NPORT-EX 2 Paramount_-_Part_F.htm

 

FPA PARAMOUNT FUND, INC.

PORTFOLIO OF INVESTMENTS

December 31, 2019

(Unaudited)

 

COMMON STOCKS

 

Shares

 

Fair Value

 

APPLICATION SOFTWARE — 10.1%

 

 

 

 

 

Activision Blizzard, Inc.

 

89,360

 

$

5,309,771

 

Tencent Holdings Ltd. (China)

 

119,822

 

5,775,592

 

Ubisoft Entertainment SA (France)(a) 

 

92,545

 

6,392,479

 

 

 

 

 

$

17,477,842

 

INTERNET MEDIA — 6.4%

 

 

 

 

 

Alphabet, Inc. (Class C)(a) 

 

4,400

 

$

5,882,888

 

NAVER Corp. (South Korea)

 

32,132

 

5,181,908

 

 

 

 

 

$

11,064,796

 

INFRASTRUCTURE SOFTWARE — 6.0%

 

 

 

 

 

Microsoft Corp.

 

43,460

 

$

6,853,642

 

Oracle Corp.

 

66,000

 

3,496,680

 

 

 

 

 

$

10,350,322

 

COMMERCIAL SERVICES — 5.6%

 

 

 

 

 

Amadeus IT Group SA (Spain)

 

60,129

 

$

4,910,120

 

Babcock International Group plc (Britain)

 

565,904

 

4,717,959

 

 

 

 

 

$

9,628,079

 

MEDICAL EQUIPMENT — 5.2%

 

 

 

 

 

Alcon, Inc. (Switzerland)(a) 

 

83,690

 

$

4,738,802

 

Koninklijke Philips NV (Netherlands)

 

86,651

 

4,229,988

 

 

 

 

 

$

8,968,790

 

AIRLINES — 5.0%

 

 

 

 

 

Ryanair Holdings plc (Ireland)(a) 

 

533,443

 

$

8,754,050

 

 

 

 

 

 

 

BEVERAGES — 5.0%

 

 

 

 

 

Ambev SA (Brazil)(a) 

 

928,776

 

$

4,310,600

 

Heineken Holding NV (Netherlands)

 

44,614

 

4,323,760

 

 

 

 

 

$

8,634,360

 

PROFESSIONAL SERVICES — 4.8%

 

 

 

 

 

Pagegroup plc (Britain)

 

845,901

 

$

5,860,112

 

Randstad NV (Netherlands)

 

41,716

 

2,547,402

 

 

 

 

 

$

8,407,514

 

HOUSEHOLD PRODUCTS — 4.1%

 

 

 

 

 

Henkel AG & Co. KGaA (Germany)

 

45,360

 

$

4,273,946

 

L’Oreal SA (France)

 

9,705

 

2,873,930

 

 

 

 

 

$

7,147,876

 

BUILDING MAINTENANCE SERVICES — 3.3%

 

 

 

 

 

ISS A/S (Denmark)

 

235,673

 

$

5,654,935

 

 

 

 

 

 

 

SPECIALTY APPAREL STORES — 3.3%

 

 

 

 

 

Industria de Diseno Textil SA (Spain)

 

160,160

 

$

5,650,039

 

 

 

 

 

 

 

INFORMATION TECHNOLOGY SERVICES — 3.1%

 

 

 

 

 

Capgemini SE (France)

 

44,570

 

$

5,444,365

 

 

 

COMMON STOCKS - Continued

 

Shares

 

Fair Value

 

SEMICONDUCTOR MANUFACTURING — 3.0%

 

 

 

 

 

ASML Holding NV (Netherlands)

 

17,329

 

$

5,125,784

 

 

 

 

 

 

 

INTERNET BASED SERVICES — 2.8%

 

 

 

 

 

Booking Holdings, Inc.(a) 

 

2,338

 

$

4,801,621

 

 

 

 

 

 

 

HEALTH CARE SUPPLIES — 2.6%

 

 

 

 

 

EssilorLuxottica SA (France)

 

29,866

 

$

4,549,394

 

 

 

 

 

 

 

NON WOOD BUILDING MATERIALS — 2.5%

 

 

 

 

 

Cie de Saint-Gobain (France)

 

107,560

 

$

4,403,727

 

 

 

 

 

 

 

APPAREL, FOOTWEAR & ACCESSORY DESIGN — 2.5%

 

 

 

 

 

Cie Financiere Richemont SA (Switzerland)

 

54,740

 

$

4,302,050

 

 

 

 

 

 

 

MACHINERY — 2.4%

 

 

 

 

 

Cargotec Oyj (B Shares) (Finland)

 

125,227

 

$

4,247,726

 

 

 

 

 

 

 

BANKS — 2.4%

 

 

 

 

 

AIB Group plc (Ireland)

 

1,202,464

 

$

4,189,385

 

 

 

 

 

 

 

MASS MERCHANTS — 2.3%

 

 

 

 

 

Dollar General Corp.

