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, 2007
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Date of reporting period: March 31, 2007
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ITEM 1: SCHEDULE OF INVESTMENTS
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CORNERSTONE STRATEGIC VALUE FUND, INC.
SCHEDULE OF INVESTMENTS -- MARCH 31, 2007 (UNAUDITED)
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NO. OF
DESCRIPTION SHARES VALUE
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EQUITY SECURITIES - 99.40%
CLOSED-END FUNDS - 1.16%
Adams Express Company 49,500 $ 693,990
General American Investors Company 3,000 110,520
Liberty All-Star Equity Fund ^ 67,300 572,050
Liberty All-Star Growth Fund, Inc. 26,300 144,124
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1,520,684
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CONSUMER DISCRETIONARY - 10.79%
Amazon.com, Inc. * 5,500 218,845
Bed Bath & Beyond Inc. * 4,200 168,714
Best Buy Co., Inc. 3,625 176,610
Carnival Corporation 11,800 552,948
Clear Channel Communications, Inc. 3,300 115,632
Coach, Inc. * 3,500 175,175
Comcast Corporation, Class A * 28,555 741,002
D.R. Horton, Inc. 3,000 66,000
Federated Department Stores, Inc. 11,052 497,893
Fortune Brands, Inc. 3,500 275,870
Gannett Co., Inc. 3,500 197,015
Gap, Inc. (The) 12,200 209,962
Goodyear Tire & Rubber Company (The) * 4,500 140,355
Harley-Davidson, Inc. 4,400 258,500
Hilton Hotels Corporation 6,200 222,952
Home Depot, Inc. (The) 23,100 848,694
J.C. Penney Company, Inc. ^ 4,500 369,720
Johnson Controls, Inc. 2,500 236,550
Kohl's Corporation * 2,500 191,525
Lowe's Companies, Inc. ^ 22,400 705,376
Marriott International, Inc., Class A ^ 4,200 205,632
Mattel, Inc. 5,500 151,635
McDonald's Corporation 15,100 680,255
News Corporation, Class A 23,000 531,760
NIKE, Inc., Class B 7,300 775,698
Omnicom Group Inc. 6,600 675,708
Sears Holdings Corporation * 503 90,620
Staples, Inc. 10,800 279,072
Starbucks Corporation * 5,800 181,888
Target Corporation 11,800 699,268
Time Warner Inc. 76,000 1,498,720
TJX Companies, Inc. (The) 3,000 80,880
Toyota Motor Corporation ^ ADR 2,500 320,400
Viacom Inc., Class B * 9,450 388,490
Walt Disney Company (The) 27,200 936,496
Wyndham Worldwide Corp * 3,100 105,865
Yum! Brands, Inc. 3,000 173,280
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14,145,005
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CONSUMER STAPLES - 10.00%
Altria Group, Inc. 22,300 1,958,163
Anheuser-Busch Companies, Inc. 6,200 312,852
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NO. OF
DESCRIPTION SHARES VALUE
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Archer-Daniels-Midland Company ^ 9,460 347,182
Campbell Soup Company ^ 2,000 77,900
Coca-Cola Company (The) 27,000 1,296,000
Colgate-Palmolive Company 3,400 227,086
ConAgra Foods, Inc. 6,900 171,879
Costco Wholesale Corporation 6,500 349,960
CVS Corporation 29,030 991,084
General Mills, Inc. 12,000 698,640
H.J. Heinz Company 4,000 188,480
Kimberly-Clark Corporation 5,500 376,695
Kroger Co. (The) ^ 13,800 389,850
PepsiCo, Inc. 21,100 1,341,116
Procter & Gamble Company (The) 41,297 2,608,319
Sara Lee Corporation 4,500 76,140
Sysco Corporation 9,800 331,534
Walgreen Co. 14,300 656,227
Wal-Mart Stores, Inc. 15,100 708,945
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13,108,052
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ENERGY - 9.79%
Anadarko Petroleum Corp. ^ 2,600 111,748
Baker Hughes Incorporated 10,600 700,978
BJ Services Company 3,500 97,650
Chevron Corporation ^ 24,532 1,814,387
ConocoPhillips ^ 14,474 989,298
Devon Energy Corporation 5,000 346,100
Exxon Mobil Corporation 73,500 5,545,572
Halliburton Company 6,700 212,658
Marathon Oil Corp. 7,500 741,225
Occidental Petroleum Corporation 16,000 788,960
Schlumberger Limited 17,500 1,209,250
XTO Energy, Inc. 5,000 274,050
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12,831,876
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FINANCIALS - 20.60%
AFLAC Incorporated 7,000 329,420
Allstate Corporation (The) 9,300 558,558
American Express Company 19,600 1,105,440
American International Group, Inc. 21,331 1,433,870
Aon Corporation 4,900 186,004
Bank of America Corporation 59,138 3,017,221
Bank of New York Company, Inc. (The) 11,400 462,270
