N-Q 1 nqsmallcapsept11.txt FORM NQ FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act File Number 811-21782 Exact Name of registrant as Small Cap Value Fund, Inc. Specified in charter Address of principal executive office 8150 N. Central Expwy Suite #M1120 Dallas, Texas 75206 Name and address of agent for service Laura S. Adams 8150 N. Central Expwy Suite #M1120 Dallas, Texas 75206 Registrants telephone number, inc. area code 214-360-7418 Date of fiscal year end: 12/31 Date of reporting period: 09/30/11 Item 1. Schedule of Investments SMALL CAP VALUE FUND, INC. SCHEDULE OF INVESTMENTS (Unaudited) SEPTEMBER 30, 2011 DESCRIPTION SHARES MARKET VALUE ----------- ------ ------- COMMON STOCKS ? 96.22% Sawmills and Planing Mills-4.57% Universal Forest Products 19,000 456,950 Fabricated Rubber Products-3.74% Cooper Tire Rubber 34,314 373,679 Hospital and Medical Service Plans-3.58% Amerigroup Corp 9,170 357,722 Pharmaceutical Preparation-7.63% ViroPharma 42,235 763,187 Services-Computer Processing & Data Prep-4.23% Total System Services 25,000 423,250 Telephone Communications-3.63% Neutral Tandem 37,500 363,000 Small Arms-2.39% Smith & Wesson Holding Corp. 95,000 239,400 Retail-Nonstore Retailers-3.94% Nutrisystem Inc. 32,500 393,575 Retail-Computer & Computer Software Stores-4.04% GameStop 17,500 404,250 Services-Offices, Clinics of Doctors of Medicine-4.57% Coventry Health Care 15,865 457,071 Motors and Generators-3.11% American Superconductor 79,056 310,690 Retail Apparel-3.82% Aeropostale 35,375 382,404 - Continued - SMALL CAP VALUE FUND, INC. SCHEDULE OF INVESTMENTS, continued SEPTEMBER 30, 2011 DESCRIPTION SHARES MARKET VALUE ----------- ------ ------- Home Health Care Services-2.95% Amedisys Inc. 19,928 295,333 Hospitals-4.55% AmSurg Corp. 20,200 454,500 Colleges, Universities, and Prof Schools-1.81% Corinthian Colleges Inc. 116,485 180,552 Poultry, Slaughtering & Processing-7.13% Sanderson Farms Inc. 15,000 712,500 Chewing and Smoking Tobacco and Snuff-9.10% Universal Corp 25,360 909,410 Biological Products, Except Diagnostic Substances-5.83% PDL Biopharma 105,000 582,750 Footwear-4.97% Skechers USA, Inc. 35,435 497,153 Telephone and Telegraph Apparatus-5.21% Tellabs, Inc. 121,360 520,634 Industrial Inorganic Chemicals-2.78% Olin 15,424 277,786 Radio, TV & Consumer Electronic Stores-2.65% RadioShack Corp. 22,777 264,668 -------- Total common stocks (cost $10,023,405) 9,620,464 SMALL CAP VALUE FUND, INC. SCHEDULE OF INVESTMENTS, continued SEPTEMBER 30, 2011 SHORT-TERM INVESTMENTS ? 3.78% Schwab Money Fund-Bears interest at approx 0.01% 377,962 -------- Total short-term investments (cost $377,962) 377,962 -------- Total investment securities ? 100.00% (cost $10,401,367) 9,998,426 Other assets less liabilities ? 0.00% (328) -------- Net assets ? 100.00% $ 9,998,098 ============ The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements (FAS 157). In accordance with FAS 157, 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. 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. 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 developed 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) The following table summarizes the valuation of the Fund's investments by the above fair value hierarchy levels as of September 30, 2011: Investments Other in Financial Level Securities Instruments * ----- ---------- ----------- Level 1 $ 9,998,426 $ 0 Level 2 0 0 Level 3 0 0 ----------- ------------ Total $ 9,998,426 $ 0 =========== ============ * Other financial instruments are derivative instruments not reflected in the Portfolio of Investments, such as futures forwards and swap contracts, which are valued at the unrealized appreciation / depreciation on the instrument. THIS IS AN UNAUDITED STATEMENT See accompanying notes to these financial statements. NOTES TO FINANCIAL STATEMENTS Investment Transactions ? Purchases and Sales of investment securities (excluding money market funds) for the nine months ended September 30, 2011 were $6,821,446 and $11,910,185, respectively. At the end of the period, net unrealized depreciation for Federal Income tax purposes aggregated ($402,941), of which $1,363,196 related to unrealized appreciation of securities and ($1,766,137) related to unrealized depreciation of securities. The cost of investments at September 30, 2011 for Federal Income tax purposes was $10,023,405, excluding short term investments. Item 2. Controls and Procedures a) Laura S. Adams is the President and Treasurer of the Fund and has concluded that the Registrant?s disclosure controls and procedures(as defined in Rule 30a-3(c) under the Investment Company Act of 1940 are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Investment Company Act of 1940 and Rules 15d-15(b) under the Securities Exchange Act of 1934, as amended. b) There were no changes in the Registrant?s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 that occurred during the Registrant?s last fiscal half-year that has materially affected, or is reasonably likely to material 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 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. Small Cap Value Fund, Inc. By /s/ Laura S. Adams ------------------------- Laura S. Adams President Date: 10/27/2011 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. Small Cap Value Fund, Inc. By /s/ Laura S. Adams ------------------------- Laura S. Adams Treasurer Date: 10/27/2011