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, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

For the six months ended June 30, 2017, the net asset value (“NAV”) per Class AAA Share of The Gabelli ABC Fund increased 1.4% compared with an increase of 3.0% 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 0.3%. See page 2 for additional performance information.

Enclosed are the financial statements, including the schedule of investments, as of June 30, 2017.


Average Annual Returns through June 30, 2017 (a) (Unaudited)																Since
	Six Months			1 Year			5 Year			10 Year			15 Year			Inception (5/14/93)
AAA Shares (GABCX)		1.38	%		3.28	%		3.16	%		2.88	%		3.85	%		5.74	%
Advisor Shares (GADVX)		1.19			2.95			2.90			2.61			3.67			5.62
S&P Long-Only Merger Arbitrage Index		2.97			4.31			4.51			N/A	(b)		N/A	(b)		N/A	(b)
Lipper U.S. Treasury Money Market Fund Average		0.13			0.16			0.04			0.35			0.94			2.19	(c)
Bank of America Merrill Lynch 3 Month U.S. Treasury Bill Index		0.31			0.49			0.17			0.58			1.30			2.63
S&P 500 Index		9.34			17.90			14.63			7.18			8.34			9.47	(c)

In the current prospectuses dated April 28, 2017, the expense ratios for Class AAA and the Advisor Class Shares are 0.60% and 0.85%, respectively. See page 12 for the expense ratios for the six months ended June 30, 2017. 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 for periods prior to December 31, 2007. The Fund imposes a 2% redemption fee on shares sold or exchanged within seven days after 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 01/01/17		Ending Account Value 06/30/17		Annualized Expense Ratio			Expenses Paid During Period*
*The Gabelli ABC Fund*
Actual Fund Return
Class AAA		$1,000.00		$1,013.80		0.56	%		$2.80
Advisor Class		$1,000.00		$1,011.90		0.81	%		$4.04
Hypothetical 5% Return
Class AAA		$1,000.00		$1,022.07		0.56	%		$2.81
Advisor Class		$1,000.00		$1,020.83		0.81	%		$4.06

*	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, 2017:

Long Positions


U.S. Treasury Bills	63.2	%
Health Care	10.1	%
Retail	5.8	%
Energy and Utilities	3.1	%
Telecommunications	2.8	%
Building and Construction	2.5	%
Financial Services	1.8	%
Food and Beverage	1.8	%
Entertainment	1.4	%
Cable and Satellite	1.3	%
Transportation	1.1	%
Computer Hardware	0.9	%
Electronics	0.9	%
Business Services	0.6	%
Metals and Mining	0.5	%
Wireless Communications	0.5	%
Machinery	0.4	%
Specialty Chemicals	0.4	%
Automotive: Parts and Accessories	0.3	%
Broadcasting	0.3	%
Computer Software and Services	0.3	%


Diversified Industrial	0.3	%
Semiconductors	0.3	%
Consumer Products	0.2	%
Hotels and Gaming	0.2	%
Publishing	0.2	%
Aerospace	0.1	%
Aviation: Parts and Services	0.1	%
Real Estate	0.1	%
Consumer Services	0.0	%*
Paper and Forest Products	0.0	%*
Real Estate Investment Trusts	0.0	%*
Closed-End Funds	0.0	%*
Other Assets and Liabilities (Net)	0.6	%

Short Positions
Building and Construction	(2.1	)%
Energy and Utilities	(0.0	)%**

	100.0	%

*	Amount represents less than 0.05%

**	Amount represents greater 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 — 38.1%
		Aerospace — 0.1%
	30,000	KLX Inc.†	$	1,107,961	$	1,500,000

		Automotive: Parts and Accessories — 0.3%
	413,000	Federal-Mogul Holdings Corp.†		3,997,979		4,130,000
	4,500	Mobileye NV†		276,353		282,600
	2,000	West Marine Inc.		25,670		25,700

				4,300,002		4,438,300

		Aviation: Parts and Services — 0.1%
	65,000	Arconic Inc.		1,438,229		1,472,250

		Broadcasting — 0.3%
	8,000	Cogeco Inc.		155,796		416,410
	15,000	MSG Networks Inc., Cl. A†		221,600		336,750
	80,000	Tribune Media Co., Cl. A		3,179,546		3,261,600

