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)
Jodi Levine
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, 2006
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Date of reporting period: March 31, 2006
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ITEM 1: SCHEDULE OF INVESTMENTS
CORNERSTONE STRATEGIC VALUE FUND, INC.
SCHEDULE OF INVESTMENTS -- MARCH 31, 2006 (UNAUDITED)
NO. OF
DESCRIPTION SHARES VALUE
EQUITY SECURITIES - 99.68%
CLOSED-END DOMESTIC FUNDS - 1.68%
Adams Express Company 49,500 $ 658,350
General American Investors Company 3,000 113,520
Tri-Continental Corporation 29,000 586,960
Zweig Fund, Inc. ^ 176,600 971,300
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2,330,130
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CONSUMER DISCRETIONARY - 10.65%
Acco Brands Corporation + 235 5,217
Bed Bath & Beyond Inc. + 4,200 161,280
Best Buy Co., Inc. 7,125 398,501
Black & Decker Corporation (The) 3,000 260,670
Carnival Corporation ^ 11,800 558,966
CBS Corporation 9,150 219,417
Circuit City Stores, Inc. 5,000 122,400
Clear Channel Communications, Inc. ^ 8,800 255,288
Comcast Corporation, Class A + 35,037 916,568
D.R. Horton, Inc. ^ 7,000 232,540
Eastman Kodak Company 1,400 39,816
eBay Inc. + 19,000 742,140
Federated Department Stores, Inc. 5,526 403,398
Ford Motor Company ^ 6,000 47,760
Fortune Brands, Inc. 3,500 282,205
Gannett Co., Inc. 6,000 359,520
Gap, Inc. (The) 12,200 227,896
Goodyear Tire & Rubber Company (The) + ^ 4,500 65,160
Harley-Davidson, Inc. 4,400 228,272
Hilton Hotels Corporation 11,200 285,152
Home Depot, Inc. (The) 28,100 1,188,630
J.C. Penney Company, Inc. 4,500 271,845
Kohl's Corporation + 5,000 265,050
Live Nation Inc. + 1,100 21,824
Lowe's Companies, Inc. 11,200 721,728
Marriott International, Inc., Class A 2,100 144,060
Mattel, Inc. ^ 5,500 99,715
McDonald's Corporation 17,600 604,736
News Corporation 30,000 498,300
NIKE, Inc. 2,300 195,730
Omnicom Group Inc. ^ 4,100 341,325
Sears Holdings Corporation + 503 66,517
Staples, Inc. 10,800 275,616
Starbucks Corporation + 10,800 406,512
Target Corporation 11,800 613,718
Time Warner Inc. 76,000 1,276,040
TJX Companies, Inc. (The) ^ 7,000 173,740
Univision Communications Inc., Class A + 7,000 241,290
Viacom Inc., Class B + 11,950 463,660
Walt Disney Company (The) 29,200 814,388
Yum! Brands, Inc. 6,000 293,160
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14,789,750
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CONSUMER STAPLES - 9.75%
Altria Group, Inc. 29,300 2,076,198
2
NO. OF
DESCRIPTION SHARES VALUE
Anheuser-Busch Companies, Inc. 12,200 521,794
Archer-Daniels-Midland Company 5,460 183,729
Campbell Soup Company 2,000 64,800
Coca-Cola Company (The) 23,500 983,945
Coca-Cola Enterprises Inc. 6,500 132,210
Colgate-Palmolive Company 11,100 633,810
ConAgra Foods, Inc. 4,400 94,424
Costco Wholesale Corporation ^ 6,500 352,040
CVS Corporation 5,000 149,350
General Mills, Inc. 9,500 481,460
H.J. Heinz Company 6,600 250,272
Kroger Co. (The) ^ 4,800 97,728
Pepsi Bottling Group, Inc. (The) 4,000 121,560
PepsiCo, Inc. ^ 24,800 1,433,192
Procter & Gamble Company (The) 53,297 3,070,973
Sara Lee Corporation 11,500 205,620
Sysco Corporation ^ 5,800 185,890
Walgreen Co. ^ 14,300 616,759
Wal-Mart Stores, Inc. 39,800 1,880,152
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13,535,906
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ENERGY - 9.24%
Anadarko Petroleum Corp. 5,900 595,959
Baker Hughes Incorporated 8,100 554,040
Chevron Corporation 27,532 1,596,030
ConocoPhillips 17,974 1,135,058
Devon Energy Corporation 5,000 305,850
Exxon Mobil Corporation 84,000 5,112,240
Marathon Oil Corp. 7,500 571,275
Occidental Petroleum Corporation 8,000 741,200
Peabody Energy Corporation 4,000 201,640
Schlumberger Limited 11,000 1,392,270
Transocean Inc. + 2,500 200,750
Western Gas Resources, Inc. 4,400 212,300
XTO Energy, Inc. 5,000 217,850
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12,836,462
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FINANCIALS - 20.21%
AFLAC Incorporated ^ 7,000 315,910
Allstate Corporation (The) 9,300 484,623
American Express Company ^ 15,600 819,780
American International Group, Inc. 37,531 2,480,424
Ameriprise Financial, Inc. 3,120 140,587
Aon Corporation 4,900 203,399
Bank of America Corporation ^ 67,938 3,093,897
Bank of New York Company, Inc. (The) 11,400 410,856
