Statement of Additional Info - Gabelli

authorized by the Dodd-Frank Act could result in higher Fund costs and expenses. Legislators and regulators in the
United States are currently considering a wide range of proposals in addition to the Dodd-Frank Act that, if enacted,
could result in major changes to the way banking operations are regulated. In addition, the recent European debt crisis
and related financial restructuring efforts have contributed to the instability in global credit markets. The strength and
duration of any economic recovery will be impacted by the European debt crisis and the reaction to any efforts to address
the crisis.
Government Intervention In Financial Markets Risk
The recent instability in the financial markets has led the U.S. government and foreign governments to take a number of
unprecedented actions designed to support certain financial institutions and segments of the financial markets that have
experienced extreme volatility, and in some cases a lack of liquidity. U.S. federal and state governments and foreign
governments, their regulatory agencies or self regulatory organizations may take additional actions that affect the
regulation of the securities in which a Fund invests, or the issuers of such securities, in ways that are unforeseeable.
Issuers of corporate securities might seek protection under the bankruptcy laws. Legislation or regulation may also
change the way in which a Fund itself is regulated. Such legislation or regulation could limit or preclude a Fund's ability
to achieve its investment objective.
Market Disruption and Geopolitical Risk
The terrorist attacks on domestic U.S. targets on September 11, 2001, the wars in Iraq and Afghanistan, instability in the
Middle East, and other geopolitical events have led to, and may in the future lead to, increased short term market
volatility and may have long term effects on U.S. and world economies and markets. The nature, scope and duration of
the wars and occupations cannot be predicted with any certainty. Similar events in the future or other disruptions of
financial markets could affect interest rates, securities exchanges, credit risk, inflation, and other factors relating to a
Fund.
INVESTMENT RESTRICTIONS
The Funds’ investment objectives and the following investment restrictions are fundamental and cannot be changed
without the affirmative vote of the holders of a majority of each Fund's outstanding voting securities. The term
“majority,” as defined by the 1940 Act when referring to the approvals to be obtained from shareholders in connection
with changing fundamental policies of a Fund, means the vote of the lesser of (i) 67% of the shares of the Fund (or class)
represented at a meeting if the holders of more than 50% of the outstanding shares of the Fund (or class) are present in
person or by proxy, or (ii) more than 50% of the outstanding shares of the Fund (or class). Each Fund (except the Mid-
Cap Equity Fund), except as otherwise indicated, may not:
1. Purchase the securities of any issuer if such purchase would cause more than 5% of the value of its total assets
to be invested in securities of such issuer. This restriction applies only with respect to 75% of each Fund's total
assets. For purposes of this restriction, these limitations do not apply with respect to securities issued by the
U.S. government, its agencies, or instrumentalities.
2. Purchase the securities of any issuer if such purchase would cause the Fund to hold more than 10% of the
outstanding voting securities of such issuer. This restriction applies only with respect to 75% of each Fund's
total assets.
3. Each Fund, other than the Mighty Mites Fund, may not purchase securities of any company having less than
three years' continuous operations (including operations of any predecessors) if such purchase would cause the
value of a Fund's investments in all such companies to exceed 5% of the value of its total assets.
4. Purchase or retain the securities of any issuer if the officers or Trustees of the Funds or the officers or Directors
of the Adviser who individually own beneficially more than ½ of 1% of the securities of such issuer together
own beneficially more than 5% of the securities of such issuer.
5. Purchase, hold, or deal in commodities or commodity contracts, but the Funds may engage in transactions
involving futures contracts and related options, including the futures and related options transactions as
described in this SAI.
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