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, 2014

Date of reporting period: March 31, 2014

 
 
 
 
Item 1. Schedule of Investments.
 
BRIDGES INVESTMENT FUND, INC.
  
   
SCHEDULE OF INVESTMENTS
  
   
MARCH 31, 2014
  
(Unaudited)
  
                     
Title of Security
  
Shares
    
Cost
    
Value
  
COMMON STOCKS - 88.51%
                  
Ambulatory Health Care Services - 0.98%
                  
 
DaVita Healthcare Partners, Inc. (a)
     16,000     $ 961,035     $ 1,101,600  
Amusement, Gambling, and Recreation Industries - 2.86%
                        
 
Las Vegas Sands Corp.
     10,000       811,789       807,800  
 
The Walt Disney Co.
     30,000       1,453,852       2,402,100  
                2,265,641       3,209,900  
Beverage and Tobacco Product Manufacturing - 3.60%
                        
 
Altria Group, Inc.
     35,000       823,041       1,310,050  
 
PepsiCo, Inc.
     13,000       632,331       1,085,500  
 
Philip Morris International, Inc.
     20,000       782,617       1,637,400  
                2,237,989       4,032,950  
Broadcasting (except Internet) - 4.03%
                        
 
Comcast Corp. - Class A Special Common Stock
     30,000       1,381,050       1,462,800  
 
DIRECTV (a)
     40,000       1,657,230       3,056,800  
                3,038,280       4,519,600  
Chemical Manufacturing - 6.29%
                        
 
Actavis Plc (a)
     15,000       2,160,151       3,087,751  
 
Ecolab, Inc.
     10,000       891,864       1,079,900  
 
Gilead Sciences, Inc. (a)
     13,000       1,054,391       921,180  
 
Johnson & Johnson
     10,000       866,300       982,300  
 
Perrigo Company Plc
     3,000       482,200       463,980  
 
Valeant Pharmaceuticals International, Inc. (a)
     4,000       578,472       527,320  
                6,033,378       7,062,431  
Computer and Electronic Product Manufacturing - 8.56%
                        
 
Apple, Inc.
     11,000       1,283,013       5,904,140  
 
QUALCOMM, Inc.
     47,000       1,972,037       3,706,420  
                3,255,050       9,610,560  
Couriers and Messengers - 0.87%
                        
 
United Parcel Service, Inc. - Class B
     10,000       671,348       973,800  
Credit Intermediation and Related Activities - 7.89%
                        
 
Capital One Financial Corp.
     50,000       1,579,085       3,858,000  
 
JPMorgan Chase & Co.
     25,000       1,383,242       1,517,750  
 
Wells Fargo & Co.
     70,000       1,821,947       3,481,800  
                4,784,274       8,857,550  
Food Services and Drinking Places - 2.55%
                        
 
McDonald's Corp.
     18,000       1,409,408       1,764,540  
 
Starbucks Corp.
     15,000       561,001       1,100,700  
                1,970,409       2,865,240  
Health and Personal Care Stores - 3.21%
                        
 
Express Scripts Holding Co. (a)
     48,000       1,210,860       3,604,320  
Heavy and Civil Engineering Construction - 2.56%
                        
 
Chicago Bridge & Iron Co. N. V.
     33,000       1,219,884       2,875,950  
Insurance Carriers and Related Activities - 2.23%
                        
 
Berkshire Hathaway, Inc. - Class B (a)
     20,000       678,649       2,499,400  
Machinery Manufacturing - 3.90%
                        
 
Caterpillar, Inc.
     15,000       945,046       1,490,550  
 
General Electric Co.
     50,000       746,325       1,294,500  
 
Roper Industries, Inc.
     12,000       547,802       1,602,120  
                2,239,173       4,387,170  
Nonstore Retailers - 2.77%
                        
 
Amazon.com, Inc. (a)
     3,500       565,147       1,177,820  
 
eBay, Inc. (a)
     35,000       1,476,391       1,933,400  
                2,041,538       3,111,220  
Oil and Gas Extraction - 3.72%
                        
 
Anadarko Petroleum Corp.
     20,000       1,335,558       1,695,200  
 
Apache Corp.
     15,000       1,188,510       1,244,250  
 
Continental Resources, Inc. (a)
     10,000       1,141,409       1,242,700  
                3,665,477       4,182,150  
Other Information Services - 3.97%
                        
 
Google, Inc. - Class A (a)
     4,000       1,691,413       4,458,040  
Petroleum and Coal Products Manufacturing - 2.12%
                        
 
Chevron Corp.
     20,000       1,010,364       2,378,200  
Professional, Scientific, and Technical Services - 14.47%
                        
 
Biogen Idec, Inc. (a)
     2,500       518,357       764,675  
 
Celgene Corp. (a)
     21,000       1,805,456       2,931,600  
 
Cognizant Technology Solutions Corp. - Class A (a)
     24,000       793,243       1,214,640  
 
Mastercard, Inc.
     75,000       1,337,065       5,602,500  
 
priceline.com, Inc. (a)
     3,000       1,696,423       3,575,670  
 
Visa, Inc. - Class A
     10,000       745,136       2,158,600  
                6,895,680       16,247,685  
 
 
 
 
 
