N-Q 1 franknq.htm N-Q Filing

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: 811-21532


Frank Funds

(Exact Name of Registrant as Specified in Charter)


312 East 22nd Street, #2B, New York, NY  10010

 (Address of Principal Executive Offices)  (Zip Code)


Brian J. Frank, Frank Capital Partners LLC

312 East 22nd Street, #2B, New York, NY  10010

 (Name and Address of Agent for Service)


With copy to:

JoAnn M. Strasser, Thompson Hine LLP

312 Walnut Street, 14th Floor, Cincinnati, Ohio  45202


Registrant’s Telephone Number, including Area Code:  973-887-7698


Date of fiscal year end: June 30


Date of reporting period: March 31, 2014


Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (ss.ss. 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, and 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. ss. 3507.


ITEM 1. SCHEDULE OF INVESTMENTS.




 

Frank Value Fund

 

Schedule of Investments

 

March 31, 2014 (Unaudited)

 

 

 

 

 

 

 

 

Shares

 

 

 

 

Value

 

 

 

 

 

 

 

COMMON STOCKS - 81.56%

 

 

 

 

 

 

 

 

 

 

 

Arrangement of Transportation - 3.49%

 

 

 

 

67,957

 

Roadrunner Transportation Systems, Inc. *

 

 

$    1,715,235

 

 

 

 

 

 

 

 

Computer Communications Equipment - 2.57%

 

 

 

 

56,219

 

Cisco Systems, Inc.

 

 

1,260,149

 

 

 

 

 

 

 

 

Consumer Electronics - 3.27%

 

 

 

 

2,996

 

Apple, Inc.

 

 

1,608,073

 

 

 

 

 

 

 

 

Finance Services - 6.91%

 

 

 

 

85,734

 

Blackhawk Network Holdings, Inc. *

 

 

2,091,053

 

119,752

 

Janus Capital Group, Inc.

 

 

      1,301,704

 

 

 

 

 

 

      3,392,757

 

Fire, Marine & Casualty Insurance - 10.55%

 

 

 

 

20,969

 

Berkshire Hathaway, Inc. Class-B *

 

 

2,620,496

 

78,108

 

Greenlight Capital Reinsurance, Ltd. Class-A *

 

 

      2,561,942

 

 

 

 

 

 

      5,182,438

 

Gold & Silver Ores - 3.26%

 

 

 

 

65,302

 

Goldcorp.

 

 

1,598,593

 

 

 

 

 

 

 

 

Hospital & Medical Service Plans - 2.32%

 

 

 

 

17,901

 

Wellcare Healthplans, Inc. *

 

 

1,137,072

 

 

 

 

 

 

 

 

Leather & Leather Products - 3.46%

 

 

 

 

62,898

 

Vera Bradley, Inc. *

 

 

1,697,617

 

 

 

 

 

 

 

 

Pharmaceutical Preparations - 1.03%

 

 

 

 

8,834

 

Herbalife Ltd.

 

 

         505,923

 

 

 

 

 

 

 

 

Retail-Apparel & Accessory Stores - 2.73%

 

 

 

 

73,789

 

Francesca's Holdings Corp. *

 

 

1,338,532

 

 

 

 

 

 

 

 

Retail-Specialty Retail - 2.15%

 

 

 

 

33,756

 

CST Brands, Inc.

 

 

1,054,537

 

 

 

 

 

 

 

 

Retail-Food Stores - 2.87%

 

 

 

 

29,694

 

Vitamin Shoppe, Inc. *

 

 

1,411,059

 

 

 

 

 

 

 

 

Semiconductors & Related Devices - 2.78%

 

 

 

 

76,189

 

Nvidia Corp.

 

 

1,364,545

 

 

 

 

 

 

 

 

Services-Advertising  - 4.87%

 

 

 

 

138,831

 

News Corp.

