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 811-05150
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Cornerstone Strategic Value Fund, Inc.
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(Exact name of registrant as specified in charter)
383 Madison Avenue, New York, NY 10179
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(Address of principal executive offices) (Zip code)
Vincent L. Pereira
Cornerstone Strategic Value Fund, Inc., 383 Madison Avenue, New York, NY 10179
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(Name and address of agent for service)
Registrant's telephone number, including area code: (212) 272-3550
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Date of fiscal year end: December 31, 2005
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Date of reporting period: January 1, 2005 through March 31, 2005
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ITEM 1: SCHEDULE OF INVESTMENTS
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CORNERSTONE STRATEGIC VALUE FUND, INC.
SCHEDULE OF INVESTMENTS - MARCH 31, 2005 (UNAUDITED)
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NO. OF
DESCRIPTION SHARES VALUE
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EQUITY SECURITIES - 99.44%
CLOSED-END DOMESTIC FUNDS - 2.17%
Adams Express Co. 49,500 $ 637,065
General American Investors Co., Inc. 3,000 92,610
Salomon Brothers Fund, Inc. (The) 11,900 150,535
Tri-Continental Corp. 77,000 1,370,600
Zweig Fund, Inc. 176,600 967,768
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3,218,578
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CONSUMER DISCRETIONARY - 14.68%
Bed Bath & Beyond Inc. + 4,200 153,468
Best Buy Co., Inc. 4,750 256,548
Carnival Corp. 11,800 611,358
Circuit City Stores, Inc. 1,000 16,050
Clear Channel Communications, Inc. 8,800 303,336
Comcast Corp., Class A + 31,537 1,065,320
Costco Wholesale Corp. 6,500 287,170
CVS Corp. 2,500 131,550
Delphi Corp. 7,600 34,048
Eastman Kodak Co. 1,400 45,570
Federated Department Stores, Inc. 1,000 63,640
Ford Motor Co. 26,300 297,979
Fortune Brands, Inc. 1,000 80,630
Furniture Brands International, Inc. 52,200 1,138,482
Gannett Co., Inc. 2,000 158,160
Gap, Inc. (The) 12,200 266,448
General Motors Corp. 6,500 191,035
Gildan Activewear Inc., Class A + 44,300 1,882,750
Goodyear Tire & Rubber Co. (The) 4,500 60,075
Harley-Davidson, Inc. 4,400 254,144
Hilton Hotels Corp. 3,200 71,520
Home Depot, Inc. (The) 30,600 1,170,144
J.C. Penney Co., Inc. 4,500 233,640
Kohl's Corp. 5,000 258,150
Lowe's Companies, Inc. 11,200 639,408
Marriott International, Inc., Class A 2,100 140,406
Mattel, Inc. 5,500 117,425
May Department Stores Co. 4,900 181,398
McDonald's Corp. 17,600 548,064
Monsanto Co. 580 37,410
News Corp., Class A 30,000 507,600
NIKE, Inc., Class B 2,300 191,613
Omnicom Group Inc. 4,100 362,932
Reebok International Ltd. 1,500 66,450
Rockwell Automation, Inc. 2,500 141,600
Sears Holdings Corp. + 503 66,984
Staples, Inc. 7,200 226,296
Starbucks Corp. + 5,400 278,964
Target Corp. 11,800 590,236
Time Warner Inc. + 41,000 719,550
TJX Companies, Inc. (The) 7,000 172,410
Toys "R" Us, Inc. + 1,000 25,760
United Natural Foods, Inc. 99,400 2,845,822
Viacom Inc., non-voting Class B 23,900 832,437
Wal-Mart Stores, Inc. 59,800 2,996,578
Walt Disney Co. (The) 29,200 838,916
Yum! Brands, Inc. 3,000 155,430
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21,714,904
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CONSUMER STAPLES - 6.35%
Altria Group, Inc. 29,300 1,915,927
Anheuser-Busch Companies, Inc. 8,700 412,293
Archer-Daniels-Midland Co. 5,460 134,207
Campbell Soup Co. 2,000 58,040
Coca-Cola Co. (The) 15,500 645,885
Coca-Cola Enterprises Inc. 6,500 133,380
Colgate-Palmolive Co. 2,100 109,557
ConAgra Foods, Inc. 4,400 118,888
General Mills, Inc. 2,500 122,875
Gillette Co. (The) 12,600 636,048
H.J. Heinz Co. 1,600 58,944
Kimberly-Clark Corp. 6,900 453,537
Kroger Co. (The) + 4,800 76,944
Pepsi Bottling Group, Inc. (The) 4,000 111,400
