-----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, PqCritmUCRbCsZ0OJftJEAiDKDIyRVvX/xwstLsXb6vAwxnHoe6MBUK+L01+7ux/ BjLIPZuX5xoNydtuuisKug== 0000909012-08-000675.txt : 20080523 0000909012-08-000675.hdr.sgml : 20080523 20080523141959 ACCESSION NUMBER: 0000909012-08-000675 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20080331 FILED AS OF DATE: 20080523 DATE AS OF CHANGE: 20080523 EFFECTIVENESS DATE: 20080523 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: 08857714 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 t304217.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 A. 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, 2008 ----------------- Date of reporting period: March 31, 2008 ------------------ ITEM 1: SCHEDULE OF INVESTMENTS ================================================================================ CORNERSTONE STRATEGIC VALUE FUND, INC. SCHEDULE OF INVESTMENTS -- MARCH 31, 2008 (UNAUDITED) ================================================================================ NO. OF DESCRIPTION SHARES VALUE - -------------------------------------------------- --------- ---------- EQUITY SECURITIES - 99.54% CLOSED-END FUNDS - 1.52% Adams Express Company (a) 49,500 $ 620,235 Boulder Growth & Income Fund Inc. ^ 4,600 38,042 Dreman/Claymore Dividend & Income Fund 4,300 61,791 General American Investors Company 3,000 95,370 Liberty All-Star Equity Fund 96,330 615,549 Zweig Fund, Inc. 29,000 133,110 ------------- 1,564,097 ------------- CONSUMER DISCRETIONARY - 7.80% Amazon.com, Inc. * 5,500 392,150 Carnival Corporation 6,300 255,024 Clear Channel Communications, Inc. 3,300 96,426 Comcast Corporation, Class A 28,555 552,254 Gap, Inc. (The) 12,200 240,096 Home Depot, Inc. (The) 15,600 436,332 J.C. Penney Company, Inc. 4,500 169,695 Johnson Controls, Inc. 7,500 253,500 Lowe's Companies, Inc. 11,900 272,986 McDonald's Corporation 18,600 1,037,322 News Corporation, Class A 23,000 431,250 NIKE, Inc., Class B 6,100 414,800 Omnicom Group Inc. 6,200 273,916 Staples, Inc. 10,800 238,788 Starbucks Corporation * 2,800 49,000 Target Corporation 6,800 344,624 Time Warner Inc. 43,500 609,870 TJX Companies, Inc. (The) 3,000 99,210 Toyota Motor Corporation ADR 2,500 252,225 Viacom Inc., Class B * 9,450 374,409 Walt Disney Company (The) 38,700 1,214,406 ------------- 8,008,283 ------------- CONSUMER STAPLES - 11.91% Altria Group, Inc 13,300 295,260 Anheuser-Busch Companies, Inc. 6,200 294,190 Archer-Daniels-Midland Company 3,960 162,994 Coca-Cola Company (The) 41,000 2,495,670 Colgate-Palmolive Company 6,400 498,624 ConAgra Foods, Inc. 10,900 261,055 CVS Corporation 10,430 422,519 General Mills, Inc. 5,000 299,400 H.J. Heinz Company 4,000 187,880 Kimberly-Clark Corporation 10,500 677,775 Kraft Foods Inc, Class A 10,932 339,001 Kroger Co. (The) 13,800 350,520 PepsiCo, Inc. 11,100 801,420 Philip Morris International Inc. * 13,300 672,714 Procter & Gamble Company (The) 37,797 2,648,436 Sysco Corporation 9,800 284,396 Walgreen Co. 19,800 754,182 Wal-Mart Stores, Inc. 15,100 795,468 ------------- 12,241,504 ------------- ENERGY - 13.87% Baker Hughes Incorporated 10,600 726,100 BJ Services Company 3,500 99,785 Chevron Corporation 28,032 2,392,812 ConocoPhillips 10,474 798,224 ENSCO International Incorporated 2,500 156,550 Exxon Mobil Corporation 70,500 5,962,888 Halliburton Company 13,200 519,156 Marathon Oil Corp. 15,000 684,000 Noble Corporation 2,500 124,175 Occidental Petroleum Corporation 10,500 768,285 Schlumberger Limited 11,500 1,000,500 Transocean Inc. 2,500 338,000 Valero Energy Corporation 6,000 294,660 XTO Energy, Inc. 6,250 386,625 ------------- 14,251,760 ------------- FINANCIALS - 12.90% AFLAC Incorporated 7,000 454,650 Allstate Corporation (The) 6,800 326,808 American Express Company 14,600 638,312 American International Group, Inc. 12,831 554,941 Bank of America Corporation 36,138 1,369,992 Bank of New York Mellon Corporation 8,254 344,439 BB&T Corporation 