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, 2005
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Date of reporting period: July 1, 2005 through September 30, 2005
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ITEM 1: SCHEDULE OF INVESTMENTS
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CORNERSTONE STRATEGIC VALUE FUND, INC.
SCHEDULE OF INVESTMENTS - SEPTEMBER 30, 2005 (UNAUDITED)
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NO. OF
DESCRIPTION SHARES VALUE
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EQUITY SECURITIES - 99.45%
CLOSED-END DOMESTIC FUNDS - 2.17%
Adams Express Co. 49,500 $ 649,440
General American Investors Company, Inc. (a) 3,000 104,610
Tri-Continental Corp. 77,000 1,406,020
Zweig Fund, Inc. (The) (a) 176,600 939,512
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3,099,582
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CONSUMER DISCRETIONARY - 11.34%
Acco Brands Corporation + 235 6,632
Bed Bath & Beyond Inc. + (a) 4,200 168,756
Best Buy Co., Inc. (a) 7,125 310,151
Carnival Corp. (a) 11,800 589,764
Cendant Corp. 19,000 392,160
Circuit City Stores, Inc. (a) 1,000 17,160
Clear Channel Communications, Inc. 8,800 289,432
Comcast Corp., Class A + 31,537 926,557
Costco Wholesale Corp. 6,500 280,085
CVS Corp. 5,000 145,050
Eastman Kodak Co. 1,400 34,062
Federated Department Stores, Inc. 2,526 168,914
Ford Motor Company 26,300 259,318
Fortune Brands, Inc. (a) 1,000 81,330
Furniture Brands International, Inc. 29,200 526,476
Gannett Co., Inc. 2,000 137,660
Gap, Inc. (The) (a) 12,200 212,646
General Motors Corp. (a) 6,500 198,965
Gildan Activewear Inc., Class A + (a) 35,700 1,364,811
Goodyear Tire & Rubber Company (The) + 4,500 70,155
Harley-Davidson, Inc. (a) 4,400 213,136
Hilton Hotels Corp. 3,200 71,424
Home Depot, Inc. (The) 30,600 1,167,084
J.C. Penney Company, Inc. 4,500 213,390
Kohl's Corp. + (a) 5,000 250,900
Lowe's Companies, Inc. 11,200 721,280
Marriott International, Inc., Class A 2,100 132,300
Mattel, Inc. (a) 5,500 91,740
McDonald's Corp. (a) 17,600 589,424
Monsanto Co. 580 36,395
News Corporation, Class A 30,000 467,700
NIKE, Inc., Class B 2,300 187,864
Omnicom Group Inc. 4,100 342,883
Reebok International Ltd. 1,500 84,855
Rockwell Automation, Inc. 2,500 132,250
Sears Holdings Corp. + 503 62,583
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Staples, Inc. 10,800 230,256
Starbucks Corp. + 5,400 270,540
Target Corporation 11,800 612,774
Time Warner Inc. 64,000 1,159,040
TJX Companies, Inc. (The) 7,000 143,360
United Natural Foods, Inc. + 34,000 1,202,240
Viacom Inc., non-voting Class B 23,900 788,939
Walt Disney Co. (The) 29,200 704,596
Yum! Brands, Inc. 3,000 145,230
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16,202,267
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CONSUMER STAPLES - 10.39%
Altria Group, Inc. 29,300 2,159,703
Anheuser-Busch Companies, Inc. 16,700 718,768
Archer Daniels Midland Company 5,460 134,644
Campbell Soup Company 2,000 59,500
Coca-Cola Co. (The) 32,500 1,403,675
Coca-Cola Enterprises Inc. 6,500 126,750
Colgate-Palmolive Company 11,100 585,969
ConAgra Foods, Inc. (a) 4,400 108,900
General Mills, Inc. 9,500 457,900
Gillette Company (The) 16,100 937,020
H.J. Heinz Co. 6,600 241,164
Kimberly-Clark Corporation (a) 6,900 410,757
Kroger Co. (The) + 4,800 98,832
