N-Q 1 rangernq.htm Exhibit 99

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 811-22576


Ranger Funds Investment Trust

(Exact name of registrant as specified in charter)


300 Crescent Court

Suite 1100

Dallas, TX 75201

(Address of principal executive offices)

(Zip code)


National Corporate Research, Ltd.

615 South DuPont Highway

Dover, Delaware 19901

 (Name and address of agent for service)


With Copy to:

JoAnn M. Strasser, Thompson Hine LLP

41 South High Street, Suite 1700

Columbus, Ohio 43215-6101



Registrant's telephone number, including area code: (214) 871-5200


Date of fiscal year end: July 31


Date of reporting period: October 31, 2011


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.


Ranger Quest for Income and Growth Fund

 

Schedule of Investments

 

October 31, 2011 (Unaudited)

 
      

Shares

   

Value

 
      

COMMON STOCKS - 56.62%

   
      

Aerospace & Defense - 3.15%

   

1,321

 

Bae Systems

 

               23,633

 
      

Beverages - 1.55%

   

900

 

Coca-Cola Amatil

 

               11,660

 
      

Capital Markets - 2.40%

   

1,000

 

Apollo Investment

 

                 8,280

 

500

 

Federation Investors Inc.

 

                 9,770

 
    

               18,050

 

Diversified Financial Services - 1.11%

   

1,000

 

KKR Financial

 

                 8,350

 
      

Diversified Telecommunication Services - 16.99%

   

956

 

AT&T Corp.

 

               28,020

 

1,802

 

France Telecom Sa

 

               32,400

 

4,000

 

Singapore Telecom Ltd.

 

               10,171

 

1,623

 

Telstra Corp Ltd

 

               26,374

 

831

 

Verison Communications

 

               30,730

 
    

             127,696

 

Electric Utilities - 3.70%

   

643

 

Southern Co.

 

               27,778

 
      

Food Products - 1.92%

   

250

 

Nestles ADR

 

               14,400

 
      

Household Products - 1.86%

   

200

 

Kimberly Clark Corp

 

               13,942

 
      

Media - 3.18%

     

1,657

 

Regal Entertainment Group

 

               23,927

 
      

Pharmaceuticals - 5.26%

   

245

 

Novartis Ag

 

               13,835

 

718

 

Sanofi Aventis

 

               25,669

 
    

               39,504

 

Tobacco - 11.66%

    

500

 

Altria Group, Inc

 

               13,775

 

235

 

British American Tobacco Plc

 

               21,679

 

407

 

Imperial Tobacco Group Plc

 

               29,711

 

321

 

Philip Morris International Inc.

 

               22,428

 
    

               87,593

 

Wireless Telecommunication Services - 3.85%

   

1,039

 

Vodafone Group Plc

 

               28,926

 
      

TOTAL FOR COMMON STOCKS (Cost $407,042) - 56.62%

 

$             425,458

 
      

REAL ESTATE INVESTMENT TRUSTS - 17.14%

   

1,578

 

Annaly Capital Management

 

26,589

 

1,100

 

Crexus Investment Corp.

 

10,516

 

580

 

Health Care REIT, Inc.

 

30,560

 

893

 

National Retail Properties, Inc.

 

24,334

 

1,166

 

Penny Mac Management Investment Trust

 

19,939

 

899

 

Starwood Property Trust, Inc.

 

                16,892

 
    

128,830

 
      

TOTAL FOR REAL ESTATE INVESTMENT TRUSTS (Cost $120,531) - 17.14%

 

$             128,830

 
      

MASTER LIMITED PARTNERSHIPS - 24.7%

   

940

 

Boardwalk Pipeline Partners

 

26,865

 

970

 

Brookfield Infre Partners

 

24,337

 

506

 

Energy Transfer Partners

 

23,640

 

390

 

Kinder Morgan Energy Partners

 

29,636

 

437

 

Markwest Energy Partners Lp

 

21,776

 

478

 

Plains All American Pipeline

 

31,534

 

614

 

TC Pipelines LP

 

27,974

 
    

185,762

 
      

TOTAL FOR MASTER LIMITED PARTNERSHIPS (Cost $170,931) - 24.72%

 

$             185,762

 
      
      
      

SHORT TERM INVESTMENTS - 0.80%

   

6,003

 

First American Government Obligation Fund 0.00% ** (Cost $6,003)

 

                  6,003

 
      

TOTAL INVESTMENTS (Cost $704,507) - 99.28%

 

$             746,053

 
      

OTHER ASSETS LESS LIABILITIES - 0.72%

 

                 5,377

 
      

NET ASSETS - 100.00%

 

$             751,430

 
      

ADR - American Depository Receipts.

