Special Opportunities Fund, Inc.
|
||||||||
Portfolio of Investments
|
||||||||
September 30, 2010 (Unaudited)
|
||||||||
Shares
|
Value
|
|||||||
INVESTMENT COMPANIES - 57.59%
|
||||||||
Closed-End Funds - 55.58%
|
||||||||
Adams Express Company
|
276,839
|
$
|
2,757,316
|
|||||
Bancroft Fund, Ltd.
|
29,992
|
491,269
|
||||||
BlackRock California Investment Quality Municipal Trust (d)(i)(j)
|
1,052
|
14,760
|
||||||
Blue Chip Value Fund, Inc. (a)
|
836,893
|
2,761,747
|
||||||
Boulder Growth & Income Fund, Inc. (a)
|
316,668
|
1,969,675
|
||||||
Boulder Total Return Fund, Inc. (a)
|
184,149
|
2,784,333
|
||||||
Claymore Dividend & Income Fund
|
38,069
|
540,199
|
||||||
Cohen & Steers Dividend Majors Fund, Inc.
|
11,040
|
124,973
|
||||||
Cohen & Steers Infrastructure Fund, Inc.
|
27,907
|
444,279
|
||||||
DWS Dreman Value Income Edge Fund, Inc.
|
82,164
|
1,100,998
|
||||||
DWS RREEF Real Estate Fund, Inc. (d)(i)(j)
|
126,913
|
11,803
|
||||||
DWS RREEF Real Estate Fund II, Inc. (d)(i)(j)
|
201,612
|
28,830
|
||||||
DWS RREEF World Real Estate Fund, Inc.
|
151,216
|
2,594,866
|
||||||
First Opportunity Fund, Inc.
|
275,606
|
1,799,707
|
||||||
First Trust/Four Corners Senior Floating Rate Income Fund (j)
|
146,729
|
2,004,318
|
||||||
Gabelli Dividend & Income Trust
|
15,607
|
217,405
|
||||||
Gabelli Global Multimedia Trust, Inc.
|
135,290
|
1,029,557
|
||||||
H&Q Healthcare Investors
|
181,415
|
2,191,493
|
||||||
H&Q Life Sciences Investors
|
50,626
|
485,503
|
||||||
Korea Equity Fund, Inc. (a)
|
68,639
|
758,461
|
||||||
Liberty All-Star Equity Fund, Inc.
|
623,156
|
2,748,118
|
||||||
Liberty All-Star Growth Fund, Inc.
|
375,519
|
1,445,748
|
||||||
LMP Capital and Income Fund, Inc.
|
283,428
|
3,236,748
|
||||||
Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund
|
30,800
|
408,100
|
||||||
Macquarie Global Infrastructure Total Return Fund, Inc.
|
80,776
|
1,334,420
|
||||||
NFJ Dividend Interest & Premium Strategy Fund
|
169,446
|
2,670,469
|
||||||
RiverSource LaSalle International Real Estate Fund, Inc.
|
163,406
|
1,521,310
|
||||||
Royce Focus Trust, Inc. (a)
|
17,500
|
111,475
|
||||||
Royce Micro-Cap Trust, Inc. (a)
|
423,851
|
3,496,771
|
||||||
Royce Value Trust, Inc. (a)
|
348,093
|
4,225,849
|
||||||
SunAmerica Focused Alpha Growth Fund, Inc.
|
326,252
|
5,151,519
|
||||||
SunAmerica Focused Alpha Large-Cap Fund, Inc.
|
75,644
|
1,094,569
|
||||||
Taiwan Greater China Fund (a)
|
80,078
|
538,925
|
||||||
Tri-Continental Corporation
|
387,319
|
4,775,643
|
||||||
56,871,156
|
||||||||
Business Development Company - 2.01%
|
||||||||
Equus Total Return, Inc. (a)
|
23,359
|
55,361
|
||||||
MVC Capital, Inc.
