A N N U A L
R E P O R T
2015
GAMCO Investors, Inc.
Our teammates on the floor of the New York Stock Exchange celebrating our listing
Associated Capital began trading on the NYSE on December 1, 2015 (NYSE: AC)
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GAMCO Investors, Inc.
Dear Partners/Shareholders:
It is our privilege to share with you the state of Associated Capital (“AC” or the “Company”) as we enter our
first full year as an independent public company, but 40th year investing on behalf of our clients. Let’s go back to the
beginning. When we started the business, we set forth a mission statement and think it is appropriate to share it with
you again.
Mission Statement (Gabelli & Company, 1976):
To earn a superior risk-adjusted return for our clients over the long-term by providing value-added
products utilizing our proprietary fundamental methodology.
By earning returns for our clients, we will be earning returns for all our stakeholders:
(cid:122) Our Shareholders
(cid:122) Our Professional Staff
We appreciate the confidence and trust you have offered our organization. Today, we remain vigilant in the
application of our investment philosophy and in our search for opportunities, as we have for forty years. We thank you
for entrusting a portion of your assets to (y)our firm.
Financial Highlights
On November 30, 2015, GAMCO Investors, Inc. (“GAMCO”) distributed all the outstanding shares of each class of
common stock of AC on a pro rata one-for-one basis to the holders of each class of GAMCO’s common stock. Prior to
the distribution, GAMCO contributed the 93.9% interest it held in Gabelli Securities, Inc. (“GSI”) and certain cash and
other assets to AC.
As we had previously communicated, we believed that separating AC as an independent, publicly owned
company will add increased value to both AC and GAMCO. The spin-off permits each company to:
tailor its strategic plans and growth opportunities
(cid:273)
(cid:273) more efficiently raise and allocate resources, including capital raised through debt
or equity offerings
flexibly use its own stock as currency for teammate incentive compensation
and potential acquisitions
provide investors a more targeted investment opportunity
(cid:273)
(cid:273)
The following transactions were also undertaken in connection with the Spin-off:
AC, through its majority owned GSI subsidiary, acquired 4,393,055 shares of GAMCO Class A common stock.
GAMCO issued a promissory note (the “GAMCO Note”) to AC in the original principal amount of $250.0 million
used to partially capitalize the Company in connection with the Spin-off. The GAMCO Note bears interest at 4.0% per
annum and has a maturity date of November 30, 2020. GAMCO will repay the original principal amount of the GAMCO
Note to AC Group, in cash, in five equal annual installments of $50 million on each interest payment date up to and
including the maturity date. GAMCO may prepay the GAMCO Note prior to maturity without penalty.
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GAMCO Investors, Inc.
Condensed Consolidated Balance Sheet
(In thousands)
ASSETS
Investments (including cash and cash equivalents) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total assets
LIABILITIES AND EQUITY
Compensation payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Securities sold, not yet purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income tax payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued expenses and other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities and equity
Decmeber 31,
2015
2014
763,101
68,863
4,784
653,308
78,954
22,432
$836,748
$754,694
10,926
9,623
5,669
53,243
79,461
9,179
10,595
16,363
67,296
103,433
Redeemable noncontrolling interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5,738
68,334
Stockholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GBL 4% PIK Note . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noncontrolling interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities and equity
999,196
(250,000)
2,353
751,549
$836,748
582,927
-
-
582,927
$754,694
At December 31, 2015, we had cash and net investments of $753 million, including $306 million of cash and
short term treasuries, $219 million of net marketable securities, including the shares of GAMCO stock and $228 million
invested in affiliated and third party funds and partnerships. We have a GAAP basis book value of $29.54 per share at
December 31, 2015.
With respect to the $250 million due to us from GAMCO, we stress that this amount is not included in our book
value for GAAP purposes, as GAAP requires the note to be accounted for as a contra-equity item instead of an asset
until the note is paid down with cash. As such, management believes it is useful to consider Adjusted Economic Book
Value (“AEBV”), a non-GAAP measure, when reviewing our financial condition. AEBV is calculated as GAAP book value
plus the value of the GAMCO Note. AEBV and AEBV per share were $1.002 billion and $39.37 per share respectively 1.
Our financial resources underpin our flexibility to pursue strategic objectives that may include acquisitions, lift-
outs, seeding new investment strategies, and co-investing, as well as shareholder compensation in the form of share
repurchase and dividends. Our primary goal is to use our liquid resources to opportunistically and strategically grow
book value.
Assets Under Management
(In millions)
Event Merger Arb . . . . . . . . . . . . . . . . . . . .
Event-Driven Value . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total AUM . . . . . . . . . . . . . . . . . . . . . . . . .
(a) Compound annual growth rate.
(b) Includes $89.3 million of proprietary capital.
