Nuveen California Dividend Advantage Municipal Fund 2

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q


QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number         811-10197         

        Nuveen California Dividend Advantage Municipal Fund 2         
(Exact name of registrant as specified in charter)


        333 West Wacker Drive, Chicago, Illinois, 60606         

Address of principal executive offices) (Zip code)


Jessica R. Droeger—Vice President and Secretary
        333 West Wacker Drive, Chicago, Illinois, 60606         

(Name and address of agent for service)

Registrant's telephone number, including area code:         312-917-7700        

Date of fiscal year end:            08/31          

Date of reporting period:          11/30/04         

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, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Schedule of Investments

Portfolio of Investments (Unaudited)
Nuveen California Dividend Advantage Municipal Fund 2 (NVX)
November 30, 2004


Principal

Optional Call

Market

Amount (000)

Description(1)

Provisions*

Ratings**

Value


Consumer Staples - 5.4% (3.7% of Total Investments)

 

$

4,625

California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Stanislaus

6/12 at 100.00

Baa3

$    3,985,779

   County Tobacco Funding Corporation, Series 2002A, 5.500%, 6/01/33

 

3,200

Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds,

6/13 at 100.00

BBB

3,121,088

   Series 2003A-1, 6.250%, 6/01/33

 

3,000

Northern California Tobacco Securitization Authority, Tobacco Settlement Asset-Backed Bonds, Series

6/11 at 100.00

BBB

2,463,690

   2001A, 5.375%, 6/01/41

 

2,800

Southern California Tobacco Securitization Authority, Tobacco Settlement Asset-Backed Bonds, Senior

6/12 at 100.00

BBB

2,400,216

   Series 2001A, 5.500%, 6/01/36


Education and Civic Organizations - 15.3% (10.3% of Total Investments)

 

2,000

California Educational Facilities Authority, Revenue Bonds, Stanford University, Series 2001Q,

6/11 at 101.00

AAA

2,076,040

   5.250%, 12/01/32

 

6,375

California Educational Facilities Authority, Student Loan Revenue Bonds, Cal Loan Program, Series

3/08 at 102.00

Aaa

6,687,949

   2001A, 5.400%, 3/01/21 (Alternative Minimum Tax) - MBIA Insured

 

California State Public Works Board, Lease Revenue Bonds, University of California System, Series

2002A:

8,880

   5.375%, 10/01/16 - FSA Insured

10/12 at 100.00

AAA

9,734,611

10,570

   5.375%, 10/01/18 - FSA Insured

10/12 at 100.00

AAA

11,527,642

 

620

California Statewide Community Development Authority, Revenue Bonds, Notre Dame de Namur

10/13 at 100.00

N/R

608,394

   University, Series 2003, 6.500%, 10/01/23

 

3,000

Long Beach Bond Financing Authority, California, Lease Revenue Refunding Bonds, Long Beach Aquarium

11/11 at 101.00

AAA

3,098,940

   of the South Pacific, Series 2001, 5.250%, 11/01/30 - AMBAC Insured


Healthcare - 8.2% (5.6% of Total Investments)

 

2,000

California Health Facilities Financing Authority, Revenue Bonds, Casa Colina Inc., Series 2001,

4/12 at 100.00

BBB+

2,094,520

   6.000%, 4/01/22

 

500

California Infrastructure Economic Development Bank, Revenue Bonds, Kaiser Hospital Assistance LLC,

8/11 at 102.00

A

514,085

   Series 2001A, 5.550%, 8/01/31

 

5,355

California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System,

No Opt. Call

A

5,658,093

   Series 2002E, 4.700%, 11/01/36 (Mandatory put 6/01/09)

 

2,185

California Statewide Community Development Authority, Health Facility Revenue Refunding Bonds,

No Opt. Call

A

2,472,590

   Memorial Health Services, Series 2003A, 6.000%, 10/01/11

 

2,500

California Statewide Community Development Authority, Hospital Revenue Bonds, Monterey Peninsula

6/13 at 100.00

AAA

2,703,700

   Hospital, Series 2003B, 5.250%, 6/01/18 - FSA Insured

 

3,000

Central California Joint Powers Health Finance Authority, Certificates of Participation, Community

2/10 at 101.00

Baa2

3,095,250

   Hospitals of Central California Obligated Group, Series 2000, 6.000%, 2/01/30

 

