N-Q/A 1 dnqa.htm AMENDMENT TO FORM N-Q Amendment to Form N-Q

 

 

United States

Securities and Exchange Commission

Washington, D.C. 20549

 

 

Amended

Form N-Q

 

 

Quarterly Schedule of Portfolio Holdings of Registered

Management Investment Companies

811-4017

(Investment Company Act File Number)

 

 

Federated Equity Funds

(Exact Name of Registrant as Specified in Charter)

 

 

Federated Investors Funds

4000 Ericsson Drive

Warrendale, PA 15086-7561

(Address of Principal Executive Offices)

(412) 288-1900

(Registrant’s Telephone Number)

John W. McGonigle, Esquire

Federated Investors Tower

1001 Liberty Avenue

Pittsburgh, Pennsylvania 15222-3779

(Name and Address of Agent for Service)

(Notices should be sent to the Agent for Service)

Date of Fiscal Year End: 10/31/10

Date of Reporting Period: Quarter ended 1/31/10

 

 

 

Item 1. Schedule of Investments

Federated Kaufmann Fund

Portfolio of Investments

January 31, 2010 (unaudited)

Shares or Principal
Amount		 Value in
U.S. Dollars
COMMON STOCKS – 96.4%
Consumer Discretionary – 6.1%
1,264,658 1,2 ATA, Inc., ADR 3,793,974
274,500 1,2,3,4 B2W Companhia Global Do Varejo, GDR 11,067,840
3,009,050 Bharat Forge Ltd. 17,180,859
150,000 2 BorgWarner, Inc. 5,263,500
2,667,050 1 Cia Hering 43,578,324
744,895 1 Dolan Media Co. 7,359,563
14,000,000 1,2 Ford Motor Co. 151,760,000
1,000,000 1,3,4 Hydrogen Corp. 20,000
400,000 1,2 Imax Corp. 5,120,000
564,950 1 Lincoln Educational Services 11,705,764
2,100,000 National CineMedia, Inc. 31,458,000
100,000 1,2 New Oriental Education & Technology Group, Inc., ADR 6,800,000
2,115,500 1 New World Department Store China 1,885,075
3,754,900 Parkson Retail Group Ltd. 6,456,830
500,000 1 Penn National Gaming, Inc. 13,490,000
545,000 2 Regis Corp. 8,681,850
11,997,538 1,5 Restoque Comercio e Confeccoes de Roupas SA 39,461,398
885,200 1 SEB — Sistema Educacional Brasileiro SA 10,448,647
18,872,800 1 Sands China Ltd. 26,690,453
7,000,075 1 Wynn Macau Ltd. 8,819,529
TOTAL 411,041,606
Consumer Staples – 3.3%
11,410,000 1 Hypermarcas SA 131,411,724
286,100 2 Kellogg Co. 15,569,562
1,650,000 Philip Morris International, Inc. 75,091,500
TOTAL 222,072,786
Energy – 2.2%
4,418,100 1 Atlas Acquisition Holdings Corp. 43,297,380
301,000 1 Concho Resources, Inc. 13,505,870
3,000,000 1,2 Dresser-Rand Group, Inc. 88,740,000
220,406 1 Oil India Ltd. 5,350,238
TOTAL 150,893,488
Financials – 17.3%
1,000,000 American Express Co. 37,660,000
1,924,200 1 BR Malls Participacoes 20,926,313
2,000,000 Bank of New York Mellon Corp. 58,180,000
8,718,450 1,5 Brasil Brokers Participacoes 36,631,366
22,343,100 1,5 CETIP SA 172,107,062
49,951,170 5 Chimera Investment Corp. 195,808,586
1 1,3,6 FA Private Equity Fund IV LP 866,045
500,000 Goldman Sachs Group, Inc. 74,360,000
350,000 Greenhill & Co., Inc. 27,230,000
1,347,650 Housing Development Finance Corp. Ltd. 69,478,092
727,307 1 IFM Investments Ltd., ADR 5,222,064
1 1,3,6 Infrastructure Fund 20,429
1
Shares or Principal
Amount		 Value in
U.S. Dollars
3,250,000 J.P. Morgan Chase & Co. 126,555,000
1,385,551 1 LPS Brasil Cons De Imoveis 16,464,903
2,000,000 2 Morgan Stanley 53,560,000
1,000,000 1 Multiplan Empreendimentos Imobiliarios SA 15,915,119
604,000 2 New York Community Bancorp, Inc. 9,078,120
27,847,407 PT Bank Central Asia 14,816,786
1 1,3,6 Peachtree Leadscope LLC, Class A and B 0
1 1,3,6 Peachtree Leadscope LLC, Class C 3,250,000
2,000,000 Power Finance Corp. 10,436,232
1 1,3,6 Rocket Ventures II 0
2,000,000 Rural Electrification Corp. Ltd. 10,353,470
1,350,000 State Street Corp. 57,888,000
3,000,000 1,5 Two Harbors Investment Co. 28,500,000
1 1,3,6 Venworks 0
3,461,635 Wells Fargo & Co. 98,414,283
1,000,000 Willis Group Holdings PLC 26,230,000
TOTAL 1,169,951,870
Health Care – 26.4%
700,000 1 AGA Medical Holdings, Inc. 10,031,000
10,755,329 1,2,5 Alkermes, Inc. 117,663,299
1,000,000 2 Allergan, Inc. 57,500,000
1 3,6 Apollo Investment Fund V 5,998,207
4,850,980 1,2,5 Arena Pharmaceuticals, Inc. 15,135,058
1,208,261 1,2 Athenahealth, Inc. 47,532,988
3,000,011 1,2,5 Auxilium Pharmaceutical, Inc. 84,480,310
450,000 Baxter International, Inc. 25,915,500
2,000,000 1,2 BioMarin Pharmaceutical, Inc. 38,860,000
500,000 1,2 Cepheid, Inc. 7,345,000
274,595 1,2 Chindex International, Inc. 3,402,232
185,980 1 Chindex International, Inc. 2,304,292
600,000 1,3,4,5 Conceptus, Inc. 11,646,000
714,286 3,5 Conceptus, Inc. 13,864,291
3,634,700 1,2,5 Conceptus, Inc. 70,549,527
625,000 3 Conceptus, Inc. 12,131,250
2,278,165 1 Corcept Therapeutics, Inc. 5,832,102
500,000 1,3,6 Cortek, Inc. 0
6,363,921 1,2,5 Cubist Pharmaceuticals, Inc. 130,396,741
1 3,6 Denovo Ventures I LP 3,019,000
4,916,800 1,2,5 Dexcom, Inc. 44,546,208
126,065 1 Dexcom, Inc. 1,142,149
1,572,900 Dishman Pharmaceuticals & Chemicals Ltd. 7,348,215
552,681 1 Durect Corp. 1,199,318
11,436,238 1,5 Dyax Corp. 38,540,122
600,000 1 Emergency Medical Services Corp., Class A 31,506,000
5,442,940 1,2,3,5 Endologix, Inc. 24,928,665
3,555,556 1 Endologix, Inc. 16,284,446
4,285,725 1,5 Epigenomics AG 12,084,547
900,000 1 Express Scripts, Inc., Class A 75,474,000
1,466,600 1 Fleury SA 15,163,944
2
Shares or Principal
Amount		 Value in
U.S. Dollars
500,000 Hikma Pharmaceuticals PLC 4,375,026
900,000 1,2 Human Genome Sciences, Inc. 23,823,000
2,000,000 1,2 Illumina, Inc. 73,380,000
2,749,335 1,2,5 Insulet Corp. 37,473,436
6,880,757 1,2,5 Isis Pharmaceuticals, Inc. 76,789,248
1 3,6 Latin Healthcare Fund 893,003
100,000 1,2 LifeWatch AG 1,836,289
1,816,541 1,2 Masimo Corp. 50,427,178
762,900 Merck & Co., Inc. 29,127,522
2,000,000 1,2 Mylan Laboratories, Inc. 36,460,000
1,127,626 1,2 Nektar Therapeutics 12,877,489
2,103,927 1 Neurocrine Biosciences, Inc. 4,944,229
50,000 1,2 NuVasive, Inc. 1,380,000
900,000 1 OSI Pharmaceuticals, Inc. 30,798,000
1 1,3,6 Peachtree Velquest 0
658,059 1 Pharmacyclics, Inc. 2,651,978
2,000,000 Piramal Healthcare Ltd. 15,816,606
4,700,000 1,5 Progenics Pharmaceuticals, Inc. 21,150,000
3,000,000 1,2 Protalix Biotherapeutics, Inc. 20,550,000
379,300 1,2 Regeneron Pharmaceuticals, Inc. 10,112,138
2,998,043 1,5 Repligen Corp. 10,343,248
1,001,800 1,2 Savient Pharmaceuticals, Inc. 12,853,094
3,000,000 1,2 Seattle Genetics, Inc. 30,960,000
190,400 1 Sinopharm Medicine Holding Co., Ltd. 712,736
274 1,6 Soteira, Inc. 176
421,907 1,2 Spectrum Pharmaceuticals, Inc. 1,856,391
5,000,000 1 Talecris Biotherapeutics Holdings Corp. 117,000,000
4,230,417 1 Threshold Pharmaceuticals, Inc. 7,783,967
7,770,952 1,2,5 Vical, Inc. 21,914,085
7,000,000 1 Warner Chilcott PLC 191,310,000
TOTAL 1,781,423,250
Industrials – 14.3%
500,000 3M Co. 40,245,000
1,150,500 Bharat Heavy Electricals Ltd. 59,500,741
1,215,180 2 CLARCOR, Inc. 39,347,528
700,000 CSX Corp. 30,002,000
401,100 1,2 Copart, Inc. 13,541,136
500,000 1,2 CoStar Group, Inc. 20,190,000
1,180,873 Crompton Greaves Ltd. 10,915,719
100,000 Cummins, Inc. 4,516,000
375,000 2 Danaher Corp. 26,756,250
