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, 2016, the net asset value (“NAV”) per Class AAA Share of The Gabelli ABC Fund increased 1.2% compared with an increase of 5.4% 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 period was 0.2%. See page 2 for additional performance information.

Enclosed are the financial statements, including the schedule of investments, as of June 30, 2016.


Average Annual Returns through June 30, 2016 (a) (Unaudited)						Since
	Six Months	1 Year	5 Year	10 Year	15 Year	Inception (5/14/93)
AAA Shares (GABCX)	1.19%	1.83%	2.61%	3.57%	3.81%	5.85%
Advisor Shares (GADVX)	1.10	1.61	2.33	3.33	3.65	5.74
S&P Long-Only Merger Arbitrage Index.	5.43	3.81	3.21	N/A(b)	N/A(b)	N/A(b)
Lipper U.S. Treasury Money Market Fund Average	0.01	0.02	0.01	0.79	1.06	2.28(c)
Bank of America Merrill Lynch 3 Month U.S. Treasury Bill Index	0.15	0.19	0.09	1.04	1.36	2.73
S&P 500 Index	3.84	3.99	12.10	7.42	5.75	9.12(c)

In the current prospectuses dated April 29, 2016, the expense ratios for Class AAA and the Advisor Class Shares are 0.59% and 0.84%, respectively. See page 12 for the expense ratios for the six months ended June 30, 2016. 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 returns 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 01/01/16	Ending Account Value 06/30/16	Annualized Expense Ratio		Expenses Paid During Period*
*The Gabelli ABC Fund*
Actual Fund Return
Class AAA	$1,000.00	$1,011.90		0.62%		$3.10
Advisor Class	$1,000.00	$1,011.00		0.87%		$4.35
Hypothetical 5% Return
Class AAA	$1,000.00	$1,021.78		0.62%		$3.12
Advisor Class	$1,000.00	$1,020.54		0.87%		$4.37

*	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 (182 days), then divided by 366.

The following table presents portfolio holdings as a percent of net assets as of June 30, 2016:


Long Positions
U.S. Government Obligations	57.3	%
Energy and Utilities	11.1	%
Computer Software and Services	5.7	%
Health Care	5.6	%
Specialty Chemicals	3.8	%
Electronics	2.1	%
Entertainment	2.1	%
Building and Construction	1.6	%
Consumer Products	1.4	%
Financial Services	1.3	%
Food and Beverage	1.2	%
Semiconductors	1.2	%
Retail	1.2	%
Telecommunications	1.1	%
Metals and Mining	0.7	%
Cable and Satellite	0.6	%
Hotels and Gaming	0.6	%
Consumer Services	0.5	%
Wireless Communications	0.5	%


Business Services	0.4	%
Machinery	0.4	%
Diversified Industrial	0.2	%
Aerospace	0.2	%
Broadcasting	0.2	%
Publishing	0.2	%
Real Estate Investment Trusts	0.1	%
Computer Hardware	0.1	%
Transportation	0.0	%*
Automotive: Parts and Accessories	0.0	%*
Airlines	0.0	%*
Other Assets and Liabilities (Net)	1.4	%
Equity Contract for Difference Swap Agreements	(0.1	)%

Short Positions
Energy and Utilities	(0.0	)%**
Broadcasting	(0.1	)%
Health Care	(0.9	)%
Building and Construction	(1.7	)%


	100.0	%

*	Amount represents less than 0.05%

**	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 — 43.8%
	Aerospace — 0.2%
38,000	B/E Aerospace Inc.	$	2,037,621	$	1,754,650
35,000	KLX Inc.†		1,377,328		1,085,000

			3,414,949		2,839,650


	Airlines — 0.0%
100	Virgin America Inc.†		5,451		5,621


	Automotive: Parts and Accessories — 0.0%
47,000	Federal-Mogul Holdings Corp.†		343,922		390,570


	Broadcasting — 0.2%
8,000	Cogeco Inc.		155,796		345,710
387,700	Crown Media Holdings Inc., Cl. A†		1,973,683		1,957,885
15,000	MSG Networks Inc., Cl. A†		221,600		230,100

			2,351,079		2,533,695


	Building and Construction — 1.6%
600,000	Lennar Corp., Cl. B		21,534,211		22,350,000
48,000	Norbord Inc.		1,161,166		938,488

			22,695,377		23,288,488


	Business Services — 0.4%
54,000	Blackhawk Network Holdings Inc.†		1,313,909		1,808,460
36,000	Diebold Inc		1,121,186		893,880
52,628	exactEarth Ltd.†		151,089		56,622
47,721	Global Sources Ltd.†		320,306		437,602
20,000	GrainCorp Ltd., Cl. A		162,315		128,725
60,000	R. R. Donnelley & Sons Co.		1,167,000		1,015,200
10,000	The Brink’s Co.		290,866		284,900
40,000	The Interpublic Group of Companies Inc.		748,179		924,000

