T.
ROWE
PRICE
Capital
Appreciation
Fund
March
31,
2021
(Unaudited)
1
Portfolio
of
Investments
‡
Shares/Par
$
Value
(Cost
and
value
in
$000s)
‡
ASSET-BACKED
SECURITIES
0.3%
Domino's
Pizza
Master
Issuer
Series 2017-1A,
Class
A23
4.118%,
7/25/47 (1)
39,454,750
42,476
Domino's
Pizza
Master
Issuer
Series 2018-1A,
Class
A2I
4.116%,
7/25/48 (1)
34,559,513
36,315
Domino's
Pizza
Master
Issuer
Series 2019-1A,
Class
A2
3.668%,
10/25/49 (1)
18,389,250
19,329
Wendy's
Funding
Series 2018-1A,
Class
A2I
3.573%,
3/15/48 (1)
24,157,508
24,831
Total
Asset-Backed
Securities
(Cost
$115,696)
122,951
BANK
LOANS
8.9%
(2)
ADMI,
FRN
1M
USD
LIBOR
+
3.25%,
3.75%,
12/23/27 (3)
45,235,000
44,795
Alliant
Holdings
Intermediate,
FRN
1M
USD
LIBOR
+
3.25%,
3.359%,
5/9/25
38,159,754
37,660
Alliant
Holdings
Intermediate,
FRN
1M
USD
LIBOR
+
3.25%,
3.359%,
5/9/25
31,360,606
30,922
Alliant
Holdings
Intermediate,
FRN
1M
USD
LIBOR
+
3.75%,
4.25%,
11/5/27
43,980,542
43,847
Applied
Systems,
FRN
1M
USD
LIBOR
+
3.00%,
3.524%,
9/19/24 (3)
39,981,530
39,802
Applied
Systems,
FRN
1M
USD
LIBOR
+
5.50%,
6.25%,
9/19/25 (3)
10,030,000
10,080
Ascend
Learning,
FRN
3M
USD
LIBOR
+
3.00%,
4.00%,
7/12/24
3,457,088
3,439
Azalea
Topco,
FRN
1M
USD
LIBOR
+
4.00%,
4.75%,
7/24/26
17,640,000
17,648
Azalea
TopCo
,
FRN
1M
USD
LIBOR
+
3.50%,
3.712%,
7/24/26 (3)
106,054,867
105,047
Camelot
Finance,
FRN
1M
USD
LIBOR
+
3.00%,
4.00%,
10/30/26
94,637,813
94,543
CCC
Information
Services,
FRN
1M
USD
LIBOR
+
3.00%,
4.00%,
4/29/24
405,695,245
405,115
CPI
Holdco,
FRN
1M
USD
LIBOR
+
4.00%,
4.109%,
11/4/26
20,353,515
20,323
Delta
2,
FRN
3M
USD
LIBOR
+
2.50%,
3.50%,
2/1/24 (3)
177,456,310
175,515
Dentalcorp
Health
Services
ULC,
FRN
1M
USD
LIBOR
+
3.75%,
4.75%,
6/6/25 (3)
32,070,663
31,760
T.
ROWE
PRICE
Capital
Appreciation
Fund
2
Shares/Par
$
Value
(Cost
and
value
in
$000s)
Dino
Grandparent,
FRN
1M
USD
LIBOR
+
2.25%,
2.375%,
2/20/23 (4)
76,125,000
74,222
Eagle
Broadband
Investments,
FRN
1M
USD
LIBOR
+
3.00%,
3.75%,
11/12/27
13,526,100
13,481
Filtration
Group,
FRN
1M
USD
LIBOR
+
3.75%,
4.50%,
3/29/25
9,581,850
9,565
Filtration
Group,
FRN
3M
EURIBOR
+
3.50%,
3.50%,
3/31/25
(EUR)
51,592,765
60,188
Filtration
Group,
FRN
3M
USD
LIBOR
+
3.00%,
3.109%,
3/31/25
14,513,292
14,292
Four
Seasons
Hotels,
FRN
3M
USD
LIBOR
+
2.00%,
2.109%,
11/30/23
26,580,636
26,493
Gardner
Denver,
FRN
1M
USD
LIBOR
+
2.75%,
2.859%,
3/1/27
10,694,188
10,663
HB
Fuller,
FRN
3M
USD
LIBOR
+
2.00%,
2.111%,
10/20/24
9,833,841
9,787
Heartland
Dental,
FRN
3M
USD
LIBOR
+
3.50%,
3.609%,
4/30/25 (3)
132,633,028
130,206
Heartland
Dental,
FRN
3M
USD
LIBOR
+
4.50%,
4.609%,
4/30/25
5,681,015
5,603
HUB
International,
FRN
1M
USD
LIBOR
+
3.00%,
3.215%,
4/25/25 (3)
618,765,274
609,626
HUB
International,
FRN
1M
USD
LIBOR
+
3.25%,
4.00%,
4/25/25 (3)
251,975,683
251,618
Hyperion
Refinance
Sarl
,
FRN
1M
USD
LIBOR
+
3.75%,
4.75%,
11/12/27
43,506,310
43,470
IRB
Holding,
FRN
1M
USD
LIBOR
+
3.25%,
4.25%,
12/15/27
37,251,638
37,077
Life
Time,
FRN
1M
USD
LIBOR
+
4.75%,
5.75%,
12/16/24
79,347,019
79,149
Loire
Finco
Luxembourg,
FRN
1M
USD
LIBOR
+
3.00%,
3.109%,
1/24/27
106,561,774
105,185
Mileage
Plus
Holdings,
FRN
1M
USD
LIBOR
+
5.25%,
6.25%,
6/21/27
219,410,066
232,884
PetVet
Care
Centers,
FRN
1M
USD
LIBOR
+
3.50%,
4.25%,
2/14/25 (3)
31,839,739
31,712
PetVet
Care
Centers,
FRN
3M
USD
LIBOR
+
2.75%,
2.859%,
2/14/25
9,739,547
9,571
PetVet
Care
Centers,
FRN
3M
USD
LIBOR
+
3.25%,
3.359%,
2/14/25
15,764,749
15,620
Prestige
Brands,
FRN
3M
USD
LIBOR
+
2.00%,
2.109%,
1/26/24
1,212,541
1,211
RealPage
,
FRN
1M
USD
LIBOR
+
3.25%,
2/18/28 (3)
76,830,000
76,435
RealPage
,
FRN
3M
USD
LIBOR
+
6.50%,
2/17/29 (3)(4)
6,300,000
6,458
T.
ROWE
PRICE
Capital
Appreciation
Fund
3
Shares/Par
$
Value
(Cost
and
value
in
$000s)
Ryan
Specialty
Group,
FRN
1M
USD
LIBOR
+
3.25%,
4.00%,
9/1/27
22,867,688
22,830
SeaWorld
Parks
&
Entertainment,
FRN
3M
USD
LIBOR
+
3.00%,
3.75%,
4/1/24
22,622,175
22,216
SkyMiles
IP,
FRN
3M
USD
LIBOR
+
3.75%,
4.75%,
10/20/27
90,160,000
94,578
Sunshine
Luxembourg
VII,
FRN
1M
USD
LIBOR
+
4.25%,
5.25%,
10/1/26
120,740,400
120,499
UKG,
FRN
1M
USD
LIBOR
+
3.25%,
4.00%,
5/4/26
510,029,082
510,029
UKG,
FRN
1M
USD
LIBOR
+
6.75%,
7.50%,
5/3/27
15,825,000
16,181
UKG,
FRN
3M
USD
LIBOR
+
3.75%,
3.859%,
5/4/26
13,854,025
13,830
USI,
FRN
1M
USD
LIBOR
+
3.25%,
3.453%,
12/2/26 (3)
101,162,745
100,096
USI,
FRN
3M
USD
LIBOR
+
3.00%,
3.203%,
5/16/24 (3)
195,219,745
192,885
Vertical
U.S.
