N-Q 1 t68179_nq.htm FORM N-Q t68179_nq.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file Number 811-02278
 
The Value Line Premier Growth Fund, Inc.
(Exact name of registrant as specified in charter)

220 East 42nd Street, New York, NY 10017

Mitchell E. Appel
(Name and address of agent for service)

Registrant’s telephone number, including area code:  212-907-1500

Date of fiscal year end: December 31

Date of reporting period: March 31, 2010
 

Item 1: Schedule of Investments.
A copy of Schedule of Investments for the period ended 3/31/10 is included with this Form.
  
 
 
 
 
Value Line Premier Growth Fund, Inc.
 
Schedule of Investments (unaudited)
March 31, 2010
 
Shares             Value  
COMMON STOCKS (93.4%)              
                     
     
CONSUMER DISCRETIONARY (10.2%)
              
                     
  50,250  
Aeropostale, Inc.  *
         $ 1,448,707  
  13,000  
Autoliv, Inc.  *
           669,890  
  8,400  
AutoZone, Inc.  *
           1,453,956  
  20,000  
Bed Bath & Beyond, Inc.  *
           875,200  
  32,000  
BorgWarner, Inc.  *
           1,221,760  
  18,300  
Brink’s Home Security Holdings, Inc.  *
           778,665  
  34,500  
Buckle, Inc. (The)
           1,268,220  
  15,100  
Central European Media Enterprises Ltd. Class A  *
           442,581  
  39,200  
Ctrip.com International Ltd. ADR *
           1,536,640  
  8,000  
Deckers Outdoor Corp.  *
           1,104,000  
  11,400  
DeVry, Inc.
           743,280  
  17,000  
DIRECTV Class A *
           574,770  
  7,000  
Gildan Activewear, Inc. Class A *
           184,030  
  46,000  
Guess?, Inc.
           2,161,080  
  16,000  
HSN, Inc.  *
           471,040  
  15,500  
ITT Educational Services, Inc.  *
           1,743,440  
  27,000  
Johnson Controls, Inc.
           890,730  
  11,000  
Lincoln Educational Services Corp.  *
           278,300  
  56,000  
LKQ Corp.  *
           1,136,800  
  29,000  
Lumber Liquidators Holdings, Inc.  *
           773,430  
  400  
National Presto Industries, Inc.
           47,564  
  18,000  
O’Reilly Automotive, Inc.  *
           750,780  
  30,000  
Phillips-Van Heusen Corp.
           1,720,800  
  6,000  
Priceline.com, Inc.  *
           1,530,000  
  46,000  
Shaw Communications, Inc. Class B
           914,020  
  27,000  
Signet Jewelers Ltd.  *
           873,180  
  6,700  
Strayer Education, Inc.
           1,631,584  
  34,300  
TJX Companies, Inc. (The)
           1,458,436  
  35,000  
Tupperware Brands Corp.
           1,687,700  
  26,500  
Warnaco Group, Inc. (The)  *
           1,264,315  
  29,000  
WMS Industries, Inc.  *
           1,216,260  
  34,000  
Yum! Brands, Inc.
           1,303,220  
                34,154,378  
                       
     
CONSUMER STAPLES (5.2%)
                
                       
  17,000  
BRF - Brasil Foods SA ADR
             933,980  
  17,000  
British American Tobacco PLC ADR
             1,171,300  
  24,200  
Church & Dwight Co., Inc.
             1,620,190  
  16,800  
Coca-Cola Femsa, S.A.B. de C.V. ADR
             1,116,360  
  29,000  
Companhia de Bebidas das Americas ADR
             2,658,140  
  94,000  
Cosan Ltd. Usd Class A *
             886,420  
  56,250  
Flowers Foods, Inc.
             1,391,625  
  20,000  
Fomento Economico Mexicano S.A.B. de C.V. ADR
             950,600  
  30,000  
Green Mountain Coffee Roasters, Inc.  *
             2,904,600  
  8,000  
Hansen Natural Corp.  *
             347,040  
  20,000  
Hormel Foods Corp.
             840,200  
  16,000  
Philip Morris International, Inc.
             834,560  
  32,000  
Ruddick Corp.
             1,012,480  
  22,000  
TreeHouse Foods, Inc.  *
             965,140  
                17,632,635  
                       
