N-Q 1 t301826.txt QUARTERLY SCHEDULE 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 811-05150 -------------------------- Cornerstone Strategic Value Fund, Inc. -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 383 Madison Avenue, New York, NY 10179 -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Vincent L. Pereira Cornerstone Strategic Value Fund, Inc., 383 Madison Avenue, New York, NY 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, 2005 ----------------- Date of reporting period: January 1, 2005 through March 31, 2005 -------------------------------------- ITEM 1: SCHEDULE OF INVESTMENTS -------------------------------------------------------------------------------- CORNERSTONE STRATEGIC VALUE FUND, INC. SCHEDULE OF INVESTMENTS - MARCH 31, 2005 (UNAUDITED) -------------------------------------------------------------------------------- NO. OF DESCRIPTION SHARES VALUE -------------------------------------------------------------------------------- EQUITY SECURITIES - 99.44% CLOSED-END DOMESTIC FUNDS - 2.17% Adams Express Co. 49,500 $ 637,065 General American Investors Co., Inc. 3,000 92,610 Salomon Brothers Fund, Inc. (The) 11,900 150,535 Tri-Continental Corp. 77,000 1,370,600 Zweig Fund, Inc. 176,600 967,768 ------------ 3,218,578 ------------ CONSUMER DISCRETIONARY - 14.68% Bed Bath & Beyond Inc. + 4,200 153,468 Best Buy Co., Inc. 4,750 256,548 Carnival Corp. 11,800 611,358 Circuit City Stores, Inc. 1,000 16,050 Clear Channel Communications, Inc. 8,800 303,336 Comcast Corp., Class A + 31,537 1,065,320 Costco Wholesale Corp. 6,500 287,170 CVS Corp. 2,500 131,550 Delphi Corp. 7,600 34,048 Eastman Kodak Co. 1,400 45,570 Federated Department Stores, Inc. 1,000 63,640 Ford Motor Co. 26,300 297,979 Fortune Brands, Inc. 1,000 80,630 Furniture Brands International, Inc. 52,200 1,138,482 Gannett Co., Inc. 2,000 158,160 Gap, Inc. (The) 12,200 266,448 General Motors Corp. 6,500 191,035 Gildan Activewear Inc., Class A + 44,300 1,882,750 Goodyear Tire & Rubber Co. (The) 4,500 60,075 Harley-Davidson, Inc. 4,400 254,144 Hilton Hotels Corp. 3,200 71,520 Home Depot, Inc. (The) 30,600 1,170,144 J.C. Penney Co., Inc. 4,500 233,640 Kohl's Corp. 5,000 258,150 Lowe's Companies, Inc. 11,200 639,408 Marriott International, Inc., Class A 2,100 140,406 Mattel, Inc. 5,500 117,425 May Department Stores Co. 4,900 181,398 McDonald's Corp. 17,600 548,064 Monsanto Co. 580 37,410 News Corp., Class A 30,000 507,600 NIKE, Inc., Class B 2,300 191,613 Omnicom Group Inc. 4,100 362,932 Reebok International Ltd. 1,500 66,450 Rockwell Automation, Inc. 2,500 141,600 Sears Holdings Corp. + 503 66,984 Staples, Inc. 7,200 226,296 Starbucks Corp. + 5,400 278,964 Target Corp. 11,800 590,236 Time Warner Inc. + 41,000 719,550 TJX Companies, Inc. (The) 7,000 172,410 Toys "R" Us, Inc. + 1,000 25,760 United Natural Foods, Inc. 99,400 2,845,822 Viacom Inc., non-voting Class B 23,900 832,437 Wal-Mart Stores, Inc. 59,800 2,996,578 Walt Disney Co. (The) 29,200 838,916 Yum! Brands, Inc. 3,000 155,430 ------------ 21,714,904 ------------ CONSUMER STAPLES - 6.35% Altria Group, Inc. 29,300 1,915,927 Anheuser-Busch Companies, Inc. 8,700 