N-Q 1 e601646_nq-balancedcap.txt FORM N-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act File number 811-2405 Name of Fund: BlackRock Balanced Capital Fund, Inc. Fund Address: P.O. Box 9011 Princeton, NJ 08543-9011 Name and address of agent for service: Robert C. Doll, Jr., Chief Executive Officer, BlackRock Balanced Capital Fund, Inc., 800 Scudders Mill Road, Plainsboro, NJ 08536. Mailing address: P.O. Box 9011, Princeton, NJ 08543-9011 Registrant's telephone number, including area code: (609) 282-2800 Date of fiscal year end: 03/31/2007 Date of reporting period: 10/01/06 - 12/31/06 Item 1 - Schedule of Investments BlackRock Balanced Capital Fund, Inc. Schedule of Investments as of December 31, 2006 (in U.S. dollars)
Shares Industry Held Common Stocks Value ------------------------------------------------------------------------------------------------------------------------------- Aerospace & Defense - 2.9% 450,000 Honeywell International, Inc. $ 20,358,000 400,000 Raytheon Co. 21,120,000 450,000 United Technologies Corp. 28,134,000 -------------- 69,612,000 ------------------------------------------------------------------------------------------------------------------------------- Automobiles - 0.6% 200,000 Harley-Davidson, Inc. 14,094,000 ------------------------------------------------------------------------------------------------------------------------------- Beverages - 1.7% 400,000 Anheuser-Busch Cos., Inc. 19,680,000 1,000,000 Coca-Cola Enterprises, Inc. 20,420,000 -------------- 40,100,000 ------------------------------------------------------------------------------------------------------------------------------- Building Products - 1.2% 950,000 Masco Corp. 28,376,500 ------------------------------------------------------------------------------------------------------------------------------- Capital Markets - 3.7% 200,000 Legg Mason, Inc. 19,010,000 800,000 Mellon Financial Corp. 33,720,000 450,000 Morgan Stanley 36,643,500 -------------- 89,373,500 ------------------------------------------------------------------------------------------------------------------------------- Chemicals - 1.2% 600,000 E.I. du Pont de Nemours & Co. 29,226,000 ------------------------------------------------------------------------------------------------------------------------------- Commercial Banks - 1.3% 900,000 Wells Fargo & Co. 32,004,000 ------------------------------------------------------------------------------------------------------------------------------- Communications Equipment - 2.3% 1,250,000 Cisco Systems, Inc. (a) 34,162,500 1,100,000 Juniper Networks, Inc. (a)(e) 20,834,000 -------------- 54,996,500 ------------------------------------------------------------------------------------------------------------------------------- Computers & Peripherals - 3.2% 750,000 Hewlett-Packard Co. 30,892,500 300,000 International Business Machines Corp. 29,145,000 3,000,000 Sun Microsystems, Inc. (a) 16,260,000 -------------- 76,297,500 ------------------------------------------------------------------------------------------------------------------------------- Diversified Financial Services - 2.7% 700,000 Citigroup, Inc. 38,990,000 565,000 JPMorgan Chase & Co. 27,289,500 -------------- 66,279,500 ------------------------------------------------------------------------------------------------------------------------------- Diversified Telecommunication 600,000 AT&T, Inc. 21,450,000 Services - 2.0% 700,000 Verizon Communications, Inc. 26,068,000 -------------- 47,518,000 ------------------------------------------------------------------------------------------------------------------------------- Energy Equipment & Services - 2.1% 300,000 GlobalSantaFe Corp. 17,634,000 200,000 Schlumberger Ltd. 12,632,000 500,000 Weatherford International Ltd. (a)(e) 20,895,000 -------------- 51,161,000 ------------------------------------------------------------------------------------------------------------------------------- Food Products - 4.2% 600,000 Cadbury Schweppes Plc (b) 25,758,000 290,000 General Mills, Inc. 16,704,000 100,000 Nestle SA Registered Shares 35,535,494 855,000 Unilever NV (b) 23,298,750 -------------- 101,296,244 ------------------------------------------------------------------------------------------------------------------------------- Health Care Equipment & Supplies - 1.6% 825,000 Baxter International, Inc. 38,271,750 ------------------------------------------------------------------------------------------------------------------------------- Health