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United States

Securities and Exchange Commission

Washington, D.C. 20549

Form N-Q

(414) 765-1107

Date of fiscal year end: December 31, 2015

Date of reporting period: March 31, 2015

 

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ITEM 1. SCHEDULE OF INVESTMENTS

Eagle Capital Growth Fund, Inc.

Portfolio of Investments (as of March 31, 2015) (unaudited)

Common Stock (93.6% of total investments)														LEVEL ONE
Industry
Bank		Shares				Cost				Market Value				% Total Inv.
Wells Fargo & Company			15,000				597,750				816,000
										$	816,000				(2.9	%)
Consumer
The Coca-Cola Company			28,000				1,058,939				1,135,400
Colgate-Palmolive Co.			12,000				72,938				832,080
PepsiCo, Inc.			10,000				168,296				956,200
										$	2,923,680				(10.4	%)
Data Processing
Automatic Data Processing, Inc.			16,000				490,404				1,370,240
Paychex, Inc.			31,500				853,258				1,562,873
										$	2,933,113				(10.4	%)
Drug/Medical Device
Abbott Laboratories Inc.			7,500				175,588				347,475
Johnson & Johnson			4,000				45,500				402,400
Stryker Corp.			16,500				72,531				1,522,125
										$	2,272,000				(8.0	%)
Industrial
Deere & Company			20,000				1,681,501				1,753,800
Emerson Electric Co.			18,000				810,169				1,019,160
Illinois Tool Works Inc.			15,500				710,498				1,505,670
Sigma-Aldrich Corp.			7,000				58,094				967,750
Waters Corp.*			6,000				302,341				745,920
										$	5,992,300				(21.2	%)
Insurance
AFLAC Corp.			19,000				1,018,259				1,216,190
Berkshire Hathaway Inc.*			17,000				1,303,475				2,453,440
The Chubb Corporation			14,000				752,716				1,415,400
Markel Corp.*			1,875				1,199,077				1,441,800
										$	6,526,830				(23.1	%)
Mutual Fund Managers
Franklin Resources, Inc.			45,000				1,884,631				2,309,400
T Rowe Price Group Inc.			15,500				1,096,545				1,255,190
										$	3,564,590				(12.6	%)
Closed-End Funds
MCG Capital Corporation*			354,768				1,424,887				1,404,881
										$	1,404,881				(5.0	%)
Total common stock investments										$	26,433,394
Money Market Funds (6.4% of total investments)														LEVEL ONE
										Market Value				% Total Inv.
Federated Government Obligations Fund #5 Institutional, 0%											1,800,205				(6.4	%)
Total investments										$	28,233,599
All other assets less liabilities											44,724
Total net assets										$	28,278,323

 

*Non-dividend paying security

 

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Footnote:

The following information is based upon federal income tax cost of portfolio investments as of March 31, 2015:

ITEM 2. Controls and Procedures

(a)

As of April 1, 2015, 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.

 

 

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