N-Q 1 franknq.htm UNITED STATES

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: 811-21532


Frank Funds

(Exact Name of Registrant as Specified in Charter)


6 Stacy Court, Parsippany, NJ  07054

(Address of Principal Executive Offices)  (Zip Code)


Alfred C. Frank, Frank Capital Partners LLC

6 Stacy Court, Parsippany, NJ  07054

(Name and Address of Agent for Service)


With copy to:

JoAnn M. Strasser, Thompson Hine LLP

312 Walnut Street, 14th Floor, Cincinnati, Ohio  45202


Registrant’s Telephone Number, including Area Code:  973-887-7698


Date of fiscal year end: June 30


Date of reporting period: March 31, 2009


Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (ss.ss. 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, and 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. ss. 3507.


ITEM 1. SCHEDULE OF INVESTMENTS.

     

 

 

Frank Value Fund

 

 
  

Schedule of Investments

  

 

 

March 31, 2009 (Unaudited)

 

 
     

Shares

  

Value

 
     

COMMON STOCKS - 96.79%

  
     

Cable & Other Pay Television Services - 2.63%

  

1,185

 

Liberty Global, Inc. Class-A *

$            17,254

 

168

 

Liberty Global, Inc. Series-C *

               2,374

 
   

19,628

 

Commercial Banks, NEC - 0.19%

  

567

 

Citigroup, Inc.

1,435

 
     

Communications Equipment - 1.51%

  

2,493

 

Lojack Corp. *

11,293

 
     

Computer Communications Equipment - 5.92%

  

2,638

 

Cisco Systems, Inc. *

44,239

 
     

Concrete, Gypsum & Plaster Products - 1.06%

  

1,045

 

USG Corp. *

7,952

 
     

Electric Services - 1.85%

  

1,211

 

Mirant Corp. *

13,805

 
     

Electronic Computers - 2.59%

  

2,044

 

Dell, Inc. *

19,377

 
     

Finance Services - 9.37%

  

1,371

 

American Express Co.

18,687

 

1,928

 

Americredit Corp. *

11,298

 

2,149

 

Broadridge Financial Solutions, Inc.

              39,993

 
   

69,978

 

Fire, Marine & Casualty Insurance - 1.89%

  

5

 

Berkshire Hathaway, Inc. Class-B *

14,100

 
     

Hospital & Medical Service Plans - 4.68%

  

3,105

 

Wellcare Health Plans, Inc. *

34,931

 
     

Household Furniture - 1.52%

  

1,551

 

Tempur-Pedic International, Inc.

11,322

 
     

Men's & Boy's Furnishings, Work Clothing & Allied Garments - 3.28%

  

991

 

Cintas Corp.

24,498

 
     

Miscellaneous Furniture & Fixtures - 1.39%

  

1,694

 

Knoll, Inc.

10,384

 
     

Motorcycles, Bicycles & Parts - 1.19%

  

664

 

Harley Davidson, Inc.

8,891

 
     

Perfumes, Cosmetics & Other Toliet Preparations - 1.99%

  

3,627

 

Bare Escentuals, Inc. *

14,871

 
     

Pharmaceutical Preparations - 6.51%

  

1,057

 

NBTY, Inc. *

14,883

 

1,199

 

Pfizer, Inc.

16,330

 

3,360

 

Prestige Brands Holdings, Inc. *

              17,405

 
   

48,618

 

Retail-Drug Store and Proprietary Stores - 6.19%

  

2,807

 

Petmed Express, Inc. *

46,259

 
     

Retail-Miscellaneous Shopping Goods Stores - 3.39%

  

1,400

 

Staples, Inc.

25,354

 
     

Retail-Radio, TV & Consumer Electronics Stores - 4.06%

  

799

 

Best Buy Co., Inc.

30,330

 
     

Semiconductors & Related Devices - 2.62%

  

1,301

 

Intel Corp.

19,554

 
     

Services-Advertising Agencies - 3.42%

  

3,002

 

Valueclick, Inc. *

25,547

 
     

Services-Business Services - 10.25%

  

6,038

 

Bidz.com *

24,273

 

2,704

 

Ebay, Inc. *

33,962

 

1,461

 

Western Union Co.

