NPORT-EX 1 T.RowePriceCapitalAppr.htm cafnq33119draft2002.htm - Generated by SEC Publisher for SEC Filing
T. ROWE PRICE CAPITAL APPRECIATION FUND
March 31, 2019  (Unaudited)   
 
 
Portfolio of Investments‡  Shares/Par  $ Value 
(Cost and value in $000s)     
COMMON STOCKS 61.0%     
COMMUNICATION SERVICES 3.9%     
Interactive Media & Services 3.9%     
Alphabet, Class A (1)  125,728  147,968 
Alphabet, Class C (1)(2)  577,095  677,111 
Facebook, Class A (1)(2)  2,745,500  457,648 
Total Communication Services    1,282,727 
CONSUMER DISCRETIONARY 5.0%     
Auto Components 0.9%     
Aptiv  3,883,409  308,692 
    308,692 
Hotels, Restaurants & Leisure 1.5%     
McDonald's (2)  1,058,323  200,976 
Yum! Brands (2)  2,877,328  287,186 
    488,162 
Internet & Direct Marketing Retail 2.6%     
Amazon.com (1)(2)  400,914  713,927 
Booking Holdings (1)(2)  91,200  159,136 
    873,063 
Total Consumer Discretionary    1,669,917 
CONSUMER STAPLES 0.4%     
Beverages 0.4%     
Keurig Dr Pepper  5,088,534  142,326 
Total Consumer Staples    142,326 
ENERGY 1.2%     
Oil, Gas & Consumable Fuels 1.2%     
Concho Resources  1,185,700  131,565 
Enterprise Products Partners (2)  8,655,164  251,866 
Total Energy    383,431 

 

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T. ROWE PRICE CAPITAL APPRECIATION FUND
 
 
 
  Shares/Par  $ Value 
(Cost and value in $000s)     
FINANCIALS 7.4%     
Banks 1.3%     
PNC Financial Services Group  3,464,223  424,921 
    424,921 
Capital Markets 3.1%     
Intercontinental Exchange  4,344,518  330,792 
S&P Global (2)  3,294,667  693,692 
    1,024,484 
Insurance 3.0%     
Marsh & McLennan  10,496,387  985,611 
    985,611 
Total Financials    2,435,016 
HEALTH CARE 13.7%     
Health Care Equipment & Supplies 5.9%     
Abbott Laboratories (2)  1,482,720  118,528 
Becton Dickinson & Company  2,903,540  725,101 
Danaher  8,372,434  1,105,329 
    1,948,958 
Health Care Providers & Services 2.1%     
Anthem (2)  947,700  271,971 
UnitedHealth Group (2)  1,797,608  444,477 
    716,448 
Life Sciences Tools & Services 5.7%     
PerkinElmer (3)  11,844,980  1,141,382 
Thermo Fisher Scientific (2)  2,688,535  735,906 
    1,877,288 
Total Health Care    4,542,694 
INDUSTRIALS & BUSINESS SERVICES 8.7%     
Commercial Services & Supplies 1.9%     
Republic Services  2,490,012  200,147 
Waste Connections  4,857,619  430,337 
    630,484 

 

 

T. ROWE PRICE CAPITAL APPRECIATION FUND
 
 
 
  Shares/Par  $ Value 
(Cost and value in $000s)     
Industrial Conglomerates 4.1%     
General Electric  68,510,586  684,421 
Roper Technologies  1,908,087  652,508 
    1,336,929 
Machinery 2.1%     
Fortive  8,348,312  700,340 
    700,340 
Professional Services 0.6%     
Equifax  1,732,762  205,332 
    205,332 
Total Industrials & Business Services    2,873,085 
INFORMATION TECHNOLOGY 14.0%     
Electronic Equipment, Instruments & Components 1.5%     
TE Connectivity  6,264,701  505,875 
    505,875 
IT Services 5.7%     
Fidelity National Information Services  1,868,429  211,319 
Fiserv (1)  10,173,526  898,119 
Mastercard, Class A  95  22 
Visa, Class A (2)  4,856,217  758,493 
    1,867,953 
Semiconductors & Semiconductor Equipment 3.4%     
Maxim Integrated Products  7,598,137  403,993 
Texas Instruments (2)  6,716,692  712,439 
    1,116,432 
Software 3.4%     
Intuit (2)  560,400  146,494 
Microsoft (2)  8,295,700  978,395 
    1,124,889 
Total Information Technology    4,615,149 

 

 

T. ROWE PRICE CAPITAL APPRECIATION FUND
 
 
 
  Shares/Par  $ Value 
(Cost and value in $000s)     
REAL ESTATE 0.8%     
Equity Real Estate Investment Trusts 0.8%     
American Tower, REIT (2)  1,267,000  249,675 
Total Real Estate    249,675 
UTILITIES 5.2%     
Electric Utilities 3.8%     
American Electric Power (2)  5,109,952  427,959 
Eversource Energy  2,989,365  212,095 
NextEra Energy (2)  1,118,456  216,220 
Xcel Energy  7,154,633  402,162 
    1,258,436 
Multi-Utilities 1.4%     
NiSource (3)  16,540,413  474,048 
    474,048 
Total Utilities    1,732,484 
Total Miscellaneous Common Stocks 0.7% (4)    241,041 
Total Common Stocks (Cost $13,835,814)    20,167,545 
 
PREFERRED STOCKS 2.1%     
FINANCIALS 0.4%     
Banking 0.3%     
JP Morgan Chase, Series DD, 5.75% (5)  2,550,000  65,612 
State Street, Series E, 6.00% (5)  148,987  3,811 
U.S. Bancorp, Series F, VR, 6.50% (3)(5)(6)  465,800  12,474 
U.S. Bancorp, Series K, 5.50% (3)(5)  1,200,000  30,492 
    112,389 
Financial Services 0.1%     
Charles Schwab, Series C, 6.00% (5)  1,050,000  27,331 
Charles Schwab, Series D, 5.95% (5)  95,800  2,488 
    29,819 
Total Financials    142,208 

 

 

T. ROWE PRICE CAPITAL APPRECIATION FUND
 
 
 
  Shares/Par  $ Value 
(Cost and value in $000s)     
UTILITIES 1.7%     
ELECTRIC UTILITIES 1.5%     
Alabama Power, Series A, 5.00% (3)(5)  780,000  20,062 
CMS Energy, 5.875%, 10/15/78 (3)  3,800,000  99,446 
CMS Energy, 5.875%, 3/1/79 (3)  5,050,000  130,038 
DTE Energy, Series E, 5.25%, 12/1/77 (3)  2,560,000  64,102 
Duke Energy, 5.625%, 9/15/78 (3)  2,520,000  64,235 
SCE Trust II, 5.10% (5)  106,560  2,211 
SCE Trust III, Series H, VR, 5.75% (3)(5)(6)  1,160,047  27,725 
SCE Trust IV, Series J, VR, 5.375% (3)(5)(6)  2,674,300  58,968 
SCE Trust V, Series K, VR, 5.45% (3)(5)(6)  625,000  14,000 
SCE Trust VI, 5.00% (5)  625,000  12,844 
Total Electric Utilities    493,631 
GAS & GAS TRANSMISSION 0.2%     
Nisource, VR, 6.50% (3)(5)(6)  2,550,000  67,192 
Total Gas & Gas Transmission    67,192 
Total Utilities    560,823 
Total Preferred Stocks (Cost $698,795)    703,031 
 
