sof_nqrev.htm
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


 
FORM N-Q
 
 
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY
 



Investment Company Act file number 811-07528


Special Opportunities Fund, Inc.
(Exact name of registrant as specified in charter)

 
615 East Michigan Street
 
Milwaukee, WI 53202
(Address of principal executive offices) (Zip code)


Andrew Dakos
Brooklyn Capital Management, LLC
Park 80 West
250 Pehle Avenue, Suite 708
Saddle Brook, NJ 07663
(Name and address of agent for service)

Copy to:
Thomas R. Westle, Esp.
Blank Rome LLP
The Chrysler Building
405 Lexington Avenue
New York, NY 10174

1-877-607-0414
Registrant's telephone number, including area code


Date of fiscal year end: December 31, 2013


Date of reporting period:  March 31, 2013

 
 
 
 
 
Item 1. Schedule of Investments.
 
Special Opportunities Fund, Inc.
            
Portfolio of Investments
            
March 31, 2013 (Unaudited)
            
             
INVESTMENT COMPANIES - 92.21%
  
Shares
    
Fair Value
  
Closed-End Funds - 78.09%
            
Aberdeen Israel Fund, Inc.
     82,016     $ 1,198,254  
Adams Express Company
     250,216       2,938,036  
Advance Developing Markets Fund Ltd. (a)(h)
     187,317       1,377,561  
Advance Frontier Markets Fund Ltd. (a)(h)
     500,000       390,158  
Alpine Total Dynamic Dividend Fund
     585,259       2,393,709  
American Strategic Income Portfolio II
     182,487       1,622,309  
American Strategic Income Portfolio III
     530,930       3,869,949  
Bancroft Fund, Ltd.
     79,335       1,388,958  
Blackrock Latin American Investment Trust PLC (h)
     80,000       686,794  
Boulder Growth & Income Fund, Inc.
     428,406       3,140,216  
Boulder Total Return Fund, Inc. (a)
     184,149       3,848,714  
Central Europe & Russia Fund, Inc.
     70,987       2,326,244  
Central Securities Corporation
     123,123       2,557,265  
Clough Global Equity Fund
     141,875       2,085,562  
Clough Global Opportunities Fund
     13,270       170,785  
Dividend & Income Fund
     2,796       42,779  
DPF India Opportunities Fund (h)
     479,700       1,737,753  
DWS RREEF Real Estate Fund II, Inc. (a)(c)(f)(g)
     201,612       28,830  
DWS RREEF Real Estate Fund, Inc. (a)(c)(f)(g)
     126,913       11,803  
Eaton Vance Risk Managed Diversified Equity Income Fund
     1,428,217       15,696,106  
Eaton Vance Tax Managed Global Diversified Equity Income Fund
     43,000       400,760  
Ellsworth Fund Ltd.
     55,094       420,918  
The European Equity Fund, Inc.
     9,361       66,467  
First Opportunity Fund, Inc. (a)
     279,106       2,266,341  
The GDL Fund
     34,028       400,850  
General American Investors Co., Inc.
     105,177       3,284,678  
Hansa Trust (h)
     41,000       507,726  
The India Fund, Inc.
     92,375       1,962,045  
INVESCO Asia Trust PLC (h)
     347,395       885,471  
JP Morgan Asian IT (h)
     34,105       113,488  
Juridica Investment Ltd.
     495,258       691,381  
Liberty All-Star Equity Fund
     2,239,240       11,576,871  
Macquarie Global Infrastructure Total Return Fund, Inc.
     54,324       1,150,039  
Monks Investment Trust PLC (h)
     175,000       943,962  
Morgan Stanley Asia Pacific Fund, Inc.
     16,524       266,863  
The New Germany Fund, Inc.
     11,712       197,230  
The New Ireland Fund, Inc.
     26,785       278,028  
Pacific Alliance Asia Opportunities Fund (a)
     100,000       131,750  
PennantPark Floating Rate Capital Ltd.
     16,743       233,732  
Royce Micro-Cap Trust, Inc.
     440,426       4,712,558  
Royce Value Trust, Inc.
     348,093       5,242,281  
Swiss Helvetia Fund, Inc.
     134,018       1,643,061  
Terra Catalyst Fund (h)
     40,000       33,276  
The Thai Capital Fund, Inc.
     106,942       1,498,257  
The Thai Fund, Inc.
     144,393       3,452,437  
Tri-Continental Corporation
     387,319       6,797,448  
The Zweig Total Return Fund, Inc.
     432,403       5,634,211  
              102,303,914  
Closed-End Funds - Preferred Shares - 2.78%
                