              18,365

 
   

76,600

 

Services-Computer Programming - 3.00%

  

4,824

 

Pros Holdings, Inc. *

22,432

 
     

Services-Consumer Credit Reporting - 2.63%

  

856

 

Moody's, Inc.

19,620

 
     

Services-Help Supply Services - 2.48%

  

2,247

 

Trueblue, Inc. *

18,538

 
     

Services-Mailing, Reproduction - 1.51%

  

3,186

 

American Reprographics Co. *

11,278

 
     

Services-Management Consulting - 3.08%

  

1,588

 

Corporate Executive Board Co.

23,026

 
     

Services-Prepackaged Software - 2.49%

  

1,014

 

Microsoft Corp.

18,627

 
     

Telegraph & Other Message Communications - 4.10%

  

1,402

 

J2 Global Communications, Inc. *

              30,689

 
     

TOTAL FOR COMMON STOCKS (Cost $1,136,799) - 96.79%

$          723,176

 
     

SHORT TERM INVESTMENTS - 3.29%

  

24,564

 

First American Treasury Obligations Fund Class Y 0.17% ** (Cost $24,564)

              24,564

 
     

TOTAL INVESTMENTS (Cost $1,161,363) - 100.08%

$          747,740

 
     

LIABILITIES IN EXCESS OF OTHER ASSETS - (0.08%)

(609)

 
     

NET ASSETS - 100.00%

$          747,131

 
     

* Non-income producing securities during the period.

  

** Variable rate security; the coupon rate shown represents the yield at March 31, 2009.

  
     

NOTES TO FINANCIAL STATEMENTS

  

Frank Value Fund

   

1. SECURITY TRANSACTIONS

  

At March 31, 2009, the net unrealized depreciation on investments, based on cost for federal income tax purposes of $1,161,363 amounted to $413,622, which consisted of aggregate gross unrealized appreciation of $35,919 and aggregate gross unrealized depreciation of $449,541.

 
 
 
     

2. NEW ACCOUNTING PRONOUNCEMENTS

  

The  Fund  adopted Financial Accounting Standards Board Statement of Financial Accounting Standards  No. 157, Fair Value Measurements ("FAS 157"), effective January 1, 2008. In  accordance with  FAS 157,  fair value is defined as the price  that  the Fund would receive to sell an asset or pay to transfer a liability  in  an orderly transaction between market participants at the measurement date.  FAS 157 also establishes a framework for measuring fair value, and a three-level  hierarchy  for fair value measurements based upon the transparency  of  inputs  to  the valuation of an asset or liability.

Inputs may be observable  or  unobservable  and refer broadly to the assumptions that market participants  would  use  in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability  based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund's own assumptions about the assumptions that market participants would use in pricing the asset or liability developed based  on the best information available in the circumstances. Each investment is assigned a level based upon the

observability of the inputs which are significant  to  the  overall valuation. The three-tier hierarchy of inputs is summarized below:

 
 
 
 
 
 
 
 
 
 
 
 
 
 
     

Level 1 - quoted prices in active markets for identical investments

  
     

Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

 
 
     

Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

 
 
     

The  inputs  or methodology used for valuing securities are not necessarily an indication of  the risk associated with investing in those securities. Money market securities are valued using amortized cost, in accordance with rules under  the  Investment Company Act of 1940. Generally, amortized cost approximates the current fair value of a security, but since the value is not obtained  from a quoted price in an active market, such securities are reflected as Level 2.

 
 
 
 
 
     

The following table summarizes the valuation of the Fund's investments by the above fair value hierarchy levels as of March 31, 2009:

 
 
     
   

INVESTMENT

OTHER

   

IN

FINANCIAL

   

SECURITIES

INSTRUMENTS*

======================================================================================================

Level 1 - Quoted prices

 $           747,740

 $                      -   

Level 2 - Other significant observable inputs

                      -   

                          -   

Level 3 - Significant unobservable inputs

                        -   

                         -   

Total                                      

 $           747,740

 $                      -   

     

*Other  financial  instruments are derivative instruments not reflected in the Portfolio  of Investments, such as futures forwards and swap contracts, which  are valued at the unrealized appreciation/depreciation on the instrument.

