ThZeal - The Zeal

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

For the six months ended June 30, 2015, the net asset value (“NAV”) per Class AAA Share of The Gabelli ABC Fund increased 1.7% compared with an increase of 1.5% for the Standard & Poor’s (“S&P”) Long-Only Merger Arbitrage Index. The performance of the Bank of America Merrill Lynch 3 Month U.S. Treasury Bill Index for the quarter was 0.01%. See page 2 for additional performance information.

Enclosed are the financial statements, including the schedule of investments, as of June 30, 2015.


Average Annual Returns through June 30, 2015 (a) (Unaudited)						Since Inception 5/14/93
	Six Months	1 Year	5 Year	10 Year	15 Year	Since Inception 5/14/93
AAA Shares (GABCX)	1.68%	1.46%	3.87%	4.40%	4.25%	6.03%
Advisor Shares (GADVX)	1.49	1.10	3.61	4.18	4.11	5.93
S&P Long-Only Merger Arbitrage Index	1.48	2.07	4.17	N/A(b)	N/A(b)	N/A(b)
Lipper U.S. Treasury Money Market Fund Average	0.00	0.01	0.01	1.13	0.00	2.38(c)
Bank of America Merrill Lynch 3 Month U.S. Treasury Bill Index	0.01	0.02	0.08	1.42	1.72	2.84
S&P 500 Index	1.23	7.42	17.34	7.89	4.36	9.35(c)
In the current prospectuses dated April 30, 2015, the expense ratios for Class AAA and the Advisor Class Shares, are 0.58% and 0.83%, respectively. See page 12 for the expense ratios for the six months ended June 30, 2015. The Fund does not have a sales charge.


(a)		Returns represent past performance and do not guarantee future results. Total returns and average annual returns reflect changes in share price, reinvestment of distributions, and are net of expenses. Investment returns and the principal value of an investment will fluctuate. When shares are redeemed, they may be worth more or less than their original cost. 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. Returns would have been lower had Gabelli Funds, LLC, the Adviser, not reimbursed certain expenses of the Fund between April 1, 2002 through April 30, 2007. The Fund imposes a 2% redemption fee on shares sold or exchanged within seven days after the date of purchase. Performance returns for periods of less than one year are not annualized. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectuses contain information about these and other matters and should be read carefully before investing. To obtain a prospectus, please visit our website at www.gabelli.com. The S&P Long-Only Merger Arbitrage Index is comprised of a maximum of 40 large and liquid stocks that are active targets in pending merger deals. The Lipper U.S. Treasury Money Market Fund Average reflects the average performance of mutual funds classified in this particular category. The Bank of America Merrill Lynch 3 Month U.S. Treasury Bill Index is comprised of a single issue purchased at the beginning of the month and held for a full month. At the end of the month, that issue is sold and rolled into the outstanding Treasury Bill that matures closest to, but not beyond, three months from the rebalancing date. To qualify for selection, an issue must have settled on or before the rebalancing (month end) date. 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 except for the Bank of America Merrill Lynch 3 Month U.S. Treasury Bill Index. You cannot invest directly in an index. The Class AAA Share NAVs are used to calculate performance for the periods prior to the issuance of the Advisor Class Shares on May 1, 2007. The actual performance of the Advisor Class Shares would have been lower due to the additional expenses associated with this class of shares.
(b)		S&P Long-Only Merger Arbitrage Index inception date is January 17, 2008.
(c)		Lipper U.S. Treasury Money Market Fund Average and the S&P 500 Index since inception performance are as of April 30, 1993.

We believe it is important for you to understand the impact of fees and expenses regarding your investment. All mutual funds have operating expenses. As a shareholder of a fund, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund’s gross income, directly reduce the investment return of a fund. When a fund’s expenses are expressed as a percentage of its average net assets, this figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.

The Expense Table below illustrates your Fund’s costs in two ways:

Actual Fund Return: This section provides information about actual account values and actual expenses. You may use this section to help you to estimate the actual expenses that you paid over the period after any fee waivers and expense reimbursements. The “Ending Account Value” shown is derived from the Fund’s actual return during the past six months, and the “Expenses Paid During Period” shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period.

To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your Fund under the heading “Expenses Paid During Period” to estimate the expenses you paid during this period.

Hypothetical 5% Return: This section provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio. It assumes a hypothetical annualized return of 5% before expenses during the period shown. In this case – because the hypothetical return used is not the Fund’s actual return – the results do not apply to your investment and you cannot use the hypothetical account value and expense to estimate the actual ending account balance or expenses you paid for the period. This example is useful in making comparisons of the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads), redemption fees, or exchange fees, if any, which are described in the Prospectus. If these costs were applied to your account, your costs would be higher. Therefore, the 5% hypothetical return is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.


	Beginning Account Value 01/01/15			Ending Account Value 06/30/15			Annualized Expense Ratio			Expenses Paid During Period*
*The Gabelli ABC Fund*
Actual Fund Return
Class AAA		$	1,000.00		$	1,016.80		0.61	%	$3.00
Advisor Class		$	1,000.00		$	1,014.90		0.86	%	$4.25
Hypothetical 5% Return
Class AAA		$	1,000.00		$	1,021.82		0.61	%	$3.01
Advisor Class		$	1,000.00		$	1,020.58		0.86	%	$4.26

*	Expenses are equal to the Fund’s annualized expense ratio for the last six months multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year (181 days), then divided by 365.

The following table presents portfolio holdings as a percent of net assets as of June 30, 2015:


Long Positions
U.S. Government Obligations	42.2	%
Health Care	13.7	%
Computer Software and Services	8.5	%
Energy and Utilities	6.7	%
Cable and Satellite	5.4	%
Diversified Industrial	4.6	%
Telecommunications	3.0	%
Retail	2.9	%
Semiconductors	2.5	%
Metals and Mining	2.1	%
Building and Construction	2.0	%
Financial Services	2.0	%
Business Services	1.8	%
Electronics	0.9	%
Hotels and Gaming	0.6	%
Food and Beverage	0.6	%
Wireless Communications	0.5	%
Specialty Chemicals	0.3	%
Automotive: Parts and Accessories	0.3	%
Entertainment	0.3	%
Aerospace	0.3	%


Equipment and Supplies	0.3	%
Machinery	0.1	%
Publishing	0.1	%
Consumer Products	0.1	%
Transportation	0.0	%*
Broadcasting	0.0	%*
Consumer Services	0.0	%*
Real Estate	0.0	%*
Computer Hardware	0.0	%*
Other Assets and Liabilities (Net)	2.8	%

Short Positions
Building and Construction	(2.3	)%
Metals and Mining	(1.6	)%
Telecommunications	(0.6	)%
Energy and Utilities	(0.1	)%
Cable and Satellite	(0.0	)%*
Retail	(0.0	)%*


	100.0	%

*	Amount represents less than 0.05%.

The Fund files a complete schedule of portfolio holdings with the Securities and Exchange Commission (the “SEC”) for the first and third quarters of each fiscal year on Form N-Q. Shareholders may obtain this information at www.gabelli.com or by calling the Fund at 800-GABELLI (800-422-3554). The Fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330.

The Fund files Form N-PX with its complete proxy voting record for the twelve months ended June 30, no later than August 31 of each year. A description of the Fund’s proxy voting policies, procedures, and how the Fund voted proxies relating to portfolio securities is available without charge, upon request, by (i) calling 800-GABELLI (800-422-3554); (ii) writing to The Gabelli Funds at One Corporate Center, Rye, NY 10580-1422; or (iii) visiting the SEC’s website at www.sec.gov.


