N-Q 1 d617072dnq.htm SIT LARGE CAP GROWTH FUND, INC. Sit Large Cap Growth Fund, Inc.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811- 03343

SIT LARGE CAP GROWTH FUND, INC.

(Exact name of registrant as specified in charter)

3300 IDS Center, 80 S. 8th Street, Minneapolis, MN 55402

(Address of principal executive offices) (Zip code)

Kelly K. Boston, Esq.

3300 IDS Center, 80 S. 8th Street

Minneapolis, MN 55402

(Name and address of agent for service)

Registrant’s telephone number, including area code: 612-332-3223

 

Date of fiscal year end:    June 30, 2018
Date of reporting period:    September 30, 2018

Item 1. Schedule of Investments

Sit Large Cap Growth Fund, Inc.

The fund’s schedule of investments as of the date on the cover of this report has not been audited. This report is provided for the general information of the fund’s shareholders. For more information regarding the fund and its holdings, please see the fund’s most recent prospectus and annual report.

 

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2018

Sit Large Cap Growth Fund

 

     
Name of Issuer    Quantity        Fair Value ($)  

Common Stocks - 99.3%

      

Communications - 0.9%

      

Verizon Communications, Inc.

      20,925        1,117,186  
     

 

 

  

Consumer Durables - 0.9%

      

Electronic Arts, Inc. *

     9,900        1,192,851  
     

 

 

  

Consumer Non-Durables - 4.5%

      

Coca-Cola Co.

      13,700        632,803  

Estee Lauder Cos., Inc. - Class A

      14,675        2,132,571  

PepsiCo, Inc.

      17,300        1,934,140  

VF Corp.

      11,000        1,027,950  
     

 

 

  
     

 

 

 

5,727,464

 

 

     

 

 

  

Consumer Services - 8.7%

      

Carnival Corp.

      15,400        982,058  

Marriott International, Inc.

      9,300        1,227,879  

McDonald’s Corp.

      4,700        786,263  

Starbucks Corp.

      29,900        1,699,516  

Visa, Inc.

      31,900        4,787,871  

Walt Disney Co.

      13,200        1,543,608  
     

 

 

  
     

 

 

 

11,027,195

 

 

     

 

 

  

Electronic Technology - 14.1%

      

Apple, Inc.

      42,200        9,526,228  

Applied Materials, Inc.

      49,700        1,920,905  

Arista Networks, Inc. *

     2,750        731,115  

Broadcom, Inc.

      9,000        2,220,570  

Ciena Corp. *

     28,700        896,588  

Intel Corp.

      16,800        794,472  

NVIDIA Corp.

      5,325        1,496,432  

Skyworks Solutions, Inc.

      4,700        426,337  
     

 

 

  
     

 

 

 

18,012,647

 

 

     

 

 

  

Energy Minerals - 1.8%

      

Chevron Corp.

      2,600        317,928  

Continental Resources, Inc. *

     4,900        334,572  

Marathon Petroleum Corp.

      15,500        1,239,535  

Pioneer Natural Resources Co.

      2,300        400,637  
     

 

 

  
     

 

 

 

2,292,672

 

 

     

 

 

  

Finance - 6.0%

      

Bank of America Corp.

      32,000        942,720  

Chubb, Ltd.

      8,650        1,155,986  

First Republic Bank

      5,700        547,200  

Goldman Sachs Group, Inc.

      4,800        1,076,352  

JPMorgan Chase & Co.

      18,800        2,121,392  

Prudential Financial, Inc.

      7,900        800,428  

T Rowe Price Group, Inc.

      8,900        971,702  
     

 

 

  
     

 

 

 

7,615,780

 

 

     

 

 

  

Health Services - 3.1%

      

Centene Corp. *

     8,500        1,230,630  

UnitedHealth Group, Inc.

      10,275        2,733,561  
     

 

 

  
     

 

 

 

 

 

3,964,191

 

 

 

     

 

 

  
     
Name of Issuer    Quantity        Fair Value ($)  

Health Technology - 6.8%

      

AbbVie, Inc.

