N-Q 1 d424586dnq.htm MANAGERS FUNDS Managers Funds

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMEN

TINVESTMENT COMPANY

Investment Company Act file number: 811-03752

 

 

THE MANAGERS FUNDS

(Exact name of registrant as specified in charter)

 

 

800 Connecticut Avenue,

Norwalk, Connecticut 06854

(Address of principal executive offices) (Zip code)

 

 

Managers Investment Group LLC

800 Connecticut Avenue,

Norwalk, Connecticut 06854

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: (203) 299-3500

Date of fiscal year end: June 30th

Date of reporting period: August 31, 2012

(1st Quarter End Portfolio Holdings)

 

 

 


Item 1. SCHEDULE OF INVESTMENTS.


Managers Cadence Capital Appreciation Fund

Schedule of Portfolio Investments

August 31, 2012 (unaudited)

 

     Shares      Value  

Common Stocks—97.3%

  

Consumer Discretionary —20.3%

  

Bed Bath & Beyond, Inc.*

     86,204       $ 5,790,323   

CBS Corp., Class B

     165,067         5,998,535   

Coach, Inc.

     131,975         7,671,707   

Genuine Parts Co.

     81,734         5,162,319   

Harley-Davidson, Inc.

     155,395         6,520,374   

Limited Brands, Inc.

     97,341         4,730,773   

Lululemon Athletica, Inc.*

     97,562         6,360,067   

McDonald’s Corp.

     58,314         5,218,520   

NIKE, Inc., Class B

     50,202         4,887,667   

Nordstrom, Inc.

     63,776         3,688,166   

Omnicom Group, Inc.

     115,558         5,936,215   

priceline.com, Inc.*

     9,388         5,675,703   

PVH Corp.

     66,377         6,232,800   

Ralph Lauren Corp.

     35,270         5,595,586   

Starbucks Corp.

     149,364         7,409,948   

TJX Cos., Inc.

     81,088         3,713,020   

Total Consumer Discretionary

        90,591,723   

Consumer Staples—7.1%

  

Costco Wholesale Corp.

     44,248         4,330,552   

CVS Caremark Corp.

     139,884         6,371,716   

Kroger Co., The

     226,512         5,046,687   

Philip Morris International, Inc.

     89,472         7,989,850   

Procter & Gamble Co., The

     81,291         5,461,942   

Whole Foods Market, Inc.

     27,861         2,695,552   

Total Consumer Staples

        31,896,299   

Energy—6.4%

  

Anadarko Petroleum Corp.

     83,095         5,755,991   

Chevron Corp.

     52,264         5,861,930   

Halliburton Co.

     149,417         4,894,901   

National Oilwell Varco, Inc.

     73,367         5,781,320   

Occidental Petroleum Corp.

     75,838         6,446,988   

Total Energy

        28,741,130   

Financials—6.5%

  

Discover Financial Services

     95,732         3,707,700   

JPMorgan Chase & Co.

     234,951         8,726,080   

Northern Trust Corp.

     118,661         5,510,617   

T. Rowe Price Group, Inc.

     88,458         5,434,860   

Wells Fargo & Co.

     168,545         5,735,586   

Total Financials

        29,114,843   

Health Care—10.6%

  

Abbott Laboratories

     88,555         5,803,895   

Agilent Technologies, Inc.

     127,264         4,729,130   
     Shares      Value  

Biogen Idec, Inc.*

     26,618       $ 3,901,933   

Cardinal Health, Inc.

     124,113         4,908,669   

Cooper Cos., Inc., The

     57,819         4,848,123   

Covidien PLC

     103,622         5,808,013   

Intuitive Surgical, Inc.*

     10,838         5,330,020   

Johnson & Johnson

     84,836         5,720,492   

Stryker Corp.

     120,144         6,398,869   

Total Health Care

        47,449,144   

Industrials—9.9%

  

Chicago Bridge & Iron Co., N.V.

     152,148         5,602,089   

Cummins, Inc.

     38,969         3,784,280   

Honeywell International, Inc.

