N-Q 1 bridges_093011nq.htm QUARTERLY NOTICE OF PORTFOLIO HOLDINGS bridges_093011nq.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, 2011



Date of reporting period:  September 30, 2011
 

 
 
 
 
 
Item 1. Schedule of Investments.
 
BRIDGES INVESTMENT FUND, INC.
  
   
SCHEDULE OF INVESTMENTS
  
   
SEPTEMBER 30, 2011
  
(Unaudited)
  
Title of Security
Shares
    
Cost
    
Value
  
COMMON STOCKS - 90.70%
                
Beverage and Tobacco Product Manufacturing - 4.25%
                
 
Altria Group, Inc.
 25,000     $ 478,400     $ 670,250  
 
PepsiCo, Inc.
 15,000       657,954       928,500  
 
Philip Morris International, Inc.
 20,000       685,363       1,247,600  
            1,821,717       2,846,350  
Chemical Manufacturing - 6.26%
                    
 
Allergan, Inc.
 15,000       593,458       1,235,700  
 
Perrigo Co.
 12,000       891,115       1,165,320  
 
Praxair, Inc.
 8,000       758,391       747,840  
 
Teva Pharmaceutical Industries, Ltd. - ADR
 28,000       911,242       1,042,160  
            3,154,206       4,191,020  
Computer and Electronic Product Manufacturing - 13.74%
                    
 
Apple, Inc. (a)
 12,000       1,380,552       4,574,160  
 
Cisco Systems, Inc.
 30,000       735,598       464,700  
 
EMC Corp. (a)
 40,000       1,001,202       839,600  
 
QUALCOMM, Inc.
 40,000       1,541,688       1,945,200  
 
Verifone Systems, Inc. (a)
 20,000       824,408       700,400  
 
Waters Corp. (a)
 9,000       472,047       679,410  
            5,955,495       9,203,470  
Couriers and Messengers - 1.95%
                    
 
FedEx Corp.
 10,000       688,396       676,800  
 
United Parcel Service, Inc.
 10,000       671,348       631,500  
            1,359,744       1,308,300  
Credit Intermediation and Related Activities - 8.39%
                    
 
Capital One Financial Corp.
 50,000       1,579,084       1,981,500  
 
JPMorgan Chase & Co.
 30,000       1,320,492       903,600  
 
Visa, Inc.
 15,000       1,067,701       1,285,800  
 
Wells Fargo & Co.
 60,000       1,444,347       1,447,200  
            5,411,624       5,618,100  
Data Processing, Hosting and Related Services - 1.02%
                    
 
Rackspace Hosting, Inc. (a)
 20,000       478,448       682,800  
Electrical Equipment, Appliance, and Component Manufacturing - 1.23%
                  
 
Emerson Electric Co.
 20,000       1,043,018       826,200  
Food Services and Drinking Places - 3.06%
                    
 
McDonald's Corp.
 17,000       1,145,875       1,492,940  
 
Starbucks Corp.
 15,000       561,001       559,350  
            1,706,876       2,052,290  
General Merchandise Stores - 1.46%
                    
 
Target Corp.
 20,000       614,615       980,800  
Health and Personal Care Stores - 2.32%
                    
 
Express Scripts, Inc. (a)
 42,000       850,873       1,556,940  
Heavy and Civil Engineering Construction - 1.50%
                    
 
Chicago Bridge & Iron Co.
 22,000       734,465       629,860  
 
Fluor Corp.
 8,000       306,097       372,400  
            1,040,562       1,002,260  
Insurance Carriers and Related Activities - 2.12%
                    
 
Berkshire Hathaway, Inc. (a)
 20,000       678,649       1,420,800  
Leather and Allied Product Manufacturing - 0.64%
                    
 
NIKE, Inc.
 5,000       424,432       427,550  
Machinery Manufacturing - 5.00%
                    
 
Caterpillar, Inc.
 20,000       1,131,202       1,476,800  
 
General Electric Co.
 55,000       697,938       838,200  
 
Roper Industries, Inc.
 15,000       714,293       1,033,650  
            2,543,433       3,348,650  
Management of Companies and Enterprises - 0.92%
                    
