-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, M9J8q0SOIhP4rJF+iZA2pmyRmq04Avo619122mGHvmbfHr5Q0rYvtuq4tJ1W31L7 RB5Udi8F8q0twpcJpr0NIw== 0000909012-04-000810.txt : 20041122 0000909012-04-000810.hdr.sgml : 20041122 20041122163902 ACCESSION NUMBER: 0000909012-04-000810 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040930 FILED AS OF DATE: 20041122 DATE AS OF CHANGE: 20041122 EFFECTIVENESS DATE: 20041122 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CORNERSTONE STRATEGIC VALUE FUND INC/ NEW CENTRAL INDEX KEY: 0000814083 IRS NUMBER: 133407699 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-05150 FILM NUMBER: 041161154 BUSINESS ADDRESS: STREET 1: BEAR STEARNS FUNDS MANAGEMENT INC. STREET 2: 383 MADISON AVENUE - 23RD FLOOR CITY: NEW YORK STATE: NY ZIP: 10179 BUSINESS PHONE: 2122722093 MAIL ADDRESS: STREET 1: BEAR STEARNS FUNDS MANAGEMENT INC. STREET 2: 383 MADISON AVENUE - 23RD FLOOR CITY: NEW YORK STATE: NY ZIP: 10179 FORMER COMPANY: FORMER CONFORMED NAME: CLEMENTE STRATEGIC VALUE FUND INC DATE OF NAME CHANGE: 19990622 FORMER COMPANY: FORMER CONFORMED NAME: CLEMENTE GLOBAL GROWTH FUND INC DATE OF NAME CHANGE: 19920703 N-Q 1 t301448.txt CORNERSTONE STRATEGIC VALUE FUND, INC., FORM N-Q 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: 811-05150 CORNERSTONE STRATEGIC VALUE FUND, INC. (Exact name of registrant as specified in charter) 383 MADISON AVENUE NEW YORK, NEW YORK 10179 (Address of principal executive offices) (Zip code) JODI B. LEVINE, TREASURER 383 MADISON AVENUE NEW YORK, NEW YORK 10179 (Name and address of agent for service) Registrant's telephone number, including area code: (212) 272-3550 Date of fiscal year-end: DECEMBER 31, 2004 Date of reporting period: SEPTEMBER 30, 2004 ITEM 1: SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- CORNERSTONE STRATEGIC VALUE FUND, INC. SCHEDULE OF INVESTMENTS - SEPTEMBER 30, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- NO. OF DESCRIPTION SHARES VALUE - -------------------------------------------------------------------------------- EQUITY SECURITIES - 99.52% CLOSED-END DOMESTIC FUNDS - 2.12% Adams Express Co. 49,500 $ 628,155 General American Investors Co., Inc. 3,000 88,590 Salmon Brothers Fund, Inc. (The) 11,900 141,729 Tri Continental Corp. 77,000 1,278,970 Zweig Fund, Inc. 176,600 943,044 ------------ 3,080,488 ------------ CONSUMER DISCRETIONARY - 14.40% Bed Bath & Beyond Inc. + 4,200 155,862 Best Buy Co., Inc. 4,750 257,640 Carnival Corp. 11,800 558,022 Circuit City Stores, Inc. 1,000 15,340 Clear Channel Communications, Inc. 8,800 274,296 Comcast Corp., Class A + 31,537 890,605 Comcast Corp., Special Class A + 4,100 114,472 Costco Wholesale Corp. 6,500 270,140 CVS Corp. 2,500 105,325 Delphi Corp. 7,600 70,604 Eastman Kodak Co. 1,400 45,108 Federated Deparment Stores, Inc. 1,000 45,430 Ford Motor Co. 26,300 369,515 Fortune Brands, Inc. 1,000 74,090 Furniture Brands International, Inc. 52,200 1,309,176 Gannett Co., Inc. 2,000 167,520 Gap, Inc. (The) 12,200 228,140 General Motors Corp. 6,500 276,120 Gildan Activewear Inc., Class A + 44,300 1,249,260 Goodyear Tire & Rubber Co. (The) + 4,500 48,330 Harley-Davidson, Inc. 4,400 261,536 Hilton Hotels Corp. 3,200 60,288 Home Depot, Inc. (The) 30,600 1,199,520 J.C. Penney Co., Inc. 4,500 158,760 Kohl's Corp. + 5,000 240,950 Lowe's Companies, Inc. 11,200 608,720 Marriott International, Inc., Class A 2,100 109,116 Mattel, Inc. 5,500 99,715 May Department Stores Co. (The) 4,900 125,587 McDonald's Corp. 17,600 493,328 Monsanto Co. 580 21,124 NIKE, Inc., Class B 2,300 181,240 Omnicom Group Inc. 1,600 116,896 Reebok International Ltd. 1,500 55,080 Rockwell Automation, Inc. 2,500 96,750 Sears, Roebuck & Co. 1,600 63,760 Staples, Inc. 7,200 214,704 Starbucks Corp. + 5,400 245,484 Target Corp. 11,800 533,950 Time Warner Inc. + 57,750 932,085 TJX Companies, Inc. (The) 7,000 154,280 Toys R Us, Inc. + 1,000 17,740 United