Unassociated Document

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-04656

Ellsworth Fund Ltd.
(Exact name of registrant as specified in charter)

65 Madison Avenue, Morristown, New Jersey 07960-7308
(Address of principal executive offices) (Zip code)

Thomas H. Dinsmore
Ellsworth Fund Ltd.
65 Madison Avenue
Morristown, New Jersey 07960-7308
(Name and address of agent for service)

Copy to:
Steven B. King, Esq.
Ballard Spahr LLP
1735 Market Street, 51st Floor
Philadelphia, PA 19103-7599

Registrant’s telephone number, including area code: 973-631-1177

Date of fiscal year end: September 30, 2013

Date of reporting period: December 31, 2012

ITEM 1. SCHEDULE OF INVESTMENTS.


Ellsworth Fund Ltd. – Schedule of Investments – unaudited
December 31, 2012

        Principal
Amount
     Value
(Note 1)
CONVERTIBLE BONDS AND NOTES – 59.8%
                                       
 
Airlines – 1.3%
                                       
Hawaiian Holdings, Inc., 5.00%, Due 3/15/16, (BB)
               $ 1,375,000          $ 1,527,969   
 
Biotechnology – 4.0%
                                       
Exelixis, Inc., 4.25%, Due 8/15/19, (BB)
                  500,000             489,062   
Gilead Sciences, Inc., 1.00%, Due 5/1/14, (A)
                  750,000             1,230,000   
Gilead Sciences, Inc., 1.625%, Due 5/1/16, (A)
                  1,000,000             1,688,130   
Isis Pharmaceuticals, Inc., 2.75%, Due 10/1/19, (BB) (1)
                  600,000             595,875   
Regeneron Pharmaceuticals, Inc., 1.875%, Due 10/1/16, (A)
                  250,000             524,062   
 
                                 4,527,129   
Capital Markets – 1.7%
                                       
Knight Capital Group, Inc., 3.50%, Due 3/15/15, (NR)
                  500,000             499,062   
Prospect Capital Corp., 5.75%, Due 3/15/18, (BBB) (1)
                  1,500,000             1,478,438   
 
                                 1,977,500   
Commercial Services & Supplies – 1.0%
                                       
Encore Capital Group, Inc., 3.00%, Due 11/27/17, (AA) (1)
                  1,000,000             1,108,125   
 
Communications Equipment – 1.6%
                                       
Finisar Corp., 5.00%, Due 10/15/29, (NR)
                  75,000             137,859   
Ixia, 3.00%, Due 12/15/15, (A)
                  500,000             583,125   
InterDigital, Inc., 2.50%, Due 3/15/16, (BBB)
                  1,000,000             1,068,750   
 
                                 1,789,734   
Computers & Peripherals – 2.7%
                                       
EMC Corp., 1.75%, Due 12/1/13, (A)
                  1,400,000             2,235,632   
NetApp Inc., 1.75%, Due 6/1/13, (BBB)
                  250,000             282,188   
SanDisk Corp., 1.50%, Due 8/15/17, (BB)
                  500,000             582,500   
 
                                 3,100,320   
Construction Materials – 1.0%
                                       
CEMEX S.A.B. de C.V., 4.875%, Due 3/15/15, (NR)
                  1,000,000             1,095,000   
 
Consumer Finance – 1.2%
                                       
DFC Global Corp., 3.25%, Due 4/15/17, (B) (1)
                  1,250,000             1,367,969   
 
Diversified Telecommunication Services – 0.6%
                                       
Alaska Communications Systems Inc., 6.25%, Due 5/1/18, (BB)
                  1,000,000             675,000   
 
Electrical Equipment – 1.0%
                                       
General Cable Corp., 4.50%, Due 11/15/29, (B) (2)
                  1,000,000             1,083,750   
 
Energy Equipment & Services – 0.8%
                                       
Bristow Group Inc., 3.00%, Due 6/15/38, (BB)
                  155,000             165,462   
Hornbeck Offshore Services, Inc., 1.50%, Due 9/1/19, (BB) (1)
                  750,000             757,500   
 