Pepsi Bottling Group, Inc. (The) 4,000 114,200
PepsiCo, Inc. 24,800 1,406,408
Procter & Gamble Co. (The) 37,600 2,235,696
Sara Lee Corp. 11,500 217,925
Sysco Corp. 5,800 181,946
Walgreen Co. (a) 14,300 621,335
Wal-Mart Stores, Inc. 59,800 2,620,436
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14,841,528
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ENERGY - 10.04%
Anadarko Petroleum Corp. (a) 5,900 564,925
Baker Hughes Inc. 8,100 483,408
CenterPoint Energy, Inc. 3,900 57,993
ChevronTexaco Corp. 27,532 1,782,146
ConocoPhillips 17,974 1,256,562
Exxon Mobil Corp. 84,000 5,337,360
FMC Technologies, Inc. + (a) 35,600 1,499,116
Marathon Oil Corp. 7,500 516,975
Occidental Petroleum Corp. 8,000 683,440
Reliant Energy Inc. + 1,104 17,046
Schlumberger Ltd. 11,000 928,180
Western Gas Resources, Inc. (a) 23,800 1,219,274
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14,346,425
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FINANCIALS - 18.54%
Aetna Inc. 6,000 516,840
Affiliated Managers Group, Inc. + 3,300 238,986
AFLAC Inc. 7,000 317,100
Allstate Corp. (The) 9,300 514,197
American Express Company 15,600 896,064
American International Group, Inc. 37,531 2,325,421
AONCorporation 4,900 157,192
Bank of America Corp. 55,616 2,341,434
Bank of New York Co., Inc. (The) 8,400 247,044
Charles Schwab Corporation (The) 12,000 173,160
Citigroup Inc. 74,300 3,382,136
Fannie Mae 13,000 582,660
Fifth Third Bancorp 9,000 330,570
First Marblehead Corp. (The) (a) 18,700 474,980
Franklin Resources, Inc. (a) 3,700 310,652
Freddie Mac 14,500 818,670
Goldman Sachs Group, Inc. (The) 7,300 887,534
Hartford Financial Services Group, Inc. (The) 6,000 463,020
JPMorgan Chase & Co. 48,332 1,639,905
Lehman Brothers Holding Inc. 3,600 419,328
Manulife Financial Corp. (a) 2,963 157,987
Marsh & McLennan Companies, Inc. 10,100 306,939
MBNA Corp. (a) 20,600 507,584
Merrill Lynch & Co., Inc. 10,700 656,445
MetLife, Inc. 10,200 508,266
Morgan Stanley 15,500 836,070
National City Corp. (a) 9,700 324,368
Northern Trust Corp. (a) 3,500 176,925
Piper Jaffray Companies, Inc. + 104 3,105
PNC Financial Services Group, Inc. 4,100 237,882
Prudential Financial, Inc. 8,200 553,992
St. Paul Travelers Companies, Inc. (The) 9,476 425,188
State Street Corp. 3,500 171,220
SunTrust Banks, Inc. 7,600 527,820
U.S. Bancorp (a) 28,401 797,500
UnumProvident Corp. 8,100 166,050
Wachovia Corp. 22,600 1,075,534
Washington Mutual, Inc. 15,550 609,871
Wells Fargo & Co. 24,200 1,417,394
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26,497,033
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HEALTHCARE - 11.56%
Abbott Laboratories 21,000 890,400
Amgen Inc. + (a) 18,900 1,505,763
Becton, Dickinson & Co. (a) 3,900 204,477
Biogen Idec Inc. + 3,000 118,440
Boston Scientific Corp. + 12,300 287,451
Bristol-Myers Squibb Co. 30,500 733,830
Cardinal Health, Inc. (a) 5,450 345,748
Caremark Rx, Inc. + 6,500 324,545
Cooper Companies, Inc. (The) 7,200 551,592
Edwards Lifesciences Corp. + 15,500 688,355
Eli Lilly & Co. 14,500 776,040
Guidant Corp. 6,400 440,896
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HCA, Inc. 3,500 167,720
Hospira, Inc. + 700 28,679
Johnson & Johnson 40,900 2,588,152
McKesson Corp. 2,300 109,135
Medco Health Solutions, Inc. + 1,687 92,498
Medtronic, Inc. (a) 14,500 777,490
