Clough Global Opportunities 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: 811-21846

CLOUGH GLOBAL OPPORTUNITIES FUND

(Exact name of registrant as specified in charter)

1290 Broadway, Suite 1100, Denver, Colorado 80203

(Address of principal executive offices) (Zip code)

Erin Douglas

Clough Global Opportunities Fund

1290 Broadway, Suite 1100

Denver, Colorado 80203

(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:   June 30, 2012

Item 1 – Schedule of Investments.

Clough Global Opportunities Fund

STATEMENT OF INVESTMENTS

June 30, 2012 (Unaudited)

 

      Shares            Value      

COMMON STOCKS 110.41%

   

Consumer Discretionary 21.15%

   

Allison Transmission Holdings, Inc.(a)(b)(c)

      222,300         $3,903,588   

Arezzo Industria e Comercio S.A.

      92,080         1,351,515   

AutoZone, Inc.(d)

      11,165         4,099,453   

Bosideng International Holdings, Ltd.

      22,744,000         5,834,088   

CBS Corp. - Class B(a)

      268,831         8,812,280   

China Lilang, Ltd.

      2,317,000         1,579,919   

Cia Hering

      87,300         1,658,200   

Cinemark Holdings, Inc.(a)(b)

      333,353         7,617,116   

The Goodyear Tire & Rubber Co.(a)(b)(d)

      577,036         6,814,795   

H&R Block, Inc.(a)(b)

      889,312         14,211,206   

Lamar Advertising Co. - Class A(a)(b)(d)

      190,325         5,443,295   

Liberty Global, Inc. - Class A(a)(b)(d)

      115,707         5,742,538   

Liberty Interactive Corp. - Class A(a)(b)(d)

      334,902         5,957,907   

Liberty Media Corp. - Liberty Capital(a)(b)(d)

      85,846         7,546,722   

Man Wah Holdings, Ltd.

      6,430,900         2,644,329   

Monro Muffler Brake, Inc.(a)

      39,000         1,296,360   

News Corp.- Class A(a)(b)

      441,174         9,833,768   

Orient-Express Hotels, Ltd.(a)(d)

      296,550         2,482,124   

priceline.com, Inc.(a)(d)

      12,250         8,140,370   

Sally Beauty Holdings, Inc.(a)(d)

      98,900         2,545,686   

Time Warner, Inc.(a)(b)

      223,536         8,606,136   

UNICASA Industria de Moveis SA(c)(d)

      268,600         2,123,658   

Viacom, Inc. - Class B(a)(b)

      230,300         10,828,706   

The Walt Disney Co.(a)(b)

      183,309         8,890,487   
     

 

 

  
        137,964,246   
     

 

 

  

Consumer Staples 2.43%

      

Brazil Pharma S.A.(c)

      564,198         3,028,158   

China Mengniu Dairy Co., Ltd.

      780,000         2,046,030   

Molson Coors Brewing Co.

      37,126         1,544,813   

Raia Drogasil S.A.

      57,248         572,907   

Reynolds American, Inc.(a)(b)

      123,000         5,519,010   

     Shares           Value      

Consumer Staples (continued)

  

Vinda International Holdings, Ltd.

     2,135,589        $3,154,680   
   

 

 

  
      15,865,598   
   

 

 

  

Energy 12.84%

    

Commodities 0.22%

    

Southwestern Energy Co.(d)

     45,706        1,459,393   
   

 

 

  

Natural Gas Leveraged Exploration & Production 0.66%

    

Cabot Oil & Gas Corp.

     43,229        1,703,223   

Range Resources Corp.

     20,673        1,279,038   

The Williams Cos., Inc.

     46,094        1,328,429   
   

 

 

  
      4,310,690   
   

 

 

  

Non-North American Producers 0.90%

  

  

BP PLC - Sponsored ADR(a)(b)

     60,700        2,460,778   

InterOil Corp.(a)(b)(d)

     40,409        2,816,508   

OGX Petroleo e Gas Participacoes S.A.(d)

     222,704        609,844   
   

 

 

  
      5,887,130   
   

 

 

  

Oil Leveraged Exploration & Production 3.46%

    

Anadarko Petroleum Corp.(a)(b)

     55,839        3,696,542   

Continental Resources, Inc.(a)(b)(d)

     19,881        1,324,472   

Energy XXI Bermuda, Ltd.(a)

     70,463        2,204,787   

EOG Resources, Inc.(a)(b)

     49,400        4,451,434   

Kodiak Oil & Gas Corp.(a)(d)

     349,554        2,869,838   

Noble Energy, Inc.(a)(b)

     48,600        4,122,252   

Pioneer Natural Resources Co.(a)(b)

     44,461        3,921,905   
   

 

 

  
      22,591,230   
   

 

 

  

Oil Services & Drillers 4.79%

    

