Lord Abbett
Quarterly Portfolio Holdings Report
Lord Abbett
Developing Growth Fund
For the period ended April 30, 2021
Schedule of Investments (unaudited)
April 30, 2021
Investments | Shares | Fair Value (000) | ||||||
COMMON STOCKS 98.65% | ||||||||
Aerospace & Defense 1.68% | ||||||||
Axon Enterprise, Inc.* | 597,707 | $ | 90,618 | |||||
Auto Components 0.76% | ||||||||
Fox Factory Holding Corp.* | 266,007 | 40,760 | ||||||
Banks 3.13% | ||||||||
Silvergate Capital Corp. Class A* | 572,905 | 61,427 | ||||||
Western Alliance Bancorp | 1,023,114 | 107,498 | ||||||
Total | 168,925 | |||||||
Biotechnology 16.23% | ||||||||
Acceleron Pharma, Inc.* | 411,239 | 51,393 | ||||||
Arena Pharmaceuticals, Inc.* | 588,569 | 40,393 | ||||||
Blueprint Medicines Corp.* | 396,969 | 38,236 | ||||||
Bridgebio Pharma, Inc.* | 947,793 | 53,001 | ||||||
CareDx, Inc.* | 993,782 | 78,578 | ||||||
Insmed, Inc.* | 1,769,611 | 59,689 | ||||||
Intellia Therapeutics, Inc.* | 601,815 | 46,201 | ||||||
Iovance Biotherapeutics, Inc.* | 962,053 | 30,247 | ||||||
Karuna Therapeutics, Inc.* | 205,959 | 22,863 | ||||||
Krystal Biotech, Inc.* | 880,811 | 69,972 | ||||||
MacroGenics, Inc.* | 1,246,977 | 40,352 | ||||||
Mirati Therapeutics, Inc.* | 273,837 | 45,517 | ||||||
Natera, Inc.* | 898,154 | 98,815 | ||||||
Rocket Pharmaceuticals, Inc.* | 1,055,264 | 48,373 | ||||||
TG Therapeutics, Inc.* | 1,718,410 | 76,830 | ||||||
Turning Point Therapeutics, Inc.* | 499,430 | 38,072 | ||||||
Ultragenyx Pharmaceutical, Inc.* | 335,422 | 37,447 | ||||||
Total | 875,979 | |||||||
Building Products 1.90% | ||||||||
AZEK Co., Inc. (The)* | 1,171,087 | 56,540 | ||||||
Trex Co., Inc.* | 425,938 | 45,997 | ||||||
Total | 102,537 |
Investments | Shares | Fair Value (000) | ||||||
Capital Markets 1.05% | ||||||||
Open Lending Corp. Class A* | 1,449,682 | $ | 56,610 | |||||
Chemicals 1.63% | ||||||||
Amyris, Inc.* | 3,079,361 | 44,835 | ||||||
Balchem Corp. | 340,795 | 43,346 | ||||||
Total | 88,181 | |||||||
Communications Equipment 1.97% | ||||||||
Calix, Inc.* | 1,873,641 | 79,236 | ||||||
Lumentum Holdings, Inc.* | 317,127 | 26,972 | ||||||
Total | 106,208 | |||||||
Electrical Equipment 2.00% | ||||||||
Generac Holdings, Inc.* | 164,713 | 53,359 | ||||||
Sunrun, Inc.* | 577,582 | 28,301 | ||||||
TPI Composites, Inc.* | 497,984 | 26,468 | ||||||
Total | 108,128 | |||||||
Electronic Equipment, Instruments & Components 1.04% | ||||||||
Littelfuse, Inc. | 212,659 | 56,406 | ||||||
Food Products 0.96% | ||||||||
Freshpet, Inc.* | 281,004 | 51,935 | ||||||
Health Care Equipment & Supplies 7.52% | ||||||||
Axonics, Inc.* | 1,493,203 | 93,967 | ||||||
Inari Medical, Inc.* | 790,020 | 90,291 | ||||||
Inmode Ltd. (Israel)*(a) | 634,806 | 54,803 | ||||||
Nevro Corp.* | 207,942 | 35,935 | ||||||
Shockwave Medical, Inc.* | 590,417 | 96,510 | ||||||
SI-BONE, Inc.* | 977,529 | 34,702 | ||||||
Total | 406,208 | |||||||
Health Care Technology 2.39% | ||||||||
Inspire Medical Systems, Inc.* | 544,262 | 128,892 | ||||||
Hotels, Restaurants & Leisure 3.10% | ||||||||
Marriott Vacations Worldwide Corp.* | 225,673 | 40,086 | ||||||
Penn National Gaming, Inc.* | 384,053 | 34,227 |
See Notes to Schedule of Investments. | 1 |
Schedule of Investments (unaudited)(continued)
April 30, 2021
Investments | Shares | Fair Value (000) | ||||||
Hotels, Restaurants & Leisure (continued) | ||||||||
Planet Fitness, Inc. Class A* | 664,436 | $ | 55,806 | |||||
Shake Shack, Inc. Class A* | 340,959 | 37,079 | ||||||
Total | 167,198 | |||||||
Household Durables 5.84% | ||||||||
Helen of Troy Ltd.* | 129,660 | 27,385 | ||||||
LGI Homes, Inc.* | 658,011 | 109,085 | ||||||
Sonos, Inc.* | 2,595,231 | 103,887 | ||||||
Tempur Sealy International, Inc. | 1,957,382 | 74,655 | ||||||
Total | 315,012 | |||||||
Information Technology Services 4.96% | ||||||||
Digitalocean Holdings, Inc.* | 525,214 | 22,884 | ||||||
Endava plc ADR* | 841,934 | 76,229 | ||||||
Globant SA (Argentina)*(a) | 279,694 | 64,100 | ||||||
Shift4 Payments, Inc. Class A* | 1,059,351 | 104,759 | ||||||
