UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF

REGISTERED MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file Number 811-02265

 

The Value Line Mid Cap Focused Fund, Inc.

(Exact name of registrant as specified in charter)

 

7 Times Square, New York, NY 10036

 

Mitchell E. Appel

(Name and address of agent for service)

 

Registrant’s telephone number, including area code: 212-907-1900

 

Date of fiscal year end: December 31

 

Date of reporting period: September 30, 2015

 

 
 

 

Item 1: Schedule of Investments.

A copy of the Schedule of Investments for the period ended 9/30/15 is included with this Form.

 

Value Line Mid Cap Focused Fund, Inc.
 
Schedule of Investments (unaudited)

               
Shares       Value  
COMMON STOCKS (98.9%)        
         
      CONSUMER DISCRETIONARY (3.7%)        
  43,000   LKQ Corp. *   $ 1,219,480  
  44,000   TJX Companies, Inc. (The)     3,142,480  
            4,361,960  
      CONSUMER STAPLES (14.2%)        
  9,332   Boston Beer Co., Inc. (The) Class A *(1)     1,965,413  
  33,600   Casey’s General Stores, Inc.     3,458,112  
  38,000   Church & Dwight Co., Inc.     3,188,200  
  65,700   Flowers Foods, Inc.     1,625,418  
  54,000   Hormel Foods Corp.     3,418,740  
  24,100   J&J Snack Foods Corp.     2,739,206  
            16,395,089  
      ENERGY (2.7%)        
  22,400   Enbridge, Inc.     831,712  
  35,600   EQT Corp.     2,305,812  
            3,137,524  
      FINANCIALS (2.1%)        
  14,100   Affiliated Managers Group, Inc. *     2,410,959  
      HEALTH CARE (13.5%)        
  16,200   C.R. Bard, Inc.     3,018,222  
  22,700   Henry Schein, Inc. *     3,012,744  
  42,400   IDEXX Laboratories, Inc. *     3,148,200  
  47,900   Mednax, Inc. *     3,678,241  
  9,900   Mettler-Toledo International, Inc. *     2,818,926  
            15,676,333  
      INDUSTRIALS (34.7%)        
  56,750   AMETEK, Inc.     2,969,160  
  33,600   Carlisle Companies, Inc.     2,935,968  
  48,400   CLARCOR, Inc.     2,307,712  
  26,700   Danaher Corp.     2,275,107  
  41,983   HEICO Corp.     2,052,129  
  22,200   Kansas City Southern     2,017,536  
  26,800   Middleby Corp. (The) *     2,819,092  
  137,400   Rollins, Inc.     3,691,938  
  18,500   Roper Technologies, Inc.     2,898,950  
  21,400   Snap-on, Inc.     3,230,116  
  23,300   Stericycle, Inc. *     3,245,923  
  31,000   Teledyne Technologies, Inc. *     2,799,300  
  38,800   Toro Co. (The)     2,736,952  
  13,400   Wabtec Corp.     1,179,870  
  61,100   Waste Connections, Inc.     2,968,238  
            40,127,991  
      INFORMATION TECHNOLOGY (17.4%)        
  10,300   Alliance Data Systems Corp. *     2,667,494  
  58,100   Amphenol Corp. Class A     2,960,776  
  36,200   ANSYS, Inc. *     3,190,668  
  43,400   Fiserv, Inc. *     3,758,874  
  39,300   Open Text Corp.     1,758,675  

               
Shares       Value  
               
  20,100   Ultimate Software Group, Inc. (The) *   $ 3,598,101  
  25,500   WEX, Inc. *     2,214,420  
            20,149,008  
      MATERIALS (10.6%)        
  27,000   Airgas, Inc.     2,411,910  
  55,000   Crown Holdings, Inc. *     2,516,250  
  26,000   Ecolab, Inc.     2,852,720  
  39,100   Silgan Holdings, Inc.     2,034,764  
  33,600   Valspar Corp. (The) (1)     2,415,168  
            12,230,812  
               
      TOTAL COMMON STOCKS (Cost $88,416,736) (98.9%)     114,489,676  
           
  SHORT-TERM INVESTMENTS (3.3%)        
               
      MONEY MARKET FUNDS (3.3%)        
  1,320,921   State Street Institutional Liquid Reserves Fund     1,320,921  
  2,483,614   State Street Navigator Securities        
      Lending Prime Portfolio (2)     2,483,614  
               
