OMB APPROVAL
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OMB Number: 3235-0578
Expires: April 30, 2013
Estimated average burden hours per response: 5.6
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Cornerstone Total Return Fund, Inc.
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(Exact name of registrant as specified in charter)
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350 Jericho Turnpike, Suite 206 Jericho, New York
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11753
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(Address of principal executive offices)
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(Zip code)
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Ultimus Fund Solutions, LLC 350 Jericho Turnpike, Suite 206 New York, NY 11753
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(Name and address of agent for service)
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CORNERSTONE TOTAL RETURN FUND, INC.
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SCHEDULE OF INVESTMENTS - SEPTEMBER 30, 2010 (UNAUDITED)
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Description
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No. of Shares
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Value
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EQUITY SECURITIES - 99.91%
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CLOSED-END FUNDS - 8.65%
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CORE - 4.22%
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Adams Express Company (The) (a)
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59,400 | $ | 591,624 | |||||
Royce Micro-Cap Trust, Inc.
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8,200 | 67,650 | ||||||
Royce Value Trust, Inc.
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8,000 | 97,120 | ||||||
756,394 | ||||||||
HIGH CURRENT YIELD (LEVERAGED) - 0.37%
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First Trust Strategic High Income Fund
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8,000 | 27,520 | ||||||
First Trust Strategic High Income Fund III
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9,000 | 39,150 | ||||||
66,670 | ||||||||
OPTION ARBITRAGE/OPTIONS STRATEGIES - 1.06%
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NFJ Dividend, Interest & Premium Strategy Fund
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12,000 | 189,120 | ||||||
REAL ESTATE - 0.94%
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Cohen & Steers Quality Income Realty Fund, Inc.
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13,000 | 102,180 | ||||||
Cohen & Steers REIT & Preferred Income Fund, Inc.
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5,000 | 65,550 | ||||||
167,730 | ||||||||
SECTOR EQUITY - 1.67%
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Cohen & Steers Infrastructure Fund, Inc.
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3,000 | 47,760 | ||||||
H&Q Life Sciences Investors
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9,000 | 86,310 | ||||||
John Hancock Bank and Thrift Opportunity Fund
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6,453 | 95,569 | ||||||
Petroleum & Resources Corporation (a)
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3,000 | 69,390 | ||||||
299,029 | ||||||||
U.S. MORTGAGE - 0.39%
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BlackRock Income Trust, Inc.
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9,896 | 69,074 | ||||||
TOTAL CLOSED-END FUNDS
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1,548,017 | |||||||
CONSUMER DISCRETIONARY - 9.65%
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Bed Bath & Beyond, Inc. *
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2,500 | 108,525 | ||||||
Comcast Corporation - Class A
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2,012 | 36,377 | ||||||
Comcast Corporation - Special Class A
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4,250 | 72,293 | ||||||
DIRECTV Group, Inc. (The) - Class A *
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4,000 | 166,519 | ||||||
Ford Motor Company *
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5,000 | 61,200 | ||||||
Gap, Inc. (The)
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2,500 | 46,600 | ||||||
Home Depot, Inc. (The)
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5,000 | 158,400 | ||||||
Mattel, Inc.
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1,500 | 35,190 |
CORNERSTONE TOTAL RETURN FUND, INC.
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SCHEDULE OF INVESTMENTS - SEPTEMBER 30, 2010 (UNAUDITED) (Continued)
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CONSUMER DISCRETIONARY (Continued)
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McDonald's Corporation
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2,000 | $ | 149,020 | |||||
News Corporation - Class B
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2,500 | 37,650 | ||||||
NIKE, Inc. - Class B
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2,500 | 200,350 | ||||||
Starbucks Corporation
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2,500 | 63,950 | ||||||
Target Corporation
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1,500 | 80,160 | ||||||
Time Warner, Inc.
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2,666 | 81,713 | ||||||
TJX Companies, Inc. (The)
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2,500 | 111,575 | ||||||
Viacom, Inc. - Class B
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1,000 | 36,190 | ||||||
Walt Disney Company (The)
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5,000 | 165,550 | ||||||
Yum! Brands, Inc.
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2,500 | 115,150 | ||||||
1,726,412 | ||||||||
CONSUMER STAPLES - 11.09%
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Altria Group, Inc.
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5,000 | 120,100 | ||||||
Coca-Cola Company (The)
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5,000 | 292,600 | ||||||
Coca-Cola Enterprises
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2,500 | 77,500 | ||||||
Colgate-Palmolive Company
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1,000 | 76,860 | ||||||
ConAgra Foods, Inc.
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2,500 | 54,850 | ||||||
General Mills, Inc.
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3,000 | 109,620 | ||||||
H.J. Heinz Company
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2,700 | 127,899 | ||||||
PepsiCo, Inc.
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2,000 | 132,880 | ||||||
Philip Morris International, Inc.
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3,500 | 196,070 | ||||||
Procter & Gamble Company (The)
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6,472 | 388,126 | ||||||
Sara Lee Corporation
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2,500 | 33,575 | ||||||
Wal-Mart Stores, Inc.
