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 811-21949

DWS Dreman Value Income Edge Fund, Inc.

(Exact name of registrant as specified in charter)

 

345 Park Avenue

New York, NY 10154

(Address of principal executive offices)             (Zip code)

 

Paul Schubert

345 Park Avenue

New York, NY 10154-0004

(Name and address of agent for service)

Registrant's telephone number, including area code: (212) 454-7190

Date of fiscal year end: 09/30

Date of reporting period:6/30/09

 

ITEM 1. SCHEDULE OF INVESTMENTS

 

| Investment Portfolio | **as of June 30, 2009 (Unaudited)** |
|----------------------|-------------------------------------|

 

**DWS Dreman Value Income Edge Fund, Inc.**

|                                      | **Shares**                |   | **Value ($)** |        |
|-------------------------------------------|---------------------------|--------|---------------|-------------|
|                                           |
|                                      | **Long Positions 104.4%** |   |
| **Common Stocks 14.3%**                   |                      |
| **Consumer Discretionary 1.1%**           |                      |
| **Automobiles 0.1%**                      |                      |
| Harley-Davidson, Inc. (a)                 |                      | 15,720 |          | **254,821** |   |
| **Hotels Restaurants & Leisure 0.1%** |                      |
| Wyndham Worldwide Corp. (a)               |                      | 40,400 |          | **489,648** |   |
| **Household Durables 0.3%**               |                      |
| Newell Rubbermaid, Inc. (a)               |                      | 31,130 |          | 324,063     |   |
| Snap-on, Inc. (a)                         |                      | 6,960  |          | 200,030     |   |
| Whirlpool Corp. (a)                       |                      | 6,560  |          | 279,194     |   |
|                                           |
|                                      | **803,287**               |   |
| **Internet & Catalog Retail 0.1%**    |                      |
| Expedia, Inc.* (a)                        |                      | 24,660 |          | **372,613** |   |
|                                           |                           |        |               |             |  |  |  |

 

 

 

| **Media 0.3%**                                |           |
|-----------------------------------------------|----------------|
| CBS Corp. "B" (a)                             |           | 43,820 |   | 303,234 |   |
| Meredith Corp. (a)                            |           | 11,590 |   | 296,125 |   |
| Viacom, Inc. "B"* (a)                         |           | 11,220 |   | 254,694 |   |
|                                               |
|                                          | **854,053**    |   |
| **Specialty Retail 0.1%**                     |           |
| RadioShack Corp. (a)                          |           | 20,560 |   | **287,018** |   |
| **Textiles, Apparel & Luxury Goods 0.1%** |           |
| Coach, Inc. (a)                               |           | 11,700 |   | **314,496** |   |
| **Consumer Staples 0.1%**                     |           |
| **Beverages 0.1%**                            |           |
| Constellation Brands, Inc. "A"* (a)           |           | 13,020 |   | **165,094** |   |
| **Food & Staples Retailing 0.0%**         |           |
| SUPERVALU, Inc. (a)                           |           | 11,700 |   | **151,515** |   |
| **Energy 8.3%**                               |           |
| **Energy Equipment & Services 0.3%**      |           |
| Diamond Offshore Drilling, Inc. (a)           |           | 2,890 |   | 240,014 |   |
| ENSCO International, Inc. (a)                 |           | 6,640 |   | 231,537 |   |
| National-Oilwell Varco, Inc.* (a)             |           | 5,960 |   | 194,654 |   |
| Noble Corp. (a)                               |           | 6,940 |   | 209,935 |   |
|                                               |
|                                          | **876,140**    |   |
| **Oil, Gas & Consumable Fuels 8.0%**      |           |
| Apache Corp. (a)                              |           | 2,860 |   | 206,349 |   |
| ARC Energy Trust (Units)                      |           | 211,800 |   | 3,223,596 |   |
| Bonavista Energy Trust (Units)                |           | 200,000 |   | 3,185,900 |   |
| Crescent Point Energy Corp.                   |           | 257,548 |   | 7,510,100 |   |
| Devon Energy Corp. (a)                        |           | 3,780 |   | 206,010 |   |
| El Paso Corp. (a)                             |           | 28,620 |   | 264,163 |   |
| EOG Resources, Inc. (a)                       |           | 2,900 |   | 196,968 |   |
| Freehold Royalty Trust (Units)                |           | 200,000 |   | 2,373,360 |   |
| Harvest Energy Trust (Units)                  |           | 568,444 |   | 3,098,020 |   |
| NAL Oil & Gas Trust (Units)               |           | 344,500 |   | 2,775,192 |   |
| Occidental Petroleum Corp. (a)                |           | 3,100 |   | 204,011 |   |
| Pengrowth Energy Trust (Units)                |           | 80,000 |   | 632,000 |   |
| Valero Energy Corp. (a)                       |           | 9,870 |   | 166,704 |   |
|                                               |
|                                          | **24,042,373** |   |
| **Financials 2.0%**                           |           |
| **Capital Markets 0.2%**                      |           |
| Ameriprise Financial, Inc. (a)                |           | 9,480 |   | 230,079 |   |
| State Street Corp. (a)                        |           | 7,540 |   | 355,888 |   |
|                                               |
|                                          | **585,967**    |   |
| **Consumer Finance 0.1%**                     |           |
| SLM Corp.* (a)                                |           | 39,370 |   | **404,330** |   |
| **Insurance 1.4%**                            |           |
| Aflac, Inc. (a)                               |           | 11,360 |   | 353,182 |   |
| Allstate Corp. (a)                            |           | 10,320 |   | 251,808 |   |
| Assurant, Inc. (a)                            |           | 8,340 |   | 200,911 |   |
| Chubb Corp. (a)                               |           | 4,560 |   | 181,853 |   |
| Genworth Financial, Inc. "A" (a)              |           | 113,970 |   | 796,650 |   |
| Hartford Financial Services Group, Inc. (a)   |           | 23,970 |   | 284,524 |   |
| Lincoln National Corp. (a)                    |           | 18,220 |   | 313,566 |   |
| Loews Corp. (a)                               |           | 8,490 |   | 232,626 |   |