 
 
 
     
     

 

 

Leigh Baldwin Total Return Fund

 

 
  

Schedule of Investments

  

 

 

March 31, 2009 (Unaudited)

 

 
     

Shares

  

Value

 
     

COMMON STOCKS - 70.42%

  
     

Cigarettes - 3.80%

   

2,400

 

Altria Group, Inc.

$            38,448

 
     

Electronic & Other Electrical Equipment - 2.80%

  

2,800

 

General Electric Co.

28,308

 
     

Farm Machinery & Equipment - 1.20%

  

3,000

 

Arts Way Manufacturing Co., Inc.

12,150

 
     

Finance Services - 1.56%

  

2,000

 

Oneida Financial Corp.

15,800

 
     

Food & Kindred Products - 4.18%

  

1,900

 

Kraft Foods, Inc.

42,351

 
     

Grain Mill Products - 3.62%

  

1,000

 

Kellogg Co.

36,630

 
     

Guided Missiles & Space Vehicles - 3.41%

  

500

 

Lockheed Martin Corp.

34,515

 
     

Motorcycles, Bicycles & Parts - 2.12%

  

1,600

 

Harley Davidson, Inc.

21,424

 
     

National Commercial Banks - 2.17%

  

1,500

 

US Bancorp.

21,915

 
     

Oil & Gas Field Machinery & Equipment - 1.99%

  

1,500

 

Oil States International, Inc. *

20,130

 
     

Petroleum Refining - 4.64%

  

1,200

 

Conocophilips

46,992

 
     

Pharmaceutical Preparations - 3.59%

  

1,300

 

Sanofi-Aventis *

36,309

 
     

Plastic Material, Synth/Resin Rubber Cellulos - 4.41%

  

2,000

 

Dupont E I De Nemours & Co.

44,660

 
     

Rubber & Plastics Footwear - 4.63%

  

1,000

 

Nike, Inc.

46,890

 
     

Security Brokers, Dealers & Flotation Companies - 4.59%

  

3,000

 

Charles Schwab & Co., Inc.

46,500

 
     

Services-Miscellaneous Amusement & Recreation Services - 2.33%

  

1,300

 

Walt Disney Co.

23,608

 
     

Services-Motion Picture & Video - 2.14%

  

1,000

 

Dreamworks Animation SKG, Inc. *

21,640

 
     

Services-Prepackaged Software - 5.45%

  

3,000

 

Microsoft Corp.

55,110

 
     

Surgical & Medical Instruments - 4.42%

  

900

 

3M Co.

44,748

 
     

Telephone Communications - 3.98%

  

1,600

 

AT&T Corp.

40,320

 
     

Wholesale-Groceries & Related Products - 3.39%

  

1,500

 

Sysco Corp.

              34,200

 
     

TOTAL FOR COMMON STOCKS (Cost $827,001) - 70.42%

$          712,648

 
     

EXCHANGE TRADED FUNDS - 12.02%

  

1,500

 

Aberdeen Asia Global Fund

$            12,750

 

3,000

 

Aberdeen Asia Pacific Fund

14,310

 

1,500

 

The Gabelli Global Gold, Natural Resources & Income Trust

23,520

 

1,000

 

Nuveen New York Municipal Value Fund, Inc.

8,950

 

1,000

 

Nuveen Select Tax-Free Income Portfolio

13,670

 

200

 

UltraShort S&P500 Proshares

15,860

 

1,500

 

Templeton Global Income Fund

11,145

 

2,000

 

Western Asset Inflation Linked Fund

              21,460

 
     

TOTAL FOR EXCHANGE TRADED FUNDS (Cost $118,030) - 12.02%

$          121,665

 
     

 PUT OPTIONS PURCHASED

  
     

Shares Subject

 

Underlying Security

  

to Put

 

Expiration Date/Exercise Price

  
     
  

3M Co.

  

900

 

 January 2010 Put @ 45.00

$              4,680

 
     
  

Altria Group, Inc.

  

1,000

 

January 2010 Put @ 12.50

880

 

1,400

 

January 2010 Put @ 15.00

               2,478

 
   

3,358

 
  

AT&T Corp.

  

1,600

 

January 2010 Put @ 22.50

               4,784

 
     
  

Charles Schwab & Co., Inc.

  

3,000

 

January 2011 Put @ 12.50

               8,550

 
     
  

Conocophilips

  

1,200

 

January 2011 Put @ 35.00

               9,540

 
     
  

Dupont E I De Nemours & Co.