   

* Non-income producing securities during the period.

   

** Variable rate security; the coupon rate shown represents the yield at October 31, 2011.

   
      

NOTES TO FINANCIAL STATEMENTS

   

Ranger Quest for Income and Growth Fund

   

1. SECURITY TRANSACTIONS

   

At October 31, 2011 the net unrealized appreciation on investments, based on cost for federal income

  

tax purposes of $704,507 amounted to $41,546.

   
      
      

2. SECURITY VALUATION

   

All investments in securities are recorded at their estimated fair value. The Funds utilize various methods to measure the fair value of most of its investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of inputs are:

 

Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the Funds have the ability to access.

Level 2 - Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 - Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Funds’ own assumptions about the assumptions a market participant would use in valuating the asset or liability, and would be based on the best information available.

 

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

 

The following table summarizes the inputs used to value the fund's assets measured at fair value as of October 31, 2011:


Valuation Inputs of Assets

 

Level 1

Level 2

Level 3

Total

Common Stock

 

$425,458

              $0

              $0

$425,458

Real Estate Investment Trusts

 

$128,830

              $0

              $0

$128,830

Master Limited Partnerships

 

$185,762

              $0

              $0

$185,762

Preferred Stocks

 

$0

  

$0

Cash Equivalents

 

$6,003

              $0

              $0

$6,003

Total

 

$746,053

       $0

       $0

$746,053



Ranger Small Cap Fund

 

Schedule of Investments

 

October 31, 2011 (Unaudited)

 
      

Shares

   

Value

 
      

COMMON STOCKS - 96.44%

   
      

Advertising Agencies - 0.84%

   

379

 

Constant Contact, Inc. *

 

$                7,671

 
      

Aerospace - 3.61%

   

569

 

Triumph Group, Inc.

 

33,059

 
      

Back Office Support HR & Consutling - 3.52%

   

595

 

Maximus, Inc.

 

24,002

 

135

 

Advisory Board Co. *

 

8,269

 
    

32,271

 

Banks: Diversified - 11.05%

   

1047

 

Home Bancshares, Inc.

 

24,552

 

631

 

Prosperity Bancshares, Inc.

 

24,287

 

334

 

Signature Bank Corp. *

 

18,607

 

658

 

Texas Capital Bancshares, Inc. *

 

18,424

 

170

 

SVB Financial Group *

 

7,810

 

646

 

Washington Banking Co.

 

7,636

 
    

101,316

 

Chemicals: Diversified - 0.76%

   

349

 

TPC Group, Inc. *

 

6,935

 
      

Chemicals: Specialty - 0.83%

   

386

 

Kraton Performance Polymers, Inc. *

 

7,596

 
      

Communications Technology - 3.97%

   

754

 

Aruba Networks, Inc. *

 

17,862

 

1382

 

Allot Communications Ltd. *

 

18,477

 
    

36,340

 

Computer Services Software & Systems - 9.66%

   

751

 

Synchronoss Technologies, Inc. *

 

22,575

 

453

 

Opnet Technologies, Inc.

 

19,814

 

599

 

Sourcefie, Inc. *

 

16,502

 

513

 

Ariba, Inc. *

 

16,252

 

314

 

Rightnow Technologies, Inc. *

 

13,505

 
    

88,649

 

Electronic Components - 3.48%

   

800

 

Acacia Research Corp. *

 

31,872

 
      

Foods - 2.69%

     

402

 

Treehouse Foods, Inc. *

 

24,659

 
      

Health Care Management Services - 4.75%

   

382

 

Catalyst Health Solutions, Inc. *

 

20,999

 

228

 

Computer Programs & Systems, Inc.

 

11,644

 

309

 

Centene Corp. *

 

10,861

 
    

43,504

 

Health Care Services - 10.64%

   

555

 

SXC Health Solutions Corp. *

 

25,985

 

559

 

IPC The Hospitalist Co., Inc. *

 

23,439

 

825

 

HMS Holdings Corp. *

 

20,163

 

364

 

Corvel Corp. *

 

18,771

 

234

 

Quality Systems, Inc.