4,000 128,240 CB Richard Ellis Group, Inc., Class A * 9,000 194,760 Charles Schwab Corporation (The) 6,000 112,980 Chubb Corporation (The) 4,100 202,868 Citigroup Inc. 25,300 541,926 Fannie Mae 4,000 105,280 Freddie Mac 5,400 136,728 Goldman Sachs Group, Inc. (The) 4,800 793,872 Hartford Financial Services Group, Inc. (The) 6,000 454,620 JPMorgan Chase & Co. 31,132 1,337,119 Lehman Brothers Holdings Inc. 4,700 176,908 Marsh & McLennan Companies, Inc. 6,000 146,100 Merrill Lynch & Co., Inc. 4,700 191,478 Metlife, Inc. 15,200 915,952 Morgan Stanley 7,000 319,900 PNC Financial Services Group, Inc. 4,600 301,622 Prudential Financial, Inc. 4,200 328,650 State Street Corporation 3,500 276,500 SunTrust Banks, Inc. 5,000 275,700 Travelers Companies, Inc. (The) 9,476 453,427 U.S. Bancorp 21,901 708,716 Wachovia Corporation 22,100 596,700 Wells Fargo & Company 29,900 870,090 ------------- 13,259,278 ------------- HEALTHCARE - 10.97% Abbott Laboratories 11,200 617,680 Aetna Inc. 6,000 252,540 Amgen Inc. * 9,900 413,622 Baxter International Inc. 5,000 289,100 Becton, Dickinson and Company 4,400 377,740 Biogen Idec Inc. * 3,000 185,070 Bristol-Myers Squibb Company 25,500 543,150 Cardinal Health, Inc. 2,950 154,904 Covidien Limited 2,599 115,006 Eli Lilly and Company 4,700 242,473 Gilead Sciences, Inc. * 7,000 360,710 Johnson & Johnson 40,900 2,653,183 McKesson Corporation 2,800 146,636 Medtronic, Inc. 14,500 701,365 Merck & Co. Inc. 17,500 664,125 Pfizer Inc. 43,560 911,711 Schering-Plough Corporation 29,000 417,890 Stryker Corporation 3,500 227,675 UnitedHealth Group Incorporated 22,000 755,920 WellPoint Inc. * 9,000 397,170 Wyeth 20,200 843,552 ------------- 11,271,222 ------------- INDUSTRIALS - 13.18% 3M Co. 9,400 744,010 Boeing Company (The) 4,200 312,354 Burlington Northern Santa Fe Corporation 5,400 497,988 Caterpillar Inc. 6,800 532,372 CSX Corporation 6,500 364,455 Danaher Corporation 3,500 266,105 Deere & Company 5,000 402,200 Emerson Electric Co. 12,000 617,520 FedEx Corp. 2,000 185,340 General Dynamics Corporation 3,200 266,784 General Electric Company 100,900 3,734,309 Honeywell International Inc. 16,000 902,720 Illinois Tool Works Inc. 13,300 641,459 Ingersoll-Rand Company Ltd., Class A 4,500 200,610 Lockheed Martin Corporation 4,000 397,200 Norfolk Southern Corporation 5,500 298,760 Northrop Grumman Corporation 2,500 194,525 Precision Castparts Corp. 2,500 255,200 Raytheon Company 11,000 710,710 Union Pacific Corporation 2,000 250,760 United Parcel Service, Inc., Class B 9,600 700,992 United Technologies Corporation 11,000 757,020 Waste Management, Inc. 9,300 312,108 ------------- 13,545,501 ------------- INFORMATION TECHNOLOGY - 16.61% Adobe Systems Incorporated * 4,200 149,478 Agilent Technologies Inc. * 4,000 119,320 Apple Computer, Inc. * 8,500 1,219,750 Applied Materials, Inc. 24,800 483,848 Automatic Data Processing, Inc. 11,900 504,441 Cisco Systems, Inc. * 57,900 1,394,811 Corning Incorporated 16,500 396,660 Dell Inc. * 4,700 93,624 eBay Inc. * 8,500 253,640 EMC Corporation * 79,648 1,142,152 Google Inc. * 5,500 2,422,585 Hewlett-Packard Company 19,900 908,634 Intel Corporation 60,500 1,281,390 International Business Machines Corporation 12,600 1,450,764 Microsoft Corporation 87,200 2,474,736 Motorola, Inc. 10,000 93,000 Oracle Corporation * 48,272 944,200 QUALCOMM Inc. 13,000 533,000 Sun Microsystems, Inc. * 1,875 29,119 Texas Instruments Incorporated 26,400 746,328 Yahoo! Inc. * 14,800 428,164 ------------- 17,069,644 ------------- MATERIALS - 3.75% Alcoa Inc. 16,900 609,414 Dow Chemical Company (The) 5,400 198,990 E. I. du Pont de Nemours and Company 17,300 808,948 Freeport-McMoRan Copper & Gold, Inc. 7,500 721,650 International Paper Company 15,500 421,600 Monsanto Company 5,660 631,090 Praxair, Inc. 5,500 463,265 ------------- 3,854,957 ------------- REAL ESTATE INVESTMENT TRUST - 0.36% Simon Property Group, Inc. 4,000 371,640 ------------- TELECOMMUNICATION SERVICES - 