NPORT-EX 2 NPORT_EBX8_46178277_0424.htm

 

Lord Abbett

Quarterly Portfolio Holdings Report

 

Lord Abbett
Developing Growth Fund

 

For the period ended April 30, 2024

 

 

Schedule of Investments (unaudited)

April 30, 2024

 

Investments  Shares   Fair
Value		 
LONG-TERM INVESTMENTS 97.54%    
          
COMMON STOCKS 97.54%    
           
Aerospace & Defense 4.35%    
AeroVironment, Inc.*   346,891   $55,429,713 
Axon Enterprise, Inc.*   92,315    28,955,523 
Loar Holdings, Inc.*   375,887    19,666,408 
Total        104,051,644 
           
Biotechnology 13.36%          
Arcellx, Inc.*   473,172    23,668,063 
Blueprint Medicines Corp.*   461,487    42,152,223 
Bridgebio Pharma, Inc.*   704,715    18,054,798 
Crinetics Pharmaceuticals, Inc.*   339,039    14,856,689 
Cytokinetics, Inc.*   154,520    9,475,166 
Janux Therapeutics, Inc.*   375,786    21,419,802 
Krystal Biotech, Inc.*   250,205    38,311,390 
Madrigal Pharmaceuticals, Inc.*   52,739    10,759,811 
Natera, Inc.*   523,958    48,665,219 
Nuvalent, Inc. Class A*   254,208    17,509,847 
SpringWorks Therapeutics, Inc.*   772,803    36,082,172 
Vaxcyte, Inc.*   193,365    11,708,251 
Viking Therapeutics, Inc.*   187,354    14,909,631 
Xenon Pharmaceuticals, Inc. (Canada)*(a)   290,791    11,820,654 
Total        319,393,716 
           
Building Products 4.67%          
AAON, Inc.   458,101    43,102,723 
AZEK Co., Inc.*   407,660    18,605,602 
Trex Co., Inc.*   562,458    49,805,656 
Total        111,513,981 
           
Capital Markets 3.91%          
Evercore, Inc. Class A   174,726    31,712,769 
Hamilton Lane, Inc. Class A   219,473    24,519,524 
Piper Sandler Cos.   190,322    37,263,144 
Total        93,495,437 
Investments  Shares   Fair
Value		 
Commercial Services & Supplies 2.20%    
MSA Safety, Inc.   138,375   $24,962,850 
Tetra Tech, Inc.   141,890    27,628,821 
Total        52,591,671 
           
Construction & Engineering 4.82%    
Comfort Systems USA, Inc.   169,843    52,551,123 
EMCOR Group, Inc.   108,501    38,753,302 
Sterling Infrastructure, Inc.*   235,943    23,971,809 
Total        115,276,234 
           
Consumer Staples Distribution & Retail 0.75%    
Sprouts Farmers Market, Inc.*   271,509    17,927,739 
           
Diversified Consumer Services 3.31%    
Bright Horizons Family Solutions, Inc.*   283,329    29,384,051 
Duolingo, Inc.*   220,046    49,675,384 
Total        79,059,435 
           
Electrical Equipment 1.75%    
NEXTracker, Inc. Class A*   320,396    13,709,745 
nVent Electric PLC (United Kingdom)(a)   389,372    28,062,040 
Total        41,771,785 
           
Electronic Equipment, Instruments & Components 0.79%
Itron, Inc.*   203,788    18,772,951 
           
Financial Services 3.17%    
AvidXchange Holdings, Inc.*   2,802,614    32,678,479 
Remitly Global, Inc.*   1,006,889    17,952,831 
StoneCo Ltd. Class A (Brazil)*(a)   1,616,127    25,211,581 
Total        75,842,891 
           
Food Products 1.57%          
Freshpet, Inc.*   354,087    37,558,008 
           
Ground Transportation 2.97%    
Lyft, Inc. Class A*   2,547,645    39,845,168 
Saia, Inc.*   78,515    31,157,107 
Total        71,002,275 