412,293 Archer-Daniels-Midland Co. 5,460 134,207 Campbell Soup Co. 2,000 58,040 Coca-Cola Co. (The) 15,500 645,885 Coca-Cola Enterprises Inc. 6,500 133,380 Colgate-Palmolive Co. 2,100 109,557 ConAgra Foods, Inc. 4,400 118,888 General Mills, Inc. 2,500 122,875 Gillette Co. (The) 12,600 636,048 H.J. Heinz Co. 1,600 58,944 Kimberly-Clark Corp. 6,900 453,537 Kroger Co. (The) + 4,800 76,944 Pepsi Bottling Group, Inc. (The) 4,000 111,400 PepsiCo, Inc. 24,800 1,315,144 Procter & Gamble Co. (The) 37,600 1,992,800 Sara Lee Corp. 11,500 254,840 Sysco Corp. 5,800 207,640 Walgreen Co. 14,300 635,206 ------------ 9,393,555 ------------ ENERGY - 7.86% Anadarko Petroleum Corp. 900 68,490 Baker Hughes Inc. 1,100 48,939 CenterPoint Energy, Inc. 3,900 46,917 ChevronTexaco Corp. 19,330 1,127,132 ConocoPhillips 6,237 672,598 Exxon Mobil Corp. 71,000 4,231,600 FMC Technologies, Inc. + 93,300 3,095,694 Marathon Oil Corp. 1,500 70,380 Occidental Petroleum Corp. 4,000 284,680 Reliant Energy Inc. + 1,104 12,564 Schlumberger Ltd. 2,000 140,960 Unocal Corp. 1,200 74,028 Western Gas Resources, Inc. 50,800 1,750,060 ------------ 11,624,042 ------------ FINANCIALS - 18.30% Aetna Inc. 6,000 449,700 Affiliated Managers Group, Inc. + 30,300 1,879,509 AFLAC Inc. 7,000 260,820 Allstate Corp. (The) 9,300 502,758 American Express Co. 15,600 801,372 American International Group, Inc. 37,531 2,079,593 Aon Corp. 4,900 111,916 Bank of America Corp. 55,616 2,452,666 Bank of New York Co., Inc. (The) 8,400 244,020 Charles Schwab Corp. (The) 12,000 126,120 Citigroup Inc. 74,300 3,339,042 Fannie Mae 13,000 707,850 Fifth Third Bancorp 9,000 386,820 First Marblehead Corp. (The) 40,700 2,341,471 Franklin Resources, Inc. 3,700 254,005 Freddie Mac 9,500 600,400 Goldman Sachs Group, Inc. (The) 7,300 802,927 Hartford Financial Services Group, Inc. (The) 6,000 411,360 JPMorgan Chase & Co. 30,332 1,049,487 Lehman Brothers Holdings Inc. 3,600 338,976 Manulife Financial Corp. 2,963 141,987 Marsh & McLennan Companies, Inc. 4,100 124,722 MBNA Corp. 12,600 309,330 Merrill Lynch & Co., Inc. 10,700 605,620 MetLife, Inc. 10,200 398,820 Morgan Stanley 15,500 887,375 National City Corp. 9,700 324,950 Northern Trust Corp. 3,500 152,040 Piper Jaffray Companies, Inc. + 104 3,805 PNC Financial Services Group, Inc. 4,100 211,068 Prudential Financial, Inc. 8,200 470,680 State Street Corp. 3,500 153,020 St. Paul Travelers Companies, Inc. (The) 9,476 348,053 SunTrust Banks, Inc. 3,600 259,452 UnumProvident Corp. 1,100 18,722 U.S. Bancorp 25,401 732,057 Wachovia Corp. 17,600 896,016 Washington Mutual, Inc. 11,550 456,225 Wells Fargo & Co. 24,200 1,447,160 ------------ 27,081,914 ------------ HEALTHCARE - 11.91% Abbott Laboratories 21,000 979,020 Amgen Inc. + 18,900 1,100,169 Becton, Dickinson & Co. 3,900 227,838 Biogen Idec Inc. + 3,000 103,530 Boston Scientific Corp. 12,300 360,267 Bristol-Myers Squibb Co. 10,500 267,330 Cardinal Health, Inc. 5,450 304,110 Caremark Rx, Inc. + 6,500 258,570 Cooper Companies, Inc. (The) 40,500 2,952,450 Edwards Lifesciences Corp. + 39,200 1,694,224 Eli Lilly & Co. 14,500 755,450 Guidant Corp. 1,400 103,460 HCA, Inc. 3,500 187,495 Hospira, Inc. + 700 