 

 

2,390,670

 

 

 

 

 

 

 

 

Services-Business Services, NEC - 7.88%

 

 

 

 

91,933

 

Liquidity Services, Inc. *

 

 

2,394,855

 

90,441

 

RPX Corp. *

 

 

      1,472,379

 

 

 

 

 

 

      3,867,234

 

Services-Computer Integrated Systems Design - 1.70%

 

 

 

 

40,504

 

Science Applications International Corp.

 

 

1,514,445

 

49,314

 

Quality Systems, Inc.

 

 

         832,420

 

 

 

 

 

 

      2,346,865

 

Services-Computer Programming, Date Processing, ETC - 1.60%

 

 

 

 

26,791

 

Mantech International Corp.

 

 

787,923

 

 

 

 

 

 

 

 

Services-Educational Services - 3.02%

 

 

 

 

42,206

 

American Public Education, Inc. *

 

 

1,480,587

 

 

 

 

 

 

 

 

Services-Miscellaneous Business - 2.59%

 

 

 

 

140,724

 

Performant Financial Corp. *

 

 

1,273,552

 

 

 

 

 

 

 

 

Services-Prepackaged Software - 9.44%

 

 

 

 

68,119

 

Conversant, Inc. *

 

 

1,917,550

 

66,303

 

Microsoft Corp.

 

 

      2,717,760

 

 

 

 

 

 

      4,635,310

 

 

 

 

 

 

 

 

TOTAL FOR COMMON STOCKS (Cost $36,118,532) - 81.56%

 

 

    40,048,671

 

 

 

 

 

 

 

Underlying Security

 

 

 

   Expiration Date/Exercise Price

 

 

 

 

 

 

 

 

 

 

PUT OPTIONS - 0.00% *

 

 

 

 

Shares Subject

 

 

 

 

 

to Put

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Japan 10 Year Bond Future (JGB)

 

 

 

 

1,000,000

 

May 2014 Put @ 139.50

 

 

               194

 

 

 

 

 

 

 

 

 

 

Total (Premiums Paid $199) - .00%

 

 

               194

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHORT TERM INVESTMENTS - 17.81%

 

 

 

 

8,745,938

 

Fidelity Institutional Money Market Portfolio 0.01% (Cost $8,745,938) **

      8,745,938

 

 

 

 

 

 

 

TOTAL INVESTMENTS (Cost $44,864,669) - 99.37%

 

 

    48,794,803

 

 

 

 

 

 

 

OTHER ASSETS LESS LIABILITIES -  0.63%

 

 

         307,440

 

 

 

 

 

 

 

NET ASSETS - 100.00%

 

 

$  49,102,243

 

 

 

 

 

 

 

 

* Non-income producing securities during the period.

 

 

 

 

** Variable rate security; the coupon rate shown represents the yield at March 31, 2014.


NOTES TO FINANCIAL STATEMENTS

 

 

 

 

Frank Value Fund

 

 

 

 

 

 

1. SECURITY TRANSACTIONS

 

 

 

 

 

At March 31, 2014, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $44,864,669 amounted to $3,930,223, which consisted of aggregate gross unrealized appreciation of $4,640,208 and aggregate gross unrealized depreciation of $709,985.

 

 

 

 

 

 

 

 

2. SECURITY VALUATION

 

 

 

 

 

Equity securities generally are valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when the adviser believes such prices accurately reflect the fair market value of such securities.  Securities that are      
traded on any stock exchange or on the NASDAQ over-the-counter market are generally valued by the pricing service at the last quoted sale price.  Lacking a last sale price, an equity security is generally valued by the pricing service at its last bid price.  When market quotations are not readily available, when the adviser determines that the market quotation or the price provided by the pricing service does not accurately reflect the current market value, or when restricted or illiquid securities are being valued, such securities are valued as determined in good faith by the adviser, in conformity with guidelines adopted by and subject to review by the Board of Trustees.


