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


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, 2016


Date of reporting period: March 31, 2016


 
Item 1. Schedule of Investments.
 
BRIDGES INVESTMENT FUND, INC.
  
   
SCHEDULE OF INVESTMENTS
  
   
MARCH 31, 2016
  
(Unaudited)
  
Title of Security
  
Shares
    
Cost
    
Value
  
COMMON STOCKS - 85.01%
                  
Administrative and Support Services - 1.19%
                  
PayPal Holdings, Inc. (a)
    
35,000
    
$
871,561
    
$
1,351,000
  
Ambulatory Health Care Services - 1.03%
                        
DaVita Healthcare Partners, Inc. (a)
    
16,000
    
$
961,035
    
$
1,174,080
  
Amusement, Gambling, and Recreation Industries - 2.88%
                        
The Walt Disney Co.
    
33,000
    
$
1,706,859
    
$
3,277,230
  
Beverage and Tobacco Product Manufacturing - 4.82%
                        
Altria Group, Inc.
    
35,000
    
$
823,041
    
$
2,193,100
  
PepsiCo, Inc.
    
13,000
      
632,331
      
1,332,240
  
Philip Morris International, Inc.
    
20,000
      
782,617
      
1,962,200
  
             
$
2,237,989
    
$
5,487,540
  
Broadcasting (except Internet) - 1.61%
                        
Comcast Corp.
    
30,000
    
$
1,381,050
    
$
1,832,400
  
Chemical Manufacturing - 8.69%
                        
Allergan Plc (a)
    
15,000
    
$
2,160,149
    
$
4,020,449
  
Ecolab, Inc.
    
15,000
      
1,436,988
      
1,672,800
  
Gilead Sciences, Inc.
    
20,000
      
1,781,107
      
1,837,200
  
Johnson & Johnson
    
10,000
      
866,300
      
1,082,000
  
Perrigo Co. Plc
    
10,000
      
1,469,667
      
1,279,300
  
             
$
7,714,211
    
$
9,891,749
  
Computer and Electronic Product Manufacturing - 8.50%
                        
Apple, Inc.
    
70,000
    
$
1,181,978
    
$
7,629,300
  
QUALCOMM, Inc.
    
40,000
      
1,687,005
      
2,045,600
  
             
$
2,868,983
    
$
9,674,900
  
Couriers and Messengers - 0.93%
                        
United Parcel Service, Inc. - Class B
    
10,000
    
$
985,007
    
$
1,054,700
  
Credit Intermediation and Related Activities - 6.67%
                        
Capital One Financial Corp.
    
35,000
    
$
1,042,098
    
$
2,425,850
  
JPMorgan Chase & Co.
    
30,000
      
1,721,192
      
1,776,600
  
Wells Fargo & Co.
    
70,000
      
1,821,948
      
3,385,200
  
             
$
4,585,238
    
$
7,587,650
  
Food Services and Drinking Places - 1.57%
                        
Starbucks Corp.
    
30,000
    
$
561,001
    
$
1,791,000
  
Health and Personal Care Stores - 3.02%
                        
Express Scripts Holding Co. (a)
    
50,000
    
$
1,352,414
    
$
3,434,500
  
Insurance Carriers and Related Activities - 2.49%
                        
Berkshire Hathaway, Inc. - Class B(a)
    
20,000
    
$
678,649
    
$
2,837,600
  
Machinery Manufacturing - 1.61%
                        
Roper Technologies, Inc.
    
10,000
    
$
437,286
    
$
1,827,700
  
Nonstore Retailers - 2.61%
                        
Amazon.com, Inc. (a)
    
5,000
    
$
1,231,664
    
$
2,968,200
  
Oil and Gas Extraction - 1.07%
                        
Continental Resources, Inc. (a)
    
40,000
    
$
1,127,472
    
$
1,214,400
  
Other Information Services - 6.81%
                        
Alphabet, Inc. - Class A (a)
    
4,000
    
$
847,060
    
$
3,051,600
  
Alphabet, Inc. - Class C (a)
    
4,010
      
844,083
      
2,987,250
  
Facebook, Inc. (a)
    
15,000
      
1,269,625
      
1,711,500
  
             
$
2,960,768
    
$
7,750,350
  
Petroleum and Coal Products Manufacturing - 1.68%
                        
Chevron Corp.
    
20,000
    
$
1,010,364
    
$
1,908,000
  
Professional, Scientific, and Technical Services - 18.62%
                        
Biogen, Inc. (a)
    
5,000
    
$
1,343,342
    
$
1,301,600
  
Celgene Corp. (a)
    
48,000
      
2,357,821
      
4,804,320
  
Cognizant Technology Solutions Corp. - Class A (a)
    
15,000
      
845,592
      
940,500
  
MasterCard, Inc.
    
75,000
      
1,337,065
      
7,087,500
  
Priceline Group, Inc. (a)
    
3,100
      
1,807,092
      
3,995,776
  
Visa, Inc. - Class A
    
40,000
      
745,136
      
3,059,200
  
             
$
8,436,048
    
$
21,188,896
  
Rail Transportation - 3.63%
                        
Union Pacific Corp.
    