 
The Goldman Sachs Group, Inc.
 6,500       908,626       614,575  
Mining (except Oil and Gas) - 1.49%
                    
 
BHP Billiton Ltd. - ADR
 15,000       1,122,662       996,600  
Nonstore Retailers - 2.11%
                    
 
Amazon.com, Inc. (a)
 4,500       681,078       973,035  
 
eBay, Inc. (a)
 15,000       451,565       442,350  
            1,132,643       1,415,385  
Oil and Gas Extraction - 6.94%
                    
 
Anadarko Petroleum Corp.
 24,000       1,598,009       1,513,200  
 
Apache Corp.
 20,000       1,502,797       1,604,800  
 
Chesapeake Energy Corp.
 60,000       1,649,240       1,533,000  
            4,750,046       4,651,000  
Other Information Services - 3.84%
                    
 
Google, Inc. (a)
 5,000       2,233,768       2,571,900  
Petroleum and Coal Products Manufacturing - 3.18%
                    
 
Chevron Corp.
 23,000       1,061,445       2,127,960  
Professional, Scientific, and Technical Services - 9.37%
                    
 
Accenture PLC
 10,000       528,500       526,800  
 
Cognizant Technology Solutions Class A (a)
 10,000       712,812       627,000  
 
Factset Research Systems, Inc.
 6,000       547,286       533,820  
 
Mastercard, Inc.
 12,000       2,060,959       3,805,920  
 
priceline.com, Inc. (a)
 1,750       773,693       786,555  
            4,623,250       6,280,095  
Publishing Industries (except Internet) - 0.62%
                    
 
Autodesk, Inc. (a)
 15,000       602,959       416,700  
Rail Transportation - 3.05%
                    
 
Union Pacific Corp.
 25,000       1,460,063       2,041,750  
Securities, Commodity Contracts, and Other Financial
                    
  Investments and Related Activities - 1.07%
                    
 
T. Rowe Price Group, Inc.
 15,000       725,747       716,550  
Support Activities for Mining - 1.07%
                    
 
Schlumberger Ltd.
 12,000       1,035,530       716,760  
Telecommunications - 1.39%
                    
 
DIRECTV (a)
 22,000       780,297       929,500  
Transportation Equipment Manufacturing - 1.59%
                    
 
Eaton Corp.
 30,000       1,480,761       1,065,000  
Water Transportation - 1.12%
                    
 
Carnival Corp.
 25,000       951,169       757,500  
                       
 
TOTAL COMMON STOCKS (Cost $49,952,658)
       $ 49,952,658     $ 60,766,805  
                       
 
Principal
                  
 
Amount
    
Cost
    
Value
  
CORPORATE BONDS - 3.36%
                    
Beverage and Tobacco Product Manufacturing - 0.39%
                    
 
Reynolds American, Inc.
                    
 
7.250%, 06/01/2012
 250,000     $ 251,008     $ 259,875  
Broadcasting (except Internet) - 0.35%
                    
 
Comcast Corp.
                    
 
6.500%, 01/15/2017
 200,000       199,592       234,903  
Building Material and Garden Equipment and Supplies Dealers - 0.34%
                    
 
Home Depot, Inc.
                    
 
5.400%, 03/01/2016
 200,000       186,563       226,297  
Credit Intermediation and Related Activities - 0.38%
                    
 
MBNA Corporation
                    
 
7.500%, 03/15/2012
 250,000       251,124       253,915  
Funds, Trusts, and Other Financial Vehicles - 0.47%
                    
 
Spectra Energy Capital, LLC
                    
 
8.000%, 10/01/2019
 250,000       267,178       314,142  
General Merchandise Stores - 0.55%
                    
 
JC Penney Corp., Inc.
                    
 
7.400%, 04/01/2037
 400,000       400,931       370,000  
Machinery Manufacturing - 0.46%
                    
 
Applied Materials, Inc.
                    