Merck & Co. Inc. 30,500 829,905
Pfizer Inc. (a) 99,660 2,488,510
Schering-Plough Corp. (a) 17,000 357,850
Tenet Healthcare Corp. + 2,250 25,268
United Health Group Inc. 23,000 1,292,600
Wyeth 19,200 888,384
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16,513,728
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INDUSTRIALS - 10.56%
3M Co. 10,400 762,944
Automatic Data Processing, Inc. 4,900 210,896
Boeing Company (The) 11,700 795,015
Caterpillar Inc. 11,800 693,250
CSX Corp. 1,000 46,480
Emerson Electric Co. 8,500 610,300
FedEx Corp. (a) 4,500 392,085
General Dynamics Corp. (a) 3,100 370,605
General Electric Co. 141,700 4,771,039
Heartland Express, Inc. 10,435 212,248
Honeywell International Inc. 12,500 468,750
Illinois Tool Works Inc. 2,400 197,592
IMS Health Inc. 1,400 35,238
Lockheed Martin Corp. 4,000 244,160
Masco Corp. (a) 4,200 128,856
Northrop Grumman Corp. 5,000 271,750
Paychex, Inc. (a) 4,200 155,736
PHH Corp. + 700 19,222
Shuffle Master, Inc. + (a) 24,300 642,249
Southwest Airlines Co. 6,450 95,782
Transocean Inc. + 2,500 153,275
Tyco International Ltd. 33,397 930,106
Union Pacific Corp. 2,000 143,400
United Parcel Service, Inc., Class B 16,300 1,126,819
United Technologies Corp. 14,400 746,496
Waste Management, Inc. 8,200 234,602
Yellow Roadway Corp. + (a) 15,191 629,211
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15,088,106
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INFORMATION TECHNOLOGY - 14.65%
Adobe Systems Inc. + 2,200 65,670
Altera Corp. + 3,400 64,974
Analog Devices, Inc. (a) 2,700 100,278
Apple Computer, Inc. + 3,000 160,830
Applied Materials, Inc. 23,800 403,648
Cisco Systems, Inc. + 96,400 1,728,452
Corning Inc. + 17,000 328,610
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Dell Inc. + 29,700 1,015,740
eBay, Inc. + 19,000 782,800
Electronic Arts Inc. + 2,000 113,780
Electronic Data Systems Corp. 10,000 224,400
EMC Corp. + (a) 212,648 2,751,665
Fairchild Semiconductor International, Inc. + 60,300 896,058
First Data Corporation (a) 7,324 292,960
Freescale Semiconductor Inc., Class B + 1,512 35,653
Hewlett-Packard Co. 27,900 814,680
Intel Corp. (a) 82,500 2,033,625
International Business Machines Corp. 21,000 1,684,620
Linear Technology Corp. 2,500 93,975
Lucent Technologies Inc. + (a) 10,700 34,775
Maxim Integrated Products, Inc. 2,300 98,095
Micron Technology, Inc. + (a) 2,500 33,250
Microsoft Corp. (a) 142,100 3,656,233
Motorola, Inc. 34,700 766,523
Oracle Corp. + 46,100 571,179
QUALCOMM Inc. 17,000 760,750
Sanmina-SCI Corp. + (a) 5,500 23,595
Siebel Systems, Inc. 2,500 25,825
Solectron Corp. + (a) 3,000 11,730
Sun Microsystems, Inc. + 7,500 29,400
Symantec Corp. + 10,000 226,600
Texas Instruments Inc. 23,900 810,210
Yahoo! Inc. + 8,800 297,792
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20,938,375
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MATERIALS - 4.30%
Air Products & Chemicals, Inc. 1,000 55,140
Alcoa Inc. 14,200 346,764
Dow Chemical Co. (The) 15,400 641,718
E.I. du Pont de Nemours & Co. (a) 14,800 579,716
Georgia-Pacific Corporation 2,000 68,120
International Paper Co. 4,500 134,100
Joy Global Inc. 11,900 600,474
Neenah Paper, Inc. 209 6,124
Packaging Corporation of America 34,700 673,527
Peabody Energy Corp. 27,400 2,311,190
Praxair, Inc. (a) 3,000 143,790
Rohm & Haas Co. (a) 1,000 41,130
