10-Q 1 belmar10q.htm BELMAR CAPITAL FUND LLC PERIOD ENDED 3-31-2008 belmar10q.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 (the Act)

For the quarterly period ended March 31, 2008

[   ] Transition Report Pursuant to Section 13 or 15(d) of the Act

For the transition period from _________ to _____________

Commission File Number 000-32633

Belmar Capital Fund LLC
(Exact Name of Registrant as Specified in Its Charter)

Delaware    04-3508106 
(State of Organization)    (I.R.S. Employer Identification No.) 
 
The Eaton Vance Building     
255 State Street     
Boston, Massachusetts    02109 
(Address of Principal Executive Offices)    (Zip Code) 
 
Registrant’s Telephone Number, Including Area Code:    617-482-8260 

None
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Act during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X  No

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. (See definition of “large accelerated filer,” “accelerated filer” “and “smaller reporting company” in Rule 12b-2 of the Act).

Large Accelerated Filer X  Accelerated Filer Non-Accelerated Filer __  Smaller Reporting Company __

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes  No X

1


Belmar Capital Fund LLC
Index to Form 10-Q

PART I.    FINANCIAL INFORMATION    Page 
Item    1.    Financial Statements (Unaudited).   
        Condensed Consolidated Statements of Assets and Liabilities as of 
March 31, 2008 and December 31, 2007 
   
         
        Condensed Consolidated Statements of Operations for the 
Three Months Ended March 31, 2008 and 2007 
   
         
        Condensed Consolidated Statements of Changes in Net Assets for the 
Three Months Ended March 31, 2008 and the 
Year Ended December 31, 2007 
   
           
         
        Condensed Consolidated Statements of Cash Flows for the 
Three Months Ended March 31, 2008 and 2007 
   
         
        Financial Highlights for the Three Months Ended March 31, 2008 and the 
Year Ended December 31, 2007 
   
         
        Notes to Condensed Consolidated Financial Statements as of March 31, 2008      10 
Item    2.    Management’s Discussion and Analysis of Financial Condition 
and Results of Operations (MD&A). 
   
          17 
Item    3.    Quantitative and Qualitative Disclosures About Market Risk.    19 
Item    4.    Controls and Procedures.    21 
PART II.    OTHER INFORMATION     
Item    1.    Legal Proceedings.    23 
Item    1A.    Risk Factors.    23 
Item    2.    Unregistered Sales of Equity Securities and Use of Proceeds.    23 
Item    3.    Defaults Upon Senior Securities.    23 
Item    4.    Submission of Matters to a Vote of Security Holders.    23 
Item    5.    Other Information.    23 
Item    6.    Exhibits.    23 
SIGNATURES    25 
EXHIBIT INDEX    26 

2


PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.

BELMAR CAPITAL FUND LLC
Condensed Consolidated Statements of Assets and Liabilities (Unaudited)

    March 31, 2008    December 31, 2007 

Assets:         
   Investment in Belvedere Capital Fund Company LLC         
         (Belvedere Company)    $ 1,456,136,600    $      1,697,387,202 
   Investment in Partnership Preference Units    109,452,578    119,411,262 
   Investment in Real Estate Joint Venture    89,149,225    93,663,768 
   Investment in Wholly Owned and Co-owned Properties    320,084,128    322,338,520 
   Affiliated investment    1,965,404    1,280,926 

Total investments    $ 1,976,787,935    $      2,234,081,678 
   Cash    1,424,518    1,143,960 
   Distributions and interest receivable    277,554    371,676 
   Interest receivable from affiliated investment    6,175    11,842 
   Swap interest receivable      28,765 
   Open interest rate swap agreements, at value      1,006,924 
   Other assets    1,137,592    1,148,642 

Total assets    $ 1,979,633,774    $      2,237,793,487 

 
Liabilities:         
   Loan payable – Credit Facility    $    425,400,000    $         420,400,000 
   Mortgage note payable    209,874,043    211,217,114 
   Payable for Fund Shares redeemed      9,563,231 
   Open interest rate swap agreements, at value    3,411,813   
   Payable to affiliate for investment advisory and administrative fees    476,183    494,963 
   Payable to affiliate for distribution and servicing fees    313,744    512,735 
   Other accrued expenses:         
         Swap interest expense    130,998   
         Interest expense    1,011,697    1,056,048 
         Other expenses and liabilities    488,797    536,232 

Total liabilities    $    641,107,275    $         643,780,323 

 
Net assets    $ 1,338,526,499    $      1,594,013,164 

 
Shareholders’ capital    $ 1,338,526,499    $      1,594,013,164 

 
Shares outstanding (unlimited number of shares authorized)    13,495,633    14,204,446 

 
Net asset value and redemption price per share    $               99.18    $                  112.22 


See notes to unaudited condensed consolidated financial statements

3


BELMAR CAPITAL FUND LLC
Condensed Consolidated Statements of Operations (Unaudited)

    Three Months Ended 

    March 31, 2008    March 31, 2007 

Investment Income:         
   Dividends allocated from Belvedere Company         
         (net of foreign taxes, $29,503 and $27,936, respectively)    $       7,407,144    $       9,583,549 
   Interest allocated from Belvedere Company    85,519    50,532 
   Security lending income allocated         
         from Belvedere Company, net    28,978    8,764 
   Expenses allocated from Belvedere Company    (2,291,794)    (3,010,832) 

   Net investment income allocated from         
         Belvedere Company    $       5,229,847    $       6,632,013 
   Rental income from Wholly Owned Property    4,540,258    4,540,258 
   Distributions from Partnership Preference Units    1,942,156    669,656 
   Net investment income from Real Estate Joint Venture    1,375,224    1,066,167 
   Net investment income from Co-owned Properties    168,977   
   Interest    683    1,103 
   Interest allocated from affiliated investment    36,004    48,890 
   Expenses allocated from affiliated investment    (4,300)    (4,685) 

Total investment income    $     13,288,849    $     12,953,402 

 
Expenses:         
   Investment advisory and administrative fees    $       1,793,337    $       1,838,593 
   Distribution and servicing fees    665,697    929,813 
   Interest expense on Credit Facility    4,137,173    4,573,627 
   Interest expense on mortgage note    3,192,487    3,235,084 
   Custodian and transfer agent fee    25,322    25,915 
   Miscellaneous    135,767    100,535 

Total expenses    $       9,949,783    $     10,703,567 
Deduct –         
   Reduction of investment advisory         
         and administrative fees    353,599    484,776 

Net expenses    $       9,596,184    $     10,218,791 

 
Net investment income    $       3,692,665    $       2,734,611 


See notes to unaudited condensed consolidated financial statements

4


BELMAR CAPITAL FUND LLC
Condensed Consolidated Statements of Operations (Continued) (Unaudited)

