N-Q 1 d82644dnq.htm GDL FUND GDL Fund

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                                                   
(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)

Registrant’s telephone number, including area code:  1-800-422-3554          
Date of fiscal year end:  December 31
Date of reporting period:  September 30, 2015

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

Third Quarter Report — September 30, 2015

   LOGO

Mario J. Gabelli, CFA

Portfolio Manager

To Our Shareholders,

For the quarter ended September 30, 2015, the net asset value (“NAV”) total return of The GDL Fund was (1.7)%, compared with a total return of 0.01% for the Bank of America Merrill Lynch 3 Month U.S. Treasury Bill Index. The total return for the Fund’s publicly traded shares was (2.3)%. The Fund’s NAV per share was $11.83, while the price of the publicly traded shares closed at $9.80 on the New York Stock Exchange (“NYSE”). See below for additional performance information.

Enclosed is the schedule of investments as of September 30, 2015.

Comparative Results

 

Average Annual Returns through September 30, 2015 (a) (Unaudited)

 

           
      Quarter   1 Year   3 Year   5 Year   Since
Inception
(01/31/07)
 

GDL Fund

            

NAV Total Return (b)

     (1.73)%     2.40%     3.42%     3.06%     2.60%  

Investment Total Return (c)

     (2.30)        (1.09)        2.39        2.30        0.94     

Bank of America Merrill Lynch 3 Month U.S. Treasury Bill Index

      0.01         0.02        0.06        0.08        0.83     

 

(a)   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 Bank of America Merrill Lynch 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 not reinvested for the Bank of America Merrill Lynch 3 Month U.S. Treasury Bill Index. You cannot invest directly in an index.

(b)   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.

(c)   Total returns and average annual returns reflect changes in closing market values on the NYSE and reinvestment of distributions. Since inception return is based on an initial offering price of $20.00.

 

 


The GDL Fund

Schedule of Investments — September 30, 2015 (Unaudited)

 

 

Shares

        

Market

Value

 
  

COMMON STOCKS — 77.5%

 
  

Aerospace and Defense — 0.0%

 
  4,000      

Kratos Defense & Security Solutions Inc.†

  $ 16,880   
    

 

 

 
  

Automotive: Parts and Accessories — 1.4%

  

  90,000      

Remy International Inc.

    2,632,500   
  200,000      

The Pep Boys - Manny, Moe & Jack†

    2,438,000   
    

 

 

 
       5,070,500   
    

 

 

 
  

Building and Construction — 1.6%

  

  100,000      

Delclima

    493,893   
  23,000      

Fortune Brands Home & Security Inc.

    1,091,810   
  400,000      

Italcementi SpA

    4,431,632   
  2,801      

Norbord Inc.

    40,166   
    

 

 

 
       6,057,501   
    

 

 

 
  

Business Services — 0.9%

 
  27,108      

Blackhawk Network Holdings Inc.†

    1,149,108   
  10,000      

Chime Communications plc

    54,988   
  92,138      

Clear Channel Outdoor Holdings Inc., Cl. A†

    656,944   
  3,000      

Funespana SA†

    24,639   
  190,000      

GrainCorp Ltd., Cl. A

    1,206,921   
  21,853      

R. R. Donnelley & Sons Co.

    318,184   
  200      

Towers Watson & Co., Cl. A

    23,476   
    

 

 

 
       3,434,260   
    

 

 

 
  

Cable and Satellite — 4.0%

 
  9,000      

AMC Networks Inc., Cl. A†

    658,530   
  110,000      

Cablevision Systems Corp., Cl. A

    3,571,700   
  27,628      

Liberty Global plc, Cl. A†

    1,186,346   
  60,000      

Liberty Global plc, Cl. C†

    2,461,200   
  1,381      

Liberty Global plc LiLAC, Cl. A†

    46,526   
  3,000      

Liberty Global plc LiLAC, Cl. C†

    102,720   
  200,000      

Sky plc

    3,158,611   
  20,000      

Time Warner Cable Inc.

    3,587,400   
  4,000      

Time Warner Inc.

    275,000   
    

 

 

 
       15,048,033   
    

 

 

 
  

Computer Hardware — 0.0%

 
  500      

Data Modul AG

    18,884   
    

 

 

 
  

Computer Software and Services — 5.8%

  

  45,500      

Adept Technology Inc.†

    589,680   
  224,600      

BMC Software Stub†

    11,230   
  300,000      

Dealertrack Technologies Inc.†

    18,948,000   
  67,000      

Dot Hill Systems Corp.†

    651,910   
  19,000      

Envivio Inc.†

    77,710   
  2,000      

Innovation Group plc

    1,180   
  200      

InterXion Holding NV†

    5,416   
  2,500      

Rocket Fuel Inc.†

    11,675   
  2,000      

Solera Holdings Inc.

