N-Q 1 sparrownq201901.htm UNITED STATES

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: 811-08897


SPARROW FUNDS

(Exact Name of Registrant as Specified in Charter)


211 N. Broadway, Ste. 2080, St. Louis, MO  63102

 (Address of Principal Executive Offices, Zip Code)



Mutual Shareholder Services

8000 Town Centre Drive, Suite 400

Broadview Heights, OH  44147
(Name and Address of Agent for Service)


Registrant's Telephone Number, including Area Code: (314) 725-6161

 

Date of fiscal year end:  08/31


Date of reporting period: 11/30/2018

8

Form N-Q is to be used by management investment companies, other than small business investment

companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

 

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

Item 1. Schedule of Investments.




 

 

 

 

 

 

 

 

 

 

 Sparrow Growth Fund

 

 

 

 

 

 

Schedule of Investments

 

 

 

 

 

 

 November 30, 2018 (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

 Fair Value

 

 

 

 

 

 

 

 

 

COMMON STOCKS - 100.14%

 

 

 

 

 

 

 

 

 

 

 

Arrangment of Transportation of Freight & Fargo - 0.78%

 

 

 

 

14,840

 

Cryoport, Inc. *

$           160,569

 

 

 

 

 

 

 

 

 

 

Biological Products (No Diagnostic Substances) - 1.68%

 

 

 

 

3,450

 

Acceleron Pharma, Inc. *

236,597

 

 

 

1,230

 

Neurocrine Biosciences, Inc. *

108,572

 

 

 

 

 

 

345,169

 

 

 

Business Services - 1.03%

 

 

 

 

1,320

 

Alibaba Group Holding LTD. *

212,335

 

 

 

 

 

 

 

 

 

 

Cable & Other Pay Television Services- 0.60%

 

 

 

 

3,050

 

Roku, Inc. *

124,287

 

 

 

 

 

 

 

 

 

 

Computer Communications Equipment - 0.81%

 

 

 

 

700

 

Arista Networks, Inc.*

166,936

 

 

 

 

 

 

 

 

 

 

Computer Peripheral Equipment, NEC - 0.33%

 

 

 

 

7,150

 

Mitek systems, Inc.*

68,426

 

 

 

 

 

 

 

 

 

 

Computer Storage Devices - 0.66%

 

 

 

 

7,230

 

Pure Storage, Inc. Class A*

136,719

 

 

 

 

 

 

 

 

 

 

Electromedical & Electrotherapeutic - 1.67%

 

 

 

 

5,250

 

Axogen, Inc. *

175,770

 

 

 

5,000

 

Biolife Solutions, Inc. *

167,580

 

 

 

 

 

 

343,350

 

 

 

Finance Services - 1.40%

 

 

 

 

3,450

 

Green Dot Corp. *

287,523

 

 

 

 

 

 

 

 

 

 

Hospital & Medical Service Plans - 0.78%

 

 

 

 

5,350

 

Trupanion, Inc.*

            160,126

 

 

 

 

 

 

 

 

 

 

Hotels and Motels - 1.45%

 

 

 

 

6,800

 

El Dorado Resorts Inc.*

            299,064

 

 

 

 

 

 

 

 

 

 

In Vitro & In Vivo Diagnostic Substances- 0.69%

 

 

 

 

7,100

 

Immunomdics, Inc. *

142,639

 

 

 

 

 

 

 

 

 

 

Industrial Organic Chemicals - 1.26%

 

 

 

 

11,810

 

Codexis, Inc. *

258,875

 

 

 

 

 

 

 

 

 

 

Insurance Agents Brokers & Services - 0.65%

 

 

 

 

5,550

 

Goosehead Insurance, Inc. *

141,081

 

 

 

3,640

 

Health Insurance Innovations, Inc. *

134,025

 

 

 

 

 

 

275,106

 

 

 

Laboratory Analytical Instruments - 0.64%

 

 

 

 

8,860

 

Accelerant Diagnostics, Inc. *

130,862

 

 

 

 

 

 

 

 

 

 

Loan Brokers - 1.10%

 

 

 

 

870

 

LendingTree, Inc. *

             226,496

 

 

 

 

 

 

 

 

 

 

Medicinal Chemicals & Botanical Products - 1.04%

 

 

 

 

6,370

 

Canopy Growth Corp. *

213,714

 

 

 

1,400

 

