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 811-07644

  

Gabelli Capital Series 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)

John C. Ball

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, 2022

 

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.

 

(a)

The Report to Shareholders is attached herewith.

 

■  Gabelli Capital Asset Fund

Semiannual Report To Contractowners

 

 

About information in this report:

 

All performance data quoted are historical and the results represent past performance and neither guarantee nor predict future investment results. To obtain performance data current to the most recent month (availability within seven business days of the most recent month end), please call us at (800) 221-3253 or visit our website at www.guardianlife.com. Current performance may be higher or lower than the performance quoted here. Investment returns and the principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost.

 

Total return figures are historical and assume the reinvestment of distributions and the deduction of all Fund expenses. The actual total returns for owners of variable annuity contracts or variable life insurance policies that provide for investment in the Fund will be lower to reflect separate account and contract/policy charges. The return figures shown do not reflect the deduction of taxes that a contractowner may pay on distributions or redemption of units.

 

GABELLI CAPITAL ASSET FUND

1

■  Gabelli Capital Asset Fund

Semiannual Report to Contractowners

 

Disclosure of Fund Expenses (Unaudited) 

For the Six Month Period from January 1, 2022 through June 30, 2022.

 

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 would be 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	Ending			Annualized	Expenses
	Account Value	Account Value			Expense	Paid During
	January 1, 2022	June 30, 2022			Ratio	Period*
The Gabelli Capital Asset Fund
Actual Fund Return	$1,000.00	$	817.00		1.30%	$	5.86
Hypothetical 5% Return	$1,000.00	$	1,018.35		1.30%	$	6.51

 

*

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.

 

 

 

 

 

 

 

2	GABELLI CAPITAL ASSET FUND

■  Gabelli Capital Asset Fund

 

Summary of Portfolio Holdings (Unaudited)

 

The following table present portfolio holdings as a percent of net assets as of June 30, 2022:

 

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-PORT. 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-PORT 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 each 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.

 

 

 

GABELLI CAPITAL ASSET FUND

3

 

 

■   Gabelli Capital Asset Fund

 

Schedule of Investments

 

June 30, 2022 (Unaudited) 

 

Shares						Cost				Market Value
Common Stocks — 99.6%
Aerospace and Defense — 6.9%
	38,500			Aerojet Rocketdyne Holdings  Inc.†		$	133,818			$	1,563,100
	11,000			HEICO Corp.			52,391				1,442,320
	2,700			Honeywell International Inc.			83,424				469,287
	27,000			Kaman Corp.			357,063				843,750
							626,696				4,318,457
Agriculture — 0.4%
	2,500			Archer-Daniels-Midland Co.			53,100				194,000
	300			Bunge Ltd.			16,727				27,207
							69,827				221,207
Automobiles and Components — 0.4%
	1,000			BorgWarner Inc.			10,743				33,370
	5,500			Dana Inc.			103,013				77,385
	2,299			Garrett Motion Inc.†			8,962				17,771
	25,000			Iveco Group NV†			109,479				132,094
							232,197				260,620
Building and Construction — 2.0%
	14,500			Griffon Corp.			171,035				406,435
	9,500			Herc Holdings Inc.			325,600				856,425
							496,635				1,262,860
Commercial and Professional Services — 1.4%
	5,000			Rollins Inc.			5,297				174,600
	4,700			Waste Management Inc.			173,630				719,006
							178,927				893,606
Consumer Durables — 4.6%
	2,900			Cavco Industries Inc.†			84,061				568,371
	9,000			Skyline Champion Corp.†			43,076				426,780
	22,500			Sony Group Corp., ADR			423,252				1,839,825
							550,389				2,834,976
Consumer Services — 1.0%
	6,800			Boyd Gaming Corp.			73,338				338,300
	11,500			Canterbury Park Holding
				Corp.			126,480				297,505
							199,818				635,805
Consumer Staples — 10.4%
	31,500			Brown-Forman Corp., Cl. A			299,266				2,130,660
	4,000			Campbell Soup Co.			183,855				192,200
	37,000			Danone SA, ADR			397,657				412,180
	13,700			Diageo plc, ADR			565,697				2,385,444
	12,500			Fomento Economico
				Mexicano SAB de CV, ADR			489,225				843,625
	4,000			National Beverage Corp.			189,287				195,760
	2,800			The Coca-Cola Co.			68,583				176,148
	3,399			Tootsie Roll Industries Inc.			55,308				120,155
							2,248,878				6,456,172
Diversified Industrial — 3.6%
	11,000			Crane Holdings Co.			330,051				963,160
	1,100			EnPro Industries Inc.			51,413				90,123
	14,000			ITT Inc.			265,633				941,360