CONVERTIBLE PREFERRED STOCKS 2.6%     
FINANCIALS 1.2%     
Banks 1.2%     
Wells Fargo, Series L, 7.50% (5)  306,209  396,697 
Total Financials    396,697 
HEALTH CARE 0.9%     
Health Care Equipment & Supplies 0.9%     
Becton Dickinson & Company, Series A, 6.125%, 5/1/20  4,988,872  310,438 
Total Health Care    310,438 
INDUSTRIALS & BUSINESS SERVICES 0.3%     
Machinery 0.3%     
Fortive, Series A, 5.00%, 7/1/21  83,691  87,883 
Total Industrials & Business Services    87,883 

 

 

T. ROWE PRICE CAPITAL APPRECIATION FUND
 
 
 
  Shares/Par  $ Value 
(Cost and value in $000s)     
INFORMATION TECHNOLOGY 0.1%     
Software 0.1%     
Aurora Innovation, Series B Acquisition Date: 3/1/19, Cost:     
$25,766 (1)(7)(8)  278,843  25,766 
Total Information Technology    25,766 
UTILITIES 0.1%     
Electric Utilities 0.1%     
American Electric Power, 6.125%, 3/15/22  865,845  44,037 
Total Utilities    44,037 
Total Convertible Preferred Stocks (Cost $793,994)    864,821 
 
CORPORATE BONDS 18.6%     
Corporate Bonds 18.2%     
1011778 BC, 4.625%, 1/15/22 (9)  26,110,000  26,207 
3M, 3.00%, 9/14/21  19,115,000  19,308 
Amazon.com, 2.60%, 12/5/19  30,730,000  30,707 
American Electric Power, 3.65%, 12/1/21  6,150,000  6,268 
American Electric Power, 4.30%, 12/1/28  22,260,000  23,585 
American Tower, 3.30%, 2/15/21  25,595,000  25,661 
Amphenol, 2.20%, 4/1/20  19,330,000  19,201 
Amphenol, 3.20%, 4/1/24  9,670,000  9,647 
Apple, 1.50%, 9/12/19  82,755,000  82,336 
Aptiv, 4.35%, 3/15/29  15,870,000  16,107 
Aramark Services, 5.00%, 4/1/25 (9)  46,410,000  47,454 
Aramark Services, 5.00%, 2/1/28 (9)  17,425,000  17,251 
AutoZone, 1.625%, 4/21/19  3,250,000  3,248 
AutoZone, 2.50%, 4/15/21  13,695,000  13,559 
Avantor, 6.00%, 10/1/24 (9)  35,935,000  37,238 
Avantor, 9.00%, 10/1/25 (9)  150,191,000  162,582 
B&G Foods, 4.625%, 6/1/21  20,665,000  20,639 
Bank of New York Mellon, VR, 4.625% (5)(6)  26,250,000  24,872 

 

 

T. ROWE PRICE CAPITAL APPRECIATION FUND
 
 
 
  Shares/Par  $ Value 
(Cost and value in $000s)     
Bank of New York Mellon, VR, 4.95% (5)(6)  43,465,000  43,791 
Becton Dickinson & Company, 2.675%, 12/15/19  16,708,000  16,700 
Becton Dickinson & Company, 2.894%, 6/6/22  19,195,000  19,033 
Becton Dickinson & Company, 3.363%, 6/6/24  43,305,000  43,266 
Becton Dickinson & Company, FRN, 3M USD LIBOR + 1.03%,     
3.638%, 6/6/22  27,790,000  27,790 
Berkshire Hathaway Energy, 2.40%, 2/1/20  19,570,000  19,521 
Camden Property Trust, 4.10%, 10/15/28  4,015,000  4,218 
Caterpillar Financial Services, 2.25%, 12/1/19  9,845,000  9,819 
CCO Holdings, 4.00%, 3/1/23 (9)  18,065,000  17,975 
CCO Holdings, 5.00%, 2/1/28 (9)  197,338,000  194,378 
CCO Holdings, 5.125%, 2/15/23  20,665,000  21,027 
CCO Holdings, 5.125%, 5/1/23 (9)  47,310,000  48,256 
CCO Holdings, 5.125%, 5/1/27 (9)  133,065,000  133,564 
CCO Holdings, 5.25%, 3/15/21  16,819,000  16,903 
CCO Holdings, 5.25%, 9/30/22  54,948,000  55,978 
CCO Holdings, 5.75%, 9/1/23  27,375,000  27,957 
CCO Holdings, 5.75%, 1/15/24  32,375,000  33,225 
CCO Holdings, 5.875%, 4/1/24 (9)  12,360,000  12,885 
Cedar Fair, 5.375%, 6/1/24  35,165,000  35,868 
Cedar Fair, 5.375%, 4/15/27  44,339,000  44,561 
Charter Communications Operating, 3.579%, 7/23/20  17,785,000  17,903 
Comcast, 3.30%, 10/1/20  54,035,000  54,582 
Comcast, 3.45%, 10/1/21  24,505,000  24,936 
Comcast, FRN, 3M USD LIBOR + 0.33%, 3.127%, 10/1/20  26,550,000  26,585 
Comcast, FRN, 3M USD LIBOR + 0.44%, 3.237%, 10/1/21  20,950,000  20,979 
Conagra Brands, 3.80%, 10/22/21  79,200,000  80,676 
Conagra Brands, FRN, 3M USD LIBOR + 0.75%, 3.511%,     
10/22/20  13,375,000  13,336 
Continental Airlines PTT, Series 2009-2, Class A, 7.25%,     
11/10/19  3,135,788  3,206 
Continental Airlines PTT, Series 2012-1, Class A, 4.15%,     
4/11/24  10,702,434  10,910 

 

 

T. ROWE PRICE CAPITAL APPRECIATION FUND
 
 
 