BB&T Corporation 4,000 164,080
Bear Stearns Companies, Inc. (The) 2,500 375,875
CB Richard Ellis Group, Inc.- Class A * 6,500 222,170
Charles Schwab Corporation (The) 6,000 109,740
Chubb Corporation (The) 4,100 211,847
Citigroup Inc. 54,300 2,787,762
Fannie Mae 6,500 354,770
Franklin Resources, Inc. 3,700 447,071
Freddie Mac 2,900 172,521
Goldman Sachs Group, Inc. (The) 7,300 1,508,399
Hartford Financial Services Group, Inc. (The) 6,000 573,480
JPMorgan Chase & Co. 36,632 1,772,256
Lehman Brothers Holdings Inc. 7,200 504,504
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NO. OF
DESCRIPTION SHARES VALUE
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Marsh & McLennan Companies, Inc. ^ 6,000 175,740
Merrill Lynch & Co., Inc. 7,200 588,024
Metlife, Inc. 15,200 959,880
Morgan Stanley 15,500 1,220,780
National City Corporation 12,700 473,075
PNC Financial Services Group, Inc. 4,600 331,062
Prudential Financial, Inc. 10,700 965,782
State Street Corporation ^ 3,500 226,625
SunTrust Banks, Inc. 7,600 631,104
Travelers Companies, Inc. (The) 9,476 490,573
U.S. Bancorp 28,401 993,183
UnumProvident Corporation 8,100 186,543
Wachovia Corporation 19,600 1,078,980
Washington Mutual, Inc. 11,550 466,389
Wells Fargo & Company 48,400 1,666,412
Western Union Company 11,324 248,562
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26,999,972
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HEALTHCARE - 11.47%
Abbott Laboratories ^ 28,000 1,562,400
Aetna Inc. 6,000 262,740
Amgen Inc. * 22,400 1,251,712
Applera Corporation 8,000 236,560
Baxter International Inc. 5,000 263,350
Becton, Dickinson and Company 6,900 530,541
Biogen Idec Inc. * 5,500 244,090
Boston Scientific Corporation ^ * 3,551 51,632
Bristol-Myers Squibb Company ^ 18,500 513,560
Cardinal Health, Inc. ^ 2,950 215,202
Eli Lilly and Company 4,700 252,437
Gilead Sciences, Inc. * 3,500 267,750
IMS Health Incorporated 7,400 219,484
Johnson & Johnson ^ 40,900 2,464,634
McKesson Corporation 5,300 310,262
Medco Health Solutions, Inc. * 6,687 485,008
Medtronic, Inc. ^ 19,000 932,140
Merck & Co. Inc. 17,500 772,975
Pfizer Inc. ^ 36,060 910,876
Schering-Plough Corporation ^ 17,500 446,425
UnitedHealth Group Incorporated ^ 17,000 900,490
WellPoint Inc. ^ * 11,500 932,650
Wyeth 20,200 1,010,606
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15,037,524
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INDUSTRIALS - 10.65%
3M Co. 9,400 718,442
Boeing Company (The) 9,200 817,972
Burlington Northern Santa Fe Corporation 2,900 233,247
Caterpillar Inc. 9,300 623,379
CSX Corporation 10,000 400,500
Danaher Corporation ^ 3,500 250,075
Emerson Electric Co. 12,000 517,080
FedEx Corp. 4,500 483,435
General Dynamics Corporation ^ 6,200 473,680
General Electric Company 100,900 3,567,824
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NO. OF
DESCRIPTION SHARES VALUE
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Honeywell International Inc. 12,500 575,750
Illinois Tool Works Inc. 13,300 686,280
Ingersoll-Rand Company Ltd. Class A 7,000 303,590
Lockheed Martin Corporation 4,000 388,080
Masco Corporation 4,200 115,080
Norfolk Southern Corporation 5,500 278,300
Northrop Grumman Corporation 5,000 371,100
Rockwell Automation, Inc. ^ 2,500 149,675
Southwest Airlines Co. 5,700 83,790
Textron Inc. 4,500 404,100
Tyco International Ltd. 10,397 328,025
Union Pacific Corporation 2,000 203,100
United Parcel Service, Inc., Class B 9,600 672,960
United Technologies Corporation 11,000 715,000
Waste Management, Inc. 17,300 595,293
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13,955,757
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INFORMATION TECHNOLOGY - 14.63%
Adobe Systems Incorporated * 4,200 175,140
Agilent Technologies Inc. * 8,000 269,520
Analog Devices, Inc. 3,500 120,715
Apple Computer, Inc. * 3,000 278,730
Applied Materials, Inc. 33,800 619,216
Automatic Data Processing, Inc. 15,400 745,360
Cisco Systems, Inc. * 82,900 2,116,437
Corning Incorporated * 8,000 181,920
Dell Inc. * 4,700 109,087
eBay Inc. ^ * 8,500 281,775
Electronic Arts Inc. * 5,000 251,800
Electronic Data Systems Corporation 5,000 138,400
EMC Corporation * 183,648 2,543,525
First Data Corporation 15,824 425,666
Google Inc. * 2,500 1,145,400
Hewlett-Packard Company 19,900 798,786
Intel Corporation 69,500 1,329,535