     90,347         5,280,782   

Joy Global, Inc.

     100,532         5,366,398   

Norfolk Southern Corp.

     71,474         5,179,006   

PACCAR, Inc.

     139,682         5,574,709   

Parker Hannifin Corp.

     52,245         4,178,555   

Stericycle, Inc.*

     44,807         4,100,737   

United Technologies Corp.

     67,254         5,370,232   

Total Industrials

        44,436,788   

Information Technology—33.7%

  

Accenture PLC, Class A

     78,449         4,832,458   

Adobe Systems, Inc.*

     169,422         5,297,826   

Amphenol Corp., Class A

     95,559         5,816,676   

Apple, Inc.

     24,114         16,041,597   

Citrix Systems, Inc.*

     71,291         5,538,598   

Cognizant Technology Solutions Corp., Class A*

     96,397         6,196,399   

EMC Corp.*

     251,232         6,604,889   

F5 Networks, Inc.*

     47,206         4,602,113   

Fortinet, Inc.*

     168,824         4,475,524   

Google, Inc., Class A*

     18,044         12,361,764   

International Business Machines Corp.

     40,698         7,930,005   

Intuit, Inc.

     113,873         6,666,125   

Lam Research Corp.*

     84,672         2,889,855   

Marvell Technology Group, Ltd.

     316,290         3,219,832   

Microsoft Corp.

     187,996         5,794,037   

Paychex, Inc.

     160,626         5,342,421   

QUALCOMM, Inc.

     182,408         11,210,796   

Red Hat, Inc.*

     80,501         4,511,276   

Teradata Corp.*

     79,316         6,058,156   

TIBCO Software, Inc.*

     179,132         5,359,629   

Trimble Navigation, Ltd.*

     120,404         5,905,816   

VeriFone Systems, Inc.*

     127,668         4,435,186   

Visa, Inc., Class A

     41,792         5,359,824   
 

 

1


Managers Cadence Capital Appreciation Fund

Schedule of Portfolio Investments (continued)

 

     Shares      Value  

Information Technology—33.7%
(continued)

   

VMware, Inc., Class A*

     44,528       $ 3,964,773   

Total Information Technology

        150,415,575   

Materials—2.8%

  

CF Industries Holdings, Inc.

     21,021         4,351,557   

Cliffs Natural Resources, Inc.

     86,069         3,084,713   

Freeport-McMoRan Copper & Gold, Inc., Class B

     136,370         4,924,321   

Total Materials

        12,360,591   

Total Common Stocks
(cost $417,657,332)

        435,006,093   
     Value  

Total Investments—97.3%
(cost $417,657,332)

   $ 435,006,093   

Other Assets, less Liabilities—2.7%

     11,921,485   

Net Assets—100.0%

   $ 446,927,578   
 

 

2


Managers Cadence Focused Growth Fund

Schedule of Portfolio Investments

August 31, 2012 (unaudited)

 

     Shares      Value  

Common Stocks—95.2%

  

Consumer Discretionary—17.9%

  

Coach, Inc.

     4,329       $ 251,645   

Limited Brands, Inc.

     4,563         221,762   

Nordstrom, Inc.

     2,337         135,149   

Omnicom Group, Inc.

     4,545         233,477   

priceline.com, Inc.*

     345         208,577   

Ralph Lauren Corp.

     976         154,842   

Starbucks Corp.

     4,851         240,658   

TJX Cos., Inc.

     2,928         134,073   

Total Consumer Discretionary

        1,580,183   

Consumer Staples—6.4%

  

CVS Caremark Corp.

     4,585         208,847   

Philip Morris International, Inc.

     2,337         208,694   

Whole Foods Market, Inc.

     1,568         151,704   

Total Consumer Staples

        569,245   

Energy—7.9%

  

Anadarko Petroleum Corp.

     2,554         176,916   

Halliburton Co.

     5,354         175,397   

National Oilwell Varco, Inc.

     2,220         174,936   

Occidental Petroleum Corp.

