N-Q 1 franknq201005.htm Sec filing

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)


312 East 22nd Street, #2B, New York, NY  10010

 (Address of Principal Executive Offices)  (Zip Code)


Brian J. 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, 2010


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, 2010 (Unaudited)

 
      

Shares

   

Value

 
      

COMMON STOCKS - 92.61%

    
      

Apparel & Other Finished Prods of Fabrics & Similar Material - 3.97%

   

3,852

True Religion Apparel, Inc. *

  

$       116,947

 
      

Communications Equipment, NEC - 1.60%

    

11,372

Lojack Corp. *

  

46,966

 
      

Communications Services, NEC - 2.45%

    

2,865

Neustar, Inc. *

  

72,198

 
      

Computer Communications Equipment - 4.63%

    

5,238

Cisco Systems, Inc. *

  

136,345

 
      

Electronic Computers - 2.28%

    

4,463

Dell, Inc. *

  

67,034

 
      

Finance Services - 3.38%

    

4,184

Americredit Corp. *

  

99,412

 
      

Hospital & Medical Service Plans - 8.64%

    

2,004

Humana, Inc. *

  

93,727

 

2,277

Wellcare Health Plans, Inc. *

  

67,855

 

1,440

Wellpoint, Inc. *

  

           92,707

 
    

254,289

 

Pharmaceutical Preparations - 17.29%

    

4,267

Forest Laboratories, Inc. *

  

133,813

 

2,024

NBTY, Inc. *

  

97,112

 

11,349

Pfizer, Inc.

  

194,635

 

9,269

Prestige Brands Holdings, Inc. *

  

           83,421

 
    

508,981

 

Retail-Computer & Computer Software - 2.18%

    

2,933

Gamestop Corp. Class-A *

  

64,262

 
      

Retail-Drug Store and Proprietary Stores - 5.07%

    

6,736

Petmed Express, Inc.

  

149,337

 
      

Retail-Radio, TV & Consumer Electronics Stores - 2.52%

    

1,747

Best Buy Co., Inc. *

  

74,317

 
      

Semiconductors & Related Devices - 4.96%

    

6,545

Intel Corp.

  

145,888

 
      

Services-Advertising Agencies - 2.05%

    

5,947

Valueclick, Inc. *

  

60,243

 
      

Services-Business Services - 8.51%

    

8,038

Bidz.com *

  

16,317

 

4,263

Ebay, Inc. *

  

114,962

 

7,024

Western Union Co.

  

         119,127

 
    

250,406

 

Services-Consumer Credit Reporting - 3.85%

    

935

Dun & Bradstreet

  

69,583

 

1,473

Moody's Corp.

  

           43,822

 
    

113,405

 

Services-Engineering, Accounting, Research, Management - 2.54%

    

2,485

Forrester Research, Inc. *

  

74,848

 
      

Services-Mailing, Reproduction - 2.44%

    

8,010

American Reprographics Co. *

  

71,850

 
      

Services-Management Consulting - 2.26%

    

2,500

Corporate Executive Board Co.

  

66,475

 
      

Services-Personal Services - 2.43%

    

2,800

Weight Watchers International, Inc.

  

71,484

 
      

Services-Prepackaged Software - 5.44%

    

2,940

CA, Inc.

  

69,002

 

3,113

Microsoft Corp.

  

           91,172

 
    

160,174

 

Telegraph & Other Message Communications - 4.12%

    

5,189

J2 Global Communications, Inc. *

  

         121,189

 
      

TOTAL FOR COMMON STOCKS (Cost $2,455,174) - 92.61%

  

$     2,726,050

 
      

SHORT TERM INVESTMENTS - 7.50%

    

220,915

Fidelity Institutional Money Market Portfolio

  

         220,915

 
 

    0.25% ** (Cost $220,915)

    
      

TOTAL INVESTMENTS (Cost $2,676,089) - 100.11%

  

$     2,946,965

 
      

LIABILITIES IN EXCESS OF OTHER ASSETS - (0.11)%

  

          (3,234)

 
      

NET ASSETS - 100.00%

  

$     2,943,731

 
      

* Non-income producing securities during the period.

