Schedule of Investments (unaudited)
LORD ABBETT DEVELOPING GROWTH FUND, INC.October 31, 2019
| Investments | Shares | Fair Value (000) | ||||||
| COMMON STOCKS 95.36% | ||||||||
| Aerospace & Defense 1.89% | ||||||||
| Axon Enterprise, Inc.* | 96,091 | $ | 4,913 | |||||
| Cubic Corp. | 393,513 | 29,018 | ||||||
| Total | 33,931 | |||||||
| Auto Components 0.77% | ||||||||
| Fox Factory Holding Corp.* | 227,349 | 13,855 | ||||||
| Banks 0.99% | ||||||||
| CenterState Bank Corp. | 121,412 | 3,079 | ||||||
| Western Alliance Bancorp | 297,972 | 14,699 | ||||||
| Total | 17,778 | |||||||
| Beverages 0.77% | ||||||||
| Boston Beer Co., Inc. (The) Class A* | 37,038 | 13,869 | ||||||
| Biotechnology 14.10% | ||||||||
| ACADIA Pharmaceuticals, Inc.* | 565,995 | 24,004 | ||||||
| Amarin Corp. plc ADR* | 596,834 | 9,800 | ||||||
| Argenx SE ADR* | 114,688 | 14,045 | ||||||
| Audentes Therapeutics, Inc.* | 161,438 | 4,343 | ||||||
| Blueprint Medicines Corp.* | 347,889 | 23,949 | ||||||
| Bridgebio Pharma, Inc.* | 688,540 | 15,568 | ||||||
| CareDx, Inc.* | 986,219 | 25,849 | ||||||
| Coherus Biosciences, Inc.* | 1,761,635 | 30,599 | ||||||
| CRISPR Therapeutics AG (Switzerland)*(a) | 201,538 | 10,151 | ||||||
| Invitae Corp.* | 690,293 | 11,121 | ||||||
| Mirati Therapeutics, Inc.* | 207,554 | 19,547 | ||||||
| Repligen Corp.* | 486,463 | 38,669 | ||||||
| Sage Therapeutics, Inc.* | 65,540 | 8,890 | ||||||
| Sarepta Therapeutics, Inc.* | 68,361 | 5,678 | ||||||
| uniQure NV (Netherlands)*(a) | 216,472 | 10,832 | ||||||
| Total | 253,045 | |||||||
| Building Products 1.36% | ||||||||
| Trex Co., Inc.* | 278,775 | 24,502 | ||||||
See Notes to Schedule of Investments.
Schedule of Investments (unaudited)(continued)
LORD ABBETT DEVELOPING GROWTH FUND, INC.October 31, 2019
| Investments | Shares | Fair Value (000) | ||||||
| Capital Markets 1.07% | ||||||||
| Assetmark Financial Holdings, Inc.* | 697,646 | $ | 19,143 | |||||
| Commercial Services & Supplies 1.76% | ||||||||
| �� | ||||||||
| Herman Miller, Inc. | 383,690 | 17,841 | ||||||
| Tetra Tech, Inc. | 158,040 | 13,824 | ||||||
| Total | 31,665 | |||||||
| Communications Equipment 0.59% | ||||||||
| Comtech Telecommunications Corp. | 303,257 | 10,599 | ||||||
| Construction & Engineering 1.56% | ||||||||
| MasTec, Inc.* | 216,134 | 13,604 | ||||||
| NV5 Global, Inc.* | 198,910 | 14,407 | ||||||
| Total | 28,011 | |||||||
| Diversified Consumer Services 4.29% | ||||||||
| Bright Horizons Family Solutions, Inc.* | 220,553 | 32,757 | ||||||
| Chegg, Inc.* | 477,958 | 14,654 | ||||||
| Grand Canyon Education, Inc.* | 186,736 | 17,172 | ||||||
| Strategic Education, Inc. | 101,634 | 12,504 | ||||||
| Total | 77,087 | |||||||
| Electrical Equipment 3.12% | ||||||||
| Generac Holdings, Inc.* | 579,695 | 55,987 | ||||||
| Electronic Equipment, Instruments & Components 1.37% | ||||||||
| Novanta, Inc.* | 122,998 | 10,953 | ||||||
| OSI Systems, Inc.* | 137,416 | 13,637 | ||||||
| Total | 24,590 | |||||||
| Entertainment 2.51% | ||||||||
| HUYA, Inc. ADR* | 527,006 | 11,721 | ||||||
| Roku, Inc.* | 226,487 | 33,339 | ||||||
| Total | 45,060 | |||||||
See Notes to Schedule of Investments.