			5,274,850		5,549,389


	Cable and Satellite — 0.6%
1,000	AMC Networks Inc., Cl. A†		33,167		60,420
15,000	Charter Communications Inc., Cl. A†		3,105,523		3,429,600
55,000	Liberty Global plc, Cl. A†		2,030,215		1,598,300
105,000	Liberty Global plc, Cl. C†		3,802,239		3,008,250
6,821	Liberty Global plc LiLAC, Cl. A†		302,141		220,039
14,977	Liberty Global plc LiLAC, Cl. C†		651,346		486,599
40,000	Sky plc		483,261		451,562

			10,407,892		9,254,770


	Computer Hardware — 0.1%
75,000	Brocade Communications Systems Inc.		648,222		688,500
61,850	Hutchinson Technology Inc.†		220,495		209,671


Shares		Cost		Market Value
10,000	Lexmark International Inc., Cl. A	$	385,415	$	377,500

			1,254,132		1,275,671


	Computer Software and Services — 5.7%
74,500	Ausy†		4,517,756		4,533,165
165,000	Covisint Corp.†		425,420		359,700
194,753	Cvent Inc.†		6,915,858		6,956,577
600,000	Demandware Inc.†		44,913,976		44,940,000
30,000	EMC Corp		823,165		815,100
5,000	Engineering SpA†		357,982		365,109
52,000	iGO Inc.†		163,480		153,920
195,500	inContact Inc.†		2,706,711		2,707,675
5,000	InterXion Holding NV†		147,119		184,400
1,200	KUKA AG		147,932		141,827
110,000	LinkedIn Corp., Cl. A†		21,113,680		20,817,500
14,000	Marketo Inc.†		492,484		487,480
500	Qihoo 360 Technology Co Ltd., ADR†		36,498		36,525
2,000	ReachLocal Inc.†		9,090		9,100
5,000	SciQuest Inc.†		88,325		88,300
100	Xura Inc.†		2,452		2,443
2,000	Yahoo! Inc.†		29,400		75,120

			82,891,328		82,673,941


	Consumer Products — 1.4%
60,000	Avon Products Inc.		361,101		226,800
22,000	Bang & Olufsen A/S†		229,454		192,034
12,000	Edgewell Personal Care Co.†		970,185		1,012,920
22,000	Elizabeth Arden Inc.†		305,470		302,720
645,000	Pacific Brands Ltd.		570,449		507,788
6,000	Skullcandy Inc.†		34,260		36,840
670,000	Tumi Holdings Inc.†		17,916,614		17,915,800

			20,387,533		20,194,902


	Consumer Services — 0.5%
40,000	Apollo Education Group Inc.†		351,652		364,800
300,000	Corinthian Colleges Inc.†		28,312		285
135,000	Gategroup Holding AG		7,320,854		7,105,991
1,000	Liberty Interactive Corp. QVC Group, Cl. A†		27,411		25,370

			7,728,229		7,496,446


	Diversified Industrial — 0.2%
5,000	Fortune Brands Home & Security Inc.		66,455		289,850
30,000	Katy Industries Inc.†		23,298		37,500
40,000	Myers Industries Inc.		415,859		576,000
45,000	Tyco International plc		858,173		1,917,000
17,000	Wartsila OYJ Abp		835,278		689,546

			2,199,063		3,509,896


Shares		Cost		Market Value
	COMMON STOCKS (Continued)
	Electronics — 2.1%
70,000	Alliance Semiconductor Corp.†	$	240,731	$	42,700
55,200	American Science & Engineering Inc.		2,037,285		2,065,032
290,600	Axis Communications AB		11,645,787		11,475,346
127,943	FEI Co.		13,585,411		13,674,548
11,000	MoSys Inc.†		42,078		4,455
110,000	Rofin-Sinar Technologies Inc.†		3,480,210		3,513,400
8,000	Saft Groupe SA		338,593		324,403

			31,370,095		31,099,884


	Energy and Utilities — 11.1%
130,000	AGL Resources Inc.		8,575,179		8,576,100
960,000	Alvopetro Energy Ltd., New York†		985,296		219,203
28,000	Anadarko Petroleum Corp.		2,214,944		1,491,000
15,500	Apache Corp.		794,145		862,885
43,000	Avangrid Inc.		1,667,365		1,980,580
2,800,000	Columbia Pipeline Group Inc.		70,885,281		71,372,000
20,000	Endesa SA		453,617		400,178
40,000	EXCO Resources Inc.†		194,990		52,000
460,000	Gulf Coast Ultra Deep Royalty Trust†		719,884		33,120
4,500	Hess Corp.		222,442		270,450
2,000	ITC Holdings Corp.		77,632		93,640
10,000	Memorial Resource Development Corp.†		146,247		158,800
75,000	National Fuel Gas Co.		4,171,497		4,266,000
60,000	Noble Energy Inc.		2,356,779		2,152,200
100,000	Piedmont Natural Gas Co. Inc.		5,900,386		6,012,000
800,000	Questar Corp.		19,937,742		20,296,000
140,000	Severn Trent plc		3,782,652		4,538,254
12,703	Steel Excel Inc.†		216,540		133,381
10,000	Talen Energy Corp.†		138,872		135,500
314,967	TECO Energy Inc.		8,679,730		8,705,688
180,032	The Empire District Electric Co.		5,989,450		6,115,687
130,000	Weatherford International plc†		1,484,846		721,500
400,000	Westar Energy Inc.		22,585,319		22,436,000
70,000	WesternZagros Resources Ltd.†		245,398		6,231