Natural Foods, Inc. + 138,200 3,676,120 Viacom Inc., non-voting Class B 23,900 802,084 Wal-Mart Stores, Inc. 59,800 3,181,360 Walt Disney Co. (The) 29,200 658,460 Yum! Brands, Inc. + 3,000 121,980 ------------ 20,955,612 ------------ - -------------------------------------------------------------------------------- CORNERSTONE STRATEGIC VALUE FUND, INC. SCHEDULE OF INVESTMENTS - SEPTEMBER 30, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- NO. OF DESCRIPTION SHARES VALUE - -------------------------------------------------------------------------------- CONSUMER STAPLES - 6.20% Albertson's, Inc. 2,500 59,825 Altria Group, Inc. 29,300 1,378,272 Anheuser-Busch Companies, Inc. 8,700 434,565 Archer-Daniels-Midland Co. 5,460 92,711 Campbell Soup Co. 2,000 52,580 Coca-Cola Co. (The) 21,800 873,090 Coca-Cola Enterprises Inc. 6,500 122,850 Colgate-Palmolive Co. 8,400 379,512 ConAgra Foods, Inc. 4,400 113,124 General Mills, Inc. 2,500 112,250 Gillette Co. (The) 12,600 525,924 H.J. Heinz Co. 1,600 57,632 Kimberly-Clark Corp. 6,900 445,671 Kroger Co. (The) + 4,800 74,496 Pepsi Bottling Group, Inc. (The) 4,000 108,600 PepsiCo, Inc. 24,800 1,206,520 Procter & Gamble Co. (The) 37,600 2,034,912 Sara Lee Corp. 11,500 262,890 Sysco Corp. 5,800 173,536 Walgreen Co. 14,300 512,369 ------------ 9,021,329 ------------ ENERGY - 7.25% Anadarko Petroleum Corp. 900 59,724 Baker Hughes Inc. 1,100 48,092 CenterPoint Energy, Inc. 3,900 40,404 ChevronTexaco Corp. 19,330 1,036,861 ConocoPhillips 6,237 516,736 Exxon Mobil Corp. 71,000 3,431,430 FMC Technologies, Inc. + 105,800 3,533,720 Marathon Oil Corp. 1,500 61,920 Reliant Energy Inc. + 1,104 10,300 Schlumberger Ltd. 4,600 309,625 Unocal Corp. 1,200 51,600 Western Gas Resources, Inc. 50,800 1,452,372 ------------ 10,552,784 ------------ FINANCIALS - 19.39% Affiliated Managers Group, Inc. + 30,300 1,622,262 AFLAC Inc. 7,000 274,470 Allstate Corp. (The) 9,300 446,307 American Express Co. 15,600 802,776 American International Group, Inc. 37,531 2,551,733 Aon Corp. 4,900 140,826 Bank of America Corp. 55,616 2,409,841 Bank of New York Co., Inc. (The) 11,800 344,206 Charles Schwab Corp. (The) 12,000 110,280 Citigroup Inc. 74,300 3,278,116 Direct General Corp. 6,500 187,980 Fannie Mae 13,000 824,200 Fifth Third Bancorp 9,000 442,980 First Marblehead Corp. (The) + 73,300 3,401,120 Franklin Resources, Inc. 3,700 206,312 Freddie Mac 9,500 619,780 Goldman Sachs Group, Inc. (The) 7,300 680,652 Hartford Financial Services Group, Inc. (The) 6,000 371,580 HSBC Holdings plc, ADR 2,300 183,540 J.P. Morgan Chase & Co. 30,332 1,205,090 Lehman Brothers Holdings Inc. 3,600 286,992 Manulife Financial Corp. 2,963 129,750 Marsh & McLennan Companies, Inc. 4,100 187,616 - -------------------------------------------------------------------------------- CORNERSTONE STRATEGIC VALUE FUND, INC. SCHEDULE OF INVESTMENTS - SEPTEMBER 30, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- NO. OF DESCRIPTION SHARES VALUE - -------------------------------------------------------------------------------- MBNA Corp. 12,600 317,520 Merrill Lynch & Co., Inc. 14,400 715,968 MetLife, Inc. 10,200 394,230 Morgan Stanley 15,500 764,150 National City Corp. 9,700 374,614 Northern Trust Corp. 3,500 142,800 Piper Jaffray Companies., Inc. + 104 4,117 PNC Financial Services Group 4,100 221,810 Prudential Financial, Inc. 8,200 385,728 St. Paul Travelers Companies, Inc. (The) 9,476 313,277 State Street Corp. 3,500 149,485 SunTrust Banks, Inc. 3,600 253,476 UnumProvident Corp. 1,100 17,259 U.S. Bancorp 25,401 734,089 Wachovia Corp. 17,600 826,320 Washington Mutual, Inc. 11,550 451,374 Wells Fargo & Co. 24,200 1,443,046 ------------ 28,217,672 ------------ HEALTHCARE - 12.86% Abbott Laboratories 21,000 889,560 Allergan Inc. 1,000 72,550 Amgen Inc. + 18,900 1,071,252 Becton, Dickinson & Co. 3,900 201,630 Boston Scientific Corp. + 12,300 488,679 Bristol-Myers Squibb Co. 14,400 