UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

The Gabelli Global Deal Fund

(Exact name of registrant as specified in charter)

One Corporate Center
Rye, New York 10580-1422

(Address of principal executive offices) (Zip code)

Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422

(Name and address of agent for service)

Registrant’s telephone number, including area code: 1-800-422-3554

Date of fiscal year end: December 31

Date of reporting period: September 30, 2010

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

Item 1. Schedule of Investments.

The Schedule(s) of Investments is attached herewith.

(a)		Returns represent past performance and do not guarantee future results. Investment returns and the principal value of an investment will fluctuate. When shares are sold, they may be worth more or less than their original cost. Current performance may be lower or higher than the performance data presented. Visit www.gabelli.com for performance information as of the most recent month end. Performance returns for periods of less than one year are not annualized. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The 3 Month U.S. Treasury Bill Index is comprised of a single issue purchased at the beginning of the month and held for a full month. At the end of the month, that issue is sold and rolled into the outstanding Treasury Bill that matures closest to, but not beyond three months from the re-balancing date. To qualify for selection, an issue must have settled on or before the re-balancing (month end) date. Dividends are considered reinvested except for the 3 Month U.S. Treasury Bill Index. You cannot invest directly in an index.
(b)		Total returns and average annual returns reflect changes in the NAV per share and reinvestment of distributions at NAV on the ex-dividend date and are net of expenses. Since inception return is based on an initial NAV of $19.06.
(c)		Total returns and average annual returns reflect changes in closing market values on the New York Stock Exchange and reinvestment of distributions. Since inception return is based on an initial offering price of $20.00.

 

THE GABELLI GLOBAL DEAL FUND
SCHEDULE OF INVESTMENTS
September 30, 2010 (Unaudited)

						Market
Shares						Value
				COMMON STOCKS — 58.8%
				Aerospace and Defense — 0.0%
	75,000			The Allied Defense Group Inc.†		$	180,750
				Airlines — 0.2%
	160,000			ExpressJet Holdings Inc.†			1,067,200
				Automotive Rental/Equipment — 0.2%
	19,400			Dollar Thrifty Automotive Group Inc.†			972,716
				Automotive: Parts and Accessories — 0.3%
	52,000			ATC Technology Corp.†			1,286,480
				Business Services — 5.4%
	8,000			Acxiom Corp.†			126,880
	246,819			ArcSight Inc.†			10,751,436
	380,000			Bowne & Co. Inc.			4,305,400
	90,000			Clear Channel Outdoor Holdings Inc., Cl. A†			1,028,700
	160,000			DataCash Group plc			902,322
	169,800			Diamond Management & Technology Consultants Inc.			2,122,500
	70,000			Diebold Inc.			2,176,300
	1,000			GTSI Corp.†			7,050
	380,000			Misys plc†			1,704,860
							23,125,448
				Cable and Satellite — 0.2%
	60,000			British Sky Broadcasting Group plc			664,959
	25,000			Zon Multimedia Servicos de Telecomunicacoes e Multimedia SGPS SA			98,836
							763,795
				Commercial Services — 1.2%
	160,000			Pactiv Corp.†			5,276,800
				Communications Equipment — 3.8%
	1,300,000			ADC Telecommunications Inc.†			16,471,000
				Computer Hardware — 2.9%
	423,400			Netezza Corp.†			11,410,630
	25,000			SanDisk Corp.†			916,250
							12,326,880
				Computer Software and Services — 7.8%
	30,000			Dimension Data Holdings plc			56,364
	1,000			Internet Brands Inc., Cl. A†			13,280
	440,000			McAfee Inc.†			20,794,400
	18,000			Mentor Graphics Corp.†			190,260
	5,000			Novell Inc.†			29,850
	20,000			Phoenix Technologies Ltd.†			78,000
	5,000			Salary.com Inc.†			20,325
	21,600			Soapstone Networks Inc.			313
	535,335			Unica Corp.†			11,231,328
	83,000			Yahoo! Inc.†			1,176,110
							33,590,230
				Consumer Products — 0.3%
	10,000			Alberto-Culver Co.			376,500
	30,000			Harman International Industries Inc.†			1,002,300
	8,000			Heelys Inc.†			19,200
							1,398,000
				Diversified Industrial — 2.5%
	500			Ginger†			19,086
	1,000			Munters AB			11,312
	449,000			Myers Industries Inc.			3,856,910
	350,000			Tomkins plc, ADR†			7,066,500
							10,953,808
				Educational Services — 0.0%
	1,000			Corinthian Colleges Inc.†			7,020
				Electronics — 2.5%
	211,700			Alliance Semiconductor Corp.			55,042
	106,000			Bel Fuse Inc., Cl. A			2,218,580
	108,000			Cogent Inc.†			1,149,120
	30,000			ICx Technologies Inc.†			226,500
	25,000			International Rectifier Corp.†			527,250
	22,000			Keithley Instruments Inc.			473,220
	370,000			L-1 Identity Solutions Inc.†			4,340,100
	88,400			Nu Horizons Electronics Corp.†			614,380
	155,000			Sanyo Electric Co., Ltd.†			256,229
	4,300			Smartrac NV†			116,536
	69,700			Zygo Corp.†			683,060
							10,660,017
				Energy and Utilities — 4.9%
	160,000			Allegheny Energy Inc.			3,923,200
	40,000			Allis-Chalmers Energy Inc.†			166,800
	30,000			Constellation Energy Group Inc.			967,200
	2,000			Covanta Holding Corp.			31,500
	30,000			Dana Petroleum plc†			847,340
	30,000			Dart Energy Ltd.†			34,216
	420,000			Dragon Oil plc†			2,904,662
	50,000			Dynegy Inc.†			243,500
	270,000			Endesa SA			7,227,213
	6,090			Maine & Maritimes Corp.			273,441
	60,000			NorthWestern Corp.			1,710,000
	100,000			NRG Energy Inc.†			2,082,000
	1,000			Origin Energy Ltd.			15,320
	2,000			Prosafe Production Public Ltd.†			5,067
	23,885			SandRidge Energy Inc.†			135,667
	100,000			UTS Energy Corp.†			349,888
	100,000			WesternZagros Resources Ltd.†			36,933
							20,953,947

