N-Q 1 dnq.htm LEGG MASON VALUE TRUST, INC. Legg Mason Value Trust, Inc.

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-03380

 

Name of Fund:

    Legg Mason Value Trust, Inc.

Fund Address:

    100 Light Street
   Baltimore, MD 21202

Name and address of agent for service:

    Richard M. Wachterman, Esq.
   Legg Mason & Co., LLC
   100 Light Street
   Baltimore, MD 21202

Registrant’s telephone number, including area code: (410) 539-0000

Date of fiscal year end: 3/31/2008

Date of reporting period: 12/31/2007

 

 

 

Item 1 – Schedule of Investments

 

   Quarterly Report to Shareholders   1

Portfolio of Investments

Legg Mason Value Trust, Inc.

December 31, 2007 (Unaudited)

(Amounts in Thousands)

 

      Shares/Par    Value  

Common Stocks and Equity Interests — 99.8%

      

Consumer Discretionary — 23.6%

      

Automobiles — 0.9%

      

General Motors Corp.

    6,234    $ 155,164  
           

Household Durables — 1.8%

      

Centex Corp.

    4,969      125,527  

KB HOME

    3,913      84,521  

Pulte Homes Inc.

    8,666      91,336  
           
        301,384  
           

Internet and Catalog Retail — 10.6%

      

Amazon.com Inc.

    12,270      1,136,673 A

Expedia Inc.

    10,558      333,856 A

IAC/InterActiveCorp

    10,134      272,818 A
           
        1,743,347  
           

Leisure Equipment and Products — 2.8%

      

Eastman Kodak Co.

    20,925      457,623 B
           

Media — 3.0%

      

The DIRECTV Group Inc.

    4,330      100,109 A

Time Warner Inc.

    23,478      387,620  
           
        487,729  
           

Multiline Retail — 4.1%

      

J.C. Penney Co. Inc.

    4,164      183,182  

Sears Holdings Corp.

    4,794      489,187 A
           
        672,369  
           

Specialty Retail — 0.4%

      

Best Buy Co. Inc.

    1,200      63,180  
           

Energy — 0.3%

      

Oil, Gas and Consumable Fuels — 0.3%

      

Exxon Mobil Corp.

    500      46,845  
           

2    Quarterly Report to Shareholders  

Portfolio of Investments — Continued

Legg Mason Value Trust, Inc. — Continued

 

      Shares/Par    Value  

Financials — 18.8%

      

Capital Markets — 3.3%

      

Merrill Lynch and Co. Inc.

    4,177    $ 224,200  

The Bear Stearns Cos. Inc.

    2,300      202,975  

The Goldman Sachs Group Inc.

    500      107,525  
           
        534,700  
           

Commercial Banks — 0.5%

      

Wachovia Corp.

    2,165      82,316  
           

Consumer Finance — 1.3%

      

Capital One Financial Corp.

    4,650      219,749  
           

Diversified Financial Services — 8.0%

      

Citigroup Inc.

    16,746      493,005  

J.P. Morgan Chase and Co.

    17,805      777,171  

NYSE Euronext

    600      52,662  
           
        1,322,838  
           

Insurance — 3.0%

      

American International Group Inc.

    8,447      492,460  
           

Thrifts and Mortgage Finance — 2.7%

      

Countrywide Financial Corp.

    20,925      187,068  

Freddie Mac

    5,900      201,013  

Washington Mutual Inc.

    3,900      53,079  
           
        441,160  
           

Health Care — 15.3%

      

Biotechnology — 1.4%

      

Amgen Inc.

    5,170      240,095 A
           

Health Care Equipment and Supplies — 0.6%

      

Covidien Ltd.

    2,373      105,112  
           

   Quarterly Report to Shareholders   3

 

      Shares/Par    Value  

Health Care — Continued

      

Health Care Providers and Services — 11.7%

      

Aetna Inc.

    14,820    $ 855,559  

Health Net Inc.

    1,910      92,273 A

UnitedHealth Group Inc.

    16,760      975,432  
           
        1,923,264  
           

Pharmaceuticals — 1.6%

      

Pfizer Inc.

    11,422      259,629  
           

Industrials — 4.3%

      

Industrial Conglomerates — 4.3%

      

General Electric Co.

    13,139      487,074  

Tyco International Ltd.

    5,840      231,574  
           
        718,648  
           

Information Technology — 22.7%

      

Communications Equipment — 2.7%

      

Cisco Systems Inc.

    11,257      304,732 A

Motorola Inc.

    8,532      136,852  
           
        441,584  
           

Computers and Peripherals — 4.5%

      

Hewlett-Packard Co.

    8,413      424,693  

International Business Machines Corp.

    2,936      317,393  
           
        742,086  
           

Internet Software and Services — 10.1%

eBay Inc.

    17,142      568,928 A

Google Inc.

    757      523,589 A

Yahoo! Inc.

    24,248      564,018 A
           
        1,656,535  
           

Semiconductors and Semiconductor Equipment — 1.6%

      

Texas Instruments Inc.

    7,985      266,682  
           

 

4    Quarterly Report to Shareholders  

Portfolio of Investments — Continued

Legg Mason Value Trust, Inc. — Continued

 

      Shares/Par    Value  

Information Technology — Continued

      

Software — 3.8%

      

CA Inc.

    10,173    $ 253,824  

Electronic Arts Inc. (EA)

    6,359      371,441 A
           
        625,265  
           

Materials — 0.6%

      

Metals and Mining — 0.6%

      

Nucor Corp.

    1,600      94,752  
           

Telecommunication Services — 8.0%

      

Diversified Telecommunication Services — 4.1%

      

Qwest Communications International Inc.

    96,143      673,963 A,B
           

Wireless Telecommunication Services — 3.9%

      

Sprint Nextel Corp.

