Gabelli Funds, the wholly-owned subsidiary of Gabelli Asset Management of Rye, New York, has agreed to purchase two mutual funds currently managed by Comstock Partners of Lawrenceville, N.J. Gabelli will become the new adviser and distributor for the funds, the $35 million Comstock Partners Strategy Fund and the $55 million Comstock Partners Capital Value Fund, pending shareholder approval.
Comstock's two principal's, Charles Minter, chairman and CEO, and Martin Weiner, president, will become Gabelli employees and will continue to co-manage the funds. The funds will be renamed the Gabelli Comstock Strategy Fund and the Gabelli Comstock Capital Value Fund.
Comstock sought a buyer for its funds after three-years of negative returns on both funds and disappointing longer-term track records. In a proxy filed March 9, Comstock executives said their bearish outlook and their value investment style hurt the fund's performance and precipitated net redemptions. The purchase by Gabelli will offer Comstock fund shareholders the ability to realize greater economies of scale and broader distribution.