Shares			Cost		Market Value
		COMMON STOCKS — 59.3%
		Aerospace — 0.3%
	48,000	B/E Aerospace Inc.	$	2,850,330	$	2,635,200
	26,000	KLX Inc.†		1,185,180		1,147,380

				4,035,510		3,782,580


		Automotive: Parts and Accessories — 0.3%
	90,000	Cooper Tire & Rubber Co.		2,137,302		3,044,700
	300	Strattec Security Corp.		4,118		20,610
	100,000	The Pep Boys - Manny, Moe & Jack†		1,116,573		1,227,000

				3,257,993		4,292,310


		Broadcasting — 0.0%
	8,000	Cogeco Inc.		155,796		367,206
	4,000	Salem Media Group Inc.		1,800		25,320

				157,596		392,526


		Building and Construction — 2.0%
	598,834	Lennar Corp., Cl. B		21,445,562		25,821,722
	41,029	Norbord Inc.		1,014,379		860,985

				22,459,941		26,682,707


		Business Services — 1.8%
	90,000	Blackhawk Network Holdings Inc.†		2,153,429		3,708,000
	40,000	Diebold Inc.		1,220,261		1,400,000
	3,000	Funespana SA†		27,182		24,415
	100,042	Global Sources Ltd.†		764,729		695,292
	20,000	GrainCorp Ltd., Cl. A		162,315		131,781
	65,000	R. R. Donnelley & Sons Co.		1,264,250		1,132,950
	5,000	The Brink’s Co.		125,928		147,150
	55,000	The Interpublic Group of Companies Inc.		1,041,729		1,059,850
	1,740,001	TNT Express NV		14,548,933		14,760,268
	200	Towers Watson & Co., Cl. A		27,067		25,160

				21,335,823		23,084,866


		Cable and Satellite — 5.4%
	1,000	AMC Networks Inc., Cl. A†		33,167		81,850
	195,000	Cablevision Systems Corp., Cl. A		2,945,617		4,668,300
	390,000	DIRECTV†		34,022,068		36,188,100
	50,660	Liberty Global plc, Cl. A†		2,276,948		2,739,186
	112,000	Liberty Global plc, Cl. C†		4,954,773		5,670,560
	1,816,000	Sky Deutschland AG†		15,661,067		13,663,832
	45,000	Sky plc		539,589		733,219
	13,555	Societe d’Edition de Canal +		117,564		114,850
	41,000	Time Warner Cable Inc.		6,304,485		7,304,970

				66,855,278		71,164,867


		Computer Hardware — 0.0%
	500	Data Modul AG		15,606		18,646


Shares			Cost		Market Value

		Computer Software and Services — 8.5%
	765,000	Advent Software Inc.	$	33,784,551	$	33,820,650
	10,000	Anite plc		20,165		19,955
	100,000	ClickSoftware Technologies Ltd.†		1,255,960		1,257,000
	175,000	Covisint Corp.†		451,202		572,250
	749,000	Dealertrack Technologies Inc.†		47,035,774		47,029,710
	40,000	IGATE Corp.†		1,903,642		1,907,600
	52,000	iGO Inc.†		163,480		149,760
	450,000	Informatica Corp.†		21,616,284		21,811,500
	4,000	InterXion Holding NV†		120,455		110,600
	240,101	Rally Software Development Corp.†		4,671,081		4,669,964
	5,800	Rocket Fuel Inc.†		49,374		47,560
	2,000	Yahoo! Inc.†		29,400		78,580

				111,101,368		111,475,129


		Consumer Products — 0.1%
	65,000	Avon Products Inc.		928,850		406,900
	44,000	Blyth Inc.†		456,796		279,400

				1,385,646		686,300


		Consumer Services — 0.0%
	300,000	Corinthian Colleges Inc.†		28,312		2,100
	1,000	Liberty Interactive Corp. QVC Group, Cl. A†		14,856		27,750
	404	Liberty TripAdvisor Holdings Inc., Cl. A†		3,849		13,017
	546	Liberty Ventures, Cl. A†		6,469		21,441
	10,000	Orbitz Worldwide Inc.†		116,725		114,200

				170,211		178,508


		Diversified Industrial — 4.6%
	10,000	Fortune Brands Home & Security Inc.		127,982		458,200
	30,000	Katy Industries Inc.†		23,299		99,000
	40,000	Myers Industries Inc.		415,859		760,000
	309,953	Pall Corp.		38,571,055		38,573,651
	300,000	Polypore International Inc.†		17,839,808		17,964,000
	45,000	Tyco International plc		858,173		1,731,600
	19,000	Wartsila OYJ Abp		949,279		890,076

				58,785,455		60,476,527


		Electronics — 0.9%
	70,000	Alliance Semiconductor Corp.†		240,731		52,500
	290,600	Axis Communications AB†		11,645,787		11,575,133
	12,000	MoSys Inc.†		45,904		22,800
	7,060	TTM Technologies Inc.†		72,577		70,529

				12,004,999		11,720,962


		Energy and Utilities — 6.7%
	1,340,000	Alvopetro Energy Ltd.†		1,380,069		418,415


Shares			Cost		Market Value
		COMMON STOCKS (Continued)
		Energy and Utilities (Continued)
	3,000	Amec Foster Wheeler plc, ADR	$	53,107	$	38,760
	24,000	Anadarko Petroleum Corp.		2,344,508		1,873,440
	13,500	Apache Corp.		1,099,974		778,005
	1,200	Baker Hughes Inc.		71,783		74,040
	179,300	BG Group plc		3,275,276		2,984,859
	440,000	Cleco Corp.		23,827,196		23,694,000
	100,000	Dragon Oil plc		631,501		1,140,720
	378,165	Dresser-Rand Group Inc.†		30,881,239		32,212,095
	20,000	Endesa SA		453,617		382,729
	70,000	EXCO Resources Inc.		350,077		82,600
	420,000	Gulf Coast Ultra Deep Royalty Trust†		716,100		294,000
	8,000	Hawaiian Electric Industries Inc.		257,002		237,840
	5,000	Hess Corp.		253,364		334,400
	4,059	IGAS Energy plc†		5,582		1,722
	60,000	National Fuel Gas Co.		3,511,065		3,533,400
	13,000	NorthWestern Corp.		297,480		633,750
	275,000	Pepco Holdings Inc.		7,405,569		7,408,500
	65,000	Rosetta Resources Inc.†		1,576,312		1,504,100
	160,000	Severn Trent plc		4,318,173		5,231,601
	9,000	Steel Excel Inc.†		238,313		187,200
	44,025	UIL Holdings Corp.		2,169,579		2,017,226
	100,000	Weatherford International plc†		1,436,136		1,227,000
	56,503	WEC Energy Group Inc.		2,598,878		2,540,961
	80,000	WesternZagros Resources Ltd.†		287,279		14,732

				89,439,179		88,846,095


		Entertainment — 0.3%
	6,000	Discovery Communications Inc., Cl. A†		144,916		199,560
	6,000	Discovery Communications Inc., Cl. C†		53,710		186,480
	84,000	Media General Inc.†		1,479,692		1,387,680
	6,500	Scripps Networks Interactive Inc., Cl. A		490,130		424,905
	1,000	SFX Entertainment Inc.†		4,635		4,490
	10,000	Take-Two Interactive Software Inc.†		93,578		275,700
	6,000	The Madison Square Garden Co., Cl. A†		249,981		500,940
	14,000	Time Warner Inc.		1,086,837		1,223,740

				3,603,479		4,203,495


		Equipment and Supplies — 0.3%
	374,986	GrafTech International Ltd.†		1,898,679		1,859,931


Shares			Cost		Market Value

	50,000	Xylem Inc.	$	1,467,071	$	1,853,500

				3,365,750		3,713,431


		Financial Services — 2.0%
	78,000	AllianceBernstein Holding LP		1,342,641		2,303,340
	2,500	Aspen Insurance Holdings Ltd.		108,766		119,750
	0	BB&T Corp.		8		8
	1,500	City National Corp.		135,820		135,585
	14,000	H&R Block Inc.		266,096		415,100
	30,000	HCC Insurance Holdings Inc.		2,317,376		2,305,200
	35,087	Hilltop Holdings Inc.†		744,243		845,246
	500	Home Loan Servicing Solutions Ltd.		771		345
	1,000,000	Hudson City Bancorp Inc.		9,942,381		9,880,000
	37,000	Kinnevik Investment AB, Cl. A		1,349,457		1,187,235
	60,000	KKR & Co. LP		321,403		1,371,000
	1,400	MasterCard Inc., Cl. A		27,948		130,872
	200	Montpelier Re Holdings Ltd.		7,848		7,900
	160,000	National Interstate Corp.		4,725,088		4,371,200
	55,000	Navient Corp.		341,093		1,001,550
	10,000	Oritani Financial Corp.		103,087		160,500
	8,500	PartnerRe Ltd.		1,099,102		1,092,250
	7,312	Sterling Bancorp		65,721		107,486
	5,000	The PNC Financial Services Group Inc.		250,104		478,250
	260,000	Wright Investors’ Service Holdings Inc.†		650,000		395,200

				23,798,953		26,308,017


		Food and Beverage — 0.6%
	2,030,000	Parmalat SpA		7,561,683		5,300,297
	5,000	Pernod Ricard SA		371,207		577,493
	24,000	Remy Cointreau SA		1,467,270		1,729,804
	10,000	Warrnambool Cheese & Butter Factory Co. Holding Ltd.†		68,912		72,719