    108,000   
  40,000      

Yahoo! Inc.†

    1,156,400   
    

 

 

 
            21,561,201   
    

 

 

 

Shares

        

Market

Value

 
  

Consumer Products and Services — 0.4%

  

  105,000      

Avon Products Inc.(a)

  $ 341,250   
  139,000      

Blyth Inc.†

    829,830   
  50,000      

Martha Stewart Living Omnimedia Inc., Cl. A†

    298,000   
    

 

 

 
       1,469,080   
    

 

 

 
  

Diversified Industrial — 2.3%

 
  15,000      

ITT Corp.

    501,450   
  45,000      

Myers Industries Inc.

    603,000   
  33,000      

Precision Castparts Corp.

    7,580,430   
    

 

 

 
       8,684,880   
    

 

 

 
  

Educational Services — 0.0%

 
  44,000      

Corinthian Colleges Inc.†

    42   
    

 

 

 
  

Electronics — 1.3%

 
  190,000      

Alliance Semiconductor Corp.†

    143,450   
  85,900      

Axis Communications AB

    3,547,886   
  76,000      

Bel Fuse Inc., Cl. A

    1,253,240   
  100      

Hubbell Inc., Cl. A

    10,814   
  500      

Pericom Semiconductor Corp.

    9,125   
    

 

 

 
       4,964,515   
    

 

 

 
  

Energy and Utilities — 5.1%

 
  2,000      

AGL Resources Inc.

    122,080   
  170,000      

Alvopetro Energy Ltd.†

    26,752   
  3,300      

Baker Hughes Inc.

    171,732   
  51,700      

BG Group plc

    743,767   
  10,000      

Cameron International Corp.†

    613,200   
  200,000      

Cleco Corp.

    10,648,000   
  72,000      

Endesa SA

    1,515,739   
  460,000      

Gulf Coast Ultra Deep Royalty Trust†

    132,480   
  6,000      

Hawaiian Electric Industries Inc.

    172,140   
  84,000      

Noble Energy Inc.

    2,535,120   
  10,000      

NRG Energy Inc.

    148,500   
  50,000      

Pepco Holdings Inc.

    1,211,000   
  2,000      

TECO Energy Inc.

    52,520   
  7,000      

UIL Holdings Corp.

    351,890   
  50,000      

WesternZagros Resources Ltd.†

    4,683   
  33,000      

Whiting Petroleum Corp.†

    503,910   
    

 

 

 
            18,953,513   
    

 

 

 
  

Entertainment — 0.5%

 
  140,254      

Media General Inc.†

    1,962,153   
  4,000      

SFX Entertainment Inc.†

    2,040   
    

 

 

 
       1,964,193   
    

 

 

 
  

Equipment and Supplies — 0.4%

 
  181,000      

HellermannTyton Group plc

    1,278,130   
  2,500      

The Middleby Corp.†

    262,975   
    

 

 

 
       1,541,105   
    

 

 

 
  

Financial Services — 15.9%

 
  8,000      

BB&T Corp.

    284,800   
  1,000      

City National Corp.

    88,060   
 

 

See accompanying notes to schedule of investments.

 

2


The GDL Fund

Schedule of Investments (Continued) — September 30, 2015 (Unaudited)

 

 

Shares

        

Market

Value

 
  

COMMON STOCKS (Continued)

  

  

Financial Services (Continued)

 
  51,000      

First Niagara Financial Group Inc.

  $ 520,710   
  245,200      

HCC Insurance Holdings Inc.

    18,995,644   
  10,000      

Hilltop Holdings Inc.†

    198,100   
  500      

Home Loan Servicing Solutions Ltd.

    348   
  885,000      

Hudson City Bancorp Inc.

    9,000,450   
  109,449      

National Interstate Corp.

    2,920,099   
  200      

National Penn Bancshares Inc.

    2,350   
  60,000      

Navient Corp.

    674,400   
  65,000      

PartnerRe Ltd.

    9,027,200   
  60,000      

SLM Corp.†

    444,000   
  90,000      

StanCorp. Financial Group Inc.

    10,278,000   
  100,000      

Symetra Financial Corp.

    3,164,000   
  1,000      

The Phoenix Companies Inc.†

    32,990   
  145,000      

Xoom Corp.†

    3,607,600   
    

 

 

 
       59,238,751   
    

 

 

 
  

Food and Beverage — 1.1%

 
  1,310,000      

Parmalat SpA

    3,378,454   
  3,000,000      

Yashili International Holdings Ltd.

    747,092   
    

 

 

 
       4,125,546   
    

 

 

 
  

Health Care — 18.1%

 
  5,000      

Alere Inc.†

    240,750   
  100,000      

Amica Mature Lifestyles Inc.

    1,377,295   
  550,000      

ArthroCare Corp. Stub†

    192,500   
  68,000      

AstraZeneca plc, ADR

    2,163,760   
  15,000      

Audika Groupe

    297,509   
  4,500      

Cigna Corp.

    607,590   
  2,000      

Humana Inc.