|
154,606
|
2,005,240
|
||||||
Total Investment Companies (Cost $54,661,852)
|
58,931,757
|
|||||||
AUCTION RATE PREFERRED SECURITIES - 16.02% (c)(d)
|
||||||||
BlackRock California Municipal 2018 Term Trust - Series M7, 0.457%
|
100
|
2,118,750
|
||||||
BlackRock Credit Allocation Income Trust III, Inc. - Series R7, 0.330%
|
6
|
127,500
|
||||||
BlackRock Insured Municipal Income Trust - Series F7, 0.457%
|
60
|
1,275,000
|
||||||
BlackRock Municipal 2018 Term Trust - Series W7, 0.426%
|
100
|
2,118,750
|
||||||
BlackRock Municipal Bond Trust - Series R7, 0.426%
|
75
|
1,593,750
|
||||||
BlackRock Municipal Bond Trust - Series T7, 0.426%
|
75
|
1,593,750
|
||||||
BlackRock MuniHoldings Fund, Inc. - Series C, 1.515%
|
25
|
539,062
|
||||||
BlackRock MuniHoldings Fund II, Inc. - Series A, 0.426%
|
50
|
1,062,500
|
||||||
BlackRock MuniHoldings New York Insured Fund, Inc. - Series B, 0.426%
|
1
|
21,375
|
||||||
BlackRock MuniHoldings New York Insured Fund, Inc. - Series D, 0.457%
|
9
|
192,375
|
||||||
BlackRock MuniHoldings New York Insured Fund, Inc. - Series E, 0.426%
|
1
|
21,375
|
||||||
BlackRock New York Municipal Bond Trust - Series T7, 0.426%
|
52
|
1,040,000
|
||||||
Neuberger Berman Real Estate Securities Income Fund, Inc. - Series B, 1.500%
|
44
|
926,750
|
||||||
Neuberger Berman Real Estate Securities Income Fund, Inc. - Series D, 1.500%
|
42
|
892,500
|
||||||
Neuberger Berman Real Estate Securities Income Fund, Inc. - Series E, 1.500%
|
45
|
953,438
|
||||||
Neuberger Berman Real Estate Securities Income Fund, Inc. - Series F, 1.500%
|
10
|
209,375
|
Nuveen California Dividend Advantage Municipal Fund, Inc. - Series TH, 0.427%
|
8
|
180,000
|
||||||
Nuveen California Performance Plus Municipal Fund, Inc. - Series W, 0.427%
|
1
|
22,500
|
||||||
Nuveen Insured Quality Municipal Fund, Inc. - Series TH, 0.427%
|
19
|
427,500
|
||||||
Nuveen Insured Quality Municipal Fund, Inc. - Series W, 0.427%
|
4
|
90,000
|
||||||
Nuveen Investment Quality Municipal Fund, Inc. - Series M, 0.457%
|
4
|
90,000
|
||||||
Nuveen Performance Plus Municipal Fund, Inc. - Series W, 0.427%
|
3
|
67,500
|
||||||
Nuveen Premium Income Municipal Fund, Inc. - Series TH, 0.427%
|
33
|
742,500
|
||||||
Nuveen Premium Income Municipal Fund, Inc. - Series W, 0.427%
|
4
|
90,000
|
||||||
Total Auction Rate Preferred Securities (Cost $16,396,250)
|
16,396,250
|
|||||||
COMMON STOCKS - 10.39%
|
||||||||
Gold & Silver Ores - 0.14%
|
||||||||
Capital Gold Corporation (a)
|
30,696
|
148,262
|
||||||
Grocery Stores - 0.26%
|
||||||||
Winn-Dixie Stores, Inc. (a)
|
37,703
|
268,822
|
||||||
Pharmaceuticals Preparations - 0.08%
|
||||||||
Myrexis, Inc. (a)
|
19,896
|
76,799
|
||||||
Real Estate Investment Trusts - 1.00%
|
||||||||
ARMOUR Residential REIT, Inc.
|
68,271
|
479,262
|
||||||
Monmouth Real Estate Investment Corporation - Class A
|
68,919
|
538,947
|
||||||
1,018,209
|
||||||||
Retail-Auto Dealers & Gasoline Stations - 3.11%
|
||||||||
Casey's General Stores, Inc.
