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, 2018

Date of reporting period: March 31, 2018
 
ITEM 1.
SCHEDULE OF INVESTMENTS
Eagle Capital Growth Fund, Inc.
Portfolio of Investments (as of March 31, 2018) (unaudited)

Common Stock (99.8% of total investments)
Industry
  
Shares
    
Cost
    
LEVEL ONE
Market Value
    
% Total Inv.
  
Consumer
                        
Colgate-Palmolive Co.
    
69,300
      
4,347,559
      
4,967,424
        
Procter & Gamble Co
    
15,000
      
1,203,316
      
1,189,200
        
                   
$
6,156,624
      
(18.6
%)
Data Processing
                                
Automatic Data Processing, Inc.
    
15,500
      
827,769
      
1,758,940
          
Paychex, Inc.
    
26,500
      
1,005,569
      
1,632,135
          
                   
$
3,391,075
      
(10.2
%)
Drug/Medical Device
                                
Abbott Laboratories Inc.
    
7,500
      
175,588
      
449,400
          
Johnson & Johnson
    
4,000
      
45,500
      
512,600
          
Stryker Corp.
    
11,000
      
47,141
      
1,770,120
          
                   
$
2,732,120
      
(8.2
%)
Financial
                                
American Express Company
    
10,000
      
935,500
      
932,800
          
                   
$
932,800
      
(2.8
%)
Food
                                
Kraft Heinz Company
    
27,000
      
1,736,415
      
1,681,830
          
PepsiCo, Inc.
    
10,000
      
168,296
      
1,091,500
          
                   
$
2,773,330
      
(8.4
%)
Industrial
                                
Illinois Tool Works Inc.
    
9,000
      
379,352
      
1,409,940
          
Waters Corp.*
    
6,000
      
302,341
      
1,191,900
          
                   
$
2,601,840
      
(7.9
%)
Insurance
                                
Berkshire Hathaway Inc. B*
    
8,000
      
590,996
      
1,595,840
          
Markel Corp.*
    
1,300
      
831,360
      
1,521,325
          
                   
$
3,117,165
      
(9.4
%)
Mutual Fund Managers
                                
Diamond Hill Investment Group
    
8,000
      
1,541,203
      
1,652,480
          
Franklin Resources, Inc.
    
43,000
      
1,494,255
      
1,491,240
          
T. Rowe Price Group Inc.
    
25,000
      
1,744,470
      
2,699,250
          
                   
$
5,842,970
      
(17.6
%)
Restaurant
                                
Starbucks Corp.
    
30,000
      
1,635,297
      
1,736,700
          
                   
$
1,736,700
      
(5.2
%)
Retail
                                
AutoZone Inc.*
    
1,500
      
797,565
      
973,035
          
eBay Inc.*
    
45,000
      
1,131,960
      
1,810,800
          
O'Reilly Automotive Inc.*
    
4,000
      
814,758
      
989,520
          
                   
$
3,773,355
      
(11.4
%)
                                 
Total common stock investments
                  
$
33,057,979
          
                                 
Money Market Funds (0.2% of total investments)
                  
LEVEL ONE
          
Morgan Stanley Inst. Liquidity Fund, Treasury, yield 1.31%
              
64,577
      
(0.2
%)
                                 
Total investments
                  
$
33,122,556
          
All other assets
                    
254,792
          
Accrued investment advisory fees
                    
(24,110
)
        
All other liabilities
                    
(76,069
)
        
                                 
Total net assets
                  
$
33,277,169
          
 
*Non-dividend paying security
 
Footnote:

The following information is based upon federal income tax cost of portfolio investments, excluding money market investments, as of March 31, 2018:

Gross unrealized appreciation
  
$
11,617,848
  
Gross unrealized depreciation
    
316,078
  
Net unrealized appreciation
  
$
11,301,770
  
         
Federal income tax basis
  
$
21,756,209
  
 
ITEM 2.
Controls and Procedures
 
(a)
As of April 3, 2018, 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.