     2,055         174,695   

Total Energy

        701,944   

Financials—8.4%

  

Discover Financial Services

     3,544         137,259   

JPMorgan Chase & Co.

     6,872         255,226   

T. Rowe Price Group, Inc.

     2,800         172,032   

Wells Fargo & Co.

     5,305         180,529   

Total Financials

        745,046   

Health Care—10.1%

  

Cardinal Health, Inc.

     4,615         182,523   

Cooper Cos., Inc., The

     1,883         157,890   

Covidien PLC

     3,510         196,735   

Johnson & Johnson

     2,781         187,523   

Stryker Corp.

     3,214         171,178   

Total Health Care

        895,849   
     Shares      Value  

Industrials—9.5%

  

Honeywell International, Inc.

     3,589       $ 209,777   

Joy Global, Inc.

     2,978         158,966   

Norfolk Southern Corp.

     2,327         168,614   

PACCAR, Inc.

     4,615         184,185   

Parker Hannifin Corp.

     1,509         120,690   

Total Industrials

        842,232   

Information Technology—32.8%

  

Accenture PLC, Class A

     2,948         181,597   

Adobe Systems, Inc.*

     6,784         212,136   

Apple, Inc.

     503         334,616   

Citrix Systems, Inc.*

     2,209         171,617   

Google, Inc., Class A*

     444         304,180   

International Business Machines Corp.

     1,108         215,894   

Intuit, Inc.

     3,658         214,139   

Mastercard, Inc., Class A

     523         221,177   

Paychex, Inc.

     5,236         174,149   

QUALCOMM, Inc.

     4,181         256,964   

Red Hat, Inc.*

     3,086         172,939   

Teradata Corp.*

     3,224         246,249   

VMware, Inc., Class A*

     2,209         196,689   

Total Information Technology

        2,902,346   

Materials—2.2%

  

Freeport-McMoRan Copper & Gold, Inc., Class B

     5,413         195,463   

Total Common Stocks
(cost $7,855,160)

        8,432,308   

Other Investment Companies—3.6%1

  

Dreyfus Cash Management Fund, Institutional Class Shares, 0.08%
(cost $319,586)

     319,586         319,586   

Total Investments—98.8%
(cost $8,174,746)

        8,751,894   

Other Assets, less Liabilities—1.2%

  

     103,068   

Net Assets—100.0%

      $ 8,854,962   
 

 

3


Managers Cadence Mid-Cap Fund

Schedule of Portfolio Investments

August 31, 2012 (unaudited)

 

     Shares      Value  

Common Stocks—99.1%

  

Consumer Discretionary—23.1%

  

American Eagle Outfitters, Inc.

     251,110       $ 5,584,686   

BorgWarner, Inc.*

     84,150         5,787,837   

Dick’s Sporting Goods, Inc.

     128,360         6,387,194   

Dollar General Corp.*

     97,960         5,002,817   

DSW, Inc., Class A

     116,540         7,519,161   

Genesco, Inc.*

     117,130         8,275,234   

Gentex Corp.

     230,140         4,032,053   

Limited Brands, Inc.

     161,768         7,861,925   

Michael Kors Holdings, Ltd.*

     130,630         7,047,489   

O’Reilly Automotive, Inc.*

     25,530         2,168,773   

Panera Bread Co., Class A*

     32,070         4,967,643   

PetSmart, Inc.

     99,850         7,081,362   

PulteGroup, Inc.*

     612,780         8,382,830   

Ralph Lauren Corp.

     35,470         5,627,316   

Ross Stores, Inc.

     105,950         7,330,680   

Toll Brothers, Inc.*

     241,389         7,898,248   

Ulta Salon Cosmetics & Fragrance, Inc.

     73,630         6,921,220   

VF Corp.

     52,590         8,029,441   

Wynn Resorts, Ltd.

     24,610         2,539,014   

Total Consumer Discretionary

        118,444,923   

Consumer Staples—8.6%

  

Beam, Inc.