|
76,321
|
3,186,402
|
||||||
Special Purpose Acquisition Vehicle - 4.53%
|
||||||||
57th Street General Acquisition Corporation (a)
|
100,000
|
966,000
|
||||||
Liberty Acquisition Holdings Corporation (a)
|
356,766
|
3,671,122
|
||||||
4,637,122
|
||||||||
Variety Stores - 1.27%
|
||||||||
BJ's Wholesale Club, Inc. (a)
|
31,214
|
1,295,381
|
||||||
Total Common Stocks (Cost $10,477,889)
|
10,630,997
|
|||||||
PREFERRED STOCKS - 1.08%
|
||||||||
General Motors Corporation/Motors Liquidation Company, 7.250% (a)
|
26,853
|
204,083
|
||||||
General Motors Corporation/Motors Liquidation Company, 7.250% (a)
|
37,554
|
285,410
|
||||||
General Motors Corporation/Motors Liquidation Company, 7.250% (a)
|
57,569
|
437,524
|
||||||
General Motors Corporation/Motors Liquidation Company, 7.375% (a)
|
1,623
|
12,335
|
||||||
General Motors Corporation/Motors Liquidation Company, 7.375% (a)
|
2,000
|
15,200
|
||||||
General Motors Corporation/Motors Liquidation Company, 7.500% (a)
|
19,705
|
149,758
|
||||||
Total Preferred Stocks (Cost $1,060,313)
|
1,104,310
|
|||||||
CONVERTIBLE PREFERRED STOCKS - 0.88%
|
||||||||
General Motors Corporation/Motors Liquidation Company - Series B, 5.250% (a)
|
14,151
|
111,086
|
||||||
General Motors Corporation/Motors Liquidation Company - Series C, 6.250% (a)
|
99,741
|
790,946
|
||||||
Total Convertible Preferred Stocks (Cost $865,133)
|
902,032
|
|||||||
Principal
|
||||||||
CONVERTIBLE BONDS - 2.71%
|
Amount
|
|||||||
Accuride Corporation
|
||||||||
7.500%, 02/26/2020 (Acquired 03/16/2010 - 08/26/2010, Cost $755,948) (f)(g)
|
$
|
343,412
|
856,813
|
|||||
GGP Limited Partnership
|
||||||||
3.980%, 04/15/2027 (Acquired 03/09/2010 - 08/19/2010, Cost $1,898,857) (b)(e)
|
1,800,000
|
1,917,000
|
||||||
Total Convertible Bonds (Cost $2,654,805)
|
2,773,813
|
|||||||
CORPORATE BONDS - 8.45%
|
||||||||
Rouse Company Limited Partnership
|
||||||||
5.375%, 11/26/2013 (e)
|
1,000,000
|
1,123,750
|
||||||
3.625%, 03/15/2020 (e)
|
1,000,000
|
1,065,000
|
||||||
8.000%, 04/30/2020 (e)
|
3,000,000
|
3,480,000
|
||||||
5,668,750
|
||||||||
Washington Mutual, Inc.
|
||||||||
0.000%, 09/17/2012 (e)
|
3,000,000
|
2,977,500
|
||||||
Total Corporate Bonds (Cost $8,450,625)
|
8,646,250
|
|||||||
STRUCTURED LIFE SETTLEMENT NOTES - 0.76%
|
||||||||
Cedar Lane Series A-2 Notes (a)(d)(i)
|
780,000
|
780,000
|
||||||
Total Structured Life Settlement Notes (Cost $780,000)
|
780,000
|
|||||||
WARRANTS - 0.04%
|
||||||||
57th Street General Acquisition Corporation
|
||||||||
Expiration: August 2016,
|
||||||||
Exercise Price: $11.50 (a)
|
100,000
|
40,000
|
||||||
Total Warrants (Cost $40,000)
|
40,000
|
|||||||
MONEY MARKET FUNDS - 3.37%
|
||||||||
Fidelity Institutional Government Portfolio - Class I, 0.064% (h)
|
1,642,859
|
1,642,859
|
||||||
Fidelity Institutional Tax-Exempt Portfolio - Class I, 0.094% (h)
|
1,807,579
|
1,807,579
|
||||||
Total Money Market Funds (Cost $3,450,438)
|
3,450,438
|
|||||||
Total Investments (Cost $98,837,305) - 101.29%
|
103,655,847
|
|||||||
Liabilities in Excess of Other Assets - (1.29)%
|
(1,324,981)
|
|||||||
TOTAL NET ASSETS - 100.00%
|
$
|
102,330,866
|
||||||
Percentages are stated as a percent of net assets.
