nvq
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 811-21969
The GDL Fund (formerly, The Gabelli Global Deal Fund)
(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
(Name and address of agent for service)
Registrants telephone number, including area code: 1-800-422-3554
Date of fiscal year end: December 31
Date of reporting period: March 31, 2011
Form N-Q is to be used by management investment companies, other than small business investment
companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the
Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant
to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use
the information provided on Form N-Q in its regulatory, disclosure review, inspection, and
policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and the Commission will
make this information public. A registrant is not required to respond to the collection of
information contained in Form N-Q unless the Form displays a currently valid Office of Management
and Budget (OMB) control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the burden to the
Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has
reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Schedule of Investments.
The Schedule(s) of Investments is attached herewith.
The GDL Fund
First Quarter Report
March 31, 2011
Mario J.
Gabelli, CFA
To Our Shareholders,
During the first quarter of 2011, The GDL Funds (the Fund) net asset value (NAV) total
return was 3.5% compared with the 3 Month U.S. Treasury Bill Index of 0.03%. The total return for
the Funds publicly traded shares was 3.6% during the first quarter of 2011.
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Enclosed is the investment portfolio as of March 31, 2011. |
Comparative Results
Average Annual Returns through March 31, 2011 (a) (Unaudited)
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Since |
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Inception |
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Quarter |
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1 Year |
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3 Year |
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(01/31/07) |
GDL Fund |
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NAV Total Return (b) |
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3.50 |
% |
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5.95 |
% |
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3.00 |
% |
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2.76 |
% |
Investment Total Return (c) |
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3.60 |
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3.93 |
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4.11 |
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(0.24 |
) |
3 Month U.S. Treasury Bill Index |
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0.03 |
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0.14 |
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0.40 |
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1.35 |
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(a) |
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Returns represent past performance and do not guarantee future results. Investment returns and
the principal value of an investment will fluctuate. When shares are sold, they may be worth more
or less than their original cost. Current performance may be lower or higher than the performance
data presented. Visit www.gabelli.com for performance information as of the most recent month end.
Performance returns for periods of less than one year are not annualized. Investors should
carefully consider the investment objectives, risks, charges, and expenses of the Fund before
investing. The 3 Month U.S. Treasury Bill Index is comprised of a single issue purchased at the
beginning of the month and held for a full month. At the end of the month, that issue is sold and
rolled into the outstanding Treasury Bill that matures closest to, but not beyond three months from
the re-balancing date. To qualify for selection, an issue must have settled on or before the
re-balancing (month end) date. Dividends are considered reinvested except for the 3 Month U.S.
Treasury Bill Index. You cannot invest directly in an index. |
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(b) |
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Total returns and average annual returns reflect changes in the NAV per share and reinvestment
of distributions at NAV on the ex-dividend date and are net of expenses. Since inception return is
based on an initial NAV of $19.06. |
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(c) |
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Total returns and average annual returns reflect changes in closing market values on the New
York Stock Exchange and reinvestment of distributions. Since inception return is based on an
initial offering price of $20.00. |
We have separated the portfolio managers commentary from the financial statements and investment
portfolio due to corporate governance regulations stipulated by the Sarbanes-Oxley Act of 2002. We
have done this to ensure that the content of the portfolio managers commentary is unrestricted.
The financial statements and investment portfolio are mailed separately from the commentary. Both
the commentary and the financial statements, including the portfolio of investments, will be
available on our website at www.gabelli.com.
THE GDL FUND
SCHEDULE OF INVESTMENTS
March 31, 2011 (Unaudited)
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Market |
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Shares |
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Value |
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COMMON STOCKS 82.4% |
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Aerospace and Defense 0.1% |
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77,000 |
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The Allied Defense Group Inc. |
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$ |
272,195 |
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Aviation: Parts and Services 0.1% |
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12,000 |
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Ladish Co. Inc. |
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655,800 |
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Business Services 7.2% |
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5,000 |
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Acxiom Corp. |
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71,750 |
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90,000 |
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Clear Channel Outdoor Holdings Inc.,
Cl. A |
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1,309,500 |
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57,000 |
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Diebold Inc. |
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2,021,220 |
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210,000 |
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Emergency Medical Services Corp.,
Cl. A |
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13,353,900 |
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288,500 |
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GSI Commerce Inc. |
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8,444,395 |
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12,000 |
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GTSI Corp. |
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55,080 |
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370,000 |
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Rural/Metro Corp. |
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6,304,800 |
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2,000 |
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SeLoger.com |
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107,522 |
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31,668,167 |
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Cable and Satellite 0.2% |
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75,000 |
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British Sky Broadcasting Group plc |
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992,604 |
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Computer Hardware 0.0% |
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1,000 |
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SanDisk Corp. |
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46,090 |
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10,000 |
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Seagate Technology plc |
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144,000 |
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190,090 |
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Computer Software and Services 3.8% |