Total | 267,972 | |||||||
Insurance 0.52% | ||||||||
Trupanion, Inc.* | 345,070 | 27,985 | ||||||
Interactive Media & Services 0.55% | ||||||||
Eventbrite, Inc. Class A* | 1,269,101 | 29,913 | ||||||
Internet & Direct Marketing Retail 1.66% | ||||||||
Fiverr International Ltd. (Israel)*(a) | 118,431 | 24,642 | ||||||
Magnite, Inc.* | 662,052 | 26,515 | ||||||
RealReal, Inc. (The)* | 1,559,194 | 38,621 | ||||||
Total | 89,778 | |||||||
Internet Software & Services 1.66% | ||||||||
Cardlytics, Inc.* | 652,560 | 89,747 | ||||||
Leisure Equipment & Products 0.59% | ||||||||
Latham Group, Inc.* | 1,229,936 | 31,978 | ||||||
Leisure Products 2.87% | ||||||||
Malibu Boats, Inc. Class A* | 943,261 | 78,630 | ||||||
YETI Holdings, Inc.* | 892,537 | 76,241 | ||||||
Total | 154,871 |
Investments | Shares | Fair Value (000) | ||||||
Life Sciences Tools & Services 2.92% | ||||||||
Berkeley Lights, Inc.* | 255,704 | $ | 12,558 | |||||
NanoString Technologies, Inc.* | 415,784 | 33,125 | ||||||
Olink Holding AB ADR*(b) | 358,301 | 12,612 | ||||||
Pacific Biosciences of California, Inc.* | 900,227 | 26,872 | ||||||
Quanterix Corp.* | 759,823 | 46,456 | ||||||
Repligen Corp.* | 122,461 | 25,926 | ||||||
Total | 157,549 | |||||||
Machinery 5.07% | ||||||||
Altra Industrial Motion Corp. | 879,124 | 51,877 | ||||||
Chart Industries, Inc.* | 580,076 | 93,178 | ||||||
Evoqua Water Technologies Corp.* | 1,795,245 | 51,308 | ||||||
Hydrofarm Holdings Group, Inc.*(b) | 707,153 | 46,460 | ||||||
Westport Fuel System, Inc. (Canada)*(a)(b) | 4,493,674 | 30,692 | ||||||
Total | 273,515 | |||||||
Pharmaceuticals 0.97% | ||||||||
Intra-Cellular Therapies, Inc.* | 1,520,464 | 52,350 | ||||||
Professional Services 0.87% | ||||||||
Upwork, Inc.* | 1,021,252 | 47,039 | ||||||
Real Estate Management & Development 0.78% | ||||||||
Redfin Corp.* | 592,100 | 41,909 | ||||||
Semiconductors & Semiconductor Equipment 6.98% | ||||||||
Brooks Automation, Inc. | 699,437 | 70,874 | ||||||
CEVA, Inc.* | 1,009,338 | 55,958 | ||||||
Diodes, Inc.* | 878,123 | 67,449 | ||||||
MKS Instruments, Inc. | 519,819 | 93,105 | ||||||
Semtech Corp.* | 920,210 | 62,335 | ||||||
SunPower Corp.*(b) | 1,047,395 | 26,907 | ||||||
Total | 376,628 |
2 | See Notes to Schedule of Investments. |
Schedule of Investments (unaudited)(continued)
April 30, 2021
Investments | Shares | Fair Value (000) | ||||||
Software 9.43% | ||||||||
Appian Corp.*(b) | 269,614 | $ | 32,672 | |||||
Blackline, Inc.* | 230,462 | 26,747 | ||||||
Cerence, Inc.* | 313,918 | 30,265 | ||||||
Digital Turbine, Inc.* | 821,762 | 61,986 | ||||||
DoubleVerify Holdings, Inc.* | 524,193 | 18,457 | ||||||
Everbridge, Inc.* | 207,895 | 27,590 | ||||||
Five9, Inc.* | 381,185 | 71,651 | ||||||
Jamf Holding Corp.* | 903,149 | 32,983 | ||||||
Lightspeed POS, Inc. (Canada)*(a) | 569,364 | 39,747 | ||||||
Olo, Inc. Class A*(b) | 454,611 | 13,120 | ||||||
ON24, Inc.* | 334,677 | 14,726 | ||||||
Q2 Holdings, Inc.* | 255,102 | 26,536 | ||||||
Rapid7, Inc.* | 654,524 | 53,180 | ||||||
Sprout Social, Inc. Class A* | 898,451 | 59,558 | ||||||
Total | 509,218 | |||||||
Specialty Retail 3.61% | ||||||||
At Home Group, Inc.* | 938,834 | 29,648 | ||||||
National Vision Holdings, Inc.* | 1,281,977 | 64,625 | ||||||
RH*(b) | 146,228 | 100,608 | ||||||
Total | 194,881 | |||||||
Textiles, Apparel & Luxury Goods 3.00% | ||||||||
Crocs, Inc.* | 956,725 | 95,787 | ||||||
Deckers Outdoor Corp.* | 196,076 | 66,313 | ||||||
Total | 162,100 | |||||||
Trading Companies & Distributors 1.01% | ||||||||
Rush Enterprises, Inc. Class A | 1,105,857 | 54,585 | ||||||
Total Common Stocks (cost $3,811,743,897) | 5,325,615 |
Investments | Principal Amount (000) | Fair Value (000) | ||||||
SHORT-TERM INVESTMENTS 1.98% | ||||||||
Repurchase Agreement 1.00% | ||||||||
Repurchase Agreement dated 4/30/2021, 0.00% due 5/3/2021 with Fixed Income Clearing Corp. collateralized by $56,171,400 of U.S. Treasury Note at 0.375% due 11/30/2025 value: $55,251,629; proceeds: $54,168,221 (cost $54,168,221) | $ | 54,168 | $ | 54,168 | ||||
