NPORT-EX 2 2B01SCBehaviorlSmlCapValEq.htm

 

Sterling Capital Behavioral Small Cap Value Equity Fund

Schedule of Portfolio Investments

June 30, 2020 (Unaudited)

 

 

Shares      Fair Value 
COMMON STOCKS — 96.1%    
     Air Freight & Logistics — 1.0%     
 10,846   Atlas Air Worldwide Holdings, Inc.(a)  $466,703 
 7,853   Hub Group, Inc., Class A(a)   375,845 
         842,548 
     Automobiles — 0.3%     
 3,566   Winnebago Industries, Inc.   237,567 
     Banks — 17.8%     
 14,184   Ameris Bancorp   334,601 
 15,816   Associated Banc-Corp.   216,363 
 40,176   Bancorp, Inc. (The)(a)   393,725 
 16,946   Bank OZK   397,723 
 21,572   BankUnited, Inc.   436,833 
 4,914   BOK Financial Corp.   277,346 
 16,900   Cathay General Bancorp   444,470 
 10,463   Citizens Financial Group, Inc.   264,086 
 6,626   Comerica, Inc.   252,451 
 20,858   ConnectOne Bancorp, Inc.   336,231 
 23,311   Customers Bancorp, Inc.(a)   280,198 
 10,300   Eagle Bancorp, Inc.   337,325 
 7,646   East West Bancorp, Inc.   277,091 
 11,385   Enterprise Financial Services Corp.   354,301 
 9,933   First Financial Corp.   365,932 
 24,390   First Horizon National Corp.   242,924 
 26,500   First Midwest Bancorp, Inc.   353,775 
 32,725   FNB Corp.   245,437 
 7,697   Great Southern Bancorp, Inc.   310,651 
 26,687   Hilltop Holdings, Inc.   492,375 
 36,911   Hope Bancorp, Inc.   340,319 
 11,982   Independent Bank Group, Inc.   485,511 
 49,252   Investors Bancorp, Inc.   418,642 
 15,701   Midland States Bancorp, Inc.   234,730 
 33,640   Old National Bancorp   462,886 
 13,322   PacWest Bancorp   262,577 
 21,515   People’s United Financial, Inc.   248,929 
 11,585   Popular, Inc.   430,614 
 8,421   Preferred Bank   360,840 
 4,197   Prosperity Bancshares, Inc.   249,218 
 11,713   QCR Holdings, Inc.   365,211 
 22,000   Regions Financial Corp.   244,640 
 14,537   Sandy Spring Bancorp, Inc.   360,227 
 8,235   ServisFirst Bancshares, Inc.   294,484 
 2,477   Signature Bank   264,841 
 24,274   Simmons First National Corp., Class A   415,328 
 20,500   Sterling Bancorp.   240,260 
 1,143   SVB Financial Group(a)   246,351 
 11,486   Synovus Financial Corp.   235,808 
 12,922   Texas Capital Bancshares, Inc.(a)   398,902 
 70,107   Valley National Bancorp   548,237 
 9,358   Webster Financial Corp.   267,732 
 6,724   Western Alliance Bancorp   254,638 
 6,300   Wintrust Financial Corp.   274,806 
         14,519,569 
     Building Products — 2.5%     
 5,075   Advanced Drainage Systems, Inc.   250,705 
 13,045   Builders FirstSource, Inc.(a)   270,031 
 5,541   Masonite International Corp.(a)   430,979 
 5,029   Owens Corning   280,417 
 23,541   Quanex Building Products Corp.   326,749 

 

