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.

 

 

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