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7,000 | 374,640 | ||||||
1,984,720 | ||||||||
ENERGY - 9.76%
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Chevron Corporation
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3,500 | 283,675 | ||||||
Conocophillips
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2,500 | 143,575 | ||||||
El Paso Corporation
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5,000 | 61,900 | ||||||
EOG Resources, Inc.
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1,000 | 92,970 | ||||||
Exxon Mobil Corporation
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8,000 | 494,320 | ||||||
Halliburton Company
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2,500 | 82,675 | ||||||
Occidental Petroleum Corporation
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4,000 | 313,200 | ||||||
Schlumberger Ltd.
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3,000 | 184,830 | ||||||
Southwestern Energy Company *
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1,500 | 50,160 | ||||||
Williams Companies, Inc.
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2,000 | 38,220 | ||||||
1,745,525 | ||||||||
FINANCIALS - 12.75%
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AFLAC, Inc.
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1,500 | 77,565 | ||||||
American Express Company
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2,000 | 84,060 | ||||||
Bank of America Corporation
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16,521 | 216,590 | ||||||
BB&T Corporation
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2,000 | 48,160 | ||||||
Capital One Financial Corporation
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2,500 | 98,875 |
CORNERSTONE TOTAL RETURN FUND, INC.
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SCHEDULE OF INVESTMENTS - SEPTEMBER 30, 2010 (UNAUDITED) (Continued)
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FINANCIALS (Continued)
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Chubb Corporation (The)
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1,000 | $ | 56,990 | |||||
Citigroup, Inc. *
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24,000 | 93,600 | ||||||
Discover Financial Services
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1,000 | 16,680 | ||||||
Franklin Resources, Inc.
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1,000 | 106,900 | ||||||
Goldman Sachs Group, Inc. (The)
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1,500 | 216,870 | ||||||
Hudson City Bancorp, Inc.
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2,500 | 30,650 | ||||||
JPMorgan Chase & Company
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12,200 | 464,455 | ||||||
KeyCorp
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2,500 | 19,900 | ||||||
M&T Bank Corporation
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1,000 | 81,810 | ||||||
Marsh & McLennan Companies, Inc.
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4,000 | 96,480 | ||||||
MetLife, Inc.
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1,500 | 57,675 | ||||||
Morgan Stanley
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2,000 | 49,360 | ||||||
PNC Financial Services Group, Inc.
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1,000 | 51,910 | ||||||
Prudential Financial, Inc.
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1,500 | 81,270 | ||||||
SunTrust Banks, Inc.
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1,500 | 38,745 | ||||||
Travelers Companies, Inc. (The)
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3,092 | 161,093 | ||||||
U.S. Bancorp
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3,500 | 75,670 | ||||||
Unum Group
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2,500 | 55,375 | ||||||
2,280,683 | ||||||||
HEALTH CARE - 10.90%
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Abbott Laboratories
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3,000 | 156,720 | ||||||
Allergan, Inc.
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1,000 | 66,530 | ||||||
Amgen, Inc. *
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3,000 | 165,330 | ||||||
Bristol-Myers Squibb Company
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4,000 | 108,440 | ||||||
Celgene Corporation *
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1,000 | 57,610 | ||||||
Cigna Corporation
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3,000 | 107,340 | ||||||
Eli Lilly & Company
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2,500 | 91,325 | ||||||
Express Scripts, Inc. *
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2,400 | 116,880 | ||||||
Gilead Sciences, Inc. *
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2,000 | 71,220 | ||||||
Johnson & Johnson
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5,500 | 340,780 | ||||||
McKesson Corporation
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2,500 | 154,450 | ||||||
Medco Health Solutions, Inc. *
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1,000 | 52,060 | ||||||
Medtronic, Inc.
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4,500 | 151,110 | ||||||
Merck & Company, Inc.
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2,500 | 92,025 | ||||||
Pfizer, Inc.
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6,462 | 110,953 | ||||||
Stryker Corporation
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1,000 | 50,050 | ||||||
WellPoint, Inc. *
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1,000 | 56,640 | ||||||
1,949,463 | ||||||||
INDUSTRIALS - 9.76%
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3M Company
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1,500 | 130,065 | ||||||
Danaher Corporation
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2,000 | 81,220 | ||||||
Deere & Company
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1,500 | 104,670 | ||||||
Emerson Electric Company
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2,500 | 131,650 |
CORNERSTONE TOTAL RETURN FUND, INC.
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SCHEDULE OF INVESTMENTS - SEPTEMBER 30, 2010 (UNAUDITED) (Continued)
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INDUSTRIALS (Continued)
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FedEx Corporation
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1,500 | $ | 128,250 | |||||
General Dynamics Corporation
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1,000 | 62,810 | ||||||
General Electric Company
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24,000 | 390,000 | ||||||
Lockheed Martin Corporation
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2,500 | 178,200 | ||||||
Precision Castparts Corporation
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1,000 | 127,350 | ||||||
Republic Services, Inc.