Newco
,
FRN
1M
USD
LIBOR
+
4.25%,
4.478%,
7/30/27
145,639,065
145,858
Welbilt
,
FRN
3M
USD
LIBOR
+
2.50%,
2.609%,
10/23/25
15,800,000
15,089
Woof
Holdings,
FRN
1M
USD
LIBOR
+
3.75%,
4.50%,
12/21/27 (3)
18,740,000
18,646
Total
Bank
Loans
(Cost
$4,143,934)
4,187,749
BOND
MUTUAL
FUNDS
0.6%
T.
Rowe
Price
Institutional
Floating
Rate
Fund
–
Institutional
Class,
3.46% (5)(6)
29,195,933
284,368
Total
Bond
Mutual
Funds
(Cost
$283,914)
284,368
COMMON
STOCKS
68.8%
COMMUNICATION
SERVICES
5.0%
Interactive
Media
&
Services
5.0%
Alphabet,
Class
A (7)(8)
111,637
230,253
Alphabet,
Class
C (7)(8)
721,226
1,491,950
Facebook,
Class
A (7)(8)
2,144,185
631,527
Total
Communication
Services
2,353,730
CONSUMER
DISCRETIONARY
8.2%
Hotels,
Restaurants
&
Leisure
3.9%
Hilton
Worldwide
Holdings (7)(8)
2,121,248
256,501
Marriott
International,
Class
A (7)(8)
2,335,776
345,952
T.
ROWE
PRICE
Capital
Appreciation
Fund
4
Shares/Par
$
Value
(Cost
and
value
in
$000s)
Yum!
Brands (8)
11,221,824
1,213,977
1,816,430
Internet
&
Direct
Marketing
Retail
3.9%
Amazon.com (7)(8)
585,414
1,811,318
1,811,318
Specialty
Retail
0.4%
Ross
Stores (8)
1,635,569
196,121
196,121
Total
Consumer
Discretionary
3,823,869
CONSUMER
STAPLES
0.9%
Beverages
0.9%
Keurig
Dr
Pepper (8)
12,238,672
420,643
Total
Consumer
Staples
420,643
FINANCIALS
9.0%
Banks
4.1%
Bank
of
America (8)
13,334,101
515,897
PNC
Financial
Services
Group (8)
7,946,111
1,393,827
1,909,724
Capital
Markets
1.0%
CME
Group (8)
382,200
78,057
Intercontinental
Exchange (8)
3,592,310
401,189
479,246
Insurance
3.9%
Arthur
J
Gallagher
2,269,787
283,201
Marsh
&
McLennan
12,709,664
1,548,037
1,831,238
Total
Financials
4,220,208
HEALTH
CARE
10.5%
Health
Care
Equipment
&
Supplies
3.4%
Danaher (8)
5,479,547
1,233,337
Envista
Holdings (5)(7)
8,578,804
350,015
1,583,352
Health
Care
Providers
&
Services
5.0%
Humana (8)
3,029,981
1,270,319
UnitedHealth
Group (8)
2,866,890
1,066,684
2,337,003
Life
Sciences
Tools
&
Services
2.1%
PerkinElmer
3,149,425
404,040
T.
ROWE
PRICE
Capital
Appreciation
Fund
5
Shares/Par
$
Value
(Cost
and
value
in
$000s)
Thermo
Fisher
Scientific (8)
1,251,356
571,094
975,134
Total
Health
Care
4,895,489
INDUSTRIALS
&
BUSINESS
SERVICES
7.5%
Aerospace
&
Defense
0.4%
Teledyne
Technologies (7)(8)
470,046
194,435
194,435
Commercial
Services
&
Supplies
1.3%
Waste
Connections
5,617,773
606,607
606,607
Industrial
Conglomerates
4.9%
General
Electric (8)
146,207,010
1,919,698
Roper
Technologies (8)
900,397
363,166
2,282,864
Machinery
0.9%
Ingersoll
Rand (7)
9,063,283
446,004
446,004
Total
Industrials
&
Business
Services
3,529,910
INFORMATION
TECHNOLOGY
14.9%
Electronic
Equipment,
Instruments
&
Components
1.0%
TE
Connectivity
3,463,490
447,171
447,171
IT
Services
7.0%
Fiserv (7)
10,928,684
1,300,950
Global
Payments
3,835,261
773,112
Visa,
Class
A (8)
5,568,681
1,179,057
3,253,119
Semiconductors
&
Semiconductor
Equipment
0.4%
NXP
Semiconductors (8)
840,177
169,161
169,161
Software
6.5%
Microsoft (8)
10,338,527
2,437,515
salesforce.com (7)
2,782,300
589,486
3,027,001
Total
Information
Technology
6,896,452
UTILITIES
9.0%
Electric
Utilities
4.4%
American
Electric
Power (8)
16,683,920
1,413,128
Duke
Energy
13,195
1,274
T.
ROWE
PRICE
Capital
Appreciation
Fund
6
Shares/Par
$
Value
(Cost
and
value
in
$000s)
Exelon (8)
15,017,731
656,876
2,071,278
Multi-Utilities
4.6%
Ameren
10,009,941
814,409
NiSource (5)
25,386,267
612,063
Public
Service
Enterprise
Group
12,313,988
741,425
2,167,897
Total
Utilities
4,239,175
Total
Miscellaneous
Common
Stocks
3.8% (9)
1,884,175
Total
Common
Stocks
(Cost
$20,902,796)
32,263,651
CONVERTIBLE
PREFERRED
STOCKS
0.7%
HEALTH
CARE
0.1%
Health
Care
Equipment
&
Supplies
0.1%
Boston
Scientific,
Series
A,
5.50%,
6/1/23
245,829
26,311
26,311
Life
Sciences
Tools
&
Services
0.0%
Avantor
,
Series
A,
6.25%,
5/15/22
268,695
24,199
24,199
Total
Health
Care
50,510
INFORMATION
TECHNOLOGY
0.5%
Software
0.5%
Aurora
Innovation,
Series
B,
Acquisition
Date:
3/1/19,
Cost $25,765 (4)(7)(10)
2,788,430
54,811
Waymo
,
Series
A-2,
Acquisition
Date:
5/8/20,
Cost $183,922 (4)
(7)(10)
2,141,932
183,922
Total
Information
Technology
238,733
UTILITIES
0.1%
Electric
Utilities
0.1%
American
Electric
Power,
6.125%,
3/15/22
1,162,195
57,976
Total
Utilities
57,976
Total
Convertible
Preferred
Stocks
(Cost
$305,567)
347,219
CORPORATE
BONDS
8.5%
Acrisure
,
7.00%,
11/15/25 (1)
63,350,000
65,409
Altice
Financing,
7.50%,
5/15/26 (1)
46,995,000
48,993
Altice
France
Holding,
10.50%,
5/15/27 (1)
15,975,000
17,972
AmWINS
Group,
7.75%,
7/1/26 (1)
23,330,000
24,905
T.
