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N-CSRS 1 d812519dncsrs.htm GABELLI INVESTOR FUNDS, INC. Gabelli Investor Funds, Inc.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number 811-07326

Gabelli Investor Funds, Inc.

(Exact name of registrant as specified in charter)

One Corporate Center

Rye, New York 10580-1422

(Address of principal executive offices) (Zip code)

Bruce N. Alpert

Gabelli Funds, LLC

One Corporate Center

Rye, New York 10580-1422

(Name and address of agent for service)

Registrant’s telephone number, including area code: 1-800-422-3554

Date of fiscal year end: December 31

Date of reporting period: June 30, 2018

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.

Item 1. Reports to Stockholders.

The Report to Shareholders is attached herewith.

The Gabelli ABC Fund

Semiannual Report June 30, 2018

(Y)our Portfolio Management Team



Mario J. Gabelli, CFA	Ryan N. Kahn, CFA	Regina M. Pitaro	Gian Maria Magrini, CFA	Geoffrey P. Astle
Chief Investment Officer	Analyst	Managing Director	Analyst	Analyst

	Mr. Kahn is a graduate	Ms. Pitaro is a graduate	Mr. Magrini is a graduate	Mr. Astle is a graduate
	of Babson College.	of Columbia Business	of Fordham University.	of Fairfield University.
		School, Loyola University
		of Chicago and
		Fordham University.

“Give a man a fish and you feed him for a day.

Teach him how to arbitrage and you feed him forever.”

— Warren Buffett

To Our Shareholders,

For the six months ended June 30, 2018, the net asset value (“NAV”) per Class AAA Share of The Gabelli ABC Fund increased 0.6% compared with a increase of 1.8% for the Standard & Poor’s (“S&P”) Long-Only Merger Arbitrage Index. The performance of the ICE Bank of America Merrill Lynch 3 Month U.S. Treasury Bill Index for the period was 0.6%. Another class of shares is available. See page 2 for performance information for both classes of shares.

Enclosed are the financial statements, including the schedule of investments, as of June 30, 2018.

Comparative Results


Average Annual Returns through June 30, 2018 (a) (Unaudited)						Since
	Six Months	1 Year	5 Year	10 Year	15 Year	Inception (5/14/93)
AAA Shares (GABCX)	0.58%	1.40%	2.30%	2.90%	3.84%	5.56%
Advisor Shares (GADVX)	0.39	1.22	2.05	2.65	3.65	5.44
S&P Long-Only Merger Arbitrage Index	1.83	3.52	3.39	3.40	N/A(b)	N/A(b)
Lipper U.S. Treasury Money Market Fund Average	0.58	0.89	0.22	0.15	0.95	2.14(c)
ICE Bank of America Merrill Lynch 3 Month U.S. Treasury Bill Index	0.81	1.36	0.42	0.35	1.29	2.58
S&P 500 Index	2.65	14.37	13.42	10.17	9.30	9.66(c)

In the current prospectuses dated April 30, 2018, the expense ratios for the Class AAA and the Advisor Class Shares, are 0.57% and 0.82%, respectively. See page 12 for the expense ratios for the six months ended June 30, 2018. 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 ICE 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.


The Gabelli ABC Fund
Disclosure of Fund Expenses (Unaudited)
For the Six Month Period from January 1, 2018 through June 30, 2018		Expense Table

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 01/01/18	Ending Account Value 06/30/18		Annualized Expense Ratio		Expenses Paid During Period*
*The Gabelli ABC Fund*
Actual Fund Return
Class AAA	$1,000.00		$1,005.80		0.57%		$2.83
Advisor Class	$1,000.00		$1,003.90		0.82%		$4.07
Hypothetical 5% Return
Class AAA	$1,000.00		$1,021.97		0.57%		$2.86
Advisor Class	$1,000.00		$1,020.73		0.82%		$4.11

*	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.

Summary of Portfolio Holdings (Unaudited)

The following table presents portfolio holdings as a percent of net assets as of June 30, 2018:

The Gabelli ABC Fund


Long Positions
U.S. Treasury Bills	67.7	%
Building and Construction	4.6	%
Energy and Utilities	4.2	%
Food and Beverage	4.0	%
Financial Services	3.9	%
Health Care	3.0	%
Telecommunications	2.0	%
Cable and Satellite	1.9	%
Real Estate	1.8	%
Paper and Forest Products	1.2	%
Electronics	0.9	%
Semiconductors	0.9	%
Wireless Communications	0.7	%
Specialty Chemicals	0.5	%
Metals and Mining	0.5	%
Computer Software and Services	0.5	%
Machinery	0.4	%
Broadcasting	0.4	%
Automotive: Parts and Accessories	0.3	%
Entertainment	0.3	%
Diversified Industrial	0.3	%


Hotels and Gaming	0.2	%
Publishing	0.2	%
Consumer Products	0.1	%
Aerospace	0.1	%
Business Services	0.1	%
Industrials	0.1	%
Transportation	0.1	%
Aviation: Parts and Services	0.1	%
Retail	0.0	%*
Closed-End Funds	0.0	%*
Other Assets and Liabilities (Net)	2.3	%

Short Positions
Building and Construction	(3.1	)%
Energy and Utilities	(0.1	)%
Financial Services	(0.1	)%
Food and Beverage	(0.0	)%**
Semiconductors	(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.

Proxy Voting

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.

