-----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, HDE8drJMUm5UT6T3uD2jAuRGr7c0tHQxRQrm74JtXaZi8hrcJ0ors56GBleP7ZM3 RDK84c2CWvQgkP1TpL221A== 0000909012-07-000865.txt : 20070525 0000909012-07-000865.hdr.sgml : 20070525 20070525130423 ACCESSION NUMBER: 0000909012-07-000865 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070331 FILED AS OF DATE: 20070525 DATE AS OF CHANGE: 20070525 EFFECTIVENESS DATE: 20070525 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: 07879711 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 t303447.txt 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, 2007 ------------------- Date of reporting period: March 31, 2007 ------------------- ITEM 1: SCHEDULE OF INVESTMENTS
================================================================================ CORNERSTONE STRATEGIC VALUE FUND, INC. SCHEDULE OF INVESTMENTS -- MARCH 31, 2007 (UNAUDITED) ================================================================================ NO. OF DESCRIPTION SHARES VALUE - -------------------------------------------------------------------------------- EQUITY SECURITIES - 99.40% CLOSED-END FUNDS - 1.16% Adams Express Company 49,500 $ 693,990 General American Investors Company 3,000 110,520 Liberty All-Star Equity Fund ^ 67,300 572,050 Liberty All-Star Growth Fund, Inc. 26,300 144,124 ----------- 1,520,684 ----------- CONSUMER DISCRETIONARY - 10.79% Amazon.com, Inc. * 5,500 218,845 Bed Bath & Beyond Inc. * 4,200 168,714 Best Buy Co., Inc. 3,625 176,610 Carnival Corporation 11,800 552,948 Clear Channel Communications, Inc. 3,300 115,632 Coach, Inc. * 3,500 175,175 Comcast Corporation, Class A * 28,555 741,002 D.R. Horton, Inc. 3,000 66,000 Federated Department Stores, Inc. 11,052 497,893 Fortune Brands, Inc. 3,500 275,870 Gannett Co., Inc. 3,500 197,015 Gap, Inc. (The) 12,200 209,962 Goodyear Tire & Rubber Company (The) * 4,500 140,355 Harley-Davidson, Inc. 4,400 258,500 Hilton Hotels Corporation 6,200 222,952 Home Depot, Inc. (The) 23,100 848,694 J.C. Penney Company, Inc. ^ 4,500 369,720 Johnson Controls, Inc. 2,500 236,550 Kohl's Corporation * 2,500 191,525 Lowe's Companies, Inc. ^ 22,400 705,376 Marriott International, Inc., Class A ^ 4,200 205,632 Mattel, Inc. 5,500 151,635 McDonald's Corporation 15,100 680,255 News Corporation, Class A 23,000 531,760 NIKE, Inc., Class B 7,300 775,698 Omnicom Group Inc. 6,600 675,708 Sears Holdings Corporation * 503 90,620 Staples, Inc. 10,800 279,072 Starbucks Corporation * 5,800 181,888 Target Corporation 11,800 699,268 Time Warner Inc. 76,000 1,498,720 TJX Companies, Inc. (The) 3,000 80,880 Toyota Motor Corporation ^ ADR 2,500 320,400 Viacom Inc., Class B * 9,450 388,490 Walt Disney Company (The) 27,200 936,496 Wyndham Worldwide Corp * 3,100 105,865 Yum! Brands, Inc. 3,000 173,280 ----------- 14,145,005 ----------- CONSUMER STAPLES - 10.00% Altria Group, Inc. 22,300 1,958,163 Anheuser-Busch Companies, Inc. 6,200 312,852 -1- NO. OF DESCRIPTION SHARES VALUE - -------------------------------------------------------------------------------- Archer-Daniels-Midland Company ^ 9,460 347,182 Campbell Soup Company ^ 2,000 77,900 Coca-Cola Company (The) 27,000 1,296,000 Colgate-Palmolive Company 3,400 227,086 ConAgra Foods, Inc. 6,900 171,879 Costco Wholesale Corporation 6,500 349,960 CVS Corporation 29,030 991,084 General Mills, Inc. 