 

25,490

 

$

3,975,930

 

 

 

 

 

 

 

FOOD SERVICES — 2.2%

 

 

 

 

 

Sodexo SA (France)

 

32,450

 

$

3,845,572

 

 

 

 

 

 

 

ADVERTISING & MARKETING — 2.1%

 

 

 

 

 

Stroeer SE & Co. KGaA (Germany)

 

45,226

 

$

3,655,097

 

 

 

 

 

 

 

HEALTH CARE SERVICES — 2.1%

 

 

 

 

 

Laboratory Corp. of America Holdings(a) 

 

21,470

 

$

3,632,080

 

 

 

 

 

 

 

COMMUNICATIONS EQUIPMENT — 2.0%

 

 

 

 

 

Cisco Systems, Inc.

 

37,000

 

$

1,774,520

 

Samsung Electronics Co. Ltd. (South Korea)

 

33,866

 

1,634,072

 

 

 

 

 

$

3,408,592

 

AUTOMOTIVE RETAILERS — 1.9%

 

 

 

 

 

O’Reilly Automotive, Inc.(a) 

 

7,327

 

$

3,211,131

 

 

 

 

 

 

 

FLOW CONTROL EQUIPMENT — 1.5%

 

 

 

 

 

Sulzer AG (Switzerland)

 

22,561

 

$

2,517,656

 

 

 

 

 

 

 

PACKAGED FOOD — 0.9%

 

 

 

 

 

Nestle SA (Switzerland)

 

14,440

 

$

1,563,363

 

 

 

COMMON STOCKS - Continued

 

Shares or 
Principal 
Amount

 

Fair Value

 

OTHER COMMERCIAL SERVICES — 0.5%

 

 

 

 

 

ALS Ltd. (Australia)

 

132,729

 

$

855,049

 

 

 

 

 

 

 

BASIC & DIVERSIFIED CHEMICALS — 0.4%

 

 

 

 

 

Air Liquide SA (France)

 

4,943

 

$

699,724

 

 

 

 

 

 

 

 

OTHER COMMON STOCKS — 2.8%(b)

 

 

 

$

4,941,993

 

 

 

 

 

 

 

 

TOTAL COMMON STOCKS — 98.8% (Cost $147,969,617)

 

 

 

$

171,108,842

 

 

 

 

 

 

 

 

TOTAL INVESTMENT SECURITIES — 98.8% (Cost $147,969,617)

 

 

 

$

171,108,842

 

 

 

 

 

 

 

 

SHORT-TERM INVESTMENTS — 0.8%

 

 

 

 

 

State Street Bank Repurchase Agreement — 0.12% 1/2/2020
(Dated 12/31/2019, repurchase price of $1,442,010, collateralized by $1,480,000 principal amount U.S. Treasury Notes —1.250% 2021, fair value $1,473,916)

 

$

1,442,000

 

$

1,442,000

 

 

 

 

 

 

 

 

 

TOTAL SHORT-TERM INVESTMENTS (Cost $1,442,000)

 

 

 

$

1,442,000

 

 

 

 

 

 

 

 

TOTAL INVESTMENTS — 99.6% (Cost $149,411,617)

 

 

 

$

172,550,842

 

Other Assets and Liabilities, net — 0.4%

 

 

 

752,128

 

NET ASSETS — 100.0% — NOTE 2

 

 

 

$

173,302,970

 

 

(a)         Non-income producing security.

(b)         As permitted by U.S. Securities and Exchange Commission regulations, “Other” Common Stocks include holdings in their first year of acquisition that have not previously been publicly disclosed.

 

See Notes to Financial Statements.

 

 

NOTE 1 — Disclosure of Fair Value Measurements

 

The Fund uses the following methods and inputs to establish the fair value of its assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.

 

Equity securities are generally valued each day at the official closing price of, or the last reported sale price on, the exchange or market on which such securities principally are traded, as of the close of business on that day. If there have been no sales that day, equity securities are generally valued at the last available bid price. Securities that are unlisted and fixed-income and convertible securities listed on a national securities exchange for which the over-the-counter (“OTC”) market more accurately reflects the securities’ value in the judgment of the Fund’s officers, are valued at the most recent bid price. Events occurring after the close of trading on non-U.S. exchanges may result in adjustments to the valuation of foreign securities to reflect their fair value as of the close of regular trading on the NYSE. The Fund may utilize an independent fair valuation service in adjusting the valuations of foreign securities. Short-term corporate notes with maturities of 60 days or less at the time of purchase are valued at amortized cost.

