fxbynqsept2013.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number:  811-09261

FOXBY CORP.
(Exact name of registrant as specified in charter)

11 Hanover Square, 12th Floor
New York, NY
10005
(Address of principal executive offices)
(Zip Code)


John F. Ramírez, Esq.
Foxby Corp.
11 Hanover Square
New York, NY 10005
(Name and address of agent for service)

Registrant's telephone number, including area code: 1-212-785-0900
Date of fiscal year end: 12/31

Date of reporting period: 9/30/13
 
 
Item 1. Schedule of Investments
 
FOXBY CORP.
SCHEDULE OF PORTFOLIO INVESTMENTS
September 30, 2013
(Unaudited)

Shares
     
Cost
   
Value
 
   
COMMON STOCKS (88.66%)
           
   
Fire, Marine & Casualty Insurance (6.37%)
           
  3,500  
Berkshire Hathaway, Inc. - Class B (a)
  $ 296,368     $ 397,285  
                       
     
Information Retrieval Services (7.03%)
               
  500  
Google Inc. (a)
    231,910       437,955  
                       
     
Investment Advice (7.30%)
               
  9,000  
Franklin Resources, Inc.
    303,381       454,950  
                       
     
National Commercial Banks (3.98%)
               
  6,000  
Wells Fargo & Company
    163,265       247,920  
                       
     
Operative Builders (2.60%)
               
  5,000  
Toll Brothers, Inc. (a)
    116,697       162,150  
                       
     
Petroleum Refining (5.21%)
               
  900  
Chevron Corp.
    90,629       109,350  
  2,500  
Exxon Mobil Corp.
    171,549       215,100  
            262,178       324,450  
                       
     
Pharmaceutical Preparations (3.33%)
               
  4,000  
AstraZeneca PLC
    188,030       207,720  
                       
     
Retail-Catalog & Mail Order Houses (7.53%)
               
  1,500  
Amazon.com, Inc. (a)
    127,830       468,960  
                       
     
Retail Consulting and Investment (0%)
               
  72,728  
Amerivon Holdings LLC (a) (b)
    0       0  
                       
     
Retail-Eating Places (4.63%)
               
  3,000  
McDonald's Corp.
    167,748       288,630  
                       
     
Retail-Lumber & Other Building Materials Dealers (8.52%)
         
  7,000  
The Home Depot, Inc.
    191,873       530,950  
                       
     
Retail-Variety Stores (4.51%)
               
  3,800  
Wal-Mart Stores, Inc.
    196,260       281,048  
                       
     
Services - Business Services (2.72%)
               
  2,300  
Accenture plc
    138,155       169,372  
                       
     
Services-Prepackaged Software (3.21%)
               
  6,000  
Microsoft Corp.
    141,020       199,860  
                       
     
Soap, Detergents, Cleaning Preparations, Perfumes, Cosmetics (10.40%)
 
  2,300  
Church & Dwight Co., Inc.
    132,957       138,115  
  2,100  
Ecolab Inc.
    135,298       207,396  
  4,000  
The Procter & Gamble Company
    234,390       302,360  
            502,645       647,871  
                       
     
Surgical & Medical Instruments & Apparatus (3.83%)
               
  2,000  
3M Company
    185,130       238,820  
                       
     
Trucking & Courier Services (4.40%)
               
  3,000  
United Parcel Service, Inc.
    221,388       274,110  
                       
     
Wholesale - Drugs, Proprietaries & Druggists' Sundries (3.09%)
         
  1,500  
McKesson Corp.
    137,397       192,450  
                       
     
Total common stocks
    3,571,275       5,524,501  
                       
     
PREFERRED STOCKS (1.58%)
               
     
Retail Consulting and Investment (1.58%)
               
  179,205  
Amerivon Holdings LLC (b)
    494,636       98,563  
                       
     
MONEY MARKET FUND (11.38%)
               
  709,225  
SSgA Money Market Fund, 7 day annualized yield 0.01%
    709,225       709,225  
                       
     
Total investments  (101.62%)
  $ 4,775,136       6,332,289  
                       
     
Liabilities in excess of other assets (-1.62%)
            (100,816 )
                       
     
Net assets (100.00%)
          $ 6,231,473  
                       
     
Net asset value per share
          $ 2.39  
                       
                       
(a) Non-income producing.
               
(b) Illiquid and/or restricted security that has been fair valued.
               
