Lord Abbett
Quarterly Portfolio Holdings Report
Lord Abbett
Developing Growth Fund
For the period ended April 30, 2022
Schedule of Investments (unaudited)
April 30, 2022
Investments | Shares | Fair Value | ||||||
LONG-TERM INVESTMENTS 98.95% | ||||||||
COMMON STOCKS 98.95% | ||||||||
Aerospace & Defense 2.60% | ||||||||
AeroVironment, Inc.* | 315,636 | $ | 25,351,883 | |||||
Axon Enterprise, Inc.* | 250,708 | 28,129,438 | ||||||
Parsons Corp.* | 625,102 | 23,085,017 | ||||||
Total | 76,566,338 | |||||||
Banks 2.81% | ||||||||
Customers Bancorp, Inc.* | 633,861 | 26,666,532 | ||||||
Glacier Bancorp, Inc. | 423,955 | 19,400,181 | ||||||
PacWest Bancorp | 503,375 | 16,556,004 | ||||||
Popular, Inc. | 256,071 | 19,970,977 | ||||||
Total | 82,593,694 | |||||||
Beverages 0.56% | ||||||||
Duckhorn Portfolio, Inc. (The)* | 854,042 | 16,585,496 | ||||||
Biotechnology 10.57% | ||||||||
Alkermes plc (Ireland)*(a) | 550,584 | 15,884,348 | ||||||
BioCryst Pharmaceuticals, Inc.* | 2,451,869 | 22,777,863 | ||||||
Biohaven Pharmaceutical Holding Co. Ltd.* | 260,052 | 23,188,837 | ||||||
Cerevel Therapeutics Holdings, Inc.* | 821,620 | 24,057,034 | ||||||
Cytokinetics, Inc.* | 1,190,261 | 47,455,706 | ||||||
Intellia Therapeutics, Inc.* | 311,192 | 15,257,744 | ||||||
Karuna Therapeutics, Inc.* | 228,845 | 25,507,064 | ||||||
Krystal Biotech, Inc.* | 810,139 | 49,102,525 | ||||||
Mirati Therapeutics, Inc.* | 171,683 | 10,608,292 | ||||||
Sarepta Therapeutics, Inc.* | 264,773 | 19,148,383 | ||||||
SpringWorks Therapeutics, Inc.* | 138,355 | 5,936,813 | ||||||
Ultragenyx Pharmaceutical, Inc.* | 268,663 | 18,991,787 | ||||||
Xenon Pharmaceuticals, Inc. (Canada)*(a) | 1,175,384 | 33,228,106 | ||||||
Total | 311,144,502 |
Investments | Shares | Fair Value | ||||||
Capital Markets 0.90% | ||||||||
Piper Sandler Cos. | 229,891 | $ | 26,432,867 | |||||
Chemicals 2.30% | ||||||||
Balchem Corp. | 253,652 | 31,249,927 | ||||||
Livent Corp.* | 1,712,081 | 36,570,050 | ||||||
Total | 67,819,977 | |||||||
Commercial Services & Supplies 2.06% | ||||||||
Clean Harbors, Inc.* | 230,929 | 24,231,380 | ||||||
Tetra Tech, Inc. | 260,737 | 36,315,449 | ||||||
Total | 60,546,829 | |||||||
Communications Equipment 2.73% | ||||||||
Calix, Inc.* | 1,445,871 | 57,704,712 | ||||||
Lumentum Holdings, Inc.* | 279,074 | 22,663,599 | ||||||
Total | 80,368,311 | |||||||
Construction & Engineering 2.20% | ||||||||
Ameresco, Inc. Class A* | 511,135 | 25,781,649 | ||||||
Comfort Systems USA, Inc. | 462,444 | 39,039,523 | ||||||
Total | 64,821,172 | |||||||
Construction Materials 1.10% | ||||||||
Eagle Materials, Inc. | 262,622 | 32,386,545 | ||||||
Diversified Consumer Services 0.78% | ||||||||
Chegg, Inc.* | 283,856 | 7,022,598 | ||||||
Duolingo, Inc.*(b) | 184,058 | 15,915,495 | ||||||
Total | 22,938,093 | |||||||
Electronic Equipment, Instruments & Components 2.04% | ||||||||
II-VI, Inc.* | 549,158 | 33,613,961 | ||||||
Littelfuse, Inc. | 114,604 | 26,272,967 | ||||||
Total | 59,886,928 | |||||||
Energy Equipment & Services 0.33% | ||||||||
MELI Kaszek Pioneer Corp. Class A* | 961,552 | 9,807,830 |
See Notes to Schedule of Investments. | 1 |
Schedule of Investments (unaudited)(continued)
April 30, 2022
Investments | Shares | Fair Value | ||||||
Food & Staples Retailing 1.04% | ||||||||