2,000,000 Expeditors International Washington, Inc. 68,200,000
1,100,000 FedEx Corp. 86,185,000
100,000 1,2 First Solar, Inc. 11,330,000
1,100,956 1,5 GeoEye, Inc. 28,261,541
682,481 1 IESI-BFC Ltd. 10,810,499
400,000 1 IHS, Inc., Class A 20,576,000
500,000 1 Iron Mountain, Inc. 11,430,000
11,000,000 1,2 Jet Blue Airways Corp. 54,340,000
3
Shares or Principal
Amount		 Value in
U.S. Dollars
255,100 Joy Global, Inc. 11,668,274
1,755,600 1 KAR Auction Services, Inc. 24,350,172
3,245,716 Max India Ltd. 14,525,031
500,000 Norfolk Southern Corp. 23,530,000
380,000 Precision Castparts Corp. 39,995,000
2,163,600 1 RailAmerica, Inc. 27,347,904
650,000 Rockwell Collins 34,573,500
2,900,000 1 Ryanair Holdings PLC, ADR 75,342,000
600,000 Union Pacific Corp. 36,300,000
775,000 United Technologies Corp. 52,297,000
3,100,000 1,2 Verisk Analytics, Inc. 87,172,000
TOTAL 963,248,295
Information Technology – 15.4%
2,000,000 1,2 Advanced Micro Devices, Inc. 14,920,000
981,607 1 Affiliated Computer Services, Inc., Class A 60,388,463
1,000,000 1,2 Akamai Technologies, Inc. 24,700,000
865,320 1 Avago Technologies Ltd. 15,039,262
500,000 1 BMC Software, Inc. 19,320,000
875,000 1,2 Blackboard, Inc. 34,483,750
3,000,000 1 Brocade Communications Systems, Inc. 20,610,000
4,612,700 CIELO S.A. 36,705,836
750,000 1,2 Check Point Software Technologies Ltd. 23,985,000
3,000,000 1 Comverse Technology, Inc. 28,530,000
1,059,322 1,3,6 Expand Networks Ltd. 0
59,381 1 Google, Inc. 31,437,489
2,380,000 Hon Hai Precision Industry Co. Ltd. 9,983,723
50,395,000 Inotera Memories, Inc. 35,509,084
13,553,200 1 Inspur International Ltd. 1,919,527
550,000 Lender Processing Services 21,318,000
926,630 1 ManTech International Corp., Class A 44,394,843
450,000 2 Mastercard, Inc. 112,455,000
1,600,000 2 Microchip Technology, Inc. 41,296,000
8,000,000 1,2 Micron Technology, Inc. 69,760,000
3,531,475 1,2 Microsemi Corp. 52,760,236
1,000,000 Microsoft Corp. 28,180,000
58,080 1 NCI, Inc. 1,730,784
2,571,071 1 NCR Corp. 30,775,720
2,100,000 1 NIC, Inc. 17,808,000
1,500,000 1,2 NVIDIA Corp. 23,085,000
69,180 Nintendo Corp. Ltd. 19,345,157
5,900,000 1,2 ON Semiconductor Corp. 42,539,000
1 1,3,6 Peachtree Open Networks 0
400,000 Qualcomm, Inc. 15,676,000
1,070,000 1,5 RADWARE Ltd. 16,371,000
3,709,800 1 Redecard SA 51,858,477
1,000,000 1,2 Rubicon Technology, Inc. 15,780,000
1 3,6 Sensable Technologies, Inc. (Bridge Loan) 100,280
3,751,199 1,3,6 Sensable Technologies, Inc. 0
2,818,700 1,5 TNS, Inc. 64,548,230
4
Shares or Principal
Amount		 Value in
U.S. Dollars
2,149,450 1 Telecity Group PLC 13,437,511
TOTAL 1,040,751,372
Materials – 8.8%
904,800 Barrick Gold Corp. 31,505,136
2,000,000 2 Dow Chemical Co. 54,180,000
700,000 Ecolab, Inc. 30,730,000
34,547,300 1 Huabao International Holdings Ltd. 35,431,977
369,050 1,2 Intrepid Potash, Inc. 9,038,035
267,240 1 Kraton Performance Polymers, Inc. 3,674,550
145,094,512 1 Lee & Man Paper Manufacturing Ltd. 83,253,166
910,000 Monsanto Co. 69,050,800
726,492 1 Mosaic Co./The 38,874,587
1,100,000 Newmont Mining Corp. 47,146,000
33,986,100 Nine Dragons Paper Holdings Ltd. 47,786,708
103,900 Nucor Corp. 4,239,120
440,000 Potash Corp. of Saskatchewan, Inc. 43,714,000
240,000 Praxair, Inc. 18,076,800
1,987,396 1 STR Holdings, Inc. 33,149,765
900,000 2 Sociedad Quimica Y Minera de Chile, ADR 32,742,000
13,905,000 1 Yingde Gases Group Co. 14,012,195
TOTAL 596,604,839
Telecommunication Services – 1.8%
1,423,515 1,2 Cbeyond Communications, Inc. 17,736,997
1,434,321 2 NTELOS Holdings Corp. 23,307,716
2,000,000 1,2,5 Neutral Tandem, Inc. 30,920,000
3,400,000 1,2 TW Telecom, Inc. 52,394,000
TOTAL 124,358,713
Utilities – 0.8%
146,559 1 BF Utilities Ltd. 3,341,259
1,000,000 2 ITC Holdings Corp. 53,720,000
TOTAL 57,061,259
TOTAL COMMON STOCKS
(IDENTIFIED COST $5,213,780,430)		 6,517,407,478
WARRANTS – 0.1%
Consumer Discretionary – 0.0%
250,000 1,6 Hydrogen Corp., 5/5/2011 0
200,000 1,6 Hydrogen Corp., 8/22/2013 0
870,000 1,6 Hydrogen Corp., 10/23/2013 0
TOTAL 0
Energy – 0.0%
4,943,000 1 Atlas Acquisition Holdings Corp., 1/23/2012 1,384,040
Health Care – 0.1%
1,500,000 1 Advancis Pharmaceutical Corp., 4/12/2012 32,226
382,897 1 Alexza Pharmaceuticals, Inc., 10/5/2016 858,692
157,125 1 Clinical Data, Inc., 5/24/2012 720
797,358 1 Corcept Therapeutics, Inc., 10/16/2012 1,481,455
857,143 1 Cyclacel Pharmaceuticals, Inc., 4/28/2013 808,981
242,091 1 Cyclacel Pharmaceuticals, Inc., 2/17/2014 101,588
461,121 1 Favrille, Inc., 3/7/2011 0
5
Shares or Principal
Amount		 Value in
U.S. Dollars
1,042,038 1 Favrille, Inc., 11/7/2012 0
27,781 1 IntelliPharmaCeutics International, Inc., 8/8/2011 3,422
416,580 1 Metabasis Therapeutics, Inc., 4/16/2013 40,740
222,650 1 Pharmacopeia, Inc., 4/19/2012 3,134
978,500 1 Spectrum Pharmaceuticals, Inc., 2/25/2010 258,556
1,713,798 1 Threshold Pharmaceuticals, Inc., 10/5/2014 2,578,169
1,126,138 1 Vical, Inc., 2/21/2010 826,314
TOTAL 6,993,997
TOTAL WARRANTS
(IDENTIFIED COST $2,038,963)		 8,378,037
Preferred Stocks – 1.5%
Consumer Discretionary – 0.2%
8,492 3,4,5 Lodgenet Entertainment, Conv. Pfd., Series B, $25.00 Annual Dividend 13,400,376
Financials – 1.3%
5,900,000 1 Bank of America Corp., Pfd. 89,090,000
Health Care – 0.0%
1,694,915 1,3,6 Ardais Corp., Conv. Pfd. 0
790,960 1,3,6 Ardais Corp., Conv. Pfd., Series C 0
6,461,352 Bellus Health, Inc., Conv. Pfd., Series A 1,098,430
446,816 1,3,6 Cortek, Inc., Conv. Pfd., Series D2 0
1,515,152 1,3,6 Cortex, Inc., Pfd., Series D 0
958,744 6 Soteira, Inc., Pfd. 616,987
TOTAL 1,715,417
Information Technology – 0.0%
679,348 1,3,6 Multiplex, Inc., Pfd., Series C 0
TOTAL PREFERRED STOCKS
(IDENTIFIED COST $122,388,904)		 104,205,793
Corporate Bonds – 1.1%
Consumer Discretionary – 0.3%
$722,050 3,6 Hydrogen Corp., 12.00%, 8/15/2010 0
15,107,000 Regis Corp., Conv. Bond, 5.00%, 7/15/2014 18,717,573
TOTAL 18,717,573
Financials – 0.3%
8,448,000 3,4 Alexandria Real Estate Equities, Inc., Conv. Bond, 8.00%, 4/15/2029 13,594,437
4,885,000 Lexington Realty Trust, Conv. Bond, 6.00%, 1/15/2030 4,810,015
TOTAL 18,404,452
Health Care – 0.4%
27,670,000 Insulet Corp., Conv. Bond, 5.375%, 6/15/2013 25,947,543
Information Technology – 0.0%
24,802,000 3,4 BearingPoint, Inc., Conv. Bond, 5.00%, 4/15/2025 3,348,270
Telecommunication Services – 0.1%
7,848,000 3,4 SBA Communications, Corp., Conv. Bond, 4.00%, 10/1/2014 10,232,693
TOTAL CORPORATE BONDS
(IDENTIFIED COST $89,223,844)		 76,650,531
U.S. Treasury – 0.1%
4,000,000 2,7 United States Treasury Bill, 0.025%, 2/4/2010
(IDENTIFIED COST $3,999,968)		 3,999,983
6
Shares or Principal
Amount		 Value in
U.S. Dollars
MUTUAL FUND – 17.3%
1,166,922,068 5,8,9 Prime Value Obligations Fund, Institutional Shares, 0.19%
(AT NET ASSET VALUE)		 1,166,922,068
TOTAL INVESTMENTS — 116.5%
(IDENTIFIED COST $6,598,354,177)10		 7,877,563,890
OTHER ASSETS AND LIABILITIES - NET — (16.5)%11 (1,117,570,671)
TOTAL NET ASSETS — 100% $6,759,993,219