  Shares/Par  $ Value 
(Cost and value in $000s)     
Continental Airlines PTT, Series 2012-1, Class B, 6.25%,     
4/11/20  1,287,850  1,309 
Crown Castle International, 4.875%, 4/15/22  57,537,000  60,671 
Crown Castle International, 5.25%, 1/15/23  105,887,000  113,755 
Delta Air Lines PTT, Series 2009-1, Class A, 7.75%, 12/17/19  1,421,191  1,461 
Delta Air Lines PTT, Series 2011-1, Class A, 5.30%, 4/15/19  1,744,268  1,745 
Dollar Tree, FRN, 3M USD LIBOR + 0.70%, 3.473%, 4/17/20  9,695,000  9,694 
Dominion Energy, STEP, 2.962%, 7/1/19  3,865,000  3,865 
DTE Energy, 3.70%, 8/1/23 (3)  15,895,000  16,238 
DTE Energy, 3.80%, 3/15/27 (3)  64,475,000  65,041 
Edison International, 2.125%, 4/15/20  13,225,000  13,118 
Elanco Animal Health, 3.912%, 8/27/21 (9)  27,209,000  27,649 
Elanco Animal Health, 4.272%, 8/28/23 (9)  12,970,000  13,362 
Elanco Animal Health, 4.90%, 8/28/28 (9)  31,350,000  33,295 
Enterprise Products Operating, 3.50%, 2/1/22  26,505,000  27,024 
EQT, 8.125%, 6/1/19  11,778,000  11,851 
Eversource Energy, 2.75%, 3/15/22  19,200,000  19,197 
Eversource Energy, 2.90%, 10/1/24  12,800,000  12,677 
Eversource Energy, 3.30%, 1/15/28  31,693,000  31,260 
Eversource Energy, 3.80%, 12/1/23  9,835,000  10,183 
Eversource Energy, 4.25%, 4/1/29  15,905,000  16,943 
Fiserv, 2.70%, 6/1/20  38,295,000  38,196 
Fiserv, 3.80%, 10/1/23  19,120,000  19,556 
Fiserv, 4.20%, 10/1/28  19,120,000  19,661 
Fortive, 1.80%, 6/15/19  308,000  307 
Fresenius Medical Care US Finance, 5.75%, 2/15/21 (9)  8,475,000  8,814 
General Electric, VR, 5.00% (5)(6)  22,855,000  21,312 
HCA, 4.25%, 10/15/19  28,260,000  28,437 
HCA, 6.50%, 2/15/20  140,679,000  144,724 
Hilton Domestic Operating, 4.25%, 9/1/24  18,765,000  18,695 
Hologic, 4.375%, 10/15/25 (9)  34,325,000  34,025 

 

 

T. ROWE PRICE CAPITAL APPRECIATION FUND
 
 
 
  Shares/Par  $ Value 
(Cost and value in $000s)     
Home Depot, 3.25%, 3/1/22  15,915,000  16,276 
Home Depot, FRN, 3M USD LIBOR + 0.31%, 2.936%, 3/1/22  19,335,000  19,331 
KFC Holding, 4.75%, 6/1/27 (9)  135,145,000  132,780 
KFC Holding, 5.00%, 6/1/24 (9)  27,500,000  28,050 
KFC Holding, 5.25%, 6/1/26 (9)  36,774,000  37,142 
Lennox International, 3.00%, 11/15/23  6,420,000  6,311 
Level 3 Financing, 5.375%, 8/15/22  26,200,000  26,364 
Marsh & McLennan, 2.35%, 3/6/20  8,660,000  8,629 
Marsh & McLennan, 2.75%, 1/30/22  13,100,000  13,093 
Marsh & McLennan, 3.30%, 3/14/23  4,820,000  4,889 
Mirant, EC, 0.00%, 7/15/12 (1)(7)(9)  16,000,000  0 
Moody's, 4.25%, 2/1/29  54,105,000  56,569 
Moog, 5.25%, 12/1/22 (9)  1,305,000  1,325 
Nestle Holdings, 3.10%, 9/24/21 (9)  111,585,000  112,701 
Netflix, 4.375%, 11/15/26  134,150,000  131,467 
Netflix, 4.875%, 4/15/28  253,705,000  250,217 
Netflix, 5.375%, 2/1/21  1,830,000  1,899 
Netflix, 5.50%, 2/15/22  6,190,000  6,484 
Netflix, 5.875%, 2/15/25  56,540,000  60,922 
Netflix, 5.875%, 11/15/28 (9)  245,295,000  258,786 
Netflix, 6.375%, 5/15/29 (9)  146,335,000  158,225 
NiSource, 3.49%, 5/15/27 (3)  71,255,000  70,996 
NiSource, 4.375%, 5/15/47 (3)  38,845,000  39,318 
Nisource, VR, 5.65% (3)(5)(6)  44,495,000  43,494 
Northrop Grumman, 2.55%, 10/15/22  44,875,000  44,393 
NSTAR Electric, 3.20%, 5/15/27  25,715,000  25,748 
NuStar Logistics, 4.80%, 9/1/20  12,700,000  12,827 
Philip Morris International, 2.00%, 2/21/20  25,740,000  25,602 
Philip Morris International, 2.625%, 2/18/22  32,240,000  32,202 
Philip Morris International, FRN, 3M USD LIBOR + 0.42%,     
3.061%, 2/21/20  17,230,000  17,219 

 

 

T. ROWE PRICE CAPITAL APPRECIATION FUND
 
 
 
  Shares/Par  $ Value 
(Cost and value in $000s)     
PNC Financial Services Group, Series S, VR, 5.00% (5)(6)  55,065,000  54,239 
Reckitt Benckiser Treasury Services, FRN, 3M USD LIBOR +     
0.56%, 3.162%, 6/24/22 (9)  35,825,000  35,471 
Refinitiv U.S. Holdings, 6.25%, 5/15/26 (9)  43,645,000  44,245 
Refinitiv U.S. Holdings, 8.25%, 11/15/26 (9)  57,030,000  56,032 
Reynolds Group Issuer, 5.125%, 7/15/23 (9)  31,300,000  31,730 
Reynolds Group Issuer, 5.75%, 10/15/20  123,241,428  123,241 
Reynolds Group Issuer, FRN, 3M USD LIBOR + 3.50%, 6.287%,     
7/15/21 (9)  38,325,000  38,469 
Reynolds Group Issuer, STEP, 6.875%, 2/15/21  21,161,300  21,214 
Roper Technologies, 3.65%, 9/15/23  31,830,000  32,233 
Roper Technologies, 4.20%, 9/15/28  28,400,000  29,382 
SBA Communications, 4.00%, 10/1/22  31,740,000  31,819 
SBA Communications, 4.875%, 7/15/22  83,038,000  84,076 
SBA Communications, 4.875%, 9/1/24  24,740,000  24,926 
Sensata Technologies, 4.875%, 10/15/23 (9)  7,175,000  7,399 
Sensata Technologies, 5.00%, 10/1/25 (9)  23,800,000  24,157 
Sensata Technologies, 5.625%, 11/1/24 (9)  6,670,000  7,087 
Sensata Technologies UK Financing, 6.25%, 2/15/26 (9)  5,012,000  5,300 
Shell International Finance, FRN, 3M USD LIBOR + 0.45%,     
3.147%, 5/11/20  49,720,000  49,945 
Sirius XM Radio, 3.875%, 8/1/22 (9)  15,325,000  15,248 
Sirius XM Radio, 4.625%, 5/15/23 (9)  16,745,000  16,933 
Sirius XM Radio, 6.00%, 7/15/24 (9)  38,730,000  40,134 
Six Flags Entertainment, 4.875%, 7/31/24 (9)  13,840,000  13,632 
Six Flags Entertainment, 5.50%, 4/15/27 (9)  5,025,000  4,956 
Solera, 10.50%, 3/1/24 (9)  195,922,000  212,330 
State Street, VR, 5.25% (5)(6)  33,460,000  34,171 
State Street, VR, 5.625% (5)(6)  70,125,000  70,300 
Teleflex, 4.625%, 11/15/27  27,690,000  27,448 
Teleflex, 4.875%, 6/1/26  23,840,000  24,257 
Trinity Acquisition, 4.40%, 3/15/26  19,610,000  20,357 