1,500

Whittier, California, Health Facility Revenue Bonds, Presbyterian Intercommunity Hospital, Series

6/12 at 101.00

A

1,583,520

   2002, 5.600%, 6/01/22


Housing/Multifamily - 7.5% (5.1% of Total Investments)

 

2,450

ABAG Finance Authority for Non-Profit Corporations, California, Multifamily Housing Revenue

No Opt. Call

Baa2

2,664,743

   Refunding Bonds, United Dominion/2000 Post Apartments, Series 2000B, 6.250%, 8/15/30 (Mandatory

   put 8/15/08)

 

3,750

California Statewide Community Development Authority, Revenue Refunding Bonds, Irvine Apartment

7/08 at 101.00

BBB

3,941,137

   Communities Development, Series 1998A, 4.900%, 5/15/25 (Mandatory put 5/15/08)

 

5,962

California Statewide Community Development Authority, Multifamily Housing Revenue Refunding Bonds,

6/11 at 102.00

AAA

6,135,196

   Claremont Village Apartments, Series 2001D, 5.500%, 6/01/31 (Alternative Minimum Tax) (Mandatory

   put 6/01/16)

 

3,500

California Statewide Community Development Authority, GNMA Collateralized Housing Revenue Refunding

8/12 at 105.00

Aaa

3,917,900

   Bonds, Crowne Pointe Project, Series 2002F, 6.750%, 8/20/37


Housing/Single Family - 0.9% (0.6% of Total Investments)

 

1,920

California Rural Home Mortgage Finance Authority, Single Family Mortgage Revenue Bonds,

6/11 at 102.00

AAA

1,964,602

   Mortgage-Backed Securities Program, Series 2001A, 5.650%, 12/01/31 (Alternative Minimum Tax)


Long-Term Care - 0.7% (0.5% of Total Investments)

 

1,550

California Health Facilities Financing Authority, Revenue Bonds, Northern California Retired

1/13 at 100.00

A

1,592,253

   Officers Community Corporation - Paradise Valley Estates, Series 2002, 5.125%, 1/01/22


Tax Obligation/General - 33.1% (22.5% of Total Investments)

 

5,000

California, General Obligation Refunding Bonds, Series 2002, 5.000%, 2/01/12

No Opt. Call

A

5,446,850

 

7,225

California, General Obligation Veterans Welfare Bonds, Series 2001BV, 5.600%, 12/01/32 - FSA

6/06 at 101.00

AAA

7,595,859

   Insured

 

California, General Obligation Bonds, Series 2003:

3,000

   5.250%, 2/01/20

8/13 at 100.00

A

3,200,910

1,400

   5.250%, 2/01/21

8/13 at 100.00

A

1,485,428

 

1,350

California, General Obligation Bonds, Series 2004, 5.125%, 4/01/25

4/14 at 100.00

A

1,392,350

 

3,615

Colton Joint Unified School District, San Bernardino County, California, General Obligation Bonds,

8/12 at 102.00

AAA

3,959,763

   Series 2002A, 5.500%, 8/01/22 - FGIC Insured

 

Contra Costa County Community College District, California, General Obligation Bonds, Series 2002:

3,005

   5.000%, 8/01/21 - FGIC Insured

8/12 at 100.00

AAA

3,149,030

3,300

   5.000%, 8/01/22 - FGIC Insured

8/12 at 100.00

AAA

3,441,273

 

1,325

Golden West Schools Financing Authority, California, Revenue Bonds, School District General

No Opt. Call

AAA

1,620,488

   Obligation Refunding Program, Series 1998A, 6.650%, 8/01/13 - MBIA Insured

 

8,330

Los Angeles Unified School District, California, General Obligation Bonds, Series 2000D, 5.375%,

7/10 at 100.00

AAA

8,870,117

   7/01/25 - FGIC Insured

 

10,840

Los Angeles Unified School District, California, General Obligation Bonds, Series 2002E, 5.000%,

7/12 at 100.00

AAA

11,466,552

   7/01/19 - MBIA Insured

 

1,250

Los Angeles Unified School District, California, General Obligation Bonds, Series 2003A, 5.250%,

7/13 at 100.00

AAA

1,355,463

   7/01/20 - FSA Insured

 

1,375

Lucia Mar Unified School District, San Luis Obispo County, California, General Obligation Bonds,

