NPORT-EX 2 nportpartf93023.htm PART F
Longleaf Partners Fund
Portfolio of Investments
September 30, 2023
(Unaudited)
  Shares   Value   % of Net Assets
Common Stocks          
Aerospace & Defense          
RTX Corporation 635,612   $   45,744,996   3.5%
Air Freight & Logistics          
FedEx Corporation 313,753      83,119,445   6.3
Building Products          
Fortune Brands Innovations, Inc. 852,545      52,994,197   4.0
Capital Markets          
Affiliated Managers Group, Inc. 492,252      64,160,126   4.8
Entertainment          
Live Nation Entertainment, Inc.* 667,329      55,415,000   4.2
Warner Bros., Discovery, Inc.* 6,463,736      70,196,173   5.3
Warner Music Group Corp. 2,176,653      68,346,904   5.1
      193,958,077   14.6
Financial Services          
Fidelity National Information Services, Inc. 931,243      51,469,800   3.9
Fiserv, Inc.* 328,429      37,099,340   2.8
      88,569,140   6.7
Food Products          
Kellogg Company 994,382      59,175,673   4.5
Hotels, Restaurants & Leisure          
Hyatt Hotels Corporation - Class A 477,283      50,630,180   3.8
MGM Resorts International 1,409,430      51,810,647   3.9
      102,440,827   7.7
Insurance          
Fairfax Financial Holdings Limited (Canada) 82,939      67,704,970   5.1
Interactive Media & Services          
IAC, Inc.* 1,240,084      62,487,833   4.7
Leisure Products          
Mattel, Inc.* 3,772,498      83,108,131   6.3
Life Sciences Tools & Services          
Bio-Rad Laboratories, Inc.* 171,987      61,648,740   4.7
Machinery          
CNH Industrial N.V. (Italian Exchange) (Netherlands) 3,306,184      40,337,643   3.1
CNH Industrial N.V. (U.S. Exchange) (Netherlands) 806,177       9,754,742   0.7
      50,092,385   3.8
Media          
Liberty Broadband Corporation - Series C* 761,905      69,577,165   5.3
Oil, Gas & Consumable Fuels          
CNX Resources Corporation* 3,706,366      83,689,744   6.3
Textiles, Apparel & Luxury Goods          
PVH Corp. 765,955      58,603,217   4.4
Total Common Stocks (Cost $1,116,982,641)     1,227,074,666   92.7
0

continued
  Principal Amount   Value   % of Net Assets
Short-Term Obligations          
Repurchase agreement with State Street Bank, 4.46%, dated 09/29/23, due 10/02/23, Repurchase price $94,368,060 (Collateral: $96,219,720 U.S. Treasury Bonds, 3.75% - 4.125% due 5/31/30 to 8/31/30, Par $99,471,700) (Cost $94,333,000) 94,333,000   $   94,333,000   7.1%
Total Investments (Cost $1,211,315,641)     1,321,407,666   99.8
Other Assets (Liabilities), Net     2,309,396   0.2
Net Assets     $1,323,717,062   100.0%
    

* Non-income producing security.
Note: Companies headquartered outside the U.S. represent 8.9% of net assets.
See Notes to Portfolio of Investments.
1