Fixed income securities generally are valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when the adviser believes such prices accurately reflect the fair market value of such securities.  A pricing service utilizes electronic data processing techniques based on yield spreads relating to securities with similar characteristics to determine prices for normal institutional-size trading units of debt securities without regard to sale or bid prices.  If the adviser decides that a price provided by the pricing service does not accurately reflect the fair market value of the securities, when prices are not readily available from a pricing service, or when restricted or illiquid securities are being valued, securities are valued at fair value as determined in good faith by the adviser, in conformity with guidelines adopted by and subject to review of the Board of Trustees.  Short term investments in fixed income securities with maturities of less than 60 days when acquired, or which subsequently are within 60 days of maturity, are valued by using the amortized cost method of valuation, which the Board has determined will represent fair value.


In accordance with the Trust’s good faith pricing guidelines, the adviser is required to consider all appropriate factors relevant to the value of securities for which it has determined other pricing sources are not available or reliable as described above.  No single standard for determining fair value exists since fair value depends upon the circumstances of each individual case.  As a general principle, the current fair value of an issue of securities being valued by the adviser would appear to be the amount which the owner might reasonably expect to receive for them upon their current sale.  Methods which are in accord with this principle may, for example, be based on (i) a multiple of earnings; (ii) a discount from market of a similar freely traded security (including a derivative security or a basket of securities traded on other markets, exchanges or among dealers); or (iii) yield to maturity with respect to debt issues, or a combination of these and other methods.


In accordance with FAS 157, fair value is defined as the price that the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. FAS 157 also 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.  The three-tier hierarchy of inputs is summarized below:


Valuation Inputs of Assets

Level 1

Level 2

Level 3

Total

Common Stock

$40,048,671

$0

$0

$40,048,671

Futures Options

194

0

0

194

Cash Equivalents

8,745,938

0

0

8,745,938

Total

$48,794,803

$0

$0

$48,794,803





 

Baldwin Fund

 

Schedule of Investments

 

March 31, 2014 (Unaudited)

 

 

 

 

 

 

 

 

Shares

 

 

 

 

Value

 

 

 

 

 

 

 

COMMON STOCKS - 74.79%

 

 

 

 

 

 

 

 

 

 

 

Biological Products (No Diagnostic Substances  - 5.67%

 

 

 

 

1,600

 

Amgen, Inc.

 

 

$       197,344

 

 

 

 

 

 

 

 

Cigarettes - 2.15%

 

 

 

 

 

 

2,000

 

Altria Group, Inc.

 

 

74,860

 

 

 

 

 

 

 

 

Computer Communications Equipment - 5.80%

 

 

 

 

9,000

 

Cisco Systems, Inc.

 

 

201,735

 

 

 

 

 

 

 

 

Converted Paper & Paperboard Products (No Containers/Boxes) - 1.58%

 

 

 

 

500

 

Kimberly Clark Corp.

 

 

55,125

 

 

 

 

 

 

 

 

Farm Machinery & Equipment - 5.74%

 

 

 

 

2,200

 

John Deere & Co.

 

 

199,760

 

 

 

 

 

 

 

 

Finance Services - 1.79%

 

 

 

 

2,500

 

GSV Cap Corp. *

 

 

           25,350

 

3,000

 

Oneida Financial Corp.

 

 

           36,780

 

 

 

 

 

 

62,130

 

Heavy Construction Other Than Building Const-Contractors - 5.59%

 

 

 

 

2,500

 

Fluor Corp. *

 

 

194,325

 

 

 

 

 

 

 

 

Laboratory Analytical Instruments - 0.43%

 

 

 

 

100

 

Illumina, Inc. *

 

 

14,866

 

 

 

 

 

 

 

 

Metal Mining - 3.80%

 

 

 

 

4,000

 

Freeport McMoran Copper & Gold, Inc.

 

 

132,280

 

 

 

 

 

 

 

 

Mining & Quarryng of Nonmetal Minerals (No Fuel) - 1.25%

 

 

 

 

2,000

 

Teck Cominco, Ltd.

 

 

43,360

 

 

 

 

 

 

 

 

Motor Vehicles & Passenger Car Bodies - 0.99%

 

 

 

 

1,000

 

General Motor Co.

