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)


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, 2011


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, 2011 (Unaudited)

      

Shares

    

Value

      

COMMON STOCKS - 99.40%

   
      

Apparel & Other Finished Prods of Fabrics & Similar Material - 4.88%

   

9,756

 

Cato Corp.

  

$       239,022

9,339

 

True Religion Apparel, Inc.

  

         219,186

     

458,208

Communications Services, NEC - 2.16%

   

7,924

 

Neustar, Inc. Class-A *

  

202,696

      

Computer Communications Equipment - 2.79%

   

15,266

 

Cisco Systems, Inc.

  

261,812

      

Electronic Computers - 4.64%

   

30,015

 

Dell, Inc. *

  

435,518

      

Finance Services - 2.31%

   

4,791

 

American Express Co.

  

216,553

      

Hospital & Medical Service Plans - 10.40%

   

5,830

 

Humana, Inc. *

  

407,750

6,187

 

WellCare Health Plans, Inc. *

  

259,545

4,421

 

Wellpoint, Inc.

  

         308,542

     

975,837

Pharmaceutical Preparations - 8.37%

   

24,333

 

Pfizer, Inc.

  

494,203

25,319

 

Prestige Brands Holdings, Inc. *

  

         291,169

     

785,372

Retail-Apparel & Accessory Stores - 5.78%

   

8,230

 

Aeropostale, Inc.*

  

200,154

8,558

 

DSW, Inc. Class-A *

  

         341,978

     

542,132

Retail-Computer & Computer Software - 1.90%

   

7,924

 

Gamestop Corp. Class-A *

  

178,448

      

Retail-Drug Store and Proprietary Stores - 3.11%

   

18,418

 

PetMed Express, Inc.

  

292,109

      

Retail-Radio, TV & Consumer Electronics Stores - 1.96%

   

6,406

 

Best Buy Co., Inc.

  

183,980

      

Semiconductors & Related Devices - 4.02%

   

18,704

 

Intel Corp.

  

377,447

      

Services-Advertising Agencies - 2.56%

   

16,611

 

Valueclick, Inc. *

  

240,029

      

Services-Business Services - 11.67%

   

6,864

 

eBay, Inc. *

  

213,059

947

 

MasterCard, Inc.

  

238,379

3,213

 

Visa, Inc.

  

236,541

19,604

 

Western Union Co.

  

         407,175

     

1,095,154

Services-Computer Programming, Date Processing, Etc. - 4.95%

   

791

 

Google, Inc. Class-A *

  

464,127

      

Services-Consumer Credit Reporting - 2.25%

   

2,633

 

Dun & Bradstreet

  

211,272

      

Services-Engineering, Accounting, Research, Management - 2.30%

   

12,734

 

SAIC, Inc. *

  

215,459

      

Services-Mailing, Reproduction - 1.75%

   

15,847

 

American Reprographics Co. *

  

164,016

      

Services-Management Consulting - 2.93%

   

6,798

 

Corporate Executive Board Co.

  

274,435

      

Services-Personal Services - 8.74%

   

16,754

 

H&R Block, Inc.

  

280,462

7,693

 

Weight Watchers International, Inc.

  

         539,279

     

819,741

Services-Prepackaged Software - 6.65%

   

8,818

 

CA Technologies, Inc.

  

213,219

16,193

 

Microsoft Corp.

  

         411,140

     

624,359

Telegraph & Other Message Communications - 3.27%

   

10,403

 

J2 Global Communications, Inc. *

  

         306,967

      

TOTAL FOR COMMON STOCKS (Cost $8,097,621) - 99.40%

  

$     9,325,671

      

SHORT TERM INVESTMENTS - 0.72%

   

67,977

 

Fidelity Institutional Money Market Portfolio

  

           67,977

  

    0.25% ** (Cost $67,977)

   
      

TOTAL INVESTMENTS (Cost $8,165,598) - 100.13%

  

$     9,393,648

      

LIABILITIES IN EXCESS OF OTHER ASSETS - (0.13%)

  

        (11,763)

      

NET ASSETS - 100.00%

  

$     9,381,885

      

* Non-income producing securities during the period.

   

** Variable rate security; the coupon rate shown represents the yield at March 31, 2011.

   


NOTES TO FINANCIAL STATEMENTS

    

Frank Value Fund

    

1. SECURITY TRANSACTIONS

    

At March 31, 2011, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $8,165,598 amounted to $1,228,051 which consisted of aggregate gross unrealized appreciation of $1,461,231 and aggregate gross unrealized

depreciation of $233,180.