     99,850         5,827,246   

Boston Beer Co., Inc., The, Class A*

     54,150         5,579,075   

Fresh Market, Inc., The*

     110,497         6,377,887   

Herbalife, Ltd.

     113,410         5,487,910   

Hershey Co., The

     86,880         6,239,722   

McCormick & Co., Inc.

     102,670         6,308,045   

United Natural Foods, Inc.*

     47,300         2,718,804   

Whole Foods Market, Inc.

     56,070         5,424,773   

Total Consumer Staples

        43,963,462   

Energy—7.6%

  

Cabot Oil & Gas Corp.

     155,080         6,421,863   

Core Laboratories N.V.

     43,230         5,282,274   

FMC Technologies, Inc.*

     114,360         5,356,622   

HollyFrontier Corp.

     170,560         6,871,862   

Oceaneering International, Inc.

     117,900         6,312,366   

Oil States International, Inc.*

     54,980         4,301,635   

Whiting Petroleum Corp.*

     106,000         4,719,120   

Total Energy

        39,265,742   

Financials—7.5%

  

CBRE Group, Inc., Class A*

     206,540         3,575,207   

Huntington Bancshares, Inc.

     946,670         6,248,022   

Marsh & McLennan Cos., Inc.

     194,400         6,642,648   

People’s United Financial, Inc.

     306,770         3,672,037   

Signature Bank*

     100,000         6,463,000   
     Shares      Value  

T. Rowe Price Group, Inc.

     108,480       $ 6,665,011   

Taubman Centers, Inc.

     65,450         5,237,309   

Total Financials

        38,503,234   

Health Care—10.3%

  

Agilent Technologies, Inc.

     192,020         7,135,463   

AmerisourceBergen Corp.

     132,660         5,110,063   

Cooper Cos., Inc., The

     52,750         4,423,088   

Endo Health Solutions, Inc.*

     184,770         5,879,381   

Patterson Cos., Inc.

     151,160         5,134,905   

Salix Pharmaceuticals, Ltd.*

     56,810         2,497,368   

United Therapeutics Corp.*

     147,100         7,961,052   

Waters Corp.*

     82,410         6,608,458   

Watson Pharmaceuticals, Inc.*

     100,840         8,203,334   

Total Health Care

        52,953,112   

Industrials—10.8%

     

Joy Global, Inc.

     94,390         5,038,538   

Kansas City Southern

     93,530         7,232,675   

KBR, Inc.

     157,560         4,268,300   

Kirby Corp.*

     95,350         5,020,178   

Pall Corp.

     96,830         5,375,033   

Roper Industries, Inc.

     29,910         3,074,449   

TransDigm Group, Inc.*

     41,670         5,776,295   

Valmont Industries, Inc.

     49,300         6,248,775   

Wabtec Corp.

     90,760         7,091,986   

Waste Connections, Inc.

     225,960         6,541,542   

Total Industrials

        55,667,771   

Information Technology—23.7%

  

Alliance Data Systems Corp.*

     49,520         6,816,428   

Altera Corp.

     78,210         2,919,579   

Amphenol Corp., Class A

     102,840         6,259,871   

Avnet, Inc.*

     160,240         5,161,330   

Bankrate, Inc.*

     303,608         5,215,985   

Cadence Design Systems, Inc.*

     529,640         6,991,248   

F5 Networks, Inc.*

     71,970         7,016,355   

Fortinet, Inc.*

     256,980         6,812,540   

Fusion-io, Inc.*

     243,530         6,823,711   

Gartner, Inc.*

     80,720         3,986,761   

Intuit, Inc.

     159,240         9,321,910   

LSI Corp.*

     410,670         3,199,119   

Maxim Integrated Products, Inc.

     188,920         5,127,289   

MICROS Systems, Inc.*

     104,170         5,277,252   

NCR Corp.*

     255,290         5,715,943   

Red Hat, Inc.*

     141,980         7,956,559   

SolarWinds, Inc.*

     94,030         5,160,366   

Teradata Corp.*

     109,140         8,336,113   

TIBCO Software, Inc.*

     215,980         6,462,122   
 

 

4


Managers Cadence Mid-Cap Fund

Schedule of Portfolio Investments (continued)

 

     Shares      Value  

Information Technology—23.7%
(continued)

   

Trimble Navigation, Ltd.*

     140,670       $ 6,899,864   

Total Information Technology

        121,460,345   

Materials—6.1%

  

Airgas, Inc.

