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To: tsigprofit who wrote (9342)	8/13/2001 11:16:07 AM
From: Bucky Katt	Respond to of 13094

Bill Gates' Cascade Invests $100 Mln in Gabelli Funds I mentioned a week ago about GBL being the "cream" of the crop...Also mentioned GAB over the years, it returns 11-16% total every year.. GBL made a new 52w high on this news.. By Emma Moody Rye, New York, Aug. 13 (Bloomberg) -- Bill Gates, founder and chairman of Microsoft Corp., plans to invest $100 million in Mario Gabelli's $26 billion funds management business. Gates' personal investment company Cascade Investment LLC agreed to buy a 10-year convertible note in Gabelli Asset Management Inc., helping finance the firm's push into Europe, Gabelli said. If the note is converted into stock, Cascade will own 6 percent of the money management firm whose assets grew by $1.3 billion in the first six months of the year. Gabelli needs to expand into new markets to continue that growth, analysts said. ``This is a company that has grown very fast and it's going to be difficult for them to continue growing as fast,'' said Craig Woker, stock analyst at Morningstar, which tracks funds managers. Gates and Gabelli both attended Allen & Co.'s media and computer conference in Sun Valley, Idaho, last month and have partnered in business before. In December 1999, Cascade lent $25 million to Gabelli's local telephone venture, Lynch Interactive Corp., taking a 17 percent stake in the business. Lynch shares are up 57 percent this year. Most of Cascade's funds, managed by Michael Larson on behalf of Gates, are in Microsoft stock. The fund also holds stakes in Liberty Satellite & Technology Inc., a company controlled by Liberty Media, and in software rival Red Hat Inc. Europe Fund Gabelli will pay 6.5 percent interest on the note in the first year and 6 percent after that. Cascade can convert the note into Gabelli shares at $53 a share, a 21 percent premium to Gabelli's Friday closing price of $43.78. The shares today rose 7 cents to $43.85. After the purchase, Gabelli will have a $400 million fund for Europe, including $300 million it raised before Gates' investment, the Financial Times reported yesterday. Gabelli, based in Rye, New York, manages about $26 billion in assets of mutual funds, closed-end funds, partnerships, offshore funds and private advisory accounts. Its shares have risen 36 percent in the past six months, buoyed by rising profits as assets under management grew. Gabelli reported July 24 that second-quarter profit and assets under management both rose 10 percent. Message 16184467 @ the bottom