-----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, TDAC558JnPKL1kMTvm+EYbd3JMAlPn+lUcsPx0tRCfqvkw/J+0YeyEWDbSvau4cz PCqU6xrSDERGURBYDnInGg== 0000909012-07-001466.txt : 20071126 0000909012-07-001466.hdr.sgml : 20071126 20071126161029 ACCESSION NUMBER: 0000909012-07-001466 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070930 FILED AS OF DATE: 20071126 DATE AS OF CHANGE: 20071126 EFFECTIVENESS DATE: 20071126 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: 071266420 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 t303801.txt CLM 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) Kayadti Madison 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: September 30, 2007 ------------------- ITEM 1: SCHEDULE OF INVESTMENTS
- ---------------------------------------------------------------------------------------- CORNERSTONE STRATEGIC VALUE FUND, INC. SCHEDULE OF INVESTMENTS -- SEPTEMBER 30, 2007 (UNAUDITED) - ---------------------------------------------------------------------------------------- NO. OF DESCRIPTION SHARES VALUE - ----------------------------------------------------------------------------------------- EQUITY SECURITIES - 99.35% CLOSED-END FUNDS - 1.28% Adams Express Company 49,500 $ 740,025 General American Investors Company ^ 3,000 122,280 Liberty All-Star Equity Fund 67,300 553,206 Liberty All-Star Growth Fund, Inc. ^ 26,300 153,329 Zweig Fund, Inc. ^ 19,000 98,990 ------------- 1,667,830 ------------- CONSUMER DISCRETIONARY - 9.55% Amazon.com, Inc. * 5,500 512,325 Carnival Corporation 11,800 571,474 Clear Channel Communications, Inc. 3,300 123,552 Coach, Inc. * 3,500 165,445 Comcast Corporation, Class A * 28,555 690,460 Gannett Co., Inc. 3,500 152,950 Gap, Inc. (The) 12,200 224,968 Goodyear Tire & Rubber Company (The) ^ * 4,500 136,845 Harley-Davidson, Inc. ^ 4,400 203,324 Hilton Hotels Corporation 6,200 288,238 Home Depot, Inc. (The) ^ 23,100 749,364 J.C. Penney Company, Inc. ^ 4,500 285,165 Johnson Controls, Inc. 2,500 295,275 Kohl's Corporation * 2,500 143,325 Lowe's Companies, Inc. 15,400 431,508 Macy's, Inc. 11,052 357,201 McDonald's Corporation 15,100 822,497 News Corporation, Class A 23,000 505,770 NIKE, Inc., Class B 14,600 856,436 Omnicom Group Inc. 13,200 634,788 Sears Holdings Corporation ^ * 503 63,982 Staples, Inc. 10,800 232,092 Starbucks Corporation * 2,800 73,360 Target Corporation ^ 11,800 750,126 Time Warner Inc. 76,000 1,395,360 TJX Companies, Inc. (The) ^ 3,000 87,210 Toyota Motor Corporation ADR 2,500 292,150 Viacom Inc., Class B * 9,450 368,266 Walt Disney Company (The) 30,200 1,038,578 ------------- 12,452,034 ------------- CONSUMER STAPLES - 9.27% Altria Group, Inc. 22,300 1,550,519 Anheuser-Busch Companies, Inc. 6,200 309,938 Archer-Daniels-Midland Company 6,960 230,237 Coca-Cola Company (The) 27,000 1,551,690 Colgate-Palmolive Company 3,400 242,488 ConAgra Foods, Inc. 6,900 180,297 CVS Corporation 13,930 552,046 NO. OF DESCRIPTION SHARES VALUE - ----------------------------------------------------------------------------------------- General Mills, Inc. 5,000 290,050 H.J. Heinz Company ^ 4,000 184,800 Kimberly-Clark Corporation 5,500 386,430 Kraft Foods Inc, Class A ^ 10,932 377,263 Kroger Co. (The) 13,800 393,576 PepsiCo, Inc. 17,600 1,289,376 Procter & Gamble Company (The) ^ 32,797 2,306,941 Sara Lee Corporation 4,500 75,105 Sysco Corporation 9,800 348,782 Walgreen Co. 24,800 1,171,552 Wal-Mart Stores, Inc. 15,100 659,115 ------------- 12,100,205 ------------- ENERGY - 11.62% Baker Hughes Incorporated 10,600 957,922 BJ Services Company 3,500 92,925 Chevron Corporation ^ 24,532 2,295,705 ConocoPhillips ^ 10,474 919,303 Exxon Mobil Corporation ^ 73,500 6,803,159 Halliburton Company 6,700 257,280 Marathon Oil Corp. 15,000 855,300 Noble Corporation 2,500 122,625 Occidental Petroleum Corporation 10,500 672,840 Schlumberger Limited 14,000 1,470,000 Valero Energy Corporation 6,000 403,080 XTO Energy, Inc. 5,000 309,200 ------------- 15,159,339 ------------- FINANCIALS - 18.68% AFLAC Incorporated 7,000 399,280 Allstate Corporation (The) 9,300 531,867 American Express Company 19,600 1,163,652 American International