 

Shares						Cost				Market Value
	14,500			L.B. Foster Co., Cl. A†		$	246,570			$	186,615
	1,300			Textron Inc.			67,328				79,391
							960,995				2,260,649
Electrical Equipment — 3.8%
	12,000			AMETEK Inc.			59,782				1,318,680
	13,900			Franklin Electric Co. Inc.			81,246				1,018,314
	300			Rockwell Automation Inc.			14,248				59,793
							155,276				2,396,787
Energy — 2.3%
	1,800			Chevron Corp.			112,464				260,604
	4,000			ConocoPhillips			84,007				359,240
	4,400			Devon Energy Corp.			42,991				242,484
	2,000			Dril-Quip Inc.†			48,915				51,600
	3,000			Exxon Mobil Corp.			131,760				256,920
	35,000			RPC Inc.†			151,680				241,850
							571,817				1,412,698
Entertainment — 3.8%
	66,000			Paramount Global, Cl. A			2,582,297				1,799,160
	2,500			The Walt Disney Co.†			44,175				236,000
	10,000			Vivendi SE			128,416				101,609
	15,000			Warner Bros Discovery Inc.†			183,620				201,300
							2,938,508				2,338,069
Financials — 14.2%
	8,600			American Express Co.			190,792				1,192,132
	6,000			Bank of America Corp.			158,007				186,780
	35,300			Indus Realty Trust Inc., REIT			573,056				2,095,408
	3,500			JPMorgan Chase & Co.			100,288				394,135
	1,300			Marsh & McLennan Companies Inc.			33,852				201,825
	12,000			Morgan Stanley			337,603				912,720
	3,500			PROG Holdings Inc.†			15,272				57,750
	7,900			Ryman Hospitality Properties Inc., REIT†			195,063				600,637
	11,500			State Street Corp.			666,574				708,975
	37,000			The Bank of New York Mellon Corp.			1,024,313				1,543,270
	24,500			Wells Fargo & Co.			733,858				959,665
							4,028,678				8,853,297
Health Care — 1.5%
	5,000			Covetrus Inc.†			60,215				103,750
	11,000			Henry Schein Inc.†			222,532				844,140
							282,747				947,890
Information Technology — 6.2%
	14,500			Corning Inc.			165,170				456,895
	48,500			CTS Corp.			471,418				1,651,425
	3,300			Diebold Nixdorf Inc.†			18,211				7,491
	4,000			EchoStar Corp., Cl. A†			69,708				77,200
	11,000			Texas Instruments Inc.			228,690				1,690,150
							953,197				3,883,161
Machinery — 10.0%
	11,000			CIRCOR International Inc.†			328,014				180,290
	125,000			CNH Industrial NV			727,220				1,448,750

 

 

See accompanying notes to financial statements.

4 

 

■   Gabelli Capital Asset Fund

 

Schedule of Investments (Continued)

 

June 30, 2022 (Unaudited)

 