 

 

T. ROWE PRICE CAPITAL APPRECIATION FUND
 
 
 
  Shares/Par  $ Value 
(Cost and value in $000s)     
U.S. Airways PTT, Series 2010-1, Class A, 6.25%, 4/22/23  8,351,941  8,920 
U.S. Airways PTT, Series 2012-2, Class A, 4.625%, 6/3/25  1,251,183  1,300 
U.S. Airways PTT, Series 2012-2, Class B, 6.75%, 6/3/21  2,120,563  2,212 
U.S. Airways PTT, Series 2013-1, Class A, 3.95%, 11/15/25  7,876,687  7,933 
U.S. Airways PTT, Series 2013-1, Class B, 5.375%, 11/15/21  2,528,352  2,588 
U.S. Bancorp, VR, 5.30% (3)(5)(6)  22,505,000  22,843 
Unilever Capital, 3.00%, 3/7/22  17,770,000  17,958 
Unitymedia, 6.125%, 1/15/25 (9)  61,893,000  64,137 
Verizon Communications, 3.125%, 3/16/22  32,200,000  32,490 
Verizon Communications, FRN, 3M USD LIBOR + 1.00%,     
3.615%, 3/16/22  32,200,000  32,688 
Virginia Electric & Power, 3.15%, 1/15/26  10,335,000  10,346 
Virginia Electric & Power, 3.50%, 3/15/27  22,545,000  22,935 
Waste Connections, 4.25%, 12/1/28  12,720,000  13,526 
Welbilt, 9.50%, 2/15/24  23,776,000  25,678 
Wisconsin Public Service, 3.35%, 11/21/21  15,900,000  16,171 
Xcel Energy, 4.00%, 6/15/28  25,360,000  26,427 
Xylem, 3.25%, 11/1/26  5,110,000  4,998 
Xylem, 4.875%, 10/1/21  3,095,000  3,240 
Yum! Brands, 3.75%, 11/1/21  98,140,000  98,140 
Yum! Brands, 3.875%, 11/1/20  57,015,000  57,086 
Yum! Brands, 3.875%, 11/1/23  32,680,000  32,517 
Yum! Brands, 5.30%, 9/15/19  14,025,000  14,113 
Yum! Brands, 5.35%, 11/1/43  47,261,000  40,881 
Yum! Brands, 6.875%, 11/15/37  27,015,000  27,083 
Zayo Group, 5.75%, 1/15/27 (9)  109,199,000  108,516 
Total Miscellaneous Corporate Bonds 0.4% (4)    119,186 
Total Corporate Bonds (Cost $6,065,106)    6,127,665 
 
BANK LOANS 5.0% (10)     
BCP Raptor, FRN     
3M USD LIBOR + 4.25%, 6.879%, 6/24/24  44,124,768  41,340 

 

 

T. ROWE PRICE CAPITAL APPRECIATION FUND
 
 
 
 
  Shares/Par  $ Value 
(Cost and value in $000s)     
 
Berry Global, FRN     
3M USD LIBOR + 1.75%, 4.243%, 2/8/20  12,885,000  12,834 
 
CCC Information Services, FRN     
3M USD LIBOR + 3.00%, 5.50%, 4/29/24  31,383,962  30,776 
 
Change Healthcare Holdings, FRN     
3M USD LIBOR + 2.75%, 5.249%, 3/1/24  64,420,800  63,515 
 
First Data, FRN     
3M USD LIBOR + 1.50%, 3.986%, 10/26/23  175,743,107  174,740 
 
First Data, FRN     
3M USD LIBOR + 2.25%, 4.486%, 7/8/22  131,653,607  131,322 
 
First Data, FRN     
3M USD LIBOR + 2.25%, 4.486%, 4/26/24  529,692,243  528,029 
 
Formula One Management, FRN     
3M USD LIBOR + 2.50%, 4.999%, 2/1/24  31,722,167  30,509 
 
Gartner, FRN     
3M USD LIBOR + 2.00%, 3.999%, 3/21/22 (7)  7,076,712  7,050 
 
HB Fuller, FRN     
3M USD LIBOR + 2.00%, 4.488%, 10/20/24  16,593,948  16,278 
 
HUB International, FRN     
3M USD LIBOR + 3.00%, 5.515%, 4/25/25  227,912,738  220,125 
 
Kronos, FRN     
3M USD LIBOR + 3.00%, 5.736%, 11/1/23  103,958,349  102,890 
 
NVA Holdings, FRN     
3M USD LIBOR + 2.75%, 5.249%, 2/2/25  24,627,346  23,750 
 
Prestige Brands, FRN     
3M USD LIBOR + 2.00%, 4.499%, 1/26/24  1,807,789  1,786 
 
Refinitiv U.S. Holdings, FRN     
3M USD LIBOR + 3.75%, 6.249%, 10/1/25  108,647,700  105,408 
 
Trans Union, FRN     
3M USD LIBOR + 1.75%, 4.249%, 8/9/22  62,028,007  61,408 
 
Trans Union, FRN     
3M USD LIBOR + 2.00%, 4.499%, 6/19/25  44,062,038  43,419 
 
Worldpay, FRN     
3M USD LIBOR + 1.75%, 3.947%, 1/16/23  18,278,000  18,236 
 
Zayo Group, FRN     
3M USD LIBOR + 2.00%, 4.499%, 1/19/21  19,102,538  18,980 

 

 

T. ROWE PRICE CAPITAL APPRECIATION FUND
 
 
 
      Shares/Par  $ Value 
  (Cost and value in $000s)      
  Zayo Group, FRN      
  3M USD LIBOR + 2.25%, 4.749%, 1/19/24   31,725,000  31,513 
  Total Bank Loans (Cost $1,684,221)     1,663,908 
 
ASSET -BACKED SECURITIES 0.3%      
  Domino's Pizza Master Issuer      
  Series 2017-1A, Class A23      
  4.118%, 7/25/47 (9)   40,064,875  40,646 
  Domino's Pizza Master Issuer      
  Series 2018-1A, Class A2I      
  4.116%, 7/25/48 (9)   35,089,838  35,619 
  Wendy's Funding      
  Series 2018-1A, Class A2I      
  3.573%, 3/15/48 (9)   24,656,888  24,308 
  Total Asset-Backed Securities (Cost $98,837)     100,573 
 