    48,964      642,903  
           

Utilities — 6.2%

      

Independent Power Producers and Energy Traders — 6.2%

      

The AES Corp.

    47,685      1,019,982 A,B
           

Total Common Stocks and Equity Interests
(Cost — $12,406,290)

         16,431,364  
           

   Quarterly Report to Shareholders   5

 

      Shares/Par    Value

Repurchase Agreements — N.M.

      

Goldman Sachs & Co.
4.60%, dated 12/31/07, to be repurchased at
$1,691 on 1/2/08 (Collateral: $1,763 Fannie Mae
mortgage-backed securities, 5.00%, due 11/1/33, value $1,726)

    $ 1,690    $ 1,690

JPMorgan Chase and Co.
4.00%, dated 12/31/07, to be repurchased at
$1,691 on 1/2/08 (Collateral: $1,628 Fannie Mae
note, 5.375%, due 11/15/11, value $1,728)

      1,691      1,691
         

Total Repurchase Agreements (Cost — $3,381)

         3,381
         

Total Investments — 99.8% (Cost — $12,409,671)C

         16,434,745

Other Assets Less Liabilities — 0.2%

         24,999
         

Net Assets — 100.0%

       $ 16,459,744
         

Net Asset Value Per Share:

      

Primary Class

       $ 62.02
         

Class R

       $ 68.53
         

Financial Intermediary Class

       $ 68.70
         

Institutional Class

       $ 70.36
         

 

A

Non-income producing.

B

An “Affiliated Company”, under the Investment Company Act of 1940 as amended, due to the Fund ownership of at least 5% of the outstanding voting securities of an issuer. At December 31, 2007, the total market value of Affiliated Companies was $2,151,568 and the cost was $1,529,487.

C

Aggregate cost for federal income tax purposes is substantially the same as book cost. At December 31, 2007, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

 

Gross unrealized appreciation

    $ 5,996,401  

Gross unrealized depreciation

      (1,971,327 )
        

Net unrealized appreciation

    $ 4,025,074  
        

 

N.M. — Not Meaningful.

Security Valuation

Equity securities traded on national securities exchanges are valued at the last quoted sales price, except securities traded on the Nasdaq Stock Market, Inc. (“NASDAQ”) which are valued in accordance with the NASDAQ Official Closing Price. Over the counter securities are valued at the mean between the latest bid and asked prices as furnished by dealers who make markets in such securities or by an independent pricing service. Fixed income securities for which market quotations are readily available are valued at current market value.

The Fund’s securities are valued on the basis of readily available market quotations or, lacking such quotations, at fair value as determined under policies approved by and under the general oversight of the Board of Directors. In determining fair value, all relevant qualitative and quantitative factors known to the Fund are considered. These factors are subject to change over time and are reviewed periodically. The Fund may use fair value pricing instead of market quotations to value one or more securities if the Fund believes that, because of special circumstances, doing so would more accurately reflect the prices the Fund would expect to realize on the current sale of those securities. Further, because of the inherent uncertainty of valuation, those estimated values may differ significantly from quoted or published values or from the values that would have been used had a ready market for the investments existed, and the differences could be material. All fair valued securities are identified in the portfolio of investments.

Other information regarding the Fund is available in the Fund’s most recent Report to Shareholders. This information is available on the Securities and Exchange Commission’s website (www.sec.gov).

Transactions in Affiliated Companies:

An “Affiliated Company”, as defined in the Investment Company Act of 1940, is a company in which a fund owns 5% or more of the company’s outstanding voting securities at any time during the period. The following transactions were effected in shares of such companies for the year ended December 31, 2007:

 

     Affiliated
Value at
3/31/07		    Purchased    Sold    Dividend
Income		    Value at
12/31/07		    Realized
Gain/(Loss)		  
      Cost    Shares    Cost    Shares         

Amazon.com Inc.A

    $ 935,065      —      —      $ 314,421    11,230      —      $ —      $ 631,095  

Centex Corp.A

      259,036      —      —        85,631    1,231    $ 735      —        (51,297 )

Eastman Kodak Co.

      485,040      —      —        29,440    575      10,614      457,623      (13,918 )

Expedia IncA

      445,295      —      —        232,698    8,652      —        —        41,552  

Health Net Inc.A

      498,948      —      —        116,697    7,362      —        —        273,026  

IAC/InterActiveCorpA

      626,344      —      —        211,999    6,475      —        —        (25,853 )

Qwest Communications International Inc.

      935,724      —      —        156,837    7,942      —        673,963      (83,616 )

The AES Corp.

      1,056,741      —      —        25,309    1,420      —        1,019,982      1,692  
                                                 
   $ 5,242,193    $ —         $ 1,173,032       $ 11,349    $ 2,151,568    $ 772,681  
                                                 

 

A

This security is no longer an affiliated company.

Item 2 – Controls and Procedures

 

  (a) The Registrant’s principal executive and principal financial officers have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant’s disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-Q is accumulated and communicated to the Registrant’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

 

  (b) There were no changes in the Registrant’s internal control over financial reporting during the Registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the internal control over financial reporting.

Item 3 – Exhibits

Certifications as required by Rule 30a-2(a) under the Investment Company Act of 1940 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.

Legg Mason Value Trust, Inc.

 

By: /s/ Mark R. Fetting
Mark R. Fetting
President, Legg Mason Value Trust, Inc.
Date: February 22, 2008

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/ Mark R. Fetting
Mark R. Fetting
President, Legg Mason Value Trust, Inc.
Date: February 22, 2008

 

By: /s/ Marie K. Karpinski
Marie K. Karpinski
Vice President and Chief Financial Officer, Legg Mason Value Trust, Inc.
Date: February 21, 2008