Shares						Cost				Market Value
Common Stocks (Continued)
Machinery (Continued)
	1,800			Deere & Co.		$	52,020			$	539,046
	10,000			Flowserve Corp.			186,379				286,300
	22,500			Graco Inc.			447,872				1,336,725
	2,200			IDEX Corp.			89,825				399,586
	3,000			Snap-on Inc.			656,325				591,090
	8,000			The Eastern Co.			98,352				162,720
	74,010			The L.S. Starrett Co., Cl. A†			587,899				519,550
	1,200			Watts Water Technologies Inc., Cl. A			19,728				147,408
	7,500			Xylem Inc.			211,713				586,350
							3,405,347				6,197,815
Materials — 8.2%
	9,700			Ampco-Pittsburgh Corp.†			43,155				37,539
	36,000			Freeport-McMoRan Inc.			602,601				1,053,360
	2,000			International Flavors & Fragrances Inc.			111,453				238,240
	68,500			Myers Industries Inc.			793,287				1,557,005
	36,200			Newmont Corp.			1,215,881				2,160,054
	600			Sensient Technologies Corp.			12,078				48,336
							2,778,455				5,094,534
Media — 8.8%
	3,000			AMC Networks Inc., Cl. A†			48,772				87,360
	10,000			Cogeco Inc.			195,072				530,221
	11,595			DISH Network Corp., Cl. A†			194,751				207,898
	6,000			Fox Corp., Cl. A			249,300				192,960
	123,000			Grupo Televisa SAB, ADR			1,670,812				1,006,140
	1,500			Liberty Broadband Corp., Cl. A†			9,828				170,325
	1,800			Liberty Broadband Corp., Cl. C†			38,393				208,152
	5,000			Liberty Global plc, Cl. A†			30,677				105,250
	12,000			Liberty Global plc, Cl. C†			87,458				265,080
	12,000			Liberty Latin America Ltd., Cl. A†			130,384				93,600
	269			Liberty Latin America Ltd., Cl. C†			1,921				2,096
	7,000			Liberty Media Corp.-
				Liberty Braves, Cl. A†			165,572				176,050
	2,000			Liberty Media Corp.-
				Liberty Braves, Cl. C†			36,978				48,000
	1,500			Liberty Media Corp.-
				Liberty Formula One, Cl. A†			5,307				86,955
	1,500			Liberty Media Corp.-
				Liberty Formula One, Cl. C†			5,509				95,205
	1,098			Liberty Media Corp.-
				Liberty SiriusXM, Cl. C†			6,072				39,583
	12,144			Madison Square Garden Entertainment Corp.†			84,619				639,017
	6,700			Madison Square Garden Sports Corp.†			86,784				1,011,700

 

Sharess						Cost				Market Value
	26,000			Sinclair Broadcast Group  Inc., Cl. A		$	633,637			$	530,400
							3,681,846				5,495,992
Publishing — 0.5%
	24,000			The E.W. Scripps Co., Cl. A†			172,414				299,280
Retailing — 2.5%
	11,000			CVS Health Corp.			349,769				1,019,260
	2,000			Ingles Markets Inc., Cl. A			29,696				173,500
	31,000			Sally Beauty Holdings Inc.†			466,518				369,520
							845,983				1,562,280
Telecommunication Services — 2.8%
	10,000			Millicom International Cellular SA, SDR†			225,775				142,721
	9,000			Rogers Communications Inc., Cl. B			123,161				431,100
	22,000			Telephone and Data Systems  Inc.			563,941				347,380
	28,000			United States Cellular Corp.†			1,096,172				810,880
							2,009,049				1,732,081
Transportation — 2.1%
	14,000			GATX Corp.			449,589				1,318,240
Utilities — 2.2%
	20,500			National Fuel Gas Co.			1,126,835				1,354,025
				Total Common Stocks			28,964,103				62,030,501
Closed-End Funds — 0.1%
	7,500			Altaba Inc., Escrow†			0				37,875
Convertible Preferred Stocks — 0.0%
Automobiles and Components — 0.0%
	2,535			Garrett Motion Inc., Ser. A, 11.000%			13,309				20,838
Warrants — 0.0%
Materials — 0.0%
	6,000			Ampco-Pittsburgh Corp., expire 08/01/25†			4,099				2,502
TOTAL INVESTMENTS — 99.7%						$	28,981,511				62,091,716
Other Assets and Liabilities (Net) — 0.3%											194,686
NET ASSETS — 100.0%										$	62,286,402

 

†

Non-income producing security.

ADR

American Depositary Receipt

REIT

Real Estate Investment Trust

SDR

Swedish Depositary Receipt

  

 

See accompanying notes to financial statements.

5 

 

■   Gabelli Capital Asset Fund

 

Statement of Assets and Liabilities

 

 

June 30, 2022 (Unaudited)

 

 

ASSETS:
Investments, at value (cost $28,981,511)		$	62,091,716
Cash			582
Foreign currency, at value (cost $97,586)			96,625
Receivable for investments sold			152,490
Receivable for Fund shares sold			7,615
Dividends receivable			84,733
Total Assets			62,433,761
LIABILITIES:
Payable for investment advisory fees			40,286
Payable for legal and audit fees			31,303
Line of credit payable			27,000
Payable for Fund shares redeemed			19,781
Payable for administrative services			13,541
Payable for accounting fees			7,500
Payable for payroll expenses			1,266
Other accrued expenses			6,682
Total Liabilities			147,359
Net Assets (applicable to 3,964,437 shares outstanding)		$	62,286,402
NET ASSETS CONSIST OF:
Paid-in capital		$	25,615,245
Total distributable earnings			36,671,157
Net Assets		$	62,286,402
Shares of Capital Stock, each at $0.001 par value; 500,000,000 shares authorized:
Net Asset Value, offering, and redemption price per share ($62,286,402 ÷ 3,964,437 shares outstanding)		$	15.71

