N-Q 1 a06-5785_1nq.htm QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS

 

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

811-21712

 

 

CLOUGH GLOBAL EQUITY FUND

(Exact name of registrant as specified in charter)

 

1625 Broadway, Suite 2200, Denver, Colorado

 

80202

(Address of principal executive offices)

 

(Zip code)

 

Erin Douglas

Clough Global Equity Fund

1625 Broadway, Suite 2200

Denver, Colorado 80202

(Name and address of agent for service)

 

Registrant's telephone number, including area code:

(303) 623-2577

 

 

Date of fiscal year end:

March 31

 

 

 

 

Date of reporting period:

December 31, 2005

 

 


 

Item 1 – Schedule of Investments.

 

CLOUGH GLOBAL EQUITY FUND

STATEMENT OF INVESTMENTS

December 31, 2005 (Unaudited)

 

 

 

SHARES

 

VALUE

 

COMMON STOCKS 115.76%

 

 

 

 

 

Consumer 1.36%

 

 

 

 

 

China Mobile HK Ltd.

 

35,000

 

$

841,400

 

DSW Inc.-Class A*

 

97,100

 

2,545,962

 

Leapfrog Enterprises Inc.*

 

10,000

 

116,500

 

Station Casinos Inc.

 

9,500

 

644,100

 

Trustreet Properties Inc.

 

80,900

 

1,182,758

 

 

 

 

 

5,330,720

 

 

 

 

 

 

 

ENERGY 32.57%

 

 

 

 

 

Coal 4.71%

 

 

 

 

 

ALPHA Natural Resources Inc.*

 

134,100

 

2,576,061

 

CONSOL Energy Inc.

 

37,800

 

2,463,804

 

Fording Canadian Coal Trust

 

75,900

 

2,623,863

 

KFX Inc.*

 

100,700

 

1,722,977

 

Massey Energy Company

 

90,900

 

3,442,383

 

Peabody Energy Corp.

 

24,800

 

2,044,016

 

Penn Virginia Resources Partners LP

 

32,700

 

1,817,139

 

Westmoreland Coal Company*

 

76,200

 

1,744,980

 

 

 

 

 

18,435,223

 

 

 

 

 

 

 

Exploration & Production 12.26%

 

 

 

 

 

Amerada Hess Corp.

 

17,200

 

2,181,304

 

Anadarko Petroleum Corp.

 

36,500

 

3,458,375

 

BP PLC

 

61,900

 

3,975,218

 

Burlington Resources Inc.

 

42,400

 

3,654,880

 

Canadian Natural Resources Ltd.

 

48,500

 

2,406,570

 

Carrizo Oil and Gas Inc.*

 

20,400

 

504,084

 

Cheniere Energy Inc.*

 

25,000

 

930,500

 

Chesapeake Energy Corp.

 

208,000

 

6,599,840

 

Chevron Corp

 

30,000

 

1,703,100

 

Delta Petroleum Corp.*

 

88,500

 

1,926,645

 

EnCana Corp.

 

67,200

 

3,034,752

 

EOG Resources. Inc.

 

10,000

 

733,700

 

Gazprom ADR

 

23,300

 

1,670,610

 

Lukoil

 

50,000

 

3,011,250

 

Newfield Exploration*

 

20,000

 

1,001,400

 

Nexen Inc.

 

8,600

 

409,618

 

Parallel Petro Corp.*

 

59,000

 

1,003,590

 

PetroHawk Energy Corp.*

 

128,100

 

1,693,482

 

Petroquest Energy Inc.*

 

10,800

 

89,424

 

Range Resources Corp.

 

45,000

 

1,185,300

 

Southwestern Energy*

 

76,000

 

2,731,440

 

Suncor Energy Inc.

 

27,500

 

1,736,075

 

Western Gas Resources Inc.

 

51,000

 

2,401,590

 

 

 

 

 

48,042,747

 

 

 

 

 

 

 

Oil Services & Drillers 15.60%

 

 

 

 

 

Atwood Oceanics Inc.*

 

11,700

 

912,951

 

BJ Services Company

 

85,000

 

3,116,950

 

Cal Dive International Inc.*

 

62,000

 

2,225,180

 

Diamond Offshore Drilling Inc.