Oxford Lane Capital Corp.
     140,000       3,640,000  
                 
Auction Rate Preferred Securities - 3.89% (b)(c)(f)
                
BlackRock California Municipal 2018 Term Trust - Series M7, 0.152%
     89       2,113,750  
BlackRock Municipal 2018 Term Trust - Series W7, 0.168%
     73       1,733,750  
Putnam Managed Municipal Income Trust - Series C, 0.00%
     6       225,000  
Putnam Municipal Opportunities Trust - Series C, 0.00%
     6       112,500  
Western Asset Premier Bond Fund - Series M, 0.060%
     46       914,250  
              5,099,250  
Business Development Company - 7.45%
                
Equus Total Return, Inc. (a)
     106,919       230,945  
Firsthand Technology Value Fund, Inc. (a)
     253,938       4,898,464  
Gladstone Investment Corporation
     241,102       1,762,456  
Hercules Technology Growth Capital, Inc.
     12,934       158,441  
MVC Capital, Inc.
     211,575       2,714,507  
              9,764,813  
Total Investment Companies (Cost $106,187,034)
             120,807,977  
                 
PREFERRED STOCKS - 5.30%
                
Oil and Gas Extraction - 0.64%
                
Magnum Hunter Resources Corporation - Series D, 8.000%
     17,875       838,695  
Other Investment Pools and Funds - 0.13%
                
Arbor Realty Trust, Inc. - Series A, 8.250%
     6,558       169,524  
Real Estate Investment Trust - 4.53%
                
AG Mortgage Investment Trust, Inc. - Series B, 8.000%
     10,755       274,038  
Healthcare Corp. of America - Series A, 0.000% (a)(c)(f)
     10,000       0  
Preferred Apartment Communities - Series A,  (a)
     6,083       5,657,129  
              5,931,167  
Total Preferred Stocks (Cost $6,876,454)
             6,939,386  
                 
COMMON STOCKS - 20.12%
                
Commercial Banks - 0.01%
                
1st Constitution Bancorp (a)
     2,214       19,195  
Energy Equipment & Services - 0.21%
                
Zedi, Inc. (a)(h)
     422,825       270,548  
Financials - 0.03%
                
Universal Business Payment Solutions Acquisition Corporation (c)(j)
     13,330       36,991  
Food & Staples Retailing - 0.38%
                
SUPERVALU, Inc.
     98,396       495,916  
Household Durables - 1.80%
                
Lennar Corp.
     73,014       2,355,432  
Life Insurance - 1.80%
                
Imperial Holdings, Inc. (a)
     581,622       2,355,569  
Marine - 0.21%
                
Box Ships, Inc. (h)
     58,612       272,546  
Pharmaceuticals Preparations - 0.06%
                
Myrexis, Inc.
     857,013       81,416  
Real Estate Investment Trusts - 1.98%
                
Gladstone Land Corporation
     5,500       85,360  
Gyrodyne Company of America, Inc.
     8,345       613,441  
JAVELIN Mortgage Investment Corporation
     96,231       1,890,939  
              2,589,740  
Software - 0.14%
                
Single Touch Systems, Inc. (a)
     264,771       185,340  
Special Purpose Acquisition Vehicle - 13.50% (a)
                