Longleaf Partners Small-Cap Fund
Portfolio of Investments
September 30, 2023
(Unaudited)
  Shares   Value   % of Net Assets
Common Stocks          
Beverages          
The Boston Beer Company, Inc. Class - A* 106,204   $   41,369,644   4.9%
Building Products          
Masonite International Corporation* 328,768      30,647,753   3.6
Capital Markets          
Lazard Ltd - Class A(a) 694,348      21,531,732   2.6
Construction Materials          
Knife River Corporation* 762,611      37,238,295   4.4
Consumer Staples Distribution & Retail          
Ingles Markets, Incorporated - Class A 429,537      32,357,022   3.9
Diversified Consumer Services          
Graham Holdings Company - Class B 67,379      39,281,957   4.7
Diversified REITs          
Empire State Realty Trust, Inc.(b) 4,906,264      39,446,363   4.7
Park Hotels & Resorts Inc. 1,817,470      22,391,230   2.7
      61,837,593   7.4
Entertainment          
Atlanta Braves Holdings, Inc. - Class C (Formerly Liberty Braves Group)* 982,236      35,095,292   4.2
Madison Square Garden Sports Corp. - Class A* 57,633      10,160,698   1.2
      45,255,990   5.4
Food Products          
Gruma, S.A.B. DE C.V. (Mexico) 3,048,584      52,073,016   6.2
Westrock Coffee Company*(b) 5,360,476      47,493,817   5.6
      99,566,833   11.8
Hotels, Restaurants & Leisure          
Hyatt Hotels Corporation - Class A 296,203      31,421,214   3.7
Insurance          
Oscar Health, Inc. - Class A*(b) 7,399,503      41,215,232   4.9
White Mountains Insurance Group, Ltd. 27,961      41,820,988   5.0
      83,036,220   9.9
Leisure Products          
Mattel, Inc.* 2,521,419      55,546,861   6.6
Office REITs          
Douglas Emmett, Inc. 1,616,862      20,631,159   2.5
Oil, Gas & Consumable Fuels          
CNX Resources Corporation* 2,359,339      53,273,875   6.3
Real Estate Management & Development          
Anywhere Real Estate Inc.*(b) 5,710,068      36,715,737   4.4
Total Common Stocks (Cost $546,126,869)     689,711,885   82.1
Preferred Stock          
Technology Hardware, Storage & Peripherals          
Eastman Kodak Company Convertible Preferred Stock - Series B 4.00%(b)(c)(d) (Cost $95,452,160) 932,150      76,063,440   9.1
  Principal Amount        
Corporate Bonds          
Diversified Telecommunication Services          
Lumen Technologies, Inc. 4.50% 144A Senior Notes due 1/15/2029(e) (Cost $13,326,419) 30,742,000       9,571,214   1.1
2

continued
  Principal Amount   Value   % of Net Assets
Short-Term Obligations          
Repurchase agreement with State Street Bank, 4.46%, dated 09/29/23, due 10/02/23, Repurchase price $56,743,082 (Collateral: $57,856,505 U.S. Treasury Bond, 3.75% due 05/31/30, Par $60,187,900) (Cost $56,722,000) 56,722,000   $   56,722,000   6.7%
Total Investments (Cost $711,627,448)     832,068,539   99.0
Other Assets (Liabilities), Net     8,246,373   1.0
Net Assets     $840,314,912   100.0%
    

* Non-income producing security.
(a) Master Limited Partnership
(b) Affiliated issuer during the period. See Note 3.
(c) Investment categorized as Level 3 in fair value hierarchy. See Note 4.
(d) These shares were acquired directly from the issuer in a private placement on February 26, 2021 with a total cost at September 30, 2023 of $95,452,160. They are considered restricted securities under the Securities Act of 1933 (the "33 Act").  These shares may be sold only if registered under the 33 Act or an exemption is available.  The issuer has filed with the SEC a registration statement on Form S-3 providing for the potential resale on an ongoing basis under 33 Act Rule 415 of Common Stock issuable upon conversion of the Series B Preferred Stock, subject to certain terms of a Registration Rights Agreement with the issuer. Due to the lack of an active trading market, all or a portion of this position may be illiquid. Judgment plays a greater role in valuing illiquid securities than those for which a more active market exists, and are valued by Southeastern Asset Management as designee under procedures adopted by the Board of Trustees (See Note 2).
(e) Security is exempt from registration under Rule 144A of the Securities Act of 1933. The security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. 
Note: Companies headquartered outside the U.S. represent 6.2% of net assets.
See Notes to Portfolio of Investments.
3