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100,000 |
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Answers Corp. |
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1,040,000 |
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16,000 |
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Hypercom Corp. |
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192,480 |
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8,000 |
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Mentor Graphics Corp. |
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117,040 |
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450,000 |
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NaviSite Inc. |
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2,470,500 |
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5,000 |
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Novell Inc. |
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29,650 |
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21,600 |
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Soapstone
Networks Inc. |
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228 |
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600,000 |
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Terremark Worldwide Inc. |
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11,400,000 |
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95,000 |
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Yahoo! Inc. |
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1,581,750 |
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16,831,648 |
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Consumer Products and Services 5.7% |
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545,000 |
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Alberto-Culver Co. |
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20,312,150 |
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45,000 |
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Avon Products Inc. |
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1,216,800 |
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12,000 |
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Fortune Brands Inc. |
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742,680 |
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29,000 |
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Harman International Industries Inc. |
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1,357,780 |
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8,000 |
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Heelys Inc. |
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18,400 |
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500 |
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Pre-Paid Legal Services Inc. |
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33,000 |
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50,000 |
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RC2 Corp. |
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1,405,000 |
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25,085,810 |
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Diversified Industrial 1.3% |
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36,000 |
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ITT Corp. |
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2,161,800 |
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384,000 |
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Myers Industries Inc. |
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3,813,120 |
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5,974,920 |
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Educational Services 0.0% |
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7,000 |
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Corinthian Colleges Inc. |
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30,940 |
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Electronics 5.9% |
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500 |
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Aleo Solar AG |
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18,119 |
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211,700 |
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Alliance Semiconductor Corp. |
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65,627 |
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105,000 |
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Bel Fuse Inc., Cl. A |
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2,518,950 |
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136,000 |
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Dionex Corp. |
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16,054,800 |
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8,000 |
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International Rectifier Corp. |
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264,480 |
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480,000 |
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L-1 Identity Solutions Inc. |
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5,654,400 |
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25,000 |
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Spectrum Control Inc. |
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492,000 |
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2,800 |
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Technology Research Corp. |
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19,992 |
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52,000 |
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Zoran Corp. |
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540,280 |
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42,000 |
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Zygo Corp. |
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614,040 |
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26,242,688 |
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Energy and Utilities 6.2% |
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280,000 |
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Atlas Energy Inc., Escrow (a) |
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28,000 |
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115,000 |
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Atlas Energy LP |
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2,569,100 |
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10,000 |
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Constellation Energy Group Inc. |
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311,300 |
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340,000 |
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Dragon Oil plc |
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3,261,678 |
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70,000 |
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Dynegy Inc. |
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398,300 |
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242,000 |
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Endesa SA |
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7,498,838 |
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2,500 |
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EXCO
Resources Inc. |
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51,650 |
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20,000 |
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Heritage Oil plc |
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91,151 |
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20,000 |
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Iberdrola Renovables SA |
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86,307 |
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3,000 |
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Massey
Energy Co. |
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205,080 |
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55,000 |
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Nicor Inc. |
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2,953,500 |
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32,000 |
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NorthWestern
Corp. |
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969,600 |
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95,000 |
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NRG Energy Inc. |
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2,046,300 |
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1,000 |
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Origin
Energy Ltd. |
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16,777 |
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25,000 |