 
7.125%, 10/15/2017
 250,000       253,367       308,525  
Oil and Gas Extraction - 0.42%
                    
 
Anadarko Petroleum Corp.
                    
 
7.625%, 03/15/2014
 250,000       243,366       281,030  
                       
 
TOTAL CORPORATE BONDS (Cost $2,053,129)
       $ 2,053,129     $ 2,248,687  
                       
EXCHANGE TRADED FUNDS - 5.09%
Shares
    
Cost
    
Value
  
Funds, Trusts, and Other Financial Vehicles - 5.09%
                    
 
iShares S&P MidCap 400 Index Fund
 25,000     $ 2,239,546     $ 1,949,750  
 
iShares S&P SmallCap 600 Index Fund
 25,000       1,698,517       1,462,500  
                       
 
TOTAL EXCHANGE TRADED FUNDS (Cost $3,938,063)
       $ 3,938,063     $ 3,412,250  
                       
 
Shares
    
Cost
    
Value
  
SHORT-TERM INVESTMENT - 0.91%
                    
Mutual Fund - 0.91%
                    
 
SEI Daily Income Trust Treasury Fund, 0.010%
 612,870     $ 612,870     $ 612,870  
                       
 
TOTAL SHORT-TERM INVESTMENTS (Cost $612,870)
       $ 612,870     $ 612,870  
                       
TOTAL INVESTMENTS (Cost $56,556,720) - 100.06%
               $ 67,040,612  
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.06)%
                 (43,496 )
TOTAL NET ASSETS - 100.00%
               $ 66,997,116  
                       
   
ADR
American Depository Receipt
                    
(a)
Non Income Producing
                    
 
 
The cost basis of investments for federal income tax purposes at September 30, 2011 was as follows:1
         
Cost of Investments
   $ 56,556,720  
         
Gross unrealized appreciation
     14,254,115  
Gross unrealized depreciation
     (3,770,223 )
Net unrealized appreciation
   $ 10,483,892  
         
 
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, 2011:
 
Description
  
Level 1
    
Level 2
  
Level 3
    
Total
  
                             
Equity
                            
Accomodation and Food Services
   $ 2,052,290   $  
                 -
   $ -     $ 2,052,290  
Construction
     1,002,260    
                    -
     -       1,002,260  
Finance and Insurance
     7,755,450    
                    -
     -       7,755,450  
Information
     4,600,900    
                    -
     -       4,600,900  
Management of Companies
     614,575    
                    -
     -       614,575  
Manufacturing
     23,356,790    
                    -
     -       23,356,790  
Mining
     6,364,360    
                    -
     -       6,364,360  
Professional, Scientific, and Technological Services
     6,959,505    
                    -
     -       6,959,505  
Retail Trade
     3,953,125    
                    -
     -       3,953,125  
Transportation and Warehousing
     4,107,550    
                    -
     -       4,107,550  
Total Equity
     60,766,805    
                    -
     -       60,766,805  
Exchange Traded Funds
                            
Finance and Insurance
     3,412,250    
                    -
     -       3,412,250  
Fixed Income
                            
Corporate Bonds
     -    
2,248,687
     -       2,248,687  
Total Fixed Income
     -    
2,248,687
     -       2,248,687  
Short-Term Investments
     612,870    
                    -
     -       612,870  
Total Investments in Securities
   $ 64,791,925    
 $  2,248,687
   $ -     $ 67,040,612  
                             
Transfers between levels are recognized at the end of the reporting period. As of September 30, 2011, there were no significant transfers into, or out of Level 1
or Level 2 since December 31, 2010.
 

 
 
 
 
 
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  11/23/11                                                                                                                                                                   



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  11/23/11                                                                                                      
 
 
By (Signature and Title)*/s/ Brian Kirkpatrick                                               
             Brian Kirkpatrick, Executive Vice President
 
Date  11/23/11                                                                                                      

By (Signature and Title)*/s/ Nancy K. Dodge                                               
                                                  Nancy K. Dodge, Treasurer and 
                                                  Chief Compliance Officer

Date  11/23/11                                                                                                      


* Print the name and title of each signing officer under his or her signature.