Eagle Capital Growth Fund is a small closed-end fund trading on the NYSE Amex under the symbol GRF. The fund has slightly more than $25,000,000 in assets and invests primarily in conservative large capitalization growth stocks. As of June 30, 2011, its 10 largest holdings were as follows:
Automatic Data Processing (ADP) - 7.5 %
Abbott Laboratories (ABT) - 6.6
Guggenheim Enhanced Equity - 6.0
Stryker (SYK) - 5.4
Johnson & Johnson (JNJ) - 5.1
Sigma-Aldrich (SIAL) - 4.9
Procter & Gamble (POG) - 4.8 in excess of 255
Berkshire Hathaway (BRK.A) - 4.5
Colgate-Palmolive (CL) - 4.4
Paychex (PAYX) - 4.4
The fund has recently made an initial small investment in Diamond Hill Financial trends Fund (DHFT), a long/short fund investing primarily in banks. I have written about DHFT on Seeking Alpha and it is a wonderful investment.
GRF has annual expenses of approximately 1.5% of assets and its current turnover ratio is 25%. It has been selling at substantial discounts from net asset value approaching in excess of 20%, but because of its small size and low trading volume, this discount can fluctuate widely.
Management believes in committing to companies they deem to be excellent or superior. They feel only those companies are worthy of investment support in a competitive marketplace. Many of these companies are not particularly dynamic but they do have a history of continued growth and a respectable financial history. This is a conservative philosophy which does work over time. Although not always correct - it is something I can live with.
The investment management encourages dialogue with its shareholders but will not discuss any security bought or sold, nor any security they are thinking of buying.
This is a great fund, well worth holding. But you must be patient and catch it when the discount from net assets is 15 - 20%.