formnq.htm
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: 811-05807
Eagle Capital Growth Fund, Inc.
(Exact name of registrant as specified in charter)
 
205 E. Wisconsin Ave, Suite 120, Milwaukee, WI 53202
(Address of principal executive offices) (zip code)
Luke E. Sims, President
Eagle Capital Growth Fund, Inc.
205 E. Wisconsin Ave
Suite 120
Milwaukee, WI 53202
(414) 765-1107
(Name and address of agent for service)
Registrant's telephone number, including area code:
(414) 765-1107

Date of fiscal year end: December 31, 2012

Date of reporting period: March 31, 2012
 
 
 
 
 
ITEM 1.   SCHEDULE OF INVESTMENTS
Eagle Capital Growth Fund, Inc.
Portfolio of Investments (as of March 31, 2012) (unaudited)

Industry
                        
                         
Common Stock (70.5% of total investments)
                        
Industry
                        
Consumer
  
Shares
    
Cost
    
Market Value
    
% Total Inv.
  
Colgate-Palmolive Co.
     6,000       72,938       586,680        
PepsiCo, Inc.
     10,000       168,296       663,500        
Procter & Gamble Co.
     12,000       718,280       806,520        
                    $ 2,056,700       (8.5 %)
Data Processing
                                
Automatic Data Processing, Inc.
     24,000       877,946       1,324,560          
Paychex, Inc.
     31,000       797,952       960,690          
                    $ 2,285,250       (9.5 %)
Drug/Medical Device
                                
Abbott Laboratories Inc.
     15,000       738,297       919,350          
Johnson & Johnson
     12,500       484,536       824,500          
Stryker Corp.
     20,000       95,500       1,109,600          
                    $ 2,853,450       (11.9 %)
Industrial
                                
Hillenbrand, Inc.
     47,000       913,456       1,078,650          
Illinois Tool Works Inc.
     17,000       786,916       971,040          
Sigma-Aldrich Corp.
     16,000       498,184       1,168,960          
Waters Corp.*
     6,000       302,341       555,960          
                    $ 3,774,610       (15.7 %)
Mutual Fund Managers
                                
Eaton Vance Corp.
     34,000       801,121       971,720          
Franklin Resources, Inc.
     4,500       427,398       558,135          
                    $ 1,529,855       (6.4 %)
Insurance
                                
Berkshire Hathaway Inc.*
     17,000       1,303,475       1,379,550          
The Chubb Corporation
     14,000       715,049       967,540          
                    $ 2,347,090       (9.7 %)
Retail/Distribution
                                
Best Buy Co., Inc.
     31,000       1,057,843       734,080          
Sysco Corp.
     27,000       309,199       806,220          
                    $ 1,540,300       (6.4 %)
Closed-End Funds
                                
Diamond Hill Financial Trends Fund, Inc.
     55,182       527,969       596,517          
                    $ 596,517       (2.5 %)
                                 
Total common stock investments
                   $ 16,983,772          
                                 
Cash and cash equivalents (29.5% of total investments)
                     7,091,225          
                                 
Total investments
                   $ 24,074,997          
                                 
All other assets less liabilities
                     3,685          
                                 
Total net assets
                   $ 24,078,682          
 
*Non-dividend paying security
 
 
 
 
 
 
Footnote:

The following information is based upon federal income tax cost of portfolio investments as of March 31, 2012:

Gross unrealized appreciation
 
$
5,732,997
 
Gross unrealized depreciation
 
 
( 345,920
)
Net unrealized appreciation
 
$
5,387,077
 
 
 
 
 
 
Federal income tax basis
 
$
11,596,695
 
 
ITEM 2.  Controls and Procedures
 
 
(a)
As of April 1, 2012, an evaluation of the effectiveness of the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) was performed by management with the participation of the registrant's President and Chief Executive Officer (who is the principal executive officer of the registrant) and the registrant’s Chief Financial Officer (who is the principal financial officer of the registrant).  Based on that evaluation, the registrant's President and Chief Executive Officer and Chief Financial Officer concluded that the registrant's disclosure controls and procedures are effectively designed to ensure that information required to be disclosed by the registrant is recorded, processed, summarized and reported within the time periods specified by the Commission's rules and forms, and that information required to be disclosed by the registrant has been accumulated and communicated to the registrant's management, including its principal executive officer and principal financial officer, or persons performing similar functions as appropriate to allow timely decisions regarding required disclosure.
 
 
(b)
Fair Value Accounting—Accounting standards require certain assets and liabilities be reported at fair value in the financial statements and provides a framework for establishing that fair value.  The framework for determining fair value is based on a hierarchy that prioritizes the inputs and valuation techniques used to measure fair value.
 
In general, fair values determined by Level 1 inputs use quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.
 
Fair values determined by Level 2 inputs use other inputs that are observable, either directly or indirectly.  These Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals.
 
Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset.  These level 3 fair value measurements are based primarily on management’s own estimates using pricing models, discounted cash flow methodologies, or similar techniques taking into account the characteristics of the asset.