ROWE
PRICE
Capital
Appreciation
Fund
7
Shares/Par
$
Value
(Cost
and
value
in
$000s)
Bank
of
New
York
Mellon,
Series E,
FRN,
3M
USD
LIBOR
+
3.42%,
3.607% (11)
43,465,000
43,411
CCO
Holdings,
4.00%,
3/1/23 (1)
43,430,000
43,810
CCO
Holdings,
5.00%,
2/1/28 (1)
197,338,000
206,958
CCO
Holdings,
5.125%,
5/1/27 (1)
133,065,000
139,718
Cedar
Fair,
5.25%,
7/15/29
71,965,000
74,124
Cedar
Fair,
5.375%,
6/1/24
98,758,000
99,622
Cedar
Fair,
5.375%,
4/15/27
61,780,000
63,324
Cedar
Fair,
5.50%,
5/1/25 (1)
3,395,000
3,560
Cedar
Fair,
6.50%,
10/1/28 (1)
57,835,000
62,173
Clarios
Global,
6.25%,
5/15/26 (1)
8,827,000
9,390
Clarios
Global,
6.75%,
5/15/25 (1)
3,175,000
3,369
Continental
Airlines
PTT,
Series 2012-1,
Class
A,
4.15%,
4/11/24
9,257,865
9,656
Delta
Air
Lines,
4.50%,
10/20/25 (1)
67,265,000
71,585
Delta
Air
Lines,
4.75%,
10/20/28 (1)
37,425,000
40,706
Elanco
Animal
Health,
4.912%,
8/27/21
38,066,000
38,514
General
Electric,
Series D,
FRN,
3M
USD
LIBOR
+
3.33%,
3.514% (11)
281,325,000
265,852
HUB
International,
7.00%,
5/1/26 (1)
198,113,000
205,294
KFC
Holding,
4.75%,
6/1/27 (1)
145,549,000
152,645
KFC
Holding,
5.25%,
6/1/26 (1)
109,528,000
112,814
Korn
Ferry,
4.625%,
12/15/27 (1)
11,955,000
12,224
Lennox
International,
3.00%,
11/15/23
6,420,000
6,781
Life
Time,
5.75%,
1/15/26 (1)
40,572,000
41,789
Marriott
International,
Series R,
3.125%,
6/15/26
11,184,000
11,719
Mileage
Plus
Holdings,
6.50%,
6/20/27 (1)
39,450,000
43,148
Mirant
,
EC,
0.00%,
7/15/49 (1)(4)(7)
16,000,000
—
Netflix,
4.375%,
11/15/26
134,150,000
149,242
Netflix,
4.875%,
4/15/28
168,167,000
190,029
Netflix,
4.875%,
6/15/30 (1)
4,130,000
4,739
Netflix,
5.50%,
2/15/22
9,485,000
9,817
Netflix,
5.875%,
2/15/25
56,540,000
64,526
Netflix,
5.875%,
11/15/28
225,575,000
271,818
Netflix,
6.375%,
5/15/29
120,825,000
149,823
NiSource,
VR,
5.65% (5)(11)(12)
44,495,000
46,052
Photo
Holdings
Merger
Sub,
8.50%,
10/1/26 (1)
14,298,000
15,460
PNC
Financial
Services
Group,
Series S,
VR,
5.00% (11)(12)
40,660,000
44,624
SBA
Communications,
3.875%,
2/15/27
17,885,000
18,242
SBA
Communications,
4.875%,
9/1/24
34,435,000
35,167
Sensata
Technologies,
4.875%,
10/15/23 (1)
20,175,000
21,613
Sensata
Technologies,
5.00%,
10/1/25 (1)
23,800,000
26,269
Sensata
Technologies,
5.625%,
11/1/24 (1)
6,670,000
7,362
Sirius
XM
Radio,
3.875%,
8/1/22 (1)
5,422,000
5,449
Six
Flags
Entertainment,
4.875%,
7/31/24 (1)
128,785,000
129,590
Six
Flags
Entertainment,
5.50%,
4/15/27 (1)
95,349,000
98,925
Six
Flags
Theme
Parks,
7.00%,
7/1/25 (1)
53,702,000
57,998
T.
ROWE
PRICE
Capital
Appreciation
Fund
8
Shares/Par
$
Value
(Cost
and
value
in
$000s)
Solera,
10.50%,
3/1/24 (1)
230,522,000
238,014
State
Street,
Series F,
FRN,
3M
USD
LIBOR
+
3.60%,
3.781% (11)
11,154,000
11,182
T-Mobile
USA,
6.00%,
3/1/23
13,950,000
13,985
Teleflex,
4.625%,
11/15/27
21,957,000
23,247
Teleflex,
4.875%,
6/1/26
33,225,000
34,056
U.S.
Airways
PTT,
Series 2010-1,
Class
A,
6.25%,
4/22/23
6,261,249
6,293
U.S.
Airways
PTT,
Series 2012-2,
Class
A,
4.625%,
6/3/25
1,007,751
947
U.S.
Airways
PTT,
Series 2012-2,
Class
B,
6.75%,
6/3/21
1,836,904
1,832
U.S.
Airways
PTT,
Series 2013-1,
Class
A,
3.95%,
11/15/25
6,366,057
6,175
U.S.
Airways
PTT,
Series 2013-1,
Class
B,
5.375%,
11/15/21
2,217,287
2,217
USI,
6.875%,
5/1/25 (1)
83,696,000
85,161
Welbilt
,
9.50%,
2/15/24
27,746,000
28,578
Xylem,
4.875%,
10/1/21
3,095,000
3,161
Yum!
Brands,
3.75%,
11/1/21
100,325,000
101,078
Yum!
Brands,
3.875%,
11/1/23
42,025,000
44,126
Yum!
Brands,
4.75%,
1/15/30 (1)
11,060,000
11,696
Yum!
Brands,
5.35%,
11/1/43
64,619,000
68,496
Yum!
Brands,
6.875%,
11/15/37
27,015,000
32,958
Total
Corporate
Bonds
(Cost
$3,723,962)
3,979,412
PREFERRED
STOCKS
1.0%
FINANCIALS
0.0%
Financial
Services
0.0%
Charles
Schwab,
Series
D,
5.95% (11)
95,800
2,429
Total
Financials
2,429
UTILITIES
1.0%
Electric
Utilities
0.8%
Alabama
Power,
Series
A,
5.00% (11)
414,910
10,970
CMS
Energy,
5.875%,
10/15/78 (5)
3,800,000
105,032
CMS
Energy,
5.875%,
3/1/79 (5)
5,050,000
137,158
DTE
Energy,
Series
E,
5.25%,
12/1/77 (5)
1,745,968
45,553
Duke
Energy,
5.625%,
9/15/78
737,596
19,797
SCE
Trust
III,
Series
H,
VR,
5.75% (11)(12)
59,939
1,528
SCE
Trust
IV,
Series
J,
VR,
5.375% (5)(11)(12)
2,450,468
61,776
381,814
Gas
&
Gas
Transmission
0.2%
NiSource,
Series
B,
VR,
6.50% (5)(11)(12)
2,550,000
71,069
71,069
Total
Utilities
452,883
Total
Preferred
Stocks
(Cost
$422,617)
455,312
T.