At January 31, 2010, the Fund had outstanding foreign exchange contracts as follows:

Settlement Date Foreign Currency
Units to
Deliver/Receive		 In
Exchange
For		 Unrealized
Appreciation
(Depreciation)
Contracts Sold:
2/1/2010 2,415,688 Euro $3,369,402 $20,053
2/1/2010 119,952 Euro $166,278 $(36)
2/1/2010 63,360,297 Hong Kong Dollar $8,157,628 $(3,205)
NET UNREALIZED APPRECIATION ON FOREIGN EXCHANGE CONTRACTS $16,812

Net Unrealized Appreciation on Foreign Exchange Contracts is included in “Other Assets and Liabilities — Net.”

1 Non-income producing security.
2 All or a portion of these securities are temporarily on loan to unaffiliated broker/dealers.

As of January 31, 2010, securities subject to this type of arrangement and related collateral were as follows:

Market Value of
Securities Loaned		 Market Value
of Collateral
$1,083,425,467 $1,147,439,956
3 Denotes a restricted security that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) is subject to a contractual restriction on public sales. At January 31, 2010, these restricted securities amounted to $128,380,786, which represented 1.9% of total net assets.
4 Denotes a restricted security that may be resold without restriction to “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund's Board of Trustees (the “Trustees”). At January 31, 2010, these liquid restricted securities amounted to $63,309,616, which represented 0.9% of total net assets.
5 Affiliated company.
7
Transactions with affiliated companies and affiliated holdings during the quarter ended January 31, 2010, were as follows:
Affiliates Balance of
Shares Held
10/31/2009		 Purchases/
Additions 		Sales/
Reductions		 Balance of
Shares Held
1/31/2010		 Value Dividend
Income
Alkermes, Inc. 12,057,000  —  1,301,671 10,755,329 $117,663,299 $ — 
Arena Pharmaceuticals, Inc. 9,850,800  —  4,999,820 4,850,980 15,135,058  — 
Auxilium Pharmaceutical, Inc. 3,307,017  —  307,006 3,000,011 84,480,310  — 
Brasil Brokers Participacoes 8,718,450  —   —  8,718,450 36,631,366  — 
CETIP SA 17,903,500 4,439,600  —  22,343,100 172,107,062 426,282
Chimera Investment Corp. 52,600,000  —  2,648,830 49,951,170 195,808,586 8,500,000
Conceptus, Inc. 600,000  —   —  600,000 11,646,000  — 
Conceptus, Inc. 714,286  —   —  714,286 13,864,291  — 
Conceptus, Inc. 3,634,700  —   —  3,634,700 70,549,527  — 
Cubist Pharmaceuticals, Inc. 7,000,000  —  636,079 6,363,921 130,396,741  — 
Dexcom, Inc. 4,916,800  —   —  4,916,800 44,546,208  — 
Dyax Corp. 11,355,088 81,150  —  11,436,238 38,540,122  — 
Endologix, Inc. 6,915,528  —  1,472,588 5,442,940 24,928,665  — 
Epigenomics AG 4,847,764  —  562,039 4,285,725 12,084,547  — 
GeoEye, Inc. 924,656 176,300  —  1,100,956 28,261,541  — 
Insulet Corp. 2,850,000  —  100,665 2,749,335 37,473,436  — 
Isis Pharmaceuticals, Inc. 6,880,757  —   —  6,880,757 76,789,248  — 
Lodgenet Entertainment, Conv. Pfd., Series B, $25.00 Annual Dividend 9,490  —  9 988,492 13,400,376 212,300
Neutral Tandem, Inc.  —  2,000,000  —  2,000,000 30,920,000  — 
Orthovita, Inc. 5,000,000  —  5,000,000  —   —   — 
Prime Value Obligations Fund, Institutional Shares, 0.19% 1,775,556,873 1,112,867,351 1,721,502,156 1,166,922,068 1,166,922,068 28,802
Progenics Pharmaceuticals, Inc. 4,700,000  —   —  4,700,000 21,150,000  — 
RADWARE Ltd. 1,070,000  —   —  1,070,000 16,371,000  — 
Repligen Corp. 2,791,203 208,797 1,957 2,998,043 10,343,248  — 
Restoque Comercio e Confeccoes de Roupas SA 11,997,538  —   —  11,997,538 39,461,398 692,199
TNS, Inc. 2,011,100 807,600  —  2,818,700 64,548,230  — 
Two Harbors Investment Co. 3,000,000  —   —  3,000,000 28,500,000 780,000
Vical, Inc. 7,738,820 747,947 715,815 7,770,952 21,914,085  — 
TOTAL OF AFFILIATED COMPANIES 1,968,951,370 1,121,328,745 1,739,249,624 1,351,030,491 $2,524,436,412 $10,639,583
6 Market quotations and price evaluations are not available. Fair value determined in accordance with procedures established by and under the general supervision of the Trustees.
7 Discount rate at time of purchase.
8 7-Day net yield.
9 All or a portion of this security is held as collateral for securities lending.
10 At January 31, 2010, the cost of investments for federal tax purposes was $6,599,702,413. The net unrealized appreciation of investments for federal tax purposes excluding any unrealized appreciation/depreciation resulting from changes in foreign currency exchange rates and outstanding foreign currency commitments was $1,277,861,477. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $1,567,275,669 and net unrealized depreciation from investments for those securities having an excess of cost over value of $289,414,192.
11 Assets, other than investments in securities, less liabilities. A significant portion of this balance represents loans to unaffiliated qualified brokers for securities lending. The Fund receives cash from the broker as collateral for the loaned securities and reinvests the collateral in certain short-term securities such as repurchase agreements or money market mutual funds.

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2010.

8

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

  • Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
  • Shares of other mutual funds are valued based upon their reported NAVs.
  • Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Trustees.
  • Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
  • Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
  • Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.

If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund's NAV.

Fair Valuation and Significant Events Procedures

The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers, and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.

The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

  • With respect to securities traded in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures or options contracts;
  • With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
  • Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
  • Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.

The Trustees have approved the use of a pricing service to determine the fair value of equity securities traded principally in foreign markets when the Adviser determines that there has been a significant trend in the U.S. equity markets or in index futures trading. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Trustees.