  U.S. GOVERNMENT AGENCY OBLIGATIONS      
  (EXCLUDING MORTGAGE-BACKED) 3.3%      
  U.S. Treasury Obligations 3.3%      
  U.S. Treasury Notes, 2.375%, 2/29/24   180,375,000  181,671 
  U.S. Treasury Notes, 2.50%, 1/31/24   779,049,000  788,544 
  U.S. Treasury Notes, 2.625%, 12/31/23   111,246,900  113,194 
        1,083,409 
 
  Total U.S. Government Agency Obligations (Excluding Mortgage-Backed) (Cost   
$ 1,070,026 )    1,083,409 
 
  BOND MUTUAL FUNDS 0.3%      
  T. Rowe Price Institutional Floating Rate Fund, 5.31% (3)(11)   8,313,119  81,469 
  Total Bond Mutual Funds (Cost $80,315)     81,469 
 
SHORT -TERM INVESTMENTS 7.8%      
  Money Market Funds 7.8%      
  T. Rowe Price Government Reserve Fund, 2.49% (3)(12)   2,579,444,738  2,579,445 
  Total Short-Term Investments (Cost $2,579,445)     2,579,445 

 

 

    T. ROWE PRICE CAPITAL APPRECIATION FUND     
 
 
 
 
(Amounts in 000s, except for contracts)          
 
OPTIONS PURCHASED 0.0%          
OTC Options Purchased 0.0%          
Counterparty    Description   Contracts Notional Amount    Value 
    Conagra Brands, Call, 1/17/20 @          
Citigroup  $ 25.00 (1)  19,889  55,172  $ 8,552 
Total OTC Options Purchased (Cost $2,786)         8,552 
Total Options Purchased (Cost $2,786)         8,552 
 
Total Investments in Securities 101.0%          
(Cost $26,909,339)     $    33,380,418 
Other Assets Less Liabilities (1.0)%         (336,728) 
Net Assets 100.0%     $    33,043,690 

 

‡ Shares/Par and Notional Amount are denominated in U.S. dollars unless
otherwise noted.
(1) Non-income producing
(2) All or a portion of this security is pledged to cover or as collateral for written
call options at March 31, 2019.
(3) Affiliated Companies
(4) The identity of certain securities has been concealed to protect the fund while
it completes a purchase or selling program for the securities.
(5) Perpetual security with no stated maturity date.
(6) Security is a fix-to-float security, which carries a fixed coupon until a certain
date, upon which it switches to a floating rate. Reference rate and spread is
provided if the rate is currently floating.
(7) Level 3 in fair value hierarchy.
(8) Security cannot be offered for public resale without first being registered
under the Securities Act of 1933 and related rules ("restricted security").
Acquisition date represents the day on which an enforceable right to acquire
such security is obtained and is presented along with related cost in the
security description. The fund has registration rights for certain restricted
securities. Any costs related to such registration are borne by the issuer. The
aggregate value of restricted securities (excluding 144A holdings) at period-
end amounts to $25,766 and represents 0.1% of net assets.
(9) Security was purchased pursuant to Rule 144A under the Securities Act of
1933 and may be resold in transactions exempt from registration only to
qualified institutional buyers -- total value of such securities at period-end
amounts to $2,370,293 and represents 7.2% of net assets.

 

T. ROWE PRICE CAPITAL APPRECIATION FUND

(10) Bank loan positions may involve multiple underlying tranches. In those
instances, the position presented reflects the aggregate of those respective
underlying tranches and the rate presented reflects their weighted average
rate.
(11) SEC 30-day yield
(12) Seven-day yield

3M USD LIBOR Three month USD LIBOR (London interbank offered rate)
EC Escrow CUSIP; represents a beneficial interest in a residual pool of bankruptcy
assets; the amount and timing of future distributions, if any, is uncertain; when
presented, interest rate and maturity date are those of the original security.
FRN Floating Rate Note
OTC Over-the-counter
PTT Pass-Through Trust
REIT A domestic Real Estate Investment Trust whose distributions pass-through
with original tax character to the shareholder
STEP Stepped coupon bond for which the coupon rate of interest adjusts on
specified date(s); rate shown is effective rate at period-end.
VR Variable Rate; rate shown is effective rate at period-end. The rates for certain
variable rate securities are not based on a published reference rate and
spread but are determined by the issuer or agent and based on current market
conditions.

 

T. ROWE PRICE CAPITAL APPRECIATION FUND

(Amounts in 000s, except for contracts)         
 
OPTIONS WRITTEN (0.6)%         
OTC Options Written (0.6)%         
Counterparty    Description  Contracts Notional Amount    Value 
JPMorgan    Abbott Laboratories, Call, 1/17/20 @         
Chase  $ 85.00  9,540  (76,263)  $ (3,673) 
    Alphabet, Class C, Call, 1/17/20 @         
Citigroup  $ 1,300.00  1,535  (180,103)    (7,798) 
    Alphabet, Class C, Call, 1/17/20 @         
Citigroup  $ 1,340.00  369  (43,295)    (1,410) 
    Alphabet, Class C, Call, 1/17/20 @         
Citigroup  $ 1,365.00  1,395  (163,677)    (4,345) 
    Alphabet, Class C, Call, 1/17/20 @         
Citigroup  $ 1,400.00  369  (43,295)    (921) 
    Alphabet, Class C, Call, 1/17/20 @         
Citigroup  $ 1,500.00  368  (43,178)    (409) 
    Amazon.com, Call, 1/17/20 @         
Citigroup  $ 1,800.00  286  (50,929)    (5,427) 
    Amazon.com, Call, 1/17/20 @         
Citigroup  $ 2,000.00  95  (16,917)    (1,041) 
    Amazon.com, Call, 1/17/20 @         
Citigroup  $ 2,025.00  95  (16,917)    (948) 
    Amazon.com, Call, 1/17/20 @         
Citigroup  $ 2,100.00  95  (16,917)    (750) 
    Amazon.com, Call, 1/17/20 @         
Citigroup  $ 2,300.00  432  (76,928)    (1,800) 
    Amazon.com, Call, 1/17/20 @         
Credit Suisse  $ 2,500.00  188  (33,478)    (408) 
    Amazon.com, Call, 1/17/20 @         
Credit Suisse  $ 2,600.00  188  (33,478)    (271) 
    Amazon.com, Call, 1/17/20 @         
Credit Suisse  $ 2,700.00  188  (33,478)    (197) 
    American Electric Power, Call,         
Citigroup    1/17/20@ $82.50  2,812  (23,551)    (1,504) 
    American Electric Power, Call,         
Citigroup    1/17/20@ $85.00  12,828  (107,435)    (5,195) 
    American Tower, Call, 1/17/20 @         
Credit Suisse  $ 170.00  2,223  (43,806)    (7,069) 

 

 

T. ROWE PRICE CAPITAL APPRECIATION FUND

(Amounts in 000s, except for contracts)        
 