Statement of Operation

 

For the Six Months Ended

June 30, 2022 (Unaudited)

 

 

INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $6,865)		$	572,754
Interest			199
Total Investment Income			572,953
EXPENSES:
Advisory fees			278,522
Administrative services fees			92,840
Legal and audit fees			29,676
Directors’ fees			26,283
Accounting fees			22,500
Shareholder communications expenses			15,525
Shareholder services fees			5,120
Custodian fees			4,754
Payroll expenses			1,325
Interest expense			1,120
Miscellaneous expenses			6,404
Total Expenses			484,069
Less:
Advisory fee reduction on unsupervised assets (See Note 3)			(2,142	)
Net Expenses			481,927
Net Investment Income			91,026
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS AND FOREIGN CURRENCY:
Net realized gain on investments			4,091,957
Net realized gain on foreign currency transactions			8
Net realized gain on investments and foreign currency transactions			4,091,965
Net change in unrealized appreciation/depreciation:
on investments			(18,460,462	)
on foreign currency translations			(1,044	)
Net change in unrealized appreciation/depreciation on investments and foreign currency translations			(18,461,506	)
Net Realized and Unrealized Gain/(Loss) on Investments and Foreign Currency			(14,369,541	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS		$	(14,278,515	)

 

 

See accompanying notes to financial statements.

6 

 

■   Gabelli Capital Asset Fund

 

Statement of Changes in Net Assets

 

		Six Months Ended
		June 30, 2022				Year Ended
		(Unaudited)				December 31, 2021
OPERATIONS:
Net investment income		$	91,026			$	356,313
Net realized gain on investments and foreign currency transactions			4,091,965				9,047,539
Net change in unrealized appreciation/depreciation on investments and foreign currency translations			(18,461,506	)			5,808,907
Net Increase/(Decrease) in Net Assets Resulting from Operations			(14,278,515	)			15,212,759
DISTRIBUTIONS TO SHAREHOLDERS:
Accumulated earnings			—				(9,336,126	)
Total Distributions to Shareholders			—				(9,336,126	)
NET DECREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS			(6,049,906	)			(382,492	)
Net Increase/(Decrease) in Net Assets			(20,328,421	)			5,494,141
NET ASSETS:
Beginning of year			82,614,823				77,120,682
End of period		$	62,286,402			$	82,614,823

 

 

See accompanying notes to financial statements.

7 

 

■   Gabelli Capital Asset Fund

 

Financial Highlights

 

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

 

		Six Months Ended				Year Ended December 31,
		June 30, 2022 (Unaudited)				2021				2020				2019				2018				2017
Operating Performance:
Net asset value, Beginning of Year		$	19.23			$	17.99			$	17.95			$	16.45			$	20.83			$	19.55
Net investment income(a)			0.02				0.09	(b)			0.02				0.06				0.07				0.06
Net realized and unrealized gain/(loss) on investments and foreign currency transactions			(3.54	)			3.60				1.11				3.15				(2.40	)			3.95
Total from investment operations			(3.52	)			3.69				1.13				3.21				(2.33	)			4.01
Distributions to Shareholders:
Net investment income			—				(0.10	)			(0.03	)			(0.07	)			(0.07	)			(0.06	)
Net realized gain on investments			—				(2.35	)			(1.06	)			(1.64	)			(1.98	)			(2.67	)
Return of capital			—				—				—				—				—				(0.00	)(c)
Total distributions			—				(2.45	)			(1.09	)			(1.71	)			(2.05	)			(2.73	)
Net Asset Value, End of Period		$	15.71			$	19.23			$	17.99			$	17.95			$	16.45			$	20.83
Total Return †			(18.30	%)			20.48	%			6.34	%			19.51	%			(11.09	%)			20.49	%
Ratios to Average Net Assets and
Supplemental Data:
Net assets, end of period (in 000’s)		$	62,286			$	82,615			$	77,121			$	82,272			$	78,205			$	104,422
Ratio of net investment income to average net assets			0.25	%(d)			0.43	%(b)			0.15	%			0.34	%			0.33	%			0.26	%
Ratio of operating expenses to average net assets			1.30	%(d)(e)			1.28	%(e)			1.32	%			1.28	%(f)			1.26	%			1.23	%(g)
Portfolio turnover rate			1	%			6	%			2	%			1	%			1	%			2	%

