UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-21805

 

SUNAMERICA FOCUSED ALPHA LARGE-CAP FUND, INC.

 

(Exact name of registrant as specified in charter)

Harborside Financial Center
3200 Plaza 5 Jersey City, NJ 07311

John T. Genoy
Senior Vice President
SunAmerica Asset Management Corp.
Harborside Financial Center,
3200 Plaza 5
Jersey City, NJ 07311 (Name and address of agent for service)

Registrant’s telephone number, including area code: (201) 324-6414

 

Date of fiscal year end: December 31

 

Date of reporting period: March 31, 2011

 

 

Item 1. Schedule of Investments.

SunAmerica Focused Alpha Large-Cap Fund, Inc.
PORTFOLIO OF INVESTMENTS — March 31, 2011 — (unaudited)

		Shares/
		Principal				Value
Security Description		Amount				(Note 1)
COMMON STOCK — 97.3%
Auction House/Art Dealers — 6.2%
Sotheby’s			167,455			$	8,808,133
Casino Hotels — 5.8%
Wynn Resorts, Ltd.			64,897				8,258,143
Computers — 6.7%
Apple, Inc.†			27,648				9,633,946
E-Commerce/Services — 6.1%
priceline.com, Inc.†			17,323				8,773,060
Electronic Components-Semiconductors — 4.2%
Intel Corp.			298,000				6,010,660
Engines-Internal Combustion — 6.6%
Cummins, Inc.			85,770				9,402,108
Enterprise Software/Service — 5.6%
Oracle Corp.			240,252				8,017,209
Food-Retail — 4.5%
Kroger Co.			266,000				6,376,020
Medical-HMO — 8.8%
Aetna, Inc.			165,000				6,175,950
UnitedHealth Group, Inc.			140,000				6,328,000
							12,503,950
Medical-Wholesale Drug Distribution — 3.9%
Cardinal Health, Inc.			136,000				5,593,680
Oil Companies-Exploration & Production — 4.4%
Anadarko Petroleum Corp.			77,028				6,310,134
Oil Companies-Integrated — 4.4%
Marathon Oil Corp.			117,000				6,237,270
Oil Refining & Marketing — 4.5%
Valero Energy Corp.			214,000				6,381,480
Retail-Apparel/Shoe — 2.2%
Lululemon Athletica, Inc.†			34,575				3,078,904
Retail-Regional Department Stores — 3.9%
Macy’s, Inc.			232,000				5,628,320
Retail-Restaurants — 5.5%
Starbucks Corp.			211,218				7,804,505
Telephone-Integrated — 4.3%
Qwest Communications International, Inc.			910,000				6,215,300
Web Portals/ISP — 5.4%
Baidu, Inc. ADR†			56,298				7,758,427
Wireless Equipment — 4.3%
Motorola Solutions, Inc.†			138,000				6,167,220
Total Long-Term Investment Securities (cost $105,467,484)							138,958,469
SHORT-TERM INVESTMENT SECURITIES — 0.6%
Time Deposits — 0.6%
Euro Time Deposit with State Street Bank and Trust Co. 0.01% due 04/01/11 (cost $788,000)		$	788,000				788,000
TOTAL INVESTMENTS (cost $106,255,484) (1)			97.9	%			139,746,469
Other assets less liabilities			2.1				3,017,305
NET ASSETS			100.0	%		$	142,763,774

ADR — American Depository Receipt

The following is a summary of the inputs used to value the Fund’s net assets as of March 31, 2011 (see Note 1):

ASSETS:		Level 1-Unadjusted Quoted Prices				Level 2-Other Observable Inputs				Level 3-Significant Unobservable Inputs				Total
Long-Term Investment Securities:
Common Stock:
Auction House/Art Dealers		$	8,808,133			$	—			$	—			$	8,808,133
Casino Hotels			8,258,143				—				—				8,258,143
Computers			9,633,946				—				—				9,633,946
E-Commerce/Services			8,773,060				—				—				8,773,060
Engines-Internal Combustion			9,402,108				—				—				9,402,108
Enterprise Software/Service			8,017,209				—				—				8,017,209
Medical-HMO			12,503,950				—				—				12,503,950
Retail-Restaurants			7,804,505				—				—				7,804,505
Web Portals/ISP			7,758,427				—				—				7,758,427
Other Industries*			57,998,988				—				—				57,998,988
Short-Term Investment Securities:
Time Deposit			—				788,000				—				788,000
Total		$	138,958,469			$	788,000			$	—			$	139,746,469