ROWE
PRICE
Capital
Appreciation
Fund
9
Shares/Par
$
Value
(Cost
and
value
in
$000s)
SHORT-TERM
INVESTMENTS
12.5%
Money
Market
Funds
12.5%
T.
Rowe
Price
Government
Reserve
Fund,
0.04% (5)(13)
5,886,514,648
5,886,515
Total
Short-Term
Investments
(Cost
$5,886,515)
5,886,515
Total
Investments
in
Securities
101.3%
(Cost
$35,785,001)
$
47,527,177
Other
Assets
Less
Liabilities
(1.3)%
(610,030)
Net
Assets
100.0%
$
46,917,147
‡
Shares/Par
and
Notional
Amount
are
denominated
in
U.S.
dollars
unless
otherwise
noted.
(1)
Security
was
purchased
pursuant
to
Rule
144A
under
the
Securities
Act
of
1933
and
may
be
resold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers.
Total
value
of
such
securities
at
period-end
amounts
to
$2,131,689
and
represents
4.5%
of
net
assets.
(2)
Bank
loan
positions
may
involve
multiple
underlying
tranches.
In
those
instances,
the
position
presented
reflects
the
aggregate
of
those
respective
underlying
tranches
and
the
rate
presented
reflects
the
weighted
average
rate
of
the
settled
positions.
(3)
All
or
a
portion
of
this
loan
is
unsettled
as
of
March
31,
2021.
The
interest
rate
for
unsettled
loans
will
be
determined
upon
settlement
after
period
end.
(4)
Level
3
in
fair
value
hierarchy.
(5)
Affiliated
Companies
(6)
SEC
30-day
yield
(7)
Non-income
producing
(8)
All
or
a
portion
of
this
security
is
pledged
to
cover
or
as
collateral
for
written
call
options
at
March
31,
2021.
(9)
The
identity
of
certain
securities
has
been
concealed
to
protect
the
fund
while
it
completes
a
purchase
or
selling
program
for
the
securities.
(10)
Security
cannot
be
offered
for
public
resale
without
first
being
registered
under
the
Securities
Act
of
1933
and
related
rules
("restricted
security").
Acquisition
date
represents
the
day
on
which
an
enforceable
right
to
acquire
such
security
is
obtained
and
is
presented
along
with
related
cost
in
the
security
description.
The
fund
has
registration
rights
for
certain
restricted
securities.
Any
costs
related
to
such
registration
are
borne
by
the
issuer.
The
aggregate
value
of
restricted
securities
(excluding
144A
holdings)
at
period
end
amounts
to
$238,733
and
represents
0.5%
of
net
assets.
(11)
Perpetual
security
with
no
stated
maturity
date.
(12)
Security
is
a
fix-to-float
security,
which
carries
a
fixed
coupon
until
a
certain
date,
upon
which
it
switches
to
a
floating
rate.
Reference
rate
and
spread
is
provided
if
the
rate
is
currently
floating.
(13)
Seven-day
yield
1M
USD
LIBOR
One
month
USD
LIBOR
(London
interbank
offered
rate)
T.
ROWE
PRICE
Capital
Appreciation
Fund
10
.
.
.
.
.
.
.
.
.
.
3M
EURIBOR
Three
month
EURIBOR
(Euro
interbank
offered
rate)
3M
USD
LIBOR
Three
month
USD
LIBOR
(London
interbank
offered
rate)
EC
Escrow
CUSIP;
represents
a
beneficial
interest
in
a
residual
pool
of
assets;
the
amount
and
timing
of
future
distributions,
if
any,
is
uncertain;
when
presented,
interest
rate
and
maturity
date
are
those
of
the
original
security.
EUR
Euro
FRN
Floating
Rate
Note
OTC
Over-the-counter
PTT
Pass-Through
Trust
VR
Variable
Rate;
rate
shown
is
effective
rate
at
period-end.
The
rates
for
certain
variable
rate
securities
are
not
based
on
a
published
reference
rate
and
spread
but
are
determined
by
the
issuer
or
agent
and
based
on
current
market
conditions.
T.
ROWE
PRICE
Capital
Appreciation
Fund
11
(Amounts
in
000s,
except
for
contracts)
OPTIONS
WRITTEN
(0.9)%
OTC
Options
Written
(0.9)%
Counterparty
Description
Contracts
Notional
Amount
$
Value
Goldman
Sachs
Alphabet,
Class
A,
Call,
9/16/22
@
$1,960.00
128
26,400
(4,314)
Goldman
Sachs
Alphabet,
Class
A,
Call,
9/16/22
@
$1,980.00
128
26,400
(4,179)
Goldman
Sachs
Alphabet,
Class
A,
Call,
9/16/22
@
$2,000.00
128
26,400
(4,048)
Goldman
Sachs
Alphabet,
Class
A,
Call,
9/16/22
@
$2,100.00
128
26,400
(3,437)
Goldman
Sachs
Alphabet,
Class
C,
Call,
1/21/22
@
$1,760.00
448
92,675
(17,909)
Goldman
Sachs
Alphabet,
Class
C,
Call,
1/21/22
@
$1,780.00
448
92,675
(17,259)
Goldman
Sachs
Alphabet,
Class
C,
Call,
1/21/22
@
$1,800.00
448
92,675
(16,621)
Goldman
Sachs
Alphabet,
Class
C,
Call,
6/17/22
@
$1,980.00
128
26,479
(3,910)
Goldman
Sachs
Alphabet,
Class
C,
Call,
6/17/22
@
$2,000.00
128
26,479
(3,770)
Goldman
Sachs
Alphabet,
Class
C,
Call,
6/17/22
@
$2,100.00
128
26,479
(3,139)
Citigroup
Amazon.com,
Call,
1/21/22
@
$4,000.00
127
39,295
(937)
Citigroup
Amazon.com,
Call,
1/21/22
@
$4,100.00
128
39,604
(787)
Citigroup
Amazon.com,
Call,
1/21/22
@
$4,200.00
128
39,604
(656)
Citigroup
Amazon.com,
Call,
1/21/22
@
$4,300.00
128
39,604
(548)
Credit
Suisse
Amazon.com,
Call,
1/21/22
@
$3,800.00
201
62,191
(2,121)
Credit
Suisse
Amazon.com,
Call,
1/21/22
@
$3,900.00
201
62,191
(1,778)
Credit
Suisse
Amazon.com,
Call,
1/21/22
@
$4,000.00
201
62,191
(1,482)
Royal
Bank
of
Canada
Amazon.com,
Call,
1/21/22
@
$3,900.00
84
25,990
(743)
Royal
Bank
of
Canada
Amazon.com,
Call,
1/21/22
@
$4,000.00
84
25,990
(620)
Royal
Bank
of
Canada
Amazon.com,
Call,
1/21/22
@
$4,100.00
84
25,990
(516)
Royal
Bank
of
Canada
Amazon.com,
Call,
1/21/22
@
$4,200.00
83
25,681
(425)
T.
