N-Q 1 nqsmallcapmarch2013.txt 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: 03/31/13 Item 1. Schedule of Investments SMALL CAP VALUE FUND, INC. SCHEDULE OF INVESTMENTS (Unaudited) MARCH 31, 2013 COMMON STOCKS ? 85.71% Fabricated Rubber Products-6.81% Cooper Tire & Rubber 34,314 880,497 Retail-Computer & Computer Software Stores-3.79% GameStop 17,500 489,475 Electric Components-4.58% Power-One Inc. (a) 143,094 592,409 Biological Products, Except Diagnostic Substances-4.88% PDL Biopharma 86,450 631,085 Oil Drilling and Gas Wells-8.67% Patterson UTI Energy 47,020 1,120,957 Water Transportation-3.59% Knightsbridge Tankers 56,600 464,120 Trucking, Except Local-11.77% Arkansas Best 130,273 1,521,589 Oil and Gas Fuel Exploration-4.29% Dawson Geophysical (a) 18,500 555,000 Railroad Equipment-3.86% Freightcar America 22,850 498,587 Papermills-4.49% Resolute Forest Products (a) 35,910 581,024 Crude Petroleum and Natural Gas-21.55% Bill Barrett Corp (a) 32,000 648,640 Swift Energy (a) 42,375 627,573 Stone Energy (a) 41,700 906,975 Ultra Petroleum (a) 30,000 603,000 -------- 2,786,188 - Continued ? SMALL CAP VALUE FUND, INC. SCHEDULE OF INVESTMENTS, continued MARCH 31, 2013 DESCRIPTION SHARES FAIR VALUE ----------- ------ ----------- Household Audio & Video Equipment-3.47% Skullcandy (a) 85,000 448,800 Management Consulting Svcs-3.95% Brink?s 18,075 510,800 -------- Total common stocks (cost $9,171,961) 11,080,531 - Continued - SMALL CAP VALUE FUND, INC. SCHEDULE OF INVESTMENTS, continued MARCH 31, 2013 SHORT-TERM INVESTMENTS ? 14.33% Schwab Money Fund-Bears interest at approx 0.01% 1,852,192 -------- Total short-term investments (cost $1,852,192) 1,852,192 -------- Total investment securities ? 100.03% (cost $11,024,153) 12,932,723 Other assets less liabilities ? (0.03)% (4,174) -------- Net assets ? 100.00% $ 12,928,549 ============ 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 March 30, 2013: Investments Other in Financial Level Securities Instruments * ----- ---------- ----------- Level 1 $11,080,531 $ 0 Level 2 0 0 Level 3 0 0 ----------- ------------ Total $11,080,531 $ 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 three months ended March 31, 2013 were $4,440,429 and $5,066,686, respectively. At the end of the period, net unrealized appreciation for Federal Income tax purposes aggregated $1,908,570, of which $2,063,071 related to unrealized appreciation of securities and ($154,501) related to unrealized depreciation of securities. The cost of investments at March 31, 2013 for Federal Income tax purposes was $9,171,961, 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: 4/22/2013 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: 4/22/2013