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Pride International Inc. |
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1,073,750 |
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115,000 |
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Progress Energy Inc. |
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5,306,100 |
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5,000 |
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SandRidge Energy Inc. |
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64,000 |
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20,000 |
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Seawell Ltd. |
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138,149 |
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15,000 |
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TGC Industries Inc. |
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116,550 |
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500 |
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Western Coal Corp. |
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6,117 |
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100,000 |
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WesternZagros Resources Ltd. |
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56,730 |
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27,248,977 |
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Entertainment 0.4% |
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5,000 |
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Silverleaf Resorts Inc. |
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12,150 |
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102,000 |
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Take-Two Interactive Software Inc. |
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1,567,740 |
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1,579,890 |
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Equipment and Supplies 0.0% |
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1,000 |
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The Middleby Corp. |
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93,220 |
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Financial Services 4.0% |
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12,000 |
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CNA Surety Corp. |
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303,120 |
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2,000 |
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Danvers Bancorp Inc. |
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42,840 |
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250,000 |
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Marshall
& Ilsley Corp. |
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1,997,500 |
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See accompanying notes to schedule of investments
2
THE GDL FUND
SCHEDULE OF INVESTMENTS (Continued)
March 31, 2011 (Unaudited)
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Market |
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Shares |
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Value |
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COMMON STOCKS (Continued) |
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Financial Services (Continued) |
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210,775 |
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NewAlliance
Bancshares Inc. |
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$ |
3,127,901 |
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1,000 |
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NYSE Euronext |
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35,170 |
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326,980 |
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optionsXpress Holdings Inc. |
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5,987,004 |
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230,000 |
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SLM Corp. |
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3,519,000 |
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39,645 |
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The Student Loan Corp., Escrow (a) |
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99,112 |
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623 |
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Wesco Financial Corp. |
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242,472 |
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550,000 |
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Wilmington Trust Corp. |
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2,486,000 |
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17,840,119 |
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Food and Beverage 5.1% |
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175,000 |
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China Huiyuan Juice Group Ltd. |
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118,788 |
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100,000 |
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Danisco A/S |
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12,620,695 |
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|
1,000 |
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Reddy Ice Holdings Inc. |
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3,000 |
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|
440,000 |
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Sara Lee Corp. |
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7,774,800 |
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|
55,000 |
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Wimm-Bill-Dann Foods OJSC,
ADR |
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1,840,850 |
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22,358,133 |
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Health Care 16.4% |
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|
500 |
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Actelion Ltd. |
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28,770 |
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27,000 |
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Alcon Inc. |
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4,468,770 |
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30,000 |
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America Service Group Inc. |
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|
769,200 |
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|
80,000 |
|
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Animal Health International Inc. |
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|
336,000 |
|
|
15,000 |
|
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ArthroCare Corp. |
|
|
500,100 |
|
|
235,000 |
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Beckman Coulter Inc. |
|
|
19,521,450 |
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|
1,000 |
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Biogen Idec Inc. |
|
|
73,390 |
|
|
89,275 |
|
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Caraco Pharmaceutical Laboratories
Ltd. |
|
|
464,230 |
|
|
10,000 |
|
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Celera Corp. |
|
|
81,100 |
|
|
22,000 |
|
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Cephalon Inc. |
|
|
1,667,160 |
|
|
73,000 |
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Clinical Data Inc. |
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|
2,211,900 |
|
|
2,000 |
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Enzon Pharmaceuticals Inc. |
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|
21,800 |
|
|
350,000 |
|
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Genzyme Corp. |
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|
26,652,500 |
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|
44,500 |
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Indevus Pharmaceuticals Inc.,
Escrow (a) |
|
|
48,950 |
|
|
3,000 |
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Life Technologies Corp. |
|
|
157,260 |
|
|
750,000 |
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Q-Med AB |
|
|
9,387,031 |
|
|
202,500 |
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Smith & Nephew plc |
|
|
2,283,712 |
|
|
33,000 |
|
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Talecris Biotherapeutics Holdings
Corp. |
|
|
884,400 |
|
|
16,000 |
|
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TomoTherapy Inc. |
|
|
73,120 |
|
|
20,000 |
|
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Trimeris Inc. |
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|
50,200 |
|
|
170,000 |
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WuXi PharmaTech (Cayman) Inc.,
ADR |
|
|
2,628,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
72,309,243 |