BJ’s Wholesale Club Holdings, Inc.* | 346,989 | $ | 22,328,742 | |||||
Grocery Outlet Holding Corp.* | 246,275 | 8,292,079 | ||||||
Total | 30,620,821 | |||||||
Food Products 1.68% | ||||||||
Simply Good Foods Co. (The)* | 1,188,718 | 49,510,105 | ||||||
Health Care Equipment & Supplies 10.76% | ||||||||
Axonics, Inc.* | 882,220 | 45,716,640 | ||||||
Envista Holdings Corp.* | 527,147 | 20,885,564 | ||||||
Figs, Inc. Class A* | 841,551 | 13,178,689 | ||||||
Inari Medical, Inc.* | 375,540 | 30,306,078 | ||||||
iRhythm Technologies, Inc.* | 456,338 | 56,298,419 | ||||||
Lantheus Holdings, Inc.* | 1,011,378 | 67,165,613 | ||||||
Shockwave Medical, Inc.* | 288,745 | 43,638,032 | ||||||
Tandem Diabetes Care, Inc.* | 406,906 | 39,258,291 | ||||||
Total | 316,447,326 | |||||||
Health Care Technology 2.23% | ||||||||
Inspire Medical Systems, Inc.* | 318,399 | 65,513,778 | ||||||
Hotels, Restaurants & Leisure 5.06% | ||||||||
Marriott Vacations Worldwide Corp. | 200,349 | 29,918,116 | ||||||
Papa John’s International, Inc. | 361,061 | 32,874,604 | ||||||
Planet Fitness, Inc. Class A* | 782,716 | 62,640,761 | ||||||
SeaWorld Entertainment, Inc.* | 348,274 | 23,487,599 | ||||||
Total | 148,921,080 | |||||||
Household Durables 1.28% | ||||||||
Helen of Troy Ltd.* | 72,027 | 15,450,512 | ||||||
Sonos, Inc.* | 968,220 | 22,094,780 | ||||||
Total | 37,545,292 |
Investments | Shares | Fair Value | ||||||
Information Technology Services 4.78% | ||||||||
DigitalOcean Holdings, Inc.* | 241,974 | $ | 9,541,035 | |||||
Endava plc ADR* | 474,994 | 47,784,397 | ||||||
Flywire Corp.* | 549,875 | 16,776,686 | ||||||
Globant SA (Uruguay)*(a) | 170,682 | 36,865,605 | ||||||
Shift4 Payments, Inc. Class A* | 268,822 | 14,102,402 | ||||||
TaskUS, Inc. Class A* | 543,098 | 15,690,101 | ||||||
Total | 140,760,226 | |||||||
Interactive Media & Services 3.14% | ||||||||
Bumble, Inc. Class A* | 900,544 | 21,604,051 | ||||||
Cargurus, Inc.* | 1,076,034 | 35,164,791 | ||||||
ZipRecruiter, Inc. Class A* | 1,579,982 | 35,565,395 | ||||||
Total | 92,334,237 | |||||||
Internet & Direct Marketing Retail 0.51% | ||||||||
Fiverr International Ltd. (Israel)*(a)(b) | 281,309 | 14,979,704 | ||||||
Leisure Products 0.88% | ||||||||
Callaway Golf Co.* | 1,181,393 | 25,919,763 | ||||||
Machinery 4.57% | ||||||||
Chart Industries, Inc.* | 246,957 | 41,691,281 | ||||||
Evoqua Water Technologies Corp.* | 1,526,810 | 63,652,709 | ||||||
RBC Bearings, Inc.* | 172,957 | 29,117,311 | ||||||
Total | 134,461,301 | |||||||
Media 0.95% | ||||||||
Integral Ad Science Holding Corp.* | 1,189,478 | 14,047,735 | ||||||
PubMatic, Inc. Class A*(c) | 614,646 | 13,872,560 | ||||||
Total | 27,920,295 | |||||||
Personal Products 0.85% | ||||||||
Inter Parfums, Inc. | 307,959 | 25,169,489 | ||||||
Pharmaceuticals 2.29% | ||||||||
Intra-Cellular Therapies, Inc.* | 1,331,485 | 67,386,456 |
2 | See Notes to Schedule of Investments. |
Schedule of Investments (unaudited)(continued)
April 30, 2022
Investments | Shares | Fair Value | ||||||
Professional Services 0.56% | ||||||||
Kforce, Inc. | 233,633 | $ | 16,365,992 | |||||
Road & Rail 0.54% | ||||||||
Saia, Inc.* | 77,344 | 15,929,770 | ||||||
Semiconductors & Semiconductor Equipment 8.75% | ||||||||
CEVA, Inc.* | 507,542 | 18,444,076 | ||||||
Diodes, Inc.* | 607,476 | 44,363,972 | ||||||
MKS Instruments, Inc. | 190,913 | 21,760,264 | ||||||
