Mr. Marangi: GAMCO Investors was founded in 1977 by Mario Gabelli and have been listed on the New York Stock Exchange, symbol "GBL," since 1999. The firm has over 20 billion under management in separate accounts, mutual funds and hedge funds. We offer a diversified mix of products for a broad spectrum of investors. However, we are best known for our research-driven, value-oriented approach to investing. Our particular contribution to the Graham & Dodd tradition, and the analytical approach of the Gabelli Value Fund (GABVX) is based on private market value with a catalyst. Private market value is what an informed strategic buyer would pay for a business. We estimate that value based on our deep knowledge of an industry and we look for a catalyst that will drive a security's public market value to its private market value. Catalysts can take the form of acquisitions, spin-offs, changes in management, and changes in regulation, among other dynamics. An integral part of the selection process is to seek an adequate margin of safety - a discount to private market value of usually 30% or more.
TWST: This has been a difficult year for all type of investing philosophies. How has GAMCO been faring with the turmoil in the market and so on over the last 12 months?
Mr. Marangi: The firm has weathered the storm well. We continue to add to our own intellectual capital by hiring research analysts. We have a strong balance sheet and great long-standing client relationships. Our investments last year performed generally in line with the market. We have a long track record of outperforming the indexes, but we think we are particularly well positioned for the future. We think now is a great time to invest in the manner we do.
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