 

 

           34,420

 

 

 

 

 

 

 

 

National Commercial Banks - 5.24%

 

 

 

 

3,000

 

JPMorgan Chase & Co.

 

 

182,130

 

 

 

 

 

 

 

 

Petroleum Refining - 1.60%

 

 

 

 

200

 

Icahn Enterprises L.P.

 

 

20,546

 

1,000

 

Suncor Energy, Inc. (Canada)

 

 

           34,960

 

 

 

 

 

 

55,506

 

Pharmaceutical Preparations - 5.50%

 

 

 

 

3,600

 

Bristol Myers Squibb Co.

 

 

187,020

 

1,000

 

Synta Pharmceuticals Corp. *

 

 

            4,310

 

 

 

 

 

 

191,330

 

Public Warehousing & Storage - 3.96%

 

 

 

 

5,000

 

Iron Mountain, Inc.

 

 

         137,850

 

 

 

 

 

 

 

 

Refuse Systems - 1.21%

 

 

 

 

1,000

 

Waste Management Holdings, Inc.

 

 

           42,070

 

 

 

 

 

 

 

 

Retail-Computer & Computer Software Stores - 5.91%

 

 

 

 

5,000

 

GameStop Holdings Corp.

 

 

         205,500

 

 

 

 

 

 

 

 

Retail-Eating Places - 0.41%

 

 

 

 

800

 

Potbelly Corp. *

 

 

           14,296

 

 

 

 

 

 

 

 

Retail-Grocery Stores - 1.04%

 

 

 

 

1,000

 

Sprouts Farmers Market, Inc. *

 

 

           36,030

 

 

 

 

 

 

 

 

Retail-Miscellaneous - 1.63%

 

 

 

 

5,000

 

Staples, Inc.

 

 

           56,700

 

 

 

 

 

 

 

 

Semiconductors & Related Devices - 2.44%

 

 

 

 

1,500

 

Cree, Inc. *

 

 

           84,840

 

 

 

 

 

 

 

 

Telephone Communication (No Radiotelephone) - 5.47%

 

 

 

 

4,000

 

Verizon Communications, Inc.

 

 

         190,280

 

 

 

 

 

 

 

 

Trucking & Courier Services (No Air) - 5.60%

 

 

 

 

2,000

 

United Parcel Service, Inc.

 

 

         194,760

 

 

 

 

 

 

 

 

TOTAL FOR COMMON STOCKS (Cost $2,651,896) - 74.79%

 

 

      2,601,497

 

 

 

 

 

 

 

EXCHANGE TRADED FUNDS - 9.72%

 

 

 

 

12,000

 

Aberdeen Asia Pacific Fund

 

 

           73,320

 

8,000

 

The Gamco Global Gold, Natural Resources & Income Trust

 

 

           79,360

 

3,000

 

iPath S&P VIX Short Term Futures ETN *

 

 

         126,450

 

3,000

 

Nuveen Build America

 

 

           58,860

 

 

 

 

 

 

 

 

TOTAL FOREXCHANGE TRADED FUNDS (Cost $379,266) - 9.72%

 

 

         337,990

 

 

 

 

 

 

 

REAL ESTATE INVESTMENT TRUSTS - 1.80%

 

 

 

 

2,000

 

Corrections Corp of America

 

 

           62,640

 

 

 

 

 

 

 

 

TOTAL FOR REAL ESTATE INVESTMENT TRUSTS (Cost $64,690) - 1.80%

 

 

           62,640

 

 

 

 

 

 

 

Underlying Security

 

 

 

 

 

   Expiration Date/Exercise Price

 

 

 

 

 

 

 

 

 

 

PUT OPTIONS - 1.26% *

 

 

 

 

Shares Subject

 

 

 

 

 

 

to Put

 

 

 

 

 

 

 

 

Altria Group, Inc.

 

 

 

 

1,000

 

April 2014 Put @ 36.00

 

 

80

 

 

 

 

 

 

 

 

 

 

Amgen, Inc.

 

 

 

 

1,300

 

May 2014 Put @ 120.00

 

 

4,030

 

 

 

 

 

 

 

 

 

 

Bristol Myers Squibb Co.