    

** Variable rate security; the coupon rate shown represents the yield at March 31, 2010.

   
      

NOTES TO FINANCIAL STATEMENTS

    

Frank Value Fund

    

1. SECURITY TRANSACTIONS

    

At March 31, 2010, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $2,676,089 amounted to $207,877, which consisted of aggregate gross unrealized appreciation of $355,380 and aggregate gross unrealized depreciation of $84,503.

      

2. SECURITY VALUATION

    

Equity securities generally are valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when the adviser believes such prices accurately reflect the fair market value of such securities.  Securities that are      
traded on any stock exchange or on the NASDAQ over-the-counter market are generally valued by the pricing service at the last quoted sale price.  Lacking a last sale price, an equity security is generally valued by the pricing service at its last bid price.  When market quotations are not readily available, when the adviser determines that the market quotation or the price provided by the pricing service does not accurately reflect the current market value, or when restricted or illiquid securities are being valued, such securities are valued as determined in good faith by the adviser, in conformity with guidelines adopted by and subject to review by the Board of Trustees.

      

Fixed income securities generally are valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when the adviser believes such prices accurately reflect the fair market value of such securities.  A pricing service utilizes electronic data processing techniques based on yield spreads relating to securities with similar characteristics to determine prices for normal institutional-size trading units of debt securities without regard to sale or bid prices.  If the adviser decides that a price provided by the pricing service does not accurately reflect the fair market value of the securities, when prices are not readily available from a pricing service, or when restricted or illiquid securities are being valued, securities are valued at fair value as determined in good faith by the adviser, in conformity with guidelines adopted by and subject to review of the Board of Trustees.  Short term investments in fixed income securities with maturities of less than 60 days when acquired, or which subsequently are within 60 days of maturity, are valued by using the amortized cost method of valuation, which the Board has determined will represent fair value.

      

In accordance with the Trust’s good faith pricing guidelines, the adviser is required to consider all appropriate factors relevant to the value of securities for which it has determined other pricing sources are not available or reliable as described above.  No single standard for determining fair value exists since fair value depends upon the circumstances of each individual case.  As a general principle, the current fair value of an issue of securities being valued by the adviser would appear to be the amount which the owner might reasonably expect to receive for them upon their current sale.  Methods which are in accord with this principle may, for example, be based on (i) a multiple of earnings; (ii) a discount from market of a similar freely traded security (including a derivative security or a basket of securities traded on other markets, exchanges or among dealers); or (iii) yield to maturity with respect to debt issues, or a combination of these and other methods.

      

In accordance with FAS 157, fair value is defined as the price that the Funds 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.  The three-tier hierarchy of inputs is summarized below:

      

Valuation Inputs of Assets

Level 1

Level 2

Level 3

Total

Common Stock

$2,726,050

              $0

              $0

$2,726,050

Exchange Traded Funds

              $0

              $0

              $0

              $0

Convertible Bonds

              $0

              $0

              $0

              $0

Cash Equivalents

$220,915

              $0

              $0

$220,915

Total

 

$2,946,965

       $0

       $0

$2,946,965

   

 

 

 

Leigh Baldwin Total Return Fund

Schedule of Investments

March 31, 2010 (Unaudited)

      

Shares

    

Value

      

COMMON STOCKS - 83.92%

    
      

Cigarettes - 4.28%

    

2,500

Philip Morris International, Inc.

   

$          130,400

      

Electric Services - 1.14%

    

1,500

Huaneng Power International, Inc. *

   

34,860

      

Farm Machinery & Equipment - 1.01%

    

5,000

Arts-Way Manufacturing Co. *

   

30,801

      

Finance Services - 0.91%

    

3,000

Oneida Financial Corp.

   

27,630

      

Grain Mill Products - 6.89%

    

1,000

General Mills, Inc.

   

70,790

2,600

Kellogg Co.