Ensco PLC - Sponsored ADR(a)(b)

     123,798        5,814,792   

National Oilwell Varco, Inc.(a)(b)

     123,795        7,977,350   

Noble Corp.(a)(b)(d)

     147,100        4,785,163   

Oil States International, Inc.(a)(b)(d)

     91,161        6,034,858   

Seadrill, Ltd.(a)(b)

     111,600        3,964,032   

Transocean, Ltd.(a)(b)

     59,800        2,674,854   
   

 

 

  
      31,251,049   
   

 

 

  

Tankers 2.81%

    

Golar LNG Partners LP(a)

     107,744        3,490,905   

      Shares            Value      

Energy (continued)

  

Golar LNG, Ltd.(a)(b)

      392,958         $14,814,517   
     

 

 

  
        18,305,422   
     

 

 

  

TOTAL ENERGY

         83,804,914   
     

 

 

  

Financials 26.62%

      

Capital Markets 7.54%

      

Ares Capital Corp.(a)

      822,236         13,122,887   

CITIC Securities Co., Ltd. - Class H

      999,445         2,094,751   

The Goldman Sachs Group, Inc.(a)

      32,100         3,077,106   

Golub Capital BDC, Inc.

      226,900         3,423,921   

Indochina Capital Vietnam Holdings, Ltd.(c)(d)(e)

      25,655         33,608   

Medley Capital Corp.

      146,188         1,760,103   

Morgan Stanley(a)

      216,500         3,158,735   

PennantPark Floating Rate Capital, Ltd.

      92,500         1,091,500   

PennantPark Investment Corp.(a)

      745,806         7,719,092   

Solar Capital, Ltd.

      487,745         10,857,204   

Solar Senior Capital, Ltd.

      167,431         2,829,584   

THL Credit, Inc.

      2,843         38,295   
     

 

 

  
        49,206,786   
     

 

 

  

Commercial Banks 1.23%

      

Fifth Third Bancorp(a)(b)

      190,700         2,555,380   

Wells Fargo & Co.

      163,387         5,463,661   
     

 

 

  
        8,019,041   
     

 

 

  

Consumer Finance 3.21%

  

American Express Co.

      9,800         570,458   

Discover Financial Services(a)

      54,500         1,884,610   

Mastercard, Inc. - Class A(a)(b)

      32,619         14,029,758   

Visa, Inc. - Class A(a)(b)

      35,941         4,443,386   
     

 

 

  
        20,928,212   
     

 

 

  

Diversified Financials 6.29%

  

   

Bank of America Corp.(a)(b)

      2,858,186         23,379,961   

Citigroup, Inc.(a)(b)

      643,912         17,649,628   
     

 

 

  
        41,029,589   
     

 

 

  

Mortgage-Backed Securities Real Estate
Investment Trusts 5.58%

   

American Capital Agency Corp.

      314,515         10,570,849   

American Capital Mortgage Investment Corp.

      142,553         3,404,166   

Capstead Mortgage Corp.

      743,538         10,342,614   

CYS Investments, Inc.

      288,262         3,969,368   

Dynex Capital, Inc.

      405,253         4,206,526   

     Shares           Value      

Financials (continued)

  

Hatteras Financial Corp.(a)

     136,787        $3,912,108   
   

 

 

  
      36,405,631   
   

 

 

  

Real Estate Investment Trusts 1.90%

    

American Residential Properties, Inc.(a)(c)(d)(e)

     145,000        2,936,250   

Ascendas Real Estate Investment Trust

     3,597,000        6,105,033   

Ascott Residence Trust

     1,781,824        1,526,172   

Select Income REIT(c)

     77,000        1,829,520   
   

 

 

  
      12,396,975   
   

 

 

  

 

Real Estate Management & Development 0.87%

    

BHG S.A. - Brazil Hospitality Group(d)

     111,949        1,067,933   

BR Malls Participacoes S.A.

     230,248        2,607,987   

Sonae Sierra Brasil S.A.

     137,724        1,987,861   
   

 

 

  
      5,663,781   
   

 

 

  

TOTAL FINANCIALS

       173,650,015   
   

 

 

  

 

Health Care 1.91%

    

Sanofi - ADR(a)(b)

     261,718        9,887,706   

UnitedHealth Group, Inc.(a)

     44,300        2,591,550   
   

 

 

  
      12,479,256   
   

 

 

  

 

Industrials 5.96%

    

Brenntag AG

     27,270        3,008,604   

Cia de Locacao das Americas(c)(d)

     871,500        3,358,432   

Covanta Holding Corp.(a)

     161,200        2,764,580   

Delta Air Lines, Inc.(a)(b)(d)

     420,707        4,606,742   

Sensata Technologies Holding NV(a)(b)(d)

     191,600        5,131,048   

TE Connectivity, Ltd.(a)