Shares      Fair Value 
COMMON STOCKS — (continued)     
     Building Products — (continued)     
 9,978   UFP Industries, Inc.  $494,011 
         2,052,892 
     Capital Markets — 1.1%     
 13,400   Franklin Resources, Inc.   280,998 
 10,188   Virtu Financial, Inc., Class A   240,437 
 24,300   Waddell & Reed Financial, Inc., Class A   376,893 
         898,328 
     Chemicals — 1.3%     
 15,712   Chemours Co. (The)   241,179 
 8,612   Minerals Technologies, Inc.   404,161 
 4,530   Stepan Co.   439,863 
         1,085,203 
     Commercial Services & Supplies — 1.4%     
 13,015   ABM Industries, Inc.   472,445 
 47,817   ADT, Inc.   381,580 
 4,117   Cimpress PLC(a)   314,292 
         1,168,317 
     Communications Equipment — 0.4%     
 10,761   EchoStar Corp., Class A(a)   300,878 
     Construction & Engineering — 3.6%     
 14,326   Arcosa, Inc.   604,557 
 6,345   Argan, Inc.   300,626 
 6,895   Dycom Industries, Inc.(a)   281,937 
 53,533   Great Lakes Dredge & Dock Corp.(a)   495,716 
 8,440   MasTec, Inc.(a)   378,703 
 6,030   Quanta Services, Inc.   236,557 
 33,119   Tutor Perini Corp.(a)   403,389 
 2,182   Valmont Industries, Inc.   247,919 
         2,949,404 
     Consumer Finance — 1.5%     
 12,361   Ally Financial, Inc.   245,119 
 10,126   Encore Capital Group, Inc.(a)   346,107 
 51,519   Navient Corp.   362,179 
 36,665   SLM Corp.   257,755 
         1,211,160 
     Containers & Packaging — 1.3%     
 5,701   Berry Global Group, Inc.(a)   252,668 
 17,519   Graphic Packaging Holding Co.   245,091 
 9,168   Greif, Inc., Class A   315,471 
 2,435   Packaging Corp. of America   243,013 
         1,056,243 
     Diversified Consumer Services — 0.3%     
 15,431   Perdoceo Education Corp.(a)   245,816 
     Diversified Financial Services — 1.3%     
 13,968   Cannae Holdings, Inc.(a)   574,085 
 16,103   Jefferies Financial Group, Inc.   250,402 
 4,800   Voya Financial, Inc.   223,920 
         1,048,407 
     Diversified Telecommunication Services — 0.3%     
 24,501   CenturyLink, Inc.   245,745 
     Electric Utilities — 2.2%     
 10,003   NRG Energy, Inc.   325,698 
 7,933   OGE Energy Corp.   240,846 

 

See accompanying Notes to the Schedule of Portfolio Investments.

1

 

Sterling Capital Behavioral Small Cap Value Equity Fund

Schedule of Portfolio Investments — (continued)  

June 30, 2020 (Unaudited)

 

 