                                 922,962   
 

Ellsworth Fund Ltd. – Schedule of Investments – continued
December 31, 2012

        Principal
Amount
     Value
(Note 1)
CONVERTIBLE BONDS AND NOTES – continued
                                       
 
Food Products – 0.4%
                                       
Chiquita Brands International, 4.25%, Due 8/15/16, (B)
               $ 581,000          $ 508,375   
 
Health Care Equipment & Supplies – 2.0%
                                       
Chemed Corp., 1.875%, Due 5/15/14, (A)
                  890,000             931,719   
Insulet Corp., 3.75%, Due 6/15/16, (A)
                  750,000             817,969   
Volcano Corp., 1.75%, Due 12/1/17, (A)
                  500,000             506,250   
 
                                 2,255,938   
Health Care Providers & Services – 0.9%
                                       
Lifepoint Hospitals, Inc., 3.50%, Due 5/15/14, (B)
                  1,000,000             1,033,125   
 
Hotels, Restaurants & Leisure – 2.2%
                                       
International Game Technology, 3.25%, Due 5/1/14, (NR) (1)
                  500,000             524,062   
MGM Resorts International, 4.25%, Due 4/15/15, (B)
                  1,000,000             1,060,625   
Morgans Hotel Group Co., 2.375%, Due 10/15/14, (BB)
                  1,000,000             947,500   
 
                                 2,532,187   
Household Durables – 1.1%
                                       
Jarden Corp., 1.875%, Due 9/15/18, (B) (1)
                  1,250,000             1,271,094   
 
Insurance – 3.5%
                                       
AmTrust Financial Services, Inc., 5.50%, Due 12/15/21, (AAA)
                  1,250,000             1,549,219   
National Financial Partners Corp., 4.00%, Due 6/15/17, (AAA)
                  750,000             1,114,688   
Tower Group, Inc., 5.00%, Due 9/15/14, (A)
                  1,250,000             1,270,312   
 
                                 3,934,219   
Internet & Catalog Retail – 1.3%
                                       
Priceline.com Inc., 1.25%, Due 3/15/15, (BBB) (1)
                  450,000             939,094   
Priceline.com Inc., 1.00%, Due 3/15/18, (BBB) (1)
                  500,000             536,562   
 
                                 1,475,656   
Internet Software & Services – 2.2%
                                       
Digital River, Inc., 2.00%, Due 11/1/30, (BBB)
                  1,100,000             1,088,312   
Equinix, Inc., 3.00%, Due 10/15/14, (B)
                  750,000             1,466,719   
 
                                 2,555,031   
IT Services – 0.6%
                                       
CSG Systems International, Inc., 3.00%, Due 3/1/17, (A)
                  650,000             683,312   
 
Machinery – 0.5%
                                       
Chart Industries, Inc., 2.00%, Due 8/1/18, (B)
                  500,000             618,438   
 
Marine – 0.3%
                                       
DryShips Inc., 5.00%, Due 12/1/14, (BB)
                  500,000             397,500   
 

Ellsworth Fund Ltd. – Schedule of Investments – continued
December 31, 2012

        Principal
Amount
     Value
(Note 1)
CONVERTIBLE BONDS AND NOTES – continued
                                       
 
Metals & Mining – 3.7%
                                       
A.M. Castle & Co., 7.00%, Due 12/15/17, (BB) (1)
               $ 250,000          $ 401,250   
Kaiser Aluminum Corp., 4.50%, Due 4/1/15, (BB)
                  1,000,000             1,351,250   
Northgate Minerals Corp., 3.50%, Due 10/1/16, (NR)
                  600,000             653,625   
RTI International Metals, Inc., 3.00%, Due 12/1/15, (BBB)
                  600,000             654,375   
Stillwater Mining Company, 1.75%, Due 10/15/32, (B)
                  500,000             585,312   
United States Steel Corp., 4.00%, Due 5/15/14, (BB)
                  500,000             541,562   
 
                                 4,187,374   
Oil, Gas & Consumable Fuels – 1.2%
                                       
Endeavour International Corp., 5.50%, Due 7/15/16, (CCC)
                  500,000             375,312   
Goodrich Petroleum Corp., 5.00%, Due 10/1/29, (CCC)
                  1,000,000             943,750   
 