See accompanying notes to schedule of investments.

THE GABELLI GLOBAL DEAL FUND
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2010 (Unaudited)

						Market
Shares						Value
				COMMON STOCKS (Continued)
				Entertainment — 0.7%
	6,000			Cedar Fair LP		$	79,500
	275,000			Take-Two Interactive Software Inc.†			2,788,500
							2,868,000
				Equipment and Supplies — 0.0%
	3,000			The Middleby Corp.†			190,170
				Financial Services — 6.7%
	50,000			American Physicians Capital Inc.			2,073,000
	950,000			AmeriCredit Corp.†			23,237,000
	2,000			Deutsche Postbank AG†			68,067
	50,000			GLG Partners Inc.†			225,000
	17,200			NYMAGIC Inc.			441,524
	210,000			SLM Corp.†			2,425,500
	9,500			The Student Loan Corp.			282,150
	423			Wesco Financial Corp.			151,497
							28,903,738
				Food and Beverage — 0.0%
	175,000			China Huiyuan Juice Group Ltd.			122,473
	1,000			Menu Foods Income Fund†			4,665
	1,000			Reddy Ice Holdings Inc.†			2,280
							129,418
				Health Care — 11.2%
	4,000			Abraxis BioScience Inc.†			309,360
	27,000			Alcon Inc.			4,503,330
	16,000			ArthroCare Corp.†			434,880
	3,000			Biogen Idec Inc.†			168,360
	35,000			Crucell NV†			1,168,989
	108,400			Crucell NV, ADR†			3,605,384
	2,000			Enzon Pharmaceuticals Inc.†			22,500
	30,000			Genzyme Corp.†			2,123,700
	700,200			Health Grades Inc.†			5,734,638
	44,500			Indevus Pharmaceuticals Inc., Escrow† (a)			48,950
	8,000			Life Technologies Corp.†			373,520
	1,000			Movetis NV†			25,888
	60,000			NBTY Inc.†			3,298,800
	300,000			Osteotech Inc.†			1,938,000
	59,000			OTIX Global Inc.†			609,470
	2,000			Prospect Medical Holdings Inc.†			17,000
	50,000			Psychiatric Solutions Inc.†			1,677,500
	788,965			Res-Care Inc.†			10,469,566
	33,000			Talecris Biotherapeutics Holdings Corp.†			755,040
	20,000			Trimeris Inc.†			50,400
	1,781			Valeant Pharmaceuticals International Inc.			44,612
	219,000			WuXi PharmaTech (Cayman) Inc., ADR†			3,758,040
	711,651			Zymogenetics Inc.†			6,938,597
							48,076,524
				Health Care Providers and Services — 0.1%
	94,100			NightHawk Radiology Holdings Inc.†			600,358
				Hotels and Gaming — 0.0%
	6,000			MGM Resorts International†			67,680
				Machinery — 0.2%
	40,000			Sauer-Danfoss Inc.†			851,600
				Materials — 0.0%
	6,000			CIMPOR — Cimentos de Portugal SGPS SA			38,624
	5,000			Intertape Polymer Group Inc.†			7,550
							46,174
				Media — 0.8%
	2,000			Alloy Inc.†			19,420
	68,000			APN News & Media Ltd.			131,451
	130,000			Cablevision Systems Corp., Cl. A			3,404,700
							3,555,571
				Metals and Mining — 0.5%
	250,000			Andean Resources Ltd.†			1,518,612
