speciaopp_n-q.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
Bulldog Investors, 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, 2015


Date of reporting period:  September 30, 2015

 
 
 
 
Item 1. Schedule of Investments.
Special Opportunities Fund, Inc.
            
Portfolio of Investments
            
September 30, 2015 (Unaudited)
            
               
INVESTMENT COMPANIES - 53.29%
  
Shares
    
Fair Value
  
Closed-End Funds - 45.03%
            
Adams Diversified Equity Fund
     163,607     $ 2,085,989  
Advent/Claymore Enhanced Growth & Income Fund
     403,545       3,309,069  
Bancroft Fund, Ltd.
     69,976       1,308,551  
Blackrock Latin American Investment Trust PLC (h)
     80,000       327,963  
Boulder Growth & Income Fund, Inc.
     968,232       7,213,328  
Candover Investments Fund PLC (a)(h)
     40,468       126,721  
Central Securities Corp.
     136,479       2,696,825  
Clough Global Equity Fund
     282,754       3,579,666  
Cushing MLP Total Return Fund
     16,803       197,603  
Deutsche Global High Income Fund
     187,349       1,416,171  
Deutsche High Income Opportunities Fund, Inc.
     353,984       4,654,890  
Diversified Real Asset Income Fund
     349,485       5,619,719  
Ellsworth Growth and Income Fund Ltd.
     40,078       313,474  
Federated Enhanced Treasury Income Fund
     15,396       208,154  
First Trust Dividend and Income Fund
     136,166       1,064,818  
Fort Dearborn Income Securities, Inc.
     774       10,914  
The GDL Fund
     15,000       147,001  
General American Investors Co., Inc.
     320,799       9,938,353  
Global High Income Fund, Inc.
     483,942       3,736,032  
JP Morgan Asian Investment Trust PLC (h)
     15,214       46,692  
Juridica Investments Ltd. (h)
     495,258       509,530  
Liberty All Star Equity Fund
     1,043,489       5,300,924  
LMP Real Estate Income Fund, Inc.
     342,704       4,208,405  
Managed High Yield Plus Fund, Inc.
     329,267       529,791  
Marwyn Value Investors Ltd. (h)
     155,571       518,921  
Millennium Investment & Acquisition Co., Inc. (a)
     112,276       57,272  
Morgan Stanley East Europe Fund Escrow (a)
     97,901       0  
Neuberger Berman Real Estate Securities Income Fund, Inc.
     577,795       2,663,635  
Nuveen Global Equity Income Fund
     71,976       733,436  
Pacholder High Yield Fund, Inc.
     50,976       322,168  
The Prospect Japan Fund Ltd. (a)(h)
     240,144       231,739  
Swiss Helvetia Fund, Inc.
     280,925       3,050,846  
Templeton Russia and East European Fund, Inc.
     35,812       348,451  
Terra Catalyst Fund (h)
     20,319       32,504  
Transamerica Income Shares, Inc.
     9,773       211,683  
Tri-Continental Corp.
     387,319       7,552,721  
                74,273,959  
Commodity Partnerships - 3.45%
                
Nuveen Diversified Commodity Fund
     155,890       1,607,475  
Nuveen Long/Short Commodity Total Return Fund
     255,478       4,087,648  
                5,695,123  
Auction Rate Preferred Securities - 0.21% (c)(f)
                
Putnam Managed Municipal Income Trust - Series C
     6       225,000  
Putnam Municipal Opportunities Trust - Series C
     6       123,000  
                348,000  
 
 
 
 
 
Business Development Company - 4.60%
                
BDCA Venture, Inc.
     292,681       1,372,703  
Equus Total Return, Inc. (a)
     106,919       187,108  
Firsthand Technology Value Fund, Inc.
     145,940       1,241,949  
Full Circle Capital Corp.
     477,419       1,465,677  
MVC Capital, Inc.
     403,584       3,313,425  
                7,580,862  
Total Investment Companies (Cost $91,953,035)
             87,897,944  
                   
PREFERRED STOCKS - 3.65%
                
Health Care Providers & Services - 0.09%
                
AdCare Health Systems, Inc.
     6,773       143,046  
Real Estate Investment Trusts - 3.56%
                
Preferred Apartment Communities, Inc. (c)(f)
     6,083       5,870,034  
Total Preferred Stocks (Cost $5,831,534)
             6,013,080  
                   
COMMON STOCKS - 29.34%
                
Consumer Finance - 3.41%
                
Emergent Capital, Inc. (a)
     1,032,379       5,626,463  
Food Products - 0.09%
                
Boulder Brands, Inc. (a)
     17,184       140,737  
Hotels, Restaurants & Leisure - 0.05%
                
Caesars Acquisition Co. (a)
     12,400       88,040  
Insurance - 8.69%
                
Stewart Information Services Corp.
     350,544       14,340,755  
IT Services - 0.06%
                