Tilray, Inc. *

143,430

 

 

 

 

 

 

357,144

 

 

 

Motor Vehicles & Passanger Car Bodies - 1.35%

 

 

 

 

790

 

Tesla, Inc. *

276,879

 

 

 

 

 

 

 

 

 

 

Orthopedic, Prosthetic & Surgical Appliances & Supplies - 0.88%

 

 

 

 

790

 

Align Technology, Inc. *

181,613

 

 

 

9,520

 

Sientra, Inc. *

161,840

 

 

 

 

 

 

343,453

 

 

 

Pharmaceutical Preparations- 14.42%

 

 

 

 

11,260

 

Acadia Pharmaceuticals, Inc. *

214,616

 

 

 

7,015

 

Adamas Pharmaceuticals, Inc. *

71,834

 

 

 

11,875

 

Amicus Therapeutics, Inc. *

130,106

 

 

 

1,640

 

Ani Pharmaceuticals, Inc. *

91,168

 

 

 

7,240

 

Akcea Therapeutics, Inc. *

245,364

 

 

 

4,045

 

Clovis Oncology, Inc. *

69,614

 

 

 

5,890

 

Collegium Pharmaceutical, Inc. *

113,029

 

 

 

15,695

 

Corcept Therapeutics, Inc. *

218,631

 

 

 

7,760

 

Flexion Therapeutics, Inc. *

126,565

 

 

 

920

 

GW Pharmaceuticals, Plc. *

113,178

 

 

 

5,540

 

Heron Therapeutics, Inc. *

159,164

 

 

 

7,100

 

Portola Pharmaceuticals, Inc.

155,135

 

 

 

5,680

 

PTC Therapeutics, Inc. *

201,754

 

 

 

4,120

 

Puma Biotechnology, Inc. *

95,749

 

 

 

11,060

 

Radius Health, Inc. *

184,370

 

 

 

1,710

 

Sarepta Therapeutics, Inc. *

221,394

 

 

 

2,700

 

Supernus Pharmaceuticals, Inc. *

128,034

 

 

 

2,230

 

Tesaro, Inc. *

103,427

 

 

 

2,955

 

Ultragenyx Pharmaceutical, Inc. *

158,595

 

 

 

905

 

Vertex Pharmaceuticals, Inc. *

163,615

 

 

 

 

 

 

2,965,342

 

 

 

Pharmaceuticals - 1.26%

 

 

 

 

2,345

 

Intercept Pharmaceuticas, Inc. *

260,084

 

 

 

 

 

 

 

 

 

 

Retail-Auto Dealers & Gasoline Stations - 1.39%

 

 

 

 

6,585

 

Carvana Co.*

285,065

 

 

 

 

 

 

 

 

 

 

Retail-Catalog & Mail-Order Houses - 4.00%

 

 

 

 

405

 

Amazon.com, Inc.*

684,519

 

 

 

1,305

 

Wayfair, Inc.*

138,591

 

 

 

 

 

 

823,110

 

 

 

Semiconductors & Related Devices - 0.69%

 

 

 

 

870

 

NVIDA Corporation

142,184

 

 

 

 

 

 

 

 

 

 

Services - Advertising - 0.86%

 

 

 

 

10,130

 

ANGI Homeservices, Inc. *

177,579

 

 

 

 

 

 

 

 

 

 

Services-Business Services, NEC - 10.58%

 

 

 

 

11,200

 

EXP World Holdings, Inc. *

121,520

 

 

 

2,550

 

GrubHub Inc.*

199,639

 

 

 

1,265

 

Healthquity, Inc.*

112,193

 

 

 

880

 

Mastercard, Inc.

176,942

 

 

 

5,680

 

PayPal Holdings, Inc.*

487,401

 

 

 

1,051

 

Stamps.com, Inc. *

             180,204

 

 

 

7,445

 

Tabula Rasa Healthcare, Inc.*

561,949

 

 

 

1,275

 

Visa, Inc.

180,680

 

 

 

4,270

 

Zillow Group, Inc. *

154,702

 

 

 

 

 

 

2,175,230

 

 

 

Services-Commercial Physical & Biological - 2.59%

 

 

 

 

3,075

 

Exact Sciences Corp.*

239,788

 

 

 

5,950

 

Exelixis, Inc.*

120,845

 

 

 

1,480

 

PRA Health Sciences, Inc. *

172,775

 

 

 

 

 

 

533,408

 

 

 

Services-Computer Intergrated Systems Design - 0.65%

 

 

 

 

                     2,830

 

EBIX. Inc.

