N-Q 1 g07289nvq.txt FORM N-Q 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 811-10269 UBS Equity Opportunity Fund, L.L.C. (Exact name of registrant as specified in charter) 299 Park Avenue, 29th Floor New York, NY 10171 (Address of principal executive offices) (Zip code) James M. Hnilo, Esq. UBS Alternative and Quantitative Investments LLC One North Wacker Drive, 32nd Floor Chicago, Illinois 60606 (Name and address of agent for service) Registrant's telephone number, including area code: (312) 525-5000 Date of fiscal year end: December 31 Date of reporting period: September 30, 2010 Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (Sections 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. Section 3507. ITEM 1. SCHEDULE OF INVESTMENTS. The Schedule(s) of Investments is attached herewith. UBS EQUITY OPPORTUNITY FUND, L.L.C. SCHEDULE OF PORTFOLIO INVESTMENTS (UNAUDITED) SEPTEMBER 30, 2010
DOLLAR REALIZED AND AMOUNT OF UNREALIZED FIRST FAIR VALUE % OF GAIN/(LOSS) INITIAL AVAILABLE FOR FIRST MEMBERS' FROM ACQUISITION LIQUIDITY REDEMPTION AVAILABLE INVESTMENT FUND COST FAIR VALUE CAPITAL INVESTMENTS DATE (a) (b) REDEMPTION (b) --------------- ----------- ----------- -------- ------------ ----------- ------------- ---------- -------------- LONG/SHORT EQUITY Alydar QP Fund, L.P. (c) $ 4,531,817 $ 4,640,994 7.90 $ (47,546) 9/1/2008 Quarterly Alysheba QP Fund, L.P. (c) 2,000,000 1,970,339 3.35 (81,344) 9/1/2008 Quarterly Artis Aggressive Growth (Institutional), L.P. (c) 1,183,370 2,378,744 4.05 434,772 9/1/2008 Quarterly Axial Capital Institutional, L.P. (c) 3,500,000 2,867,739 4.88 (155,721) 12/1/2008 Semi-Annually 12/31/2010 2,867,739 Bonanza Liquidating Trust, Class A (d) 687,230 287,928 0.49 (77,530) 4/1/2004 N/A D. Jabro Partners, L.P. (c) 4,380,792 6,623,782 11.27 521,820 1/1/2006 Quarterly Eminence Partners, L.P. (c) 2,955,785 5,920,646 10.08 (759,550) 3/1/2001 Quarterly GCore Capital Partners, L.P. (c) 3,500,000 3,822,335 6.51 30,589 3/1/2009 Quarterly MSG Partners, L.P. (c) 4,483,850 5,220,231 8.89 383,020 1/1/2008 Quarterly North Run Qualified Partners, L.P. (c) 4,376,363 4,735,803 8.06 211,674 1/1/2008 Quarterly Pennant Onshore Qualified, L.P. (c) 766,413 2,538,958 4.32 51,156 1/1/2003 Quarterly Pennant Winward Fund, L.P. (c) 3,696,709 6,202,185 10.56 (2,335) 10/1/2004 Quarterly Pershing Square, L.P. (c) 835,575 2,280,188 3.88 160,148 1/1/2005 Annually Seneca Capital, L.P. (e) 1,060,631 298,121 0.51 114,881 7/1/2004 N/A Seneca Capital, L.P. (e) 976,905 61,069 0.10 52 7/1/2004 N/A Seneca Capital, L.P., SLV (d) 1,387,631 1,291,715 2.20 8,472 7/1/2004 N/A Wesley Capital QP, L.P. (c) 1,483,401 1,537,422 2.62 (55,276) 8/1/2005 Quarterly ----------- ----------- ----- --------- LONG/SHORT EQUITY SUBTOTAL $41,806,472 $52,678,199 89.67% $ 737,282 Redeemed Investment Funds -- -- -- 72,211 ----------- ----------- ----- --------- TOTAL $41,806,472 $52,678,199 89.67% $ 809,493 =========== =========== ===== =========
(a) Available frequency of redemptions after the initial lock-up period, if any. Different tranches may have varying liquidity terms. (b) Investment Funds with no dates or amounts can be redeemed in full. (c) Investment Funds categorized as Level 2 investments. (d) The Investment Fund is in liquidation. In addition to any redemption proceeds that may have already been received, the Fund will continue to receive proceeds periodically as the Investment Fund liquidates its underlying investments. (e) A portion or all of the Fund's interests in the Investment Fund are held in side pockets which have restricted liquidity. UBS EQUITY OPPORTUNITY FUND, L.L.C. SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED) (UNAUDITED) SEPTEMBER 30, 2010 The following is a summary of the inputs used in valuing the Fund's investments at fair value. The inputs or methodology used for valuing the Fund's investments are not necessarily an indication of the risk associated with investing in those investments. The Fund's valuation procedures require evaluation of all relevant factors available at the time the Fund values its portfolio. These relevant factors include the individual Investment Funds' compliance