				3,556,942		4,014,760

		Building and Construction — 2.5%
	107,500	Canam Group Inc.		962,585		1,019,625
	38,000	Johnson Controls International plc		759,414		1,647,680
	705,000	Lennar Corp., Cl. B		25,429,436		31,703,850
	48,000	Norbord Inc., Toronto		1,161,166		1,494,263

				28,312,601		35,865,418

		Business Services — 0.6%
	10,000	Blackhawk Network Holdings Inc.†		245,132		436,000
	31,800	CardConnect Corp.†		478,151		478,590
	100,000	Diebold Nixdorf Inc.		2,633,167		2,800,000
	52,628	exactEarth Ltd.†		151,089		50,729
	500,000	Gerber Scientific Inc., Escrow†		0		0
	65,059	Global Sources Ltd.†		608,205		1,301,180
	20,000	GrainCorp Ltd., Cl. A		162,315		145,572
	127,000	Havas SA		1,311,207		1,335,361
	5,001	LSC Communications Inc.		109,816		107,011
	45,033	RR Donnelley & Sons Co.		864,719		564,714
	500	SAVE SpA		11,556		11,873
	633,500	TIO Networks Corp.†		1,606,493		1,626,739

				8,181,850		8,857,769

		Cable and Satellite — 1.3%
	1,000	AMC Networks Inc., Cl. A†		33,167		53,410
	13,000	Charter Communications Inc., Cl. A†		2,715,435		4,379,050
	55,000	Liberty Global plc, Cl. A†		2,030,215		1,766,600
	105,000	Liberty Global plc, Cl. C†		3,802,239		3,273,900
	8,020	Liberty Global plc LiLAC, Cl. A†		261,943		174,595
	20,576	Liberty Global plc LiLAC, Cl. C†		718,896		440,532


Shares			Cost		Market Value
	650,000	Sky plc	$	8,052,615	$	8,415,171

				17,614,510		18,503,258

		Computer Hardware — 0.9%
	1,035,000	Brocade Communications Systems Inc.		12,823,850		13,051,350

		Computer Software and Services — 0.3%
	165,000	Covisint Corp.†		425,419		404,250
	32,000	Dalenys†		313,123		317,646
	130,000	Digi International Inc.†		1,641,302		1,319,500
	22,000	Donnelley Financial Solutions, Inc.†		588,067		505,120
	52,000	iGO Inc.†		163,480		160,680
	4,000	InterXion Holding NV†		114,877		183,120
	6,400	Rightside Group Ltd.†		68,512		67,968
	200	Synchronoss Technologies Inc.†		3,301		3,290
	80,000	Xactly Corp.†		1,245,600		1,252,000

				4,563,681		4,213,574

		Consumer Products — 0.2%
	100	Accell Group		3,366		3,276
	85,000	Avon Products Inc.†		460,858		323,000
	22,000	Bang & Olufsen A/S†		229,454		368,337
	20,000	Edgewell Personal Care Co.†		1,569,385		1,520,400

				2,263,063		2,215,013

		Consumer Services — 0.0%
	1,000	Liberty Interactive Corp. QVC Group, Cl. A†		27,411		24,540

		Diversified Industrial — 0.3%
	5,000	Fortune Brands Home & Security Inc.		66,455		326,200
	150,000	Haldex AB†		1,813,520		1,887,308
	10,000	Handy & Harman Ltd.†		271,621		314,000
	30,000	Katy Industries Inc.†		23,298		1,260
	40,000	Myers Industries Inc.		415,859		718,000
	10,400	SLM Solutions Group AG†		359,659		457,318
	16,000	Wartsila OYJ Abp		781,847		945,702

				3,732,259		4,649,788

		Electronics — 0.9%
	290,600	Axis Communications AB		11,645,787		11,741,693
	72,000	Hitachi Kokusai Electric Inc.		1,614,116		1,677,813

				13,259,903		13,419,506

		Energy and Utilities — 3.1%
	64,800	Alerion Cleanpower SpA		177,654		203,235
	900,000	Alvopetro Energy Ltd., Toronto†		920,554		124,923
	25,000	Anadarko Petroleum Corp.		1,915,206		1,133,500
	11,500	Apache Corp.		518,004		551,195
	36,000	Avangrid Inc.		1,395,000		1,589,400