     71,580         5,946,151   

Ball Corp.

     117,980         4,975,217   

CF Industries Holdings, Inc.

     30,920         6,400,749   

Crown Holdings, Inc.*

     149,120         5,405,600   

Rockwood Holdings, Inc.

     108,670         5,144,438   

Sherwin-Williams Co., The

     22,660         3,242,193   

Total Materials

        31,114,348   
     Shares      Value  

Telecommunication Services—1.4%

  

Crown Castle International Corp.*

     111,400       $ 7,069,444   

Total Common Stocks
(cost $458,433,112)

        508,442,381   

Other Investment Companies—2.0%1

  

Dreyfus Cash Management Fund, Institutional Class Shares, 0.08%
(cost $10,120,596)

     10,120,596         10,120,596   

Total Investment—101%
(cost $468,553,708)

        518,562,977   

Other Assets, less Liabilities—(1.1)%

  

     (5,819,088

Net Assets—100.0%

      $ 512,743,889   
 

 

5


Managers Cadence Emerging Companies Fund

Schedule of Portfolio Investments

August 31, 2012 (unaudited)

 

     Shares      Value  

Common Stocks—97.6%

     

Consumer Discretionary—13.5%

  

Amerigon, Inc.*

     25,750       $ 305,653   

Cache, Inc.*

     56,766         191,869   

Carrols Restaurant Group, Inc.*

     26,440         150,179   

Cavco Industries, Inc.*

     6,670         305,486   

Destination Maternity Corp.

     7,570         138,910   

Dorman Products, Inc.*

     6,620         195,158   

Drew Industries, Inc.*

     12,160         352,275   

Fiesta Restaurant Group, Inc.*

     26,440         424,626   

Gordmans Stores, Inc.*

     17,770         312,397   

Kona Grill, Inc.*

     49,780         424,623   

LIN TV Corp., Class A*

     82,314         333,372   

Lithia Motors, Inc., Class A

     13,030         380,606   

Nexstar Broadcasting Group, Inc., Class A*

     31,250         270,625   

Peet’s Coffee & Tea, Inc.*

     3,470         255,045   

ReachLocal, Inc.*

     25,753         323,715   

Total Consumer Discretionary

        4,364,539   

Consumer Staples—5.0%

  

Inventure Foods, Inc.*

     47,720         286,797   

J&J Snack Foods Corp.

     5,440         310,624   

Pantry, Inc., The*

     22,400         314,048   

Prestige Brands Holdings, Inc.*

     24,050         386,243   

Schiff Nutrition International, Inc.*

     17,100         329,688   

Total Consumer Staples

        1,627,400   

Energy—6.9%

  

Double Eagle Petroleum Co.*

     50,390         224,236   

Gulf Island Fabrication, Inc.

     11,010         286,480   

Matrix Service Co.*

     24,630         287,186   

Mitcham Industries, Inc.*

     13,290         203,337   

OYO Geospace Corp.*

     3,390         310,490   

RigNet, Inc.*

     19,890         353,246   

Triangle Petroleum Corp.*

     44,900         308,463   

Willbros Group, Inc.*

     53,050         259,945   

Total Energy

        2,233,383   

Financials—8.1%

  

BofI Holding, Inc.*

     16,690         393,050   

Bryn Mawr Bank Corp.

     16,070         353,379   

Epoch Holding Corp.

     13,040         274,622   

HFF, Inc., Class A*

     10,950         145,635   

Marlin Business Services Corp.