Longleaf Partners International Fund
Portfolio of Investments
September 30, 2023
(Unaudited)
  Shares   Value   % of Net Assets
Common Stocks          
Banks          
HDFC Bank Ltd. (Formerly Housing Development Finance Corporation Ltd.) (India) 1,182,319   $   21,731,049   3.1%
Beverages          
Becle, S.A.B. de C.V. (Mexico) 7,378,752      17,621,785   2.5
Broadline Retail          
Alibaba Group Holding Limited* (China) 2,878,600      31,465,935   4.5
Prosus N.V. (Netherlands) 913,904      26,977,002   3.8
      58,442,937   8.3
Chemicals          
Kansai Paint Co., LTD. (Japan) 1,179,600      16,872,290   2.4
LANXESS AG (Germany) 757,573      19,262,704   2.8
      36,134,994   5.2
Entertainment          
Juventus Football Club S.p.A.* (Italy) 60,638,271      19,297,054   2.8
Financial Services          
EXOR N.V. (Netherlands) 420,900      37,353,008   5.3
Food Products          
Glanbia plc (Ireland) 2,967,092      48,967,915   7.0
Gruma, S.A.B. DE C.V. (Mexico) 2,248,418      38,405,340   5.5
Premier Foods plc (United Kingdom) 22,538,242      32,998,691   4.7
WH Group Limited (Hong Kong) 53,566,522      28,113,882   4.0
      148,485,828   21.2
Hotels, Restaurants & Leisure          
Accor S.A. (France) 998,075      33,703,560   4.8
Delivery Hero SE* (Germany) 619,947      17,808,277   2.5
Domino's Pizza Group PLC (United Kingdom) 6,907,395      31,721,910   4.5
Jollibee Foods Corporation (Philippines) 6,818,370      27,646,601   4.0
Melco International Development Limited* (Hong Kong) 23,653,700      18,968,993   2.7
      129,849,341   18.5
Household Durables          
Man Wah Holdings Limited (Hong Kong) 24,853,700      17,455,781   2.5
Insurance          
Fairfax Financial Holdings Limited (Canada) 44,228      36,104,310   5.1
Interactive Media & Services          
Naver Corporation (South Korea) 123,070      18,377,505   2.6
Life Sciences Tools & Services          
Eurofins Scientific (France) 295,596      16,719,760   2.4
Professional Services          
Applus Services, S.A. (Spain) 1,710,445      17,902,843   2.6
Textiles, Apparel & Luxury Goods          
Compagnie Financiere Richemont SA (Switzerland) 245,887      30,086,136   4.3
Kering (France) 40,484      18,486,058   2.6
      48,572,194   6.9
Wireless Telecommunication Services          
Millicom International Cellular S.A.* (Sweden) 1,248,262      19,394,216   2.8
Total Common Stocks (Cost $570,905,756)     643,442,605   91.8
4

continued
  Shares   Value   % of Net Assets
Warrants          
Textiles, Apparel & Luxury Goods          
Compagnie Financiere Richemont SA Warrants, exercise price $73.19, 11/22/23* (Switzerland) (Cost $0) 1,311,288   $      973,850   0.1%
  Principal Amount        
Short-Term Obligations          
Repurchase agreement with State Street Bank, 4.46%, dated 09/29/23, due 10/02/23, Repurchase price $57,565,387 (Collateral: $58,694,920 U.S. Treasury Bond, 3.75% due 05/31/30, Par $61,060,100) (Cost $57,544,000) 57,544,000      57,544,000   8.2
Total Investments (Cost $628,449,756)     701,960,455   100.1
Other Assets (Liabilities), Net     (870,088)   (0.1)
Net Assets     $701,090,367   100.0%
    

* Non-income producing security.
    
Country Weightings  
  Net Assets
France 9.8%
United Kingdom 9.2
Hong Kong 9.2
Netherlands 9.1
Mexico 8.0
Ireland 7.0
Germany 5.3
Canada 5.1
China 4.5
Switzerland 4.4
Philippines 4.0
India 3.1
Sweden 2.8
Italy 2.8
South Korea 2.6
Spain 2.6
Japan 2.4
Cash & Other 8.1
  100.0%
See Notes to Portfolio of Investments.
5

