-----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, V/Nylilu/N/VKAKqStpp+QQGnXYy4LJEnu6iitWmdKVU8VdgWJiSQYgYZ/VUklF6 EJ7nY2IPgPvu9y0COOGwrQ== 0001111830-09-000575.txt : 20090522 0001111830-09-000575.hdr.sgml : 20090522 20090522113857 ACCESSION NUMBER: 0001111830-09-000575 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20090331 FILED AS OF DATE: 20090522 DATE AS OF CHANGE: 20090522 EFFECTIVENESS DATE: 20090522 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CORNERSTONE STRATEGIC VALUE FUND INC 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: 09847669 BUSINESS ADDRESS: STREET 1: ULTIMUS FUND SOLUTIONS, LLC STREET 2: 305 MADISON AVE. - SUITE 740 CITY: NEW YORK STATE: NY ZIP: 10165 BUSINESS PHONE: 2126526155 MAIL ADDRESS: STREET 1: ULTIMUS FUND SOLUTIONS, LLC STREET 2: 305 MADISON AVE. - SUITE 740 CITY: NEW YORK STATE: NY ZIP: 10165 FORMER COMPANY: FORMER CONFORMED NAME: CORNERSTONE STRATEGIC VALUE FUND INC/ NEW DATE OF NAME CHANGE: 20010503 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 csvf_nq-0309.txt CORNERSTONE STRATEGIC VALUE FUND, INC. - FORM N-Q ------------------------- OMB APPROVAL ------------------------- OMB Number: 3235-0578 Expires: April 30, 2010 Estimated average burden hours per response: 10.5 ------------------------- 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) 305 Madison Avenue, Suite 740 New York, New York 10165 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Frank J. Maresca Ultimus Fund Solutions, LLC 305 Madison Avenue, Suite 740 New York, NY 10165 - -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (212) 652-6155 ---------------------------- Date of fiscal year end: December 31, 2009 ---------------------------- Date of reporting period: March 31, 2009 ---------------------------- Form N-Q is to be used by management investment companies other than small business investment companies registered on Form N-5 (ss.ss. 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to Rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. SCHEDULE OF INVESTMENTS. CORNERSTONE STRATEGIC VALUE FUND, INC. SCHEDULE OF INVESTMENTS - MARCH 31, 2009 (UNAUDITED) DESCRIPTION NO. OF SHARES VALUE - -------------------------------------------------------------------------------- EQUITY SECURITIES - 99.54% CLOSED-END FUNDS - 8.75% Adams Express Company (The) (a) 49,500 $ 370,755 Advent/Claymore Enhanced Growth & Income Fund 61,070 469,018 BlackRock Dividend Achievers Trust 15,600 98,904 Dreman/Claymore Dividend & Income Fund ^ 69,100 100,195 General American Investors Company, Inc. 3,000 46,050 Liberty All-Star Equity Fund 475,030 1,391,838 Liberty All-Star Growth Fund 266,201 641,544 Tri-Continental Corporation 19,800 166,716 Zweig Fund, Inc. ^ 425,550 1,059,619 ------------ 4,344,639 ------------ CONSUMER DISCRETIONARY - 7.00% Amazon.com, Inc. * 3,000 220,320 Best Buy Company, Inc. 2,500 94,900 Comcast Corporation - Class A 11,555 157,610 DIRECTV Group, Inc. (The) ^ * 4,000 91,160 Gap, Inc. (The) 9,200 119,508 Home Depot, Inc. (The) 2,000 47,120 Lowe's Companies, Inc. 5,900 107,675 McDonald's Corporation 14,400 785,808 News Corporation - Class A 10,000 66,200 NIKE, Inc. - Class B 6,100 286,029 Omnicom Group, Inc. ^ 6,200 145,080 Staples, Inc. 10,800 195,588 Starbucks Corporation ^ * 2,800 31,108 Target Corporation 6,800 233,852 Time Warner Cable, Inc. ^ 1,966 48,763 TJX Companies, Inc. (The) ^ 3,000 76,920 Toyota Motor Corporation - ADR ^ 2,500 158,250 Viacom, Inc. - Class B * 5,450 94,721 Walt Disney Company (The) ^ 28,200 512,112 ------------ 3,472,724 ------------ CONSUMER STAPLES - 12.61% Altria Group, Inc. 13,300 213,066 Archer-Daniels-Midland Company 3,960 110,009 Coca-Cola Company (The) 17,500 769,125 Colgate-Palmolive Company 8,900 524,922 ConAgra Foods, Inc. 3,400 57,358 CVS Caremark Corporation 10,430 286,720 CORNERSTONE STRATEGIC VALUE FUND, INC. SCHEDULE OF INVESTMENTS - MARCH 31, 2009 (UNAUDITED) (CONTINUED) CONSUMER STAPLES (CONTINUED) General