    Three Months Ended

    March 31, 2008    March 31, 2007 

Realized and Unrealized Gain (Loss)         
Net realized gain (loss) –         
 Investment transactions in Belvedere Company         
     (investments and foreign currency)         
     (identified cost basis)(1)    $        1,475,185    $     16,654,048 
 Investment transactions in Partnership         
     Preference Units (identified cost basis)    (37,143)    8,679 
 Interest rate swap agreements(2)    (687,655)    967,662 

Net realized gain    $           750,387    $     17,630,389 

 
Change in unrealized appreciation (depreciation) –         
     Investments in Belvedere Company         
         (investments and foreign currency) (identified cost basis)    $ (148,007,755)    $   (20,721,484) 
     Investments in Partnership Preference Units         
         (identified cost basis)    (9,418,738)    56,344 
     Investment in Real Estate Joint Venture    (4,998,915)    1,238,312 
     Investment in Wholly Owned Property      (37,000,000) 
     Investment in Co-owned Properties    (2,027,529)   
     Interest rate swap agreements    (4,418,737)    (2,077,139) 

Net change in unrealized appreciation (depreciation)    $ (168,871,674)    $   (58,503,967) 

 
Net realized and unrealized loss    $ (168,121,287)    $   (40,873,578) 

 
Net decrease in net assets from operations    $ (164,428,622)    $   (38,138,967) 


(1)      Amounts include net realized gain from redemptions in-kind of $5,638,103 and $15,563,979, respectively.
 
(2)      Amounts represent net interest earned (incurred) in connection with interest rate swap agreements (Note 7).
 

See notes to unaudited condensed consolidated financial statements

5


  BELMAR CAPITAL FUND LLC
Condensed Consolidated Statements of Changes in Net Assets (Unaudited)

    Three Months Ended    Year Ended 
    March 31, 2008    December 31, 2007 

Increase (Decrease) in Net Assets:         
From operations –         
   Net investment income    $              3,692,665    $           11,508,884 
   Net realized gain from investment transactions, foreign currency         
       transactions and interest rate swap agreements    750,387    77,748,932 
   Net change in unrealized appreciation (depreciation) of investments,         
       foreign currency and interest rate swap agreements    (168,871,674)    (42,108,687) 

Net increase (decrease) in net assets from operations    $       (164,428,622)    $           47,149,129 

 
Transactions in Fund Shares –         
   Net asset value of Fund Shares issued to Shareholders in         
       payment of distributions declared    $              6,934,828    $             8,735,995 
   Net asset value of Fund Shares redeemed    (79,784,188)    (395,888,501) 

Net decrease in net assets from Fund Share transactions    $         (72,849,360)    $       (387,152,506) 

 
Distributions –         
   Distributions to Shareholders    $         (18,208,683)    $         (22,004,052) 

Total distributions    $         (18,208,683)    $         (22,004,052) 

 
Net decrease in net assets    $       (255,486,665)    $       (362,007,429) 
 
Net assets:         
   At beginning of period    $       1,594,013,164    $      1,956,020,593 

   At end of period    $       1,338,526,499    $      1,594,013,164 


See notes to unaudited condensed consolidated financial statements

6


  BELMAR CAPITAL FUND LLC
Condensed Consolidated Statements of Cash Flows (Unaudited)

    Three Months Ended

Increase (Decrease) in Cash:    March 31, 2008    March 31, 2007 

Cash Flows From Operating Activities –         
Net decrease in net assets from operations    $ (164,428,622)    $   (38,138,967) 
Adjustments to reconcile net decrease in net assets from         
   operations to net cash flows provided by (used in) operating activities –         
       Net investment income allocated from Belvedere Company    (5,229,847)    (6,632,013) 
       Net investment income from Real Estate Joint Venture    (1,375,224)    (1,066,167) 
       Distributions of earnings from Real Estate Joint Venture    890,852    303,937 
       Net investment income from Co-owned Properties    (168,977)   
       Distributions of earnings from Co-owned Properties    395,840   
       Increase in affliliated investment    (684,478)    (609,312) 
       Decrease in distributions and interest receivable    94,122    31 
       (Increase) decrease in interest receivable from affiliated investment    5,667    (2,756) 
       (Increase) decrease in interest receivable for open swap agreements    28,765    (9,046) 
       Decrease in other assets    11,050   
       Increase (decrease) in payable to affiliate for investment advisory and         
           administrative fees    (18,780)    15,026 
       Increase (decrease) in payable to affiliate for distribution and servicing fees    (198,991)    6,630 
       Increase in interest payable for open swap agreements    130,998   
       Decrease in accrued interest and other accrued expenses and liabilities    (91,786)    (64,295) 
       Purchases of Partnership Preference Units      (12,877,981) 
       Decreases in Partnership Preference Units    502,803    168,750 
       Decrease in investment in Belvedere Company    11,000,000   
       Net interest earned (incurred) on interest rate swap agreements    (687,655)    967,662 
       Net realized gain from investment transactions, foreign currency         
           transactions and interest rate swap agreements    (750,387)    (17,630,389) 
       Net change in unrealized (appreciation) depreciation of investments,         
           foreign currency and interest rate swap agreements    168,871,674    58,503,967 

Net cash flows provided by (used in) operating activities    $       8,297,024    $   (17,064,923) 

 
Cash Flows From Financing Activities –         
   Proceeds from Credit Facility    $       5,000,000    $      32,000,000 
   Repayments of mortgage note    (1,343,071)    (1,300,622) 
   Payments for Fund Shares redeemed    (399,540)    (351,361) 
   Distributions paid to Shareholders    (11,273,855)    (13,268,056) 

Net cash flows provided by (used in) financing activities    $     (8,016,466)    $      17,079,961 

 
Net increase in cash    $          280,558    $             15,038 
 
Cash at beginning of period    $       1,143,960    $           417,189 

Cash at end of period    $       1,424,518    $           432,227 


See notes to unaudited condensed consolidated financial statements

7


BELMAR CAPITAL FUND LLC
Condensed Consolidated Statements of Cash Flows (Continued) (Unaudited)

    Three Months Ended

    March 31, 2008    March 31, 2007 

Supplemental Disclosure and Non-cash Operating and         
     Financing Activities –         
         Interest paid on loan – Credit Facility    $       4,176,824    $       4,492,251 
         Interest paid on mortgage note    $       3,197,188    $       3,239,637 
         Interest paid (received) on swap agreements, net    $          527,892    $       (958,616) 
         Reinvestment of distributions paid to Shareholders    $       6,934,828    $       8,735,995 
         Market value of securities distributed in payment of redemptions    $     88,947,879    $     78,947,939 

See notes to unaudited condensed consolidated financial statements

8


  BELMAR CAPITAL FUND LLC
Financial Highlights (Unaudited)

    Three Months Ended        Year Ended 
    March 31, 2008        December 31, 2007 

Net asset value – Beginning of period    $                  112.220        $                110.890 

Income (loss) from operations             

Net investment income(1)    $                      0.267        $                    0.718 
Net realized and unrealized gain (loss)    (11.997)        1.862 

