N-Q 1 d781797dnq.htm ALLIANCEBERNSTEIN CORE OPPORTUNITIES FUND, INC. AllianceBernstein Core Opportunities Fund, Inc.

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS

OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-09687

 

 

ALLIANCEBERNSTEIN CORE OPPORTUNITIES FUND, INC.

(Exact name of registrant as specified in charter)

 

 

1345 Avenue of the Americas, New York, New York 10105

(Address of principal executive offices) (Zip code)

 

 

Joseph J. Mantineo

AllianceBernstein L.P.

1345 Avenue of the Americas

New York, New York 10105

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: (800) 221-5672

Date of fiscal year end: November 30, 2014

Date of reporting period: August 31, 2014

 

 

 


ITEM 1. SCHEDULE OF INVESTMENTS.


AllianceBernstein Core Opportunities Fund

Portfolio of Investments

August 31, 2014 (unaudited)

 

Company

   Shares      U.S. $ Value  

COMMON STOCKS – 86.3%

     

Health Care – 19.8%

     

Biotechnology – 6.1%

     

Biogen Idec, Inc.(a)

     10,623       $ 3,644,114   

Gilead Sciences, Inc.(a)

     53,010         5,702,816   
     

 

 

 
        9,346,930   
     

 

 

 

Health Care Equipment & Supplies – 2.4%

     

Abbott Laboratories

     55,280         2,335,027   

Medtronic, Inc.

     21,250         1,356,813   
     

 

 

 
        3,691,840   
     

 

 

 

Health Care Providers & Services – 2.8%

     

UnitedHealth Group, Inc.

     49,540         4,294,127   
     

 

 

 

Pharmaceuticals – 8.5%

     

Allergan, Inc./United States

     37,020         6,059,433   

Eli Lilly & Co.

     44,250         2,812,530   

Pfizer, Inc.

     140,340         4,124,593   
     

 

 

 
        12,996,556   
     

 

 

 
        30,329,453   
     

 

 

 

Information Technology – 16.6%

     

Communications Equipment – 1.0%

     

F5 Networks, Inc.(a)

     11,920         1,480,345   
     

 

 

 

Electronic Equipment, Instruments & Components – 2.4%

     

Amphenol Corp. - Class A

     12,810         1,319,558   

TE Connectivity Ltd.

     38,370         2,405,032   
     

 

 

 
        3,724,590   
     

 

 

 

Internet Software & Services – 2.0%

     

Google, Inc. - Class C(a)

     5,320         3,040,912   
     

 

 

 

IT Services – 3.5%

     

Visa, Inc. - Class A

     18,380         3,906,117   

Xerox Corp.

     98,190         1,356,004   
     

 

 

 
        5,262,121   
     

 

 

 

Semiconductors & Semiconductor Equipment – 2.8%

     

Linear Technology Corp.

     29,900         1,348,789   

NVIDIA Corp.

     75,690         1,472,171   

NXP Semiconductor NV(a)

     22,160         1,518,403   
     

 

 

 
        4,339,363   
     

 

 

 

Software – 1.6%

     

Activision Blizzard, Inc.

     60,020         1,412,871   

Aspen Technology, Inc.(a)

     26,556         1,091,186   
     

 

 

 
        2,504,057   
     

 

 

 

Technology Hardware, Storage & Peripherals – 3.3%

     

Apple, Inc.

     48,585         4,979,962   
     

 

 

 
        25,331,350   
     

 

 

 


Company

   Shares      U.S. $ Value  

Consumer Discretionary – 14.6%

     

Hotels, Restaurants & Leisure – 0.9%

     

Wyndham Worldwide Corp.

     17,750       $ 1,436,685   
     

 

 

 

Internet & Catalog Retail – 2.5%

     

Liberty Interactive Corp. - Class A(a)

     48,232         1,423,808   

Priceline Group, Inc. (The)(a)

     1,970         2,451,291   
     

 

 

 
        3,875,099   
     

 

 

 

Leisure Products – 0.8%

     

Polaris Industries, Inc.

     8,070         1,173,217   
     

 

 

 

Media – 8.6%

     

Comcast Corp. - Class A

     99,240         5,431,405   

Scripps Networks Interactive, Inc. - Class A

     13,770         1,097,607   

Time Warner Cable, Inc. - Class A

     19,530         2,889,073   

Time Warner, Inc.