 

62,900

 

4,375,324

 

ENSCO International Inc.

 

91,800

 

4,071,330

 

Global SantaFe Corp.

 

50,000

 

2,407,500

 

Grant Prideco Inc.*

 

71,400

 

3,150,168

 

Halliburton Company

 

62,900

 

3,897,284

 

Helmerich & Payne Inc.

 

11,000

 

681,010

 

Hercules Offshore Inc.*

 

36,710

 

1,042,931

 

Hornbeck Offshore Services Inc.*

 

70,000

 

2,289,000

 

Key Energy Services Inc.*

 

11,900

 

160,293

 

Nabors Industries Ltd.*

 

64,900

 

4,916,175

 

National - Oilwell Varco Inc.*

 

39,300

 

2,464,110

 

Noble Corp.

 

49,000

 

3,456,460

 

Oil States International Inc.*

 

10,000

 

316,800

 

Patterson Utility Energy Inc.

 

117,700

 

3,878,215

 

Rowan Cos Inc.

 

46,000

 

1,639,440

 

Schlumberger Ltd.

 

25,700

 

2,496,755

 

Superior Energy Services*

 

10,000

 

210,500

 

Tetra Technologies Inc.*

 

71,550

 

2,183,706

 

 


 

Tidewater Inc.

 

62,000

 

2,756,520

 

TODCO - Class A *

 

98,600

 

3,752,716

 

Transocean Inc.*

 

53,000

 

3,693,570

 

Trican Well Service Ltd.*

 

10,000

 

481,700

 

Veritas DGC Inc.*

 

15,000

 

532,350

 

 

 

 

 

61,108,938

 

 

 

 

 

127,586,908

 

 

 

 

 

 

 

FINANCE 18.94%

 

 

 

 

 

Banks 9.93%

 

 

 

 

 

77 Bank Ltd.

 

393,000

 

2,985,654

 

Banco Bradesco S.A.

 

5,600

 

163,240

 

Bank of Ireland

 

12,800

 

201,623

 

Bank of Kyoto Ltd.

 

205,000

 

2,476,895

 

Bank of Yokohama Ltd.

 

430,000

 

3,518,314

 

Brookline Bancorp, Inc.

 

62,500

 

885,625

 

Chiba Kogyo Bank Ltd.*

 

120,000

 

2,625,064

 

Fidelity Bankshares, Inc.

 

36,100

 

1,180,470

 

First Niagra Financial Group Inc.

 

10,000

 

144,700

 

Hokkoku Bank Ltd.

 

210,000

 

988,214

 

ICICI Bank Ltd.-Spon ADR

 

290,400

 

8,363,520

 

Joyo Bank Ltd.

 

598,000

 

3,559,403

 

Mellon Financial

 

7,000

 

239,750

 

Mizuho Financial Group Inc.

 

517

 

4,103,035

 

NewAlliance Bancshares, Inc.

 

89,800

 

1,305,692

 

Shizuoka Bank Ltd.

 

552,000

 

5,532,169

 

Towa Bank Ltd.

 

207,000

 

642,377

 

 

 

 

 

38,915,745

 

 

 

 

 

 

 

Non-Bank Finance 9.01%

 

 

 

 

 

Aiful Corp.

 

12,100

 

1,010,556

 

Apollo Investment Corp.

 

271,100

 

4,860,823

 

Credit Saison Company Ltd.

 

69,600

 

3,475,869

 

Daiwa Securities Group Inc.

 

388,000

 

4,398,474

 

Fannie Mae

 

79,400

 

3,875,514

 

Freddie Mac

 

10,000

 

653,500

 

MCG Capital Corp.

 

160,000

 

2,334,400

 

Nikko Cordial Corp.

 

217,000

 

3,436,968

 

Nissin Company Ltd.

 

500,000

 

1,225,199

 

Nomura Holdings Inc - ADR

 

175,100

 

3,365,422

 

ORIX Corp.