	28,000			Camino Minerals Corp.†			10,341
	20,000			Forsys Metals Corp.†			38,876
	3,556			Kinross Gold Corp.			66,703
	5,000			Lonmin plc†			131,091
	9,000			Xstrata plc			172,201
							1,937,824
				Paper and Forest Products — 0.6%
	200,889			Cellu Tissue Holdings Inc.†			2,396,606
				Publishing — 0.0%
	136,000			SCMP Group Ltd.			24,540
				Real Estate — 0.0%
	5,000			ECO Business-Immobilien AG†			48,736
				Restaurants — 1.7%
	300,000			Burger King Holdings Inc.			7,164,000
	1,000			Landry’s Restaurants Inc.†			24,490
							7,188,490
				Retail — 0.9%
	97,000			Casey’s General Stores Inc.			4,049,750
	2,000			Massmart Holdings Ltd.			42,409
							4,092,159
				Semiconductors — 0.1%
	35,000			Emulex Corp.†			365,400
				Specialty Chemicals — 0.7%
	5,200			A. Schulman Inc.			104,780
	3,000			Airgas Inc.			203,850
	34,000			Ashland Inc.			1,658,180
	6,000			Potash Corp. of Saskatchewan Inc.			864,240
							2,831,050

See accompanying notes to schedule of investments.

THE GABELLI GLOBAL DEAL FUND
SCHEDULE OF INVESTMENTS (Continued)
September 30, 2010 (Unaudited)

						Market
Shares						Value
				COMMON STOCKS (Continued)
				Telecommunications — 2.4%
	700,000			Asia Satellite Telecommunications Holdings Ltd.		$	1,263,074
	52,000			BCE Inc.			1,690,000
	267,000			Fastweb SpA†			6,526,311
	65,000			Portugal Telecom SGPS SA			867,506
							10,346,891
				TOTAL COMMON STOCKS			253,555,020
				RIGHTS — 0.0%
				Health Care — 0.0%
	6,000			Fresenius Kabi Pharmaceuticals Holding Inc., CVR, expire 12/31/10†			210
				WARRANTS — 0.0%
				Metals and Mining — 0.0%
	220			Kinross Gold Corp. Cl. D, expire 09/17/14†			941

Principal
Amount
				CONVERTIBLE CORPORATE BONDS — 1.0%
				Aerospace — 0.1%
$	500,000			GenCorp Inc., Sub. Deb. Cv., 4.063%, 12/31/39 (b)			453,125
				Computer Hardware — 0.9%
	4,000,000			SanDisk Corp., Cv., 1.000%, 05/15/13			3,690,000
				TOTAL CONVERTIBLE CORPORATE BONDS			4,143,125
				CORPORATE BONDS — 0.1%
				Diversified Industrial — 0.0%
	150,000			Park-Ohio Industries Inc., Sub. Deb., 8.375%, 11/15/14			147,000
				Energy and Utilities — 0.1%
	600,000			Texas Competitive Electric Holdings Co. LLC, Ser. B (STEP), 10.250%, 11/01/15			396,000
				TOTAL CORPORATE BONDS			543,000
				U.S. GOVERNMENT OBLIGATIONS — 40.1%
	172,985,000			U.S. Treasury Bills, 0.060% to 0.220%††, 10/07/10 to 03/17/11			172,923,549
TOTAL INVESTMENTS — 100.0% (Cost $438,782,283)						$	431,165,845
				Aggregate tax cost		$	440,546,909
				Gross unrealized appreciation		$	10,604,651
				Gross unrealized depreciation			(19,985,715	)
				Net unrealized appreciation/depreciation		$	(9,381,064	)