Rail Transportation - 4.51%
                        
 
Union Pacific Corp.
     27,000       1,725,558       5,066,820  
Securities, Commodity Contracts, and Other Financial Investments and Related Activities - 3.34%
                        
 
Blackrock, Inc.
     8,000       1,783,768       2,515,840  
 
T. Rowe Price Group, Inc.
     15,000       725,747       1,235,250  
                2,509,515       3,751,090  
Support Activities for Mining - 1.74%
                        
 
Schlumberger Ltd.
     20,000       1,607,823       1,950,000  
Transportation Equipment Manufacturing - 2.34%
                        
 
Eaton Corp. Plc
     35,000       1,816,696       2,629,200  
                           
TOTAL COMMON STOCKS           $ 53,530,034     $ 99,374,876  
                           
EXCHANGE TRADED FUNDS - 9.06%
                        
Funds, Trusts, and Other Financial Vehicles - 9.06%
                        
 
iShares Core S&P Mid-Cap ETF
     40,000     $ 3,684,766     $ 5,498,400  
 
iShares Core S&P Small-Cap ETF
     35,000       2,407,647       3,854,900  
 
iShares MSCI Emerging Markets ETF
     20,000       827,798       819,800  
                           
TOTAL EXCHANGE TRADED FUNDS           $ 6,920,211     $ 10,173,100  
                           
   
Principal
                  
   
Amount
    
Cost
    
Value
  
CORPORATE BONDS - 0.93%
                        
Broadcasting (except Internet) - 0.20%
                        
 
Comcast Corp.
                        
 
6.500%, 01/15/2017
   $ 200,000     $ 199,592     $ 228,340  
Building Material and Garden Equipment and Supplies Dealers - 0.19%
                        
 
Home Depot, Inc.
                        
 
5.400%, 03/01/2016
     200,000       193,664       217,892  
Funds, Trusts, and Other Financial Vehicles - 0.28%
                        
 
Spectra Energy Capital, LLC
                        
 
8.000%, 10/01/2019
     250,000       262,769       306,330  
Machinery Manufacturing - 0.26%
                        
 
Applied Materials, Inc.
                        
 
7.125%, 10/15/2017
     250,000       252,136       294,631  
                           
TOTAL CORPORATE BONDS           $ 908,161     $ 1,047,193  
                           
   
Shares
    
Cost
    
Value
  
SHORT-TERM INVESTMENTS - 1.57%
                        
Mutual Fund - 1.57%
                        
 
SEI Daily Income Trust Treasury Fund, 0.01% (b)
     1,757,255     $ 1,757,255     $ 1,757,255  
                           
TOTAL SHORT-TERM INVESTMENTS           $ 1,757,255     $ 1,757,255  
                           
TOTAL INVESTMENTS - 100.07%
           $ 63,115,661       112,352,424  
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.07)%
                     (82,122 )
TOTAL NET ASSETS - 100.00%
                   $ 112,270,302  
                           
                           
Percentages are stated as a percent of the value of net assets.
          
                           
(a) 
Non Income Producing
                        
(b) 
Variable rate security; the rate shown is the effective date as of March 31, 2014.
                        
                           
The cost basis of investments for federal income tax purposes at March 31, 2014 was as follows:1
  
                           
Cost of Investments
           $ 63,115,661          
                         
Gross unrealized appreciation
             49,451,333          
Gross unrealized depreciation
             (214,570 )        
Net unrealized appreciation
           $ 49,236,763          
 
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 - Unadjusted quoted prices in active markets for identical investments.
                          
• Level 2 - Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.
                
These inputs may include quoted prices for the identical instrument on an inactive market, prices of similar instruments, interest rates,
                
prepayment speeds, credit risk, yield curves, default rates and similar data.
                          
• Level 3 - Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available; representing the Fund's own
                
assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
          
                             
The valuation techniques used by the Fund to measure fair value for the three months ended March 31, 2014 maximized the use of
                
observable inputs and minimized the use of unobservable inputs. During the three months ended March 31, 2014, no securities
                    
held by the Fund were deemed as Level 3.
                          
                             
The following is a summary of the inputs used as of March 31, 2014 in valuing the Fund's investments carried at fair value:
                    
                             
 
Description
  
Level 1
  
Level 2
  
Level 3
    
Total
  
                             
Investments
                          
 
Common Stock
   $ 99,374,876  
 $                    -
   $ -     $ 99,374,876  
 
Exchange Traded Funds
     10,173,100  
                       -
     -       10,173,100  
 
Corporate Bonds
     -  
        1,047,193
     -       1,047,193  
 
Short-Term Investments
     1,757,255  
                       -
     -       1,757,255  
Total Investments in Securities
   $ 111,305,231  
 $     1,047,193
   $ -     $ 112,352,424  
                             
There were no transfers between Levels 1 and 2 during the period ended March 31, 2014. Transfers between levels are recognized
                
at the end of the reporting period. Refer to the Schedule of Investments for further information on the classification of investments.
                
 
 
 
 
 
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                                    5/14/2014                                                            


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                                    5/14/2014                                                            
 

By (Signature and Title)* /s/ Brian Kirkpatrick                                        
                                             Brian Kirkpatrick, Executive Vice President
 
Date                                   5/14/2014                                                             
 

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

Date                                   5/14/2014                                                             


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