				9,469,072		7,680,313


		Health Care — 13.6%
	10,135	AbbVie Inc.		707,930		680,971
	2,000	Alere Inc.†		79,414		105,500
	0	Alexion Pharmaceuticals Inc.†		75		72
	420,465	ArthroCare Corp. Stub†		0		147,163
	62,000	AstraZeneca plc, ADR		4,843,244		3,950,020
	15,000	Audika Groupe		283,508		294,321
	800	Bio-Rad Laboratories Inc., Cl. A†		79,952		120,488
	580,000	Catamaran Corp.†		34,769,847		35,426,400
	40,000	Celesio AG		1,265,251		1,159,446
	600,000	Hospira Inc.†		52,675,966		53,226,000
	4,400	ICU Medical Inc.†		251,347		420,904
	400	Illumina Inc.†		16,234		87,344


Shares			Cost		Market Value
		COMMON STOCKS (Continued)
		Health Care (Continued)
	170,000	KYTHERA Biopharmaceuticals Inc.†	$	12,781,473	$	12,802,700
	16,000	Laboratory Corp. of America Holdings†		1,881,680		1,939,520
	500	Mead Johnson Nutrition Co.		12,000		45,110
	2,000	Mylan NV†		136,822		135,720
	433,000	Myrexis Inc.†		44,849		64,560
	325,000	Omnicare Inc.		31,175,033		30,631,250
	1,000	Perrigo Co. plc		194,563		184,830
	300	Shire plc, ADR		72,903		72,447
	270,000	Sigma-Aldrich Corp.		36,992,720		37,624,500
	4,000	Synergy Health plc		110,524		108,038

				178,375,335		179,227,304


		Hotels and Gaming — 0.6%
	12,000	Belmond Ltd., Cl. A†		137,665		149,880
	2,000	Churchill Downs Inc.		85,292		250,100
	34,100	Eldorado Resorts Inc.†		168,000		266,662
	330,000	International Game
		Technology plc†		6,251,230		5,860,800
	25,000	Ryman Hospitality Properties Inc.		1,076,449		1,327,750

				7,718,636		7,855,192


		Machinery — 0.1%
	35,000	Astec Industries Inc.		1,337,801		1,463,700
	27,000	CNH Industrial NV		288,308		250,560

				1,626,109		1,714,260


		Metals and Mining — 2.1%
	900	Agnico-Eagle Mines Ltd.		21,667		25,552
	100,000	Alcoa Inc.		956,116		1,115,000
	98,000	AuRico Gold Inc.		781,597		278,320
	100,000	Freeport-McMoRan Inc.		2,695,955		1,862,000
	40,000	Newmont Mining Corp.		1,207,631		934,400
	10,000	Pan American Silver Corp.		188,281		85,989
	656,400	RTI International Metals Inc.†		25,119,328		20,689,728
	11,500	Vulcan Materials Co.		457,719		965,195
	64,500	Whiting Petroleum Corp.†		3,138,374		2,167,200

				34,566,668		28,123,384


		Publishing — 0.1%
	6,825	Journal Media Group Inc.		43,249		56,579
	38,016	The E.W. Scripps Co., Cl. A		787,739		868,666

				830,988		925,245


		Real Estate — 0.0%
	500	American Tower Corp.		7,707		46,645
	1,000	Associated Estates Realty Corp.		28,470		28,630


Shares			Cost		Market Value

	1,000	Conwert Immobilien Invest SE†	$	13,727	$	12,676

				49,904		87,951


		Retail — 2.8%
	6,000	Aaron’s Inc.		155,926		217,260
	30,000	CST Brands Inc.		984,712		1,171,800
	60,000	Family Dollar Stores Inc.		4,782,818		4,728,600
	22,000	Macy’s Inc.		454,276		1,484,340
	11,000	Office Depot Inc.†		104,838		95,260
	4,000	Pier 1 Imports Inc.		27,590		50,520
	115,500	World Duty Free SpA†		1,256,677		1,294,092
	1,300,000	Zale Corp.†		27,196,380		27,300,000

				34,963,217		36,341,872


		Semiconductors — 2.5%
	400,000	Altera Corp.		20,701,166		20,480,000
	245,000	Broadcom Corp., Cl. A		13,153,263		12,615,050

				33,854,429		33,095,050


		Specialty Chemicals — 0.3%
	15,000	Chemtura Corp.†		361,530		424,650
	34,000	International Flavors & Fragrances Inc.		3,289,786		3,715,860
	400	Monsanto Co.		18,667		42,636
	100	OM Group Inc.		3,448		3,360
	18,000	SGL Carbon SE†		417,597		290,575

				4,091,028		4,477,081


		Telecommunications — 3.0%
	300,000	Asia Satellite Telecommunications Holdings Ltd.		683,347		1,195,890
	9,000	BCE Inc., Toronto		321,953		382,500
	230,000	Colt Group SA†		693,917		683,018
	8,000	Harris Corp.		634,461		615,280
	1,711,075	Jazztel plc†		26,859,860		24,703,361
	130,000	Koninklijke KPN NV		396,278		497,113
	18,000	Level 3 Communications Inc.†		843,467		948,060
	100,000	Pharol SGPS SA†		409,436		44,037
	655,000	Sprint Corp.†		3,388,182		2,986,800
	140,000	Telenet Group Holding NV†		6,377,379		7,615,108
	5,000	Telephone & Data Systems Inc.		130,801		147,000

				40,739,081		39,818,167


		Transportation — 0.0%
	2,500	Norbert Dentressangle SA		607,603		606,340


		Wireless Communications — 0.4%
	20,000	Blackberry Ltd.†		147,635		163,600
	14,000	Metricom Inc.†		1,680		1
	58,000	Millicom International Cellular SA, SDR		4,884,303		4,278,365


Shares			Cost		Market Value
		COMMON STOCKS (Continued)
		Wireless Communications (Continued)
	200,000	NII Holdings Inc.†	$	179,013	$	4,000
	7,500	T-Mobile US Inc.†		121,875		290,775
	9,500	United States Cellular Corp.†		362,501		357,865

				5,697,007		5,094,606


		TOTAL COMMON STOCKS		774,361,864		782,073,731


		PREFERRED STOCKS — 0.0%
		Telecommunications — 0.0%
	4,000	Cincinnati Bell Inc., 6.750%, Ser. B		83,263		196,120


		RIGHTS — 0.3%
		Health Care — 0.1%
	110,600	Adolor Corp., CPR, expire 07/01/19†		0		57,512
	187,969	Ambit Biosciences Corp., CVR†		0		112,781
	135,000	American Medical Alert Corp.†		0		1,350
	54,000	Chelsea Therapeutics International Ltd., CVR†		5,940		5,940
	5,000	Community Health Systems Inc., CVR†		158		70
	50,000	Durata Therapeutics Inc., CVR†		0		8,000
	13,500	Furiex Pharmaceuticals Inc., CVR†		131,415		131,895
	100	Omthera Pharmaceuticals Inc., expire 12/31/20†		0		60
	139,479	Prosensa Holding, CVR†		137,121		138,084
	200,000	Sanofi, CVR, expire 12/31/20†		296,850		140,000
	825,000	Teva Pharmaceutical Industries Ltd., CPR, expire 02/20/23†		401,888		437,250
	69,000	Trius Therapeutics, CVR†		0		8,970

				973,372		1,041,912


		Retail — 0.1%
	950,000	Safeway Casa Ley, CVR, expire 01/30/19†		166,857		451,250
	950,000	Safeway PDC, CVR, expire 01/30/17†		8,014		46,360

				174,871		497,610


		Wireless Communications — 0.1%
	700,000	Leap Wireless International Inc., CVR, expire 03/14/16†		1,636,304		1,764,000


		TOTAL RIGHTS		2,784,547		3,303,522


Shares			Cost		Market Value
		WARRANTS — 0.0%
		Energy and Utilities — 0.0%
	32,000	Kinder Morgan Inc., expire 05/25/17†	$	61,383	$	86,400


		Metals and Mining — 0.0%
	2,550	HudBay Minerals Inc., expire 07/20/18†		2,886		2,327


		TOTAL WARRANTS		64,269		88,727


Principal Amount
		CONVERTIBLE CORPORATE BONDS — 0.0%
		Building and Construction — 0.0%
$	500,000	Layne Christensen Co., 4.250%, 11/15/18		500,000		388,438


		CORPORATE BONDS — 0.0%
		Energy and Utilities — 0.0%
	800,000	Texas Competitive Electric Holdings Co. LLC, Ser. B, 10.250%, 11/01/15†		711,567		88,000


