N-Q 1 d74330_n-q.htm QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS

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 811-8031

 

Seligman Value Fund Series, Inc.

(Exact name of Registrant as specified in charter)

 

100 Park Avenue

New York, New York 10017

(Address of principal executive offices) (Zip code)

 

Lawrence P. Vogel

100 Park Avenue

New York, New York 10017

(Name and address of agent for service)

 

Registrant’s telephone number, including area code: (212) 850-1864

 

Date of fiscal year end: 12/31

 

Date of reporting period: 3/31/08

 


 

FORM N-Q

 

ITEM 1. SCHEDULE OF INVESTMENTS.

 

Seligman Value Fund Series, Inc.

Schedules of Investments (unaudited)

March 31, 2008

Seligman Large-Cap Value Fund


Shares or
Principal
Amount

  Value
 
Common Stocks 99.9%                
Aerospace and Defense 5.7%                
Honeywell International       125,000    shs.   $ 7,052,500  
United Technologies       100,000     6,882,000  

              13,934,500  

Capital Markets 4.5%                
Bank of New York Mellon       160,000     6,676,800  
Morgan Stanley       90,000     4,113,000  

              10,789,800  

Chemicals 7.1%                
E. I. du Pont de Nemours       140,000     6,546,400  
Praxair       70,000     5,896,100  
Rohm and Haas       90,000     4,867,200  

              17,309,700  

Commercial Banks 3.3%                
U.S. Bancorp       245,000     7,928,200  

Communications Equipment 3.0%                
Juniper Networks*       290,000     7,250,000  

Computers and Peripherals 2.2%                
Seagate Technology       257,000     5,381,580  

Diversified Financial Services 5.8%                
Bank of America       200,000     7,582,000  
JPMorgan Chase       150,000     6,442,500  

              14,024,500  

Food and Staples Retailing 2.9%                
Costco Wholesale       110,000     7,146,700  

Food Products 3.3%                
Kraft Foods (Class A)       94,202     2,921,204  
Tyson Foods (Class A)       320,000     5,104,000  

              8,025,204  

Health Care Equipment and Supplies 5.3%                
Baxter International       120,000     6,938,400  
Medtronic       124,000     5,997,880  

              12,936,280  

Health Care Providers and Services 2.9%                
Humana*       158,500     7,110,310  

Independent Power Producers and Energy Traders 5.4%                
AES*       400,000     6,668,000  
Dynegy (Class A)*       800,000     6,312,000  

              12,980,000  

Industrial Conglomerates 3.1%                
General Electric       200,000     7,402,000  

Insurance 12.1%                
MetLife       105,000     6,327,300  
Prudential Financial       70,000     5,477,500  
Travelers       135,000     6,459,750  
Unum Group       500,000     11,005,000  

              29,269,550  

Internet Software and Services 1.9%                
Symantec*       275,000     4,570,500  

IT Services 2.9%                
Amdocs*       250,000     7,090,000  

Machinery 3.2%                
Caterpillar       100,000     7,829,000  

Multiline Retail 2.2%                
J.C. Penney       140,000     5,279,400  

Oil, Gas and Consumable Fuels 10.8%                
Chevron       80,000     6,828,800  
Marathon Oil       140,000     6,384,000  
Valero Energy       125,000     6,138,750  
Williams Companies       210,000     6,925,800  

              26,277,350  

Road and Rail 6.1%                
CSX       140,000     7,849,800  
Union Pacific       55,000     6,895,900  

              14,745,700  

Specialty Retail 3.2%                
The Gap       400,000     7,872,000  

Tobacco 3.0%                
Altria Group       100,000     2,220,000  
Philip Morris International*       100,000     5,058,000  

              7,278,000  

Total Common Stocks             242,430,274  

Short-Term Holding 0.8%                
Repurchase Agreement 0.8%                
Fixed Income Clearing Corporation, 1.8%, dated 3/31/08,
maturing 4/1/08, in the amount of $2,042,102, collateralized by:
$2,090,000 Federal Home Loan Bank 3.6%, 1/29/2010, with a
fair market value of $2,105,675
    $ 2,042,000     2,042,000  

                 
Total Investments 100.7%             244,472,274  
                 
Other Assets Less Liabilities (0.7)%             (1,798,530 )

Net Assets 100.0%           $ 242,673,744  




 

Seligman Smaller-Cap Value Fund


Shares or
Principal
Amount

  Value
 
Common Stocks 99.8%                
Aerospace and Defense 3.4%                
Cubic       280,000   shs. $ 7,960,400  