			162,426,233		161,028,397


	Entertainment — 2.1%
20,000	Carmike Cinemas Inc.†		589,263		602,400
13,000	Discovery Communications Inc., Cl. A†		348,628		327,990


Shares		Cost		Market Value
13,000	Discovery Communications Inc., Cl. C†	$	256,455	$	310,050
500,000	DreamWorks Animation SKG Inc., Cl. A†		19,951,163		20,435,000
260,000	Media General Inc.†		4,105,156		4,469,400
1,500	Scripps Networks Interactive Inc., Cl. A		79,134		93,405
2,000	The Madison Square Garden Co, Cl. A†		179,986		345,020
52,000	Time Warner Inc.		3,675,513		3,824,080

			29,185,298		30,407,345


	Financial Services — 1.3%
78,000	AllianceBernstein Holding LP		1,201,461		1,817,400
2,500	Aspen Insurance Holdings Ltd.		108,766		115,950
430,000	Astoria Financial Corp.		6,536,191		6,591,900
28,000	H&R Block Inc.		603,441		644,000
45,000	Hilltop Holdings Inc.†		861,360		944,550
40,000	Kinnevik AB, Cl. A		1,444,438		1,033,011
60,000	KKR & Co. LP		256,003		740,400
1,400	MasterCard Inc., Cl. A		27,948		123,284
168,637	National Interstate Corp.		4,943,332		5,101,269
55,000	Navient Corp.		341,093		657,250
10,000	Oritani Financial Corp.		103,087		159,900
7,312	Sterling Bancorp		65,721		114,798
5,000	The PNC Financial Services Group Inc.		250,104		406,950
255,000	Wright Investors’ Service Holdings Inc.†		637,500		293,250

			17,380,445		18,743,912


	Food and Beverage — 1.2%
3,330,000	Parmalat SpA		10,792,774		8,654,822
6,000	Pernod Ricard SA		479,591		666,519
6,200,000	Premier Foods plc†		4,423,362		3,404,689
24,000	Remy Cointreau SA		1,467,270		2,063,345
40,000	SABMiller plc		2,437,876		2,327,036
10,850	Snyder’s-Lance Inc.		363,147		367,707
500	The Hershey Co.		56,815		56,745
10,000	Warrnambool Cheese & Butter Factory Co. Holding Ltd.†		68,912		58,844

			20,089,747		17,599,707


	Health Care — 5.5%
13,000	AbbVie Inc.		789,139		804,830
196,000	Alere Inc.†		10,559,252		8,169,280
14,000	Allergan plc†		3,616,336		3,235,260
325,465	ArthroCare Corp. Stub†		0		113,913
92,000	AstraZeneca plc, ADR		3,583,265		2,777,480
800	Bio-Rad Laboratories Inc., Cl. A†		79,952		114,416
479,000	Celator Pharmaceuticals Inc.†		14,411,611		14,456,220


Shares		Cost		Market Value
	COMMON STOCKS (Continued)
	Health Care (Continued)
38,000	Celesio AG	$	1,201,989	$	1,071,135
11,500	Cigna Corp.		1,609,746		1,471,885
50,000	ExamWorks Group Inc.†		1,748,199		1,742,500
43,577	Hansen Medical Inc.†		174,491		173,001
54,000	HeartWare International Inc.†		3,104,056		3,118,500
3,500	Humana Inc.		634,292		629,580
2,000	ICU Medical Inc.†		115,620		225,500
400	Illumina Inc.†		16,234		56,152
14,000	Laboratory Corp. of America Holdings†		1,650,100		1,823,780
298,500	LDR Holding Corp.†		11,030,173		11,029,575
500	Mead Johnson Nutrition Co.		12,000		45,375
5,000	Mylan NV†		252,650		216,200
433,000	Myrexis Inc.†		44,849		25,547
4,000	Perrigo Co. plc		548,411		362,680
366,000	St. Jude Medical Inc.		28,984,407		28,548,000
6,000	Symmetry Surgical Inc.†		77,458		78,780
5,000	XenoPort Inc.†		34,500		35,200

			84,278,730		80,324,789


	Hotels and Gaming — 0.6%
16,000	Belmond Ltd., Cl. A†		180,843		158,401
500	Churchill Downs Inc.		21,323		63,180
12,000	Diamond Resorts International Inc.†		357,360		359,520
20,000	Eldorado Resorts Inc.†		97,487		303,900
220,000	International Game Technology plc		4,166,730		4,122,800
25,000	Ryman Hospitality Properties Inc.		1,076,449		1,266,250
35,000	Starwood Hotels & Resorts Worldwide Inc.		2,618,006		2,588,250

