Special Opportunities Fund Inc. (SPE) 2012年年度报告「NYSE」.pdf

1、Special Opportunities Fund,Inc.Annual ReportFor the year endedDecember 31,2012February 12,2013Dear Fellow Shareholders:I have been investing in closed-end funds for more years than I care to admit.However,I never really focused on how the performance of a closed-end fundscommon stock should be calcu

2、lated to account for things like a rights offering ora stock distribution with an option to receive cash.After doing some checking,Icould not find any standard methodology to calculate performance so I want tosuggest how I think the net asset value performance should be calculated for thecommon stoc

3、k of Special Opportunities Fund(and all closed-end funds).By way of illustration,lets look at the second half of 2012.On June 30,2012,the Funds NAV was$16.95 per share and on December 31,2012 it was$17.22per share.A stock distribution(with a cash option)of$0.95 per share was paidto shareholders of r

4、ecord on December 21,2012 and a tax payment of$0.05 pershare(for which shareholders can take a credit on their federal tax return)wasmade on behalf of shareholders of record on December 31,2012(and debited onthat date).(Note:Shareholders that own shares in an IRA can file Form 990-T toobtain a refun

5、d of the tax payment.)In addition,as you probably know,on July23,2012 the Fund completed a rights offering for a new class of convertiblepreferred stock.The rights traded on the NASDAQ Capital Market and thevolume weighted average price for the rights was$0.91 per right.Since oneright was issued,for

6、 each ten shares of the Fund held by shareholders,I wouldvalue the distribution at$0.09 per share.(Had the rights been non-transferable,they would be ignored for purposes of calculating the Funds return.)If we add$17.22+$0.95+$0.05+$0.09,we get an adjusted NAV on December 31,2012 of$18.31.That resul