Total income (loss) from operations    $                 (11.730)        $                    2.580 

Distributions             

Distributions to Shareholders    $                   (1.310)        $                  (1.250) 

Total distributions    $                   (1.310)        $                  (1.250) 

 
Net asset value – End of period    $                   99.180        $                112.220 

 
Total Return(2)    (10.49)%    (3)    2.34% 

Ratios as a percentage of average net assets             

Investment advisory and administrative fees, distribution and             
        servicing fees and other operating expenses(4)(5)    1.30%    (9)    1.20% 
Interest and other borrowing costs(4)(6)    1.18%    (9)    1.25% 
Expenses of Wholly Owned Property(7)    0.91%    (9)    0.72% 

Total expenses    3.39%    (9)    3.17% 
Net investment income(6)    1.05%    (9)    0.64% 

Ratios as a percentage of average gross assets (8)             

Investment advisory and administrative fees, distribution and             
        servicing fees and other operating expenses(4)(5)    0.80%    (9)    0.82% 
Interest and other borrowing costs(4)(6)    0.72%    (9)    0.86% 
Expenses of Wholly Owned Property(7)    0.56%    (9)    0.49% 

Total expenses    2.08%    (9)    2.17% 
Net investment income(6)    0.65%    (9)    0.44% 

Supplemental Data             

Net assets, end of period (000’s omitted)    $               1,338,526        $              1,594,013 
Portfolio turnover of Tax-Managed Growth Portfolio(10)    0%    (11)    2% 

 

(1)      Calculated using average shares outstanding.
 
(2)      Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested.
 
(3)      Not annualized.
 
(4)      Includes the expenses of Belmar Capital Fund LLC (Belmar Capital) and Belmar Realty Corporation (Belmar Realty). Does not include expenses of Belmar Realty's Wholly Owned Property.
 
(5)      Includes Belmar Capital’s share of Belvedere Capital Fund Company LLC's (Belvedere Company) allocated expenses, including those expenses allocated from Tax-Managed Growth Portfolio.
 
(6)      Ratios do not include net interest earned or incurred in connection with interest rate swap agreements. Had such amounts been included, ratios would have been lower or higher.
 
(7)      Represents expenses incurred by Belmar Realty's Wholly Owned Property.
 
(8)      Average gross assets means the average daily amount of the value of all assets of Belmar Capital (including Belmar Capital's interest in Belvedere Company and Belmar Capital's ratable share of the assets of its direct and indirect subsidiaries, real estate joint ventures and co-owned real property investments), without reduction by any liabilities.
 
(9)      Annualized.
 
(10)      Excludes the value of portfolio securities contributed or distributed as a result of in-kind shareholder transactions. The total turnover rate of Tax- Managed Growth Portfolio including in-kind contributions and distributions was 1% and 6% for the three months ended March 31, 2008 and the year ended December 31, 2007, respectively.
 
(11)      Amounts to less than 1%.
 

See notes to unaudited condensed consolidated financial statements

9


BELMAR CAPITAL FUND LLC as of March 31, 2008
Notes to Condensed Consolidated Financial Statements (Unaudited)

1 Basis of Presentation

The condensed consolidated interim financial statements of Belmar Capital Fund LLC (Belmar Capital) and its subsidiaries (collectively, the Fund) have been prepared, without audit, in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted as permitted by such rules and regulations. All adjustments, consisting of normal recurring adjustments, have been included. Management believes that the disclosures are adequate to present fairly the financial position, results of operations, cash flows and financial highlights as of the dates and for the periods presented. It is suggested that these interim financial statements be read in conjunction with the financial statements and the notes thereto included in the Fund’s latest annual report on Form 10-K. Results for interim periods are not necessarily indicative of those to be expected for the full fiscal year.

The condensed consolidated statement of assets and liabilities at December 31, 2007 and the condensed consolidated statement of changes in net assets and the financial highlights for the year then ended have been derived from the December 31, 2007 audited financial statements but do not include all of the information and footnotes required by GAAP for complete financial statements as permitted by the instructions to Form 10-Q and Article 10 of Regulation S-X.

2 Recently Issued Accounting Pronouncements

In March 2008, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 161, “Disclosures about Derivative Instruments and Hedging Activities - an amendment of FASB Statement No. 133.” SFAS No. 161 requires enhanced disclosures about an entity’s derivative and hedging activities including qualitative disclosures about the objectives and strategies for using derivative instruments, and quantitative disclosures about fair value amounts as well as gains and losses on derivative instruments. SFAS No. 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008. Management is currently evaluating the impact the adoption of SFAS No. 161 will have on the Fund’s financial statement disclosures.

3 Fair Value Hierarchy

The Fund adopted SFAS No. 157, “Fair Value Measurements,” on January 1, 2008 as required. SFAS No. 157 establishes a three-tier hierarchy to prioritize the assumptions, referred to as inputs, used in valuation techniques to measure fair value. The three levels of the fair value hierarchy under SFAS No. 157 are described below.

10


Basis of Fair Value Measurement

  • Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
  • Level 2 – Quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly;
  • Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

In determining the fair value of its investments, the Fund uses appropriate valuation techniques based on available inputs. In accordance with SFAS No. 157, the Fund maximizes its use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Accordingly, when available, the Fund measures fair value using Level 1 inputs because they generally provide the most reliable evidence of fair value. If market data is not readily available, fair value is based upon other significant unobservable inputs such as inputs that reflect the Fund’s own assumptions. As required by SFAS No. 157, investments valued using unobservable inputs are classified to the lowest level of any input that is most significant to the valuation. Thus, a valuation may be classified in Level 3 even though there may be significant inputs that are readily observable.

The Fund’s investment in Belvedere Capital Fund Company LLC (Belvedere Company) and Cash Management Portfolio (Cash Management) are classified within Level 1 of the fair value hierarchy. Interest rate swap agreements are classified within Level 2 of the fair value hierarchy while the Fund’s real estate investments are classified within Level 3 of the fair value hierarchy. The Fund’s assets classified as Level 3 as of March 31, 2008 represent approximately 26.2% of the Fund’s total assets.

The following table presents for each of the hierarchy levels, the Fund’s assets and liabilities that are measured at fair value as of March 31, 2008.

        Fair Value Measurements at March 31, 2008

Description   March 31, 2008    Level 1    Level 2    Level 3 

Assets                 
Investment in Belvedere                 
   Company    $ 1,456,136,600    $ 1,456,136,600    $                -    $                    - 
Partnership Preference Units    109,452,578        109,452,578 
Real Estate Joint Venture    89,149,225        89,149,225 
Wholly Owned and Co-owned                 
   Properties    320,084,128        320,084,128 
Short-Term Investment    1,965,404    1,965,404     

Total   $ 1,976,787,935    $ 1,458,102,004    $                -    $ 518,685,931 

 
 
Liabilities                 
Interest Rate Swap Agreements    $        3,411,813    $                      -    $  3,411,813    $                    - 

Total   $        3,411,813    $                      -    $  3,411,813    $                    - 


The following table presents the changes in the Level 3 fair value category for the three months ended March 31, 2008. The Fund classifies investments in Level 3 of the fair value hierarchy when there is reliance on at least one significant unobservable input to the fair value measurement. In accordance with SFAS No. 157, the Fund’s real estate investments are considered Level 3 investments.