 

Securities for which representative market quotations are not readily available or are considered unreliable by the Adviser are valued as determined in good faith under procedures adopted by the authority of the Fund’s Board of Directors. Various inputs may be reviewed in order to make a good faith determination of a security’s value. These inputs include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. Fair valuations and valuations of investments that are not actively trading involve judgment and may differ materially from valuations of investments that would have been used had greater market activity occurred.

 

The Fund classifies its assets based on three valuation methodologies. Level 1 values are based on quoted market prices in active markets for identical assets. Level 2 values are based on significant observable market inputs, such as quoted prices for similar assets and quoted prices in inactive markets or other market observable inputs as noted above including spreads, cash flows, financial performance, prepayments, defaults, collateral, credit enhancements, and interest rate volatility. Level 3 values are based on significant unobservable inputs that reflect the Fund’s determination of assumptions that market participants might reasonably use in valuing the assets. The valuation levels are not necessarily an indication of the risk associated with investing in those securities. The following table presents the valuation levels of the Fund’s investments as of December 31, 2019:

 

 

Investments

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Common Stocks

 

 

 

 

 

 

 

 

 

Application Software

 

$

17,477,842

 

—

 

—

 

$

17,477,842

 

Internet Media

 

11,064,796

 

—

 

—

 

11,064,796

 

Infrastructure Software

 

10,350,322

 

—

 

—

 

10,350,322

 

Commercial Services

 

9,628,079

 

—

 

—

 

9,628,079

 

Medical Equipment

 

8,968,790

 

—

 

—

 

8,968,790

 

Airlines

 

8,754,050

 

—

 

—

 

8,754,050

 

Beverages

 

8,634,360

 

—

 

—

 

8,634,360

 

Professional Services

 

8,407,514

 

—

 

—

 

8,407,514

 

Household Products

 

7,147,876

 

—

 

—

 

7,147,876

 

Building Maintenance Services

 

5,654,935

 

—

 

—

 

5,654,935

 

Specialty Apparel Stores

 

5,650,039

 

—

 

—

 

5,650,039

 

Information Technology Services

 

5,444,365

 

—

 

—

 

5,444,365

 

Semiconductor Manufacturing

 

5,125,784

 

—

 

—

 

5,125,784

 

Internet Based Services

 

4,801,621

 

—

 

—

 

4,801,621

 

Health Care Supplies

 

4,549,394

 

—

 

—

 

4,549,394

 

Non Wood Building Materials

 

4,403,727

 

—

 

—

 

4,403,727

 

Apparel, Footwear & Accessory Design

 

4,302,050

 

—

 

—

 

4,302,050

 

Machinery

 

4,247,726

 

—

 

—

 

4,247,726

 

Banks

 

4,189,385

 

—

 

—

 

4,189,385

 

Mass Merchants

 

3,975,930

 

—

 

—

 

3,975,930

 

Food Services

 

3,845,572

 

—

 

—

 

3,845,572

 

Advertising & Marketing

 

3,655,097

 

—

 

—

 

3,655,097

 

Health Care Services

 

3,632,080

 

—

 

—

 

3,632,080

 

Communications Equipment

 

3,408,592

 

—

 

—

 

3,408,592

 

Automotive Retailers

 

3,211,131

 

—

 

—

 

3,211,131

 

Flow Control Equipment

 

2,517,656

 

—

 

—

 

2,517,656

 

Packaged Food

 

1,563,363

 

—

 

—

 

1,563,363

 

Other Commercial Services

 

855,049

 

—

 

—

 

855,049

 

Basic & Diversified Chemicals

 

699,724

 

—

 

—

 

699,724

 

Other Common Stocks

 

4,941,993

 

—

 

—

 

4,941,993

 

Short-Term Investment

 

—

 

$

1,442,000

 

—

 

1,442,000

 

 

 

$

171,108,842

 

$

1,442,000

 

—

 

$

172,550,842

 

 

 

Transfers of investments between different levels of the fair value hierarchy are recorded at fair value as of the end of the reporting period. There were transfers of $106,088,376 from Level 2 to Level 1 during the period ended December 31, 2019.

 

NOTE 2 — Federal Income Tax

 

The cost of investment securities held at December 31, 2019 (excluding short-term investments), was $149,479,519 for federal income tax purposes.

 

Net unrealized appreciation consists of:

 

Gross unrealized appreciation:

 

$

29,458,341

 

Gross unrealized depreciation:

 

(7,829,018

)

Net unrealized appreciation:

 

$

21,629,323