N-Q 1 p16037nvq.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 811-3105 Oppenheimer Capital Appreciation Fund (Exact name of registrant as specified in charter) 6803 South Tucson Way, Centennial, Colorado 80112-3924 (Address of principal executive offices) (Zip code) Robert G. Zack, Esq. OppenheimerFunds, Inc. Two World Financial Center, New York, New York 10281-1008 (Name and address of agent for service) Registrant's telephone number, including area code: (303) 768-3200 Date of fiscal year end: August 31 Date of reporting period: 11/30/2009 ITEM 1. SCHEDULE OF INVESTMENTS. Oppenheimer Capital Appreciation Fund STATEMENT OF INVESTMENTS November 30, 2009 / Unaudited
Shares Value ------------- -------------- COMMON STOCKS--99.5% CONSUMER DISCRETIONARY--9.0% DIVERSIFIED CONSUMER SERVICES--1.0% Apollo Group, Inc., Cl. A(1) 998,540 $ 56,986,678 HOTELS, RESTAURANTS & LEISURE--0.7% McDonald's Corp. 626,900 39,651,425 INTERNET & CATALOG RETAIL--0.9% Amazon.com, Inc.(1) 378,121 51,390,425 MEDIA--2.4% Cablevision Systems Corp. New York Group, Cl. A 2,555,315 63,933,981 McGraw-Hill Cos., Inc. (The) 1,214,170 36,376,533 Walt Disney Co. (The) 1,337,580 40,421,668 -------------- 140,732,182 -------------- SPECIALTY RETAIL--1.4% Bed Bath & Beyond, Inc.(1) 945,800 35,335,088 Staples, Inc. 1,966,360 45,855,515 -------------- 81,190,603 -------------- TEXTILES, APPAREL & LUXURY GOODS--2.6% Coach, Inc. 2,158,640 75,012,740 Nike, Inc., Cl. B 650,580 42,216,136 Polo Ralph Lauren Corp., Cl. A 463,475 35,618,054 -------------- 152,846,930 -------------- CONSUMER STAPLES--8.6% BEVERAGES--1.9% PepsiCo, Inc. 1,785,690 111,105,632 FOOD & STAPLES RETAILING--2.0% Wal-Mart Stores, Inc. 1,698,510 92,653,721 Walgreen Co. 534,950 20,804,206 -------------- 113,457,927 -------------- FOOD PRODUCTS--2.8% Cadbury plc 3,823,099 50,692,052 Nestle SA 2,416,646 114,234,011 -------------- 164,926,063 -------------- HOUSEHOLD PRODUCTS--1.0% Colgate-Palmolive Co. 686,790 57,820,850 TOBACCO--0.9% Philip Morris International, Inc. 1,062,750 51,107,648 ENERGY--8.6% ENERGY EQUIPMENT & SERVICES--3.0% Cameron International Corp.(1) 1,130,530 42,734,034 Halliburton Co. 1,692,230 49,683,873 Schlumberger Ltd. 1,324,796 84,641,216 -------------- 177,059,123 -------------- OIL, GAS & CONSUMABLE FUELS--5.6% Apache Corp. 548,430 52,254,410 Occidental Petroleum Corp. 1,345,012 108,663,519 Range Resources Corp. 902,213 42,521,299 Southwestern Energy Co.(1) 720,350 31,666,586
1 | Oppenheimer Capital Appreciation Fund Oppenheimer Capital Appreciation Fund STATEMENT OF INVESTMENTS November 30, 2009 / Unaudited
Shares Value ------------- -------------- COMMON STOCKS CONTINUED OIL, GAS & CONSUMABLE FUELS CONTINUED XTO Energy, Inc. 2,118,736 $ 89,919,156 -------------- 325,024,970 -------------- FINANCIALS--8.6% CAPITAL MARKETS--4.0% Charles Schwab Corp. (The) 2,763,240 50,650,189 Credit Suisse Group AG 1,233,554 64,470,369 Goldman Sachs Group, Inc. (The) 409,954 69,552,796 Julius Baer Group Ltd. 694,290 23,057,371 T. Rowe Price Group, Inc. 500,630 24,495,826 -------------- 232,226,551 -------------- COMMERCIAL BANKS--0.6% Wells Fargo & Co. 1,288,590 36,132,064 -------------- DIVERSIFIED FINANCIAL SERVICES--3.5% BM&F BOVESPA SA 6,734,270 45,265,956 IntercontinentalExchange, Inc.(1) 780,120 83,309,015 JPMorgan Chase & Co. 773,970 32,885,985 MSCI, Inc., Cl. A(1) 1,302,030 39,672,854 -------------- 201,133,810 -------------- REAL ESTATE MANAGEMENT & DEVELOPMENT--0.5% Jones Lang LaSalle, Inc. 576,130 29,307,733 -------------- HEALTH CARE--16.9% BIOTECHNOLOGY--4.2% Amgen, Inc.