      ENERGY (7.0%)                
                       
  15,800  
BG Group PLC ADR
             1,370,650  
  16,000  
Bristow Group, Inc.  *
             603,680  
  8,600  
CNOOC Ltd. ADR
             1,419,688  
  19,000  
Concho Resources, Inc.  *
             956,840  
 
Shares             Value  
  10,500  
Core Laboratories N.V.
         $ 1,373,400  
  44,000  
FMC Technologies, Inc.  *
           2,843,720  
  22,200  
Forest Oil Corp.  *
           573,204  
  24,000  
Penn Virginia Corp.
           588,000  
  64,000  
Petroleo Brasileiro S.A. ADR
           2,847,360  
  30,000  
Quicksilver Resources, Inc.  *
           422,100  
  61,000  
Range Resources Corp.
           2,859,070  
  33,600  
Southern Union Co.
           852,432  
  70,000  
Southwestern Energy Co.  *
           2,850,400  
  38,000  
Suncor Energy, Inc.
           1,236,520  
  8,000  
Superior Energy Services, Inc.  *
           168,160  
  17,000  
Talisman Energy, Inc.
           290,020  
  32,000  
Tesoro Corp.
           444,800  
  26,000  
TransCanada Corp.
           955,760  
  31,000  
World Fuel Services Corp.
           825,840  
                23,481,644  
                       
      FINANCIALS (9.4%)                
                       
  12,000  
Affiliated Managers Group, Inc.  *
             948,000  
  20,600  
AFLAC, Inc.
             1,118,374  
  8,000  
American Financial Group, Inc.
             227,600  
  15,000  
Arch Capital Group Ltd.  *
             1,143,750  
  9,490  
AvalonBay Communities, Inc.
             819,462  
  69,909  
Banco Bilbao Vizcaya Argentaria, S.A. ADR
             957,054  
  60,000  
Banco Santander Central Hispano S.A. ADR
             796,200  
  5,500  
Banco Santander Chile S.A. ADR
             375,210  
  35,000  
Bancolombia S.A. ADR
             1,598,100  
  16,000  
Bank of Hawaii Corp.
             719,200  
  13,300  
Bank of Montreal
             807,310  
  22,100  
Bank of Nova Scotia
             1,105,442  
  10,700  
BlackRock, Inc.
             2,330,032  
  16,000  
BRE Properties, Inc.
             572,000  
  8,200  
Canadian Imperial Bank of Commerce
             598,600  
  12,000  
Credicorp Ltd.
             1,058,160  
  34,000  
Eaton Vance Corp.
             1,140,360  
  9,400  
Essex Property Trust, Inc.
             845,530  
  9,000  
Franklin Resources, Inc.
             998,100  
  6,200  
Goldman Sachs Group, Inc. (The)
             1,057,906  
  18,300  
HDFC Bank Ltd. ADR
             2,550,837  
  16,000  
ICICI Bank Ltd. ADR
             683,200  
  111,376  
Itau Unibanco Banco Multiplo S.A. ADR
             2,449,158  
  30,000  
MSCI, Inc. Class A *
             1,083,000  
  6,000  
Raymond James Financial, Inc.
             160,440  
  2,264  
Reinsurance Group of America, Inc.
             118,905  
  14,400  
Royal Bank of Canada
             840,240  
  12,000  
Stifel Financial Corp.  *
             645,000  
  24,000  
T. Rowe Price Group, Inc.
             1,318,320  
  8,000  
Taubman Centers, Inc.
             319,360  
  6,000  
Torchmark Corp.
             321,060  
  7,400  
Toronto-Dominion Bank (The)
             551,892  
  20,000  
U.S. Bancorp
             517,600  
  30,000  
Wells Fargo & Co.
             933,600  
                31,709,002  
                       