Andina Acquisition Corporation (h)
     95,026       945,509  
Aquasition Corporation (h)(i)
     400,000       4,020,000  
Azteca Acquisition Corporation
     12,982       133,714  
BGS Acquisition Corporation (h)
     120,615       1,212,181  
Blue Wolf Mongolia Holdings Corporation (h)
     50,273       499,211  
Chart Acquisition Corporation
     124,265       1,185,488  
CIS Acquisition Ltd. (h)
     144,147       1,458,768  
Collabrium Japan Acquisition Corporation (h)
     208,234       2,082,340  
Hyde Park Acquisition Corporation II
     59,000       607,700  
Infinity Cross Border Acquisition Corporation (h)
     126,200       971,740  
Lone Oak Acquisition Corporation (h)
     112,297       918,589  
Prime Acquisition Corporation (h)
     80,545       801,423  
ROI Acquisition Corporation
     48,370       435,814  
SCG Financial Acquisition Corporation
     163,384       1,607,698  
Selway Capital Acquisition Corporation
     80,000       816,000  
              17,696,175  
Total Common Stocks (Cost $27,782,384)
             26,358,868  
                 
   
Principal
          
   
Amount
          
CORPORATE BONDS - 3.28%
                
American Airlines, Inc.
                
10.500%, 10/15/2012 (b)
   $ 666,000       790,875  
Greenwood Asset Portfolio LLC
                
12.000%, 09/27/2014 (b)
     3,770,000       3,487,250  
Washington Mutual, Inc.
                
0.000%, 09/17/2012 (c)(d)(f)
     3,000,000       15,000  
Total Corporate Bonds (Cost $4,257,484)
             4,293,125  
                 
CONVERTIBLE NOTES - 0.08%
                
HCA Note
                
0.080%, 9/19/2013 (c)(f)
     100,000       100,000  
Total Convertible Notes (Cost $100,000)
             100,000  
                 
PROMISSORY NOTES - 0.35%
                
Symbios Holdings, Inc.
                
15.000%, 07/16/2012 (c)(f)
     450,000       225,000  
UBPS Secured Convertible Promissory Note
                
12.000%, 12/31/2014 (c)(f)
     234,000       234,000  
Total Promissory Notes (Cost $684,000)
             459,000  
                 
   
Shares
          
WARRANTS - 0.74% (a)
                
Andina Acquisition Corporation
                
Expiration: March 2016
     95,026       14,254  
Exercise Price: $8.00 (h)
                
Azteca Acquisition Corporation
                
Expiration: April 2018
     166,726       191,735  
Exercise Price: $12.50
                
Blue Wolf Mongolia Holdings Corporation
                
Expiration: July 2016
     50,273       9,049  
Exercise Price: $12.00 (c)(h)
                
Chart Acquisition Corporation
                
Expiration: December 2017
     124,265       54,677  
Exercise Price: $11.50
                
Collabrium Japan Acquisition Corporation
                
Expiration: December 2017
     208,234       33,317  
Exercise Price: $11.50
                
Empeiria Acquisition Corporation
                
Expiration: December 2017
     205,929       65,897  
Exercise Price: $11.50
                
Global Eagle Acquisition Corporation
                
Expiration: May 2016
     100,000       135,000  
Exercise Price: $11.50
                
Infinity Cross Border Acquisition Corporation
                
Expiration: July 2016
     270,124       151,270  
Exercise Price: $7.00 (h)
                
Lone Oak Acquisition Corporation
                
Expiration: March 2016
     81,430       17,711  
Exercise Price: $5.00 (h)
                
Nautilus Marine Acquisition Corporation
                
Expiration: July 2016
     30,852       3,085  
Exercise Price: $11.50 (h)
                
Net Element International, Inc.
                
Expiration: October 2017
     228,491       34,274  
Exercise Price: $7.50
                
Perferred Apartment Communities
                
Expiration: March 2017
     6,083       61  
Exercise Price: $9.00
                
Pingtan Marine Enterprise Ltd.
                
Expiration: February 2018
     52,798       17,951  
Exercise Price: 12.00 (h)
                
Prime Acquisition Corporation
                
Expiration: March 2016
     50,142       20,558  
Exercise Price: $7.50 (h)
                
RLJ Entertainment, Inc.
                