Longleaf Partners Global Fund
Portfolio of Investments
September 30, 2023
(Unaudited)
  Shares   Value   % of Net Assets
Common Stocks          
Air Freight & Logistics          
FedEx Corporation (United States) 57,730   $   15,293,832   6.3%
Broadline Retail          
Prosus N.V. (Netherlands) 406,140      11,988,611   5.0
Building Products          
Fortune Brands Innovations, Inc. (United States) 77,237       4,801,052   2.0
Capital Markets          
Affiliated Managers Group, Inc. (United States) 89,245      11,632,193   4.8
Entertainment          
Live Nation Entertainment, Inc.* (United States) 127,278      10,569,165   4.4
Warner Bros., Discovery, Inc.* (United States) 1,181,879      12,835,206   5.3
Warner Music Group Corp. (United States) 210,320       6,604,048   2.7
      30,008,419   12.4
Financial Services          
EXOR N.V. (Netherlands) 173,658      15,411,377   6.4
Fidelity National Information Services, Inc. (United States) 129,181       7,139,834   2.9
      22,551,211   9.3
Food Products          
Glanbia plc (Ireland) 599,564       9,895,008   4.1
Kellogg Company (United States) 180,997      10,771,131   4.5
      20,666,139   8.6
Hotels, Restaurants & Leisure          
Accor S.A. (France) 135,139       4,563,450   1.9
Delivery Hero SE* (Germany) 210,403       6,043,928   2.5
Hyatt Hotels Corporation - Class A (United States) 43,707       4,636,438   1.9
Melco International Development Limited* (Hong Kong) 3,084,644       2,473,718   1.0
MGM Resorts International (United States) 259,780       9,549,513   4.0
      27,267,047   11.3
Insurance          
Fairfax Financial Holdings Limited (Canada) 11,380       9,289,750   3.9
Interactive Media & Services          
IAC, Inc.* (United States) 226,746      11,425,731   4.7
Leisure Products          
Mattel, Inc.* (United States) 505,258      11,130,834   4.6
Life Sciences Tools & Services          
Bio-Rad Laboratories, Inc.* (United States) 31,869      11,423,443   4.7
Eurofins Scientific (France) 106,801       6,040,972   2.5
      17,464,415   7.2
Oil, Gas & Consumable Fuels          
CNX Resources Corporation* (United States) 678,690      15,324,820   6.4
Textiles, Apparel & Luxury Goods          
Compagnie Financiere Richemont SA (Switzerland) 49,268       6,028,312   2.5
PVH Corp. (United States) 73,276       5,606,347   2.3
      11,634,659   4.8
Wireless Telecommunication Services          
Millicom International Cellular S.A.* (Sweden) 726,580      11,288,856   4.7
Total Common Stocks (Cost $217,875,821)     231,767,569   96.0
6

continued
  Principal Amount   Value   % of Net Assets
Short-Term Obligations          
Repurchase agreement with State Street Bank, 4.46%, dated 09/29/23, due 10/02/23, Repurchase price $10,705,978 (Collateral: $10,916,122 U.S. Treasury Bond, 3.75% due 05/31/30, Par $11,356,000) (Cost $10,702,000) 10,702,000   $   10,702,000   4.4%
Total Investments (Cost $228,577,821)     242,469,569   100.4
Other Assets (Liabilities), Net     (1,012,062)   (0.4)
Net Assets     $241,457,507   100.0%
    

* Non-income producing security.
    
Country Weightings  
  Net Assets
United States 61.5%
Netherlands 11.4
Sweden 4.7
France 4.4
Ireland 4.1
Canada 3.9
Germany 2.5
Switzerland 2.5
Hong Kong 1.0
Cash & Other 4.0
  100.0%
See Notes to Portfolio of Investments.
7

Notes to Portfolios of Investments
(Unaudited)
1.    Organization
Longleaf Partners Fund, Longleaf Partners Small-Cap Fund, Longleaf Partners International Fund, and Longleaf Partners Global Fund (the “Funds”) are non-diversified and each is a series of Longleaf Partners Funds Trust, a Massachusetts business trust, which is registered as an open-end management investment company under the Investment Company Act of 1940, as amended.
2.    Significant Accounting Policies
The Funds follow the accounting and reporting guidance in FASB Accounting Standards Codification 946.
Management Estimates
The accompanying financial statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”); these principles may require the use of estimates by Fund management. Actual results could differ from those estimates.
Security Valuation
The following is a description of the valuation techniques applied to the Funds’ investments (see also Note 4. Fair Value Measurements).
Portfolio securities listed or traded on a securities exchange (U.S. or foreign), on the NASDAQ national market, or any representative quotation system providing same day publication of actual prices, are valued at the last sale price, and categorized as Level 1 of the fair value hierarchy. If there are no transactions in the security that day, securities are valued at the midpoint between the closing bid and ask prices or, if there are no such prices, the prior day’s close, and categorized as Level 2.
In the case of bonds and other fixed income securities, valuations are furnished by a pricing service which takes into account factors in addition to quoted prices (such as trading characteristics, yield, quality, coupon rate, maturity, type of issue, and other market data relating to the priced security or other similar securities) where taking such factors into account would lead to a more accurate reflection of the fair market value of such securities. Such securities are categorized as Level 2.
When market quotations are not readily available, valuations of portfolio securities are determined by Southeastern Asset Management, Inc. (“Southeastern”) in accordance with procedures adopted by and under the general supervision of the Funds' Board of Trustees. In determining fair value, Southeastern considers relevant qualitative and quantitative information including news regarding significant market or security specific events. Southeastern may also utilize a service provided by an independent third party to assist in fair valuation of certain securities. These factors are subject to change over time and are reviewed periodically. Because the utilization of fair value depends on market activity, the frequency with which fair valuation may be used cannot be predicted. Estimated values may differ from the values that would have been used had a ready market for the investment existed. Such securities are categorized as either Level 2 or 3.
Repurchase agreements are valued at cost which, combined with accrued interest, approximates market value. Short-term U.S.Government obligations purchased with a remaining maturity of more than 60 days are valued through pricing obtained through pricing services approved by the Funds’ Trustees. Obligations purchased with a remaining maturity of 60 days or less or existing positions that have less than 60 days to maturity generally are valued at amortized cost, which approximates market value. However, if amortized cost is deemed not to reflect fair value, the securities are valued at prices furnished by dealers who make markets in such securities or by an independent pricing service. Such securities are categorized as Level 2.
8

