The GDL Fund Declares $0.12 Cash Distribution to Shareholders Payable March 2025

The GDL Fund announced a $0.12 cash distribution for shareholders, payable March 24, 2025, under varying conditions.

Quiver AI Summary

The GDL Fund's Board of Trustees has announced a cash distribution of $0.12 per share, set to be paid on March 24, 2025, to shareholders who are on record by March 17, 2025. The Fund, which has $167 million in total net assets and is managed by Gabelli Funds, LLC, will continuously evaluate its distribution levels based on its net asset value and market conditions. It distributes realized long-term capital gains annually and quarterly taxable income to shareholders, though portions of these distributions may be deemed returns of capital. Importantly, the current distribution for 2025 is considered to be entirely from paid-in capital, and shareholders will receive details about the tax implications of their distributions in early 2026. Investors are encouraged to thoroughly review the Fund's investment strategy and risks before deciding to invest.

Potential Positives

• The Board of Trustees declared a cash distribution of $0.12 per share, indicating ongoing financial returns to shareholders.
• The Fund maintains a diverse asset mix and employs strategies such as merger arbitrage, which could enhance its flexibility in managing investments.
• The distribution may include a return of capital, which could provide tax advantages for shareholders.
• The GDL Fund is positioned as a diversified investment company with a focus on achieving absolute returns, adding appeal for risk-conscious investors.

Potential Negatives

• The announcement that the current distribution is deemed 100% from paid-in capital may raise concerns among investors regarding the Fund's ability to generate sufficient earnings from its investments.
• The press release indicates that future distributions may be modified at any time based on fluctuations in income, creating uncertainty for shareholders about the reliability of cash distributions.
• The Fund's description of potential returns of capital as distributions could potentially mislead investors regarding the actual performance of their investment.

FAQ

What is the cash distribution amount for The GDL Fund in 2025?

The GDL Fund has declared a cash distribution of $0.12 per share for 2025.

When will the cash distribution be payable to shareholders?

The cash distribution will be payable on March 24, 2025, to shareholders of record on March 17, 2025.

What should investors know about the Fund's distribution policy?

Investors should be aware that distributions may fluctuate and could involve a return of capital.

How often does The GDL Fund make distributions?

The GDL Fund makes annual distributions of realized net long-term capital gains and quarterly cash distributions of investment company taxable income.

What components are included in the 2025 distributions?

The 2025 distributions are estimated to be 100% from paid-in capital on a book basis, subject to year-end adjustments.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$GDL Insider Trading Activity

$GDL insiders have traded $GDL stock on the open market 2 times in the past 6 months. Of those trades, 0 have been purchases and 2 have been sales.

Here’s a breakdown of recent trading of $GDL stock by insiders over the last 6 months:

• MARIO J GABELLI has made 0 purchases and 2 sales selling 2,807 shares for an estimated $22,583.

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

$GDL Hedge Fund Activity

We have seen 11 institutional investors add shares of $GDL stock to their portfolio, and 15 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• GABELLI & CO INVESTMENT ADVISERS, INC. removed 1,846,943 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $15,052,585
• KOVITZ INVESTMENT GROUP PARTNERS, LLC added 770,218 shares (+inf%) to their portfolio in Q3 2024, for an estimated $6,277,276
• INDEPENDENT ADVISOR ALLIANCE added 613,445 shares (+inf%) to their portfolio in Q4 2024, for an estimated $4,919,828
• ZAZOVE ASSOCIATES LLC added 200,522 shares (+inf%) to their portfolio in Q3 2024, for an estimated $1,634,254
• GAMCO INVESTORS, INC. ET AL removed 128,151 shares (-28.9%) from their portfolio in Q3 2024, for an estimated $1,044,430
• WELLS FARGO & COMPANY/MN added 29,423 shares (+98.9%) to their portfolio in Q4 2024, for an estimated $235,972
• LANDSCAPE CAPITAL MANAGEMENT, L.L.C. removed 13,410 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $107,548

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Full Release

RYE, N.Y., Feb. 13, 2025 (GLOBE NEWSWIRE) -- The Board of Trustees of The GDL Fund (NYSE:GDL) (the “Fund”) declared a $0.12 per share cash distribution payable on March 24, 2025 to common shareholders of record on March 17, 2025.

The Board of Trustees will continue to monitor the Fund’s distribution level, taking into consideration the Fund’s net asset value and the financial market environment. The distribution rate should not be considered the dividend yield or total return on an investment in the Fund.

The Fund makes annual distributions of its realized net long-term capital gains and quarterly cash distributions of all or a portion of its investment company taxable income to common shareholders. A portion of the distribution may be a return of capital and various factors will affect the level of the Fund’s income, such as its asset mix and use of merger arbitrage strategies. To permit the Fund to maintain more stable distributions, the Fund may distribute more than the entire amount of income earned in a particular period. Because the Fund’s current quarterly distributions are subject to modification by the Board of Trustees at any time and the Fund’s income will fluctuate, there can be no assurance that the Fund will pay distributions at a particular rate or frequency.

If the Fund does not generate sufficient earnings (dividends and interest income, less expenses, and realized net capital gain) equal to or in excess of the aggregate distributions paid by the Fund in a given year, then the amount distributed in excess of the Fund’s earnings would be deemed a return of capital. Since this would be considered a return of a portion of a shareholder’s original investment, it is generally not taxable and would be treated as a reduction in the shareholder’s cost basis.

Short-term capital gains, qualified dividend income, investment company taxable income, and return of capital, if any, will be allocated on a pro-rata basis to all distributions to common shareholders for the year. Long-term capital gains, if any, are distributed in the final distribution of the year. Based on the accounting records of the Fund currently available, the current distribution paid to common shareholders in 2025 would be deemed 100% from paid-in capital on a book basis. This does not represent information for tax reporting purposes. The estimated components of each distribution are updated and provided to shareholders of record in a notice accompanying the distribution and are available on our website (www.gabelli.com). The final determination of the sources of all distributions in 2025 will be made after year end and can vary from the quarterly estimates. Shareholders should not draw any conclusions about the Fund’s investment performance from the amount of the current distribution. All individual shareholders with taxable accounts will receive written notification regarding the components and tax treatment for all 2025 distributions in early 2026 via Form 1099-DIV.

Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. For more information regarding the Fund’s distribution policy and other information about the Fund, call:

Laurissa Martire




(914) 921-5399

About The GDL Fund



The GDL Fund is a diversified, closed-end management investment company with $167 million in total net assets whose investment objective is to achieve absolute returns in various market conditions without excessive risk of capital. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (OTCQX: GAMI).

NYSE – GDL


CUSIP – 361570104

Investor Relations Contact:


Laurissa Martire


(914) 921-5399


lmartire@gabelli.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.