Principal

Settlement

Unrealized

Amount

Date

Depreciation

FORWARD FOREIGN EXCHANGE CONTRACTS — 0.0%

$

2,762,500

(c)

Deliver British Pound in exchange for USD 4,339,350(d)

10/08/10

$

(44,989

)

		% of
		Market				Market
Geographic Diversification		Value				Value
North America			89.3	%		$	385,218,089
Europe			8.3				35,871,665
Asia/Pacific			1.6				6,867,725
Africa/Middle East			0.7				2,909,728
Japan			0.1				256,229
South Africa			0.0				42,409
Total Investments			100.0	%		$	431,165,845

See accompanying notes to schedule of investments.

THE GABELLI GLOBAL DEAL FUND (the “Fund”)

     The Fund’s financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), which may require the use of management estimates and assumptions. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.

Security Valuation. Portfolio securities listed or traded on a nationally recognized securities exchange or traded in the U.S. over-the-counter market for which market quotations are readily available are valued at the last quoted sale price or a market’s official closing price as of the close of business on the day the securities are being valued. If there were no sales that day, the security is valued at the average of the closing bid and asked prices or, if there were no asked prices quoted on that day, then the security is valued at the closing bid price on that day. If no bid or asked prices are quoted on such day, the security is valued at the most recently available price or, if the Board of Trustees (the “Board”) so determines, by such other method as the Board shall determine in good faith to reflect its fair market value. Portfolio securities traded on more than one national securities exchange or market are valued according to the broadest and most representative market, as determined by Gabelli Funds, LLC (the “Adviser”).

     Portfolio securities primarily traded on a foreign market are generally valued at the preceding closing values of such securities on the relevant market, but may be fair valued pursuant to procedures established by the Board if market conditions change significantly after the close of the foreign market but prior to the close of business on the day the securities are being valued. Debt instruments with remaining maturities of sixty days or less that are not credit impaired are valued at amortized cost, unless the Board determines such amount does not reflect the securities’ fair value, in which case these securities will be fair valued as determined by the Board. Debt instruments having a maturity greater than sixty days for which market quotations are readily available are valued at the average of the latest bid and asked prices. If there were no asked prices quoted on such day, the security is valued using the closing bid price. U.S. government obligations with maturities greater than sixty days are normally valued using a model that incorporates market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, and reference data. Certain securities are valued principally using dealer quotations. Futures contracts are valued at the closing settlement price of the exchange or board of trade on which the applicable contract is traded.

     Securities and assets for which market quotations are not readily available are fair valued as determined by the Board. Fair valuation methodologies and procedures may include, but are not limited to: analysis and review of available financial and non-financial information about the company; comparisons with the valuation and changes in valuation of similar securities, including a comparison of foreign securities with the equivalent U.S. dollar value ADR securities at the close of the U.S. exchange; and evaluation of any other information that could be indicative of the value of the security.

     The inputs and valuation techniques used to measure fair value of the Fund’s investments are summarized into three levels as described in the hierarchy below:

	•		Level 1 — quoted prices in active markets for identical securities;
	•		Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.); and
	•		Level 3 — significant unobservable inputs (including the Fund’s determinations as to the fair value of investments).

THE GABELLI GLOBAL DEAL FUND
NOTES TO SCHEDULE OF INVESTMENTS (Continued) (Unaudited)

     A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually and in aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of the Fund’s investments in securities and other financial instruments by inputs used to value the Fund’s investments as of September 30, 2010 is as follows:

