Edgar Filing: VALUE LINE FUND INC

t73638_nq.htm

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 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, 2012

Item 1: Schedule of Investments.

A copy of Schedule of Investments for the period ended 3/31/12 is included with this Form.

The Value Line Fund, Inc.


Schedule of Investments (unaudited)	March 31, 2012

Shares			Value
COMMON STOCKS (94.4%)

		CONSUMER DISCRETIONARY (20.6%)
	6,700	AutoZone, Inc. *	$	2,491,060
	7,000	Bed Bath & Beyond, Inc. *		460,390
	10,800	BorgWarner, Inc. *		910,872
	22,400	Brinker International, Inc.		617,120
	13,000	Buckle, Inc. (The)		622,700
	9,000	Buffalo Wild Wings, Inc. *		816,210
	3,800	Chipotle Mexican Grill, Inc. *		1,588,400
	11,700	Coach, Inc.		904,176
	17,500	Darden Restaurants, Inc.		895,300
	17,000	Deckers Outdoor Corp. *		1,071,850
	9,000	Dick’s Sporting Goods, Inc.		432,720
	12,000	Dollar Tree, Inc. *		1,133,880
	24,000	Domino’s Pizza, Inc.		871,200
	3,800	Fossil, Inc. *		501,524
	9,300	Genuine Parts Co.		583,575
	13,000	Gildan Activewear, Inc.		358,150
	15,400	Hanesbrands, Inc. *		454,916
	5,000	Johnson Controls, Inc.		162,400
	21,500	LKQ Corp. *		670,155
	3,000	Lululemon Athletica, Inc. *		224,040
	15,300	McDonald’s Corp.		1,500,930
	2,000	Netflix, Inc. *		230,080
	7,000	NIKE, Inc. Class B		759,080
	2,000	O’Reilly Automotive, Inc. *		182,700
	12,000	Panera Bread Co. Class A *		1,931,040
	10,400	Penn National Gaming, Inc. *		446,992
	3,000	Ralph Lauren Corp.		522,990
	10,500	Starbucks Corp.		586,845
	3,000	Tim Hortons, Inc.		160,620
	44,000	TJX Companies, Inc. (The)		1,747,240
	6,000	Ulta Salon, Cosmetics & Fragrance, Inc.		557,340
	8,300	Under Armour, Inc. Class A *		780,200
	10,000	Warnaco Group, Inc. (The) *		584,000
	4,600	Wynn Resorts Ltd.		574,448
	27,800	Yum! Brands, Inc.		1,978,804
				28,313,947

		CONSUMER STAPLES (9.6%)
	1,400	Boston Beer Co., Inc. (The) Class A *		149,506
	4,900	British American Tobacco PLC ADR		495,978
	6,500	Bunge Ltd.		444,860
	15,400	Casey’s General Stores, Inc.		854,084
	32,000	Church & Dwight Co., Inc.		1,574,080
	12,700	Corn Products International, Inc.		732,155
	9,000	Costco Wholesale Corp.		817,200
	24,000	Diamond Foods, Inc.		547,680
	36,000	Flowers Foods, Inc.		733,320
	15,000	General Mills, Inc.		591,750
	20,000	Green Mountain Coffee Roasters, Inc. *		936,800
	8,000	Harris Teeter Supermarkets, Inc.		320,800
	11,400	Herbalife Ltd.		784,548
	41,000	Hormel Foods Corp.		1,210,320
	21,100	J&J Snack Foods Corp.		1,106,906
	7,000	Molson Coors Brewing Co. Class B		316,750
	7,000	PepsiCo, Inc.		464,450
	10,300	TreeHouse Foods, Inc. *		612,850
	6,000	Whole Foods Market, Inc.		499,200
				13,193,237

Shares			Value
		ENERGY (0.8%)
	2,300	Core Laboratories N.V.	$	302,611
	4,000	Devon Energy Corp.		284,480
	14,000	Enbridge, Inc.		543,900
				1,130,991

		FINANCIALS (4.5%)
	8,000	Affiliated Managers Group, Inc. *		894,480
	20,000	AFLAC, Inc.		919,800
	10,000	American Tower Corp. REIT		630,200
	2,000	Axis Capital Holdings Ltd.		66,340
	14,000	Bank of Montreal		831,880
	3,000	BlackRock, Inc.		614,700
	4,600	M&T Bank Corp.		399,648
	8,000	Royal Bank of Canada		464,400
	13,500	Stifel Financial Corp. *		510,840
	13,000	T. Rowe Price Group, Inc.		848,900
				6,181,188