See Notes to Portfolio of Investments

NOTES TO PORTFOLIO OF INVESTMENTS — March 31, 2011 – (unaudited)

Note 1. Security Valuation Stocks are generally valued based upon closing sales prices reported on recognized securities exchanges on which the securities are principally traded. Stocks listed on the NASDAQ are valued using the NASDAQ Official Closing Price (“NOCP”). Generally, the NOCP will be the last sale price unless the reported trade for the stock is outside the range of the bid/ask price. In such cases, the NOCP will be normalized to the nearer of the bid or ask price. For listed securities having no sales reported and for unlisted securities, such securities will be valued based upon the last reported bid price.

As of the close of regular trading on the New York Stock Exchange (“NYSE”), securities traded primarily on security exchanges outside the United States are valued at the last sale price on such exchanges on the day of valuation, or if there is no sale on the day of valuation, at the last-reported bid price. If a security’s price is available from more than one exchange, the SunAmerica Focused Alpha Large-Cap Fund, Inc. (the “Fund”) uses the exchange that is the primary market for the security. However, depending on the foreign market, closing prices may be up to 15 hours old when they are used to price the Fund’s shares, and the Fund may determine that certain closing prices do not reflect the fair value of the security. This determination will be based on review of a number of factors, including developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U.S. markets that represent foreign securities and baskets of foreign securities. If the Fund determines that closing prices do not reflect the fair value of the securities, the Fund will adjust the previous closing prices in accordance with pricing procedures approved by the Board of Directors (the “Board”) to reflect what it believes to be the fair value of the securities as of the close of regular trading on the NYSE. The Fund may also fair value securities in other situations, for example, when a particular foreign market is closed but the Fund is open. For foreign equity securities, the Fund uses an outside pricing service to provide it with closing market prices and information used for adjusting those prices.

Short-term securities with 60 days or less to maturity are amortized to maturity based on their cost to the Fund if acquired within 60 days of maturity or, if already held by the Fund on the 60th day, are amortized to maturity based on the value determined on the 61st day.

Securities for which market quotations are not readily available or if a development/significant event occurs that may significantly impact the value of the security, then these securities are valued, as determined pursuant to procedures adopted in good faith by the Board. There is no single standard for making fair value determinations, which may result in prices that vary from those of other funds.

The various inputs that may be used to determine the value of the Fund’s investments are summarized into three broad levels listed below:

Level 1 — Unadjusted quoted prices in active markets for identical securities

Level 2 — Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, referenced indices, quoted prices in inactive markets, adjusted quoted prices in active markets, adjusted quoted prices on foreign equity securities that were adjusted in accordance with pricing procedures approved by the Board of Directors, etc.)

Level 3 — Significant unobservable inputs (includes inputs that reflect the Fund’s own assumptions about the assumptions markets participants would use in pricing the security, developed based on the best information available under the circumstances).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The summary of the inputs used to value the Fund’s net assets as of March 31, 2011 are reported on a schedule following the Portfolio of Investments.

Note 2. Federal Income Taxes As of March 31, 2011, the amounts of aggregate unrealized gain (loss) and the cost of investment securities for federal income tax purposes, including short-term securities, were as follows:

Cost (tax basis)		$	106,717,945
Appreciation		$	33,509,176
Depreciation			(480,652	)
Net unrealized appreciation (depreciation)		$	33,028,524

ADDITIONAL INFORMATION

Additional information is available in the Fund’s Annual and Semiannual reports which may be obtained without charge from the EDGAR database on the Securities and Exchange Commission’s website at http://www.sec.gov.

Item 2. Controls and Procedures.

Item 3. Exhibits.

Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT.

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.

SunAmerica Focused Alpha Large-Cap Fund, Inc.

Pursuant to the requirement 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.