Schedule 13G

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

SCHEDULE 13G

 

Under the Securities Exchange Act of 1934

 

 

 

 

Capital and Income Strategies Fund, Inc.


(Name of Issuer)

 

Common Stock, par value $0.10 per share


(Title of Class of Securities)

 

 

13971Y103

                                (CUSIP Number)                                

 

April 3, 2006


(Date of Event Which Requires Filing of this Statement)

 

Check the appropriate box to designate the rule pursuant to which this Schedule is filed:

¨ Rule 13d-1(b)

x Rule 13d-1(c)

¨ Rule 13d-1(d)

 

 

*   The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

 

Page 1 of 7 pages


CUSIP No. 13971Y103

 

  1.  

Names of Reporting Persons.

I.R.S. Identification Nos. of above persons (entities only).

   
              QVT Financial LP  
                11-3694008    
  2.   Check the Appropriate Box if a Member of a Group (See Instructions)  
  (a)  ¨  
    (b)  x    
  3.   SEC Use Only  
   
         
  4.   Citizenship or Place of Organization  
   
                Delaware    

Number of

Shares

Beneficially

Owned by

Each

Reporting

Person

With:

    5.    Sole Voting Power
 
                  0
    6.    Shared Voting Power
 
                  727,600 shares of common stock
    7.    Sole Dispositive Power
 
                  0
    8.    Shared Dispositive Power
 
                  727,600 shares of common stock
  9.   Aggregate Amount Beneficially Owned by Each Reporting Person    
   
                727,600 shares of common stock    
10.   Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions)   ¨
   
         
11.   Percent of Class Represented by Amount in Row (9) 5.67%  
   
         
12.   Type of Reporting Person (See Instructions)  
   
                PN    

 

Page 2 of 7 pages


CUSIP No. 13971Y103

 

  1.  

Names of Reporting Persons.

I.R.S. Identification Nos. of above persons (entities only).

   
              QVT Financial GP LLC  
                11-3694007    
  2.   Check the Appropriate Box if a Member of a Group (See Instructions)  
  (a)  ¨  
    (b)  x    
  3.   SEC Use Only  
   
         
  4.   Citizenship or Place of Organization  
   
                Delaware    

Number of

Shares

Beneficially

Owned by

Each

Reporting

Person

With:

    5.    Sole Voting Power
 
                  0
    6.    Shared Voting Power
 
                  727,600 shares of common stock
    7.    Sole Dispositive Power
 
                  0
    8.    Shared Dispositive Power
 
                  727,600 shares of common stock
  9.   Aggregate Amount Beneficially Owned by Each Reporting Person    
   
                727,600 shares of common stock    
10.   Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions)   ¨
   
         
11.   Percent of Class Represented by Amount in Row (9) 5.67%  
   
         
12.   Type of Reporting Person (See Instructions)  
   
                OO    

 

Page 3 of 7 pages


Item 1

 

(a).

   Name of Issuer      
     Capital and Income Strategies Fund, Inc. (the “Issuer”)      

Item 1

 

(b).

   Address of Issuer’s Principal Executive Offices      
     The address of the Issuer’s principal executive offices is:      
     800 Scudders Mill Road, Plainsboro, New Jersey 08536, United States      

Item 2

 

(a).

   Name of Person Filing      

Item 2

 

(b).

   Address of Principal Business Office or, if none, Residence      

Item 2

 

(c).

   Citizenship      
    

QVT Financial LP

527 Madison Avenue, 8th Floor

New York, New York 10022

Delaware Limited Partnership

     
    

QVT Financial GP LLC

527 Madison Avenue, 8th Floor

New York, New York 10022

Delaware Limited Liability Company

     
          

Item 2

 

(d).

   Title of Class of Securities      
     The title of the securities is common stock, par value $0.10 per share (the “Common Stock”).      

Item 2

 

(e).

   CUSIP Number      
     The CUSIP number of the Common Stock is 13971Y103.      

Item 3.