Expiration: October 2017
     436,744       91,716  
Exercise Price: $12.00
                
ROI Acquisition Corporation
                
Expiration: February 2017
     48,370       38,696  
Exercise Price: $120.00
                
SCG Financial Acquisition Corporation
                
Expiration: May 2016
     60,478       22,377  
Exercise Price: $11.50
                
Selway Capital Acquisition Corporation
                
Expiration: November 2016
     80,000       74,400  
Exercise Price: $7.50
                
Total Warrants (Cost $770,191)
             976,028  
                 
                 
MONEY MARKET FUNDS - 6.67%
                
Fidelity Institutional Government Portfolio - Class I, 0.010% (e)
     4,369,140       4,369,140  
Fidelity Institutional Tax-Exempt Portfolio - Class I, 0.010% (e)
     4,365,432       4,365,432  
Total Money Market Funds (Cost $8,734,572)
             8,734,572  
                 
Total Investments (Cost $155,392,119) - 128.75%
             168,668,956  
Liabilities in Excess of Other Assets - (0.16)%
             (209,094 )
Preferred Stock (28.59)%
             (37,454,300 )
TOTAL NET ASSETS - 100.00%
           $ 131,005,562  
 
Percentage are stated as a percent of net assets.
   
 
(a)
Non-income producing security.
 
(b)
The coupon rates shown represent the rates at March 31, 2013.
 
(c)
Fair valued securities. The total market value of these securities was $5,759,923, representing 4.40% of net assets.
 
(d)
Default or other conditions exist and security is not presently accruing income.
 
(e)
The rate shown represents the 7-day yield at March 31, 2013.
 
(f)
Illiquid security. The total market value of these securities was $5,713,883 representing 4.36% of net assets.
 
(g)
Security currently undergoing a full liquidation with all proceeds paid out to shareholders.
 
(h)
Foreign-issued securities.
 
(i)
Affiliated company.
 
(j)
Restricted security.
 
Special Opportunities Fund, Inc.
Schedule of Securities Sold Short
March 31, 2013 (Unaudited)
   
Shares
    
Value
Lennar Corp
     54,106     $ 2,244,317
Total Securities Sold Short (Proceeds $2,275,688)
           $ 2,244,317
 

 
 
 
 
 
Valuation of investments — The Fund calculates its net asset value based on the current market value for its portfolio securities. The Fund normally obtains market values for its securities from independent pricing sources and broker-dealers. Independent pricing sources may use last reported sale prices or if not available the most recent bid price, current market quotations or valuations from computerized “matrix” systems that derive values based on comparable securities. A matrix system incorporates parameters such as security quality, maturity and coupon, and/or research and evaluations by its staff, including review of broker-dealer market price quotations, if available, in determining the valuation of the portfolio securities. If a market value is not available from an independent pricing source or a broker-dealer for a particular security, that security is valued at fair value as determined in good faith by or under the direction of the Fund’s Board of Directors (the “Board”). Various factors may be reviewed in order to make a good faith determination of a security’s fair value. The auction rate preferred securities and the structured life settlement notes are valued at cost, unless other observable market events occur. The purchase price, or cost, of these securities is arrived at through an arms length transaction between a willing buyer and seller in the secondary market and is indicative of the value on the secondary market. Current transactions in similar securities in the marketplace are evaluated. Factors for other securities may include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; and changes in overall market conditions. If events occur that materially affect the value of securities between the close of trading in those securities and the close of regular trading on the New York Stock Exchange, the securities may be fair valued. The amortized cost method of valuation, which approximates market value, generally is used to value short-term debt instruments with sixty days or less remaining to maturity, unless the Board or its delegate determines that this does not represent fair value.

The Fund has adopted fair valuation accounting standards that establish an authoritative definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various input and valuation techniques used in measuring fair value. Fair value inputs are summarized in the three broad levels listed below:

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 availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The Fund adopted Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2011-04 (“ASU 2011-04”), Fair Value Measurement: Amendments to Achieve Common Fair Value Measurements and Disclosure Requirements in U.S. GAAP and IFRS, which, among other things, clarifies existing disclosure requirements provided by ASC 820 regarding the level of disaggregation and the inputs and valuation techniques used to measure fair value.

