UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-05150
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Cornerstone Strategic Value Fund, Inc.
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(Exact name of registrant as specified in charter)
383 Madison Avenue, New York, NY 10179
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(Address of principal executive offices) (Zip code)
Kayadti Madison
Cornerstone Strategic Value Fund, Inc., 383 Madison Avenue, New York, NY 10179
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(Name and address of agent for service)
Registrant's telephone number, including area code: (212) 272-3550
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Date of fiscal year end: December 31, 2007
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Date of reporting period: September 30, 2007
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ITEM 1: SCHEDULE OF INVESTMENTS
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CORNERSTONE STRATEGIC VALUE FUND, INC.
SCHEDULE OF INVESTMENTS -- SEPTEMBER 30, 2007 (UNAUDITED)
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NO. OF
DESCRIPTION SHARES VALUE
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EQUITY SECURITIES - 99.35%
CLOSED-END FUNDS - 1.28%
Adams Express Company 49,500 $ 740,025
General American Investors Company ^ 3,000 122,280
Liberty All-Star Equity Fund 67,300 553,206
Liberty All-Star Growth Fund, Inc. ^ 26,300 153,329
Zweig Fund, Inc. ^ 19,000 98,990
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1,667,830
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CONSUMER DISCRETIONARY - 9.55%
Amazon.com, Inc. * 5,500 512,325
Carnival Corporation 11,800 571,474
Clear Channel Communications, Inc. 3,300 123,552
Coach, Inc. * 3,500 165,445
Comcast Corporation, Class A * 28,555 690,460
Gannett Co., Inc. 3,500 152,950
Gap, Inc. (The) 12,200 224,968
Goodyear Tire & Rubber Company (The) ^ * 4,500 136,845
Harley-Davidson, Inc. ^ 4,400 203,324
Hilton Hotels Corporation 6,200 288,238
Home Depot, Inc. (The) ^ 23,100 749,364
J.C. Penney Company, Inc. ^ 4,500 285,165
Johnson Controls, Inc. 2,500 295,275
Kohl's Corporation * 2,500 143,325
Lowe's Companies, Inc. 15,400 431,508
Macy's, Inc. 11,052 357,201
McDonald's Corporation 15,100 822,497
News Corporation, Class A 23,000 505,770
NIKE, Inc., Class B 14,600 856,436
Omnicom Group Inc. 13,200 634,788
Sears Holdings Corporation ^ * 503 63,982
Staples, Inc. 10,800 232,092
Starbucks Corporation * 2,800 73,360
Target Corporation ^ 11,800 750,126
Time Warner Inc. 76,000 1,395,360
TJX Companies, Inc. (The) ^ 3,000 87,210
Toyota Motor Corporation ADR 2,500 292,150
Viacom Inc., Class B * 9,450 368,266
Walt Disney Company (The) 30,200 1,038,578
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12,452,034
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CONSUMER STAPLES - 9.27%
Altria Group, Inc. 22,300 1,550,519
Anheuser-Busch Companies, Inc. 6,200 309,938
Archer-Daniels-Midland Company 6,960 230,237
Coca-Cola Company (The) 27,000 1,551,690
Colgate-Palmolive Company 3,400 242,488
ConAgra Foods, Inc. 6,900 180,297
CVS Corporation 13,930 552,046
NO. OF
DESCRIPTION SHARES VALUE
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General Mills, Inc. 5,000 290,050
H.J. Heinz Company ^ 4,000 184,800
Kimberly-Clark Corporation 5,500 386,430
Kraft Foods Inc, Class A ^ 10,932 377,263
Kroger Co. (The) 13,800 393,576
PepsiCo, Inc. 17,600 1,289,376
Procter & Gamble Company (The) ^ 32,797 2,306,941
Sara Lee Corporation 4,500 75,105
Sysco Corporation 9,800 348,782
Walgreen Co. 24,800 1,171,552
Wal-Mart Stores, Inc. 15,100 659,115
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12,100,205
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ENERGY - 11.62%
