0001140361-18-040770.txt : 20181017 0001140361-18-040770.hdr.sgml : 20181017 20181017145453 ACCESSION NUMBER: 0001140361-18-040770 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20180930 FILED AS OF DATE: 20181017 DATE AS OF CHANGE: 20181017 EFFECTIVENESS DATE: 20181017 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EAGLE CAPITAL GROWTH FUND, INC. CENTRAL INDEX KEY: 0000850027 IRS NUMBER: 311274796 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-05807 FILM NUMBER: 181126278 BUSINESS ADDRESS: STREET 1: 225 EAST MASON STREET STREET 2: SUITE 802 CITY: MILWAUKEE STATE: WI ZIP: 53202 BUSINESS PHONE: 414-765-1107 MAIL ADDRESS: STREET 1: 225 EAST MASON STREET STREET 2: SUITE 802 CITY: MILWAUKEE STATE: WI ZIP: 53202 FORMER COMPANY: FORMER CONFORMED NAME: NAIC GROWTH FUND INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: BETTER INVESTING FUND INC DATE OF NAME CHANGE: 19890716 N-Q 1 formnq.htm N-Q
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, 2018

Date of reporting period: September 30, 2018

ITEM 1. SCHEDULE OF INVESTMENTS
Eagle Capital Growth Fund, Inc.
Portfolio of Investments (as of September 30, 2018) (unaudited)

Common Stock (99.7% of total investments)
              
LEVEL ONE
        
Industry
  
Shares
    
Cost
    
Market Value
    
% Total Inv.
  
Consumer
                        
Colgate-Palmolive Co.
    
69,300
      
4,090,062
      
4,639,635
        
Kimberly-Clark Corp.
    
7,000
      
704,472
      
795,480
        
PepsiCo, Inc.
    
14,700
      
624,617
      
1,643,460
        
Procter & Gamble Company
    
20,500
      
1,495,260
      
1,706,215
        
                   
$
8,784,790
      
(25.6
%)
Data Processing
                                
Automatic Data Processing, Inc.
    
11,800
      
468,097
      
1,777,788
          
Paychex, Inc.
    
23,500
      
831,439
      
1,730,775
          
                   
$
3,508,563
      
(10.2
%)
Drug/Medical Device
                                
Abbott Laboratories Inc.
    
7,500
      
175,588
      
550,200
          
Johnson & Johnson
    
4,000
      
45,500
      
552,680
          
Stryker Corp.
    
9,600
      
40,950
      
1,705,728
          
                   
$
2,808,608
      
(8.2
%)
Food
                                
Kraft Heinz Company
    
55,000
      
3,320,812
      
3,031,050
          
                   
$
3,031,050
      
(8.8
%)
Industrial
                                
Illinois Tool Works Inc.
    
9,000
      
379,352
      
1,270,080
          
Waters Corp.*
    
6,000
      
302,341
      
1,168,080
          
                   
$
2,438,160
      
(7.1
%)
Insurance
                                
Berkshire Hathaway Inc. B*
    
8,000
      
590,996
      
1,712,880
          
Markel Corp.*
    
1,300
      
831,360
      
1,545,037
          
                   
$
3,257,917
      
(9.5
%)
Mutual Fund Managers
                                
Diamond Hill Investment Group
    
9,900
      
1,873,741
      
1,637,361
          
Franklin Resources, Inc.
    
52,500
      
1,682,075
      
1,596,525
          
T. Rowe Price Group Inc.
    
13,800
      
960,374
      
1,506,684
          
                   
$
4,740,570
      
(13.8
%)
Restaurant
                                
Starbucks Corp.
    
30,000
      
1,471,080
      
1,705,200
          
                   
$
1,705,200
      
(5.0
%)
Retail
                                
AutoZone Inc.*
    
1,500
      
797,565
      
1,163,550
          
eBay Inc.*
    
42,900
      
1,072,753
      
1,416,558
          
O'Reilly Automotive Inc.*
    
4,000
      
814,758
      
1,389,280
          
                   
$
3,969,388
      
(11.6
%)
                                 
Total common stock investments
                  
$
34,244,246
          
                                 
Money Market Funds (0.3% of total investments)
                  
LEVEL ONE
          
Morgan Stanley Inst. Liquidity Fund, Treasury, yield 1.90%
                    
94,976
          
                                 
Total investments
                  
$
34,339,222
          
All other assets
                    
48,340
          
Accrued investment advisory fees
                    
(20,624
)
        
All other liabilities
                    
(8,987
)
        
                                 
Total net assets
                  
$
34,357,951
          

*Non-dividend paying security
 
Footnote:

The following information is based upon federal income tax cost of portfolio investments, excluding money market investments, as of September 30, 2018:

Gross unrealized appreciation
  
$
12,556,632
  
Gross unrealized depreciation
    
885,578
  
Net unrealized appreciation
  
$
11,671,054
  
         
Federal income tax basis
  
$
22,573,192
  

ITEM 2. Controls and Procedures


 (a)
As of October 7, 2018, 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.


 EX-99.CERT 2 ex99_cert.htm EXHIBIT 99 CERT
Exhibit 99.1

CERTIFICATIONS

I, Luke E. Sims, certify that:

1.  I have reviewed this report on Form N-Q of Eagle Capital Growth Fund, Inc;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

4.  The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 
(a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made know to us by others within those entities, particularly during the period in which this report is being prepared;

 
(b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 
(c)
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

 
(d)
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.  The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 
(a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

 
(b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: October 15, 2018
/s/ Luke E. Sims
 
Luke E. Sims
 
President and Chief Executive Officer
 
(Principal Executive Officer)

Exhibit 99.2

I, David C. Sims, certify that:

1.  I have reviewed this report on Form N-Q of Eagle Capital Growth Fund, Inc;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

4.  The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 
(a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made know to us by others within those entities, particularly during the period in which this report is being prepared;

 
(b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 
(c)
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

 
(d)
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.  The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 
(a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

 
(b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: October 15, 2018
/s/   David C. Sims
 
David C. Sims
 
Chief Financial Officer
 
(Principal Financial Officer)