FPA CAPITAL FUND, INC.
Portfolio of investments
December 31, 2020
(Unaudited)
| COMMON STOCKS | Shares | Fair Value | ||||||
| COMMUNICATIONS EQUIPMENT — 6.6% | ||||||||
| InterDigital, Inc. | 235,295 | $ | 14,277,701 | |||||
| INFORMATION TECHNOLOGY SERVICES — 6.5% | ||||||||
| CSG Systems International, Inc. | 84,752 | $ | 3,819,773 | |||||
| Fabrinet (Thailand) (a) | 47,416 | 3,679,007 | ||||||
| Science Applications International Corp. | 69,619 | 6,588,742 | ||||||
| $ | 14,087,522 | |||||||
| APPAREL, FOOTWEAR & ACCESSORY DESIGN — 5.6% | ||||||||
| Carter's, Inc. | 58,772 | $ | 5,528,682 | |||||
| G-III Apparel Group Ltd.(a) | 97,799 | 2,321,748 | ||||||
| PVH Corp. | 45,166 | 4,240,636 | ||||||
| $ | 12,091,066 | |||||||
| P&C INSURANCE — 4.2% | ||||||||
| Horace Mann Educators Corp. | 140,098 | $ | 5,889,720 | |||||
| RLI Corp. | 31,542 | 3,285,099 | ||||||
| $ | 9,174,819 | |||||||
| LIFE SCIENCE EQUIPMENT — 4.0% | ||||||||
| American Equity Investment Life Holding Co. | 172,728 | $ | 4,777,656 | |||||
| American National Group, Inc. | 17,128 | 1,646,343 | ||||||
| CNO Financial Group, Inc. | 101,881 | 2,264,815 | ||||||
| $ | 8,688,814 | |||||||
| CONTAINERS & PACKAGING — 3.9% | ||||||||
| Graphic Packaging Holding Co. | 497,217 | $ | 8,422,856 | |||||
| SEMICONDUCTOR DEVICES — 3.7% | ||||||||
| Synaptics, Inc.(a) | 50,511 | $ | 4,869,260 | |||||
| Vishay Intertechnology, Inc. | 147,569 | 3,056,154 | ||||||
| $ | 7,925,414 | |||||||
| INDUSTRIALS — 3.5% | ||||||||
| CSW Industrials, Inc. | 41,717 | $ | 4,668,550 | |||||
| L B Foster Co. (Class A)(a) | 62,348 | 938,337 | ||||||
| MasTec, Inc.(a) | 27,895 | 1,901,881 | ||||||
| $ | 7,508,768 | |||||||
| PACKAGED FOOD — 3.1% | ||||||||
| TreeHouse Foods, Inc.(a) | 155,980 | $ | 6,627,590 | |||||
| BANKS — 2.9% | ||||||||
| Axos Financial, Inc.(a) | 51,394 | $ | 1,928,817 | |||||
| Investors Bancorp, Inc. | 209,030 | 2,207,357 | ||||||
| ServisFirst Bancshares, Inc. | 52,900 | 2,131,341 | ||||||
| $ | 6,267,515 | |||||||
| TECHNOLOGY DISTRIBUTORS — 2.7% | ||||||||
| Arrow Electronics, Inc.(a) | 31,199 | $ | 3,035,663 | |||||
FPA CAPITAL FUND, INC.
Portfolio of investments (Continued)
December 31, 2020
(Unaudited)
| COMMON STOCKS - Continued | Shares | Fair Value | ||||||
| SYNNEX Corp. | 35,731 | 2,909,932 | ||||||
| $ | 5,945,595 | |||||||
| OIL & GAS SERVICES & EQUIPMENT — 2.6% | ||||||||
| New Jersey Resources Corp. | 83,976 | $ | 2,985,347 | |||||
| South Jersey Industries, Inc. | 124,757 | 2,688,513 | ||||||
| $ | 5,673,860 | |||||||
| OTHER WHOLESALERS — 2.6% | ||||||||
| Schweitzer-Mauduit International, Inc. | 138,445 | $ | 5,566,873 | |||||
| INDUSTRIAL DISTRIBUTION & RENTAL — 2.5% | ||||||||
| MSC Industrial Direct Co., Inc. (Class A) | 61,324 | $ | 5,175,132 | |||||
| VSE Corp. | 7,540 | 290,215 | ||||||
| $ | 5,465,347 | |||||||
| AGRICULTURAL MACHINERY — 1.8% | ||||||||
| AGCO Corporation | 12,587 | $ | 1,297,594 | |||||
| Darling Ingredients, Inc.(a) | 46,301 | 2,670,642 | ||||||
| $ | 3,968,236 | |||||||
| CEMENT & AGGREGATES — 1.7% | ||||||||
| Oshkosh Corp. | 43,363 | $ | 3,732,253 | |||||
| FLOW CONTROL EQUIPMENT — 1.4% | ||||||||
| Graco, Inc. | 43,268 | $ | 3,130,440 | |||||
| APPLICATION SOFTWARE — 1.2% | ||||||||
| Concentrix Corp.(a) | 25,461 | $ | 2,513,001 | |||||
| HEALTH CARE SUPPLY CHAIN — 1.1% | ||||||||
| Owens & Minor, Inc. | 86,472 | $ | 2,339,068 | |||||
| PUBLISHING & BROADCASTING — 0.9% | ||||||||
| Scholastic Corp. | 78,697 | $ | 1,967,425 | |||||
| ELECTRICAL COMPONENTS — 0.8% | ||||||||
| Chase Corp. | 6,607 | $ | 667,373 | |||||
| Littelfuse, Inc. | 3,813 | 971,019 | ||||||
| $ | 1,638,392 | |||||||
| BASIC & DIVERSIFIED CHEMICALS — 0.7% | ||||||||
| Livent Corp.(a) | 79,440 | $ | 1,496,650 | |||||
| AIRCRAFT & PARTS — 0.7% | ||||||||
| Ducommun, Inc.(a) | 27,095 | $ | 1,455,001 | |||||
| OTHER COMMERCIAL SERVICES — 0.5% | ||||||||
| UniFirst Corp. | 4,923 | $ | 1,042,150 | |||||
FPA CAPITAL FUND, INC.