 

 

 

| MetLife, Inc. (a)                             |          | 9,790  |   | 293,798     |   |
|-----------------------------------------------|---------------|--------|--------|-------------|--------|
| Principal Financial Group, Inc. (a)           |          | 20,610 |   | 388,293     |   |
| Prudential Financial, Inc. (a)                |          | 8,660  |   | 322,325     |   |
| The Travelers Companies, Inc. (a)             |          | 4,580  |   | 187,963     |   |
| Torchmark Corp. (a)                           |          | 7,270  |   | 269,281     |   |
| Unum Group (a)                                |          | 15,550 |   | 246,623     |   |
|                                               |
|                                          | **4,323,403** |   |
| **Real Estate Investment Trusts 0.3%**        |          |
| Host Hotels & Resorts, Inc. (REIT) (a)    |          | 36,670 |   | 307,661     |   |
| Simon Property Group, Inc. (REIT) (a)         |          | 4,872  |   | 250,567     |   |
| Vornado Realty Trust (REIT) (a)               |          | 4,499  |   | 202,590     |   |
|                                               |
|                                          | **760,818**   |   |
| **Thrifts & Mortgage Finance 0.0%**       |          |
| Washington Mutual, Inc.                       |          | 47,000 |   | **4,747**   |   |
| **Health Care 0.8%**                          |          |
| **Health Care Providers & Services 0.5%** |          |
| Aetna, Inc. (a)                               |          | 7,000  |   | 175,350     |   |
| CIGNA Corp. (a)                               |          | 9,950  |   | 239,695     |   |
| Coventry Health Care, Inc.* (a)               |          | 15,880 |   | 297,115     |   |
| Humana, Inc.* (a)                             |          | 6,660  |   | 214,852     |   |
| UnitedHealth Group, Inc. (a)                  |          | 8,100  |   | 202,338     |   |
| WellPoint, Inc.* (a)                          |          | 4,740  |   | 241,218     |   |
|                                               |
|                                          | **1,370,568** |   |
| **Health Care Technology 0.1%**               |          |
| IMS Health, Inc. (a)                          |          | 13,780 |   | **175,006** |   |
| **Pharmaceuticals 0.2%**                      |          |
| Eli Lilly & Co. (a)                       |          | 5,530  |   | 191,559     |   |
| Forest Laboratories, Inc.* (a)                |          | 8,270  |   | 207,660     |   |
| Merck & Co., Inc. (a)                     |          | 6,680  |   | 186,773     |   |
| Pfizer, Inc. (a)                              |          | 11,930 |   | 178,950     |   |
|                                               |
|                                          | **764,942**   |   |
| **Industrials 0.9%**                          |          |
| **Aerospace & Defense 0.5%**              |          |
| Boeing Co. (a)                                |          | 5,060  |   | 215,050     |   |
| General Dynamics Corp. (a)                    |          | 4,530  |   | 250,917     |   |
| Goodrich Corp. (a)                            |          | 4,960  |   | 247,851     |   |
| Northrop Grumman Corp. (a)                    |          | 4,690  |   | 214,239     |   |
| Precision Castparts Corp. (a)                 |          | 3,170  |   | 231,505     |   |
| Rockwell Collins, Inc. (a)                    |          | 5,590  |   | 233,271     |   |
|                                               |
|                                          | **1,392,833** |   |
| **Commercial Services & Supplies 0.2%**   |          |
| Pitney Bowes, Inc. (a)                        |          | 8,480  |   | 185,966     |   |
| R.R. Donnelley & Sons Co. (a)             |          | 24,910 |   | 289,454     |   |
|                                               |
|                                          | **475,420**   |   |
| **Machinery 0.1%**                            |          |
| Flowserve Corp. (a)                           |          | 3,210  |   | **224,090** |   |
| **Road & Rail 0.1%**                      |          |
| CSX Corp. (a)                                 |          | 7,250  |   | 251,068     |   |
| Norfolk Southern Corp. (a)                    |          | 5,720  |   | 215,472     |   |
|                                               |
|                                          | **466,540**   |   |

 

 