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1,125 | 34,301 | ||||||
Union Pacific Corporation
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2,500 | 204,500 | ||||||
United Parcel Service, Inc. - Class B
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1,000 | 66,690 | ||||||
United Technologies Corporation
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1,500 | 106,845 | ||||||
1,746,551 | ||||||||
INFORMATION TECHNOLOGY - 18.17%
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Agilent Technologies, Inc. *
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2,500 | 83,425 | ||||||
AOL, Inc. *
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242 | 5,990 | ||||||
Apple, Inc. *
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2,000 | 567,500 | ||||||
Cisco Systems, Inc. *
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10,000 | 219,000 | ||||||
Cognizant Technology Solutions Corporation - CLASS A *
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1,500 | 96,705 | ||||||
Corning, Inc.
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3,000 | 54,840 | ||||||
eBay, Inc. *
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2,500 | 61,000 | ||||||
EMC Corporation *
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3,000 | 60,930 | ||||||
Google, Inc. - Class A *
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1,000 | 525,790 | ||||||
Hewlett-Packard Company
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5,000 | 210,350 | ||||||
Intel Corporation
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11,000 | 211,530 | ||||||
International Business Machines Corporation
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2,200 | 295,108 | ||||||
Intuit, Inc. *
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2,500 | 109,525 | ||||||
Micron Technology, Inc. *
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2,000 | 14,420 | ||||||
Microsoft Corporation
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14,000 | 342,860 | ||||||
Oracle Corporation
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12,600 | 338,310 | ||||||
Texas Instruments, Inc.
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2,000 | 54,280 | ||||||
3,251,563 | ||||||||
MATERIALS - 3.43%
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Air Products & Chemicals, Inc.
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1,500 | 124,230 | ||||||
E.I. Du Pont de Nemours & Company
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4,800 | 214,176 | ||||||
Freeport-McMoRan Copper & Gold, Inc.
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2,500 | 213,475 | ||||||
Newmont Mining Corporation
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1,000 | 62,810 | ||||||
614,691 | ||||||||
REAL ESTATE INVESTMENT TRUST - 0.01%
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Simon Property Group, Inc.
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16 | 1,484 | ||||||
TELECOMMUNICATION SERVICES - 2.65%
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AT&T, Inc.
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11,089 | 317,145 | ||||||
Centurytel, Inc.
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4,000 | 157,840 | ||||||
474,985 |
CORNERSTONE TOTAL RETURN FUND, INC.
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SCHEDULE OF INVESTMENTS - SEPTEMBER 30, 2010 (UNAUDITED) (Continued)
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UTILITIES - 3.09%
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Consolidated Edison, Inc.
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1,000 | $ | 48,220 | |||||
Dominion Resources, Inc.
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2,000 | 87,320 | ||||||
Duke Energy Corporation
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6,600 | 116,886 | ||||||
NiSource, Inc.
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2,500 | 43,500 | ||||||
Southern Company (The)
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3,500 | 130,340 | ||||||
Xcel Energy, Inc.
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5,500 | 126,335 | ||||||
552,601 | ||||||||
TOTAL EQUITY SECURITIES (cost - $17,852,099)
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17,876,695 | |||||||
SHORT-TERM INVESTMENT - 0.45%
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MONEY MARKET FUND - 0.45%
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JPMorgan U.S. Government Money Market Fund (cost - $79,989)
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79,989 | 79,989 | ||||||
TOTAL INVESTMENTS - 100.36% (cost - $17,932,088)
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17,956,684 | |||||||
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.36)%
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(64,293 | ) | ||||||
NET ASSETS - 100.00%
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$ | 17,892,391 |
·
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Level 1 – quoted unadjusted prices for identical instruments in active markets to which the Fund has access at the date of measurement.
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·
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Level 2 – quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 inputs are those in markets for which there are few transactions, the prices are not current, little public information exists or instances where prices vary substantially over time or among brokered market makers.
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·
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Level 3 – model derived valuations in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are those inputs that reflect the Fund’s own assumptions that market participants would use to price the asset or liability based on the best available information.
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Valuation Inputs
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INVESTMENTS
IN
SECURITIES
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OTHER
FINANCIAL
INSTRUMENTS*
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Level 1 - Quoted Prices
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Equity Investments
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$ | 17,876,695 | $ | - | ||||
Short-Term Investments
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79,989 | - | ||||||
Level 2 - Other Significant Observable Inputs
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- | - | ||||||
Level 3 – Significant Unobservable Inputs
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- | - | ||||||
Total
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$ | 17,956,684 | $ | - |
By (Signature and Title)*
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/s/ Ralph W. Bradshaw
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Ralph W. Bradshaw, President and Chairman
(Principal Executive Officer)
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Date
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November 12, 2010
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By (Signature and Title)*
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/s/ Ralph W. Bradshaw
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Ralph W. Bradshaw, President and Chairman
(Principal Executive Officer)
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Date
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November 12, 2010
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By (Signature and Title)*
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/s/ Frank J. Maresca
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Frank J. Maresca, Treasurer
(Principal Financial Officer)
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Date
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November 12, 2010
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