N-Q 1 jacobint_nq.htm QUARTERLY NOTICE OF PORTFOLIO HOLDINGS jacobint_nq.htm
As filed with the Securities and Exchange Commission on July 30, 2008



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 811-09447



Jacob Internet Fund Inc.
(Exact name of registrant as specified in charter)



c/o Jacob Asset Management of New York LLC
507 Paseo de la Playa
Redondo Beach, CA 90277
(Address of principal executive offices) (Zip code)



Ryan Jacob
c/o Jacob Asset Management of New York LLC
507 Paseo de la Playa
Redondo Beach, CA 90277
(Name and address of agent for service)



(310) 421-4942
Registrant's telephone number, including area code



Date of fiscal year end: August 31


Date of reporting period:  May 31, 2008
 
Item 1. Schedule of Investments.
Jacob Internet Fund
      
Schedule of Investments
    
May 31, 2008 (Unaudited)
    
         
Shares
      
Value
   
COMMON STOCKS - 85.4%
    
   
Internet - Commerce - 15.0%
    
              687,641
  
Autobytel Inc. *
$
1,148,361
                18,000
  
Ctrip.com International Ltd. - ADR^
  
1,050,840
                34,021
  
Digital River, Inc. *
  
1,362,881
                20,000
  
eBay Inc. *
  
600,200
                24,000
  
Greenfield Online, Inc. *
  
305,760
                  1,000
  
Monster Worldwide Inc. *
  
24,690
           1,326,899
  
Napster Inc. *
  
2,056,693
              120,000
  
Shutterfly, Inc. *(a)
  
1,729,200
       
8,278,625
   
Internet - Communications - 11.4%
    
              492,000
  
Earthlink, Inc. *
  
4,723,200
              805,653
  
Openwave Systems Inc.
  
1,595,193
       
6,318,393
   
Internet - Infrastructure - 21.0%
    
                  1,000
  
Adobe Systems Incorporated *
  
44,060
                  9,000
  
Apple Computer, Inc. *
  
1,698,750
                44,000
  
Broadcom Corporation - Class A *
  
1,262,360
              454,513
  
CDC Corporation - Class A *^
  
1,536,254
                72,900
  
Novell, Inc. *
  
516,132
                30,000
  
Red Hat, Inc. *(a)
  
730,800
                70,000
  
SanDisk Corporation *
  
1,981,700
                50,000
  
Sigma Designs, Inc. *(a)
  
925,000
              262,401
  
SiRF Technology Holdings, Inc. *
  
1,907,655
              100,000
  
Sonic Solutions *(a)
  
960,000
       
11,562,711
   
Internet - Media Content - 38.0%
    
                  1,000
  
Baidu.com, Inc. - ADR *^
  
345,060
                71,878
  
CNET Networks, Inc. *(a)
  
823,003
                  1,000
  
Electronic Arts Inc. *(a)
  
50,200
                  3,200
  
Google Inc. *(a)
  
1,874,560
              831,932
  
Hollywood Media Corp. *
  
1,996,637
              969,161
  
KIT Digital, Inc. *
  
271,365
                11,249
  
Rediff.com India Limited - ADR *^
  
83,805
                32,000
  
SINA Corp *^
  
1,704,640
                21,750
  
Sohu.com Inc. *^(a)
  
1,903,560
              895,672
  
SourceForge, Inc. *
  
1,397,249
              213,368
  
Take-Two Interactive Software, Inc. *
  
5,775,872
              100,000
  
Tencent Holdings Limited (HK)^
  
844,374
                25,200
  
The Knot, Inc. *
  
292,572
              109,247
  
TheStreet.com
  
843,387
              101,874
  
Yahoo! Inc. *(a)
  
2,726,148
       
20,932,432
   
TOTAL COMMON STOCKS (Cost $53,159,231)
  
47,092,161
 
 
Jacob Internet Fund
      
Schedule of Investments
    
May 31, 2008 (Unaudited), Continued
    
         
Shares/Principal
        
Amount
      
Value
   
SHORT TERM INVESTMENTS - 15.6%
    
   
Money Market Funds - 14.2%
    
 $        2,546,997
  
Dreyfus Treasury Prime Cash Management
$
2,546,997
           2,545,403
  
Fidelity Institutional Treasury Only Portfolio
  
2,545,403
           2,533,764
  
First American US Treasury Money Market Fund
  
2,533,764
              210,461
  
Goldman Sachs Financial Square Funds - Treasury Instruments Fund
  
210,461
       
7,836,625
         
   
U.S. Treasury Bill - 1.4%
    
              747,000
  
0.27%, 06/19/2008
  
746,893
   
TOTAL SHORT TERM INVESTMENTS (Cost $8,583,518)
  