     
HEALTH CARE (17.2%)
                
                       
  22,000  
Acorda Therapeutics, Inc.  *
             752,400  
  56,000  
Alexion Pharmaceuticals, Inc.  *
             3,044,720  
  17,200  
Allergan, Inc.
             1,123,504  
  23,000  
Amedisys, Inc.  *
             1,270,060  
  21,000  
Auxilium Pharmaceuticals, Inc.  *
             654,360  
 
 
1
 
 
Value Line Premier Growth Fund, Inc.
 
 
March 31, 2010
 
Shares       Value  
  9,000  
Baxter International, Inc.
   $ 523,800  
  16,000  
Bayer AG ADR
     1,082,400  
  14,500  
Becton, Dickinson & Co.
     1,141,585  
  11,000  
Bio-Rad Laboratories, Inc. Class A *
     1,138,720  
  5,200  
Bio-Reference Labs, Inc.  *
     228,644  
  27,060  
Celgene Corp.  *
     1,676,638  
  11,000  
Cerner Corp.  *
     935,660  
  6,000  
Computer Programs & Systems, Inc.
     234,480  
  18,400  
Covance, Inc.  *
     1,129,576  
  19,400  
Covidien PLC
     975,432  
  23,000  
DENTSPLY International, Inc.
     801,550  
  13,000  
Edwards Lifesciences Corp.  *
     1,285,440  
  18,000  
Emergency Medical Services Corp. Class A *
     1,017,900  
  40,000  
Express Scripts, Inc.  *
     4,070,400  
  20,900  
Fresenius Medical Care AG & Co. KGaA ADR
     1,173,744  
  42,000  
Gilead Sciences, Inc.  *
     1,910,160  
  12,600  
Haemonetics Corp.  *
     720,090  
  56,000  
Henry Schein, Inc.  *
     3,298,400  
  18,000  
HMS Holdings Corp.  *
     917,820  
  24,000  
IDEXX Laboratories, Inc.  *
     1,381,200  
  51,200  
Illumina, Inc.  *
     1,991,680  
  17,000  
Intuitive Surgical, Inc.  *
     5,918,210  
  8,000  
Life Technologies Corp.  *
     418,160  
  20,000  
Masimo Corp.
     531,000  
  30,000  
Medco Health Solutions, Inc.  *
     1,936,800  
  8,400  
Mettler-Toledo International, Inc.  *
     917,280  
  17,800  
Novo Nordisk A/S ADR
     1,372,736  
  28,000  
NuVasive, Inc.  *
     1,265,600  
  19,000  
Owens & Minor, Inc.
     881,410  
  32,000  
Perrigo Co.
     1,879,040  
  4,800  
Quality Systems, Inc.
     294,912  
  8,000  
ResMed, Inc.  *
     509,200  
  4,000  
Sirona Dental Systems, Inc.  *
     152,120  
  12,000  
SXC Health Solutions Corp.  *
     807,360  
  12,000  
Techne Corp.
     764,280  
  23,000  
Teva Pharmaceutical Industries Ltd. ADR
     1,450,840  
  38,000  
Thermo Fisher Scientific, Inc.  *
     1,954,720  
  5,600  
United Therapeutics Corp.  *
     309,848  
  4,000  
Volcano Corp.  *
     96,640  
  30,000  
Warner Chilcott PLC Class A *
     766,500  
  22,400  
West Pharmaceutical Services, Inc.
     939,680  
            57,646,699  
               
     
INDUSTRIALS (20.3%)
        