      TOTAL SHORT-TERM INVESTMENTS
(Cost $3,804,535) (3.3%)
    3,804,535  
               
      TOTAL INVESTMENT SECURITIES (102.2%)
(Cost $92,221,271)
  $ 118,294,211  
               
EXCESS OF LIABILITIES OVER CASH AND
OTHER ASSETS (-2.2%)
    (2,596,526 )
NET ASSETS (3) (100%)   $ 115,697,685  
NET ASSET VALUE OFFERING AND
REDEMPTION PRICE, PER OUTSTANDING SHARE
($115,697,685 ÷ 8,123,959 shares outstanding)
  $ 14.24  

 

*Non-income producing.
(1)A portion or all of the security was held on loan. As of September 30, 2015, the market value of the securities on loan was $2,445,075.
(2)Securities with an aggregate market value of $2,445,075 were out on loan in exchange for $2,483,614 of cash collateral as of September 30, 2015. The collateral was invested in a cash collateral reinvestment vehicle.
(3)For federal income tax purposes, the aggregate cost was $92,221,271, aggregate gross unrealized appreciation was $28,350,785, aggregate gross unrealized depreciation was $2,277,845 and the net unrealized appreciation was $26,072,940.

 

 

1
 

 

The Fund follows fair valuation accounting standards (FASB ASC 820-10) which establishes a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion of changes in valuation techniques and related inputs during the period. These inputs are summarized in the three broad levels listed below:

 

·Level 1 – Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access at the measurement date;

·Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active;

·Level 3 – Inputs that are unobservable.

 

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

The following table summarizes the inputs used to value the Fund’s investments in securities as of September 30, 2015:

 

Investments In Securities:  Level 1   Level 2   Level 3   Total 
Assets                    
Common Stocks*  $114,489,676   $-   $-   $114,489,676 
Short-Term Investments   3,804,535    -    -    3,804,535 
                     
Total Investments in Securities  $118,294,211   $-   $-   $118,294,211 
* See Schedule of Investments for further classification.                     

 

The Fund follows the updated provisions surrounding fair value measurements and disclosures on transfers in and out of all levels of the fair value hierarchy on a gross basis and the reasons for the transfers as well as disclosures about the valuation techniques and inputs used to measure fair value for investments that fall in either Level 2 or Level 3 of the fair value hierarchy.

 

For the period ended September 30, 2015, there were no transfers between Level 1, Level 2, and Level 3 assets.

 

The Fund’s policy is to recognize transfers between levels at the beginning of the reporting period.

 

The amounts and reasons for all transfers in and out of each level within the three-tier hierarchy are disclosed when the Fund had an amount of total transfers during the reporting period that was meaningful in relation to its net assets as of the end of the reporting period (e.g. greater than 1%). An investment asset’s or liability’s level within the fair value hierarchy is based on the lowest level input, individually or in aggregate, that is significant to fair value measurement. The objective of fair value measurement remains the same even when there is a significant decrease in the volume and level of activity for an asset or liability and regardless of the valuation techniques used.

 

For the period ended September 30, 2015, there were no Level 3 investments. The Schedule of Investments includes a breakdown of the Funds’ investments by category.

 

 
 

 

Item 2. Controls and Procedures.

(a)The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in rule 30a-2(c) under the Act (17 CFR 270.30a-2(c) ) based on their evaluation of these controls and procedures as of the date within 90 days of filing date of this report, are approximately designed to ensure that material information relating to the registrant is made known to such officers and are operating effectively.

 

(b)The registrant’s principal executive officer and principal financial officer have determined that there have been no significant changes in the registrant’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including corrective actions with regard to significant deficiencies and material weaknesses.

 

Item 3. Exhibits:

(a)      Certifications of principal executive officer and principal financial officer of the registrant.

 

 
 

 

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.

     
By /s/ Mitchell E. Appel  
  Mitchell E. Appel, President  
     
Date: November 23, 2015  

 

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.

     
By: /s/ Mitchell E. Appel  
  Mitchell E. Appel, President, Principal Executive Officer  
     
By: /s/ Emily D. Washington  
  Emily D. Washington, Treasurer, Principal Financial Officer  
     
Date: November 23, 2015