9
Restricted Securities

Additional information on restricted securities, excluding securities purchased under Rule 144A, if applicable, that have been deemed liquid by the Trustees, held at January 31, 2010, is as follows:

Security Acquisition Date Acquisition Cost Market Value
Apollo Investment Fund V 5/18/2001 $580,812 $5,998,207
Ardais Corp., Conv. Pfd. 3/2/2001  -  3/8/2001 9,999,999  — 
Ardais Corp., Conv. Pfd., Series C 12/18/2002 4,666,664  — 
Conceptus, Inc. 4/10/2001 5,000,000 13,864,291
Conceptus, Inc. 8/11/2005 4,500,000 12,131,250
Cortek, Inc. 2/29/2000  —   — 
Cortek, Inc., Conv. Pfd., Series D 23/31/2003  —   — 
Cortex, Inc., Pfd., Series D 6/18/2001  —   — 
Denovo Ventures I LP 3/9/2000 3,482,145 3,019,000
Endologix, Inc. 12/8/2003  -  7/30/2009 20,689,084 24,928,665
Expand Networks Ltd. 9/22/2000 2,500,000  — 
FA Private Equity Fund IV LP 3/4/2002 690,660 866,045
Hydrogen Corp., 12.00%, 8/15/2010 8/15/2009 722,050  — 
Infrastructure Fund 8/11/2000 410,088 20,429
Latin Healthcare Fund 11/28/2000  —  893,003
Multiplex, Inc., Pfd., Series C 2/22/2001 5,000,001  — 
Peachtree Leadscope LLC, Class A and B 6/30/2000 712,054  — 
Peachtree Leadscope LLC, Class C 4/30/2002 3,000,000 3,250,000
Peachtree Open Networks 10/5/2000 892,599  — 
Peachtree Velquest 9/14/2000 494,382  — 
Rocket Ventures II 7/20/1999 10,015,342  — 
Sensable Technologies, Inc. (Bridge Loan) 12/16/2003 401,118 100,280
Sensable Technologies, Inc. 10/15/2004  —   — 
Venworks 1/6/2000 5,000,000  — 

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:

Level 1 — quoted prices in active markets for identical securities

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

Level 3 — significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of January 31, 2010, in valuing the Fund's assets carried at fair value:

Valuation Inputs
Level 1 — 
Quoted
Prices and
Investments in
Mutual Funds		 Level 2 — 
Other
Significant
Observable
Inputs		 Level 3 — 
Significant
Unobservable
Inputs		 Total
Equity Securities:
Domestic $4,941,120,099 $13,400,376 $14,764,127 $4,969,284,602
International 1,116,416,341 535,912,328  —  1,652,328,669
Debt Securities:
Corporate Bonds  —  76,650,531  —  76,650,531
U.S. Treasury  —  3,999,983  —  3,999,983
Warrants 1,384,040 6,993,997  —  8,378,037
Mutual Fund 1,166,922,068  —   —  1,166,922,068
TOTAL SECURITIES $7,225,842,548 $636,957,215 $14,764,127 $7,877,563,890
OTHER FINANCIAL INSTRUMENTS* $16,812 $ —  $ —  $16,812
* Other financial instruments include foreign exchange contracts.
10
Following is a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value:
Investments in
Domestic Equity
Securities		 Investments in
Debt Securities		 Investments in
Warrants
Balance as of November 1, 2009 $27,212,781 $144,410 $3,764,140
Realized gain/loss 3,566  —   — 
Change in unrealized appreciation/depreciation 1,118,004 74,836 295,484
Net purchases (sales) 45,846 (219,246)  — 
Transfers in and/or out of Level 3 (13,616,070)  —  (4,059,624)
Balance as of January 31, 2010 $14,764,127 $0 $ — 
The total change in unrealized appreciation (depreciation) attributable to investments still held at
January 31, 2010.		 $(142,153) $74,836 $ — 

The following acronyms are used throughout this portfolio:

ADR — American Depositary Receipt

GDR — Global Depository Receipt

11

Federated Kaufmann Small Cap Fund

Portfolio of Investments

January 31, 2010 (unaudited)