 

9,500

 

2,420,511

 

Ottoman Fund Ltd.*

 

835,000

 

1,583,648

 

Waddell & Reed Financial Inc.-A

 

125,900

 

2,640,123

 

 

 

 

 

35,281,007

 

 

 

 

 

74,196,752

 

 

 

 

 

 

 

Healthcare 2.29%

 

 

 

 

 

Biosphere Medical Inc.*

 

121,100

 

980,910

 

Herbalife Ltd.*

 

16,000

 

520,320

 

Medtronic Inc.

 

14,000

 

805,980

 

Sepracor Inc.*

 

90,000

 

4,644,000

 

Stryker Corp.

 

7,000

 

311,010

 

Sugi Pharmacy Co.

 

15,100

 

720,816

 

Takeda Pharmaceutical Company, Ltd.

 

18,000

 

973,715

 

 

 

 

 

8,956,751

 

 

 

 

 

 

 

Industrial 17.19%

 

 

 

 

 

American Science & Engineering Inc.*

 

55,000

 

3,430,350

 

Bowne & Company Inc.

 

80,000

 

1,187,200

 

Bridgestone Corp.

 

35,000

 

728,548

 

Bunge Ltd.

 

37,100

 

2,100,231

 

Chicago Bridge & Iron Company

 

18,000

 

453,780

 

Dresser-Rand Group Inc.*

 

77,005

 

1,861,981

 

Empresa Brasileira de Aeronautica S.A.

 

202,400

 

7,913,840

 

Fluor Corp.

 

16,000

 

1,236,160

 

Foster Wheeler Ltd.*

 

52,600

 

1,934,628

 

Georgia Gulf Corp.

 

92,000

 

2,798,640

 

Hexcel Corp.*

 

90,700

 

1,637,135

 

Input/Output Inc.*

 

17,300

 

121,619

 

Insituform Technologies-CL A*

 

80,700

 

1,563,159

 

Jacobs Engineering Group Inc.*

 

53,800

 

3,651,406

 

Kokuyo Company, Ltd.

 

224,500

 

3,327,336

 

Magal Security Systems Ltd.*

 

244,826

 

2,142,228

 

Maruichi Steel Tube Ltd.

 

40,000

 

868,238

 

Methanex Corp.

 

301,300

 

5,646,362

 

Nikon Corp.

 

83,000

 

1,309,674

 

Nisshinbo Industries Inc.

 

110,000

 

1,202,221

 

Noritz Corp.

 

54,000

 

893,285

 

 


 

Nova Chemicals Corp.

 

115,900

 

3,871,060

 

Primary Energy Recycling Corp.

 

233,400

 

1,887,277

 

Sasol LTD-Sponsored ADR.

 

87,200

 

3,107,808

 

Tata Motors Ltd.

 

13,500

 

193,995

 

Walter Industries Inc.

 

129,000

 

6,413,880

 

Washington Group International Inc.

 

10,000

 

529,700

 

Willbros Group Inc.*

 

157,900

 

2,280,076

 

 

 

 

 

67,325,902

 

 

 

 

 

 

 

Insurance 10.99%

 

 

 

 

 

Allstate Corp

 

40,000

 

2,162,800

 

American International Group

 

57,300

 

3,909,579

 

Arch Capital Group Ltd.*

 

44,700

 

2,447,325

 

Axis Capital Holdings

 

30,000

 

938,400

 

Bristol West Holdings Inc.

 

140,600

 

2,675,618

 

CNA Financial Corp.*

 

39,000

 

1,276,470

 

Everest Re Group Ltd.

 

12,000

 

1,204,200

 

Hanover Insurance Group Inc.

 

30,600

 

1,278,162

 

Infinity Property & Casualty Corp.

 

44,000

 

1,637,240

 

IPC Holdings Ltd.

 

45,200

 

1,237,576

 

James River Group Inc.*

 

24,000

 

476,400

 

Marsh & McLennan Cos Inc.

 

262,700

 

8,343,352

 

Montpelier Re Holdings Ltd.