      19,900        1,882,142  

Boston Scientific Corp. *

     43,900        1,690,150  

Celgene Corp. *

     7,425        664,463  

Edwards Lifesciences Corp. *

     4,900        853,090  

Johnson & Johnson

      11,000        1,519,870  

Pfizer, Inc.

      13,200        581,724  

Thermo Fisher Scientific, Inc.

      5,850        1,427,868  
     

 

 

  
     

 

 

 

8,619,307

 

 

     

 

 

  

Process Industries - 4.1%

      

DowDuPont, Inc.

      21,600        1,389,096  

Ecolab, Inc.

      12,300        1,928,394  

Sherwin-Williams Co.

      4,300        1,957,403  
     

 

 

  
     

 

 

 

5,274,893

 

 

     

 

 

  

Producer Manufacturing - 9.3%

      

3M Co.

      6,350        1,338,008  

Deere & Co.

      4,200        631,386  

General Dynamics Corp.

      3,500        716,520  

Honeywell International, Inc.

      9,925        1,651,520  

Ingersoll-Rand, PLC

      12,500        1,278,750  

Parker-Hannifin Corp.

      8,700        1,600,191  

Raytheon Co.

      12,125        2,505,753  

Rockwell Automation, Inc.

      4,925        923,536  

United Technologies Corp.

      9,000        1,258,290  
     

 

 

  
     

 

 

 

11,903,954

 

 

     

 

 

  

Retail Trade - 8.3%

      

Amazon.com, Inc. *

     2,750        5,508,250  

Home Depot, Inc.

      12,600        2,610,090  

TJX Cos., Inc.

      14,700        1,646,694  

Ulta Beauty, Inc. *

     3,000        846,360  
     

 

 

  
     

 

 

 

10,611,394

 

 

     

 

 

  

Technology Services - 26.8%

      

Accenture, PLC

      10,975        1,867,945  

Adobe Systems, Inc. *

     14,200        3,833,290  

Alphabet, Inc. - Class A *

     1,050        1,267,434  

Alphabet, Inc. - Class C *

     5,966        7,120,242  

Autodesk, Inc. *

     8,400        1,311,324  

Booking Holdings, Inc. *

     965        1,914,560  

Cognizant Technology Solutions Corp.

      12,400        956,660  

Facebook, Inc. *

     19,850        3,264,531  

Microsoft Corp.

      69,100        7,902,967  

PayPal Holdings, Inc. *

     21,500        1,888,560  

Red Hat, Inc. *

     6,100        831,308  

salesforce.com, Inc. *

     13,000        2,067,390  
     

 

 

  
     

 

 

 

34,226,211

 

 

     

 

 

  
 

 

See accompanying notes to schedule of investments.   
SEPTEMBER 30, 2018    1

 

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2018

Sit Large Cap Growth Fund (Continued)

 

     
Name of Issuer    Quantity        Fair Value ($)  

Transportation - 3.5%

      

Delta Air Lines, Inc.

      27,615        1,596,975  

FedEx Corp.

      6,000        1,444,740  

Union Pacific Corp.

      8,800        1,432,904  
     

 

 

  
     

 

 

 

4,474,619

 

 

     

 

 

  

Utilities - 0.5%

      

NextEra Energy, Inc.

      4,000        670,400  
     

 

 

  

Total Common Stocks
(cost: $62,983,567)

         126,730,764  
     

 

 

  
     
Name of Issuer    Quantity        Fair Value ($)  

Short-Term Securities - 0.5%

      

Fidelity Inst. Money Mkt. Gvt. Fund, 1.95%

      722,330        722,330  
     

 

 

  

(cost: $722,330)

      

 

Total Investments in Securities - 99.8%
(cost: $63,705,897)

      

 

 

 

127,453,094

 

 

Other Assets and Liabilities, net - 0.2%

         212,291  
     

 

 

  

 

Total Net Assets - 100.0%

      

 

 

 

$127,665,385

 

 

     

 

 

  
             
*

Non-income producing security.

Numeric footnotes not disclosed are not applicable to this Schedule of Investments.