		HEALTH CARE (14.6%)
	13,600	Alexion Pharmaceuticals, Inc. *		1,262,896
	11,600	Allergan, Inc.		1,106,988
	2,000	Bio-Rad Laboratories, Inc. Class A *		207,380
	7,000	C.R. Bard, Inc.		691,040
	14,400	Catalyst Health Solutions, Inc. *		917,712
	13,200	Cerner Corp. *		1,005,312
	20,900	Computer Programs & Systems, Inc.		1,181,268
	7,000	DaVita, Inc. *		631,190
	3,000	DENTSPLY International, Inc.		120,390
	25,000	Edwards Lifesciences Corp. *		1,818,250
	11,700	Endo Pharmaceuticals Holdings, Inc. *		453,141
	24,000	Express Scripts, Inc. *		1,300,320
	13,700	Henry Schein, Inc. *		1,036,816
	6,600	IDEXX Laboratories, Inc. *		577,170
	1,000	Intuitive Surgical, Inc. *		541,750
	14,000	Medco Health Solutions, Inc. *		984,200
	9,100	Mednax, Inc. *		676,767
	3,800	Mettler-Toledo International, Inc. *		702,050
	10,100	Novo Nordisk A/S ADR		1,400,971
	17,500	Owens & Minor, Inc.		532,175
	6,600	Techne Corp.		462,660
	18,000	Teva Pharmaceutical Industries Ltd. ADR		811,080
	8,200	Thermo Fisher Scientific, Inc.		462,316
	8,400	Universal Health Services, Inc. Class B		352,044
	9,000	Volcano Corp. *		255,150
	6,000	Waters Corp. *		555,960
				20,046,996

		INDUSTRIALS (19.8%)
	1,200	Acuity Brands, Inc.		75,396
	26,500	AMETEK, Inc.		1,285,515
	5,800	C.H. Robinson Worldwide, Inc.		379,842
	12,100	Canadian National Railway Co.		961,103
	14,000	Chicago Bridge & Iron Co. N.V.		604,660
	15,000	CLARCOR, Inc.		736,350
	7,000	Clean Harbors, Inc. *		471,310
	23,700	Danaher Corp.		1,327,200
	40,000	Donaldson Co., Inc.		1,429,200
	17,000	Eaton Corp.		847,110
	2,400	Esterline Technologies Corp. *		171,504
	11,700	Exelis, Inc.		146,484

The Value Line Fund, Inc.

March 31, 2012

Shares			Value
	12,000	Fastenal Co.	$	649,200
	7,000	FedEx Corp.		643,720
	5,000	Gardner Denver, Inc.		315,100
	9,300	Graco, Inc.		493,458
	8,950	HEICO Corp.		461,731
	15,000	IDEX Corp.		631,950
	11,200	IHS, Inc. Class A *		1,048,880
	7,400	Iron Mountain, Inc.		213,120
	5,850	ITT Corp.		134,199
	6,800	J.B. Hunt Transport Services, Inc.		369,716
	11,000	Kansas City Southern *		788,590
	15,700	Kirby Corp. *		1,032,903
	7,400	L-3 Communications Holdings, Inc.		523,698
	2,300	Middleby Corp. (The) *		232,714
	6,200	Parker Hannifin Corp.		524,210
	3,200	Precision Castparts Corp.		553,280
	15,000	Republic Services, Inc.		458,400
	85,000	Rollins, Inc.		1,808,800
	13,400	Roper Industries, Inc.		1,328,744
	12,000	Stericycle, Inc. *		1,003,680
	6,800	Toro Co. (The)		483,548
	9,000	Union Pacific Corp.		967,320
	12,400	United Technologies Corp.		1,028,456
	6,600	Valmont Industries, Inc.		774,906
	4,300	Verisk Analytics, Inc. Class A *		201,971
	4,900	W.W. Grainger, Inc.		1,052,569
	25,300	Waste Connections, Inc.		823,009
	11,700	Xylem, Inc.		324,675
				27,308,221

		INFORMATION TECHNOLOGY (12.1%)
	22,600	Accenture PLC Class A		1,457,700
	8,300	Alliance Data Systems Corp. *		1,045,468
	7,000	Amphenol Corp. Class A		418,390
	4,500	Anixter International, Inc. *		326,385
	13,500	ANSYS, Inc. *		877,770
	5,000	Ariba, Inc. *		163,550
	23,000	Check Point Software Technologies Ltd. *		1,468,320
	17,400	Cognizant Technology Solutions Corp. Class A *		1,338,930
	7,000	Equinix, Inc. *		1,102,150
	5,700	F5 Networks, Inc. *		769,272
	21,600	Informatica Corp. *		1,142,640
	2,600	MasterCard, Inc. Class A		1,093,404
	9,400	MICROS Systems, Inc. *		519,726
	12,000	Netgear, Inc. *		458,400
	12,800	Open Text Corp. *		782,720
	9,000	Rackspace Hosting, Inc. *		520,110
	7,000	Salesforce.com, Inc. *		1,081,570
	10,300	Solera Holdings, Inc.		472,667
	12,000	TIBCO Software, Inc. *		366,000
	6,000	VMware, Inc. Class A *		674,220
	8,100	Wright Express Corp. *		524,313
				16,603,705