The significant unobservable inputs used in fair value measurement of the Fund’s investment companies, corporate bonds, promissory notes, and structured finance notes are (1) cost and (2) indicative bids or price ranges from dealers, brokers, or market makers. Significant changes in any of these inputs in isolation may result in a change in higher fair value measurement.

In accordance with procedures established by the Fund’s Board of Directors, the Adviser shall initially value non-publicly-traded securities (for which a current market value is not readily available) at their acquisition cost less related expenses, where identifiable, unless and until the Adviser determines that such value does not represent fair value.

The Adviser sends a memorandum to the Chairman of the Valuation Committee with respect to any non-publicly-traded securities that are valued using a method other than cost detailing the reason, factors considered, and impact on the Fund’s NAV. If the Chairman determines that such fair valuation(s) require the involvement of the Valuation Committee, a special meeting of the Valuation Committee is called as soon as practicable to discuss such fair valuation(s). The Valuation Committee of the Board consists of at least two non-interested Directors, as defined by the Investment Company Act of 1940.

At each regular quarterly Board meeting, the Adviser delivers a written report (the “Quarterly Report”) to the Board regarding any recommendations of fair valuation during the past quarter, including fair valuations which have not changed. The Board reviews the Quarterly Report and discusses the valuation of the fair valued securities.

The Valuation Committee reviews all Quarterly Reports and any other interim reports, and reviews and approves the valuation of all fair valued securities. This review includes a review and discussion of an updated fair valuation summary with appropriate levels of representatives of the Adviser’s management.
 
The following is a summary of the fair valuations according to the inputs used as of March 31, 2013 (Unaudited) in valuing the Fund's investments:
  
                         
   
Quoted Prices in Active
    
Significant Other
              
   
Markets for Identical
    
Observable Inputs
    
Unobservable Inputs
        
   
Investments (Level 1)
    
Investments (Level 2)
    
(Level 3)
    
Total
  
Investment Companies
   $ 115,634,818     $ 33,276     $ 5,139,883     $ 120,807,977  
Preferred Stocks
     1,282,257       -       5,657,129       6,939,386  
Common Stocks
     14,252,367       12,069,510       36,991       26,358,868  
Corporate Bonds
     -       4,278,125       15,000       4,293,125  
Convertible Notes
     -       -       100,000       100,000  
Promissory Notes
     -       -       459,000       459,000  
Warrants
     461,368       505,611       9,049       976,028  
Money Market Funds
     8,734,572       -       -       8,734,572  
Total
   $ 140,365,382     $ 16,886,522     $ 11,417,052     $ 168,668,956  
                                 
Liabilities:
                                
Securities Sold Short
   $ 2,244,317     $ -     $ -     $ 2,244,317  
 
Level 3 Reconciliation Disclosure
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
 
Category
  
Balance
as of 12/31/2012
    
Purchases
    
Sales
    
Realized Gain (Loss)
    
Change
in unrealized appreciation (depreciation)
    
Transfers into
Level 3
    
Balance
as of
3/31/2013
  
Closed End Funds
   $ 40,633     $ -     $ -     $ -     $ -     $ -     $ 40,633  
Auction Rate Preferred Securities
     5,876,750       -       (950,000 )     144,875       27,625       -       5,099,250  
Preferred Stocks      -        5,657,129        -        -        -        -        5,657,129  
Special Purpose Acquisition Vehicles
     20,101       -       -       -       16,890       -       36,991  
Corporate Bonds
     15,000       -       -       -       -       -       15,000  
Convertible Notes
     100,000       -       -       -       -       -       100,000  
Promissory Notes
     459,000       -       -       -       -       -       459,000  
Structured Life Settlement Notes
     188,321       -       (188,321 )     -       -       -       -  
Warrants
     -       -       -       -       -       9,049       9,049  
    $ 6,699,805     $ 5,657,129     $ (1,138,321 )   $ 144,875     $ 44,515     $ 9,049     $ 11,417,052  
 
 
The following table presents additional information about valuation methodologies and inputs used for investments that are measured at fair value and categorized within Level 3 as of March 31, 2013:
 
   
Fair Value March 31, 2013
  
Valuation Methodologies
  
Unobservable Input(1)
  