     50,200        1,601,882   

TransDigm Group, Inc.(a)(b)(d)

     63,562        8,536,376   

United Continental Holdings, Inc.(a)(d)

     191,600        4,661,628   

US Airways Group, Inc.(a)(b)(d)

     116,185        1,548,746   

Verisk Analytics, Inc. - Class A(a)(d)

     43,213        2,128,672   

WABCO Holdings, Inc.(a)(d)

     29,000        1,534,970   
   

 

 

  
      38,881,680   
   

 

 

  

 

Information Technology 24.22%

    

Apple, Inc.(a)(b)(d)

     30,415        17,762,360   

Arrow Electronics, Inc.(a)(b)(d)

     201,307        6,604,883   

Avnet, Inc.(a)(b)(d)

     157,717        4,867,147   

BMC Software, Inc.(d)

     13,289        567,174   

Broadcom Corp. - Class A(a)(d)

     80,100        2,707,380   

Check Point Software Technologies, Ltd.(a)(d)

     116,300        5,767,317   

      Shares            Value      

Information Technology (continued)

  

Cisco Systems, Inc.(a)(b)

      141,100         $2,422,687   

eBay, Inc.(a)(b)(d)

      183,518         7,709,591   

EMC Corp.(a)(b)(d)

      607,035         15,558,307   

Equinix, Inc.(a)(b)(d)

      15,080         2,648,802   

Facebook, Inc.(a)(b)(d)

      19,700         613,064   

Fortinet, Inc.(a)(d)

      142,400         3,306,528   

Google, Inc. - Class A(a)(b)(d)

      30,747         17,835,412   

JDS Uniphase Corp.(a)(b)(d)

      321,300         3,534,300   

Lenovo Group, Ltd.

      3,179,040         2,679,950   

Micron Technology, Inc.(a)(b)(d)

      1,185,970         7,483,471   

Microsoft Corp.(a)(b)

      884,979         27,071,508   

Qihoo 360 Technology Co., Ltd. - ADR(a)(b)(d)

      118,028         2,040,704   

QUALCOMM, Inc.(a)(b)

      118,164         6,579,371   

SanDisk Corp.(a)(d)

      99,700         3,637,056   

Seagate Technology(a)(b)

      208,803         5,163,698   

VeriFone Systems, Inc.(a)(b)(d)

      92,595         3,063,968   

ViaSat, Inc.(a)(b)(d)

      126,328         4,771,409   

VMware, Inc.(d)

      7,666         697,913   

Western Digital Corp.(a)(b)(d)

      95,922         2,923,703   
     

 

 

  
        158,017,703   
     

 

 

  

Materials 3.27%

      

Crown Holdings, Inc.(a)(b)(d)

      146,498         5,052,716   

Georgia Gulf Corp.(a)

      194,800         5,000,516   

Westlake Chemical Corp.(a)(b)

      77,700         4,060,602   

WR Grace & Co.(a)(b)(d)

      142,900         7,209,305   
     

 

 

  
        21,323,139   
     

 

 

  

Telecommunication Services 3.91%

  

AT&T, Inc.(a)(b)

      147,500         5,259,850   

DiGi.Com Bhd

      1,450,000         1,940,639   

KT Corp.

      43,981         1,165,428   

Maxis Bhd

      3,314,700         6,670,110   

Philippine Long Distance Telephone Co.

      53,015         3,334,277   

Telekom Malaysia Bhd

      1,033,200         1,838,318   

Verizon Communications, Inc.(a)(b)

      119,800         5,323,912   
     

 

 

  
        25,532,534   
     

 

 

  

Utilities 8.10%

      

AES Corp.(a)(b)(d)

      357,840         4,591,087   

Ameren Corp.(a)(b)

      124,400         4,172,376   

American Electric Power Co., Inc.(a)(b)

      128,300         5,119,170   

CMS Energy Corp.(a)(b)

      86,200         2,025,700   

Edison International(a)(b)

      108,703         5,022,079   

National Grid PLC - Sponsored ADR(a)(b)

      290,381         15,387,289   

NiSource, Inc.(a)(b)

      190,673         4,719,157   

Northeast Utilities(a)(b)

      75,131         2,915,834   

      Shares            Value      

Utilities (continued)

  

OGE Energy Corp.(a)(b)

      107,030         $5,543,084   

Westar Energy, Inc.(a)

      111,719         3,345,984   
     

 

 

  
        52,841,760   
     

 

 

  

 

TOTAL COMMON STOCKS

      

(Cost $704,536,384)

         720,360,845   
     

 

 

  

 

EXCHANGE TRADED FUNDS 0.37%

      

iShares® FTSE China 25 Index Fund

      71,949         2,422,523   
     

 

 

  

 

Total Exchange Traded Funds

      

(Cost $2,435,441)

         2,422,523   
     

 

 

  

 

PREFERRED STOCKS 0.45%

      

The Goodyear Tire & Rubber Co., 5.875%(a)

      67,800         2,928,960   
     

 

 

  

 

Total Preferred Stocks

      

(Cost $3,394,238)

         2,928,960   
     

 

 

  

Description and

Maturity Date

    Principal      
Amount      		      Value      

CORPORATE BONDS 2.73%

      

Ford Motor Credit Co. LLC

      

01/15/2015, 3.875% (a)

      $6,515,000         6,714,072   

Hanesbrands, Inc.