International Business Machines Corporation 12,600 1,187,676
Micron Technology, Inc. * 11,500 138,920
Microsoft Corporation 109,200 3,043,404
Motorola, Inc. 22,700 401,109
Oracle Corporation ^ * 44,272 802,651
QUALCOMM Inc. 17,000 725,220
Sun Microsystems, Inc. * 7,500 45,075
Texas Instruments Incorporated 23,900 719,390
Yahoo! Inc. * 18,800 588,252
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19,182,709
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MATERIALS - 2.59%
Air Products & Chemicals, Inc. 1,000 73,960
Alcoa Inc. 16,900 572,910
Dow Chemical Company (The) 15,400 706,244
E. I. du Pont de Nemours and Company 14,800 731,564
International Paper Company ^ 10,500 382,200
Monsanto Company ^ 10,160 558,394
Newmont Mining Corporation 3,000 125,970
Praxair, Inc. 3,000 188,880
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NO. OF
DESCRIPTION SHARES VALUE
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Rohm and Hass Company ^ 1,000 51,720
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3,391,842
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REAL ESTATE INVESTMENT TRUST - 0.55%
Simon Property Group, Inc. 6,500 723,125
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723,125
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TELECOMMUNICATION SERVICES - 3.46%
ALLTEL Corporation 4,000 248,000
AT&T Inc. 56,539 2,229,333
Sprint Nextel Corporation 25,946 491,936
Verizon Communications Inc. 41,300 1,566,096
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4,535,365
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UTILITIES - 3.71%
American Electric Power Company, Inc. 8,000 390,000
CenterPoint Energy, Inc. ^ 10,000 179,400
Dominion Resources, Inc. 4,600 408,342
Duke Energy Corporation 15,800 320,582
Edison International ^ 6,500 319,345
Exelon Corporation 6,000 412,260
FirstEnergy Corp. 5,000 331,200
FPL Group, Inc. ^ 4,000 244,680
PG&E Corporation 9,000 434,430
Public Service Enterprise Group Incorporated 6,000 498,240
Southern Company (The) 11,900 436,135
TXU Corp. 12,400 794,840
Williams Companies, Inc. (The) 3,500 99,610
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4,869,064
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TOTAL EQUITY SECURITIES
(cost - $101,052,382) 130,300,975
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PRINCIPAL
AMOUNT 000'S
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SHORT-TERM INVESTMENTS - 3.81%
REPURCHASE AGREEMENTS - 3.81%
Bear, Stearns & Co. Inc. + ++
(Agreements dated 3/30/2007 to be
repurchased at $2,724,914, 2.7187%,
4/2/2007, collateralized by $2,790,616
in United States Treasury Notes) $ 2,724 $2,724,297
Bear, Stearns & Co. Inc. + ++
(Agreements dated 3/30/2007 to be
repurchased at $1,454,909, 5.4375%,
4/2/2007, collateralized by $1,488,328
in United States Treasury Notes) 1,454 1,454,250
Bear, Stearns & Co. Inc.
(Agreements dated 3/30/2007 to be
repurchased at $811,255, 5.1000%, 4/2/2007,
collateralized by $833,739 in United
States Treasury Notes) 811 810,910
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4,989,457
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TOTAL SHORT-TERM INVESTMENTS
(cost - $4,989,457) 4,989,457
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TOTAL INVESTMENTS - 103.21%
(cost - $106,041,839) 135,290,432
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LIABILITIES IN EXCESS OF OTHER ASSETS - (3.21)% (4,210,021)
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NET ASSETS - 100.00% $131,080,411
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ADR American Depositary Receipt
* 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, 2007, 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
$106,097,773, $30,325,569, ($1,132,910), $29,192,659, 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 9, 2007
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 9, 2007, 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.
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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 25, 2007
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, 2007
/s/ Jodi B. Levine
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Name: Jodi B. Levine
Title: Principal Financial Officer
Date: May 25, 2007
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