 

†

Total return represents aggregate total return of a hypothetical investment at the beginning of the period and sold at the end of the year including reinvestment of distributions and does not reflect the applicable sales charges. Total return for a period of less than one year is not annualized.

(a)

Per share data are calculated using the average shares outstanding method.

(b)

Includes income resulting from special dividends. Without these dividends, the per share income amounts would have been $0.07 and the net investment income ratio would have been 0.33%.

(c)

Amount represents less than $0.005 per share.

(d)

Annualized.

(e)

Ratio of operating expenses includes advisory fee reduction on unsupervised assets. For the six months ended June 30, 2022 and year ended December 31, 2021, there was no impact on the expense ratio.

(f)

The Fund incurred tax expense during the year ended December 31, 2019, the effect of which was minimal.

(g)

During the year ended December 31, 2017, the Fund received reimbursements of custody expenses paid in prior years. There was no impact on the expense ratio.

 

 

See accompanying notes to financial statements.

 

8 

 

■   Gabelli Capital Asset Fund

 

Notes to Financial Statements

 

June 30, 2022 (Unaudited)

 

1.    Organization

 

The Gabelli Capital Asset Fund was incorporated on April 8, 1993 in Maryland. The Fund is a 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 growth of capital. Current income is a secondary objective. The Fund commenced investment operations on May 1, 1995. Shares of the Fund are available to the public only through the purchase of certain variable annuity and variable life insurance contracts issued by The Guardian Insurance & Annuity Company, Inc. (Guardian) and other selected insurance companies, including Ameritas Life Insurance Corporation.

 

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.

 

The global outbreak of the novel coronavirus disease, known as COVID-19, has caused adverse effects on many companies, sectors, nations, regions, and the markets in general, and may continue for an unpredictable duration. The effects of this pandemic may materially impact the value and performance of the Fund, its ability to buy and sell fund investments at appropriate valuations, and its ability to achieve its investment objectives.

 

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 securities are 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 or 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:

 

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

 

 

9 

 

■   Gabelli Capital Asset Fund

 

Notes to Financial Statements (Continued)

 

June 30, 2022 (Unaudited)

 

•

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 by inputs used to value the Fund’s investments as of June 30, 2022 is as follows:

 

		Valuation Inputs
						Level 2 Other				Total Market
		Level 1				Significant				Value at
		Quoted Prices					Observable Inputs				6/30/22
INVESTMENTS IN SECURITIES:
ASSETS (Market Value):
Common Stocks(a)		$	62,030,501				—			$	62,030,501
Closed-End Funds			—			$	37,875				37,875
Convertible Preferred Stocks (a)			20,838				—				20,838
Warrants (a)			2,502				—				2,502
TOTAL INVESTMENTS IN SECURITIES – ASSETS		$	62,053,841			$	37,875			$	62,091,716

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

 

During the six months ended June 30, 2022, the Fund did not have material transfers into or out of Level 3.

 

There were no Level 3 investments held at June 30, 2022.

 

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 and preferred equities, warrants, options, rights, and fixed income obligations. Where appropriate, Level 3 securities are those for which market quotations are not available, such as securities not traded for several days, or for which current bids are not available, or which are restricted as to transfer. 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.

 

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 portion of the periodic expenses of the Acquired Funds in addition to the Fund’s expenses. For the six months ended June 30, 2022, the Fund’s pro rata portion of the periodic expenses charged by the Acquired Funds was less than one basis point.

 

 

10 

 

■   Gabelli Capital Asset Fund

 

Notes to Financial Statements (Continued)

 

June 30, 2022 (Unaudited)

 

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.

 

Securities Transactions and Investment Income

 

Securities transactions are accounted for on the trade date with realized gain or 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 or amortized to earliest call date, if applicable. 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.

 

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.

 

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 net asset value (NAV) per share of the Fund.