			8,518,198		8,862,301


	Machinery — 0.4%
44,000	Astec Industries Inc.		1,555,122		2,470,600
5,000	Bolzoni SpA†		23,416		23,826
75,000	CNH Industrial NV		647,594		536,250
50,000	Xylem Inc.		1,467,071		2,232,500

			3,693,203		5,263,176


	Metals and Mining — 0.7%
43,000	Alamos Gold Inc., Cl. A		545,262		369,800
350,000	Alcoa Inc.		3,172,687		3,244,500
15,000	AuRico Metals Inc.†		7,983		11,842
185,000	Freeport-McMoRan Inc.		1,989,618		2,060,900
42,000	Newmont Mining Corp.		998,157		1,643,040
12,000	Pan American Silver Corp.		170,418		197,655
10,500	Vulcan Materials Co.		457,522		1,263,780
110,000	Whiting Petroleum Corp.†		2,146,965		1,018,600

			9,488,612		9,810,117


Shares		Cost		Market Value

	Publishing — 0.2%
6,000	Meredith Corp.	$	259,554	$	311,460
125,000	The E.W. Scripps Co., Cl. A†		2,297,598		1,980,000
7,800	tronc Inc.		89,622		107,640

			2,646,774		2,399,100


	Real Estate Investment Trusts — 0.1%
500	American Tower Corp.		7,707		56,805
1,000	Conwert Immobilien Invest SE		13,727		16,064
73,846	Rouse Properties Inc.		1,333,265		1,347,689

			1,354,699		1,420,558


	Retail — 1.1%
6,000	Aaron’s Inc.		152,630		131,340
50,000	CST Brands Inc.		1,644,555		2,154,000
30,000	Krispy Kreme Doughnuts Inc.†		629,010		628,800
22,000	Macy’s Inc.		454,276		739,420
100,000	Office Depot Inc.†		405,498		331,000
1,500,000	Rite Aid Corp.†		11,939,900		11,235,000

			15,225,869		15,219,560


	Semiconductors — 1.2%
200	AIXTRON SE†		1,237		1,212
810,000	Fairchild Semiconductor International Inc.†		15,810,884		16,078,500
20,000	KLA-Tencor Corp.		1,315,313		1,465,000
500	QLogic Corp.†		7,432		7,370

			17,134,866		17,552,082


	Specialty Chemicals — 3.8%
546,500	Axiall Corp.		15,720,891		17,821,365
10,000	Chemtura Corp.†		259,897		263,800
26,000	International Flavors & Fragrances Inc.		2,656,717		3,277,820
3,000	Monsanto Co.		301,670		310,230
25,000	SGL Carbon SE†		488,278		272,722
1,500	Syngenta AG, ADR		122,740		115,185
300,000	The Valspar Corp.		31,666,556		32,409,000

			51,216,749		54,470,122


	Telecommunications — 1.1%
300,000	Asia Satellite Telecommunications Holdings Ltd.		683,347		431,549
1,000	Axia NetMedia Corp.		3,192		3,228
16,500	Harris Corp.		1,320,559		1,376,760
130,000	Koninklijke KPN NV		396,278		469,593
22,000	Level 3 Communications Inc.†		1,026,401		1,132,780
100,000	Pharol SGPS SA		26,205		11,541
349,500	Polycom Inc.†		4,117,375		3,931,875
640,000	Sprint Corp.†		3,259,788		2,899,200


Shares		Cost		Market Value
	COMMON STOCKS (Continued)
	Telecommunications (Continued)
120,000	Telenet Group Holding NV†	$	5,466,764	$	5,448,008

			16,299,909		15,704,534


	Transportation — 0.0%
2,500	XPO Logistics Europe SA†		607,603		552,103


	Wireless Communications — 0.4%
20,000	Blackberry Ltd.†		147,635		134,200
14,000	Metricom Inc.		1,680		1
70,000	Millicom International Cellular SA, SDR		5,309,531		4,260,877
7,500	T-Mobile US Inc.†		121,875		324,525
9,500	United States Cellular Corp.†		362,501		373,065

			5,943,222		5,092,668


	TOTAL COMMON STOCKS		635,814,057		634,563,394


	PREFERRED STOCKS — 0.0%
	Telecommunications — 0.0%
4,000	Cincinnati Bell Inc., 6.750%, Ser. B		83,263		198,160


	RIGHTS — 0.3%
	Food and Beverage — 0.0%
3,750	Warrnambool Cheese & Butter Factory Co. Holding Ltd.†		18,602		2,909