 
Notes to Schedule of Portfolio Investments (Unaudited)

Valuation of Investments
Portfolio securities are valued by various methods depending on the primary market or exchange on which they trade.  Most equity securities for which the primary markets is the United States are valued at the official closing price, last sale price or, if no sale has occurred, at the closing bid price.  Most equity securities for which the primary market is outside the United States are valued using the official closing price or the last sale price in the principal market in which they are traded.  If the last sale price on the local exchange is unavailable, the last evaluated quote or closing bid price normally is used. Certain of the securities in which the Fund may invest are priced though pricing services that may utilize a matrix pricing system which takes into consideration factors such as yields, prices, maturities, call features, and ratings on comparable securities. Bonds may be valued according to prices quoted by a bond dealer that offers pricing services. Debt obligations with remaining maturities of 60 days or less are valued at cost adjusted for amortization of premiums and accretion of discounts. Open end investment companies are valued at their net asset value. Foreign securities markets may be open on days when U.S. markets are closed. For this reason, the value of any foreign securities owned by the Fund could change on a day when stockholders cannot buy or sell shares of the Fund. Securities for which quotations are not readily available or reliable and other assets may be valued as determined in good faith by Midas Management Corporation, the Fund’s Investment Manager under the direction of or pursuant to procedures established by the Fund’s Board of Directors, called fair value pricing.  Due to the inherent uncertainty of valuation, fair value pricing values may differ from the values that would have been used had a readily available market for the securities existed.  These differences in valuation could be material.  A security’s valuation may differ depending on the method used for determining value.  The use of fair value pricing by the Fund may cause the net asset value of its shares to differ from the net asset value that would be calculated using market prices. A fair value price is an estimate and there is no assurance that such price will be at or close to the price at which a security is next quoted or next trades.


Value Measurements
Inputs to valuation methods are prioritized by a three level hierarchy as follows:

Level 1 – unadjusted quoted prices in active markets for identical assets or liabilities including securities actively traded on a securities exchange.
Level 2 – observable inputs other than quoted prices included in level 1 that are observable for the asset or liability which may include quoted prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default  rates, and similar data.
Level 3 - unobservable inputs for the asset or liability including the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for investments categorized in level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The inputs or methodology used for valuing investments are not an indication of the risk associated with investing in those securities.

The following is 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:

Equity Securities (common and preferred stock) - Most publicly traded equity securities are valued normally at the most recent official closing price, last sale price, evaluated quote, or closing bid price. To the extent these securities are actively traded and valuation adjustments are not applied, they may be categorized in level 1 of the fair value hierarchy. Preferred stock and other equities on inactive markets or valued by reference to similar instruments may be categorized in level 2.

Restricted and/or illiquid securities - Restricted and/or illiquid securities for which quotations are not readily available or reliable may be valued as determined in good faith by the Investment Manager under the direction of or pursuant to procedures established by the Fund’s Board of Directors. Restricted securities issued by publicly traded companies are generally valued at a discount to similar publicly traded securities. Restricted or illiquid securities issued by nonpublic entities may be valued by reference to comparable public entities or fundamental data relating to the issuer or both. Depending on the relative significance of valuation inputs, these instruments may be classified in either level 2 or level 3 of the fair value hierarchy.

The following is a summary of the inputs used as of September 30, 2013 in valuing the Fund’s assets. Refer to the Schedule of Portfolio Investments for detailed information on specific investments.

   
Level 1
   
Level 2
   
Level 3
   
Total
 
                         
 Assets
                       
 Investments, at value
                       
 Common stocks
                       
 Fire, Marine & Casualty Insurance
  $ 397,285     $ -     $ -     $ 397,285  
 Information Retrieval Services
    437,955       -       -       437,955  
 Investment Advice
    454,950       -       -       454,950  
 National Commercial Banks
    247,920       -       -       247,920  
 Operative Builders
    162,150       -       -       162,150  
 Petroleum Refining
    324,450       -       -       324,450  
 Pharmaceutical Preparations
    207,720       -       -       207,720  
 Retail - Catalog & Mail Order Houses
    468,960       -       -       468,960  
 Retail Consulting and Investment
    -       -       0       0  
 Retail - Eating Places
    288,630       -       -       288,630  
 Retail - Lumber & Other Building Materials Dealers
    530,950       -       -       530,950  
 Retail - Variety Stores
    281,048       -       -       281,048  
 Services - Business Services
    169,372       -       -       169,372  
 Services - Prepackaged Software
    199,860       -       -       199,860  
 Soap, Detergents, Cleaning Preparations, Perfumes, Cosmetics
    647,871       -       -       647,871  
 Surgical & Medical Instruments & Apparatus
    238,820       -       -       238,820  
 Trucking & Courier Services
    274,110       -       -       274,110  
 Wholesale - Drugs, Proprietaries & Druggists' Sundries
    192,450       -       -       192,450  
 Preferred stocks
                               
 Retail Consulting and Investment
    -       -       98,563       98,563  
 Money market fund
    709,225       -       -       709,225  
                                 
 Total investments, at value
  $ 6,233,726     $ -     $ 98,563     $ 6,332,289  
 
There were no securities transferred from level 1 on December 31, 2012 to level 2 on September 30, 2013. Transfers from level 1 to level 2, or from level 2 to level 1 are valued utilizing values at the beginning of the period.