12,000 698,640 H.J. Heinz Company 4,000 188,480 Kimberly-Clark Corporation 5,500 376,695 Kroger Co. (The) ^ 13,800 389,850 PepsiCo, Inc. 21,100 1,341,116 Procter & Gamble Company (The) 41,297 2,608,319 Sara Lee Corporation 4,500 76,140 Sysco Corporation 9,800 331,534 Walgreen Co. 14,300 656,227 Wal-Mart Stores, Inc. 15,100 708,945 ----------- 13,108,052 ----------- ENERGY - 9.79% Anadarko Petroleum Corp. ^ 2,600 111,748 Baker Hughes Incorporated 10,600 700,978 BJ Services Company 3,500 97,650 Chevron Corporation ^ 24,532 1,814,387 ConocoPhillips ^ 14,474 989,298 Devon Energy Corporation 5,000 346,100 Exxon Mobil Corporation 73,500 5,545,572 Halliburton Company 6,700 212,658 Marathon Oil Corp. 7,500 741,225 Occidental Petroleum Corporation 16,000 788,960 Schlumberger Limited 17,500 1,209,250 XTO Energy, Inc. 5,000 274,050 ----------- 12,831,876 ----------- FINANCIALS - 20.60% AFLAC Incorporated 7,000 329,420 Allstate Corporation (The) 9,300 558,558 American Express Company 19,600 1,105,440 American International Group, Inc. 21,331 1,433,870 Aon Corporation 4,900 186,004 Bank of America Corporation 59,138 3,017,221 Bank of New York Company, Inc. (The) 11,400 462,270 BB&T Corporation 4,000 164,080 Bear Stearns Companies, Inc. (The) 2,500 375,875 CB Richard Ellis Group, Inc.- Class A * 6,500 222,170 Charles Schwab Corporation (The) 6,000 109,740 Chubb Corporation (The) 4,100 211,847 Citigroup Inc. 54,300 2,787,762 Fannie Mae 6,500 354,770 Franklin Resources, Inc. 3,700 447,071 Freddie Mac 2,900 172,521 Goldman Sachs Group, Inc. (The) 7,300 1,508,399 Hartford Financial Services Group, Inc. (The) 6,000 573,480 JPMorgan Chase & Co. 36,632 1,772,256 Lehman Brothers Holdings Inc. 7,200 504,504 -2- NO. OF DESCRIPTION SHARES VALUE - -------------------------------------------------------------------------------- Marsh & McLennan Companies, Inc. ^ 6,000 175,740 Merrill Lynch & Co., Inc. 7,200 588,024 Metlife, Inc. 15,200 959,880 Morgan Stanley 15,500 1,220,780 National City Corporation 12,700 473,075 PNC Financial Services Group, Inc. 4,600 331,062 Prudential Financial, Inc. 10,700 965,782 State Street Corporation ^ 3,500 226,625 SunTrust Banks, Inc. 7,600 631,104 Travelers Companies, Inc. (The) 9,476 490,573 U.S. Bancorp 28,401 993,183 UnumProvident Corporation 8,100 186,543 Wachovia Corporation 19,600 1,078,980 Washington Mutual, Inc. 11,550 466,389 Wells Fargo & Company 48,400 1,666,412 Western Union Company 11,324 248,562 ----------- 26,999,972 ----------- HEALTHCARE - 11.47% Abbott Laboratories ^ 28,000 1,562,400 Aetna Inc. 6,000 262,740 Amgen Inc. * 22,400 1,251,712 Applera Corporation 8,000 236,560 Baxter International Inc. 5,000 263,350 Becton, Dickinson and Company 6,900 530,541 Biogen Idec Inc. * 5,500 244,090 Boston Scientific Corporation ^ * 3,551 51,632 Bristol-Myers Squibb Company ^ 18,500 513,560 Cardinal Health, Inc. ^ 2,950 215,202 Eli Lilly and Company 4,700 252,437 Gilead Sciences, Inc. * 3,500 267,750 IMS Health Incorporated 7,400 219,484 Johnson & Johnson ^ 40,900 2,464,634 McKesson Corporation 5,300 310,262 Medco Health Solutions, Inc. * 6,687 485,008 Medtronic, Inc. ^ 19,000 932,140 Merck & Co. Inc. 17,500 772,975 Pfizer Inc. ^ 36,060 910,876 Schering-Plough Corporation ^ 17,500 446,425 UnitedHealth Group Incorporated ^ 17,000 900,490 WellPoint Inc. ^ * 11,500 932,650 