Charles Schwab Corporation (The) 12,000 206,520
Citigroup Inc. 74,300 3,509,932
Fannie Mae ^ 13,000 668,200
Fifth Third Bancorp ^ 2,500 98,400
Franklin Resources, Inc. ^ 3,700 348,688
Freddie Mac 14,500 884,500
Goldman Sachs Group, Inc. (The) 7,300 1,145,808
Hartford Financial Services Group,
Inc. (The) 6,000 483,300
JPMorgan Chase & Co. 48,332 2,012,544
Lehman Brothers Holdings Inc. 3,600 520,308
Marsh & McLennan Companies, Inc. ^ 10,100 296,536
Merrill Lynch & Co., Inc. 10,700 842,732
MetLife, Inc. 15,200 735,224
Morgan Stanley ^ 15,500 973,710
3
NO. OF
DESCRIPTION SHARES VALUE
National City Corporation 12,700 443,230
Northern Trust Corporation 3,500 183,750
PNC Financial Services Group, Inc. 7,100 477,901
Prudential Financial, Inc. 8,200 621,642
St. Paul Travelers Companies, Inc. (The) ^ 9,476 396,002
State Street Corporation 3,500 211,505
SunTrust Banks, Inc. 7,600 552,976
U.S. Bancorp 28,401 866,230
UnumProvident Corporation ^ 8,100 165,888
Wachovia Corporation ^ 22,600 1,266,730
Washington Mutual, Inc. 15,550 662,741
Wells Fargo & Company 24,200 1,545,654
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28,070,127
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HEALTHCARE - 12.70%
Abbott Laboratories 28,000 1,189,160
Aetna Inc. 12,000 589,680
Amgen Inc. + 18,900 1,374,975
Applera Corporation 8,000 217,120
Becton, Dickinson and Company 6,900 424,902
Biogen Idec Inc. + 8,000 376,800
Boston Scientific Corporation + 12,300 283,515
Bristol-Myers Squibb Company ^ 30,500 750,605
Cardinal Health, Inc. 5,450 406,134
Caremark Rx, Inc. + 9,000 442,620
Eli Lilly and Company 14,500 801,850
Guidant Corporation 6,400 499,584
HCA, Inc. 8,500 389,215
Hospira, Inc. + 3,700 146,002
IMS Health Incorporated. 7,400 190,698
Johnson & Johnson 40,900 2,422,098
McKesson Corporation 2,300 119,899
Medco Health Solutions, Inc. + 6,687 382,630
Medtronic, Inc. 21,500 1,091,125
Merck & Co. Inc. 25,000 880,750
Pfizer Inc. ^ 84,560 2,107,235
Schering-Plough Corporation 17,000 322,830
Tenet Healthcare Corporation + 2,250 16,605
UnitedHealth Group Incorporated 23,000 1,284,780
Wyeth 19,200 931,584
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17,642,396
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INDUSTRIALS - 11.85%
3M Co. 10,400 787,176
Boeing Company (The) 11,700 911,781
Caterpillar Inc. 11,800 847,358
Cendant Corporation 28,000 485,800
CSX Corporation ^ 9,000 538,200
Danaher Corporation 3,500 222,425
Emerson Electric Co. 8,500 710,855
FedEx Corp. 4,500 508,230
General Dynamics Corporation ^ 6,200 396,676
General Electric Company 141,700 4,928,326
Honeywell International Inc. 12,500 534,625
Illinois Tool Works Inc. 5,400 520,074
Lockheed Martin Corporation 4,000 300,520
Masco Corporation 4,200 136,458
Norfolk Southern Corporation 10,000 540,700
Northrop Grumman Corporation 5,000 341,450
Rockwell Automation, Inc. 2,500 179,775
4
NO. OF
DESCRIPTION SHARES VALUE
Southwest Airlines Co. 6,450 116,036
Tyco International Ltd. 25,897 696,111
Union Pacific Corporation ^ 2,000 186,700
United Parcel Service, Inc., Class B 16,300 1,293,894
United Technologies Corporation 14,400 834,768
Waste Management, Inc. 12,200 430,660
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16,448,598
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INFORMATION TECHNOLOGY - 14.47%
Adobe Systems Incorporated + 9,200 321,264
Altera Corporation + ^ 3,400 70,176
Analog Devices, Inc. 6,700 256,543
Apple Computer, Inc. + 3,000 188,160
Applied Materials, Inc. 23,800 416,738
Automatic Data Processing, Inc. 9,900 452,232
Cisco Systems, Inc. + 96,400 2,088,988
Corning Incorporated + 17,000 457,470
Dell Inc. + 18,700 556,512
Electronic Arts Inc. + 2,000 109,440
Electronic Data Systems Corporation 10,000 268,300
EMC Corporation + ^ 212,648 2,898,392
First Data Corporation 11,324 530,190
Freescale Semiconductor Inc., Class B + 6,512 180,838
Hewlett-Packard Company 27,900 917,910
Intel Corporation 82,500 1,596,375
International Business Machines
Corporation 12,600 1,039,122
Linear Technology Corporation 6,500 228,020
Lucent Technologies Inc. + 10,700 32,635
Maxim Integrated Products, Inc. 2,300 85,445
Micron Technology, Inc. + 11,500 169,280
Microsoft Corporation 120,900 3,289,689
Motorola, Inc. 34,700 794,977
Oracle Corporation + 43,872 600,608
Paychex, Inc. 4,200 174,972
QUALCOMM Inc. 21,000 1,062,810
