formnq.htm
N-Q 1 formnq.htm EAGLE CAPITAL GROWTH FUND, INC NQ 03-30-2012
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)
 
225 East Mason Street, Suite 802, Milwaukee, WI 53202-3657
(Address of principal executive offices) (zip code)
Luke E. Sims, President
Eagle Capital Growth Fund, Inc.
225 East Mason Street
Suite 802
Milwaukee, WI 53202-3657
(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: September 30, 2012

 
 
 
 
ITEM 1.
SCHEDULE OF INVESTMENTS
Eagle Capital Growth Fund, Inc.
Portfolio of Investments (as of September 30, 2012) (unaudited)

Common Stock (70.8% of total investments)
              
LEVEL ONE
        
                         
Industry
                        
Consumer
  
Shares
    
Cost
    
Market Value
    
% Total Inv.
  
Colgate-Palmolive Co.
     6,000     $ 72,938     $ 643,320        
PepsiCo, Inc.
     10,000       168,296       707,700        
Procter & Gamble Co.
     11,000       658,137       762,960        
                    $ 2,113,980       (8.6 %)
Data Processing
                                
Automatic Data Processing, Inc.
     24,000       877,946       1,407,840          
Paychex, Inc.
     31,000       797,952       1,031,990          
                    $ 2,439,830       (10.0 %)
Drug/Medical Device
                                
Abbott Laboratories Inc.
     7,500       365,998       514,200          
Johnson & Johnson
     12,500       484,536       861,375          
Stryker Corp.
     20,000       95,500       1,113,200          
                    $ 2,488,775       (10.2 %)
Industrial
                                
Emerson Electric Co.
     22,000       990,207       1,061,940          
Hillenbrand, Inc.
     57,000       1,109,325       1,036,830          
Illinois Tool Works Inc.
     17,000       786,916       1,010,990          
Sigma-Aldrich Corp.
     16,000       498,184       1,151,550          
Waters Corp.*
     6,000       302,341       499,980          
                    $ 4,761,290       (19.5 %)
Mutual Fund Managers
                                
Eaton Vance Corp.
     34,000       801,121       984,640          
Franklin Resources, Inc.
     4,500       427,398       562,815          
                    $ 1,547,455       (6.3 %)
Insurance
                                
Berkshire Hathaway Inc.*
     17,000       1,303,475       1,499,400          
The Chubb Corporation
     14,000       715,049       1,067,920          
                    $ 2,567,320       (10.5 %)
Retail/Distribution
                                
Sysco Corp.
     20,000       142,750       625,400          
                    $ 625,400       (2.6 %)
Closed-End Funds
                                
Diamond Hill Financial Trends Fund, Inc.
     69,219       676,480       779,406          
                    $ 779,406       (3.2 %)
                                 
Total common stock investments
                   $ 17,323,456          
                                 
Money Market Funds (29.2% of total investments)
                  
LEVEL ONE
          
Federated Government Obligations Fund #5 Institutional, .02%**
     7,146,762       7,146,762       7,146,762       (29.2 %)
                                 
Total investments
                   $ 24,470,218          
                                 
All other assets less liabilities
                     31,775          
Accrued investment advisory fees
                     14,637          
                                 
Total net assets
                   $ 24,487,357          
 
*
Non-dividend paying security
**
The rate shown represents the 7-day yield at September 30, 2012.
 
 
 
 

Footnote:
 
The following information is based upon federal income tax cost of portfolio investments as of September 30, 2012:

Gross unrealized appreciation
  
$
6,141,278
  
Gross unrealized depreciation
    
( 92,371
)
Net unrealized appreciation
  
$
6,048,907
  
         
Federal income tax basis
  
$
11,274,550
  

ITEM 2.
Controls and Procedures
 
 
(a)
As of October 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.