N-Q 1 formnq.htm EAGLE CAPITAL GROWTH FUND N-Q 9-30-2016
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)

225 East Mason Street, Suite 802, Milwaukee, WI 53202-3657
 
(Address of principal executive offices) (zip code)
 
Luke E. Sims, President
Eagle Capital Growth Fund, Inc.
225 East Mason Street
Suite 802
Milwaukee, WI 53202-3657
(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, 2016

Date of reporting period: September 30, 2016
 
ITEM 1.
SCHEDULE OF INVESTMENTS
Eagle Capital Growth Fund, Inc.
Portfolio of Investments (as of September 30, 2016) (unaudited)

Common Stock (69.4% of total investments)
                        
Industry
              
LEVEL ONE
        
Consumer
  
Shares
    
Cost
    
Market Value
    
% Total Inv.
  
Colgate-Palmolive Co.
    
12,000
    
$
72,938
    
$
889,680
        
PepsiCo, Inc.
    
10,000
      
168,296
      
1,087,700
        
                   
$
1,977,380
      
(6.5
%)
Data Processing
                                
Automatic Data Processing, Inc.
    
15,000
      
455,833
      
1,322,775
          
Paychex, Inc.
    
23,000
      
583,060
      
1,331,010
          
                   
$
2,653,785
      
(8.7
%)
Health Care/Pharma
                                
Abbott Laboratories Inc.
    
7,500
      
175,588
      
317,175
          
Johnson & Johnson
    
4,000
      
45,500
      
472,520
          
Stryker Corp.
    
11,000
      
47,141
      
1,280,510
          
                   
$
2,070,205
      
(6.8
%)
Industrial
                                
CSW Industrials, Inc.*
    
25,750
      
756,821
      
834,043
          
Deere & Company
    
3,000
      
220,308
      
256,050
          
Emerson Electric Co.
    
18,000
      
810,169
      
981,180
          
Illinois Tool Works Inc.
    
13,000
      
583,134
      
1,557,920
          
Waters Corp.*
    
6,000
      
302,341
      
950,940
          
                   
$
4,580,133
      
(15.0
%)
Insurance
                                
Berkshire Hathaway Inc. B*
    
8,000
      
590,996
      
1,155,760
          
Markel Corp.*
    
1,300
      
831,360
      
1,207,401
          
White Mountains Insurance Group, Ltd.
    
1,000
      
730,019
      
830,000
          
                   
$
3,193,161
      
(10.5
%)
Mutual Fund Managers
                                
Franklin Resources, Inc.
    
60,000
      
2,093,152
      
2,134,200
          
T. Rowe Price Group, Inc.
    
33,500
      
2,281,865
      
2,227,750
          
                   
$
4,361,950
      
(14.3
%)
Retail
                                
eBay Inc.*
    
29,500
      
694,959
      
970,550
          
                   
$
970,550
      
(3.2
%)
Closed-End Funds
                                
Full Circle Capital Corp.*
    
502,268
      
1,339,590
      
1,325,988
          
                   
$
1,325,988
      
(4.4
%)
                                 
Total common stock investments
                  
$
21,133,152
          
                                 
Money Market Funds (30.6% of total investments)
                  
LEVEL ONE
          
Federated Government Oblig. #5 Inst., 0.26%
                    
9,323,700
          
                                 
Total investments
                  
$
30,456,852
          
                                 
All other assets less liabilities
                    
41,006
          
Accrued investment advisory fees
                    
(22,538
)
        
                                 
Total net assets
                  
$
30,475,320
          
 
Footnote:

The following information is based upon federal income tax cost of portfolio investments, excluding money market investments, as of September 30, 2016:

Gross unrealized appreciation
  
$
8,468,267
  
Gross unrealized depreciation
    
118,185
  
Net unrealized appreciation
  
$
8,350,081
  
         
Federal income tax basis
  
$
12,783,070
  
 
ITEM 2.
Controls and Procedures
 
(a)
As of October 3, 2016, 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.