8/14 at 100.00

Aaa

1,494,955

   Series 2004A, 5.250%, 8/01/21 - FGIC Insured

 

2,000

Puerto Rico, General Obligation and Public Improvement Refunding Bonds, Series 2001A, 5.500%,

No Opt. Call

AAA

2,311,280

   7/01/20 - MBIA Insured

 

4,050

Santa Rosa High School District, Sonoma County, California, General Obligation Bonds, Series 2001,

5/11 at 101.00

AAA

4,269,551

   5.300%, 5/01/26 - FGIC Insured

 

1,160

Saugus Union School District, Los Angeles County, California, General Obligation Bonds, Series

8/12 at 100.00

AAA

1,215,204

   2002A, 5.000%, 8/01/21 - FGIC Insured

 

7,600

Southwestern Community College District, San Diego County, California, General Obligation Bonds,

8/11 at 101.00

AAA

8,106,464

   Series 2001, 5.375%, 8/01/25 - AMBAC Insured

 

2,710

Southwestern Community College District, San Diego County, California, General Obligation Bonds,

8/14 at 100.00

AAA

2,866,313

   Series 2004, 5.000%, 8/01/21 - FGIC Insured


Tax Obligation/Limited - 44.1% (29.9% of Total Investments)

 

9,000

Anitoch Area Public Facilities Financing Agency, California, Special Tax Bonds, Community

8/11 at 100.00

AAA

9,440,640

   Facilities District 1989-1, Series 2001, 5.250%, 8/01/25 - MBIA Insured

 

4,500

California, Economic Recovery Revenue Bonds, Series 2004A, 5.000%, 7/01/15

7/14 at 100.00

AA-

4,898,250

 

4,900

California State Public Works Board, Lease Revenue Bonds, Department of Corrections, Series 2003C,

12/13 at 100.00

A-

5,402,397

   5.500%, 6/01/16

 

1,200

Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community

9/13 at 100.00

N/R

1,225,656

   Facilities District 90-2, Talega, Series 2003, 6.000%, 9/01/33

 

4,000

Daly City Housing Development Finance Agency, California, Mobile Home Park Revenue Bonds,

12/13 at 102.00

A-

4,099,960

   Franciscan Mobile Home Park Project, Series 2002A, 5.850%, 12/15/32

 

4,845

Encinitas Public Financing Authority, California, Lease Revenue Bonds, Acquisition Project, Series

4/08 at 102.00

AAA

5,004,013

   2001A, 5.250%, 4/01/31 - MBIA Insured

 

750

Fontana, California, Special Tax Bonds, Sierra Community Facilities District 22, Series 2004,

9/14 at 100.00

N/R

756,248

   6.000%, 9/01/34

 

4,000

Industry Urban Development Agency, California, Tax Allocation Refunding Bonds, Civic, Recreational

5/07 at 101.50

AAA

4,316,240

   and Industrial Redevelopment Project 1, Series 2002, 5.500%, 5/01/19 - MBIA Insured

 

2,000

Lake Elsinore Public Financing Authority, California, Local Agency Revenue Refunding Bonds, Series

10/13 at 102.00

N/R

2,049,340

   2003H, 6.000%, 10/01/20

 

1,265

Lee Lake Water District, Riverside County, California, Special Tax Bonds, Community Facilities

9/13 at 102.00

N/R

1,378,167

   District 1 of Sycamore Creek, Series 2003, 6.500%, 9/01/24

 

1,320

Lincoln, California, Special Tax Bonds, Lincoln Crossing Community Facilities District 03-1, Series

9/13 at 102.00

N/R

1,398,976

   2003A, 6.500%, 9/01/25

 

1,000

Lincoln, California, Special Tax Bonds, Lincoln Crossing Community Facilities District 03-1, Series

9/13 at 102.00

N/R

1,016,930

   2004, 6.000%, 9/01/34

 

8,000

Los Angeles County Metropolitan Transportation Authority, California, Second Senior Lien

7/08 at 101.00

AAA

8,172,080

   Proposition C Sales Tax Revenue Refunding Bonds, Series 1998A, 5.000%, 7/01/23 - AMBAC Insured

 

5,000

Los Angeles County Metropolitan Transportation Authority, California, Proposition C Second Senior