 

| **Information Technology 0.4%**                             |                                  |
|-------------------------------------------------------------|---------------------------------------|
| **Communications Equipment 0.0%**                           |                                  |
| Harris Corp. (a)                                            |                                  | 5,380 |   | 152,577 |   |
| Harris Stratex Networks, Inc. "A"*                          |                                  | 1,336 |   | 8,657 |   |
|                                                             |
|                                                        | **161,234**                           |   |
| **Computers & Peripherals 0.1%**                        |                                  |
| Hewlett-Packard Co. (a)                                     |                                  | 5,730 |   | 221,465 |   |
| Lexmark International, Inc. "A"* (a)                        |                                  | 10,020 |   | 158,817 |   |
|                                                             |
|                                                        | **380,282**                           |   |
| **Electronic Equipment, Instruments & Components 0.1%** |                                  |
| Jabil Circuit, Inc. (a)                                     |                                  | 45,570 |   | **338,129** |   |
| **IT Services 0.1%**                                        |                                  |
| Convergys Corp.* (a)                                        |                                  | 26,050 |   | **241,744** |   |
| **Office Electronics 0.1%**                                 |                                  |
| Xerox Corp. (a)                                             |                                  | 32,740 |   | **212,155** |   |
| **Materials 0.3%**                                          |                                  |
| **Containers & Packaging 0.2%**                         |                                  |
| Owens-Illinois, Inc.* (a)                                   |                                  | 14,560 |   | 407,826 |   |
| Pactiv Corp.* (a)                                           |                                  | 14,040 |   | 304,668 |   |
|                                                             |
|                                                        | **712,494**                           |   |
| **Metals & Mining 0.1%**                                |                                  |
| Newmont Mining Corp. (a)                                    |                                  | 4,470 |   | **182,689** |   |
| **Telecommunication Services 0.1%**                         |                                  |
| **Diversified Telecommunication Services**                  |                                  |
| Embarq Corp. (a)                                            |                                  | 5,120 |   | **215,347** |   |
| **Utilities 0.3%**                                          |                                  |
| **Electric Utilities 0.1%**                                 |                                  |
| Edison International (a)                                    |                                  | 6,270 |   | 197,254 |   |
| Pepco Holdings, Inc. (a)                                    |                                  | 15,070 |   | 202,541 |   |
|                                                             |
|                                                        | **399,795**                           |   |
| **Independent Power Producers & Energy Traders 0.1%**   |                                  |
| AES Corp.* (a)                                              |                                  | 27,340 |   | 317,417 |   |
| Primary Energy Recycling Corp. (EIS) (Units)                |                                  | 122,300 |   | 114,609 |   |
|                                                             |
|                                                        | **432,026**                           |   |
| **Multi-Utilities 0.1%**                                    |                                  |
| Ameren Corp. (a)                                            |                                  | 8,540 |   | **212,561** |   |
|                                                             |
| **Total Common Stocks Long Positions**(Cost $49,520,060)    |                                  | **43,048,178** |   |
|                                                        | **Convertible Preferred Stocks 1.8%** |   |
| **Financials**                                              |                                  |
| CIT Group, Inc., Series C, 8.75%                            |                                  | 225,000 |   | 3,928,500 |   |
| Fannie Mae, Series 08-1, 8.75%                              |                                  | 1,500,000 |   | 1,335,000 |   |
|                                                             |
| **Total Convertible Preferred Stocks**(Cost $86,250,000)    |                                  | **5,263,500** |   |
|                                                        | **Principal****Amount ($)**           |   | **Value ($)** |   |
|                                                             |
|                                                        | **Corporate Bonds 71.5%**             |   |
| **Consumer Discretionary 22.7%**                            |                                  |
| ArvinMeritor, Inc., 8.125%, 9/15/2015                       |                                  |   | 20,000,000 |   | 10,500,000 |   |
| H&E Equipment Services, Inc., 8.375%, 7/15/2016         |                                  |   | 17,000,000 |   | 13,642,500 |   |
| Hertz Corp., 10.5%, 1/1/2016                                |                                  |   | 20,000,000 |   | 17,800,000 |   |
|                                                             |                                       |  |  |  |  |  |  |  |  |  |

 

 

 

