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 811-1537
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Sterling Capital Corporation
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(Exact name of registrant as specified in charter)
635 Madison Avenue, New York, New York 10022
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(Address of principal executive offices)
Michael J. Carey, Treasurer
635 Madison Avenue, New York, New York 10022
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(Name and address of agent for service)
Registrant's telephone number, including area code: (212) 980-3360
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Date of fiscal year end: December 31, 2005
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Date of reporting period: March 31, 2005
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Item 1. Schedule of Investments.
STERLING CAPITAL CORPORATION
SCHEDULE OF INVESTMENTS
March 31, 2005
(Unaudited)
Number of Market
Shares Value
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Common Stocks - 40.50% of net assets
Financial Services - 10.42%
MetLife Inc. ...................... 10,000 $ 391,000
J.P. Morgan Chase & Co ............ 10,000 346,000
KeyCorp ........................... 10,000 324,500
The St Paul Travelers Cos. Inc. ... 8,668 318,376
Allstate Corp. .................... 5,000 270,300
Citigroup Inc. .................... 5,000 224,700
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$1,874,876
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Technology - 6.73%
Falconstor Software Inc. * ........ 90,000 $ 537,300
Check Point Software Technologies * 10,000 217,400
Cisco Systems Inc. * .............. 10,000 178,900
Advanced Micro Devices, Inc. * .... 10,000 161,200
Intel Corp. ....................... 5,000 116,150
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$1,210,950
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Real Estate and
Real Estate Investment Trusts -5.34%
Camden Property Trust ............. 10,000 $ 470,300
Equity Residential ................ 10,950 352,700
Amli Residential Properties Trust . 5,000 136,950
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$ 959,950
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Telecommunication and Media - 4.89%
Nokia Corp ADR .................... 15,000 $ 231,450
Viacom Inc Cl A ................... 6,000 210,240
Verizon Communications ............ 5,060 179,630
Time Warner Inc. * ................ 9,000 157,950
Tribune Co. ....................... 2,500 99,675
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$ 878,945
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* Non-income producing security
Number of Market
Shares Value
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Consumer Goods - 3.95%
Conagra Inc. .............................. 10,000 $ 270,200
Sara Lee Corp. ............................ 10,000 221,600
Newell Rubbermaid Inc. .................... 10,000 219,400
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$ 711,200
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Energy - 3.81%
Marathon Oil Corp .......................... 10,000 $ 469,200
ConocoPhillips ............................. 2,000 215,680
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$ 684,880
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Industrial and Business Services - 2.11%
Honeywell International Inc. ............... 5,500 $ 204,655
Koninklijke Philips Electronics NV Holdings 6,338 174,422
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$ 379,077
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Healthcare - 1.75%
Pfizer Inc. ................................ 12,000 $ 315,240
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Automotive & Transportation Services - 0.93%
Ryder System Inc. .......................... 4,000 $ 166,800
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Materials - 0.57%
Du Pont E I De Nemours & Co. ................ 2,000 $ 102,480
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Total common stocks (cost $5,497,389) ...... $7,284,398
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* Non-income producing security
Principal Market
Amount Value
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U.S. Treasury Notes - 8.95%
U.S. Treasury Notes 2% due 8/31/2005 .......... $ 500,000 $ 497,812
U.S. Treasury Notes 5.625% due 2/15/2006 ...... 500,000 509,844
U.S. Treasury Notes 4.625% due 5/15/2006 ...... 300,000 303,563
U.S. Treasury Notes 3.5% due 11/15/2006 ....... 300,000 299,062
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Total U.S. Treasury Notes (cost $1,616,902) ... $ 1,610,281
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U.S. Treasury Bills - 7.72%
U.S. Treasury Bill due 5/26/2005 .............. $ 400,000 $ 398,375
U.S. Treasury Bill due 6/23/2005 .............. 500,000 496,875
U.S. Treasury Bill due 8/25/2005 .............. 500,000 494,063
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Total U.S. Treasury Bills (cost $1,384,083) ... $ 1,389,313
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Government Agencies - 2.76%
Federal Home Loan Bank 3.06% due 4/13/2006 .... $ 500,000 $ 496,406
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Total Government Agencies (cost $500,000) ..... $ 496,406
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Corporate Bonds and Notes - 5.03%
General Motors Acceptance Corp 5.25%
due 5/16/2005 ................................. $ 500,000 $ 500,924
Ford Motor Credit Co Global note 7.6%
due 8/1/2005 .................................. 400,000 404,178
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Total Corporate Bonds and Notes (cost $912,760) $ 905,102
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Total Investments - 64.97% .................... $11,685,500
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(cost $9,911,134)
Other Assets less Liabilities - 35.03% ........ $ 6,301,458
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Net Assets - 100% ............................. $17,986,958
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* Non-income producing security
Item 2. Controls and Procedures.
a) The Registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
Registrant's disclosure controls and procedures ( as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c)) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934 ( the "Exchange Act") (17 CFR 240.13a-15(b) or
240.15d-15(b)).
b) There were no changes in the Registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the last fiscal quarter
that has materially affected, or are reasonably likely to materially
affect, the Registrant's internal control over financial reporting.
Item 3. Exhibits.
Certifications of Principal Executive Officer and Principal Financial
Officer of the Registrant as required by Rule 30a-2(a) under the 1940 Act (17
CFR 270.30a-2(a) are attached 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.
Registrant STERLING CAPITAL CORPORATION
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BY (SIGNATURE AND TITLE)* /s/ Wayne S. Reisner
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Wayne S. Reisner, Principal Executive Officer
(Principal Executive Officer)
Date: May 24, 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.
BY (SIGNATURE AND TITLE)* /s/ Wayne S. Reisner
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Wayne S. Reisner, Principal Executive Officer
(Principal Executive Officer)
Date: May 24, 2005
BY (SIGNATURE AND TITLE)* /s/ Michael J. Carey
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Michael J. Carey, Principal Financial Officer
(Principal Financial Officer)
Date: May 24, 2005
o Print the name and title of each signing officer under his or her
signature.