JetPay Corp. (a)
     35,055       97,102  
Marine - 0.02%
                
Pangaea Logistics Solutions Ltd. (a)(h)
     10,857       33,657  
Professional Services - 1.98%
                
Hill International, Inc. (a)
     997,639       3,272,256  
Real Estate Investment Trusts - 9.15%
                
Gyrodyne LLC
     8,075       226,504  
Independence Realty Trust, Inc.
     142,062       1,024,264  
New York REIT, Inc.
     280,451       2,821,337  
Silver Bay Realty Trust Corp.
     5,384       86,198  
Wheeler Real Estate Investment Trust, Inc.
     1,119,587       2,127,215  
Winthrop Realty Trust
     613,741       8,813,321  
                15,098,839  
Special Purpose Acquisition Vehicle - 5.89% (a)
                
1347 Capital Corp.
     76,600       782,086  
Arowana, Inc. (h)
     122,028       1,232,483  
Barington/Hilco Acquisition Corp.
     15,611       158,452  
DT Asia Investments, Ltd. (h)
     115,645       1,150,668  
E-Compass Acquisition Corp. (h)
     27,523       277,432  
Electrum Special Acquisition Corp. (h)
     46,800       462,384  
FinTech Acquisition Corp.
     48,085       483,735  
FlatWorld Acquisition Corporation (h)
     105,702       5,285  
Garnero Group Acquisition Co. (h)
     153,199       1,510,542  
Global Defense & National Security Systems, Inc.
     90,807       955,290  
Gores Holdings, Inc.
     41,285       416,566  
Harmony Merger Corp.
     62,937       623,076  
 
 
 
 
 
Quinpario Acquisition Corp. 2
     15,611       160,481  
ROI Acquisition Corp. II
     55,036       550,360  
Sino Mercury Acquisition Corp.
     33,634       326,586  
Terrapin 3 Acquisition Corp.
     62,138       613,923  
                9,709,349  
Total Common Stocks (Cost $45,939,050)
             48,407,198  
                   
LIQUIDATION CLAIMS - 1.70% (a)(c)(f)
                
The Home Insurance Company in Liquidation
     1       1,228,502  
The Home Insurance Company in Liquidation II
     1       1,574,994  
Total Liquidation Claims (Cost $2,569,880)
             2,803,496  
                   
     
Principal
          
     
Amount
          
CONVERTIBLE BONDS - 1.90% (b)
                
Emergent Capital, Inc.
                
8.500%, 02/15/2019
   $ 2,941,000       3,139,517  
Total Convertible Bonds (Cost $2,941,000)
             3,139,517  
                   
CORPORATE BONDS - 0.01% (b)(c)(d)(f)
                
Washington Mutual Inc.
                
0.000%, 09/17/2012
     3,000,000       22,500  
Total Corporate Bonds (Cost $0)
             22,500  
                   
CORPORATE NOTES - 1.91% (b)
                
MVC Capital, Inc.
     133,383       3,146,505  
7.250%, 01/15/2023
                
Total Corporate Notes (Cost $3,349,349)
             3,146,505  
                   
PROMISSORY NOTES - 0.85% (b)(c)(f)(g)
                
Wheeler Real Estate Investment Trust Convertible
                
9.000%, 12/15/2018 (Acquired 12/16/2013, Cost $600,000)
     600,000       600,000  
Wheeler Real Estate Investment Trust Non-convertible
                
9.000%, 12/15/2015 (Acquired 12/16/2013, Cost $800,000)
     800,000       800,000  
Total Promissory Notes (Cost $1,400,000)
             1,400,000  
                   
     
Shares
          
WARRANTS - 0.26% (a)
                
AR Capital Acquisition Corp.
                
Expiration: October 2019
     49,997       11,999  
Exercise Price: $11.50
                
Arabella Exploration, Inc.
                
Expiration: December 2016
     25,448       384  
Exercise Price: $5.00 (h)
                
CB Pharma Acquisition Corp.
                
Expiration: December 2021
     23,814       5,001  
Exercise Price: $5.75 (h)
                
Delta Technology Holdings, Ltd.
                
Expiration: December 2017
     43,666       2,266  
Exercise Price: $10.00 (h)
                
DT Asia Investments, Ltd.
                
Expiration: October 2019
     79,818       7,184  
 
 
 
 
 
Exercise Price: $12.00 (h)
                
Garnero Group Acquisition Co.
                
Expiration: June 2019
     153,199       19,916  
Exercise Price: $11.50 (h)
                
Harmony Merger Corp.
                
Expiration: January 2021
     62,937       18,881  
Exercise Price: $11.50
                
Hemisphere Media Group, Inc.
                
Expiration: April 2018
     39,430       53,231  
Exercise Price: $12.00
                
Imperial Holdings, Inc.
                