               
  85,000  
ABB Ltd. ADR *
     1,856,400  
  24,300  
Acuity Brands, Inc.
     1,025,703  
  20,000  
Aecom Technology Corp.  *
     567,400  
  8,000  
Alliant Techsystems, Inc.  *
     650,400  
  7,200  
Ameron International Corp.
     452,808  
  33,000  
AMETEK, Inc.
     1,368,180  
  4,000  
Applied Signal Technology, Inc.
     78,320  
  20,600  
AZZ, Inc.
     697,310  
  4,600  
Barnes Group, Inc.
     89,470  
  36,000  
BE Aerospace, Inc.  *
     1,096,200  
  18,300  
Brink’s Co. (The)
     516,609  
  28,400  
Bucyrus International, Inc.
     1,874,116  
  30,000  
C.H. Robinson Worldwide, Inc.
     1,675,500  
  22,900  
Canadian National Railway Co.
     1,387,511  
  12,400  
Carlisle Companies, Inc.
     472,440  
 
Shares      
Value
  
  34,000  
CLARCOR, Inc.
   $ 1,172,660  
  23,200  
Cooper Industries PLC Class A
     1,112,208  
  27,000  
Copart, Inc.  *
     961,200  
  43,000  
Corrections Corp. of America  *
     853,980  
  23,300  
Curtiss-Wright Corp.
     810,840  
  16,000  
Danaher Corp.
     1,278,560  
  16,000  
Dollar Thrifty Automotive Group, Inc.  *
     514,080  
  19,000  
Donaldson Co., Inc.
     857,280  
  12,600  
Eaton Corp.
     954,702  
  40,000  
EMCOR Group, Inc.  *
     985,200  
  41,000  
EnerSys  *
     1,011,060  
  20,000  
Esterline Technologies Corp.  *
     988,600  
  18,000  
Flowserve Corp.
     1,984,860  
  13,000  
FTI Consulting, Inc.  *
     511,160  
  23,200  
Gardner Denver, Inc.
     1,021,728  
  36,000  
Geo Group, Inc. (The)  *
     713,520  
  6,000  
GeoEye, Inc.  *
     177,000  
  10,000  
Harbin Electric, Inc.  *
     215,900  
  33,000  
Hunt (J.B.) Transport Services, Inc.
     1,184,040  
  29,850  
IDEX Corp.
     988,035  
  22,600  
IHS, Inc. Class A  *
     1,208,422  
  17,200  
ITT Corp.
     922,092  
  21,000  
Kansas City Southern  *
     759,570  
  21,000  
Kaydon Corp.
     789,600  
  29,000  
Kirby Corp.  *
     1,106,350  
  12,500  
L-3 Communications Holdings, Inc.
     1,145,375  
  88,500  
Lan Airlines S.A. ADR
     1,562,025  
  31,500  
Lennox International, Inc.
     1,396,080  
  13,000  
Lincoln Electric Holdings, Inc.
     706,290  
  20,000  
Norfolk Southern Corp.
     1,117,800  
  15,000  
Northrop Grumman Corp.
     983,550  
  18,000  
Orbital Sciences Corp.  *
     342,180  
  10,000  
Oshkosh Corp.  *
     403,400  
  17,800  
Precision Castparts Corp.
     2,255,438  
  36,000  
Quanta Services, Inc.  *
     689,760  
  18,400  
Raytheon Co.
     1,051,008  
  6,000  
Regal-Beloit Corp.
     356,460  
  37,500  
Republic Services, Inc.
     1,088,250  
  34,000  
Robbins & Myers, Inc.
     809,880  
  36,000  
Rollins, Inc.
     780,480  
  26,000  
Roper Industries, Inc.
     1,503,840  
  48,700  
Rush Enterprises, Inc. Class A *
     643,327  
  20,000  
Stanley, Inc.  *
     565,800  
  36,600  
Stericycle, Inc.  *
     1,994,700  
  33,000  
Toro Co. (The)
     1,622,610  
  25,300  
Towers Watson & Co. Class A
     1,201,750  
  17,000  
TransDigm Group, Inc.
     901,680  
  17,000  
United Technologies Corp.
     1,251,370  
  43,369  
URS Corp.  *
     2,151,536  
  13,700  
Valmont Industries, Inc.
     1,134,771  
  12,600  
W.W. Grainger, Inc.
     1,362,312  
  16,000  
Wabtec Corp.
     673,920  
  20,800  
Waste Connections, Inc.  *
     706,368  
  24,000  
Woodward Governor Co.
     767,520  
            68,060,494  
               