|
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Hotels and Gaming 0.0% |
|
|
|
|
|
1,000 |
|
|
MGM Resorts International |
|
|
13,150 |
|
|
|
|
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Machinery 5.7% |
|
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|
|
220,000 |
|
|
Bucyrus International Inc. |
|
|
20,119,000 |
|
|
5,000 |
|
|
Sauer-Danfoss Inc. |
|
|
254,650 |
|
|
128,000 |
|
|
Tognum AG |
|
|
4,607,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24,981,229 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Materials 0.1% |
|
|
|
|
|
6,000 |
|
|
CIMPOR Cimentos de Portugal
SGPS SA |
|
|
43,485 |
|
|
5,000 |
|
|
Smurfit-Stone Container Corp. |
|
|
193,250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
236,735 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media 0.5% |
|
|
|
|
|
60,000 |
|
|
APN News & Media Ltd. |
|
|
96,505 |
|
|
68,000 |
|
|
Cablevision Systems Corp., Cl. A |
|
|
2,353,480 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,449,985 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metals and Mining 1.3% |
|
|
|
|
|
28,000 |
|
|
Camino Minerals Corp. |
|
|
9,819 |
|
|
225,000 |
|
|
Consolidated Thompson Iron Mines
Ltd. |
|
|
3,977,824 |
|
|
20,000 |
|
|
Forsys Metals Corp. |
|
|
39,195 |
|
|
80,000 |
|
|
Fronteer Gold Inc. |
|
|
1,209,696 |
|
|
5,000 |
|
|
Lonmin plc |
|
|
136,598 |
|
|
1,000 |
|
|
Lundin Mining Corp., Toronto |
|
|
8,303 |
|
|
9,000 |
|
|
Xstrata plc |
|
|
210,360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,591,795 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Publishing 0.0% |
|
|
|
|
|
136,000 |
|
|
SCMP Group Ltd. |
|
|
29,373 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate 0.0% |
|
|
|
|
|
5,000 |
|
|
ECO Business-Immobilien AG |
|
|
47,809 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate Investment Trusts 0.1% |
|
|
|
|
|
16,000 |
|
|
Nationwide Health Properties Inc. |
|
|
680,480 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail 3.2% |
|
|
|
|
|
470,000 |
|
|
Bulgari SpA |
|
|
8,146,169 |
|
|
103,000 |
|
|
Caseys General Stores Inc. |
|
|
4,017,000 |
|
|
11,000 |
|
|
Dollar Thrifty Automotive Group
Inc. |
|
|
734,030 |
|
|
270,000 |
|
|
J. Crew Group Inc., Escrow (a) |
|
|
0 |
|
|
46,000 |
|
|
Massmart Holdings Ltd. |
|
|
953,455 |
|
|
2,000 |
|
|
Regis Corp. |
|
|
35,480 |
|
|
8,000 |
|
|
Retail Ventures Inc. |
|
|
138,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,024,134 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Semiconductors 1.4% |
|
|
|
|
|
2,500 |
|
|
LTX-Credence Corp. |
|
|
22,825 |
|
|
450,000 |
|
|
Verigy Ltd. |
|
|
6,340,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,363,325 |
|
|
|
|
|
|
|
|
|
See accompanying notes to schedule of investments
3
THE GDL FUND
SCHEDULE OF INVESTMENTS (Continued)
March 31, 2011 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market |
|
Shares |
|
|
|
|
Value |
|
|
|
|
|
Specialty Chemicals 5.4% |
|
|
|
|
|
22,000 |
|
|
Airgas Inc. |
|
$ |
1,461,240 |
|
|
30,000 |
|
|
Ashland Inc. |
|
|
1,732,800 |
|
|
155,000 |
|
|
The Lubrizol Corp. |
|
|
20,763,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23,957,840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications 7.3% |
|
|
|
|
|
700,000 |
|
|
Asia Satellite Telecommunications
Holdings Ltd. |
|
|
1,304,870 |
|
|
380,000 |
|
|
Atheros Communications Inc. |
|
|
16,967,000 |
|
|
24,000 |
|
|
BCE Inc. |
|
|
872,160 |
|
|
215,000 |
|
|
Hughes Communications Inc. |
|
|
12,829,050 |
|
|
12,000 |
|
|
Portugal Telecom SGPS SA |
|
|
138,499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32,111,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation 1.0% |
|
|
|
|
|
5,000 |
|
|
AirTran Holdings Inc. |
|
|
37,250 |
|
|
190,000 |
|
|
K-Sea Transportation Partners LP |
|
|
1,554,200 |
|
|
201,600 |
|
|
Vector Aerospace Corp. |
|
|
2,667,899 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,259,349 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL COMMON STOCKS |
|
|
364,121,227 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WARRANTS 0.0% |
|
|
|
|
|
|
|
|
Metals and Mining 0.0% |
|
|
|
|
|
220 |
|
|
Kinross Gold Corp., Cl. D,
expire 09/17/14 |
|
|
613 |
|
|
|
|
|
|
|
|
|
|
Principal |
|
|
|
|
|
|
|
Amount |
|
|
|
|
|
|
|
|
|
|
|
CONVERTIBLE CORPORATE BONDS 1.0% |
|
|
|
|
|
|
|
|
Aerospace 0.1% |
|
|
|
|
$ |
500,000 |
|
|
GenCorp Inc., Sub. Deb. Cv.,
4.063%, 12/31/39 |
|
|
500,625 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computer Hardware 0.9% |
|
|
|
|
|
4,000,000 |
|
|
SanDisk Corp., Cv.,
1.000%, 05/15/13 |
|
|
3,945,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CONVERTIBLE
CORPORATE BONDS |
|
|
4,445,625 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CORPORATE BONDS 0.1% |
|
|
|
|
|
|
|
|
Energy and Utilities 0.1% |
|
|
|
|
|
600,000 |
|
|
Texas Competitive Electric Holdings
Co. LLC, Ser. B (STEP),
10.250%, 11/01/15 |
|
|
352,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GOVERNMENT OBLIGATIONS 16.5% |
|
|
|
|
|
72,810,000 |
|
|
U.S. Treasury Bills,
0.125% to 0.210%,
05/19/11 to 09/22/11 (b) |
|
|
72,792,086 |
|
|
|
|
|
|
|
|
|
TOTAL INVESTMENTS 100.0% |
|
|
|
|
(Cost $438,053,040) |
|
$ |
441,712,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate tax cost |
|
$ |
439,599,855 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross unrealized appreciation |
|
$ |
15,187,149 |
|
|
|
|
|
Gross unrealized depreciation |
|
|
(13,074,953 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized appreciation/depreciation |
|
$ |
2,112,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market |
|
Shares |
|
|
|
|
Value |
|
|
|
|
|
SECURITIES SOLD SHORT (1.4)% |
|
|
|
|
|
|
|
|
Financial Services (1.4)% |
|
|
|
|
|
333,520 |
|
|
The Charles Schwab Corp. |
|
$ |
6,013,366 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL SECURITIES SOLD SHORT |
|
|
|
|
(Proceeds received $6,053,795) |
|
$ |
6,013,366 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate proceeds |
|
$ |
6,053,795 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross unrealized appreciation |
|
$ |
404,290 |
|
|
|
|
|
Gross unrealized depreciation |
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized appreciation/depreciation |
|
$ |
404,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal |
|
|
|
|
Settlement |
|
|
Unrealized |
|
Amount |
|
|
|
|
Date |
|
|
Depreciation |
|
|
|
|
|
FORWARD FOREIGN EXCHANGE CONTRACTS |
|
|
|
|
|
|
|
|
|
46,550,000 |
(c) |
|
Deliver Danish Krone in
exchange for United States
Dollars 8,737,190(d) |
|
|
05/06/11 |
|
|
$ |
(105,387 |
) |
|
19,950,000 |
(c) |
|
Deliver Danish Krone in
exchange for United States
Dollars 3,775,563(d) |
|
|
05/06/11 |
|
|
|
(14,112 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL FORWARD FOREIGN
EXCHANGE CONTRACTS |
|
|
|
|
|
|
(119,499 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to schedule of investments.
4
THE GDL FUND
SCHEDULE OF INVESTMENTS (Continued)
March 31, 2011 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized |
|
Notional |
|
|
|
|
Termination |
|
|
Appreciation/ |
|
Amount |
|
|
|
|
Date |
|
|
Depreciation |
|
|
|
|
|
EQUITY CONTRACT FOR DIFFERENCE
SWAP AGREEMENTS |
|
|
|
|
|
|
|
|
$ |
198,333 |
|
|
|
|
|
|
|
|
|
|
|
(100,000 Shares) |
|
Gulf Keystone Petroleum
Ltd. |
|
|
06/27/11 |
|
|
$ |
44,616 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,717 |
|
|
|
|
|
|
|
|
|
|
|
(1,000 Shares) |
|
J Sainbury plc |
|
|
06/27/11 |
|
|
|
(341 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY CONTRACT
FOR DIFFERENCE SWAP
AGREEMENTS |
|
|
|
|
|
|
44,275 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
|
Security fair valued under procedures established by the Board of Trustees. The procedures may
include reviewing available financial information about the company and reviewing the valuation of
comparable securities and other factors on a regular basis. At March 31, 2011, the market value of
the fair valued security amounted to $176,062 or 0.04% of total investments. |
|
(b) |
|
At March 31, 2011, $15,500,000 of the principal amount was pledged as collateral for securities
sold short and forward foreign exchange contracts. |
|
(c) |
|
Principal amount denoted in Danish Krone. |
|
(d) |
|
At March 31, 2011, the Fund has entered into forward foreign exchange contracts with State
Street Bank and Trust Co. |
|
|
|
Non-income producing security. |
|
|
|
Represents annualized yield at date of purchase. |
|
ADR |
|
American Depositary Receipt |
|
OJSC |
|
Open Joint Stock Company |
|
STEP |
|
Step coupon bond. The rate disclosed is that in effect at March 31, 2011. |
|
|
|
|
|
|
|
|
|
|
|
% of |
|
|
|
|
|
|
Market |
|
|
Market |
|
Geographic Diversification |
|
Value |
|
|
Value |
|
North America |
|
|
84.7 |
% |
|
$ |
373,924,887 |
|
Europe |
|
|
12.0 |
|
|
|
52,898,869 |
|
Asia/Pacific |
|
|
2.4 |
|
|
|
10,535,014 |
|
Africa/Middle East |
|
|
0.7 |
|
|
|
3,261,678 |
|
South Africa |
|
|
0.2 |
|
|
|
953,454 |
|
Latin America |
|
|
0.0 |
|
|
|
138,149 |
|
|
|
|
|
|
|
|
Total Investments |
|
|
100.0 |
% |
|
$ |
441,712,051 |
|
|
|
|
|
|
|
|
See accompanying notes to schedule of investments.