 

 

 

 

3,000

 

April 2014 Put @ 52.50

 

 

4,860

 

 

 

 

 

 

 

 

 

 

Cree, Inc.

 

 

 

 

1,500

 

April 2014 Put @ 57.50

 

 

3,555

 

 

 

 

 

 

 

 

 

 

Cisco Systems, Inc.

 

 

 

 

7,500

 

April 2014 Put @ 21.00

 

 

375

 

 

 

 

 

 

 

 

 

 

Fluor Corp.

 

 

 

 

2,000

 

April 2014 Put @ 77.50

 

 

2,400

 

 

 

 

 

 

 

 

 

 

Freeport McMoran Copper & Gold, Inc.

 

 

 

 

3,500

 

May 2014 Put @ 32.00

 

 

3,290

 

 

 

 

 

 

 

 

 

 

GameStop Holdings Corp.

 

 

 

 

4,000

 

April 2014 Put @ 38.00

 

 

1,600

 

 

 

 

 

 

 

 

 

 

Iron Mountain, Inc.

 

 

 

 

4,000

 

April 2014 Put @ 25.00

 

 

1,400

 

 

 

 

 

 

 

 

 

 

JPMorgan Chase & Co.

 

 

 

 

2,500

 

May 2014 Put @ 57.50

 

 

1,625

 

 

 

 

 

 

 

 

 

 

Staples, Inc.

 

 

 

 

3,500

 

April 2014 Put @ 11.00

 

 

700

 

 

 

 

 

 

 

 

 

 

Teck Cominco, Ltd.

 

 

 

 

2,000

 

May 2014 Put @ 23.00

 

 

3,760

 

 

 

 

 

 

 

 

 

 

United Parcel Service, Inc.

 

 

 

 

1,500

 

May 2014 Put @ 97.50

 

 

3,390

 

 

 

 

 

 

 

 

 

 

Verizon Communications, Inc.

 

 

 

 

3,500

 

May 2014 Put @ 47.00

 

 

3,815

 

 

 

 

 

 

 

 

 

 

iPath S&P 500 VIX ST Futures ETN

 

 

 

 

3,000

 

April 2014 Put @ 44.00

 

 

8,940

 

 

 

 

 

 

 

 

 

 

Xerox Corp.

 

 

 

 

7,500

 

April 2014 Put @ 10.00

 

 

               150

 

 

 

 

 

 

 

 

 

 

Total (Premiums Paid $60,789) - 1.26%

 

 

           43,970

 

 

 

 

 

 

 

CALL OPTIONS - 0.05% *

 

 

 

 

Shares Subject

 

 

 

 

 

 

to Call

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deere & Co.

 

 

 

 

1,700

 

May 2014 Call @ 87.50

 

 

            1,785

 

 

 

 

 

 

 

 

 

 

Total (Premiums Paid $3,212) - .05%

 

 

            1,785

 

 

 

 

 

 

 

SHORT TERM INVESTMENTS - 2.54%

 

 

 

 

88,324

 

Fidelity Government Fund Class-I 0.01% (Cost $88,324) **

 

 

           88,324

 

 

 

 

 

 

 

TOTAL INVESTMENTS (Cost $3,248,177) - 90.17%

 

 

3,136,206

 

 

 

 

 

 

 

OTHER ASSETS LESS LIABILITIES - 9.83%

 

 

         342,066

 

 

 

 

 

 

 

NET ASSETS - 100.00%

 

 

$    3,478,272

 

 

 

 

 

 

 

 

* Non-income producing securities during the period.

 

 

 

 

** Variable rate security; the coupon rate shown represents the yield at March 31, 2014.

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baldwin Fund

 

Schedule of Options Written

 

March 31, 2014 (Unaudited)

 

 

 

 

 

 

 

PUT OPTIONS WRITTEN *

 

 

 

 

 

 

 

 

 

 

 

Shares Subject

 

Underlying Security

 

 

 

 

to Put

 

Expiration Date/Exercise Price

 

 

Value

 

 

 

 

 

 

 

 

 

 

Cree, Inc.

