FORM N-Q
Item 1. Schedule of Investments.
Stewart Capital Mid Cap Fund
Schedule of Investments
March 31, 2013
(Unaudited)
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Shares
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Value
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COMMON STOCKS 90.2%
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Banks 1.7%
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Northwest Bancshares, Inc.
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55,395
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$
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702,962
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Capital Goods 19.0%
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Babcock & Wilcox Co.
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25,588
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726,955
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Cummins, Inc.
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8,596
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995,503
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EMCOR Group, Inc.
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41,157
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1,744,645
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Itron, Inc.
*
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36,854
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1,710,026
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McDermott International, Inc.
*
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101,662
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1,117,265
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Triumph Group, Inc.
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21,722
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|
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1,705,177
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7,999,571
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Consumer Durables & Apparel 5.9%
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|
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Polaris Industries, Inc.
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14,781
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1,367,095
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Skechers U.S.A., Inc. - Cl. A
*
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52,935
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1,119,575
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2,486,670
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Consumer Services 3.3%
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Matthews International Corp. - Cl. A
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40,359
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1,408,125
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Diversified Financials 2.7%
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Federated Investors, Inc. - Cl. B
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48,551
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1,149,202
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Energy 3.3%
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Whiting Petroleum Corp.
*
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27,699
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1,408,217
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Food, Beverage & Tobacco 2.7%
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J.M. Smucker Co. (The)
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11,553
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1,145,595
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Health Care Equipment & Services 5.0%
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C.R. Bard, Inc.
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10,161
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1,024,026
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Varian Medical Systems, Inc.
*
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15,232
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1,096,704
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2,120,730
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Materials 10.0%
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CF Industries Holdings, Inc.
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7,116
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1,354,673
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FMC Corp.
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22,223
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1,267,378
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Southern Copper Corp.
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42,264
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1,587,858
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4,209,909
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Media 2.7%
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Meredith Corp.
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30,072
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1,150,555
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Pharmaceuticals, Biotechnology & Life Sciences 2.7%
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Perrigo Co.
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9,612
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1,141,233
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Retailing 3.5%
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GameStop Corp. - Cl. A
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52,507
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1,468,621
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Software & Services 2.5%
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Micros Systems, Inc.
*
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23,090
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1,050,826
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Technology Hardware & Equipment 10.0%
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Flextronics International Ltd.
*
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197,042
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1,332,004
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Tech Data Corp.
*
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25,396
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1,158,312
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Western Digital Corp.
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34,083
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1,713,693
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4,204,009
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Telecommunication Services 6.5%
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j2 Global, Inc.
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37,496
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1,470,218
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Skyworks Solutions, Inc.
*
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57,553
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1,267,893
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2,738,111
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Transportation 3.2%
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Kirby Corp.
*
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17,258
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$
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1,325,414
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Utilities 5.5%
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AGL Resources, Inc.
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25,677
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1,077,150
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Oneok, Inc.
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26,326
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1,254,961
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2,332,111
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Total Common Stocks
(Cost $27,571,601)
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38,041,861
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LIMITED PARTNERSHIP INTEREST 3.6%
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Materials 3.6%
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Terra Nitrogen Co., LP
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6,872
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1,511,840
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Total Limited Partnership Interest
(Cost $748,083)
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1,511,840
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PREFERRED STOCK 2.3%
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Materials 2.3%
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Thompson Creek Metals Co., Inc. (6.50%)
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58,401
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972,961
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Total Preferred Stocks
(Cost $1,033,358)
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972,961
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SHORT TERM INVESTMENT 4.9%
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Federated Prime Obligations Fund, 0.08%
**
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2,046,836
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2,046,836
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Total Short Term Investment
(Cost $2,046,836)
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2,046,836
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Total Investments 101.0%
(Cost $31,399,878)
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42,573,498
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Liabilities less Other Assets (1.0)%
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(409,232
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)
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Net Assets 100.0%
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$
|
42,164,266
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*
Non-income producing
**
Represents 7-day effective yield as of March 31, 2013.
See Notes to Schedule of Investments
Notes to Schedule of Investments
March 31, 2013 (Unaudited)
Organization
Stewart Capital Mutual Funds (the “Trust”) was organized on September 22, 2006 as a Delaware business trust and registered under the Investment Company Act of 1940 (the “1940 Act”), as amended, as a diversified open-end investment management company. The Trust currently consists of one investment portfolio: Stewart Capital Mid Cap Fund (the “Fund”). Stewart Capital Advisors, LLC (the “Adviser”) is the Fund’s investment adviser. The Fund commenced investment operations at the close of business December 29, 2006. Prior to December 29, 2006, the only activity was the seed capital investment of $100,000 by the Adviser to the Fund.
Investment Valuation
■
In determining the Net Asset Value (“NAV”) of the Fund’s shares, common stocks that are listed on national securities exchanges are valued at the last sale price on the securities exchange on which such securities are primarily traded or at last sale price on the national securities market. Securities that are traded on the Nasdaq National Market or the Nasdaq Smallcap Market (collectively, “Nasdaq-traded securities”) are valued at the Nasdaq Official Closing Price (“NOCP”). Exchange-traded securities for which there were no transactions and Nasdaq-traded securities for which there is no NOCP are valued at the average of the current bid and asked prices on such exchanges. Unlisted securities held by the Fund that are not included in the NASDAQ Stock Market are valued at the average of the quoted bid and asked prices in the OTC market. Short-term securities having a maturity of 60 days or less are valued at amortized cost, which approximates market value. Any securities for which there are no readily available market quotations will be valued at their fair value as determined in good faith by the Adviser pursuant to procedures established by and under the supervision of the Board of Trustees. The fair value of a security is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuing securities at fair value involves greater reliance on judgment than valuing securities that have readily available market quotations. There can be no assurance that the Fund could obtain the fair value assigned to a security if it was to sell the security at approximately the time at which the Fund determines its NAV per share.