| Neiman Marcus Group, Inc., 9.0%, 10/15/2015 (PIK)                         |                                         |            | 15,365,625 |   | 9,065,719      |   |
|---------------------------------------------------------------------------|----------------------------------------------|-----------------|------------|--------|----------------|--------|
| United Rentals North America, Inc., 7.75%, 11/15/2013                     |                                         |            | 20,000,000 |   | 17,200,000     |   |
|                                                                           |
|                                                                      | **68,208,219**                               |            |
| **Consumer Staples 3.4%**                                                 |                                         |
| Alliance One International, Inc., 12.75%, 11/15/2012                      |                                         |            | 5,395,000  |   | 5,678,237      |   |
| Rite Aid Corp., 8.625%, 3/1/2015                                          |                                         |            | 6,900,000  |   | 4,588,500      |   |
|                                                                           |
|                                                                      | **10,266,737**                               |            |
| **Energy 11.8%**                                                          |                                         |
| Allis-Chalmers Energy, Inc., 9.0%, 1/15/2014                              |                                         |            | 19,750,000 |   | 14,022,500     |   |
| Clayton Williams Energy, Inc., 7.75%, 8/1/2013                            |                                         |            | 13,973,000 |   | 10,130,425     |   |
| Connacher Oil & Gas Ltd., 144A, 10.25%, 12/15/2015                    |                                         |            | 2,000,000  |   | 1,210,000      |   |
| Dynegy Holdings, Inc., 7.75%, 6/1/2019                                    |                                         |            | 13,000,000 |   | 10,123,750     |   |
|                                                                           |
|                                                                      | **35,486,675**                               |            |
| **Financials 8.7%**                                                       |                                         |
| Compton Petroleum Finance Corp., 7.625%, 12/1/2013                        |                                         |            | 22,571,000 |   | 12,526,905     |   |
| DJO Finance LLC, 10.875%, 11/15/2014                                      |                                         |            | 15,400,000 |   | 13,475,000     |   |
|                                                                           |
|                                                                      | **26,001,905**                               |            |
| **Health Care 7.0%**                                                      |                                         |
| Bausch & Lomb, Inc., 9.875%, 11/1/2015                                |                                         |            | 2,000,000  |   | 1,910,000      |   |
| Biomet, Inc., 10.0%, 10/15/2017                                           |                                         |            | 3,000,000  |   | 3,052,500      |   |
| CHS/Community Health Systems, Inc., 8.875%, 7/15/2015                     |                                         |            | 4,000,000  |   | 3,920,000      |   |
| HCA, Inc., 9.25%, 11/15/2016                                              |                                         |            | 9,500,000  |   | 9,357,500      |   |
| Select Medical Corp., 7.654% **, 9/15/2015                                |                                         |            | 3,700,000  |   | 2,627,000      |   |
|                                                                           |
|                                                                      | **20,867,000**                               |            |
| **Industrials 5.3%**                                                      |                                         |
| Casella Waste Systems, Inc., 9.75%, 2/1/2013                              |                                         |            | 17,740,000 |   | **15,966,000** |   |
| **Information Technology 2.5%**                                           |                                         |
| First Data Corp., 9.875%, 9/24/2015                                       |                                         |            | 7,000,000  |   | 4,970,000      |   |
| Freescale Semiconductor, Inc., 8.875%, 12/15/2014                         |                                         |            | 5,000,000  |   | 2,525,000      |   |
|                                                                           |
|                                                                      | **7,495,000**                                |            |
| **Materials 7.6%**                                                        |                                         |
| Crown Cork & Seal Co., Inc., 8.0%, 4/15/2023                          |                                         |            | 18,104,000 |   | 15,569,440     |   |
| Graham Packaging Co. LP, 9.875%, 10/15/2014                               |                                         |            | 1,000,000  |   | 930,000        |   |
| Union Carbide Corp., 7.75%, 10/1/2096                                     |                                         |            | 10,000,000 |   | 6,157,720      |   |
|                                                                           |
|                                                                      | **22,657,160**                               |            |
| **Utilities 2.5%**                                                        |                                         |
| Texas Competitive Electric Holdings Co., LLC, Series B, 10.25%, 11/1/2015 |                                         |            | 12,000,000 |   | **7,470,000**  |   |
|                                                                           |
| **Total Corporate Bonds**(Cost $282,044,218)                              |                                         | **214,418,696** |       |
|                                                                      |                                         |            |
|                                                                      | **Loan Participations and Assignments 8.4%** |            |
| **Senior Loans****                                                        |                                         |
| Bausch & Lomb, Inc.:                                                  |                                         |
|                                                                      | Term Loan, 3.848%, 4/26/2015                 |            | 7,440,624  |   | 6,851,215      |   |
|                                                                      | Term Delayed Draw, 3.559%, 4/26/2015         |            | 1,412,781  |   | 1,300,867      |   |
| First Data Corp., Term Loan, 3.035%, 10/8/2012                            |                                         |            | 12,456,768 |   | 9,335,600      |   |
| TXU Corp., Term Loan, 3.821%, 11/1/2017                                   |                                         |            | 10,516,616 |   | 7,544,252      |   |
|                                                                           |
| **Total Loan Participations and Assignments**(Cost $31,258,598)           |                                         | **25,031,934**  |       |
|                                                                           |                                              |                 |            |        |                |        |  |  |  |  |

 

 

 