 

  See Notes to Schedule of Investments. 1
 

Schedule of Investments (unaudited)(continued)

April 30, 2024

 

Investments  Shares   Fair
Value		 
Health Care Equipment & Supplies 7.55%
Glaukos Corp.*   539,633   $51,804,768 
Inspire Medical Systems, Inc.*   108,055    26,112,571 
iRhythm Technologies, Inc.*   186,303    20,415,083 
RxSight, Inc.*   973,748    50,761,483 
TransMedics Group, Inc.*   334,126    31,451,281 
Total        180,545,186 
           
Hotels, Restaurants & Leisure 7.33%
Cava Group, Inc.*   931,241    66,993,477 
MakeMyTrip Ltd. (India)*(a)   424,143    28,082,508 
Shake Shack, Inc. Class A*   197,440    20,899,024 
Wingstop, Inc.   153,587    59,098,742 
Total        175,073,751 
           
Information Technology Services 0.71%
Wix.com Ltd. (Israel)*(a)   141,630    16,835,558 
           
Machinery 1.49%          
Crane Co.   253,680    35,517,737 
           
Personal Care Products 2.17%
BellRing Brands, Inc.*   340,063    18,761,276 
elf Beauty, Inc.*   114,732    18,647,392 
Oddity Tech Ltd. Class A (Israel)*(a)(b)   445,986    14,512,384 
Total        51,921,052 
           
Pharmaceuticals 1.35%          
Intra-Cellular Therapies, Inc.*   449,927    32,309,258 
           
Professional Services 2.54%
Parsons Corp.*   411,537    32,309,770 
Verra Mobility Corp.*   1,200,590    28,309,912 
Total        60,619,682 
           
Semiconductors & Semiconductor Equipment 7.95%
Astera Labs, Inc.*(b)   345,875    29,316,365 
Camtek Ltd. (Israel)(a)   519,700    42,080,109 
Credo Technology Group Holding Ltd.*   926,039    16,548,317 
Impinj, Inc.*   167,724    26,731,851 
Onto Innovation, Inc.*   277,157    51,409,852 
Rambus, Inc.*   436,981    23,955,298 
Total        190,041,792 
Investments  Shares   Fair
Value		 
Software 17.22%          
Agilysys, Inc.*   435,836   $36,196,180 
Appfolio, Inc. Class A*   200,290    45,421,766 
CyberArk Software Ltd. (Israel)*(a)   193,723    46,348,228 
Descartes Systems Group, Inc. (Canada)*(a)   330,133    30,633,041 
DoubleVerify Holdings, Inc.*   391,423    11,468,694 
Gitlab, Inc. Class A*   588,461    30,876,549 
Guidewire Software, Inc.*   235,866    26,039,606 
Ibotta, Inc. Class A*   23,200    2,372,664 
JFrog Ltd. (Israel)*(a)   1,007,656    40,185,321 
Monday.com Ltd. (Israel)*(a)   127,500    24,139,575 
Samsara, Inc. Class A*   743,080    25,955,784 
SentinelOne, Inc. Class A*   1,423,828    30,085,486 
SPS Commerce, Inc.*   175,410    30,498,537 
Varonis Systems, Inc.*   718,251    31,423,481 
Total        411,644,912 
           
Technology Hardware, Storage & Peripherals 1.09%
Super Micro Computer, Inc.*   30,364    26,076,603 
           
Trading Companies & Distributors 0.52%    
FTAI Aviation Ltd.   177,493    12,461,784 
Total Common Stocks
(cost $1,741,865,987)		        2,331,305,082 
           