ROWE
PRICE
Capital
Appreciation
Fund
12
(Amounts
in
000s,
except
for
contracts)
Counterparty
Description
Contracts
Notional
Amount
$
Value
Royal
Bank
of
Canada
Amazon.com,
Call,
1/21/22
@
$4,300.00
84
25,990
(360)
JPMorgan
Chase
American
Electric
Power,
Call,
1/21/22
@
$90.00
7,852
66,506
(2,100)
JPMorgan
Chase
American
Electric
Power,
Call,
1/21/22
@
$95.00
9,619
81,473
(1,395)
Citigroup
American
Tower,
Call,
1/21/22
@
$210.00
637
15,228
(2,392)
Citigroup
American
Tower,
Call,
1/21/22
@
$220.00
637
15,228
(1,978)
Citigroup
American
Tower,
Call,
1/21/22
@
$230.00
844
20,177
(2,114)
Citigroup
American
Tower,
Call,
1/21/22
@
$240.00
207
4,949
(408)
Citigroup
American
Tower,
Call,
1/21/22
@
$250.00
208
4,972
(323)
Credit
Suisse
Bank
of
America,
Call,
1/21/22
@
$30.00
24,420
94,481
(23,565)
Credit
Suisse
Bank
of
America,
Call,
1/21/22
@
$32.00
12,826
49,624
(10,421)
Credit
Suisse
Bank
of
America,
Call,
1/21/22
@
$35.00
25,653
99,251
(15,712)
Credit
Suisse
Bank
of
America,
Call,
1/21/22
@
$40.00
5,674
21,953
(2,014)
Credit
Suisse
Bank
of
America,
Call,
1/21/22
@
$45.00
5,674
21,953
(1,089)
Royal
Bank
of
Canada
Bank
of
America,
Call,
1/21/22
@
$37.00
19,105
73,917
(9,505)
Susquehanna
Financial
Group
LLLP
Bank
of
America,
Call,
1/21/22
@
$30.00
39,989
154,718
(38,589)
JPMorgan
Chase
Cisco
Systems,
Call,
1/21/22
@
$45.00
9,887
51,126
(7,786)
JPMorgan
Chase
Cisco
Systems,
Call,
1/21/22
@
$47.50
9,887
51,126
(6,377)
JPMorgan
Chase
Cisco
Systems,
Call,
1/21/22
@
$50.00
9,887
51,126
(4,919)
JPMorgan
Chase
CME
Group,
Call,
1/21/22
@
$220.00
1,911
39,028
(2,093)
JPMorgan
Chase
CME
Group,
Call,
1/21/22
@
$230.00
1,911
39,028
(1,529)
Credit
Suisse
Coca-Cola,
Call,
1/21/22
@
$50.00
9,024
47,566
(4,377)
Credit
Suisse
Coca-Cola,
Call,
1/21/22
@
$52.50
9,024
47,566
(3,113)
T.
ROWE
PRICE
Capital
Appreciation
Fund
13
(Amounts
in
000s,
except
for
contracts)
Counterparty
Description
Contracts
Notional
Amount
$
Value
Credit
Suisse
Coca-Cola,
Call,
1/21/22
@
$55.00
9,025
47,571
(2,189)
Credit
Suisse
Danaher,
Call,
1/21/22
@
$250.00
3,969
89,334
(5,249)
Credit
Suisse
Danaher,
Call,
1/21/22
@
$270.00
398
8,958
(296)
Credit
Suisse
Danaher,
Call,
1/21/22
@
$280.00
398
8,958
(200)
Citigroup
Exelon,
Call,
1/21/22
@
$40.00
2,044
8,940
(1,124)
Citigroup
Exelon,
Call,
1/21/22
@
$43.00
2,044
8,940
(756)
Citigroup
Exelon,
Call,
1/21/22
@
$45.00
2,043
8,936
(572)
Citigroup
Exelon,
Call,
1/21/22
@
$47.00
9,553
41,785
(1,934)
JPMorgan
Chase
Facebook,
Class
A,
Call,
1/21/22
@
$380.00
749
22,060
(794)
JPMorgan
Chase
Facebook,
Class
A,
Call,
1/21/22
@
$400.00
4,778
140,726
(3,584)
JPMorgan
Chase
General
Electric,
Call,
1/21/22
@
$12.00
31,828
41,790
(7,734)
JPMorgan
Chase
General
Electric,
Call,
1/21/22
@
$15.00
31,828
41,790
(3,899)
Susquehanna
Financial
Group
LLLP
General
Electric,
Call,
1/21/22
@
$15.00
63,681
83,613
(7,801)
Citigroup
Hilton
Worldwide
Holdings,
Call,
1/21/22
@
$125.00
1,656
20,024
(2,136)
Citigroup
Hilton
Worldwide
Holdings,
Call,
1/21/22
@
$130.00
2,928
35,405
(3,177)
Citigroup
Hilton
Worldwide
Holdings,
Call,
1/21/22
@
$135.00
1,272
15,381
(1,158)
Goldman
Sachs
Hilton
Worldwide
Holdings,
Call,
1/21/22
@
$135.00
3,758
45,442
(3,420)
Goldman
Sachs
Hilton
Worldwide
Holdings,
Call,
1/21/22
@
$140.00
3,758
45,442
(2,837)
Credit
Suisse
Humana,
Call,
1/21/22
@
$480.00
239
10,020
(479)
Credit
Suisse
Humana,
Call,
1/21/22
@
$500.00
239
10,020
(315)
JPMorgan
Chase
Huntington
Bancshares,
Call,
1/21/22
@
$17.00
4,769
7,497
(584)
JPMorgan
Chase
Intercontinental
Exchange,
Call,
1/21/22
@
$130.00
1,592
17,779
(426)
T.