Shares			Cost		Market Value
		COMMON STOCKS (Continued)
		Energy and Utilities (Continued)
	5,000	Delta Natural Gas Co. Inc.	$	150,230	$	152,350
	20,000	Endesa SA		453,617		460,744
	8,654	EnerNOC Inc.†		66,030		67,069
	1,000	Etablissements Maurel et Prom†		4,369		3,906
	1,667	EXCO Resources Inc.†		102,900		4,417
	44,000	Gas Natural Inc.		552,528		567,600
	500,000	Gulf Coast Ultra Deep Royalty Trust†.		564,334		32,500
	43,150	Hafslund ASA, Cl. A		497,628		558,191
	4,500	Hess Corp.		222,442		197,415
	60,000	National Fuel Gas Co.		3,198,578		3,350,400
	88,000	Noble Energy Inc.		3,409,817		2,490,400
	9,000	Rice Energy Inc.†		223,160		239,670
	125,000	Severn Trent plc		3,381,011		3,552,450
	10,000	TerraForm Global Inc., Cl. A†		49,425		50,500
	450,000	Weatherford International plc†		2,841,196		1,741,500
	514,000	Westar Energy Inc.		28,998,254		27,252,280
	70,000	WesternZagros Resources Ltd.†		245,398		14,844
	2,000	WGL Holdings Inc.		165,770		166,860

				50,053,105		44,505,349

		Entertainment — 1.4%
	13,000	Discovery Communications Inc., Cl. A†		348,628		335,790
	13,000	Discovery Communications Inc., Cl. C†		256,455		327,730
	2,000	Liberty Media Corp. -Liberty Braves, Cl. A†		48,868		47,780
	1,500	Scripps Networks Interactive Inc., Cl. A		79,134		102,465
	2,000	The Madison Square Garden Co, Cl. A†		179,986		393,800
	180,000	Time Warner Inc.		16,299,565		18,073,800

				17,212,636		19,281,365

		Financial Services — 1.8%
	7,000	Alimco Financial Corp.†		240,731		89,600
	72,000	AllianceBernstein Holding LP		921,024		1,702,800
	38,000	Allied World Assurance Co. Holdings AG		1,983,022		2,010,200
	355,000	Astoria Financial Corp.		5,315,230		7,153,250
	3,355	B. Riley Financial Inc.		90,996		62,235
	42,000	CoBiz Financial Inc.		684,618		730,800
	20,000	Fidelity & Guaranty Life		614,520		621,000
	1,016,432	Fortress Investment Group LLC, Cl. A		7,930,779		8,121,292
	40,000	Kinnevik AB, Cl. A		1,346,449		1,415,362
	60,000	KKR & Co. LP		217,003		1,116,000


Shares			Cost		Market Value
	1,000	Mastercard Inc., Cl. A	$	19,963	$	121,450
	52,700	MoneyGram International Inc.†		929,513		909,075
	40,000	Navient Corp.		292,552		666,000
	32,500	Nordnet AB, Cl. B†		136,494		146,593
	36,598	OneBeacon Insurance Group Ltd., Cl. A		667,825		667,181
	10,000	Oritani Financial Corp.		103,087		170,500
	100	Patriot National Inc.†		968		212
	2,200	Topdanmark A/S†		62,593		70,254
	18,000	Waddell & Reed Financial Inc., Cl. A		341,668		339,840
	100	Wolverine Bancorp Inc.		3,930		4,015
	238,000	Wright Investors’ Service Holdings Inc.†		595,000		158,270

				22,497,965		26,275,929

		Food and Beverage — 1.8%
	5,544,978	Parmalat SpA		17,729,250		19,189,624
	5,000	Pernod Ricard SA		370,584		669,587
	5,050,000	Premier Foods plc†		3,507,625		2,663,849
	24,000	Remy Cointreau SA		1,467,270		2,802,842
	9,718	Snyder’s-Lance Inc.		326,074		336,437
	2,000	The Hershey Co.		205,020		214,740

