Gabelli Global Deal Fund Bets on Mergers and Takeovers (GDL)

"Global takeovers have totaled $1.29 trillion so far this year, up +23% from the same time last year. That's great news for funds that profit from Wall Street's deal making," says income specialist Amy Calistri. The editor of The Daily Paycheck explains, "The Gabelli Global Deal Fund GDL is a closed-end fund that invests in securities of companies involved in announced mergers, takeovers and leveraged buyouts. And the fund offers a rich 9.0% yield. "During the recession, smart companies battened down the hatches, cut costs and paid down debt. As a result, their balance sheets are healthy. Overall, $3 trillion of cash is sitting on company balance sheets. "One way to use that cash is to buy existing businesses with strong growth potential. That appears the choice more and more of these cash cows are making. "In 2010, IBM IBM alone has snapped up more than 10 companies. The merger-mania trend is evident in almost every sector, including pharmaceuticals, banks, airlines, and commodities. Continue reading the article.