Gabelli Healthcare: Cheap and Safe Closed End Fund

Mar.23.11 | About: The Gabelli (GRX)

Gabelli Healthcare & Wellness is traded on the NYSE under the symbol (NYSE:GRX). They are presently in the midst of a rights offering to their shareholders. GRX has gross assets of $ 102 million dollars of which $ 30 million dollars is funded by preferred stock. It is a bland portfolio in the healthcare and food sectors. It is a fine and long standing investment manager.

Its largest holdings are:

  • Nestle (OTCPK:NSRGY)
  • Sara Lee (SLE)
  • CVS Caremark (NYSE:CVS)
  • Whole Food Markets (WFMI)
  • Johnson & Johnson (NYSE:JNJ)
  • King Pharmaceuticals (KG)
  • Mead Johnson Nutrition (NYSE:MJN)

GRX is in the right sectors and these industries will continue to grow and prosper with our aging population and growing concern for wellness. It does not hurt that GRX sells at a substantial discount from net asset value.

It's not a bad thing to buy and put away. It can be used as a proxy for your investments in these sectors. if the discount ever narrowed, I would be a seller.

Disclosure: I am long GRX.