5
THE GDL FUND
NOTES TO SCHEDULE OF INVESTMENTS (Unaudited)
The Funds financial statements are prepared in accordance with U.S. generally accepted
accounting principles (GAAP), which may require the use of management estimates and assumptions.
Actual results could differ from those estimates. The following is a summary of significant
accounting policies followed by the Fund in the preparation of its financial statements.
Security Valuation. Portfolio securities listed or traded on a nationally recognized securities
exchange or traded in the U.S. over-the-counter market for which market quotations are readily
available are valued at the last quoted sale price or a markets official closing price as of the
close of business on the day the securities are being valued. If there were no sales that day, the
security is valued at the average of the closing bid and asked prices or, if there were no asked
prices quoted on that day, then the security is valued at the closing bid price on that day. If no
bid or asked prices are quoted on such day, the security is valued at the most recently available
price or, if the Board of Trustees (the Board) so determines, by such other method as the Board
shall determine in good faith to reflect its fair market value. Portfolio securities traded on more
than one national securities exchange or market are valued according to the broadest and most
representative market, as determined by Gabelli Funds, LLC (the Adviser).
Portfolio securities primarily traded on a foreign market are generally valued at the
preceding closing values of such securities on the relevant market, but may be fair valued pursuant
to procedures established by the Board if market conditions change significantly after the close of
the foreign market, but prior to the close of business on the day the securities are being valued.
Debt instruments with remaining maturities of sixty days or less that are not credit impaired are
valued at amortized cost, unless the Board determines such amount does not reflect the securities
fair value, in which case these securities will be fair valued as determined by the Board. Debt
instruments having a maturity greater than sixty days for which market quotations are readily
available are valued at the average of the latest bid and asked prices. If there were no asked
prices quoted on such day, the security is valued using the closing bid price. U.S. government
obligations with maturities greater than sixty days are normally valued using a model that
incorporates market observable data such as reported sales of similar securities, broker quotes,
yields, bids, offers, and reference data. Certain securities are valued principally using dealer
quotations. Futures contracts are valued at the closing settlement price of the exchange or board
of trade on which the applicable contract is traded.
Securities and assets for which market quotations are not readily available are fair valued as
determined by the Board. Fair valuation methodologies and procedures may include, but are not
limited to: analysis and review of available financial and non-financial information about the
company; comparisons with the valuation and changes in valuation of similar securities, including a
comparison of foreign securities with the equivalent U.S. dollar value ADR securities at the close
of the U.S. exchange; and evaluation of any other information that could be indicative of the value
of the security.
The inputs and valuation techniques used to measure fair value of the Funds investments are
summarized into three levels as described in the hierarchy below:
|
|
|
Level 1 quoted prices in
active markets for identical securities; |
|
|
|
|
Level 2 other significant observable inputs
(including quoted prices for similar securities, interest rates, prepayment speeds, credit risk,
etc.); and |
|
|
|
|
Level 3 significant unobservable inputs (including the Funds determinations as to
the fair value of investments). |
6
THE GDL FUND
NOTES TO SCHEDULE OF INVESTMENTS (Continued) (Unaudited)
A financial instruments level within the fair value hierarchy is based on the lowest level of
any input both individually and in aggregate that is significant to the fair value measurement. The
inputs or methodology used for valuing securities are not necessarily an indication of the risk
associated with investing in those securities. The summary of the Funds investments in securities
and other financial instruments by inputs used to value the Funds investments as of March 31, 2011
is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Inputs |
|
|
|
|
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
|
|
Quoted |
|
|
Other Significant |
|
|
Significant |
|
|
Market Value |
|
|
|
Prices |
|
|
Observable Inputs |
|
|
Unobservable Inputs |
|
|
at 3/31/11 |
|
INVESTMENTS IN SECURITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS (Market Value): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy and Utilities |
|
$ |
27,220,977 |
|
|
|
|
|
|
$ |
28,000 |
|
|
$ |
27,248,977 |
|
Financial Services |
|
|
17,741,007 |
|
|
|
|
|
|
|
99,112 |
|
|
|
17,840,119 |
|
Health Care |
|
|
72,260,293 |
|
|
|
|
|
|
|
48,950 |
|
|
|
72,309,243 |
|
Retail |
|
|
14,024,134 |
|
|
|
|
|
|
|
0 |
|
|
|
14,024,134 |
|
Other Industries (a) |
|
|
232,698,754 |
|
|
|
|
|
|
|
|
|
|
|
232,698,754 |
|
|
Total Common Stocks |
|
|
363,945,165 |
|
|
|
|
|
|
|
176,062 |
|
|
|
364,121,227 |
|
|
Warrants (a) |
|
|
613 |
|
|
|
|
|
|
|
|
|
|
|
613 |
|
Convertible Corporate Bonds |
|
|
|
|
|
$ |
4,445,625 |
|
|
|
|
|
|
|
4,445,625 |
|
Corporate Bonds |
|
|
|
|
|
|
352,500 |
|
|
|
|
|
|
|
352,500 |
|
U.S. Government Obligations |
|
|
|
|
|
|
72,792,086 |
|
|
|
|
|
|
|
72,792,086 |
|
|
TOTAL INVESTMENTS IN SECURITIES ASSETS |
|
$ |
363,945,778 |
|
|
$ |