    358,000   
  1,000      

ICU Medical Inc.†

    109,500   
  4,000      

Illumina Inc.†

    703,280   
  90,000      

IPC Healthcare Inc.†

    6,992,100   
  235,000      

KYTHERA Biopharmaceuticals Inc.†

    17,620,300   
  1,000      

Laboratory Corp. of America Holdings†

    108,470   
  328,464      

Merge Healthcare Inc.†

    2,332,094   
  6,000      

Mylan NV†

    241,560   
  500      

Perrigo Co. plc

    78,635   
  18,000      

Rhoen Klinikum AG

    509,068   
  130,000      

Sigma-Aldrich Corp.

    18,059,600   
  15,000      

Smith & Nephew plc

    261,629   
  7,500      

Smith & Nephew plc, ADR

    262,500   
  18,000      

Synergetics USA Inc.†

    118,260   
  1,000      

Synergy Health plc†

    32,827   
  226,000      

Thoratec Corp.†

    14,296,760   
  13,000      

WuXi PharmaTech Cayman Inc., ADR†

    561,730   
    

 

 

 
         67,525,717   
    

 

 

 
  

Hotels and Gaming — 1.3%

 
  28,000      

Belmond Ltd., Cl. A†

    283,080   
  1,000      

MGM Resorts International†

    18,450   

Shares

        

Market

Value

 
  315,000      

Strategic Hotels & Resorts Inc.†

  $ 4,343,850   
    

 

 

 
       4,645,380   
    

 

 

 
  

Machinery — 0.4%

 
  6,000      

CNH Industrial NV

    39,053   
  42,000      

Xylem Inc.

    1,379,700   
    

 

 

 
       1,418,753   
    

 

 

 
  

Metals and Mining — 0.5%

 
  85,001      

Alamos Gold Inc., Cl. A

    313,654   
  35,504      

AuRico Metals Inc.†

    17,559   
  3,000      

Osisko Gold Royalties Ltd.

    31,697   
  16,000      

Vulcan Materials Co.

    1,427,200   
    

 

 

 
       1,790,110   
    

 

 

 
  

Publishing — 0.3%

 
  10,000      

Meredith Corp.

    425,800   
  136,000      

SCMP Group Ltd.

    33,079   
  27,000      

The E.W. Scripps Co., Cl. A

    477,090   
    

 

 

 
       935,969   
    

 

 

 
  

Real Estate — 0.0%

 
  3,000      

Conwert Immobilien Invest SE†

    40,528   
    

 

 

 
  

Retail — 0.2%

 
  12,000      

Office Depot Inc.†

    77,040   
  33,500      

World Duty Free SpA†

    382,941   
  10,000      

zulily Inc., Cl. A†

    174,000   
    

 

 

 
       633,981   
    

 

 

 
  

Semiconductors — 6.3%

 
  300,000      

Altera Corp.

    15,024,000   
  45,000      

Atmel Corp.

    363,150   
  76,000      

Broadcom Corp., Cl. A

    3,908,680   
  143,600      

EZchip Semiconductor Ltd.†

    3,612,976   
  20,000      

Integrated Silicon Solution Inc.

    429,800   
    

 

 

 
         23,338,606   
    

 

 

 
  

Specialty Chemicals — 3.2%

 
  250,000      

Alent plc

    1,837,985   
  2,000      

Ashland Inc.

    201,240   
  50,000      

Cytec Industries Inc.

    3,692,500   
  180,000      

OM Group Inc.

    5,920,200   
  7,200      

SGL Carbon SE†

    114,364   
    

 

 

 
       11,766,289   
    

 

 

 
  

Telecommunications — 2.9%

 
  690,000      

Asia Satellite Telecommunications Holdings Ltd.

    1,071,941   
  200,000      

Koninklijke KPN NV

    747,321   
  1,000      

Loral Space & Communications Inc.†

    47,080   
  58,000      

Sprint Corp.†

    222,720   
  150,000      

Telenet Group Holding NV†

    8,593,410   
    

 

 

 
       10,682,472   
    

 

 

 
  

Transportation — 3.3%

 
  116,000      

Con-way Inc.

    5,504,200   
 

 

See accompanying notes to schedule of investments.

 

3


The GDL Fund

Schedule of Investments (Continued) — September 30, 2015 (Unaudited)

 

 

Shares

         

Market

Value

 
  

COMMON STOCKS (Continued)

  

  

Transportation (Continued)

  
  2,000      

Norbert Dentressangle SA

   $ 453,779   
  852,050      

TNT Express NV

     6,491,321   
     

 

 

 
        12,449,300   
     

 

 

 
  

Wireless Communications — 0.3%

  

  25,000      

T-Mobile US Inc.†

     995,250   
     

 

 

 
  

TOTAL COMMON STOCKS

       288,371,239   
     

 

 

 
  

RIGHTS — 0.5%

  
  

Energy and Utilities — 0.0%

  
  1,000,000      

Fortune Oil plc, CVR†

     0   
     

 

 

 
  