Wyeth 20,200 1,010,606 ----------- 15,037,524 ----------- INDUSTRIALS - 10.65% 3M Co. 9,400 718,442 Boeing Company (The) 9,200 817,972 Burlington Northern Santa Fe Corporation 2,900 233,247 Caterpillar Inc. 9,300 623,379 CSX Corporation 10,000 400,500 Danaher Corporation ^ 3,500 250,075 Emerson Electric Co. 12,000 517,080 FedEx Corp. 4,500 483,435 General Dynamics Corporation ^ 6,200 473,680 General Electric Company 100,900 3,567,824 -3- NO. OF DESCRIPTION SHARES VALUE - -------------------------------------------------------------------------------- Honeywell International Inc. 12,500 575,750 Illinois Tool Works Inc. 13,300 686,280 Ingersoll-Rand Company Ltd. Class A 7,000 303,590 Lockheed Martin Corporation 4,000 388,080 Masco Corporation 4,200 115,080 Norfolk Southern Corporation 5,500 278,300 Northrop Grumman Corporation 5,000 371,100 Rockwell Automation, Inc. ^ 2,500 149,675 Southwest Airlines Co. 5,700 83,790 Textron Inc. 4,500 404,100 Tyco International Ltd. 10,397 328,025 Union Pacific Corporation 2,000 203,100 United Parcel Service, Inc., Class B 9,600 672,960 United Technologies Corporation 11,000 715,000 Waste Management, Inc. 17,300 595,293 ----------- 13,955,757 ----------- INFORMATION TECHNOLOGY - 14.63% Adobe Systems Incorporated * 4,200 175,140 Agilent Technologies Inc. * 8,000 269,520 Analog Devices, Inc. 3,500 120,715 Apple Computer, Inc. * 3,000 278,730 Applied Materials, Inc. 33,800 619,216 Automatic Data Processing, Inc. 15,400 745,360 Cisco Systems, Inc. * 82,900 2,116,437 Corning Incorporated * 8,000 181,920 Dell Inc. * 4,700 109,087 eBay Inc. ^ * 8,500 281,775 Electronic Arts Inc. * 5,000 251,800 Electronic Data Systems Corporation 5,000 138,400 EMC Corporation * 183,648 2,543,525 First Data Corporation 15,824 425,666 Google Inc. * 2,500 1,145,400 Hewlett-Packard Company 19,900 798,786 Intel Corporation 69,500 1,329,535 International Business Machines Corporation 12,600 1,187,676 Micron Technology, Inc. * 11,500 138,920 Microsoft Corporation 109,200 3,043,404 Motorola, Inc. 22,700 401,109 Oracle Corporation ^ * 44,272 802,651 QUALCOMM Inc. 17,000 725,220 Sun Microsystems, Inc. * 7,500 45,075 Texas Instruments Incorporated 23,900 719,390 Yahoo! Inc. * 18,800 588,252 ----------- 19,182,709 ----------- MATERIALS - 2.59% Air Products & Chemicals, Inc. 1,000 73,960 Alcoa Inc. 16,900 572,910 Dow Chemical Company (The) 15,400 706,244 E. I. du Pont de Nemours and Company 14,800 731,564 International Paper Company ^ 10,500 382,200 Monsanto Company ^ 10,160 558,394 Newmont Mining Corporation 3,000 125,970 Praxair, Inc. 3,000 188,880 -4- NO. OF DESCRIPTION SHARES VALUE - -------------------------------------------------------------------------------- Rohm and Hass Company ^ 1,000 51,720 ----------- 3,391,842 ----------- REAL ESTATE INVESTMENT TRUST - 0.55% Simon Property Group, Inc. 6,500 723,125 ----------- 723,125 ----------- TELECOMMUNICATION SERVICES - 3.46% ALLTEL Corporation 4,000 248,000 AT&T Inc. 56,539 2,229,333 Sprint Nextel Corporation 25,946 491,936 Verizon Communications Inc. 41,300 1,566,096 ----------- 4,535,365 ----------- UTILITIES - 3.71% American Electric Power Company, Inc. 8,000 390,000 CenterPoint Energy, Inc. ^ 10,000 179,400 Dominion Resources, Inc. 4,600 408,342 Duke Energy Corporation 15,800 320,582 Edison International ^ 6,500 319,345 Exelon