The Gabelli ABC Fund

Schedule of Investments — June 30, 2018 (Unaudited)


Shares			Cost		Market Value
		COMMON STOCKS — 33.1%
		Aerospace — 0.1%
	9,000	Rockwell Collins Inc.	$	1,206,258	$	1,212,120


		Automotive: Parts and Accessories — 0.3%
	413,000	Federal-Mogul Holdings Corp.†(a)		3,997,979		4,130,000


		Aviation: Parts and Services — 0.1%
	8,748	KLX Inc.†		623,065		628,981


		Broadcasting — 0.4%
	8,000	Cogeco Inc.		155,796		353,676
	10,000	MSG Networks Inc., Cl. A†		166,150		239,500
	108,000	Tribune Media Co., Cl. A		4,347,888		4,133,160

				4,669,834		4,726,336


		Building and Construction — 4.6%
	34,000	Johnson Controls International plc		680,009		1,137,300
	1,030,000	Lennar Corp., Cl. B		41,571,815		43,970,700
	48,000	Norbord Inc., Toronto		1,161,166		1,973,818
	25,000	Saferoad Holding ASA		95,303		92,395
	220,000	USG Corp.†		9,474,290		9,486,400

				52,982,583		56,660,613


		Business Services — 0.1%
	80,000	Diebold Nixdorf Inc.		1,702,653		956,000
	30,000	exactEarth Ltd.†		86,126		26,243
	20,000	GrainCorp Ltd., Cl. A		162,315		113,672
	17,000	RR Donnelley & Sons Co.		193,560		97,920

				2,144,654		1,193,835


		Cable and Satellite — 1.9%
	1,500	AMC Networks Inc., Cl. A†		58,302		93,300
	11,000	Charter Communications Inc., Cl. A†		2,325,153		3,225,310
	55,000	Liberty Global plc, Cl. A†		2,030,215		1,514,700
	105,000	Liberty Global plc, Cl. C†		3,802,239		2,794,050
	8,020	Liberty Latin America Ltd., Cl. A†		261,943		153,342
	20,500	Liberty Latin America Ltd., Cl. C†		475,193		397,290
	750,000	Sky plc		9,392,214		14,466,096

				18,345,259		22,644,088


		Computer Software and Services — 0.5%
	38,000	Business & Decision†		351,544		352,349
	122,000	Digi International Inc.†		1,533,879		1,610,400
	18,000	Donnelley Financial Solutions, Inc.†		382,559		312,660
	5,900	Fidessa Group plc		319,289		300,949
	52,000	iGO Inc.†		163,480		114,920
	3,000	InterXion Holding NV†		85,048		187,260
	6,000	Rockwell Automation Inc.		1,115,143		997,380


Shares			Cost		Market Value
	100,000	VeriFone Systems Inc.†	$	2,291,501	$	2,282,000

				6,242,443		6,157,918


		Consumer Products — 0.1%
	100	Accell Group		3,366		2,137
	80,000	Avon Products Inc.†		219,485		129,600
	14,000	Bang & Olufsen A/S†		147,074		304,140
	17,000	Edgewell Personal Care Co.†		1,194,514		857,820

				1,564,439		1,293,697


		Diversified Industrial — 0.3%
	160,000	Haldex AB		1,920,024		1,589,862
	30,000	Katy Industries Inc.†		23,299		95
	40,000	Myers Industries Inc.		415,859		768,000
	10,400	SLM Solutions Group AG†		359,659		397,146
	24,000	Wartsila OYJ Abp		354,500		471,698

				3,073,341		3,226,801


		Electronics — 0.9%
	290,600	Axis Communications AB		11,645,787		10,641,896


		Energy and Utilities — 4.2%
	64,800	Alerion Cleanpower SpA		177,654		236,101
	50,000	Alvopetro Energy Ltd., Toronto†		36,046		18,636
	37,000	Anadarko Petroleum Corp.		2,227,346		2,710,250
	6,400	Andeavor		841,756		839,552
	12,500	Apache Corp.		540,309		584,375
	15,000	Avangrid Inc.		581,250		793,950
	369	Connecticut Water Service Inc.		22,410		24,103
	20,000	Endesa SA		453,617		441,312
	420,000	Evergy Inc.		23,649,019		23,583,000
	200,000	Gulf Coast Ultra Deep Royalty Trust		39,334		17,100
	3,000	Hess Corp.		139,784		200,670
	65,000	National Fuel Gas Co.		3,473,197		3,442,400
	80,000	Noble Energy Inc.		3,094,619		2,822,400
	125,000	Severn Trent plc		3,381,011		3,265,553
	800,000	Texas Competitive Electric Holdings Co. LLC, Escrow†(a)		0		0
	425,000	Weatherford International plc†		2,472,776		1,398,250
	104,323	WGL Holdings Inc.		9,253,656		9,258,666
	9,000	Whiting Petroleum Corp.†		249,720		474,480
	20,000	Williams Partners LP		798,706		811,800

				51,432,210		50,922,598


		Entertainment — 0.3%
	19,000	Liberty Media Corp.- Liberty Braves, Cl. A†		452,527		488,490
	1,300	The Madison Square Garden Co, Cl. A†		145,867		403,247

See accompanying notes to financial statements.

The Gabelli ABC Fund

Schedule of Investments (Continued) — June 30, 2018 (Unaudited)


Shares			Cost		Market Value
		COMMON STOCKS (Continued)
		Entertainment (Continued)
	15,000	Twenty-First Century Fox Inc., Cl. A	$	718,184	$	745,350
	50,000	Twenty-First Century Fox Inc., Cl. B		2,306,475		2,463,500