The following is a reconciliation of level 3 investments for which significant unobservable inputs were used to determine fair value including securities valued at zero:
 
   
Common Stocks
   
Preferred Stocks
   
Total
 
                   
Balance at December 31, 2012
  $ 0     $ 81,528     $ 81,528  
                         
Payment in-kind dividends
    -       13,962       13,962  
Change in unrealized depreciation
    -       3,073       3,073  
                         
Balance at September 30, 2013
  $ 0     $ 98,563     $ 98,563  
                         
Net change in unrealized depreciation attributable
                       
to assest still held as level 3 at September 30, 2013
  $ -     $ 3,073     $ 3,073  
 
There were no transfers into or out of level 3 assets during the period.

The Investment Manager under the direction of the Fund’s Board of Directors considers various valuation approaches for valuing securities categorized within level 3 of the fair value hierarchy. The factors used in determining the value of the Fund’s private investments may include, but are not limited to: the discounts applied to the selection of comparable investments due to the private nature of the investment; the type of the security; the size of the holding; the initial cost of the security; the existence of any contractual restrictions on the security’s disposition; the price and extent of public trading in similar securities of the issuer or of comparable companies; quotations or evaluated prices from broker-dealers and/or pricing services; information obtained from the issuer or analysts; an analysis of the company’s or issuer’s financial statements; or an evaluation of the forces that influence the issuer and the market in which the security is purchased and sold. Significant changes in any of those inputs in isolation may result in a significantly lower or higher fair value measurement. The pricing of all fair value holdings is subsequently reported to the Fund’s Board of Directors.

The following table presents additional information about valuation methodologies and inputs used for investments that are measured at fair value and categorized as level 3 as of September 30, 2013:

   
Fair Value
           
   
September 30, 2013
 
Valuation Technique
Unobservable Input
 
Amount
 
                 
Common stocks
               
Retail - Consulting and Investment
  $ 0  
Value of book equity per share
Discount rate due to lack of marketability
    100 %
Preferred stocks
                   
Retail - Consulting and Investment
  $ 98,563  
Value of book equity per share
Discount rate due to lack of marketability
    80 %

Cost for Federal Income Tax Purposes
As of September 30, 2013, for federal income tax purposes the aggregate cost of securities was $4,775,136 and net unrealized appreciation was $1,557,153, comprised of gross unrealized appreciation of $1,953,226 and gross unrealized depreciation of $396,073.

Illiquid and Restricted Securities
The Fund owns securities which have a limited trading market and/or certain restrictions on trading and, therefore, may be illiquid and/or restricted. Such securities have been valued at fair value. Due to the inherent uncertainty of valuation, fair value pricing values may differ from the values that would have been used had a readily available market for the securities existed. These differences in valuation could be material. Illiquid and/or restricted securities owned as of September 30, 2013, were as follows:
 
 
Acquisition
           
 
Date
 
Cost
   
Value
 
               
Amerivon Holdings LLC preferred shares
9/20/07
  $ 494,636     $ 98,563  
Amerivon Holdings LLC common equity units
9/20/07
    0       0  
                   
Total     $ 494,636     $ 98,563  
                   
Percent of net assets
      8 %     2 %
 
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-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act")) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934.

(b)  
There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant's last 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 the registrant's principal executive officer and principal financial officer as required by Rule 30a-2(a) under the 1940 Act.

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.

Foxby Corp.

By : /s/ Thomas B. Winmill
Thomas B. Winmill, President

Date: November 14, 2013
 
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/ Thomas B. Winmill
Thomas B. Winmill, President
 
Date: November 14, 2013
 
By: /s/ Thomas O'Malley
Thomas O'Malley, Chief Financial Officer

Date: November 14, 2013
 
Exhibit Index

(a)
Certifications of the registrant's principal executive and principal financial officer as required by Rule 30a-2(a) under the 1940 Act. (EX-99.CERT)