fxbynq100331.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
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: 1-212-344-6310

Date of fiscal year end: 12/31

Date of reporting period: 3/31/10

Item 1. Schedule of Investments
 
 
FOXBY CORP.
SCHEDULE OF PORTFOLIO INVESTMENTS
March 31, 2010
(Unaudited)

                 
Shares
      
Cost
    
Value
  
   
COMMON STOCKS (92.67%)
            
   
Copper Exploration and Project Development (3.32%)
            
  438,000  
Nord Resources Corp. (a)
   $ 328,500     $ 144,540  
                       
     
Diamond Exploration and Project Development (0%)
                
  185,937  
Etruscan Diamonds Ltd.  (a) (b)
     320,129       0  
                       
     
Electronic Computers (8.10%)
                
  1,500  
Apple Inc. (a)
     283,505       352,395  
                       
     
Fire, Marine & Casualty Insurance (6.53%)
                
  3,500  
Berkshire Hathaway, Inc. - Class B (a) (c) (d)
     296,368       284,445  
                       
     
Gold Exploration and Project Development (.95%)
                
  99,000  
Etruscan Resources Inc. (a)
     158,640       41,225  
  17,166  
Q2 Gold Resources, Inc. (a) (b) (c)
     0       0  
            158,640       41,225  
     
Information Retrieval Services (6.51%)
                
  500  
Google, Inc. - Class A (a) (c)
     231,910       283,505  
                       
     
Insurance Agents, Brokers and Services (0%)
                
  75,000  
Safety Intelligence Systems Corp. (a) (b)
     225,000       0  
                       
     
Investment Advice (7.64%)
                
  3,000  
Franklin Resources Inc.
     303,381       332,700  
                       
     
National Commercial Banks (4.29%)
                
  6,000  
Wells Fargo & Company (c)
     163,265       186,720  
                       
     
Operative Builders (2.39%)
                
  5,000  
Toll Brothers, Inc. (a) (c)
     116,698       104,000  
                       
     
Petroleum Refining (3.85%)
                
  2,500  
Exxon Mobil Corp. (c)
     171,549       167,450  
                       
     
Pharmaceutical Preparations (3.94%)
                
  10,000  
Pfizer Inc.
     159,275       171,500  
                       
     
Retail-Catalog & Mail Order Houses (6.23%)
                
  2,000  
Amazon.com, Inc. (a) (c)
     170,440       271,460  
                       
      Retail Consulting and Investment (0%)                
   72,728   Amerivon Holdings LLC common equity units (a)(b)      0        0  
                       
     
Retail-Eating Places (4.60%)
                
  3,000  
McDonald's Corp.
     167,748       200,160  
                       
     
Retail-Lumber & Other Building Materials Dealers (5.20%)
                
  7,000  
The Home Depot, Inc. (c)
     191,873       226,450  
                       
     
Retail-Variety Stores (4.85%)
                
  3,800  
Wal-Mart Stores, Inc.
     196,260       211,280  
                       
     
Security Brokers, Dealers & Flotation Companies (6.61%)
                
  1,000  
The Goldman Sachs Group, Inc.
     184,940       170,630  
  4,000  
Morgan Stanely
     120,560       117,160  
            305,500       287,790  
                       
     
Services-Prepackaged Software (4.03%)
                
  6,000  
Microsoft Corp.
     141,020       175,620  
                       
     
Smelting (0%)
                
  45,319  
China Silicon Corp. (a) (b)
     44,884       0  
                       
     
Soap, Detergents, Cleaning Preparations, Perfumes, Cosmetics (5.81%)
                
  4,000  
The Procter & Gamble Company
     234,390       253,080  
                       
     
Telephone & Telegraph Apparatus (4.25%)
                
  2,500  
Research In Motion Limited (a) (c)
     182,820       184,875  
                       
     
Timber, Other Resources (3.57%)
                
  371,337  
MagIndustries Corp. (a)
     596,156       155,547  
                       
     
Total common stocks
     4,989,311       4,034,742  
                       
     
PREFERRED STOCKS (3.83%)
                
      Retail Consulting and Investment (2.54%)                
   160,787   Amerivon Holdings LLC (a) (b)      442,164        110,541  
                       
     
Smelting (1.29%)
                
  945  
China Silicon Corp. (a) (b)
     224,910       56,228  
                       
      Total preferred stocks       667,074        166,769  
Units
                    
     
WARRANTS  (0%) (a)
                