Impact
to Valuation
from an
 increase in
Input(2)
Closed End Funds
   $ 40,633  
Fair Value Pricing
  
Third party inputs
  
Increase
Auction Rate Preferred Securities
     5,099,250  
Fair Value Pricing
  
Third party inputs
  
Increase
Preferred Stocks                  5,657,129   Fair Value Pricing   Third party inputs   Increase
Special Purpose Acquisition Vehicles
     36,991  
Fair Value Pricing
  
Third party inputs
  
Increase
Corporate Bonds
     15,000  
Fair Value Pricing
  
Third party inputs
  
Increase
Convertible Notes
     100,000  
Fair Value Pricing
  
Third party inputs
  
Increase
Warrants
     9,049  
Fair Value Pricing
  
Third party inputs
  
Increase
Promissory Notes
     459,000  
Fair Value Pricing
  
Third party inputs
  
Increase
 
(1)
In determining certain of these inputs, management evaluates a variety of factors including economic conditions, foreign exchange rates, industry and market developments, market valuations of comparable companies and company specific developments including exit strategies and realization opportunities. Management has determined that market participants would take these inputs into account when valuing the investments.
   
(2)
This column represents the directional change in the fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect.
 
 
 
 
 
 
 
The cost basis of investments for federal income tax purposes at March 31, 2013 was as follows*:
 
Cost of investments
 $ 155,392,119  
Gross unrealized appreciation on investments   
   16,793,316  
Gross unrealized appreciation on short sales
Gross unrealized depreciation on investments 
  
31,371
(3,516,479
 ) 
Net unrealized appreciation  
 $ 13,308,208  
 
* Because tax adjustments are calculated annually, the above table reflects the tax adjustments outstanding at the Fund’s previous fiscal year end.  For the previous fiscal year’s federal income tax information, please refer to the Notes to Financial Statements section in the Fund’s most recent semi-annual or annual report.
 

 
 
 
 
 
Special Opportunities Fund
 
The fair value of derivative instruments as reported within this Schedule of Investments as of March 31, 2013:
 
Derivatives not accounted for
as hedging instruments
    Statement of Assets &
Liabilities Location
     Value  
             
Equity Contracts - Warrants   Investments, at value    $  976,028  
 
 
The effect of derivative instruments on income for the period ended March 31, 2013:
 
   
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income
  
Derivatives not accounted for
as hedging instruments
  
 Statement of Operations
Location
     Value  
             
Equity Contracts - Warrants    
Net Realized Gain
on Investments
    $  (22,263 )
 
 
   
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income
  
Derivatives not accounted for
as hedging instruments
  
 Statement of Operations
Location
     Total  
             
Equity Contracts - Warrants    
Net change in unrealized
appreciation of investments
    $ 299,863  
 
 
 
 
 
 
 
The following issuer is affiliated with the Fund; that is, the Fund held 5% or more of the outstanding Voting shares during the period ended December 31, 2012 through March 31, 2013.  As defined in Section (2)(a)(3) of the Investment Company Act of 1940, such issuers are:
 
Issuer Name
Share Balance
at
Dec. 31,
2012
Additions
Reductions
Share Balance
at
Mar. 31,
2013
Realized
Gain
Dividend
Income
Value
at
Mar. 31,
2013
Acquisition
Cost
Aquasition Corp.
400,000
-
-
400,000
-
-
4,020,000
4,000,000


 
 
 
 
 
Item 2. Controls and Procedures.
 
(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.

Item 3. Exhibits.
 
Separate certifications for each principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)).  Filed herewith.
 

 
 
 
 
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


(Registrant)  Special Opportunities Fund, Inc.                                                                                                                              

 
By (Signature and Title) /s/ Andrew Dakos                                                                                                                                                       
 Andrew Dakos, President

Date  May 28, 2013                                                                                                                                                        



Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title) /s/ Andrew Dakos                                                                                                                                    
 Andrew Dakos, President

Date  May 28, 2013                                                                                                                                                                   

 
By (Signature and Title) /s/ Gerald Hellerman                                                                                                                                                              
 Gerald Hellerman, Chief Financial Officer

Date  May 15, 2013