ROWE
PRICE
Capital
Appreciation
Fund
14
(Amounts
in
000s,
except
for
contracts)
Counterparty
Description
Contracts
Notional
Amount
$
Value
JPMorgan
Chase
Intercontinental
Exchange,
Call,
1/21/22
@
$135.00
1,592
17,779
(279)
Susquehanna
Financial
Group
LLLP
Keurig
Dr
Pepper,
Call,
12/17/21
@
$32.00
9,537
32,779
(3,958)
JPMorgan
Chase
Lockheed
Martin,
Call,
1/21/22
@
$340.00
884
32,664
(3,903)
JPMorgan
Chase
Lockheed
Martin,
Call,
1/21/22
@
$360.00
884
32,664
(2,820)
JPMorgan
Chase
Lockheed
Martin,
Call,
1/21/22
@
$375.00
883
32,627
(2,274)
Credit
Suisse
Marriott
International,
Class
A,
Call,
1/21/22
@
$145.00
2,548
37,738
(5,223)
Credit
Suisse
Marriott
International,
Class
A,
Call,
1/21/22
@
$150.00
2,548
37,738
(4,631)
Credit
Suisse
Marriott
International,
Class
A,
Call,
1/21/22
@
$165.00
954
14,130
(1,181)
Credit
Suisse
Marriott
International,
Class
A,
Call,
1/21/22
@
$170.00
954
14,130
(1,042)
Citigroup
McDonald's,
Call,
1/21/22
@
$210.00
785
17,595
(1,843)
Citigroup
McDonald's,
Call,
1/21/22
@
$220.00
784
17,573
(1,394)
Citigroup
McDonald's,
Call,
1/21/22
@
$230.00
784
17,573
(1,015)
Royal
Bank
of
Canada
McDonald's,
Call,
1/21/22
@
$210.00
637
14,278
(1,495)
Royal
Bank
of
Canada
McDonald's,
Call,
1/21/22
@
$220.00
637
14,278
(1,132)
Royal
Bank
of
Canada
McDonald's,
Call,
1/21/22
@
$230.00
637
14,278
(825)
Credit
Suisse
Medtronic,
Call,
1/21/22
@
$115.00
1,283
15,156
(1,549)
Credit
Suisse
Medtronic,
Call,
1/21/22
@
$125.00
1,283
15,156
(860)
Credit
Suisse
Medtronic,
Call,
1/21/22
@
$130.00
1,282
15,144
(635)
Citigroup
Microsoft,
Call,
1/21/22
@
$280.00
6,220
146,649
(4,447)
Susquehanna
Financial
Group
LLLP
Microsoft,
Call,
1/21/22
@
$250.00
2,098
49,465
(3,435)
Susquehanna
Financial
Group
LLLP
Microsoft,
Call,
1/21/22
@
$255.00
2,098
49,465
(2,948)
Susquehanna
Financial
Group
LLLP
Microsoft,
Call,
1/21/22
@
$260.00
2,099
49,488
(2,613)
T.
ROWE
PRICE
Capital
Appreciation
Fund
15
(Amounts
in
000s,
except
for
contracts)
Counterparty
Description
Contracts
Notional
Amount
$
Value
Susquehanna
Financial
Group
LLLP
Microsoft,
Call,
1/21/22
@
$265.00
1,615
38,077
(1,764)
Susquehanna
Financial
Group
LLLP
Microsoft,
Call,
1/21/22
@
$270.00
1,616
38,100
(1,527)
Susquehanna
Financial
Group
LLLP
Microsoft,
Call,
1/21/22
@
$275.00
1,616
38,100
(1,325)
Citigroup
Mondelez
International,
Call,
1/21/22
@
$57.50
2,629
15,388
(1,176)
Citigroup
Mondelez
International,
Call,
1/21/22
@
$60.00
2,628
15,382
(825)
Citigroup
Mondelez
International,
Call,
1/21/22
@
$62.50
2,628
15,382
(558)
Credit
Suisse
Northrop
Grumman,
Call,
1/21/22
@
$300.00
1,016
32,882
(3,901)
Credit
Suisse
Northrop
Grumman,
Call,
1/21/22
@
$315.00
1,016
32,882
(3,043)
Credit
Suisse
Northrop
Grumman,
Call,
1/21/22
@
$325.00
1,014
32,817
(2,439)
JPMorgan
Chase
NXP
Semiconductors,
Call,
1/21/22
@
$195.00
1,593
32,073
(4,687)
JPMorgan
Chase
NXP
Semiconductors,
Call,
1/21/22
@
$200.00
1,593
32,074
(4,305)
JPMorgan
Chase
NXP
Semiconductors,
Call,
1/21/22
@
$210.00
1,593
32,074
(3,656)
Susquehanna
Financial
Group
LLLP
Pepsi,
Call,
1/21/22
@
$140.00
2,681
37,923
(2,500)
Susquehanna
Financial
Group
LLLP
Pepsi,
Call,
1/21/22
@
$145.00
2,681
37,923
(1,964)
Susquehanna
Financial
Group
LLLP
Pepsi,
Call,
1/21/22
@
$155.00
2,682
37,937
(1,073)
Citigroup
PNC
Financial
Services
Group,
Call,
1/21/22
@
$175.00
1,274
22,347
(1,873)
Citigroup
PNC
Financial
Services
Group,
Call,
1/21/22
@
$180.00
2,616
45,887
(3,270)
Citigroup
PNC
Financial
Services
Group,
Call,
1/21/22
@
$185.00
2,616
45,887
(2,747)
Citigroup
PNC
Financial
Services
Group,
Call,
1/21/22
@
$190.00
1,342
23,540
(1,161)
Citigroup
PNC
Financial
Services
Group,
Call,
1/21/22
@
$195.00
3,817
66,954
(2,825)
T.
ROWE
PRICE
Capital
Appreciation
Fund
16
(Amounts
in
000s,
except
for
contracts)
Counterparty
Description
Contracts
Notional
Amount
$
Value
Citigroup
PNC
Financial
Services
Group,
Call,
1/21/22
@
$200.00
3,817
66,954
(2,252)
Goldman
Sachs
Roper
Technologies,
Call,
5/21/21
@
$420.00
793
31,985
(714)
Goldman
Sachs
Roper
Technologies,
Call,
5/21/21
@
$440.00
952
38,398
(345)
JPMorgan
Chase
Roper
Technologies,
Call,
8/20/21
@
$480.00
1,274
51,386
(357)
Bank
of
America
Ross
Stores,
Call,
1/21/22
@
$135.00
306
3,669
(256)
Bank
of
America
Ross
Stores,
Call,
1/21/22
@
$140.00
306
3,669
(196)
Credit
Suisse
Ross
Stores,
Call,
1/21/22
@
$130.00
636
7,626
(636)
Credit
Suisse
Ross
Stores,
Call,
1/21/22
@
$135.00
636
7,626
(531)
JPMorgan
Chase
Teledyne
Technologies,
Call,
9/17/21
@
$410.00
318
13,154
(1,175)
JPMorgan
Chase
Teledyne
Technologies,
Call,
9/17/21
@
$420.00
318
13,154
(1,019)
Citigroup
Thermo
Fisher
Scientific,
Call,
1/21/22
@
$580.00
765
34,913
(887)
Citigroup
Thermo
Fisher
Scientific,
Call,
1/21/22
@
$600.00
765
34,913
(677)
Citigroup
Unitedhealth
Group,
Call,
1/21/22
@
$400.00
637
23,701
(1,545)
Citigroup
Unitedhealth
Group,
Call,
1/21/22
@
$410.00
637
23,701
(1,322)
Citigroup
Unitedhealth
Group,
Call,
1/21/22
@
$420.00
637
23,701
(1,145)
Citigroup
Visa,
Class
A,
Call,
1/21/22
@
$250.00
4,231
89,583
(2,359)
Credit
Suisse
Visa,
Class
A,
Call,
1/21/22
@
$225.00
2,176
46,072
(2,791)
Credit
Suisse
Visa,
Class
A,
Call,
1/21/22
@
$230.00
2,176
46,072
(2,334)
Credit
Suisse
Visa,
Class
A,
Call,
1/21/22
@
$235.00
2,176
46,072
(1,942)
Credit
Suisse
Visa,
Class
A,
Call,
1/21/22
@
$240.00
1,272
26,932
(1,002)
Credit
Suisse
Visa,
Class
A,
Call,
1/21/22
@
$245.00
1,272
26,932
(855)
Goldman
Sachs
Visa,
Class
A,
Call,
1/21/22
@
$225.00
2,597
54,986
(3,331)
T.