Sanmina-SCI Corporation + ^ 5,500 22,550
Solectron Corporation + 3,000 12,000
Sun Microsystems, Inc. + 7,500 38,475
Symantec Corporation + 10,000 168,300
Texas Instruments Incorporated 23,900 776,033
Yahoo! Inc. + 8,800 283,888
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20,088,332
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MATERIALS - 2.30%
Air Products & Chemicals, Inc. ^ 1,000 67,190
Alcoa Inc. 14,200 433,952
Dow Chemical Company (The) 15,400 625,240
E. I. du Pont de Nemours and Company 14,800 624,708
International Paper Company 10,500 362,985
Monsanto Company ^ 5,080 430,530
Newmont Mining Corporation 7,000 363,230
Praxair, Inc. 3,000 165,450
Rohm and Hass Company ^ 1,000 48,870
Weyerhaeuser Company 1,000 72,430
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3,194,585
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REAL ESTATE INVESTMENT TRUST - 0.24%
Simon Property Group, Inc. ^ 4,000 336,560
TELECOMMUNICATIONS SERVICES - 3.18%
5
NO. OF
DESCRIPTION SHARES VALUE
ALLTEL Corporation ^ 4,000 259,000
AT&T Inc. 48,364 1,307,763
BellSouth Corporation 23,000 796,950
Sprint Nextel Corporation 38,446 993,445
Verizon Communications Inc. 30,900 1,052,454
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4,409,612
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UTILITIES - 3.41%
American Electric Power Company, Inc. 10,700 364,014
CenterPoint Energy, Inc. 13,900 165,827
Dominion Resources, Inc. 7,100 490,113
Duke Energy Corporation 13,300 387,695
Edison International ^ 4,000 164,720
Exelon Corporation ^ 11,000 581,900
FirstEnergy Corp. 5,000 244,500
FPL Group, Inc. ^ 7,000 280,980
PG&E Corporation 9,000 350,100
Progress Energy, Inc. 3,500 153,930
Public Service Enterprise Group
Incorporated 6,000 384,240
Southern Company (The) 11,900 389,963
TXU Corp. 9,400 420,744
Williams Companies, Inc. (The) 10,000 213,900
Xcel Energy, Inc. 8,200 148,830
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4,741,456
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TOTAL EQUITY SECURITIES
(cost - $121,776,557) 138,423,914
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PRINCIPAL
AMOUNT
(000'S)
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SHORT-TERM INVESTMENTS - 1.99%
REPURCHASE AGREEMENTS - 1.99%
Bear, Stearns & Co. Inc. * ** $ 1,241 1,240,947
(Agreement dated 3/31/2006 to be
repurchased at $1,241,199), 2.4375%,
4/3/2006, collateralized by
$1,278,758 in U.S. Treasury Bonds)
Bear, Stearns & Co. Inc. * ** 1,051 1,050,680
(Agreement dated 3/31/2006 to be
repurchased at $1,051,107), 4.8750%,
4/3/2006, collateralized by
$1,081,300 in U.S. Treasury Bonds
and STRIPS)
Bear, Stearns & Co. Inc. 473 472,926
(Agreement dated 3/31/2006 to be
repurchased at $473,103), 4.5000%,
4/3/2006, collateralized by $487,243
in U.S. Treasury Bonds)
TOTAL SHORT-TERM INVESTMENTS
(cost - $2,764,553) 2,764,553
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6
NO. OF
DESCRIPTION SHARES VALUE
TOTAL INVESTMENTS - 101.67%
(cost - $124,541,110) 141,188,467
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LIABILITIES IN EXCESS OF OTHER ASSETS - (1.67)% (2,317,663)
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NET ASSETS - 100.00% $138,870,804
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+ Non-income producing security.
* Stated interest rate, before rebate earned by borrower of securities on
loan.
** Represents investment purchased with collateral received for securities on
loan.
^ Security or a portion thereof is out on loan.
Federal Income Tax Cost - At March 31, 2006, 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
$124,541,110, $21,267,592, ($4,620,235), and $16,647,357, 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 on March 10, 2006
with a file number 811-05150.
Other information regarding the Fund is available in the Fund's most recent
annual report filed with the Securities and Exchange Commission on Form N-CSR on
March 10, 2006, file number 811-05150. 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.
7
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.
8
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 25, 2006
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 25, 2006
/s/ Jodi B. Levine
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Name: Jodi B. Levine
Title: Principal Financial Officer (Treasurer)
Date: May 25, 2006
9