Baker Hughes Incorporated 10,600 957,922
BJ Services Company 3,500 92,925
Chevron Corporation ^ 24,532 2,295,705
ConocoPhillips ^ 10,474 919,303
Exxon Mobil Corporation ^ 73,500 6,803,159
Halliburton Company 6,700 257,280
Marathon Oil Corp. 15,000 855,300
Noble Corporation 2,500 122,625
Occidental Petroleum Corporation 10,500 672,840
Schlumberger Limited 14,000 1,470,000
Valero Energy Corporation 6,000 403,080
XTO Energy, Inc. 5,000 309,200
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15,159,339
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FINANCIALS - 18.68%
AFLAC Incorporated 7,000 399,280
Allstate Corporation (The) 9,300 531,867
American Express Company 19,600 1,163,652
American International Group, Inc. 16,831 1,138,617
Bank of America Corporation 59,138 2,972,867
Bank of New York Mellon Corporation 10,754 474,682
BB&T Corporation ^ 4,000 161,560
Bear Stearns Companies, Inc. (The) 2,500 307,025
CB Richard Ellis Group, Inc., Class A ^ * 9,000 250,560
Charles Schwab Corporation (The) ^ 6,000 129,600
Chubb Corporation (The) ^ 4,100 219,924
Citigroup Inc. 60,300 2,814,201
Fannie Mae 4,000 243,240
Freddie Mac ^ 2,900 171,129
Goldman Sachs Group, Inc. (The) ^ 7,300 1,582,202
Hartford Financial Services Group, Inc. (The) 6,000 555,300
JPMorgan Chase & Co. 33,632 1,541,018
Lehman Brothers Holdings Inc. ^ 7,200 444,456
Marsh & McLennan Companies, Inc. 6,000 153,000
Merrill Lynch & Co., Inc. ^ 7,200 513,216
Metlife, Inc. ^ 15,200 1,059,896
Morgan Stanley 15,500 976,500
National City Corporation 6,700 168,103
PNC Financial Services Group, Inc. 4,600 313,260
Prudential Financial, Inc. 10,700 1,044,106
State Street Corporation ^ 3,500 238,560
SunTrust Banks, Inc. 5,000 378,350
Travelers Companies, Inc. (The) 9,476 477,022
NO. OF
DESCRIPTION SHARES VALUE
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U.S. Bancorp 21,901 712,440
Wachovia Corporation 22,100 1,108,315
Washington Mutual, Inc. 11,550 407,830
Wells Fargo & Company 48,400 1,724,008
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24,375,786
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HEALTHCARE - 11.69%
Abbott Laboratories 17,700 949,074
Aetna Inc. 6,000 325,620
Amgen Inc. * 22,400 1,267,168
Baxter International Inc. ^ 5,000 281,400
Becton, Dickinson and Company 6,900 566,145
Biogen Idec Inc. * 3,000 198,990
Bristol-Myers Squibb Company ^ 18,500 533,170
Cardinal Health, Inc. 2,950 184,464
Covidien Limited 2,599 107,858
Eli Lilly and Company 4,700 267,571
Gilead Sciences, Inc. * 7,000 286,090
Johnson & Johnson 40,900 2,687,130
McKesson Corporation ^ 5,300 311,587
Medco Health Solutions, Inc. * 2,687 242,878
Medtronic, Inc. ^ 21,500 1,212,815
Merck & Co. Inc. 17,500 904,575
Pfizer Inc. 43,560 1,064,171
Schering-Plough Corporation 17,500 553,525
Stryker Corporation 3,500 240,660
UnitedHealth Group Incorporated ^ 22,000 1,065,460
WellPoint Inc. * 14,000 1,104,880
Wyeth 20,200 899,910
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15,255,141
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INDUSTRIALS - 11.38%
3M Co. 9,400 879,652
Boeing Company (The) 6,700 703,433
Burlington Northern Santa Fe Corporation 2,900 235,393
Caterpillar Inc. 6,800 533,324
CSX Corporation 10,000 427,300
Danaher Corporation ^ 3,500 289,485
Deere & Company 2,500 371,050
Emerson Electric Co. 12,000 638,640
FedEx Corp. 4,500 471,375
General Dynamics Corporation 6,200 523,714
General Electric Company 100,900 4,177,260
Honeywell International Inc. 12,500 743,375
Illinois Tool Works Inc. 13,300 793,212
Ingersoll-Rand Company Ltd., Class A 4,500 245,115
Lockheed Martin Corporation ^ 4,000 433,960
Norfolk Southern Corporation 5,500 285,505
Northrop Grumman Corporation ^ 5,000 390,000
Raytheon Company ^ 5,000 319,100