  

2,000

 

January 2010 Put @ 20.00

               6,000

 
     
  

General Electric Co.

  

2,000

 

January 2011 Put @ 7.50

               4,080

 
     
  

Harley Davidson, Inc.

  

1,300

 

January 2010 Put @ 20.00

              10,920

 
     
  

Kellogg Co.

  

1,000

 

January 2011 Put @ 35.00

               5,400

 
     
  

Kraft Foods, Inc.

  

1,400

 

January 2010 Put @ 22.50

               4,312

 
     
  

Lockheed Martin Corp.

  

300

 

January 2010 Put @ 70.00

3,330

 

100

 

January 2010 Put @ 60.00

                  640

 
   

3,970

 
  

Microsoft Corp.

  

3,000

 

January 2011 Put @ 10.00

               3,420

 
     
  

Nike, Inc.

  

1,000

 

January 2011 Put @ 35.00

               6,000

 
     
  

Sanofi-Aventis

  

1,300

 

January 2010 Put @ 25.00

               3,380

 
     
  

US Bancorp.

  

400

 

January 2010 Put @ 17.50

2,560

 

1,100

 

January 2010 Put @ 22.50

              10,340

 
   

              12,900

 
  

Walt Disney Co.

  

1,300

 

January 2010 Put @ 20.00

               5,200

 
     
  

TOTAL (Premiums Paid $92,220) - 9.53%

$            96,494

 
     

SHORT TERM INVESTMENTS - 10.09%

  

102,066

 

First American Treasury Obligations Fund Class Y 0.65%** (Cost $102,066)

            102,066

 
     

TOTAL INVESTMENTS (Cost $1,037,251) - 102.06%

$        1,032,873

 
     

LIABILITIES IN EXCESS OF OTHER ASSETS - (2.06%)

(20,863)

 
     

NET ASSETS - 100.00%

$        1,012,010

 
     

* Non-income producing securities during the period.

  

** Variable rate security; the coupon rate shown represents the yield at March 31, 2009.

  
     
     

 

 

Leigh Baldwin Total Return Fund

 

 

  

Schedule of Call Options Written

  

 

 

March 31, 2009 (Unaudited)

 

 

     
  

CALL OPTIONS WRITTEN

  
     

Shares Subject

 

Underlying Security

  

to Call

 

Expiration Date/Exercise Price

Value

 
     
  

3M Co.

  

                    900

 

 April 2009 Call @ 50.00

$              1,620

 
     
  

Altria Group, Inc.

  

                  2,400

 

 April 2009 Call @ 17.00

                  336

 
     
  

AT&T Corp.

  

                  1,600

 

 April 2009 Call @ 26.00

                  576

 
     
  

Charles Schwab & Co., Inc.

  

                  3,000

 

 April 2009 Call @ 15.00

               4,050

 
     
  

Conocophilips

  

                  1,200

 

 April 2009 Call @ 40.00

               1,512

 
     
  

Dreamworks Animation SKG, Inc.

  

                  1,000

 

 April 2009 Call @ 22.50

                  550

 
     
  

Dupont E I De Nemours & Co.

  

                  2,000

 

 April 2009 Call @ 22.50

               2,000

 
     
  

General Electric Co.

  

                  2,800

 

 April 2009 Call @ 12.00

                  420

 
     
  

Harley Davidson, Inc.

  

                  1,600

 

 April 2009 Call @ 15.00

                  960

 
     
  

Kellogg Co.

  

                  1,000

 

 April 2009 Call @ 45.00

                    50

 
     
  

Kraft Food, Inc.

  

                  1,900

 

 April 2009 Call @ 22.50

               1,064

 
     
  

Lockheed Martin Corp.

  

                    500

 

 April 2009 Call @ 70.00

               1,200

 
     
  

Microsoft Corp.

  

                  3,000

 

 April 2009 Call @ 17.50

               3,810

 
     
  

Nike, Inc.

  

                  1,000

 

 April 2009 Call @ 50.00

                  800

 
     
  

Oil States International, Inc.