		U.S. GOVERNMENT OBLIGATIONS — 42.2%
	555,940,000	U.S. Treasury Bills, 0.000% to 0.095%††, 07/02/15 to 12/31/15(a)		555,821,240		555,893,681


		TOTAL INVESTMENTS — 101.8%	$	1,334,326,750		1,342,032,219


			Settlement Date		Unrealized Appreciation/ Depreciation
		FORWARD FOREIGN EXCHANGE CONTRACTS — (0.0)%
	3,400,000(b)	Deliver British Pounds in exchange for United States Dollars 5,333,124(c)		07/24/15		(8,247	)
	59,500,000(d)	Deliver Euros in exchange for United States Dollars 66,627,862(c)		07/24/15		272,974

		TOTAL FORWARD FOREIGN EXCHANGE CONTRACTS				264,727


					Market Value
		SECURITIES SOLD SHORT — (4.6)%
		(Proceeds received $60,727,724)			$	(60,928,338	)

		Other Assets and Liabilities (Net) — 2.8%				36,986,031


		NET ASSETS — 100.0%.			$	1,318,354,639


Shares			Proceeds		Market Value
		SECURITIES SOLD SHORT— (4.6)%
		Building and Construction — (2.3)%
	598,800	Lennar Corp., Cl. A	$	25,854,240	$	30,562,752


		Cable and Satellite — (0.0)%
	4,562	Charter Communications Inc., Cl. A		820,640		781,243


		Energy and Utilities — (0.1)%
	20,325	Noble Energy Inc.		929,634		867,471


		Metals and Mining — (1.6)%
	1,858,532	Alcoa Inc.		25,256,620		20,722,632


		Retail — (0.0)%
	2,188	Staples Inc.		38,559		33,498


		Telecommunications — (0.6)%
	224,120	AT&T Inc.		7,828,031		7,960,742

		TOTAL SECURITIES SOLD SHORT(e)	$	60,727,724	$	60,928,338

Statement of Assets and Liabilities

June 30, 2015 (Unaudited)


Assets:
Investments, at value (cost $1,334,326,750)	$	1,342,032,219
Cash		7,307,030
Deposit at brokers (including proceeds from securities sold short of $60,727,724)		72,487,072
Receivable for Fund shares sold		8,914,958
Receivable for investments sold		72,926,988
Unrealized appreciation on forward foreign exchange contracts		264,727
Dividends and interest receivable		437,237
Prepaid expenses		45,720

Total Assets		1,504,415,951

Liabilities:
Securities sold short, at value		60,928,338
Payable for investments purchased		122,004,668
Payable for Fund shares redeemed		2,283,992
Payable for investment advisory fees		539,570
Payable for distribution fees		131,415
Payable for accounting fees		11,250
Dividends payable on securities sold short		53,994
Other accrued expenses		108,085

Total Liabilities		186,061,312

Net Assets
(applicable to 128,571,670 shares outstanding)	$	1,318,354,639

Net Assets Consist of:
Paid-in capital	$	1,293,736,246
Accumulated net investment loss		(2,428,883	)
Accumulated net realized gain on investments, securities sold short, and foreign currency transactions		19,285,255
Net unrealized appreciation on investments		7,705,469
Net unrealized depreciation on securities sold short		(200,614	)
Net unrealized appreciation on foreign currency translations		257,166

Net Assets	$	1,318,354,639


Shares of Capital Stock, each at $0.001 par value; 500,000,000 shares authorized:

Class AAA:
Net Asset Value, offering, and redemption price per share ($670,463,319 ÷ 65,082,251 shares outstanding)		$10.30
Advisor Class:
Net Asset Value, offering, and redemption price per share ($647,891,320 ÷ 63,489,419 shares outstanding)		$10.20

Statement of Operations

For the Six Months Ended June 30, 2015 (Unaudited)


Investment Income:
Dividends (net of foreign withholding taxes of $122,556)	$	3,373,276
Interest		213,425

Total Investment Income		3,586,701

Expenses:
Investment advisory fees		3,275,931
Distribution fees - Advisor Class		810,279
Dividend expense on securities sold short		300,388
Custodian fees		84,463
Registration expenses		62,688
Shareholder communications expenses		56,910
Directors’ fees		45,730
Shareholder services fees		39,747
Service fees for securities sold short		22,167
Accounting fees		22,500
Legal and audit fees		21,031
Interest expense		3,530
Miscellaneous expenses		38,824

Total Expenses		4,784,188

Less:
Expenses paid indirectly by broker (See Note 6)		(3,065	)
Advisory fee reduction on unsupervised assets (See Note 3)		(74	)

Net Expenses		4,781,049

Net Investment Loss		(1,194,348	)

Net Realized and Unrealized Gain/(Loss) on Investments, Securities Sold Short, and Foreign Currency:
Net realized gain on investments		16,126,863
Net realized loss on securities sold short		(2,040,542	)
Net realized gain on foreign currency transactions		7,731,660

Net realized gain on investments, securities sold short, and foreign currency transactions		21,817,981

Net change in unrealized appreciation/depreciation: on investments		(521,353	)
on securities sold short		2,927,800
on foreign currency translations		(1,765,409	)

Net change in unrealized appreciation/depreciation on investments, securities sold short, and foreign currency translations		641,038

Net Realized and Unrealized Gain/(Loss) on Investments, Securities Sold Short, and Foreign Currency		22,459,019

Net Increase in Net Assets Resulting from Operations	$	21,264,671

1. Organization. The Gabelli ABC Fund, a series of Gabelli Investor Funds, Inc., was incorporated on October 30, 1992 in Maryland. The Fund is a non-diversified open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund’s primary objective is to achieve total returns that are attractive to investors in various market conditions without excessive risk of capital loss. The Fund commenced investment operations on May 14, 1993.

2. Significant Accounting Policies. As an investment company, the Fund follows the investment company accounting and reporting guidance, which is part of U.S. generally accepted accounting principles (“GAAP”) that may require the use of management estimates and assumptions in the preparation of its financial statements. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.

Security Valuation. Portfolio securities listed or traded on a nationally recognized securities exchange or traded in the U.S. over-the-counter market for which market quotations are readily available are valued at the last quoted sale price or a market’s official closing price as of the close of business on the day the securities are being valued. If there were no sales that day, the security is valued at the average of the closing bid and asked prices or, if there were no asked prices quoted on that day, then the security is valued at the closing bid price on that day. If no bid or asked prices are quoted on such day, the security is valued at the most recently available price or, if the Board of Directors (the “Board”) so determines, by such other method as the Board shall determine in good faith to reflect its fair market value. Portfolio securities traded on more than one national securities exchange or market are valued according to the broadest and most representative market, as determined by Gabelli Funds, LLC (the “Adviser”).

Portfolio securities primarily traded on a foreign market are generally valued at the preceding closing values of such securities on the relevant market, but may be fair valued pursuant to procedures established by the Board if market conditions change significantly after the close of the foreign market, but prior to the close of business on the day the securities are being valued. Debt instruments with remaining maturities of sixty days or less that are not credit impaired are valued at amortized cost, unless the Board determines such amount does not reflect the securities’ fair value, in which case these securities will be fair valued as determined by the Board. Debt instruments having a maturity greater than sixty days for which market quotations are readily available are valued at the average of the latest bid and asked prices. If there were no asked prices quoted on such day, the security is valued using the closing bid price. U.S. government obligations with maturities greater than sixty days are normally valued using a model that incorporates market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, and reference data. Certain securities are valued principally using dealer quotations.

Securities and assets for which market quotations are not readily available are fair valued as determined by the Board. Fair valuation methodologies and procedures may include, but are not limited to: analysis and review of available financial and non-financial information about the company; comparisons with the valuation and changes in valuation of similar securities, including a comparison of foreign securities with the equivalent U.S. dollar value American Depositary Receipt securities at the close of the U.S. exchange; and evaluation of any other information that could be indicative of the value of the security.

The inputs and valuation techniques used to measure fair value of the Fund’s investments are summarized into three levels as described in the hierarchy below:

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually and in the aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of the Fund’s investments in securities and other financial instruments by inputs used to value the Fund’s investments as of June 30, 2015 is as follows:

The Fund did not have material transfers among Level 1, Level 2, and Level 3 during the six months ended June 30, 2015. The Fund’s policy is to recognize transfers among Levels as of the beginning of the reporting period.