                                 1,319,062   
Pharmaceuticals – 2.2%
                                       
The Medicines Company, 1.375%, Due 6/1/17, (A) (1)
                  250,000             275,000   
Mylan Inc., 3.75%, Due 9/15/15, (BBB)
                  750,000             1,597,969   
Salix Pharmaceuticals Ltd., 2.75%, Due 5/15/15, (A)
                  600,000             689,250   
 
                                 2,562,219   
Real Estate Investment Trusts – 2.6%
                                       
Annaly Capital Management, Inc., 4.00%, Due 2/15/15, (BB)
                  750,000             869,062   
Corporate Office Properties Trust, 4.25%, Due 4/15/30, (NR)
                  500,000             518,438   
Lexington Realty Trust, 6.00%, Due 1/15/30, (AAA)
                  1,000,000             1,542,500   
 
                                 2,930,000   
Semiconductors & Semiconductor Equipment – 7.5%
                                       
GT Advanced Technologies, Inc., 3.00%, Due 10/1/17, (B)
                  750,000             549,375   
Intel Corp., 2.95%, Due 12/15/35, (A) (2)
                  1,500,000             1,562,812   
JinkoSolar Holding Co. Ltd., 4.00%, Due 5/15/16, (NR)
                  250,000             111,406   
Micron Technology, Inc., 3.125%, Due 5/1/32, (BB) (1)
                  1,000,000             978,750   
Micron Technology, Inc., 1.50%, Due 8/1/31, (BB)
                  625,000             580,859   
Photronics, Inc., 3.25%, Due 4/1/16, (BBB)
                  1,000,000             1,012,500   
ReneSola Ltd., 4.125%, Due 3/15/18, (NR)
                  500,000             242,500   
Rudolph Technologies Inc., 3.75%, Due 7/15/16, (A)
                  500,000             629,375   
SunPower Corp., 4.75%, Due 4/15/14, (BB)
                  500,000             473,750   
SunPower Corp., 4.50%, Due 3/15/15, (BB)
                  1,250,000             1,165,625   
Xilinx, Inc., 2.625%, Due 6/15/17, (BBB)
                  866,000             1,183,172   
 
                                 8,490,124   
Software – 6.6%
                                       
Bottomline Technologies, Inc., 1.50%, Due 12/1/17, (A)
                  750,000             836,719   
Electronic Arts, 0.75%, Due 7/15/16, (BBB)
                  500,000             463,438   
Mentor Graphics Corp., 4.00%, Due 4/1/31, (A)
                  500,000             590,312   
Nuance Communications, Inc., 2.75%, Due 8/15/27, (BB)
                  1,500,000             1,980,000   
Rovi Corp., 2.625%, Due 2/15/40, (BB)
                  1,000,000             999,375   
Take-Two Interactive Software, Inc., 1.75%, Due 12/1/16, (BB) (1)
                  750,000             717,188   
TeleCommunications Systems, Inc., 4.50%, Due 11/1/14, (BB)
                  1,000,000             960,000   
Tibco Software Inc., 2.25%, Due 5/1/32, (BBB) (1)
                  1,000,000             955,625   
 
                                 7,502,657   
 

Ellsworth Fund Ltd. – Schedule of Investments – continued
December 31, 2012

        Principal
Amount
     Value
(Note 1)
CONVERTIBLE BONDS AND NOTES – continued
                                       
 
Textiles, Apparel & Luxury Goods – 0.7%
                                       
Iconix Brand Group, Inc., 2.50%, Due 6/1/16, (A)
               $ 750,000          $ 780,469   
 
Trading Companies & Distributors – 2.2%
                                       
Kaman Corp., 3.25%, Due 11/15/17, (A)
                  500,000             630,625   
Titan International, Inc., 5.625%, Due 1/15/17, (B)
                  375,000             894,609   
Titan Machinery Inc., 3.75%, Due 5/1/19, (B) (1)
                  1,000,000             945,625   
 