The Funds determine net asset values (“NAVs”) once a day, at the close of regular trading on the New York Stock Exchange (“Exchange”) (usually at 4:00 p.m. Eastern time) on days the Exchange is open for business. The Exchange is closed for specified national holidays and on weekends. Foreign securities are generally priced at the latest market close in the foreign market, which may be at different times or days than the close of the Exchange. If country specific (i.e. natural disaster, economic or political developments), issuer specific (i.e. earnings report, merger announcement), or U.S. markets-specific (i.e. significant movement in U.S. markets that would likely affect the value of foreign securities) events occur which could materially affect the NAV between the close of the foreign market and normal pricing at the close of the Exchange, foreign securities may be fair valued by Southeastern in accordance with procedures adopted by and under the general supervision of the Board using observable data (i.e. trading in depository receipts) or using an external pricing service approved by the Board. The pricing service uses an automated system incorporating a model based on multiple parameters, including a security’s local closing price, relevant general and sector indices, currency fluctuations, trading in depositary receipts and futures, if applicable, and/or research valuations by its staff, in determining what it believes is the fair value of the securities. Such securities are categorized as Level 2.
Security Transactions
For financial reporting purposes, the Funds record security transactions on trade date.
Federal Income Taxes
The tax basis unrealized appreciation (depreciation) and federal tax cost of investments held by each fund as of September 30, 2023 were as follows:
  Partners Fund   Small-Cap Fund   International Fund   Global Fund
Gross unrealized appreciation $230,601,417   $166,313,870   $142,317,966   $44,008,944
Gross unrealized depreciation (132,608,070)   (58,069,428)   (68,807,267)   (31,805,843)
Net unrealized appreciation $97,993,347   $108,244,442   $73,510,699   $12,203,101
Cost for federal income tax purposes $1,223,414,319   $723,824,097   $628,449,756   $230,266,468
Foreign Currency Translations
The books and records of the Funds are maintained in U.S. dollars. Securities denominated in currencies other than U.S. dollars are subject to changes in value due to fluctuations in exchange rates. Purchases and sales of securities and income and expenses are translated into U.S. dollars at the prevailing exchange rate on the respective date of each transaction. The market values of investment securities, assets and liabilities are translated into U.S. dollars daily. The Funds do not isolate the portion of net realized and unrealized gains or losses in security investments which are attributable to changes in foreign exchange rates. Accordingly, the impact of such changes is included in the realized and unrealized gains or losses on the underlying securities.
Repurchase Agreements
The Funds may engage in repurchase agreement transactions. The Fixed Income Clearing Corporation (“FICC”) sells U.S. government or agency securities to each Fund under agreements to repurchase these securities at a stated repurchase price including interest for the term of the agreement, which is usually overnight or over a weekend. Each Fund, through FICC, receives delivery of the underlying U.S. government or agency securities as collateral, whose market value is required to be at least equal to the repurchase price. If FICC becomes bankrupt, the Fund might be delayed, or may incur costs or possible losses of principal and income, in selling the collateral.
9

