Original GBL Prospectus - Gabelli

deÑned in the Investment Company Act. The OÅering will not constitute an ""assignment'' for the purposes of
the Investment Company Act. The Company may terminate a distribution agreement without penalty upon 60
days' written notice.
Gabelli & Company is involved in external syndicated underwriting activities. For the nine months ended
September 30, 1998, Gabelli & Company participated as an underwriter in 28 syndicated underwritings with
commitments totaling $96 million for public equity and debt oÅerings managed by major investment banks.
During 1997, Gabelli & Company participated in 35 syndicated underwritings with commitments totaling
$51 million.
Competition
The Company competes with mutual fund companies and other investment management Ñrms, insurance
companies, banks, brokerage Ñrms and other Ñnancial institutions that oÅer products which have similar
features and investment objectives to those oÅered by the Company. Many of the investment management
Ñrms with which the Company competes are subsidiaries of large diversiÑed Ñnancial companies and many
others are much larger in terms of assets under management and revenues and, accordingly, have much larger
sales organizations and marketing budgets. Historically, the Company has competed primarily on the basis of
the long-term investment performance of many of its funds. However, the Company has determined that
competing primarily on the basis of performance is inadequate and accordingly, the Company has taken steps
over the past two years to substantially increase its distribution channels, brand name awareness and
marketing eÅorts. Although there can be no assurance that the Company will be successful in these eÅorts, its
net sales of Mutual Funds have increased signiÑcantly over the past year and the Company's strategy is to
continue to devote signiÑcant additional resources to its sales and marketing eÅorts.
The market for providing investment management services to institutional and high net worth Separate
Accounts is also highly competitive. Approximately 41% and 43% of the Company's investment management
fee revenues for the nine months ended September 30, 1998 and year ended December 31, 1997, respectively,
was derived from its Separate Accounts. Selection of investment advisers by U.S. institutional investors is
often subject to a screening process and to favorable recommendation by investment industry consultants.
Many of these investors require their investment advisers to have a successful and sustained performance
record, often Ñve years or longer, and also focus on one and three year performance records. The Company has
signiÑcantly increased its assets under management on behalf of U.S. institutional investors since its entry into
the institutional asset management business in 1977. At the current time, the Company believes that its
investment performance record would be attractive to potential new institutional and high net worth clients
and the Company has determined to devote additional resources to the institutional and high net worth
investor markets. However, no assurance can be given that the Company's eÅorts to obtain new business will
be successful.
Intellectual Property
Service marks and brand name recognition are important to the Company's business. The Company has
rights to the service marks under which its products are oÅered. The Company has registered certain service
marks in the United States and will continue to do so as new trademarks and service marks are developed or
acquired. The Company has rights to use (i) the ""Gabelli'' name, (ii) the ""GAMCO'' name, (iii) the
research triangle logo, (iv) the ""Interactive Couch Potato'' name, and (v) the ""Mighty Mites'' name.
Pursuant to an assignment agreement, Mr. Gabelli has assigned to the Company, eÅective as of the OÅering,
all of his rights, title and interests in and to the ""Gabelli'' name for use in connection with investment
management services, mutual funds and securities brokerage services. However, under the agreement, Mr.
Gabelli will retain any and all right, title and interest he has or may have in the ""Gabelli'' name for use in
connection with (i) charitable foundations controlled by Mr. Gabelli or members of his family or (ii) entities
engaged in private investment activities for Mr. Gabelli or members of his family. In addition, the funds
managed by Mr. Gabelli outside the Company have entered into a license agreement with the Company,
eÅective as of the OÅering, permitting them to continue limited use of the ""Gabelli'' name under speciÑed
circumstances. The Company has taken, and will continue to take, action to protect its interests in these
service marks.
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