   

12/15/2020, 6.375% (a)

      1,365,000         1,443,487   

Manufacturers & Traders Trust Co.

   

12/01/2021, 5.629% (a)(f)

      3,680,000         3,680,346   

TAM Capital 2, Inc.

   

01/29/2020, 9.500% (a)(g)

      2,205,000         2,395,292   

Visteon Corp.

   

04/15/2019, 6.750% (a)

      3,650,000         3,567,875   
     

 

 

  

 

Total Corporate Bonds

      

(Cost $17,449,561)

         17,801,072   
     

 

 

  

 

ASSET/MORTGAGE BACKED SECURITIES 0.04%

  

Government National Mortgage Association (GNMA)

  

Series 2007-37, Class SA, 03/20/2037, 21.271%(a)(f)

      144,422         148,816   

Series 2007-37, Class SB, 03/20/2037, 21.271%(a)(f)

      109,293         113,458   
     

 

 

  

 

Total Asset/Mortgage Backed Securities

  

(Cost $233,704)

         262,274   
     

 

 

  

Description and

Maturity Date

    Principal      
Amount      		      Value      

GOVERNMENT & AGENCY OBLIGATIONS 18.19%

  

U.S. Treasury Bonds

      

05/15/2020, 3.500%

      $7,000,000         $8,184,533   

08/15/2020, 2.625% (a)

      20,000,000         22,029,700   

11/15/2020, 2.625% (a)

      22,025,000         24,230,936   

02/15/2021, 3.625% (a)

      35,820,000         42,320,793   

05/15/2021, 3.125% (a)

      12,200,000         13,902,278   

08/15/2027, 6.375%

      5,225,000         8,054,667   
     

 

 

  

 

Total Government & Agency Obligations

      

(Cost $116,001,830)

         118,722,907   
     

 

 

  
      Number of      
Contracts      		      Value      

PURCHASED OPTIONS 0.75%

  

CALL OPTIONS PURCHASED 0.48%

  

Cameron International Corp., Expires January, 2013, Exercise Price $57.50

      1,000         70,000   

Ensco PLC, Expires January, 2013, Exercise Price $55.00

      1,000         182,500   

Market Vectors Oil Service ETF, Expires January, 2013, Exercise Price $53.33

      2,514         18,855   

Microsoft Corp., Expires January, 2013, Exercise Price $30.00

      1,792         410,368   

Noble Corp., Expires January, 2013, Exercise Price $40.00

      1,000         98,500   

Time Warner Inc., Expires October, 2012, Exercise Price $37.00

      1,600         432,800   

Transocean, Ltd., Expires January, 2013, Exercise Price $50.00

      1,000         307,500   

Walt Disney Co, Expires July, 2012, Exercise Price $45.00

      4,500         1,620,000   
     

 

 

  

 

Total Call Options Purchased

  

(Cost $4,913,928)

         3,140,523   
     

 

 

  

 

PUT OPTIONS PURCHASED 0.27%

  

S&P 500® Index, Expires July, 2012, Exercise Price $1,310.00

      1,200         690,000   

    

Number of      

Contracts      

     Value      

PUT OPTIONS PURCHASED (continued)

  

United States Natural Gas Fund LP, Expires October, 2012, Exercise Price $17.00

     7,869        $1,066,249   
   

 

 

  

Total Put Options Purchased

    

(Cost $5,020,144)

       1,756,249   
   

 

 

  

Total Purchased Options

    

(Cost $9,934,072)

       4,896,772   
   

 

 

  
    

Shares/Principal      

Amount      

     Value      

SHORT-TERM INVESTMENTS 30.70%

    

Money Market Fund

    

Dreyfus Treasury Prime Money Market Fund (0.000% 7-day yield)(h)

     88,497,239        88,497,239   
   

 

 

  

 

U.S. Treasury Bills

    

U.S. Treasury Bill Discount Notes

    

08/09/2012, 0.113%(a)(i)

     $19,700,000        19,697,565   

11/15/2012, 0.139%(a)(i)

     22,200,000        22,188,203   

02/07/2013, 0.170%(a)(i)

     20,000,000        19,980,760   

04/04/2013, 0.181%(a)(i)

     30,000,000        29,960,370   

05/02/2013, 0.181%(a)(i)

     20,000,000        19,968,800   
   

 