Portfolio of investments (Continued)
December 31, 2020
(Unaudited)
| COMMON STOCKS - Continued | Shares or Principal Amount | Fair Value | ||||||
| METAL SERVICE CENTER & OTHER WHOLESALERS — 0.4% | ||||||||
| Colfax Corp.(a) | 23,767 | $ | 908,850 | |||||
| INTERNET MEDIA — 0.3% | ||||||||
| TripAdvisor, Inc.(a) | 25,406 | $ | 731,185 | |||||
| HOME & OFFICE FURNISHINGS — 0.2% | ||||||||
| Aaron's Co., Inc. (The)(a) | 17,421 | $ | 330,302 | |||||
| TOTAL COMMON STOCKS — 66.1% (Cost $128,087,504) | $ | 142,976,693 | ||||||
| BONDS & DEBENTURES | ||||||||
| U.S. TREASURIES — 25.6% | ||||||||
| U.S. Treasury Bills — 0.096% 2/25/2021(b) | $ | 12,350,000 | $ | 12,348,308 | ||||
| U.S. Treasury Bills — 0.095% 3/25/2021(b) | 10,000,000 | 9,998,002 | ||||||
| U.S. Treasury Bills — 0.093% 4/22/2021(b) | 7,830,000 | 7,827,877 | ||||||
| U.S. Treasury Bills — 0.091% 5/20/2021(b) | 10,163,000 | 10,159,053 | ||||||
| U.S. Treasury Bills — 0.070% 6/17/2021(b) | 15,000,000 | 14,993,586 | ||||||
| TOTAL U.S. TREASURIES (Cost $55,328,468) | $ | 55,326,826 | ||||||
| TOTAL BONDS & DEBENTURES — 25.6% (Cost $55,328,468) | $ | 55,326,826 | ||||||
| TOTAL INVESTMENT SECURITIES — 91.7% (Cost $183,415,972) | $ | 198,303,519 | ||||||
| SHORT-TERM INVESTMENTS — 8.7% | ||||||||
| State Street Bank Repurchase Agreement — 0.00% 1/4/2021 | ||||||||
| (Dated 12/31/2020, repurchase price of $18,783,000, collateralized by $19,165,300 principal amount U.S. Treasury Bill — 0.00% 2021, fair value $19,158,669) | $ | 18,783,000 | $ | 18,783,000 | ||||
| TOTAL SHORT-TERM INVESTMENTS (Cost $18,783,000) | $ | 18,783,000 | ||||||
| TOTAL INVESTMENTS — 100.4% (Cost $202,198,972) | $ | 217,086,519 | ||||||
| Other assets and liabilities, net — (0.4)% | (848,091 | ) | ||||||
| NET ASSETS — 100.0% | $ | 216,238,428 | ||||||
| (a) | Non-income producing security. |
| (b) | Zero coupon bond. Coupon amount represents effective yield to maturity. |
See Notes to Financial Statements.
NOTE 1 — Disclosure of Fair Value Measurements
The Fund uses the following methods and inputs to establish the fair value of its assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.
Equity securities are generally valued each day at the official closing price of, or the last reported sale price on, the exchange or market on which such securities principally are traded, as of the close of business on that day. If there have been no sales that day, equity securities are generally valued at the last available bid price. Securities that are unlisted and fixed-income and convertible securities listed on a national securities exchange for which the over-the-counter ("OTC") market more accurately reflects the securities’ value in the judgment of the Fund's officers, are valued at the most recent bid price. 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 NYSE. The Fund may utilize an independent fair valuation service in adjusting the valuations of foreign securities. Currency forwards are valued at the closing currency exchange rate which is not materially different from the forward rate. Short-term corporate notes with maturities of 60 days or less at the time of purchase are valued at amortized cost.