133,633

 

 

 

 

 

 

 

 

 

 

Services-Computer Processing & Data Prep - 4.65%

 

 

 

 

                     4,070

 

CarGurus, Inc. *

158,364

 

 

 

                     1,240

 

Proofpoint, Inc. *

120,292

 

 

 

2,930

 

RingCentral, Inc. *

242,897

 

 

 

                     1,100

 

Workday, Inc. *

             180,400

 

 

 

                     6,400

 

Yext, Inc. *

               92,928

 

 

 

                     2,710

 

Zendesk, Inc. *

             161,055

 

 

 

 

 

 

             955,936

 

 

 

Services-Computer Programming Services- 0.17%

 

 

 

 

                     3,930

 

Zscaler, Inc. *

154,292

 

 

 

 

 

 

 

 

 

 

Services-Computer Programming, Data Processing- 5.05%

 

 

 

 

                        150

 

Alphabet, Inc. *

166,447

 

 

 

                     2,125

 

Facebook, Inc.*

298,796

 

 

 

                     5,250

 

SNAP, Inc. Class A *

34,178

 

 

 

                     3,240

 

Pluralsight, Inc. *

78,052

 

 

 

2,045

 

The Trade Desk, Inc. *

             291,310

 

 

 

                     1,795

 

Wix.com Ltd.*

             169,053

 

 

 

 

 

 

1,037,836

 

 

 

Services-Motion Picture & Video Game Production - 0.53%

 

 

 

 

                     8,310

 

GAIA, Inc. *

108,362

 

 

 

 

 

 

 

 

 

 

Services-Medical Laboratories - 0.78%

 

 

 

 

                     5,500

 

CraeDx, Inc. *

160,985

 

 

 

 

 

 

 

 

 

 

Services-Offices & Clinics of Doctors of Medicine - 1.04%

 

 

 

 

                     3,425

 

Teladoc, Inc.*

213,891

 

 

 

 

 

 

 

 

 

 

Services-Prepackaged Software - 19.20%

 

 

 

 

2,280

 

2U, Inc.*

133,129

 

 

 

780

 

Adobe Systems, Inc.*

195,694

 

 

 

3,740

 

Alteryx, Inc. *

225,073

 

 

 

3,300

 

AppFolio, Inc.*

202,257

 

 

 

3,590

 

Blackline, Inc. *

153,903

 

 

 

3,340

 

Coupa Software, Inc. *

215,196

 

 

 

3,150

 

DocuSign, Inc. *

131,544

 

 

 

5,300

 

Evolent Health, Inc.*

136,210

 

 

 

7,025

 

Hortonworths, Inc. *

113,103

 

 

 

1,440

 

Hubspot, Inc. *

200,203

 

 

 

3,850

 

Instructure, Inc.*

145,415

 

 

 

1,375

 

MongoDB, Inc.

113,988

 

 

 

1,290

 

New Relic, Inc. *

112,475

 

 

 

3,810

 

Okta, Inc. *

242,507

 

 

 

1,665

 

Paycom Software, Inc.*

221,062

 

 

 

1,745

 

Paylocity Holding Corp.*

117,055

 

 

 

925

 

Salesforce.com, Inc. *

132,053

 

 

 

1,025

 

ServiceNow, Inc*

189,902

 

 

 

1,390

 

Shopify, Inc.*

212,197

 

 

 

2,380

 

ShotSpotter, Inc. *

90,654

 

 

 

7,060

 

Smartsheet, Inc. *

189,914

 

 

 

4,875

 

Square, Inc. *

340,470

 

 

 

1,080

 

Twilio, Inc. *

102,049

 

 

 

1,775

 

Zuora, Inc. *

33,778

 

 

 

 

 

 

3,949,831

 

 

 

Services-Specialty Outpatient Facilities - 1.39%

 

 

 

 

                     4,020

 

BioTelemetry, Inc. *

285,179

 

 

 

 

 

 

 

 

 

 

Services-Video Tape Rental - 2.77%

 

 

 

 

                     1,990

 

Netflix, Inc. *

569,399

 

 

 

 

 

 

 

 

 

 

Surety Insurance - 0.38%

 

