N-Q 1 t302189.txt FOR THE PERIOD ENDED 9/30/05 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) Jodi Levine 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: July 1, 2005 through September 30, 2005 ------------------------------------------ -------------------------------------------------------------------------------- ITEM 1: SCHEDULE OF INVESTMENTS
-------------------------------------------------------------------------------------------- CORNERSTONE STRATEGIC VALUE FUND, INC. SCHEDULE OF INVESTMENTS - SEPTEMBER 30, 2005 (UNAUDITED) -------------------------------------------------------------------------------------------- NO. OF DESCRIPTION SHARES VALUE -------------------------------------------------------------------------------------------- EQUITY SECURITIES - 99.45% CLOSED-END DOMESTIC FUNDS - 2.17% Adams Express Co. 49,500 $ 649,440 General American Investors Company, Inc. (a) 3,000 104,610 Tri-Continental Corp. 77,000 1,406,020 Zweig Fund, Inc. (The) (a) 176,600 939,512 ------------- 3,099,582 ------------- CONSUMER DISCRETIONARY - 11.34% Acco Brands Corporation + 235 6,632 Bed Bath & Beyond Inc. + (a) 4,200 168,756 Best Buy Co., Inc. (a) 7,125 310,151 Carnival Corp. (a) 11,800 589,764 Cendant Corp. 19,000 392,160 Circuit City Stores, Inc. (a) 1,000 17,160 Clear Channel Communications, Inc. 8,800 289,432 Comcast Corp., Class A + 31,537 926,557 Costco Wholesale Corp. 6,500 280,085 CVS Corp. 5,000 145,050 Eastman Kodak Co. 1,400 34,062 Federated Department Stores, Inc. 2,526 168,914 Ford Motor Company 26,300 259,318 Fortune Brands, Inc. (a) 1,000 81,330 Furniture Brands International, Inc. 29,200 526,476 Gannett Co., Inc. 2,000 137,660 Gap, Inc. (The) (a) 12,200 212,646 General Motors Corp. (a) 6,500 198,965 Gildan Activewear Inc., Class A + (a) 35,700 1,364,811 Goodyear Tire & Rubber Company (The) + 4,500 70,155 Harley-Davidson, Inc. (a) 4,400 213,136 Hilton Hotels Corp. 3,200 71,424 Home Depot, Inc. (The) 30,600 1,167,084 J.C. Penney Company, Inc. 4,500 213,390 Kohl's Corp. + (a) 5,000 250,900 Lowe's Companies, Inc. 11,200 721,280 Marriott International, Inc., Class A 2,100 132,300 Mattel, Inc. (a) 5,500 91,740 McDonald's Corp. (a) 17,600 589,424 Monsanto Co. 580 36,395 News Corporation, Class A 30,000 467,700 NIKE, Inc., Class B 2,300 187,864 Omnicom Group Inc. 4,100 342,883 Reebok International Ltd. 1,500 84,855 Rockwell Automation, Inc. 2,500 132,250 Sears Holdings Corp. + 503 62,583 -2- Staples, Inc. 10,800 230,256 Starbucks Corp. + 5,400 270,540 Target Corporation 11,800 612,774 Time Warner Inc. 64,000 1,159,040 TJX Companies, Inc. (The) 7,000 143,360 United Natural Foods, Inc. + 34,000 1,202,240 Viacom Inc., non-voting Class B 23,900 788,939 Walt Disney Co. (The) 29,200 704,596 Yum! Brands, Inc. 3,000 145,230 ------------- 16,202,267 ------------- CONSUMER STAPLES - 10.39% Altria Group, Inc. 29,300 2,159,703 Anheuser-Busch Companies, Inc. 16,700 718,768 Archer Daniels Midland Company 5,460 134,644 Campbell Soup Company 2,000 59,500 Coca-Cola Co. (The) 32,500 1,403,675 Coca-Cola