fxbynq100930.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: 1-212-344-6310

Date of fiscal year end: 12/31

Date of reporting period: 9/30/10

Item 1. Schedule of Investments
FOXBY CORP.
SCHEDULE OF PORTFOLIO INVESTMENTS
September 30, 2010
(Unaudited)
Shares
      
Cost
    
Value
  
   
COMMON STOCKS (90.81%)
            
   
Diamond Exploration and Project Development (0%)
            
  185,937  
Etruscan Diamonds Ltd. (a) (b)
   $ 320,129     $ 0  
                       
     
Electronic Computers (14.41%)
                
  2,100  
Apple Inc. (a)
     430,978       595,875  
                       
     
Fire, Marine & Casualty Insurance (7.00%)
                
  3,500  
Berkshire Hathaway, Inc. - Class B (a) (c) (d)
     296,368       289,380  
                       
     
Gold Exploration and Project Development (0%)
                
  17,166  
Q2 Gold Resources, Inc. (c)
     -       -  
                       
     
Information Retrieval Services (6.36%)
                
  500  
Google, Inc. - Class A (a)
     231,910       262,895  
                       
     
Insurance Agents, Brokers and Services (0%)
                
  75,000  
Safety Intelligence Systems Corp. (a) (b)
     225,000       0  
                       
     
Investment Advice (7.75%)
                
  3,000  
Franklin Resources Inc. (c)
     303,381       320,700  
                       
     
National Commercial Banks (3.65%)
                
  6,000  
Wells Fargo & Company
     163,265       150,780  
                       
     
Operative Builders (2.30%)
                
  5,000  
Toll Brothers, Inc. (a) (c)
     116,698       95,100  
                       
     
Petroleum Refining (3.74%)
                
  2,500  
Exxon Mobil Corp. (c)
     171,549       154,475  
                       
     
Pharmaceutical Preparations (4.15%)
                
  10,000  
Pfizer Inc.
     159,275       171,700  
                       
     
Retail-Catalog & Mail Order Houses (7.60%)
                
  2,000  
Amazon.com, Inc. (a)
     170,440       314,120  
                       
     
Retail Consulting and Investment (0%)
                
  72,728  
Amerivon Holdings LLC (a) (b)
     0       0  
                       
     
Retail-Eating Places (5.40%)
                
  3,000  
McDonald's Corp.
     167,748       223,530  
                       
     
Retail-Lumber & Other Building Materials Dealers (5.36%)
                
  7,000  
The Home Depot, Inc. (c)
     191,873       221,760  
                       
     
Retail-Variety Stores (4.92%)
                
  3,800  
Wal-Mart Stores, Inc.
     196,260       203,376  
                       
     
Security Brokers, Dealers & Flotation Companies (5.88%)
                
  1,000  
The Goldman Sachs Group, Inc.
     184,940       144,580  
  4,000  
Morgan Stanely
     120,560       98,720  
            305,500       243,300  
                       
     
Services-Prepackaged Software (3.55%)
                
  6,000  
Microsoft Corp. (c)
     141,020       146,940  
                       
     
Smelting (0%)
                
  82,111  
China Silicon Corp. (a) (b)
     56,882       0  
                       
     
Soap, Detergents, Cleaning Preparations, Perfumes, Cosmetics (5.80%)
          
  4,000  
The Procter & Gamble Company
     234,390       239,880  
                       
     
Telephone & Telegraph Apparatus (2.94%)
                
  2,500  
Research In Motion Limited (a)
     182,820       121,725  
                       
                       
     
Total common stocks
     4,065,486       3,755,536  
                       
     
PREFERRED STOCKS (2.67%)
                
     
Retail Consulting and Investment (2.67%)
                
  160,787  
Amerivon Holdings LLC (a) (b)
     442,164       110,546  
                       
     
Smelting (0%)
                
  945  
China Silicon Corp. (a) (b)
     224,910       -  
            667,074       110,546  
                       
Units
                    
     
WARRANTS  (0%) (a)
                
  219,000  
Nord Resources Corp., expiring 6/05/12 (b)
     0       0  
                       
     
Total warrants
     0       0  
                       
Shares
                    
     
MONEY MARKET FUND (6.35%)
                
  262,638  
SSgA Money Market Fund, 0.01% (e)
     262,638       262,638  
                       
     
SECURITIES HELD AS COLLATERAL ON LOANED SECURITIES (24.87%)
          
  1,028,464  
State Street Navigator Securities Lending Prime Portfolio
     1,028,464       1,028,464  
                       
     
Total investments  (124.70%)
   $ 6,023,662       5,157,184  
                       
     
Liabilities in excess of other assets (-24.70%)
             (1,021,455 )
                       
     
Net assets (100.00%)
           $ 4,135,729  
                       
                       
(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 September 30, 2010, the value of loaned securities and related collateral outstanding was $996,091 and $1,028,464, respectively.
  
