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, 2018

 

Date of reporting period: September 30, 2018

 

 

 

 

 

 

Item 1:Schedule of Investments.

A copy of the Schedule of Investments for the period ended 9/30/18 is included with this Form.

 

Value Line Mid Cap Focused Fund, Inc.

Schedule of Investments (unaudited)

 

Shares      Value 
 COMMON STOCKS (95.2%)     
     CONSUMER DISCRETIONARY (1.2%)     
     RETAIL (1.2%)     
 12,200   Advance Auto Parts, Inc.  $2,053,626 
     CONSUMER STAPLES (7.5%)     
     FOOD (5.3%)     
 31,000   J&J Snack Foods Corp.   4,677,590 
 33,100   McCormick & Co., Inc.  (1)   4,360,925 
         9,038,515 
     HOUSEHOLD PRODUCTS (2.2%)     
 62,000   Church & Dwight Co., Inc.  (1)   3,680,940 
         12,719,455 
     FINANCIALS (4.5%)     
     INSURANCE (4.5%)     
 24,000   American Financial Group, Inc.   2,663,280 
 167,700   Arch Capital Group, Ltd.  *   4,999,137 
         7,662,417 
         7,662,417 
     HEALTHCARE (13.9%)     
     ELECTRONICS (3.5%)     
 9,700   Mettler-Toledo International, Inc.  *   5,907,106 
     HEALTHCARE PRODUCTS (10.4%)     
 8,224   Becton Dickinson & Co.   2,146,464 
 26,700   Danaher Corp.   2,901,222 
 45,400   Henry Schein, Inc.  *   3,860,362 
 35,000   IDEXX Laboratories, Inc.  *   8,738,100 
         17,646,148 
         23,553,254 
     INDUSTRIALS (36.5%)     
     AEROSPACE & DEFENSE (12.3%)     
 74,183   HEICO Corp.  (1)   6,870,088 
 35,900   Teledyne Technologies, Inc.  *   8,855,812 
 14,100   TransDigm Group, Inc.  *   5,249,430 
         20,975,330 
     BUILDING MATERIALS (1.1%)     
 8,500   Lennox International, Inc.   1,856,400 
     COMMERCIAL SERVICES (4.9%)     
 137,400   Rollins, Inc.  (1)   8,338,806 
     ELECTRICAL EQUIPMENT (2.6%)     
 56,750   AMETEK, Inc.   4,490,060 
     ENVIRONMENTAL CONTROL (4.3%)     
 91,650   Waste Connections, Inc.   7,310,920 
     HAND & MACHINE TOOLS (1.9%)     
 17,900   Snap-on, Inc.   3,286,440 
           
     HOUSEWARES (3.0%)     
 85,600   Toro Co. (The)  5,133,432 
     MACHINERY DIVERSIFIED (4.4%)     
 8,200   Middleby Corp. (The)  *(1)   1,060,670 
 21,400   Roper Technologies, Inc.   6,338,894 
         7,399,564 
     MISCELLANEOUS MANUFACTURERS (2.0%)     
 27,500   Carlisle Companies, Inc.   3,349,500 
         62,140,452 
     INFORMATION TECHNOLOGY (28.3%)     
     COMMERCIAL SERVICES (3.2%)     
 34,400   Gartner, Inc.  *(1)   5,452,400 
     COMPUTERS (1.2%)     
 30,400   CGI Group, Inc. Class A *(1)   1,960,192 
     ELECTRONICS (3.4%)     
 62,100   Amphenol Corp. Class A   5,838,642 
     SOFTWARE (20.5%)     
 36,200   ANSYS, Inc.  *   6,757,816 
 86,800   Fiserv, Inc.  *   7,150,584 
 37,800   Jack Henry & Associates, Inc.   6,051,024 
 93,700   Open Text Corp.   3,564,348 
 20,600   Tyler Technologies, Inc.  *   5,048,236 
 19,700   Ultimate Software Group, Inc. (The)  *   6,347,143 
         34,919,151 
         48,170,385 
     MATERIALS (3.3%)     
     COMMERCIAL SERVICES (2.1%)     
 23,000   Ecolab, Inc.   3,605,940 
     PACKAGING & CONTAINERS (1.2%)     
 45,800   Ball Corp.  (1)   2,014,742 
         5,620,682 
     TOTAL COMMON STOCKS
(Cost $81,464,361) (95.2%)		   161,920,271 
 SHORT-TERM INVESTMENTS (7.6%)     
     MONEY MARKET FUNDS (7.6%)     
 8,189,171   State Street Institutional U.S. Government Money Market Fund, Premier Class   8,189,171 
 4,794,070   State Street Navigator Securities Lending Government Money Market Portfolio  (2)   4,794,070 
     TOTAL SHORT-TERM INVESTMENTS
(Cost $12,983,241) (7.6%)		   12,983,241 
     TOTAL INVESTMENT SECURITIES  (102.8%)
(Cost $94,447,602)		  $174,903,512 
EXCESS OF LIABILITIES OVER CASH AND OTHER ASSETS (-2.8%)   (4,810,092)
NET ASSETS (3) (100%)  $170,093,420 

 

 

 
 1

 

 

September 30, 2018

 

*Non-income producing.
(1)A portion or all of the security was held on loan. As of September 30, 2018, the market value of the securities on loan was $21,591,282.
(2)Securities with an aggregate market value of $21,591,282 were out on loan in exchange for $4,794,070 of cash collateral as of September 30, 2018. The collateral was invested in a cash collateral reinvestment vehicle.
(3)For federal income tax purposes, the aggregate cost was $94,447,602, aggregate gross unrealized appreciation was $80,455,910, aggregate gross unrealized depreciation was $0 and the net unrealized appreciation was $80,455,910.

 

 
2

 

 

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.

 

Investments in Securities:  Level 1   Level 2   Level 3   Total 
Assets                    
Common Stocks*  $161,920,271   $—   $—   $161,920,271 
Short-Term Investments   12,983,241    —    —    12,983,241 
Total Investments in Securities  $174,903,512   $—   $—   $174,903,512 

* 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.

 

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

 

For the period ended September 30, 2018, there were no transfers among levels.

 

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.

 

During the period ended September 30, 2018, there were no Level 3 investments. The Schedule of Investments includes a breakdown of the Fund’s 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: 11/19/2018  

 

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: 11/19/2018