The following table reconciles Level 3 investments for which significant unobservable inputs were used to determine fair value:

The following tables summarize the valuation techniques used and unobservable inputs utilized to determine the value of certain of the Fund’s Level 3 investments as of June 30, 2015:

General. The Fund uses recognized industry pricing services – approved by the Board and unaffiliated with the Adviser – to value most of its securities, and uses broker quotes provided by market makers of securities not valued by these and other recognized pricing sources. Several different pricing feeds are received to value domestic equity securities, international equity securities, preferred equity securities, and fixed income securities. The data within these feeds is ultimately sourced from major stock exchanges and trading systems where these securities trade. The prices supplied by external sources are checked by obtaining quotations or actual transaction prices from market participants. If a price obtained from the pricing source is deemed unreliable, prices will be sought from another pricing service or from a broker/dealer that trades that security or similar securities.

Fair Valuation. Fair valued securities may be common and preferred equities, warrants, options, rights, and fixed income obligations. Where appropriate, Level 3 securities are those for which market quotations are not available, such as securities not traded for several days, or for which current bids are not available, or which are restricted as to transfer. Among the factors to be considered to fair value a security are recent prices of comparable securities that are publicly traded, reliable prices of securities not publicly traded, the use of valuation models, current analyst reports, valuing the income or cash flow of the issuer, or cost if the preceding factors do not apply. A significant change in the unobservable inputs could result in a lower or higher value in Level 3 securities. The circumstances of Level 3 securities are frequently monitored to determine if fair valuation measures continue to apply.

The Adviser reports quarterly to the Board the results of the application of fair valuation policies and procedures. These include back testing the prices realized in subsequent trades of these fair valued securities to fair values previously recognized.

Derivative Financial Instruments. The Fund may engage in various portfolio investment strategies by investing in a number of derivative financial instruments for the purposes of increasing the income of the Fund, hedging against changes in the value of its portfolio securities and in the value of securities it intends to purchase, or hedging against a specific transaction with respect to either the currency in which the transaction is denominated or another currency. Investing in certain derivative financial instruments, including participation in the options, futures, or swap markets, entails certain execution, liquidity, hedging, tax, and securities, interest, credit, or currency market risks. Losses may arise if the Adviser’s prediction of movements in the direction of the securities, foreign currency, and interest rate markets is inaccurate. Losses may also arise if the counterparty does not perform its duties under a contract, or that, in the event of default, the Fund may be delayed in or prevented from obtaining payments or other contractual remedies owed to it under derivative contracts. The creditworthiness of the counterparties is closely monitored in order to minimize these risks. Participation in derivative transactions involves investment risks, transaction costs, and potential losses to which the Fund would not be subject absent the use of these strategies. The consequences of these risks, transaction costs, and losses may have a negative impact on the Fund’s ability to pay distributions.

Collateral requirements differ by type of derivative. Collateral requirements are set by the broker or exchange clearing house for exchange traded derivatives, while collateral terms are contract specific for derivatives traded over-the-counter. Securities pledged to cover obligations of the Fund under derivative contracts are noted in the Schedule of Investments. Cash collateral, if any, pledged for the same purpose will be reported separately in the Statement of Assets and Liabilities.

The Fund’s policy with respect to offsetting is that, absent an event of default by the counterparty or a termination of the agreement, the master agreement does not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities across transactions between the Fund and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction.

The Fund’s derivative contracts held at June 30, 2015, if any, are not accounted for as hedging instruments under GAAP and are disclosed in the Schedule of Investments together with the related counterparty.

Swap Agreements. The Fund may enter into equity contract for difference swap transactions for the purpose of increasing the income of the Fund. The use of swaps is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio security transactions. In an equity contract for difference swap, a set of future cash flows is exchanged between two counterparties. One of these cash flow streams will typically be based on a reference interest rate combined with the performance of a notional value of shares of a stock. The other will be based on the performance of the shares of a stock. Depending on the general state of short term interest rates and the returns on the Fund’s portfolio securities at the time an equity contract for difference swap transaction reaches its scheduled termination date, there is a risk that the Fund will not be able to obtain a replacement transaction or that the terms of the replacement will not be as favorable as on the expiring transaction.

Unrealized gains related to swaps are reported as an asset and unrealized losses are reported as a liability in the Statement of Assets and Liabilities. The change in value of swaps, including the accrual of periodic amounts of interest to be received or paid on swaps, is reported as unrealized gain or loss in the Statement of Operations. A realized gain or loss is recorded upon receipt or payment of a periodic payment or termination of swap agreements. At June 30, 2015, the Fund held no investments in equity contract for difference swap agreements.

Forward Foreign Exchange Contracts. The Fund may engage in forward foreign exchange contracts for the purpose of hedging a specific transaction with respect to either the currency in which the transaction is denominated or another currency as deemed appropriate by the Adviser. Forward foreign exchange contracts are valued at the forward rate and are marked-to-market daily. The change in market value is included in unrealized appreciation/depreciation on investments and foreign currency translations. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

The use of forward foreign exchange contracts does not eliminate fluctuations in the underlying prices of the Fund’s portfolio securities, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign exchange contracts limit the risk of loss due to a decline in the value of the hedged currency, they also limit any potential gain that might result should the value of the currency increase. Forward foreign exchange contracts at June 30, 2015 are reflected within the Schedule of Investments.

The Fund’s volume of activity in forward foreign exchange contracts during the six months ended June 30, 2015 had an average monthly notional amount of approximately $62,957,143.

As of June 30, 2015, the value of forward foreign exchange contracts can be found in the Statement of Assets and Liabilities under Assets, Unrealized appreciation on forward foreign exchange contracts. For the six months ended June 30, 2015, the effect of forward foreign exchange contracts can be found in the Statement of Operations

under Net Realized and Unrealized Gain/(Loss) on Investments, Securities Sold Short, and Foreign Currency, within Net realized gain on foreign currency transactions and Net change in unrealized appreciation/depreciation on foreign currency translations.

The following table presents the Fund’s derivative assets and liabilities by counterparty net of the related collateral segregated by the Fund for the benefit of the counterparty as of June 30, 2015:

Securities Sold Short. The Fund may enter into short sale transactions. Short selling involves selling securities that may or may not be owned and, at times, borrowing the same securities for delivery to the purchaser, with an obligation to replace such borrowed securities at a later date. The proceeds received from short sales are recorded as liabilities and the Fund records an unrealized gain or loss to the extent of the difference between the proceeds received and the value of an open short position on the day of determination. The Fund records a realized gain or loss when the short position is closed out. By entering into a short sale, the Fund bears the market risk of an unfavorable change in the price of the security sold short. Dividends on short sales are recorded as an expense by the Fund on the ex-dividend date and interest expense is recorded on the accrual basis. The broker retains collateral for the value of the open positions, which is adjusted periodically as the value of the position fluctuates. Securities sold short at June 30, 2015 are reflected within the Schedule of Investments. For the six months ended June 30, 2015, the Fund incurred $22,167 in service fees related to its short sale positions. The amount is included in the Statement of Operations - Expenses - Service fees for securities sold short.

Foreign Currency Translations. The books and records of the Fund are maintained in U.S. dollars. Foreign currencies, investments, and other assets and liabilities are translated into U.S. dollars at current exchange rates. Purchases and sales of investment securities, income, and expenses are translated at the exchange rate prevailing on the respective dates of such transactions. Unrealized gains and losses that result from changes in foreign exchange rates and/or changes in market prices of securities have been included in unrealized appreciation/depreciation on investments and foreign currency translations. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date on investment securities transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of the Fund and the amounts actually received. The portion of foreign currency gains and losses related to fluctuation in exchange rates between the initial purchase trade date and subsequent sale trade date is included in realized gain/(loss) on investments.

Foreign Securities. The Fund may directly purchase securities of foreign issuers. Investing in securities of foreign issuers involves special risks not typically associated with investing in securities of U.S. issuers. The risks include possible revaluation of currencies, the inability to repatriate funds, less complete financial information about companies, and possible future adverse political and economic developments. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than securities of comparable U.S. issuers.

Foreign Taxes. The Fund may be subject to foreign taxes on income, gains on investments, or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.

Restricted Securities. The Fund may invest up to 15% of its net assets in securities for which the markets are restricted. Restricted securities include securities whose disposition is subject to substantial legal or contractual restrictions. The sale of restricted securities often requires more time and results in higher brokerage charges or dealer discounts and other selling expenses than does the sale of securities eligible for trading on national securities exchanges or in the over-the-counter markets. Restricted securities may sell at a price lower than similar securities that are not subject to restrictions on resale. Securities freely saleable among qualified institutional investors under special rules adopted by the SEC may be treated as liquid if they satisfy liquidity standards established by the Board. The continued liquidity of such securities is not as well assured as that of publicly traded securities, and accordingly the Board will monitor their liquidity. At June 30, 2015, the Fund held no restricted securities.

