N-Q 1 d320320dnq.htm SMID-CAP PORTFOLIO SMID-Cap Portfolio

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

811-10609

Investment Company Act File Number

SMID-Cap Portfolio

(Exact Name of Registrant as Specified in Charter)

Two International Place, Boston, Massachusetts 02110

(Address of Principal Executive Offices)

Maureen A. Gemma

Two International Place, Boston, Massachusetts 02110

(Name and Address of Agent for Services)

(617) 482-8260

(Registrant’s Telephone Number, Including Area Code)

September 30

Date of Fiscal Year End

December 31, 2016

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

SMID-Cap Portfolio

December 31, 2016

PORTFOLIO OF INVESTMENTS (Unaudited)

Common Stocks — 95.2%

 

                                                 
Security    Shares      Value  

Banks — 2.5%

      

Umpqua Holdings Corp.

      6,369,638      $ 119,621,802  

Westamerica Bancorporation(1)

      1,433,011        90,179,382  
     

 

 

  
      $ 209,801,184  
     

 

 

  

Building Products — 0.9%

      

Lennox International, Inc.

      504,290      $ 77,242,099  
     

 

 

  
      $ 77,242,099  
     

 

 

  

Capital Markets — 9.7%

      

Affiliated Managers Group, Inc.(2)

      1,343,738      $ 195,245,131  

Artisan Partners Asset Management, Inc., Class A

      1,326,774        39,471,527  

FactSet Research Systems, Inc.

      932,778        152,443,909  

Morningstar, Inc.

      2,017,227        148,387,218  

SEI Investments Co.

      5,661,765        279,464,720  
     

 

 

  
      $ 815,012,505  
     

 

 

  

Chemicals — 1.3%

      

RPM International, Inc.

      2,046,501      $ 110,163,149  
     

 

 

  
      $ 110,163,149  
     

 

 

  

Commercial Services & Supplies — 1.3%

      

Copart, Inc.(2)

      1,996,589      $ 110,630,996  
     

 

 

  
      $ 110,630,996  
     

 

 

  

Containers & Packaging — 1.8%

      

AptarGroup, Inc.

      2,095,053      $ 153,881,643  
     

 

 

  
      $ 153,881,643  
     

 

 

  

Diversified Consumer Services — 1.3%

      

ServiceMaster Global Holdings, Inc.(2)

      2,960,280      $ 111,513,748  
     

 

 

  
      $ 111,513,748  
     

 

 

  

Electrical Equipment — 2.3%

      

Acuity Brands, Inc.

      831,237      $ 191,899,374  
     

 

 

  
      $ 191,899,374  
     

 

 

  

Electronic Equipment, Instruments & Components — 4.8%

      

CDW Corp.

      3,655,443      $ 190,412,026  

FLIR Systems, Inc.

      3,059,140        110,710,276  

Trimble, Inc.(2)

      3,475,252        104,778,848  
     

 

 

  
      $ 405,901,150  
     

 

 

  

Energy Equipment & Services — 0.9%

      

Dril-Quip, Inc.(2)

      506,695      $ 30,427,035  

Oceaneering International, Inc.

      1,722,398        48,588,847  
     

 

 

  
      $ 79,015,882  
     

 

 

  

 

1

 

 

                                                 
Security    Shares      Value  

Health Care Equipment & Supplies — 10.0%

      

Dentsply Sirona, Inc.

      3,938,316      $ 227,358,983  

IDEXX Laboratories, Inc.(2)

      1,792,425        210,197,680  

Teleflex, Inc.

      1,881,866        303,262,706  

Varian Medical Systems, Inc.(2)

      1,132,890        101,710,864  
     

 

 

  
      $ 842,530,233  
     

 

 

  

Health Care Providers & Services — 1.5%

      

Henry Schein, Inc.(2)

      839,826      $ 127,410,002  
     

 

 

  
      $ 127,410,002  
     

 

 

  

Hotels, Restaurants & Leisure — 2.3%

      

Aramark

      5,328,915      $ 190,348,844  
     

 

 

  
      $ 190,348,844  
     

 

 

  

Household Products — 1.5%

      

Church & Dwight Co., Inc.

      2,889,640      $ 127,693,192  
     

 

 

  
      $ 127,693,192  
     

 

 

  

Industrial Conglomerates — 2.4%

      

Carlisle Cos., Inc.