 

 

 

                     3,960

 

NMI Holdings, Inc. *

77,378

 

 

 

 

 

 

 

 

 

 

Surgical & Medical Instruments & Apparatus - 6.18%

 

 

 

 

                        810

 

ABIOMED*

        269,471

 

 

 

                     2,260

 

IRADIMED Corp. *

        65,043

 

 

 

                     2,725

 

iRythm Technologies, Inc.*

        201,868

 

 

 

                     5,800

 

Novocure Ltd.*

        199,056

 

 

 

                     4,010

 

Tactile Systems Technology, Inc. *

        225,522

 

 

 

                     8,425

 

Tandem Diabetes Care, Inc. *

        310,209

 

 

 

 

 

 

        1,271,169

 

 

 

 

 

 

 

 

 

 

TOTAL FOR COMMON STOCKS (Cost $15,937,751) - 100.13%

       20,595,851

 

   

 

 

 

 

 

 

 

TOTAL INVESTMENTS (Cost $15,937,751) - 100.13% ***

        20,595,851

 

 

    

 

 

 

 

 

 

LIABILITIES IN EXCESS OF OTHER ASSETS  - (0.13%)

            (26,457)

 

 

 

 

 

 

 

 

 

NET ASSETS - 100.00%

$      20,567,162

 

 

 

 

 

 

 

 

 

 

* Non-income producing security during the period

 

 

 

 

** Variable rate security; the coupon rate shown represents the yield at November 30, 2018.

 

 

 

 

*** At November 30, 2018, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $15,937,751 amounted to $4,658,100, which consisted of aggregate gross unrealized appreciation of $6,326,684 and aggregate gross unrealized depreciation of $1,668,584.

 

 

 

 

 

 

 

 

 

 

NOTES TO FINANCIAL STATEMENTS

 

 

 

 

Sparrow Growth Fund

 

 

 

 

1. SECURITY TRANSACTIONS

 

 

 

 

At November 30, 2018, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $15,937,751 amounted to $4,658,100, which consisted of aggregate gross unrealized appreciation of $6,326,684 and aggregate gross unrealized depreciation of $1,668,584.

 

 

 

 

 

 

 

 

2. SECURITY VALUATIONS

 

 

 

 

As described in Note 2, all investments in securities are recorded at their estimated fair value. The Fund utilizes various methods to measure the fair value of most of its investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of inputs are:

 

 

 

 

 

 

 

 

Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.

 

 

 

 

 

 

 

 

Level 2 - Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

 

 

 

 

 

 

 

 

Level 3 - Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuating the asset or liability, and would be based on the best information available.

 

 

 

 

 

 

 

 

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in level 3.

 

 

 

 

 

 

 

 

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

 

 

 

 

 

 

 

 

Valuation Inputs of Assets

 

Level 1

Level 2

Level 3

Total

 

Common Stock

 

$20,595,851

              $0

              $0

$20,595,851

 

Total

 

$20,595,851

       $0

       $0

$20,595,851






Item 2. Controls and Procedures.

 

(a)       EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Registrant maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Registrant's filings under the Securities Exchange Act of 1934 and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant's management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant's management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.


Within 90 days prior to the filing date of this Quarterly Schedule of Portfolio Holdings on Form N-Q, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant's management, including the Registrant's principal executive officer and the Registrant's principal financial officer, of the effectiveness of the design and operation of the Registrant's disclosure controls and procedures. Based on such evaluation, the Registrant's principal executive officer and principal financial officer concluded that the Registrant's disclosure controls and procedures are effective.

 

(b)       CHANGES IN INTERNAL CONTROLS. There have been no significant changes in the Registrant's internal controls or in other factors that could significantly affect the internal controls subsequent to the date of their evaluation in connection with the preparation of this Quarterly Schedule of Portfolio Holdings on Form N-Q.


 

Item 3. Exhibits.

 

Certifications by the registrant's principal executive officer and principal financial officer, pursuant to the Sarbanes- Oxley Act of 2002 and required by Rule 30a-2a under the Investment Company Act of 1940 are filed herewith.

 

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.

 

Registrant

Sparrow Funds

 

By:    *Gerald Sparrow

          Gerald Sparrow, President

 

Date

1/28/2019

 

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:    *Gerald Sparrow

          Gerald Sparrow, President and Treasurer

 

Date

1/28/2019