3.40% AT&T Inc. 56,539 2,165,444 Sprint Nextel Corporation 10,946 73,229 Verizon Communications Inc. 34,300 1,250,235 ------------- 3,488,908 ------------- UTILITIES - 3.27% American Electric Power Company, Inc. 8,000 333,040 Dominion Resources, Inc. 14,200 579,928 Duke Energy Corporation 15,800 282,030 Edison International 9,000 441,180 Exelon Corporation 3,000 243,810 FirstEnergy Corp. 5,000 343,100 FPL Group, Inc. 4,000 250,960 PG&E Corporation 5,000 184,100 Public Service Enterprise Group Incorporated 7,000 281,330 Southern Company (The) 11,900 423,759 ------------- 3,363,237 ------------- TOTAL EQUITY SECURITIES (cost - $87,748,662) 102,290,031 ------------- PRINCIPAL AMOUNT (000'S) ----------- SHORT-TERM INVESTMENTS - 0.57% MONEY MARKET SECURITY - 0.54% JPMorgan U.S. Government Money Market Fund $ 552 551,815 ------------- REPURCHASE AGREEMENT - 0.03% Bear, Stearns & Co. Inc. + ++ (Agreement dated 3/31/2008 to be repurchased at $37,953, 3.00%, 4/1/2008, collateralized by $40,047 in United States Treasury Bonds) 38 37,950 ------------- TOTAL SHORT-TERM INVESTMENTS (cost - $589,765) 589,765 ------------- TOTAL INVESTMENTS - 100.11% (cost - $88,338,427) 102,879,796 ------------- LIABILITIES IN EXCESS OF OTHER ASSETS - (0.11)% (116,280) ------------- NET ASSETS - 100.00% $ 102,763,516 ============= - ------------- (a) Affiliated investment. The Fund holds 0.60% (based on net assets) of Adams Express Company. A director of the Fund also serves as a director to such company. During the three months ended March 31, 2008 there were no purchases or sales of this security. ^ 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 March 31, 2008 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 $88,338,427, $20,441,656, $(5,900,287), and $14,541,369, respectively. The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements ("FAS 157"), effective January 1, 2008. In accordance with FAS 157, fair value is defined as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. FAS 157 established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value including such a pricing model and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below. o Level 1 - quoted prices in active markets for identical investments o Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) o Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) The inputs or methodology used in valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used as of March 31, 2008 in valuing the Fund's investments carried at value: INVESTMENTS IN OTHER FINANCIAL VALUATION INPUTS SECURITIES INSTRUMENTS* - -------------------------------------------------------------------------------- Level 1 - Quoted Prices $102,290,031 $ -- Level 2 - Other Significant Observable Inputs 589,765 -- Level 3 - Significant Unobservable Inputs -- -- ------------------------------ TOTAL $102,879,796 $ -- ============================== *Other financial instruments include futures, forwards and swap contracts. The Fund did not have any assets or liabilities that were measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at March 31, 2008. 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 10, 2008 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 10, 2008, 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: May 23, 2008 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 23, 2008 /s/ Kayadti A. Madison ----------------------- Name: Kayadti A. Madison Title: Principal Financial Officer Date: May 23, 2008 EX-99.CERT 2 exh99cert.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 23, 2008 /s/ Ralph W. Bradshaw - ------------------------------------ Name: Ralph W. Bradshaw Title: Principal Executive Officer I, Kayadti A. 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: May 23, 2008 /s/ Kayadti A. Madison - ----------------------------------------------- Name: Kayadti A. Madison Title: Principal Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----