Group, Inc. 16,831 1,138,617 Bank of America Corporation 59,138 2,972,867 Bank of New York Mellon Corporation 10,754 474,682 BB&T Corporation ^ 4,000 161,560 Bear Stearns Companies, Inc. (The) 2,500 307,025 CB Richard Ellis Group, Inc., Class A ^ * 9,000 250,560 Charles Schwab Corporation (The) ^ 6,000 129,600 Chubb Corporation (The) ^ 4,100 219,924 Citigroup Inc. 60,300 2,814,201 Fannie Mae 4,000 243,240 Freddie Mac ^ 2,900 171,129 Goldman Sachs Group, Inc. (The) ^ 7,300 1,582,202 Hartford Financial Services Group, Inc. (The) 6,000 555,300 JPMorgan Chase & Co. 33,632 1,541,018 Lehman Brothers Holdings Inc. ^ 7,200 444,456 Marsh & McLennan Companies, Inc. 6,000 153,000 Merrill Lynch & Co., Inc. ^ 7,200 513,216 Metlife, Inc. ^ 15,200 1,059,896 Morgan Stanley 15,500 976,500 National City Corporation 6,700 168,103 PNC Financial Services Group, Inc. 4,600 313,260 Prudential Financial, Inc. 10,700 1,044,106 State Street Corporation ^ 3,500 238,560 SunTrust Banks, Inc. 5,000 378,350 Travelers Companies, Inc. (The) 9,476 477,022 NO. OF DESCRIPTION SHARES VALUE - ----------------------------------------------------------------------------------------- U.S. Bancorp 21,901 712,440 Wachovia Corporation 22,100 1,108,315 Washington Mutual, Inc. 11,550 407,830 Wells Fargo & Company 48,400 1,724,008 ------------- 24,375,786 ------------- HEALTHCARE - 11.69% Abbott Laboratories 17,700 949,074 Aetna Inc. 6,000 325,620 Amgen Inc. * 22,400 1,267,168 Baxter International Inc. ^ 5,000 281,400 Becton, Dickinson and Company 6,900 566,145 Biogen Idec Inc. * 3,000 198,990 Bristol-Myers Squibb Company ^ 18,500 533,170 Cardinal Health, Inc. 2,950 184,464 Covidien Limited 2,599 107,858 Eli Lilly and Company 4,700 267,571 Gilead Sciences, Inc. * 7,000 286,090 Johnson & Johnson 40,900 2,687,130 McKesson Corporation ^ 5,300 311,587 Medco Health Solutions, Inc. * 2,687 242,878 Medtronic, Inc. ^ 21,500 1,212,815 Merck & Co. Inc. 17,500 904,575 Pfizer Inc. 43,560 1,064,171 Schering-Plough Corporation 17,500 553,525 Stryker Corporation 3,500 240,660 UnitedHealth Group Incorporated ^ 22,000 1,065,460 WellPoint Inc. * 14,000 1,104,880 Wyeth 20,200 899,910 ------------- 15,255,141 ------------- INDUSTRIALS - 11.38% 3M Co. 9,400 879,652 Boeing Company (The) 6,700 703,433 Burlington Northern Santa Fe Corporation 2,900 235,393 Caterpillar Inc. 6,800 533,324 CSX Corporation 10,000 427,300 Danaher Corporation ^ 3,500 289,485 Deere & Company 2,500 371,050 Emerson Electric Co. 12,000 638,640 FedEx Corp. 4,500 471,375 General Dynamics Corporation 6,200 523,714 General Electric Company 100,900 4,177,260 Honeywell International Inc. 12,500 743,375 Illinois Tool Works Inc. 13,300 793,212 Ingersoll-Rand Company Ltd., Class A 4,500 245,115 Lockheed Martin Corporation ^ 4,000 433,960 Norfolk Southern Corporation 5,500 285,505 Northrop Grumman Corporation ^ 5,000 390,000 Raytheon Company ^ 5,000 319,100 Southwest Airlines Co. 5,700 84,360 Tyco International Ltd. 2,599 115,240 Union Pacific Corporation 2,000 226,120 United Parcel Service, Inc., Class B 9,600 720,960 United Technologies Corporation 11,000 885,280 Waste Management, Inc. 9,300 350,982 ------------- 14,843,835 ------------- NO. OF DESCRIPTION SHARES VALUE - ----------------------------------------------------------------------------------------- INFORMATION TECHNOLOGY - 15.69% Adobe Systems Incorporated * 4,200 183,372 Agilent Technologies Inc. * 8,000 295,040 Analog Devices, Inc. 3,500 126,560 Apple Computer, Inc. * 5,500 844,470 Applied Materials, Inc. 33,800 699,660 Automatic Data Processing, Inc. 17,900 822,147 Cisco Systems, Inc. * 77,400 2,562,714 Corning Incorporated * 8,000 197,200 Dell Inc. ^ * 4,700 129,720 eBay Inc. * 8,500 331,670 Electronic Data Systems Corporation 5,000 109,200 EMC Corporation ^ * 116,648 2,426,278 Google Inc. * 2,500 1,418,175 Hewlett-Packard Company 19,900 990,821 Intel Corporation 60,500 1,564,530 International Business Machines Corporation 12,600 1,484,280 Micron Technology, Inc. * 11,500 127,650 Microsoft Corporation 98,200 2,892,972 Motorola, Inc. 10,000 185,300 Oracle Corporation * 44,272 958,489 QUALCOMM Inc. 17,000 718,420 Sun