11


    Level 3 Fair Value Measurements    

    Partnership        Wholly Owned     
    Preference    Real Estate    and Co-owned     
    Units    Joint Venture    Properties    Total 

Beginning Balance as of January 1, 2008    $ 119,411,262    $ 93,663,768    $ 322,338,520    $ 535,413,550 
Net realized loss    (37,143)        (37,143) 
Net change in unrealized appreciation                 
   (depreciation)    (9,418,738)    (4,998,915)    (2,027,529)    (16,445,182) 
Net sales    (502,803)        (502,803) 
Net investment income(1)      1,375,224    168,977    1,544,201 
Other(2)      (890,852)    (395,840)    (1,286,692) 
Net transfers in and/or out of Level 3         

Ending Balance as of March 31, 2008    $ 109,452,578    $ 89,149,225    $ 320,084,128    $ 518,685,931 

 
 
Net change in unrealized appreciation                 
   (depreciation) from investments still                 
   held at March 31, 2008    $   (9,456,200)    $ (4,998,915)    $   (2,027,529)    $ (16,482,644) 


(1)      Represents net investment income recorded in accordance with the equity method.
 
(2)      Represents distributions of earnings recorded in accordance with the equity method.
 

4 Investment Transactions

The following table summarizes the Fund’s investment transactions, other than short-term investments, for the three months ended March 31, 2008 and 2007:

    Three Months Ended

Investment Transactions   March 31, 2008   March 31, 2007

 
Decreases in investment in Belvedere Company    $           99,947,879    $    78,947,939 
Increases in Partnership Preference Units(1)    $                            -    $    12,877,981 
Decreases in Partnership Preference Units    $                502,803    $         168,750 
Decreases in investment in Real Estate Joint Venture    $                890,852    $         303,937 
Decreases in investment in Co-owned Property    $                395,840    $                     - 


(1)      Increases in Partnership Preference Units for the three months ended March 31, 2007 represent Partnership Preference Units purchased from real estate investment affiliates of other investment funds advised by Boston Management and Research (Boston Management).
 

5 Indirect Investment in the Portfolio

The following table summarizes the Fund’s investment in Tax-Managed Growth Portfolio (the Portfolio) through Belvedere Company for the three months ended March 31, 2008 and 2007, including allocations of income, expenses and net realized and unrealized gains (losses) for the respective periods then ended:

    Three Months Ended

    March 31, 2008    March 31, 2007 

Belvedere Company’s interest in the Portfolio(1)    $ 13,119,762,086    $ 14,582,219,042 
The Fund’s investment in Belvedere Company(2)    $   1,456,136,600    $   1,952,453,268 
Income allocated to Belvedere Company from the Portfolio    $        66,760,998    $        70,744,130 
Income allocated to the Fund from Belvedere Company    $          7,521,641    $          9,642,845 
Expenses allocated to Belvedere Company from the Portfolio    $        15,190,813    $        16,470,855 
Expenses allocated to the Fund from Belvedere Company(3)    $          2,291,794    $          3,010,832 

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    Three Months Ended

    March 31, 2008    March 31, 2007 

Net realized gain from investment transactions and foreign         
     currency transactions allocated to Belvedere Company from         
     the Portfolio    $         13,284,076    $   122,914,854 
Net realized gain from investment transactions and foreign         
     currency transactions allocated to the Fund from Belvedere         
     Company    $           1,475,185    $      16,654,048 
Net change in unrealized appreciation (depreciation) of         
     investments and foreign currency allocated to Belvedere         
     Company from the Portfolio    $ (1,300,661,962)    $ (150,839,988) 
Net change in unrealized appreciation (depreciation) of         
     investments and foreign currency allocated to the Fund         
     from Belvedere Company    $    (148,007,775)    $   (20,721,484) 


(1)      As of March 31, 2008 and 2007, the value of Belvedere Company’s interest in the Portfolio represents 74.5% and 73.3% of the Portfolio’s net assets, respectively.
 
(2)      As of March 31, 2008 and 2007, the Fund’s investment in Belvedere Company represents 11.1% and 13.4% of Belvedere Company’s net assets, respectively.
 
(3)      Expenses allocated to the Fund from Belvedere Company represent:
 
    Three Months Ended

    March 31, 2008    March 31, 2007 

Expenses allocated from the Portfolio    $                  1,711,412    $             2,245,187 
Servicing fee    $                     567,012    $                749,421 
Operating expenses    $                       13,370    $                  16,224 


A summary of the Portfolio’s Statement of Assets and Liabilities at March 31, 2008, December 31, 2007 and March 31, 2007 and its operations for the three months ended March 31, 2008, for the year ended December 31, 2007 and for the three months ended March 31, 2007 follows:

    March 31, 2008    December 31, 2007    March 31, 2007 

 
Investments, at value    $ 17,650,169,693    $    19,936,263,306    $ 19,937,460,086 
Other assets    56,841,937    43,955,996    37,893,469 

Total assets    $ 17,707,011,630    $    19,980,219,302    $ 19,975,353,555 

Collateral for securities loaned    $        94,532,436    $         107,661,941    $        73,078,289 
Management fee payable    6,296,266    7,154,208    7,081,409 
Other liabilities    1,254,240    1,241,923    702,785 

Total liabilities    $      102,082,942    $         116,058,072    $        80,862,483 

Net assets    $ 17,604,928,688    $    19,864,161,230    $ 19,894,491,072 

Total investment income    $        89,568,864    $         404,322,644    $        96,544,634 

Investment adviser fee    $        19,484,900    $           87,681,000    $        21,767,375 
Other expenses    800,316    3,023,904    714,355 
Total expense reductions    (12)    (124)    (89) 

Net expenses    $        20,285,204    $           90,704,780    $        22,481,641 

Net investment income    $        69,283,660    $         313,617,864    $        74,062,993 
Net realized gain from investment             
   transactions and foreign currency             
   transactions(1)    44,806,471    891,474,938    189,585,596 
Net change in unrealized             
   appreciation (depreciation) of             
   investments and foreign currency    (1,777,809,047)    (239,534,188)    (228,797,508) 

Net increase (decrease) in net assets             
   from operations    $ (1,663,718,916)    $         965,558,614    $        34,851,081 


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(1)      Amounts include net realized gain from redemptions in-kind of $90,653,270, $624,934,809 and $177,053,814, respectively.
 