                                 2,470,859   
Wireless Telecommunications Services – 1.2%
                                       
SBA Communications Corp., 4.00%, Due 10/1/14, (NR)
                  600,000             1,421,625   
 
TOTAL CONVERTIBLE BONDS AND NOTES
                                 68,104,722   
 
CONVERTIBLE PREFERRED STOCK – 12.9%
                                       
        Shares
    
Commercial Banks – 4.7%
                                       
Fifth Third Bancorp, 8.50%, (BB)
                  12,000             1,697,250   
Huntington Bancshares, Inc., 8.50%, (BBB)
                  1,000             1,206,000   
Wells Fargo & Co., 7.50%, (BBB)
                  2,000             2,450,000   
 
                                 5,353,250   
Diversified Financial Services – 1.6%
                                       
Bank of America Corp., 7.25%, (BB)
                  1,600             1,816,000   
 
Food Products – 0.7%
                                       
Bunge Ltd., 4.875%, (BB)
                  7,500             763,125   
 
Machinery – 1.1%
                                       
Stanley Black & Decker, Inc., 4.75%, (BBB)
                  10,000             1,207,200   
 
Media – 0.9%
                                       
Interpublic Group of Companies, Inc., 5.25%, (B)
                  1,000             1,072,190   
 
Oil, Gas & Consumable Fuels – 1.6%
                                       
Chesapeake Energy Corp., 5.75%, (B)
                  2,050             1,845,000   
 
Real Estate Investment Trusts – 0.5%
                                       
Health Care REIT, Inc., 6.50%, (BB)
                  10,000             571,900   
 
Speciality Retail – 0.8%
                                       
Amerivon Holdings LLC, 4.00%, (NR) (1,3,4)
                  610,778             910,059   
Amerivon Holdings LLC, common equity units, (NR) (1,3,4)
                  272,728             32,727   
 
                                 942,786   
Thrifts & Mortgage Finance – 1.0%
                                       
New York Community Capital Trust V, 6.00%, (BB)
                  24,000             1,182,000   
 
TOTAL CONVERTIBLE PREFERRED STOCK
                                 14,753,451   
 

Ellsworth Fund Ltd. – Schedule of Investments – continued
December 31, 2012

        Shares
     Value
(Note 1)
MANDATORY CONVERTIBLE SECURITIES – 10.3% (5)
                                       
 
Aerospace & Defense – 2.0%
                                       
United Technologies Corp., 7.50%, Due 8/1/22, (BBB)
                  40,000             2,228,400   
 
Automobiles – 1.5%
                                       
General Motors Co., 4.75%, Due 12/1/13, (NR)
                  40,000             1,765,200   
 
Electric Utilities – 2.4%
                                       
NextEra Energy, Inc., 5.599%, Due 6/1/17, (NR)
                  7,500             379,275   
NextEra Energy, Inc., 5.889%, Due 9/1/18, (BBB)
                  20,000             1,003,400   
PPL Corp., 8.75%, Due 5/1/19, (NR)
                  25,000             1,343,250   
 
                                 2,725,925   
Insurance – 1.0%
                                       
MetLife, Inc., 5.00%, Due 10/8/14, (BBB)
                  25,000             1,111,750   
 
IT Services – 0.5%
                                       
Unisys Corp., 6.25%, Due 3/1/14, (B)
                  10,000             527,000   
 
Metals & Mining –0.2%
                                       
AngloGold Ashanti Ltd., 6.00%, Due 9/15/13, (NR)
                  5,900             220,483   
 
Oil, Gas & Consumable Fuels – 1.2%
                                       
Apache Corp., 6.00%, Due 8/1/13, (A)
                  30,000             1,371,000   
 
Road & Rail – 1.6%
                                       
Genesee & Wyoming, Inc., 5.00%, Due 10/1/15, (NR)
                  10,000             1,121,300   
2010 Swift Mandatory Common Exchange Security Trust, 6.00%, Due 12/31/13, (NR)
                  70,000             652,267   
 