Shares      Fair Value 
COMMON STOCKS — (continued)     
     Electric Utilities — (continued)     
 34,176   PG&E Corp.(a)  $303,141 
 21,945   Portland General Electric Co.   917,520 
         1,787,205 
     Electrical Equipment — 1.1%     
 9,080   AZZ, Inc.   311,626 
 7,033   Encore Wire Corp.   343,351 
 2,765   Regal Beloit Corp.   241,440 
         896,417 
     Electronic Equipment, Instruments & Components — 1.5%     
 3,801   Arrow Electronics, Inc.(a)   261,091 
 3,925   Jabil, Inc.   125,914 
 12,508   Sanmina Corp.(a)   313,200 
 42,380   TTM Technologies, Inc.(a)   502,627 
         1,202,832 
     Energy Equipment & Services — 0.4%     
 82,673   Patterson-UTI Energy, Inc.   286,875 
     Entertainment — 0.3%     
 32,726   Lions Gate Entertainment Corp., Class A(a)   242,500 
     Equity Real Estate Investment Trusts (REITS) — 9.3%     
 26,275   Acadia Realty Trust   341,049 
 25,218   Apple Hospitality REIT, Inc.   243,606 
 27,262   Brixmor Property Group, Inc.   349,499 
 29,570   Columbia Property Trust, Inc.   388,550 
 37,198   CoreCivic, Inc.   348,173 
 6,921   Douglas Emmett, Inc.   212,198 
 7,872   EPR Properties   260,799 
 6,833   Gaming and Leisure Properties, Inc.   236,422 
 27,400   Industrial Logistics Properties Trust   563,070 
 18,170   Kimco Realty Corp.   233,303 
 8,622   LTC Properties, Inc.   324,791 
 42,356   Macerich Co. (The)   379,936 
 23,427   Medical Properties Trust, Inc.   440,428 
 6,285   National Health Investors, Inc.   381,625 
 11,764   Office Properties Income Trust   305,511 
 504   Retail Value, Inc.   6,229 
 40,096   Sabra Health Care REIT, Inc.   578,585 
 50,992   Service Properties Trust   361,533 
 4,730   SL Green Realty Corp.   233,142 
 42,958   Tanger Factory Outlet Centers, Inc.   306,291 
 6,095   Taubman Centers, Inc.   230,147 
 35,902   VEREIT, Inc.   230,850 
 18,722   VICI Properties, Inc.   377,997 
 13,592   Weingarten Realty Investors.   257,297 
         7,591,031 
     Food & Staples Retailing — 2.4%     
 20,640   Rite Aid Corp.(a)   352,118 
 20,429   SpartanNash Co.   434,116 
 19,781   Sprouts Farmers Market, Inc.(a)   506,196 
 34,755   United Natural Foods, Inc.(a)   632,889 
         1,925,319 
     Gas Utilities — 1.1%     
 8,518   National Fuel Gas Co.   357,160 

 

Shares      Fair Value 
COMMON STOCKS — (continued)     
     Gas Utilities — (continued)     
 16,473   New Jersey Resources Corp.  $537,843 
         895,003 
     Health Care Providers & Services — 2.5%     
 5,579   DaVita, Inc.(a)   441,522 
 43,361   Owens & Minor, Inc.   330,411 
 11,534   Premier, Inc., Class A(a)   395,386 
 24,099   Select Medical Holdings Corp.(a)   354,978 
 18,662   Tenet Healthcare Corp.(a)   337,969 
 2,240   Universal Health Services, Inc., Class B   208,074 
         2,068,340 
     Household Durables — 3.0%     
 15,300   KB Home   469,404 
 11,615   Meritage Homes Corp.(a)   884,134 
 12,827   PulteGroup, Inc.   436,503 
 42,992   TRI Pointe Group, Inc.(a)   631,552 
         2,421,593 
     Household Products — 0.8%     
 7,360   Central Garden & Pet Co.(a)   264,886 
 12,496   Central Garden & Pet Co., Class A(a)   422,240 
         687,126 
     Independent Power and Renewable Electricity Producers — 0.5%     
 30,472   AES Corp. (The)   441,539 
     Insurance — 6.1%     
 19,310   American Equity Investment Life Holding Co.   477,150 
 3,967   American Financial Group, Inc.   251,746 
 11,247   Assured Guaranty, Ltd.   274,539 
 7,751   Athene Holding, Ltd., Class A(a)   241,754 
 44,915   CNO Financial Group, Inc.   699,327 
 1   Fidelity National Financial, Inc.   28 
 6,436   First American Financial Corp.   309,057 
 160,086   Genworth Financial, Inc., Class A(a)   369,799 
 3,289   Globe Life, Inc.   244,142 
 2,848   Kemper Corp.   206,537 
 7,537   Lincoln National Corp.   277,286 
 20,678   National General Holdings Corp.   446,852 
 19,179   Old Republic International Corp.   312,809 
 5,953   Principal Financial Group, Inc.   247,288 
 4,586   Reinsurance Group of America, Inc.   359,726 
 13,211   Unum Group   219,170 
         4,937,210 
     Internet & Direct Marketing Retail — 0.3%     
 26,328   Qurate Retail, Inc., Series A(a)   250,116 
     Leisure Products — 1.4%     
 17,166   Smith & Wesson Brands, Inc.(a)   369,412 
 3,405   Sturm Ruger & Co., Inc.   258,780 
 33,102   Vista Outdoor, Inc.(a)   478,324 
         1,106,516 
     Machinery — 1.5%     
 8,299   Astec Industries, Inc.   384,327 
 14,012   Meritor, Inc.(a)   277,438 
 19,172   Terex Corp.   359,858 
 5,164   Timken Co. (The)   234,910 
         1,256,533 