Schedule of Investments (unaudited)(continued)
LORD ABBETT DEVELOPING GROWTH FUND, INC.October 31, 2019
| Investments | Shares | Fair Value (000) | ||||||
| Food & Staples Retailing 1.41% | ||||||||
| BJ’s Wholesale Club Holdings, Inc.* | 947,020 | $ | 25,285 | |||||
| Food Products 2.12% | ||||||||
| Calavo Growers, Inc. | 230,507 | 19,992 | ||||||
| Freshpet, Inc.* | 344,723 | 18,015 | ||||||
| Total | 38,007 | |||||||
| Health Care Equipment & Supplies 9.06% | ||||||||
| Glaukos Corp.* | 345,814 | 22,073 | ||||||
| Insulet Corp.* | 133,290 | 19,370 | ||||||
| iRhythm Technologies, Inc.* | 284,063 | 18,981 | ||||||
| Masimo Corp.* | 124,397 | 18,136 | ||||||
| Nevro Corp.* | 318,297 | 27,437 | ||||||
| Penumbra, Inc.* | 155,105 | 24,192 | ||||||
| Tandem Diabetes Care, Inc.* | 526,589 | 32,427 | ||||||
| Total | 162,616 | |||||||
| Health Care Providers & Services 0.50% | ||||||||
| Guardant Health, Inc.* | 128,051 | 8,900 | ||||||
| Health Care Technology 3.08% | ||||||||
| Inspire Medical Systems, Inc.* | 561,242 | 34,224 | ||||||
| Teladoc Health, Inc.* | 274,763 | 21,047 | ||||||
| Total | 55,271 | |||||||
| Hotels, Restaurants & Leisure 2.44% | ||||||||
| Planet Fitness, Inc. Class A* | 300,184 | 19,110 | ||||||
| Wingstop, Inc. | 297,000 | 24,778 | ||||||
| Total | 43,888 | |||||||
| Household Durables 2.27% | ||||||||
| Helen of Troy Ltd.* | 56,687 | 8,490 | ||||||
| LGI Homes, Inc.* | 340,178 | 26,697 | ||||||
| Lovesac Co. (The)* | 337,925 | 5,518 | ||||||
| Total | 40,705 | |||||||
See Notes to Schedule of Investments.
Schedule of Investments (unaudited)(continued)
LORD ABBETT DEVELOPING GROWTH FUND, INC.October 31, 2019
| Investments | Shares | Fair Value (000) | ||||||
| Information Technology Services 2.49% | ||||||||
| Verra Mobility Corp.* | 1,814,685 | $ | 26,041 | |||||
| Wix.com Ltd. (Israel)*(a) | 152,801 | 18,652 | ||||||
| Total | 44,693 | |||||||
| Insurance 1.82% | ||||||||
| eHealth, Inc.* | 139,450 | 9,628 | ||||||
| Goosehead Insurance, Inc. Class A | 449,169 | 22,988 | ||||||
| Total | 32,616 | |||||||
| Internet & Direct Marketing Retail 1.83% | ||||||||
| RealReal, Inc. (The)* | 1,419,297 | 32,800 | ||||||
| Leisure Products 3.08% | ||||||||
| Malibu Boats, Inc. Class A* | 491,748 | 16,041 | ||||||
| YETI Holdings, Inc.* | 1,181,320 | 39,350 | ||||||
| Total | 55,391 | |||||||
| Life Sciences Tools & Services 0.98% | ||||||||
| 10X Genomics, Inc. Class A* | 302,718 | 17,558 | ||||||
| Machinery 2.33% | ||||||||
| Federal Signal Corp. | 699,397 | 22,689 | ||||||
| RBC Bearings, Inc.* | 119,106 | 19,109 | ||||||
| Total | 41,798 | |||||||
| Pharmaceuticals 0.99% | ||||||||
| GW Pharmaceuticals plc ADR* | 132,674 | 17,754 | ||||||
| Professional Services 0.76% | ||||||||
| Insperity, Inc. | 130,007 | 13,733 | ||||||
| Semiconductors & Semiconductor Equipment 8.61% | ||||||||
| Cirrus Logic, Inc.* | 59,050 | 4,013 | ||||||
| Enphase Energy, Inc.* | 452,663 | 8,795 | ||||||
| Inphi Corp.* | 563,186 | 40,482 | ||||||
See Notes to Schedule of Investments.