6 Investment in Real Estate Joint Venture

At March 31, 2008 and December 31, 2007, Belmar Realty Corporation (Belmar Realty) held an investment in one real estate joint venture (Real Estate Joint Venture), Brazos Property Trust (Brazos). Belmar Realty held a majority economic interest of 80.6% and 82.1% in Brazos as of March 31, 2008 and December 31, 2007, respectively. Brazos owns industrial distribution properties. Condensed financial data of the Real Estate Joint Venture is presented below.

    March 31, 2008     December 31, 2007

Assets:         
Investment in real estate    $             339,102,475    $         341,911,481 
Other assets    5,395,793    5,762,549 

   Total assets    $             344,498,268    $         347,674,030 

Liabilities and Shareholders’ Equity:         
Mortgage notes payable(1)    $             228,689,137    $         228,745,957 
Other liabilities    4,962,152    4,603,094 

   Total liabilities    $             233,651,289    $         233,349,051 

Shareholders’ equity    $             110,846,979    $         114,324,979 

   Total liabilities and shareholders’ equity    $             344,498,268    $         347,674,030 


(1)      The fair value of the mortgage notes payable is approximately $232,100,000 and $229,200,000 as of March 31, 2008 and December 31, 2007, respectively. The mortgage notes payable generally cannot be prepaid or otherwise disposed of without incurring a substantial prepayment penalty unless the rental property financed by the mortgage notes payable is sold. Management generally has no current plans to prepay or otherwise dispose of the mortgage notes payable without the sale of the related rental property prior to the maturity date. The fair value of the mortgage notes is based on estimates using discounted cash flow analysis and current prevailing interest rates.
 
    Three Months Ended

    March 31, 2008    March 31, 2007 

Revenues    $             7,495,688    $            6,741,133 
Expenses    5,789,455    5,431,346 

Net investment income before unrealized         
   appreciation (depreciation)    $             1,706,233    $            1,309,787 
Change in net unrealized appreciation         
   (depreciation)    (4,293,381)    585,323 

Net investment income (loss)    $          (2,587,148)    $            1,895,110 


7 Interest Rate Swap Agreements

Belmar Capital has entered into interest rate swap agreements with Merrill Lynch Capital Services, Inc. to fix the cost of a substantial portion of its borrowings under the Credit Facility and to mitigate in part the impact of interest rate changes on Belmar Capital’s net asset value. Under such agreements, Belmar Capital has agreed to make periodic payments at fixed rates in exchange for floating-rate payments from the counterparty at a predetermined spread to one-month London Interbank Offered Rate (LIBOR). The notional or contractual amounts of these instruments may not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these investments is meaningful

14


only when considered in conjunction with all related assets, liabilities and agreements. Interest rate swap agreements in place at March 31, 2008 and December 31, 2007 are listed below.

    Notional            Initial        Unrealized Appreciation
    Amount            Optional    Final    (Depreciation) at
Effective (000’s  Fixed Floating Termination Termination March 31, December 31,
Date   omitted)    Rate    Rate    Date    Date    2008    2007 

10/03    $ 55,831    4.875%    LIBOR + 0.20%    4/04    6/10    $      (67,626)    $     139,846 
10/03    43,010    4.755%    LIBOR + 0.20%    7/04    6/10    (47,910)    149,572 
10/03    56,978    4.695%    LIBOR + 0.20%    9/04    6/10    (60,743)    230,320 
10/03    64,418    4.565%    LIBOR + 0.20%    3/05    6/10    (61,189)    328,017 
10/03    110,068    3.973%    LIBOR + 0.20%      6/10    (3,102,571)    25,871 
2/04    58,363    4.90%    LIBOR + 0.20%    8/04    6/10    (71,774)    133,298 

                        $ (3,411,813)    $  1,006,924 


8 Segment Information

Belmar Capital pursues its investment objective primarily by investing indirectly in the Portfolio through Belvedere Company. The Portfolio is a diversified investment company that emphasizes investments in common stocks of domestic and foreign growth companies that are considered by its investment adviser to be high in quality and attractive in their long-term investment prospects. The Fund’s investment income includes the Fund’s pro rata share of Belvedere Company’s net investment income. Separate from its investment in Belvedere Company, Belmar Capital invests in real estate investments primarily through its subsidiary, Belmar Realty. Belmar Realty invests directly and indirectly in Partnership Preference Units, a Real Estate Joint Venture (Note 6), interests in leasehold improvements (Wholly Owned Property) through its subsidiary, Bel Stamford Investors LLC and interests in Co-owned Properties through its subsidiaries Bel SML I, LLC (Bel SML I) and Bel Marquette I, LLC (Bel Marquette I). The Fund’s investment income from real estate investments primarily consists of rental income from Wholly Owned Property, distribution income from Partnership Preference Units and net investment income from the Real Estate Joint Venture and Co-owned Properties.

Belmar Capital evaluates performance of the reportable segments based on the net increase (decrease) in net assets from operations of the respective segment, which includes net investment income (loss), net realized gain (loss) and the net change in unrealized appreciation (depreciation).

The Fund’s Credit Facility borrowings and related interest expense are centrally managed by the Fund. A portion of the Credit Facility borrowings and related interest expense have been approximated and allocated to the real estate segment for presentation purposes herein. Credit Facility borrowings allocated to the real estate segment primarily represent estimated net amounts borrowed to purchase the Fund’s interest in real estate investments. The Fund’s interest rate swap agreement balances are presented as part of the real estate segment for presentation purposes herein. The accounting policies of the reportable segments are the same as those for Belmar Capital on a consolidated basis. No reportable segments have been aggregated. Reportable information by segment is as follows:

    Three Months Ended

    March 31, 2008    March 31, 2007 

Investment income         
   The Portfolio*    $        5,229,847    $         6,632,013 
   Real Estate    8,026,615    6,276,081 
   Unallocated    32,387    45,308 

Total investment income    $      13,288,849    $       12,953,402 


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    Three Months Ended 

    March 31, 2008    March 31, 2007 

Net increase (decrease) in         
   net assets from operations         
   The Portfolio*    $                (142,415,798)    $                     1,022,074 
   Real Estate    (20,550,241)    (36,825,913) 
   Unallocated(1)    (1,462,583)    (2,335,128) 

Net decrease in net assets         
   from operations    $                (164,428,622)    $                (38,138,967) 

 
    March 31, 2008    December 31, 2007 

Net assets         
   The Portfolio*    $                1,369,987,901    $              1,601,648,138 
   Real Estate    42,423,456    63,062,397 
   Unallocated(2)    (73,884,858)    (70,697,371) 

Net assets    $                1,338,526,499    $              1,594,013,164 


*    Belmar Capital invests indirectly in the Portfolio through Belvedere Company.