Rambus, Inc.* | 1,098,818 | 27,371,557 | ||||||
Semtech Corp.* | 840,938 | 50,119,905 | ||||||
Silicon Motion Technology Corp. ADR | 404,110 | 30,684,072 | ||||||
SiTime Corp.* | 216,637 | 36,518,499 | ||||||
Synaptics, Inc.* | 189,552 | 28,137,099 | ||||||
Total | 257,399,444 | |||||||
Software 13.64% | ||||||||
Anaplan, Inc.* | 465,526 | 30,254,535 | ||||||
Avalara, Inc.* | 428,855 | 32,623,000 | ||||||
Clear Secure, Inc. Class A*(b) | 1,385,193 | 42,137,571 | ||||||
CyberArk Software Ltd. (Israel)*(a) | 259,028 | 40,703,660 | ||||||
Elastic NV* | 416,878 | 31,741,091 | ||||||
Five9, Inc.* | 287,969 | 31,705,387 | ||||||
Gitlab, Inc. Class A*(b) | 469,071 | 22,482,573 | ||||||
Jamf Holding Corp.* | 1,197,355 | 36,878,534 | ||||||
Procore Technologies, Inc.* | 444,455 | 24,653,919 | ||||||
Rapid7, Inc.* | 589,993 | 56,356,131 | ||||||
Sprout Social, Inc. Class A* | 426,174 | 26,115,942 | ||||||
Tenable Holdings, Inc.* | 462,122 | 25,522,998 | ||||||
Total | 401,175,341 |
Investments | Shares | Fair Value | ||||||
Specialty Retail 2.45% | ||||||||
Boot Barn Holdings, Inc.* | 386,628 | $ | 34,819,717 | |||||
Dick’s Sporting Goods, Inc. | 325,335 | 31,368,801 | ||||||
Warby Parker, Inc. Class A*(b) | 248,662 | 5,791,338 | ||||||
Total | 71,979,856 | |||||||
Textiles, Apparel & Luxury Goods 0.72% | ||||||||
Crocs, Inc.* | 320,529 | 21,292,742 | ||||||
Trading Companies & Distributors 0.61% | ||||||||
Rush Enterprises, Inc. Class A | 351,287 | 17,873,483 | ||||||
Wireless Telecommunication Services 0.68% | ||||||||
Gogo, Inc.*(b) | 1,086,732 | 20,006,736 | ||||||
Total Common Stocks (cost $3,039,760,306) | 2,911,411,819 | |||||||
Principal Amount | ||||||||
SHORT-TERM INVESTMENTS 2.77% | ||||||||
Repurchase Agreements 1.32% | ||||||||
Repurchase Agreement dated 4/29/2022, 0.00% due 5/2/2022 with Fixed Income Clearing Corp. collateralized by $23,626,100 of U.S. Treasury Inflation Indexed Note at 0.25% due 7/15/2029; $12,631,800 of U.S. Treasury Note at 2.375% due 5/15/2029; value: $39,600,767; proceeds: $38,824,234 (cost $38,824,234) | $ | 38,824,234 | 38,824,234 |
See Notes to Schedule of Investments. | 3 |
Schedule of Investments (unaudited)(concluded)
April 30, 2022
Investments | Shares | Fair Value | ||||||
Money Market Funds 1.30% | ||||||||
Fidelity Government Portfolio(d) (cost $38,369,808) | 38,369,808 | $ | 38,369,808 | |||||
Time Deposits 0.15% | ||||||||
CitiBank N.A.(d) (cost $4,263,312) | 4,263,312 | 4,263,312 | ||||||
Total Short-Term Investments (cost $81,457,354) | 81,457,354 | |||||||
Total Investments in Securities 101.72% (cost $3,121,217,660) | 2,992,869,173 | |||||||
Other Assets and Liabilities – Net (1.72)% | (50,728,200 | ) | ||||||
Net Assets 100.00% | $ | 2,942,140,973 |
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) | Affiliated issuer (holding represents 5% or more of the underlying issuer’s outstanding voting shares). (See Note 5). | |
(d) | Security was purchased with the cash collateral from loaned securities. |
The following is a summary of the inputs used as of April 30, 2022 in valuing the Fund’s investments carried at fair value(1):
Investment Type(2) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments | ||||||||||||||||
Common Stocks | ||||||||||||||||
Software | $ | 375,652,343 | $ | 25,522,998 | $ | – | $ | 401,175,341 | ||||||||