				3,623,053		4,100,587


		Financial Services — 3.8%
	7,000	Alimco Financial Corp.†		240,731		87,500
	68,000	AllianceBernstein Holding LP		662,356		1,941,400
	77,000	AmTrust Financial Services Inc.		1,008,828		1,121,890
	100,000	AXA Equitable Holdings Inc.†		2,000,000		2,061,000
	50,300	CoBiz Financial Inc.		906,483		1,080,444
	130,000	Financial Engines Inc.		5,801,088		5,837,000
	20,000	First Connecticut Bancorp Inc.		623,516		612,000
	6,000	Forestar Group Inc.†		84,866		124,500
	1,218	Horizon Bancorp Inc.		23,361		25,200
	36,000	Kinnevik AB, Cl. A		1,242,410		1,233,930
	60,000	KKR & Co. Inc., Cl. A		180,658		1,491,000
	1,000	Mastercard Inc., Cl. A		19,963		196,520
	120,000	MoneyGram International Inc.†		1,559,614		802,800
	32,000	Navient Corp.		234,335		416,960
	10,000	Oritani Financial Corp.		103,087		162,000
	100	Patriot National Inc.†		968		3
	270,000	Sterling Bancorp		4,613,289		6,345,000
	2,200	Topdanmark A/S		62,593		96,346
	39,300	Validus Holdings Ltd.		2,653,308		2,656,680
	18,000	Waddell & Reed Financial Inc., Cl. A		341,668		323,460
	200,000	Wright Investors’ Service Holdings Inc.†		500,000		100,000
	350,000	XL Group Ltd.		19,576,863		19,582,500

				42,439,985		46,298,133


		Food and Beverage — 4.0%
	70,000	Dr Pepper Snapple Group Inc.		8,343,662		8,540,000
	594	Huegli Holding AG†		563,631		548,234
	83,774	Naturex†		14,016,064		13,187,672
	5,830,000	Parmalat SpA		18,782,854		19,675,935
	3,500	Pernod Ricard SA		220,064		571,814
	10,000	Pinnacle Foods Inc.		654,806		650,600
	3,600,000	Premier Foods plc†		2,381,973		1,800,665
	24,000	Remy Cointreau SA		1,467,270		3,111,023
	3,000	The Hershey Co.		287,391		279,180

				46,717,715		48,365,123


		Health Care — 2.9%
	80,034	Abaxis Inc.		6,617,764		6,643,622
	39,000	Akorn Inc.†		1,208,093		647,010


Shares			Cost		Market Value
	23,500	Allergan plc	$	4,836,842	$	3,917,920
	86,000	AstraZeneca plc, ADR		3,264,567		3,019,460
	600	Bio-Rad Laboratories Inc., Cl. A†		59,964		173,124
	100,000	Cotiviti Holdings Inc.†		4,419,049		4,413,000
	18,000	Endo International plc†		214,540		169,740
	8,000	Envision Healthcare Corp.†		357,711		352,080
	54,300	Foundation Medicine Inc.†		7,413,534		7,422,810
	1,000	ICU Medical Inc.†		58,532		293,650
	158,000	Idorsia Ltd.†		1,626,602		4,196,102
	400	Illumina Inc.†		16,234		111,716
	7,000	Incyte Corp.†		696,661		469,000
	190,000	Kindred Healthcare Inc.†		1,710,984		1,710,000
	37,000	McKesson Europe AG		1,170,357		1,140,708
	4,000	Mylan NV†		195,174		144,560
	433,000	Myrexis Inc.†		44,849		13,510
	4,500	Perrigo Co. plc		413,184		328,095
	4,000	Shire plc, ADR		652,998		675,200

				34,977,639		35,841,307


		Hotels and Gaming — 0.2%
	30,000	Belmond Ltd., Cl. A†		357,851		334,500
	11,500	Eldorado Resorts Inc.†		54,173		449,650
	25,000	Ryman Hospitality Properties Inc., REIT		1,076,449		2,078,750

				1,488,473		2,862,900


		Industrials — 0.1%
	52,000	Arconic Inc.		1,154,875		884,520


		Machinery — 0.4%
	28,000	Astec Industries Inc.		998,791		1,674,400
	140,000	CNH Industrial NV		1,121,455		1,474,200
	45,000	CNH Industrial NV, Borsa Italiana		383,886		478,004
	65,000	Xerium Technologies Inc.†		862,427		860,600
	12,000	Xylem Inc.		298,769		808,560

				3,665,328		5,295,764


		Metals and Mining — 0.5%
	18,000	Alamos Gold Inc., Cl. A		137,998		102,420
	42,000	Ampco-Pittsburgh Corp.†		398,580		430,500
	170,000	Freeport-McMoRan Inc.		1,617,499		2,934,200
	35,000	Newmont Mining Corp.		785,524		1,319,850
	12,000	Pan American Silver Corp.		170,418		214,780
	10,000	Vulcan Materials Co.		438,009		1,290,600

				3,548,028		6,292,350


		Paper and Forest Products — 1.2%
	360,000	KapStone Paper and Packaging Corp.		12,511,389		12,420,000

See accompanying notes to financial statements.

The Gabelli ABC Fund

Schedule of Investments (Continued) — June 30, 2018 (Unaudited)


Shares			Cost		Market Value
		COMMON STOCKS (Continued)
		Paper and Forest Products (Continued)
	131,497	Papeles y Cartones de Europa SA	$	2,595,123	$	2,604,418

				15,106,512		15,024,418


		Publishing — 0.2%
	5,000	Meredith Corp.		214,965		255,000
	14,000	Telegraaf Media Groep NV†(a)		89,203		98,095
	150,000	The E.W. Scripps Co., Cl. A		2,602,979		2,008,500

				2,907,147		2,361,595


		Real Estate — 1.8%
	500	American Tower Corp., REIT		7,707		72,085
	23,000	DCT Industrial Trust Inc., REIT		1,508,996		1,534,790
	12,000	Education Realty Trust Inc., REIT		497,756		498,000
	15,000	GGP Inc., REIT		341,315		306,450
	600,000	Gramercy Property Trust, REIT		16,527,856		16,392,000
	17,911	LaSalle Hotel Properties, REIT		628,499		613,094
	36,000	Vastned Retail Belgium NV, REIT		2,490,346		2,081,022
	51,040	Victoria Park AB, Cl. B		222,908		216,543