Securities for which representative market quotations are not readily available or are considered unreliable by the Adviser are valued as determined in good faith under procedures adopted by the authority of the Fund’s Board of Trustees. Various inputs may be reviewed in order to make a good faith determination of a security’s value. These inputs include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. Fair valuations and valuations of investments that are not actively trading involve judgment and may differ materially from valuations of investments that would have been used had greater market activity occurred.
The Fund classifies its assets based on three valuation methodologies. Level 1 values are based on quoted market prices in active markets for identical assets. Level 2 values are based on significant observable market inputs, such as quoted prices for similar assets and quoted prices in inactive markets or other market observable inputs as noted above including spreads, cash flows, financial performance, prepayments, defaults, collateral, credit enhancements, and interest rate volatility. Level 3 values are based on significant unobservable inputs that reflect the Fund’s determination of assumptions that market participants might reasonably use in valuing the assets. These assumptions consider inputs such as proprietary pricing models, cash flows, prepayments, defaults, and collateral The valuation levels are not necessarily an indication of the risk associated with investing in those securities. The following table presents the valuation levels of the Fund's investments as of December 31, 2020:
| Investments | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks | ||||||||||||||||
| Communications Equipment | $ | 14,277,701 | — | — | $ | 14,277,701 | ||||||||||
| Information Technology Services | 14,087,522 | — | — | 14,087,522 | ||||||||||||
| Apparel, Footwear & Accessory Design | 12,091,066 | — | — | 12,091,066 | ||||||||||||
| P&C Insurance | 9,174,819 | — | — | 9,174,819 | ||||||||||||
| Life Science Equipment | 8,688,814 | — | — | 8,688,814 | ||||||||||||
| Containers & Packaging | 8,422,856 | — | — | 8,422,856 | ||||||||||||
| Semiconductor Devices | 7,925,414 | — | — | 7,925,414 | ||||||||||||
| Industrials | 7,508,768 | — | — | 7,508,768 | ||||||||||||
| Packaged Food | 6,627,590 | — | — | 6,627,590 | ||||||||||||
| Banks | 6,267,515 | — | — | 6,267,515 | ||||||||||||
| Technology Distributors | 5,945,595 | — | — | 5,945,595 | ||||||||||||
| Oil & Gas Services & Equipment | 5,673,860 | — | — | 5,673,860 | ||||||||||||
| Other Wholesalers | 5,566,873 | — | — | 5,566,873 | ||||||||||||
| Industrial Distribution & Rental | 5,465,347 | — | — | 5,465,347 | ||||||||||||
| Agricultural Machinery | 3,968,236 | — | — | 3,968,236 | ||||||||||||
| Cement & Aggregates | 3,732,253 | — | — | 3,732,253 | ||||||||||||
| Flow Control Equipment | 3,130,440 | — | — | 3,130,440 | ||||||||||||
| Application Software | 2,513,001 | — | — | 2,513,001 | ||||||||||||
| Health Care Supply Chain | 2,339,068 | — | — | 2,339,068 | ||||||||||||
| Publishing & Broadcasting | 1,967,425 | — | — | 1,967,425 | ||||||||||||
| Electrical Components | 1,638,392 | — | — | 1,638,392 | ||||||||||||
| Basic & Diversified Chemicals | 1,496,650 | — | — | 1,496,650 | ||||||||||||
| Aircraft & Parts | 1,455,001 | — | — | 1,455,001 | ||||||||||||
| Other Commercial Services | 1,042,150 | — | — | 1,042,150 | ||||||||||||
| Metal Service Center & Other Wholesalers | 908,850 | — | — | 908,850 | ||||||||||||
| Internet Media | 731,185 | — | — | 731,185 | ||||||||||||
| Home & Office Furnishings | 330,302 | — | — | 330,302 | ||||||||||||
| U.S. Treasuries | — | $ | 55,326,826 | — | 55,326,826 | |||||||||||
| Short-Term Investment | — | 18,783,000 | — | 18,783,000 | ||||||||||||
| $ | 142,976,693 | $ | 74,109,826 | — | $ | 217,086,519 | ||||||||||
Transfers of investments between different levels of the fair value hierarchy are recorded at fair value as of the end of the reporting period.
There were no signifcant transfers into or out of Level 3 during the period ended December 31, 2020.
NOTE 2 — Federal Income Tax
The cost of investment securities held at December 31, 2020 (excluding short-term investments), was $183,609,645 for federal income tax purposes. Net unrealized appreciation consists of:
| Gross unrealized appreciation: | $ | 15,211,874 | ||
| Gross unrealized depreciation: | (518,000 | ) | ||
| Net unrealized appreciation: | $ | 14,693,874 |