|                                                                        | **Subordinated Income Notes 0.0%**                                                                                                                                                                                                                                                                                                                                                                                                                    |       |
|-----------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|
| Preferred Term Securities XVI Ltd., 144A, Income Note, 0.0%, 3/23/2035 *    |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |       | 3,900,000 |   | 0 |   |
| Preferred Term Securities XVII Ltd., 144A, Income Note, 0.0%, 6/23/2035 *   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |       | 3,750,000 |   | 0 |   |
| Preferred Term Securities XVIII Ltd., 144A, Income Note, 0.0%, 9/23/2035 *  |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |       | 3,750,000 |   | 0 |   |
| Preferred Term Securities XIX Ltd., 144A, Income Note, 0.0%, 12/22/2035 *   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |       | 2,500,000 |   | 0 |   |
| Preferred Term Securities XXI Ltd., 144A, Income Note, 0.0%, 3/22/2038 *    |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |       | 3,750,000 |   | 0 |   |
| Preferred Term Securities XXIII Ltd., 144A, Income Note, 0.0%, 12/22/2036 * |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |       | 3,750,000 |   | 27,750 |   |
| Preferred Term Securities XXIV Ltd., 144A, Income Note, 0.0%, 3/22/2037 *   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |       | 7,500,000 |   | 0 |   |
|                                                                             |
| **Total Subordinated Income Notes**(Cost $23,162,136)                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                  | **27,750** |   |
|                                                                        | **Shares**                                                                                                                                                                                                                                                                                                                                                                                                                                            |       | **Value ($)** |   |
|                                                                             |
|                                                                        | **Cash Equivalents 8.4%**                                                                                                                                                                                                                                                                                                                                                                                                                             |       |
| Cash Management QP Trust, 0.27% (b)(Cost $25,275,342)                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |       | 25,275,342 |   | **25,275,342** |   |
|                                                                        | **% of****Net Assets**                                                                                                                                                                                                                                                                                                                                                                                                                                |       | **Value ($)** |   |
|                                                                             |
| **Total Long Positions**(Cost $497,510,354) †                        | 104.4                                                                                                                                                                                                                                                                                                                                                                                                                                                 |       | **313,065,400** |   |
| **Other Assets and Liabilities, Net**                                       | 8.4                                                                                                                                                                                                                                                                                                                                                                                                                                                   |       | **25,171,678** |   |
| **Notes Payable**                                                           | (6.7)                                                                                                                                                                                                                                                                                                                                                                                                                                                 |       | **(20,000,000)** |   |
| **Securities Sold Short**                                                   | (6.1)                                                                                                                                                                                                                                                                                                                                                                                                                                                 |       | **(18,310,692)** |   |
|                                                                             |
| **Net Assets**                                                              | 100.0                                                                                                                                                                                                                                                                                                                                                                                                                                                 |       | **299,926,386** |   |
| *†*                                                                  | *The cost for federal income tax purposes was $517,936,079. At June 30, 2009, net unrealized depreciation for all securities based on tax cost was $204,870,679. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $15,355,695 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $220,226,374.* |       |
|                                                                        | **Shares**                                                                                                                                                                                                                                                                                                                                                                                                                                            |       | **Value ($)** |   |
|                                                                             |
|                                                                        | **Common Stocks Sold Short 6.1%**                                                                                                                                                                                                                                                                                                                                                                                                                     |       |
| **Consumer Discretionary 0.7%**                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| **Auto Components 0.2%**                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Goodyear Tire & Rubber Co.                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 32,530     |   | 366,288 |   |
| Johnson Controls, Inc.                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 18,180     |   | 394,869 |   |
|                                                                             |
|                                                                        | **761,157**                                                                                                                                                                                                                                                                                                                                                                                                                                           |       |
| **Hotels Restaurants & Leisure 0.1%**                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Marriott International, Inc. "A"                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 11,181     |   | **246,767** |   |
| **Household Durables 0.1%**                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Leggett & Platt, Inc.                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 14,470     |   | **220,378** |   |
| **Internet & Catalog Retail 0.1%**                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Amazon.com, Inc.                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 2,530      |   | **211,660** |   |
| **Media 0.0%**                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Washington Post Co. "B"                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 500        |   | **176,090** |   |
| **Multiline Retail 0.1%**                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Sears Holdings Corp.                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 4,330      |   | **288,032** |   |
| **Specialty Retail 0.1%**                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Bed Bath & Beyond, Inc.                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 7,540      |   | **231,855** |   |
| **Consumer Staples 0.3%**                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| **Food & Staples Retailing 0.1%**                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Costco Wholesale Corp.                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 4,160      |   | **190,112** |   |
| **Food Products 0.1%**                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| The Hershey Co.                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 5,380      |   | 193,680 |   |
|                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                       |            |  |  |  |  |  |  |  |  |  |  |  |

 

 

 

| Tyson Foods, Inc. "A"                         |          | 18,610 |   | 234,672     |   |
|-----------------------------------------------|---------------|--------|--------|-------------|--------|
|                                               |
|                                          | **428,352**   |   |
| **Personal Products 0.1%**                    |          |
| Estee Lauder Companies, Inc. "A"              |          | 7,950  |   | **259,726** |   |
| **Energy 0.3%**                               |          |
| **Oil, Gas & Consumable Fuels**           |          |
| Hess Corp.                                    |          | 2,850  |   | 153,188     |   |
| Murphy Oil Corp.                              |          | 3,920  |   | 212,934     |   |
| Noble Energy, Inc.                            |          | 3,660  |   | 215,830     |   |
| Range Resources Corp.                         |          | 4,560  |   | 188,830     |   |
| Southwestern Energy Co.                       |          | 6,340  |   | 246,309     |   |
|                                               |
|                                          | **1,017,091** |   |
| **Financials 0.8%**                           |          |
| **Capital Markets 0.5%**                      |          |
| Charles Schwab Corp.                          |          | 12,470 |   | 218,724     |   |
| Franklin Resources, Inc.                      |          | 3,590  |   | 258,516     |   |
| Invesco Ltd.                                  |          | 13,820 |   | 246,272     |   |
| Janus Capital Group, Inc.                     |          | 33,870 |   | 386,118     |   |
| Northern Trust Corp.                          |          | 2,990  |   | 160,503     |   |
| T. Rowe Price Group, Inc.                     |          | 6,780  |   | 282,523     |   |
|                                               |
|                                          | **1,552,656** |   |
| **Consumer Finance 0.1%**                     |          |
| Capital One Financial Corp.                   |          | 13,700 |   | **299,756** |   |
| **Diversified Financial Services 0.1%**       |          |
| IntercontinentalExchange, Inc.                |          | 2,620  |   | **299,309** |   |
| **Real Estate Investment Trusts 0.1%**        |          |
| Plum Creek Timber Co., Inc. (REIT)            |          | 6,540  |   | **194,761** |   |
| **Health Care 0.4%**                          |          |
| **Biotechnology 0.1%**                        |          |
| Celgene Corp.                                 |          | 3,690  |   | 176,529     |   |
| Gilead Sciences, Inc.                         |          | 3,900  |   | 182,676     |   |
|                                               |
|                                          | **359,205**   |   |
| **Health Care Equipment & Supplies 0.1%** |          |
| Intuitive Surgical, Inc.                      |          | 1,680  |   | **274,949** |   |
| **Health Care Providers & Services 0.0%** |          |
| Medco Health Solutions, Inc.                  |          | 4,390  |   | **200,228** |   |
| **Life Sciences Tools & Services 0.1%**   |          |
| Millipore Corp.                               |          | 3,190  |   | **223,970** |   |
| **Pharmaceuticals 0.1%**                      |          |
| Allergan, Inc.                                |          | 4,250  |   | **202,215** |   |
| **Industrials 0.6%**                          |          |
| **Air Freight & Logistics 0.2%**          |          |
| C.H. Robinson Worldwide, Inc.                 |          | 4,080  |   | 212,772     |   |
| Expeditors International of Washington, Inc.  |          | 6,610  |   | 220,377     |   |
| United Parcel Service, Inc. "B"               |          | 4,000  |   | 199,960     |   |
|                                               |
|                                          | **633,109**   |   |
| **Commercial Services & Supplies 0.1%**   |          |
| Iron Mountain, Inc.                           |          | 8,740  |   | 251,275     |   |
| Stericycle, Inc.                              |          | 3,540  |   | 182,416     |   |
|                                               |
|                                          | **433,691**   |   |