Expiration: October 2019
     8       0  
Exercise Price: $10.75 (c)(f)
                
Preferred Apartment Communities, Inc.
                
Expiration: March 2017
     6,083       61  
Exercise Price: $9.00 (c)(f)
                
ROI Acquisition Corp. II
                
Expiration: September 2018
     16,676       6,003  
Exercise Price: $11.50
                
Tecnoglass, Inc.
                
Expiration: December 2016
     45,477       263,767  
Exercise Price: $8.00 (h)
                
Tempus Applied Solutions Holdings, Inc.
                
Expiration: July 2020
     60,197       19,263  
Exercise Price: $11.50
                
Terrapin 3 Acquisition Corp.
                
Expiration: June 2019
     62,138       24,265  
Exercise Price: $11.50
                
Wheeler Real Estate Investment Trust, Inc.
                
Expiration: December 2018
     84,211       0  
Exercise Price: $4.75 (Acquired 1/24/2014, Cost $0) (c)(f)(g)
                
Expiration: April 2019
     7,523       376  
Exercise Price: $5.50
                
Total Warrants (Cost $195,275)
             432,597  
                   
                   
RIGHTS - 0.04% (a)
                
CB Pharma Acquisition Corp. (h)
     23,814       7,144  
DT Asia Investments, Ltd. (h)
     79,818       11,175  
Garnero Group Acquisition Co. (h)
     139,951       30,789  
Sino Mercury Acquisition Corp.
     33,634       17,153  
Total Rights (Cost $92,428)
             66,261  
                   
                   
MONEY MARKET FUNDS - 6.98%
                
Fidelity Institutional Government Portfolio - Class I, 0.010% (e)
     5,752,932       5,752,932  
Fidelity Institutional Tax-Exempt Portfolio - Class I, 0.010% (e)
     5,752,931       5,752,931  
Total Money Market Funds (Cost $11,505,863)
             11,505,863  
                   
Total Investments (Cost $165,777,414) - 99.93%
             164,834,961  
Other Assets in Excess of Liabilities - 0.07%
             122,084  
TOTAL NET ASSETS - 100.00%
           $ 164,957,045  
                   
Percentages are stated as a percent of net assets.
                
                   
(a)
Non-income producing security.
                
(b)
The coupon rates shown represent the rates at September 30, 2015.
          
(c)
Fair valued securities. The total market value of these securities was $10,444,091,
          
 
representing 6.33% of net assets.
                
(d)
Default or other conditions exist and the security is not presently accruing income.
          
(e)
The rate shown represents the 7-day yield at September 30, 2015.
                
(f)
Illiquid securities. The total market value of these securities was $10,444,091,
          
 
representing 6.33% of net assets.
                
(g)
Restricted security.
                
(h)
Foreign-issued security.
                
 
 
 
 
 
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 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, liquidation claims and warrants 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 September 30, 2015 in valuing the Fund's investments:
                         
   
Quoted Prices in Active
    
Significant Other
              
   
Markets for Identical
    
Observable Inputs
    
Unobservable Inputs
        
   
Investments (Level 1)*
    
(Level 2)*
    
(Level 3)**
    
Total
  
Investment Companies
   $ 87,460,168     $ 89,776     $ 348,000     $ 87,897,944  
Preferred Stocks
                                
    Real Estate Investment Trusts
     143,046       -       5,870,034       6,013,080  
Common Stocks
                                
    Consumer Finance
     5,626,463       -       -       5,626,463  
    Food Products
     140,737       -       -       140,737  
    Hotels, Restaurants & Leisure
     88,040       -       -       88,040  
    Insurance
     14,340,755       -       -       14,340,755  
    IT Services
     97,102       -       -       97,102  
    Marine
     33,657       -       -       33,657  
    Professional Services
     3,272,256       -       -       3,272,256  
    Real Estate Investments Trusts
     15,098,839       -       -       15,098,839  
    Special Purpose Acquisition Vehicle
     3,436,436       6,272,913       -       9,709,349  
Liquidation Claims
     -       -       2,803,496       2,803,496  
Convertible Bonds
     -       3,139,517       -       3,139,517  
Corporate Bonds
     -       22,500       -       22,500  
Corporate Notes
     3,146,505       -       -       3,146,505  
Promissory Notes
     -       -       1,400,000       1,400,000  
Warrants
     290,070       142,466       61       432,597  
Rights
     47,942       18,319       -       66,261  
Money Market Funds
     11,505,863       -       -       11,505,863  
Total
   $ 144,727,879     $ 9,685,491     $ 10,421,591     $ 164,834,961  
                                 
* Transfers between Levels are recognized at the end of the reporting period.
                  