Mills, Inc. 2,500 $ 124,700 H.J. Heinz Company ^ 4,000 132,240 Kimberly-Clark Corporation ^ 2,500 115,275 Kraft Foods, Inc. - Class A 10,932 243,674 Kroger Company (The) 8,800 186,736 PepsiCo, Inc. 7,100 365,508 Philip Morris International, Inc. ^ 7,300 259,734 Procter & Gamble Company (The) 26,297 1,238,326 Sysco Corporation ^ 9,800 223,440 Walgreen Company 4,800 124,608 Wal-Mart Stores, Inc. 24,600 1,281,660 ------------ 6,257,101 ------------ ENERGY - 12.07% Baker Hughes, Inc. ^ 10,600 302,630 Chevron Corporation 17,032 1,145,232 ConocoPhillips 10,474 410,162 Exxon Mobil Corporation 37,000 2,519,700 Halliburton Company 13,200 204,204 Marathon Oil Corporation 11,500 302,335 Occidental Petroleum Corporation 8,000 445,200 Schlumberger Ltd. ^ 8,000 324,960 Transocean Ltd. ^ * 2,500 147,100 XTO Energy, Inc. ^ 6,250 191,375 ------------ 5,992,898 ------------ FINANCIALS - 9.42% AFLAC, Inc. ^ 3,500 67,760 Allstate Corporation (The) 6,800 130,220 American Express Company 3,400 46,342 Bank of America Corporation 16,138 110,061 Bank of New York Mellon Corporation (The) 5,754 162,550 Capital One Financial Corporation 2,500 30,600 Charles Schwab Corporation (The) ^ 22,000 341,000 Goldman Sachs Group, Inc. (The) ^ 1,800 190,836 Hudson City Bancorp, Inc. 13,000 151,970 JPMorgan Chase & Company 47,632 1,266,059 Marsh & McLennan Companies, Inc. ^ 10,000 202,500 MetLife, Inc. ^ 5,700 129,789 Morgan Stanley 7,000 159,390 PNC Financial Services Group, Inc. * 7,600 222,604 T. Rowe Price Group, Inc. ^ 7,000 202,020 Travelers Companies, Inc. (The) 12,476 507,025 CORNERSTONE STRATEGIC VALUE FUND, INC. SCHEDULE OF INVESTMENTS - MARCH 31, 2009 (UNAUDITED) (CONTINUED) FINANCIALS (CONTINUED) U.S. Bancorp 9,901 $ 144,653 Wells Fargo & Company 42,900 610,896 ------------ 4,676,275 ------------ HEALTH CARE - 14.67% Abbott Laboratories ^ 11,200 534,240 Aetna, Inc. 11,000 267,630 Amgen, Inc. ^ * 9,900 490,248 Baxter International, Inc. ^ 5,000 256,100 Becton, Dickinson and Company 5,400 363,096 Biogen Idec, Inc. * 4,000 209,680 Bristol-Myers Squibb Company 23,500 515,120 Cardinal Health, Inc. ^ 7,950 250,266 Covidien Ltd. 2,599 86,391 Eli Lilly & Company 4,700 157,027 Gilead Sciences, Inc. * 7,000 324,240 Johnson & Johnson 22,900 1,204,540 McKesson Corporation 2,800 98,112 Medtronic, Inc. 10,000 294,700 Merck & Company, Inc. ^ 12,500 334,375 Pfizer, Inc. 23,560 320,887 Schering-Plough Corporation ^ 18,500 435,675 Stryker Corporation 3,500 119,140 UnitedHealth Group, Inc. 19,500 408,135 WellPoint, Inc. ^ * 3,500 132,895 Wyeth 11,200 482,048 ------------ 7,284,545 ------------ INDUSTRIALS - 8.66% 3M Company 4,400 218,768 Boeing Company (The) ^ 2,200 78,276 Burlington Northern Santa Fe Corporation 5,400 324,810 Caterpillar, Inc. ^ 6,800 190,128 CSX Corporation 6,500 168,025 Deere & Company ^ 8,000 262,960 Emerson Electric Company 8,400 240,072 FedEx Corporation 2,000 88,980 General Dynamics Corporation ^ 3,200 133,088 General Electric Company ^ 56,900 575,259 Honeywell International, Inc. ^ 5,000 139,300 Illinois Tool Works, Inc. 4,800 148,080 Lockheed Martin Corporation 4,000 276,120 Norfolk Southern Corporation 5,500 185,625 CORNERSTONE STRATEGIC VALUE FUND, INC. SCHEDULE OF INVESTMENTS - MARCH 31, 2009 (UNAUDITED) (CONTINUED) INDUSTRIALS (CONTINUED) Northrop Grumman Corporation 2,500 $ 109,100 Raytheon Company 6,000 233,640 Union Pacific Corporation ^ 4,000 164,440 United Parcel Service, Inc. - Class B 4,100 201,802 United Technologies Corporation 7,500 322,350 Waste Management, Inc. ^ 9,300 238,080 ------------ 4,298,903 ------------ INFORMATION TECHNOLOGY - 15.82% Adobe Systems, Inc. * 4,200 89,838 Apple, Inc. * 8,500 893,520 Applied Materials, Inc. ^ 17,800 191,350 Automatic Data Processing, Inc. 4,400 154,704 Cisco Systems, Inc. * 32,900 551,733 Corning, Inc. ^ 16,500 218,955 Dell, Inc. * 4,700 44,556 eBay, Inc. * 2,500 31,400 EMC Corporation ^ * 39,148 446,287 Google, Inc. - Class A * 2,000 696,120 Hewlett-Packard