Enterprises Inc. 6,500 126,750 Colgate-Palmolive Company 11,100 585,969 ConAgra Foods, Inc. (a) 4,400 108,900 General Mills, Inc. 9,500 457,900 Gillette Company (The) 16,100 937,020 H.J. Heinz Co. 6,600 241,164 Kimberly-Clark Corporation (a) 6,900 410,757 Kroger Co. (The) + 4,800 98,832 Pepsi Bottling Group, Inc. (The) 4,000 114,200 PepsiCo, Inc. 24,800 1,406,408 Procter & Gamble Co. (The) 37,600 2,235,696 Sara Lee Corp. 11,500 217,925 Sysco Corp. 5,800 181,946 Walgreen Co. (a) 14,300 621,335 Wal-Mart Stores, Inc. 59,800 2,620,436 ------------- 14,841,528 ------------- ENERGY - 10.04% Anadarko Petroleum Corp. (a) 5,900 564,925 Baker Hughes Inc. 8,100 483,408 CenterPoint Energy, Inc. 3,900 57,993 ChevronTexaco Corp. 27,532 1,782,146 ConocoPhillips 17,974 1,256,562 Exxon Mobil Corp. 84,000 5,337,360 FMC Technologies, Inc. + (a) 35,600 1,499,116 Marathon Oil Corp. 7,500 516,975 Occidental Petroleum Corp. 8,000 683,440 Reliant Energy Inc. + 1,104 17,046 Schlumberger Ltd. 11,000 928,180 Western Gas Resources, Inc. (a) 23,800 1,219,274 ------------- 14,346,425 ------------- -3- FINANCIALS - 18.54% Aetna Inc. 6,000 516,840 Affiliated Managers Group, Inc. + 3,300 238,986 AFLAC Inc. 7,000 317,100 Allstate Corp. (The) 9,300 514,197 American Express Company 15,600 896,064 American International Group, Inc. 37,531 2,325,421 AONCorporation 4,900 157,192 Bank of America Corp. 55,616 2,341,434 Bank of New York Co., Inc. (The) 8,400 247,044 Charles Schwab Corporation (The) 12,000 173,160 Citigroup Inc. 74,300 3,382,136 Fannie Mae 13,000 582,660 Fifth Third Bancorp 9,000 330,570 First Marblehead Corp. (The) (a) 18,700 474,980 Franklin Resources, Inc. (a) 3,700 310,652 Freddie Mac 14,500 818,670 Goldman Sachs Group, Inc. (The) 7,300 887,534 Hartford Financial Services Group, Inc. (The) 6,000 463,020 JPMorgan Chase & Co. 48,332 1,639,905 Lehman Brothers Holding Inc. 3,600 419,328 Manulife Financial Corp. (a) 2,963 157,987 Marsh & McLennan Companies, Inc. 10,100 306,939 MBNA Corp. (a) 20,600 507,584 Merrill Lynch & Co., Inc. 10,700 656,445 MetLife, Inc. 10,200 508,266 Morgan Stanley 15,500 836,070 National City Corp. (a) 9,700 324,368 Northern Trust Corp. (a) 3,500 176,925 Piper Jaffray Companies, Inc. + 104 3,105 PNC Financial Services Group, Inc. 4,100 237,882 Prudential Financial, Inc. 8,200 553,992 St. Paul Travelers Companies, Inc. (The) 9,476 425,188 State Street Corp. 3,500 171,220 SunTrust Banks, Inc. 7,600 527,820 U.S. Bancorp (a) 28,401 797,500 UnumProvident Corp. 8,100 166,050 Wachovia Corp. 22,600 1,075,534 Washington Mutual, Inc. 15,550 609,871 Wells Fargo & Co. 24,200 1,417,394 ------------- 26,497,033 ------------- HEALTHCARE - 11.56% Abbott Laboratories 21,000 890,400 Amgen Inc. + (a) 18,900 1,505,763 Becton, Dickinson & Co. (a) 3,900 204,477 Biogen Idec Inc. + 3,000 118,440 Boston Scientific Corp. + 12,300 287,451 Bristol-Myers Squibb Co. 30,500 733,830 Cardinal Health, Inc. (a) 5,450 345,748 Caremark Rx, Inc. + 6,500 324,545 Cooper Companies, Inc. (The) 7,200 551,592 Edwards Lifesciences Corp. + 15,500 