written by reader Gabelli Mutual Fund GAUCX

by Anonymous Questions | June 17, 2013 10:17 am

I would like your opinion on one of Gabelli’s mutual funds[1]. 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[2] 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,

Endnotes:
  1. mutual funds: https://www.stockgumshoe.com/tag/mutual-funds/
  2. dividends: https://www.stockgumshoe.com/tag/dividends/

Source URL: https://www.stockgumshoe.com/2013/06/microblog-gabelli-mutual-fund-gaucx/


5 responses to “written by reader Gabelli Mutual Fund GAUCX”

  1. MP says:

    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+

  2. CL says:

    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.

  3. Ivan says:

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

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