Securities Transactions and Investment Income. Securities transactions are accounted for on the trade date with realized gain/(loss) on investments determined by using the identified cost method. Interest income (including amortization of premium and accretion of discount) is recorded on the accrual basis. Premiums and discounts on debt securities are amortized using the effective yield to maturity method. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities that are recorded as soon after the ex-dividend date as the Fund becomes aware of such dividends.

Determination of Net Asset Value and Calculation of Expenses. Certain administrative expenses are common to, and allocated among, various affiliated funds. Such allocations are made on the basis of each fund’s average net assets or other criteria directly affecting the expenses as determined by the Adviser pursuant to procedures established by the Board.

In calculating the NAV per share of each class, investment income, realized and unrealized gains and losses, redemption fees, and expenses other than class specific expenses are allocated daily to each class of shares based upon the proportion of net assets of each class at the beginning of each day. Distribution expenses are borne solely by the class incurring the expense.

Distributions to Shareholders. Distributions to shareholders are recorded on the ex-dividend date. Distributions to shareholders are based on income and capital gains as determined in accordance with federal income tax regulations, which may differ from income and capital gains as determined under GAAP. These differences are primarily due to differing treatments of income and gains on various investment securities and foreign currency transactions held by the Fund, timing differences, and differing characterizations of distributions made by the Fund. Distributions from net investment income for federal income tax purposes include net realized gains on foreign currency transactions. These book/tax differences are either temporary or permanent in nature. To the extent these differences are permanent, adjustments are made to the appropriate capital accounts in the period when the differences arise. These reclassifications have no impact on the NAV of the Fund.

The tax character of distributions paid during the year ended December 31, 2014 was as follows:

Provision for Income Taxes. The Fund intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). It is the policy of the Fund to comply with the requirements of the Code applicable to regulated investment companies and to distribute substantially all of its net investment company taxable income and net capital gains. Therefore, no provision for federal income taxes is required.

The Fund is permitted to carry capital losses forward for an unlimited period. Capital losses that are carried forward will retain their character as either short term or long term capital losses.

The following summarizes the tax cost of investments and the related net unrealized appreciation/depreciation at June 30, 2015:

The Fund is required to evaluate tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Income tax and related interest and penalties would be recognized by the Fund as tax expense in the Statement of Operations if the tax positions were deemed not to meet the more-likely-than-not threshold. For the six months ended June 30, 2015, the Fund did not incur any income tax, interest, or penalties. As of June 30, 2015, the Adviser has reviewed all open tax years and concluded that there was no impact to the Fund’s net assets or results of operations. The Fund’s federal and state tax returns for the prior three fiscal

years remain open, subject to examination. On an ongoing basis, the Adviser will monitor the Fund’s tax positions to determine if adjustments to this conclusion are necessary.

3. Investment Advisory Agreement and Other Transactions. The Fund has entered into an investment advisory agreement (the “Advisory Agreement”) with the Adviser which provides that the Fund will pay the Adviser a fee, computed daily and paid monthly, at the annual rate of 0.50% of the value of its average daily net assets. In accordance with the Advisory Agreement, the Adviser provides a continuous investment program for the Fund’s portfolio, oversees the administration of all aspects of the Fund’s business and affairs, and pays the compensation of all Officers and Directors of the Fund who are affiliated persons of the Adviser.

There was a reduction in the advisory fee paid to the Adviser relating to certain portfolio holdings, i.e., unsupervised assets, of the Fund with respect to which the Adviser transferred dispositive and voting control to the Fund’s Proxy Voting Committee. During the six months ended June 30, 2015, the Fund’s Proxy Voting Committee exercised control and discretion over all rights to vote or consent with respect to such securities, and the Adviser reduced its fee with respect to such securities by $74.

The Fund pays each Director who is not considered an affiliated person an annual retainer of $9,000 plus $2,000 for each Board meeting attended. Each Director is reimbursed by the Fund for any out of pocket expenses incurred in attending meetings. All Board committee members receive $500 per meeting attended and the Chairman of the Audit Committee and the Lead Director each receive a $2,000 annual fee. A Director may receive a single meeting fee, allocated among the participating funds, for participation in certain meetings held on behalf of multiple funds. Directors who are directors or employees of the Adviser or an affiliated company receive no compensation or expense reimbursement from the Fund.

4. Distribution Plan. The Fund’s Board has adopted a distribution plan (the “Plan”) for the Advisor Class Shares pursuant to Rule 12b-1 under the 1940 Act. Under the Advisor Class Share Plan, payment is authorized to G.distributors, LLC (the “Distributor”), an affiliate of the Adviser, at an annual rate of 0.25% of the average daily net assets of the Advisor Class Shares, the annual limitation under the Plan. Such payments are accrued daily and paid monthly.

5. Portfolio Securities. Purchases and sales of securities during the six months ended June 30, 2015, other than short term securities and U.S. Government obligations, aggregated $1,125,692,791 and $1,272,069,354, respectively.

6. Transactions with Affiliates and Other Arrangements. During the six months ended June 30, 2015, the Fund paid brokerage commissions on security trades of $232,198 to G.research, Inc., an affiliate of the Adviser.

During the six months ended June 30, 2015, the Fund received credits from a designated broker who agreed to pay certain Fund operating expenses. The amount of such expenses paid through this directed brokerage arrangement during this period was $3,065.

The cost of calculating the Fund’s NAV per share is a Fund expense pursuant to the Advisory Agreement. During the six months ended June 30, 2015, the Fund paid or accrued $22,500 to the Adviser in connection with the cost of computing the Fund’s NAV.

As of June 30, 2015, the Fund’s Adviser and its affiliates beneficially owned greater than 25% of the voting securities of the Fund. This includes accounts for which the affiliates of the Adviser have voting control but disclaim pecuniary interest.

7. Line of Credit. The Fund participates in an unsecured line of credit of up to $75,000,000 under which it may borrow up to 15% of its net assets from the custodian for temporary borrowing purposes. Borrowings under this arrangement bear interest at the higher of the sum of the LIBOR rate plus 125 basis points or the sum of the federal funds rate plus 125 basis points at the time of borrowing. This amount, if any, would be included in “Interest expense” in the Statement of Operations. During the six months ended June 30, 2015, there were no borrowings under the line of credit.

8. Capital Stock. The Fund offers Class AAA Shares and Advisor Class Shares to investors without a front-end sales charge. Class AAA Shares are available directly through the Distributor or through the Fund’s transfer agent. Advisor Class Shares are available through registered broker-dealers or other financial intermediaries that have entered into appropriate selling agreements with the Distributor.

The Fund imposes a redemption fee of 2.00% on all classes of shares that are redeemed or exchanged on or before the seventh day after the date of a purchase. The redemption fee is deducted from the proceeds otherwise payable to the redeeming shareholders and is retained by the Fund as an increase in paid-in capital. The redemption fees retained by the Fund during the six months ended June 30, 2015 and the year ended December 31, 2014, if any, can be found in the Statement of Changes in Net Assets under Redemption Fees.

9. Indemnifications. The Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote.

10. Subsequent Events. Management has evaluated the impact on the Fund of all subsequent events occurring through the date the financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.

Board Consideration and Re-Approval of Investment Advisory Agreements (Unaudited)

At its meeting on February 12, 2015, the Board of Directors (“Board”) of the Fund approved the continuation of the investment advisory agreement with the Adviser for the Fund on the basis of the recommendation by the directors who are not “interested persons” of the Fund (the “Independent Board Members”). The following paragraphs summarize the material information and factors considered by the Independent Board Members as well as their conclusions relative to such factors.

Nature, Extent, and Quality of Services. The Independent Board Members considered information regarding the portfolio manager, the depth of the analyst pool available to the Adviser and the portfolio manager, the scope of administrative, shareholder, and other services supervised or provided by the Adviser and the absence of significant service problems reported to the Board. The Independent Board Members noted the experience, length of service, and reputation of the portfolio manager.

Investment Performance. The Independent Board Members reviewed the short, medium, and long term performance of the Fund against a peer group of alternative event driven funds chosen by Lipper as being comparable. The Independent Board Members noted that the Fund’s performance was in the second quartile for the one year and five year periods and that the three year period was in the third quartile.

Profitability. The Independent Board Members reviewed summary data regarding the profitability of the Fund to the Adviser both with an administrative overhead charge and without such a charge. The Independent Board Members also noted that a substantial portion of the Fund’s portfolio transactions were executed by an affiliated broker.

Economies of Scale. The Independent Board Members discussed the major elements of the Adviser’s cost structure and the relationship of those elements to potential economies of scale. The Independent Board Members agreed that the low relative cost structure of the Fund and the low historical profitability of the Fund to the Adviser argued strongly against any concern regarding economies of scale.