     27,198         449,855   

Virtus Investment Partners, Inc.*

     4,130         353,693   

West Coast Bancorp*

     16,510         328,879   

Wilshire Bancorp, Inc.*

     49,660         310,872   

Total Financials

        2,609,985   

Health Care—24.4%

  

Affymax, Inc.*

     9,770         172,831   

 

     Shares      Value  

AMN Healthcare Services, Inc.*

     50,570       $ 424,788   

Arqule, Inc.*

     21,560         112,974   

Auxilium Pharmaceuticals, Inc.*

     8,520         198,516   

BioScrip, Inc.*

     51,200         435,200   

Conceptus, Inc.*

     17,820         338,758   

Cumberland Pharmaceuticals, Inc.*

     34,060         204,360   

Cynosure, Inc., Class A*

     6,520         169,520   

Derma Sciences, Inc.*

     45,300         429,444   

Dusa Pharmaceuticals, Inc.*

     56,270         301,045   

Ensign Group, Inc., The

     12,220         359,757   

Immunomedics, Inc.*

     66,050         222,589   

National Research Corp.

     6,129         304,979   

Omnicell, Inc.*

     26,440         379,678   

OraSure Technologies, Inc.*

     37,810         367,135   

Pacira Pharmaceuticals, Inc.*

     16,350         296,916   

Palomar Medical Technologies, Inc.*

     45,230         395,763   

Pernix Therapeutics Holdings*

     34,970         228,704   

Quidel Corp.*

     16,917         274,732   

Raptor Pharmaceutical Corp.*

     52,940         263,112   

Rigel Pharmaceuticals, Inc.*

     27,320         254,622   

RTI Biologics, Inc.*

     104,770         400,221   

Spectranetics Corp.*

     25,830         313,576   

Synergetics USA, Inc.*

     70,620         361,574   

Trius Therapeutics, Inc.*

     64,620         358,641   

US Physical Therapy, Inc.

     12,340         320,470   

Total Health Care

        7,889,905   

Industrials—10.5%

  

Apogee Enterprises, Inc.

     24,780         391,524   

Astronics Corp.*

     10,924         305,872   

CDI Corp.

     18,830         310,130   

Ceco Environmental Corp.

     29,179         276,617   

Flow International Corp.*

     142,100         468,930   

GP Strategies Corp.*

     16,032         321,442   

H&E Equipment Services, Inc.

     22,930         405,861   

Hudson Technologies, Inc.*

     70,040         252,844   

Mueller Water Products, Inc., Class A

     40,370         154,617   

Quality Distribution, Inc.*

     14,818         144,179   

Roadrunner Transportation Systems, Inc.*

     19,820         346,454   

Total Industrials

        3,378,470   

Information Technology—24.2%

  

Alliance Fiber Optic Products, Inc.*

     42,663         389,940   

CalAmp Corp.*

     52,940         402,344   

ClickSoftware Technologies, Ltd.

     42,950         344,029   

Computer Task Group, Inc.*

     21,250         340,000   

Datalink Corp.*

     31,560         263,526   

Deltek, Inc.*

     29,810         385,741   

Electro Scientific Industries, Inc.

     29,620         363,141   
 

 

6


Managers Cadence Emerging Companies Fund

Schedule of Portfolio Investments (continued)

 

     Shares      Value  

Information Technology—24.2%
(continued)

   

Ellie Mae, Inc.*

     12,140       $ 312,848   

Guidance Software, Inc.*

     37,980         398,410   

Inphi Corp.*

     28,810         342,263   

Internap Network Services Corp.*

     43,010         309,672   

IXYS Corp.*

     31,770         309,122   

Lionbridge Technologies, Inc.*

     75,270         264,198   

LRAD Corp.*

     143,888         161,155   

Monotype Imaging Holdings, Inc.