3.    Affiliated Issuer
Under Section 2(a)(3) of the Investment Company Act of 1940, a portfolio company is defined as “affiliated” if a fund owns five percent or more of its voting stock during all or part of the period. Affiliated companies during the period ended September 30, 2023 were as follows:
  Shares at
9/30/23
  Value at
12/31/22
  Purchases   Sales   Dividends   Net
Realized
Gain (Loss)
1/1/23
to
9/30/23
  Net
Unrealized
Appreciation
(Depreciation)
1/1/23
to
9/30/23
  Value at
9/30/23
Small-Cap Fund                              
Common Stocks                              
Anywhere Real Estate Inc.* (Real Estate Management & Development) 5,710,068   $41,579,998   $1,544,536   $6,448,409   $  $(17,469,338)   $17,508,950   $36,715,737
Empire State Realty Trust, Inc.(a)(Diversified REITs) 4,906,264   55,701,031     23,503,722   674,892   (7,601,355)   14,850,409   39,446,363
Oscar Health, Inc. - Class A*(a) (Insurance) 7,399,503   35,838,417   10,752,556   60,512,777     (11,789,261)   66,926,297   41,215,232
Westrock Coffee Company* (Food Products) 5,360,476   93,217,930   2,819,348   24,346,743     4,988,863   (29,185,581)   47,493,817
Preferred Stock                              
Eastman Kodak Company Convertible Preferred Stock - Series B 4.0%(b)(c) (Technology Hardware, Storage & Peripherals) 932,150   66,369,080       2,796,450     9,694,360   76,063,440
      $292,706,456   $15,116,440   $114,811,651   $3,471,342   $(31,871,091)   $79,794,435   $240,934,589
* Non-income producing security.
(a) Not an affiliate at the end of the period.
(b) Restricted security, see Portfolio of Investments for additional disclosures.
(c) Investment categorized as Level 3 in fair value hierarchy. See Note 4.
4.    Fair Value Measurements
FASB ASC 820 established a single definition of fair value for financial reporting, created a three-tier framework for measuring fair value based on inputs used to value the Funds’ investments, and required additional disclosure about the use of fair value measurements. The hierarchy of inputs is summarized below.
Level 1 — quoted prices in active markets for identical investments
Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
Level 3 — significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments)
Observable inputs are those based on market data obtained from sources independent of the Funds, and unobservable inputs reflect the Funds’ own assumptions based on the best information available. The input levels are not necessarily an indication of risk or liquidity associated with investing in those securities.
A summary of the inputs used in valuing the Funds’ investments at September 30, 2023 follows:
  Level 1   Level 2   Level 3   Total Value
Partners Fund              
Common Stocks $1,227,074,666   $  $—   $1,227,074,666
Short-Term Obligations   94,333,000     94,333,000
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  Level 1   Level 2   Level 3   Total Value
Partners Fund              
  $1,227,074,666   $94,333,000   $—   $1,321,407,666
    
  Level 1   Level 2   Level 3   Total Value
Small-Cap Fund              
Common Stocks $689,711,885   $  $  $689,711,885
Preferred Stock     76,063,440   76,063,440
Corporate Bonds   9,571,214     9,571,214
Short-Term Obligations   56,722,000     56,722,000
  $689,711,885   $66,293,214   $76,063,440   $832,068,539
    
  Level 1   Level 2   Level 3   Total Value
International Fund              
Common Stocks $643,442,605   $  $—   $643,442,605
Warrants 973,850       973,850
Short-Term Obligations   57,544,000     57,544,000
  $644,416,455   $57,544,000   $—   $701,960,455
    
  Level 1   Level 2   Level 3   Total Value
Global Fund              
Common Stocks $231,767,569   $  $—   $231,767,569
Short-Term Obligations   10,702,000     10,702,000
  $231,767,569   $10,702,000   $—   $242,469,569
The following table provides quantitative information related to the significant unobservable inputs used to determine the value of Level 3 assets and the sensitivity of the valuations to changes in those significant unobservable inputs. These securities were valued by a third party specialist utilizing the income approach, which includes an analysis of various factors and subjective assumptions, including the current common stock price, expected period until exercise, expected volatility of the common stock, expected dividends, risk-free rate, credit quality of the issuer, and common stock borrow cost. Because a variety of factors and inputs, both observable and unobservable, are considered in determining fair values, the significant unobservable inputs presented below do not reflect all inputs significant to the fair value determination.
Fund   Investments in
Securities
  Fair Value
(000s)
  Valuation Technique   Unobservable
Input
  Value or
Range of
Input
  Impact to Valuation
from an Increase
in Input*
Small-Cap Fund   Preferred Stock   $76,063   Binomial Lattice Pricing   Straight Debt Yield   16.25%   Decrease
                Expected Volatility   49%   Increase
* Represents the directional change in the fair value that would result in an increase from the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant increases and decreases in these unobservable inputs in insolation could result in significantly higher or lower fair value.
The following is a reconciliation of Level 3 holdings for which significant unobservable inputs were used in determining fair value as of September 30, 2023:
  Small-Cap Fund
Fair value at December 31, 2022 $66,369,080
Change in unrealized appreciation 9,694,360
Fair value at September 30, 2023 $76,063,440
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