Counterparty    Description   Contracts Notional Amount  Value 
    American Tower, Call, 1/17/20 @        
Citigroup  $ 175.00   2,039  (40,181)  (5,730) 
    American Tower, Call, 1/17/20 @        
Credit Suisse  $ 175.00   4,767  (93,939)  (13,395) 
    American Tower, Call, 1/17/20 @        
Citigroup  $ 180.00   2,791  (54,999)  (6,517) 
    American Tower, Call, 1/17/20 @        
Citigroup  $ 200.00   850  (16,750)  (918) 
Citigroup    Anthem, Call, 1/17/20 @ $300.00   1,094  (31,396)  (2,111) 
Citigroup    Anthem, Call, 1/17/20 @ $310.00   1,094  (31,396)  (1,660) 
Citigroup    Anthem, Call, 1/17/20 @ $330.00   2,253  (64,657)  (1,994) 
    Booking Holdings, Call, 1/17/20 @        
Citigroup  $ 2,075.00   655  (114,292)  (3,652) 
    Booking Holdings, Call, 1/17/20 @        
Citigroup  $ 2,100.00   128  (22,335)  (641) 
    Booking Holdings, Call, 1/17/20 @        
Citigroup  $ 2,125.00   128  (22,335)  (568) 
    Enterprise Products Partners, Call,        
Citigroup    1/17/20 @ $30.00  17,493  (50,905)  (1,793) 
JPMorgan    Facebook, Class A, Call, 1/17/20 @        
Chase  $ 220.00   7,720  (128,685)  (2,490) 
Citigroup    Intuit, Call, 1/17/20 @ $260.00   3,534  (92,382)  (8,976) 
Goldman             
Sachs    Intuit, Call, 1/17/20 @ $260.00   342  (8,940)  (869) 
Citigroup    Intuit, Call, 1/17/20 @ $270.00   1,385  (36,205)  (2,812) 
Goldman             
Sachs    Intuit, Call, 1/17/20 @ $270.00   343  (8,966)  (696) 
Citigroup    McDonald's, Call, 1/17/20 @ $195.00   2,019  (38,341)  (1,928) 
Credit Suisse    McDonald's, Call, 1/17/20 @ $195.00   851  (16,160)  (813) 
Citigroup    McDonald's, Call, 1/17/20 @ $200.00   2,019  (38,341)  (1,504) 
Credit Suisse    McDonald's, Call, 1/17/20 @ $200.00   851  (16,160)  (634) 
Citigroup    Microsoft, Call, 1/17/20 @ $120.00   4,323  (50,985)  (3,815) 
Citigroup    Microsoft, Call, 1/17/20 @ $125.00   7,545  (88,986)  (4,961) 
Credit Suisse    Microsoft, Call, 1/17/20 @ $125.00   9,328  (110,014)  (6,133) 

 

 

T. ROWE PRICE CAPITAL APPRECIATION FUND

(Amounts in 000s, except for contracts)        
 
Counterparty    Description   Contracts Notional Amount  Value 
Citigroup    Microsoft, Call, 1/17/20 @ $130.00   7,545  (88,986)  (3,584) 
Credit Suisse    Microsoft, Call, 1/17/20 @ $130.00   2,153  (25,392)  (1,023) 
Royal Bank of             
Canada    Microsoft, Call, 1/17/20 @ $130.00   7,110  (83,855)  (3,377) 
Citigroup    Microsoft, Call, 1/17/20 @ $135.00   3,222  (38,000)  (1,096) 
    NextEra Energy, Call, 1/17/20 @        
Credit Suisse  $ 195.00   1,509  (29,172)  (1,539) 
    NextEra Energy, Call, 1/17/20 @        
Credit Suisse  $ 200.00   9,675  (187,037)  (7,498) 
Citigroup    S&P Global, Call, 1/17/20 @ $220.00   1,610  (33,899)  (1,674) 
Citigroup    S&P Global, Call, 1/17/20 @ $230.00   1,610  (33,899)  (1,055) 
JPMorgan    Texas Instruments, Call, 1/17/20 @        
Chase  $ 120.00   3,180  (33,730)  (1,240) 
Royal Bank of Texas Instruments, Call, 1/17/20 @        
Canada  $ 125.00   14,788  (156,856)  (4,059) 
Goldman    Texas Instruments, Call, 1/17/20 @        
Sachs  $ 130.00   637  (6,757)  (112) 
    Thermo Fisher Scientific, Call,        
Citigroup    1/17/20 @ $300.00  1,865  (51,049)  (2,089) 
    UnitedHealth Group, Call, 1/17/20 @        
Citigroup  $ 270.00   1,301  (32,169)  (1,480) 
Goldman    UnitedHealth Group, Call, 1/17/20 @        
Sachs  $ 270.00   1,995  (49,328)  (2,269) 
    UnitedHealth Group, Call, 1/17/20 @        
Citigroup  $ 280.00   1,302  (32,193)  (1,074) 
    UnitedHealth Group, Call, 1/17/20 @        
Citigroup  $ 290.00   1,426  (35,259)  (827) 
Goldman    UnitedHealth Group, Call, 1/17/20 @        
Sachs  $ 290.00   732  (18,099)  (425) 
    UnitedHealth Group, Call, 1/17/20 @        
Citigroup  $ 300.00   2,160  (53,408)  (859) 
Goldman    UnitedHealth Group, Call, 1/17/20 @        
Sachs  $ 310.00   159  (3,931)  (43) 
JPMorgan    UnitedHealth Group, Call, 1/17/20 @        
Chase  $ 310.00   5,610  (138,713)  (1,526) 
Credit Suisse    Visa, Class A, Call, 1/17/20 @ $150.00   2,573  (40,188)  (4,213) 

 

 

T. ROWE PRICE CAPITAL APPRECIATION FUND

(Amounts in 000s, except for contracts)       
 
Counterparty  Description  Contracts Notional Amount  Value 
Credit Suisse  Visa, Class A, Call, 1/17/20 @ $155.00  2,573  (40,188)  (3,429) 
Credit Suisse  Visa, Class A, Call, 1/17/20 @ $160.00  4,165  (65,053)  (4,394) 
Credit Suisse  Visa, Class A, Call, 1/17/20 @ $165.00  3,628  (56,666)  (2,948) 
Credit Suisse  Visa, Class A, Call, 1/17/20 @ $170.00  3,682  (57,509)  (2,264) 
Goldman         
Sachs  Visa, Class A, Call, 1/17/20 @ $170.00  3,722  (58,134)  (2,289) 
Credit Suisse  Visa, Class A, Call, 1/17/20 @ $175.00  3,682  (57,509)  (1,657) 
Goldman         
Sachs  Visa, Class A, Call, 1/17/20 @ $175.00  3,723  (58,150)  (1,675) 
Citigroup  Yum! Brands, Call, 1/17/20 @ $100.00  4,034  (40,263)  (2,794) 
Bank of         
America  Yum! Brands, Call, 1/17/20 @ $105.00  3,648  (36,411)  (1,696) 
Citigroup  Yum! Brands, Call, 1/17/20 @ $105.00  12,802  (127,777)  (5,953) 
Total OTC Options Written (Premiums $(156,683))      (187,937) 
Total Options Written (Premiums $(156,683))      (187,937) 

 

 

T. ROWE PRICE CAPITAL APPRECIATION FUND

Affiliated Companies
($000s)

The fund may invest in certain securities that are considered affiliated companies. As defined
by the 1940 Act, an affiliated company is one in which the fund owns 5% or more of the
outstanding voting securities, or a company that is under common ownership or control. The
following securities were considered affiliated companies for all or some portion of the three
months ended March 31, 2019. Net realized gain (loss), investment income, change in net
unrealized gain/loss, and purchase and sales cost reflect all activity for the period then ended.