     20,680         312,061   

Move, Inc.*

     45,150         351,267   

OCZ Technology Group, Inc.*

     23,800         134,708   

Oplink Communications, Inc.*

     24,090         387,126   

Procera Networks, Inc.*

     15,850         335,862   

PROS Holdings, Inc.*

     23,370         403,834   

SciQuest, Inc.*

     27,470         462,870   

Silicon Image, Inc.*

     36,480         172,550   

SPS Commerce, Inc.*

     11,720         409,614   

Web.com Group, Inc.*

     15,840         263,736   

Total Information Technology

        7,820,017   
     Shares      Value  

Materials—3.0%

  

Horsehead Holding Corp.*

     38,450       $ 339,898   

OMNOVA Solutions, Inc.*

     35,499         276,537   

Universal Stainless & Alloy*

     9,620         345,358   

Total Materials

        961,793   

Telecommunication Services—2.0%

  

Boingo Wireless, Inc.*

     39,650         289,842   

magicJack VocalTec Ltd.*

     14,840         366,103   

Total Telecommunication Services

        655,945   

Total Common Stocks
(cost $30,196,314)

        31,541,437   

Other Investment Companies—3.4%1

  

Dreyfus Cash Management Fund, Institutional Class Shares, 0.08%
(cost $1,085,454)

     1,085,454         1,085,454   

Total Investments—101.0%
(cost $31,281,768)

   

     32,626,891   

Other Assets, less Liabilities—(1.0)%

  

     (314,269

Net Assets—100.0%

      $ 32,312,622   
 

 

7


Notes to Schedule of Portfolio Investments (unaudited)

The following footnotes should be read in conjunction with each of the Schedules of Portfolio Investments previously presented in this report.

At August 31, 2012, the approximate cost of investments for Federal income tax purposes and the gross aggregate unrealized appreciation and/or depreciation based on tax cost were:

 

Fund

   Cost      Appreciation      Depreciation     Net  

Managers Cadence Capital Appreciation Fund

   $ 421,268,744       $ 31,969,846       $ (18,232,497   $ 13,737,349   

Managers Cadence Focused Growth Fund

     8,262,791         749,276         (260,173     489,103   

Managers Cadence Mid-Cap Fund

     471,378,191         62,565,954         (15,381,168     47,184,786   

Managers Cadence Emerging Companies Fund

     31,595,877         3,227,310         (2,196,296     1,031,014   

 

* Non-income-producing security.
1 

Yield shown represents the August 31, 2012, seven-day average yield, which refers to the sum of the previous seven days’ dividends paid, expressed as an annual percentage.

Fair Value Measurements

Generally Accepted Accounting Principles (“U.S. GAAP”) defines fair value as the price that a Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP also establishes a framework for measuring fair value, and a three level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Funds. Unobservable inputs reflect the Funds’ own assumptions about the assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation.

The three-tier hierarchy of inputs is summarized below:

Level 1—inputs are quoted prices in active markets for identical investments (e.g., equity securities, open-end investment companies)

Level 2—other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs) (e.g., debt securities, government securities, foreign securities utilizing international fair value pricing, broker-quoted securities, fair valued securities with observable inputs)

Level 3—significant unobservable inputs (including the Fund’s own assumptions used to determine the fair value of investments) (e.g., fair valued securities with unobservable inputs)

Changes in inputs or methodologies used for valuing investments may result in a transfer in or out of levels within the fair value hierarchy. Transfers between different levels in the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments.

As of August 31, 2012, the investments in Managers Cadence Capital Appreciation Fund, Managers Cadence Focused Growth Fund, Managers Cadence Mid-Cap Fund and Managers Cadence Emerging Companies Fund were all Level 1 inputs. For a detailed break-out of the common stocks by major industry classification, please refer to the respective Schedule of Portfolio Investments previously presented in this report. As of August 31, 2012, the Funds had no transfers between levels from the beginning of the reporting period.

 

8


Item 2. Controls and Procedures.

 

(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3 (c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15 (b)).

 

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940 are attached as Exhibit 99.CERT


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.

 

THE MANAGERS FUNDS
By:   /s/ Keitha L. Kinne
  Keitha L. Kinne, President

Date: October 16, 2012

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/ Keitha L. Kinne
  Keitha L. Kinne, President

Date: October 16, 2012

 

By:   /s/ Donald S. Rumery
  Donald S. Rumery, Chief Financial Officer

Date: October 16, 2012