Health Care — 0.2%

  
  187,200      

Adolor Corp., CPR, expire 07/01/19†

     97,344   
  79,391      

Ambit Biosciences Corp., CVR†

     47,635   
  201,600      

American Medical Alert Corp.†

     2,016   
  18,000      

Chelsea Therapeutics International Ltd., CVR†

     1,980   
  270,000      

Durata Therapeutics Inc., CVR†

     43,200   
  3,800      

Furiex Pharmaceuticals Inc., CVR†

     37,126   
  100      

Omthera Pharmaceuticals Inc., expire 12/31/20†

     60   
  217,620      

Prosensa Holding, CVR†

     215,444   
  18,000      

Rhoen-Klinikum AG, expire 10/05/15†

     402   
  346,322      

Teva Pharmaceutical Industries Ltd., CPR, expire 02/20/23†

     183,551   
  186,000      

Trius Therapeutics, CVR†

     24,180   
     

 

 

 
        652,938   
     

 

 

 
  

Retail — 0.0%

  
  400,000      

Safeway Casa Ley, CVR, expire 01/30/19†

     180,000   
  400,000      

Safeway PDC, CVR, expire 01/30/17†

     19,520   
     

 

 

 
        199,520   
     

 

 

 
  

Wireless Communications — 0.3%

  

  470,000      

Leap Wireless International Inc., CVR, expire 03/14/16†

     1,184,400   
     

 

 

 
  

TOTAL RIGHTS

     2,036,858   
     

 

 

 
  

WARRANTS — 0.0%

  
  

Energy and Utilities — 0.0%

  
  35,000      

Kinder Morgan Inc., expire 05/25/17†

     32,200   
     

 

 

 
  

Metals and Mining — 0.0%

  
  850      

HudBay Minerals Inc., expire 07/20/18†

     223   
     

 

 

 
  

TOTAL WARRANTS

     32,423   
     

 

 

 

Principal
Amount

         

Market

Value

 
  

U.S. GOVERNMENT OBLIGATIONS — 22.0%

  

  $81,703,000      

U.S. Treasury Bills,
0.020% to 0.270%††,
10/08/15 to 03/31/16(b)

   $ 81,693,796   
     

 

 

 
  

TOTAL INVESTMENTS — 100.0%
(Cost $376,169,954)

   $ 372,134,316   
     

 

 

 
  

Aggregate tax cost

   $ 377,723,240   
     

 

 

 
  

Gross unrealized appreciation

   $ 12,998,473   
  

Gross unrealized depreciation

     (18,587,397
     

 

 

 
  

Net unrealized appreciation/depreciation

   $ (5,588,924
     

 

 

 

Shares

         

Market
Value

 
  

SECURITIES SOLD SHORT — (0.4)%

  

  

Cable and Satellite — (0.2)%

  
  4,562      

Charter Communications Inc., Cl. A

   $ 802,228   
     

 

 

 
  

Electronics — 0.0%

  
  100      

Hubbell Inc., Cl. B

     8,495   
     

 

 

 
  

Energy and Utilities — (0.2)%

  
  1,000      

Halliburton Co.

     35,350   
  482      

NextEra Energy Inc.

     47,019   
  7,160      

Schlumberger Ltd.

     493,825   
     

 

 

 
        576,194   
     

 

 

 
  

Retail — 0.0%

  
  2,625      

Staples Inc.

     30,791   
     

 

 

 
  

TOTAL SECURITIES SOLD SHORT
(Proceeds received $1,513,630)

   $ 1,417,708   
     

 

 

 
  

Aggregate proceeds

   $ (1,513,630
     

 

 

 
  

Gross unrealized appreciation

   $ 95,922   
  

Gross unrealized depreciation

       
     

 

 

 
  

Net unrealized appreciation/depreciation

   $ 95,922   
     

 

 

 

 

Principal
Amount

          Settlement  
Date
   

Unrealized
Appreciation/
Depreciation

 
 

FORWARD FOREIGN EXCHANGE CONTRACTS(C)

   
      4,200,000 (d)   

Deliver British Pounds in exchange for United States Dollars 6,373,521

    10/30/15      $ 20,857   
 

 

See accompanying notes to schedule of investments.

 

4


The GDL Fund

Schedule of Investments (Continued) — September 30, 2015 (Unaudited)

 

 

Principal

Amount

          Settlement  
Date
   

Unrealized
Appreciation/
Depreciation

 
 

FORWARD FOREIGN EXCHANGE CONTRACTS(C) (Continued)

   
  24,200,000(e)     

Deliver Euros in exchange for United States Dollars 27,200,437

    10/30/15      $ 146,822   
  29,000,000(f)     

Deliver Swedish Kronor in exchange for United States Dollars 3,425,078

    10/30/15        (42,030
     

 

 

 
 

TOTAL FORWARD FOREIGN EXCHANGE CONTRACTS

    $ 125,649   
     

 

 

 

Notional

Amount

          Termination  
Date
       
 

EQUITY CONTRACT FOR DIFFERENCE SWAP AGREEMENTS(G)

    

 
$ 29,059     

Gulf Keystone Petroleum Ltd.