 

 

 

| **Machinery 0.1%**                                          |          |
|-------------------------------------------------------------|---------------|
| PACCAR, Inc.                                                |          | 7,360 |   | **239,274** |   |
| **Professional Services 0.1%**                              |          |
| Robert Half International, Inc.                             |          | 10,620 |   | **250,844** |   |
| **Trading Companies & Distributors 0.1%**               |          |
| Fastenal Co.                                                |          | 5,750 |   | **190,728** |   |
| **Information Technology 1.9%**                             |          |
| **Communications Equipment 0.4%**                           |          |
| JDS Uniphase Corp.                                          |          | 60,730 |   | 347,376 |   |
| Juniper Networks, Inc.                                      |          | 11,730 |   | 276,828 |   |
| QUALCOMM, Inc.                                              |          | 4,790 |   | 216,508 |   |
| Tellabs, Inc.                                               |          | 42,210 |   | 241,863 |   |
|                                                             |
|                                                        | **1,082,575** |   |
| **Computers & Peripherals 0.1%**                        |          |
| Apple, Inc.                                                 |          | 1,800 |   | **256,374** |   |
| **Electronic Equipment, Instruments & Components 0.3%** |          |
| Corning, Inc.                                               |          | 14,570 |   | 233,994 |   |
| Molex, Inc.                                                 |          | 14,560 |   | 226,408 |   |
| Tyco Electronics Ltd.                                       |          | 18,960 |   | 352,467 |   |
|                                                             |
|                                                        | **812,869**   |   |
| **Internet Software & Services 0.2%**                   |          |
| Google, Inc. "A"                                            |          | 530 |   | 223,443 |   |
| VeriSign, Inc.                                              |          | 8,520 |   | 157,450 |   |
| Yahoo!, Inc.                                                |          | 12,840 |   | 201,074 |   |
|                                                             |
|                                                        | **581,967**   |   |
| **IT Services 0.1%**                                        |          |
| MasterCard, Inc. "A"                                        |          | 1,120 |   | 187,387 |   |
| Paychex, Inc.                                               |          | 7,620 |   | 192,024 |   |
|                                                             |
|                                                        | **379,411**   |   |
| **Semiconductors & Semiconductor Equipment 0.6%**       |          |
| Altera Corp.                                                |          | 10,000 |   | 162,800 |   |
| Analog Devices, Inc.                                        |          | 8,670 |   | 214,843 |   |
| Broadcom Corp. "A"                                          |          | 9,070 |   | 224,845 |   |
| Intel Corp.                                                 |          | 11,880 |   | 196,614 |   |
| Linear Technology Corp.                                     |          | 7,550 |   | 176,292 |   |
| MEMC Electronic Materials, Inc.                             |          | 11,090 |   | 197,513 |   |
| Microchip Technology, Inc.                                  |          | 8,450 |   | 190,547 |   |
| Texas Instruments, Inc.                                     |          | 10,650 |   | 226,845 |   |
| Xilinx, Inc.                                                |          | 9,010 |   | 184,345 |   |
|                                                             |
|                                                        | **1,774,644** |   |
| **Software 0.2%**                                           |          |
| Autodesk, Inc.                                              |          | 13,670 |   | 259,457 |   |
| Electronic Arts, Inc.                                       |          | 9,780 |   | 212,421 |   |
| Salesforce.com, Inc.                                        |          | 5,240 |   | 200,011 |   |
|                                                             |
|                                                        | **671,889**   |   |
| **Materials 0.9%**                                          |          |
| **Chemicals 0.3%**                                          |          |
| Dow Chemical Co.                                            |          | 23,840 |   | 384,778 |   |
| Ecolab, Inc.                                                |          | 5,490 |   | 214,055 |   |
| Monsanto Co.                                                |          | 2,180 |   | 162,061 |   |
| Praxair, Inc.                                               |          | 2,750 |   | 195,443 |   |
|                                                             |
|                                                        | **956,337**   |   |