340,848 Cardinal Health, Inc. 2,950 129,122 Cooper Companies, Inc. (The) 60,000 4,113,000 Edwards Lifesciences Corp. + 53,000 1,775,500 Eli Lilly & Co. 14,500 870,725 Guidant Corp. 1,400 92,456 HCA Inc. 3,500 133,525 HEALTHSOUTH Corp. + 4,300 21,715 Hospira, Inc. + 700 21,420 Johnson & Johnson 40,900 2,303,897 McKesson Corp. 2,300 58,995 Medco Health Solutions, Inc. + 1,687 52,128 Medtronic, Inc. 16,300 845,970 Merck & Co. Inc. 20,500 676,500 Pfizer Inc. 99,660 3,049,596 Schering-Plough Corp. 7,500 142,950 Tenet Healthcare Corp. + 2,250 24,277 UnitedHealth Group Inc. 8,500 626,790 Wyeth 19,200 718,080 ------------ 18,721,165 ------------ INDUSTRIALS - 8.86% 3M Co. 4,400 351,868 Automatic Data Processing, Inc. 4,900 202,468 Boeing Co. (The) 11,700 603,954 Caterpillar Inc. 2,900 233,305 Cendant Corp. 6,000 129,600 CSX Corp. 1,000 33,200 - -------------------------------------------------------------------------------- CORNERSTONE STRATEGIC VALUE FUND, INC. SCHEDULE OF INVESTMENTS - SEPTEMBER 30, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- NO. OF DESCRIPTION SHARES VALUE - -------------------------------------------------------------------------------- Emerson Electric Co. 3,500 216,615 FedEx Corp. 4,500 385,605 General Dynamics Corp. 3,100 316,510 General Electric Co. 52,700 1,769,666 Heartland Express, Inc. 57,535 1,061,521 Honeywell International Inc. 12,500 448,250 Illinois Tool Works Inc. 2,400 223,608 IMS Health Inc. 1,400 33,488 Lockheed Martin Corp. 4,000 223,120 Masco Corp. 4,200 145,026 Paychex, Inc. 4,200 126,630 Shuffle Master, Inc. + 32,200 1,206,212 Southwest Airlines Co. 6,450 87,849 Tyco International Ltd. 8,397 257,452 Union Pacific Corp. 2,000 117,200 United Parcel Service, Inc., Class B 16,300 1,237,496 United Technologies Corp. 7,200 672,336 USF Corp. 72,600 2,605,614 Waste Management, Inc. 4,200 114,828 Transocean Inc. + 2,500 89,450 ------------ 12,892,871 ------------ INFORMATION TECHNOLOGY - 14.42% Adobe Systems Inc. 1,100 54,417 Agere Systems Inc., Class A + 240 252 Agilent Technologies, Inc. + 3,300 71,181 Altera Corp. + 3,400 66,538 Analog Devices, Inc. 2,700 104,706 Apple Computer, Inc. + 1,500 58,125 Applied Materials, Inc. + 7,800 128,622 CACI International Inc., Class A + 9,800 517,244 Cisco Systems, Inc. + 96,400 1,744,840 Corning Inc. + 3,000 33,240 Dell Inc. + 29,700 1,057,320 eBay Inc. + 9,500 873,430 Electronic Arts Inc. + 2,000 91,980 Electronic Data Systems Corp. 1,000 19,390 EMC Corp. + 271,848 3,137,126 Fairchild Semiconductor International, Inc. + 201,600 2,856,672 First Data Corp. 7,324 318,594 Hewlett-Packard Co. 27,900 523,125 Intel Corp. 80,600 1,616,836 International Business Machines Corp. 21,000 1,800,540 Linear Technology Corp. 2,500 90,600 Maxim Integrated Products, Inc. 2,300 97,267 Micron Technology, Inc. + 2,500 30,075 Microsoft Corp. 142,100 3,929,065 Motorola, Inc. 13,700 247,148 Oracle Corp. + 26,100 294,408 QUALCOMM Inc. 17,000 663,680 Sanmina-SCI Corp. + 2,500 17,625 Siebel Systems, Inc. + 2,500 18,850 Solectron Corp. + 3,000 14,850 Sun Microsystems, Inc. + 7,500 30,300 Texas Instruments Inc. 8,800 187,264 Yahoo! Inc. + 8,800 298,408 ------------ 20,993,718 ------------ - -------------------------------------------------------------------------------- CORNERSTONE STRATEGIC VALUE FUND, INC. SCHEDULE OF INVESTMENTS - SEPTEMBER 30, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- NO. OF DESCRIPTION SHARES VALUE - -------------------------------------------------------------------------------- MATERIALS - 10.07% Air Products & Chemicals, Inc. 1,000 54,380 Alcoa Inc. 4,200 141,078 Dow Chemical Co. (The) 5,400 243,972 E.I. Du Pont de Nemours & Co. 8,500 363,800 Georgia-Pacific Corp. 2,000 71,900 International Paper Co. 4,500 181,845 Joy Global Inc. 114,100 3,922,758 Packaging Corp. of America 105,500 2,581,585 Peabody Energy Corp. 67,000 3,986,500 Praxair, Inc. 3,000 128,220 Rohm & Haas Co. 1,000 42,970 Steel Dynamics, Inc. + 74,300 2,869,466 Weyerhaeuser Co. 1,000 66,480 ------------ 14,654,954 ------------ REAL ESTATE INVESTMENT TRUSTS - 0.15% Simon Property Group Inc. 4,000 214,520 ------------ TELECOMMUNICATIONS SERVICES - 2.34% ALLTEL Corp. 1,500 82,365 AT&T Corp. 9,320 133,462 AT&T Wireless Services Inc. + 26,056 385,108 BellSouth Corp. 20,000 542,400 Lucent Technologies Inc. + 10,700 33,919 Nextel Communications, Inc., Class A + 11,000 262,240 SBC Communications Inc. 30,600 794,070 Sprint Corp. (FON Group) 10,800 217,404 Verizon Communications Inc. 24,100 949,058 ------------ 3,400,026 ------------ UTILITIES - 1.46% American Electric Power Co., Inc. 2,700 86,292 Dominion Resources, Inc. 2,100 137,025 Duke Energy Corp. 5,300 121,317 Edison International 4,000 106,040 Exelon Corp. 8,000 293,520 FirstEnergy Corp. 5,000 205,400 FPL Group, Inc. 3,500 239,120 Progress Energy, Inc. 3,500 148,190 Public Service Enterprise Group Inc. 1,000 42,600 Scottish Power plc, ADR 4,000 123,360 Southern Co. (The) 8,400 251,832 TXU Corp. 4,700 225,224 Xcel Energy, Inc. 8,200 142,024 ------------ 2,121,944 ------------ TOTAL EQUITY SECURITIES - 99.52% (Cost - $123,994,078) 144,827,083 ============ PRINCIPAL AMOUNT (000'S) VALUE --------- ------------ SHORT-TERM INVESTMENTS - 5.74% REPURCHASE AGREEMENTS - 5.74% Bear, Stearns & Co. Inc. (Agreement dated 09/30/04 to be repurchased at $830,629), 1.68%, 10/01/04 $ 831 830,606 - -------------------------------------------------------------------------------- CORNERSTONE STRATEGIC VALUE FUND, INC. SCHEDULE OF INVESTMENTS - SEPTEMBER 30, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT DESCRIPTION (000'S) VALUE - -------------------------------------------------------------------------------- Bear, Stearns & Co. Inc. (Agreement dated 09/30/04 to be repurchased at $1,561,259), 0.94%*, 10/01/04, collateralized by U.S. Treasury Bonds** 1,516 1,516,220 Bear, Stearns & Co. Inc. (Agreement dated 09/30/04 to be repurchased at $6,166,677), 1.88%*, 10/01/04, collateralized by U.S. Treasury Bonds** 6,002 6,002,364 ------------ TOTAL SHORT-TERM INVESTMENTS (Cost - $8,349,190) 8,349,190 ------------ TOTAL INVESTMENTS - 105.26% (cost - $132,343,268) 153,176,273 ------------ LIABILITIES IN EXCESS OF OTHER ASSETS - (5.26)% (7,648,273) ------------ NET ASSETS - 100.00% $145,528,000 ============ - ---------- + Non-income producing security. * Stated interest rate, before rebate earned by borrower of securities on loan. ** Represents investment purchased with cash collateral received. ADR American Depositary Receipts. Portfolio Valuation - Investments are stated at value in the accompanying financial statements. All equity securities shall be valued at the closing price on the exchange or market on which the security is primarily traded ("Primary Market"). If the security did not trade on the Primary Market, it shall be valued at the closing price on another exchange where it trades. If there are no such sales prices, the value shall be the most recent bid, and if there is no bid, the security shall be valued at the most recent asked. If no pricing service is available and there are more than two dealers, the value shall be the mean of the highest bid and the lowest ask. If there is only one dealer, then the value shall be the mean if bid and ask are available, otherwise the value shall be the bid. All other securities and assets are valued as determined in good faith by the Board of Directors. Short-term investments having a maturity of 60 days or less are valued on the basis of amortized cost. The Board of Directors has established general guidelines for calculating fair value of not readily marketable securities. At September 30, 2004, the Fund held no securities valued in good faith by the Board of Directors. The net asset value per share of the Fund is calculated weekly and on the last business day of the