Special Opportunities Fund Inc. (SPE) 2016年年度报告「NYSE」.pdf

1、 Special Opportunities Fund,Inc.(SPE)Annual ReportFor the year endedDecember 31,2016 March 1,2017Dear Fellow Shareholders:The second half of 2016 was quite eventful for Special Opportunities Fund.InJuly,the Fund distributed rights to its common stockholders to purchase a newclass of convertible pref

2、erred stock that raised$55.6 million.A portion of thatcash was used to fund a self-tender offer that was completed in October for 1.16million shares of common stock at 97%of net asset value.After giving effect toa year-end cash dividend of$0.81 per share and ignoring the rights offering orself-tende

3、r offer,the common shares of the Fund gained 5.13%in the six-monthperiod ending December 31,2016,closing at$13.65 vs.an increase of 7.82%forthe S&P 500 Index.The Funds discount to net asset value fell slightly over thesecond half of 2016 from 13.08%to 12.28%(and currently is about 10%).Here is an up

4、date on some of our significant positions.It would be an understatement to say that our investment in Emergent Capital(EMGC.PK)has been a disappointment.Emergent owns a portfolio of lifeinsurance policies with an aggregate face value of approximately$3 billion but itsactual cash flow has been signif

5、icantly less than what had been projected.It hasbecome clear that Emergents capital structure will need to be further modified todeal with holding company debt and operating and legal expenses and that willlikely result in dilution of the common stock.Stewart Information Services(STC),a provider of

6、title insurance and other servicesin connection with real estate transactions,remains one of our largest positions.In2016,Stewart eliminated its dysfunctional dual class capital structure partly due topressure from us.Several other activist investors subsequently piled into the stockincluding Starbo