 

 

11 

 

■   Gabelli Capital Asset Fund

 

Notes to Financial Statements (Continued)

 

June 30, 2022 (Unaudited)

 

The tax character of distributions paid during the year ended December 31, 2021 was as follows:

 

Distributions paid from:
Ordinary income (inclusive of short term capital gains)		$	507,993
Net long term capital gains			8,828,133
Total distributions paid		$	9,336,126

 

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 following summarizes the tax cost of investments and the related net unrealized appreciation at June 30, 2022:

 

							Gross				Gross				Net
							Unrealized				Unrealized				Unrealized
			Cost				Appreciation				Depreciation				Appreciation
Investments			$	29,521,838			$	35,847,911			$	(3,278,033	)		$	32,569,878

 

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. During the six months ended June 30, 2022, the Fund did not incur any income tax, interest, or penalties. As of June 30, 2022, 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.     Agreements with Affiliated Parties

 

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 0.75% 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 certain 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 entered into a shareholder services agreement with The Guardian Insurance & Annuity Company, Inc. (Guardian), whereby Guardian provides various administrative services, including maintenance of books and records, reconciliations with respect to Fund purchase and redemption orders, and telephone support for contractowners, as well as providing advice to the Adviser with respect to relevant insurance laws, regulations, and related matters and IRS regulations with respect to variable contracts. As compensation for its services, the Fund pays Guardian a fee, computed daily and paid monthly, at the annual rate of 0.25% of the value of its average daily net assets.

 

There was a reduction in the advisory fee paid to the Adviser relating to certain portfolio holdings, i.e., unsupervised assets, of the Fund with respect to which the Adviser transferred dispositive and voting control to the Fund’s Proxy Voting Committee. During the six months ended June 30, 2022, the Fund’s Proxy Voting Committee exercised control and discretion over all rights to vote or consent, and exercised dispositive control with respect to The L.S. Starrett Co., Class A and the Adviser reduced its fee with respect to such securities by $2,142.

 

4.     Portfolio Securities

 

Purchases and sales of securities during the six months ended June 30, 2022, other than short term securities and U.S. Government obligations, aggregated $800,905 and $6,518,790, respectively.

 

 

12 

 

■   Gabelli Capital Asset Fund

 

Notes to Financial Statements (Continued)

 

June 30, 2022 (Unaudited)

 

5.    Transactions with Affiliates

 

 During the six months ended June 30, 2022, the Fund paid $1,532 in brokerage commissions on security trades to G.research, LLC, an affiliate of the Adviser.

 

 The cost of calculating the Fund’s NAV per share is a Fund expense pursuant to the Investment Advisory Agreement. Under the sub-administration agreement with Bank of New York Mellon, the fees paid include the cost of calculating the Fund’s NAV. The Fund reimburses the Adviser for this service. During the six months ended June 30, 2022, the Fund accrued $22,500 in accounting fees in the Statement of Operations.

 

 As per the approval of the Board, the Fund compensates an officer of the Fund, who is employed by the Fund and who is also employed by the Adviser and receives compensation from the Adviser. During the six months ended June 30, 2022, the Fund accrued $1,325 in payroll expenses in the Statement of Operations.

 

 The Fund pays retainer and per meeting fees to Directors not affiliated with the Adviser, plus specified amounts to the Lead Director and Audit Committee Chairman. Directors are also reimbursed for out of pocket expenses incurred in attending meetings. Directors who are directors or employees of the Adviser or an affiliated company receive no compensation or expense reimbursement from the Fund.

 

6.     Line of Credit

 

 The Fund participates in an unsecured line of credit, which expires on March 1, 2023 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 bear interest at a floating rate equal to the higher of the Overnight Federal Funds Rate plus 135 basis points or the Overnight Bank Funding Rate plus 135 basis points in effect on that day. This amount, if any, would be included in “Interest expense” in the Statement of Operations. At June 30, 2022, there was $27,000 outstanding under the line of credit.

 

 The average daily amount of borrowings outstanding under the line of credit during the six months ended June 30, 2022 was $240,473 with a weighted average interest rate of 1.96%. The maximum amount borrowed at any time during the six months ended June 30, 2022 was $1,055,000.

 

7.

