N-Q 1 nqsmallcapsept2016.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: 9/30/2016 Item 1. Schedule of Investments SMALL CAP VALUE FUND, INC. SCHEDULE OF INVESTMENTS (Unaudited) SEPTEMBER 30, 2016 DESCRIPTION SHARES FAIR VALUE ----------- ------ ------------ COMMON STOCKS ? 97.58% Crude Petroleum and Natural Gas-3.40% Vaalco Energy Inc. (a) 592,407 550,465 Fabricated Rubber Products-5.60% Cooper Tire & Rubber 23,878 907,842 Air Transportation, Scheduled-9.61% Hawaiian Holdings Inc. (a) 16,390 796,554 Skywest Inc. 28,815 761,004 -------- 1,557,558 Gold Ore Mining-4.48% IAMGOLD (a) 179,171 725,643 Apparel and Accessory Stores-16.87% Express Inc. (a) 51,136 602,893 Tillys Inc. (a) 130,900 1,229,151 Guess Inc. 28,249 412,718 Abercrombie & Fitch 30,847 490,159 -------- 2,734,921 Oil & Gas Field Exploration Services-4.80% Dawson Geophysical 101,958 777,939 Petroleum Refining-5.84% Alon USA Energy 117,481 946,897 Trucking, except local-7.99% ArcBest Corp 68,129 1,295,814 Primary Production of Aluminum-4.31% Century Aluminum (a) 100,466 698,239 Family Clothing Stores-3.62% BKE Jeans 24,439 587,269 Stationery Stores-2.97% Office Depot 135,000 481,950 - Continued ? SMALL CAP VALUE FUND, INC. SCHEDULE OF INVESTMENTS, continued SEPTEMBER 30, 2016 DESCRIPTION SHARES FAIR VALUE ----------- ------ ----------- State Commercial Banks-5.34% Marlin Business Services 44,695 866,189 Computer Integrated Sys Design-5.95% Unisys Corp (a) 98,975 964,016 Fabricated Structural Metal Products-3.09% Gulf Island Fabrication 54,387 500,360 Railroad Equipment-6.64% Trinity Industries 24,096 582,641 Freightcar America 34,360 494,097 -------- 1,076,738 Poultry and Poultry Products-4.00% Cal-Maine Foods (a) 16,830 648,628 Security Brokers, Dealers, & Flotation Companies-3.06% Waddell & Reed Financial Inc. 27,300 495,768 -------- Total common stocks (cost $16,650,427) $ 15,816,236 - Continued ? SMALL CAP VALUE FUND, INC. SCHEDULE OF INVESTMENTS, continued SEPTEMBER 30, 2016 SHARES FAIR VALUE SHORT-TERM INVESTMENTS ? 2.47% ------ --------- Schwab Money Market Fund-current interest at 0.00% $ 400,903 -------- Total short-term investments (cost $ 400,903) 400,903 -------- Total investment securities ? 100.05% (cost $17,051,330) 16,217,139 Other assets less liabilities ? (0.05)% (8,858) -------- Net assets ? 100.00% $ 16,208,281 ============ (a) Presently non-income producing 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, 2016: Investments Other in Financial Level Securities Instruments * ----- ---------- ----------- Level 1 $16,217,139 $ 0 Level 2 0 0 Level 3 0 0 ----------- ------------ Total $16,217,139 $ 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, 2016 were $5,953,110 and $86,436,875, respectively. At the end of the period, net unrealized depreciation for Federal Income tax purposes aggregated ($834,191), of which $2,212,967 related to unrealized appreciation of securities and ($2,212,967) related to unrealized depreciation of securities. The cost of investments at September 30, 2016 for Federal Income tax purposes was $16,650,427, 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: 10/24/2016 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: 10/24/2016