22,589 Johnson & Johnson 40,900 2,746,844 McKesson Corp. 2,300 86,825 Medco Health Solutions, Inc. + 1,687 83,625 Medtronic, Inc. 1,500 76,425 Merck & Co. Inc. 20,500 663,585 Pfizer Inc. 99,660 2,618,068 Schering-Plough Corp. 5,000 90,750 Tenet Healthcare Corp. + 2,250 25,941 UnitedHealth Group Inc. 11,500 1,096,870 Wyeth 19,200 809,856 ------------ 17,615,291 ------------ INDUSTRIALS - 12.28% 3M Co. 10,400 891,176 Automatic Data Processing, Inc. 4,900 220,255 Boeing Co. (The) 11,700 683,982 Caterpillar Inc. 2,900 265,176 Cendant Corp. 14,000 287,560 CSX Corp. 1,000 41,650 Emerson Electric Co. 3,500 227,255 FedEx Corp. 4,500 422,775 General Dynamics Corp. 3,100 331,855 General Electric Co. 122,700 4,424,562 Heartland Express, Inc. 40,435 774,330 Honeywell International Inc. 12,500 465,125 Illinois Tool Works Inc. 2,400 214,872 IMS Health Inc. 1,400 34,146 Lockheed Martin Corp. 4,000 244,240 Masco Corp. 4,200 145,614 Northrop Grumman Corp. 5,000 269,900 Paychex, Inc. 4,200 137,844 PHH Corp. + 700 15,309 Shuffle Master, Inc. + 48,300 1,398,768 Southwest Airlines Co. 6,450 91,848 Transocean Inc. + 2,500 128,650 Tyco International Ltd. 33,397 1,128,819 Union Pacific Corp. 2,000 139,400 United Parcel Service, Inc., Class B 16,300 1,185,662 United Technologies Corp. 7,200 731,952 USF Corp. 65,100 3,141,726 Waste Management, Inc. 4,200 121,170 ------------ 18,165,621 ------------ INFORMATION TECHNOLOGY - 14.42% Adobe Systems Inc. 1,100 73,887 Agere Systems Inc., Class A + 240 343 Altera Corp. + 3,400 67,252 Analog Devices, Inc. 2,700 97,578 Apple Computer, Inc. + 3,000 125,010 Applied Materials, Inc. + 7,800 126,750 CACI International Inc., Class A + 9,800 541,254 Cisco Systems, Inc. + 96,400 1,724,596 Corning Inc. + 8,000 89,040 Dell Inc. + 29,700 1,141,074 eBay Inc. + 19,000 707,940 Electronic Arts Inc. + 2,000 103,560 Electronic Data Systems Corp. 1,000 20,670 EMC Corp. + 271,848 3,349,167 Fairchild Semiconductor International, Inc. + 201,600 3,090,528 First Data Corp. 7,324 287,907 Freescale Semiconductor Inc., Class B + 1,512 26,082 Hewlett-Packard Co. 27,900 612,126 Intel Corp. 65,500 1,521,565 International Business Machines Corp. 21,000 1,918,980 Linear Technology Corp. 2,500 95,775 Maxim Integrated Products, Inc. 2,300 94,001 Micron Technology, Inc. + 2,500 25,850 Microsoft Corp 142,100 3,434,557 Motorola, Inc. 25,700 384,729 Oracle Corp. + 26,100 325,728 QUALCOMM Inc. 17,000 623,050 Sanmina-SCI Corp. + 5,500 28,710 Siebel Systems, Inc. + 2,500 22,825 Solectron Corp. + 3,000 10,410 Sun Microsystems, Inc. + 7,500 30,300 Symantec Corp. + 10,000 213,300 Texas Instruments Inc. 4,900 124,901 Yahoo! Inc. + 8,800 298,320 ------------ 21,337,765 ------------ MATERIALS - 6.67% Air Products & Chemicals, Inc. 1,000 63,290 Alcoa Inc. 4,200 127,638 Dow Chemical Co. (The) 5,400 269,190 E.I. duPont de Nemours & Co. 3,800 194,712 Georgia-Pacific Corp. 2,000 70,980 International Paper Co. 4,500 165,555 Joy Global Inc. 93,000 3,260,580 Neenah Paper, Inc. + 209 7,027 Packaging Corp. of America 70,700 1,717,303 Peabody Energy Corp. 34,400 1,594,784 Praxair, Inc. 3,000 143,580 Rohm & Haas Co. 1,000 48,000 Steel Dynamics, Inc. 