    06/28/16      $ 4,827   
        (70,000 Shares)    
  859,874     

Aga Rangemaster Group plc

    07/20/16        (9,106
        (304,000 Shares)    
    1,005,700     

Amlin plc

    09/12/16        (12,584
        (100,000 Shares)    
  400,740     

Sulzer AG

    09/28/16        (8,784
        (4,000 Shares)    
     

 

 

 
 

TOTAL EQUITY CONTRACT FOR DIFFERENCE SWAP AGREEMENTS

    $ (25,647
     

 

 

 

 

(a)

At September 30, 2015, securities, or a portion thereof, with a value of $120,250 were reserved and/or pledged for collateral with the custodian for securities sold short, equity contract for difference swap agreements, and forward foreign exchange contracts.

(b)

At September 30, 2015, $41,000,000 of the principal amount was pledged as collateral for securities sold short, equity contract for difference swap agreements, and forward foreign exchange contracts.

(c)

At September 30, 2015, the Fund had entered into forward foreign exchange contracts with State Street Bank and Trust Co.

(d)

Principal amount denoted in British Pounds.

(e)

Principal amount denoted in Euros.

(f)

Principal amount denoted in Swedish Kronor.

(g)

At September 30, 2015, the Fund had entered into equity contract for difference swap agreements with The Goldman Sachs Group, Inc.

Non-income producing security.

††

Represents annualized yield at date of purchase.

ADR

American Depositary Receipt

CVR

Contingent Value Right

CPR

Contingent Payment Right

 

Geographic Diversification

   

% of
Market
Value

    

Market
Value

 

Long Positions

      

North America

      83.5    $ 310,591,322   

Europe

      13.1         48,611,579   

Latin America

      3.1         11,724,494   

Asia/Pacific

      0.3         1,206,921   
   

 

 

    

 

 

 

Total Investments

      100.0    $ 372,134,316   
   

 

 

    

 

 

 

Short Positions

      

North America

      (0.3 )%     $ (923,883

Latin America

      (0.1      (493,825
 

 

    

 

 

 

 

Total Investments

      (0.4 )%     $ (1,417,708
   

 

 

    

 

 

 
 

 

See accompanying notes to schedule of investments.

 

5


The GDL Fund

Notes to Schedule of Investments (Unaudited)

 

As an investment company, the Fund follows the investment company accounting and reporting guidance, which is part of U.S. generally accepted accounting principles (“GAAP”) that may require the use of management estimates and assumptions in the preparation of its schedule of investments. 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 schedule of investments.

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 market’s 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.

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 American Depositary Receipt 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 Fund’s 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 Board’s determinations as to the fair value of investments).

 

6


The GDL Fund

Notes to Schedule of Investments (Unaudited) (Continued)

 

 

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually and in the 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 Fund’s investments in securities and other financial instruments by inputs used to value the Fund’s investments as of September 30, 2015 is as follows:

 

     Valuation Inputs      Total Market Value
at 9/30/15
 
     Level 1
Quoted Prices
     Level 2 Other Significant
Observable Inputs
     Level 3 Significant
Unobservable Inputs
    

INVESTMENTS IN SECURITIES:

           

ASSETS (Market Value):

           

Common Stocks:

           

Computer Software and Services

     $  21,549,971          —                          $     11,230                     $  21,561,201      

Educational Services

     —          —                  42                 42      

Electronics

     4,821,065                  $     143,450                  —                 4,964,515      

Health Care

     67,333,217          —                  192,500                 67,525,717      

Publishing

     902,890          —                  33,079                 935,969      

Other Industries (a)

     193,383,795          —                  —                 193,383,795      

 

 

Total Common Stocks

     287,990,938          143,450                  236,851                 288,371,239      

 

 

Rights (a)

     402          —                  2,036,456                 2,036,858      

Warrants (a)

     32,423          —                  —                 32,423      

U.S. Government Obligations

     —          81,693,796                  —                 81,693,796      

 

 

TOTAL INVESTMENTS IN SECURITIES – ASSETS

     $288,023,763                  $81,837,246                          $2,273,307                     $372,134,316      

 

 

LIABILITIES (Market Value):

           

Common Stocks Sold Short (a)

     $   (1,417,708)         —                  —                     $   (1,417,708)     

 

 

TOTAL INVESTMENTS IN SECURITIES - LIABILITIES

     $   (1,417,708)         —                  —                     $   (1,417,708)     

 

 

OTHER FINANCIAL INSTRUMENTS:

           

ASSETS (Unrealized Appreciation):*

           

FORWARD CURRENCY EXCHANGE CONTRACTS

           

Forward Foreign Exchange Contracts

     —                  $      167,679                  —                     $       167,679      

 

 

EQUITY CONTRACT

           

Contract for Difference Swap Agreements

     —                  $          4,827                  —                     $           4,827      

 

 

TOTAL OTHER FINANCIAL INSTRUMENTS:

     —                  $      172,506                  —                     $       172,506      

 

 

LIABILITIES (Unrealized Depreciation):*

           

FORWARD CURRENCY EXCHANGE CONTRACTS

           

Forward Foreign Exchange Contracts

     —                  $       (42,030)                 —                     $        (42,030)     

 

 

EQUITY CONTRACT

           

Contract for Difference Swap Agreements

     —                  $       (30,474)                 —                     $        (30,474)     

 

 

TOTAL OTHER FINANCIAL INSTRUMENTS:

     —                  $       (72,504)                 —                     $        (72,504)     

 

 

 

(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 options, futures, forwards, and swaps, which may be valued at the unrealized appreciation/depreciation of the instrument.

