N-Q 1 bridges_nq.htm QUARTERLY NOTICE OF PORTFOLIO HOLDINGS bridges_nq.htm
 
 


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  811-01209



Bridges Investment Fund, Inc.
(Exact name of registrant as specified in charter)



8401 West Dodge Road, Suite 256
Omaha, Nebraska 68114
(Address of principal executive offices) (Zip code)



Edson L. Bridges III
8401 West Dodge Road, Suite 256
Omaha, Nebraska 68114
(Name and address of agent for service)



(402) 397-4700
Registrant's telephone number, including area code



Date of fiscal year end: December 31, 2010


Date of reporting period:  September 30, 2010

 
 
 

 
Item 1. Schedule of Investments.
 
Bridges Investment Fund
              
Schedule of Investments
              
September 30, 2010 (Unaudited)
            
                 
       
Shares
  
Cost
  
Value
COMMON STOCKS - 93.99%
              
Amusement, Gambling, and Recreation Industries - 0.47%
          
The Walt Disney Co.
    
10,000
$
336,300
$
331,100
Beverage and Tobacco Product Manufacturing - 5.89%
            
Altria Group, Inc. 
    
55,000
  
952,205
  
1,321,100
PepsiCo, Inc. 
      
25,000
  
786,066
  
1,661,000
Philip Morris International, Inc. 
    
20,000
  
685,363
  
1,120,400
           
2,423,635
  
4,102,500
Chemical Manufacturing - 6.88%
              
Abbott Laboratories 
    
20,000
  
1,065,207
  
1,044,800
Allergan, Inc. 
      
17,000
  
666,197
  
1,131,010
Gilead Sciences, Inc. (a)
    
15,000
  
645,684
  
534,150
The Procter & Gamble Co. 
    
10,000
  
551,197
  
599,700
Teva Pharmaceutical Industries, Ltd. - ADR 
  
28,000
  
911,243
  
1,477,000
           
3,839,528
  
4,786,660
Computer and Electronic Product Manufacturing - 13.94%
            
Apple, Inc. (a)
    
12,000
  
1,380,553
  
3,405,000
Cisco Systems, Inc. (a)
    
65,000
  
1,151,525
  
1,423,500
Dolby Laboratories, Inc. (a)
    
11,000
  
422,815
  
624,910
Hewlett Packard Co. 
    
25,000
  
1,081,125
  
1,051,750
QUALCOMM, Inc. 
    
40,000
  
1,541,688
  
1,804,800
Research In Motion Ltd. (a)
    
14,000
  
907,859
  
681,660
Waters Corp. (a)
      
10,000
  
531,536
  
707,800
           
7,017,100
  
9,699,420
Couriers and Messengers - 2.19%
              
FedEx Corp. 
      
10,000
  
688,396
  
855,000
United Parcel Service, Inc.
    
10,000
  
671,348
  
666,900
           
1,359,744
  
1,521,900
Credit Intermediation and Related Activities - 11.54%
            
Bank Of America Corporation 
  
35,000
  
570,600
  
458,850
Capital One Financial Corp. 
    
50,000
  
1,581,204
  
1,977,500
Credicorp Ltd. 
      
7,000
  
601,886
  
797,300
First National of Nebraska, Inc. (a)
  
225
  
387,969
  
658,125
JPMorgan Chase & Co. 
    
30,000
  
1,320,492
  
1,142,100
Visa, Inc. 
      
20,000
  
1,435,163
  
1,485,200
Wells Fargo & Co. 
    
60,000
  
1,444,348
  
1,507,800
           
7,341,661
  
8,026,875
Data Processing, Hosting and Related Services - 0.75%
            
Rackspace Hosting, Inc. (a)
  
20,000
  
478,448
  
519,600
Electrical Equipment, Appliance, and Component Manufacturing - 0.76%
          
Emerson Electric Co.
    
10,000
  
529,050
  
526,600
Electronics and Appliance Stores - 2.93%
            
Best Buy Co., Inc. 
    
50,000
  
1,195,560
  
2,041,500
Food Services and Drinking Places - 1.82%
            
McDonald's Corp. 
    
17,000
  
1,098,785
  
1,266,670
General Merchandise Stores - 2.14%
            
Kohl's Corp. (a)
    
8,000
  
423,936
  
421,440
Target Corp. 
      
20,000
  
614,615
  
1,068,800
           
1,038,552
  
1,490,240
Health and Personal Care Stores - 3.50%
            
Express Scripts, Inc. (a)
    
50,000
  
940,685
  
2,435,000
Heavy and Civil Engineering Construction - 1.07%
            
Fluor Corp. 
      
15,000
  
579,555
  
742,950
Insurance Carriers and Related Activities - 2.38%
            
Berkshire Hathaway, Inc. (a)
  
20,000
  
678,649
  
1,653,600
Leather and Allied Product Manufacturing - 0.34%
            
Nike, Inc. 
      
3,000
  
243,912
  
240,420
Machinery Manufacturing - 5.00%
              
Caterpillar, Inc. 
    