      1,858,532      $ 204,977,494  
     

 

 

  
      $ 204,977,494  
     

 

 

  

Insurance — 6.1%

      

Markel Corp.(2)

      422,351      $ 382,016,479  

WR Berkley Corp.

      2,026,392        134,775,332  
     

 

 

  
      $ 516,791,811  
     

 

 

  

IT Services — 7.8%

      

Broadridge Financial Solutions, Inc.

      2,085,531      $ 138,270,705  

Gartner, Inc.(2)

      1,535,722        155,215,422  

Jack Henry & Associates, Inc.

      2,148,409        190,735,751  

WEX, Inc.(2)

      1,525,291        170,222,476  
     

 

 

  
      $ 654,444,354  
     

 

 

  

Life Sciences Tools & Services — 4.8%

      

Bio-Rad Laboratories, Inc., Class A(1)(2)

      1,231,302      $ 224,441,729  

Bio-Techne Corp.

      704,994        72,494,533  

Mettler-Toledo International, Inc.(2)

      245,961        102,949,436  
     

 

 

  
      $ 399,885,698  
     

 

 

  

Machinery — 7.4%

      

CLARCOR, Inc.

      2,017,879      $ 166,414,481  

Donaldson Co., Inc.

      2,466,688        103,798,231  

Graco, Inc.

      1,691,572        140,552,718  

IDEX Corp.

      2,335,698        210,352,962  
     

 

 

  
      $ 621,118,392  
     

 

 

  

Marine — 2.2%

      

Kirby Corp.(1)(2)

      2,818,925      $ 187,458,513  
     

 

 

  
      $ 187,458,513  
     

 

 

  

Professional Services — 1.5%

      

TransUnion(2)

      4,103,110      $ 126,909,192  
     

 

 

  
      $ 126,909,192  
     

 

 

  

 

2

 

 

                                                 
Security    Shares      Value  

Real Estate Management & Development — 1.2%

      

Jones Lang LaSalle, Inc.

      1,028,145      $ 103,883,771  
     

 

 

  
      $ 103,883,771  
     

 

 

  

Road & Rail — 4.3%

      

J.B. Hunt Transport Services, Inc.

      2,387,242      $ 231,729,581  

Landstar System, Inc.

      1,516,705        129,374,936  
     

 

 

  
      $ 361,104,517  
     

 

 

  

Software — 10.8%

      

ANSYS, Inc.(2)

      3,165,497      $ 292,776,817  

Blackbaud, Inc.(1)

      2,878,519        184,225,216  

Fair Isaac Corp.(1)

      1,671,417        199,266,335  

Manhattan Associates, Inc.(1)(2)

      4,434,988        235,187,414  
     

 

 

  
      $ 911,455,782  
     

 

 

  

Specialty Retail — 2.9%

      

Sally Beauty Holdings, Inc.(1)(2)

      9,366,025      $ 247,450,381  
     

 

 

  
      $ 247,450,381  
     

 

 

  

Textiles, Apparel & Luxury Goods — 1.7%

      

Columbia Sportswear Co.

      2,448,467      $ 142,745,626  
     

 

 

  
      $ 142,745,626  
     

 

 

  

Total Common Stocks
(identified cost $5,568,391,685)

       $ 8,031,269,532  
     

 

 

  

Short-Term Investments — 4.9%

      
Description    Units      Value  

Eaton Vance Cash Reserves Fund, LLC, 0.81%(3)

      410,287,696      $ 410,328,724  
     

 

 

  

Total Short-Term Investments
(identified cost $410,339,340)

       $ 410,328,724  
     

 

 

  

Total Investments — 100.1%
(identified cost $5,978,731,025)

      $ 8,441,598,256  
     

 

 

  

Other Assets, Less Liabilities — (0.1)%

       $ (4,822,834 ) 
     

 

 

  

Net Assets — 100.0%

       $ 8,436,775,422  
     

 

 

  

The percentage shown for each investment category in the Portfolio of Investments is based on net assets.

 

(1) Affiliated company

 

(2) Non-income producing security.

 

(3) Affiliated investment company, available to Eaton Vance portfolios and funds, which invests in high quality, U.S. dollar denominated money market instruments. The rate shown is the annualized seven-day yield as of December 31, 2016. Net income from the investment in Eaton Vance Cash Reserves Fund, LLC for the fiscal year to date ended December 31, 2016 was $829,353.

 

3

 

 

The Portfolio did not have any open financial instruments at December 31, 2016.