Schedule of Investments (unaudited)(continued)
LORD ABBETT DEVELOPING GROWTH FUND, INC.October 31, 2019
| Investments | Shares | Fair Value (000) | ||||||
| Semiconductors & Semiconductor Equipment (continued) | ||||||||
| MKS Instruments, Inc. | 187,088 | $ | 20,247 | |||||
| Monolithic Power Systems, Inc. | 149,277 | 22,379 | ||||||
| Semtech Corp.* | 323,516 | 16,325 | ||||||
| Silicon Laboratories, Inc.* | 227,445 | 24,164 | ||||||
| SolarEdge Technologies, Inc. (Israel)*(a) | 172,518 | 14,657 | ||||||
| SunPower Corp.* | 407,880 | 3,573 | ||||||
| Total | 154,635 | |||||||
| Software 12.83% | ||||||||
| Alteryx, Inc. Class A* | 153,158 | 14,014 | ||||||
| Anaplan, Inc.* | 277,474 | 13,097 | ||||||
| Appian Corp.* | 396,400 | 17,695 | ||||||
| Avalara, Inc.* | 341,858 | 24,272 | ||||||
| Coupa Software, Inc.* | 156,848 | 21,565 | ||||||
| Five9, Inc.* | 459,729 | 25,520 | ||||||
| Globant SA (Argentina)*(a) | 219,976 | 20,515 | ||||||
| HubSpot, Inc.* | 71,830 | 11,141 | ||||||
| LivePerson, Inc.* | 249,033 | 10,223 | ||||||
| Medallia, Inc.* | 437,604 | 12,725 | ||||||
| Paylocity Holding Corp.* | 246,207 | 25,261 | ||||||
| Q2 Holdings, Inc.* | 176,405 | 12,611 | ||||||
| SVMK, Inc.* | 1,180,459 | 21,720 | ||||||
| Total | 230,359 | |||||||
| Specialty Retail 2.61% | ||||||||
| Asbury Automotive Group, Inc.* | 91,026 | 9,388 | ||||||
| Floor & Decor Holdings, Inc. Class A* | 453,157 | 20,768 | ||||||
| Lithia Motors, Inc. Class A | 105,595 | 16,629 | ||||||
| Total | 46,785 | |||||||
| Total Common Stocks (cost $1,401,720,882) | 1,711,916 | |||||||
See Notes to Schedule of Investments.
Schedule of Investments (unaudited)(concluded)
LORD ABBETT DEVELOPING GROWTH FUND, INC.October 31, 2019
| Investments | Principal Amount (000) | Fair Value (000) | ||||||
| SHORT-TERM INVESTMENT 3.33% | ||||||||
| Repurchase Agreement | ||||||||
| Repurchase Agreement dated 10/31/2019, 0.85% due 11/1/2019 with Fixed Income Clearing Corp. collateralized by $60,575,000 of U.S. Treasury Note at 1.875% due 3/31/2022; value: $61,000,842; proceeds: $59,804,876 (cost $59,803,464) | $ | 59,803 | $ | 59,803 | ||||
| Total Investments in Securities 98.69% (cost $1,461,524,346) | 1,771,719 | |||||||
| Cash and Other Assets in Excess of Liabilities 1.31% | 23,469 | |||||||
| Net Assets 100.00% | $ | 1,795,188 | ||||||
| ADR | American Depositary Receipt. |
| * | Non-income producing security. |
| (a) | Foreign security traded in U.S. dollars. |
The following is a summary of the inputs used as of October 31, 2019 in valuing the Fund’s investments carried at fair value(1):
| Investment Type(2) | Level 1 (000) | Level 2 (000) | Level 3 (000) | Total (000) | ||||||||||||
| Common Stocks | $ | 1,711,916 | $ | — | $ | — | $ | 1,711,916 | ||||||||
| Short-Term Investment | ||||||||||||||||
| Repurchase Agreement | — | 59,803 | — | 59,803 | ||||||||||||
| Total | $ | 1,711,916 | $ | 59,803 | $ | — | $ | 1,771,719 | ||||||||
| (1) | Refer to Note 2(b) for a description of fair value measurements and the three-tier hierarchy of inputs. |
| (2) | See Schedule of Investments for fair values in each industry and identification of foreign issuers and/or geography. |
See Notes to Schedule of Investments.