 

 

 

 

500

 

April 2014 Put @ 57.00

 

 

               870

 

 

 

 

 

 

 

 

 

 

Total (Premiums Paid $1,450)

 

 

$             870

 

 

 

 

 

 

 

CALL OPTIONS WRITTEN *

 

 

 

 

 

 

 

 

 

 

 

Shares Subject

 

Underlying Security

 

 

 

 

to Call

 

Expiration Date/Exercise Price

 

 

Value

 

 

 

 

 

 

 

 

 

 

Altria Group, Inc.

 

 

 

 

2,000

 

April 2014 Call @ 37.00

 

 

$           1,340

 

 

 

 

 

 

 

 

 

 

Amgen, Inc.

 

 

 

 

1,600

 

April 2014 Call @ 122.00

 

 

7,280

 

 

 

 

 

 

 

 

 

 

Bristol Myers Squibb Co.

 

 

 

 

3,600

 

April 2014 Call @ 53.50

 

 

1,044

 

 

 

 

 

 

 

 

 

 

Cisco Systems, Inc.

 

 

 

 

9,000

 

April 2014 Call @ 22.00

 

 

4,320

 

 

 

 

 

 

 

 

 

 

Corrections Corp of America

 

 

 

 

2,000

 

April 2014 Call @ 33.00

 

 

260

 

 

 

 

 

 

 

 

 

 

Cree, Inc.

 

 

 

 

1,500

 

April 2014 Call @ 57.50

 

 

1,740

 

 

 

 

 

 

 

 

 

 

Deere & Co.

 

 

 

 

2,200

 

April 2014 Call @ 90.00

 

 

3,564

 

 

 

 

 

 

 

 

 

 

Fluor Corp.

 

 

 

 

2,500

 

April 2014 Call @ 78.00

 

 

2,025

 

 

 

 

 

 

 

 

 

 

Freeport McMoran Copper & Gold, Inc.

 

 

 

 

4,000

 

April 2014 Call @ 33.00

 

 

2,800

 

 

 

 

 

 

 

 

 

 

GameStop Holdings, Inc.

 

 

 

 

5,000

 

April 2014 Call @ 39.00

 

 

13,400

 

 

 

 

 

 

 

 

 

 

General Motors Co.

 

 

 

 

1,000

 

April 2014 Call @ 36.00

 

 

250

 

 

 

 

 

 

 

 

 

 

Icahn Enterprises L.P.

 

 

 

 

200

 

May 2014 Call @ 110.00

 

 

470

 

 

 

 

 

 

 

 

 

 

Iron Mountain, Inc.

 

 

 

 

5,000

 

April 2014 Call @ 27.50

 

 

6,750

 

 

 

 

 

 

 

 

 

 

JPMorgan Chase & Co.

 

 

 

 

3,000

 

April 2014 Call @ 60.50

 

 

3,780

 

 

 

 

 

 

 

 

 

 

Kimberly Clark Corp.

 

 

 

 

500

 

April 2014 Call @ 110.00

 

 

740

 

 

 

 

 

 

 

 

 

 

Pottbelly Corp.

 

 

 

 

800

 

May 2014 Call @ 20.00

 

 

480

 

 

 

 

 

 

 

 

 

 

Sprouts Farm Market, Inc.

 

 

 

 

1,000

 

April 2014 Call @ 37.50

 

 

550

 

 

 

 

 

 

 

 

 

 

Staples, Inc.

 

 

 

 

5,000

 

April 2014 Call @ 12.00

 

 

750

 

 

 

 

 

 

 

 

 

 

Suncor Energy, Inc.

 

 

 

 

1,000

 

April 2014 Call @ 33.00

 

 

2,130

 

 

 

 

 

 

 

 

 

 

Synta Pharmaceutials Corp.

 

 

 

 

1,000

 

May 2014 Call @ 4.50

 

 

550

 

 

 

 

 

 

 

 

 

 

Teck Cominco, Ltd.