The cost and unrealized appreciation (depreciation) of investments of the Portfolio at December 31, 2016, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $ 5,979,369,351  
  

 

 

  

Gross unrealized appreciation

    $ 2,545,927,283  

Gross unrealized depreciation

      (83,698,378 ) 
  

 

 

  

Net unrealized appreciation

    $     2,462,228,905  
  

 

 

  

Investments in Affiliated Companies

Transactions in affiliated companies, defined as companies in which a fund owns 5% or more of the outstanding voting securities, by the Portfolio for the fiscal year to date ended December 31, 2016 were as follows:

 

     Shares,
beginning
of period		     Gross
additions		     Gross
reductions		     Shares,
end of
period		     Value,
end of period		     Dividend
income		     Realized
gain (loss)		  
Bio-Rad Laboratories, Inc., Class A      1,231,302       —       —       1,231,302     $ 224,441,729     $ —     $ —  
Blackbaud, Inc.      2,878,519       —       —       2,878,519       184,225,216       345,422       —  
CLARCOR, Inc.      2,502,134       —       (484,255 )      2,017,879       — (1)      625,534       10,967,452  
Fair Isaac Corp.      1,671,417       —       —       1,671,417       199,266,335       33,428       —  
Kirby Corp.      2,818,925       —       —       2,818,925       187,458,513       —       —  
Manhattan Associates, Inc.      2,740,704       1,694,284       —       4,434,988       235,187,414       —       —  
Sally Beauty Holdings, Inc.      9,366,025       —       —       9,366,025       247,450,381       —       —  
Westamerica Bancorporation      1,433,011       —       —       1,433,011       90,179,382       558,874       —  
          

 

 

    

 

 

    

 

 

  
           $     1,368,208,970     $     1,563,258     $     10,967,452  
          

 

 

    

 

 

    

 

 

  

 

(1) Company is no longer an affiliate as of December 31, 2016.

Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

 

•  

Level 1 — quoted prices in active markets for identical investments

 

•  

Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

 

•  

Level 3 — significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)

In cases where the inputs used to measure fair value fall in different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

At December 31, 2016, the hierarchy of inputs used in valuing the Portfolio’s investments, which are carried at value, were as follows:

 

Asset Description    Level 1      Level 2      Level 3      Total  

Common Stocks

    $ 8,031,269,532 *     $ —      $ —      $ 8,031,269,532  

Short-Term Investments

      —        410,328,724        —        410,328,724  

Total Investments

    $     8,031,269,532      $     410,328,724      $ —      $     8,441,598,256  

 

* The level classification by major category of investments is the same as the category presentation in the Portfolio of Investments.

 

4

 

 

The Portfolio held no investments or other financial instruments as of September 30, 2016 whose fair value was determined using Level 3 inputs. At December 31, 2016, there were no investments transferred between Level 1 and Level 2 during the fiscal year to date then ended.

Affiliated Fund. The Fund may invest in Eaton Vance Cash Reserves Fund, LLC (Cash Reserves Fund), an affiliated investment company managed by Eaton Vance Management. While Cash Reserves Fund is not a registered money market mutual fund, it conducts all of its investment activities in accordance with the requirements of Rule 2a-7 under the 1940 Act. Investments in Cash Reserves Fund are valued at the closing net asset value per unit on the valuation day. Cash Reserves Fund generally values its investment securities based on available market quotations provided by a third party pricing service. Prior to Cash Reserves Fund’s issuance of units in October 2016, the value of the Fund’s investment in Cash Reserves Fund reflected the Fund’s proportionate interest in its net assets and the Fund recorded its pro rata share of Cash Reserves Fund’s income, expenses and realized gain or loss.

For additional information on the Portfolio’s policy regarding the valuation of investments and other significant accounting policies, please refer to the Portfolio’s most recent financial statements included in its semiannual or annual report to shareholders.

 

5

 

 

Item 2. Controls and Procedures

(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant on this Form N-Q has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant on this Form N-Q has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

(b) There have been no changes in the registrant’s internal controls over financial reporting during the fiscal quarter for which the report is being filed that have materially affected, or are reasonably likely to materially affect the registrant’s internal control over financial reporting.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

SMID-Cap Portfolio

 

By:   /s/ Edward J. Perkin
  Edward J. Perkin
  President
Date:   February 27, 2017

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:   /s/ Edward J. Perkin
  Edward J. Perkin
  President
Date:   February 27, 2017

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   February 27, 2017