PepsiCo, Inc. 24,800 1,315,144
Procter & Gamble Co. (The) 37,600 1,992,800
Sara Lee Corp. 11,500 254,840
Sysco Corp. 5,800 207,640
Walgreen Co. 14,300 635,206
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9,393,555
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ENERGY - 7.86%
Anadarko Petroleum Corp. 900 68,490
Baker Hughes Inc. 1,100 48,939
CenterPoint Energy, Inc. 3,900 46,917
ChevronTexaco Corp. 19,330 1,127,132
ConocoPhillips 6,237 672,598
Exxon Mobil Corp. 71,000 4,231,600
FMC Technologies, Inc. + 93,300 3,095,694
Marathon Oil Corp. 1,500 70,380
Occidental Petroleum Corp. 4,000 284,680
Reliant Energy Inc. + 1,104 12,564
Schlumberger Ltd. 2,000 140,960
Unocal Corp. 1,200 74,028
Western Gas Resources, Inc. 50,800 1,750,060
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11,624,042
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FINANCIALS - 18.30%
Aetna Inc. 6,000 449,700
Affiliated Managers Group, Inc. + 30,300 1,879,509
AFLAC Inc. 7,000 260,820
Allstate Corp. (The) 9,300 502,758
American Express Co. 15,600 801,372
American International Group, Inc. 37,531 2,079,593
Aon Corp. 4,900 111,916
Bank of America Corp. 55,616 2,452,666
Bank of New York Co., Inc. (The) 8,400 244,020
Charles Schwab Corp. (The) 12,000 126,120
Citigroup Inc. 74,300 3,339,042
Fannie Mae 13,000 707,850
Fifth Third Bancorp 9,000 386,820
First Marblehead Corp. (The) 40,700 2,341,471
Franklin Resources, Inc. 3,700 254,005
Freddie Mac 9,500 600,400
Goldman Sachs Group, Inc. (The) 7,300 802,927
Hartford Financial Services Group, Inc. (The) 6,000 411,360
JPMorgan Chase & Co. 30,332 1,049,487
Lehman Brothers Holdings Inc. 3,600 338,976
Manulife Financial Corp. 2,963 141,987
Marsh & McLennan Companies, Inc. 4,100 124,722
MBNA Corp. 12,600 309,330
Merrill Lynch & Co., Inc. 10,700 605,620
MetLife, Inc. 10,200 398,820
Morgan Stanley 15,500 887,375
National City Corp. 9,700 324,950
Northern Trust Corp. 3,500 152,040
Piper Jaffray Companies, Inc. + 104 3,805
PNC Financial Services Group, Inc. 4,100 211,068
Prudential Financial, Inc. 8,200 470,680
State Street Corp. 3,500 153,020
St. Paul Travelers Companies, Inc. (The) 9,476 348,053
SunTrust Banks, Inc. 3,600 259,452
UnumProvident Corp. 1,100 18,722
U.S. Bancorp 25,401 732,057
Wachovia Corp. 17,600 896,016
Washington Mutual, Inc. 11,550 456,225
Wells Fargo & Co. 24,200 1,447,160
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27,081,914
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HEALTHCARE - 11.91%
Abbott Laboratories 21,000 979,020
Amgen Inc. + 18,900 1,100,169
Becton, Dickinson & Co. 3,900 227,838
Biogen Idec Inc. + 3,000 103,530
Boston Scientific Corp. 12,300 360,267
Bristol-Myers Squibb Co. 10,500 267,330
Cardinal Health, Inc. 5,450 304,110
Caremark Rx, Inc. + 6,500 258,570
Cooper Companies, Inc. (The) 40,500 2,952,450
Edwards Lifesciences Corp. + 39,200 1,694,224
Eli Lilly & Co. 14,500 755,450
Guidant Corp. 1,400 103,460
HCA, Inc. 3,500 187,495
Hospira, Inc. + 700 22,589
Johnson & Johnson 40,900 2,746,844
McKesson Corp. 2,300 86,825
Medco Health Solutions, Inc. + 1,687 83,625
Medtronic, Inc. 1,500 76,425
Merck & Co. Inc. 20,500 663,585
Pfizer Inc. 99,660 2,618,068
Schering-Plough Corp. 5,000 90,750
Tenet Healthcare Corp. + 2,250 25,941
UnitedHealth Group Inc. 11,500 1,096,870
Wyeth 19,200 809,856
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17,615,291
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INDUSTRIALS - 12.28%
3M Co. 10,400 891,176
Automatic Data Processing, Inc. 4,900 220,255
Boeing Co. (The) 11,700 683,982
Caterpillar Inc. 2,900 265,176
Cendant Corp. 14,000 287,560
CSX Corp. 1,000 41,650
Emerson Electric Co. 3,500 227,255
FedEx Corp. 4,500 422,775
General Dynamics Corp. 3,100 331,855
General Electric Co. 122,700 4,424,562
Heartland Express, Inc. 40,435 774,330
Honeywell International Inc. 12,500 465,125
Illinois Tool Works Inc. 2,400 214,872
IMS Health Inc. 1,400 34,146
Lockheed Martin Corp. 4,000 244,240
Masco Corp. 4,200 145,614