		Valuation Inputs
		Level 1				Level 2				Level 3				Total
		Quoted				Other Significant				Significant				Market Value
		Prices				Observable Inputs				Unobservable Inputs				at 9/30/10
INVESTMENTS IN SECURITIES:
ASSETS (Market Value):
Common Stocks:
Diversified Industrial		$	3,887,308			$	7,066,500				—			$	10,953,808
Health Care			48,027,574				—			$	48,950				48,076,524
Other Industries (a)			194,524,688				—				—				194,524,688
Total Common Stocks			246,439,570				7,066,500				48,950				253,555,020
Rights (a)			210				—				—				210
Warrants (a)			941				—				—				941
Convertible Corporate Bonds			—				4,143,125				—				4,143,125
Corporate Bonds			—				543,000				—				543,000
U.S. Government Obligations			—				172,923,549				—				172,923,549
TOTAL INVESTMENTS IN SECURITIES — ASSETS		$	246,440,721			$	184,676,174			$	48,950			$	431,165,845
OTHER FINANCIAL INSTRUMENTS:
ASSETS (Unrealized Appreciation):*
EQUITY CONTRACTS
Contract for Difference Swap Agreement		$	—			$	192			$	—			$	192
LIABILITIES (Unrealized Depreciation):*
EQUITY CONTRACTS
Contract for Difference Swap Agreements		$	—			$	(1,940	)		$	—			$	(1,940	)
FOREIGN CURRENCY EXCHANGE CONTRACTS
Forward Foreign Exchange Contracts			—				(44,989	)			—				(44,989	)
TOTAL OTHER FINANCIAL INSTRUMENTS		$	—			$	(46,737	)		$	—			$	(46,737	)

(a)		Please refer to the Schedule of Investments (“SOI”) for the industry classifications of these portfolio holdings.
*		Other financial instruments are derivatives not reflected in the SOI, such as futures, forwards, and swaps, which are valued at the unrealized appreciation/depreciation of the instrument.

     The Fund did not have significant transfers between Level 1 and Level 2 during the period ended September 30, 2010.

THE GABELLI GLOBAL DEAL FUND
NOTES TO SCHEDULE OF INVESTMENTS (Continued) (Unaudited)

     The following table reconciles Level 3 investments for which significant unobservable inputs were used to determine fair value:

																																		Net change
																																		in unrealized
																																		appreciation/
																																		depreciation
														Change in																				during the
		Balance				Accrued				Realized				unrealized				Net				Transfers				Transfers				Balance				period on Level 3
		as of				discounts/				gain/				appreciation/				purchases/				into				out of				as of				investments held
		12/31/09				(premiums)				(loss)				depreciation				(sales)				Level 3†				Level 3†				9/30/10				at 9/30/10
INVESTMENTS IN SECURITIES:
ASSETS (Market Value):
Common Stocks:
Health Care		$	48,950			$	—			$	—			$	—			$	—			$	—			$	—			$	48,950			$	—
TOTAL INVESTMENTS IN SECURITIES		$	48,950			$	—			$	—			$	—			$	—			$	—			$	—			$	48,950			$	—

†		The Fund’s policy is to recognize transfers into and transfers out of Level 3 as of the beginning of the reporting period.

     In January 2010, the Financial Accounting Standards Board (“FASB”) issued amended guidance to improve disclosure about fair value measurements which requires additional disclosures about transfers between Levels 1 and 2 and separate disclosures about purchases, sales, issuances, and settlements in the reconciliation of fair value measurements using significant unobservable inputs (Level 3). FASB also clarified existing disclosure requirements relating to the levels of disaggregation of fair value measurement and inputs and valuation techniques used to measure fair value. The amended guidance is effective for financial statements for fiscal years beginning after December 15, 2009 and interim periods within those fiscal years. Management has adopted the amended guidance and determined that there was no material impact to the Fund’s financial statements except for additional disclosures made in the notes. Disclosures about purchases, sales, issuances, and settlements in the rollforward of activity in Level 3 fair value measurements are effective for fiscal years beginning after December 15, 2010 and for interim periods within those fiscal years. Management is currently evaluating the impact of the additional disclosure requirements on the Fund’s financial statements.

Foreign Currency Translations. The books and records of the Fund are maintained in U.S. dollars. Foreign currencies, investments, and other assets and liabilities are translated into U.S. dollars at the current exchange rates. Purchases and sales of investment securities, income, and expenses are translated at the exchange rate prevailing on the respective dates of such transactions. Unrealized gains and losses that result from changes in foreign exchange rates and/or changes in market prices of securities have been included in unrealized appreciation/depreciation on investments and foreign currency translations. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date on investment securities transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of the Fund and the amounts actually received. The portion of foreign currency gains and losses related to fluctuation in exchange rates between the initial purchase trade date and subsequent sale trade date is included in realized gain/loss on investments.

