N-Q 1 w16013nvq.htm LEGG MASON VALUE TRUST FORM N-Q nvq
 

 
 
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-03380
     
Name of Fund:
  Legg Mason Value Trust, Inc.
Fund Address:
  100 Light Street
 
  Baltimore, MD 21202
     
Name and address of agent for service:
  Richard M. Wachterman, Esq.
 
  Legg Mason & Co., LLC
 
  100 Light Street
 
  Baltimore, MD 21202
Registrant’s telephone number, including area code: (410) 539-0000
Date of fiscal year end: 3/31/2006
Date of reporting period: 12/31/2005
 
 

 

 

Item 1 – Schedule of Investments

Portfolio of Investments

Legg Mason Value Trust, Inc.

December 31, 2005 (Unaudited)
(Amounts in Thousands)
                   
Shares/Par Value
Common Stock and Equity Interests — 99.4%
Consumer Discretionary — 31.6%
   Household Durables — 4.7%
 
Beazer Homes USA, Inc. 
     2,000     $ 145,680  
 
Centex Corporation
    4,500       321,705  
 
Pulte Homes, Inc. 
     7,968       313,613  
 
The Ryland Group, Inc. 
     2,000       144,260  
             
 
              925,258  
             
 
   Internet and Catalog Retail — 13.7%
 
Amazon.com, Inc. 
     23,232       1,095,375 A,B
 
eBay Inc. 
     15,500       670,375 A
 
Expedia, Inc. 
     18,500       443,260 A,B
 
IAC/ InterActiveCorp
    17,000       481,270 A,B
             
 
              2,690,280  
             
 
   Leisure Equipment and Products — 2.7%
 
Eastman Kodak Company
    23,000       538,200 B
             
 
   Media — 5.7%
 
The DIRECTV Group, Inc.
    28,700       405,244 A
 
Time Warner Inc.
    21,000       366,240  
 
WPP Group plc
    32,068       346,704  
             
 
              1,118,188  
             
 
   Multi-Line Retail — 2.7%
 
Sears Holdings Corporation
    4,600       531,438 A
             
 
   Specialty Retail — 2.1%
 
The Home Depot, Inc. 
     10,000       404,800  
             
 
Financials — 14.3%
   Consumer Finance — 1.9%
 
Capital One Financial Corporation
    4,443       383,892  
             
 

 

Portfolio of Investments — Continued
 
Legg Mason Value Trust, Inc. — Continued
                   
Shares/Par Value
Financials — Continued
   Diversified Financial Services — 6.3%
 
Citigroup Inc.
    10,000     $ 485,300  
 
J.P. Morgan Chase & Co.
    18,800       746,172  
             
 
              1,231,472  
             
 
   Insurance — 1.9%
 
The St. Paul Travelers Companies, Inc. 
     8,403       375,358  
             
 
   Thrifts and Mortgage Finance — 4.2%
 
Countrywide Financial Corporation
    14,200       485,498  
 
MGIC Investment Corporation
    5,144       338,572 B
             
 
              824,070  
             
 
Health Care — 15.9%
   Health Care Providers and Services — 14.5%
 
Aetna Inc. 
     6,821       643,307  
 
Health Net Inc. 
     10,095       520,416 A,B
 
McKesson Corporation
    11,121       573,753  
 
UnitedHealth Group Incorporated
    17,964       1,116,296  
             
 
              2,853,772  
             
 
   Pharmaceuticals — 1.4%
 
Pfizer Inc.
    11,500       268,180  
             
 
Industrials — 7.5%
   Building Products — 0.5%
 
Masco Corporation
    3,141       94,824  
             
 
   Commercial Services and Supplies — 1.7%
 
Waste Management Inc.
    11,221       340,557  
             
 
   Industrial Conglomerates — 5.3%
 
Tyco International Ltd.
    36,000       1,038,960  
             
 

 

 
                   
Shares/Par Value
Information Technology — 16.4%
   Communications Equipment — 1.0%
 
Cisco Systems, Inc. 
     12,000     $ 205,440 A
             
 
   Computers and Peripherals — 4.2%
 
Dell Inc. 
     5,700       170,943 A
 
Hewlett-Packard Company
    5,500       157,465  
 
International Business Machines Corporation
    3,000       246,600  
 
Seagate Technology
    12,357       247,022 A
             
 
              822,030  
             
 
   Internet Software and Services — 6.9%
 
Google Inc. 
     2,076       861,249 A
 
Yahoo! Inc. 
     12,400       485,832 A
             
 
              1,347,081  
             
 
   Software — 4.3%
 
Computer Associates International, Inc. 
     3,846       108,419  
 
Electronic Arts Inc. (EA)
    8,008       418,872 A
 
Intuit Inc.
    5,920       315,547 A
             
 
              842,838  
             
 
Telecommunication Services — 9.6%
   Diversified Telecommunication Services — 3.2%
 
Qwest Communications International Inc. 
     111,497       629,958 A,B
             
 
   Wireless Telecommunication Services — 6.4%
 
Sprint Nextel Corporation
    54,046       1,262,515  
             
 
Utilities — 4.1%
   Independent Power Producers and Energy Traders — 4.1%
 
The AES Corporation
    51,500       815,245 A,B
             
 
Total Common Stock and Equity Interests
(Identified Cost — $12,830,828) 		    19,544,356  