     
INFORMATION TECHNOLOGY (12.3%)
        
               
  23,000  
Accenture PLC Class A
     964,850  
  28,000  
Acme Packet, Inc.  *
     539,840  
  46,000  
Activision Blizzard, Inc.
     554,760  
  40,800  
Amphenol Corp. Class A
     1,721,352  
 
 
2
 
 
Value Line Premier Growth Fund, Inc.
 
Schedule of Investments (unaudited)
 
 
Shares       Value  
  22,700  
Anixter International, Inc.  *
   $ 1,063,495  
  60,000  
ANSYS, Inc.  *
     2,588,400  
  12,000  
ArcSight, Inc.  *
     337,800  
  60,000  
Ariba, Inc.  *
     771,000  
  34,000  
Atheros Communications, Inc.  *
     1,316,140  
  20,400  
Blackboard, Inc.  *
     849,864  
  21,000  
Canon, Inc. ADR
     970,410  
  26,000  
Check Point Software Technologies Ltd.  *
     911,560  
  60,000  
Cognizant Technology Solutions Corp. Class A  *
     3,058,800  
  12,000  
Compellent Technologies, Inc.  *
     210,600  
  28,000  
Concur Technologies, Inc.  *
     1,148,280  
  38,000  
CyberSource Corp.  *
     670,320  
  24,600  
DG FastChannel, Inc.  *
     785,970  
  27,550  
Diodes, Inc.  *
     617,120  
  16,000  
Dolby Laboratories, Inc. Class A  *
     938,720  
  16,000  
Equinix, Inc.  *
     1,557,440  
  11,000  
FactSet Research Systems, Inc.
     807,070  
  3,000  
Google, Inc. Class A *
     1,701,030  
  40,000  
Informatica Corp.  *
     1,074,400  
  11,300  
Itron, Inc.  *
     820,041  
  9,300  
MasterCard, Inc. Class A
     2,362,200  
  37,200  
MICROS Systems, Inc.  *
     1,223,136  
  63,000  
Nuance Communications, Inc.  *
     1,048,320  
  4,000  
Open Text Corp.  *
     189,880  
  18,600  
Pegasystems, Inc.
     688,200  
  38,000  
Rackspace Hosting, Inc.  *
     711,740  
  30,000  
Salesforce.com, Inc.  *
     2,233,500  
  28,680  
Siliconware Precision Industries Co. ADR
     172,367  
  22,000  
Solera Holdings, Inc.
     850,300  
  21,000  
Sourcefire, Inc.  *
     481,950  
  44,000  
SuccessFactors, Inc.  *
     837,760  
  27,000  
Sybase, Inc.  *
     1,258,740  
  4,000  
SYNNEX Corp.  *
     118,240  
  8,000  
TeleCommunication Systems, Inc. Class A *
     58,640  
  8,000  
Telvent GIT SA Shs
     230,080  
  28,000  
Teradata Corp.  *
     808,920  
  30,000  
Trimble Navigation Ltd.  *
     861,600  
  16,000  
VanceInfo Technologies, Inc. ADR *
     356,640  
  14,000  
VistaPrint NV  *
     801,500  
            41,272,975  
               
     
MATERIALS (6.6%)
        
               
  21,000  
Agrium, Inc.
     1,483,230  
  15,000  
Air Products & Chemicals, Inc.
     1,109,250  
  29,000  
Airgas, Inc.
     1,844,980  
  44,000  
Albemarle Corp.
     1,875,720  
  30,700  
AptarGroup, Inc.
     1,208,045  
  7,000  
Ball Corp.
     373,660  
  14,000  
BASF AG ADR
     872,200  
  28,000  
Celanese Corp. Series A
     891,800  
  2,000  
Clearwater Paper Corp.  *
     98,500  
  16,000  
Cliffs Natural Resources, Inc.
     1,135,200  
  26,000  
Crown Holdings, Inc.  *
     700,960  
  24,570  
Fibria Celulose SA Global Depository Receipt *
     537,592  
 