				23,605,823		25,877,079

		Health Care — 10.0%
	70,000	Akorn Inc.†		2,315,101		2,347,800
	150,000	Albany Molecular Research Inc.†		3,234,177		3,255,000
	82,000	Alere Inc.†		4,202,369		4,115,580
	19,000	Allergan plc		4,551,480		4,618,710
	90,000	AstraZeneca plc, ADR		3,478,574		3,068,100
	800	Bio-Rad Laboratories Inc., Cl. A†		79,952		181,048
	37,000	Celesio AG		1,170,356		1,130,445
	10,000	Cigna Corp.		1,387,539		1,673,900
	136,000	CR Bard Inc.		41,367,677		42,990,960
	16,000	Depomed Inc.†		310,254		171,840
	20,000	Endo International plc†		234,840		223,400
	1,800	Humana Inc.		317,801		433,116
	2,000	ICU Medical Inc.†		115,620		345,000
	160,941	Idorsia Ltd.†		1,656,880		3,037,889
	400	Illumina Inc.†		16,234		69,408
	3,300	Incyte Corp.†		399,562		415,503
	640,000	Innocoll Holdings plc†		1,373,960		1,452,800
	500	LifeWatch AG†		7,114		7,900
	5,000	Mylan NV†		245,704		194,100
	433,000	Myrexis Inc.†		44,849		33,146
	6,200	Nexvet Biopharma plc†		41,261		41,416
	67,000	Novadaq Technologies Inc.†		780,537		785,240
	52,000	Nutraceutical International Corp.		2,173,355		2,165,800


Shares			Cost		Market Value
		COMMON STOCKS (Continued)
		Health Care (Continued)
	1,000	PAREXEL International Corp.†	$	87,162	$	86,910
	410,000	Patheon NV†		14,234,298		14,300,800
	3,500	Perrigo Co. plc		332,339		264,320
	2,000	SciClone Pharmaceuticals Inc.†		21,910		22,000
	200,000	STADA Arzneimittel AG		13,692,351		14,183,247
	32,300	Syneron Medical Ltd.†		354,645		353,685
	523,500	The Spectranetics Corp.†		20,092,728		20,102,400
	210,669	VCA Inc.†		19,150,751		19,446,855
	31,800	VWR Corp.†		1,052,739		1,049,718
	6,000	Zimmer Biomet Holdings Inc.		706,537		770,400

				139,230,656		143,338,436

		Hotels and Gaming — 0.2%
	30,000	Belmond Ltd., Cl. A†		357,851		399,000
	500	Churchill Downs Inc.		21,323		91,650
	12,000	Eldorado Resorts Inc.†		56,605		240,000
	45,000	Intrawest Resorts Holdings Inc.†		1,064,428		1,068,300
	25,000	Ryman Hospitality Properties Inc.		1,076,449		1,600,250

				2,576,656		3,399,200

		Machinery — 0.4%
	28,000	Astec Industries Inc.		998,791		1,554,280
	140,000	CNH Industrial NV		1,121,455		1,593,200
	45,000	CNH Industrial NV, Borsa Italiana		383,886		509,600
	40,000	Xylem Inc.		1,129,100		2,217,200

				3,633,232		5,874,280

		Metals and Mining — 0.5%
	24,000	Alamos Gold Inc., Cl. A		235,742		172,320
	42,000	Ampco-Pittsburgh Corp.		398,580		619,500
	200,000	Freeport-McMoRan Inc.†		2,179,472		2,402,000
	42,000	Newmont Mining Corp.		998,157		1,360,380
	12,000	Pan American Silver Corp.		170,418		201,820
	10,500	Vulcan Materials Co.		457,522		1,330,140
	80,000	Whiting Petroleum Corp.†		1,188,029		440,800

				5,627,920		6,526,960

		Paper and Forest Products — 0.0%
	142,300	Tembec Inc.†		452,536		460,873

		Publishing — 0.2%
	5,000	Meredith Corp.		214,965		297,250
	14,000	Telegraaf Media Groep NV†		89,203		98,611
	130,000	The E.W. Scripps Co., Cl. A†		2,322,198		2,315,300
	6,000	tronc Inc.†		68,490		77,340

				2,694,856		2,788,501


Shares			Cost		Market Value
		Real Estate — 0.1%
	63,200	Forestar Group Inc.†	$	893,931	$	1,083,880


		Real Estate Investment Trusts — 0.0%
	500	American Tower Corp.		7,707		66,160
	3,600	Eurosic		204,472		208,671
	500	First Potomac Realty Trust		5,565		5,555
	6,900	Parkway Inc.		157,948		157,941

				375,692		438,327

		Retail — 5.7%
	126,000	Cabela’s Inc.†		7,580,106		7,486,920
	1,000,000	Kate Spade & Co.†		18,454,778		18,490,000
	22,000	Macy’s Inc.		454,276		511,280
	144,000	Panera Bread Co., Cl. A†		45,045,907		45,308,160
	1,635,000	Rite Aid Corp.†		13,144,378		4,823,250
	127,000	Whole Foods Market Inc.		5,329,530		5,347,970