 

 

 

| **Metals & Mining 0.4%**                                                                                                                                                                                  |                                                                                                                                                                                                                                    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| AK Steel Holding Corp.                                                                                                                                                                                        |                                                                                                                                                                                                                                    | 27,300 |   | 523,887 |   |
| Freeport-McMoRan Copper & Gold, Inc.                                                                                                                                                                      |                                                                                                                                                                                                                                    | 4,600 |   | 230,506 |   |
| United States Steel Corp.                                                                                                                                                                                     |                                                                                                                                                                                                                                    | 9,350 |   | 334,169 |   |
|                                                                                                                                                                                                               |
|                                                                                                                                                                                                          | **1,088,562**                                                                                                                                                                                                                           |   |
| **Paper & Forest Products 0.2%**                                                                                                                                                                          |                                                                                                                                                                                                                                    |
| International Paper Co.                                                                                                                                                                                       |                                                                                                                                                                                                                                    | 27,640 |   | 418,193 |   |
| MeadWestvaco Corp.                                                                                                                                                                                            |                                                                                                                                                                                                                                    | 18,100 |   | 297,021 |   |
|                                                                                                                                                                                                               |
|                                                                                                                                                                                                          | **715,214**                                                                                                                                                                                                                             |   |
| **Telecommunication Services 0.1%**                                                                                                                                                                           |                                                                                                                                                                                                                                    |
| **Wireless Telecommunication Services**                                                                                                                                                                       |                                                                                                                                                                                                                                    |
| American Tower Corp. "A"                                                                                                                                                                                      |                                                                                                                                                                                                                                    | 6,020 |   | **189,810** |   |
| **Utilities 0.1%**                                                                                                                                                                                            |                                                                                                                                                                                                                                    |
| **Electric Utilities 0.1%**                                                                                                                                                                                   |                                                                                                                                                                                                                                    |
| PPL Corp.                                                                                                                                                                                                     |                                                                                                                                                                                                                                    | 6,780 |   | **223,469** |   |
| **Gas Utilities 0.0%**                                                                                                                                                                                        |                                                                                                                                                                                                                                    |
| EQT Corp.                                                                                                                                                                                                     |                                                                                                                                                                                                                                    | 5,490 |   | **191,656** |   |
|                                                                                                                                                                                                               |
| **Total Common Stocks Sold Short**(Proceeds $13,288,618)                                                                                                                                                      |                                                                                                                                                                                                                                    | **18,310,692** |   |
| *For information on the Fund's policies regarding the valuation of investments and other significant accounting policies, please refer to the Fund's most recent semi-annual or annual financial statements.* |                                                                                                                                                                                                                                    |
| ***                                                                                                                                                                                                           | *Non-income producing security.*                                                                                                                                                                                                        |   |
| ****                                                                                                                                                                                                          | *Floating rate notes are securities whose yields vary with a designated market index or market rate, such as the coupon-equivalent of the US Treasury bill rate. These securities are shown at their current rate as of June 30, 2009.* |   |
| *****                                                                                                                                                                                                         | *Annualized yield at June 30, 2009; not a coupon rate.*                                                                                                                                                                                 |   |
| *(a)*                                                                                                                                                                                                         | *All or a portion of these securities are pledged as collateral for short sales.*                                                                                                                                                       |   |
| *(b)*                                                                                                                                                                                                         | *Affiliated fund managed by Deutsche Investment Management Americas Inc. The rate shown is the annualized seven-day yield at period end.*                                                                                               |   |
| *144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.* |                                                                                                                                                                                                                                    |
| *EIS: Enhanced Income Security*                                                                                                                                                                               |                                                                                                                                                                                                                                    |
| *PIK: Denotes that all or a portion of the income is paid in kind.*                                                                                                                                           |                                                                                                                                                                                                                                    |
| *REIT: Real Estate Investment Trust*                                                                                                                                                                          |                                                                                                                                                                                                                                    |
| *At June 30, 2009, open futures contracts purchased were as follows:*                                                                                                                                         |                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                          |                                                                                                                                                                                                                                    |
| **Futures**                                                                                                                                                                                                   |                                                                                                                                                                                                                                    | **Expiration****Date** |   | **Contracts** |   | **Aggregated****Face****Value ($)** |   | **Value ($)** |   | **Unrealized****Depreciation ($)** |   |
|                                                                                                                                                                                                               |
| S&P 500 Index                                                                                                                                                                                             |                                                                                                                                                                                                                                    | 9/17/2009 |   | 72 |   | 16,851,794 |   | 16,479,000 |   | **(372,794)** |   |
|                                                                                                                                                                                                               |                                                                                                                                                                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

 

***Fair Value Measurements***

 

*Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements," as amended, establishes a three-tier hierarchy for measuring fair value and requires additional disclosure about the classification of fair value measurements.*

 

*Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk). Level 3 includes significant unobservable            inputs (including the Fund's own assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.*

 

*The following is a summary of the inputs used as of June 30, 2009 in valuing the Fund's investments.*

|       | **Level 1** | **Level 2** | **Level 3** | **Total** |
|------------|-------------|-------------|-------------|-----------|
| **Assets** |        |        |        |