 

  
      111,795,698   
   

 

 

  

Total Short-Term Investments

    

(Cost $200,289,105)

       200,292,937   
   

 

 

  

 

Total Investments - 163.64%

    

(Cost $1,054,274,335)

       1,067,688,290   

Liabilities in Excess of Other Assets - (63.64%)

  

     (415,235,055)   
   

 

 

  

NET ASSETS - 100.00%

       $652,453,235   
   

 

 

  
SCHEDULE OF WRITTEN OPTIONS  

Number of      

Contracts      

     Value      

CALL OPTIONS WRITTEN

  

  

Time Warner Inc., Expires October, 2012,
Exercise Price $41.00

     1,600        $(112,800)   
   

 

 

  

Walt Disney Co, Expires July, 2012, Exercise Price $49.00

     4,500        (249,750)   
   

 

 

  

Total Call Options Written

  

  

(Premiums received $202,444)

  

     (362,550)   
   

 

 

  

SCHEDULE OF WRITTEN OPTIONS  

Number of      

Contracts      

     Value      

PUT OPTIONS WRITTEN

  

S&P 500® Index, Expires July, 2012, Exercise Price $1,230.00

     1,200        $(123,000)   
   

 

 

  

TOTAL PUT OPTIONS WRITTEN

  

(Premiums received $1,317,570)

  

     (123,000)   
   

 

 

  

TOTAL WRITTEN OPTIONS

    

(Premiums received $1,520,014)

  

     $(485,550)   
   

 

 

  
SCHEDULE OF SECURITIES SOLD SHORT (d)   Shares           Value      

COMMON STOCK

    

Banco Santander S.A.

     (463,485)        $(3,062,333)   

BHP Billiton, Ltd. - ADR

     (77,914)        (5,087,784)   

BNP Paribas S.A.

     (39,168)        (1,503,621)   

C&J Energy Services, Inc.

     (84,031)        (1,554,573)   

Chipotle Mexican Grill, Inc.

     (3,900)        (1,481,805)   

Ciena Corp.

     (221,659)        (3,628,558)   

Credit Agricole S.A.

     (222,566)        (977,634)   

Credit Suisse Group AG

     (39,866)        (730,744)   

CurrencyShares Euro Trust

     (41,200)        (5,186,256)   

Deutsche Bank AG

     (112,543)        (4,070,680)   

Fiat SpA

     (575,246)        (2,888,606)   

Fortescue Metals Group, Ltd.

     (866,147)        (4,343,855)   

Gannett Co., Inc.

     (191,400)        (2,819,322)   

Intesa Sanpaolo SpA

     (982,636)        (1,390,264)   

Nabors Industries, Ltd.

     (364,778)        (5,252,803)   

Patterson-UTI Energy, Inc.

     (330,910)        (4,818,050)   

Petroleo Brasileiro S.A. - ADR

     (546,106)        (10,250,410)   

Powershares QQQ Trust Series 1

     (309,771)        (19,874,907)   

Rio Tinto PLC - ADR

     (151,185)        (7,228,155)   

RR Donnelley & Sons Co.

     (164,004)        (1,930,327)   

Schneider Electric S.A.

     (29,093)        (1,610,019)   

Societe Generale S.A.

     (43,445)        (1,012,177)   

Under Armour, Inc.

     (22,700)        (2,144,696)   

Vale SA - ADR

     (398,388)        (7,908,002)   

Waters Corp.

     (32,300)        (2,566,881)   
   

 

 

  
      (103,322,462)   
   

 

 

  

EXCHANGE TRADED FUNDS

    

iShares® Russell 2000® Index Fund

     (413,669)        (32,948,736)   

United States Natural Gas Fund LP

     (191,975)        (3,703,198)   

United States Oil Fund LP

     (97,587)        (3,105,218)   
   

 

 

  
      (39,757,152)   
   

 

 

  

Total Securities Sold Short

  

(Proceeds $153,590,544)

       $(143,079,614)   
   

 

 

  

SCHEDULE OF TOTAL RETURN SWAP CONTRACTS

 

Counter Party   Reference
Entry/Obligation		   Shares     Notional
Amount		     Floating Rate Paid
by the Fund		     Floating
Rate Index		     Termination
Date		     Net Unrealized
Depreciation		  

Morgan Stanley

  

GD Power Development
/ GDLINK/ Bullet TRS

     4,813,200        2,088,447        95 Bps + 1D FEDEF        1D FEDEF        6/16/2014      $ (43,211 ) 

Abbreviations:

ADR - American Depositary Receipt

AG - Aktiengesellschaft is a German term that refers to a corporation that is limited by shares, i.e., owned by shareholders

Bhd - Berhad (in Malaysia, a form of a public company)

ETF - Exchange Traded Fund

LLC - Limited Liability Corporation

LP - Limited Partnership

Ltd. - Limited

NV - Naamloze Vennootschap (Dutch: Limited Liability Company)

PLC - Public Limited Liability

REIT - Real Estate Investment Trust

REMICS - Real Estate Mortgage Investment Conduits

S.A. - Generally designates corporations in various countries, mostly those employing the civil law

SpA - Societa’ Per Azioni is an Italian shared company

 

(a)

   Pledged security; a portion or all of the security is pledged as collateral for securities sold short or borrowings as of June 30, 2012. (See Note 1)

(b)

   Loaned security; a portion or all of the security is on loan at June 30, 2012.