				90,008,975		81,967,580

		Semiconductors — 0.3%
	129,400	AIXTRON SE†		524,509		909,675
	2,000	MoSys Inc.†		44,242		3,420
	30,000	NXP Semiconductors NV†		2,954,129		3,283,500

				3,522,880		4,196,595

		Specialty Chemicals — 0.4%
	13,200	International Flavors & Fragrances Inc.		1,368,521		1,782,000
	6,600	Linde AG		1,094,574		1,249,834
	14,000	Monsanto Co.		1,465,102		1,657,040
	50,000	SGL Carbon SE†		707,892		621,045
	38,057	Valvoline Inc.		842,963		902,712

				5,479,052		6,212,631

		Telecommunications — 2.8%
	300,000	Asia Satellite Telecommunications Holdings Ltd.		683,347		319,310
	14,000	Harris Corp.		1,114,460		1,527,120
	130,000	Koninklijke KPN NV		396,278		415,892
	260,000	Level 3 Communications Inc.†		14,375,198		15,418,000
	14,000	Lumos Networks Corp.†		247,870		250,180
	52,000	NeuStar Inc., Cl. A†		1,720,858		1,734,200
	100,000	Pharol SGPS SA†		26,205		34,836
	620,000	Sprint Corp.†		3,139,260		5,090,200
	4,000	Straight Path Communications Inc., Cl. B†		719,299		718,600
	90,000	Telenet Group Holding NV†		4,100,841		5,669,073
	400,000	West Corp.		9,251,168		9,328,000

				35,774,784		40,505,411

		Transportation — 1.1%
	775,000	Abertis Infraestructuras SA		14,242,001		14,357,425


Shares			Cost		Market Value
		COMMON STOCKS (Continued)
		Transportation (Continued)
	2,500	XPO Logistics Europe SA†	$	607,603	$	562,867

				14,849,604		14,920,292

		Wireless Communications — 0.5%
	10,000	Blackberry Ltd.†		68,396		99,900
	1,000	DGC One AB		28,852		29,675
	112,000	Millicom International Cellular SA, SDR		6,905,904		6,615,215
	7,500	T-Mobile US Inc.†		121,875		454,650
	13,000	United States Cellular Corp.†		491,946		498,160

				7,616,973		7,697,600

		TOTAL COMMON STOCKS		527,289,538		547,575,814

		CLOSED-END FUNDS — 0.0%
	2,000	Altaba Inc.†		29,400		108,960

		PREFERRED STOCKS — 0.0%
		Financial Services — 0.0%
	9,968	Steel Partners Holdings LP, 6.000%, 02/07/26		235,891		216,804

		Telecommunications — 0.0%
	3,000	Cincinnati Bell Inc., 6.750%, Ser. B		62,529		150,030

		TOTAL PREFERRED STOCKS		298,420		366,834

		RIGHTS — 0.2%
		Energy and Utilities — 0.0%
	15,000	Interoil Contingent Resource Payment†		62,700		62,700

		Entertainment — 0.0%
	201,000	Media General Inc., expire 12/31/17†		0		343,710

		Health Care — 0.1%
	110,600	Adolor Corp., CPR, expire 07/01/19†		0		28,756
	187,969	Ambit Biosciences Corp., CVR†		0		112,781
	135,000	American Medical Alert Corp., CPR†		0		1,350
	54,000	Chelsea Therapeutics International Ltd., CVR†		5,940		0
	5,000	Community Health Systems Inc., CVR†		158		97
	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		152,000


Shares			Cost		Market Value
	739,500	Synergetics USA Inc., CVR†	$	73,950	$	73,950
	825,000	Teva Pharmaceutical Industries Ltd., CCCP, expire 02/20/23†		401,888		0
	12,000	Tobira Therapeutics Inc.†		164,880		164,880

				734,916		1,416,324

		Retail — 0.1%
	950,000	Safeway Casa Ley, CVR, expire 01/30/19†		166,857		460,750
	950,000	Safeway PDC, CVR, expire 01/30/18†		0		14,250

				166,857		475,000

		TOTAL RIGHTS		964,473		2,297,734

		WARRANTS — 0.0%
		Metals and Mining — 0.0%
	2,550	Hudbay Minerals Inc., expire 07/20/18†		2,886		472