Shares or Principal
Amount		 Value in U.S. Dollars
COMMON STOCKS – 93.7%
Consumer Discretionary – 19.3%
32,800 1,2,3 B2W Companhia Global Do Varejo, GDR 1,322,496
1,000,000 1,4 Central European Media Enterprises Ltd., Class A 28,510,000
353,500 1 China Education Alliance, Inc. 2,152,815
714,400 1,4 ChinaCast Education Corp. 4,743,616
66,629 1 Chipotle Mexican Grill, Inc. 6,427,033
157,804 1 Cia Hering 2,578,442
274,000 Ctrip.com International Ltd., ADR 8,573,460
600,200 4 D. R. Horton, Inc. 7,076,358
588,000 1,4 Dick's Sporting Goods, Inc. 13,153,560
247,397 1,4 Dolan Media Co. 2,444,282
525,000 1,4 Fuqi International, Inc. 8,636,250
468,600 4 Geox SpA 3,016,944
819,850 1,4 hhgregg, Inc. 17,462,805
250,900 1 LJ International, Inc. 562,016
855,500 4 Lennar Corp., Class A 13,140,480
81,800 1 Lincoln Educational Services 1,694,896
98,172 1,4 Lululemon Athletica, Inc. 2,772,377
963,011 1,4 Meritage Corp. 21,561,816
320,770 4 National CineMedia, Inc. 4,805,135
26,550 1,4 New Oriental Education & Technology Group, Inc., ADR 1,805,400
233,091 1 Orchard Enterprises, Inc. 424,226
778,900 4 Orient-Express Hotel Ltd. 7,602,064
131,700 1 Penn National Gaming, Inc. 3,553,266
5,240,900 1 Piaggio & C. SpA 14,185,464
77,621 Regis Corp. 1,236,502
73,500 1 Rue21, Inc. 2,060,205
109,000 1 SEB - Sistema Educacional Brasileiro SA 1,286,605
289,525 1 Select Comfort Corp. 1,873,227
272,200 1,4 Texas Roadhouse, Inc. 3,165,686
216,500 Thor Industries, Inc. 6,873,875
73,400 1,4 Universal Travel Group 662,068
73,200 1 Vitamin Shoppe Industries, Inc. 1,537,200
388,900 4 Winnebago Industries, Inc. 4,647,355
9,429 1 Wonder Auto Technology, Inc. 94,573
797,300 1 Yoox SpA 6,146,334
TOTAL 207,788,831
Consumer Staples – 3.3%
44,600 1,4 American Lorain Corp. 151,194
1,960,000 1 Hypermarcas SA 22,573,793
400,000 Lance, Inc. 8,896,000
212,000 1 Prestige Brands Holdings, Inc. 1,647,240
45,277 1 QKL Stores, Inc. 267,135
57,000 1 TreeHouse Foods, Inc. 2,208,180
TOTAL 35,743,542
1
Shares or Principal
Amount		 Value in U.S. Dollars
Energy – 1.2%
252,000 1 China Integrated Energy, Inc. 2,036,160
15,970 1 Concho Resources, Inc. 716,574
93,500 1,4 Grupo TMM SA de CV, ADR 307,615
785,500 1,4 Sandridge Energy, Inc. 6,645,330
100,000 Vermilion Energy Trust 3,022,679
TOTAL 12,728,358
Financials – 9.1%
120,000 1,4 Affiliated Managers Group 7,268,400
223,097 1 BR Malls Participacoes 2,426,254
412,000 Berkley, W. R. Corp. 10,023,960
1,268,550 1 Brasil Brokers Participacoes 5,329,929
3,298,900 1 CETIP SA 25,411,155
25,493 1,2,3 China Housing & Land Development, Inc. 93,049
462,963 1,4 China Housing & Land Development, Inc. 1,689,815
491,017 1,4 Colony Financial, Inc. 9,771,238
300,000 1,4 E-House China Holdings Ltd., ADR 4,812,000
72,675 1 Government Properties Income Trust 1,686,787
94,300 1 Hambrecht Asia Acquisition Corp. 872,275
115,239 1 IFM Investments Ltd., ADR 827,416
123,200 1 Multiplan Empreendimentos Imobiliarios SA 1,960,743
96,300 4 New York Community Bancorp, Inc. 1,447,389
185,300 1 RHJ International 1,521,768
2,090,874 Rural Electrification Corp. Ltd. 10,823,901
345,900 Willis Group Holdings PLC 9,072,957
758,300 1,4 Xinyuan Real Estate Co. Ltd, ADR 3,010,451
TOTAL 98,049,487
Health Care – 20.8%
110,800 1 AGA Medical Holdings, Inc. 1,587,764
253,000 1,2,3,5 Adaltis, Inc. 0
59,000 1,2,3,5 Adaltis, Inc. 0
641,543 1,5 Adaltis, Inc. 0
904,300 1 Alkermes, Inc. 9,893,042
576,400 1 Anadys Pharmaceuticals, Inc. 1,164,328
307,104 1,4 Arena Pharmaceuticals, Inc. 958,165
127,195 1,4 Athenahealth, Inc. 5,003,851
57,950 1 Aurobindo Pharma Ltd. 1,068,449
504,207 1,4 Auxilium Pharmaceutical, Inc. 14,198,469
400,000 1,4 BioMarin Pharmaceutical, Inc. 7,772,000
1,832,350 1 Catalyst Pharmaceutical Partners, Inc. 1,245,998
104,208 1 Cepheid, Inc. 1,530,816
1,200 1 Conceptus, Inc. 23,292
346,120 1 Corcept Therapeutics, Inc. 886,067
862,000 1,4 Cubist Pharmaceuticals, Inc. 17,662,380
314,000 Dishman Pharmaceuticals & Chemicals Ltd. 1,466,933
1,763,902 1,4 Dyax Corp. 5,944,350
931,972 1,4 Dynavax Technologies Corp. 1,360,679
81,335 1 Emergency Medical Services Corp., Class A 4,270,901
343,421 1 Endologix, Inc. 1,572,868
303,685 1 Epigenomics AG 856,307
2
Shares or Principal
Amount		 Value in U.S. Dollars
60,750 Hikma Pharmaceuticals PLC 531,566
171,400 1,4 Human Genome Sciences, Inc. 4,536,958
169,644 1,4 Illumina, Inc. 6,224,238
135,200 1 Insulet Corp. 1,842,776
474,820 1 Isis Pharmaceuticals, Inc. 5,298,991
22,967 1,4 LifeWatch AG 421,740
115,492 1 Masimo Corp. 3,206,058
269,243 1,4 Mylan Laboratories, Inc. 4,908,300
145,610 1 Nektar Therapeutics 1,662,866
372,606 1,4 Neurocrine Biosciences, Inc. 875,624
228,426 1 OSI Pharmaceuticals, Inc. 7,816,738
327,300 1,4 Orexigen Therapeutics, Inc. 2,081,628
280,981 1,4 Orthofix International NV 8,465,958
1,101,700 1 Penwest Pharmaceuticals Co. 2,864,420
204,739 1 Pharmacyclics, Inc. 825,098
409,200 1,4 Phase Forward, Inc. 5,982,504
239,400 Piramal Healthcare Ltd. 1,893,248
712,400 1 Progenics Pharmaceuticals, Inc. 3,205,800
450,000 1 Protalix Biotherapeutics, Inc. 3,082,500
148,700 1 Qiagen NV 3,236,844
145,200 1,4 Regeneron Pharmaceuticals, Inc. 3,871,032
449,100 1 Repligen Corp. 1,549,395
412,900 1 Rigel Pharmaceuticals, Inc. 3,389,909
140,400 1 SXC Health Solutions Corp. 6,615,648
358,650 1 Savient Pharmaceuticals, Inc. 4,601,480
544,150 1,4 Seattle Genetics, Inc. 5,615,628
28,500 1 Solta Medical, Inc. 51,300
259,484 1,4 Spectrum Pharmaceuticals, Inc. 1,141,730
433,500 1 Talecris Biotherapeutics Holdings Corp. 10,143,900
611,100 1 ThermoGenesis Corp. 336,105
636,116 1 Threshold Pharmaceuticals, Inc. 1,170,453
208,600 1 Tianyin Pharmaceutical Co., Inc. 746,788
392,512 1 Transcend Services, Inc. 7,363,525
471,400 1,5 Valera Pharmaceuticals, Inc. 0
1,315,422 1,4 Vical, Inc. 3,709,490
270,700 1,4 Vivus, Inc. 2,287,415
852,400 1 Warner Chilcott PLC 23,296,092
TOTAL 223,320,404
Industrials – 19.4%
3,750,000 1,4 AirTran Holdings, Inc. 18,075,000
30,692,565 1 Aramex PJSC 13,158,161
454,350 CLARCOR, Inc. 14,711,853
144,600 1 China Electric Motor, Inc. 643,470
350,436 Con-way, Inc. 10,029,478
108,000 1 Copart, Inc. 3,646,080
132,300 1,4 CoStar Group, Inc. 5,342,274
343,096 1 Dynamex, Inc. 5,462,088
1,675,705 1 Express-1 Expedited Solutions 2,044,360
24,812 1,4 First Solar, Inc. 2,811,200
3
Shares or Principal
Amount		 Value in U.S. Dollars
728,203 4 Forward Air Corp. 17,207,437
282,156 1,4 GeoEye, Inc. 7,242,945
744,900 1,4 IESI-BFC Ltd. 11,799,216
109,440 1,4 IHS, Inc., Class A 5,629,594
1,764,988 1,4 Innovative Solutions and Support, Inc. 7,148,201
86,300 1 Iron Mountain, Inc. 1,972,818
3,275,000 1,4 Jet Blue Airways Corp. 16,178,500
267,600 1 KAR Auction Services, Inc. 3,711,612
253,300 1 MOOG, Inc., Class A 7,644,594
260,623 Max India Ltd. 1,166,324
79,426 1,4 Monster Worldwide, Inc. 1,238,251
500,000 1 Owens Corning, Inc. 12,865,000
579,100 1 Quality Distribution, Inc. 2,333,773
294,214 1 RailAmerica, Inc. 3,718,865
3,989,916 1,4 Satcon Technology Corp. 9,176,807
193,600 Simpson Manufacturing Co., Inc. 4,774,176
500,620 1,4 Spire Corp. 2,207,734
100,000 1 Sterling Construction Co., Inc. 1,902,000
446,000 1 Verisk Analytics, Inc. 12,541,520
194,688 Vicor Corp. 1,685,998
TOTAL 208,069,329
Information Technology – 15.5%
48,400 1 Akamai Technologies, Inc. 1,195,480
98,100 1,4 Blackboard, Inc. 3,866,121
1,601,000 1 Cinedigm Digital Cinema Corp. 2,321,450
565,900 1 Commvault Systems, Inc. 11,991,421
438,000 1,4 Compellent Technologies, Inc. 8,707,440
1,025,300 1 Entropic Communications, Inc. 3,578,297
461,768 1 Fundtech Ltd. 6,049,161
951,600 1 Gilat Satellite Networks 5,148,156
414,400 1 Hypercom Corp. 1,421,392
2,647,002 1 iPass, Inc. 2,938,172
672,003 1 Kenexa Corp. 6,666,270
36,400 Lender Processing Services 1,410,864
97,300 1 LogMeIn, Inc. 1,649,235
825,296 1 MEMC Electronic Materials, Inc. 10,382,224
61,040 1,4 Magma Design Automation 147,106
112,949 1 ManTech International Corp., Class A 5,411,387
484,386 1,4 Microsemi Corp. 7,236,727
1,937,000 1,4 Mindspeed Technologies, Inc. 12,241,840
212,900 1,4 NIC, Inc. 1,805,392
1,215,020 1,4 NaviSite, Inc. 3,572,159
767,750 1,4 Netezza Corp. 6,978,847
425,000 1 ON Semiconductor Corp. 3,064,250
608,300 1 Onvia.com, Inc. 4,398,009
467,500 1 Parametric Technology Corp. 7,741,800
127,300 1 Perfect World Co. Ltd., ADR 4,747,017
1,920,000 1 Phoenix Technology Ltd. 6,048,000
605,800 1 RADWARE Ltd. 9,268,740
4
Shares or Principal
Amount		 Value in U.S. Dollars
393,000 1 Redecard SA 5,493,660
1,118,467 1 Smart Modular Technologies (WWH), Inc. 6,800,279
61,200 1,4 Switch & Data Facilities Co. 1,118,736
150,725 1 TNS, Inc. 3,451,603
322,850 1 Telecity Group PLC 2,018,330
656,700 1 Tier Technologies, Inc., Class B 5,056,590
1,823,500 1 WebMediaBrands, Inc. 2,078,790
TOTAL 166,004,945
Materials – 3.0%
400,000 4 Commercial Metals Corp. 5,496,000
3,314,700 1 Huabao International Holdings Ltd. 3,399,582
40,660 1 Kraton Performance Polymers, Inc. 559,075
2,322,500 Nine Dragons Paper Holdings Ltd. 3,265,589
215,500 1 STR Holdings, Inc. 3,594,540
1,195,450 1 Thompson Creek Metals Co., Inc. 13,867,220
2,101,800 1 Yingde Gases Group Co. 2,118,003
TOTAL 32,300,009
Telecommunication Services – 1.6%
94,400 1 AboveNet, Inc. 5,535,616
182,414 NTELOS Holdings Corp. 2,964,228
533,700 1 TW Telecom, Inc. 8,224,317
TOTAL 16,724,161
Utilities – 0.5%
100,825 ITC Holdings Corp. 5,416,319
TOTAL COMMON STOCKS
(IDENTIFIED COST $955,708,877)		 1,006,145,385
WARRANTS – 0.1%
Consumer Discretionary – 0.0%
160,372 1 Point Therapeutics, Inc. 7
Financials – 0.0%
138,889 1 China Housing & Land Development, Inc. 164,482
Health Care – 0.1%
224,540 1 Adaltis, Inc. 0
131,950 1 Anadys Pharmaceuticals, Inc. 214,415
20,850 1 Clinical Data, Inc. 96
121,142 1 Corcept Therapeutics, Inc. 225,076
144,960 1 Cortex Pharmaceuticals, Inc. 448
201,055 1 Medicure, Inc. 0
94,000 1 Spectrum Pharmaceuticals, Inc. 24,838
257,688 1 Threshold Pharmaceuticals, Inc. 387,655
143,398 1 Vical, Inc. 105,220
TOTAL 957,748
TOTAL WARRANTS
(IDENTIFIED COST $137,215)		 1,122,237
Preferred Stocks – 1.3%
Consumer Discretionary – 1.0%
43,313 2,3 Callaway Golf Co., Conv. Pfd., Series B, $5.63 Annual Dividend 5,313,206
3,899 2,3 Lodgenet Entertainment, Conv. Pfd., Series B, $29.17 Annual Dividend 6,152,622
TOTAL 11,465,828
5
Shares or Principal
Amount		 Value in U.S. Dollars
Health Care – 0.3%
792,576 Bellus Health, Inc., Conv. Pfd., Series A 134,738
2,985 Mylan Laboratories, Inc., Conv. Pfd., $65.00 Annual Dividend 2,954,224
TOTAL 3,088,962
TOTAL PREFERRED STOCKS
(IDENTIFIED COST $11,473,345)		 14,554,790
Corporate Bonds – 2.6%
Consumer Discretionary – 1.3%
$11,700,000 Central European Media Enterprises Ltd., Conv. Bond, 3.50%, 3/15/2013 9,859,742
1,263,000 Coinstar, Inc., Conv. Bond, 4.00%, 9/1/2014 1,223,784
741,000 2,3 Gaylord Entertainment Co., Conv. Bond, Series 144A, 3.75%, 10/1/2014 727,958
1,975,000 Regis Corp., Conv. Bond, 5.00%, 7/15/2014 2,447,025
TOTAL 14,258,509
Financials – 0.6%
1,087,000 2,3 Alexandria Real Estate Equities, Inc., Conv. Bond, 8.00%, 4/15/2029 1,749,190
1,179,000 2,3 Digital Realty Trust, Inc., Conv. Bond, 5.50%, 4/15/2029 1,481,590
3,671,000 Lexington Realty Trust, Conv. Bond, 6.00%, 1/15/2030 3,614,650
TOTAL 6,845,430
Health Care – 0.1%
672,000 Kendle International, Inc., Conv. Bond, 3.375%, 7/15/2012 611,722
Industrials – 0.3%
621,000 AMR Corp., Conv. Bond, 6.25%, 10/15/2014 591,999
1,132,000 Mastec, Inc., Conv. Bond, 4.00%, 6/15/2014 1,175,650
1,000,000 UAL Corp., Conv. Bond, 5.00%, 2/1/2021 931,750
TOTAL 2,699,399
Information Technology – 0.2%
606,000 FEI Co., Conv. Bond, 2.875%, 6/1/2013 614,817
860,000 GSI Commerce, Inc., Conv. Bond, 2.50%, 6/1/2027 872,419
462,000 GSI Commerce, Inc., Conv. Bond, 3.00%, 6/1/2025 625,848
TOTAL 2,113,084
Telecommunication Services – 0.1%
887,000 2,3 SBA Communications, Corp., Conv. Bond, 4.00%, 10/1/2014 1,156,524
TOTAL CORPORATE BONDS
(IDENTIFIED COST $21,593,994)		 27,684,668
U.S. Treasury – 0.5%
5,000,000 6 United States Treasury Bill, 0.025% - 0.045%, 4/8/2010
(IDENTIFIED COST $4,999,697)		 4,999,473
MUTUAL FUND – 22.0%
236,197,104 7,8,9 Prime Value Obligations Fund, Institutional Shares, 0.19%
(AT NET ASSET VALUE)		 236,197,104
TOTAL INVESTMENTS — 120.2%
(IDENTIFIED COST $1,230,110,232)10		 1,290,703,657
OTHER ASSETS AND LIABILITIES - NET — (20.2)%11 (217,310,341)
TOTAL NET ASSETS — 100% $1,073,393,316