20,000
  
1,131,202
  
1,573,600
General Electric Co. 
    
45,000
  
489,038
  
731,250
Roper Industries, Inc. 
    
18,000
  
880,783
  
1,173,240
           
2,501,023
  
3,478,090
Management of Companies and Enterprises - 1.35%
            
The Goldman Sachs Group, Inc. 
  
6,500
  
908,626
  
939,770
Mining (except Oil and Gas) - 1.64%
            
BHP Billiton Ltd. - ADR 
    
15,000
  
1,122,662
  
1,144,800
Miscellaneous Manufacturing - 0.97%
            
Stryker Corp. 
      
13,500
  
668,133
  
675,675
Nonstore Retailers - 0.68%
              
Amazon.com, Inc. (a)
    
3,000
  
397,653
  
471,180
Oil and Gas Extraction - 6.24%
              
Anadarko Petroleum Corp. 
  
20,000
  
1,268,113
  
1,141,000
Apache Corp. 
      
20,000
  
1,502,797
  
1,955,200
Chesapeake Energy Corp. 
    
55,000
  
1,496,226
  
1,245,750
           
4,267,136
  
4,341,950
Other Information Services - 3.78%
            
Google, Inc. (a)
    
5,000
  
2,233,769
  
2,628,950
Petroleum and Coal Products Manufacturing - 2.33%
            
Chevron Corp. 
    
20,000
  
736,350
  
1,621,000
Professional, Scientific, and Technical Services - 5.43%
            
Celgene Corp. (a)
    
15,000
  
839,322
  
864,150
Mastercard, Inc. 
      
13,000
  
2,210,569
  
2,912,000
           
3,049,891
  
3,776,150
Publishing Industries (except Internet) - 0.88%
            
Microsoft Corp. 
    
25,000
  
502,516
  
612,250
Rail Transportation - 2.94%
              
Union Pacific Corp. 
    
25,000
  
1,460,063
  
2,045,000
Securities, Commodity Contracts, and Other Financial Investments and Related Activities - 2.54%
      
American Capital Ltd. (a)
    
40,000
  
640,863
  
232,400
CME Group, Inc. 
    
3,000
  
983,282
  
781,350
T. Rowe Price Group, Inc. 
    
15,000
  
725,747
  
750,975
           
2,349,892
  
1,764,725
Support Activities for Mining - 0.92%
            
Transocean Ltd. (a)
    
10,000
  
1,084,177
  
642,900
Telecommunications - 1.32%
              
DIRECTV (a)
      
22,000
  
780,297
  
915,860
Water Transportation - 1.37%
              
Carnival Corp. 
    
25,000
  
951,168
  
955,250
TOTAL COMMON STOCKS (Cost $52,114,516)
    
$
52,114,516
$
65,398,585
                 
       
Principal
        
       
Amount
  
Cost
  
Value
CORPORATE BONDS - 4.05%
              
Beverage and Tobacco Product Manufacturing - 0.39%
          
Reynolds American, Inc.
              
    7.250%, 06/01/2012 
  
$
250,000
$
252,445
$
270,346
Broadcasting (except Internet) - 0.34%
            
Comcast Corp.
              
    6.500%, 01/15/2017 
    
200,000
  
199,592
  
237,919
Building Material and Garden Equipment and Supplies Dealers - 0.33%
          
Home Depot, Inc.
              
    5.400%, 03/01/2016 
    
200,000
  
184,056
  
227,717
Credit Intermediation and Related Activities - 0.75%
            
First National Bank of Omaha
            
    7.320%, 12/01/2010 
    
250,000
  
250,346
  
250,418
MBNA Corporation
              
    7.500%, 03/15/2012 
    
250,000
  
253,480
  
269,506
           
503,825
  
519,924
Funds, Trusts, and Other Financial  Vehicles - 0.45%
            
Spectra Energy Capital, LLC
            
    8.000%, 10/01/2019 
    
250,000
  
268,744
  
316,434
General Merchandise Stores - 0.58%
            
JC Penney Corp., Inc.
              
    7.400%, 04/01/2037 
    
400,000
  
400,974
  
403,500
Machinery Manufacturing - 0.44%
              
Applied Materials, Inc.
              
    7.125%, 10/15/2017 
    
250,000
  
253,804
  
305,741
Merchant Wholesalers, Nondurable Goods - 0.37%
            
Cardinal Health, Inc.
              
    6.750%, 02/15/2011 
    
250,000
  
250,582
  
255,132
Oil and Gas Extraction - 0.40%
              
Anadarko Petroleum Corp.
              