 

9,105

 
    

97,463

 

Machinery: Industrial - 1.02%

   

166

 

Chart Industries, Inc. *

 

9,381

 
      

Oil Well Equipment & Services - 2.43%

   

255

 

Lufkin Industries, Inc.

 

15,068

 

250

 

Dawson Geophysical Co. *

 

7,225

 
    

22,293

 

Oil: Crude Producers - 5.38%

   

1091

 

Approach Resources, Inc. *

 

26,631

 

510

 

Rosetta Resources, Inc. *

 

22,613

 
    

49,245

 

Pharmaceuticals - 1.13%

   

548

 

Impax Laboratories, Inc. *

 

10,363

 
      

Producer Durables: Misc - 2.19%

   

532

 

Be Aerospace, Inc. *

 

20,072

 
      

Railroad Equipment - 1.58%

   

215

 

Westinghouse Air Brake Technologies Corp. *

 

14,444

 
      

Restaurants - 4.12%

   

309

 

BJ's Restaurants, Inc. *

 

16,355

 

84

 

Panera Bread Co. *

 

11,230

 

522

 

Bravo Rio Restaurant Group, Inc. *

 

10,142

 
    

37,728

 

Securities Brokerage & Services - 1.58%

   

496

 

MarketAxess Holdings, Inc.

 

14,498

 
      

Semiconductors & Components - 3.43%

   

535

 

Ceva, Inc. *

 

16,622

 

1344

 

Inphi Corp. *

 

14,838

 
    

31,460

 

Specialty Retail - 10.66%

   

1920

 

Pier 1 Imports, Inc. *

 

24,019

 

410

 

Group 1 Automotive, Inc.

 

18,680

 

877

 

Finish Line, Inc. Class-A

 

17,628

 

458

 

Shoe Carnival, Inc. *

 

12,499

 

300

 

America's Car Mart, Inc. *

 

10,014

 

150

 

Genesco, Inc. *

 

8,841

 

267

 

Teavana Holdings, Inc. *

 

6,104

 
    

97,784

 

Textiles Apparel & Shoes - 5.86%

   

643

 

Wolverine World Wide, Inc.

 

24,389

 

388

 

Oxford Industries, Inc.

 

15,326

 

380

 

Steven Madden Ltd. *

 

14,022

 
    

53,737

 

Transportation Miscellaneous - 1.26%

   

369

 

Hub Group, Inc. *

 

11,535

 
      
      

TOTAL FOR COMMON STOCKS (Cost $748,885) - 96.44%

 

$             883,873

 
      

SHORT TERM INVESTMENTS - 4.13%

   

37,825

 

First American Government Obligation Fund 0.00% ** (Cost $37,825)

 

                37,825

 
      

TOTAL INVESTMENTS (Cost $786,710) - 100.56%

 

$             921,698

 
      

LIABILITIES IN EXCESS OF OTHER ASSETS - (0.56%)

 

               (5,153)

 
      

NET ASSETS - 100.00%

 

$             916,545

 
      

ADR - American Depository Receipts.

   

* Non-income producing securities during the period.

   

** Variable rate security; the coupon rate shown represents the yield at October 31, 2011.

   
      

NOTES TO FINANCIAL STATEMENTS

   

Ranger Small Cap Fund

   

1. SECURITY TRANSACTIONS

   

At October 31, 2011 the net unrealized appreciation on investments, based on cost for federal income tax purposes of $786,710 amounted to $134,990.

 
    
      
      

2. SECURITY VALUATION

   

All investments in securities are recorded at their estimated fair value. The Funds utilize various methods to measure the fair value of most of its investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of inputs are:

Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the Funds have the ability to access.

Level 2 - Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 - Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Funds’ own assumptions about the assumptions a market participant would use in valuating the asset or liability, and would be based on the best information available.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The following table summarizes the inputs used to value the fund’s assets measured at fair value as of October 31, 2011:


Valuation Inputs of Assets

 

Level 1

Level 2

Level 3

Total

Common Stock

 

$883,873

              $0

              $0

$883,873

Preferred Stocks

 

$0

  

$0

Cash Equivalents

 

                                               37,825

              $0

              $0

$37,825

Total

 

$921,698

       $0

       $0

$921,698




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, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Ranger Funds Investment Trust


By /s/ Kenneth Scott Canon

     Kenneth Scott Canon

     President (Principal Executive Officer)


Date December 30, 2011


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/ Joseph W. Thompson

     Joseph W. Thompson

     Treasurer and Chief Financial Officer (Principal Financial Officer)


Date December 30, 2011