N-Q 1 formnq.htm EAGLE CAPITAL GROWTH FUND, INC N-Q 3-31-2016

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: 811-05807
Eagle Capital Growth Fund, Inc.
(Exact name of registrant as specified in charter)
 
225 East Mason Street, Suite 802, Milwaukee, WI 53202-3657
(Address of principal executive offices) (zip code)
Luke E. Sims, President
Eagle Capital Growth Fund, Inc.
225 East Mason Street
Suite 802
Milwaukee, WI 53202-3657
(414) 765-1107
(Name and address of agent for service)
Registrant's telephone number, including area code:
(414) 765-1107

Date of fiscal year end: December 31, 2016

Date of reporting period: March 31, 2016
 

 


ITEM 1. SCHEDULE OF INVESTMENTS
Eagle Capital Growth Fund, Inc.
Portfolio of Investments (as of March 31, 2016) (unaudited)

Common Stock (86.3% of total investments)
                       
Industry
             
LEVEL ONE
       
Bank
 
Shares
   
Cost
   
Market Value
   
% Total Inv.
 
Wells Fargo & Company
   
15,000
     
597,750
     
725,400
       
                   
$
725,400
     
(2.5
%)
Consumer
                               
The Coca-Cola Company
   
28,000
     
1,058,939
     
1,298,920
         
Colgate-Palmolive Co.
   
12,000
     
72,938
     
847,800
         
PepsiCo, Inc.
   
10,000
     
168,296
     
1,024,800
         
Procter & Gamble Company
   
15,000
     
1,038,636
     
1,234,650
         
                   
$
4,406,170
     
(15.3
%)
Data Processing
                               
Automatic Data Processing, Inc.
   
16,000
     
490,404
     
1,435,360
         
Paychex, Inc.
   
28,500
     
730,799
     
1,539,285
         
                   
$
2,974,645
     
(10.4
%)
Health Care
                               
Abbott Laboratories Inc.
   
7,500
     
175,588
     
313,725
         
Johnson & Johnson
   
4,000
     
45,500
     
432,800
         
Stryker Corp.
   
11,000
     
47,141
     
1,180,190
         
                   
$
1,926,715
     
(6.7
%)
Industrial
                               
CSW Industrials, Inc.*
   
25,750
     
756,821
     
811,125
         
Deere & Company
   
10,000
     
793,483
     
769,900
         
Emerson Electric Co.
   
18,000
     
810,169
     
978,840
         
Illinois Tool Works Inc.
   
14,000
     
634,079
     
1,434,160
         
SL Industries Inc.*
   
11,800
     
442,543
     
401,200
         
Waters Corp.*
   
6,000
     
302,341
     
791,520
         
                   
$
5,186,745
     
(18.1
%)
Insurance
                               
AFLAC Corp.
   
19,000
     
1,018,259
     
1,199,660
         
Berkshire Hathaway Inc. B*
   
17,000
     
1,303,475
     
2,411,960
         
Markel Corp.*
   
1,300
     
831,360
     
1,159,041
         
White Mountains Insurance Group, Ltd.
   
1,000
     
730,019
     
802,600
         
                   
$
5,573,261
     
(19.4
%)
Mutual Fund Managers
                               
Franklin Resources, Inc.
   
45,000
     
1,746,835
     
1,757,250
         
T. Rowe Price Group, Inc.
   
18,500
     
1,291,871
     
1,359,010
         
                   
$
3,116,260
     
(10.8
%)
Retail
                               
eBay Inc.*
   
37,500
     
961,009
     
894,750
         
                   
$
894,750
     
(3.1
%)
                                 
Total common stock investments
                 
$
24,803,946
         
                                 
Money Market Funds (13.7% of total investments)
                 
LEVEL ONE
         
Federated Government Oblig. #5 Inst., 0.21%
                 
$
3,929,969
         
                                 
Total investments
                 
$
28,733,915
         
All other assets
                   
65,895
         
Accrued investment advisory fees
                   
(20,425
)
       
All other liabilities
                   
(12,710
)
       
                                 
Total net assets
                 
$
28,766,675
         
                                 
*Non-dividend paying security
                               


Footnote:

The following information is based upon federal income tax cost of portfolio investments as of March 31, 2016:

Gross unrealized appreciation
 
$
9,057,906
 
Gross unrealized depreciation
   
302,215
 
Net unrealized appreciation
 
$
8,755,691
 
         
Federal income tax basis
 
$
16,048,255
 

ITEM 2. Controls and Procedures

(a) As of April 1, 2016, an evaluation of the effectiveness of the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) was performed by management with the participation of the registrant's President and Chief Executive Officer (who is the principal executive officer of the registrant) and the registrant’s Chief Financial Officer (who is the principal financial officer of the registrant). Based on that evaluation, the registrant's President and Chief Executive Officer and Chief Financial Officer concluded that the registrant's disclosure controls and procedures are effectively designed to ensure that information required to be disclosed by the registrant is recorded, processed, summarized and reported within the time periods specified by the Commission's rules and forms, and that information required to be disclosed by the registrant has been accumulated and communicated to the registrant's management, including its principal executive officer and principal financial officer, or persons performing similar functions as appropriate to allow timely decisions regarding required disclosure.

(b) Fair Value Accounting—Accounting standards require certain assets and liabilities be reported at fair value in the financial statements and provides a framework for establishing that fair value. The framework for determining fair value is based on a hierarchy that prioritizes the inputs and valuation techniques used to measure fair value.

In general, fair values determined by Level 1 inputs use quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.

Fair values determined by Level 2 inputs use other inputs that are observable, either directly or indirectly. These Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals.

Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset. These level 3 fair value measurements are based primarily on management’s own estimates using pricing models, discounted cash flow methodologies, or similar techniques taking into account the characteristics of the asset.