Company 16,900 541,814 Intel Corporation 60,500 910,525 International Business Machines Corporation 10,600 1,027,034 Microsoft Corporation 56,200 1,032,394 Nortel Networks Corporation * 660 149 Oracle Corporation * 26,272 474,735 QUALCOMM, Inc. 10,000 389,100 Texas Instruments, Inc. 6,400 105,664 Yahoo!, Inc. * 4,000 51,240 ------------ 7,851,118 ------------ MATERIALS - 2.76% Alcoa, Inc. ^ 11,400 83,676 Dow Chemical Company (The) ^ 5,400 45,522 E.I. Du Pont de Nemours & Company 9,500 212,135 Freeport-McMoRan Copper & Gold, Inc. ^ 5,000 190,550 Monsanto Company 5,660 470,346 Praxair, Inc. 5,500 370,095 ------------ 1,372,324 ------------ REAL ESTATE INVESTMENT TRUST - 0.14% Simon Property Group, Inc. ^ 2,047 70,908 ------------ TELECOMMUNICATION SERVICES - 3.72% AT&T, Inc. 43,539 1,097,183 CORNERSTONE STRATEGIC VALUE FUND, INC. SCHEDULE OF INVESTMENTS - MARCH 31, 2009 (UNAUDITED) (CONTINUED) TELECOMMUNICATION SERVICES (CONTINUED) Verizon Communications, Inc. ^ 24,800 $ 748,960 ------------ 1,846,143 ------------ UTILITIES - 3.92% American Electric Power Company, Inc. 5,000 126,300 Dominion Resources, Inc. ^ 11,200 347,088 Duke Energy Corporation 15,800 226,256 Edison International ^ 3,500 100,835 Exelon Corporation 3,000 136,170 FirstEnergy Corporation 5,000 193,000 FPL Group, Inc. ^ 4,000 202,920 PG&E Corporation 5,000 191,100 Public Service Enterprise Group, Inc. 4,500 132,615 Southern Company (The) 9,400 287,828 ------------ 1,944,112 ------------ TOTAL EQUITY SECURITIES (cost $61,033,182) $ 49,411,690 ------------ SHORT-TERM INVESTMENTS - 11.54% MONEY MARKET SECURITY - 1.04% JPMorgan U.S. Government Money Market Fund 517,628 517,628 ------------ PRINCIPAL AMOUNT (000'S) -------------- REPURCHASE AGREEMENTS - 10.50% J.P. Morgan Securities, Inc.+ ++ (Agreement dated 3/31/2009 to be repurchased at $176,697, 0.1562%, 4/1/2009, collateralized by $182,506 in United States Treasury Notes) $ 177 176,696 J.P. Morgan Securities, Inc.+ ++ (Agreement dated 3/31/2009 to be repurchased at $5,034,902, 0.3125%, 4/1/2009, collateralized by $5,183,174 in United States Treasury Notes) 5,035 5,034,858 $ 5,211,554 ------------ TOTAL SHORT-TERM INVESTMENTS (cost - $5,729,182) 5,729,182 CORNERSTONE STRATEGIC VALUE FUND, INC. SCHEDULE OF INVESTMENTS - MARCH 31, 2009 (UNAUDITED) (CONTINUED) TOTAL INVESTMENTS - 111.08% (cost $66,762,364) 55,140,872 ------------ LIABILITIES IN EXCESS OF OTHER ASSETS - (11.08)% (5,500,309) ------------ NET ASSETS - 100.00% $ 49,640,563 ============ ADR - American Depositary Receipt (a) Affiliated investment. The fund holds 0.75% (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, 2009 there were no purchases or sales of this security. ^ Security or a 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 collateral received for securities on loan. See accompanying notes to schedule of investments. CORNERSTONE STRATEGIC VALUE FUND, INC. NOTES TO SCHEDULES OF INVESTMENTS MARCH 31, 2009 (UNAUDITED) ================================================================================ Federal Income Tax Cost: At March 31, 2009 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 depreciation from investments were $66,762,364, $4,442,472, $(16,063,964) and $(11,621,492), 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 risks, 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 for 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, 2009 in valuing the Fund's investments carried at value: OTHER INVESTMENTS IN FINANCIAL Valuation Inputs SECURITIES INSTRUMENTS* - --------------------------------------------- ------------ ------------ Level 1 - Quoted Prices $ 55,140,872 $ -- Level 2 - Other Significant Observable Inputs -- -- Level 3 - Significant Unobservable Inputs -- -- ============ ============ Total $ 55,140,872 $ -- ============ ============ * 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, 2009. As of January 1, 2009, the Fund adopted SFAS No. 161, DISCLOSURES ABOUT DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES. This standard amends and expands the disclosure requirements of SFAS No. 133, ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES, to illustrate how and why an entity uses derivative instruments; how derivative instruments and related hedged items are accounted for under SFAS No. 133; and how derivative instruments and related hedged items affect an entity's financial position, financial performance and cash flows. SFAS No. 161 is effective for financial statements issued for fiscal years beginning after November 15, 2008 and interim periods within those fiscal years. The Fund is exposed to financial market risks, including the valuations of its investment portfolio. For the period ended March 31, 2009, the Fund did not engage in derivative instruments and other hedging activities. Securities valuation policies and other investment related disclosures are herby incorporated by reference to the Fund's annual report previously filed with the Securities and Exchange Commission on the Form N-CSR on March 6, 2009 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 the Form N-CSR on March 6, 2009, file number 811-05150. This information is also available to registered shareholders by calling (800) 937-5449. For general inquiries, please call (513) 326-3597. This information is also available on the website of the Securities and Exchange Commission - https://www.sec.gov ITEM 2. CONTROLS AND PROCEDURES. (a) Based on their evaluation of the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) as of a date within 90 days of the filing date of this report, the registrant's principal executive officer and principal financial officer have concluded that such disclosure controls and procedures are reasonably designed and are operating effectively to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to them by others within those entities, particularly during the period in which this report is being prepared, and that such information is recorded, processed, summarized, and reported on a timely basis. (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) 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. File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)): Attached hereto 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. (Registrant) Cornerstone Strategic Value Fund, Inc. ------------------------------------------------------------------- By (Signature and Title)* /s/ Ralph W. Bradshaw -------------------------------------------------- Ralph W. Bradshaw, President and Chairman (Principal Executive Officer) Date May 21, 2009 -------------------------- 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. By (Signature and Title)* /s/ Ralph W. Bradshaw -------------------------------------------------- Ralph W. Bradshaw, President and Chairman (Principal Executive Officer) Date May 21, 2009 -------------------------- By (Signature and Title)* /s/ Frank J. Maresca -------------------------------------------------- Frank J. Maresca, Treasurer (Principal Financial Officer) Date May 21, 2009 -------------------------- * Print the name and title of each signing officer under his or her signature. EX-99.CERT 2 ex99cert.txt CERTIFICATIONS REQUIRED BY RULE 30A-2(A) EX-99.CERT CERTIFICATIONS -------------- 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 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 21, 2009 /s/ Ralph W. Bradshaw -------------------------------------------- Ralph W. Bradshaw, Chairman and President (Principal Executive Officer) CERTIFICATIONS -------------- I, Frank J. Maresca, 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 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 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 21, 2009 /s/ Frank J. Maresca -------------------------------------------- Frank J. Maresca, Treasurer (Principal Financial Officer) -----END PRIVACY-ENHANCED MESSAGE-----