The Fund did not have material transfers among Level 1, Level 2, and Level 3 during the period ended September 30, 2015. The Fund’s policy is to recognize transfers among Levels as of the beginning of the reporting period.

 

7


The GDL Fund

Notes to Schedule of Investments (Unaudited) (Continued)

 

 

The following table reconciles Level 3 investments for which significant unobservable inputs were used to determine fair value:

 

   

Balance

as of
12/31/14

    Accrued
discounts/
(premiums)
  Realized
gain/
(loss)
    Change in
unrealized
appreciation/
depreciation
    Purchases     Sales     Transfers
into
Level 3†
    Transfers
out of
Level 3†
  Balance
as of
09/30/15
    Net change
in unrealized
appreciation/
depreciation
during the
period on
Level 3
investments
still held at
09/30/15
 

 

 

INVESTMENTS IN SECURITIES:

                   

ASSETS (Market Value):

                   

Common Stocks:

                   

Computer Software and Services

    $       11,230                                               $     11,230          

Educational Services

                    $    (2,743                   $2,785          42        $   (2,743

Health Care

    192,500                                               192,500          

Publishing

    33,059                 20                               33,079        20   

Retail

    7,991,697          $1,357,933        (29,789            $(9,319,841                       

 

 

Total Common Stocks

    8,228,486          1,357,933        (32,512            (9,319,841     2,785          236,851        (2,723

 

 

Rights:

                   

Energy and Utilities

                           $           0                        0          

Health Care

    707,092          270,000        (270,230     215,674        (270,000              652,536        42,970   

Retail

                    125,171        74,349                        199,520        125,171   

Wireless Communications

    1,184,400                                               1,184,400          

 

 

Total Rights

    1,891,492          270,000        (145,059     290,023        (270,000              2,036,456        168,141   

 

 

TOTAL INVESTMENTS IN SECURITIES

    $10,119,978          $1,627,933        $(177,571     $290,023        $(9,589,841     $2,785          $2,273,307        $165,418   

 

 

 

The Fund’s policy is to recognize transfers into and out of Level 3 as of the beginning of the reporting period.

The following tables summarize the valuation techniques used and unobservable inputs utilized to determine the value of certain of the Fund’s Level 3 investments as of September 30, 2015:

 

Description

    Balance at 09/30/15     Valuation Technique    Unobservable Input    Range

INVESTMENTS IN SECURITIES:

                 

ASSETS (Market Value):

                 

Common Stocks (a)

     $ 236,851      Merger/Acquisition price        Discount Range          0 %

Rights  (a)

       2,036,456      Last available closing price        Discount Range          0 %
    

 

 

                
     $ 2,273,307               
    

 

 

                

 

(a)

Includes fair value securities of investments developed using various valuation techniques and unobservable inputs.

 

Unobservable Input

   Impact to Value if Input Increases    Impact to Value if Input Decreases

Discount Range

   Decrease    Increase

 

8


The GDL Fund

Notes to Schedule of Investments (Unaudited) (Continued)

 

 

Additional Information to Evaluate Qualitative Information.

General. The Fund uses recognized industry pricing services – approved by the Board and unaffiliated with the Adviser – to value most of its securities, and uses broker quotes provided by market makers of securities not valued by these and other recognized pricing sources. Several different pricing feeds are received to value domestic equity securities, international equity securities, preferred equity securities, and fixed income securities. The data within these feeds is ultimately sourced from major stock exchanges and trading systems where these securities trade. The prices supplied by external sources are checked by obtaining quotations or actual transaction prices from market participants. If a price obtained from the pricing source is deemed unreliable, prices will be sought from another pricing service or from a broker/dealer that trades that security or similar securities.

Fair Valuation. Fair valued securities may be common and preferred equities, warrants, options, rights, and fixed income obligations. Where appropriate, Level 3 securities are those for which market quotations are not available, such as securities not traded for several days, or for which current bids are not available, or which are restricted as to transfer. Among the factors to be considered to fair value a security are recent prices of comparable securities that are publicly traded, reliable prices of securities not publicly traded, the use of valuation models, current analyst reports, valuing the income or cash flow of the issuer, or cost if the preceding factors do not apply. A significant change in the unobservable inputs could result in a lower or higher value in Level 3 securities. The circumstances of Level 3 securities are frequently monitored to determine if fair valuation measures continue to apply.