Shares | ||||||||
Money Market Fund 0.88% | ||||||||
Fidelity Government Portfolio(c) (cost $47,532,938) | 47,532,938 | 47,533 | ||||||
Time Deposit 0.10% | ||||||||
CitiBank N.A.(c) (cost $5,281,438) | 5,281,438 | 5,281 | ||||||
Total Short-Term Investments (cost $106,982,597) | 106,982 | |||||||
Total Investments in Securities 100.63% (cost $3,918,726,494) | 5,432,597 | |||||||
Liabilities in Excess of Other Assets (0.63)% | (34,080 | ) | ||||||
Net Assets 100.00% | $ | 5,398,517 |
ADR | American Depositary Receipt. | |
* | Non-income producing security. | |
(a) | Foreign security traded in U.S. dollars. | |
(b) | All or a portion of this security is temporarily on loan to unaffiliated broker/dealers. | |
(c) | Security was purchased with the cash collateral from loaned securities. |
See Notes to Schedule of Investments. | 3 |
Schedule of Investments (unaudited)(concluded)
April 30, 2021
The following is a summary of the inputs used as of April 30, 2021 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 | $ | 5,325,615 | $ | – | $ | – | $ | 5,325,615 | ||||||||
Short-Term Investments | ||||||||||||||||
Repurchase Agreement | – | 54,168 | – | 54,168 | ||||||||||||
Money Market Fund | 47,533 | – | – | 47,533 | ||||||||||||
Time Deposit | – | 5,281 | – | 5,281 | ||||||||||||
Total | $ | 5,373,148 | $ | 59,449 | $ | – | $ | 5,432,597 |
(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. | |
A reconciliation of Level 3 investments is presented when the Fund has a material amount of Level 3 investments at the beginning or end of the period in relation to the Fund’s net assets. |
4 | See Notes to Schedule of Investments. |
Notes to Schedule of Investments (unaudited)
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.
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 |
5
Notes to Schedule of Investments (unaudited)(continued)
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 April 30, 2021 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.
4. | SECURITIES LENDING AGREEMENT |
The Fund has established a securities lending agreement with Citibank, N.A. (the “agent”) for the lending of securities to qualified brokers in exchange for securities or cash collateral equal to at least the market value of securities loaned, plus interest, if applicable. Cash collateral is invested in an approved money market fund. In accordance with the Fund’s securities lending agreement, the market value of securities on loan is determined each day at the close of business and any additional collateral required to cover the value of securities on loan is delivered to the Fund on the next business day. As with other extensions of credit, the Fund may experience a delay in the recovery of its securities or incur a loss should the borrower of the securities breach its agreement with the Fund or become insolvent at a time when the collateral is insufficient to cover the cost of repurchasing securities on loan.
The initial collateral received by the Fund is required to have a value equal to at least 100% of the market value of the securities loaned. The collateral must be marked-to-market daily to cover increases in the market value of the securities loaned (or potentially a decline in the value of the collateral). In general, the risk of borrower default will be borne by the Fund’s agent; the Fund will bear the risk of loss with respect to the investment of the cash collateral. The advantage of such
6
Notes to Schedule of Investments (unaudited)(concluded)
loans is that the Fund continues to receive income on loaned securities while receiving a portion of any securities lending fees and earning returns on the cash amounts which may be reinvested for the purchase of investments in securities.
As of April 30, 2021, the market value of securities loaned and collateral received for the Fund was as follows:
Market Value of | |||
Securities Loaned | Collateral Received | ||
$ 50,169,248 | $ 52,814,376 |
7
QPHR-DEV-3Q
(4/21)