Principal Amount
		CONVERTIBLE CORPORATE BONDS — 0.0%
		Building and Construction — 0.0%
	$ 525,000	Layne Christensen Co., 4.250%, 11/15/18		520,556		469,547

		Energy and Utilities — 0.0%
	800,000	Texas Competitive Electric Holdings Co. LLC, 10.250%, 11/01/18†		0		0

		TOTAL CONVERTIBLE CORPORATE BONDS		520,556		469,547

		CORPORATE BONDS — 0.0%
		Health Care — 0.0%
	65,000	Constellation Health Promissory Note, PIK, 5.000%, 01/31/24		27,950		27,950

		U.S. GOVERNMENT OBLIGATIONS — 63.2%
	910,912,000	U.S. Treasury Bills, 0.573% to 1.158%††, 07/13/17 to 05/24/18(a)		908,086,298		907,902,680

		TOTAL INVESTMENTS — 101.5%	$	1,437,219,521	$	1,458,749,991


Principal Amount		Settlement Date		Unrealized Appreciation/ Depreciation
	FORWARD FOREIGN EXCHANGE CONTRACTS (b) — (0.0)%
11,000,000(c)	Deliver British Pounds in exchange for United States Dollars 14,233,340		07/28/17	$	(107,177	)
56,000,000(d)	Deliver Euro Currency in exchange for United States Dollars 63,796,992		07/28/17		(261,340	)

	TOTAL FORWARD FOREIGN EXCHANGE CONTRACTS				(368,517	)


Notional Amount		Termination Date
	EQUITY CONTRACT FOR DIFFERENCE SWAP AGREEMENTS (e) — 0.0%
$862,684	Premier Foods plc		03/29/18		28,782

(1,690,000 Shares)

				Market Value
	SECURITIES SOLD SHORT — (2.1)%
	(Proceeds received $24,929,872)				(29,456,070	)

	Other Assets and Liabilities (Net) — 0.6%				8,757,396

	NET ASSETS — 100.0%			$	1,437,711,582


Shares			Proceeds		Market Value
		SECURITIES SOLD SHORT — (2.1)%
		Building and Construction — (2.1)%
	550,000	Lennar Corp., Cl. A	$	24,810,869	$	29,326,000

		Energy and Utilities — (0.0)%
	2,220	EQT Corp.		119,003		130,070

		TOTAL SECURITIES SOLD SHORT(f)	$	24,929,872	$	29,456,070


(a)		At June 30, 2017, $109,250,000 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, 2017, 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)		At June 30, 2017, the Fund had entered into an equity contract for difference swap agreement with The Goldman Sachs Group, Inc.
(f)		At June 30, 2017, these proceeds were 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, 2017 (Unaudited)


Assets:
Investments, at value (cost $1,437,219,521)	$1,458,749,991
Cash	50,214
Deposit at brokers	29,203,425
Receivable for investments sold	923,436
Receivable for Fund shares sold	1,153,827
Dividends and interest receivable	895,895
Prepaid expenses	75,975
Unrealized appreciation on swap contracts	28,782

Total Assets	1,491,081,545

Liabilities:
Securities sold short, at value (proceeds $24,929,872)	29,456,070
Payable for investments purchased	21,277,276
Payable for Fund shares redeemed	1,344,796
Payable for investment advisory fees	588,631
Payable for distribution fees	168,388
Payable for accounting fees	11,250
Unrealized depreciation on forward foreign exchange contracts	368,517
Other accrued expenses	155,035

Total Liabilities	53,369,963

Net Assets
(applicable to 140,281,466 shares outstanding)	$1,437,711,582

Net Assets Consist of:
Paid-in capital	$1,412,553,966
Undistributed net investment income	3,553,017
Accumulated net realized gain on investments, securities sold short, swap contracts, and foreign currency transactions	4,937,257
Net unrealized appreciation on investments	21,530,470
Net unrealized depreciation on securities sold short	(4,526,198	)
Net unrealized appreciation on swap contracts	28,782
Net unrealized depreciation on foreign currency translations	(365,712	)

Net Assets	$1,437,711,582

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 ($613,298,968 ÷ 59,493,585 shares outstanding)			$10.31

Advisor Class:
Net Asset Value, offering, and redemption price per share ($824,412,614 ÷ 80,787,881 shares outstanding)			$10.20

