Edgar Filing: VALUE LINE FUND INC

t65608c_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)

220 East 42nd Street, New York, NY 10017

Mitchell E. Appel
(Name and address of agent for service)

Registrant’s telephone number, including area code: 212-907-1500

Date of fiscal year end: December 31, 2009

Date of reporting period: March 31, 2009

Item 1: Schedule of Investments.

A copy of Schedule of Investments for the period ended 3/31/09 is included with this Form.

The Value Line Fund, Inc.

Schedule of Investments (unaudited)	March 31, 2009

Shares			Value
COMMON STOCKS (96.7%)

		AEROSPACE/DEFENSE (1.9%)
	68,000	AAR Corp. *	$	852,720
	15,000	Elbit Systems Ltd.		723,450
				1,576,170
		APPAREL (1.1%)
	31,000	Jos. A. Bank Clothiers, Inc. *		862,110
		BIOTECHNOLOGY (2.0%)
	15,000	Amgen, Inc. *		742,800
	20,000	Myriad Genetics, Inc. *		909,400
				1,652,200
		CABLE TV (2.0%)
	37,000	DIRECTV Group, Inc. (The) *		843,230
	53,000	Shaw Communications, Inc. Class B		802,950
				1,646,180
		CHEMICAL - BASIC (0.9%)
	13,000	Compass Minerals International, Inc.		732,810
		COMPUTER & PERIPHERALS (1.1%)
	34,000	Synaptics, Inc. *		909,840
		COMPUTER SOFTWARE & SERVICES (10.6%)
	28,000	Accenture Ltd. Class A		769,720
	38,000	ACI Worldwide, Inc. *		712,500
	45,000	CA, Inc.		792,450
	19,000	CACI International, Inc. Class A *		693,310
	32,000	Check Point Software Technologies Ltd. *		710,720
	32,000	Intuit, Inc. *		864,000
	17,000	ManTech International Corp. Class A*		712,300
	27,000	McAfee, Inc. *		904,500
	51,000	Oracle Corp. *		921,570
	29,000	Sybase, Inc. *		878,410
	38,000	Synopsys, Inc. *		787,740
				8,747,220
		DIVERSIFIED COMPANIES (1.0%)
	21,000	Chemed Corp.		816,900
		DRUG (10.3%)
	15,000	Biogen Idec, Inc. *		786,300
	38,000	Bristol-Myers Squibb Co.		832,960
	11,000	Cephalon, Inc. *		749,100
	39,000	Endo Pharmaceuticals Holdings, Inc. *		689,520
	17,000	Gilead Sciences, Inc. *		787,440
	16,000	Novo Nordisk A/S ADR		767,680
	26,000	Onyx Pharmaceuticals, Inc. *		742,300
	22,000	OSI Pharmaceuticals, Inc. *		841,720
	28,000	Sanofi-Aventis ADR		782,040
	50,000	Sepracor, Inc. *		733,000
	18,000	Teva Pharmaceutical Industries Ltd. ADR		810,900
				8,522,960
		E-COMMERCE (1.0%)
	25,000	Open Text Corp. *		861,000

Shares			Value
		EDUCATIONAL SERVICES (4.9%)
	11,000	Apollo Group, Inc. Class A *	$	861,630
	42,000	Corinthian Colleges, Inc. *		816,900
	16,000	DeVry, Inc.		770,880
	7,000	ITT Educational Services, Inc. *		849,940
	4,000	Strayer Education, Inc.		719,480
				4,018,830
		ELECTRICAL EQUIPMENT (0.9%)
	11,000	W.W. Grainger, Inc.		771,980
		ELECTRONICS (0.9%)
	36,000	Greatbatch, Inc. *		696,600
		ENTERTAINMENT TECHNOLOGY (1.0%)
	20,000	Netflix, Inc. *		858,400
		ENVIRONMENTAL (2.7%)
	53,000	Calgon Carbon Corp. *		751,010
	17,000	Stericycle, Inc. *		811,410
	32,000	Tetra Tech, Inc. *		652,160
				2,214,580
		FINANCIAL SERVICES - DIVERSIFIED (0.8%)
	38,000	H&R Block, Inc.		691,220
		FOOD PROCESSING (5.2%)
	35,000	Diamond Foods, Inc.		977,550
	37,000	Flowers Foods, Inc.		868,760
	23,000	J&J Snack Foods Corp.		795,570
	40,000	Peet’s Coffee & Tea, Inc. *		864,800
	28,000	TreeHouse Foods, Inc. *		806,120
				4,312,800
		FOOD WHOLESALERS (1.2%)
	21,000	Green Mountain Coffee Roasters, Inc. *		1,008,000
		HEALTH CARE INFORMATION SYSTEMS (2.3%)
	20,000	Cerner Corp. *		879,400
	30,000	Computer Programs & Systems, Inc.		998,100
				1,877,500
		HOUSEHOLD PRODUCTS (1.1%)
	17,000	Church & Dwight Co., Inc.		887,910
		HUMAN RESOURCES (0.8%)
	22,000	Hewitt Associates, Inc. Class A *		654,720
		INDUSTRIAL SERVICES (4.0%)
	18,000	C.H. Robinson Worldwide, Inc.		820,980
	21,000	MAXIMUS, Inc.		837,060
	50,000	Rollins, Inc.		857,500
	44,000	SAIC, Inc. *		821,480
				3,337,020
		INFORMATION SERVICES (2.9%)
	10,000	Dun & Bradstreet Corp. (The)		770,000
	18,000	IHS, Inc. Class A *		741,240

The Value Line Fund, Inc.