Airlines 1.6%                
Continental Airlines (Class B)*       190,000     3,653,700  

Beverages 4.0%                
Central European Distribution*       160,000     9,310,400  

Chemicals 6.1%                
Hercules       420,000     7,681,800  
Minerals Technologies       105,000     6,594,000  

              14,275,800  

Commercial Services and Supplies 10.0%                
Brink’s       90,000     6,046,200  
Korn/Ferry International*       300,000     5,070,000  
School Specialty*       165,000     5,204,100  
Waste Connections*       230,000     7,070,200  

              23,390,500  

Communications Equipment 1.7%                
F5 Networks*       220,000     3,997,400  

Computers and Peripherals 1.4%                
Hypercom*       770,000     3,341,800  

Construction and Engineering 2.8%                
Shaw Group*       140,000     6,599,600  

Containers and Packaging 4.4%                
Owens-Illinois*       180,000     10,157,400  

Diversified Consumer Services 2.5%                
Sotheby’s Holdings       200,000     5,782,000  

Electrical Equipment 6.4%                
Belden       115,000     4,061,800  
EnerSys*       330,000     7,893,600  
Thomas & Betts*       80,000     2,909,600  

              14,865,000  

Electronic Equipment and Instruments 2.8%                
Trimble Navigation*       230,000     6,575,700  

Energy Equipment and Services 5.8%                
Exterran Holdings*       130,000     8,390,200  
TETRA Technologies*       320,000     5,068,800  

13,459,000

Health Care Providers and Services 2.5%                
WellCare Health Plans*       149,034     5,804,874  

Health Care Technology 1.7%                
Eclipsys*       200,000     3,922,000  

Hotels, Restaurants and Leisure 3.6%                
Panera Bread (Class A)*       45,000     1,885,050  
Penn National Gaming*       150,000     6,559,500  

              8,444,550  

Insurance 13.0%                
Aspen Insurance Holdings       265,000     6,990,700  
Endurance Specialty Holdings       180,000     6,588,000  
Hanover Insurance Group       140,000     5,759,600  
Infinity Property and Casualty       130,000     5,408,000  
W.R. Berkley       200,000     5,538,000  

              30,284,300  

IT Services 2.7%                
CACI International (Class A)*       140,000     6,377,000  

Machinery 2.4%                
Mueller Industries       190,000     5,481,500  

Multiline Retail 2.0%                
Fred’s (Class A)       450,000     4,612,500  

Personal Products 2.7%                
Herbalife       130,000     6,175,000  

Pharmaceuticals 1.7%                
Par Pharmaceutical*       230,000     3,999,700  

Real Estate Investment Trusts 1.5%                
FelCor Lodging Trust       300,000     3,609,000  

Road and Rail 0.7%                
Dollar Thrifty Automative Group*       125,000     1,705,000  

Semiconductors and Semiconductor Equipment 5.5%                
Cypress Semiconductor*       330,000     7,791,300  
Varian Semiconductor Equipment Associates*       175,000     4,926,250  

              12,717,550  

Software 5.2%                
Lawson Software*       680,000     5,120,400  
Quest Software*       530,000     6,927,100  

              12,047,500  

Specialty Retail 1.7%                
Pacific Sunwear of California*       320,000     4,035,200  

Total Common Stocks             232,584,374  

Short-Term Holding 0.6%                
Repurchase Agreement 0.6%                
Fixed Income Clearing Corporation, 1.8%, dated 3/31/08,
maturing 4/1/08, in the amount of $1,410,071, collateralized by:
$1,375,000 Federal Home Loan Bank 5.435%, 12/20/2022,
with a fair market value of $1,457,500
    $ 1,410,000     1,410,000  

                 
Total Investments 100.4%             233,994,374  
                 
Other Assets Less Liabilities (0.4)%             (825,263 )

Net Assets 100.0%           $ 233,169,111  


* Non-income producing security.

At March 31, 2008, the cost of investments for federal income tax purposes and the tax basis gross and net unrealized appreciation and depreciation of portfolio securities were as follows:


Fund     Tax Basis Cost   Gross Unrealized
Appreciation
  Gross Unrealized
Depreciation
  Net Unrealized
Appreciation

Large-Cap Value Fund     $ 200,109,710   $ 53,281,321   $ (8,918,757 ) $ 44,362,564
Smaller-Cap Value Fund       191,516,376     70,732,983     (28,254,985 )   42,477,998




Seligman Value Fund Series, Inc.