(c)

   Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of June 30, 2012, these securities had a total value of $17,213,214 or 2.64% of net assets.

(d)

   Non-income producing security.

(e)

   Fair valued security; valued by management in accordance with procedures approved by the Fund’s Board of Trustees. As of
June 30, 2012, these securities had a total value of $2,969,858 or 0.46% of total net assets.

(f)

   Floating or variable rate security - rate disclosed as of June 30, 2012.

(g)

   Securities were purchased pursuant to Regulation S under the Securities Act of 1933, which exempts securities offered and sold outside of the United States from registration. Such securities cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. These securities have been deemed liquid under guidelines approved by the Fund’s Board of Trustees. As of June 30, 2012, the aggregate market value of those securities was $2,395,292, representing 0.37% of net assets.

(h)

   Less than 0.0005%.

(i)

   Rate shown represents the bond equivalent yield to maturity at date of purchase.

 

Income Tax Information:        

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

   
     As of June 30, 2012     

Gross appreciation (excess of value over tax cost)

      $            38,876,664     

Gross depreciation (excess of tax cost over value)

      (39,870,850)    

Net unrealized depreciation

      $              (994,186)    
  

 

 

  

Cost of investments for income tax purposes

      $       1,068,682,476     
  

 

 

  

See Notes to Quarterly Statement of Investments.

CLOUGH GLOBAL OPPORTUNITIES FUND

NOTES TO QUARTERLY STATEMENT OF INVESTMENTS

JUNE 30, 2012 (UNAUDITED)

1.   ORGANIZATION AND SIGNIFICANT ACCOUNTING AND OPERATING POLICIES

 

Clough Global Opportunities Fund (the “Fund”) is a closed-end management investment company that was organized under the laws of the state of Delaware by an Amended Agreement and Declaration of Trust dated January 16, 2006. The Fund is a non-diversified series with an investment objective to provide a high level of total return. Each Declaration of Trust provides that the Trustees may authorize separate classes of shares of beneficial interest.

The net asset value per share of the Fund is determined no less frequently than daily, on each day that the New York 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.

Investment Valuation: 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. Most securities listed on a foreign exchange are valued at the last sale price at the close of the exchange on which the security is primarily traded. In certain countries market maker prices are used since they are the most representative of the daily trading activity. Market maker prices are usually the mean between the bid and ask prices. Certain markets are not closed at the time that the Fund prices its portfolio securities. In these situations, snapshot prices are provided by the individual pricing services or other alternate sources at the close of the NYSE as appropriate. Securities not traded on a particular day are valued at the mean between the last reported bid and the asked quotes, or the last sale price when appropriate; otherwise fair value will be determined by the board-appointed fair valuation committee. 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 more pricing services or dealers 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 or a matrix method which considers yield or price of comparable bonds provided by a pricing service. 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.

If the price of a security is unavailable in accordance with the aforementioned pricing procedures, or the price of a security is unreliable, e.g., due to the occurrence of a significant event, the security may be valued at its fair value determined by management pursuant to procedures adopted by the Board of Trustees. For this purpose, fair value is the price that the Fund reasonably expects to receive on a current sale of the security. Due to the number of variables affecting the price of a security, however; it is possible that the fair value of a security may not accurately reflect the price that a Fund could actually receive on a sale of the security. As of June 30, 2012, securities which have been fair valued represented 0.46% of net assets of the Fund.

A three-tier hierarchy has been established to classify fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability that are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability that are developed based on the best information available.

Various inputs are used in determining the value of the Fund’s investments as of the reporting period end. These inputs are categorized in the following hierarchy under applicable financial accounting standards:

 

Level 1 –

  

Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the Fund has the ability to access at the measurement date;

Level 2 –

  

Quoted prices which are not active, quoted prices for similar assets or liabilities in active markets or inputs other than quoted prices that are observable (either directly or indirectly) for substantially the full term of the asset or liability; and

Level 3 – Significant unobservable prices or inputs (including the Fund’s own assumptions in determining the fair value of investments) where there is little or no market activity for the asset or liability at the measurement date.

