* Q3 EPS $0.53 vs. est $0.48

* Declares $2 special cash dividend

* Investment advisory and incentive fees fall 21 pct

* Total expenses fall 20 pct

Nov 6 (Reuters) - Gamco Investors Inc (GBL.N: Quote, Profile, Research) posted a third-quarter profit that topped market estimates as it cut costs, and the money management firm declared a special cash dividend of $2 a share.

The company, which is run by prominent investor Mario Gabelli, said the special dividend is payable on Dec. 15 to shareholders of record on Dec. 1.

Gamco Investors said third-quarter net income attributable to the company was $14.7 million, or 53 cents a share, compared with $12.0 million, or 43 cents a share, a year earlier.

Analysts on average expected earnings of 48 cents a share, according to Thomson Reuters I/B/E/S.

Total expenses fell 20 percent to $32.1 million, while investment advisory and incentive fees fell 22 percent to $41.0 million.

Total assets under management fell 3 percent to $24.5 billion.

Shares of the Rye, New York-based company closed at $46.83 Friday on the New York Stock Exchange. (Reporting by Jochelle Mendonca in Bangalore; Editing by Anne Pallivathuckal)