Special Opportunities Fund Inc. (SPE) 2011年年度报告「NYSE」.pdf

1、Special Opportunities Fund,Inc.Annual ReportFor the year endedDecember 31,2011February 11,2012Dear Fellow Shareholders:In 2011 the stock market was about as volatile as in any year we can recall.Bigdaily moves,both up and down,were frequent.The Funds net asset value wasoff 4.99%in the second half of

2、 the year vs.-3.69%for the S&P 500 Index.In theend,the market was little changed in 2011.For the year,the Fund posted amodest NAV gain of 0.85%(assuming reinvested dividends),slightly less than theS&P 500 Index which rose 2.11%.Although Special Opportunities Fund is not intended to be market neutral

3、,we arerisk averse.Consequently,in the third quarter when the market hit its lows,theFund was well ahead of the S&P 500 Index.Given its heavy weighting in specialpurpose acquisition companies(SPACs),auction rate preferred stock(ARPs)issuedby closed-end funds,bankruptcy claims,and other investments t

4、hat are not highlycorrelated with the stock market,we think our performance in 2011 was prettygood.We believe that preserving capital in down markets is more important togenerating superior long term results than beating the market when the wind isat our back.Until we find a reliable crystal ball,we

5、 will continue to treat themarket as an unpredictable beast.As always,our focus is on investing where wethink we have an edge and using activism when necessary to try to unlock thevalue of our investments.The following discussion of a few of our investmentsshould give you some insight into how we tr

6、y to meet the Funds objective ofgenerating solid total returns over time without incurring inordinate risk.Gyrodyne Corporation of America(GYRO)In June 2010,a trial court awarded GYRO about$70 per share(based upon thecurrent share count)plus 9%statutory interest for property that New York Stateappro