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: March 31, 2015
 
 
 

 

 
Item 1: Schedule of Investments.
A copy of the  Schedule of Investments for the period ended 3/31/15 is included with this Form.
 
Value Line Mid Cap Focused Fund, Inc.
 
Schedule of Investments (unaudited)
               
Shares
      
Value
  
COMMON STOCKS  (97.5%)
        
         
     
CONSUMER DISCRETIONARY  (3.6%)
        
 
60,000
  
LKQ Corp.  *
  
$
1,533,600
  
 
44,000
  
TJX Companies, Inc. (The)
    
3,082,200
  
           
4,615,800
  
     
CONSUMER STAPLES  (12.9%)
        
 
9,332
  
Boston Beer Co., Inc. (The) Class A *(1)
    
2,495,377
  
 
33,600
  
Casey’s General Stores, Inc.
    
3,027,360
  
 
38,000
  
Church & Dwight Co., Inc.
    
3,245,960
  
 
98,500
  
Flowers Foods, Inc.
    
2,239,890
  
 
54,000
  
Hormel Foods Corp.
    
3,069,900
  
 
21,900
  
J&J Snack Foods Corp.
    
2,336,730
  
           
16,415,217
  
     
ENERGY  (3.2%)
        
 
22,400
  
Enbridge, Inc.
    
1,086,400
  
 
35,600
  
EQT Corp.
    
2,950,172
  
           
4,036,572
  
     
FINANCIALS  (2.4%)
        
 
14,100
  
Affiliated Managers Group, Inc.  *
    
3,028,398
  
     
HEALTH CARE  (12.3%)
        
 
16,200
  
C.R. Bard, Inc.
    
2,711,070
  
 
22,700
  
Henry Schein, Inc.  *
    
3,169,374
  
 
19,400
  
IDEXX Laboratories, Inc.  *
    
2,996,912
  
 
47,900
  
Mednax, Inc.  *
    
3,473,229
  
 
9,900
  
Mettler-Toledo International, Inc.  *
    
3,253,635
  
           
15,604,220
  
               
     
INDUSTRIALS  (35.8%)
        
 
54,750
  
AMETEK, Inc.
    
2,876,565
  
 
33,600
  
Carlisle Companies, Inc.
    
3,112,368
  
 
48,400
  
CLARCOR, Inc.
    
3,197,304
  
 
37,700
  
Danaher Corp.
    
3,200,730
  
 
41,983
  
HEICO Corp.
    
2,563,902
  
 
48,926
  
ITT Corp.
    
1,952,636
  
 
22,200
  
Kansas City Southern
    
2,266,176
  
 
14,700
  
Kirby Corp.  *
    
1,103,235
  
 
26,200
  
Middleby Corp. (The)  *
    
2,689,430
  
 
137,400
  
Rollins, Inc.
    
3,397,902
  
 
18,500
  
Roper Industries, Inc.
    
3,182,000
  
 
21,400
  
Snap-on, Inc.
    
3,147,084
  
 
22,300
  
Stericycle, Inc.  *
    
3,131,589
  
 
31,000
  
Teledyne Technologies, Inc.  *
    
3,308,630
  
 
36,800
  
Toro Co. (The)
    
2,580,416
  
 
9,100
  
Wabtec Corp.
    
864,591
  
 
59,700
  
Waste Connections, Inc.
    
2,873,958
  
           
45,448,516
  
     
INFORMATION TECHNOLOGY  (16.4%)
        
 
10,300
  
Alliance Data Systems Corp.  *
    
3,051,375
  
 
55,100
  
Amphenol Corp. Class A
    
3,247,043
  
 
36,200
  
ANSYS, Inc.  *
    
3,192,478
  
 
43,400
  
Fiserv, Inc.  *
    
3,445,960
  
               
Shares
      
Value
  
 
33,300
  
Open Text Corp.
  
$
1,761,237
  
 
20,100
  
Ultimate Software Group, Inc. (The)  *
    
3,416,095
  
 
25,500
  
WEX, Inc. *
    
2,737,680
  
           
20,851,868
  
     
MATERIALS  (10.9%)
        
 
27,000
  
Airgas, Inc.
    
2,864,970
  
 
55,000
  
Crown Holdings, Inc.  *
    
2,971,100
  
 
26,000
  
Ecolab, Inc.
    
2,973,880
  
 
39,100
  
Silgan Holdings, Inc.
    
2,272,883
  
 
33,600
  
Valspar Corp. (The)
    
2,823,408
  
           
13,906,241
  
               
     
TOTAL COMMON STOCKS (Cost $90,577,454) (97.5%)
    
123,906,832
  
               
 
SHORT-TERM INVESTMENTS  (4.3%)
        
           
     
MONEY MARKET FUNDS (4.3%)
        
 
2,861,868
  
State Street Institutional Liquid Reserves Fund
    
2,861,868
  
 
2,545,303
  
State Street Navigator Securities Lending Prime Portfolio (2)
    
2,545,303
  
               
     
TOTAL SHORT-TERM INVESTMENTS
        
     
(Cost $5,407,171) (4.3%)
    
5,407,171
  
               
     
TOTAL INVESTMENT SECURITIES  (101.8%)
        
     
(Cost $95,984,625)
  
$
129,314,003
  
               
EXCESS OF LIABILITIES OVER CASH AND
OTHER ASSETS  (-1.8%)
    
(2,301,759)
  
NET ASSETS (3) (100%)
  
$
127,012,244
  
NET ASSET VALUE OFFERING AND
        
REDEMPTION PRICE, PER OUTSTANDING SHARE
        
($127,012,244 ÷ 8,430,808 shares outstanding)
  
$
15.07
  

*
Non-income producing.
(1)
A portion or all of the security was held on loan. As of March 31, 2015, the market value of the securities on loan was $2,495,377.
(2)
Securities with an aggregate market value of $2,495,377 were out on loan in exchange for $2,545,303 of cash collateral as of March 31, 2015. The collateral was invested in a cash collateral reinvestment vehicle.
(3)
For federal income tax purposes, the aggregate cost was $95,984,625, aggregate gross unrealized appreciation was $33,758,782, aggregate gross unrealized depreciation was $429,404 and the net unrealized appreciation was $33,329,378.
 
1
 
 
 

 

 
The Fund follows fair valuation accounting standards (FASB ASC 820-10) which establish 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 March 31, 2015:
                                 
Investments in Securities:
  
Level 1
    
Level 2
    
Level 3
    
Total
  
Assets
                        
     Common Stocks
   $ 123,906,832     $ -     $ -     $ 123,906,832  
     Short-Term Investments
     5,407,171       -       -       5,407,171  
                                 
     Total Investments in Securities
   $ 129,314,003     $ -     $ -     $ 129,314,003  
                                 
 
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 to 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 March 31, 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 March 31, 2015 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:  May 29, 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: May 29, 2015