	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		23
50,000	Durata Therapeutics Inc., CVR, expire 12/31/20†		0		0
795,000	Dyax Corp., CVR, expire 12/31/19†		0		882,450
100	Omthera Pharmaceuticals Inc., expire 12/31/20†		0		60
400,000	Sanofi, CVR, expire 12/31/20†		88,100		96,000
739,500	Synergetics USA Inc., CVR†		73,950		73,950
825,000	Teva Pharmaceutical Industries Ltd., CCCP, expire 02/20/23†		401,888		437,250
69,000	Trius Therapeutics, CVR†		0		8,970

			570,036		1,676,286


Shares		Cost		Market Value
	Retail — 0.1%
950,000	Safeway Casa Ley, CVR, expire 01/30/19†	$	166,857	$	332,500
950,000	Safeway PDC, CVR, expire 01/30/17†		8,014		46,360

			174,871		378,860


	Wireless Communications — 0.1%
700,000	Leap Wireless International Inc., CVR, expire 03/14/17†		1,636,304		1,764,000


	TOTAL RIGHTS		2,399,813		3,822,055


	WARRANTS — 0.0%
	Energy and Utilities — 0.0%
32,000	Kinder Morgan Inc., expire 05/25/17†		61,383		544


	Metals and Mining — 0.0%
2,550	HudBay Minerals Inc., expire 07/20/18†		2,886		691

	TOTAL WARRANTS		64,269		1,235


Principal Amount

	CONVERTIBLE CORPORATE BONDS — 0.0%
	Building and Construction — 0.0%
$ 525,000	Layne Christensen Co., 4.250%, 11/15/18		517,714		459,047


	CORPORATE BONDS — 0.0%
	Energy and Utilities — 0.0%
800,000	Texas Competitive Electric Holdings Co. LLC, Ser. B, 10.250%, 11/01/16†		711,567		52,000


	U.S. GOVERNMENT OBLIGATIONS — 57.3%
832,290,000	U.S. Treasury Bills, 0.140% to 0.690%††, 07/07/16 to 05/25/17(a)		831,109,762		831,522,024


	TOTAL INVESTMENTS —101.4%	$	1,470,700,445		1,470,617,915


Principal Amount		Settlement Date		Unrealized Appreciation/ Depreciation
	FORWARD FOREIGN EXCHANGE CONTRACTS (b) — (0.0)%
21,600,000(c)	Deliver British Pounds in exchange for United States Dollars 28,795,349		07/29/16	$	33,043
21,400,000(d)	Deliver Euro Currency in exchange for United States Dollars 23,643,576		07/29/16		(130,350	)
6,500,000(e)	Deliver Swiss Francs in exchange for United States Dollars 6,626,905		07/29/16		(41,851	)

	TOTAL FORWARD FOREIGN EXCHANGE CONTRACTS				(139,158	)


Notional Amount		Termination Date
	EQUITY CONTRACT FOR DIFFERENCE SWAP AGREEMENTS (f) — (0.1)%
$ 970,228	Premier Foods plc		03/31/17		(42,176	)
(1,690,000 Shares)
25,706,498	SABMiller plc		10/14/16		(993,371	)

(424,800 Shares)
	TOTAL EQUITY CONTRACT FOR DIFFERENCE SWAP AGREEMENTS				(1,035,547	)


				Market Value
	SECURITIES SOLD SHORT — (2.7)%
	(Proceeds received $38,678,119)				(39,561,566	)

	Other Assets and Liabilities (Net) — 1.4%				20,200,285


	NET ASSETS — 100.0%			$	1,450,081,929


Shares		Proceeds		Market Value
	SECURITIES SOLD SHORT — (2.7)%
	Broadcasting — (0.1)%
32,731	Nexstar Broadcasting Group Inc., Cl. A	$	1,383,570	$	1,557,341

	Building and Construction — (1.7)%
550,000	Lennar Corp., Cl. A		24,082,396		25,355,000

	Energy and Utilities — (0.0)%
3,750	Range Resources Corp.		149,186		161,775

	Health Care — (0.9)%
317,666	Abbott Laboratories		13,062,967		12,487,450

	TOTAL SECURITIES SOLD SHORT(g)	$	38,678,119	$	39,561,566

(a)	At June 30, 2016, $151,035,000 of the principal amount was reserved and/or pledged with the custodian for securities sold short, equity contract for difference swap agreements, and forward foreign exchange contracts.

(b)	At June 30, 2016, the Fund had entered into forward foreign exchange contracts with State Street Bank and Trust Co.

(c)	Principal amount denoted in British Pounds.

(d)	Principal amount denoted in Euros.

(e)	Principal amount denoted in Swiss Francs

(f)	At June 30, 2016, the Fund had entered into equity contract for difference swap agreements with The Goldman Sachs Group, Inc.

(g)	At June 30, 2016, these proceeds are being held at Pershing LLC.

†	Non-income producing security.

††	Represents annualized yield at date of purchase.