Accounting policies generally accepted in the United States of America (“GAAP”) defines fair value, establishes a three-tier framework for measuring fair value based on a hierarchy of inputs, and expands disclosure about fair value measurements. It also provides guidance on determining when there has been a significant decrease in the volume and level of activity for an asset or liability, when a transaction is not orderly and how that information must be incorporated into a fair value measurement. The hierarchy distinguishes between market data obtained from independent sources (observable inputs) and the Fund’s own market assumptions (unobservable inputs). These inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:
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§
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Level 1 – quoted prices for active markets for identical securities. An active market for the security is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value.
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§
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Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc. and quoted prices for identical or similar assets in markets that are not active.) Inputs that are derived principally from or corroborated by observable market data. An adjustment to any observable input that is significant to the fair value may render the measurement a Level 3 measurement.
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§
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Level 3 – significant unobservable inputs, including the Fund’s own assumptions in determining the fair value of investments.
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A description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value on a recurring basis follows:
Common stocks, limited partnerships, preferred stocks and short-term investments
■
Securities traded on a national exchange (or reported on the NASDAQ national market) are stated at the last reported sales price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy. Stocks traded on inactive markets or valued by reference to similar instruments are categorized in Level 2. Short-term investments may be valued using amortized cost which approximates fair value. To the extent the inputs are observable and timely, the values would be categorized in Level 2 of the fair value hierarchy.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the Fund’s investments as of March 31, 2013:
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Investment in Securities
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Level 2
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Level 3
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Level 1
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Other Significant
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Significant
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Quoted Prices
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Observable Inputs
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Unobservable Inputs
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Total
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Common Stocks*
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$
|
38,041,861
|
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$
|
-
|
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$
|
-
|
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$
|
38,041,861
|
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Limited Partnership Interest*
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1,511,840
|
|
|
|
-
|
|
|
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-
|
|
|
|
1,511,840
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Preferred Stock*
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|
972,961
|
|
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|
-
|
|
|
|
-
|
|
|
|
972,961
|
|
|
Short Term Investment
|
|
|
2,046,836
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,046,836
|
|
|
Total
|
|
$
|
42,573,498
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
42,573,498
|
|
|
|
*
|
All sub-categories within the security type represent their respective evaluation status. For a detailed breakout by industry, please refer to the Schedule of Investments.
|
The Fund adopted the Financial Accounting Standards Board (“FASB”) amendments to authoritative guidance which require the Fund to disclose details of transfers in and out of Level 1 and Level 2 measurements and Level 2 and Level 3 measurements and the reasons for the transfers. For the period ended
March 31, 2013
, there were no transfers in and out of Level 1, Level 2 and Level 3. The Fund did not hold any Level 2 or 3 securities during the period ended
March 31, 2013
. It is the Fund’s policy to recognize transfers into and out of all Levels at the end of the reporting period.
Federal Income Tax Information
At
March 31, 2013
, gross unrealized appreciation and depreciation of investments, based on cost for federal income tax purposes were as follows:
|
Cost of Investments
|
|
$
|
31,516,315
|
|
|
|
|
|
|
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|
Gross Unrealized Appreciation
|
|
$
|
11,676,278
|
|
|
Gross Unrealized Depreciation
|
|
|
(619,095
|
)
|
|
|
|
|
|
|
|
Net Unrealized Appreciation
|
|
$
|
11,057,183
|
|
The difference between cost amounts for financial statement and federal income tax purposes is due primarily to timing differences in recognizing certain gains and losses in security transactions.
Item 2. Controls and Procedures.
(a) The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-Q is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.
(b) There were no changes to the Registrant's internal control over financial reporting that occurred during the Registrant's most recently ended fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
Item 3. Exhibits.
(a) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940
.
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Exhibit No.
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Description of Exhibit
|
|
99.1
|
Certification of Principal Executive Officer
|
|
99.2
|
Certification of Principal Financial Officer
|
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.
Stewart Capital Mutual Funds
|
By:
|
/s/
Malcolm E. Polley
|
|
|
|
Malcolm E. Polley
|
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|
Principal Executive Officer
|
|
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|
|
|
|
Date:
|
May 22, 2013
|
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|
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.
|
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|
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By:
|
/s/
Malcolm E. Polley
|
|
|
|
Malcolm E. Polley
|
|
|
|
Principal Executive Officer
|
|
|
|
|
|
|
Date:
|
May 22, 2013
|
|
|
|
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|
|
By:
|
/s/
Timothy P. McKee
|
|
|
|
Timothy P. McKee
|
|
|
|
Principal Financial Officer
|
|
|
|
|
|
|
Date:
|
May 22, 2013
|
|
EXHIBIT INDEX
(a) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940. (EX-99.CERT)