Care Providers & Services - 0.6% 300,000 AmerisourceBergen Corp. 13,488,000 ------------------------------------------------------------------------------------------------------------------------------- Hotels, Restaurants & Leisure - 1.6% 870,000 McDonald's Corp. 38,567,100 ------------------------------------------------------------------------------------------------------------------------------- Household Durables - 0.4% 200,000 Sony Corp. (b) 8,566,000 ------------------------------------------------------------------------------------------------------------------------------- Household Products - 1.6% 575,000 Kimberly-Clark Corp. 39,071,250 ------------------------------------------------------------------------------------------------------------------------------- IT Services - 1.1% 750,000 Accenture Ltd. Class A 27,697,500 ------------------------------------------------------------------------------------------------------------------------------- Industrial Conglomerates - 5.0% 250,000 3M Co. 19,482,500 1,000,000 General Electric Co. 37,210,000 400,000 Textron, Inc. 37,508,000 900,000 Tyco International Ltd. 27,360,000 -------------- 121,560,500 ------------------------------------------------------------------------------------------------------------------------------- Insurance - 6.5% 635,000 ACE Ltd. 38,461,950 550,000 American International Group, Inc. 39,413,000 500,000 Endurance Specialty Holdings Ltd. 18,290,000 600,000 Genworth Financial, Inc. Class A 20,526,000 290,000 Prudential Financial, Inc. 24,899,400 250,000 RenaissanceRe Holdings Ltd. 15,000,000 -------------- 156,590,350 -------------------------------------------------------------------------------------------------------------------------------
BlackRock Balanced Capital Fund, Inc. Schedule of Investments as of December 31, 2006 (in U.S. dollars)
Shares Industry Held Common Stocks Value ------------------------------------------------------------------------------------------------------------------------------- Internet Software & Services - 0.8% 750,000 Yahoo!, Inc. (a) $ 19,155,000 ------------------------------------------------------------------------------------------------------------------------------- Machinery - 1.0% 500,000 Dover Corp. 24,510,000 ------------------------------------------------------------------------------------------------------------------------------- Media - 1.9% 300,000 CBS Corp. Class B 9,354,000 500,000 Comcast Corp. Special Class A (a) 20,940,000 42,500 Idearc, Inc. (a) 1,217,625 400,000 Walt Disney Co. 13,708,000 -------------- 45,219,625 ------------------------------------------------------------------------------------------------------------------------------- Metals & Mining - 0.8% 615,000 Alcoa, Inc. 18,456,150 ------------------------------------------------------------------------------------------------------------------------------- Oil, Gas & Consumable Fuels - 4.1% 375,000 Devon Energy Corp. 25,155,000 250,000 EnCana Corp. 11,487,500 235,000 Exxon Mobil Corp. 18,008,050 600,000 Murphy Oil Corp. 30,510,000 200,000 Total SA (b) 14,384,000 -------------- 99,544,550 ------------------------------------------------------------------------------------------------------------------------------- Paper & Forest Products - 1.3% 300,000 International Paper Co. 10,230,000 450,000 MeadWestvaco Corp. 13,527,000 100,000 Weyerhaeuser Co. 7,065,000 -------------- 30,822,000 ------------------------------------------------------------------------------------------------------------------------------- Pharmaceuticals - 3.4% 300,000 GlaxoSmithKline Plc (b) 15,828,000 300,000 Pfizer, Inc. 7,770,000 900,000 Schering-Plough Corp. 21,276,000 750,000 Wyeth 38,190,000 -------------- 83,064,000 ------------------------------------------------------------------------------------------------------------------------------- Semiconductors & Semiconductor 650,000 Applied Materials, Inc. 11,992,500 Equipment - 1.1% 600,000 Intersil Corp. Class A 14,352,000 -------------- 26,344,500 ------------------------------------------------------------------------------------------------------------------------------- Software - 2.1% 250,000 Electronic Arts, Inc. (a) 12,590,000 500,000 Microsoft Corp. 14,930,000 1,130,000 Symantec Corp. (a)(e) 23,560,500 -------------- 51,080,500 ------------------------------------------------------------------------------------------------------------------------------- Specialty Retail - 1.4% 950,000 Limited Brands 27,493,000 150,000 Office Depot, Inc. (a) 