1. ORGANIZATION
Lord Abbett Developing Growth Fund, Inc. (the “Fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as a diversified, open-end management investment company. The Fund was incorporated under Maryland law on August 21, 1978. The Fund’s predecessor corporation was organized on July 11, 1973.
The Fund’s investment objective is long-term growth of capital through a diversified and actively managed portfolio consisting of developing growth companies, many of which are traded over the counter.
2. SIGNIFICANT ACCOUNTING POLICIES
| (a) | Investment Valuation-Under procedures approved by the Fund’s Board of Directors (the “Board”), Lord, Abbett & Co. LLC (“Lord Abbett”), the Fund’s investment manager, has formed a Pricing Committee to administer the pricing and valuation of portfolio investments and to ensure that prices utilized reasonably reflect fair value. Among other things, these procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value. |
| Securities actively traded on any recognized U.S. or non-U.S. exchange or on The NASDAQ Stock Market LLC are valued at the last sale price or official closing price on the exchange or system on which they are principally traded. Events occurring after the close of trading on non-U.S. exchanges may result in adjustments to the valuation of foreign securities to reflect their fair value as of the close of regular trading on the New York Stock Exchange. The Fund may utilize an independent fair valuation service in adjusting the valuations of foreign securities. Unlisted equity securities are valued at the last quoted sale price or, if no sale price is available, at the mean between the most recently quoted bid and asked prices. | |
| Securities for which prices are not readily available are valued at fair value as determined by the Pricing Committee. The Pricing Committee considers a number of factors, including observable and unobservable inputs, when arriving at fair value. The Pricing Committee may use related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information to determine the fair value of portfolio investments. The Board or a designated committee thereof regularly reviews fair value determinations made by the Pricing Committee and may employ techniques such as reviewing related market activity, reviewing inputs and assumptions, and retrospectively comparing prices of subsequent purchases and sales transactions to fair value determinations made by the Pricing Committee. | |
| Short-term securities with 60 days or less remaining to maturity are valued using the amortized cost method, which approximates fair value. | |
| (b) | Fair Value Measurements-Fair value is defined as the price that the Fund would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk - for example, the risk inherent in a particular valuation technique used to measure fair value (such as a pricing model) and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy classification is determined based on the lowest level of inputs that is significant to the fair value measurement, and is summarized in the three broad Levels listed below: |
| · | Level 1 - | unadjusted quoted prices in active markets for identical investments; | |
| · | Level 2 - | other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.); and | |
| · | Level 3 - | significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). |
| A summary of inputs used in valuing the Fund’s investments as of October 31, 2019 and, if applicable, Level 3 rollforwards for the period then ended is included in the Fund’s Schedule of Investments. | |
| Changes in valuation techniques may result in transfers into or out of an assigned level within the three-tier hierarchy. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. |
3. FEDERAL TAX INFORMATION
It is the policy of the Fund to meet the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all taxable income and capital gains to its shareholders. Therefore, no income tax provision is required.
The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s filed U.S. federal tax returns remains open generally three years after the filing of the tax return. The statutes of limitations on the Fund’s, state and local tax returns may remain open for an additional year depending upon the jurisdiction.