Sharing of Economies of Scale. The Independent Board Members noted that the investment management fee schedule for the Fund does not take into account any potential economies of scale that may develop or any losses or diminished profitability to the Adviser in prior years.

Service and Cost Comparisons. The Independent Board Members compared the expense ratios of the investment management fee, other expenses, and total expenses of the Fund with similar expense ratios of the peer group of diversified specialty funds and noted that the Adviser’s management fee includes substantially all administrative services for the Fund as well as investment advisory services. The Independent Board Members noted that the Fund’s expense ratios were at the low end of its peer group. The Independent Board Members also noted that the management fee structure was much lower than that in effect for most of the Gabelli funds. The Independent Board Members were presented with, but did not consider to be material to their decision, various information comparing the advisory fee with the advisory fees for other types of accounts managed by affiliates of the Adviser. The Independent Board Members recognized that the Adviser and its affiliates did not manage other accounts with similar strategies that had fees lower than those charged for the Fund.

Conclusions. The Independent Board Members concluded that the Fund enjoyed highly experienced portfolio management services, good ancillary services, and a reasonable performance record. The Independent Board Members also concluded that the Fund’s expense ratios and the profitability to the Adviser of managing the Fund were lower than normal and that economies of scale were not a significant factor in their thinking at this

Board Consideration and Re-Approval of Investment Advisory Agreements (Unaudited) (Continued)

time. The Independent Board Members did not view the potential profitability of ancillary services as material to their decision. On the basis of the foregoing and without assigning particular weight to any single conclusion, the Independent Board Members determined to recommend continuation of the Advisory Agreement to the full Board.

Based on a consideration of all these factors in their totality, the Board Members, including all of the Independent Board Members, determined that the Fund’s advisory fee was fair and reasonable with respect to the quality of services provided and in light of the other factors described above that the Board deemed relevant. Accordingly, the Board Members determined to approve the continuation of the Fund’s Advisory Agreement. The Board Members based their decision on evaluations of all these factors as a whole and did not consider any one factor as all important or controlling.

Gabelli/GAMCO Funds and Your Personal Privacy

Who are we?

The Gabelli/GAMCO Funds are investment companies registered with the Securities and Exchange Commission under the Investment Company Act of 1940. We are managed by Gabelli Funds, LLC and GAMCO Asset Management Inc., which are affiliated with GAMCO Investors, Inc. GAMCO Investors, Inc. is a publicly held company that has subsidiaries that provide investment advisory or brokerage services for a variety of clients.

What kind of non-public information do we collect about you if you become a fund shareholder?

If you apply to open an account directly with us, you will be giving us some non-public information about yourself. The non-public information we collect about you is:

●

Information you give us on your application form. This could include your name, address, telephone number, social security number, bank account number, and other information.

●

Information about your transactions with us, any transactions with our affiliates, and transactions with the entities we hire to provide services to you. This would include information about the shares that you buy or redeem. If we hire someone else to provide services — like a transfer agent — we will also have information about the transactions that you conduct through them.

What information do we disclose and to whom do we disclose it?

We do not disclose any non-public personal information about our customers or former customers to anyone other than our affiliates, our service providers who need to know such information, and as otherwise permitted by law. If you want to find out what the law permits, you can read the privacy rules adopted by the Securities and Exchange Commission. They are in volume 17 of the Code of Federal Regulations, Part 248. The Commission often posts information about its regulations on its website, www.sec.gov.

What do we do to protect your personal information?

We restrict access to non-public personal information about you to the people who need to know that information in order to provide services to you or the fund and to ensure that we are complying with the laws governing the securities business. We maintain physical, electronic, and procedural safeguards to keep your personal information confidential.

Mario J. Gabelli, CFA, is Chairman and Chief Executive Officer of GAMCO Investors, Inc. that he founded in 1977 and Chief Investment Officer – Value Portfolios of Gabelli Funds, LLC and GAMCO Asset Management Inc. Mr. Gabelli is a summa cum laude graduate of Fordham University and holds an MBA degree from Columbia Business School and Honorary Doctorates from Fordham University and Roger Williams University.

THE GABELLI ABC FUND

One Corporate Center

Rye, New York 10580-1422

t 800-GABELLI (800-422-3554)

f 914-921-5118

e info@gabelli.com

GABELLI.COM

Net Asset Value per share available daily

by calling 800-GABELLI after 7:00 P.M.


BOARD OF DIRECTORS		OFFICERS
Mario J. Gabelli, CFA		Bruce N. Alpert
Chairman and		President
Chief Executive Officer,
GAMCO Investors, Inc.		Andrea R. Mango
		Secretary
Anthony J. Colavita
President,		Agnes Mullady
Anthony J. Colavita, P.C.		Treasurer

Vincent D. Enright		Richard J. Walz
Former Senior Vice President		Chief Compliance
and Chief Financial Officer,		Officer
KeySpan Corp.
		DISTRIBUTOR
Mary E. Hauck
Former Senior Portfolio		G.distributors, LLC
Manager,
Gabelli-O’Connor Fixed		CUSTODIAN, TRANSFER
Income Mutual Fund		AGENT, AND DIVIDEND
Management Co.		DISBURSING AGENT

Kuni Nakamura		State Street Bank and Trust
President,		Company
Advanced Polymer, Inc.
Werner J. Roeder, MD Former Medical Director, Lawrence Hospital		LEGAL COUNSEL Skadden, Arps, Slate, Meagher & Flom LLP

This report is submitted for the general information of the shareholders of The Gabelli ABC Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.

LOGO

Morningstar^® rated The Gabelli ABC Fund Class AAA Shares 4 stars overall and 4 stars for the three, five, and ten year periods ended June 30, 2015 among 100, 100, 59 and 25 Market Neutral funds, respectively. Morningstar Rating^TM is based on risk-adjusted returns.

GAB408Q215SR

There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s Board of Directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.

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.

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.


The Gabelli ABC Fund
Semiannual Report — June 30, 2015

Morningstar^® rated The Gabelli ABC Fund Class AAA Shares 4 stars overall and 4 stars for the three, five, and ten year periods ended June 30, 2015 among 100, 100, 59, and 25 Market Neutral funds, respectively. Morningstar Rating^TM is based on risk-adjusted returns.

		Mario J. Gabelli, CFA
		Portfolio Manager
“Give a man a fish and you feed him for a day. Teach him how to arbitrage and you feed him forever.” – Warren Buffett


The Gabelli ABC Fund
Disclosure of Fund Expenses (Unaudited)
For the Six Month Period from January 1, 2015 through June 30, 2015		Expense Table


	Six Months Ended June 30, 2015 (Unaudited)				Year Ended December 31, 2014
Operations:
Net investment loss		$	(1,194,348	)		$	(2,478,224	)
Net realized gain on investments, securities sold short, and foreign currency transactions			21,817,981				30,120,342
Net change in unrealized appreciation/depreciation on investments, securities sold short, swap contracts, and foreign currency translations			641,038				(16,000,122	)

Net Increase in Net Assets Resulting from Operations			21,264,671				11,641,996

Distributions to Shareholders:
Net investment income
Class AAA			—				(2,857,994	)
Advisor Class			—				(1,513,443	)

			—				(4,371,437	)


Net realized gain
Class AAA			—				(10,440,428	)
Advisor Class			—				(12,601,017	)

			—				(23,041,445	)

Total Distributions to Shareholders			—				(27,412,882	)


Capital Share Transactions:
Class AAA			(567,033	)			221,055,527
Advisor Class			(74,247,096	)			42,644,911

Net Increase/(Decrease) in Net Assets from Capital Share Transactions			(74,814,129	)			263,700,438


Redemption Fees			183				2,887

Net Increase/Decrease in Net Assets			(53,549,275	)			247,932,439
Net Assets:
Beginning of year			1,371,903,914				1,123,971,475

End of period (including undistributed net investment income of $0 and $0, respectively)		$	1,318,354,639			$	1,371,903,914