61,900 2,132,455 Weyerhaeuser Co. 1,000 68,500 ------------ 9,863,594 ------------ REAL ESTATE INVESTMENT TRUSTS - 0.16% Simon Property Group, Inc. 4,000 242,320 ------------ TELECOMMUNICATION SERVICES - 2.38% ALLTEL Corp. 4,000 219,400 AT&T Corp. 9,320 174,750 BellSouth Corp. 14,000 368,060 Lucent Technologies Inc. + 10,700 29,425 Nextel Communications, Inc., Class A + 15,500 440,510 SBC Communications Inc. 23,100 547,239 Sprint Corp. 18,800 427,700 Verizon Communications Inc. 37,100 1,317,050 ------------ 3,524,134 ------------ UTILITIES - 2.26% American Electric Power Co., Inc. 2,700 91,962 Dominion Resources, Inc. 7,100 528,453 Duke Energy Corp. 13,300 372,533 Edison International 4,000 138,880 Exelon Corp. 11,000 504,790 FirstEnergy Corp. 5,000 209,750 FPL Group, Inc. 7,000 281,050 Progress Energy, Inc. 3,500 146,825 Public Service Enterprise Group Inc. 1,000 54,390 Scottish Power plc, ADR 4,000 124,800 Southern Co. (The) 11,900 378,777 TXU Corp. 4,700 374,261 Xcel Energy, Inc. 8,200 140,876 ------------ 3,347,347 ------------ TOTAL EQUITY SECURITIES (cost - $121,128,370) 147,129,065 ============ PRINCIPAL AMOUNT (000'S) ------- SHORT-TERM INVESTMENTS - 7.79% REPURCHASE AGREEMENTS - 7.79% Bear, Stearns & Co. Inc. (Agreement dated 03/31/05 to be repurchased at $861,193), 2.63%, 04/01/05, collateralized $ 861 $ 861,130 by $886,682 in U.S. Treasury Bonds Bear, Stearns & Co. Inc. (Agreement dated 03/31/05 to be repurchased at $8,464,847), 2.88%*, 04/01/05, collateralized by $8,710,540 in U.S. Treasury Bonds** 8,464 8,464,171 Bear, Stearns & Co. Inc. (Agreement dated 03/31/05 to be repurchased at $2,210,177), 1.44%*, 04/01/05, collateralized by $2,275,104 in U.S. Treasury Bonds** 2,210 2,210,089 ------------ TOTAL SHORT-TERM INVESTMENTS (cost - $11,535,390) 11,535,390 ------------ TOTAL INVESTMENTS - 107.23% (cost - $132,663,760) 158,664,455 ------------ LIABILITIES IN EXCESS OF OTHER ASSETS - (7.23)% (10,704,368) ------------ NET ASSETS - 100.00% $147,960,087 ============ ---------- + Non-income producing security. * Stated interest rate, before rebate earned by borrower of securities on loan. ** Represents investment purchased with cash collateral received for securities on loan. ADR American Depositary Receipts. At March 31, 2005, the Fund held no securities valued in good faith by the Board of Directors. Federal Income Tax Cost - At March 31, 2005, 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 unrealized appreciation from investments were $132,663,760, $32,298,513, $(6,297,818) and $26,000,695, respectively. Securities valuation policies and other investment related disclosures are hereby incorporated by reference to the Fund's annual report previously filed with the Securities and Exchange Commission on the Form N-CSR. Other information regarding the Fund is available in the Fund's most recent annual report. This information is also 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: May 20, 2005 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: May 20, 2005 /s/ Vincent L. Pereira -------------------------------- Name: Vincent L. Pereira Title: Principal Financial Officer Date: May 20, 2005