  

                  1,500

 

 April 2009 Call @ 15.00

                  675

 
     
  

UltraShort S&P500 Proshares

  

                    200

 

 April 2009 Call @ 90.00

                  470

 
     
  

Sanofi-Aventis

  

                  1,300

 

 April 2009 Call @ 30.00

                  390

 
     
  

Sysco Corp.

  

                  1,500

 

 April 2009 Call @ 22.50

               1,050

 
     
  

US Bancorp.

  

                  1,500

 

 April 2009 Call @ 17.50

                  450

 
     
  

Walt Disney Co.

  

                  1,300

 

 April 2009 Call @ 17.50

               1,625

 
     
  

Total (Premiums Received $20,774)

$            23,608

 
     

NOTES TO FINANCIAL STATEMENTS

  

Leigh Baldwin Total Retrun Fund

  

1. SECURITY TRANSACTIONS

  

At March 31, 2009, the net unrealized depreciation on investments, based on cost for federal income tax purposes of $1,037,251 amounted to $109,278, which consisted of aggregate gross unrealized appreciation of $44,915 and aggregate gross unrealized depreciation of $154,192.

 
 
 
     

2. NEW ACCOUNTING PRONOUNCEMENTS

  

The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements ("FAS 157"), effective January 1, 2008. In accordance with FAS 157, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date.  FAS 157 also establishes a framework for measuring fair value, and a three-level  hierarchy  for fair value measurements based upon the transparency  of  inputs  to  the valuation of an asset or liability.

Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund's own assumptions about the assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below:

 
 
 
 
 
 
 
 
 
 
 
 
 
 
     

Level 1 - quoted prices in active markets for identical investments

  
     

Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

 
 
     

Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

 
 
     

The inputs or methodology used for valuing securities are not necessarily an indication of  the risk associated with investing in those securities. Money market securities are valued using amortized cost, in accordance with rules under the Investment Company Act of 1940. Generally, amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2.

 
 
 
 
 
     

The following table summarizes the valuation of the Fund's investments by the above fair value hierarchy levels as of March 31, 2009:

 
 
     
   

INVESTMENT

OTHER

   

IN

FINANCIAL

Valuation Inputs of Assets

SECURITIES

INSTRUMENTS*

======================================================================================================

Level 1 - Quoted prices

 $        1,032,873

 $                      -   

Level 2 - Other significant observable inputs

                        -   

                           -   

Level 3 - Significant unobservable inputs

                        -   

                      -   

Total                                      

 $        1,032,873

 $                      -   

     
   

INVESTMENT

OTHER

   

IN

FINANCIAL

Valuation Inputs of Liabilities

SECURITIES

INSTRUMENTS*

======================================================================================================

Level 1 - Quoted prices

 $             23,608

 $                      -   

Level 2 - Other significant observable inputs

                        -   

                        -   

Level 3 - Significant unobservable inputs

                        -   

                      -   

Total                                      

 $             23,608

 $                      -   

     

*Other  financial  instruments are derivative instruments not reflected in the Portfolio  of Investments, such as futures forwards and swap contracts, which  are valued at the unrealized appreciation/depreciation on the instrument.

 
 
 
     



ITEM 2. CONTROLS AND PROCEDURES.


(a)

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Registrant maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Registrant's filings under the Securities Exchange Act of 1934 and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant's management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant's management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Within 90 days prior to the filing date of this Quarterly Schedule of Portfolio Holdings on Form N-Q, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant's management, including the Registrant's principal executive officer and the Registrant's principal financial officer, of the effectiveness of the design and operation of the Registrant's disclosure controls and procedures. Based on such evaluation, the Registrant's principal executive officer and principal financial officer concluded that the Registrant's disclosure controls and procedures are effective.

(b)

CHANGES IN INTERNAL CONTROLS. There have been no significant changes in the Registrant's internal controls or in other factors that could significantly affect the internal controls subsequent to the date of their evaluation in connection with the preparation of this Quarterly Schedule of Portfolio Holdings on Form N-Q.


ITEM 3. EXHIBITS.


Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.


SIGNATURES


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.



Frank Funds


By /s/Alfred C. Frank, President

 Alfred C. Frank

 President


Date: May 27, 2009


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 /s/Alfred C. Frank, President

Alfred C. Frank

President


Date May 27, 2009


By /s/Brian J. Frank

Brian J. Frank

Treasurer


Date May 27, 2009