during the six months ended June
30, 2003 was $3,130,000.
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131
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Gabelli Capital Asset Fund
- --------------------------------
Notes to Financial Statements
June 30, 2003 (Unaudited) (continued)
- -----------------------------
7. Capital Stock Transactions
- -----------------------------
Transactions in shares of capital stock were as follows:
Six Months Ended Year Ended
June 30, 2003 December 31, 2002
---------------- -----------------
Shares Amount Shares Amount
------ ------ ------ ------
Shares sold 526,718 $ 6,777,224 2,556,216 $ 34,683,501
Shares issued upon
reinvestment of dividends -- -- 35,582 430,206
Shares redeemed (1,334,960) (16,248,304) (3,104,668) (38,466,117)
---------- ------------ ---------- ------------
Net decrease (808,242) $ (9,471,080) (512,870) $ (3,352,410)
========== ============ ========== ============
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132
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Gabelli Capital Asset Fund
- --------------------------------
Financial Highlights
Selected data for a share of capital stock outstanding throughout the periods
indicated:
Six Months Ended Year Ended December 31,
June 30, 2003 ----------------------------------------------------------------
(Unaudited) 2002 2001 2000 1999 1998
- --------------------------------------------------------------------------------------------------------------------------------
Operating performance:
Net asset value, beginning of period ....... $ 12.16 $ 14.23 $ 14.71 $ 17.48 $ 16.20 $ 15.31
-------- -------- -------- -------- -------- --------
Net investment income ...................... 0.01 0.03 0.07 0.04 0.02 0.03
Net realized and unrealized gain (loss)
on investments ........................... 1.64 (2.07) 0.31 0.87 3.15 1.74
-------- -------- -------- -------- -------- --------
Total from investment operations ........... 1.65 (2.04) 0.38 0.91 3.17 1.77
-------- -------- -------- -------- -------- --------
Distributions to shareholders:
Net investment income ...................... -- (0.03) (0.08) (0.04) (0.02) (0.03)
Net realized gain on investments ........... -- (0.00)(a) (0.78) (3.64) (1.87) (0.85)
-------- -------- -------- -------- -------- --------
Total distributions ........................ -- (0.03) (0.86) (3.68) (1.89) (0.88)
-------- -------- -------- -------- -------- --------
Net asset value, end of period ............... $ 13.81 $ 12.16 $ 14.23 $ 14.71 $ 17.48 $ 16.20
-------- -------- -------- -------- -------- --------
Total return + ............................... 13.6% (14.3)% 2.6% 5.6% 19.8% 11.7%
-------- -------- -------- -------- -------- --------
Ratios to average net assets and
supplemental data:
Net assets, end of period (in 000's) ....... $169,237 $158,831 $193,150 $155,870 $176,086 $155,361
Ratio of net investment income to average
net assets ............................... 0.22%(c) 0.20% 0.54% 0.18% 0.13% 0.19%
Ratio of operating expenses to average
net assets ............................... 1.12%(c) 1.12% 1.09% 1.09%(b) 1.08% 1.12%
Portfolio turnover rate .................... 9% 19% 29% 64% 54% 43%
+ 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) Amount represents less than $0.005 per share.
(b) 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%.
(c) Annualized.
See notes to financial statements.
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133
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed registrants.
Not applicable.
Item 6. [Reserved]
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. [Reserved]
Item 9. Controls and Procedures.
(a) The registrant's principal executive and principal financial
officers, or persons performing similar functions, have concluded
that the registrant's disclosure controls and procedures (as defined
in Rule 30a-3(c) under the Investment Company Act of 1940, as
amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of
a date within 90 days of the filing date of the report that includes
the disclosure required by this paragraph, based on their evaluation
of these controls and procedures required by Rule 30a-3(b) under the
1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the registrant's last
fiscal half-year (the registrant's second fiscal half-year in the
case of an annual report) that has materially affected, or is
reasonably likely to materially affect, the registrant's internal
control over financial reporting.
Item 10. Exhibits.
(a)(1) Not applicable.
EX-99.CERT Certifications pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002 are attached hereto.
EX-99.906CERT Certifications pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) Gabelli Capital Series Funds, Inc.
-------------------------------------------------------------------
By (Signature and Title)* /s/ Bruce N. Alpert
------------------------------------------------------
Bruce N. Alpert, Principal Executive Officer
Date 09/03/03
----------------------------------------------------------------------------
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 09/03/03
----------------------------------------------------------------------------
By (Signature and Title)* /s/ Gus A. Coutsouros
------------------------------------------------------
Gus A. Coutsouros, Principal Financial Officer
Date 09/03/03
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.