Capital Stock

 

Transactions in shares of capital stock were as follows:

 

		Six Months Ended
		June 30, 2022								Year Ended
		(Unaudited)								December 31, 2021
		Shares				Amount				Shares				Amount
Shares sold			40,545			$	744,701				107,710			$	2,196,496
Shares issued upon reinvestment of distributions			—				—				484,993				9,336,126
Shares redeemed			(373,281	)			(6,794,607	)			(583,493	)			(11,915,114	)
Net increase/(decrease)			(332,736	)		$	(6,049,906	)			9,210			$	(382,492	)

 

8.    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.

 

9.     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.

 

 

13 

 

■   Gabelli Capital Asset Fund

 

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

 

Section 15(c) of the 1940 Act, as amended, contemplates that the Board of the Fund, the only series of Gabelli Capital Series Funds, Inc. (the Company), including a majority of the Directors who have no direct or indirect interest in the investment management agreement or the investment advisory agreement and are not interested persons of the Company, as defined in the 1940 Act (the Independent Board Members), are required annually to review and re-approve the terms of the Fund’s existing investment advisory agreement and approve any newly proposed terms therein. In this regard, the Board reviewed and re-approved, during the most recent six month period covered by this report, the Investment Advisory Agreement (the Advisory Agreement) with the Adviser for the Fund.

 

More specifically, at a meeting held on February 7, 2022, the Independent Board Members, meeting in executive session, reviewed the written and oral information that had been made available and considered the factors, and reached the conclusions described below relating to the selection of the Adviser and the re-approval of the Advisory Agreement.

 

1) The nature, extent, and quality of services provided by the Adviser

 

The Independent Board Members reviewed in detail the nature and extent of the services provided by the Adviser under the Advisory Agreement, and the quality of those services over the past year. The Independent Board noted that these services included managing the investment program of the Fund, including the purchase and sale of portfolio securities, overseeing all of the Fund’s third party service providers as well as providing general corporate services. The Independent Board Members considered that the Adviser also provided, at its expense, office facilities for use by the Fund and supervisory personnel responsible for supervising the performance of administrative, accounting, and related services for the Fund, including monitoring to assure compliance with stated investment policies and restrictions under the 1940 Act and related securities regulations. The Independent Board Members noted that, in addition to managing the investment program for the Fund, the Adviser provided certain non-advisory and compliance services, including services under the Fund’s Rule 38a-1 compliance program.

 

The Independent Board Members also considered that the Adviser paid for all compensation of officers and non-Independent Board Members of the Fund. The Independent Board Members evaluated these factors based on their direct experience with the Adviser and in consultation with Fund Counsel. The Independent Board noted that the Adviser had engaged, at its expense, BNY to assist it in performing certain of its administrative functions. The Independent Board Members concluded that the nature and extent of the services provided were reasonable and appropriate in relation to the advisory fee, that the level of services provided by the Adviser had not diminished over the past year, and that the quality of service continued to be high.

 

The Independent Board Members reviewed the personnel responsible for providing services to the Fund and concluded, based on their experience and interaction with the Adviser, that (i) the Adviser was able to retain quality personnel, (ii) the Adviser and its agents exhibited a high level of diligence and attention to detail in carrying out their advisory and administrative responsibilities under the Advisory Agreement, (iii) the Adviser was responsive to requests of the Board, (iv) the scope and depth of the Adviser’s resources was adequate, and (v) the Adviser had kept the Board apprised of developments relating to the Fund and the industry in general. The Independent Board Members also focused on the Adviser’s reputation and long standing relationship with the Fund. The Independent Board Members also believed that the Adviser had devoted substantial resources and made substantial commitments to address new regulatory compliance requirements applicable to the Fund.

 

 

14 

 

■   Gabelli Capital Asset Fund

 

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

 

2) The performance of the Fund and the Adviser.

 

The Independent Board Members reviewed the investment performance of the Fund, on an absolute basis, as compared with its Broadridge peer group of other SEC registered funds. The Independent Board Members considered the Fund’s one, three, five, and ten year average annual total return for the periods ended December 31, 2021, but placed greater emphasis on the Fund’s longer term performance. The peer group considered by the Independent Board Members was developed by the Adviser and was comprised of the Fund and four other comparable peer funds (the Adviser Peer Group). The Independent Board Members considered these comparisons helpful in their assessment as to whether the Adviser was obtaining for the Fund’s shareholders the total return performance that was available in the marketplace, given the Fund’s investment objectives, strategies, limitations, and restrictions. In reviewing the performance of the Fund, the Independent Board Members noted that the Fund’s performance was below average as compared with the peer group chosen by the Adviser for the one year, three year, five year, and ten year periods.