    7.625%, 03/15/2014 
    
250,000
  
241,040
  
282,905
TOTAL CORPORATE BONDS (Cost $2,555,062)
    
$
2,555,062
$
2,819,618
                 
       
Shares
  
Cost
  
Value
SHORT TERM INVESTMENTS - 2.76%
            
Mutual Fund - 2.76%
              
SEI Daily Income Trust Treasury Fund, 0.010%
  
1,917,995
$
1,917,995
$
1,917,995
TOTAL SHORT TERM INVESTMENTS (Cost $1,917,995)
    
$
1,917,995
$
1,917,995
                 
Total Investments (Cost $56,587,573) - 100.80%
        
$
70,136,198
Liabilities in Excess of Other Assets - (0.80)%
          
(557,345)
TOTAL NET ASSETS - 100.00%
          
$
69,578,853
                 
Percentages are stated as a percent of net assets.
          
                 
ADR
American Depository Receipt
            
(a)
Non-income producing security.
            
                 
The cost basis of investments for federal income tax purposes at September 30, 2010 was as follows:1
                 
Cost of investments
 $                  56,587,573
            
                 
Gross unrealized appreciation
                     15,673,628
            
Gross unrealized depreciation
                     (2,125,003)
            
Net unrealized appreciation
 $                  13,548,625
            
                 
1Because tax adjustments are calculated annually, the above table does not reflect tax adjustments. For the previous fiscal year's federal income tax information, please refer to the Notes to Financial Statements section in the Fund's most recent semi-annual or annual report.
                 
Financial Accounting Standards Board ("FASB") accounting standards codification "Fair Value Measurements and Disclosures" Topic 820 ("ASC 820"), establishes an authoritative definition of fair value and sets out a hierarchy for measuring fair value.
 
ASC 820 requires additional disclosures about the various inputs used to develop the measurements of fair value. These inputs are summarized in the three broad levels listed below:
                 
• Level 1 - Quoted prices in active markets for identical securities
        
• Level 2 - Other significant observable inputs (including quoted prices for similar securities, 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.
 
The following is a summary of the inputs used to value the Fund's net assets as of September 30, 2010:
        
                           
 
Description
      
Level 1
  
Level 2
  
Level 3
  
Total
    
                           
 
Equity
                        
   
Manufacturing
    $
   25,130,365
 $
                  -
 $
       -
 $
 25,130,365
    
   
Finance and Insurance
    
11,445,200
  
                      -
  
          -
  
11,445,200
    
   
Retail Trade
    
6,437,920
  
                      -
  
          -
  
6,437,920
    
   
Mining
    
6,129,650
  
                      -
  
          -
  
6,129,650
    
   
Information
    
4,676,660
  
                      -
  
          -
  
4,676,660
    
   
Professional, Scientific, and
Technological Services
    
3,776,150
  
                      -
  
          -
  
3,776,150
    
   
Transportation and
Warehousing
    
4,522,150
  
                      -
  
          -
  
4,522,150
    
   
Management of Companies
    
939,770
  
                      -
  
          -
  
939,770
    
   
Construction
    
742,950
  
                      -
  
          -
  
742,950
    
   
Arts, Entertainment and
Recreation
    
331,100
  
                      -
  
          -
  
331,100
    
   
Accommodation and Food
Services
    
1,266,670
  
                      -
  
          -
  
1,266,670
    
 
Total Equity
      
65,398,585
  
                      -
  
          -
  
65,398,585
    
 
Fixed Income
                        
   
Corporate Bonds
    
                      -
  
2,819,618
  
          -
  
2,819,618
    
 
Total Fixed Income
    
                      -
  
2,819,618
  
          -
  
2,819,618
    
 
Short-Term
Investments
    
1,917,995
  
                      -
  
          -
  
1,917,995
    
 
 
 
Total Investments
in Securities
     $
   67,316,580
  $
    2,819,618
  $
       -
 $
  70,136,198
    
                           
Transfers between levels are recognized at the end of the reporting period. As of September 30, 2010, there were no significant transfers into, or out of Level 1 or Level 2 since December 31, 2009.
 
 
 
 
 
 
Item 2. Controls and Procedures.
 
(a)  
The Registrant’s President/Chief Executive Officer and Treasurer/Chief Financial Officer have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) (17 CFR 270.30a-3(c)) are effective as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(d)).

(b)  
There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) (17 CFR 270.30a-3(d)) that occurred during the Registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.


Item 3. Exhibits.
 
Separate certifications for each principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)).  Filed herewith.

 
 
 
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


(Registrant)  Bridges Investment Fund, Inc.                                                     

 
By (Signature and Title)    /s/ Edson L. Bridges III                                          
Edson L. Bridges III, President and
Chief Executive and Investment Officer

Date           11/22/2010                                                                                           

 


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 (Signature and Title)*   /s/ Edson L. Bridges III                                        
 Edson L. Bridges III, President and
 Chief Executive and Investment Officer

Date           11/22/2010                                                                                           
 
 
By (Signature and Title)*   /s/ Brian Kirkpatrick                                           
 Brian Kirkpatrick, Executive Vice President
 
Date             11/22/2010                                                                                         
 
 
By (Signature and Title)*   /s/ Nancy K. Dodge                                              
 Nancy K. Dodge, Treasurer and
 Chief Compliance Officer

Date           11/22/2010                                                                                           
 
 
* Print the name and title of each signing officer under his or her signature.