(1)  Unallocated amounts pertain to the overall operation of Belmar Capital and do not pertain to either segment. Included in this amount
       are primarily distribution and servicing fees and unallocated Credit Facility interest expense as follows:

    Three Months Ended

    March 31, 2008    March 31, 2007 

Distribution and servicing fees    $                        665,697    $                    929,813 
Credit Facility interest expense    $                        744,691    $                 1,372,088 


(2)      Amounts include unallocated liabilities, net of unallocated assets. Unallocated liabilities primarily consist of outstanding unallocated Credit Facility borrowings. Such borrowings are used to finance ongoing operations of the Fund and are not allocable to reportable segments. As of March 31, 2008 and December 31, 2007, such borrowings totaled approximately $76,505,000 and $72,256,000, respectively. Unallocated assets represent direct cash and short-term investments held by the Fund, including the Fund’s investment in Cash Management. As of March 31, 2008 and December 31, 2007, such amounts totaled approximately $3,139,000 and $2,336,000, respectively.
 

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A).

The information in this report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the Act). Forward-looking statements typically are identified by use of terms such as “may,” “will,” “should,” “might,” “expect,” “anticipate,” “estimate,” and similar words, although some forward-looking statements are expressed differently. The actual results of Belmar Capital Fund LLC (the Fund) could differ materially from those contained in the forward-looking statements due to a number of factors. The Fund undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law. Factors that could affect the Fund’s performance include a decline in the U.S. stock markets or in general economic conditions, adverse developments affecting the real estate industry, or fluctuations in interest rates.

The following discussion should be read in conjunction with the Fund’s unaudited condensed consolidated financial statements and related notes in Item 1 above.

MD&A for the Quarter Ended March 31, 2008 Compared to the Quarter Ended March 31, 2007.

Performance of the Fund.(1) The Fund’s investment objective is to achieve long-term, after-tax returns for shareholders. Eaton Vance Management (Eaton Vance), as the Fund’s manager, measures the Fund’s success in achieving its objective based on the investment returns of the Fund, using the S&P 500 Index as the Fund’s primary performance benchmark. The S&P 500 Index is a broad-based, unmanaged index of common stocks commonly used as a measure of U.S. stock market performance. Eaton Vance’s primary focus in pursuing total return is on the Fund’s common stock portfolio, which consists of its indirect interest in Tax-Managed Growth Portfolio (the Portfolio). The Fund invests in the Portfolio through its interest in Belvedere Capital Fund Company LLC (Belvedere Company). The Fund’s performance will differ from that of the Portfolio primarily due to its investments outside the Portfolio. In measuring the performance of the Fund’s real estate investments, Eaton Vance considers whether, through current returns and changes in valuation, the real estate investments achieve returns that over the long-term exceed the cost of the borrowings incurred to acquire such investments and thereby add to Fund returns. The Fund has entered into interest rate swap agreements to fix the cost of a substantial portion of its borrowings under the Credit Facility (described under "Liquidity and Capital Resources" below) and to mitigate in part the impact of interest rate changes on the Fund’s net asset value.

The Fund’s total return was -10.49% for the quarter ended March 31, 2008. This return reflects a decrease in the Fund’s net asset value per share from $112.22 to $99.18 and a distribution of $1.31 per share during the period. The total return of the S&P 500 Index was -9.44% over the same period. Last year, the Fund had a total return of -1.97% for the quarter ended March 31, 2007. This return reflected a decrease in the Fund’s net asset value per share from $110.89 to $107.49 and a distribution of $1.25 per share during the period. The S&P 500 Index had a total return of 0.64% over the same period.

Performance of the Portfolio. Financial markets endured a difficult first quarter as uncertainty about the credit market and the economy weighed on investors. Consumers battled rising food and energy prices while investors struggled with weak economic data and mounting inflation concerns. To address liquidity pressures, the Federal Reserve lowered the Federal funds and discount rates. Most popular indices failed to recover from mid-March lows and realized losses in the first quarter. The tech-heavy NASDAQ Composite lost 14%, while the blue-chip Dow Jones Industrial Average lost 7.6% and the S&P 500 Index declined 9.44% . It was the worst quarter for major indices since the third quarter of 2002, when the equity markets were approaching the lowest point of a protracted bear market.

Amid increased market volatility, every economic sector of the S&P 500 Index registered declines. The consumer staples, industrials and materials sectors fared relatively better than the market, while the financials, information technology and telecommunication sectors registered double digit declines. Market-leading industries of the first quarter included road and rail, health care equipment and supplies, as well as air freight and logistics. In contrast, the thrifts and mortgage finance, wireless telecommunication services and investment banks industries realized double digit negative returns. On average during the course of the quarter, mid-cap and small-cap stocks continued to lag their larger-cap counterparts and value style gained over growth.

(1)      Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Total returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. The Portfolio’s total return for the period reflects the total return of another fund that invests in the Portfolio adjusted for non-Portfolio expenses of that fund. Performance is for the stated time period only and is not annualized; due to market volatility, the Fund’s current performance may be lower or higher. The performance of the Fund and the Portfolio is compared to that of their benchmark, the S&P 500 Index. It is not possible to invest directly in an index.
 

17


The Portfolio invests on a long-term basis in a broadly diversified portfolio consisting primarily of common stocks of established growth companies. The Portfolio slightly outperformed its benchmark, the S&P 500 Index, with a return of -8.45% during the period. The Portfolio’s out-performance was driven by positive sector allocation decisions and relatively stronger stock selection versus the S&P 500 Index. For comparison, total return of the Portfolio in the first quarter of 2007 was 0.14%, slightly lagging the S&P 500 Index return of 0.64% over the same period.

The Portfolio remained overweight in the industrials, consumer staples and discretionary sectors during the period, while continuing to underweight the technology, utilities and materials sectors. A de-emphasis of the lagging information technology and health care sectors benefited the Portfolio’s performance, as did relatively stronger stock selection within the consumer discretionary and utilities sectors. The Portfolio’s relatively lower exposure to credit sensitive financials such as thrifts, mortgage and service stocks was beneficial as was an overweight in the defensive staples industries such as beverages and food products.

In contrast, investment choices within the machinery, and road and rail industries hindered returns. Additionally, the Portfolio’s limited exposure to the stronger performing chemicals, and metals and mining industries coupled with stock selection within the energy equipment and service industry also negatively impacted returns.

Performance of Real Estate Investments. The Fund’s real estate investments are held through Belmar Realty Corporation (Belmar Realty). As of March 31, 2008, real estate investments included: a real estate joint venture (Real Estate Joint Venture), Brazos Property Trust (Brazos); a wholly owned real property (Wholly Owned Property), Bel Stamford Investors LLC (Bel Stamford); two tenancy-in-common interests in real properties (Co-owned Properties), Bel SML I, LLC (Bel SML I) and Bel Marquette I, LLC (Bel Marquette I); and a portfolio of income-producing preferred equity interests in real estate operating partnerships that generally are affiliated with and controlled by real estate investment trusts (REITs) that are publicly traded (Partnership Preference Units). Brazos owns industrial distribution properties. Bel Stamford, Bel SML I and Bel Marquette I own interests in office buildings leased to single tenants.