ROWE
PRICE
Capital
Appreciation
Fund
17
(Amounts
in
000s,
except
for
contracts)
Counterparty
Description
Contracts
Notional
Amount
$
Value
Goldman
Sachs
Visa,
Class
A,
Call,
1/21/22
@
$230.00
2,597
54,986
(2,785)
Goldman
Sachs
Visa,
Class
A,
Call,
1/21/22
@
$250.00
1,267
26,826
(706)
Goldman
Sachs
Visa,
Class
A,
Call,
1/21/22
@
$260.00
1,267
26,826
(545)
Goldman
Sachs
Visa,
Class
A,
Call,
1/21/22
@
$270.00
1,267
26,826
(373)
JPMorgan
Chase
Visa,
Class
A,
Call,
1/21/22
@
$220.00
1,861
39,403
(2,684)
JPMorgan
Chase
Visa,
Class
A,
Call,
1/21/22
@
$225.00
1,860
39,382
(2,386)
JPMorgan
Chase
Visa,
Class
A,
Call,
1/21/22
@
$230.00
1,861
39,403
(1,996)
Credit
Suisse
Waste
Management,
Call,
1/21/22
@
$115.00
1,298
16,747
(2,265)
Credit
Suisse
Waste
Management,
Call,
1/21/22
@
$120.00
1,298
16,747
(1,668)
Credit
Suisse
Waste
Management,
Call,
1/21/22
@
$130.00
1,299
16,760
(1,046)
JPMorgan
Chase
Yum!
Brands,
Call,
1/21/22
@
$105.00
702
7,594
(684)
JPMorgan
Chase
Yum!
Brands,
Call,
1/21/22
@
$110.00
702
7,594
(555)
JPMorgan
Chase
Yum!
Brands,
Call,
1/21/22
@
$120.00
6,182
66,877
(2,117)
JPMorgan
Chase
Yum!
Brands,
Call,
1/21/22
@
$125.00
2,548
27,564
(675)
Total
OTC
Options
Written
(Premiums
$(336,929))
$
(426,299)
Total
Options
Written
(Premiums
$(336,929))
$
(426,299)
T.
ROWE
PRICE
Capital
Appreciation
Fund
18
AFFILIATED
COMPANIES
($000s)
The
fund
may
invest
in
certain
securities
that
are
considered
affiliated
companies.
As
defined
by
the
1940
Act,
an
affiliated
company
is
one
in
which
the
fund
owns
5%
or
more
of
the
outstanding
voting
securities,
or
a
company
that
is
under
common
ownership
or
control.
The
following
securities
were
considered
affiliated
companies
for
all
or
some
portion
of
the
three
months
ended
March
31,
2021.
Net
realized
gain
(loss),
investment
income,
change
in
net
unrealized
gain/loss,
and
purchase
and
sales
cost
reflect
all
activity
for
the
period
then
ended.
Affiliate
Net
Realized
Gain
(Loss)
Change
in
Net
Unrealized
Gain/Loss
Investment
Income
CMS
Energy,
5.875%,
10/15/78
$
—
$
(2,888)
$
1,396
CMS
Energy,
5.875%,
3/1/79
—
(3,787)
1,855
DTE
Energy,
Series
E,
5.25%,
12/1/77
480
(2,990)
653
Duke
Energy,
5.625%,
9/15/78
—
(6,098)
—
Envista
Holdings
31,388
43,485
—
NiSource,
VR,
5.65%
—
445
635
NiSource
—
33,311
4,912
NiSource,
Series
B,
VR,
6.50%
—
(1,580)
1,036
SCE
Trust
IV,
Series
J,
VR,
5.375%
—
2,426
823
T.
Rowe
Price
Institutional
Floating
Rate
Fund
–
Institutional
Class,
3.46%
(9)
158
1,766
T.
Rowe
Price
Government
Reserve
Fund,
0.04%
—
—
919
Totals
$
31,859#
$
62,482
$
13,995+
T.
ROWE
PRICE
Capital
Appreciation
Fund
19
AFFILIATED
COMPANIES
(CONTINUED)
($000s)
Supplementary
Investment
Schedule
Affiliate
Value
12/31/20
Purchase
Cost
Sales
Cost
Value
03/31/21
CMS
Energy,
5.875%,
10/15/78
$
107,920
$
—
$
—
$
105,032
CMS
Energy,
5.875%,
3/1/79
140,945
—
—
137,158
DTE
Energy,
Series
E,
5.25%,
12/1/77
60,512
—
11,969
45,553
Duke
Energy,
5.625%,
9/15/78
56,887
—
30,992
*
Envista
Holdings
403,897
—
97,367
350,015
NiSource,
VR,
5.65%
45,607
—
—
46,052
NiSource
512,195
66,557
—
612,063
NiSource,
Series
B,
VR,
6.50%
72,649
—
—
71,069
SCE
Trust
IV,
Series
J,
VR,
5.375%
59,350
—
—
61,776
T.
Rowe
Price
Institutional
Floating
Rate
Fund
–
Institutional
Class,
3.46%
87,471
196,739
—
284,368
T.
Rowe
Price
Government
Reserve
Fund,
0.04%
5,488,869
¤
¤
5,886,515
Total
$
7,599,601^
#
Capital
gain
distributions
from
mutual
funds
represented
$0
of
the
net
realized
gain
(loss).
+
Investment
income
comprised
$13,360
of
dividend
income
and
$635
of
interest
income.
*
On
the
date
indicated,
issuer
was
held
but
not
considered
an
affiliated
company.
¤
Purchase
and
sale
information
not
shown
for
cash
management
funds.
^
The
cost
basis
of
investments
in
affiliated
companies
was
$7,360,713.
T.
ROWE
PRICE
Capital
Appreciation
Fund
Unaudited
Notes
to
Portfolio
of
Investments
20
T.
Rowe
Price
Capital
Appreciation
Fund,
Inc. (the
fund) is
registered
under
the
Investment
Company
Act
of
1940
(the
1940
Act)
as
an
open-end
management
investment
company
and
follows
accounting
and
reporting
guidance
of
the
Financial
Accounting
Standards
Board
Accounting
Standards
Codification
Topic
946.
The
accompanying
Portfolio
of
Investments
was
prepared
in
accordance
with
accounting
principles
generally
accepted
in
the
United
States
of
America
(GAAP).
For
additional
information
on
the
fund’s
significant
accounting
policies
and
investment
related
disclosures,
please
refer
to
the
fund’s most
recent
semiannual
or
annual
shareholder
report
and
its
prospectus.
VALUATION
Fair
Value
The
fund’s
financial
instruments
are
valued
at
the
close
of
the
New
York
Stock
Exchange
(NYSE),
normally
4
p.m.
ET,
each
day
the
NYSE
is
open
for
business,
and
are
reported
at
fair
value,
which
GAAP
defines
as
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date. The
T.
Rowe
Price
Valuation
Committee
(the
Valuation
Committee)
is
an
internal
committee
that
has
been
delegated
certain
responsibilities
by
the
fund’s
Board
of
Directors
(the
Board)
to
ensure
that
financial
instruments
are
appropriately
priced
at
fair
value
in
accordance
with
GAAP
and
the
1940
Act.