    
      

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

$9,325,671

              $0

              $0

$9,325,671

Exchange Traded Funds

              $0

              $0

              $0

              $0

Convertible Bonds

              $0

              $0

              $0

              $0

Cash Equivalents

$67,977

              $0

              $0

$67,977

Total

 

$9,393,648

       $0

       $0

$9,393,648


Leigh Baldwin Total Return Fund

Schedule of Investments

March 31, 2011 (Unaudited)

       

Shares

     

Value

       

COMMON STOCKS - 71.98%

    
       

Crude Petroluem & Natural Gas - 5.64%

    

5,600

 

Petroleo Brasileiro S.A. (Brazil)

   

$          226,408

       

Finance Services - 2.44%

    

1,000

 

Financial Engines, Inc. *

   

27,560

8,000

 

Oneida Financial Corp.

   

              70,400

      

97,960

Fruit, Vegetable, & Food Specialties - 4.14%

    

3,400

 

Heinz Co.

   

165,988

       

Grain Mill Products - 9.13%

    

5,000

 

General Mills, Inc.

   

182,750

3,400

 

Kellogg Co.

   

            183,532

      

366,282

Guided Missiles & Space Vehicles & Parts - 4.81%

    

2,400

 

Lockheed Martin Corp.

   

192,960

       

Pharmaceutical Preparations - 14.01%

    

7,000

 

Bristol Myers Squibb Co.

   

185,010

3,200

 

Novartis AG

   

173,920

10,000

 

Pfizer, Inc.

   

            203,100

      

562,030

Refuse Systems - 1.86%

    

2,000

 

Waste Management, Inc.

   

74,680

       

Retail-Drug Stores & Proprietary Stores - 0.79%

    

2,000

 

Petmedexpress, Inc.

   

31,720

       

Retail-Variety Stores - 4.15%

    

3,200

 

Wal Mart Stores, Inc.

   

166,560

       

Security Brokers, Dealers & Flotation Companies - 4.50%

    

10,000

 

Schwab Corp.

   

180,300

       

Semiconductors & Related Devices - 4.53%

    

9,000

 

Intel Corp.

   

181,620

       

Services-Engineering, Accounting, Research, Management - 4.69%

    

6,000

 

Paychex, Inc.

   

188,310

       

Services-Motion Picture & Video Tape Production - 2.09%

    

3,000

 

DreamWorks Animation SKG, Inc. *

   

83,790

       

Soap, Detergent, Cleaning Preparations, Perfumes, Cosmetics - 4.61%

    

3,000

 

Proctor & Gamble Co.

   

184,800

       

Telephone Communications - 4.58%

    

6,000

 

AT&T Corp.

   

183,660

       

TOTAL FOR COMMON STOCKS (Cost $2,898,241) - 71.98%

   

$        2,887,068

       

EXCHANGE TRADED FUNDS - 4.26%

    

5,000

 

Aberdeen Asia Pacific Fund

   

$            34,650

5,000

 

The Gabelli Global Gold, Natural Resources & Income Trust

   

94,350

2,000

 

ProShares UltraShort S&P500

   

              41,840

       

TOTAL FOR EXCHANGE TRADED FUNDS (Cost $146,494) - 4.26%

   

$          170,840

       

 PUT OPTIONS

    
       

Shares Subject

 

Underlying Security

    

          to Put

 

Expiration Date/Exercise Price

    
       
  

AT&T Corp.

    

5,500

 

January 2012 Put @ 20.00

   

$              1,485

       
  

Bristol Myers Squibb Co.

    

6,000

 

January 2012 Put @ 20.00

   

                2,700

       
  

Walt Disney Co.

    

4,500

 

January 2012 Put @ 25.00

   

                1,845

       
  

General Mills, Inc.

    

4,400

 

January 2012 Put @ 30.00

   

                2,948

       
  

Heinz Co.

    

3,400

 

January 2012 Put @ 40.00

   

                2,210

       
  

Intel Corp.

    

8,500

 

January 2012 Put @ 15.00

   

                3,825

       
  

Kellogg Co.

    

3,000

 

January 2012 Put @ 40.00

   

                1,050

       
  

Lockheed Martin Corp.

    

2,500

 

January 2012 Put @ 65.00

   

                4,650

       
  

Microsoft Corp.

    

6,500

 

January 2012 Put @ 22.50

   

                7,930

       
  

Novartis AG

    

2,000

 

January 2011 Put @ 50.00

   

                1,700

       
  

Paychex, Inc.

    

5,700

 

January 2012 Put @ 25.00

   

                3,990

       
  

Petroleo Brasileiro S.A.

    

5,600

 

January 2012 Put @ 30.00

   

                6,384

       
  

Pfizer, Inc.

    

10,000

 

January 2012 Put @ 12.50

   

                1,800

       
  

Philip Morris International, Inc.