 

 

 

| Common Stock and/or Other Equity Investments(c) | $ 48,311,678                        | $ —                                                                               | $ —     | $ 48,311,678       |        |
|-------------------------------------------------|-------------------------------------|-----------------------------------------------------------------------------------------|---------------|--------------------|-------------|
| Fixed Income(c)                                 |                                |                                                                                    |          |               |        |
|                                            | Corporate Bonds                     | —                                                                                 | 214,418,696   | —            | 214,418,696 |   |
|                                            | Loan Participations and Assignments | —                                                                                 | 25,031,934    | —            | 25,031,934  |   |
|                                            | Subordinated Income Notes           | —                                                                                 | —       | 27,750             | 27,750      |   |
| Short-Term Investments(c)                       | —                             | 25,275,342                                                                              | —       | 25,275,342         |        |
| **Total**                                       | **$ 48,311,678**                    | **$ 264,725,972**                                                                       | **$ 27,750**  | **$ 313,065,400**  |        |
|                                            |                                |                                                                                    |          |               |        |
| **Liabilities**                                 |                                |                                                                                    |          |               |
| Investments Sold Short, at Value(c)             | $ (18,310,692)                      | $ —                                                                               | $ —     | $ (18,310,692)     |        |
| Derivatives(d)                                  | (372,794)                           | —                                                                                 | —       | (372,794)          |        |
| **Total**                                       | **$ (18,683,486)**                  | **$**—                                                                            | **$ —** | **$ (18,683,486)** |        |
|                                            | *(c)*                               | *See Investment Portfolio for additional detailed categorizations.*                     |
|                                            | *(d)*                               | *Derivatives include unrealized appreciation (depreciation) on open futures contracts.* |
|                                                 |                                     |                                                                                         |               |                    |             |  |  |  |

 

*The following is a reconciliation of the Fund’s Level 3 investments for which significant unobservable inputs were used in determining value:*

 

|                                                                                                  | **Subordinated Income Notes** |
|-------------------------------------------------------------------------------------------------------|-------------------------------|
| **Balance as of September 30, 2008**                                                                  | $ 6,317,200                   |
| **Realized gains (loss)**                                                                             | —                       |
| **Change in unrealized appreciation (depreciation)**                                                  | (6,289,450)                   |
| **Amortization premium/ discount**                                                                    | —                       |
| **Net purchases (sales)**                                                                             | —                       |
| **Net transfers in (out) of Level 3**                                                                 | —                       |
| **Balance as of June 30, 2009**                                                                       | **$ 27,750**                  |
| **Net change in unrealized appreciation (depreciation) from investments still held at June 30, 2009** | **$ (6,289,450)**             |

 

***Derivative Instruments and Hedging Activities***

 

*Financial Accounting Standards Board Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities,” requires enhanced disclosure about an entity’s derivative and hedging activities.*

 

*The following is a summary of the unrealized appreciation (depreciation) of the Fund's derivative instruments categorized by risk exposure as of June 30, 2009. Please see below for information on the Fund’s policy regarding the objectives and strategies for using futures.*

 

|  

 

**Primary Underlying Risk Disclosure** | **Futures** |
|--------------------------------------------------------|-------------|
| Equity Contracts                                       | $ (372,794) |

 

*Futures. The Fund may use futures contracts in circumstances where the portfolio management team believes they offer an economical means of gaining exposure to a particular asset class. Upon entering into a futures contract, the Fund is required to deposit with a financial intermediary an initial margin equal to a certain percentage of the face value indicated in the futures contract. Subsequent            payments (“variation margin”) are made or received by the fund dependent upon the daily fluctuations in the value of the underlying security. Since all futures contracts are exchange traded, counterparty risk is minimized as the exchange's clearinghouse acts as the counterparty, and guarantees the futures against default.*

 

 

 

| **ITEM 2.** | **CONTROLS AND PROCEDURES**                                                                                                                                                                                                                                                                                                                                                                        |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                                                                                                                                                                                                                                                                                               |
|        | (a)          The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.                                                                       |
|        |                                                                                                                                                                                                                                                                                                                                                                                               |
|        | (b)          There have been no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial                            reporting. |
|        |                                                                                                                                                                                                                                                                                                                                                                                               |
| **ITEM 3.** | **EXHIBITS**                                                                                                                                                                                                                                                                                                                                                                                       |
|        |                                                                                                                                                                                                                                                                                                                                                                                               |
|        | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.                                                                                                                                                                                                                                            |

 

**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.

 

| Registrant: | DWS Dreman Value Income Edge Fund, Inc.          |
|-------------|--------------------------------------------------|
|        |                                             |
| By:         | /s/Michael G. Clark

Michael G. Clark

President |
|        |                                             |
| Date:       | August 17, 2009                                  |

 

 

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.

 

| Registrant: | DWS Dreman Value Income Edge Fund, Inc.                                |
|-------------|------------------------------------------------------------------------|
|        |                                                                   |
| By:         | /s/Michael G. Clark

Michael G. Clark

President                       |
|        |                                                                   |
| Date:       | August 17, 2009                                                        |
|        |                                                                   |
|        |                                                                   |
|        |                                                                   |
| By:         | /s/Paul Schubert

Paul Schubert

Chief Financial Officer and Treasurer |
|        |                                                                   |
| Date:       | August 17, 2009                                                        |