  23,626  
China Silicon Corp., expiring 7/18/10 (b)
     0       0  
  219,000  
Nord Resources Corp., expiring 6/05/12 (b)
     0       0  
                       
     
Total warrants
     0       0  
                       
Shares
                    
     
MONEY MARKET FUND (4.28%)
                
  186,551  
SSgA Money Market Fund, 0.01% (e)
     186,551       186,551  
                       
     
SECURITIES HELD AS COLLATERAL ON LOANED SECURITIES (24.17%)
                
  1,052,603  
State Street Navigator Securities Lending Prime Portfolio
     1,052,603       1,052,603  
                       
     
Total investments  (124.95%)
   $ 6,895,539       5,440,665  
                       
     
Liabilities in excess of other assets (-24.95%)
             (1,086,307 )
                       
     
Net assets (100.00%)
           $ 4,354,358  
                       
                       
(a) Non-income producing.
  
(b) Illiquid and/or restricted security that has been fair valued.
  
(c) All or a portion of this security was on loan. As of March 31, 2010, the value of loaned securities and related collateral outstanding was $1,002,615 and $1,052,603, respectively.
  
(d) Fully or partially pledged as collateral on bank credit facility. As of March 31, 2010, the value of investments pledged as collateral was $4,632.
  
(e) Rate represents the 7 day annualized yield at March 31, 2010.
  
                       
ADR means "American Depositary Receipt."
                


Notes to Schedule of Portfolio Investments (Unaudited):

Valuation of Investments

Securities traded primarily on a U.S. national securities exchange (“USNSE”) are valued at the last reported sale price on the day the valuations are made. Securities traded primarily on the Nasdaq Stock Market (“Nasdaq”) are normally valued by the Funds at the Nasdaq Official Closing Price (“NOCP”) provided by Nasdaq each business day. The NOCP is the most recently reported price as of 4:00:02 p.m., ET, unless that price is outside the range of the “inside” bid and asked prices (i.e., the bid and asked prices that dealers quote to each other when trading for their own accounts); in that case, Nasdaq will adjust the price to equal the inside bid or asked price, whichever is closer. Because of delays in reporting trades, the NOCP may not be based on the price of the last trade to occur before the market closes. Securities that are not traded on a particular day, and securities traded in foreign and over-the-counter markets that are not also traded on a USNSE or Nasdaq, are valued at the mean between the last bid and asked prices. Debt obligations with remaining maturities of 60 days or less are valued at cost adjusted for amortization of premiums and accretion of discounts. Certain of the securities in which the Funds may invest are priced through 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. Open end investment companies are valued at their net asset value. Foreign securities markets may be open on days when the 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 market quotations are not readily available or reliable and other assets may be valued as determined in good faith by the Investment Manager under the direction of and pursuant to procedures established by the Fund’s Board of Directors. Due to the inherent uncertainty of valuation, these 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.

Fair Value Measurements

The Fund uses a three level hierarchy for fair value measurements based on the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. The Fund’s investment in its entirety is assigned a level based upon the inputs which are significant to the overall valuation. The hierarchy of inputs is summarized 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 fair value of investments).

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 summary of the inputs used as of March 31, 2010, in valuing the Fund’s assets carried at fair value. Refer to the Schedule of Portfolio Investments for detailed information on specific investments.
 
   
Level 1
    
Level 2
    
Level 3
    
Total
  
 Assets
                        
 Common stocks
                        
 Copper Exploration and Project Development
   $ 144,540     $ -     $ -     $ 144,540  
 Diamond Exploration and Project Development
     -       -       0       0  
 Electronic Computers
     352,395       -       -       352,395  
 Fire, Marine & Casualty Insurance
     284,445       -       -       284,445  
 Gold Exploration and Project Development
     41,226       -       0       41,226  
 Information Retrieval Services
     283,505       -       -       283,505  
 Insurance Agents, Brokers and Services
     -       -       0       0  
 Investment Advice
     332,700       -       -       332,700  
 National Commercial Banks
     186,720       -       -       186,720  
 Operative Builders
     104,000       -       -       104,000  
 Petroleum Refining
     167,450       -       -       167,450  
 Pharmaceutical Preparations
     171,500       -       -       171,500  
 Retail - Catalog & Mail Order Houses
     271,460       -       -       271,460  
 Retail Consulting and Investment
     -       -       0       0  
 Retail - Eating Places
     200,160       -       -       200,160  
 Retail - Lumber & Other Building Materials Dealers
     226,450       -       -       226,450  
 Retail - Variety Stores
     211,280       -       -       211,280  
 Security Brokers, Dealers & Flotation Companies
     287,790       -       -       287,790  
 Services-Prepackaged Software
     175,620       -       -       175,620  
 Smelting
     -       -       0       0  
 Soap, Detergents, Cleaning Preparations, Perfumes, Cosmetics
     253,080       -       -       253,080  
 Telephone & Telegraph Apparatus
     184,875       -       -       184,875  
 Timber and Other Resources
     155,547       -       -       155,547  
 Preferred stocks
                                