Foreign Securities. The Fund may directly purchase securities of foreign issuers. Investing in securities of foreign issuers involves special risks not typically associated with investing in securities of U.S. issuers. The risks include possible revaluation of currencies, the inability to repatriate funds, less complete financial information about companies, and possible future adverse political and economic developments. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than those of securities of comparable U.S. issuers.

THE GABELLI GLOBAL DEAL FUND

Foreign Taxes. The Fund may be subject to foreign taxes on income, gains on investments, or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.

Derivative Financial Instruments. The Fund may engage in various portfolio investment strategies by investing in a number of derivative financial instruments for the purpose of increasing the income of the Fund, hedging against changes in the value of its portfolio securities and in the value of securities it intends to purchase, or hedging against a specific transaction with respect to either the currency in which the transaction is denominated or another currency. Investing in certain derivative financial instruments, including participation in the options, futures, or swap markets, entails certain execution, liquidity, hedging, tax, and securities, interest, credit, or currency market risks. Losses may arise if the Adviser’s prediction of movements in the direction of the securities, foreign currency, and interest rate markets is inaccurate. Losses may also arise if the counterparty does not perform its duties under a contract, or that, in the event of default, the Fund may be delayed in or prevented from obtaining payments or other contractual remedies owed to it under derivative contracts. The creditworthiness of the counterparties is closely monitored in order to minimize these risks. Participation in derivative transactions involves investment risks, transaction costs, and potential losses to which the Fund would not be subject absent the use of these strategies. The consequences of these risks, transaction costs, and losses may have a negative impact on the Fund’s ability to pay distributions.

     The Fund’s derivative contracts held at September 30, 2010, if any, are not accounted for as hedging instruments under GAAP.

     Swap Agreements. The Fund may enter into equity and contract for difference swap transactions for the purpose of increasing the income of the Fund. The use of swaps is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio security transactions. In a swap, a set of future cash flows is exchanged between two counterparties. One of these cash flow streams will typically be based on a reference interest rate combined with the performance of a notional value of shares of a stock. The other will be based on the performance of the shares of a stock. Depending on the general state of short-term interest rates and the returns on the Fund’s portfolio securities at the time a swap transaction reaches its scheduled termination date, there is a risk that the Fund will not be able to obtain a replacement transaction or that the terms of the replacement will not be as favorable as on the expiring transaction.

     The Fund has entered into equity contract for difference swap agreements with The Goldman Sachs Group, Inc. Details of the swaps at September 30, 2010 are as follows:

								Net Unrealized
Notional		Equity Security		Interest Rate/		Termination		Appreciation/
Amount		Received		Equity Security Paid		Date		Depreciation
		Market Value Appreciation on:		One month LIBOR plus 90 bps plus Market Value Depreciation on:
$221,787 (100,000 Shares)		Gulf Keystone Petroleum Ltd.		Gulf Keystone Petroleum Ltd.		6/27/11		$	(1,940	)
5,943 (1,000 Shares)		J Sainsbury plc		J Sainsbury plc		6/27/11			192
								$	(1,748	)

     The Fund’s volume of activity in equity contract for difference swap agreements during the period ended September 30, 2010 had an average monthly notional amount of approximately $1,398,360.

THE GABELLI GLOBAL DEAL FUND
NOTES TO SCHEDULE OF INVESTMENTS (Continued) (Unaudited)

     Futures Contracts. The Fund may engage in futures contracts for the purpose of hedging against changes in the value of its portfolio securities and in the value of securities it intends to purchase. Upon entering into a futures contract, the Fund is required to deposit with the broker an amount of cash or cash equivalents equal to a certain percentage of the contract amount. This is known as the “initial margin.” Subsequent payments (“variation margin”) are made or received by the Fund each day, depending on the daily fluctuations in the value of the contract, and are included in unrealized appreciation/depreciation on futures contracts. The Fund recognizes a realized gain or loss when the contract is closed.

     There are several risks in connection with the use of futures contracts as a hedging instrument. The change in value of futures contracts primarily corresponds with the value of their underlying instruments, which may not correlate with the change in value of the hedged investments. In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid secondary market. During the period ended September 30, 2010, the Fund had no investments in futures contracts.