   

            138,918

     

209,708

Guided Missiles & Space Vehicles & Parts - 3.01%

    

1,100

Lockheed Martin Corp.

   

91,542

      

Malt Beverages - 4.56%

    

3,300

Molson Coors Brewing, Co.

   

138,798

      

National Commercial Banks - 0.43%

    

2,000

Wilber Corp.

   

13,100

      

Petroleum Refining - 9.38%

    

2,000

Chevron Corp.

   

151,660

2,000

Exxon Mobil Corp.

   

            133,960

     

285,620

Pharmaceutical Preparations - 14.25%

    

5,000

Bristol Myers Squibb Co.

   

133,500

3,000

Novartis AG

   

162,300

3,700

Sanofi-Aventis *

   

            138,232

     

434,032

Pumps & Pumping Equipment - 4.75%

    

2,700

ITT Corp.

   

144,747

      

Retail-Drug Stores & Proprietary Stores - 4.26%

    

3,500

Walgreen Co.

   

129,815

      

Retail-Miscellaneous Shopping Goods Stores - 1.42%

    

2,000

Barnes & Noble, Inc.

   

43,240

      

Security Brokers, Dealers & Flotation Companies - 4.30%

    

7,000

Schwab Corp.

   

130,830

      

Semiconductors & Related Devices - 5.12%

    

7,000

Intel Corp.

   

156,030

      

Services-Engineering, Accounting, Research, Management - 4.84%

    

4,800

Paychex, Inc.

   

147,456

      

Services-Miscellaneous Amusement & Recreation - 4.86%

    

1,000

Corts Trust Disney Notes Corpor

   

25,950

3,500

Walt Disney Co. *

   

            122,185

     

148,135

Services-Motion Picture & Video Tape Production - 1.94%

    

1,500

DreamWorks Animation SKG, Inc. *

   

59,100

      

Telephone Communications - 5.41%

    

5,500

AT&T Corp.

   

142,120

3,000

Frontier Communications Corp.

   

             22,320

     

164,440

Water Supply - 1.16%

    

2,000

Aqua America, Inc.

   

             35,140

      

TOTAL FOR COMMON STOCKS (Cost $2,537,439) - 83.92%

   

$       2,555,424

      

EXCHANGE TRADED FUNDS - 3.39%

    

5,000

Aberdeen Asia Pacific Fund

   

$            32,600

4,000

The Gabelli Global Gold, Natural Resources & Income Trust

  

             70,520

      

TOTAL FOR EXCHANGE TRADED FUNDS (Cost $87,209) - 3.39%

   

$          103,120

      

REAL ESTATE INVESTMENT TRUSTS - 3.95%

    

7,000

Annaly Capital Management, Inc.

   

$          120,260

      

TOTAL FOR REAL ESTATE INVESTMENT TRUSTS (Cost $130,550) - 3.95%

  

$          120,260

      

 PUT OPTIONS

    
      

Shares Subject

Underlying Security

    

to Put

Expiration Date/Exercise Price

    
      
 

Annaly Capital Management, Inc.

    

6,500

January 2012 Put @ 15.00

   

$            20,475

      
 

AT&T Corp.

    

5,500

January 2012 Put @ 20.00

   

               8,855

      
 

Bristol Myers Squibb Co.

    

5,000

January 2012 Put @ 20.00

   

               6,850

      
 

Chevron Corp.

    

1,800

January 2011 Put @ 60.00

   

               3,186

      
 

Diageo Plc

    

1,000

April 2010 Put @ 60.00

   

                     0

      
 

Walt Disney Co.

    

3,500

January 2012 Put @ 25.00

   

               4,620

      
 

Exxon Mobil Corp.

    

1,500

January 2011 Put @ 55.00

   

               2,400

      
 

General Mills, Inc.

    

1,300

January 2011 Put @ 55.00

   

                  884

      
 

Intel Corp.

    

6,500

January 2012 Put @ 15.00

   

               5,785

      
 

ITT Corp.