Remaining Industries | 2,510,236,478 | – | – | 2,510,236,478 | ||||||||||||
Short-Term Investments | ||||||||||||||||
Repurchase Agreements | – | 38,824,234 | – | 38,824,234 | ||||||||||||
Money Market Funds | 38,369,808 | – | – | 38,369,808 | ||||||||||||
Time Deposits | – | 4,263,312 | – | 4,263,312 | ||||||||||||
Total | $ | 2,924,258,629 | $ | 68,610,544 | $ | – | $ | 2,992,869,173 |
(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. The table above is presented by Investment Type. Industries are presented within an Investment Type should such Investment Type include securities classified as two or more levels within the three-tier fair value hierarchy. When applicable each Level 3 security is identified on the Schedule of Investments along with the valuation technique utilized. | |
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.
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. When valuing foreign equity securities that meet certain criteria, the Board has approved the use of an independent fair valuation service that values such securities to reflect market trading that occurs after the close of the applicable foreign markets of comparable securities or other instruments that correlate to the fair-valued 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. | |
Investments in open-end money market mutual funds are valued at their NAV as of the close of each business day. 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 |
5
Notes to Schedule of Investments (unaudited)(continued)
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 April 30, 2022 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 returns. The statute of limitations on the Fund’s, state and local tax returns may remain open for an additional year depending upon jurisdiction.
4. | SECURITIES LENDING AGREEMENT |
The Fund has established a securities lending agreement with Citibank, N.A. 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
6
Notes to Schedule of Investments (unaudited)(continued)
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 becomes 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 Citibank, N.A.; the Fund will bear the risk of loss with respect to the investment of the cash collateral. The advantage of such loans is that the Fund continue 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, 2022, the market value of securities and collateral received for the fund was as follows:
Market Value of Securities Loaned | Collateral Received | |
$39,931,940 | $42,633,120 |
5. | TRANSACTIONS WITH AFFILIATED ISSUERS |
An affiliated issuer is one in which a Fund has ownership of at least 5% of the outstanding voting securities of the underlying issuer at any point during the fiscal year or any company which is under common ownership or control. The Fund had the following transactions with affiliated issuers during the period ended April 30, 2022:
Affiliated Issuer | Value at 7/31/2021 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Appreciation (Depreciation) | Value at 4/30/2022 | Shares as of 4/30/2022 | Dividend Income | ||||||||
Pubmatic Inc.(a) | $ – | $46,513,275 | $(17,447,718 | ) | $(11,060,122 | ) | $(4,132,875 | ) | $13,872,560 | 614,646 | $ – |
(a) | Not an affiliated issuer at July 31, 2021. |
7
QPHR-DEV-3Q
(06/22)