		MATERIALS (9.8%)
	10,800	Albemarle Corp.		690,336
	23,000	Ball Corp.		986,240
	8,200	CF Industries Holdings, Inc.		1,497,730
	38,000	Crown Holdings, Inc. *		1,399,540
	10,000	Cytec Industries, Inc.		607,900

Shares			Value
	16,700	FMC Corp.	$	1,767,862
	8,100	NewMarket Corp.		1,517,940
	10,000	Packaging Corp. of America		295,900
	11,300	Praxair, Inc.		1,295,432
	14,000	Scotts Miracle-Gro Co. (The) Class A		758,240
	12,400	Sigma-Aldrich Corp.		905,944
	25,900	Silgan Holdings, Inc.		1,144,780
	11,400	Valspar Corp. (The)		550,506
				13,418,350

		TELECOMMUNICATION SERVICES (0.5%)
	13,000	Crown Castle International Corp. *		693,420

		UTILITIES (2.1%)
	10,000	ITC Holdings Corp.		769,400
	8,600	NSTAR		418,218
	9,000	ONEOK, Inc.		734,940
	23,000	Questar Corp.		442,980
	15,300	Wisconsin Energy Corp.		538,254
				2,903,792
		TOTAL COMMON STOCKS AND TOTAL INVESTMENT SECURITIES (94.4%)
		(Cost $87,206,578)		129,793,847

Principal Amount			Value
SHORT-TERM INVESTMENTS (5.4%)

		REPURCHASE AGREEMENT (5.4%)
$	7,500,000	With Morgan Stanley, 0.08%, dated 03/30/12, due 04/02/12, delivery value $7,500,050 (collateralized by $7,060,000 U.S. Treasury Notes 2.7500% due 02/15/19, with a value of $7,633,322)		7,500,000
		TOTAL SHORT-TERM INVESTMENTS
		(Cost $7,500,000) (5.4%)		7,500,000
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES (0.2%)				266,575
NET ASSETS (1) (100%)			$	137,560,422
NET ASSET VALUE OFFERING AND REDEMPTION PRICE, PER OUTSTANDING SHARE
	($137,560,422 ÷ 13,545,926 shares outstanding)		$	10.16

*	Non-income producing.
(1)	For federal income tax purposes, the aggregate cost was $94,706,578, aggregate gross unrealized appreciation was $43,214,020, aggregate gross unrealized depreciation was $626,751 and the net unrealized appreciation was $42,587,269.
ADR	American Depositary Receipt.
REIT	Real Estate Investment Trust.

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, 2012:


Investments in Securities:	Level 1		Level 2		Level 3		Total
Assets
Common Stocks	$	129,793,847	$	0	$	0	$	129,793,847
Short-Term Investments		0		7,500,000		0		7,500,000

Total Investments in Securities	$	129,793,847	$	7,500,000	$	0	$	137,293,847

In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2011- 04, “Fair Value Measurements and Disclosures (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs” (“ASU 2011-04”). ASU 2011-04 clarifies the application of existing fair value measurement requirements, changes certain principles related to measuring fair value, and requires additional disclosures about fair value measurements.

Specifically, the guidance specifies that the concepts of highest and best use and valuation premise in a fair value measurement are only relevant when measuring the fair value of nonfinancial assets whereas they are not relevant when measuring the fair value of financial assets and liabilities.

Required disclosures are expanded under the new guidance, especially for fair value measurements that are categorized within Level 3 of the fair value hierarchy, for which quantitative information about the unobservable inputs used, and a narrative description of the valuation processes in place and sensitivity of recurring Level 3 measurements to changes in unobservable inputs will be required. Entities will also be required to disclose the categorization by level of the fair value hierarchy for items that are not measured at fair value in the statement of financial position but for which the fair value is required to be disclosed.

ASU 2011-04 is effective for annual periods beginning after December 15, 2011 and is to be applied prospectively. The Fund is currently assessing the impact of this guidance on its financial statements.

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 fair value hierarchy.

For the period ended March 31, 2012, there was no significant transfer activity between Level 1 and Level 2.

For the period ended March 31, 2012, there were no Level 3 investments. The Schedule of Investments includes a breakdown of the Schedule’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 30, 2012

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 30, 2012