    Principal
Amount		      
           
SHORT-TERM INVESTMENTS 4.06%
           
Repurchase Agreements 2.80%
Repurchase Agreement dated 4/30/2024, 2.800% due 5/1/2024 with Fixed Income Clearing Corp. collateralized by $68,338,600 of U.S. Treasury Note at 4.875% due 4/30/2026; value: $68,202,471; proceeds: $66,870,340
(cost $66,865,139)		  $66,865,139    66,865,139 


 

2 See Notes to Schedule of Investments.
 

Schedule of Investments (unaudited)(concluded)

April 30, 2024

 

Investments  Shares   Fair
Value		 
Money Market Funds 1.14%          
Fidelity Government Portfolio(c)
(cost $27,189,875)		   27,189,875   $27,189,875 
           
Time Deposits 0.12%          
CitiBank N.A.(c)
(cost $3,021,097)		   3,021,097    3,021,097 
Total Short-Term Investments
(cost $97,076,111)		        97,076,111 
Total Investments in Securities 101.60%
(cost $1,838,942,098)		        2,428,381,193 
Other Assets and Liabilities – Net (1.60)%  (38,201,277)
Net Assets 100.00%       $2,390,179,916 

 

 

*   Non-income producing security.
(a)   Foreign security traded in U.S. dollars.
(b)   All or a portion of this security is temporarily on loan to unaffiliated broker/dealers.
(c)   Security was purchased with the cash collateral from loaned securities.


 

The following is a summary of the inputs used as of April 30, 2024 in valuing the Fund’s investments carried at fair value(1):

 

Investment Type(2)  Level 1   Level 2   Level 3   Total 
Long-Term Investments                    
Common Stocks  $2,331,305,082   $–   $–   $2,331,305,082 
Short-Term Investments                    
Repurchase Agreements   –    66,865,139    –    66,865,139 
Money Market Funds   27,189,875    –    –    27,189,875 
Time Deposits   –    3,021,097    –    3,021,097 
Total  $2,358,494,957   $69,886,236   $–   $2,428,381,193 

 

(1)   Refer to Note 2(b) for a description of fair value measurements and the three-tier hierarchy of inputs.
(2)   See Schedule of Investments for fair values in each industry and identification of foreign issuers and/or geography. The table above is presented by Investment Type. Industries are presented within an Investment Type should such Investment Type include securities classified as two or more levels within the three-tier fair value hierarchy. When applicable, each Level 3 security is identified on the Schedule of Investments along with the valuation technique utilized.

 

A reconciliation of Level 3 investments is presented when the Fund has a material amount of Level 3 investments at the beginning or end of the period in relation to the Fund’s net assets.

 

  See Notes to Schedule of Investments. 3
 

Notes to Schedule of Investments (unaudited)

 

1. ORGANIZATION  

 

Lord Abbett Developing Growth Fund, Inc. (the “Fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as a diversified, open-end management investment company. The Fund was incorporated under Maryland law on August 21, 1978. The Fund’s predecessor corporation was organized on July 11, 1973.

 

The Fund’s investment objective is long-term growth of capital through a diversified and actively managed portfolio consisting of developing growth companies, many of which are traded over the counter.

 

2. SIGNIFICANT ACCOUNTING POLICIES  

 

(a) Investment Valuation–Under procedures approved by the Fund’s Board of Directors (the “Board”), the Board has designated the determination of fair value of the Fund’s portfolio investments to Lord, Abbett & Co. LLC (“Lord Abbett”) as its valuation designee. Accordingly, Lord Abbett is responsible for, among other things, assessing and managing valuation risks, establishing, applying and testing fair value methodologies, and evaluating pricing services. Lord Abbett has formed a Pricing Committee that performs these responsibilities on behalf of Lord Abbett, administers the pricing and valuation of the portfolio investments and ensures that prices utilized reasonably reflect fair value. Among other things, these procedures allow Lord Abbett, subject to Board oversight, to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
   
  Securities actively traded on any recognized U.S. or non-U.S. exchange or on The NASDAQ Stock Market LLC are valued at the last sale price or official closing price on the exchange or system on which they are principally traded. Events occurring after the close of trading on non-U.S. exchanges may result in adjustments to the valuation of foreign securities to reflect their fair value as of the close of regular trading on the New York Stock Exchange. When valuing foreign equity securities that meet certain criteria, the Pricing Committee uses a third-party fair valuation service that values such securities to reflect market trading that occurs after the close of the applicable foreign markets of comparable securities or other instruments that correlate to the fair-valued securities. Unlisted equity securities are valued at the last quoted sale price or, if no sale price is available, at the mean between the most recently quoted bid and ask prices.
   