Microsystems, Inc. * 7,500 42,075 Texas Instruments Incorporated 26,400 965,976 Yahoo! Inc. * 14,800 397,232 ------------- 20,473,951 ------------- MATERIALS - 2.82% Alcoa Inc. 16,900 661,128 Dow Chemical Company (The) 10,400 447,824 E. I. du Pont de Nemours and Company 17,300 857,388 Freeport-McMoRan Copper & Gold, Inc. 2,500 262,225 International Paper Company 10,500 376,635 Monsanto Company ^ 5,660 485,288 Newmont Mining Corporation 3,000 134,190 Praxair, Inc. 5,500 460,680 ------------- 3,685,358 ------------- REAL ESTATE INVESTMENT TRUST - 0.31% Simon Property Group, Inc. 4,000 400,000 ------------- TELECOMMUNICATION SERVICES - 3.52% ALLTEL Corporation 4,000 278,720 AT&T Inc. 56,539 2,392,165 Sprint Nextel Corporation 20,946 397,974 Verizon Communications Inc. 34,300 1,518,804 ------------- 4,587,663 ------------- UTILITIES - 3.54% American Electric Power Company, Inc. 8,000 368,640 CenterPoint Energy, Inc. 10,000 160,300 Dominion Resources, Inc. 7,100 598,530 Duke Energy Corporation 15,800 295,302 Edison International ^ 6,500 360,425 Exelon Corporation 6,000 452,160 FirstEnergy Corp. 5,000 316,700 FPL Group, Inc. 4,000 243,520 PG&E Corporation ^ 5,000 239,000 NO. OF DESCRIPTION SHARES VALUE - ----------------------------------------------------------------------------------------- Public Service Enterprise Group Incorporated 3,500 307,965 Southern Company (The) 11,900 431,732 TXU Corp. ^ 12,400 849,028 ------------- 4,623,302 ------------- TOTAL EQUITY SECURITIES (cost - $94,480,626) 129,624,444 ------------- PRINCIPAL AMOUNT (000'S) ---------- SHORT-TERM INVESTMENTS - 2.84% REPURCHASE AGREEMENTS - 2.84% Bear, Stearns & Co. Inc. + ++ (Agreements dated 9/28/2007 to be repurchased at $1,506,223, 5.2500%, 10/1/2007, collateralized by $1,549,414 in United States Treasury Strips) $ 1,506 1,505,564 Bear, Stearns & Co. Inc. + ++ (Agreements dated 9/28/2007 to be repurchased at $1,316,922, 2.6250%, 10/1/2007, collateralized by $1,355,481 in United States Treasury Strips and Bonds) 1,317 1,316,634 Bear, Stearns & Co. Inc. (Agreements dated 9/28/2007 to be repurchased at $886,185, 3.9500%, 10/1/2007, collateralized by $911,691 in United States Treasury Strips) 886 885,893 ------------- TOTAL SHORT-TERM INVESTMENTS (cost - $3,708,091) 3,708,091 ------------- TOTAL INVESTMENTS - 102.19% (cost - $98,188,717) 133,332,535 ------------- LIABILITIES IN EXCESS OF OTHER ASSETS - (2.19)% (2,863,076) ------------- NET ASSETS - 100.00% $ 130,469,459 ============= - -------- ^ Security or a portion thereof is out on loan. * Non-income producing security. ADR American Depositary Receipt + Stated interest rate, before rebate earned by borrower of securities on loan. ++ Represents investment purchased with collateral received for securities on loan.
Federal Income Tax Cost: At September 30, 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 $98,188,717, $36,186,238, ($1,042,420), $35,143,818, respectively. Securities valuation policies and other investment related disclosures are hereby incorporated by reference to the Fund's semi-annual report previously filed with the Securities and Exchange Commission on the Form N-CSR on August 31, 2007 with a file number 811-05150. Other information regarding the Fund is available in the Fund's most recent semi-annual report filed with the Securities and Exchange Commission on Form N-CSR on August 31, 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. 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 26, 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: November 26, 2007 /s/ Kayadti Madison -------------------------------- Name: Kayadti Madison Title: Principal Financial Officer Date: November 26, 2007 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: November 26, 2007 /s/ Ralph W. Bradshaw ------------------------------------ Name: Ralph W. Bradshaw Title: Principal Executive Officer I, Kayadti Madison, 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: November 26, 2007 /s/ Kayadti Madison ----------------------------------------------- Name: Kayadti Madison Title: Principal Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----