 

59,500

 

1,124,550

 

PartnerRe Ltd.

 

60,100

 

3,946,767

 

Platinum Underwriters Holdings

 

122,100

 

3,793,647

 

RenaissanceRe Holdings Ltd.

 

55,400

 

2,443,694

 

St. Paul Travelers Cos Inc.

 

62,000

 

2,769,540

 

Willis Group Holdings Ltd.

 

25,000

 

923,500

 

XL Capital Ltd. *

 

7,000

 

471,660

 

 

 

 

 

43,060,480

 

 

 

 

 

 

 

Media 0.92%

 

 

 

 

 

Asahi Broadcasting Corp.

 

1,000

 

134,645

 

Canadian Satellite Radio-A*

 

76,700

 

970,544

 

eAccess Ltd.

 

3,500

 

2,477,955

 

 

 

 

 

3,583,144

 

Metals & Mining 5.45%

 

 

 

 

 

APEX Silver Mines Ltd.*

 

99,100

 

1,575,690

 

Ivanhoe Mines Ltd.*

 

223,600

 

1,607,684

 

North American Palladium Ltd.*

 

14,000

 

118,300

 

Olin Corp.

 

232,200

 

4,569,696

 

Oregon Steel Mills Inc.*

 

212,000

 

6,237,040

 

Pan American Silver Corp.*

 

56,000

 

1,054,480

 

Phelps Dodge Corp.

 

30,000

 

4,316,100

 

Sherritt International Corp

 

70,000

 

608,172

 

Stillwater Mining Co.*

 

20,000

 

231,400

 

Western Silver Corp.*

 

92,600

 

1,042,676

 

 

 

 

 

21,361,238

 

 

 

 

 

 

 

Real Estate 2.16%

 

 

 

 

 

Daiwa House Industry Company Ltd.

 

260,000

 

4,065,118

 

Goldcrest Company Ltd.

 

11,000

 

995,167

 

Mitsubishi Estate Company Ltd.

 

84,000

 

1,744,955

 

Mitsui Fudosan Company Ltd.

 

81,000

 

1,644,862

 

 

 

 

 

8,450,102

 

 

 

 

 

 

 

Retail 4.44%

 

 

 

 

 

Daimaru Inc.

 

161,000

 

2,323,402

 

Fast Retailing Company Ltd.

 

42,500

 

4,154,867

 

Komeri Company Ltd.

 

33,400

 

1,435,798

 

Lion Corp.

 

155,000

 

992,242

 

Matsumotokiyoshi Co.

 

74,900

 

2,368,806

 

Mitsukoshi Ltd.

 

311,000

 

2,030,439

 

Toppan Forms Company Ltd.

 

153,600

 

2,212,705

 

Wacoal Holdings Corp.

 

30,000

 

406,478

 

Yamada Denki Co. Ltd.

 

11,700

 

1,464,236

 

 

 

 

 

17,388,973

 

 

 

 

 

 

 

Technology 4.57%

 

 

 

 

 

Advanced Energy Industries Inc.*

 

74,800

 

884,884

 

Avnet Inc.*

 

40,000

 

957,600

 

Microsoft Corp.

 

67,700

 

1,770,355

 

News Corp - CL B

 

296,300

 

4,921,543

 

 


 

NTT DoCoMo Inc.

 

172,500

 

2,642,700

 

Oracle Corp.*

 

256,000

 

3,125,760

 

Radvision Ltd.*

 

119,600

 

1,983,291

 

Semitool Inc.*

 

150,000

 

1,632,000

 

 

 

 

 

17,918,133

 

 

 

 

 

 

 

Transportation 5.93%

 

 

 

 

 

American Commercial Lines*

 

49,100

 

1,487,239

 

AMR Corp*

 

103,500

 

2,300,805

 

Central Japan Railway Company

 

48

 

459,895

 

East Japan Railway Company

 

150

 

1,031,457

 

Golar LNG, Ltd.*

 

85,300

 

1,130,225

 

JetBlue Airways Corp.*

 

241,650

 

3,716,577

 

Kamigumi Company Ltd.

