UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13G/A Under the Securities Exchange Act of 1934 Amendment No. 2 Gladstone Investment Corporation (Name of Issuer) Common Stock Shares (Title of Class of Securities) 376546107 (CUSIP Number) December 31, 2007 (Date of Event Which Requires Filing of this Statement) Check the appropriate box to designate the rule pursuant to which this Schedule is filed: [x] Rule 13d-1(b) [ ] Rule 13d-1(c) [ ] Rule 13d-1(d) *The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page. The information required in the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). CUSIP No. 376546107 1. Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only). Ferris, Baker Watts, Incorporated 2. Check the Appropriate Box if a Member Of a Group (See Instructions) [ ] (a) [X] (b) 3. SEC Use Only 4. Citizenship or Place of Organization Delaware 5. Sole Voting Power: 0 Number of Shares 6. Shared Voting Power: 0 Beneficially Owned by 7. Sole Dispositive Power: 0 Each Reporting Person With 8. Shared Dispositive Power: 680,873 9. Aggregate Amount Beneficially Owned by Each Reporting Person 680,873 10. Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions) 11. Percent of Class Represented by Amount in Row (9) 4.11% 12. Type of Reporting Person (See Instructions) IA Item 1. (a) Issuer: Gladstone Investment Corporation 1. Address: 1521 Westbranch Road Suite 200 McLean, VA 22102 Item 2. (a) Name of Person Filing: Ferris, Baker Watts, Inc. (b) Address of Principal Business Offices: 100 Light Street Baltimore, MD 21202 (c) Citizenship: Delaware Corporation (d) Title of Class of Securities Common stock (e) CUSIP Number: 376546107 Item 3. Ferris, Baker Watts, Inc. is a broker or dealer in accordance with ss.240.13d-1(b)(1)(ii)(A). Item 4. Ownership Please see Items 5 - 9 and 11 for each cover sheet for each filing separately Item 5. Ownership of Five Percent or Less of a Class [X] Item 6. Ownership of More than Five Percent on Behalf of Another Person. Not Applicable Item 7. Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on By the Parent Holding Company Not Applicable Item 8. Identification and Classification of Members of the Group Not Applicable Item 9. Notice of Dissolution of Group Not Applicable Item 10. Certification By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect. SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Date: February 04, 2008 Ferris, Baker Watts, Inc. By: /s/ Dana Gloor -------------------------- Name: Dana Gloor Title: General Counsel