     15,910         1,225,547   

Viacom, Inc. - Class B

     13,890         1,127,173   

Walt Disney Co. (The)

     15,020         1,349,998   
     

 

 

 
        13,120,803   
     

 

 

 

Specialty Retail – 1.8%

     

Home Depot, Inc. (The)

     29,920         2,797,520   
     

 

 

 
        22,403,324   
     

 

 

 

Financials – 11.0%

     

Banks – 1.9%

     

Wells Fargo & Co.

     56,480         2,905,331   
     

 

 

 

Capital Markets – 1.6%

     

BlackRock, Inc. - Class A

     7,250         2,396,343   
     

 

 

 

Diversified Financial Services – 4.8%

     

Berkshire Hathaway, Inc. - Class B(a)

     53,560         7,351,110   
     

 

 

 

Insurance – 2.7%

     

ACE Ltd.

     26,750         2,844,327   

Allstate Corp. (The)

     21,140         1,299,899   
     

 

 

 
        4,144,226   
     

 

 

 
        16,797,010   
     

 

 

 

Industrials – 9.1%

     

Aerospace & Defense – 3.3%

     

Boeing Co. (The)

     18,510         2,347,068   

Raytheon Co.

     27,850         2,683,069   
     

 

 

 
        5,030,137   
     

 

 

 

Airlines – 3.2%

     

Copa Holdings SA - Class A

     28,500         3,504,930   

Delta Air Lines, Inc.

     35,310         1,397,570   
     

 

 

 
        4,902,500   
     

 

 

 

Electrical Equipment – 1.7%

     

AMETEK, Inc.

     49,400         2,615,236   
     

 

 

 

Industrial Conglomerates – 0.9%

     

Danaher Corp.

     17,840         1,366,722   
     

 

 

 

 


Company

   Shares      U.S. $ Value  
      $ 13,914,595   
     

 

 

 

Consumer Staples – 6.7%

     

Beverages – 1.5%

     

Monster Beverage Corp.(a)

     26,410         2,334,908   
     

 

 

 

Food & Staples Retailing – 2.9%

     

CVS Caremark Corp.

     56,300         4,473,035   
     

 

 

 

Tobacco – 2.3%

     

Philip Morris International, Inc.

     39,950         3,418,921   
     

 

 

 
        10,226,864   
     

 

 

 

Energy – 5.6%

     

Energy Equipment & Services – 3.5%

     

Cameron International Corp.(a)

     37,690         2,801,498   

Schlumberger Ltd.

     23,420         2,567,769   
     

 

 

 
        5,369,267   
     

 

 

 

Oil, Gas & Consumable Fuels – 2.1%

     

Hess Corp.

     8,800         889,680   

Marathon Oil Corp.

     53,520         2,231,249   
     

 

 

 
        3,120,929   
     

 

 

 
        8,490,196   
     

 

 

 

Telecommunication Services – 2.9%

     

Diversified Telecommunication Services – 2.9%

     

Verizon Communications, Inc.

     89,200         4,443,944   
     

 

 

 

Total Common Stocks
(cost $104,297,703)

        131,936,736   
     

 

 

 

SHORT-TERM INVESTMENTS – 10.7%

     

Investment Companies – 10.7%

     

AllianceBernstein Fixed-Income Shares, Inc. -
Government STIF Portfolio, 0.07%(b) (c)
(cost $16,389,737)

     16,389,737         16,389,737   
     

 

 

 

Total Investments – 97.0%
(cost $120,687,440)(d)

        148,326,473   

Other assets less liabilities – 3.0%

        4,610,290   
     

 

 

 

Net Assets – 100.0%

      $ 152,936,763   
     

 

 

 

 

(a) Non-income producing security.
(b) To obtain a copy of the fund’s financial statements, please go to the Securities and Exchange Commission’s website at www.sec.gov, or call AllianceBernstein at (800) 227-4618.
(c) Investment in affiliated money market mutual fund. The rate shown represents the 7-day yield as of period end.
(d) As of August 31, 2014, the cost basis of investment securities owned was substantially identical for both book and tax purposes. Gross unrealized appreciation of investments was $28,269,764 and gross unrealized depreciation of investments was $(630,731), resulting in net unrealized appreciation of $27,639,033.