                                 1,773,567   
TOTAL MANDATORY CONVERTIBLE SECURITIES (5)
                                 11,723,325   
 
PREFERRED STOCK – 0.4%
                                       
 
Metals & Mining – 0.4%
                                       
Vale/P, (NR)
                  20,145             408,944   
 
COMMON STOCK – 13.5%
                                       
 
Diversified Telecommunication Services – 4.3%
                                       
AT&T Inc.
                  70,000             2,359,700   
Verizon Communications Inc.
                  60,000             2,596,200   
 
                                 4,955,900   
Financial Services – 0.7%
                                       
Citigroup Inc.
                  19,547             773,271   
 

Ellsworth Fund Ltd. – Schedule of Investments – continued
December 31, 2012

        Shares
     Value
(Note 1)
COMMON STOCK – continued
                                       
 
Media – 0.7%
                                       
Walt Disney Co.
                  15,000             746,850   
 
Metals & Mining – 0.7%
                                       
Newmont Mining Corp.
                  18,000             835,920   
 
Oil, Gas & Consumable Fuels – 1.4%
                                       
ConocoPhillips
                  26,782             1,553,088   
 
Pharmaceuticals – 3.9%
                                       
Abbott Laboratories
                  18,000             1,179,000   
Bristol Myers Squibb Co.
                  30,000             977,700   
Merck & Co., Inc.
                  32,651             1,336,732   
Pfizer Inc.
                  40,000             1,003,200   
 
                                 4,496,632   
Semiconductors & Semiconductor Equipment – 0.5%
                                       
Intel Corp.
                  25,000             515,750   
 
Software – 1.4%
                                       
Microsoft Corp.
                  58,600             1,566,378   
 
TOTAL COMMON STOCK
                                 15,443,789   
 
Total Convertible Bonds and Notes – 59.8%
                                 68,104,722   
Total Convertible Preferred Stock – 12.9%
                                 14,753,451   
Total Mandatory Convertible Securities – 10.3%
                                 11,723,325   
Total Preferred Stock – 0.4%
                                 408,944   
Total Common Stock – 13.5%
                                 15,443,789   
Total Investments – 96.9%
                                 110,434,231   
 
Other Assets and Liabilites – 3.1%
                                 3,505,135   
Total Net Assets – 100.0%
                              $ 113,939,366   
 

Ellsworth Fund Ltd. – Schedule of Investments – continued
December 31, 2012

(1)  Security not registered under the Securities Act of 1933, as amended (the “Securities Act”) (e.g., the security was purchased in a Rule 144A or a Regulation D transaction). The security may be resold only pursuant to an exemption from registration under the Securities Act, typically to qualified institutional buyers. The Fund generally has no rights to demand registration of such securities. The aggregate market value of these unregistered securities at December 31, 2012 was $13,794,943 which represented 12.1% of the Fund’s net assets.

(2)  Contingent payment debt instrument which accrues contingent interest.

(3)  Investment is valued at fair value as determined in good faith pursuant to procedures adopted by the Board of Trustees. It is possible that the estimated value may differ significantly from the amount that might ultimately be realized in the near term, and the difference could be material. The fair value of these securities amounted to $942,786 at December 31, 2012, which represented 0.8% of the Fund’s net assets.

(4)  Restricted securities include securities that have not been registered under the Securities Act and securities that are subject to restrictions on resale. The Fund may invest in restricted securities that are consistent with the Fund’s investment objective and investment strategies. In some cases, the issuer of restricted securities has agreed to register such securities for resale at the issuer’s expense, either upon demand by the Fund or in connection with another registered offering of the securities. Investments in restricted securities are valued at fair value as determined in good faith in accordance with procedures adopted by the Board of Trustees. It is possible that the estimated value may differ significantly from the amount that might ultimately be realized in the near term, and the difference could be material. As of December 31, 2012, the Fund was invested in the following restricted securities:

Security
Acquisition Date
   
 Shares
   
 Cost
   
 Price per
Share
   
 Value
   
 % Net
Assets
Amerivon Holdings LLC
series A 4.00% cv. pfd.
    
