Gabelli attributed the drop in its earnings to declines in the equity markets, which have decreased its assets under management by $2.7 billion to $23.2 billion at the end of June. Gabelli increased its investment advisory revenues, however, through increased fees from its institutional and high-net-worth separate account business, the firm announced.
Meanwhile, Gabelli also announced today that it will begin expensing the cost of stock options on Jan. 1, 2003.