77,590,211 |
|
|
$ |
176,062 |
|
|
$ |
441,712,051 |
|
|
INVESTMENTS IN SECURITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES (Market Value): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks Sold Short (a) |
|
$ |
(6,013,366 |
) |
|
$ |
|
|
|
$ |
|
|
|
$ |
(6,013,366 |
) |
|
TOTAL INVESTMENTS IN SECURITIES LIABILITIES |
|
$ |
(6,013,366 |
) |
|
$ |
|
|
|
$ |
|
|
|
$ |
(6,013,366 |
) |
|
OTHER FINANCIAL INSTRUMENTS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS (Unrealized Appreciation):* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY CONTRACT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract for Difference Swap Agreement |
|
$ |
|
|
|
$ |
44,616 |
|
|
$ |
|
|
|
$ |
44,616 |
|
LIABILITIES (Unrealized Depreciation):* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY CONTRACT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract for Difference Swap Agreement |
|
$ |
|
|
|
$ |
(341 |
) |
|
$ |
|
|
|
$ |
(341 |
) |
FOREIGN CURRENCY EXCHANGE CONTRACTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Foreign Exchange Contracts |
|
|
|
|
|
|
(119,499 |
) |
|
|
|
|
|
|
(119,499 |
) |
|
TOTAL OTHER FINANCIAL INSTRUMENTS |
|
$ |
|
|
|
$ |
(75,224 |
) |
|
$ |
|
|
|
$ |
(75,224 |
) |
|
|
|
|
(a) |
|
Please refer to the Schedule of Investments (SOI) for the industry classifications of these
portfolio holdings. |
|
* |
|
Other financial instruments are derivatives reflected in the SOI, such as futures, forwards,
and swaps, which are valued at the unrealized appreciation/depreciation of the instrument. |
The Fund did not have significant transfers between Level 1 and Level 2 during the period
ended March 31, 2011.
7
THE GDL FUND
NOTES TO SCHEDULE OF INVESTMENTS (Continued) (Unaudited)
The following table reconciles Level 3 investments for which significant unobservable inputs
were used to determine fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in unrealized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
appreciation/ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
depreciation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
during the |
|
|
Balance |
|
Accrued |
|
Realized |
|
unrealized |
|
|
|
|
|
|
|
|
|
Transfers |
|
Transfers |
|
Balance |
|
period on Level 3 |
|
|
as of |
|
discounts/ |
|
gain/ |
|
appreciation/ |
|
|
|
|
|
|
|
|
|
into |
|
out of |
|
as of |
|
investments held |
|
|
12/31/10 |
|
(premiums) |
|
(loss) |
|
depreciation |
|
Purchases |
|
Sales |
|
Level 3 |
|
Level 3 |
|
3/31/11 |
|
at 3/31/11 |
|
INVESTMENTS IN SECURITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS (Market Value): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy and Utilities |
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
28,000 |
|
|
$ |
0 |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
28,000 |
|
|
$ |
28,000 |
|
Financial Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
99,112 |
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
99,112 |
|
|
|
99,112 |
|
Health Care |
|
|
48,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
48,950 |
|
|
|
|
|
Retail |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0 |
|
|
|
|
|
|
TOTAL INVESTMENTS IN SECURITIES |
|
$ |
48,950 |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
127,112 |
|
|
$ |
0 |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
176,062 |
|
|
$ |
127,112 |
|
|
|
|
|
|
|
The Funds policy is to recognize transfers into and transfers out of Level 3 as of the beginning
of the reporting period. |
Securities Sold Short. The Fund may enter into short sale transactions. Short selling involves
selling securities that may or may not be owned and, at times, borrowing the same securities for
delivery to the purchaser, with an obligation to replace such borrowed securities at a later date.
The proceeds received from short sales are recorded as liabilities and the Fund records an
unrealized gain or loss to the extent of the difference between the proceeds received and the value
of an open short position on the day of determination. The Fund records a realized gain or loss
when the short position is closed out. By entering into a short sale, the Fund bears the market
risk of an unfavorable change in the price of the security sold short. Dividends on short sales are
recorded as an expense by the Fund on the ex-dividend date and interest expense is recorded on the
accrual basis. The broker retains collateral for the value of the open positions, which is adjusted
periodically as the value of the position fluctuates. Security sold short at March 31, 2011 is
reported within the Schedule of Investments.
Foreign Currency Translations. The books and records of the Fund are maintained in U.S. dollars.
Foreign currencies, investments, and other assets and liabilities are translated into U.S. dollars
at the current exchange rates. Purchases and sales of investment securities, income, and expenses
are translated at the exchange rate prevailing on the respective dates of such transactions.
Unrealized gains and losses that result from changes in foreign exchange rates and/or changes in
market prices of securities have been included in unrealized appreciation/depreciation on
investments and foreign currency translations. Net realized foreign currency gains and losses
resulting from changes in exchange rates include foreign currency gains and losses between trade
date and settlement date on investment securities transactions, foreign currency transactions, and
the difference between the amounts of interest and dividends recorded on the books of the Fund and
the amounts actually received. The portion of foreign currency gains and losses related to
fluctuation in exchange rates between the initial purchase trade date and subsequent sale trade
date is included in realized gain/loss on investments.