April 1, 2010
          610,778          $ 1,500,000          $ 1.328          $ 910,059             0.8 %  
Amerivon Holdings LLC
common equity units
    
April 1, 2010
          272,728       
0
          0.010             32,727             0.0 %  
 

(5)  Mandatory Convertible Securities are required to be converted on the dates listed; they generally may be converted prior to these dates at the option of the holder.

PORTFOLIO RATINGS:

Where a security is rated by Standard & Poor’s, such rating appears in parentheses next to such security (but without any applicable + or - that might apply).

Where a security is rated by Standard & Poor’s and at least one other rating agency and the Fund believes the ratings to be functionally equivalent to one another, the Standard & Poor’s rating appears in parentheses next to such security (but without any applicable + or - that might apply).

Where a security is rated by Standard & Poor’s and at least one other rating agency and the Fund believes the ratings not to be functionally equivalent to one another, the Fund puts in parentheses next to such security the Standard & Poor’s rating which it believes approximates the average of all such ratings (but without any applicable + or - that might apply).

Where a security is not rated by Standard & Poor’s, the Fund puts in parentheses next to such security the Standard & Poor’s rating which it believes approximates the average of all such ratings (but without any applicable + or - that might apply).


NR is used whenever a rating is unavailable.

SUMMARY OF PORTFOLIO RATINGS*

AAA
                  2 %  
AA
                  1 %  
A
                  16 %  
BBB
                  20 %  
BB
                  18 %  
B
                  18 %  
CCC & below
                  2 %  
Not Rated
                  23 %  
 
*  
   Excludes common stocks and cash.

See accompanying notes


Ellsworth Fund Ltd. – Selected Notes to Financial Statements – unaudited

Ellsworth Fund Ltd. (the “Fund”), is registered under the Investment Company Act of 1940, as amended, (the “Act”) as a diversified, closed-end management investment company.

Security Valuation – Investments in securities traded on a national securities exchange are valued at market using the last reported sales price, supplied by an independent pricing service, as of the close of regular trading. Listed securities, for which no sales were reported, are valued at the mean between closing reported bid and asked prices as of the close of regular trading. Unlisted securities traded in the over-the-counter market are valued using an evaluated quote provided by the independent pricing service, or, if an evaluated quote is unavailable, such securities are valued using prices received from dealers, provided that if the dealer supplies both bid and asked prices, the price to be used is the mean of the bid and asked prices. The independent pricing service derives an evaluated quote by obtaining dealer quotes, analyzing the listed markets, reviewing trade execution data and employing sensitivity analysis. Evaluated quotes may also reflect appropriate factors such as individual characteristics of the issue, communications with broker-dealers, and other market data. Securities for which quotations are not readily available, restricted securities and other assets are valued at fair value as determined in good faith pursuant to procedures approved by the Board of Trustees. Short-term debt securities with original maturities of 60 days or less are valued at amortized cost.

The Fund has adopted authoritative fair valuation accounting standards which establish an authoritative definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion in changes in valuation techniques and related inputs during the period. These inputs are summarized in the three broad levels listed below:

Level 1 – Quoted unadjusted prices for identical instruments in active markets.

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-driven valuation 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, and those received from an independent pricing service.

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 an asset or liability based on the best available information.

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 the 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 instruments categorized in Level 3.


Ellsworth Fund Ltd. – Selected Notes to Financial Statements – continued

The following is a summary of the inputs used to value the investments of the Fund as of December 31, 2012:

        Level 1
    
 Level 2
    
 Level 3
    
 Totals
Investments in Securities:
                                                                        
Common Stock:
                                                                        
Diversified Telecommunications
Services
               $ 4,955,900          $ —           $ —           $ 4,955,900   
Financial Services
                  773,271             —              —              773,271   
Media
                  746,850             —              —              746,850   
Metals and Mining
                  835,920             —              —              835,920   
Oil, Gas & Consumable Fuels
                  1,553,088             —              —              1,553,088   
Pharmaceuticals
                  4,496,632             —              —              4,496,632   
Semiconductors &
Semiconductors Equipment
                  515,750             —              —              515,750   
Software
                  1,566,378             —              —              1,566,378   
Total Common Stock
                  15,443,789             —              —              15,443,789   
 