 

220,000

 

1,953,027

 

Kirby Corp*

 

12,000

 

626,040

 

Lan Airlines SA-ADR

 

16,400

 

614,672

 

Tokyo Corp.

 

266,000

 

1,880,990

 

US Airways Group Inc.*

 

216,412

 

8,037,542

 

 

 

 

 

23,238,469

 

 

 

 

 

 

 

Utilities 8.95%

 

 

 

 

 

AES Corp.*

 

55,200

 

873,816

 

Aquila Inc.*

 

50,000

 

180,000

 

British Energy Group PLC*

 

231,800

 

2,066,117

 

Dominion Resources Inc.

 

15,400

 

1,188,880

 

Duke Energy Corp.

 

96,500

 

2,648,925

 

Dynegy Inc.*

 

79,000

 

382,360

 

El Paso Corp.

 

171,300

 

2,083,008

 

Exelon Corp.

 

68,700

 

3,650,718

 

FPL Group

 

35,000

 

1,454,600

 

ITC Holdings Corp.

 

39,200

 

1,101,128

 

McDermott International Inc.*

 

42,900

 

1,913,769

 

NRG Energy Inc.*

 

30,000

 

1,413,600

 

PPL Corp.

 

48,000

 

1,411,200

 

Public Service Enterprise Group Inc.

 

107,000

 

6,951,790

 

Reliant Energy Inc.*

 

130,000

 

1,341,600

 

Sempra Energy

 

25,000

 

1,121,000

 

Southern Company

 

26,000

 

897,780

 

Southern Union Company*

 

82,845

 

1,957,627

 

TXU Corp.

 

16,000

 

803,040

 

Williams Cos., Inc.

 

70,000

 

1,621,900

 

 

 

 

 

35,062,858

 

 

 

 

 

 

 

TOTAL COMMON STOCKS
(Cost $394,734,943)

 

 

 

453,460,430

 

 

 

 

 

 

 

EXCHANGE TRADED FUNDS 9.58%

 

 

 

 

 

iShares

 

 

 

 

 

 

 

 

 

 

 

Dow Jones Select Dividend

 

70,000

 

4,288,200

 

MSCI Brazil

 

107,000

 

3,556,680

 

MSCI Canada

 

132,000

 

2,890,800

 

MSCI Emerging Markets

 

93,700

 

8,269,025

 

MSCI Hong Kong

 

590,200

 

7,448,324

 

MSCI Japan

 

180,000

 

2,430,000

 

MSCI Malaysia

 

323,600

 

2,206,952

 

MSCI Pacific

 

28,000

 

2,761,920

 

S&P Latin America 40

 

30,000

 

3,686,100

 

 

 

 

 

 

 

TOTAL EXCHANGE TRADED FUNDS (Cost $34,189,565)

 

 

 

37,538,001

 

 

 

 

 

 

 

PREFERRED STOCK 0.70%

 

 

 

 

 

XL Capital Ltd.

 

122,000

 

2,725,480

 

 

 

 

 

 

 

TOTAL PREFERRED STOCK
(Cost $2,873,368)

 

 

 

2,725,480

 

 

 

 

 

 

 

CLOSED-END FUNDS 0.61%

 

 

 

 

 

India Fund Inc.

 

60,000

 

2,383,800

 

 

 

 

 

 

 

TOTAL CLOSED-END FUNDS
(Cost $1,828,671)

 

 

 

2,383,800

 

 


 

MONEY MARKET MUTUAL FUNDS 0.14%

 

 

 

 

 

J.P. Morgan Prime Money Market Fund

 

548,964

 

548,964

 

 

 

 

 

 

 

TOTAL MONEY MARKET MUTUAL FUNDS
(Cost $548,964)

 

 

 

548,964

 

 

DUE DATE

 

COUPON

 

PRINCIPAL
AMOUNT

 

VALUE

 

CORPORATE BONDS AND NOTES 1.47%

 

 

 

 

 

 

 

Barclays Bank Plc.