           
(d) Fully or partially pledged as collateral on bank credit facility. As of September 30, 2010, the value of investments pledged as collateral was $4,713.
                 
(e) Rate represents the 7 day annualized yield at September 30, 2010.
                
                       
ADR means "American Depositary Receipt."
                
 
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 market is the United State are valued at the official closing price, last sale price or, if no sales 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.  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. An 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 investments.

The following is a summary of the inputs used as of September 30, 2010 in valuing the Fund’s assets and liabilities 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
                        
 Diamond Exploration and Project Development
   $ -     $ -     $ 0     $ -  
 Electronic Computers
     595,875       -       -       595,875  
 Fire, Marine & Casualty Insurance
     289,380       -       -       289,380  
 Gold Exploration and Project Development
     -       -       0       -  
 Information Retrieval Services
     262,895       -       -       262,895  
 Insurance Agents, Brokers and Services
     -       -       0       0  
 Investment Advice
     320,700       -       -       320,700  
 National Commercial Banks
     150,780       -       -       150,780  
 Operative Builders
     95,100       -       -       95,100  
 Petroleum Refining
     154,475       -       -       154,475  
 Pharmaceutical Preparations
     171,700       -       -       171,700  
 Retail - Catalog & Mail Order Houses
     314,120       -       -       314,120  
 Retail Consulting and Investment
     -       -       0       0  
 Retail - Eating Places
     223,530       -       -       223,530  
 Retail - Lumber & Other Building Materials Dealers
     221,760       -       -       221,760  
 Retail - Variety Stores
     203,376       -       -       203,376  
 Security Brokers, Dealers & Flotation Companies
     243,300       -       -       243,300  
 Services-Prepackaged Software
     146,940       -       -       146,940  
 Smelting
     -       -       0       0  
 Soap, Detergents, Cleaning Preparations, Perfumes, Cosmetics
     239,880       -       -       239,880  
 Telephone & Telegraph Apparatus
     121,725       -       -       121,725  
 Preferred stocks
                                
 Retail Consulting and Investment
     -       -       110,546       110,546  
 Smelting
     -       -       0       0  
 Warrants
     -       -       0       0  
 Money market fund
     262,638       -       -       262,638  
 Securities held as Collateral on Loaned Securities
                                
 Money market fund
     1,028,464       -       -       1,028,464  
                                 
 Total
   $ 5,046,638     $ -     $ 110,546     $ 5,157,184  

There were no transfers into or from Level 1 and Level 2 by the Fund during the nine months ended September 30, 2010.
 
   
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
     25,845       -       8,692       -       34,537  
Change in unrealized depreciation
     (25,845 )     (56,228 )     (6,514 )     -       (88,587 )
Conversion *
     0       110,546       (110,546 )     -       -  
Transfers in or out of Level 3
     -       -       -       -       -  
Balance, September 30, 2010
   $ 0     $ 110,546     $ -     $ 0     $ 110,546  

* 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 Series A convertible preferred units and 72,728 common equity units, respectively.

Cost for Federal Income Tax Purposes
At September 30, 2010, for federal income tax purposes the cost of investments was $6,023,662 and net unrealized depreciation aggregated $866,478, comprised of gross unrealized appreciation of $473,01 and gross unrealized depreciation of $1,339,979.

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 the securities existed. These differences in valuation could be material. Illiquid and/or restricted securities owned at September 30, 2010, were as follows:
 
 
Acquisition
            
 
Date
  
Cost
    
Value
  
China Silicon Corp. common shares
1/01/08-9/08/10
   $ 56,882     $ 0  
Amrivon Holdings LLC preferred units
9/20/07
     442,164       110,546  
Amrivon Holdings LLC common equity units
9/20/07
     0       0  
China Silicon Corp. preferred shares
7/18/07
     224,910       0  
Q2 Gold Resources, Inc.
7/06/07
     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.
9/05/02
     225,000       0  
      $ 1,269,085     $ 110,546  
                   
Percent of net assets
       30.7 %     2.7 %
 
Securities Lending
The Fund may lend their 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 greater than 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. The value of loaned securities and related collateral outstanding at September 30, 2010 was $996,091 and $1,028,464, 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: November 29, 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: November 29, 2010

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

Date: November 29, 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)