				22,225,383		21,713,984


		Retail — 0.0%
	10,000	Macy’s Inc.		177,220		374,300
	101,770	The Bon-Ton Stores Inc.†		4,946		1,221

				182,166		375,521


		Semiconductors — 0.9%
	120,000	AIXTRON SE†		485,350		1,555,511
	10,000	Cavium Inc.†		872,644		865,000
	73,500	NXP Semiconductors NV†		8,784,391		8,031,345

				10,142,385		10,451,856


		Specialty Chemicals — 0.5%
	96,986	A. Schulman Inc.		4,168,158		4,315,877
	6,000	Linde AG		993,268		1,253,168
	50,000	SGL Carbon SE†		707,892		537,773
	15,000	Valvoline Inc.		332,250		323,550

				6,201,568		6,430,368


		Telecommunications — 2.0%
	290,000	Asia Satellite Telecommunications Holdings Ltd.		660,412		229,912
	257,000	AT&T Inc.		8,383,340		8,252,270
	315,000	CenturyLink Inc.		6,513,870		5,871,600
	7,000	Harris Corp.		559,195		1,011,780
	130,000	Koninklijke KPN NV		396,278		353,727
	165,000	Mitel Networks Corp.†		1,816,390		1,810,050
	100,000	Pharol SGPS SA†		26,205		27,794


Shares			Cost		Market Value
	650,000	Sprint Corp.†	$	3,356,454	$	3,536,000
	83,000	Telenet Group Holding NV†		3,782,125		3,877,101

				25,494,269		24,970,234


		Transportation — 0.1%
	2,000	XPO Logistics Europe SA†		486,463		672,654


		Wireless Communications — 0.7%
	10,000	Blackberry Ltd.†		68,396		96,500
	126,000	Millicom International Cellular SA, SDR		7,766,539		7,441,762
	7,500	T-Mobile US Inc.†		121,875		448,125
	13,000	United States Cellular Corp.†		491,946		481,520

				8,448,756		8,467,907


		TOTAL COMMON STOCKS		386,737,597		403,848,104


		CLOSED-END FUNDS — 0.0%
	1,400	Altaba Inc.†		20,580		102,494


		PREFERRED STOCKS — 0.1%
		Financial Services — 0.1%
	24,066	Steel Partners Holdings LP, Ser. A, 6.000%		467,630		490,706


		Telecommunications — 0.0%
	2,000	Cincinnati Bell Inc., 6.750%, Ser. B		41,686		98,900


		TOTAL PREFERRED STOCKS		509,316		589,606


		RIGHTS — 0.1%
		Entertainment — 0.0%
	201,000	Media General Inc., CVR†(a)		0		0


		Health Care — 0.1%
	110,600	Adolor Corp., CPR, expire 07/01/19†(a)		0		0
	187,969	Ambit Biosciences Corp., CVR†(a)		0		112,781
	135,000	American Medical Alert Corp., CPR†(a)		0		1,350
	5,000	Community Health Systems Inc., CVR†		158		55
	795,000	Dyax Corp., CVR†(a)		0		882,450
	640,000	Innocoll, CVR†(a)		384,000		384,000
	95,400	Ocera Therapeutics, CVR†(a)		25,758		37,206
	100	Omthera Pharmaceuticals Inc., CVR, expire 12/31/20†(a)		0		0
	400,000	Sanofi, CVR, expire 12/31/20†		88,100		200,000
	739,500	Synergetics USA Inc., CVR†(a)		73,950		73,950

See accompanying notes to financial statements.

The Gabelli ABC Fund

Schedule of Investments (Continued) — June 30, 2018 (Unaudited)


Shares			Cost		Market Value
		RIGHTS (Continued)
		Health Care (Continued)
	825,000	Teva Pharmaceutical Industries Ltd., CCCP, expire 02/20/23†(a)	$	401,888	$	0
	12,000	Tobira Therapeutics Inc., CVR†(a)		720		720

				974,574		1,692,512


		Hotels and Gaming — 0.0%
	1,041,500	Ladbrokes plc, CVR†		69,493		50,170


		TOTAL RIGHTS		1,044,067		1,742,682


		WARRANTS — 0.0%
		Metals and Mining — 0.0%
	2,550	Hudbay Minerals Inc., expire 07/20/18†		2,886		10


Principal Amount
		CORPORATE BONDS — 0.0%
		Health Care — 0.0%
$	65,000	Constellation Health Promissory Note, PIK, 5.000%, 01/31/24(a)(b)		27,950		27,950


		U.S. GOVERNMENT OBLIGATIONS — 67.7%
	830,562,000	U.S. Treasury Bills, 1.245% to 2.329%††, 07/05/18 to 05/23/19(c)		826,178,841		826,289,634


		TOTAL INVESTMENTS BEFORE SECURITIES SOLD SHORT — 101.0%	$	1,214,521,237		1,232,600,480


		SECURITIES SOLD SHORT — (3.3)%
		(Proceeds received $39,493,717)				(40,560,230	)

		Other Assets and Liabilities (Net) — 2.3%				28,198,216


		NET ASSETS — 100.0%			$	1,220,238,466


Shares			Proceeds		Market Value
		SECURITIES SOLD SHORT — (3.3)%
		Building and Construction — (3.1)%
	717,000	Lennar Corp., Cl. A	$	36,515,803	$	37,642,500


		Energy and Utilities — (0.1)%
	29,880	The Williams Companies Inc.		813,939		810,047


		Financial Services — (0.1)%
	8,351	BOK Financial Corp.		817,708		785,077
	34,500	People’s United Financial Inc.		637,324		624,105

				1,455,032		1,409,182


		Food and Beverage — (0.0)%
	6,494	Conagra Brands Inc.		235,171		232,031


		Semiconductors — (0.0)%
	21,757	Marvell Technology Group Ltd.		473,772		466,470

		TOTAL SECURITIES SOLD SHORT(d)	$	39,493,717	$	40,560,230

(a)	Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

(b)	Payment-in-kind (“PIK”) security. 5.00% PIK interest income will be paid as additional securities at the discretion of the issuer.