 

 

 

 

 

 

 

3/22/2006

 

16.50

%

$

1,000,000

 

999,220

 

Barclays Bank Plc.

 

 

 

 

 

 

 

9/24/2007

 

17.00

%

$

2,000,000

 

2,005,274

 

J Ray Mcdermott

 

 

 

 

 

 

 

12/15/2013

 

11.50

%

$

2,325,000

 

2,755,125

 

 

 

 

 

 

 

 

 

TOTAL CORPORATE BONDS AND NOTES
(Cost $5,735,139)

 

 

 

 

 

5,759,619

 

 

 

 

 

 

 

 

 

U.S. GOVERNMENT & AGENCY OBLIGATIONS 17.25%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States Treasury Bond

 

5.375

%

41,800,000

 

46,966,229

 

2/15/2031**

 

 

 

 

 

 

 

United States Treasury Note

 

3.875

%

21,000,000

 

20,608,728

 

5/15/2010**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS
(Cost $69,210,128)

 

 

 

 

 

67,574,957

 

 

 

 

 

 

 

 

 

PURCHASED PUT OPTIONS 0.29%

 

 

 

 

 

 

 

 

 

 

EXPIRATION
DATE

 

EXERCISE
PRICE

 

NUMBER OF
CONTRACTS

 

VALUE

 

AMEX Natural Gas Index

 

Mar-06

 

370

 

300

 

285,000

 

Energy Select Sector

 

Jan-06

 

54

 

300

 

114,000

 

Energy Select Sector

 

Jan-06

 

50

 

1500

 

153,750

 

Ishares Russell 2000

 

Jan-06

 

62

 

3000

 

30,000

 

Ishares Russell 2000

 

Jan-06

 

64

 

2200

 

66,000

 

Ishares Russell 2000

 

Jan-06

 

66

 

5000

 

400,000

 

Oil Service HOLDRS

 

Jan-06

 

115

 

1500

 

37,500

 

Oil Service HOLDRS

 

Jan-06

 

125

 

300

 

51,000

 

 

 

 

 

 

 

 

 

 

 

TOTAL PUT OPTIONS PURCHASED
(Cost $5,270,598)

 

 

 

 

 

 

 

1,137,250

 

 

 

 

 

 

 

 

 

 

 

TOTAL INVESTMENTS
(Cost $514,391,376)

 

 

 

145.80

%

 

 

571,128,501

 

Liabilities in Excess of Other Assets

 

 

 

-45.80

%

 

 

(179,397,299

)

NET ASSETS

 

 

 

100.00

%

 

 

$

391,731,202

 

 

*Non-income producing security

**Security, or portion of security, is being held as collateral for short sales and written options.

ADR - American Depositary Receipt

 


 

SCHEDULE OF OPTIONS WRITTEN

 

NAME

 

EXPIRATION
DATE

 

EXERCISE
PRICE

 

NUMBER OF
CONTRACTS

 

VALUE

 

 

 

 

 

 

 

 

 

 

 

Energy Select Sector

 

Jan-06

 

45

 

(600

)

$

(6,000

)

Energy Select Sector

 

Jan-06

 

43

 

(1500

)

(3,750

)

Ishares Rusell 2000

 

Jan-06

 

56

 

(3700)

)

(9,250

)

Ishares Rusell 2000

 

Jan-06

 

58

 

(1500

)

(7,500

)

Ishares Rusell 2000

 

Jan-06

 

59

 

(4000

)

(20,000

)

Ishares Rusell 2000

 

Jan-06

 

59

 

(1000

)

(5,000

)

Oil Service HOLDRS

 

Jan-06

 

140

 

(300

)

(9,000

)

Oil Service HOLDRS

 

Jan-06

 

110

 

(300

)

(3,000

)

Oil Service HOLDRS

 

Jan-06

 

95

 

(1500

)

(3,750

)

 

 

 

 

 

 

 

 

 

 

TOTAL PUT OPTIONS WRITTEN
(Premiums Received $1,340,792)

 

 

 

 

 

 

 

(67,250

)

 

SCHEDULE OF SECURITIES SOLD SHORT

 

NAME

 

SHARES

 

VALUE

 

Amazon.Com Inc.*

 

(85,700

)

(4,040,755

)

Carmax Inc.*

 

(127,400

)

(3,526,432

)

CDW Corp

 

(10,000

)

(575,700

)

Comerica Inc.