ADR	American Depositary Receipt

CCCP	Contingent Cash Consideration Payment

CPR	Contingent Payment Right

CVR	Contingent Value Right

SDR	Swedish Depositary Receipt

Statement of Assets and Liabilities

June 30, 2016 (Unaudited)


Assets:
Investments, at value (cost $1,470,700,445)	$	1,470,617,915
Cash		1,713
Deposit at brokers (including proceeds from securities sold short of $38,678,119)		38,044,907
Receivable for Fund shares sold		2,050,770
Receivable for investments sold		11,086,439
Dividends and interest receivable		699,584
Prepaid expenses		50,330
Unrealized appreciation on forward foreign exchange contracts		33,043
Receivable for custody fees reimbursement		253,852

Total Assets		1,522,838,553

Liabilities:
Securities sold short, at value		39,561,566
Payable for investments purchased		30,454,097
Payable for Fund shares redeemed		673,610
Payable for investment advisory fees		591,091
Payable for distribution fees		156,108
Payable for accounting fees		11,250
Unrealized depreciation on swap contracts		1,035,547
Unrealized depreciation on forward foreign exchange contracts		172,201
Other accrued expenses		101,154

Total Liabilities		72,756,624

Net Assets
(applicable to 142,594,573 shares outstanding)	$	1,450,081,929

Net Assets Consist of:
Paid-in capital	$	1,437,336,735
Undistributed net investment income		2,036,452
Accumulated net realized gain on investments, securities sold short, and foreign currency transactions		12,861,919
Net unrealized depreciation on investments		(82,530	)
Net unrealized depreciation on securities sold short		(883,447	)
Net unrealized depreciation on swap contracts		(1,035,547	)
Net unrealized depreciation on foreign currency translations		(151,653	)

Net Assets	$	1,450,081,929


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 ($683,421,721 ÷ 66,852,292 shares outstanding)	$	10.22

Advisor Class:
Net Asset Value, offering, and redemption price per share ($766,660,208 ÷ 75,742,281 shares outstanding)	$	10.12

Statement of Operations

For the Six Months Ended June 30, 2016 (Unaudited)


Investment Income:
Dividends (net of foreign withholding taxes of $75,603)	$	4,573,503
Interest		1,513,487
Other income*		253,852

Total Income		6,340,842

Expenses:
Investment advisory fees		3,516,704
Distribution fees - Advisor Class		931,173
Dividend expense on securities sold short		376,115
Custodian fees		65,162
Shareholder communications expenses		54,350
Registration expenses		49,405
Directors’ fees		45,748
Shareholder services fees		33,845
Service fees for securities sold short		102,137
Legal and audit fees		24,068
Accounting fees		22,500
Interest expense		2,324
Miscellaneous expenses		39,527

Total Expenses		5,263,058

Less:
Expenses paid indirectly by broker (See Note 6)		(5,175	)

Net Expenses		5,257,883

Net Investment Income		1,082,959

Net Realized and Unrealized Gain/(Loss) on Investments, Securities Sold Short, Swap Contracts, and Foreign Currency:
Net realized gain on investments		16,925,215
Net realized loss on securities sold short		(1,222,440	)
Net realized loss on swap contracts		(1,116,916	)
Net realized gain on foreign currency transactions		2,057,211

Net realized gain on investments, securities sold short, swap contracts, and foreign currency transactions		16,643,070

Net change in unrealized appreciation/depreciation:
on investments		(1,855,504	)
on securities sold short		2,439,083
on swap contracts		(583,498	)
on foreign currency translations		(789,088	)

Net change in unrealized appreciation/depreciation on investments, securities sold short, swap contracts, and foreign currency translations		(789,007	)

Net Realized and Unrealized Gain/(Loss) on Investments, Securities Sold Short, Swap Contracts, and Foreign Currency		15,854,063

Net Increase in Net Assets Resulting from Operations	$	16,937,022

*	The Fund received a one time reimbursement of custody expenses paid in prior years.

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, 2016 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, 2016. The Fund’s policy is to recognize transfers among Levels as of the beginning of the reporting period.

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 may 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, 2016, 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.

The Fund has entered into equity contract for difference swap agreements with The Goldman Sachs Group, Inc. Details of the swaps at June 30, 2016 are reflected within the Schedule of Investments and further details are as follows:

The Fund’s volume of activity in equity contract for difference swap agreements during the six months ended June 30, 2016 had an average monthly notional amount of approximately $31,931,712.

At June 30, 2016, the value of equity contract for difference swap agreements can be found in the Statement of Assets and Liabilities under Liabilities, Unrealized depreciation on swap contracts. For the six months ended June 30, 2016, the effect of equity contract for difference swap agreements can be found in the Statement of Operations under Net Realized and Unrealized Gain/(Loss) on Investments, Securities Sold Short, Swap Contracts, and Foreign Currency, Net realized loss on swap contracts and Net change in unrealized appreciation/depreciation on swap contracts.

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 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. For the six months ended June 30, 2016, 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, Swap Contracts, and Foreign Currency, within Net realized gain on foreign currency transactions and Net change in unrealized appreciation/depreciation on foreign currency translations.

