Gabelli Mutual Fund GAUCX

By Anonymous Questions, June 17, 2013

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

I would like your opinion on one of Gabelli’s mutual funds. It is GAUCX WHICH PAYS A MANDATED .07 PER SHARE. WHICH AT CURRENT PRICE OF $4.75 GIVE OR TAKE, IS 17%. It’s distribution yield is around 3-4%.I have read the prospectus and find it very confusing. I was hoping you could make some sense of it. It looks on the surface to be a no brainer but i’m fearful that i am missing something. It seems to me that if I keep reinvesting the dividends that I will have a sizeable income from this in 7-8 years as the number of shares would double aprox. twice in 8 years if the price stays the same or goes down they would double even faster. If the price goes up maybe a little longer. I’m trying to see the downside here? I will appreciate any feedback you can give,

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5 Comments on " Gabelli Mutual Fund GAUCX"

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MP
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MP
January 10, 2014 3:41 pm

I own thousands of shares of GAUCX and have for years. This is a solid fund managed by a brilliant investor/manager. Highly recommended A+

Linda
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Linda
August 5, 2015 11:04 am

Would love to hear what you think of the fund in the last few years….

CL
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CL
June 25, 2014 3:06 pm

I just looked into this yesterday as well. Basically, GAUCX will give you 18.1% dividend and it doesn’t matter how they get it… Basically the yield is 4% and the other 96% of the dividend comes from your own capital. Thus they are just giving you your money back. I am still doing research, but after the 2.14% management fees for the fund you are only making 1.86% dividend or growth from this stock. It’s a shell game and it looks good until you research it fully.

Linda
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Linda
August 5, 2015 11:03 am

Terrible investment! It had a big REVERSE stock split, still paid .07 per share, so amount of distribution was halved!! NAV still going down. I suspect after it has come down a lot more , another reverse split may come. 90% of their distribution is ROC ( your own money coming back to you). Be very careful….would love to sell this but I am down so far now, can’t afford the loss. Expense ration over 2%, real yld is about 1.5%. Yuck.

Ivan
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Ivan
December 16, 2015 8:35 am

What a piece of garbage thus fund is. I am 15% down its s nughtmare.

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