    

2,700

July 2010 Put @ 45.00

   

               1,350

      
 

Kellogg Co.

    

2,600

January 2012 Put @ 40.00

   

               3,120

      
 

Kraft Foods, Inc.

    

4,500

January 2011 Put @ 20.00

   

                  720

      
 

Lockheed Martin Corp.

    

1,100

January 2011 Put @ 65.00

   

               1,870

      
 

McDonald's Corp.

    

1,500

January 2011 Put @ 45.00

   

                  540

      
 

Molson Coors Brewing Co.

    

2,500

January 2011 Put @ 35.00

   

               2,750

      
 

Novartis Ag

    

2,500

January 2011 Put @ 45.00

   

               2,000

      
 

Paychex, Inc.

    

4,500

January 2012 Put @ 25.00

   

               7,650

      
 

Philip Morris International, Inc.

    

2,500

January 2012 Put @ 40.00

   

               6,975

      
 

Sanofi-Aventis

    

3,000

June 2010 Put @ 35.00

   

               3,150

      
 

Schwab Corp.

    

6,500

January 2011 Put @ 12.50

   

               1,625

      
 

Wallgreen Co.

    

3,200

January 2011 Put @ 30.00

   

               3,200

      
 

TOTAL (Premiums Paid $171,708) - 2.89%

   

$            88,005

      

SHORT TERM INVESTMENTS - 19.00%

    

577,331

Fidelity Institutional Government Money Market Fund-Class I, 0.05%** (Cost $577,331)

            577,331

1,375

Fidelity Institutional Treasury Money Market Fund-Class I, 0.01%** (Cost $1,375)

 

               1,375

      

TOTAL SHORT TERM INVESTMENTS (Cost $578,706) - 19.00%

   

$          578,706

      

TOTAL INVESTMENTS (Cost $3,418,403) - 113.15%

   

$       3,445,515

      

LIABILITIES IN EXCESS OF OTHER ASSETS - (13.15%)

   

         (400,340)

      

NET ASSETS - 100.00%

   

$       3,045,175

      

* Non-income producing securities during the period.

    

** Variable rate security; the coupon rate shown represents the yield at March 31, 2010.

   
      

Leigh Baldwin Total Return Fund

Schedule of Options Written

March 31, 2010 (Unaudited)

      
 

CALL OPTIONS WRITTEN

    
      

Shares Subject

Underlying Security

    

to Call

Expiration Date/Exercise Price

   

Value

      
 

Annaly Capital Management, Inc.

    

              7,000

 May 2010 Call @ 17.00

   

$             4,410

      
 

Aqua America, Inc.

    

              2,000

 April 2010 Call @ 17.50

   

                  600

      
 

AT&T Corp.

    

              5,500

 May 2010 Call @ 27.00

   

                  770

      
 

Barnes & Noble, Inc.

    

              2,000

 April 2010 Call @ 17.50

   

               9,000

      
 

Bristol Meyers Squibb Co.

    

              5,000

 May 2010 Call @ 27.00

   

               3,250

      
 

Chevron Corp.

    

              2,000

 April 2010 Call @ 75.00

   

               2,900

      
 

Walt Disney Co.

    

              3,500

 April 2010 Call @ 34.00

   

               3,780

      
 

DreamWorks Animation SKG, Inc.

    

              1,500

 April 2010 Call @ 40.00

   

               1,200

      
 

Exxon Mobil Corp.

    

              2,000

 April 2010 Call @ 70.00

   

                  220

      
 

Frontier Communications Corp.

    

              3,000

 May 2010 Call @ 7.50

   

                  600

      
 

General Mills, Inc.

    

              1,000

 April 2010 Call @ 72.50

   

                  200

      
 

Huaneng Power International, Inc.

    

              1,500

 August 2010 Call @ 22.50

   

               2,700

      
 

Intel Corp.

    

              7,000

 April 2010 Call @ 22.00

   

               4,760

      
 

ITT Corp.

    

              2,700

 April 2010 Call @ 55.00

   

                  945

      
 

Kellogg Co.