The Adviser reports quarterly to the Board the results of the application of fair valuation policies and procedures. These include back testing the prices realized in subsequent trades of these fair valued securities to fair values previously recognized.

Merger Arbitrage Risk. The principal risk associated with the Fund’s investment strategy is that certain of the proposed reorganizations in which the Fund invests may involve a longer time frame than originally contemplated or be renegotiated or terminated, in which case losses may be realized. The Fund invests all or a portion of its assets to seek short term capital appreciation. This can be expected to increase the portfolio turnover rate and cause increased brokerage commission costs.

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 Adviser’s 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 Fund’s ability to pay distributions.

 

9


The GDL Fund

Notes to Schedule of Investments (Unaudited) (Continued)

 

 

The Fund’s derivative contracts held at September 30, 2015, if any, are not accounted for as hedging instruments under GAAP and are disclosed in the Schedule of Investments together with the related counterparty.

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 Fund’s portfolio securities at the time an equity contract for difference 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 agreement with The Goldman Sachs Group, Inc. Details of the swap at September 30, 2015 are reflected within the Schedule of Investments and further details are as follows:

 

Notional Amount    Equity Security Received    Interest Rate/Equity Security Paid    Termination Date   Net Unrealized
Appreciation/
Depreciation
  

Market Value

Appreciation on:

  

One Month LIBOR plus 90 bps plus

Market Value Depreciation on:

        
$29,059 (70,000 Shares)   

Gulf Keystone Petroleum Ltd.

   Gulf Keystone Petroleum Ltd.    6/28/16       $   4,827     
$859,874 (304,000 Shares)   

Aga Rangemaster Group plc

   Aga Rangemaster Group plc    7/20/16       (9,106  
$1,005,700 (100,000 Shares)   

Amlin plc

   Amlin plc    9/12/16       (12,584  
$400,740 (4,000 Shares)   

Sulzer AG

   Sulzer AG    9/28/16           (8,784  
               $(25,647  

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 Fund’s 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. Forward foreign exchange contracts at September 30, 2015 are presented within the Schedule of Investments.

Options. The Fund may purchase or write call or put options on securities or indices for the purpose of increasing the income of the Fund. As a writer of put options, the Fund receives a premium at the outset and then bears the risk of unfavorable changes in the price of the financial instrument underlying the option. The Fund would incur a loss if the price of the underlying financial instrument decreases between the date the

 

10


The GDL Fund

Notes to Schedule of Investments (Unaudited) (Continued)

 

 

option is written and the date on which the option is terminated. The Fund would realize a gain, to the extent of the premium, if the price of the financial instrument increases between those dates.

As a purchaser of put options, the Fund pays a premium for the right to sell to the seller of the put option the underlying security at a specified price. The seller of the put has the obligation to purchase the underlying security upon exercise at the exercise price. If the price of the underlying security declines, the Fund would realize a gain upon sale or exercise. If the price of the underlying security increases or stays the same, the Fund would realize a loss upon sale or at expiration date, but only to the extent of the premium paid.

If a written call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether there has been a realized gain or loss. If a written put option is exercised, the premium reduces the cost basis of the security. In the case of call options, the exercise prices are referred to as “in-the-money,” “at-the-money,” and “out-of-the-money,” respectively. The Fund may write (a) in-the-money call options when the Adviser expects that the price of the underlying security will remain stable or decline during the option period, (b) at-the-money call options when the Adviser expects that the price of the underlying security will remain stable, decline, or advance moderately during the option period, and (c) out-of-the-money call options when the Adviser expects that the premiums received from writing the call option will be greater than the appreciation in the price of the underlying security above the exercise price. By writing a call option, the Fund limits its opportunity to profit from any increase in the market value of the underlying security above the exercise price of the option. Out-of-the-money, at-the-money, and in-the-money put options (the reverse of call options as to the relation of exercise price to market price) may be utilized in the same market environments that such call options are used in equivalent transactions. At September 30, 2015, the Fund did not hold any written options contracts.

The following table summarizes the net unrealized appreciation/(depreciation) of derivatives held at September 30, 2015 by primary risk exposure:

 

Asset Derivatives:    Net Unrealized
Appreciation/
Depreciation
     

 

Forward Foreign Exchange Contracts

     $ 167,679     

 

Equity Contract for Difference Swap Agreements

       4,827     
    

 

 

      

 

Total

     $ 172,506     
    

 

 

      

 

Liability Derivatives:

               

 

Forward Foreign Exchange Contracts

     $ (42,030 )   

 

Equity Contract for Difference Swap Agreements

       (30,474 )   
    

 

 

      

 

 

 

 

Total

     $ (72,504 )   
    

 

 

      

 

 

 

Limitations on the Purchase and Sale of Futures Contracts, Certain Options, and Swaps. Subject to the guidelines of the Board, the Fund may engage in “commodity interest” transactions (generally, transactions in futures, certain options, certain currency transactions, and certain types of swaps) only for bona fide hedging or other permissible transactions in accordance with the rules and regulations of the Commodity Futures Trading

 