52,000
    
$
1,674,382
    
$
4,136,600
  
Securities, Commodity Contracts, and Other Financial Investments and Related Activities - 3.66%
                        
BlackRock, Inc.
    
9,000
    
$
2,079,708
    
$
3,065,130
  
T. Rowe Price Group, Inc.
    
15,000
      
725,747
      
1,101,900
  
             
$
2,805,455
    
$
4,167,030
  
Transportation Equipment Manufacturing - 1.92%
                        
Eaton Corp. Plc
    
35,000
    
$
1,816,695
    
$
2,189,600
  
                           
TOTAL COMMON STOCKS
          
$
47,404,131
    
$
96,745,125
  
 
 
 
                           
EXCHANGE TRADED FUNDS - 10.38%
                        
Funds, Trusts, and Other Financial Vehicles - 10.38%
                        
iShares Core S&P Mid-Cap ETF
    
40,000
    
$
3,684,766
    
$
5,767,600
  
iShares Core S&P Small-Cap ETF
    
35,000
      
2,407,647
      
3,939,950
  
iShares MSCI EAFE ETF
    
30,000
      
1,709,691
      
1,713,900
  
iShares NASDAQ Biotechnology ETF
    
1,500
    
$
448,725
    
$
391,215
  
                           
TOTAL EXCHANGE TRADED FUNDS
          
$
8,250,829
    
$
11,812,665
  
                           
   
Principal
                  
   
Amount
    
Cost
    
Value
  
CORPORATE BONDS - 0.66%
                        
Broadcasting (except Internet) - 0.18%
                        
Comcast Corp.
                        
 6.500%, 01/15/2017
  
$
200,000
    
$
199,592
    
$
208,666
  
Funds, Trusts, and Other Financial Vehicles - 0.24%
                        
Spectra Energy Capital, LLC
                        
 8.000%, 10/01/2019
    
250,000
    
$
258,682
    
$
274,858
  
Machinery Manufacturing - 0.24%
                        
Applied Materials, Inc.
                        
 7.125%, 10/15/2017
    
250,000
    
$
251,010
    
$
268,636
  
                           
TOTAL CORPORATE BONDS
          
$
709,284
    
$
752,160
  
                           
   
Shares
    
Cost
    
Value
  
SHORT-TERM INVESTMENTS - 4.06%
                        
Mutual Fund - 4.06%
                        
SEI Daily Income Trust Treasury - Class A, 0.10% (b)
    
4,622,063
    
$
4,622,063
    
$
4,622,063
  
                           
TOTAL SHORT-TERM INVESTMENTS
          
$
4,622,063
    
$
4,622,063
  
                           
TOTAL INVESTMENTS - 100.11%
          
$
60,986,307
    
$
113,932,013
  
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.11)%
                    
(129,179
)
TOTAL NET ASSETS - 100.00%
                  
$
113,802,834
  
                           
Percentages are stated as a percent of net assets.
  
(a) Non Income Producing.
                        
(b) Variable rate security; the rate shown is the effective date as of March 31, 2016.
                        
 
The cost basis of investments for federal income tax purposes at March 31, 2016 was as follows:1
 
Cost of Investments
  
$
60,986,307
  
         
Gross unrealized appreciation
    
53,235,325
  
Gross unrealized depreciation
    
(289,619
)
Net unrealized appreciation
  
$
52,945,706
  
 
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, 2016 maximized the use of
  
observable inputs and minimized the use of unobservable inputs.  During the three months ended March 31, 2016, no securities
    
held by the Fund were deemed as Level 3.
        
           
The following is a summary of the inputs used as of March 31, 2016, in valuing the Fund's investments carried at fair value:
    
 
Description
  
Level 1
    
Level 2
    
Level 3
    
Total
  
                         
Investments
                        
Common Stock
  
$
96,745,125
    
$
-
    
$
-
    
$
96,745,125
  
Exchange Traded Funds
    
11,812,665
      
-
      
-
      
11,812,665
  
Corporate Bonds
    
-
      
752,160
      
-
      
752,160
  
Short-Term Investments
    
4,622,063
      
-
      
-
      
4,622,063
  
Total Investments in Securities
  
$
113,179,853
    
$
752,160
    
$
-
    
$
113,932,013
  
                                 
There were no transfers between Levels 1 and 2 during the period ended March 31, 2016. 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   5/17/16                                                                                                  



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   5/17/16                                                                                                  
 
 
By (Signature and Title)* /s/ Brian Kirkpatrick                                         
                                             Brian Kirkpatrick, Executive Vice President
 
Date   5/17/16                                                                                                  
 
 
By (Signature and Title)* /s/ Nancy K. Dodge                                         
                                              Nancy K. Dodge, Treasurer and
                                              Chief Compliance Officer

Date   5/17/16                                                                                                  


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