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, 2016 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, 2016 had an average monthly notional amount of approximately $82,170,000.

At June 30, 2016, 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, and under Liabilities, Unrealized depreciation on forward foreign exchange contracts. For the six months ended June 30, 2016, 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, Swap Contracts, 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, 2016:

Securities Sold Short. The Fund enters 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 and details of collateral at June 30, 2016 are reflected within the Schedule of Investments. For the six months ended June 30, 2016, the Fund incurred $102,137 in service fees related to its investment positions sold short and held by the broker. The amount is included in the Statement of Operations under 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, 2016, 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, 2015 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 depreciation at June 30, 2016:

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, 2016, the Fund did not incur any income tax, interest, or penalties. As of June 30, 2016, 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.

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 receives 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, 2016, other than short term securities and U.S. Government obligations, aggregated $937,419,950 and $827,821,165 respectively.

6. Transactions with Affiliates and Other Arrangements. During the six months ended June 30, 2016, the Fund paid brokerage commissions on security trades of $315,239 to G.research, LLC, an affiliate of the Adviser.

During the six months ended June 30, 2016, 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 $5,175.

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, 2016, 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, 2016, 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 10% of its net assets from the custodian for temporary borrowing purposes. Borrowings under this arrangement bears interest at a floating rate equal to the higher of the overnight Federal Funds rate plus 125 basis points or the 30-DAY LIBOR plus 125 basis points in effect on that day. This amount, if any, would be included in “Interest expense” in the Statement of Operations. During the six months ended June 30, 2016, there were no borrowings outstanding 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, 2016 and the year ended December 31, 2015, 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 24, 2016, 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 Broadridge as being comparable. The Independent Board Members noted that the Fund’s performance was in the first quartile for the one year period and the second quartile for the three year and five year periods.

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 Members 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 and affiliates that provide investment advisory 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, Chief Executive Officer, and Chief Investment Officer - Value Portfolios of GAMCO Investors, Inc. that he founded in 1977, and Chief Investment Officer - Value Portfolios of Gabelli Funds, LLC and GAMCO Asset Management Inc. He is also Chief Executive Officer and Chairman of the Board of Directors of Associated Capital Group, 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.

Ryan N. Kahn is an analyst dedicated to the Gabelli merger arbitrage portfolios, specifically to our U.S. open and closed-end funds. He joined the team in 2013 after working as a generalist in the research department. Mr. Kahn earned a Bachelor of Science in Business Management from Babson College.

Gian Maria Magrini, CFA, is an analyst dedicated to the Gabelli merger arbitrage portfolios, specifically to our U.S. open and closed-end funds. He joined the team in 2013 after serving various roles in the Firm’s operations and research departments. Mr. Magrini earned a Bachelor of Science in Finance from Fordham 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

Chairman and

Chief Executive Officer,

GAMCO Investors, Inc.

Chairman and

Chief Executive Officer,

Associated Capital Group, Inc.

Anthony J. Colavita

President,

Anthony J. Colavita, P.C.

Vincent D. Enright

Former Senior Vice President

and Chief Financial Officer, KeySpan Corp.

Mary E. Hauck

Former Senior Portfolio Manager,

Gabelli-O’Connor Fixed

Income Mutual Fund

Management Co.

Kuni Nakamura

President,

Advanced Polymer, Inc.

Werner J. Roeder, MD

Former Medical Director,

Lawrence Hospital

Bruce N. Alpert

President

Andrea R. Mango
Secretary

Agnes Mullady

Treasurer

Richard J. Walz

Chief Compliance
Officer

DISTRIBUTOR

G.distributors, LLC

CUSTODIAN, TRANSFER AGENT, AND DIVIDEND DISBURSING AGENT

State Street Bank and Trust Company

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.

GAB408Q216SR

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
Disclosure of Fund Expenses (Unaudited)
For the Six Month Period from January 1, 2016 through June 30, 2016		Expense Table



	Six Months Ended June 30, 2016 (Unaudited)				Year Ended December 31, 2015
Operations:
Net investment income/(loss)		$	1,082,959			$	(1,846,939	)
Net realized gain on investments, securities sold short, swap contracts, and foreign currency transactions			16,643,070				38,760,505
Net change in unrealized appreciation/(depreciation) on investments, securities sold short, swap contracts, and foreign currency translations			(789,007	)			(8,485,153	)

Net Increase in Net Assets Resulting from Operations			16,937,022				28,428,413

Distributions to Shareholders:
Net investment income
Class AAA			—				(3,378,976	)
Advisor Class			—				(2,202,145	)

			—				(5,581,121	)

Net realized gain
Class AAA			—				(12,762,320	)
Advisor Class			—				(14,588,339	)

			—				(27,350,659	)

Total Distributions to Shareholders			—				(32,931,780	)

Capital Share Transactions:
Class AAA			44,788,725				(28,513,696	)
Advisor Class			40,832,193				8,619,442