5,725,500 -------------- 33,218,500 ------------------------------------------------------------------------------------------------------------------------------- Total Common Stocks (Cost - $1,057,618,371) - 65.1% 1,575,562,019 ------------------------------------------------------------------------------------------------------------------------------- Beneficial Interest Mutual Funds ------------------------------------------------------------------------------------------------------------------------------- $694,000,000 Master Bond Portfolio of Master Bond Trust (c) 823,017,147 ------------------------------------------------------------------------------------------------------------------------------- Total Mutual Funds (Cost - $822,030,486) - 34.0% 823,017,147 ------------------------------------------------------------------------------------------------------------------------------- Short-Term Securities ------------------------------------------------------------------------------------------------------------------------------- $ 22,749,128 BlackRock Liquidity Series, LLC Cash Sweep Series, 5.26% (c)(f) 22,749,128 36,500,000 BlackRock Liquidity Series, LLC Money Market Series, 5.29% (c)(d)(f) 36,500,000 -------------------------------------------------------------------------------------------------------------------------------- Total Short-Term Securities (Cost - $59,249,128) - 2.4% 59,249,128 -------------------------------------------------------------------------------------------------------------------------------- Total Investments (Cost - $1,938,897,985*) - 101.5% 2,457,828,294 Liabilities in Excess of Other Assets - (1.5%) (36,198,584) -------------- Net Assets - 100.0% $2,421,629,710 ==============
BlackRock Balanced Capital Fund, Inc. Schedule of Investments as of December 31, 2006 (in U.S. dollars) * The cost and unrealized appreciation (depreciation) of investments as of December 31, 2006, as computed for federal income tax purposes, were as follows: Aggregate cost $ 1,951,905,533 =============== Gross unrealized appreciation $ 534,471,649 Gross unrealized depreciation (28,548,888) --------------- Net unrealized appreciation $ 505,922,761 =============== (a) Non-income producing security. (b) Depositary receipts. (c) Investments in companies considered to be an affiliate of the Fund, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows: -------------------------------------------------------------------------- Interest/ Net Dividend Affiliate Activity Income -------------------------------------------------------------------------- BlackRock Liquidity Series, LLC Cash Sweep Series $ (3,935,002) $ 373,571 BlackRock Liquidity Series, LLC Money Market Series $ (62,534,250) $ 33,492 Master Bond Portfolio of Master Bond Trust $ (40,000,000) $ 10,776,827 -------------------------------------------------------------------------- (d) Security was purchased with the cash proceeds from securities loans. (e) Security, or a portion of security, is on loan. (f) Represents the current yield as of December 31, 2006. o For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. Industries are shown as a percent of net assets. Item 2 - Controls and Procedures 2(a) - The registrant's certifying officers have reasonably designed such disclosure controls and procedures to ensure material information relating to the registrant is made known to us by others particularly during the period in which this report is being prepared. The registrant's certifying officers have determined that the registrant's disclosure controls and procedures are effective based on our evaluation of these controls and procedures as of a date within 90 days prior to the filing date of this report. 2(b) - There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the last fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 3 - Exhibits Certifications - Attached hereto Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BlackRock Balanced Capital Fund, Inc. By: /s/ Robert C. Doll, Jr. ------------------------------------- Robert C. Doll, Jr. Chief Executive Officer BlackRock Balanced Capital Fund, Inc. Date: February 20, 2007 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Robert C. Doll, Jr. ------------------------------------- Robert C. Doll, Jr. Chief Executive Officer BlackRock Balanced Capital Fund, Inc. Date: February 20, 2007 By: /s/ Donald C. Burke ------------------------------------- Donald C. Burke Chief Financial Officer BlackRock Balanced Capital Fund, Inc. Date: February 20, 2007