			Income (Loss) from Investment Operations						Distributions															Ratios to Average Net Assets/ Supplemental Data
Year Ended December 31	Net Asset Value, Beginning of Year		Net Investment Income (Loss) (a)		Net Realized and Unrealized Gain on Investments		Total from Investment Operations		Net Investment Income		Net Realized Gain on Investments		Return of Capital			Total Distributions		Redemption Fees (a)(b)		Net Asset Value, End of Period		Total Return†		Net Assets, End of Period (in 000’s)		Net Investment Income (Loss)		Operating Expenses		Portfolio Turnover Rate
Class AAA
2015(c)		$10.13		$(0.00)(b)		$0.17		$0.17		—		—		—			—		$0.00		$10.30		1.7%		$670,463		(0.05)%(d)		0.61%(d)(e)		149%
2014		10.24		(0.00)(b)		0.12		0.12		$(0.05)		$(0.18)		—			$(0.23)		0.00		10.13		1.2		659,818		(0.04)		0.58		281
2013		9.96		0.06		0.43		0.49		(0.01)		(0.19)		$(0.01)			(0.21)		0.00		10.24		4.9		446,566		0.63		0.58		324
2012		9.76		0.02		0.49		0.51		(0.04)		(0.27)		—			(0.31)		0.00		9.96		5.2		299,111		0.17		0.60		256
2011		9.86		(0.01)		0.20		0.19		(0.08)		(0.21)		—			(0.29)		0.00		9.76		1.9		247,060		(0.06)		0.62		276
2010		9.69		(0.01)		0.41		0.40		—		(0.23)		—			(0.23)		0.00		9.86		4.1		176,169		(0.07)		0.64		363
Advisor Class
2015(c)		$10.05		$(0.02)		$0.17		$0.15		—		—		—			—		$0.00		$10.20		1.5%		$647,892		(0.31)%(d)		0.86%(d)(e)		149%
2014		10.16		(0.03)		0.12		0.09		$(0.02)		$(0.18)		—			$(0.20)		0.00		10.05		0.9		712,086		(0.30)		0.83		281
2013		9.89		0.03		0.43		0.46		(0.00)(b)		(0.19)		$(0.00)	(b)		(0.19)		0.00		10.16		4.7		677,405		0.29		0.83		324
2012		9.69		0.01		0.47		0.48		(0.01)		(0.27)		—			(0.28)		0.00		9.89		4.9		304,468		0.14		0.85		256
2011		9.79		(0.00)(b)		0.16		0.16		(0.05)		(0.21)		—			(0.26)		0.00		9.69		1.6		245,032		(0.05)		0.87		276
2010		9.65		(0.03)		0.40		0.37		—		(0.23)		—			(0.23)		0.00		9.79		3.8		270,772		(0.31)		0.89		363


Unobservable Input	Impact to Value if Input Increases	Impact to Value if Input Decreases
Discount Range	Decrease	Increase


(a)		At June 30, 2015, $92,500,000 of the principal amount was reserved and/or pledged with the custodian for securities sold short and forward foreign exchange contracts.
(b)		Principal amount denoted in British Pounds.
(c)		At June 30, 2015, the Fund had entered into forward foreign exchange contracts with State Street Bank and Trust Co.
(d)		Principal amount denoted in Euros.
(e)		At June 30, 2015, these proceeds are being held at Pershing LLC.
†		Non-income producing security.
††		Represents annualized yield at date of purchase.
ADR		American Depositary Receipt
CPR		Contingent Payment Right
CVR		Contingent Value Right
SDR		Swedish Depositary Receipt


†		Total return represents aggregate total return of a hypothetical $1,000 investment at the beginning of the year and sold at the end of the period including reinvestment of distributions. Total return for a period of less than one year is not annualized.
(a)		Per share amounts have been calculated using the average shares outstanding method.
(b)		Amount represents less than $0.005 per share.
(c)		For the six months ended June 30, 2015, unaudited.
(d)		Annualized.
(e)		The Fund received credits from a designated broker who agreed to pay certain Fund operating expenses. For the six months ended June 30, 2015, there was no impact to the expense ratios.


	Valuation Inputs
	Level 1 Quoted Prices				Level 2 Other Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total Market Value at 6/30/15
INVESTMENTS IN SECURITIES:
ASSETS (Market Value):
Common Stocks:
Electronics		$	11,668,462			$ 52,500		—		$ 11,720,962
Food and Beverage			7,607,594			72,719		—		7,680,313
Health Care			179,080,141			—		$ 147,163		179,227,304
Retail			9,041,872			—		27,300,000		36,341,872
Wireless Communications			5,090,605			—		4,001		5,094,606
Other Industries (a)			542,008,674			—		—		542,008,674
Total Common Stocks			754,497,348			125,219		27,451,164		782,073,731
Preferred Stocks (a)			196,120			—		—		196,120
Rights (a)			140,070			—		3,163,452		3,303,522
Warrants (a)			88,727			—		—		88,727
Convertible Corporate Bonds (a)			—			388,438		—		388,438
Corporate Bonds (a)			—			88,000		—		88,000
U.S. Government Obligations			—			555,893,681		—		555,893,681
TOTAL INVESTMENTS IN SECURITIES – ASSETS		$	754,922,265			$556,495,338		$30,614,616		$1,342,032,219
LIABILITIES (Market Value): Securities Sold Short (a)		$	(60,928,338	)		—		—		$ (60,928,338	)
TOTAL INVESTMENTS IN SECURITIES - LIABILITIES		$	(60,928,338	)		—		—		$ (60,928,338	)
OTHER FINANCIAL INSTRUMENTS: ASSETS (Unrealized Appreciation):* Forward Foreign Exchange Contracts			—			$ 264,727		—		$ 264,727
TOTAL OTHER FINANCIAL INSTRUMENTS:			—			$ 264,727		—		$ 264,727


	Balance as of 12/31/14		Accrued discounts/ (premiums)	Realized gain/ (loss)		Change in unrealized appreciation/ depreciation†		Purchases		Sales			Transfers into Level 3††		Transfers out of Level 3††	Balance as of 06/30/15		Net change in unrealized appreciation/ depreciation during the period on Level 3 investments still held at 06/30/15†
INVESTMENTS IN SECURITIES:
ASSETS (Market Value):
Common Stocks:
Computer Software and Services	$	5,000	—		$ 8,923		$ (5,000)		—	$	(8,923	)		—	—		—		—
Energy and Utilities		0	—		0		0		—		0			—	—		—		—
Healthcare		147,163	—		—		—		—		—			—	—	$	147,163		—
Retail		27,300,000	—		—		—		—		—			—	—		27,300,000		—
Wireless Communications		1	—		—		300		—		—			$3,700	—		4,001		$ 300
Total Common Stocks		27,452,164	—		8,923		(4,700)		—		(8,923	)		3,700	—		27,451,164		300
Rights:
Healthcare		813,758	—		50,000		(49,037)		$137,121		(50,000	)		—	—		901,842		8,963
Retail		—	—		—		322,739		174,871		—			—	—		497,610		322,739
Wireless Communications		1,764,000	—		—		—		—								1,764,000		—
Total Rights		2,577,758	—		50,000		273,702		311,992		(50,000	)		—	—		3,163,452		331,702
TOTAL INVESTMENTS IN SECURITIES	$	30,029,922	—		$58,923		$269,002		$311,992	$	(58,923	)		$3,700	—	$	30,614,616		$332,002


	Gross Amounts of Recognized Assets Presented in the Statement of Assets and Liabilities	Gross Amounts Available for Offset in the Statement of Assets and Liabilities	Net Amounts of Assets Presented in the Statement of Assets and Liabilities

Assets
Forward Foreign Exchange Contracts	$272,974	$(8,247)	$264,727

	Gross Amounts of Recognized Liabilities Presented in the Statement of Assets and Liabilities	Gross Amounts Available for Offset in the Statement of Assets and Liabilities	Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities

Liabilities
Forward Foreign Exchange Contracts	$(8,247)	$8,247	—


	Gross Amounts Not Offset in the Statement of Assets and Liabilities

	Gross Amounts of Assets Presented in the Statement of Assets and Liabilities	Financial Instruments	Cash Collateral Received	Net Amount

Counterparty
State Street Bank & Trust Co.	$264,727	$(264,727)	—	—


Distributions paid from:
Ordinary income (inclusive of short term capital gains)	$	19,527,235
Net long term capital gains		10,906,473

Total distributions paid	$	30,433,708


	Cost/ (Proceeds)				Gross Unrealized Appreciation			Gross Unrealized Depreciation				Net Unrealized Appreciation/ Depreciation
Investments		$	1,336,406,433			$	40,741,412		$	(35,115,626	)		$	5,625,786
Securities sold short			(60,727,724	)			4,640,609			(4,841,223	)			(200,614	)

						$	45,382,021		$	(39,956,849	)		$	5,425,172


By (Signature and Title)*		/s/ Bruce N. Alpert
		Bruce N. Alpert, Principal Executive Officer


By (Signature and Title)*		/s/ Agnes Mullady
		Agnes Mullady, Principal Financial Officer and Treasurer