 

(20,200

)

(1,146,552

)

Countrywide Financial

 

(45,700

)

(1,562,483

)

Dana Corp.

 

(20,000

)

(143,600

)

Dillard’s Inc.

 

(83,000

)

(2,060,060

)

Energy Select Sector

 

(200,000

)

(10,062,000

)

Factset Research Systems Inc.

 

(50,300

)

(2,070,348

)

Fastenal Company

 

(54,800

)

(2,147,612

)

Ford Motor Company

 

(29,100

)

(224,652

)

Frontline Limited

 

(32,400

)

(1,228,608

)

Harley-Davidson Inc

 

(36,600

)

(1,884,534

)

HNI Corp.

 

(15,000

)

(823,950

)

IndyMac Bancorp Inc.

 

(25,000

)

(975,500

)

iShares MSCI Japan

 

(890,000

)

(12,015,000

)

Jefferies Group Inc.

 

(13,000

)

(584,740

)

LandAmerica Financial

 

(35,100

)

(2,190,240

)

Longs Drug Stores Company

 

(58,500

)

(2,128,815

)

MicroStrategy Inc.*

 

(7,000

)

(579,180

)

Polaris Industries Inc.

 

(48,500

)

(2,434,700

)

Posco-ADR

 

(53,700

)

(2,658,687

)

Retail Holdings Trust

 

(125,200

)

(11,957,852

)

Safeway Inc.

 

(15,100

)

(357,266

)

Sears Holding Corp.*

 

(7,900

)

(912,687

)

Timken Co.

 

(96,100

)

(3,077,122

)

Toro Company

 

(25,200

)

(1,103,004

)

Wellsfargo & Company

 

(67,700

)

(4,253,591

)

Winnebago Industries

 

(20,100

)

(668,928

)

 

 

 

 

 

 

TOTAL SECURITIES SOLD SHORT
(Proceeds $75,364,642)

 

 

 

$

(77,394,598

)

 

 

 

 

 

 

Income Tax Information:

 

 

 

 

 

Net unrealized appreciation/depreciation of investments based on federal tax costs were as follows:

 

 

 

 

 

As of December 31, 2005

 

 

 

 

 

Gross appreciation (excess of value over tax cost)

 

 

 

$

65,296,745

 

Gross depreciation (excess of tax cost over value)

 

 

 

(10,576,800

)

Net unrealized appreciation

 

 

 

$

58,754,305

 

Cost of investments for income tax purposes

 

 

 

$

516,408,556

 

 

See Notes to Quarterly Statement of Investments

 


 

Notes to Quarterly Statement of Investments

 

1. SIGNIFICANT ACCOUNTING AND OPERATING POLICIES

 

Clough Global Equity Fund is a closed-end management investment company (the “Fund”) that was organized under the laws of the state of Delaware by an Agreement and Declaration of Trust dated January 25, 2005. The Fund is a non-diversified series with an investment objective to provide a high level of total return. The Declaration of Trust provides that the Trustees may authorize separate classes of shares of beneficial interest.

 

Security Valuation: The net asset value per Share of the Fund is determined no less frequently than daily, on each day that the American Stock Exchange (the “Exchange”) is open for trading, as of the close of regular trading on the Exchange (normally 4:00 p.m. New York time). Trading may take place in foreign issues held by the Fund at times when the Fund is not open for business. As a result, the Fund’s net asset value may change at times when it is not possible to purchase or sell shares of the Fund. Securities held by the fund for which exchange quotations are readily available are valued at the last sale price, or if no sale price or if traded on the over-the-counter market, at the mean of the bid and asked prices on such day. Over-the-counter securities traded on NASDAQ are valued based upon the closing price. Debt securities for which the over-the-counter market is the primary market are normally valued on the basis of prices furnished by one or pricing services at the mean between the latest available bid and asked prices. As authorized by the Trustees, debt securities (other than short-term obligations) may be valued on the basis of valuations furnished by a pricing service which determines valuations based upon market transactions for normal, institutional-size trading units of securities. Short-term obligations maturing within 60 days are valued at amortized cost, which approximates value, unless the Trustees determine that under particular circumstances such method does not result in fair value. Over-the-counter options are valued at the mean between bid and asked prices provided by dealers. Financial futures contracts listed on commodity exchanges and exchange-traded options are valued at closing settlement prices. Securities for which there is no such quotation or valuation and all other assets are valued at fair value in good faith by or at the direction of the Trustees.