2011
$513
132
65
$710
Year Ended December 31,
2013
$691
140
76
$907
2014
$796
167
77
$1,040
2012
$721
124
75
$920
2015
$869
145
66
$1,080
(b)
CAGR (a)
2015/2011
14.1%
2.4
0.4
11.1%
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See Notes on Non-GAAP Financial Measures on page 3.
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GAMCO Investors, Inc.
Quarterly Financial Information
Quarterly financial information for the years ended December 31, 2015 and 2014 is presented below.
(In thousands, except per share data)
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income (loss) attributable to Associated
Capital Group, Inc.'s shareholders . . . . . . . . . . . . . . . . . . . .
Net income (loss) attributable to Associated
Capital Group, Inc.'s shareholders per share:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income (loss) attributable to Associated
Capital Group, Inc.'s shareholders . . . . . . . . . . . . . . . . . . . . .
Net income (loss) attributable to Associated
Capital Group, Inc.'s shareholders per share:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1st
2nd
2015
3rd
4th
Total
$4,567
(3,880)
$4,590
(3,468)
$4,690
(1,081)
$8,995
(5,883)
$22,842
(14,312)
2,385
855
(7,540)
4,189
(111)
0.09
$0.09
0.03
$0.03
(0.30)
$(0.30)
0.17
$0.17
-
-
1st
2nd
$3,904
(3,278)
$4,553
(3,645)
2014
3rd
$4,895
(748)
4th
Total
$7,677
(2,253)
$21,029
(9,924)
422
4,015
(3,783)
2,346
3,000
0.02
$0.02
0.16
$0.16
(0.15)
$(0.15)
0.09
$0.09
0.12
$0.12
The Company’s financial information for the eleven months ended November 30, 2015 and year ended December
31, 2014 were derived from the combined consolidated financial statements and accounting records of GAMCO and
are presented as carve-out financial statements as the Company was not a standalone public company prior to the
Spin-off. For the periods prior to the spin-off of the Company from GAMCO, the quarterly financial information includes
allocations from GAMCO. These allocations may not be reflective of the actual level of assets, liabilities, income or
costs which would have been incurred had the Company operated as a separate legal entity apart from GAMCO. The
Company’s financial information for the one month ended December 31, 2015 is presented based on our actual results as
a stand-alone public company subsequent to our Spin-off.
Notes of Non-GAAP Financial Measures
Adjusted Economic Book Value (AEBV) is used by management for purposes of evaluating our financial condition.
We believe this measure is useful in illustrating a value of the Company inclusive of the $250 million GAMCO Note.
Reconciliation of Total Equity to Adjusted Economic Book Value
Total equity as reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Add: GAMCO Note . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjusted Economic book value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total
$ 751,549
250,000
$1,001,549
Per Share
$29.54
9.83
$39.37
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GAMCO Investors, Inc.
Board of Directors
Richard L. Bready
Former Chairman & Chief Executive Officer
Nortek, Inc.
Daniel R. Lee
Chief Executive Officer and Director
Full House Resorts, Inc.
Marc Gabelli
President
Associated Capital Group, Inc.
Co-Chairman,
Gabelli Securities, Inc.
Mario J. Gabelli
Chairman and Chief Executive Officer
Associated Capital Group, Inc.
Bruce M. Lisman
Former Chairman of JP Morgan’s Global
Equity Division
Salvatore F. Sodano
Chairman and Chief Executive Officer
Worldwide Capital Advisory Partners, LLC.
Former Chairman & CEO of the American
Stock Exchange
Former Vice Chairman of the NASD
Officers
Mario J. Gabelli, CFA
Executive Chairman and Chief Executive Officer
Marc Gabelli
President
Kevin Handwerker
Executive Vice President, General Counsel
and Secretary
Patrick Dennis
Executive Vice President and
Chief Financial Officer
Corporate and Shareholder Information
Investor Relations
For our 10-K and other shareholder information, as well as
information on our products and services, visit our website at
www.associated-capital-group.com or write to:
One Corporate Center
Rye, New York 10580-1422
914-921-8381
email: investor@associated-capital-group.com
Transfer Agent
Computershare
250 Royall Street
Canton, MA 02021
(781) 575-2000
Trading Information
New York Stock Exchange
Class A Common Stock
Symbol - AC
Website
www.associated-capital-group.com
Investment Services Information
Alternative Investments
Contact: Michael M. Gabelli
Managing Director and President
914-921-5135
email: alternatives@gabelli.com
Institutional Research
Contact: C.V. McGinity
President
914-921-7732
email: CMcGinity@gabelli.com
Annual Meeting
Our 2016 Annual Meeting of Shareholders
will be held at 1:00 p.m. on May 3, 2016 at the
Indian Harbor Yacht Club, 710 Steamboat Road
Greenwich, CT 06830
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GAMCO Investors, Inc.
Our teammates ringing the bell on the New York Stock Exchange celebrating our listing
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GAMCO Investors, Inc.
One Corporate Center, Rye, New York 10580-1422
www.associated-capital-group.com
203-629-9595 | info@associated-capital-group.com
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