0001140361-12-018436.txt : 20120402 0001140361-12-018436.hdr.sgml : 20120402 20120402102648 ACCESSION NUMBER: 0001140361-12-018436 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20120331 FILED AS OF DATE: 20120402 DATE AS OF CHANGE: 20120402 EFFECTIVENESS DATE: 20120402 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EAGLE CAPITAL GROWTH FUND, INC. CENTRAL INDEX KEY: 0000850027 IRS NUMBER: 311274796 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-05807 FILM NUMBER: 12731624 BUSINESS ADDRESS: STREET 1: 205 E. WISCONSIN AVE., SUITE 120 CITY: MILWAUKEE STATE: WI ZIP: 53202 BUSINESS PHONE: 414-765-1107 MAIL ADDRESS: STREET 1: 205 E. WISCONSIN AVE., SUITE 120 CITY: MILWAUKEE STATE: WI ZIP: 53202 FORMER COMPANY: FORMER CONFORMED NAME: NAIC GROWTH FUND INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: BETTER INVESTING FUND INC DATE OF NAME CHANGE: 19890716 N-Q 1 formnq.htm EAGLE CAPITAL GROWTH FUND INC N-Q 3-31-2012 formnq.htm
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: 811-05807
Eagle Capital Growth Fund, Inc.
(Exact name of registrant as specified in charter)
 
205 E. Wisconsin Ave, Suite 120, Milwaukee, WI 53202
(Address of principal executive offices) (zip code)
Luke E. Sims, President
Eagle Capital Growth Fund, Inc.
205 E. Wisconsin Ave
Suite 120
Milwaukee, WI 53202
(414) 765-1107
(Name and address of agent for service)
Registrant's telephone number, including area code:
(414) 765-1107

Date of fiscal year end: December 31, 2012

Date of reporting period: March 31, 2012
 
 
 
 
 
ITEM 1.   SCHEDULE OF INVESTMENTS
Eagle Capital Growth Fund, Inc.
Portfolio of Investments (as of March 31, 2012) (unaudited)

Industry
                        
                         
Common Stock (70.5% of total investments)
                        
Industry
                        
Consumer
  
Shares
    
Cost
    
Market Value
    
% Total Inv.
  
Colgate-Palmolive Co.
     6,000       72,938       586,680        
PepsiCo, Inc.
     10,000       168,296       663,500        
Procter & Gamble Co.
     12,000       718,280       806,520        
                    $ 2,056,700       (8.5 %)
Data Processing
                                
Automatic Data Processing, Inc.
     24,000       877,946       1,324,560          
Paychex, Inc.
     31,000       797,952       960,690          
                    $ 2,285,250       (9.5 %)
Drug/Medical Device
                                
Abbott Laboratories Inc.
     15,000       738,297       919,350          
Johnson & Johnson
     12,500       484,536       824,500          
Stryker Corp.
     20,000       95,500       1,109,600          
                    $ 2,853,450       (11.9 %)
Industrial
                                
Hillenbrand, Inc.
     47,000       913,456       1,078,650          
Illinois Tool Works Inc.
     17,000       786,916       971,040          
Sigma-Aldrich Corp.
     16,000       498,184       1,168,960          
Waters Corp.*
     6,000       302,341       555,960          
                    $ 3,774,610       (15.7 %)
Mutual Fund Managers
                                
Eaton Vance Corp.
     34,000       801,121       971,720          
Franklin Resources, Inc.
     4,500       427,398       558,135          
                    $ 1,529,855       (6.4 %)
Insurance
                                
Berkshire Hathaway Inc.*
     17,000       1,303,475       1,379,550          
The Chubb Corporation
     14,000       715,049       967,540          
                    $ 2,347,090       (9.7 %)
Retail/Distribution
                                
Best Buy Co., Inc.
     31,000       1,057,843       734,080          
Sysco Corp.
     27,000       309,199       806,220          
                    $ 1,540,300       (6.4 %)
Closed-End Funds
                                
Diamond Hill Financial Trends Fund, Inc.
     55,182       527,969       596,517          
                    $ 596,517       (2.5 %)
                                 
Total common stock investments
                   $ 16,983,772          
                                 
Cash and cash equivalents (29.5% of total investments)
                     7,091,225          
                                 
Total investments
                   $ 24,074,997          
                                 
All other assets less liabilities
                     3,685          
                                 
Total net assets
                   $ 24,078,682          
 
*Non-dividend paying security
 
 
 
 
 
 
Footnote:

The following information is based upon federal income tax cost of portfolio investments as of March 31, 2012:

Gross unrealized appreciation
 
$
5,732,997
 
Gross unrealized depreciation
 
 
( 345,920
)
Net unrealized appreciation
 
$
5,387,077
 
 
 
 
 
 
Federal income tax basis
 
$
11,596,695
 
 
ITEM 2.  Controls and Procedures
 
 
(a)
As of April 1, 2012, an evaluation of the effectiveness of the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) was performed by management with the participation of the registrant's President and Chief Executive Officer (who is the principal executive officer of the registrant) and the registrant’s Chief Financial Officer (who is the principal financial officer of the registrant).  Based on that evaluation, the registrant's President and Chief Executive Officer and Chief Financial Officer concluded that the registrant's disclosure controls and procedures are effectively designed to ensure that information required to be disclosed by the registrant is recorded, processed, summarized and reported within the time periods specified by the Commission's rules and forms, and that information required to be disclosed by the registrant has been accumulated and communicated to the registrant's management, including its principal executive officer and principal financial officer, or persons performing similar functions as appropriate to allow timely decisions regarding required disclosure.
 
 
(b)
Fair Value Accounting—Accounting standards require certain assets and liabilities be reported at fair value in the financial statements and provides a framework for establishing that fair value.  The framework for determining fair value is based on a hierarchy that prioritizes the inputs and valuation techniques used to measure fair value.
 
In general, fair values determined by Level 1 inputs use quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.
 
Fair values determined by Level 2 inputs use other inputs that are observable, either directly or indirectly.  These Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals.
 
Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset.  These level 3 fair value measurements are based primarily on management’s own estimates using pricing models, discounted cash flow methodologies, or similar techniques taking into account the characteristics of the asset.
 
 
 EX-99.1 2 ex99_1.htm EXHIBIT 99.1 ex99_1.htm
Exhibit 99.1
 
CERTIFICATIONS

I, Luke E. Sims, certify that:

1.  I have reviewed this report on Form N-Q of Eagle Capital Growth 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 know 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: April 1, 2012
/s/ Luke E. Sims
 
Luke E. Sims
 
President and Chief Executive Officer
 
(Principal Executive Officer)

 
EX-99.2 3 ex99_2.htm EXHIBIT 99.2 ex99_2.htm
Exhibit 99.2
 
I, David C. Sims, certify that:

1.  I have reviewed this report on Form N-Q of Eagle Capital Growth 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 know 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: April 1, 2012
/s/   David C. Sims
 
David C. Sims
 
Chief Financial Officer
 
(Principal Financial Officer)