with fair value measurements, price transparency and valuation procedures in place, subscription and redemption activity, level of illiquid securities held, and the existence or absence of redemption restrictions. The Fund's investments are categorized in three levels as disclosed below. Level 1 discloses the amount of investments where the values of those investments are based upon quoted prices in active markets for identical securities. Level 2 discloses the amount of investments where the Fund has the ability to redeem at net asset value as of the September 30, 2010 measurement date, or within one quarter of the measurement date. Level 3 discloses the amount of investments where the Fund does not have the ability to redeem at net asset value within one quarter of the September 30, 2010 measurement date. ASSETS TABLE
TOTAL FAIR VALUE AT SEPTEMBER 30, DESCRIPTION 2010 LEVEL 1 LEVEL 2 LEVEL 3 ----------- ------------- ------- ----------- ---------- Long/Short Equity $52,678,199 $-- $50,739,366 $1,938,833 ----------- --- ----------- ---------- TOTAL ASSETS $52,678,199 $-- $50,739,366 $1,938,833 ----------- --- ----------- ----------
The following is a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value:
CHANGE IN NET TRANSFERS BALANCE AS OF UNREALIZED NET IN AND/OR BALANCE AS OF DECEMBER 31, REALIZED APPRECIATION / PURCHASES / (OUT) OF SEPTEMBER 30, DESCRIPTION 2009 GAIN / (LOSS) DEPRECIATION (SALES) LEVEL 3 2010 ----------- ------------- ------------- -------------- ----------- ------------- ------------- Long/Short Equity $12,031,860 $173,424 $363,176 $(647,340) $(9,982,287) $1,938,833 Total $12,031,860 $173,424 $363,176 $(647,340) $(9,982,287) $1,938,833
Net change in unrealized appreciation/depreciation on Level 3 assets still held as of September 30, 2010 is $55,821. The net transfers in and/or (out) of Level 3 noted above are due to the liquidity of the underlying Investment Funds in relation to the change in the measurement date from December 31, 2009 to September 30, 2010. UBS EQUITY OPPORTUNITY FUND, L.L.C. SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED) (UNAUDITED) SEPTEMBER 30, 2010 PORTFOLIO VALUATION Investment Funds in the long/short equity strategy are generally subject to 30 - 90 day redemption notice periods. Investment Funds representing approximately 4 percent of fair value are side pockets or liquidating trusts where the liquidation of assets is expected over the next 36 months. The remaining approximately 96 percent of the Investment Funds have either initial redemption dates commencing in the future (5 percent) or are available to be redeemed with no restrictions (91 percent), subject to the Investment Funds' liquidity terms, as of the measurement date. Three Investment Funds, with a fair value of $9,982,287, transferred from Level 3 to Level 2 at September 30, 2010. Investment Funds with no current redemption restrictions may be subject to future gates, lock-up provisions or other restrictions, in accordance with their offering documents. The Fund had no unfunded capital commitments as of September 30, 2010. The Fund recognizes transfers into and out of the levels indicated above at the end of the reporting period. Please refer to the June 30, 2010 financial statements for full disclosure on the Fund's portfolio valuation methodology. ITEM 2. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's 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 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. 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) UBS Equity Opportunity Fund, L.L.C. By (Signature and Title)* /s/ William Ferri ---------------------------------------------- William Ferri, Principal Executive Officer Date November 15, 2010 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/ William Ferri ---------------------------------------------- William Ferri, Principal Executive Officer Date November 15, 2010 By (Signature and Title)* /s/ Robert Aufenanger ---------------------------------------------- Robert Aufenanger, Principal Financial Officer Date November 15, 2010 * Print the name and title of each signing officer under his or her signature.