 

Continued

2

 

Sterling Capital Behavioral Small Cap Value Equity Fund

Schedule of Portfolio Investments — (continued)  

June 30, 2020 (Unaudited)

 

 

Shares      Fair Value 
COMMON STOCKS — (continued)     
     Marine — 0.4%     
 10,678   Matson, Inc.  $310,730 
     Media — 0.8%     
 21,386   Gray Television, Inc.(a)   298,335 
 18,770   Sinclair Broadcast Group, Inc., Class A   346,494 
         644,829 
     Metals & Mining — 1.9%     
 25,996   Commercial Metals Co.   530,318 
 4,493   Reliance Steel & Aluminum Co.   426,520 
 20,071   Schnitzer Steel Industries, Inc., Class A   354,052 
 9,166   Steel Dynamics, Inc.   239,141 
         1,550,031 
     Mortgage Real Estate Investment Trusts (REITS) — 0.5%     
 43,122   Chimera Investment Corp.   414,402 
 1,020   Great Ajax Corp.   9,384 
         423,786 
     Multiline Retail — 0.6%     
 8,842   Big Lots, Inc.   371,364 
 4,007   Dillard’s, Inc., Class A   103,340 
         474,704 
     Multi-Utilities — 1.3%     
 15,293   Avista Corp.   556,512 
 8,545   NorthWestern Corp.   465,873 
         1,022,385 
     Oil, Gas & Consumable Fuels — 3.8%     
 45,958   Antero Midstream Corp.   234,386 
 14,062   Cabot Oil & Gas Corp.   241,585 
 45,501   CNX Resources Corp.(a)   393,584 
 72,359   DHT Holdings, Inc.   371,202 
 21,879   EQT Corp.   260,360 
 171,315   Kosmos Energy, Ltd.   284,383 
 43,432   Magnolia Oil & Gas Corp., Class A(a)   263,198 
 26,132   Nordic American Tankers, Ltd.   106,096 
 14,065   Renewable Energy Group, Inc.(a)   348,531 
 22,968   Scorpio Tankers, Inc.   294,220 
 20,893   Teekay Tankers, Ltd., Class A(a)   267,848 
         3,065,393 
     Paper & Forest Products — 0.6%     
 13,888   Boise Cascade Co.   522,328 
     Pharmaceuticals — 3.3%     
 27,989   Corcept Therapeutics, Inc.(a)   470,775 
 32,483   Innoviva, Inc.(a)   454,112 
 1,872   Jazz Pharmaceuticals PLC(a)   206,556 
 46,721   Lannett Co., Inc.(a)   339,194 
 92,249   Mallinckrodt PLC(a)   247,227 
 18,707   Mylan NV(a)   300,809 
 10,962   Prestige Consumer Healthcare, Inc.(a)   411,733 
 12,642   Supernus Pharmaceuticals, Inc.(a)   300,247 
         2,730,653 
     Professional Services — 1.1%     
 19,896   Kelly Services, Inc., Class A   314,655 
 3,594   ManpowerGroup, Inc.   247,087 
 20,970   TrueBlue, Inc.(a)   320,212 
         881,954 

 