Northrop Grumman Corp. 5,000 269,900
Paychex, Inc. 4,200 137,844
PHH Corp. + 700 15,309
Shuffle Master, Inc. + 48,300 1,398,768
Southwest Airlines Co. 6,450 91,848
Transocean Inc. + 2,500 128,650
Tyco International Ltd. 33,397 1,128,819
Union Pacific Corp. 2,000 139,400
United Parcel Service, Inc., Class B 16,300 1,185,662
United Technologies Corp. 7,200 731,952
USF Corp. 65,100 3,141,726
Waste Management, Inc. 4,200 121,170
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18,165,621
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INFORMATION TECHNOLOGY - 14.42%
Adobe Systems Inc. 1,100 73,887
Agere Systems Inc., Class A + 240 343
Altera Corp. + 3,400 67,252
Analog Devices, Inc. 2,700 97,578
Apple Computer, Inc. + 3,000 125,010
Applied Materials, Inc. + 7,800 126,750
CACI International Inc., Class A + 9,800 541,254
Cisco Systems, Inc. + 96,400 1,724,596
Corning Inc. + 8,000 89,040
Dell Inc. + 29,700 1,141,074
eBay Inc. + 19,000 707,940
Electronic Arts Inc. + 2,000 103,560
Electronic Data Systems Corp. 1,000 20,670
EMC Corp. + 271,848 3,349,167
Fairchild Semiconductor International, Inc. + 201,600 3,090,528
First Data Corp. 7,324 287,907
Freescale Semiconductor Inc., Class B + 1,512 26,082
Hewlett-Packard Co. 27,900 612,126
Intel Corp. 65,500 1,521,565
International Business Machines Corp. 21,000 1,918,980
Linear Technology Corp. 2,500 95,775
Maxim Integrated Products, Inc. 2,300 94,001
Micron Technology, Inc. + 2,500 25,850
Microsoft Corp 142,100 3,434,557
Motorola, Inc. 25,700 384,729
Oracle Corp. + 26,100 325,728
QUALCOMM Inc. 17,000 623,050
Sanmina-SCI Corp. + 5,500 28,710
Siebel Systems, Inc. + 2,500 22,825
Solectron Corp. + 3,000 10,410
Sun Microsystems, Inc. + 7,500 30,300
Symantec Corp. + 10,000 213,300
Texas Instruments Inc. 4,900 124,901
Yahoo! Inc. + 8,800 298,320
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21,337,765
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MATERIALS - 6.67%
Air Products & Chemicals, Inc. 1,000 63,290
Alcoa Inc. 4,200 127,638
Dow Chemical Co. (The) 5,400 269,190
E.I. duPont de Nemours & Co. 3,800 194,712
Georgia-Pacific Corp. 2,000 70,980
International Paper Co. 4,500 165,555
Joy Global Inc. 93,000 3,260,580
Neenah Paper, Inc. + 209 7,027
Packaging Corp. of America 70,700 1,717,303
Peabody Energy Corp. 34,400 1,594,784
Praxair, Inc. 3,000 143,580
Rohm & Haas Co. 1,000 48,000
Steel Dynamics, Inc. 61,900 2,132,455
Weyerhaeuser Co. 1,000 68,500
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9,863,594
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REAL ESTATE INVESTMENT TRUSTS - 0.16%
Simon Property Group, Inc. 4,000 242,320
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TELECOMMUNICATION SERVICES - 2.38%
ALLTEL Corp. 4,000 219,400
AT&T Corp. 9,320 174,750
BellSouth Corp. 14,000 368,060
Lucent Technologies Inc. + 10,700 29,425
Nextel Communications, Inc., Class A + 15,500 440,510
SBC Communications Inc. 23,100 547,239
Sprint Corp. 18,800 427,700
Verizon Communications Inc. 37,100 1,317,050
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3,524,134
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UTILITIES - 2.26%
American Electric Power Co., Inc. 2,700 91,962
Dominion Resources, Inc. 7,100 528,453
Duke Energy Corp. 13,300 372,533
Edison International 4,000 138,880
Exelon Corp. 11,000 504,790
FirstEnergy Corp. 5,000 209,750
FPL Group, Inc. 7,000 281,050
Progress Energy, Inc. 3,500 146,825
Public Service Enterprise Group Inc. 1,000 54,390
Scottish Power plc, ADR 4,000 124,800
Southern Co. (The) 11,900 378,777
TXU Corp. 4,700 374,261
Xcel Energy, Inc. 8,200 140,876
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3,347,347
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TOTAL EQUITY SECURITIES
(cost - $121,128,370) 147,129,065
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PRINCIPAL
AMOUNT
(000'S)
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SHORT-TERM INVESTMENTS - 7.79%
REPURCHASE AGREEMENTS - 7.79%
Bear, Stearns & Co. Inc.