Subject
to
oversight
by
the
Board,
the
Valuation
Committee
develops
and
oversees
pricing-related
policies
and
procedures
and
approves
all
fair
value
determinations.
Specifically,
the
Valuation
Committee
establishes
policies
and
procedures
used
in
valuing
financial
instruments,
including
those
which
cannot
be
valued
in
accordance
with
normal
procedures
or
using
pricing
vendors;
determines
pricing
techniques,
sources,
and
persons
eligible
to
effect
fair
value
pricing
actions;
evaluates
the
services
and
performance
of
the
pricing
vendors;
oversees
the
pricing
process
to
ensure
policies
and
procedures
are
being
followed;
and
provides
guidance
on
internal
controls
and
valuation-related
matters.
The
Valuation
Committee
provides
periodic
reporting
to
the
Board
on
valuation
matters.
Various
valuation
techniques
and
inputs
are
used
to
determine
the
fair
value
of
financial
instruments.
GAAP
establishes
the
following
fair
value
hierarchy
that
categorizes
the
inputs
used
to
measure
fair
value:
Level
1
–
quoted
prices
(unadjusted)
in
active
markets
for
identical
financial
instruments
that
the
fund
can
access
at
the
reporting
date
T.
ROWE
PRICE
Capital
Appreciation
Fund
21
Level
2
–
inputs
other
than
Level
1
quoted
prices
that
are
observable,
either
directly
or
indirectly
(including,
but
not
limited
to,
quoted
prices
for
similar
financial
instruments
in
active
markets,
quoted
prices
for
identical
or
similar
financial
instruments
in
inactive
markets,
interest
rates
and
yield
curves,
implied
volatilities,
and
credit
spreads)
Level
3
–
unobservable
inputs
(including
the
fund's
own
assumptions
in
determining
fair
value)
Observable
inputs
are
developed
using
market
data,
such
as
publicly
available
information
about
actual
events
or
transactions,
and
reflect
the
assumptions
that
market
participants
would
use
to
price
the
financial
instrument.
Unobservable
inputs
are
those
for
which
market
data
are
not
available
and
are
developed
using
the
best
information
available
about
the
assumptions
that
market
participants
would
use
to
price
the
financial
instrument.
GAAP
requires
valuation
techniques
to
maximize
the
use
of
relevant
observable
inputs
and
minimize
the
use
of
unobservable
inputs.
When
multiple
inputs
are
used
to
derive
fair
value,
the
financial
instrument
is
assigned
to
the
level
within
the
fair
value
hierarchy
based
on
the
lowest-level
input
that
is
significant
to
the
fair
value
of
the
financial
instrument.
Input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level
but
rather
the
degree
of
judgment
used
in
determining
those
values.
Valuation
Techniques
Equity
securities,
including
exchange-traded
funds, listed
or
regularly
traded
on
a
securities
exchange
or
in
the
over-the-counter
(OTC)
market
are
valued
at
the
last
quoted
sale
price
or,
for
certain
markets,
the
official
closing
price
at
the
time
the
valuations
are
made.
OTC
Bulletin
Board
securities
are
valued
at
the
mean
of
the
closing
bid
and
asked
prices.
A
security
that
is
listed
or
traded
on
more
than
one
exchange
is
valued
at
the
quotation
on
the
exchange
determined
to
be
the
primary
market
for
such
security.
Listed
securities
not
traded
on
a
particular
day
are
valued
at
the
mean
of
the
closing
bid
and
asked
prices
for
domestic
securities.
Debt
securities
generally
are
traded
in
the over-the-counter
(OTC)
market
and
are
valued
at
prices
furnished
by
independent
pricing
services
or
by
broker
dealers
who
make
markets
in
such
securities.
When
valuing
securities,
the
independent
pricing
services
consider
the
yield
or
price
of
bonds
of
comparable
quality,
coupon,
maturity,
and
type,
as
well
as
prices
quoted
by
dealers
who
make
markets
in
such
securities.
Investments
in
mutual
funds
are
valued
at
the
mutual
fund’s
closing
NAV
per
share
on
the
day
of
valuation.
Listed
options,
and
OTC
options
with
a
listed
equivalent,
are
valued
at
the
mean
of
the
closing
bid
and
asked
prices
and
exchange-traded
options
on
futures
contracts
are
valued
at
closing
settlement
prices.
T.
ROWE
PRICE
Capital
Appreciation
Fund
22
Investments
for
which
market
quotations
or
market-based
valuations
are
not
readily
available
or
deemed
unreliable
are
valued
at
fair
value
as
determined
in
good
faith
by
the
Valuation
Committee,
in
accordance
with
fair
valuation
policies
and
procedures.
The
objective
of
any
fair
value
pricing
determination
is
to
arrive
at
a
price
that
could
reasonably
be
expected
from
a
current
sale.
Financial
instruments
fair
valued
by
the
Valuation
Committee
are
primarily
private
placements,
restricted
securities,
warrants,
rights,
and
other
securities
that
are
not
publicly
traded.
Factors
used
in
determining
fair
value
vary
by
type
of
investment
and
may
include
market
or
investment
specific
considerations.
The
Valuation
Committee
typically
will
afford
greatest
weight
to
actual
prices
in
arm’s
length
transactions,
to
the
extent
they
represent
orderly
transactions
between
market
participants,
transaction
information
can
be
reliably
obtained,
and
prices
are
deemed
representative
of
fair
value.
However,
the
Valuation
Committee
may
also
consider
other
valuation
methods
such
as
market-based
valuation
multiples;
a
discount
or
premium
from
market
value
of
a
similar,
freely
traded
security
of
the
same
issuer;
discounted
cash
flows;
yield
to
maturity;
or
some
combination.
Fair
value
determinations
are
reviewed
on
a
regular
basis
and
updated
as
information
becomes
available,
including
actual
purchase
and
sale
transactions
of
the
investment.
Because
any
fair
value
determination
involves
a
significant
amount
of
judgment,
there
is
a
degree
of
subjectivity
inherent
in
such
pricing
decisions,
and
fair
value
prices
determined
by
the
Valuation
Committee
could
differ
from
those
of
other
market
participants.
Valuation
Inputs
The
following
table
summarizes
the
fund’s
financial
instruments,
based
on
the
inputs
used
to
determine
their
fair
values
on
March
31,
2021
(for
further
detail
by
category,
please
refer
to
the
accompanying
Portfolio
of
Investments):
T.
ROWE
PRICE
Capital
Appreciation
Fund
23
F72-054Q1
03/21
($000s)
Level
1
Level
2
Level
3
Total
Value
Assets
Asset-Backed
Securities
$
—
$
122,951
$
—
$
122,951
Bank
Loans
—
4,107,069
80,680
4,187,749
Bond
Mutual
Funds
284,368
—
—
284,368
Common
Stocks
32,263,651
—
—
32,263,651
Convertible
Preferred
Stocks
—
108,486
238,733
347,219
Corporate
Bonds
—
3,979,412
—
3,979,412
Preferred
Stocks
455,312
—
—
455,312
Short-Term
Investments
5,886,515
—
—
5,886,515
Total
$
38,889,846
$
8,317,918
$
319,413
$
47,527,177
Liabilities
Options
Written
$
—
$
426,299
$
—
$
426,299