Value Equity
Philosophy:
In the tradition of Graham and Dodd, GAMCO employs fundamental research to identify
companies with dominant industry positions that are selling at substantial discounts to
their intrinsic or private market value.
Objectives:
- 10% real rate of return,
- Capital preservation,
- Risk control through diversification and internally generated research.
Methodology:
We use a three-pronged approach to value securities: free cash flow, earnings
per share trends and Private Market Value (PMV) analysis. Once we have identified
fundamental bargains, we seek a catalyst or element of change that will surface
value and attract investor attention. Each portfolio is seperately managed and
customized to meet specific client needs.
| Portfolio Data: |
(as of 12/31/1998) |
| Avg. Num. of positions: | 55 |
| Avg. Annual Turnover: | 20% |
| Avg. Mkt. Capitalization: | $5.6 bil |
| Median Mkt. Capitalization: | $1.2 bil |
| Beta: | 0.80 |
| R-Squared: | 0.81 |
| | |
| Breakdown: | NYSE | 67% |
| AMEX | 27% |
| NASDAQ | 6% |
| Manager: | Mario J. Gabelli |
Annualized Returns
(as of 12/31/98) |
GAMCO(a)
(Net) |
Russell
Midcap | |
Top Positions(b) (as of 12/31/98) |
| 1 Yr. |
20.5% |
10.1% | |
Cablevision |
Telephone & Data Systems |
| 5 Yr. |
19.8% |
17.4% | |
Viacom |
MediaOne Group |
| 10 yr. |
16.4% |
16.7% | |
Time Warner |
Tele-Communications Inc. |
| 15 Yr. |
17.9% |
15.7% | |
Media General |
McGraw Hill Cos. |
| 20 Yr. |
20.6% |
17.3% |
|
American Express |
Chris Craft |
The Gabelli Asset Management Company, Inc.(GAMCO) annualized rates of return are computed
on a total return basis which includes all dividends, interest and accrued interest, and
realized and unrealized gains and losses. All reuslts presented here are net of fees
and expenses.
Gabelli Value composite represents fully discretionay, tax-exempt accounts managed for
the full period under measurement and meeting minimum account size requirements. The
minimum size requirements for inclusion in 1985 was $500,000; 1986 - $1,000,000; and
1987 - $5,000,000. At 12/31/98, the composite included 62 accounts with an aggregate
market value of $3.5 billion. No two portfolios are identical. Accounts not within
this size and type may have experienced different results. The Russell Midcap is an
unmanaged index consisting of 800 mid-cap stocks. Results prior to 1993 are calculated
on a simple average basis and subsequent periods are calculated on a dollar-weighted basis.
- (a)Past performance is no guarantee for future results. Performance results prior
to 1990 relfect the deduction of model investment advisory fees (1% compounded quarterly)
and actual transaction costs. The Russell Midcap is an unmanaged index of 800 stocks and
does not necessarily reflect how a managed portfolio of equity securities would have
performed. The composite represents fully discretionary, tax exempt accounts full period
under measurement and meeting minimum size requirements. The minimum size requirements for
inclusion in 1985 was $500,000; 1986 - $1,000,000; and 1987, and thereafter $5,000,000.
The performance accounts under management during the respective periods. At 4th quarter end
1998, the composite included 62 accounts with an aggregate market value of $3.5 billion.
- (b) A list of all recommendations made within the past 12 months will be furnished
upon request.
[Small Cap Equity]
[Convertible Securities]
[Growth Domestic]
[Growth International]
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