March 31, 2009

Shares			Value
	35,000	Interactive Data Corp.	$	870,100
				2,381,340
		INTERNET (2.8%)
	12,000	Amazon.com, Inc. *		881,280
	36,000	F5 Networks, Inc. *		754,200
	9,000	Priceline.com, Inc. *		709,020
				2,344,500
		MEDICAL SERVICES (3.5%)
	17,000	DaVita, Inc. *		747,150
	12,000	Laboratory Corporation of America Holdings *		701,880
	70,000	Odyssey HealthCare, Inc. *		679,000
	16,000	Quest Diagnostics, Inc.		759,680
				2,887,710
		MEDICAL SUPPLIES (11.5%)
	22,000	AmerisourceBergen Corp.		718,520
	11,000	Bard (C.R.), Inc.		876,920
	14,000	Baxter International, Inc.		717,080
	13,000	Becton, Dickinson & Co.		874,120
	14,000	Edwards Lifesciences Corp. *		848,820
	15,000	Haemonetics Corp. *		826,200
	20,000	Illumina, Inc. *		744,800
	14,000	Johnson & Johnson		736,400
	20,000	McKesson Corp.		700,800
	22,000	ResMed, Inc. *		777,480
	21,000	St. Jude Medical, Inc. *		762,930
	35,000	Thoratec Corp. *		899,150
				9,483,220
		NATURAL GAS - DISTRIBUTION (0.9%)
	32,000	UGI Corp.		755,520
		PACKAGING & CONTAINER (2.0%)
	38,000	Crown Holdings, Inc. *		863,740
	15,000	Silgan Holdings, Inc.		788,100
				1,651,840
		PHARMACY SERVICES (1.0%)
	20,000	Medco Health Solutions, Inc. *		826,800
		RESTAURANT (4.0%)
	25,000	Buffalo Wild Wings, Inc. *		914,500
	20,000	Darden Restaurants, Inc.		685,200
	15,000	McDonald’s Corp.		818,550
	16,000	Panera Bread Co. Class A *		894,400
				3,312,650
		RETAIL - AUTOMOTIVE (2.0%)
	21,000	Advance Auto Parts, Inc.		862,680
	5,000	AutoZone, Inc. *		813,100
				1,675,780
		RETAIL - SPECIAL LINES (1.9%)
	24,000	Buckle, Inc. (The)		766,320

Shares			Value
	73,000	Hot Topic, Inc. *	$	816,870
				1,583,190
		RETAIL STORE (1.9%)
	18,000	Dollar Tree, Inc. *		801,900
	23,000	Family Dollar Stores, Inc.		767,510
				1,569,410
		SECURITIES BROKERAGE (0.8%)
	45,000	Knight Capital Group, Inc. Class A *		663,300
		TELECOMMUNICATION SERVICES (1.0%)
	27,000	American Tower Corp. Class A *		821,610
		TELECOMMUNICATIONS EQUIPMENT (0.9%)
	38,000	Applied Signal Technology, Inc.		768,740
		TOILETRIES & COSMETICS (0.8%)
	12,000	Chattem, Inc. *		672,600
		WIRELESS NETWORKING (1.1%)
	42,000	ViaSat, Inc. *		874,440
		TOTAL COMMON STOCKS AND TOTAL INVESTMENT SECURITIES (96.7%) (Cost $79,532,690)		79,929,600

Principal Amount			Value
SHORT-TERM INVESTMENTS (3.3%)

		U.S. TREASURY OBLIGATIONS (2.4%)
$	2,000,000	United States Treasury Bill, 0.13%, 4/23/09 (1)		1,999,988
		REPURCHASE AGREEMENTS (2) (0.9%)
	700,000	With Morgan Stanley, 0.06%, dated 3/31/09, due 4/1/09, delivery value $700,001 (collateralized by $715,000 U.S. Treasury Notes 1.125%, due 12/15/11, with a value of $719,465), 0.06%, 4/1/09		700,000
		TOTAL SHORT-TERM INVESTMENTS (Cost $2,699,988)		2,699,988
EXCESS OF LIABILITIES OVER CASH AND OTHER ASSETS (0.0%)				(6,586	)
NET ASSETS (3) (100%)			$	82,623,002
NET ASSET VALUE OFFERING AND REDEMPTION PRICE, PER OUTSTANDING SHARE ($82,623,002 ÷ 14,626,522 shares outstanding)			$	5.65

* Non-income producing.

The Value Line Fund, Inc.

Schedule of Investments (unaudited)

(1)	The rate shown on discount securities represents the yield or rate at the end of the reporting period.
(2)	The Fund’s custodian takes possession of the underlying collateral securities, the value of which exceeds the principal amount of the repurchase transaction, including accrued interest.
(3)	For federal income tax purposes, the aggregate cost was $82,232,678, aggregate gross unrealized appreciation was $5,020,911, aggregate gross unrealized depreciation was $4,624,001 and the net unrealized depreciation was $396,910.
ADR	American Depositary Receipt.

The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157”), effective January 1, 2008. In accordance with FAS 157, fair value is defined as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. FAS 157 established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value including such a pricing model and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.


	●	Level 1 – quoted prices in active markets for identical investments
	●	Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
	●	Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The following is a summary of the inputs used as of March 31, 2009 in valuing the Fund’s investments carried at value:


Valuation Inputs	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	79,929,600		—
Level 2 - Other Significant Observable Inputs		2,699,988		—
Level 3 - Significant Unobservable Inputs		—		—
Total	$	82,629,588		—

*Other financial instruments include futures, forwards and swap contracts.

For the period ended 3/31/09, there were no Level 3 investments.

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:	June 1, 2009

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:	June 1, 2009