 

Portfolio of Investments — Continued
 
Legg Mason Value Trust, Inc. — Continued
                   
Shares/Par Value
Repurchase Agreements — 0.4%
Bank of America
4.23%, dated 12/30/05, to be repurchased at $42,333 on 1/3/06 (Collateral: $42,180 Federal Home Loan Bank notes, 5.25%, due 8/15/06, value $43,183)
    $42,313     $ 42,313  
Goldman, Sachs & Company
               
  4.15%, dated 12/30/05, to be repurchased at $42,332 on 1/3/06 (Collateral: $43,336 Fannie Mae mortgage-backed securities, 5.5%, due 12/1/35, value $43,350)     42,312       42,312  
             
 
Total Repurchase Agreements (Identified Cost — $84,625)     84,625  
Total Investments — 99.8% (Identified Cost — $12,915,453)     19,628,981  
Other Assets Less Liabilities — 0.2%
            34,140  
             
 
Net Assets — 100.0%
           $ 19,663,121  
             
 
Net Asset Value Per Share:
                
 
Primary Class
          $ 68.70  
             
 
 
Financial Intermediary Class
          $ 74.47  
             
 
 
Institutional Class
          $ 75.63  
             
 

A  Non-income producing.

B  Affiliated Company — As defined in the Investment Company Act of 1940, an “Affiliated Company” represents Fund ownership of at least 5% of the outstanding voting securities of an issuer. At December 31, 2005, the total market value of affiliated companies was $4,862,296 and the Identified cost was $3,854,491.

 

Transactions with Affiliated Companies
An Affiliated Company is a company in which the Fund has ownership of at least 5% of the company’s voting securities. Transactions during the period in securities of companies which are or were affiliated are as follows:
                                                                 
    Value at     Purchased     Sold     Dividend     Value at     Realized  
    3/31/05     Cost     Shares     Cost     Shares     Income     12/31/05     Gain/(Loss)  
 
Amazon.com, Inc.
   $ 805,345     $ 1,632       45     $ 5,688       313     $ —     $ 1,095,375     $ 2,111  
Eastman Kodak Company
     553,350       155,836       6,290       10,766       290       10,100       538,200       (5,132 )
Expedia Inc.(A)
     —       37,634       1,744       4,979       211       —       443,260       (1,019 )
Health Net Inc.
     349,997       252       7       14,202       612       —       520,416       15,382  
Interactive Corp
     757,180       6,218       226       7,013       34,194       —       481,270       (974 )
MGIC Investment Corporation
     462,525       298       5       99,649       2,361       2,883       338,571       48,885  
Qwest Communications International, Inc.
     410,700       7,491       2,000       8,923       1,503       —       629,957       (4,090 )
The AES Corporation
     851,760       3,013       192       5,607       692       —       815,245       4,191  
 
                                                    
 
   $ 4,190,857     $ 212,374             $ 156,827             $ 12,983     $ 4,862,294     $ 59,354  
 
                                                    
 
    (A) Prior to April 1, 2005, this security did not have affiliate status since the Fund owned less than 5% of the company’s voting shares.

 

Security Valuation
     Equity securities traded on national securities exchanges are valued at the last quoted sales price, except securities traded on the Nasdaq Stock Market, Inc. (“NASDAQ”) which are valued in accordance with the NASDAQ Official Closing Price. Over the counter securities are valued at the mean between the latest bid and asked prices as furnished by dealers who make markets in such securities or by an independent pricing service. Fixed income securities for which market quotations are readily available are valued at current market value.
     The Fund’s securities are valued on the basis of readily available market quotations or, lacking such quotations, at fair value as determined under policies approved by and under the general oversight of the Board of Directors. In determining fair value, all relevant qualitative and quantitative factors available are considered. These factors are subject to change over time and are reviewed periodically. The Fund may use fair value pricing instead of market quotations to value one or more securities if the Fund believes that, because of special circumstances, doing so would more accurately reflect the prices the Fund expects to realize on the current sale of those securities. Further, because of the inherent uncertainty of valuation, those estimated values may differ significantly from quoted or published value or from the values that would have been used had a ready market for the investments existed, and the differences could be material.
     Other information regarding the Fund is available in the Fund’s most recent Report to Shareholders. This information is available on the Securities and Exchange Commission’s website (www.sec.gov).

 

 

Item 2 – Controls and Procedures
  (a)   The Registrant’s principal executive and principal financial officers have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant’s disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-Q is accumulated and communicated to the Registrant’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.
 
  (b)   There were no changes in the Registrant’s internal control over financial reporting during the Registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the internal control over financial reporting.
Item 3 – Exhibits
Certifications as required by Rule 30a-2(a) under the Investment Company Act of 1940 are 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.
Legg Mason Value Trust, Inc.
     
By: /s/ Mark R. Fetting
 
    
 
    
Mark R. Fetting
    
President, Legg Mason Value Trust, Inc.
    
Date: March 1, 2006
    
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: /s/ Mark R. Fetting
 
    
 
    
Mark R. Fetting
    
President, Legg Mason Value Trust, Inc.
    
Date: March 1, 2006
    
 
    
By: /s/ Marie K. Karpinski
 
    
 
    
Marie K. Karpinski
    
Vice President and Chief Financial Officer, Legg Mason Value Trust, Inc.
    
Date: March 1, 2006