Shares      
Value
  
  22,000  
FMC Corp.
   $ 1,331,880  
  16,500  
Greif, Inc. Class A
     906,180  
  17,000  
Mosaic Co. (The)
     1,033,090  
  9,000  
NewMarket Corp.
     926,910  
  30,000  
Praxair, Inc.
     2,490,000  
  12,000  
Schweitzer-Mauduit International, Inc.
     570,720  
  30,000  
Sigma-Aldrich Corp.
     1,609,800  
  18,800  
Syngenta AG ADR
     1,043,588  
        22,043,305  
               
     
TELECOMMUNICATION SERVICES (3.3%)
        
               
  7,000  
AboveNet, Inc.  *
     355,110  
  35,750  
American Tower Corp. Class A *
     1,523,308  
  10,837  
Brasil Telecom S.A. ADR  *
     91,789  
  19,103  
Brasil Telecom S.A. ADR Preferred Shares  *
     364,676  
  50,877  
Crown Castle International Corp.  *
     1,945,028  
  10,000  
Millicom International Cellular S.A.
     891,500  
  20,000  
Mobile TeleSystems ADR
     1,110,000  
  19,500  
Philippine Long Distance Telephone Co. ADR
     1,038,960  
  43,000  
SBA Communications Corp. Class A *
     1,551,010  
  11,700  
Telefonica S.A. ADR
     831,870  
  34,000  
Telefonos de Mexico S.A. de C.V. ADR
     530,400  
  52,300  
TW Telecom, Inc.  *
     949,245  
        11,182,896  
               
     
UTILITIES (1.9%)
        
               
  18,000  
AGL Resources, Inc.
     695,700  
  30,000  
Centrais Eletricas Brasileiras SA
     450,000  
  27,600  
Cia de Saneamento Basico do Estado de Sao Paulo ADR
     1,015,680  
  20,000  
EQT Corp.
     820,000  
  20,000  
ITC Holdings Corp.
     1,100,000  
  20,000  
Questar Corp.
     864,000  
  27,000  
Southern Co.
     895,320  
  13,400  
Wisconsin Energy Corp.
     662,094  
        6,502,794  
           
 
TOTAL COMMON STOCKS AND TOTAL INVESTMENT SECURITIES (1) (93.4%)
(Cost $215,376,716)
     313,686,822  
 
 
3
 
 
Value Line Premier Growth Fund, Inc.
 
 
March 31, 2010
 
Principal
Amount		      
Value
  
SHORT-TERM INVESTMENTS (6.5%)        
         
     
REPURCHASE AGREEMENTS (2) (6.5%)
        
               
$
21,700,000
  
With Morgan Stanley, 0.00%, dated 03/31/10, due 04/01/10, delivery value $21,700,000 (collateralized by $22,080,000 U.S. Treasury Notes 2.3750%, due 08/31/14, with a value of $22,182,825)
    
21,700,000
  
               
     
TOTAL SHORT-TERM INVESTMENTS (3)
(Cost $21,700,000) (6.5%)
    
21,700,000
  
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES (0.1%)    
454,221
  
NET ASSETS (4) (100%)  
$
335,841,043
  
NET ASSET VALUE OFFERING AND REDEMPTION PRICE, PER OUTSTANDING SHARE
    ($335,841,043 ÷ 14,487,974 shares outstanding)		  
$
23.18
  
 
*
Non-income producing.
(1)
Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs established by FASB ASC 820-10, Fair Value Measurement and Disclosures.
(2)
The Fund’s custodian takes possession of the underlying collateral securities, the value of which exceeds the principal amount of the repurchase transaction, including accrued interest.
(3)
Values determined based on Level 2 inputs established by FASB ASC 820-10, Fair Value Measurements and Disclosures.
(4)
For federal income tax purposes, the aggregate cost was $237,076,716, aggregate gross unrealized appreciation was $108,548,826, aggregate gross unrealized depreciation was $10,238,720 and the net unrealized appreciation was $98,310,106.
ADR
American Depositary Receipt.
 