(Agreement dated 03/31/05 to be repurchased
at $861,193), 2.63%, 04/01/05, collateralized $ 861 $ 861,130
by $886,682 in U.S. Treasury Bonds
Bear, Stearns & Co. Inc.
(Agreement dated 03/31/05 to be repurchased at
$8,464,847), 2.88%*, 04/01/05, collateralized
by $8,710,540 in U.S. Treasury Bonds** 8,464 8,464,171
Bear, Stearns & Co. Inc.
(Agreement dated 03/31/05 to be repurchased at
$2,210,177), 1.44%*, 04/01/05, collateralized
by $2,275,104 in U.S. Treasury Bonds** 2,210 2,210,089
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TOTAL SHORT-TERM INVESTMENTS
(cost - $11,535,390) 11,535,390
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TOTAL INVESTMENTS - 107.23%
(cost - $132,663,760) 158,664,455
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LIABILITIES IN EXCESS OF OTHER ASSETS - (7.23)% (10,704,368)
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NET ASSETS - 100.00% $147,960,087
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+ Non-income producing security.
* Stated interest rate, before rebate earned by borrower of securities on
loan.
** Represents investment purchased with cash collateral received for
securities on loan.
ADR American Depositary Receipts.
At March 31, 2005, the Fund held no securities valued in good faith by the Board
of Directors.
Federal Income Tax Cost - At March 31, 2005, the identified cost for federal
income tax purposes, as well as the gross unrealized appreciation from
investments for those securities having an excess of value over cost, gross
unrealized depreciation from investments for those securities having an excess
of cost over value and the net unrealized appreciation from investments were
$132,663,760, $32,298,513, $(6,297,818) and $26,000,695, respectively.
Securities valuation policies and other investment related disclosures are
hereby incorporated by reference to the Fund's annual report previously filed
with the Securities and Exchange Commission on the Form N-CSR.
Other information regarding the Fund is available in the Fund's most recent
annual report. This information is also available to registered shareholders by
calling (800) 937-5449. For general inquiries, please call (212) 272-3550. This
information is also available on the website of the Securities and Exchange
Commission - http://www.sec.gov.
ITEM 2: CONTROLS AND PROCEDURES
(a) As of a date within 90 days from the filing date of this report, the
principal executive officer and principal financial officer concluded that the
registrant's disclosure controls and procedures (as defined in Rule 30a-3(c)
under the Investment Company Act of 1940 (the "Act")), were effective based on
their evaluation of the disclosure controls and procedures required by Rule
30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities and
Exchange Act of 1934.
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred
during the registrant's last fiscal quarter that have materially affected, or
are reasonably likely to materially affect, the registrant's internal control
over financial reporting.
ITEM 3: EXHIBITS
1. The certifications of the registrant as required by Rule 30a-2(a) under
the Act are exhibits to this report.
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.
Cornerstone Strategic Value Fund, Inc.
/s/ Ralph W. Bradshaw
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Name: Ralph W. Bradshaw
Title: Principal Executive Officer
Date: May 20, 2005
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.
/s/ Ralph W. Bradshaw
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Name: Ralph W. Bradshaw
Title: Principal Executive Officer
Date: May 20, 2005
/s/ Vincent L. Pereira
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Name: Vincent L. Pereira
Title: Principal Financial Officer
Date: May 20, 2005