Shares      Fair Value 
COMMON STOCKS — (continued)    
     Real Estate Management & Development — 0.7%     
 20,165   Forestar Group, Inc.(a)  $304,088 
 2,751   Jones Lang LaSalle, Inc.   284,618 
         588,706 
     Road & Rail — 0.7%     
 11,523   Schneider National, Inc., Class B   284,272 
 6,113   Werner Enterprises, Inc.   266,099 
         550,371 
     Semiconductors & Semiconductor Equipment — 4.2%     
 57,989   Amkor Technology, Inc.(a)   713,845 
 34,130   NeoPhotonics Corp.(a)   303,074 
 25,599   Photronics, Inc.(a)   284,917 
 56,343   Rambus, Inc.(a)   856,414 
 14,504   SMART Global Holdings, Inc.(a)   394,219 
 6,961   Synaptics, Inc.(a)   418,495 
 21,299   Ultra Clean Holdings, Inc.(a)   481,996 
         3,452,960 
     Specialty Retail — 4.7%     
 35,163   Bed Bath & Beyond, Inc.   372,728 
 9,192   Camping World Holdings, Inc., Class A   249,655 
 58,921   GameStop Corp., Class A(a)   255,717 
 2,695   Lithia Motors, Inc., Class A   407,834 
 2,105   Murphy USA, Inc.(a)   237,002 
 163,465   Office Depot, Inc.   384,143 
 18,932   Rent-A-Center, Inc.   526,688 
 30,408   Sally Beauty Holdings, Inc.(a)   381,012 
 9,996   Sonic Automotive, Inc., Class A   318,972 
 33,478   Sportsman’s Warehouse Holdings, Inc.(a)   477,061 
 2,800   Williams-Sonoma, Inc.   229,628 
         3,840,440 
     Trading Companies & Distributors — 2.2%     
 15,916   GMS, Inc.(a)   391,374 
 3,347   MSC Industrial Direct Co., Inc., Class A   243,695 
 38,977   NOW, Inc.(a)   336,371 
 8,792   Rush Enterprises, Inc., Class A   364,516 
 16,038   Triton International, Ltd./Bermuda   484,989 
         1,820,945 
     Wireless Telecommunication Services — 0.8%     
 2,016   Shenandoah Telecommunications Co.   99,369 
 11,869   Telephone and Data Systems, Inc.   235,956 
 10,503   United States Cellular Corp.(a)   324,228 
         659,553 
     Total Common Stocks     
     (Cost $78,773,236)   78,398,000 
           
EXCHANGE TRADED FUND — 1.5%     
 12,500   iShares Russell 2000 Value ETF   1,218,250 
     Total Exchange Traded Fund     
     (Cost $1,016,919)   1,218,250 

 

Continued

3

 

Sterling Capital Behavioral Small Cap Value Equity Fund

Schedule of Portfolio Investments — (continued)  

June 30, 2020 (Unaudited)

 

 

Shares       Fair Value 
MONEY MARKET FUND — 2.8%    
  2,305,892    Federated Treasury Obligations Fund, Institutional Shares, 0.10%(b)  $2,305,892 
       Total Money Market Fund     
     (Cost $2,305,892)   2,305,892 
Total Investments — 100.4%    
(Cost $82,096,047)   81,922,142 
Net Other Assets (Liabilities) — (0.4)%   (346,606)
NET ASSETS — 100.0%  $81,575,536 

 

 
(a)Represents non-income producing security.
(b)Represents the current yield as of report date.

 

ETF — Exchange Traded Fund

 

Continued

4

 

Sterling Capital Funds

Notes to Schedule of Portfolio Investments - Sterling Capital Behavioral Small Cap Value Equity Fund

June 30, 2020 (Unaudited)

 

 

1.Organization:

 

Sterling Capital Funds (the “Trust”) commenced operations on October 5, 1992 and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end investment company established as a Massachusetts business trust.

 

The Trust offers shares of Sterling Capital Behavioral Small Cap Value Equity Fund (referred to as the “Fund”), among other series of the Trust.

