Special Opportunities Fund Inc. (SPE) 2014年年度报告「NYSE」.pdf

1、Special Opportunities Fund,Inc.(SPE)Annual ReportFor the year endedDecember 31,2014March 2,2015Dear Fellow Shareholders:On December 31,2014,the Funds market price closed at$15.37 per share,up0.90%from its closing price of$16.70 per share on June 30,2014(afteraccounting for a year-end stock dividend

2、of$1.48 per share).For the sameperiod,the S&P 500 Index gained 6.11%.At the risk of sounding like a broken record,the stock market continued to soarin the second half of 2014(and thus far in 2015),regularly making new highswith only modest pullbacks along the way.Since the Fund is designed to be mor

3、erisk averse than a hypothetical investment in the S&P 500 Index(and is much lessthan 100%correlated with it),it is unsurprising to be underperforming.Wewould expect to outperform the indexes in a less euphoric environment.Eventually,the markets upward march will end and we will see if that is the c

4、ase.The Funds recent stock price underperformance is also due in part to a modestwidening of the discount to net asset value.We remind you that the Fund maypurchase shares of its common stock without limitation when it is trading at adiscount to net asset value.The Fund made its first such purchase

5、of its stock in2015 and we intend to make purchases opportunistically.To reiterate what we said in our last letter,we will only elaborate on our currentinvestments if we believe there is a low probability that doing so will negativelyimpact the Funds performance.The investments discussed below fall

6、into thatcategory.Imperial Holdings(IFT)To recap,Imperial owns a portfolio of life insurance policies with an aggregateface value of approximately$3 billion,but whose stated fair value reflectsuncertainty about their collectability.I am the chairman of Imperial but even I amoften perplexed about how