Southwest Airlines Co. 5,700 84,360
Tyco International Ltd. 2,599 115,240
Union Pacific Corporation 2,000 226,120
United Parcel Service, Inc., Class B 9,600 720,960
United Technologies Corporation 11,000 885,280
Waste Management, Inc. 9,300 350,982
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14,843,835
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NO. OF
DESCRIPTION SHARES VALUE
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INFORMATION TECHNOLOGY - 15.69%
Adobe Systems Incorporated * 4,200 183,372
Agilent Technologies Inc. * 8,000 295,040
Analog Devices, Inc. 3,500 126,560
Apple Computer, Inc. * 5,500 844,470
Applied Materials, Inc. 33,800 699,660
Automatic Data Processing, Inc. 17,900 822,147
Cisco Systems, Inc. * 77,400 2,562,714
Corning Incorporated * 8,000 197,200
Dell Inc. ^ * 4,700 129,720
eBay Inc. * 8,500 331,670
Electronic Data Systems Corporation 5,000 109,200
EMC Corporation ^ * 116,648 2,426,278
Google Inc. * 2,500 1,418,175
Hewlett-Packard Company 19,900 990,821
Intel Corporation 60,500 1,564,530
International Business Machines Corporation 12,600 1,484,280
Micron Technology, Inc. * 11,500 127,650
Microsoft Corporation 98,200 2,892,972
Motorola, Inc. 10,000 185,300
Oracle Corporation * 44,272 958,489
QUALCOMM Inc. 17,000 718,420
Sun Microsystems, Inc. * 7,500 42,075
Texas Instruments Incorporated 26,400 965,976
Yahoo! Inc. * 14,800 397,232
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20,473,951
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MATERIALS - 2.82%
Alcoa Inc. 16,900 661,128
Dow Chemical Company (The) 10,400 447,824
E. I. du Pont de Nemours and Company 17,300 857,388
Freeport-McMoRan Copper & Gold, Inc. 2,500 262,225
International Paper Company 10,500 376,635
Monsanto Company ^ 5,660 485,288
Newmont Mining Corporation 3,000 134,190
Praxair, Inc. 5,500 460,680
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3,685,358
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REAL ESTATE INVESTMENT TRUST - 0.31%
Simon Property Group, Inc. 4,000 400,000
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TELECOMMUNICATION SERVICES - 3.52%
ALLTEL Corporation 4,000 278,720
AT&T Inc. 56,539 2,392,165
Sprint Nextel Corporation 20,946 397,974
Verizon Communications Inc. 34,300 1,518,804
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4,587,663
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UTILITIES - 3.54%
American Electric Power Company, Inc. 8,000 368,640
CenterPoint Energy, Inc. 10,000 160,300
Dominion Resources, Inc. 7,100 598,530
Duke Energy Corporation 15,800 295,302
Edison International ^ 6,500 360,425
Exelon Corporation 6,000 452,160
FirstEnergy Corp. 5,000 316,700
FPL Group, Inc. 4,000 243,520
PG&E Corporation ^ 5,000 239,000
NO. OF
DESCRIPTION SHARES VALUE
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Public Service Enterprise Group Incorporated 3,500 307,965
Southern Company (The) 11,900 431,732
TXU Corp. ^ 12,400 849,028
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4,623,302
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TOTAL EQUITY SECURITIES
(cost - $94,480,626) 129,624,444
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PRINCIPAL
AMOUNT
(000'S)
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SHORT-TERM INVESTMENTS - 2.84%
REPURCHASE AGREEMENTS - 2.84%
Bear, Stearns & Co. Inc. + ++
(Agreements dated 9/28/2007 to be repurchased
at $1,506,223, 5.2500%, 10/1/2007, collateralized
by $1,549,414 in United States Treasury Strips) $ 1,506 1,505,564
Bear, Stearns & Co. Inc. + ++
(Agreements dated 9/28/2007 to be repurchased
at $1,316,922, 2.6250%, 10/1/2007, collateralized
by $1,355,481 in United States Treasury Strips
and Bonds) 1,317 1,316,634
Bear, Stearns & Co. Inc.