 

The Fund is a “diversified” fund as defined in the 1940 Act.

 

2.Significant Accounting Policies:

 

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”)Accounting Standard Codification Topic 946 Financial Services-Investment Companies. The following is a summary of significant accounting policies followed by the Fund. The policies are in conformity with United States generally accepted accounting principles (“U.S. GAAP”).The preparation of this schedule requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the schedule and the reported amount of income and expense for the reporting period. Actual results could differ from those estimates.

 

Securities Valuation — Investments of the Fund in securities traded on a national securities exchange or in the over-the-counter market are valued at the closing price on the principal exchange or market (including the NASDAQ Closing Price for securities traded on NASDAQ), typically 4:00 PM ET or, absent such a price, by reference to the latest available bid prices in the principal market in which such securities are normally traded. The Fund may also use an independent pricing service approved by the Board of Trustees (the “Board”) to value certain securities, including the use of electronic and matrix techniques. Investments in open-end investment companies are valued at their respective net asset values as reported by such companies. Investments in closed-end investment companies and exchange-traded funds are valued at their market values based upon the latest available sale price or, absent such a price, by reference to the latest available bid prices in the principal market in which such securities are normally traded. The differences between cost and fair value of investments are reflected as either unrealized appreciation or depreciation. Securities for which market quotations are not readily available or deemed unreliable (e.g., an approved pricing service does not provide a price, a furnished price is in error, certain stale prices, or an event occurs that materially affects the furnished price) will be fair valued in accordance with procedures established in good faith under the general supervision of the Board.

 

Fair Value Measurements — The objective of a fair value measurement is to determine 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 (an exit price). Accordingly, the fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described as follows:

 

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

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. During the period ended June 30, 2020, there were no significant changes to the valuation policies and procedures.

5

 

Sterling Capital Funds

Notes to Schedule of Portfolio Investments - Sterling Capital Behavioral Small Cap Value Equity Fund — (continued)

June 30, 2020 (Unaudited)

 

 

The summary of inputs used to determine the fair value of the Fund’s investments as of June 30, 2020 is as follows:

 

   Level 1– Quoted Prices   Level 2– Other Significant Observable Inputs   Level 3– Significant Unobservable Inputs   Total 
Assets:                    
Investments in Securities                    
Sterling Capital Behavioral Small Cap Value Equity Fund  $81,922,142(a)  $—   $—   $81,922,142 

 

 
(a)Industries, countries or security types are disclosed in the Schedule of Portfolio Investments.

 

Cash and Cash Equivalents — The Fund considers liquid assets deposited with a bank, and certain short term debt instruments with original maturities of three months or less to be cash equivalents. These investments represent amounts held with financial institutions that are readily accessible to pay Fund expenses or investments. The Fund may invest its excess cash in the Federated Treasury Obligations Fund or a similar money market fund or other short-term investment.

 

Risks Associated with Foreign Securities and Currencies — Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of domestic issuers. Such risks include future political and economic developments and the possible imposition of exchange controls or other foreign governmental laws and restrictions. In addition, with respect to certain countries, there is the possibility of expropriation of assets, confiscatory taxation, political or social instability or diplomatic developments which could adversely affect investments in those countries. Certain foreign investments may also be subject to foreign withholding taxes.

 

When-Issued and Forward Commitments — The Fund may purchase securities on a “when-issued” basis. The Fund may also purchase or sell securities on a forward commitment basis. The Fund records when-issued securities on the trade date and pledge assets with a value at least equal to the purchase commitment for payment of the securities purchased. The value of the securities underlying when-issued or forward commitments to purchase securities, and any subsequent fluctuation in their value, is taken into account when determining the net asset value of the Fund commencing with the date the Fund agrees to purchase the securities. The Fund does not accrue interest or dividends on “when-issued” securities until the underlying securities are received.

6