Foreign Securities. The Fund may directly purchase securities of foreign issuers. Investing in
securities of foreign issuers involves special risks not typically associated with investing in
securities of U.S. issuers. The risks include possible revaluation of currencies, the inability to
repatriate funds, less complete financial information about companies, and possible future adverse
political and economic developments. Moreover, securities of many foreign issuers and their markets
may be less liquid and their prices more volatile than securities of comparable U.S. issuers.
8
THE GDL FUND
NOTES TO SCHEDULE OF INVESTMENTS (Continued) (Unaudited)
Foreign Taxes. The Fund may be subject to foreign taxes on income, gains on investments, or
currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and
recoveries as applicable, based upon its current interpretation of tax rules and regulations that
exist in the markets in which it invests.
Derivative Financial Instruments. The Fund may engage in various portfolio investment strategies by
investing in a number of derivative financial instruments for the purposes of increasing the income
of the Fund, hedging against changes in the value of its portfolio securities and in the value of
securities it intends to purchase, or hedging against a specific transaction with respect to either
the currency in which the transaction is denominated or another currency. Investing in certain
derivative financial instruments, including participation in the options, futures, or swap markets,
entails certain execution, liquidity, hedging, tax, and securities, interest, credit, or currency
market risks. Losses may arise if the Advisers prediction of movements in the direction of the
securities, foreign currency, and interest rate markets is inaccurate. Losses may also arise if the
counterparty does not perform its duties under a contract, or that, in the event of default, the
Fund may be delayed in or prevented from obtaining payments or other contractual remedies owed to
it under derivative contracts. The creditworthiness of the counterparties is closely monitored in
order to minimize these risks. Participation in derivative transactions involves investment risks,
transaction costs, and potential losses to which the Fund would not be subject absent the use of
these strategies. The consequences of these risks, transaction costs, and losses may have a
negative impact on the Funds ability to pay distributions.
The Funds derivative contracts held at March 31, 2011, if any, are not accounted for as
hedging instruments under GAAP.
Swap Agreements. The Fund may enter into equity contract for
difference swap transactions for the purpose of increasing the income of the Fund. The use of swaps
is a highly specialized activity that involves investment techniques and risks different from those
associated with ordinary portfolio security transactions. In an equity contract for difference
swap, a set of future cash flows is exchanged between two counterparties. One of these cash flow
streams will typically be based on a reference interest rate combined with the performance of a
notional value of shares of a stock. The other will be based on the performance of the shares of a
stock. Depending on the general state of short-term interest rates and the returns on the Funds
portfolio securities at the time a swap transaction reaches its scheduled termination date, there
is a risk that the Fund will not be able to obtain a replacement transaction or that the terms of
the replacement will not be as favorable as on the expiring transaction.
The Fund has entered into equity contract for difference swap agreements with The Goldman
Sachs Group, Inc. Details of the swaps at March 31, 2011 are reflected within the Schedule of
Investments and further details as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Unrealized |
|
Notional |
|
Equity Security |
|
Interest Rate/ |
|
Termination |
|
|
Appreciation/ |
|
Amount |
|
Received |
|
Equity Security Paid |
|
Date |
|
|
Depreciation |
|
|
|
Market Value |
|
One Month LIBOR plus 90 bps plus |
|
|
|
|
|
|
|
|
|
|
Appreciation on: |
|
Market Value Depreciation on: |
|
|
|
|
|
|
|
|
$198,333 (100,000 Shares) |
|
Gulf Keystone Petroleum Ltd. |
|
Gulf Keystone Petroleum Ltd. |
|
|
6/27/11 |
|
|
$ |
44,616 |
|
5,717 (1,000 Shares) |
|
J Sainsbury plc |
|
J Sainsbury plc |
|
|
6/27/11 |
|
|
|
(341 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
44,275 |
|
|
|
|
|
|
|
|
|
|
|
|
|
The Funds volume of activity in equity contract for difference swap agreements during
the period ended March 31, 2011 had an average monthly notional amount of approximately $256,648.
9
THE GDL FUND
NOTES TO SCHEDULE OF INVESTMENTS (Continued) (Unaudited)
Futures Contracts. The Fund may engage in futures contracts for the purpose of hedging against
changes in the value of its portfolio securities and in the value of securities it intends to
purchase. Upon entering into a futures contract, the Fund is required to deposit with the broker an
amount of cash or cash equivalents equal to a certain percentage of the contract amount. This is
known as the initial margin. Subsequent payments (variation margin) are made or received by the
Fund each day, depending on the daily fluctuations in the value of the contract, and are included
in unrealized appreciation/depreciation on futures contracts. The Fund recognizes a realized gain
or loss when the contract is closed.
There are several risks in connection with the use of futures contracts as a hedging
instrument. The change in value of futures contracts primarily corresponds with the value of their
underlying instruments, which may not correlate with the change in value of the hedged investments.
In addition, there is the risk that the Fund may not be able to enter into a closing transaction
because of an illiquid secondary market. During the period ended March 31, 2011, the Fund held no
investments in futures contracts.
Forward Foreign Exchange Contracts. The Fund may engage in forward foreign exchange contracts
for the purpose of hedging a specific transaction with respect to either the currency in which the
transaction is denominated or another currency as deemed appropriate by the Adviser. Forward
foreign exchange contracts are valued at the forward rate and are marked-to-market daily. The
change in market value is included in unrealized appreciation/depreciation on foreign currency
translations. When the contract is closed, the Fund records a realized gain or loss equal to the
difference between the value of the contract at the time it was opened and the value at the time it
was closed.