688,355 Eli Lilly & Co. 14,500 776,040 Guidant Corp. 6,400 440,896 -4- HCA, Inc. 3,500 167,720 Hospira, Inc. + 700 28,679 Johnson & Johnson 40,900 2,588,152 McKesson Corp. 2,300 109,135 Medco Health Solutions, Inc. + 1,687 92,498 Medtronic, Inc. (a) 14,500 777,490 Merck & Co. Inc. 30,500 829,905 Pfizer Inc. (a) 99,660 2,488,510 Schering-Plough Corp. (a) 17,000 357,850 Tenet Healthcare Corp. + 2,250 25,268 United Health Group Inc. 23,000 1,292,600 Wyeth 19,200 888,384 ------------- 16,513,728 ------------- INDUSTRIALS - 10.56% 3M Co. 10,400 762,944 Automatic Data Processing, Inc. 4,900 210,896 Boeing Company (The) 11,700 795,015 Caterpillar Inc. 11,800 693,250 CSX Corp. 1,000 46,480 Emerson Electric Co. 8,500 610,300 FedEx Corp. (a) 4,500 392,085 General Dynamics Corp. (a) 3,100 370,605 General Electric Co. 141,700 4,771,039 Heartland Express, Inc. 10,435 212,248 Honeywell International Inc. 12,500 468,750 Illinois Tool Works Inc. 2,400 197,592 IMS Health Inc. 1,400 35,238 Lockheed Martin Corp. 4,000 244,160 Masco Corp. (a) 4,200 128,856 Northrop Grumman Corp. 5,000 271,750 Paychex, Inc. (a) 4,200 155,736 PHH Corp. + 700 19,222 Shuffle Master, Inc. + (a) 24,300 642,249 Southwest Airlines Co. 6,450 95,782 Transocean Inc. + 2,500 153,275 Tyco International Ltd. 33,397 930,106 Union Pacific Corp. 2,000 143,400 United Parcel Service, Inc., Class B 16,300 1,126,819 United Technologies Corp. 14,400 746,496 Waste Management, Inc. 8,200 234,602 Yellow Roadway Corp. + (a) 15,191 629,211 ------------- 15,088,106 ------------- INFORMATION TECHNOLOGY - 14.65% Adobe Systems Inc. + 2,200 65,670 Altera Corp. + 3,400 64,974 Analog Devices, Inc. (a) 2,700 100,278 Apple Computer, Inc. + 3,000 160,830 Applied Materials, Inc. 23,800 403,648 Cisco Systems, Inc. + 96,400 1,728,452 Corning Inc. + 17,000 328,610 -5- Dell Inc. + 29,700 1,015,740 eBay, Inc. + 19,000 782,800 Electronic Arts Inc. + 2,000 113,780 Electronic Data Systems Corp. 10,000 224,400 EMC Corp. + (a) 212,648 2,751,665 Fairchild Semiconductor International, Inc. + 60,300 896,058 First Data Corporation (a) 7,324 292,960 Freescale Semiconductor Inc., Class B + 1,512 35,653 Hewlett-Packard Co. 27,900 814,680 Intel Corp. (a) 82,500 2,033,625 International Business Machines Corp. 21,000 1,684,620 Linear Technology Corp. 2,500 93,975 Lucent Technologies Inc. + (a) 10,700 34,775 Maxim Integrated Products, Inc. 2,300 98,095 Micron Technology, Inc. + (a) 2,500 33,250 Microsoft Corp. (a) 142,100 3,656,233 Motorola, Inc. 34,700 766,523 Oracle Corp. + 46,100 571,179 QUALCOMM Inc. 17,000 760,750 Sanmina-SCI Corp. + (a) 5,500 23,595 Siebel Systems, Inc. 2,500 25,825 Solectron Corp. + (a) 3,000 11,730 Sun Microsystems, Inc. + 7,500 29,400 Symantec Corp. + 10,000 226,600 Texas Instruments Inc. 23,900 810,210 Yahoo! Inc. + 8,800 297,792 ------------- 20,938,375 ------------- MATERIALS - 4.30% Air Products & Chemicals, Inc. 1,000 55,140 Alcoa Inc. 14,200 346,764 Dow Chemical Co. (The) 15,400 641,718 E.I. du Pont de Nemours & Co. (a) 14,800 579,716 Georgia-Pacific Corporation 