  If this statement is filed pursuant to §§ 240.13d-1(b) or 240.13d-2(b) or (c), check whether the person filing is a:   
  (a)    ¨    Broker or dealer registered under section 15 of the Act (15 U.S.C. 78o).
  (b)    ¨    Bank as defined in section 3(a)(6) of the Act (15 U.S.C. 78c).
  (c)    ¨    Insurance company as defined in section 3(a)(19) of the Act (15 U.S.C. 78c).
  (d)    ¨    Investment company registered under section 8 of the Investment Company Act of 1940 (15 U.S.C. 80a-8).
  (e)    ¨    An investment adviser in accordance with § 240.13d-1(b)(1)(ii)(E);
  (f)    ¨    An employee benefit plan or endowment fund in accordance with § 240.13d-1(b)(1)(ii)(F);
  (g)    ¨    A parent holding company or control person in accordance with § 240.13d-1(b)(1)(ii)(G);
  (h)    ¨    A savings associations as defined in Section 3(b) of the Federal Deposit Insurance Act (12 U.S.C. 1813);
  (i)    ¨    A church plan that is excluded from the definition of an investment company under section 3(c)(14) of the Investment Company Act of 1940 (15 U.S.C. 80a-3);
  (j)    ¨    Group, in accordance with § 240.13d-1(b)(1)(ii)(J).

 

Page 4 of 7 pages


Item 4.

   Ownership.      
   (a)    Amount beneficially owned:      
      QVT Financial LP (“QVT Financial”) is the investment manager for QVT Overseas Ltd., which beneficially owns 373,441 shares of Common Stock, and for QVT Associates LP, which beneficially owns 231,728 shares of Common Stock. QVT Financial is also the investment manager for a separate discretionary account managed for Deutsche Bank AG (the “Separate Account”), which holds 122,431 shares of Common Stock. QVT Financial has the power to direct the vote and disposition of the shares of Common Stock held by QVT Overseas Ltd., QVT Associates LP and the Separate Account. Accordingly, QVT Financial may be deemed to be the beneficial owner of an aggregate amount of 727,600 shares of Common Stock, consisting of the shares owned by QVT Overseas Ltd. and QVT Associates LP and the shares held in the Separate Account.      
      The reported share amounts for each reporting person reflect amounts held as of April 3, 2006, as adjusted for subsequent purchases and sales through the date hereof.      
      QVT Financial GP LLC, as General Partner of QVT Financial, may be deemed to beneficially own the same number of shares of Common Stock reported by QVT Financial.      
      Each of QVT Financial and QVT Financial GP LLC disclaim beneficial ownership of the shares of Common Stock owned by QVT Overseas Ltd. and QVT Associates LP and the shares held in the Separate Account.      
   (b)    Percent of class:      
      See Item 11 of the Cover Pages to this Schedule 13G.      
   (c)    Number of shares as to which the person has:      
      (i)    Sole power to vote or to direct the vote      
         0      
      (ii)    Shared power to vote or to direct the vote      
         See item (a) above.      
      (iii)    Sole power to dispose or to direct the disposition of      
         0      
      (iv)    Shared power to dispose or to direct the disposition of      
         See item (a) above.      

Item 5.

   Ownership of Five Percent or Less of a Class   
   If this statement is being filed to report the fact that as of the date hereof the reporting person has ceased to be the beneficial owner of more than five percent of the class of securities, check the following  ¨.   

Item 6.

   Ownership of More than Five Percent on Behalf of Another Person.      
   Not Applicable      

Item 7.

   Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on By the Parent Holding Company
   Not Applicable

Item 8.

   Identification and Classification of Members of the Group      
   Not Applicable      

Item 9.

   Notice of Dissolution of Group      
   Not Applicable      

Item 10.

   Certification      
   By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect.      

 

Page 5 of 7 pages


SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

Dated: April 10, 2006

 

QVT FINANCIAL LP

By QVT Financial GP LLC,

its General Partner

By:  

/s/ Daniel Gold

Name:   Daniel Gold
Title:   Managing Member
By:  

/s/ Lars Bader

Name:   Lars Bader
Title:   Managing Member
QVT FINANCIAL GP LLC
By:  

/s/ Daniel Gold

Name:   Daniel Gold
Title:   Managing Member
By:  

/s/ Lars Bader

Name:   Lars Bader
Title:   Managing Member

 

Page 6 of 7 pages


EXHIBIT A

JOINT FILING AGREEMENT

The undersigned hereby agree that the statement on Schedule 13G signed by each of the undersigned shall be filed on behalf of each of the undersigned pursuant to and in accordance with the provisions of Rule 13d-1(k) under the Securities Exchange Act of 1934, as amended.

Dated: April 10, 2006

 

QVT FINANCIAL LP

By QVT Financial GP LLC,

its General Partner

By:  

/s/ Daniel Gold

Name:   Daniel Gold
Title:   Managing Member
By:  

/s/ Lars Bader

Name:   Lars Bader
Title:   Managing Member
QVT FINANCIAL GP LLC
By:  

/s/ Daniel Gold

Name:   Daniel Gold
Title:   Managing Member
By:  

/s/ Lars Bader

Name:   Lars Bader
Title:   Managing Member

 

Page 7 of 7 pages