The following is a summary of the inputs used as of June 30, 2012 in valuing the Fund’s investments carried at value. The Fund recognizes transfers between the levels as of the beginning of the annual period in which the transfer occurred. There were no significant transfers between Levels 1 and 2 during the period ended June 30, 2012:

Clough Global Opportunities Fund

 

Investments in Securities at Value*    Level 1            Level 2            Level 3            Total      

Assets

            

Common Stocks

            

Consumer Discretionary

    $ 137,964,246       $ –       $ –       $ 137,964,246   

Consumer Staples

      15,865,598         –         –         15,865,598   

Energy

      83,804,914         –         –         83,804,914   

Financials

      170,680,157         2,936,250         33,608         173,650,015   

Health Care

      12,479,256         –         –         12,479,256   

Industrials

      38,881,680         –         –         38,881,680   

Information Technology

      158,017,703         –         –         158,017,703   

Materials

      21,323,139         –         –         21,323,139   

Telecommunication Services

      25,532,534         –         –         25,532,534   

Utilities

      52,841,760         –         –         52,841,760   

Exchange Traded Funds

      2,422,523         –         –         2,422,523   

Preferred Stocks

      2,928,960         –         –         2,928,960   

Corporate Bonds

      –         17,801,072         –         17,801,072   

Asset/Mortgage Backed Securities

      –         262,274         –         262,274   

Government & Agency Obligations

      118,722,907         –         –         118,722,907   

Purchased Options

      4,896,772         –         –         4,896,772   

Short-Term Investments

      200,292,937         –         –         200,292,937   
   

TOTAL

    $ 1,046,655,086       $ 20,999,596       $ 33,608       $ 1,067,688,290   

 

  

Other Financial Instruments

                                    

Liabilities

            

Written Options

    $ (485,550)       $ –       $ –       $ (485,550)   

Securities Sold Short

      (143,079,614)         –         –         (143,079,614)   

Total Return Swap Contracts**

      –         (43,211)         –         (43,211)   

 

  

TOTAL

    $ (143,565,164)       $ (43,211)       $ –       $ (143,608,375)   

 

  

*For detailed industry descriptions, see the accompanying Statement of Investments.

**Swap contracts are reported at their unrealized appreciation/(depreciation) at measurement date, which represents the change in the contract’s value from trade date.

The following is a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value:

Clough Global Opportunities Fund

 

Investments in Securities   Balance
as of
March 31,
2012		     Realized
gain/(loss)		     Change in
unrealized
appreciation/
(depreciation)		     Purchases   Sales    

Transfers in
and/or

(out) of
Level 3

  

Balance

as of
June 30,
2012

    

Net Change

in unrealized
appreciation/

(depreciation)
attributable
to Level 3
investments

still held at

June 30, 2012

  

 

  

Common Stocks

     $69,869        $(251,107)        $253,034      $ -     $(38,188)      $ -     $33,608        $253,034   

 

  

TOTAL

     $69,869        $(251,107)        $253,034      $ -     $(38,188)      $ -     $33,608        $253,034   

 

  

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.

A foreign currency contract is a commitment to purchase or sell a foreign currency at a future date, at a negotiated rate. The Fund may enter into foreign currency contracts to settle specific purchases or sales of securities denominated in a foreign currency and for protection from adverse exchange rate fluctuation. Risks to the Fund include the potential inability of the counterparty to meet the terms of the contract.

The net U.S. dollar value of foreign currency underlying all contractual commitments held by the Fund and the resulting unrealized appreciation or depreciation are determined using prevailing forward foreign currency exchange rates. These spot contracts are used by the broker to settle investments denominated in foreign currencies.

As of June 30, 2012, the Fund had the following open spot foreign currency contracts:

Spot Foreign Exchange Contracts

 

Contract Description    Purchase/Sale Contract    Contracted Amount     

Settlement

Date

      Current Value    Unrealized
(Depreciation)    

BRL

    Sale      1,328,798                 07/02/2012       $            661,587    $        (13,393)        

EUR

    Sale      23,253                 07/02/2012       29,427           (540)

EUR

    Purchase      1,270,119                 07/03/2012       1,607,338        (1,394)

MYR

    Sale      265,176                 07/03/2012       83,507           (288)

SEK

    Purchase      4,058,271                 07/03/2012       586,672           (598)

HKD

    Sale      189,384                 07/05/2012       24,412              (3)
              

 

               $(16,216)
              

 

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.

Derivatives Instruments and Hedging Activities: The following discloses the Fund’s use of derivative instruments and hedging activities.

The Fund’s investment objectives not only permit the Fund to purchase investment securities, they also allow the Fund to enter into various types of derivative contracts, including, but not limited to, purchased and written options, swaps, and warrants. In doing so, the Fund will employ strategies in differing combinations to permit it to increase, decrease, or change the level or types of exposure to market factors. Central to those strategies are features inherent to derivatives that make them more attractive for this purpose than equity securities; they require little or no initial cash investment, they can focus exposure on only certain selected risk factors, and they may not require the ultimate receipt or delivery of the underlying security (or securities) to the contract. This may allow the Fund to pursue its objective more quickly and efficiently than if it was to make direct purchases or sales of securities capable of effecting a similar response to market factors.