     Forward Foreign Exchange Contracts. The Fund may engage in forward foreign exchange contracts for the purpose of hedging a specific transaction with respect to either the currency in which the transaction is denominated or another currency as deemed appropriate by the Adviser. Forward foreign exchange contracts are valued at the forward rate and are marked-to-market daily. The change in market value is included in unrealized appreciation/depreciation on foreign currency translations. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the of the contract at the time it was opened and the value at the time it was closed.

     The use of forward foreign exchange contracts does not eliminate fluctuations in the underlying prices of the Fund’s portfolio securities, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign exchange contracts limit the risk of loss due to a decline in the value of the hedged currency, they also limit any potential gain that might result should the value of the currency increase. In addition, the Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts. Forward foreign exchange contracts at September 30, 2010 are presented within the Schedule of Investments. The Fund’s volume of activity in forward foreign currency contracts during the period ended September 30, 2010 had an average monthly value of approximately $4,499.

     The following table summarizes the net unrealized appreciation/depreciation of derivatives held at September 30, 2010 by primary risk exposure:

		Net Unrealized
		Appreciation/(Depreciation) at
		September 30, 2010
Asset Derivatives:
Equity Contracts		$	192
Liability Derivatives:
Equity Contracts		$	(1,940	)
Foreign Currency Exchange Contracts			(44,989	)
Total		$	(46,929	)

THE GABELLI GLOBAL DEAL FUND
NOTES TO SCHEDULE OF INVESTMENTS (Continued) (Unaudited)

Tax Information. The Fund intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended.

     Under the current tax law, capital losses related to securities and foreign currency realized after October 31 and prior to the Fund’s year end may be treated as occurring on the first day of the following year. For the year ended December 31, 2009, the Fund deferred capital losses of $1,270,277 and currency losses of $59,775.

TRUSTEES AND OFFICERS
THE GABELLI GLOBAL DEAL FUND
One Corporate Center, Rye, NY 10580-1422

Trustees

Mario J. Gabelli, CFA

Chairman & Chief Executive Officer,

GAMCO Investors, Inc.

Anthony J. Colavita

President,

Anthony J. Colavita, P.C.

James P. Conn

Former Managing Director &

Chief Investment Officer,

Financial Security Assurance Holdings Ltd.

Clarence A. Davis

Former Chief Executive Officer,

Nestor, Inc.

Mario d’Urso

Former Italian Senator

Arthur V. Ferrara

Former Chairman & Chief Executive Officer,

Guardian Life Insurance Company of America

Michael J. Melarkey

Attorney-at-Law,

Avansino, Melarkey, Knobel & Mulligan

Edward T. Tokar

Senior Managing Director,

Beacon Trust Company

Salvatore J. Zizza

Chairman, Zizza & Co., Ltd.

Officers

Bruce N. Alpert

President

Carter W. Austin

Vice President

Peter D. Goldstein

Chief Compliance Officer

Agnes Mullady

Treasurer & Secretary

Laurissa M. Martire

Vice President

Delian Naydenov

Assistant Vice President & Ombudsman

David I. Schachter

Vice President

Investment Adviser

Gabelli Funds, LLC

One Corporate Center

Rye, New York 10580-1422

Custodian

The Bank of New York Mellon

Counsel

Skadden, Arps, Slate, Meagher & Flom LLP

Transfer Agent and Registrar

American Stock Transfer and Trust Company

Stock Exchange Listing

						8.50%
		Common				Preferred
NYSE-Symbol:		GDL				GDL PrA
Shares Outstanding:			21,177,810				1,920,242

The Net Asset Value per share appears in the Publicly Traded Funds column, under the heading “Specialized Equity Funds,” in Monday’s The Wall Street Journal. It is also listed in Barron’s Mutual Funds/Closed End Funds section under the heading “Specialized Equity Funds.”

The Net Asset Value per share may be obtained each day by calling (914) 921-5070 or visiting www.gabelli.com.

Item 2. Controls and Procedures.

	(a)		The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).
	(b)		There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) The Gabelli Global Deal Fund

By (Signature and Title)*		/s/ Bruce N. Alpert   Bruce N. Alpert, Principal Executive Officer

Date 11/26/10

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)*		/s/ Bruce N. Alpert   Bruce N. Alpert, Principal Executive Officer

Date 11/26/10

By (Signature and Title)*		/s/ Agnes Mullady   Agnes Mullady, Principal Financial Officer and Treasurer

Date 11/26/10