Convertible Bonds and Notes
                  —              68,104,722             —              68,104,722   
Convertible Preferred Stock
                  —              13,810,665             942,786             14,753,451   
Mandatory Convertible Securities
                  —              11,723,325             —              11,723,325   
Preferred Stock
                  —              408,944             —              408,944   
Total Investments
               $ 15,443,789          $ 94,047,656          $ 942,786          $ 110,434,231   
 

The following is a reconciliation of assets for which Level 3 inputs were used in determining value:

        Convertible
Preferred
Stocks
Beginning balance
               $ 918,396 
Change in unrealized
appreciation (depreciation)
                  24,390 
Net transfers in/out of Level 3
                  — 
Ending balance
               $ 942,786 
 

In May 2011, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards (”IFRS“)”. ASU 2011-04 includes common requirements for measurement of and disclosure about fair value between U.S. GAAP and IFRS. ASU 2011-04 will require reporting to entities to disclose the following information for fair value measurements categorized within Level 3 of the fair value hierarchy: quantitative information about the unobservable inputs used in the fair value measurement, the valuation processes used by the reporting entity, and a narrative description of the sensitivity of the fair value measurement to changes in observable inputs and the interrelationships between those unobservable inputs. In addition, ASU 2011-04 will require reporting to entities to make disclosures about amounts and reasons for all transfers in and out of Level 1 and Level 2 fair value measurements. The new and revised disclosures are effective for interim and annual



reporting periods beginning after December 15, 2011. At this time, management is evaluating the implications of ASU 2011-04 and its impact on the financial statements.

In December 2011, FASB issued ASU No. 2011-11 related to disclosures about offsetting assets and liabilities. The amendments in this ASU require an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The ASU is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The guidance requires retrospective application for all comparative periods presented. The Fund is currently evaluating the impact ASU 2011-11 will have on the financial statement disclosures.

Securities Transactions and Related Investment Income – Securities transactions are accounted for on the trade date (the date the order to buy or sell is executed) with gain or loss on the sale of securities being determined based upon identified cost. Dividend income is recorded on the ex-dividend date and interest income is recorded on the accrual basis, including accretion of discounts and amortization of non-equity premium. For certain securities, known as “contingent payment debt instruments,” Federal tax regulations require the Fund to record non-cash, “contingent” interest income in addition to interest income actually received. Contingent interest income amounted to approximately one cent per share for the three months ended December 31, 2012. In addition, Federal tax regulations require the Fund to reclassify realized gains (losses) on contingent payment debt instruments to interest income. At December 31, 2012, there were unrealized losses of approximately four cents per share on contingent payment debt instruments.

Federal Income Tax Cost – At December 31, 2012, the cost basis of investments for federal income tax purposes, as well as the gross unrealized appreciation from investments for those securities having an excess of value over cost, gross unrealized depreciation from investments for those securities having an excess of cost over value and the net unrealized appreciation from investments were $102,934,804, $12,225,706, $(4,726,275) and $7,499,431, respectively.


ITEM 2. CONTROLS AND PROCEDURES.

Conclusions of principal officers concerning controls and procedures.

(a)  The Fund’s principal executive officer and principal financial officer have concluded that the Fund’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c)) are effective as of February 28, 2013 based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 17 CFR 240.15d-15(b)).

(b)  There have been no changes in the Fund’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the Fund’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Fund’s internal control over financial reporting.

ITEM 3. EXHIBITS.

Certifications of the principal executive officer and the principal financial officer of the Fund, as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)), are filed herewith.

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.

Ellsworth Fund Ltd.

By:  
   /s/Thomas H. Dinsmore
Thomas H. Dinsmore
Chairman of the Board and
Chief Executive Officer
(Principal Executive Officer)

Date: February 28, 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 H. Dinsmore
Thomas H. Dinsmore
Chairman of the Board and
Chief Executive Officer
(Principal Executive Officer)

Date: February 28, 2013

By:  
   /s/Gary I. Levine
Gary I. Levine
Chief Financial Officer
(Principal Financial Officer)

Date: February 28, 2013