The use of forward foreign exchange contracts does not eliminate fluctuations in the
underlying prices of the Funds portfolio securities, but it does establish a rate of exchange that
can be achieved in the future. Although forward foreign exchange contracts limit the risk of loss
due to a decline in the value of the hedged currency, they also limit any potential gain that might
result should the value of the currency increase. In addition, the Fund could be exposed to risks
if the counterparties to the contracts are unable to meet the terms of their contracts. Forward
foreign exchange contracts at March 31, 2011 are presented within the Schedule of Investments.
The Funds volume of activity in forward foreign currency contracts during the period ended
March 31, 2011 had an average monthly value of approximately $8,650,788.
The following table summarizes the net unrealized appreciation/depreciation of derivatives
held at March 31, 2011 by primary risk exposure:
|
|
|
|
|
|
|
Net Unrealized |
|
|
Appreciation/ |
|
|
Depreciation |
|
Asset Derivatives: |
|
|
Equity Contract |
|
$ |
44,616 |
|
|
|
|
|
Liability Derivatives: |
|
|
|
|
|
Equity Contract |
|
$ |
(341 |
) |
Forward Currency Exchange Contracts |
|
|
(119,499 |
) |
|
|
|
|
Total |
|
$ |
(119,840 |
) |
|
|
|
|
Tax Information. The Fund intends to continue to qualify as a regulated investment company under
Subchapter M of the Internal Revenue Code of 1986, as amended.
Under the current tax law, capital losses related to securities and foreign currency realized
after October 31 and prior to the Funds year end may be treated as occurring on the first day of
the following year. For the year ended December 31, 2010, the Fund deferred capital losses of
$21,970.
10
TRUSTEES AND OFFICERS
THE GDL FUND
One Corporate Center, Rye, NY 10580-1422
Trustees
Mario J. Gabelli, CFA
Chairman & Chief Executive Officer,
GAMCO Investors, Inc.
Anthony J. Colavita
President,
Anthony J. Colavita, P.C.
James P. Conn
Former Managing Director &
Chief Investment Officer,
Financial Security Assurance Holdings Ltd.
Clarence A. Davis
Former Chief Executive Officer,
Nestor, Inc.
Mario dUrso
Former Italian Senator
Arthur V. Ferrara
Former Chairman & Chief Executive Officer,
Guardian Life Insurance Company of America
Michael J. Melarkey
Attorney-at-Law,
Avansino, Melarkey, Knobel & Mulligan
Edward T. Tokar
Senior Managing Director,
Beacon Trust Company
Salvatore J. Zizza
Chairman, Zizza & Co., Ltd.
Officers
Bruce N. Alpert
President
Carter W. Austin
Vice President
Peter D. Goldstein
Chief Compliance Officer
Agnes Mullady
Treasurer & Secretary
Laurissa M. Martire
Vice President & Ombudsman
David I. Schachter
Vice President
Investment Adviser
Gabelli Funds, LLC One
Corporate Center Rye,
New York 10580-1422
Custodian
The Bank of New York Mellon
Counsel
Skadden, Arps, Slate, Meagher & Flom LLP
Transfer Agent and Registrar
American Stock Transfer and Trust Company
Stock Exchange Listing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8.50% |
|
|
Common |
|
Preferred |
NYSE-Symbol: |
|
GDL |
|
GDL PrA |
Shares Outstanding: |
|
|
21,152,710 |
|
|
|
1,920,242 |
|
The Net Asset Value per share appears in the Publicly Traded Funds column, under the heading
Specialized Equity Funds, in Mondays The Wall Street Journal. It is also listed in Barrons
Mutual Funds/Closed End Funds section under the heading
Specialized Equity Funds.
The Net Asset
Value per share may be obtained each day by calling
(914) 921-5070 or visiting www.gabelli.com.
The
NASDAQ symbol for the Net Asset Value is XGDLX.
For general information about the Gabelli Funds, call
800-GABELLI (800-422-3554), fax us at
914-921-5118, visit Gabelli Funds Internet homepage at:
www.gabelli.com, or e-mail us at:
[email protected]
Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940, as
amended, that the Fund may, from time to time, purchase its common shares in the open market when
the Funds shares are trading at a discount of 7.5% or more from the net asset value of the
shares. The Fund may also, from time to time, purchase its preferred shares in the open market
when the preferred shares are trading at a discount to the liquidation value.
THE GDL FUND One Corporate Center Rye, NY 10580-1422 (914) 921-5070 www.gabelli.com First
Quarter Report March 31, 2011 GDL Q1/2011 |
Item 2. Controls and Procedures.
|
(a) |
|
The registrants principal executive and principal financial officers, or persons
performing similar functions, have concluded that the registrants disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as
amended (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 their evaluation of these controls and procedures required by Rule 30a-3(b) under
the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
|
|
(b) |
|
There were no changes in the registrants 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
registrants last fiscal quarter that have materially affected, or are reasonably likely to
materially affect, the registrants internal control over financial reporting. |
Item 3. Exhibits.
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley
Act of 2002 are attached hereto.
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) The GDL Fund (formerly, The Gabelli Global Deal Fund)
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By (Signature and Title)*
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/s/ Bruce N. Alpert
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Bruce N. Alpert, Principal Executive Officer |
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Date 5/31/11
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.
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By (Signature and Title)*
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/s/ Bruce N. Alpert
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Bruce N. Alpert, Principal Executive Officer |
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Date 5/31/11 |
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By (Signature and Title)*
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/s/ Agnes Mullady
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Agnes Mullady, Principal Financial Officer and Treasurer |
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Date 5/31/11 |
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* Print the name and title of each signing officer under his or her signature. |