 

 

 

 

2,000

 

April 2014 Call @ 23.00

 

 

320

 

 

 

 

 

 

 

 

 

 

United Parcel Services, Inc.

 

 

 

 

2,000

 

April 2014 Call @ 100.00

 

 

360

 

 

 

 

 

 

 

 

 

 

Verizon Communications, Inc.

 

 

 

 

4,000

 

April 2014 Call @ 48.50

 

 

1,240

 

 

 

 

 

 

 

 

 

 

iPath S&P 500 VIX ST Futures ETN

 

 

 

 

3,000

 

April 2014 Call @ 45.00

 

 

600

 

 

 

 

 

 

 

 

 

 

Waste Management, Inc.

 

 

 

 

1,000

 

April 2014 Call @ 41.00

 

 

            1,090

 

 

 

 

 

 

 

 

 

 

Total (Premiums Paid $49,547)

 

 

$         57,833


NOTES TO FINANCIAL STATEMENTS

 

 

 

 

Baldwin Fund

 

 

 

 

 

 

1. SECURITY TRANSACTIONS

 

 

 

 

 

At March 31, 2014, the net unrealized depreciation on investments, based on cost for federal income tax purposes of $3,248,177 amounted to $119,690, which consisted of aggregate gross unrealized appreciation of $54,620 and aggregate gross unrealized depreciation of $174,310.

 

 

 

 

 

 

 

 

2. SECURITY VALUATION

 

 

 

 

 

Equity securities generally are valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when the adviser believes such prices accurately reflect the fair market value of such securities.  Securities that are traded on any stock exchange or on the NASDAQ over-the-counter market are generally valued by the pricing service at the last quoted sale price.  Lacking a last sale price, an equity security is generally valued by the pricing service at its last bid price.  When market quotations are not readily available, when the adviser determines that the market quotation or the price provided by the pricing service does not accurately reflect the current market value, or when restricted or illiquid securities are being valued, such securities are valued as determined in good faith by the adviser, in conformity with guidelines adopted by and subject to review by the Board of Trustees.


Fixed income securities generally are valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when the adviser believes such prices accurately reflect the fair market value of such securities.  A pricing service utilizes electronic data processing techniques based on yield spreads relating to securities with similar characteristics to determine prices for normal institutional-size trading units of debt securities without regard to sale or bid prices.  If the adviser decides that a price provided by the pricing service does not accurately reflect the fair market value of the securities, when prices are not readily available from a pricing service, or when restricted or illiquid securities are being valued, securities are valued at fair value as determined in good faith by the adviser, in conformity with guidelines adopted by and subject to review of the Board of Trustees.  Short term investments in fixed income securities with maturities of less than 60 days when acquired, or which subsequently are within 60 days of maturity, are valued by using the amortized cost method of valuation, which the Board has determined will represent fair value.


In accordance with FAS 157, fair value is defined as the price that the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. FAS 157 also 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.  The three-tier hierarchy of inputs is summarized below:


Valuation Inputs of Assets

Level 1

Level 2

Level 3

Total

Common Stock

$     2,601,497

              $0

              $0

$2,601,497

Exchange Traded Funds

337,990

0

0

337,990

Real Estate Investment Trusts

62,640

0

0

62,640

Options Purchased

45,755

0

0

45,755

Cash Equivalents

88,324

0

0

88,324

Total

$     3,136,206

$0

       $0

$3,136,206

 

 

 

 

 

Valuation Inputs of Liabilities

Level 1

Level 2

Level 3

Total

Options Written

$          58,703

       $0

$0

$58,703

Total

$          58,703

       $0

       $0

$58,703





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 pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.


SIGNATURES


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.



Frank Funds


By /s/Brian J. Frank, President

 Brian J. Frank

 President


Date: May 20, 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/Brian J. Frank, President

Brian J. Frank

President


Date May 20, 2014


By /s/Monique M. Weiss

Monique M. Weiss

Secretary


Date May 20, 2014