No Opt. Call

AAA

5,610,450

   Lien Sales Tax Revenue Refunding Bonds, Series 2003A, 5.250%, 7/01/13 - MBIA Insured

 

3,295

Oakland Redevelopment Agency, California, Subordinate Lien Tax Allocation Bonds, Central District

3/13 at 100.00

AAA

3,652,705

   Redevelopment Project, Series 2003, 5.500%, 9/01/16 - FGIC Insured

 

2,000

Orange County, California, Special Tax Bonds, Community Facilities District 02-1 of Ladera Ranch,

8/11 at 101.00

N/R

2,033,020

   Series 2003A, 5.550%, 8/15/33

 

2,000

Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 2002E, 6.000%,

No Opt. Call

BBB+

2,304,720

   8/01/26

 

6,000

Riverside County Redevelopment Agency, California, Tax Allocation Bonds, Jurupa Valley Project

10/11 at 102.00

AAA

6,203,100

   Area, Series 2001, 5.250%, 10/01/35 - AMBAC Insured

 

1,055

Rohnert Park Finance Authority, California, Senior Lien Revenue Bonds, Rancho Feliz Mobile Home

9/13 at 100.00

BBB

1,061,763

   Park, Series 2003A, 5.750%, 9/15/38

 

700

Rohnert Park Finance Authority, California, Subordinate Lien Revenue Bonds, Rancho Feliz Mobile

9/13 at 100.00

N/R

710,612

   Home Park, Series 2003B, 6.625%, 9/15/38

 

700

Sacramento, California, Special Tax Bonds, North Natomas Community Facilities District 4, Series

9/14 at 100.00

N/R

718,900

   2003C, 6.000%, 9/01/33

 

975

San Marcos Public Facilities Authority, California, Special Tax Bonds, Community Facilities

9/09 at 102.00

N/R

989,196

   District 99-1, Series 2003B, 6.000%, 9/01/24

 

Santa Clara Valley Transportation Authority, California, Sales Tax Revenue Bonds, Series 2001A:

16,090

   5.000%, 6/01/25 - MBIA Insured

6/11 at 100.00

AAA

16,470,850

2,000

   5.000%, 6/01/26 - MBIA Insured

6/11 at 100.00

AAA

2,037,200

 

1,930

West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District

9/13 at 103.00

N/R

2,027,639

   01-1, Series 2003B, 6.750%, 9/01/30

 

850

West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District

9/13 at 103.00

N/R

857,344

   01-1, Series 2004A, 6.125%, 9/01/39

 

500

West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District

9/13 at 102.00

N/R

497,410

   01-1, Series 2004B, 6.000%, 9/01/39

 

3,045

Yucaipa Redevelopment Agency, California, Mobile Home Park Revenue Bonds, Rancho del Sol and

5/11 at 102.00

N/R

3,220,514

   Grandview, Series 2001A, 6.750%, 5/15/36


Transportation - 9.0% (6.1% of Total Investments)

 

7,000

Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding Bonds,

1/14 at 101.00

BBB-

5,506,690

   Series 1999, 0.000%, 1/15/27

 

5,585

Port of Oakland, California, Revenue Bonds, Series 2002N, 5.000%, 11/01/16 (Alternative Minimum

11/12 at 100.00

AAA

5,865,926

   Tax) - MBIA Insured

 

2,000

San Francisco Airports Commission, California, Revenue Refunding Bonds, San Francisco International

5/12 at 100.00

AAA

2,111,080

   Airport, Second Series 2002, Issue 28A, 5.250%, 5/01/17 (Alternative Minimum Tax) - MBIA Insured

 

San Francisco Airports Commission, California, Revenue Bonds, San Francisco International Airport,

Second Series 2003, Issue 29A:

2,430

   5.250%, 5/01/18 (Alternative Minimum Tax) - FGIC Insured

5/13 at 100.00

AAA

2,571,305

2,555

   5.250%, 5/01/19 (Alternative Minimum Tax) - FGIC Insured

5/13 at 100.00

AAA

2,694,375

 

1,000

San Francisco Airports Commission, California, Revenue Bonds, San Francisco International Airport,

5/13 at 100.00

AAA

1,077,120

   Second Series 2003, Issue 29B, 5.125%, 5/01/17 - FGIC Insured


Utilities - 10.2% (6.9% of Total Investments)

 

5,000

Anaheim Public Finance Authority, California, Second Lien Electric Distribution Revenue Bonds,