11


The GDL Fund

Notes to Schedule of Investments (Unaudited) (Continued)

 

 

Commission (“CFTC”). Pursuant to amendments by the CFTC to Rule 4.5 under the Commodity Exchange Act (“CEA”), the Adviser has filed a notice of exemption from registration as a “commodity pool operator” with respect to the Fund. The Fund and the Adviser are therefore not subject to registration or regulation as a commodity pool operator under the CEA. In addition, certain trading restrictions are now applicable to the Fund as of January 1, 2013. These trading restrictions permit the Fund to engage in commodity interest transactions that include (i) “bona fide hedging” transactions, as that term is defined and interpreted by the CFTC and its staff, without regard to the percentage of the Fund’s assets committed to margin and options premiums and (ii) non-bona fide hedging transactions, provided that the Fund does not enter into such non-bona fide hedging transactions if, immediately thereafter, either (a) the sum of the amount of initial margin deposits on the Fund’s existing futures positions or swaps positions and option or swaption premiums would exceed 5% of the market value of the Fund’s liquidating value, after taking into account unrealized profits and unrealized losses on any such transactions, or (b) the aggregate net notional value of the Fund’s commodity interest transactions would not exceed 100% of the market value of the Fund’s liquidating value, after taking into account unrealized profits and unrealized losses on any such transactions. Therefore, in order to claim the Rule 4.5 exemption, the Fund is limited in its ability to invest in commodity futures, options, and certain types of swaps (including securities futures, broad based stock index futures, and financial futures contracts). As a result, in the future, the Fund will be more limited in its ability to use these instruments than in the past, and these limitations may have a negative impact on the ability of the Adviser to manage the Fund, and on the Fund’s performance.

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. Securities sold short at September 30, 2015 are reflected 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 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.

 

12


The GDL Fund

Notes to Schedule of Investments (Unaudited) (Continued)

 

 

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.

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.

Restricted Securities. The Fund may invest up to 15% of its net assets in securities for which the markets are restricted. Restricted securities include securities whose disposition is subject to substantial legal or contractual restrictions. The sale of restricted securities often requires more time and results in higher brokerage charges or dealer discounts and other selling expenses than does the sale of securities eligible for trading on national securities exchanges or in the over-the-counter markets. Restricted securities may sell at a price lower than similar securities that are not subject to restrictions on resale. Securities freely saleable among qualified institutional investors under special rules adopted by the SEC may be treated as liquid if they satisfy liquidity standards established by the Board. The continued liquidity of such securities is not as well assured as that of publicly traded securities, and accordingly the Board will monitor their liquidity. At September 30, 2015, the Fund held no investments in restricted securities.

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.

 

13


THE GDL FUND

One Corporate Center

Rye, NY 10580-1422

Portfolio Manager Biography

Mario J. Gabelli, CFA, is Chairman and Chief Executive Officer of GAMCO Investors, Inc. that he founded in 1977 and Chief Investment Officer – Value Portfolios of Gabelli Funds, LLC and GAMCO Asset Management Inc. Mr. Gabelli is a summa cum laude graduate of Fordham University and holds an MBA degree from Columbia Business School and Honorary Doctorates from Fordham University and Roger Williams University.

 

 

We have separated the portfolio manager’s 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 manager’s commentary is unrestricted. Both the commentary and the financial statements, including the portfolio of investments, will be available on our website at www.gabelli.com.

The Net Asset Value per share appears in the Publicly Traded Funds column, under the heading “Specialized Equity Funds,” in Monday’s The Wall Street Journal. It is also listed in Barron’s 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.”

 

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 Fund’s 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

t  800-GABELLI (800-422-3554)

f  914-921-5118

e  info@gabelli.com

    GABELLI.COM

 

 

 

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.

 

Arthur V. Ferrara

Former Chairman &

Chief Executive Officer,

Guardian Life Insurance

Company of America

 

Michael J. Melarkey

Of Counsel,

McDonald Carano Wilson LLP

 

Edward T. Tokar

Senior Managing Director,

Beacon Trust Company

 

Salvatore J. Zizza

Chairman,

Zizza & Associates Corp.

  

OFFICERS

 

Bruce N. Alpert

President

 

Andrea R. Mango

Secretary & Vice President

 

Agnes Mullady

Treasurer

 

Richard J. Walz

Chief Compliance Officer

 

Frank M. Yodice

Assistant Vice President

and Ombudsman

 

Carter W. Austin

Vice President

 

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

 

 

GDL Q3/2015

LOGO

 


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)  

    The GDL Fund

By (Signature and Title)*  

  /s/ Bruce N. Alpert

        Bruce N. Alpert, Principal Executive Officer
Date  

     11/25/2015

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/ Bruce N. Alpert

        Bruce N. Alpert, Principal Executive Officer
Date  

     11/25/2015

By (Signature and Title)*  

  /s/ Agnes Mullady

        Agnes Mullady, Principal Financial Officer and Treasurer
Date  

     11/25/2015

* Print the name and title of each signing officer under his or her signature.