Notes to Schedules of Investments (unaudited)

March 31, 2008

 

Organization : — Seligman Value Fund Series, Inc. consists of two separate funds: Seligman Large-Cap Value Fund (“Large-Cap Value Fund”) and Seligman Smaller-Cap Value Fund (“Smaller-Cap Value Fund”) (collectively, the “Funds”).

 

Security Valuation — Securities traded on an exchange are valued at the last sales price on the primary exchange or market on which they are traded. Securities not listed on an exchange or security market, or securities for which there is no last sales price, are valued at the mean of the most recent bid and asked prices or are valued by J. & W. Seligman & Co. Incorporated (Manager of the Funds) based on quotations provided by primary market makers in such securities. Securities for which market quotations are not readily available (or are otherwise no longer valid or reliable) are valued at fair value determined in accordance with procedures approved by the Board of Directors. This can occur in the event of, among other things, natural disasters, acts of terrorism, market disruptions, intra-day trading halts, and extreme market volatility. The determination of fair value involves subjective judgments. As a result, using fair value to price a security may result in a price materially different from the prices used by other mutual funds to determine net asset value or the price that may be realized upon the actual sale of the security. Short-term holdings maturing in 60 days or less are valued at current market quotations or amortized cost if the Manager believes it approximates fair value. Short-term holdings that mature in more than 60 days are valued at current market quotations until the 60th day prior to maturity and are then valued as described above for securities maturing in 60 days or less.

 

Fair Value Measurement - On January 1, 2008, the Funds adopted Statement of Financial Accounting Standards No. 157 (“SFAS 157”), “Fair Value Measurements.” SFAS 157 establishes a three-tier hierarchy to classify the assumptions, referred to as inputs, used in valuation techniques (see Security Valuation above) to measure fair value of the Funds’ investments. These inputs are summarized in three broad levels: Level 1 – quoted prices in active markets for identical investments; Level 2 – other significant observable inputs (including quoted prices in inactive markets or for similar investments); and Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining fair value). The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities.

 

The following is a summary of the value of the Funds’ investments as of March 31, 2008 based on the level of inputs used:     

 

Valuation Inputs Large-Cap
Value Fund
  Smaller-Cap
Value Fund



Level 1 - Quoted Prices     $ 242,430,274   $ 232,584,374
Level 2 - Other Significant Observable Inputs       2,042,000     1,410,000
Level 3 - Significant Unobservable Inputs       0     0


             Total     $ 244,472,274   $ 233,994,374


 

Risk — A portfolio with fewer holdings may be subject to greater volatility than a portfolio with a greater number of holdings. To the extent that either Fund invests a substantial percentage of its assets in an industry, that Fund’s performance may be negatively affected if that industry falls out of favor. Stocks of large capitalization or smaller capitalization companies have at times experienced periods of volatility and negative performance. During such periods, the value of such stocks may decline and the performance of a Fund investing in such companies may be negatively affected.

 

 

 



 

ITEM 2. CONTROLS AND PROCEDURES.

 

 

a.

The registrant’s principal executive officer and principal financial officer have concluded, based upon their evaluation of the registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures provide reasonable assurance that material information required to be disclosed by the registrant in the report it files or submits on Form N-Q is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms and that such material information is accumulated and communicated to the registrant’s management, including its principal executive officer and principal financial officer, as appropriate, in order to allow timely decisions regarding required disclosure.

 

 

b.

The registrant’s principal executive officer and principal financial officer are aware of no changes in the registrant’s internal control over financial reporting 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.

 

 

(a)

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

 


 

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.

 

SELIGMAN VALUE FUND SERIES, INC.

 

 

By:

/S/ BRIAN T. ZINO

 

Brian T. Zino

 

President and Chief Executive Officer

 

Date:

May 27, 2008

 

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 in the capacities and on the dates indicated.

 

 

By:

/S/ BRIAN T. ZINO

 

Brian T. Zino

 

President and Chief Executive Officer

 

Date:

May 27, 2008

 

 

 

By:

/S/ LAWRENCE P. VOGEL

 

Lawrence P. Vogel

 

Vice President, Treasurer and Chief Financial Officer

 

Date:

May 27, 2008

 

 

 

 

 

 

 

 

 


 

SELIGMAN VALUE FUND SERIES, INC.

 

EXHIBIT INDEX