        Change in Net     
    Net Realized Gain    Unrealized    Investment 
Affiliate    (Loss)    Gain/Loss    Income 
Alabama Power  $  —  $  1,545  $  244 
CMS Energy, 3/1/79, Preferred             
Stock    —    3,788    — 
CMS Energy, 10/15/78,             
Preferred Stock    —    8,018    1,395 
DTE Energy, Common Stock    36,912    (16,511)    727 
DTE Energy, 3.70%, Corporate             
Bond    —    467    145 
DTE Energy, 3.80%, Corporate             
Bond    —    1,975    607 
DTE Energy, Preferred Stock    —    7,142    840 
Duke Energy, Common Stock    15,474    (9,605)    1,731 
Duke Energy, Preferred Stock    —    4,259    886 
NiSource, Common Stock    —    54,749    3,308 
NiSource, 3.49%, Corporate             
Bond    —    2,727    618 
NiSource, 4.375%, Corporate             
Bond    —    3,024    423 
Nisource, 5.65%, Corporate             
Bond    —    2,447    626 
Nisource, Preferred Stock    —    3,340    1,163 
PerkinElmer    —    210,959    829 
SCE Trust III    —    881    417 
SCE Trust IV    —    4,680    898 
SCE Trust V    —    950    213 
U.S. Bancorp, 5.30%, Corporate             
Bond    —    1,688    295 

 

 

T. ROWE PRICE CAPITAL APPRECIATION FUND

Affiliated Companies (continued)                 
($000s)                     
 
              Change in Net     
    Net Realized Gain     Unrealized    Investment 
Affiliate      (Loss)     Gain/Loss    Income 
U.S. Bancorp, Series F,                     
Preferred Stock          —     140    189 
U.S. Bancorp, Series K,                     
Preferred Stock          —     864    413 
T. Rowe Price Institutional                   
Floating Rate Fund          —     1,887    1,065 
T. Rowe Price Government                   
Reserve Fund          —     —    13,420 
Totals    $  52,386 #  $  289,414  $  30,452+ 
 
 
Supplementary Investment Schedule                 
    Value      Purchase  Sales    Value 
Affiliate    12/31/18      Cost  Cost    3/31/19 
Alabama Power  $  18,517 $      — $  — $    20,062 
CMS Energy, 3/1/79,                     
Preferred Stock    —      126,250  —    130,038 
CMS Energy, 10/15/78,                     
Preferred Stock    91,428          —  —    99,446 
DTE Energy, Common                     
Stock    182,956          —  166,445    — 
DTE Energy, 3.70%,                     
Corporate Bond    15,771          —  —    16,238 
DTE Energy, 3.80%,                     
Corporate Bond    63,066          —  —    65,041 
DTE Energy, Preferred                     
Stock    56,960          —  —    64,102 
Duke Energy, Common                     
Stock    161,027          —  151,422    — 
Duke Energy, Preferred                     
Stock    59,976          —  —    64,235 
NiSource, Common Stock  419,299          —  —    474,048 
NiSource, 3.49%, Corporate                   
Bond    68,269          —  —    70,996 
NiSource, 4.375%,                     
Corporate Bond    36,294          —  —    39,318 
Nisource, 5.65%, Corporate                   
Bond    41,047          —  —    43,494 
Nisource, Preferred Stock  63,852          —  —    67,192 

 

 

T. ROWE PRICE CAPITAL APPRECIATION FUND

Affiliated Companies (continued)         
($000s)         
 
Supplementary Investment Schedule       
  Value  Purchase  Sales  Value 
Affiliate  12/31/18  Cost  Cost  3/31/19 
PerkinElmer  930,423  —  —  1,141,382 
SCE Trust III  26,844  —  —  27,725 
SCE Trust IV  54,288  —  —  58,968 
SCE Trust V  13,050  —  —  14,000 
U.S. Bancorp, 5.30%,         
Corporate Bond  21,155  —  —  22,843 
U.S. Bancorp, Series F,         
Preferred Stock  12,334  —  —  12,474 
U.S. Bancorp, Series K,         
Preferred Stock  29,628  —  —  30,492 
T. Rowe Price Institutional         
Floating Rate Fund  78,517  1,065  —  81,469 
T. Rowe Price Government         
Reserve Fund  543,200  ¤  ¤  2,579,445 
      $  5,123,008^ 

 

# Capital gain distributions from mutual funds represented $0 of the net realized gain (loss).
+ Investment income comprised $27,738 of dividend income and $2,714 of interest income.
¤ Purchase and sale information not shown for cash management funds.
^ The cost basis of investments in affiliated companies was $4,594,840.

The accompanying notes are an integral part of this Portfolio of Investments.

 

T. ROWE PRICE CAPITAL APPRECIATION FUND

Unaudited

NOTES TO PORTFOLIO OF
INVESTMENTS

T. Rowe Price Capital Appreciation Fund, Inc. (the fund) is registered under the Investment Company Act of 1940 (the
1940 Act) as an open-end management investment company and follows accounting and reporting guidance of the
Financial Accounting Standards Board Accounting Standards Codification Topic 946. The accompanying Portfolio of
Investments was prepared in accordance with accounting principles generally accepted in the United States of America
(GAAP). For additional information on the fund’s significant accounting policies and investment related disclosures,
please refer to the fund’s most recent semiannual or annual shareholder report and its prospectus.

VALUATION

The fund’s financial instruments are valued at the close of the New York Stock Exchange (NYSE), normally 4 p.m. ET,
each day the NYSE is open for business.

Fair Value
The fund’s financial instruments are reported at fair value, which GAAP defines as the price that would be received to
sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date. The T. Rowe Price Valuation Committee (the Valuation Committee) is an internal committee that has been
delegated certain responsibilities by the fund’s Board of Directors (the Board) to ensure that financial instruments are
appropriately priced at fair value in accordance with GAAP and the 1940 Act. Subject to oversight by the Board, the
Valuation Committee develops and oversees pricing-related policies and procedures and approves all fair value
determinations. Specifically, the Valuation Committee establishes procedures to value securities; determines pricing
techniques, sources, and persons eligible to effect fair value pricing actions; oversees the selection, services, and
performance of pricing vendors; oversees valuation-related business continuity practices; and provides guidance on
internal controls and valuation-related matters. The Valuation Committee reports to the Board and has representation
from legal, portfolio management and trading, operations, risk management, and the fund’s treasurer.