 

Foreign Securities: The Fund may invest a portion of its assets in foreign securities. In the event that the Fund executes a foreign security transaction, the Fund will generally enter into a forward foreign currency contract to settle the foreign security transaction. Foreign securities may carry more risk than U.S. securities, such as political, market and currency risks. The accounting records of the Fund are maintained in U.S. dollars. Prices of securities denominated in foreign currencies are translated into U.S. dollars at the closing rates of exchange at period end. Amounts related to the purchase and sale of foreign securities and investment income are translated at the rates of exchange prevailing on the respective dates of such transactions.

 

Options: The Fund may purchase or write (sell) put and call options. One of the risks associated with purchasing an option among others, is that the Fund pays a premium whether or not the option is exercised. Additionally, the Fund bears the risk of loss of premium and change in market value should the counterparty not perform under the contract. Put and call options purchased are accounted for in the same manner as portfolio securities. The cost of securities acquired through the exercise of call options is increased by premiums paid. The proceeds from securities sold through the exercise of put options are decreased by the premiums paid.

 

When the Fund writes an option, an amount equal to the premium received by the Fund is recorded as a liability and is subsequently adjusted to the current value of the option written. Premiums received from writing options that expire unexercised are treated by the Fund on the expiration date as realized gains from investments. The difference between the premium and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or, if the premium is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security or currency in determining whether the Fund has realized a gain or loss. If a put option is exercised, the premium reduces the cost basis of the securities purchased by the Fund. The Fund, as writer of an option, bears the market risk of an unfavorable change in the price of the security underlying the written option. Written and purchased options are non- income producing securities.

 

Short Sales: The Fund may sell a security it does not own in anticipation of a decline in the fair value of that security. When the Fund sells a security short, it must borrow the security sold short and deliver it to the broker-dealer through which it made the short sale. A gain, limited to the price at which the Fund sold the security short, or a loss, unlimited in size, will be recognized upon the termination of the short sale.

 

Securities Transactions and Investment Income: Investment security transactions are accounted for as of trade date. Dividend income is recorded on the ex-dividend date. Interest income, which includes amortization of premium and accretion of discount, is accrued as earned. Realized gains and losses from securities transactions and unrealized appreciation and depreciation of securities are determined using the highest cost basis for both financial reporting and income tax purposes.

 


 

Item 2 - Controls and Procedures.

 

(a)           The registrant’s  Principal Executive Officer and Principal Financial Officer have evaluated the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) within 90 days of this filing and have concluded that the registrant’s disclosure controls and procedures were effective, as of that date.

 

(b)           There was no change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) during registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 3 – Exhibits.

 

Separate certifications for the registrant’s Principal Executive Officer and Principal Financial Officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are attached as Ex99.CERT.

 

2


 

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.

 

 

CLOUGH GLOBAL EQUITY FUND

 

 

By:

/s/ Edmund J. Burke

 

 

Edmund J. Burke

 

President (principal executive
officer)

 

 

 

Date:

March 1, 2006

 

 

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:

/s/ Edmund J. Burke

 

 

Edmund J. Burke

 

President (principal executive
officer)

 

 

 

Date:

March 1, 2006

 

 

 

By:

/s/ Jeremy O. May

 

 

Jeremy O. May

 

Treasurer (principal financial
officer)

 

 

 

Date:

March 1, 2006

 

3