Boston, MA – The Special Opportunities fund (NYSE:SPE) has recently released their semi-annual shareholder report, showcasing their market performance in the first half of 2024. The fund managed to slightly outperform the S&P 500, with a market performance of 15.45% compared to the S&P 500’s 15.29%. This success was attributed to a small narrowing in the discount of 1.28%. Over the first six months of the year, SPE repurchased a significant number of shares, both common and convertible preferred, at a discount, which added value to their Net Asset Value (NAV).

In the report, Phil Goldstein provided key insights on the fund’s activities during the first half of 2024. One notable move was the increase in portfolio allocation to pre-business combination SPACs, which are considered a safer investment due to their backing by T-Bills. This adjustment was made at the expense of reducing allocation to discounted CEFs and BDCs. Goldstein also commented on the NYSE’s proposal to eliminate the requirement for CEF shareholder meetings, expressing concerns about accountability. Another successful outcome was highlighted with CMU and CXH, where agreements were reached for modest self-tenders and liquidity events if discounts do not shrink by a certain date.

Throughout the year, SPE made significant portfolio changes, including selling off shares in certain closed-end funds while acquiring new positions in others. These strategic moves reflect the fund’s commitment to enhancing shareholder value and maximizing returns. The fund also invested in new positions, such as the Australian-based Magellan Global Fund, which was later sold for a profit after a conversion to an open-end fund. Additionally, SPE’s largest investment in an operating company, TPL, received a boost when it was included in the S&P Mid Cap 400 Index.

As SPE continues to navigate the market landscape and make strategic investment decisions, their performance and activist activities have been yielding positive results. With a steady focus on enhancing shareholder value and maximizing returns, the fund remains optimistic about its future prospects. Goldstein’s commentary on potential catalysts for increased stock prices and the fund’s continued efforts to perform well further underscore the commitment to delivering value to shareholders.