Various valuation techniques and inputs are used to determine the fair value of financial instruments. GAAP
establishes the following fair value hierarchy that categorizes the inputs used to measure fair value:

Level 1 - quoted prices (unadjusted) in active markets for identical financial instruments that the fund can access at
the reporting date

Level 2 - inputs other than Level 1 quoted prices that are observable, either directly or indirectly (including, but not
limited to, quoted prices for similar financial instruments in active markets, quoted prices for identical or
similar financial instruments in inactive markets, interest rates and yield curves, implied volatilities, and
credit spreads)

Level 3 - unobservable inputs

Observable inputs are developed using market data, such as publicly available information about actual events or
transactions, and reflect the assumptions that market participants would use to price the financial instrument.
Unobservable inputs are those for which market data are not available and are developed using the best information
available about the assumptions that market participants would use to price the financial instrument. GAAP requires
valuation techniques to maximize the use of relevant observable inputs and minimize the use of unobservable inputs.
When multiple inputs are used to derive fair value, the financial instrument is assigned to the level within the fair value
hierarchy based on the lowest-level input that is significant to the fair value of the financial instrument. Input levels are
not necessarily an indication of the risk or liquidity associated with financial instruments at that level but rather the
degree of judgment used in determining those values.

 

T. ROWE PRICE CAPITAL APPRECIATION FUND

Valuation Techniques
Equity securities listed or regularly traded on a securities exchange or in the over-the-counter (OTC) market are valued
at the last quoted sale price or, for certain markets, the official closing price at the time the valuations are made. OTC
Bulletin Board securities are valued at the mean of the closing bid and asked prices. A security that is listed or traded on
more than one exchange is valued at the quotation on the exchange determined to be the primary market for such
security. Listed securities not traded on a particular day are valued at the mean of the closing bid and asked prices.
Actively traded equity securities listed on a domestic exchange generally are categorized in Level 1 of the fair value
hierarchy. OTC Bulletin Board securities, certain preferred securities, and equity securities traded in inactive markets
generally are categorized in Level 2 of the fair value hierarchy.

Debt securities generally are traded in the OTC market and are valued at prices furnished by dealers who make markets
in such securities or by an independent pricing service, which considers the yield or price of bonds of comparable
quality, coupon, maturity, and type, as well as prices quoted by dealers who make markets in such securities. Generally,
debt securities are categorized in Level 2 of the fair value hierarchy; however, to the extent the valuations include
significant unobservable inputs, the securities would be categorized in Level 3.

Investments in mutual funds are valued at the mutual fund’s closing NAV per share on the day of valuation and are
categorized in Level 1 of the fair value hierarchy. Listed options, and OTC options with a listed equivalent, are valued at
the mean of the closing bid and asked prices and generally are categorized in Level 2 of the fair value hierarchy.

Thinly traded financial instruments and those for which the above valuation procedures are inappropriate or are
deemed not to reflect fair value are stated at fair value as determined in good faith by the Valuation Committee. The
objective of any fair value pricing determination is to arrive at a price that could reasonably be expected from a current
sale. Financial instruments fair valued by the Valuation Committee are primarily private placements, restricted
securities, warrants, rights, and other securities that are not publicly traded.

Subject to oversight by the Board, the Valuation Committee regularly makes good faith judgments to establish and
adjust the fair valuations of certain securities as events occur and circumstances warrant. For instance, in determining
the fair value of an equity investment with limited market activity, such as a private placement or a thinly traded public
company stock, the Valuation Committee considers a variety of factors, which may include, but are not limited to, the
issuer’s business prospects, its financial standing and performance, recent investment transactions in the issuer, new
rounds of financing, negotiated transactions of significant size between other investors in the company, relevant market
valuations of peer companies, strategic events affecting the company, market liquidity for the issuer, and general
economic conditions and events. In consultation with the investment and pricing teams, the Valuation Committee will
determine an appropriate valuation technique based on available information, which may include both observable and
unobservable inputs. The Valuation Committee typically will afford greatest weight to actual prices in arm’s length
transactions, to the extent they represent orderly transactions between market participants; transaction information can
be reliably obtained; and prices are deemed representative of fair value. However, the Valuation Committee may also
consider other valuation methods such as market-based valuation multiples; a discount or premium from market value
of a similar, freely traded security of the same issuer; or some combination. Fair value determinations are reviewed on a
regular basis and updated as information becomes available, including actual purchase and sale transactions of the
issue. Because any fair value determination involves a significant amount of judgment, there is a degree of subjectivity
inherent in such pricing decisions, and fair value prices determined by the Valuation Committee could differ from
those of other market participants. Depending on the relative significance of unobservable inputs, including the
valuation technique(s) used, fair valued securities may be categorized in Level 2 or 3 of the fair value hierarchy.

 

T. ROWE PRICE CAPITAL APPRECIATION FUND

Valuation Inputs
The following table summarizes the fund’s financial instruments, based on the inputs used to determine their fair values
on March 31, 2019 (for further detail by category, please refer to the accompanying Portfolio of Investments):

($000s)    Level 1  Level 2  Level 3  Total Value 
Assets           
Common Stocks  $  20,167,545$  — $  — $  20,167,545 
Preferred Stocks    703,031  —  —  703,031 
Convertible Preferred Stocks    —  839,055  25,766  864,821 
Corporate Bonds    —  6,127,665  —  6,127,665 
Fixed Income Securities(1)    —  1,183,982  —  1,183,982 
Bank Loans    —  1,656,858  7,050  1,663,908 
Bond Mutual Funds    81,469  —  —  81,469 
Short-Term Investments    2,579,445  —  —  2,579,445 
Options Purchased    —  8,552  —  8,552 
Total  $  23,531,490$  9,816,112$  32,816$  33,380,418 
Liabilities           
Options Written  $  — $  187,937$  — $  187,937 

 

1 Includes Asset-Backed Securities, U.S. Government Agency Obligations (Excluding Mortgage-Backed).

Following is a reconciliation of the fund’s Level 3 holdings for the period ended March 31, 2019. Gain (loss) reflects
both realized and change in unrealized gain/loss on Level 3 holdings during the period, if any. The change in unrealized
gain/loss on Level 3 instruments held at March 31, 2019, totaled $8,000 for the period ended March 31, 2019.

($ 000 s)                     
        Beginning                Ending 
        Balance    Gain (Loss)    Total        Balance 
        1/1/19    During Period    Purchases    Total Sales    3/31/19 
  Investment in Securities                      
  Convertible Preferred                      
  Stocks   $  –  $  –  $  25,766  $  –  $  25,766 
  Corporate Bonds     –    –    –    –    – 
  Bank Loans     –    9    7,139    (98)    7,050 
 
  Total   $  –  $  9  $  32,905  $  (98)  $  32,816