(c)	At June 30, 2018, $130,000,000 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.

(d)	At June 30, 2018, these proceeds were being held at Pershing LLC.

†	Non-income producing security.

††	Represents annualized yields at dates of purchase.

ADR	American Depositary Receipt

CCCP	Contingent Cash Consideration Payment

CPR	Contingent Payment Right

CVR	Contingent Value Right

REIT	Real Estate Investment Trust

SDR	Swedish Depositary Receipt

See accompanying notes to financial statements.

The Gabelli ABC Fund

Schedule of Investments (Continued) — June 30, 2018 (Unaudited)

As of June 30, 2018, forward foreign exchange contracts outstanding were as follows:

Currency Purchased

Currency
Sold

Counterparty

Settlement
Date

Unrealized
Depreciation

USD 52,507,004

EUR 45,300,000

State Street Bank and Trust Co.

07/27/18

$(505,338

)

USD 19,728,045

GBP 15,000,000

State Street Bank and Trust Co.

07/27/18

(94,311

)

TOTAL FORWARD FOREIGN EXCHANGE CONTRACTS

$(599,649

)

As of June 30, 2018, equity contract for difference swap agreements outstanding were as follows:

Market Value
Appreciation Received

One Month LIBOR
Plus 90 bps
plus Market Value
Depreciation Paid

Counterparty

Payment
Frequency

Termination
Date

Notional
Amount

Value

Upfront
Payments/
Receipts

Unrealized
Depreciation

Premier Foods plc

The Goldman Sachs Group, Inc.

1 month

04/02/2019

888,885

(43,572

)

—

$(43,572)

TOTAL EQUITY CONTRACT FOR DIFFERENCE SWAP AGREEMENT

$(43,572)

See accompanying notes to financial statements.

The Gabelli ABC Fund

Statement of Assets and Liabilities

June 30, 2018 (Unaudited)


Assets:
Investments, at value (cost $1,214,521,237)	$	1,232,600,480
Cash		1,115
Deposit at broker		39,956,914
Receivable for Fund shares sold		406,698
Receivable for investments sold		1,655,028
Dividends and interest receivable		504,866
Prepaid expenses		13,558

Total Assets		1,275,138,659

Liabilities:
Securities sold short, at value (proceeds $39,493,717)		40,560,230
Foreign currency, at value (cost $(68,340))		68,986
Payable for investments purchased		10,585,326
Payable for Fund shares redeemed		2,309,034
Payable for investment advisory fees		509,147
Payable for distribution fees		120,436
Payable for accounting fees		11,250
Unrealized depreciation on forward foreign exchange contracts		599,649
Unrealized depreciation on swap contracts		43,572
Other accrued expenses		92,563

Total Liabilities		54,900,193

Net Assets
(applicable to 117,565,514 shares outstanding)	$	1,220,238,466

Net Assets Consist of:
Paid-in capital	$	1,181,863,508
Undistributed net investment income		6,860,200
Accumulated net realized gain on investments, securities sold short, swap contracts, forward foreign exchange contracts, and foreign currency transactions		15,225,517
Net unrealized appreciation on investments		18,079,243
Net unrealized depreciation on securities sold short		(1,066,513	)
Net unrealized depreciation on swap contracts		(43,572	)
Net unrealized depreciation on forward foreign exchange contracts		(599,649	)
Net unrealized depreciation on foreign currency translations		(80,268	)

Net Assets	$	1,220,238,466

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 ($654,688,313 ÷ 62,709,701 shares outstanding)		$10.44
Advisor Class:
Net Asset Value, offering, and redemption price per share ($565,550,153 ÷ 54,855,813 shares outstanding)		$10.31

Statement of Operations

For the Six Months Ended June 30, 2018 (Unaudited)


Investment Income:
Dividends (net of foreign withholding taxes of $140,933)	$	3,921,703
Interest		6,266,097

Total Income		10,187,800

Expenses:
Investment advisory fees		3,210,667
Distribution fees - Advisor Class		774,797
Custodian fees		75,739
Service fees for securities sold short (See Note 2)		1,901
Dividend expense on securities sold short		69,359
Registration expenses		57,582
Shareholder communications expenses		57,375
Directors’ fees		45,622
Shareholder services fees		29,289
Accounting fees		22,500
Legal and audit fees		19,963
Interest expense		8,172
Miscellaneous expenses		42,097

Total Expenses		4,415,063

Less:
Expenses paid indirectly by broker (See Note 6)		(5,387	)

Net Expenses		4,409,676

Net Investment Income		5,778,124

Net Realized and Unrealized Gain/(Loss) on Investments, Securities Sold Short, Swap Contracts, Forward Foreign Exchange Contracts, and Foreign Currency:
Net realized gain on investments		11,562,193
Net realized loss on securities sold short		(274,215	)
Net realized loss on swap contracts		(57,469	)
Net realized gain on forward foreign exchange contracts		4,475,754
Net realized loss on foreign currency transactions		(255,422	)

Net realized gain on investments, securities sold short, swap contracts, forward foreign exchange contracts, and foreign currency transactions		15,450,841

Net change in unrealized appreciation/depreciation:
on investments		(22,941,034	)
on securities sold short		8,120,716
on swap contracts		(100,493	)
on forward foreign exchange contracts		22,761
on foreign currency translations		(81,893	)

Net change in unrealized appreciation/depreciation on investments, securities sold short, swap contracts, forward foreign exchange contracts, and foreign currency translations		(14,979,943	)

Net Realized and Unrealized Gain/(Loss) on Investments, Securities Sold Short, Swap Contracts, Forward Foreign Exchange Contracts, and Foreign Currency		470,898

Net Increase in Net Assets Resulting from Operations	$	6,249,022

See accompanying notes to financial statements.