During the quarter ended March 31, 2008, the Fund’s net investment income from real estate investments was approximately $4.8 million compared to approximately $3.0 million for the quarter ended March 31, 2007, an increase of $1.8 million or 60%. The increase was due to higher distributions from investments in Partnership Preference Units due to more Partnership Preference Units held on average during the quarter, increases in the net investment income of Brazos and the acquisition of Bel SML I in May 2007 and Bel Marquette I in July 2007.

The fair value of the Fund’s real estate investments was approximately $518.7 million at March 31, 2008 compared to approximately $535.4 million at December 31, 2007, a net decrease of $16.7 million or 3%. This net decrease was due to a net decline in the fair values of Partnership Preference Units held at quarter end, a net decrease in the fair value of Belmar Realty’s investment in Brazos and a decrease in the fair value of Bel SML I. The Fund’s investments in real properties achieved modest returns during the quarter, benefiting from earnings in the expected range offset, however, by capitalization rates and discount rates which widened slightly. These rates reflected the reduced availability of debt financing and uncertainty on the direction of valuations for institutional-grade real estate, thereby causing a decrease in transactional activity. The fair values of Partnership Preference Units decreased during the quarter due to continued widening of credit spreads, partially offset by a decline in interest rates during the quarter ended March 31, 2008.

During the quarter ended March 31, 2008, the Fund saw net unrealized depreciation in the fair value of its real estate investments of approximately $16.4 million compared to net unrealized depreciation of approximately $35.7 million during the quarter ended March 31, 2007. Net unrealized depreciation of approximately $16.4 million consisted primarily of approximately $9.4 million of net unrealized depreciation in the value of the Partnership Preference Units, $5.0 million of net unrealized depreciation in Belmar Realty’s investment in Brazos and $2.0 million of net unrealized depreciation in Bel SML I.

Performance of Interest Rate Swap Agreements. For the quarter ended March 31, 2008, net realized and unrealized losses on the Fund’s interest rate swap agreements totaled approximately $5.1 million, compared to approximately $1.1 million of net realized and unrealized losses for the quarter ended March 31, 2007. Net realized and unrealized losses on swap agreements for the quarter ended March 31, 2008 consisted of $4.4 million of net unrealized losses due to changes in swap agreement valuations and $0.7 million of periodic net payments made pursuant to outstanding swap agreements (and classified as net realized losses on interest rate swap agreements in the Fund’s unaudited condensed consolidated financial statements). For the quarter ended March 31, 2007, net realized and unrealized losses on swap agreements consisted of $2.1 million of net unrealized losses due to changes in swap agreement valuations, partially offset by $1.0 million of periodic net payments received pursuant to outstanding swap agreements. The negative contribution to Fund performance

18


from changes in swap agreement valuation for the quarter ended March 31, 2008 was attributable to a decrease in swap rates during the quarter. The negative contribution to Fund performance for the quarter ending March 31, 2007 from changes in swap agreement valuation was attributable to a decrease in the remaining term of the agreements and a modest decrease in swap rates during the quarter.

Fair Value Measurements. The Fund adopted Statement of Financial Accounting Standards (SFAS) No. 157, “Fair Value Measurements,” on January 1, 2008 as required. SFAS No. 157 establishes a three-tier hierarchy to prioritize the assumptions, referred to as inputs, used in valuation techniques to measure fair value. For more information see Note 3 to the unaudited condensed consolidated financial statements.

Liquidity and Capital Resources.

Outstanding Borrowings. The Fund has entered into credit arrangements with Dresdner Kleinwort Holdings I, Inc. (DKH) and Merrill Lynch Mortgage Capital, Inc. (MLMC) (collectively, the Credit Facility) primarily to finance the Fund’s real estate investments and to satisfy the liquidity needs of the Fund. The Fund will continue to use the Credit Facility for such purposes in the future. In the future, the Fund may increase the size of the Credit Facility (subject to lender consent) and the amount of outstanding borrowings thereunder. As of March 31, 2008, the Fund had outstanding borrowings of $425.4 million and unused loan commitments of $94.1 million under the Credit Facility.

The Fund has entered into interest rate swap agreements with respect to a substantial portion of its borrowings under the Credit Facility. Pursuant to these agreements, the Fund makes periodic payments to the counterparty at predetermined fixed rates in exchange for floating rate payments that fluctuate with one-month LIBOR. During the terms of the outstanding interest rate swap agreements, changes in the underlying values of the agreements are recorded as unrealized appreciation or depreciation. As of March 31, 2008, the accumulated unrealized depreciation related to the interest rate swap agreements was approximately $3.4 million. As of December 31, 2007, the accumulated unrealized appreciation related to the interest rate swap agreements was approximately $1.0 million.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Interest Rate Risk. The Fund’s primary exposure to interest rate risk arises from its real estate investments that are financed by the Fund with floating rate borrowings under the Credit Facility and by fixed-rate secured mortgage debt obligations of Bel Stamford. Partnership Preference Units are fixed rate instruments whose values will generally decrease when interest rates rise and increase when interest rates fall. The interest rates on borrowings under the Credit Facility are reset at regular intervals based on one-month LIBOR. The Fund has entered into interest rate swap agreements to fix the cost of a substantial portion of its borrowings under the Credit Facility and to mitigate in part the impact of interest rate changes on the Fund’s net asset value. Under the terms of the interest rate swap agreements, the Fund makes cash payments at fixed rates in exchange for floating rate payments that fluctuate with one-month LIBOR. The Fund’s interest rate swap agreements will generally increase in value when interest rates rise and decrease in value when interest rates fall. In the future, the Fund may use other interest rate hedging arrangements (such as caps, floors and collars) to fix or limit borrowing costs. The use of interest rate hedging arrangements is a specialized activity that can expose the Fund to significant loss.

The following table summarizes the contractual maturities and weighted-average interest rates associated with the Fund’s significant non-trading financial instruments. The Fund has no market risk sensitive instruments held for trading purposes. This information should be read in conjunction with Note 7 to the Fund’s unaudited condensed consolidated financial statements in Item 1 above.