month with the exception of those days on which the American Stock Exchange, LLC is closed. Repurchase Agreements - The Fund has agreed to purchase securities from financial institutions subject to the seller's agreement to repurchase them at an agreed-upon time and price ("repurchase agreements"). The financial institutions with whom the Fund enters into repurchase agreements are banks and broker/ dealers, which Cornerstone Advisors, Inc. (the Fund's "Investment Manager" or "Cornerstone") considers creditworthy. The seller under a repurchase agreement will be required to maintain the value of the securities as collateral, subject to the agreement at not less than the repurchase price plus accrued interest. Cornerstone monitors daily, the mark-to-market of the value of the collateral, and, if necessary, requires the seller to maintain additional securities, so that the value of the collateral is not less than the repurchase price. Default by or bankruptcy of the seller would, however, expose the Fund to possible loss because of adverse market action or delays in connection with the disposition of underlying securities. Federal Income Tax Cost - At September 30, 2004, the identified cost for federal income tax purposes, as well as the gross unrealized appreciation from investments for those securities having an excess of value over cost, gross unrealized depreciation from investments for those securities having an excess of cost over value and the net depreciation from investments for those securities having an excess of cost over value and the net unrealized appreciation from investments were $132,343,268, $26,849,126, $(6,016,121) and $20,833,005, respectively. Other information regarding the Fund is available in the Fund's most recent Report to Shareholders. This information is available to registered shareholders by calling (800) 937-5449. For general inquiries, please call (212) 272-3550. This information is also available on the website of the Securities and Exchange Commission - http://www.sec.gov. ITEM 2: CONTROLS AND PROCEDURES (a) As of a date within 90 days from the filing date of this report, the principal executive officer and principal financial officer concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "Act")), were effective based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities and Exchange Act of 1934. (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) 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 1. The certifications of the registrant as required by Rule 30a-2(a) under the Act are exhibits to this report. - -------------------------------------------------------------------------------- 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. Cornerstone Strategic Value Fund, Inc. /s/ Ralph W. Bradshaw ----------------------------- Name: Ralph W. Bradshaw Title: Principal Executive Officer Date: November 22, 2004 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. /s/ Ralph W. Bradshaw ------------------------ Name: Ralph W. Bradshaw Title: Principal Executive Officer Date: November 22, 2004 /s/ Jodi B. Levine --------------------- Name: Jodi B. Levine Title: Principal Financial Officer Date: November 22, 2004 EX-99.CERT 2 exh99-cert.txt CERTIFICATIONS EXHIBIT 99.CERT CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Ralph W. Bradshaw 1. I have reviewed this report on Form N-Q of Cornerstone Strategic Value Fund Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date November 22, 2004 /s/ Ralph W. Bradshaw --------------------- Name: Ralph W. Bradshaw Title: Principal Executive Officer I, Jodi B. Levine, certify that: 1. I have reviewed this report on Form N-Q of Cornerstone Strategic Value Fund Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: November 22, 2004 /s/ Jodi B. Levine ------------------ Name: Jodi B. Levine Title:Principal Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----