Please note: The sector classifications presented herein are based on the Global Industry Classification Standard (GICS) which was developed by Morgan Stanley Capital International and Standard & Poor’s. The components are divided into sector, industry group, and industry sub-indices as classified by the GICS for each of the market capitalization indices in the broad market.


AllianceBernstein Core Opportunities Fund

August 31, 2014 (unaudited)

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the 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 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 (including those valued based on their market values). 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 Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability 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 - quoted prices in active markets for identical investments

 

    Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

 

    Level 3 - significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

Where readily available market prices or relevant bid prices are not available for certain equity investments, such investments may be valued based on similar publicly traded investments, movements in relevant indices since last available prices or based upon underlying company fundamentals and comparable company data (such as multiples to earnings or other multiples to equity). Where an investment is valued using an observable input, by pricing vendors, such as another publicly traded security, the investment will be classified as Level 2. If management determines that an adjustment is appropriate based on restrictions on resale, illiquidity or uncertainty, and such adjustment is a significant component of the valuation, the investment will be classified as Level 3. An investment will also be classified as Level 3 where management uses company fundamentals and other significant inputs to determine the valuation.

The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of August 31, 2014:

 

Investments in Securities:

   Level 1      Level 2      Level 3      Total  

Assets:

           

Common Stocks*

   $ 131,936,736       $ —         $ —         $ 131,936,736   

Short-Term Investments

     16,389,737         —           —           16,389,737   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Investments in Securities

     148,326,473         —           —           148,326,473   

Other Financial Instruments**

     —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total+

   $ 148,326,473       $ —         $ —         $ 148,326,473   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

* See Portfolio of Investments for sector classifications.
** Other financial instruments are derivative instruments, such as futures, forwards and swaps, which are valued at the unrealized appreciation/depreciation on the instrument.
+ There were no transfers between any levels during the reporting period.

The Fund recognizes all transfers between levels of the fair value hierarchy assuming the financial instruments were transferred at the beginning of the reporting period.

The Adviser has established a Valuation Committee (the “Committee”) which is responsible for overseeing the pricing and valuation of all securities held in the Fund. The Committee operates under pricing and valuation policies and procedures established by the Adviser and approved by the Board, including pricing policies which set forth the mechanisms and processes to be employed on a daily basis to implement these policies and procedures. In particular, the pricing policies describe how to determine market quotations for securities and other instruments. The Committee’s responsibilities include: 1) fair value and liquidity determinations (and oversight of any third parties to whom any responsibility for fair value and liquidity determinations is delegated), and 2) regular monitoring of the Adviser’s pricing and valuation policies and procedures and modification or enhancement of these policies and procedures (or recommendation of the modification of these policies and procedures) as the Committee believes appropriate.

The Committee is also responsible for monitoring the implementation of the pricing policies by the Adviser’s Pricing Group (the “Pricing Group”) and a third party which performs certain pricing functions in accordance with the pricing policies. The Pricing Group is responsible for the oversight of the third party on a day-to-day basis. The Committee and the Pricing Group perform a series of activities to provide reasonable assurance of the accuracy of prices including: 1) periodic vendor due diligence meetings, review of methodologies, new developments and process at vendors, 2) daily compare of security valuation versus prior day for all securities that exceeded established thresholds, and 3) daily review of unpriced, stale, and variance reports with exceptions reviewed by senior management and the Committee.


In addition, several processes outside of the pricing process are used to monitor valuation issues including: 1) performance and performance attribution reports are monitored for anomalous impacts based upon benchmark performance, and 2) portfolio managers review all portfolios for performance and analytics (which are generated using the Adviser’s prices).


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-3(c) under the Investment Company Act of 1940, as amended) are effective at the reasonable assurance level based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.

(b) There were no changes in the registrant’s internal controls over financial reporting that occurred during the second fiscal quarter of the period that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

ITEM 3. EXHIBITS.

The following exhibits are attached to this Form N-Q:

 

EXHIBIT
NO.

 

DESCRIPTION OF EXHIBIT

3 (a) (1)   Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
3 (a) (2)   Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002


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): AllianceBernstein Core Opportunities Fund, Inc.

 

By:  

/s/ Robert M. Keith

  Robert M. Keith
  President
Date:   October 21, 2014

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/ Robert M. Keith

  Robert M. Keith
  President
Date:   October 21, 2014

 

By:  

/s/ Joseph J. Mantineo

  Joseph J. Mantineo
  Treasurer and Chief Financial Officer
Date:   October 21, 2014