    

              2,600

 April 2010 Call @ 55.00

   

                  520

      
 

Lockheed Martin Corp.

    

              1,100

 April 2010 Call @ 85.00

   

                  715

      
 

Molson Coors Brewing Co.

    

              3,300

 May 2010 Call @ 45.00

   

               1,320

      
 

Novartis Ag

    

              3,000

 April 2010 Call @ 55.00

   

                  900

      
 

Paychex, Inc.

    

              4,800

 May 2010 Call @ 32.50

   

                  960

      
 

Philip Morris International, Inc.

    

              2,500

 April 2010 Call @ 52.50

   

               1,500

      
 

Sanofi-Aventis

    

              3,700

 May 2010 Call @ 37.50

   

               3,885

      
 

Schwab Corp.

    

              7,000

 April 2010 Call @ 19.00

   

               2,100

      
 

Wallgreen Co.

    

              3,500

 April 2010 Call @ 35.00

   

               7,140

      
 

Total (Premiums Received $43,986)

   

$            54,375

      

NOTES TO FINANCIAL STATEMENTS

    

Leigh Baldwin Total Retrun Fund

    

1. SECURITY TRANSACTIONS

    

At March 31, 2010, the net unrealized depreciation on investments, based on cost for federal income tax purposes of $3,418,403 amounted to $70,486, which consisted of aggregate gross unrealized appreciation of $57,409 and aggregate gross unrealized depreciation of $127,895.

      

2. SECURITY VALUATION

    

Equity securities generally are valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when the adviser believes such prices accurately reflect the fair market value of such securities.  Securities that are traded on any stock exchange or on the NASDAQ over-the-counter market are generally valued by the pricing service at the last quoted sale price.  Lacking a last sale price, an equity security is generally valued by the pricing service at its last bid price.  When market quotations are not readily available, when the adviser determines that the market quotation or the price provided by the pricing service does not accurately reflect the current market value, or when restricted or illiquid securities are being valued, such securities are valued as determined in good faith by the adviser, in conformity with guidelines adopted by and subject to review by the Board of Trustees.

      

Fixed income securities generally are valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when the adviser believes such prices accurately reflect the fair market value of such securities.  A pricing service utilizes electronic data processing techniques based on yield spreads relating to securities with similar characteristics to determine prices for normal institutional-size trading units of debt securities without regard to sale or bid prices.  If the adviser decides that a price provided by the pricing service does not accurately reflect the fair market value of the securities, when prices are not readily available from a pricing service, or when restricted or illiquid securities are being valued, securities are valued at fair value as determined in good faith by the adviser, in conformity with guidelines adopted by and subject to review of the Board of Trustees.  Short term investments in fixed income securities with maturities of less than 60 days when acquired, or which subsequently are within 60 days of maturity, are valued by using the amortized cost method of valuation, which the Board has determined will represent fair value.     

In accordance with FAS 157, fair value is defined as the price that the Funds 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.  The three-tier hierarchy of inputs is summarized below:

      

Valuation Inputs of Assets

Level 1

Level 2

Level 3

Total

Common Stock

$2,555,424

              $0

              $0

$2,555,424

Exchange Traded Funds

$103,120

              $0

              $0

$103,120

Real Estate Investment Trusts

$     120,260

$0

$0

$          120,260

Options Purchased

$0

$       88,005

              $0

$88,005

Cash Equivalents

$     578,706

              $0

              $0

$578,706

Total

 

$3,357,510

$88,005

       $0

$3,445,515

      
      

Valuation Inputs of Liabilities

Level 1

Level 2

Level 3

Total

Options Written

$0

$54,375

$0

$54,375

Total

 

$0

$54,375

       $0

$54,375









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/Brian J. Frank, President

 Brian J. Frank

 President


Date: May 21, 2010


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/Brian J. Frank, President

Brian J. Frank

President


Date May 21, 2010


By /s/Monique M. Weiss

Monique M. Weiss

Secretary


Date May 21, 2010