Statement of Operations

For the Six Months Ended June 30, 2017 (Unaudited)


Investment Income:
Dividends (net of foreign withholding taxes of $185,331)	$	5,041,027
Interest		2,774,964

Total Income		7,815,991

Expenses:
Investment advisory fees		3,547,016
Distribution fees - Advisor Class		996,974
Custodian fees		67,811
Service fees for securities sold short (See Note 2)		5,008
Shareholder communications expenses		56,308
Registration expenses		53,768
Dividend expense on securities sold short		50,754
Directors’ fees		45,622
Legal and audit fees		34,310
Shareholder services fees		29,998
Accounting fees		22,500
Interest expense		7,207
Miscellaneous expenses		44,400

Total Expenses		4,961,676

Less: Expenses paid indirectly by broker (See Note 6)		(5,476	)

Net Expenses		4,956,200

Net Investment Income		2,859,791

Net Realized and Unrealized Gain/(Loss) on Investments, Securities Sold Short, Swap Contracts, and Foreign Currency:
Net realized gain on investments		14,536,549
Net realized loss on securities sold short		(934,924	)
Net realized loss on swap contracts		(96,756	)
Net realized loss on foreign currency transactions		(4,623,479	)

Net realized gain on investments, securities sold short, swap contracts, and foreign currency transactions		8,881,390

Net change in unrealized appreciation/depreciation:
on investments		12,630,413
on securities sold short		(5,562,644	)
on swap contracts		6,153
on foreign currency translations		(113,431	)

Net change in unrealized appreciation/depreciation on investments, securities sold short, swap contracts, and foreign currency translations		6,960,491

Net Realized and Unrealized Gain/(Loss) on Investments, Securities Sold Short, Swap Contracts, and Foreign Currency		15,841,881

Net Increase in Net Assets Resulting from Operations	$	18,701,672

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 obligations 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, 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. Certain securities are valued principally using dealer quotations. Futures contracts are valued at the closing settlement price of the exchange or board of trade on which the applicable contract is traded. OTC futures and options on futures for which market quotations are readily available will be valued by quotations received from a pricing service or, if no quotations are available from a pricing service, by quotations obtained from one of more dealers in the instrument in question by the Adviser.

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, 2017 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, 2017. 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 are 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 or preferred equities, warrants, options, rights, or 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. When fair valuing a security, factors to consider include 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 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, 2017, 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 swap at June 30, 2017 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, 2017 had an average monthly notional amount of approximately $925,847 over the period that the swaps were outstanding.

At June 30, 2017, the value of equity contract for difference swap agreements can be found in the Statement of Assets and Liabilities under Assets, Unrealized appreciation on swap contracts. For the six months ended June 30, 2017, 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, 2017, 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, 2017 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, 2017 had an average monthly notional amount of approximately $67,158,234.

At June 30, 2017, 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, 2017, 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 tables present 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, 2017:

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, 2017 are reflected within the Schedule of Investments. For the six months ended June 30, 2017, the Fund incurred $5,008 in service fees related to its investment positions sold short and held by the broker. These amounts are 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, 2017, 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, 2016 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 at June 30, 2017:

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, 2017, the Fund did not incur any income tax, interest, or penalties. As of June 30, 2017, 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, 2017, other than short term securities and U.S. Government obligations, aggregated $663,132,340 and $748,479,649, respectively.

6. Transactions with Affiliates and Other Arrangements. During the six months ended June 30, 2017, the Fund paid $236,282 in brokerage commissions on security trades to G.research, LLC, an affiliate of the Adviser.

During the six months ended June 30, 2017, 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 $5,476.

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, 2017, 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, 2017, 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, which expires on March 8, 2018 and may be renewed annually, 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, 2017, 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, 2017 and the year ended December 31, 2016, 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 23, 2017, 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 third quartile for the one year period, in the fourth quartile for the three year period, and in the second quartile for the five year period.

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 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. that is a publicly held company with 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 Executive Chairman 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, 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 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 B.S. in Finance from Fordham University.

Geoffrey P. Astle is involved in the analytics and foreign and domestic trading for the Gabelli merger arbitrage portfolios, specifically to our U.S. open and closed end funds. He has been associated in this capacity since 2007. Mr. Astle earned a Bachelor of Science in both Finance and Marketing from Fairfield 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 Mario J. Gabelli, CFA Chairman and Chief Executive Officer, GAMCO Investors, Inc. Executive Chairman, 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		OFFICERS Bruce N. Alpert President Agnes Mullady Vice President Andrea R. Mango Secretary John C. Ball 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.