 Retail Consulting and Investment
     -       -       110,541       110,541  
 Smelting
     -       -       56,228       56,227  
 Warrants
     -       -       0       0  
 Money market fund
     186,551       -       -       186,551  
 Securities held as Collateral on Loaned Securities
                                
 Money market fund
     1,052,603       -       -       1,052,603  
                                 
 Total
   $ 5,273,897     $ -     $ 166,769     $ 5,440,665  

 
There were no transfers into or from Level 1 or Level 2 during the three months ended March 31, 2010.

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
 
   
Common Stocks
    
Preferred Stocks
    
Corporate Bonds and Notes
    
Warrants
    
Total
  
                               
Balance, December 31, 2009
   $ 0     $ 56,228     $ 108,368     $ 0     $ 164,596  
                                         
Cost of purchases
     5,155       -       4,357       -       9,512  
Change in unrealized depreciation
     (5,155 )     -       (2,184 )     -       (7,339 )
Conversion *
     0       110,541       (110,541 )     0       -  
Transfers in or out of Level 3
     -       -       -       -       -  
                                         
Balance, March 31, 2010
   $ 0     $ 166,769     $ -     $ 0     $ 166,769  

* At March 31, 2010, the Amerivon Holdings LLC 4% notes and the warrants associated with the notes were converted at no cost to 160,787 shares of Amerivon Holdings LLC preferred shares and 72,728 common equity units, respectively.
 
Cost for Federal Income Tax Purposes

At March 31, 2010, for federal income tax purposes the cost of investments was $6,895,539 and net unrealized depreciation aggregated $1,454,874, comprised of gross unrealized appreciation of $423,858 and gross unrealized depreciation of $1,878,732.

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, these values may differ from the values that would have been used had a readily available market for these securities existed. These differences in valuation could be material. At March 31, 2010, the Fund held the following illiquid and/or restricted securities:
 
 
Acquisition
            
 
Date
  
Cost
    
Value
  
               
China Silicon Corp. common shares
1/1/08 - 1/2/10
   $ 44,884     $ 0  
Amerivon Holdings LLC preferred shares
9/20/07
     442,164       110,541  
Amerivon Holdings LLC common equity units
9/20/07
     0       0  
China Silicon Corp. preferred shares
7/18/07
     224,910       56,228  
China Silicon Corp. warrants expiring 7/18/10
7/18/07
     0       0  
Q2 Gold Resources Corp.
7/6/07
     0       0  
Nord Resources Corp. warrants expiring 6/5/12
5/14/07
     0       0  
Etruscan Diamonds Ltd.
2/28/07
     320,129       0  
Safety Intelligence Systems Corp.
9/5/02
     225,000       0  
                   
Total
     $ 1,257,087     $ 166,769  
                   
Percent of net assets
       29 %     4 %

Securities Lending

The Fund may lend its securities to qualified financial institutions. The Fund receives compensation in the form of fees, or retains a portion of the interest on the investment in any cash received as collateral. The Fund receives as collateral cash deposits, U.S. Government securities, or bank letters of credit valued at not less that 102% of the value of the securities on loan. Cash deposits are invested in a registered money market fund. The value of the loaned securities is determined based upon the most recent closing prices and any additional required collateral is delivered to the Fund on the next business day. Any increase or decrease in the value of the securities loaned that might occur and any interest earned or dividends declared on those securities during the term of the loan would remain in the Fund. The Fund has the right under the lending agreement to recover the securities from the borrower on demand. As with other extensions of credit, the Fund bears the risk of delay on recovery or loss of rights in the collateral should the borrower of the securities default. As of March 31, 2010, the value of loaned securities and related collateral outstanding was $1,002,615 and $1,052,603, respectively.

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 1940 Act, 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: May 26, 2010

Pursuant to the requirements of the Securities Exchange Act of 1934 and the 1940 Act, 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: May 26, 2010

By: /s/ Thomas O'Malley
Thomas O'Malley, Chief Financial Officer

Date: May 26, 2010

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)