The Gabelli ABC Fund

Statement of Changes in Net Assets


	Six Months Ended June 30, 2018 (Unaudited)			Year Ended December 31, 2017
Operations:
Net investment income	$	5,778,124		$	5,266,222
Net realized gain on investments, securities sold short, swap contracts, forward foreign exchange contracts, and foreign currency transactions		15,450,841			2,977,213
Net change in unrealized appreciation/depreciation on investments, securities sold short, swap contracts, forward foreign exchange contracts, and foreign currency translations		(14,979,943	)		21,562,333

Net Increase in Net Assets Resulting from Operations		6,249,022			29,805,768

Distributions to Shareholders:
Net realized gain
Class AAA		—			(873,690	)
Advisor Class		—			(992,479	)

Total Distributions to Shareholders		—			(1,866,169	)

Capital Share Transactions:
Class AAA		(9,263,416	)		17,342,365
Advisor Class		(168,716,264	)		(63,106,925	)

Net Decrease in Net Assets from Capital Share Transactions		(177,979,680	)		(45,764,560	)


Redemption Fees		13,248			8,752

Net Decrease in Net Assets		(171,717,410	)		(17,816,209	)
Net Assets:
Beginning of year		1,391,955,876			1,409,772,085

End of period (including undistributed net investment income of $6,860,200 and $1,082,076, respectively)	$	1,220,238,466		$	1,391,955,876

See accompanying notes to financial statements.

The Gabelli ABC Fund

Financial Highlights

Selected data for a share of capital stock outstanding throughout each period:


			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
2018(c)		$10.38		$0.05			$0.01		$0.06		—			—			—			—			$0.00		$10.44		0.6	%		$654,688		1.02	%(d)		0.57	%(d)(e)(f)		115	%
2017		10.17		0.05			0.17		0.22		—			$(0.01	)		—			$(0.01	)		0.00		10.38		2.2			660,559		0.51			0.58	(e)(f)(g)(h)		205
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)(h)		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
Advisor Class
2018(c)		$10.27		$0.04			—		$0.04		—			—			—			—			$0.00		$10.31		0.4	%		$565,550		0.77	%(d)		0.82	%(d)(e)(f)		115	%
2017		10.08		0.03			$0.17		0.20		—			$(0.01	)		—			$(0.01	)		0.00		10.27		2.0			731,397		0.26			0.83	(e)(f)(g)(h)		205
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)(h)		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

†	Total return represents aggregate total return of a hypothetical $1,000 investment at the beginning of the year and sold at the end of the period including reinvestment of distributions. Total return for a period of less than one year is not annualized.

(a)	Per share amounts have been calculated using the average shares outstanding method.

(b)	Amount represents less than $0.005 per share.

(c)	For the six months ended June 30, 2018, unaudited.

(d)	Annualized.

(e)	The Fund received credits from a designated broker who agreed to pay certain Fund operating expenses. For the six months ended June 30, 2018 and the years ended December 31, 2017, 2016, and 2015, there was no impact to the expense ratios.

(f)

The Fund incurred dividend expense and service fees on securities sold short. If these expenses and fees had not been incurred, the ratios of operating expenses to average net assets for the six months ended June 30, 2018 and the years ended December 31, 2017, 2016, 2015, and 2014 would have been 0.55%, 0.55%, 0.55%, 0.55%, and 0.57% (Class AAA) and 0.80%, 0.80%, 0.80%, 0.77%, and 0.82% (Advisor Class), respectively. For the year ended December 31, 2013, there was no impact on the expense ratios.

(g)	The Fund incurred tax expense during the year ended December 31, 2017. If the tax expense had not incurred, the ratios of operating expenses to average net assets would have been 0.57% (Class AAA) and 0.82% (Advisor Class).

(h)

During the year ended December 31, 2017 and 2016, the Fund received reimbursements of custody expenses paid in prior years. Had such reimbursements (allocated by relative net asset values of the Fund’s share classes) been included in the 2016 calculation, the annualized expense ratios would have been 0.58% (Class AAA) and 0.83% (Advisor Class). The 2017 reimbursement had no effect on the expense ratio.

See accompanying notes to financial statements.

The Gabelli ABC Fund

Notes to Financial Statements (Unaudited)

1. Organization. The Gabelli ABC Fund, a series of Gabelli Investor Funds, Inc., was incorporated on October 30, 1992 in Maryland, and commenced investment operations on May 14, 1993. 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.

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 Gabelli ABC Fund

Notes to Financial Statements (Unaudited) (Continued)

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:

●

Level 1 — quoted prices in active markets for identical securities;

●

Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.); and

●

Level 3 — significant unobservable inputs (including the Board’s determinations as to the fair value of investments).

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, 2018 is as follows:


	Valuation Inputs
	Level 1 Quoted Prices				Level 2 Other Significant Observable Inputs				Level 3 Significant Unobservable Inputs			Total Market Value at 6/30/18
INVESTMENTS IN SECURITIES:
ASSETS (Market Value):
Common Stocks:
Automotive: Parts and Accessories			—				—			$	4,130,000		$	4,130,000
Computer Software and Services		$	6,042,998			$	114,920				—			6,157,918
Diversified Industrial			3,226,706				95				—			3,226,801
Energy and Utilities			50,922,598				—				0			50,922,598
Financial Services			46,110,633				187,500				—			46,298,133
Food and Beverage			47,816,889				548,234				—			48,365,123
Publishing			2,263,500				—				98,095			2,361,595
Other Industries (a)			242,385,936				—				—			242,385,936
Total Common Stocks			398,769,260				850,749				4,228,095			403,848,104
Closed-End Funds			102,494				—				—			102,494
Preferred Stocks (a)			589,606				—				—			589,606
Rights (a)			200,055				50,170				1,492,457			1,742,682
Warrants (a)			10				—				—			10
Corporate Bonds (a)			—				—				27,950			27,950
U.S. Government Obligations			—				826,289,634				—			826,289,634
TOTAL INVESTMENTS IN SECURITIES – ASSETS		$	399,661,425			$	827,190,553			$	5,748,502		$	1,232,600,480
LIABILITIES (Market Value):
Common Stocks Sold Short (a)		$	(40,560,230	)			—				—		$	(40,560,230	)
TOTAL INVESTMENTS IN SECURITIES - LIABILITIES		$	(40,560,230	)			—				—		$	(40,560,230	)
OTHER FINANCIAL INSTRUMENTS:*
LIABILITIES (Unrealized Depreciation):
FORWARD CURRENCY EXCHANGE CONTRACTS
Forward Foreign Exchange Contracts			—			$	(599,649	)			—		$	(599,649	)
EQUITY CONTRACTS
Contract for Difference Swap Agreements			—				(43,572	)			—			(43,572	)
TOTAL OTHER FINANCIAL INSTRUMENTS:			—			$	(643,221	)			—		$	(643,221	)

(a)	Please refer to the Schedule of Investments (“SOI”) for the industry classifications of these portfolio holdings.

The Gabelli ABC Fund

Notes to Financial Statements (Unaudited) (Continued)

*	Other financial instruments are derivatives reflected in the SOI, such as options, futures, forwards, and swaps, which may be valued at the unrealized appreciation/depreciation of the instrument.

The Fund did not have material transfers among Level 1, Level 2, and Level 3 during the six months ended June 30, 2018. The Fund’s policy is to recognize transfers among Levels as of the beginning of the reporting period.

Additional Information to Evaluate Qualitative Information.

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. Among the factors to consider 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 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

The Gabelli ABC Fund

Notes to Financial Statements (Unaudited) (Continued)

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, 2018, 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. Equity contract for difference swap agreements at June 30, 2018 are presented within the Schedule of Investments.

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’s volume of activity in equity contract for difference swap agreements during the six months ended June 30, 2018 had an average monthly notional amount of approximately $1,453,841 over the period that the swaps were outstanding.

At June 30, 2018, 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, 2018, 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, Forward Foreign Exchange Contracts, and Foreign Currency within Net realized loss on swap contracts and Net change in unrealized appreciation/depreciation on swap contracts.

The Gabelli ABC Fund

Notes to Financial Statements (Unaudited) (Continued)

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.

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, 2018 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, 2018 had an average monthly notional amount of approximately $74,557,143.

At June 30, 2018, the value of forward foreign exchange contracts can be found in the Statement of Assets and Liabilities under Liabilities, Unrealized depreciation on forward foreign exchange contracts. For the six months ended June 30, 2018, 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, Forward Foreign Exchange Contracts, and Foreign Currency, within Net realized gain on forward foreign exchange contracts and Net change in unrealized appreciation/depreciation on forward foreign exchange contracts.

At June 30, 2018, the Fund’s derivative assets (by type) are as follows:


	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		$ 43,572		—		$ 43,572
Forward Foreign Exchange Contracts		599,649		—		599,649
Total		$643,221		—		$643,221

The Gabelli ABC Fund

Notes to Financial Statements (Unaudited) (Continued)

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, 2018:


	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
The Goldman Sachs Group, Inc.		$	43,572		$	43,572		—		—
State Street Bank & Trust Co.			599,649			599,649		—		—

Total		$	643,221		$	643,221		—		—

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, 2018 are reflected within the Schedule of Investments. For the six months ended June 30, 2018, the Fund incurred $1,901 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

The Gabelli ABC Fund

Notes to Financial Statements (Unaudited) (Continued)

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, 2018, the Fund held no restricted securities.

Investments in other Investment Companies. The Fund may invest, from time to time, in shares of other investment companies (or entities that would be considered investment companies but are excluded from the definition pursuant to certain exceptions under the 1940 Act) (the “Acquired Funds”) in accordance with the 1940 Act and related rules. Shareholders in the Fund would bear the pro rata port on of the periodic expenses of the Acquired Funds in addition to the Fund’s expenses. For the six months ended June 30, 2018, the Fund’s pro rata portion of the periodic expenses charged by the Acquired Funds was less than one basis point.

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 an 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

The Gabelli ABC Fund

Notes to Financial Statements (Unaudited) (Continued)

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, 2017 was as follows:


Distributions paid from:*
Ordinary income (inclusive of short term capital gains)	$	4,088,762
Net long term capital gains		101,986

Total distributions paid	$	4,190,748

*	Total distributions paid differs from the Statement of Changes in Net Assets due to the utilization of equalization.

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. For the year ended December 31, 2017, the Fund incurred excise tax of $170,286.

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, 2018:


	Cost/ (Proceeds)				Gross Unrealized Appreciation			Gross Unrealized Depreciation				Net Unrealized Appreciation
Investments and derivative instruments		$	1,217,748,313			$	34,200,939		$	(19,348,772	)		$	14,852,167
Securities sold short			(39,493,717	)			60,184			(1,126,697	)			(1,066,513	)

						$	34,261,123		$	(20,475,469	)		$	13,785,654

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, 2018, the Fund did not incur any income tax, interest, or penalties. As of June 30, 2018, 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 Gabelli ABC Fund

Notes to Financial Statements (Unaudited) (Continued)

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, 2018, other than short term securities and U.S. Government obligations, aggregated $571,843,945 and $631,935,679, respectively.

6. Transactions with Affiliates and Other Arrangements. During the six months ended June 30, 2018, the Fund paid $128,286 in brokerage commissions on security trades to G.research, LLC, an affiliate of the Adviser.

During the six months ended June 30, 2018, 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 $5,387.