Net Increase/(Decrease) in Net Assets from Capital Share Transactions			85,620,918				(19,894,254	)


Redemption Fees			16,308				1,388

Net Increase/(Decrease) in Net Assets			102,574,248				(24,396,233	)
Net Assets:
Beginning of year			1,347,507,681				1,371,903,914

End of period (including undistributed net investment income of $2,036,452 and $953,493, respectively)		$	1,450,081,929			$	1,347,507,681


			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
2016(c)		$10.10		$0.01			$0.11		$0.12		—			—		—			—		$0.00		$10.22		1.2	%		$683,422		0.29	%(d)		0.62	%(d)(e)(f)		140	%
2015		10.13		(0.00)	(b)		0.24		0.24		$(0.06)			$(0.21)		—			$(0.27)		0.00		10.10		2.3			630,205		(0.01)			0.59	(e)(f)		276
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	(f)		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	(f)		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
Advisor Class
2016(c)		$10.01		$0.00	(b)		$0.11		$0.11		—			—		—			—		$0.00		$10.12		1.1	%		$766,660		0.04	(d)		0.87	%(d)(e)(f)		140	%
2015		10.05		(0.03)			0.23		0.20		$(0.03)			$(0.21)		—			$(0.24)		0.00		10.01		2.0			717,303		(0.27)			0.84	(e)(f)		276
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	(f)		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	(f)		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


	Valuation Inputs
	Level 1 Quoted Prices		Level 2 Other Significant Observable Inputs		Level 3 Significant Unobservable Inputs		Total Market Value at 6/30/16
OTHER FINANCIAL INSTRUMENTS:*
ASSETS (Unrealized Appreciation):
FORWARD CURRENCY EXCHANGE CONTRACTS
Forward Foreign Exchange Contracts		—		$ 33,043		—		$ 33,043
LIABILITIES (Unrealized Depreciation):
EQUITY CONTRACTS
Contract for Difference Swap Agreements		—		(1,035,547)		—		(1,035,547)
FORWARD CURRENCY EXCHANGE CONTRACTS
Forward Foreign Exchange Contracts		—		(172,201)		—		(172,201)
TOTAL OTHER FINANCIAL INSTRUMENTS:		—		$(1,174,705)		—		$(1,174,705)


Notional Amount	Equity Security Received	Interest Rate/ Equity Security Paid	Termination Date	Net Unrealized Depreciation
		One month LIBOR plus 90 bps plus
	Market Value Appreciation on:	Market Value Depreciation on:

$970,228 (1,690,000 Shares)	Premier Foods plc	Premier Foods plc	3/31/17		$ (42,176	)
$25,706,498 (424,800 Shares)	SABMiller plc	SABMiller plc	10/14/16		(993,371	)

					$(1,035,547	)


	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		$33,043		$(33,043)		—

	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
Equity Contract for Difference
Swap Agreements		$1,035,547		—		$1,035,547
Forward Foreign Exchange
Contracts		172,201		$(33,043)		139,158

Total		$1,207,748		$(33,043)		$1,174,705


	Gross Amounts Not Offset in the Statement of Assets and Liabilities
	Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities		Financial Instruments		Cash Collateral Pledged		Net Amount
Counterparty
State Street Bank & Trust Co.		$139,158		$(139,158)		—		—
The Goldman Sachs Group, Inc.		1,035,547		(1,035,547)		—		—

Total		$1,174,705		$(1,174,705)		—		—


Distributions paid from:*
Ordinary income (inclusive of short term capital gains)	$	28,045,478
Net long term capital gains		8,066,886

Total distributions paid.	$	36,112,364


	Cost/ (Proceeds)				Gross Unrealized Appreciation			Gross Unrealized Depreciation				Net Unrealized Depreciation
Investments		$	1,475,502,293			$	22,213,815		$	(27,098,193	)		$	(4,884,378	)
Securities sold short			(38,678,119	)			575,517			(1,458,964	)			(883,447	)

						$	22,789,332		$	(28,557,157	)		$	(5,767,825	)


	Six Months Ended June 30, 2016 (Unaudited)						Year Ended December 31, 2015
	Shares			Amount			Shares			Amount
Class AAA
Shares sold		5,492,813		$	55,385,545			5,445,366		$	56,087,852
Shares issued upon reinvestment of distributions		—			—			1,589,608			16,086,829
Shares redeemed		(1,044,663	)		(10,596,820	)		(9,765,966	)		(100,688,377	)

Net increase/(decrease)		4,448,150		$	44,788,725			(2,730,992	)	$	(28,513,696	)

Advisor Class
Shares sold		19,932,843		$	199,808,234			30,704,531		$	312,365,864
Shares issued upon reinvestment of distributions		—			—			1,306,706			13,106,260
Shares redeemed		(15,838,951	)		(158,976,041	)		(31,237,934	)		(316,852,682	)

Net increase		4,093,892		$	40,832,193			773,303		$	8,619,442


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