8,583,518
         
   
INVESTMENTS PURCHASED WITH CASH
    
   
PROCEEDS FROM SECURITIES LENDING - 10.9%
    
   
Commercial Paper - 3.0%
    
           1,139,966
  
KKR Atlantic Funding Trust, 2.73%, Due 03/25/09
  
1,013,237
              919,547
  
Ottimo Funding LLC, 2.63%, Due 10/30/08
  
649,759
   
Total Commercial Paper
  
1,662,996
         
   
Money Market Mutual Fund - 0.3%
    
              156,316
  
AIM Short-Term Liquid Assets Portfolio-Institutional Class
  
156,316
   
Total Money Market Mutual Fund
  
156,316
         
         
   
Repurchase Agreement - 7.6%
    
           4,200,000
  
Merrill Lynch, 2.35%, Dated 05/30/08, Due 06/02/08,
    
   
(Collateralized by conventional loan pools.
    
   
Repurchase Proceeds are $ 4,200,823)
  
4,200,000
   
Total Repurchase Agreement
  
4,200,000
   
TOTAL INVESTMENTS PURCHASED WITH CASH
    
   
PROCEEDS FROM SECURITIES LENDING (Cost $6,415,829)
  
6,019,312
   
TOTAL INVESTMENTS (Cost $68,158,578) - 111.9%
  
61,694,991
   
LIABILITIES LESS OTHER ASSETS - (11.9)%
  
(6,579,801)
   
TOTAL NET ASSETS - 100.0%
$
55,115,190
         
         
*
Non Income Producing.
    
^
Foreign Security.
    
ADR
American Depository Receipt.
    
(a)
All or portion of shares are on loan.
    
HK
Security denominated in Hong Kong dollars.  Value translated into U.S. dollars.
  
         
 
The cost basis of investments for federal income tax purposes at May 31, 2008 was as follows*:

Cost of investments
$
68,158,578
    
Gross unrealized appreciation
  
11,597,005
    
Gross unrealized depreciation
  
(18,060,592
)
  
Net unrealized depreciation
$
(6,463,587
)
  

*Because tax adjustments are calculated annually, the above table does not reflect tax adjustments.  For the previous fiscal year’s federal income tax information, please refer to the Notes to Financial Statements section in the Fund’s most recent semi-annual or annual report.


FAS 157 - Summary of Fair Value Exposure at May 31, 2008
 
The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal
year.  SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for
identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable.
 
 
The following is a summary of the inputs used to value the Fund's net assets as of May 31, 2008:
 
Description
Investments in Securities
Other Financial Instruments *
      
Level 1 - Quoted prices
 $    55,085,102
 $                     —
          
Level 2 - Other significant observable inputs
         4,946,893
                        —
          
Level 3 - Significant unobservable inputs
         1,662,996
                        —
          
Total
 $    61,694,991
 $                     —
          
               
 
Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value.
  
               
 
Investments in Securities
Other Financial Instruments
      
Balance as of 2/29/08
 $      1,876,147
 $                     —
          
          Accrued discounts / premiums
                        —
                        —
          
          Realized gain (loss)
                        —
                        —
          
          Change in unrealized appreciation (depreciation)
           (132,589)
                        —
          
          Net purchases (sales/paydowns)
             (80,562)
                        —
          
          Transfers in and / or out of Level 3 *
                        —
                        —
          
Balance as of 05/31/08
 $      1,662,996
 $                     —
          
               
 
* The information used in the above reconciliation represents fiscal year to date activity for any Investment Securities identified as using Level 3 inputs at either the beginning
or end of the current fiscal period.  Transfers in or out of Level 3 represents either the beginning value (for transfers in) or ending value (for transfers out) of any Security or
Instrument where a change in the pricing level occurred from the beginning to the end of the period.
 
 
 
 
 
 
 
Item 2. Controls and Procedures.
 
(a)  
The Registrant’s principal executive officer/President and principal financial officer/Treasurer have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934.  Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider.

(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) that occurred during the Registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.


 
Item 3. Exhibits.
 
Separate certifications for each principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)).  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)   Jacob Internet Fund Inc.                      

By (Signature and Title)   /s/Ryan Jacob                  
Ryan Jacob, President

Date   July 30, 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 and in the capacities and on the dates indicated.

By (Signature and Title)   /s/Ryan Jacob                   
Ryan Jacob, President

Date   July 30, 2008                                                      

By (Signature and Title)   /s/Francis Alexander        
Francis Alexander, Treasurer

Date   July 30, 2008