SCHEDULE OF SECURITY SOLD SHORT

Shares Value
221,000 1 Renesola Ltd., ADR (Proceeds $1,311,416) $972,400
6
At January 31, 2010, the Fund had the following outstanding foreign exchange contracts as follows:
Settlement Date Foreign
Currency
Units to
Deliver/Receive		 In Exchange For Unrealized
Depreciation
Contracts Sold:
2/1/2010 8,500 Euro $11,783 $(3)

Unrealized Depreciation on Foreign Exchange Contracts is included in “Other Assets and Liabilities — Net.”

1 Non-income producing security.
2 Denotes a restricted security that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) is subject to a contractual restriction on public sales. At January 31, 2010, these restricted securities amounted to $17,996,635, which represented 1.7% of total net assets.
3 Denotes a restricted security that may be resold without restriction to “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund's Board of Trustees (the “Trustees”). At January 31, 2010, these liquid restricted securities amounted to $17,996,635, which represented 1.7% of total net assets.
4 All or a portion of these securities are temporarily on loan to unaffiliated broker/dealers.

As of January 31, 2010, securities subject to this type of arrangement and related collateral were as follows:

Market Value of
Securities Loaned		 Market Value
of Collateral
$200,095,136 $211,763,909
5 Market quotations and price evaluations are not available. Fair value determined in accordance with procedures established by and under the general supervision of the Trustees.
6 Discount rate at time of purchase.
7 Affiliated company.
8 7-Day net yield.
9 All or a portion of this security is held as collateral for securities lending.
10 At January 31, 2010, the cost of investments for federal tax purposes was $1,230,940,072. The net unrealized appreciation of investments for federal tax purposes excluding any unrealized appreciation resulting from changes in outstanding foreign exchange contracts and securities sold short was $59,763,585. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $203,390,209 and net unrealized depreciation from investments for those securities having an excess of cost over value of $143,626,624.
11 Assets, other than investments in securities, less liabilities. A significant portion of this balance represents loans to unaffiliated qualified brokers for securities lending. The Fund receives cash from the broker as collateral for the loaned securities and reinvests the collateral in certain short-term securities such as repurchase agreements or money market mutual funds.

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2010.

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

  • Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
  • Shares of other mutual funds are valued based upon their reported NAVs.
  • Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Trustees.
  • Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
  • Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
  • Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.

If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund's NAV.

7
Fair Valuation and Significant Events Procedures

The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers, and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities and mortgage-backed securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.

The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

  • With respect to securities traded in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures or options contracts;
  • With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
  • Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
  • Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.

The Trustees have approved the use of a pricing service to determine the fair value of equity securities traded principally in foreign markets when the Adviser determines that there has been a significant trend in the U.S. equity markets or in index futures trading. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Trustees.

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:

Level 1 — quoted prices in active markets for identical securities

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

Level 3 — significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of January 31, 2010, in valuing the Fund's assets carried at fair value:

Valuation Inputs
Level 1 - 
Quoted
Prices and
Investments in
Mutual Funds		 Level 2 - 
Other
Significant
Observable
Inputs		 Level 3 - 
Significant
Unobservable
Inputs		 Total
Equity Securities:
Domestic $700,341,103 $11,465,828 $ —  $711,806,931
International 244,744,091 64,149,153  —  308,893,244
Debt Securities:
Corporate Bonds  —  27,684,668  —  27,684,668
U.S. Treasury  —  4,999,473  —  4,999,473
Warrants  —  1,122,237  —  1,122,237
Mutual Fund 236,197,104  —   —  236,197,104
TOTAL SECURITIES $1,181,282,298 $109,421,359 $ —  $1,290,703,657
OTHER FINANCIAL INSTRUMENTS* $(972,403) $ —  $ —  $(972,403)
* Other financial instruments include a security sold short and foreign exchange contracts.
8
Following is a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value:
Investments in
Equity Securities		 Investments in
Warrants
Balance as of November 1, 2009 $1,878,869 $567,373
Change in unrealized appreciation (depreciation) 192,729 45,359
Net purchases (sales) (15,612)  — 
Realized gain (loss) 535  — 
Transfers in and/or out of Level 3 (2,056,521) (612,732)
Balance as of January 31, 2010 $0 $0
The total change in unrealized appreciation (depreciation) attributable to investments still held at January 31, 2010 $0 $0

The following acronyms are used throughout this portfolio:

ADR  — American Depositary Receipt
GDR  — Global Depositary Receipt

9

Federated Market Opportunity Fund

Portfolio of Investments

January 31, 2010 (unaudited)