|
||||||||
(a)
|
Non-income producing security.
|
|||||||
(b)
|
Restricted under Rule 144A of the Securities Act of 1933. Purchased in a private placement transaction; resale to the public may require registration or be limited to qualified institutional buyers. The total market value of these securities was $1,917,000, representing 1.87% of net assets.
|
|||||||
(c)
|
The coupon rates shown represent the rates at September 30, 2010.
|
|||||||
(d)
|
Fair valued securities. The total market value of these securities was $17,231,643, representing 16.84% of net assets.
|
|||||||
(e)
|
Default or other conditions exist and security is not presently accruing income.
|
|||||||
(f)
|
Payment-in-kind security.
|
|||||||
(g)
|
Restricted security not registered under the Securities Act of 1933. Purchased in a private placement transaction; resale to the public may require registration or be limited to qualified institutional buyers. The total market value of these securities was $856,813, representing 0.84% of net assets.
|
|||||||
(h)
|
The rate shown represents the 7-day yield at September 30, 2010.
|
|||||||
(i)
|
Illiquid security.
|
|||||||
(j)
|
Security currently undergoing a full liquidation with all proceeds paid out to shareholders.
|
|
Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.
|
|
Level 2—Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
|
|
Level 3—Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
|
The following is a summary of the fair valuations according to the inputs used as of September 30, 2010 in valuing the Fund's investments:
|
|||||||||||
Quoted Prices in Active |
Significant Other
|
||||||||||
Markets for Identical |
Observable Inputs
|
Unobservable Inputs
|
|||||||||
Investments (Level 1) |
(Level 2)
|
(Level 3)
|
Total
|
||||||||
Investment Companies
|
$ |
58,876,364
|
$ |
55,393
|
$ |
-
|
$ |
58,931,757
|
|||
Auction Rate Preferred Securities
|
-
|
-
|
16,396,250
|
16,396,250
|
|||||||
Common Stocks
|
9,664,997
|
966,000
|
-
|
10,630,997
|
|||||||
Preferred Stocks
|
-
|
1,104,310
|
-
|
1,104,310
|
|||||||
Convertible Preferred Stocks
|
-
|
902,032
|
-
|
902,032
|
|||||||
Convertible Bonds
|
-
|
2,773,813
|
-
|
2,773,813
|
|||||||
Corporate Bonds
|
-
|
8,646,250
|
-
|
8,646,250
|
|||||||
Structured Life Settlement Notes
|
-
|
-
|
780,000
|
780,000
|
|||||||
Warrants
|
-
|
40,000
|
-
|
40,000
|
|||||||
Money Market Funds
|
3,450,438
|
-
|
-
|
3,450,438
|
|||||||
Total
|
$ |
71,991,799
|
$ |
14,487,798
|
$ |
17,176,250
|
$ |
103,655,847
|
|||
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
|
|||||||||||
Balance as of December 31, 2009
|
$ |
-
|
|||||||||
Accrued discounts / premiums
|
-
|
||||||||||
Realized gain (loss)
|
244,250
|
||||||||||
Change in unrealized appreciation (depreciation)
|
-
|
||||||||||
Net purchases (sales)
|
16,932,000
|
||||||||||
Transfers in and / or out of Level 3
|
-
|
||||||||||
Balance as of September 30, 2010
|
$ |
17,176,250
|
|||||||||
There were no significant transfers into and out of Level 1 and Level 2 during the nine months ended September 30, 2010.
|
Cost of investments
|
$98,837,305
|
Gross unrealized appreciation
|
5,170,695
|
Gross unrealized depreciation
|
(352,153)
|
Net unrealized appreciation
|
$4,818,542
|
(a)
|
The Registrant’s President and Chief Financial Officer have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (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 the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(d)).
|
(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.
|