19


Interest Rate Sensitivity
Cost, Principal (Notional) Amount
by Contractual Maturity and Callable Date
for the Twelve Months Ended March 31,*
 
                                Fair Value
as of March
31, 2008
                               
    2009   2010   2011   2012   2013   Thereafter   Total  

 
Rate sensitive                                 
liabilities:                                 

Long-term debt:                                 

Fixed-rate mortgages    $5,543,468    $  5,890,259    $    6,258,743    $6,619,251    $7,064,369    $178,497,953    $209,874,043    $218,000,000 
 
Average interest rate    6.00%           6.00%    6.00%             6.00%    6.00%    6.00%    6.00%     

Variable-rate Credit                                 
Facility            $425,400,000                $425,400,000    $425,400,000 
 
Average interest rate            2.91%                2.91%     
 
Rate sensitive                                 
derivative financial                                 
instruments:                                 

Pay fixed / receive                                 
variable interest rate                                 
swap agreements            $388,668,000                $388,668,000    $ (3,411,813) 
 
Average pay rate            4.53%                4.53%     
 
Average receive rate            2.90%                2.90%     

Rate sensitive                                 
investments:                                 

Fixed-rate Partnership                                 
Preference Units:                                 

Colonial Realty                                 
Limited Partnership,                                 
7.25% Series B                                 
Cumulative                                 
Redeemable Perpetual                                 
Preferred Units,                                 
Callable 8/24/09,                                 
Current Yield: 9.00%        $19,657,614                    $  19,657,614    $  16,514,800 
 
Essex Portfolio, L.P.,                                 
7.875% Series B                                 
Cumulative                                 
Redeemable Preferred                                 
Units,                                 
Callable 12/31/09,                                 
Current Yield: 9.14%        $13,756,573                    $  13,756,573    $  11,842,105 
 
Essex Portfolio, L.P.,                                 
7.875% Series D                                 
Cumulative                                 
Redeemable Preferred                                 
Units,                                 
Callable 7/28/10,                                 
Current Yield: 9.15%            $12,873,400                $12,873,400    $10,763,050 

20


                                Fair Value 
as of March 
31, 2008 
                               
    2009         2010   2011   2012          2013   Thereafter   Total  

 
Liberty Property                                 
Limited Partnership,                                 
7.40% Series H                                 
Cumulative                                 
Redeemable Preferred                                 
Units,                                 
Callable 8/21/12,                                 
Current Yield: 8.65%                    $15,000,000        $15,000,000    $12,834,000 
 
MHC Operating                                 
Limited Partnership,                                 
8.0625% Series D                                 
Cumulative                                 
Redeemable Perpetual                                 
Preference Units,                                 
Callable 3/24/10,                                 
Current Yield: 9.55%        $27,470,980                    $27,470,980    $23,221,000 
 
PSA Institutional                                 
Partners, L.P., 6.4%                                 
Series NN Cumulative                                 
Redeemable Perpetual                                 
Preferred Units,                                 
Callable 3/17/10,                                 
Current Yield: 8.45%        $13,387,322                    $13,387,322    $10,506,150 
 
Vornado Realty L.P.,                                 
6.75% Series D-14                                 
Cumulative                                 
Redeemable Preferred                                 
Units, Callable 9/9/10,                                 
Current Yield: 8.52%(1)            $26,906,570                $26,906,570    $23,771,473 

* The amounts listed reflect the Fund’s positions as of March 31, 2008. The Fund’s current positions may differ.

(1 ) Belmar Realty’s interest in these Partnership Preference Units is held through Belvorn Holdings LLC.

Item 4. Controls and Procedures.

Fund Governance. As the Fund’s manager, the complete and entire management, control and operation of the Fund are vested in Eaton Vance. The Fund’s Chief Executive Officer and Chief Financial Officer intend to report to the Audit Committee of the Board of Directors of Eaton Vance, Inc. (the sole trustee of Eaton Vance) any significant deficiency in the design or operation of internal control over financial reporting which could adversely affect the Fund’s ability to record, process, summarize and report financial data, and any fraud, whether or not material, that involves management or other employees who have a significant role in the Fund’s internal control over financial reporting.

Disclosure Controls and Procedures. Eaton Vance, as the Fund’s manager, evaluated the effectiveness of the Fund’s disclosure controls and procedures (as defined by Rule 13a-15(e) of the Act) as of the end of the period covered by this report, with the participation of the Fund’s Chief Executive Officer and Chief Financial Officer. The Fund’s disclosure controls and procedures are the controls and other procedures that the Fund designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. Based on that evaluation, the Fund’s Chief Executive Officer and Chief Financial Officer concluded that, as of March 31, 2008, the Fund’s disclosure controls and procedures were effective.

21


Internal Control Over Financial Reporting. There were no changes in the Fund’s internal control over financial reporting that occurred during the quarter ended March 31, 2008 that have materially affected or are reasonably likely to materially affect the Fund’s internal control over financial reporting.

22


PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

Although in the ordinary course of business the Fund and its subsidiaries may become involved in legal proceedings, the Fund is not aware of any material pending legal proceedings to which they are subject.

Item 1A. Risk Factors.

There have been no material changes from risk factors as previously disclosed in the Fund’s Form 10-K for the year ended December 31, 2007 in response to Item 1A to Part 1 of Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

As described in the Fund’s Annual Report on Form 10-K for the year ended December 31, 2007, shares of the Fund may be redeemed on any business day. The redemption price will be based on the net asset value next computed after receipt by the Fund of a written redemption request from a shareholder, including a proper form of signature guarantee and such other documentation the Fund and the transfer agent may then require. The Fund may, at its discretion, accept redemption requests submitted by facsimile transmission. Once accepted, a redemption request may not be revoked without the consent of the Fund. Settlement of redemptions will ordinarily occur within five business days of receipt by the Fund’s transfer agent of the original redemption request in good order, and (if applicable) promptly following registration and processing of stock certificates by the transfer agent of the issuer of the distributed securities. The right to redeem is available to all shareholders and all outstanding Fund shares are eligible for redemption (except for shares subject to an estate freeze election). During each month in the quarter ended March 31, 2008, the total number of shares redeemed and the average price paid per share were as follows:

 
Month Ended
Total No. of Shares
Redeemed(1)
Average Price Paid
Per Share
January 31, 2008  331,859.485  $105.04 
February 29, 2008  119,207.283  $101.66 
March 31, 2008  325,429.955  $99.33 
Total  776,496.723  $101.38 

(1)      All shares redeemed during the periods were redeemed at the option of shareholders pursuant to the Fund’s redemption policy. The Fund has not announced any plans or programs to repurchase shares other than at the option of shareholders.
 

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Submission of Matters to a Vote of Security Holders.

No matters were submitted to a vote of security holders during the quarter ended March 31, 2008.

Item 5. Other Information.

None.

Item 6. Exhibits.

(a)    The following is a list of all exhibits filed as part of this Form 10-Q:         
31.1            Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes- 
            Oxley Act of 2002             
31.2               Certification Pursuant to 18  U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes- 
            Oxley Act of 2002             

23


32.1            Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes- 
            Oxley Act of 2002 
32.2              Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes- 
            Oxley Act of 2002 
(b)    Reports on Form 8-K: 
    None. 

24


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized officer on May 9, 2008.

  BELMAR CAPITAL FUND LLC

/s/ Andrew C. Frenette
Andrew C. Frenette
Chief Financial Officer
(Duly Authorized Officer and
Principal Financial Officer)

25


EXHIBIT INDEX

31.1      Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-
Oxley Act of 2002
 
31.2      Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-
Oxley Act of 2002
 
32.1      Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-
Oxley Act of 2002
 
32.2      Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-
Oxley Act of 2002
 

26