INVESTMENT SCORECARD
By far the largest contributor to returns for the quarter was Swedish Match (OSTO:SWMA, Financial) (7.1% of net assets as of June 30, 2022) (+35%), which agreed to an acquisition by Philip Morris International (PM, Financial) for SEK 106 per share in cash. The deal marks the realization of our long-held thesis that a global cigarette firm would bolster their smokeless tobacco offerings via market leader ZYN, owned by Swedish Match. We expect the deal to close in late 2022. Firms whose products and services are essential, including packaged food provider Mondelez (MDLZ, Financial) (2.0%, -1%), waste collection company Republic Services (4.4%, -1%), and auto parts distributor Genuine Parts (GPC, Financial) (3.6%, +6.2%) added ballast during a choppy quarter. Advertising-driven and consumer oriented companies including Paramount Global (5.5%, -32%), Warner Brothers Discovery (WBD, Financial) (0.9%, -45%), Madison Square Garden Entertainment (MSGE, Financial) (1.8%, -36%) and American Express (AXP, Financial) (4.7%, -25%) were more challenged. The late quarter swoon in commodities, including gold, hit year-to-date winner Newmont Corp. (NEM, Financial) (6.5%, -24%), the world’s leading gold miner.
COMPARATIVE RESULTS
Average Annual Returns through June 30, 2022 (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 Value 25 Fund Inc. | QTR | 1 Year | 5 Year | 10 Year | 15 Year | Since Inception | |
| (09/29/89) | |||||||
| Class I (GVCIX) (b) | (15.25)% | (17.13)% | 3.18 % | 6.82% | 4.69% | 9.24% | |
| S&P 500 Index (c) | (16.10) | (10.62) | 11.31 | 12.96 | 8.54 | 9.82 |
(a) Other classes of shares are available, with different characteristics. For additional information please contact your financial advisor or call 800-GABELLI.
(b) Returns would have been lower had Gabelli Funds, LLC, (the “Adviser”) not reimbursed certain expenses of the Fund. The Class A Share NAVs are used to calculate performance for the period prior to the issuance of Class I Shares on January 11, 2008. The actual performance of the Class I Shares would have been higher due to lower expenses related to this class of shares. The Fund imposes a 2% redemption fee on shares sold or exchanged within seven days of purchase.
(c) The S&P 500 Index is a market capitalization weighted index of 500 large capitalization stocks commonly used to represent the U.S. equity market Dividends are considered reinvested. You cannot invest directly in an index.
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.
LET’S TALK STOCKS
Paramount Global (PARA, Financial) (5.5% of net assets as of June 30, 2022) (PARA –$27.26 – NASDAQ) is the product of the December 2019 recombination of Viacom and CBS, two companies controlled by the family of the late Sumner Redstone. Paramount (formerly ViacomCBS) is a globally-scaled content company with networks including CBS, Showtime, Nickelodeon, MTV, Comedy Central, VH1, BET, thirty television stations, and the Paramount movie studio. The company has used its increased scale to better navigate the shifts in consumer behavior and monetization primarily through the successful launch of its Paramount+ direct-to-consumer platform.
Republic Services Inc. (RSG, Financial) (4.4%) (RSG – $130.87 – NYSE) based in Phoenix, Arizona, became the second largest solid waste company in North America after its acquisition of Allied Waste Industries in December 2008. Republic provides nonhazardous solid waste collection services for commercial, industrial, municipal, and residential customers in forty-one states and Puerto Rico. Republic serves more than 2,800 municipalities and operates 199 landfills, 235 transfer stations, 355 collection operations, and 73 recycling facilities. Since the Allied merger, Republic has benefited from synergies driven by route density, beneficial use of acquired assets, and reduction in redundant corporate overhead. Republic is committed to its core solid waste business. While other providers have strayed into alternative waste resource technologies and strategies, we view Republic’s plan to remain steadfast in the traditional solid waste business positively. We expect continued solid waste growth acquisitions, earnings improvement, and incremental route density and internalization growth in already established markets to generate real value in the near to medium term, highlighting the company’s potential.
Sony Corp. (SONY, Financial) (6.3%) (SONY – $81.77 – NYSE) is a conglomerate based in Tokyo, Japan focusing on direct-to-consumerentertainment products. Sony is the #1 integrated global gaming company with its Sony Playstation 5 gaming platform, which is in high demand and in limited supply. Sony Music Recording commands #2 and Music Publishing #1 global share. Sony Music is capitalizing the growth of streaming. Sony also operates the Sony/Columbia film studio, which is well positioned in the OTT streaming wars as a major supplier of high quality library shows like Seinfeld and Spiderman. Sony is an image sensor leader and its major growth opportunity consists of the growth of high-end Apple iPhones and automotive image sensors. Sony’s Electronics business remains a globally diversified and defensive cash generator.