  Securities for which prices are not readily available are valued at fair value as determined by the Pricing Committee. The Pricing Committee considers a number of factors, including observable and unobservable inputs, when arriving at fair value. The Pricing Committee may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information to determine the fair value of portfolio investments. The Board or a designated committee thereof periodically reviews reports that may include fair value determinations made by the Pricing Committee, related market activity, inputs and assumptions, and retrospective comparison of prices of subsequent purchases and sales transactions to fair value determinations made by the Pricing Committee.
   
  Short-term securities with 60 days or less remaining to maturity are valued using the amortized cost method, which approximates fair value. Investments in open-end money market mutual funds are valued at their NAV as of the close of each business day.

 

4

 

Notes to Schedule of Investments (unaudited)(continued)

 

(b) Fair Value Measurements–Fair value is defined as the price that the Fund would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk – for example, the risk inherent in a particular valuation technique used to measure fair value (such as a pricing model) and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy classification is determined based on the lowest level of inputs that is significant to the fair value measurement, and is summarized in the three broad Levels listed below:

 

  ● Level 1 –   unadjusted 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.); and
       
  ● Level 3 –   significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

 

  A summary of inputs used in valuing the Fund’s investments as of April 30, 2024 and, if applicable, Level 3 rollforwards for the period then ended is included in the Fund’s Schedule of Investments.
   
  Changes in valuation techniques may result in transfers into or out of an assigned level within the three-tier hierarchy. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

3. FEDERAL TAX INFORMATION  

 

It is the policy of the Fund to meet the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all taxable income and capital gains to its shareholders. Therefore, no income tax provision is required.

 

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s filed U.S. federal tax returns remains open generally three years after the filing of the tax return. The statute of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

 

5

 

Notes to Schedule of Investments (unaudited)(concluded)

 

4. SECURITIES LENDING AGREEMENT  

 

The Fund has established a securities lending agreement with Citibank, N.A. for the lending of securities to qualified brokers in exchange for securities or cash collateral equal to at least the market value of securities loaned, plus interest, if applicable. Cash collateral is invested in an approved money market fund. In accordance with the Fund’s securities lending agreement, the market value of securities on loan is determined each day at the close of business and any additional collateral required to cover the value of securities on loan is delivered to the Fund on the next business day. As with other extensions of credit, the Fund may experience a delay in the recovery of its securities or incur a loss should the borrower of the securities breach its agreement with the Fund or the borrower becomes insolvent at a time when the collateral is insufficient to cover the cost of repurchasing securities on loan.

 

The initial collateral received by the Fund is required to have a value equal to at least 100% of the market value of the securities loaned. The collateral must be marked-to-market daily to cover increases in the market value of the securities loaned (or potentially a decline in the value of the collateral). In general, the risk of borrower default will be borne by Citibank, N.A.; the Fund will bear the risk of loss with respect to the investment of the cash collateral. The advantage of such loans is that the Fund continues to receive income on loaned securities while receiving a portion of any securities lending fees and earning returns on the cash amounts which may be reinvested for the purchase of investments in securities.

 

As of April 30, 2024, the market value loaned and the value received for the Fund was as follows:

 

Market Value of
Securities Loaned		   Collateral Received 
$29,330,635    $30.210.972 

 

6

 

QPHR-DEV-3Q

(06/24)