Shares, Foreign
Par Amount,
Principal
Amount or
Troy Ounces		 Value in
U.S. Dollars
COMMON STOCKS – 44.5%
Biotechnology – 4.7%
280,000 1 Biogen Idec, Inc. 15,047,200
280,000 1 Cephalon, Inc. 17,875,200
350,000 1 Genzyme Corp. 18,991,000
340,000 1 Gilead Sciences, Inc. 16,411,800
TOTAL 68,325,200
Chemicals – 1.0%
150,000 CF Industries Holdings, Inc. 13,929,000
Commercial Services & Supplies – 0.7%
230,000 Secom Co. Ltd. 10,299,989
Diversified Consumer Services – 1.3%
420,000 1 Career Education Corp. 9,135,000
725,000 1 Corinthian Colleges, Inc. 10,150,000
TOTAL 19,285,000
Diversified Telecommunication Services – 1.9%
590,000 AT&T, Inc. 14,962,400
430,000 TELUS Corp. 13,323,264
TOTAL 28,285,664
Electric Utilities – 0.7%
235,000 Exelon Corp. 10,720,700
Energy Equipment & Services – 7.2%
275,000 Baker Hughes, Inc. 12,452,000
645,000 ENSCO International, Inc., ADR 25,174,350
280,000 Noble Corp. 11,289,600
590,000 Patterson-UTI Energy, Inc. 9,062,400
995,000 Rowan Cos., Inc. 21,372,600
305,000 Tidewater, Inc. 14,280,100
240,000 1 Unit Corp. 10,929,600
TOTAL 104,560,650
Food & Staples Retailing – 4.3%
420,000 1 BJ's Wholesale Club, Inc. 14,191,800
425,000 CVS Caremark Corp. 13,757,250
240,000 Familymart Co. Ltd. 7,589,676
250,000 Lawson, Inc. 11,346,108
700,000 Seven & I Holdings Co. Ltd. 15,316,162
TOTAL 62,200,996
Food Products – 1.2%
250,000 Archer-Daniels-Midland Co. 7,492,500
170,000 Bunge Ltd. 9,994,300
TOTAL 17,486,800
Leisure Equipment & Products – 1.1%
295,000 Sankyo Co. Ltd. 15,769,940
1
Shares, Foreign
Par Amount,
Principal
Amount or
Troy Ounces		 Value in
U.S. Dollars
Life Sciences Tools & Services – 1.2%
730,000 Pharmaceutical Product Development, Inc. 17,052,800
Metals & Mining – 5.5%
340,000 Agnico Eagle Mines Ltd. 17,227,800
550,000 Barrick Gold Corp. 19,151,000
710,000 Goldcorp, Inc., Class A 24,111,600
720,000 Kinross Gold Corp. 11,707,200
360,000 1 Pan American Silver Corp. 7,628,400
TOTAL 79,826,000
Multiline Retail – 1.0%
475,000 Family Dollar Stores, Inc. 14,668,000
Multi-Utilities – 1.0%
170,000 RWE AG 15,065,977
Oil Gas & Consumable Fuels – 2.9%
493,945 Enerplus Resources Fund 10,516,089
620,000 ENI Spa 14,440,844
615,000 Royal Dutch Shell PLC, Class B 16,422,058
TOTAL 41,378,991
Pharmaceuticals – 4.1%
300,000 AstraZeneca PLC 13,947,604
710,000 Bristol-Myers Squibb Co. 17,295,600
630,000 Takeda Pharmaceutical Co. Ltd. 27,695,696
TOTAL 58,938,900
Software – 1.7%
88,700 Nintendo Co. Ltd. 24,803,635
Wireless Telecommunication Services – 3.0%
18,800 NTT DoCoMo, Inc. 28,099,973
95,000 SK Telecom Co. Ltd. 14,903,737
TOTAL 43,003,710
TOTAL COMMON STOCKS
(IDENTIFIED COST $606,860,278)		 645,601,952
U.S. TREASURY – 30.3%
$30,000,000 2 United States Treasury Bill, 0.040%, 4/1/2010 29,997,603
68,000,000 2 United States Treasury Bill, 0.050%, 3/4/2010 67,999,198
200,000,000 2,3 United States Treasury Bill, 0.060%, 2/18/2010 199,999,520
70,000,000 2,3 United States Treasury Bill, 0.065%, 4/29/2010 69,987,736
33,500,000 4 United States Treasury Bond, 3.50%, 2/15/2039 28,071,955
45,700,000 United States Treasury Bond, 4.375%, 11/15/2039 44,700,312
TOTAL U.S. TREASURY
(IDENTIFIED COST $444,300,163)		 440,756,324
GOVERNMENTS/AGENCIES – 7.8%
23,500,000 Argentina, Government of, Bond, 0.943%, 8/3/2012 7,520,000
20,556,212 Argentina, Government of, Note, 8.28%, 12/31/2033 14,029,615
22,200,000 Brazil, Government of, Note, 10.00%, 1/1/2012 11,528,195
16,600,000 Brazil, Government of, Note, 10.00%, 1/1/2017 7,666,540
11,900,000 Brazil, Government of, Note, 6.00%, 5/15/2015 11,655,561
11,850,000,000 Colombia, Government of, Unsub., 11.75%, 3/1/2010 6,008,052
1,595,000,000 Hungary, Government of, 8.00%, 2/12/2015 8,350,731
2
Shares, Foreign
Par Amount,
Principal
Amount or
Troy Ounces		 Value in
U.S. Dollars
$47,000,000 Mexico, Government of, Bond, 10.00%, 12/5/2024 4,149,511
40,800,000 Poland, Government of, Bond, 5.25%, 10/25/2017 13,418,075
78,500,000 Republic of South Africa, Bond, 7.50%, 1/15/2014 9,923,605
21,200,000 5 Turkey, Government of, 14.686%, 11/3/2010 13,376,502
7,900,000 Venezuela, Government of, 9.375%, 1/13/2034 5,628,750
TOTAL GOVERNMENTS/AGENCIES
(IDENTIFIED COST $100,247,668)		 113,255,137
INVESTMENT FUND – 5.2%
750,000 GML Agricultural Commodity Trade Finance Fund
(IDENTIFIED COST $75,000,000)		 75,085,575
BULLION – 3.6%
48,437 Gold (IDENTIFIED COST $48,855,678) 52,365,680
EXCHANGE-TRADED FUND – 3.3%
1,900,000 1 PowerShares DB Agriculture Fund
(IDENTIFIED COST $46,722,564)		 48,070,000
MUTUAL FUNDS – 2.7%
2,140,000 1 Central Fund of Canada Ltd. 27,456,200
12,330,981 6,7 Prime Value Obligations Fund, Institutional Shares, 0.19% 12,330,981
TOTAL MUTUAL FUNDS
(IDENTIFIED COST $36,726,660)		 39,787,181
TOTAL INVESTMENTS — 97.4%
(IDENTIFIED COST $1,358,713,011)8		 1,414,921,849
OTHER ASSETS AND LIABILITIES — NET — 2.6%9 37,814,287
TOTAL NET ASSETS — 100% $1,452,736,136

Schedule of Securities Sold Short

Shares or
Principal
Amount		 Value
2,290,000 Amex Financial Select Standard & Poor Depository Receipt $32,495,100
350,000 ASML Holding N.V., ADR 10,937,500
170,000 Bucyrus International, Inc. 8,904,600
435,000 CarMax, Inc. 8,974,050
950,000 CB Richard Ellis Services, Inc. 11,685,000
660,000 Coca-Cola Enterprises, Inc. 13,325,400
250,000 Costco Wholesale Corp. 14,357,500
220,000 Credit Suisse Group AG, ADR 9,499,600
200,000 Cree, Inc. 11,182,000
530,000 Crown Holdings, Inc. 12,619,300
1,080,000 Cypress Semiconductor Corp. 10,854,000
250,000 Deere & Co. 12,487,500
1,065,000 Delta Air Lines, Inc. 13,024,950
200,000 Digital Realty Trust, Inc. 9,600,000
735,000 Expedia, Inc. 15,736,350
230,000 F5 Networks, Inc. 11,368,900
995,000 Hertz Global Holdings, Inc. 10,308,200
375,000 ICICI Bank Ltd., ADR 13,230,000
870,000 ISHARES FTSE/XINHUA CHINA 25 33,373,200
1,300,000 IShares MSCI Emerging Mkt 49,738,000
3
Shares or
Principal
Amount		 Value
505,000 iShares MSCI Mexico Index Fund 23,230,000
255,000 J. Crew Group, Inc. 9,998,550
480,000 Jefferies Group, Inc. 12,259,200
700,000 Kroger Co. 15,001,000
210,000 Life Technologies, Inc. 10,439,100
220,000 Massey Energy Co. 8,474,400
42,000 Mastercard, Inc. 10,495,800
1,640,000 ON Semiconductor Corp. 11,824,400
300,000 OshKosh Truck Corp. 10,821,000
1,285,000 PMC-Sierra, Inc. 10,215,750
2,310,000 RF Micro Devices, Inc. 8,893,500
500,000 Rovi Corp. 14,435,000
510,000 SBA Communications, Corp. 16,875,900
130,000 Simon Property Group, Inc. 9,360,000
140,000 Smucker (J.M.) Co. 8,409,800
1,960,000 Tenet Healthcare Corp. 10,858,400
485,000 TRW Automotive Holdings Corp. 11,169,550
235,000 Tupperware Brands Corp. 9,978,100
420,000 Veeco Instruments, Inc. 13,364,400
680,000 Virgin Media, Inc. 9,649,200
275,000 Wal-Mart Stores, Inc. 14,693,250
570,000 Wells Fargo & Co. 16,205,100
365,000 WMS Industries, Inc. 13,534,200
175,000 Wynn Resorts Ltd. 10,829,000
TOTAL SECURITIES SOLD SHORT
(PROCEEDS $573,091,971)		 $604,715,750

At January 31, 2010, the Fund had the following open futures contracts:

Description Number of
Contracts		 Notional
Value		 Expiration
Date		 Unrealized
Appreciation
1Russell 2000 Index Short Futures 2,000 $120,200,000 March 2010 $1,809,310
4
At January 31, 2010, the Fund had outstanding foreign exchange contracts as follows:
5
Settlement
Date		 Foreign Currency
Units to
Receive/Deliver		 In Exchange For Contracts at
Value		 Unrealized
Appreciation/
(Depreciation)
Contracts Purchased:
2/2/2010 26,489,190 SGD 27,300,000 NZD $18,836,757 $508,745
2/2/2010 32,400,000 NZD 1,996,974,000 JPY $22,735,087 $(363,267)
2/2/2010 24,237,240 CAD 32,700,000 NZD $22,667,515 $719,532
2/2/2010 2,028,392,280 JPY 32,400,000 NZD $22,471,526 $648,358
2/3/2010 26,270,850 SGD 22,300,000 AUD $18,681,081 $504,196
2/10/2010 13,000,000 EUR $18,842,720 $18,024,097 $(818,623)
3/12/2010 210,991,198 SEK $29,345,906 $28,557,179 $(788,727)
4/1/2010 392,456,250 CZK $21,433,984 $20,735,281 $(698,703)
4/5/2010 27,060,000 BRL $14,430,461 $14,181,100 $(249,361)
4/5/2010 56,406,500 CAD $53,261,414 $52,749,188 $(512,226)
4/6/2010 15,200,000 CAD 82,566,400 NOK $14,214,442 $(151,496)
4/6/2010 82,698,640 NOK 15,200,000 CAD $13,916,609 $(161,768)
4/6/2010 4,135,725,000 HUF $21,046,947 $20,941,773 $(105,174)
4/8/2010 19,956,274 SGD 14,583,047 CHF $14,182,858 $(37,089)
4/12/2010 11,836,500 PEN $4,129,972 $4,137,428 $7,456
4/30/2010 29,999,813 SGD 1,909,938,095 JPY $21,317,435 $(22,089)
5/7/2010 5,868,120,000 KRW $4,740,000 $5,037,229 $297,229
5/14/2010 165,900,000 RUB $4,740,000 $5,382,165 $642,165
Contracts Sold:
2/2/2010 32,400,000 NZD 2,028,392,280 JPY $22,735,087 $(911,919)
2/2/2010 32,700,000 NZD 24,237,240 CAD $22,945,598 $(997,615)
2/2/2010 1,996,974,000 JPY 32,400,000 NZD $22,123,458 $974,895
2/2/2010 27,300,000 NZD 26,489,190 SGD $19,156,416 $(828,404)
2/3/2010 22,300,000 AUD 26,270,850 SGD $19,721,927 $(1,545,042)
2/3/2010 35,700,000 AUD $29,209,740 $31,572,772 $(2,363,032)
2/10/2010 13,000,000 EUR $18,454,150 $18,024,097 $430,053
3/8/2010 34,700,000 AUD $29,735,124 $30,584,237 $(849,113)
3/8/2010 11,981,610,000 JPY $134,135,013 $132,753,723 $1,381,290
3/8/2010 62,700,000 NZD $44,477,499 $43,890,454 $587,045
3/12/2010 128,356,800 NOK $21,964,988 $21,630,340 $334,648
3/12/2010 210,991,198 SEK $29,986,527 $28,557,180 $1,429,347
3/16/2010 42,840,850,000 COP $21,250,422 $21,514,418 $(263,996)
4/1/2010 392,456,250 CZK $22,371,740 $20,735,281 $1,636,459
4/1/2010 172,482,750 ZAR $21,748,194 $22,353,908 $(605,714)
4/5/2010 54,120,000 BRL $30,507,328 $28,362,200 $2,145,128
4/5/2010 82,684,196 CAD $76,727,104 $77,323,078 $(595,974)
4/5/2010 69,512,603 CAD $64,470,973 $65,005,511 $(534,538)
4/6/2010 15,200,000 CAD 82,698,640 NOK $14,214,442 $(136,065)
4/6/2010 82,566,400 NOK 15,200,000 CAD $13,894,356 $471,582
4/6/2010 4,135,725,000 HUF $21,857,856 $20,941,772 $916,084
4/6/2010 65,319,750 PLN $22,179,128 $22,259,184 $(80,056)
4/8/2010 14,583,047 CHF 19,956,274 SGD $13,753,664 $466,283
4/20/2010 26,400,000 GBP $42,691,440 $42,176,162 $515,278
4/20/2010 26,200,000 GBP $42,633,426 $41,856,646 $776,780
4/20/2010 14,555,800 EUR $20,474,916 $20,177,491 $297,425
4/20/2010 15,744,200 EUR $22,200,109 $21,824,871 $375,238
4/30/2010 1,909,938,095 JPY 29,999,813 SGD $21,167,441 $172,083
5/6/2010 3,230,475,000 JPY $35,638,362 $35,804,117 $(165,754)
5/7/2010 5,868,120,000 KRW $4,981,426 $5,037,229 $(55,803)
NET UNREALIZED APPRECIATION ON FOREIGN EXCHANGE CONTRACTS $2,395,751
6
Net Unrealized Appreciation on Futures Contracts, Foreign Exchange Contracts and Value of Securities Sold Short are included in “Other Assets and Liabilities — Net.”
1 Non-income producing security.
2 Discount rate at the time of purchase.
3 All or a portion of these securities are held as collateral for open short positions.
4 Pledged as collateral to ensure the Fund is able to satisfy the obligations of its outstanding futures contracts.
5 Zero coupon bond, reflects effective rate at time of purchase.
6 Affiliated company.
7 7-Day net yield.
8 At January 31, 2010, the cost of investments for federal tax purposes was $1,354,296,447. The net unrealized appreciation of investments for federal tax purposes excluding any unrealized appreciation/depreciation resulting from changes in securities sold short, futures contracts and foreign exchange contracts was $60,625,402. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $82,217,048 and net unrealized depreciation from investments for those securities having an excess of cost over value of $21,591,646.
9 Assets, other than investments in securities, less liabilities.

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2010.

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

  • Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
  • Shares of other mutual funds are valued based upon their reported NAVs.
  • Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (the “Trustees”).
  • Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
  • Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
  • Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.

If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund's NAV.

Fair Valuation and Significant Events Procedures

The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers, and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.

The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

  • With respect to securities traded in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures or options contracts;
  • With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
  • Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
  • Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.

The Trustees have approved the use of a pricing service to determine the fair value of equity securities traded principally in foreign markets when the Adviser determines that there has been a significant trend in the U.S. equity markets or in index futures trading. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Trustees.

7

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:

Level 1 — quoted prices in active markets for identical securitiesLevel 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)Level 3 — significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of January 31, 2010, in valuing the Fund's assets carried at fair value:

Valuation Inputs
Level 1 — 
Quoted Prices And
Investments In
Mutual Funds		 Level 2 — 
Other
Significant
Observable Inputs		 Level 3 — 
Significant
Unobservable
Inputs		 Total
Equity Securities:
Domestic $289,771,250 $ —  $ —  $289,771,250
International 140,129,303 215,701,399  —  355,830,702
Debt Securities:
U.S. Treasury  —  440,756,324  —  440,756,324
Governments/Agencies  —  113,255,137  —  113,255,137
Investment Fund 75,085,575  —   —  75,085,575
Bullion 52,365,680  —   —  52,365,680
Exchange-Traded Fund 48,070,000  —   —  48,070,000
Mutual Funds 39,787,181  —   —  39,787,181
TOTAL SECURITIES $645,208,989 $769,712,860 $ —  $1,414,921,849
OTHER FINANCIAL INSTRUMENTS* $(602,906,440) $2,395,751 $ —  $(600,510,689)
* Other financial instruments include futures contracts, foreign exchange contracts and securities sold short.

The following acronyms are used throughout this portfolio:

ADR  — American Depositary Receipt
AUD  — Australian Dollar
BRL  — Brazil Real
CAD  — Canadian Dollars
CHF  — Swiss Franc
COP  — Colombian Peso
CZK  — Czech Koruna
EUR  — Euro
GBP  — Great Britain Pound
HUF  — Hungarian Forint
JPY  — Japanese Yen
KRW  — South Korean Won
NOK  — Norwegian Krone
NZD  — New Zealand Dollar
PEN  — Peruvian Nuevo
PLN  — Polish Zloty
RUB  — Russian Ruble
SEK  — Swedish Krona
SGD  — Singapore Dollar
ZAR  — South African Rand

8

Item 3. Exhibits

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.

 

Registrant     Federated Equity Funds
By  

/S/    RICHARD A. NOVAK        

  Richard A. Novak
  Principal Financial Officer

Date June 22, 2010

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/    J. CHRISTOPHER DONAHUE        

  J. Christopher Donahue
  Principal Executive Officer
Date June 22, 2010
By  

/S/    RICHARD A. NOVAK        

  Richard A. Novak
  Principal Financial Officer
Date June 22, 2010