**The Fund measures Level 3 activity as of the beginning and end of each financial reporting period.
          
                                 
Transfers between Level 1 and Level 2 securities as of September 30, 2015 resulted from securities priced previously with an official close price (Level 1 securities) or on days where there
is not an official close price the bid price is used (Level 2 securities). Transfers as of September 30, 2015 are summarized in the table below:
                                 
                                 
Transfers into Level 1
                                
Common Stock
                                
    Special Purpose Acquisition Vehicle
   $ 955,290                          
Warrants
     384                          
Transfers out of Level 1
                                
Investment Companies
     (89,776 )                        
Common Stock
                                
    Special Purpose Acquisition Vehicle
     (1,510,542 )                        
Net transfers in and/or out of Level 1
   $ (644,644 )                        
                                 
Transfers into Level 2
                                
Investment Companies
     89,776                          
Common Stock
                                
    Special Purpose Acquisition Vehicle
   $ 1,510,542                          
Transfers out of Level 2
                                
Common Stock
                                
    Special Purpose Acquisition Vehicle
     (955,290 )                        
Warrants
     (384 )                        
Net transfers in and/or out of Level 2
   $ 644,644                          
                                 
                                 
 
 
 
 

Special Opportunities Fund
          
           
           
The fair value of derivative instruments as reported within the Schedule of Investments as of September 30, 2015:
           
           
Derivatives not accounted
for as hedging instruments
  
Statement of Assets &
Liabilities Location
  
Value
  
Equity Contracts - Warrants
  
Investments, at value
   $ 432,597  
             
The effect of derivative instruments on the Statement of Operations for the period ended September 30, 2015:
             
     
Amount of Realized Loss on Derivatives Recognized in Income
      
Derivatives not accounted for
as hedging instruments
  
Statement of Operations
Location
  
Value
  
Equity Contracts - Warrants
  
Net Realized Loss
   $ (177,830 )
                                                                                                      on Investments
        
             
    Change in Unrealized Appreciation on Derivatives Recognized in Income    
Derivatives not accounted for
as hedging instruments
  
Statement of Operations
Location
  
Total
  
Equity Contracts - Warrants
  
Net change in unrealized
   $ 358,817  
   
                                                                             appreciation of investments
  
             
 
 
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
12/31/2014
    
 
 
Acquisitions
    
 
 
Dispositions
    
 
 
Realized
Gain
(Loss)
    
Change
in unrealized appreciation (depreciation)
    
Transfers
 into / (out of)
Level 3
    
Balance
as of
9/30/2015
  
Closed End Funds
   $ 163,146     $ -     $ (191,893 )   $ 191,893     $ (163,146 )   $ -     $ -  
Auction Rate Preferred
  Securities
     6,381,563       -       (6,700,000 )     720,750       (54,313 )     -       348,000  
Preferred Stocks
     5,806,162       -       -       -       63,872       -       5,870,034  
Common Stocks
     228,146       4,175       -       -       118,856       (351,177 )     -  
Liquidation Claims
     2,842,434       -       -       -       (38,938 )     -       2,803,496  
Promissory Notes
     2,000,000       -       (600,000 )     -       -       -       1,400,000  
Warrants
     69       -       -       -       (8 )     -       61  
    $ 17,421,520     $ 4,175     $ (7,491,893 )   $ 912,643     $ (73,677 )   $ (351,177 )   $ 10,421,591  
                                                         
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 September 30, 2015:
                                  
                                                         
   
Fair Value
September 30,
2015
 
 
 
 
 
Valuation
 Methodologies
 
 
 
Unobservable
Input(1)
Impact
to Valuation
from an
 increase in
Input(2)
Auction Rate Preferred
  Securities
 
$           348,000
  
 
Market
Comparables/
 Cost
Comparability
Adjustments/ Broker
Indications/ Company
Announcements
 
 
Increase
Preferred Stocks
  
 
$        5,870,034
  
 
Cost
Market Assessments/
 Financial
Assessements
 
 
Increase
Liquidation Claims
 
$        2,803,496
  
Market
Transactions
Approach
 
Broker Bids
 
Increase
Promissory Notes
 
$        1,400,000
  
 
 
Cost
Terms of the Note/
Financial
Assessements/
Company
Announcements
 
 
Increase
Warrants
  
 
$                    61
  
Market
Transactions
 Approach
Discount to Market
Price for Share
Restrictions
Decrease
                 
 
(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 September 30, 2015 was as follows*:
 
Cost of investments
   $ 165,777,414  
Gross unrealized appreciation on
      investments 
     12,568,251  
Gross unrealized depreciation  on
      investments
     (13,510,704 )
Net unrealized depreciation  
   $ (942,453 )
 
*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.
 
 
 
 
 
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  11/18/15                                                                                                                                               



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  11/18/15                                                                                                                                      

 
 
By (Signature and Title) /s/ Thomas Antonucci                                                                                                                                                               
                                           Thomas Antonucci, Chief Financial Officer

 
Date 11/18/15