 
4
 
 
In accordance with Financial Accounting Standards Board Accounting Standards Codification (FASB ASC 820-10), Fair Value Measurements and Disclosures, (formerly Statement of Financial Accounting Standards (“SFAS”) No. 157), the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (level 3 measurements). FASB ASC 820-10-35-39 to 55 provides three levels of the fair value hierarchy as follows:
 
●
Level 1: Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access at the measurement date;
 
●
Level 2: Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active;
 
●
Level 3: Inputs that are unobservable.
 
In April 2009, the Fund adopted the authoritative guidance included in FASB ASC 820-10, Fair Value Measurements and Disclosures, on determining fair value when the volume and level of activity for the asset or liability have significantly decreased and identifying transactions that are not orderly (formerly FSP FAS 157-4). FASB ASC 820-10-35-51A to 51H indicates that if an entity determines that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value. Valuation techniques such as an income approach might be appropriate to supplement or replace a market approach in those circumstances. It provides a list of factors to determine whether there has been a significant decrease in relation to normal market activity. Regardless, however, of the valuation technique and inputs used, the objective for the fair value measurement in those circumstances is unchanged from what it would be if markets were operating at normal activity levels and/or transactions were orderly; that is, to determine the current exit price as promulgated by FASB ASC 820-10. The guidance also requires additional disclosures regarding inputs and valuation techniques used, change in valuation techniques and related inputs, if any, and more disaggregated information relating to debt and equity securities.
 
Valuation techniques such as an income approach might be appropriate to supplement or replace a market approach in those circumstances. It provides a list of factors to determine whether there has been a significant decrease in relation to normal market activity. Regardless, however, of the valuation technique and inputs used, the objective for the fair value measurement in those circumstances is unchanged from what it would be if markets were operating at normal activity levels and/or transactions were orderly; that is, to determine the current exit price as promulgated by FASB ASC 820-10.
 
The following is a summary of the inputs used as of March 31, 2010 in valuing the Fund’s investments carried at value:
 
Investments in Securities:
 
  
Level 1
    
Level 2
    
Level 3
    
Total
  
Assets
                        
     Common Stocks
   $ 313,686,822     $ 0     $ 0     $ 313,686,822  
     Short Term Investments
     0       21,700,000       0       21,700,000  
                                 
     Total Investments in Securities
   $ 313,686,822     $ 21,700,000     $ 0     $ 335,386,822  
 
For the period ended March 31, 2010, there were no Level 3 investments. The types of inputs used to value each security are identified in the Schedule of Investments, which also includes a breakdown of the Schedule’s investments by category.
 
 
 
 
 
Item 2. Controls and Procedures.
(a)
The registrant’s principal executive officer and principal financial officer have concluded that the   registrant’s disclosure controls and procedures (as defined in rule 30a-2(c) under the Act (17 CFR 270.30a-2(c) ) based on their evaluation of these controls and procedures as of the date within 90 days of filing date of this report, are approximately designed to ensure that material information relating to the registrant is made known to such officers and are operating effectively.
   
(b)
The registrant’s principal executive officer and principal financial officer have determined that there have been no significant changes in the registrant’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including corrective actions with regard to significant deficiencies and material weaknesses.

Item 3. Exhibits:
(a)
Certifications of principal executive officer and principal financial officer of the registrant.
 
 
 
 
 
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.

By
/s/ Mitchell E. Appel
  
 
Mitchell E. Appel, President
  
     
Date:
May 28, 2010
  

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/ Mitchell E. Appel
  
 
Mitchell E. Appel, President, Principal Executive Officer
     
By:
/s/ Emily D. Washington
  
 
Emily D. Washington, Treasurer, Principal Financial Officer
     
Date:
May 28, 2010