Market Risk Factors: In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease its exposure to the following market risk factors:

Equity Risk: Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.

Risk of Investing in Derivatives: The Fund’s use of derivatives can result in losses due to unanticipated changes in the market risk factors and the overall market. In instances where the Fund is using derivatives to decrease or hedge exposures to market risk factors for securities held by the Fund, there are also risks that those derivatives may not perform as expected, resulting in losses for the combined or hedged positions.

Derivatives may have little or no initial cash investment relative to their market value exposure and therefore can produce significant gains or losses in excess of their cost. This use of embedded leverage allows the Fund to increase its market value exposure relative to its net assets and can substantially increase the volatility of the Fund’s performance.

Additional associated risks from investing in derivatives also exist and potentially could have significant effects on the valuation of the derivative and the Fund. Typically, the associated risks are not the risks that the Fund is attempting to increase or decrease exposure to, per its investment objective, but are the additional risks from investing in derivatives.

Examples of these associated risks are liquidity risk, which is the risk that the Fund will not be able to sell the derivative in the open market in a timely manner, and counterparty credit risk, which is the risk that the counterparty will not fulfill its obligation to the Fund. Associated risks can be different for each type of derivative and are discussed by each derivative type in the notes that follow.

Option Writing/Purchasing: 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. 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. The Fund is obligated to pay interest to the broker for any debit balance of the margin account relating to options.

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. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is recorded as a realized gain or 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 option activity for the three months ended June 30, 2012 was as follows:

CLOUGH GLOBAL OPPORTUNITIES FUND:

      Written Call Options     Written Put Options  
          Contracts     Premiums         Contracts     Premiums  

Outstanding, March 31, 2012

      4,601      $         601,577        –      $ –   

Positions opened

      9,600        557,625        2,400        3,038,341   

Exercised

      (101 )      (177,450 )      –        –   

Expired

      (3,500 )      (355,181 )      –        –   

Closed

      (4,500 )      (424,127 )      (1,200 )      (1,720,771 ) 

Split

      –        –        –        –   

Outstanding, June 30, 2012

      6,100      $ 202,444        1,200      $     1,317,570   

Market Value, June 30, 2012

      $ (362,550 )      $ (123,000 ) 

 

  

Swaps: During the period the Fund engaged in total return swaps. A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The Fund may utilize swap agreements as a means to gain exposure to certain assets and/or to “hedge” or protect the Fund from adverse movements in securities prices or interest rates. The Fund is subject to equity risk and interest rate risk in the normal course of pursuing its investment objective through investments in swap contracts. Swap agreements entail the risk that a party will default on its payment obligation to the Fund. If the other party to a swap defaults, the Fund would risk the loss of the net amount of the payments that it contractually is entitled to receive. If the Fund utilizes a swap at the wrong time or judges market conditions incorrectly, the swap may result in a loss to the Fund and reduce the Fund’s total return. Swap agreements traditionally were privately negotiated and entered into in the over-the-counter market. However, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) of 2010 now permits certain swap agreements to be cleared through a clearinghouse and traded on an exchange or swap execution facility. New regulations under the Dodd-Frank Act could, among other things, increase the cost of such transactions.

Total return swaps involve an exchange by two parties in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income it generates and any capital gains over the payment period. The Fund’s maximum risk of loss from counterparty risk or credit risk is the discounted value of the payments to be received from/paid to the counterparty over the contract’s remaining life, to the extent that the amount is positive. The risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral to the Fund to cover the Fund’s exposure to the counterparty.

Warrants: The Fund may purchase or otherwise receive warrants or rights. Warrants and rights generally give the holder the right to receive, upon exercise, a security of the issuer at a set price. Funds typically use warrants and rights in a manner similar to their use of purchased options on securities, as described in options above. Risks associated with the use of warrants and rights are generally similar to risks associated with the use of purchased options. However, warrants and rights often do not have standardized terms, and may have longer maturities and may be less liquid than exchange-traded options. In addition, the terms of warrants or rights may limit the Fund’s ability to exercise the warrants or rights at such times and in such quantities as the Fund would otherwise wish. The Fund held no rights or warrants at the end of the period.

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 EX-99.CERT.

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 OPPORTUNITIES FUND

 

By:

  

/s/ Edmund J. Burke

    Edmund J. Burke
    President (principal executive officer)
 

Date:

   August 24, 2012

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:      

   August 24, 2012
 

By:

  

/s/ Jeremy O. May

    Jeremy O. May
    Treasurer (principal financial officer)
 

Date:

   August 24, 2012