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, 2018, the Fund accrued $22,500 in accounting fees in the Statement of Operations.

As of June 30, 2018, 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 6, 2019 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, 2018, 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 Gabelli ABC Fund

Notes to Financial Statements (Unaudited) (Continued)

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, 2018 and the year ended December 31, 2017, if any, can be found in the Statement of Changes in Net Assets under Redemption Fees.

Transactions in shares of capital stock were as follows:


	Six Months Ended June 30, 2018 (Unaudited)						Year Ended December 31, 2017
	Shares			Amount			Shares			Amount
Class AAA
Shares sold		10,025,951		$	104,296,875			9,081,287		$	93,724,610
Shares issued upon reinvestment of distributions		—			—			83,487			865,755
Shares redeemed		(10,934,603	)		(113,560,291	)		(7,512,033	)		(77,248,000	)

Net increase/(decrease)		(908,652	)	$	(9,263,416	)		1,652,741		$	17,342,365

Advisor Class
Shares sold		8,298,246		$	85,230,830			25,957,392		$	263,827,681
Shares issued upon reinvestment of distributions		—			—			70,146			719,001
Shares redeemed		(24,691,624	)		(253,947,094	)		(32,149,227	)		(327,653,607	)

Net (decrease)		(16,393,378	)	$	(168,716,264	)		(6,121,689	)	$	(63,106,925	)

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.

The Gabelli ABC Fund

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

At its meeting on February 22, 2018, 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 managers, the depth of the analyst pool available to the Adviser and the portfolio managers, 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 managers.

Investment Performance. The Independent Board Members reviewed the short, medium, and long term performance (as of December 31, 2017) of the Fund against a peer group of four other comparable funds prepared by the Adviser (the “Adviser Peer Group”) and against a peer group prepared by Broadridge (the “Broadridge Performance Peer Group”) consisting of all retail and institutional alternative event driven funds, regardless of asset size or primary channel of distribution, as represented by the Lipper Alternative Event Driven Funds Index. The Independent Board Members noted that the Fund’s performance was in the fourth quartile for the one year period and in the third quartile for the three year and five year periods, as measured against the Adviser Peer Group, though, on an absolute basis, the Fund’s performance relative to the Adviser Peer Group did not significantly depart from the median for most periods. Against the Broadridge Performance Peer Group, the Independent Board Members noted that the Fund’s performance was in the fourth quintile for the one year period and the third quintile for the three and five year periods, and also noted that the Fund’s absolute performance relative to the Broadridge Performance Peer Group did not significantly depart from the median for most 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 Adviser Peer Group and a peer group of six other alternative event driven funds selected by Broadridge 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 each peer group and that the Fund’s size was above average within each peer group. The Independent Board Members also compared the management fee structure for the Fund with that in effect for most other

The Gabelli ABC Fund

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

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 Board 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. 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 fee for other types of accounts managed by the Aviser.

Conclusions. The Independent Board Members concluded that the Fund enjoyed highly experienced portfolio management services, good ancillary services, and an adequate 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 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.

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THE GABELLI ABC FUND

One Corporate Center

Rye, NY 10580-1422

Portfolio Management Team Biographies

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.

Regina M. Pitaro is a Managing Director and Head of Institutional Marketing at GAMCO Investors, Inc. Ms. Pitaro joined the firm in 1984 and coordinates the organization’s focus with consultants and plan sponsors. She also serves as a Managing Director and Director of GAMCO Asset Management, Inc., and serves as a portfolio manager for Gabelli Funds, LLC. Ms. Pitaro holds an MBA in Finance from the Columbia University Graduate School of Business, a Master’s degree in Anthropology from Loyola University of Chicago, and a Bachelor’s degree from Fordham University.

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 operations and research departments. Mr. Magrini earned a Bachelor of Science 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.

We have separated the portfolio manager’s commentary from the financial statements and investment portfolio due to corporate governance regulations stipulated by the Sarbanes-Oxley Act of 2002. We have done this to ensure that the content of the portfolio manager’s commentary is unrestricted. Both the commentary and the financial statements, including the portfolio of investments, will be available on our website at www.gabelli.com.

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

Former Medical Director,

Lawrence Hospital

OFFICERS

Bruce N. Alpert

President

John C. Ball

Treasurer

Agnes Mullady

Vice President

Andrea R. Mango

Secretary

Richard J. Walz

Chief Compliance

Officer

DISTRIBUTOR

G.distributors, LLC

CUSTODIAN

State Street Bank and Trust

Company

TRANSFER AGENT AND

DIVIDEND DISBURSING AGENT

DST Asset Manager

Solutions, Inc.

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.

GAB408Q218SR

LOGO

Item 2. Code of Ethics.

Not applicable.

Item 3. Audit Committee Financial Expert.

Not applicable.

Item 4. Principal Accountant Fees and Services.

Not applicable.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

(a)	Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form.

(b)	Not applicable.


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

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.


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

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

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.

Item 11. Controls and Procedures.

(a)

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

(b)

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.


Item 12.		Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

Item 13. Exhibits.


		(a)(1)		Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto.


		(a)(2)		Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.


		(a)(3)		Not applicable.


		(a)(4)		Not applicable.

(b)

Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes- Oxley Act of 2002 are attached hereto.

SIGNATURES

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.

(Registrant) Gabelli Investor Funds, Inc.

By (Signature and Title)* /s/ Bruce N. Alpert

Bruce N. Alpert, Principal Executive Officer

Date 8/27/2018

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.

By (Signature and Title)* /s/ Bruce N. Alpert

Bruce N. Alpert, Principal Executive Officer

Date 8/27/2018

By (Signature and Title)* /s/ John C. Ball

John C. Ball, Principal Financial Officer and Treasurer

Date 8/27/2018

^*	Print the name and title of each signing officer under his or her signature.