GAB408Q217SR

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

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, 2017 through June 30, 2017			Expense Table


	Six Months Ended June 30, 2017 (Unaudited)			Year Ended December 31, 2016
Operations:
Net investment income	$	2,859,791		$	774,207
Net realized gain on investments, securities sold short, swap contracts, and foreign currency transactions		8,881,390			29,894,761
Net change in unrealized appreciation on investments, securities sold short, swap contracts, and foreign currency translations		6,960,491			11,071,021

Net Increase in Net Assets Resulting from Operations		18,701,672			41,739,989

Distributions to Shareholders:
Net investment income
Class AAA		—			(4,082,045	)
Advisor Class		—			(3,735,843	)

		—			(7,817,888	)

Net realized gain
Class AAA		—			(9,264,805	)
Advisor Class		—			(12,875,590	)

		—			(22,140,395	)

Total Distributions to Shareholders		—			(29,958,283	)

Capital Share Transactions:
Class AAA		(25,363,789	)		(6,638,642	)
Advisor Class		34,593,446			57,104,679

Net Increase in Net Assets from Capital Share Transactions		9,229,657			50,466,037


Redemption Fees		8,168			16,661

Net Increase in Net Assets		27,939,497			62,264,404
Net Assets:
Beginning of year		1,409,772,085			1,347,507,681

End of period (including undistributed net investment income of $3,553,017 and $693,226, respectively)	$	1,437,711,582		$	1,409,772,085


			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
2017(c)		$10.17		$0.03			$0.11		$0.14		—			—			—			—			$0.00		$10.31		1.4	%		$613,299		0.53	%(d)		0.56	%(d)(e)(f)		109	%
2016		10.10		0.02			0.29		0.31		$(0.07	)		$(0.17	)		—			$(0.24	)		0.00		10.17		3.1			630,052		0.19			0.60(e	)(f)(g)		287
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
Advisor Class
2017(c)		$10.08		$0.02			$0.10		$0.12		—			—			—			—			$0.00		$10.20		1.2	%		$824,413		0.30	%(d)		0.81	%(d)(e)(f)		109	%
2016		10.01		(0.01	)		0.30		0.29		$(0.05	)		$(0.17	)		—			$(0.22	)		0.00		10.08		2.9			779,720		(0.06	)		0.85(e	)(f)(g)		287
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


	Valuation Inputs
	Level 1 Quoted Prices	Level 2 Other Significant Observable Inputs	Level 3 Significant Unobservable Inputs	Total Market Value at 6/30/17
OTHER FINANCIAL INSTRUMENTS:*
ASSETS (Unrealized Appreciation):
EQUITY CONTRACTS
Contract for Difference Swap Agreements	—	$ 28,782	—	$ 28,782
LIABILITIES (Unrealized Depreciation):
FORWARD CURRENCY EXCHANGE
CONTRACTS
Forward Foreign Exchange Contracts	—	(368,517)	—	(368,517)
TOTAL OTHER FINANCIAL INSTRUMENTS:	—	$(339,735)	—	$(339,735)


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

$862,684 (1,690,000 Shares)	Premier Foods plc	Premier Foods plc	03/29/18	$28,782


	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
Equity Contract for Difference Swap Agreements	$28,782	—	$28,782

	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	$368,517	—	$368,517


	Net Amounts Not Offset in the Statement of Assets and Liabilities
	Net Amounts of Assets Presented in the Statement of Assets and Liabilities	Financial Instruments	Cash Collateral Received	Net Amount
Counterparty
The Goldman Sachs Group, Inc.	$28,782	$(28,782)	—	—

	Net 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.	$368,517	$(368,517)	—	—


Distributions paid from:*
Ordinary income (inclusive of short term capital gains)	$	26,568,268
Net long term capital gains		4,181,853

Total distributions paid	$	30,750,121


	Cost/ (Proceeds)			Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation
Investments		$1,440,445,360			$43,052,334		$(24,747,703	)		$18,304,631
Securities sold short		(24,929,872	)		—		(4,526,198	)		(4,526,198	)

					$43,052,334		$(29,273,901	)		$13,778,433