formn-q.htm
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, 2013

Date of reporting period: March 31, 2013
 
 
 
 
 
ITEM 1.   SCHEDULE OF INVESTMENTS
Eagle Capital Growth Fund, Inc.
Portfolio of Investments (as of March 31, 2013) (unaudited)

Common Stock (76.7% of total investments)
     LEVEL ONE  
                         
Industry
                        
Consumer
  
Shares
    
Cost
    
Market Value
    
% Total Inv.
  
Colgate-Palmolive Co.
     6,000       72,938       708,180        
PepsiCo, Inc.
     10,000       168,296       791,100        
Procter & Gamble Co.
     11,000       658,137       847,660        
The Coca-Cola Company
     11,000       410,080       444,840        
                    $ 2,791,780       (10.6 %)
Data Processing
                                
Automatic Data Processing, Inc.
     24,000       877,946       1,560,720          
Paychex, Inc.
     31,000       797,952       1,086,860          
                    $ 2,647,580       (10.1 %)
Drug/Medical Device
                                
Abbott Laboratories Inc.
     7,500       175,588       264,900          
Johnson & Johnson
     12,500       484,536       1,019,125          
Stryker Corp.
     18,000       82,375       1,174,320          
                    $ 2,458,345       (9.4 %)
Industrial
                                
Emerson Electric Co.
     20,000       900,188       1,117,400          
Gardner Denver Inc.
     28,500       1,998,078       2,140,635          
Hillenbrand, Inc.
     51,000       987,591       1,289,280          
Illinois Tool Works Inc.
     17,000       786,916       1,035,980          
Sigma-Aldrich Corp.
     16,000       498,184       1,242,400          
Waters Corp.*
     6,000       302,341       563,460          
                    $ 7,389,155       (28.2 %)
Mutual Fund Managers
                                
Eaton Vance Corp.
     28,000       607,484       1,171,240          
Franklin Resources, Inc.
     4,500       427,398       678,645          
                    $ 1,849,885       (7.0 %)
Insurance
                                
Berkshire Hathaway Inc.*
     17,000       1,303,475       1,771,400          
The Chubb Corporation
     14,000       715,049       1,225,420          
                    $ 2,996,820       (11.4 %)
                                 
Total Common Stock Investments
                   $ 20,133,565          
                                 
Money Market Funds (23.3% of total investments)
       LEVEL ONE  
                                 
Federated Government Obligations Fund #5 Institutional, 0.01%**
                  $ 6,114,854          
Total Money Market Investment
                   $ 6,114,854          
                                 
Total investments
                   $ 26,248,419          
                                 
All other assets less liabilities
                   $ 60,070          
Accrued investment advisory fees
                     (15,025 )        
                                 
Total net assets
                   $ 26,323,514          
 
*Non-dividend paying security
**The rate shown represents the 7-day yield at March 31, 2013.
 
 
 
 

Footnote:

The following information is based upon federal income tax cost of portfolio investments as of March 31, 2013:

Gross unrealized appreciation
  
$
7,879,012
  
Gross unrealized depreciation
    
-
  
Net unrealized appreciation
  
$
7,879,012
  
         
Federal income tax basis
  
$
18,369,408
  
 
ITEM 2.  Controls and Procedures
 
 
(a)
As of April 1, 2013, 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.