10/14 at 100.00

AAA

5,417,100

   Series 2004, 5.250%, 10/01/21 - MBIA Insured

 

6,000

California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A, 5.125%,

5/12 at 101.00

A2

6,370,320

   5/01/18

 

Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2003A-2:

750

   5.000%, 7/01/21 - MBIA Insured

7/13 at 100.00

AAA

789,255

1,000

   5.000%, 7/01/23 - MBIA Insured

7/13 at 100.00

AAA

1,041,390

 

3,000

Merced Irrigation District, California, Revenue Refunding Bonds, Electric System Project, Series

9/05 at 102.00

Baa3

3,097,680

   2001, 6.850%, 9/01/36

 

1,000

Merced Irrigation District, California, Revenue Certificates of Participation, Electric System

9/05 at 103.00

Baa3

1,041,010

   Project, Series 2002, 6.500%, 9/01/34

 

2,500

Pasadena, California, Electric Revenue Bonds, Series 2002, 5.250%, 6/01/20 - MBIA Insured

6/12 at 100.00

AAA

2,693,600

 

2,000

Santa Clara, California, Subordinate Electric Revenue Bonds, Series 2003A, 5.250%, 7/01/20 - MBIA

7/13 at 100.00

AAA

2,162,720

   Insured


Water and Sewer - 13.0% (8.8% of Total Investments)

 

2,740

California Department of Water Resources, Water System Revenue Bonds, Central Valley Project,

12/12 at 100.00

AAA

2,909,686

   Series 2002Z, 5.000%, 12/01/18 - FGIC Insured

 

4,900

East Bay Municipal Utility District, Alameda and Contra Costa Counties, California, Water System

6/11 at 100.00

AAA

4,991,140

   Subordinated Revenue Bonds, Series 2001, 5.000%, 6/01/26 - MBIA Insured

 

2,655

El Dorado Irrigation District, California, Water and Sewer Certificates of Participation, Series

3/14 at 100.00

AAA

2,806,893

   2004A, 5.000%, 3/01/20 - FGIC Insured

 

6,885

San Diego Public Facilities Financing Authority, California, Subordinate Lien Water Revenue Bonds,

8/12 at 100.00

AAA

7,212,654

   Series 2002, 5.000%, 8/01/21 - MBIA Insured

 

10,000

San Francisco City and County Public Utilities Commission, California, Clean Water Revenue

4/13 at 100.00

AAA

10,822,900

   Refunding Bonds, Series 2003A, 5.250%, 10/01/20 - MBIA Insured


$

311,697

Total Long-Term Investments (cost $315,602,802) - 147.4%

326,026,952



Other Assets Less Liabilities - 2.3%

5,098,996


Preferred Shares, at Liquidation Value - (49.7)%

(110,000,000)


Net Assets Applicable to Common Shares - 100%

$221,125,948


(1)  

All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares

unless otherwise noted.

*  

Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There

may be other call provisions at varying prices at later dates.

**  

Ratings: Using the higher of Standard & Poor's or Moody's rating.

N/R  

Investment is not rated.

Income Tax Information

The following information is presented on an income tax basis. Differences between amounts for financial

statement and federal income tax purposes are primarily due to timing differences in recognizing income

on taxable market discount securities and timing differences in recognizing certain gains and losses on

security transactions.

At November 30, 2004, the cost of investments was $315,593,637.

Gross unrealized appreciation and gross unrealized depreciation of investments at November 30, 2004,

were as follows:


Gross unrealized:

   Appreciation

$11,985,789

   Depreciation

(1,552,474)


Net unrealized appreciation of investments

$10,433,315


Item 2. Controls and Procedures.

  1. 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 this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, (17 CFR 240.13a-15(b) or 240.15d-15(b)).
  2. 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 has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

Item 3. Exhibits.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)), exactly as set forth below: EX-99 CERT 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)         Nuveen California Dividend Advantage Municipal Fund 2        

By (Signature and Title)*          /s/ Jessica R. Droeger--Vice President and Secretary        

Date         01/28/05        

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/ Gifford R. Zimmerman--Chief Administrative Officer (Principal Executive Officer)        

Date         01/28/05        

By (Signature and Title)*         /s/ Stephen D. Foy--Vice President and Controller (Principal Financial Officer)        

Date         01/28/05        

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