GAMCO Investors, Inc., formerly known as Gabelli Asset Management Company, is a provider of investment advice and brokerage services to mutual funds, institutional and select investors based in Rye, New York. It was founded by and is majority owned by Mario Gabelli, who has cumulatively earned more than $750 million in compensation from the company.
History
The company was founded in 1976 to provide discretionary investment services to a broad spectrum of investors. In February 1999, the company held an IPO on the New York Stock Exchange under the symbol . Per an agreement with the company upon its IPO, Mario Gabelli received 10 percent of its pretax profits in compensation. In August 2005, the company elevated the brand name 'GAMCO' from its asset management business to become the name of the entire company. In June 2019, GAMCO Investors Inc. reduced its position in Citigroup Inc by 22.5% in the 1st quarter, according to its most recent filing with the SEC. The firm owned 130,407 shares of the financial services provider’s stock after selling 37,800 shares during the period. GAMCO Investors Inc.'s holdings in Citigroup were worth $8,114,000 at the end of the most recent reporting period.
Lawsuits and Investigations
In 1992, Gabelli and GAMCO were under an investigation by the Federal Communications Commission that was later settled. In March 2006, a judge determined Mario Gabelli had unfairly prevented Frederick J. Mancheski, a long time investment partner, and David M. Perlmutter, Gabelli's former lawyer, from selling their shares in Gabelli Group Capital Partners at fair market value. In the settlement, Gabelli paid the couple $100 million that would amount to a total of 2.1 million GAMCO shares, then worth about $80 million, and more than $20 million in cash. Also in 2006, Gabelli faced a civil investigation from the U.S. Department of Justice as to whether he purposefully deceived the FCC when bidding to purchase segments of the wireless spectrum. The company, along with Gabelli, agreed to a settlement in June 2006. The company offered to settle an investigation by the U.S. Securities and Exchange Commission in exchange for $3 million in 2007.