2,000 68,120 International Paper Co. 4,500 134,100 Joy Global Inc. 11,900 600,474 Neenah Paper, Inc. 209 6,124 Packaging Corporation of America 34,700 673,527 Peabody Energy Corp. 27,400 2,311,190 Praxair, Inc. (a) 3,000 143,790 Rohm & Haas Co. (a) 1,000 41,130 Steel Dynamics, Inc. 13,900 472,044 Weyerhaeuser Co. 1,000 68,750 ------------- 6,142,587 ------------- RETAIL - 0.21% Simon Property Group, Inc. 4,000 296,480 ------------- TELECOMMUNICATION SERVICES - 2.91% ALLTEL Corporation 4,000 260,440 AT&T Corp. 9,320 184,536 BellSouth Corporation (a) 23,000 604,900 SBC Communications Inc. 41,100 985,167 Sprint Corp. 38,446 914,246 Verizon Communications Inc. 37,100 1,212,799 ------------- 4,162,088 ------------- -6- UTILITIES - 2.78% American Electric Power Co., Inc. 2,700 107,190 Dominion Resources, Inc. (a) 7,100 611,594 Duke Energy Corp. (a) 13,300 387,961 Edison International (a) 4,000 189,120 Exelon Corp. 11,000 587,840 FirstEnergy Corp. 5,000 260,600 FPL Group, Inc. 7,000 333,200 Progress Energy, Inc. 3,500 156,625 Public Service Enterprises Group Inc. 1,000 64,360 Scottish Power plc, ADR 4,000 160,960 Southern Co. (The) (a) 11,900 425,544 TXU Corp. 4,700 530,536 Xcel Energy, Inc. 8,200 160,802 ------------- 3,976,332 ------------- TOTAL EQUITY SECURITIES (cost - $124,989,030) 142,104,531 ============= PRINCIPAL AMOUNT (000'S) ----------------- SHORT-TERM INVESTMENTS - 4.35% REPURCHASE AGREEMENTS - 4.35% Bear, Stearns & Co. Inc. (Agreement dated 09/30/05 to be repurchased at $4,513,157), 3.875%*, 10/03/05, collateralized by $4,644,354 in U.S. Treasury STRIPS** $ 4,512 4,511,700 Bear, Stearns & Co. Inc. (Agreement dated 09/30/05 to be repurchased at $896,151), 1.9375%*, 10/03/05, collateralized by $924,020 in U.S. Treasury STRIPS** 896 896,006 Bear, Stearns & Co. Inc. (Agreement dated 09/30/05 to be repurchased at $810,485), 3.25%, 10/03/05, collateralized by $834,286 in U.S. Treasury STRIPS 810 810,265 ------------- TOTAL SHORT-TERM INVESTMENTS (cost - $6,217,971) 6,217,971 ------------- TOTAL INVESTMENTS - 103.80% (cost - $131,207,001) 148,322,502 ------------- LIABILITIES IN EXCESS OF OTHER ASSETS - (3.80)% (5,425,693) ------------- NET ASSETS - 100.00% $ 142,896,809 ============= -7- ------------ (a) Security or portion thereof is out on loan. + 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.
Federal Income Tax Cost - At September 30, 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 $131,207,001, $24,738,010, $(7,622,509) and $17,115,501, 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. -8- 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. -------------------------------------------------------------------------------- -9- 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 29, 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: November 29, 2005 /s/ Jodi B. Levine -------------------------------- Name: Jodi B. Levine Title: Principal Financial Officer (Treasurer) Date: November 29, 2005 -------------------------------------------------------------------------------- -10-