    

3,500

 

January 2012 Put @ 40.00

   

                1,750

       
  

Proctor & Gamble Co.

    

2,500

 

January 2012 Put @ 50.00

   

                2,550

       
  

Schwab Corp.

    

10,000

 

January 2012 Put @ 12.50

   

                2,500

       
  

Wal Mart Stores, Inc.

    

800

 

January 2013 Put @ 40.00

   

                1,560

       
  

TOTAL (Premiums Paid $190,479) - 1.27%

   

$            50,877

       

SHORT TERM INVESTMENTS - 28.01%

    

1,123,354

 

Fidelity Institutional Government Money Market Fund-Class I, 0.02%** (Cost $1,123,354)

          1,123,354

       

TOTAL INVESTMENTS (Cost $4,358,568) - 105.51%

   

$        4,232,139

       

LIABILITIES IN EXCESS OF OTHER ASSETS - (5.51%)

   

          (221,105)

       

NET ASSETS - 100.00%

   

$        4,011,034

       

* 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, 2011 (Unaudited)

       
  

CALL OPTIONS WRITTEN

    
       

Shares Subject

 

Underlying Security

    

          to Call

 

Expiration Date/Exercise Price

   

Value

       
  

AT&T Corp.

    

6,000

 

 April 2011 Call @ 16.00

   

                9,840

       
  

Bristol Myers Squibb Co.

    

7,000

 

 April 2011 Call @ 27.00

   

                1,260

       
  

DreamWorks Animation SKG, Inc. *

    

3,000

 

 April 2011 Call @ 25.00

   

                9,300

       
  

Financial Engines, Inc. *

    

1,000

 

 April 2011 Call @ 25.00

   

                2,950

       
  

General Mills, Inc.

    

5,000

 

 April 2011 Call @ 38.00

   

                  250

       
  

Heinz Co.

    

3,400

 

 April 2011 Call @ 50.00

   

                  340

       
  

Intel Corp.

    

9,000

 

 April 2011 Call @ 20.00

   

                2,160

       
  

Kellogg Co.

    

3,400

 

 April 2011 Call @ 55.00

   

                  680

       
  

Lockheed Martin Corp.

    

2,400

 

 April 2011 Call @ 80.00

   

                3,600

       
  

Novartis AG

    

3,200

 

 April 2011 Call @ 57.50

   

                  320

       
  

Paychex, Inc.

    

6,000

 

 April 2011 Call @ 32.00

   

                1,500

       
  

Petmedexpress, Inc.

    

2,000

 

 April 2011 Call @ 15.00

   

                2,100

       
  

Petroleo Brasileiro S.A.

    

5,600

 

 April 2011 Call @ 40.00

   

                5,936

       
  

Pfizer, Inc.

    

10,000

 

 April 2011 Call @ 20.00

   

                5,000

       
  

Proctor & Gamble Co.

    

3,000

 

 April 2011 Call @ 62.50

   

                  990

       
  

ProShares UltraShort S&P500

    

2,000

 

 April 2011 Call @ 22.00

   

                  480

       
  

Schwab Corp.

    

10,000

 

 April 2011 Call @ 18.00

   

                4,000

       
  

Wal Mart Stores, Inc.

    

3,200

 

 April 2011 Call @ 52.50

   

                1,280

       
  

Waste Management, Inc.

    

2,000

 

 April 2011 Call @ 37.00

   

                1,500

       
  

Total (Premiums Received $55,297)

   

$            53,486


NOTES TO FINANCIAL STATEMENTS

    

Leigh Baldwin Total Retrun Fund

    

1. SECURITY TRANSACTIONS

    

At March 31, 2011, the net unrealized depreciation on investments, based on cost for federal income tax purposes of $4,358,568 amounted to $133,259, which consisted of aggregate gross unrealized appreciation of $76,903 and aggregate gross unrealized depreciation of $210,162.

       

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

$2,887,068

              $0

              $0

$2,887,068

Exchange Traded Funds

$170,840

              $0

              $0

$170,840

Real Estate Investment Trusts

$               0

$0

$0

$0

Options Purchased

$       50,877

              $0

              $0

$50,877

Cash Equivalents

$   1,123,354

              $0

              $0

$1,123,354

Total

  

$4,232,139

$0

       $0

$4,232,139

       
       

Valuation Inputs of Liabilities

Level 1

Level 2

Level 3

Total

Options Written

$       53,486

       $0

$0

$53,486

Total

  

$       53,486

       $0

       $0

$53,486








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 24, 2011


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 24, 2011


By /s/Monique M. Weiss

Monique M. Weiss

Secretary


Date May 24, 2011