 

In connection with its assessment of the performance of the Adviser, the Independent Board Members considered the Adviser’s financial condition and whether it had the resources necessary to continue to carry out its functions under the Advisory Agreement. The Independent Board Members concluded that the Adviser had the financial resources necessary to continue to perform its obligations under the Advisory Agreement and to continue to provide the high quality services that it has provided to the Fund to date.

 

3) The cost of the advisory services and the profits to the Adviser and its affiliates from the relationship with the Fund

 

In connection with the Independent Board Members’ consideration of the cost of the advisory services and the profits to the Adviser and its affiliates from the relationship with the Fund, the Independent Board Members considered a number of factors. First, the Independent Board Members compared the level of the advisory fee for the Fund against the comparative Adviser expense peer group (Expense Peer Group). The Independent Board Members also considered comparative non-management fee expenses and comparative total fund expenses of the Fund and the Expense Peer Group. The Independent Board Members considered this information useful in assessing whether the Adviser was providing services at a cost that was competitive with other similar funds. In assessing this information, the Independent Board Members considered both the comparative contract rates as well as the level of the total expense ratio. In particular, the Independent Board Members noted that the Fund’s advisory fee and total expense ratio were above the Expense Peer Group median.

 

The Independent Board Members also reviewed the fees charged by the Adviser to provide similar advisory services to other RICs or accounts with similar investment objectives, noting that the fees charged by the Adviser were the same or lower than the fees charged to the Fund.

 

The Independent Board Members also considered an analysis prepared by the Adviser of the estimated profitability to the Adviser of its relationship with the Fund and reviewed with the Adviser its cost allocation methodology in connection with its profitability. In this regard, the Independent Board Members reviewed the Pro Forma Income Statements of the Adviser for the fiscal year ended December 31, 2021. The Independent Board Members considered one analysis for the Adviser as a whole and a second analysis for the Adviser with

 

 

15 

 

■   Gabelli Capital Asset Fund

 

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

 

respect to the Fund. With respect to the Fund analysis, the Independent Board Members received an analysis based on the Fund’s average net assets during the period as well as a pro forma analysis of profitability at higher and lower asset levels. The Independent Board Members concluded that the profitability of the Fund to the Adviser under either analysis was not excessive.

 

4) The extent to which economies of scale will be realized as the Fund grows and whether fee levels reflect those economies of scale

 

With respect to the Independent Board Members’ consideration of economies of scale, the Independent Board Members discussed whether economies of scale would be realized by the Fund at higher asset levels. The Independent Board Members also reviewed data from the Expense Peer Group to assess whether the Expense Peer Group funds had advisory fee breakpoints and, if so, at what asset levels. The Independent Board Members also assessed whether certain of the Adviser’s costs would increase if asset levels rise. The Independent Board Members noted the Fund’s current size and concluded that under foreseeable conditions, they were unable to assess at this time whether economies of scale would be realized if the Fund were to experience significant asset growth. In the event there was to be significant asset growth in the Fund, the Independent Board Members determined to reassess whether the advisory fee appropriately took into account any economies of scale that had been realized as a result of that growth.

 

5) Other Factors

 

In addition to the above factors, the Board also discussed other benefits received by the Adviser from its management of the Fund.

 

The Board considered that the Adviser does use soft dollars in connection with its management of the Fund. 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 based their decision on evaluations of all these factors as a whole and did not consider any one factor as all-important or controlling.

  

 

16 

 

 

(b)

Not applicable.

 

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”)) are effective as of a date within 90 days of the filing of this report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.

 

 

 

 

(b)

The registrant’s certifying officers are not aware of any changes in the registrant’s internal control over financial reporting (as defined in rule 30a-3(d) under the 1940 Act) that occurred during 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)

Not applicable.

 

(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)(2)(1)

Not applicable.

 

(a)(2)(2)

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 Capital Series Funds, Inc.

 

By (Signature and Title)*		/s/ John C. Ball
		John C. Ball, Principal Executive Officer

 

Date

September 7, 2022

  

 

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/ John C. Ball
		John C. Ball, Principal Executive Officer

 

Date

September 7, 2022

 

By (Signature and Title)*		/s/ John C. Ball
		John C. Ball, Principal Financial Officer and Treasurer

 

Date

September 7, 2022

 

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