COMPARATIVE RESULTS
PORTFOLIO HIGHLIGHTS
| Total Net Assets: | $1.7 Billion |
| NAV (Class I): | $51.54 |
| Turnover: (a) | 4% |
| Inception Date: | 03/03/86 |
| Expense Ratio: (b) | 1.10% |
- For the twelve months ended December 31, 2023.
- As of the current prospectus dated April 28, 2023.
| SHARE CLASS (c) | SYMBOL |
| Class AAA: | GABAX |
| Class A: | GATAX |
| Class I: | GABIX |
- Another class of shares is available.
Average Annual Returns through March 31, 2024 (a)
Total returns and average annual returns reflect changes in share price, reinvestment of distributions, and are net of expenses.
Performance returns for periods of less than one year are not annualized.
| Gabelli Asset Fund | QTR | 1 Year | 5 Year | 10 Year | 15 Year | Since Inception | |
| (03/03/86) | |||||||
| Class I (GABIX) (b) | 6.71% | 12.98% | 9.15% | 7.78% | 12.73% | 11.36% | |
| S&P 500 Index (c) | 10.56 | 29.88 | 15.05 | 12.96 | 15.63 | 11.01 |
INVESTMENT SCORECARD
Top contributors during the first quarter included Caterpillar (CAT, Financial) (2.0% of net assets as of March 31, 2024) (+25%), which reported significantly higher profitability in Q4 2023 due to strong demand and price realization. Berkshire Hathaway (BRK.A, Financial)(BRK.B, Financial) (2.3%) (+17%) shares rose on the strength of its industrial businesses and as the company grows its cash hoard, some of which it continues to use for share repurchases. AMETEK (AME, Financial) (3.2%) (+11%) shares gained on strong results led by its Aerospace & Defense and Materials Analysis divisions, and noted it has a robust acquisition pipeline. American Express (AXP, Financial) (1.6%) (+22%) shares rose as it is benefiting from the continued resilience in consumer spending in the U.S. and globally. Finally, shares of waste collection leader Republic Services (RSG, Financial) (1.9%) (+16%) increased as it again delivered strong top and bottom line growth driven by strong pricing.
Detractors included Brown-Forman (BF.B, Financial) (2.1%) (-11%), owner of Jack Daniel's and other leading distilled spirits brands, as it continues to navigate through normalization of the U.S. market and a reduction in distributor inventories. Sony Group (SONY, Financial) (2.0%) (-9%) cut its forecast for PlayStation 5 unit sales this year to 21 million units (from 25 million) and will not release any new major franchise titles this year. Warner Brothers Discovery (WBD) (0.5%) (-23%) shares fell as TV revenue declined due to the impact of the WGA and SAG-AFTRA strikes, though revenues increased and losses significantly decreased in its direct-to-consumer segment. Newmont Corporation (NEM, Financial) (0.8%) (-13%) declined as the market continues to digest its recently closed acquisition of large Australian miner Newcrest Mining. Although 2024 guidance for production and costs was below market expectations, the company is using this year to examine Newcrest and ensure Newmont optimizes its operations. Finally, Tokyo-based Nissin Foods (0.4%) (-20%) shares fell amid lower profitability in its Americas segment and a decline in revenue in China.
LET'S TALK STOCKS
Catalent Inc. (CTLT, Financial) (0.1% of net assets as of March 31, 2024) (CTLT β $56.45 β NYSE) is a leading contract drug manufacturer in the healthcare industry across both oral formulations and biotechnology drugs. They are helping to manufacture the new class of GLP-1 drugs for diabetes and weight loss, which is major growth driver for the industry. On February 5, 2024, Catalent agreed to be acquired by Novo Nordisk and its holding company for $63.50 per share or $16.5 billion. This deal should not have any antitrust issues and is expected to close later in 2024.
FTAI Aviation (FTAI, Financial) (0.2%) (FTAI β $67.30 β NYSE) owns and maintains commercial jet engines with a focus on CFM56 engines. The Company's segments include Aviation Leasing and Aerospace Products. The Aviation Leasing segment owns and manages aviation assets, including aircraft and aircraft engines, which it leases and sells to customers. The Aerospace Products segment develops and manufactures through a joint venture, and repairs and sells, through arrangements, aircraft engines and aftermarket components for aircraft engines. During the first quarter of 2024, the company rapidly grew its Aerospace Products EBITDA to $70m, up from $27.4m in the same period last year. We think the continued demand for a low cost engine repair solution will allow FTAI to take market share and grow earnings.
When discussing specific stocks in the portfolios of the Funds, favorable earnings prospects do not necessarily translate into higher stock prices, but they do express a positive trend that we believe will develop over time. Individual securities mentioned are not necessarily representative of a Fund's entire portfolio. For the holdings discussed, the percentage of the Fund's net assets and their share prices stated in U.S. dollar equivalent terms are presented as of March 31, 2024.
Returns represent past performance and do not guarantee future results. Investment returns and the principal value of an investment will fluctuate. When shares are redeemed, they may be worth more or less than their original cost. Current performance may be lower or higher than the performance data presented. Visit www.gabelli.com for performance information as of the most recent month end.