(Agreements dated 9/28/2007 to be repurchased
at $886,185, 3.9500%, 10/1/2007, collateralized
by $911,691 in United States Treasury Strips) 886 885,893
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TOTAL SHORT-TERM INVESTMENTS
(cost - $3,708,091) 3,708,091
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TOTAL INVESTMENTS - 102.19%
(cost - $98,188,717) 133,332,535
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LIABILITIES IN EXCESS OF OTHER ASSETS - (2.19)% (2,863,076)
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NET ASSETS - 100.00% $ 130,469,459
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^ Security or a portion thereof is out on loan.
* Non-income producing security.
ADR American Depositary Receipt
+ Stated interest rate, before rebate earned by borrower of securities on
loan.
++ Represents investment purchased with collateral received for securities on
loan.
Federal Income Tax Cost: At September 30, 2007, the identified cost for federal
income tax purposes, as well as the gross unrealized appreciation from
investments for those securities having an excess of value over cost, gross
unrealized depreciation from investments for those securities having an excess
of cost over value and the net unrealized appreciation from investments were
$98,188,717, $36,186,238, ($1,042,420), $35,143,818, respectively.
Securities valuation policies and other investment related disclosures are
hereby incorporated by reference to the Fund's semi-annual report previously
filed with the Securities and Exchange Commission on the Form N-CSR on August
31, 2007 with a file number 811-05150.
Other information regarding the Fund is available in the Fund's most recent
semi-annual report filed with the Securities and Exchange Commission on Form
N-CSR on August 31, 2007, file number 811-05150. This information is also
available to registered shareholders by calling (800) 937-5449. For general
inquiries, please call (212) 272-3550. This information is also available on the
website of the Securities and Exchange Commission - http://www.sec.gov.
ITEM 2: CONTROLS AND PROCEDURES
(a) As of a date within 90 days from the filing date of this report, the
principal executive officer and principal financial officer concluded that the
registrant's disclosure controls and procedures (as defined in Rule 30a-3(c)
under the Investment Company Act of 1940 (the "Act")), were effective based on
their evaluation of the disclosure controls and procedures required by Rule
30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities and
Exchange Act of 1934.
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred
during the registrant's last fiscal quarter that have materially affected, or
are reasonably likely to materially affect, the registrant's internal control
over financial reporting.
ITEM 3: EXHIBITS
1. The certifications of the registrant as required by Rule 30a-2(a) under
the Act are exhibits to this report.
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.
Cornerstone Strategic Value Fund, Inc.
/s/ Ralph W. Bradshaw
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Name: Ralph W. Bradshaw
Title: Principal Executive Officer
Date: November 26, 2007
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.
/s/ Ralph W. Bradshaw
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Name: Ralph W. Bradshaw
Title: Principal Executive Officer
Date: November 26, 2007
/s/ Kayadti Madison
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Name: Kayadti Madison
Title: Principal Financial Officer
Date: November 26, 2007