     PLC — Public Limited Company

 

 

A summary of the levels for the Fund’s investments as of September 30, 2018 is as follows (see notes to Schedule of Investments):

 

     Investment in Securities  
    

Level 1

Quoted

Price ($)

     

Level 2

Other significant

observable inputs ($)

   

Level 3

Significant

unobservable inputs ($)

    Total ($)  

Common Stocks **

     126,730,764      —    —      126,730,764  

Short-Term Securities

      722,330      —    —      722,330  

 

Total:

   

 

 

 

127,453,094

 

 

   

 

—

   

 

—

   

 

 

 

127,453,094

 

 

 

**

For equity securities categorized in a single level, refer to the Schedule of Investments for further breakdown.

For the reporting period, there were no transfers between levels 1, 2 and 3.

 

 

See accompanying notes to schedule of investments.   
2     

 

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2018

Securities Valuation:

Investments in Securities

Investments in securities traded on national or international securities exchanges are valued at the last reported sales price prior to the time when assets are valued. Securities traded on the over-the-counter market are valued at the last reported sales price or if the last sales price is not available at the last reported bid price. The sale and bid prices or prices deemed best to reflect fair value quoted by dealers who make markets in these securities are obtained from independent pricing services. Consistent with the Fund’s valuation policies and procedures, debt securities maturing in more than 60 days are priced by an independent pricing service. The pricing service may use models that price securities based on current yields and relative security characteristics, such as coupon rate, maturity date, issuer credit quality, and prepayment speeds as applicable. When market quotations are not readily available, or when the Advisor becomes aware that a significant event impacting the value of a security or group of securities has occurred after the closing of the exchange on which the security or securities principally trade, but before the calculation of the daily net asset value, securities are valued at fair value as determined in good faith using procedures established by the Board of Directors. The procedures consider, among others, the following factors to determine a security’s fair value: the nature and pricing history (if any) of the security; whether any dealer quotations for the security are available; and possible valuation methodologies that could be used to determine the fair value of the security. Debt securities of sufficient credit quality maturing in less than 60 days when acquired, or which subsequently are within 60 days of maturity, are valued at amortized cost, which approximates fair value.

Fair Value Measurements

The inputs and valuations techniques used to measure fair value of the Fund’s net assets are summarized into three levels as described in the hierarchy below:

• Level 1 – quoted prices for active markets for identical securities. An active market for the security is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value.

• Level 2 – debt securities are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, U.S. government and government agency obligations, and municipal securities the pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity, and type as well as dealer supplied prices. For asset-backed securities and mortgage-backed securities, the pricing services utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity, and type as well as dealer supplied prices. All of these inputs are derived principally from or corroborated by observable market data. An adjustment to any observable input that is significant to the fair value may render the measurement a Level 3 measurement.

• Level 3 – significant unobservable inputs, including the Adviser’s own assumptions in determining the fair value of investments.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

A summary of the levels for the Fund’s investments as of September 30, 2018 is included with the Fund’s schedule of investments.

At September 30, 2018, the gross unrealized appreciation (depreciation) on investments and cost of securities on a tax basis for federal income tax purposes are identical to book and are as follows:

 

    

Unrealized

Appreciation

   

Unrealized

Depreciation

   

Net Unrealized

Appreciation

(Depreciation)

   

Cost of

Securities on a

Tax Basis

Large Cap Growth

    $63,873,554    ($126,357)    $63,747,197    $63,705,897

 

 

       
        3

Item 2. Controls and Procedures.

(a) The Vice President and Treasurer and the Chairman have concluded that the Sit Large Cap Growth Fund’s (the “Fund”) disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Fund is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.

(b) There was no change in the Fund’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the Fund’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Fund’s internal control over financial reporting.

Item 3. Exhibits

Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

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.

 

Sit Large Cap Growth Fund, Inc.
By:   /s/Paul E. Rasmussen
  Paul Rasmussen
 

Vice President and Treasurer

Date:

  

October 24, 2018

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/Paul E. Rasmussen
  Paul Rasmussen
 

Vice President and Treasurer

Date:

  

October 24, 2018

 

By:   /s/Roger J. Sit
  Roger J. Sit
 

Chairman

Date:

  

October 24, 2018