Steel Dynamics, Inc. 13,900 472,044
Weyerhaeuser Co. 1,000 68,750
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6,142,587
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RETAIL - 0.21%
Simon Property Group, Inc. 4,000 296,480
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TELECOMMUNICATION SERVICES - 2.91%
ALLTEL Corporation 4,000 260,440
AT&T Corp. 9,320 184,536
BellSouth Corporation (a) 23,000 604,900
SBC Communications Inc. 41,100 985,167
Sprint Corp. 38,446 914,246
Verizon Communications Inc. 37,100 1,212,799
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4,162,088
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UTILITIES - 2.78%
American Electric Power Co., Inc. 2,700 107,190
Dominion Resources, Inc. (a) 7,100 611,594
Duke Energy Corp. (a) 13,300 387,961
Edison International (a) 4,000 189,120
Exelon Corp. 11,000 587,840
FirstEnergy Corp. 5,000 260,600
FPL Group, Inc. 7,000 333,200
Progress Energy, Inc. 3,500 156,625
Public Service Enterprises Group Inc. 1,000 64,360
Scottish Power plc, ADR 4,000 160,960
Southern Co. (The) (a) 11,900 425,544
TXU Corp. 4,700 530,536
Xcel Energy, Inc. 8,200 160,802
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3,976,332
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TOTAL EQUITY SECURITIES
(cost - $124,989,030) 142,104,531
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PRINCIPAL
AMOUNT (000'S)
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SHORT-TERM INVESTMENTS - 4.35%
REPURCHASE AGREEMENTS - 4.35%
Bear, Stearns & Co. Inc.
(Agreement dated 09/30/05 to be repurchased
at $4,513,157), 3.875%*, 10/03/05, collateralized
by $4,644,354 in U.S. Treasury STRIPS** $ 4,512 4,511,700
Bear, Stearns & Co. Inc.
(Agreement dated 09/30/05 to be repurchased
at $896,151), 1.9375%*, 10/03/05, collateralized
by $924,020 in U.S. Treasury STRIPS** 896 896,006
Bear, Stearns & Co. Inc.
(Agreement dated 09/30/05 to be repurchased
at $810,485), 3.25%, 10/03/05, collateralized
by $834,286 in U.S. Treasury STRIPS 810 810,265
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TOTAL SHORT-TERM INVESTMENTS
(cost - $6,217,971) 6,217,971
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TOTAL INVESTMENTS - 103.80%
(cost - $131,207,001) 148,322,502
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LIABILITIES IN EXCESS OF OTHER ASSETS - (3.80)% (5,425,693)
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NET ASSETS - 100.00% $ 142,896,809
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(a) Security or portion thereof is out on loan.
+ 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.
Federal Income Tax Cost - At September 30, 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 $131,207,001, $24,738,010, $(7,622,509) and $17,115,501,
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.
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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.
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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: November 29, 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: November 29, 2005
/s/ Jodi B. Levine
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Name: Jodi B. Levine
Title: Principal Financial Officer (Treasurer)
Date: November 29, 2005
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