Corporation 6,000 412,260 FirstEnergy Corp. 5,000 331,200 FPL Group, Inc. ^ 4,000 244,680 PG&E Corporation 9,000 434,430 Public Service Enterprise Group Incorporated 6,000 498,240 Southern Company (The) 11,900 436,135 TXU Corp. 12,400 794,840 Williams Companies, Inc. (The) 3,500 99,610 ----------- 4,869,064 ----------- TOTAL EQUITY SECURITIES (cost - $101,052,382) 130,300,975 ----------- PRINCIPAL AMOUNT 000'S ------------ SHORT-TERM INVESTMENTS - 3.81% REPURCHASE AGREEMENTS - 3.81% Bear, Stearns & Co. Inc. + ++ (Agreements dated 3/30/2007 to be repurchased at $2,724,914, 2.7187%, 4/2/2007, collateralized by $2,790,616 in United States Treasury Notes) $ 2,724 $2,724,297 Bear, Stearns & Co. Inc. + ++ (Agreements dated 3/30/2007 to be repurchased at $1,454,909, 5.4375%, 4/2/2007, collateralized by $1,488,328 in United States Treasury Notes) 1,454 1,454,250 Bear, Stearns & Co. Inc. (Agreements dated 3/30/2007 to be repurchased at $811,255, 5.1000%, 4/2/2007, collateralized by $833,739 in United States Treasury Notes) 811 810,910 ------------ 4,989,457 ------------ TOTAL SHORT-TERM INVESTMENTS (cost - $4,989,457) 4,989,457 ------------ TOTAL INVESTMENTS - 103.21% (cost - $106,041,839) 135,290,432 ------------ LIABILITIES IN EXCESS OF OTHER ASSETS - (3.21)% (4,210,021) ------------ NET ASSETS - 100.00% $131,080,411 ============
-5- ADR American Depositary Receipt * Non-income producing security. + Stated interest rate, before rebate earned by borrower of securities on loan. ++ Represents investment purchased with collateral received for securities on loan. ^ Security or a portion thereof is out on loan. Federal Income Tax Cost: At March 31, 2007, 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 $106,097,773, $30,325,569, ($1,132,910), $29,192,659, 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 on March 9, 2007 with a file number 811-05150. Other information regarding the Fund is available in the Fund's most recent annual report filed with the Securities and Exchange Commission on Form N-CSR on March 9, 2007, file number 811-05150. 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. -6- 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 25, 2007 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 25, 2007 /s/ Jodi B. Levine -------------------------------- Name: Jodi B. Levine Title: Principal Financial Officer Date: May 25, 2007 -7- EX-99.CERT 2 cert99.txt EXHIBIT 99.CERT I, Ralph W. Bradshaw, 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) and internal control over financial reporting (as defined in Rule 30a-3(d) 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) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. (c) 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 (d) 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: May 25, 2007 /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) and internal control over financial reporting (as defined in Rule 30a-3(d) 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) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. (c) 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 (d) 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: May 25, 2007 /s/ Jodi B. Levine ----------------------------------------------- Name: Jodi B. Levine Title: Principal Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----