(1) 931,350 52,481,573 Celgene Corp.(1) 1,413,200 78,361,940 Gilead Sciences, Inc.(1) 1,917,398 88,296,178 Vertex Pharmaceuticals, Inc.(1) 681,340 26,449,619 -------------- 245,589,310 -------------- HEALTH CARE EQUIPMENT & SUPPLIES--4.0% Bard (C.R.), Inc. 319,649 26,278,344 Baxter International, Inc. 2,091,480 114,090,234 Dentsply International, Inc. 1,399,290 46,624,343 St. Jude Medical, Inc.(1) 317,510 11,655,792 Stryker Corp. 592,310 29,852,424 -------------- 228,501,137 -------------- HEALTH CARE PROVIDERS & SERVICES--3.5% Express Scripts, Inc.(1) 1,268,230 108,814,134 Medco Health Solutions, Inc.(1) 866,280 54,714,245 Schein (Henry), Inc.(1) 789,887 39,225,788 -------------- 202,754,167 -------------- LIFE SCIENCES TOOLS & SERVICES--1.8% Illumina, Inc.(1) 847,540 24,510,857 Thermo Fisher Scientific, Inc.(1) 1,718,167 81,149,027 -------------- 105,659,884 -------------- PHARMACEUTICALS--3.4% Allergan, Inc. 1,147,504 66,704,408
2 | Oppenheimer Capital Appreciation Fund Oppenheimer Capital Appreciation Fund STATEMENT OF INVESTMENTS November 30, 2009 / Unaudited
Shares Value ------------- -------------- COMMON STOCKS CONTINUED PHARMACEUTICALS CONTINUED Novo Nordisk AS, Cl. B 488,970 $ 32,695,780 Roche Holding AG 343,948 56,260,298 Shire plc 2,105,688 41,215,572 -------------- 196,876,058 -------------- INDUSTRIALS--6.0% AEROSPACE & DEFENSE--2.3% General Dynamics Corp. 519,988 34,267,209 Goodrich Corp. 532,430 31,594,396 Lockheed Martin Corp. 846,658 65,387,397 -------------- 131,249,002 -------------- CONSTRUCTION & ENGINEERING--0.5% Quanta Services, Inc.(1) 1,561,470 29,277,563 ELECTRICAL EQUIPMENT--1.9% ABB Ltd. 4,243,674 78,350,242 First Solar, Inc.(1) 271,630 32,353,849 -------------- 110,704,091 -------------- MACHINERY--0.7% Joy Global, Inc. 751,480 40,234,239 PROFESSIONAL SERVICES--0.3% Verisk Analytics, Inc., Cl. A(1) 701,320 18,872,521 ROAD & RAIL--0.3% Union Pacific Corp. 316,150 19,999,649 INFORMATION TECHNOLOGY--34.2% COMMUNICATIONS EQUIPMENT--5.9% F5 Networks, Inc.(1) 614,670 28,907,930 Juniper Networks, Inc.(1) 1,752,040 45,780,805 QUALCOMM, Inc. 4,184,160 188,287,200 Research in Motion Ltd.(1) 1,367,999 79,193,462 -------------- 342,169,397 -------------- COMPUTERS & PERIPHERALS--7.0% Apple, Inc.(1) 827,710 165,467,506 Dell, Inc.(1) 2,696,460 38,074,015 Hewlett-Packard Co. 2,877,210 141,155,923 NetApp, Inc.(1) 2,003,220 61,739,240 -------------- 406,436,684 -------------- ELECTRONIC EQUIPMENT & INSTRUMENTS--0.4% Corning, Inc. 1,586,450 26,461,986 INTERNET SOFTWARE & SERVICES--5.3% eBay, Inc.(1) 2,928,870 71,669,449 Google, Inc., Cl. A(1) 404,916 236,066,028 -------------- 307,735,477 -------------- IT SERVICES--5.3% Accenture plc, Cl. A 1,208,210 49,584,938 MasterCard, Inc., Cl. A 490,870 118,230,948 Visa, Inc., Cl. A 1,486,680 120,421,080
3 | Oppenheimer Capital Appreciation Fund Oppenheimer Capital Appreciation Fund STATEMENT OF INVESTMENTS November 30, 2009 / Unaudited
Shares Value ------------- -------------- COMMON STOCKS CONTINUED IT SERVICES CONTINUED Western Union Co. 959,490 $ 17,702,591 -------------- 305,939,557 -------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--4.4% Broadcom Corp., Cl. A(1) 2,398,375 70,032,550 MEMC Electronic Materials, Inc.(1) 2,968,370 35,739,175 NVIDIA Corp.(1) 5,962,780 77,873,907 Texas Instruments, Inc. 2,856,600 72,243,414 -------------- 255,889,046 -------------- SOFTWARE--5.9% Adobe Systems, Inc.(1) 2,540,950 89,136,526 Microsoft Corp. 2,796,506 82,245,241 Nintendo Co. Ltd. 199,190 48,875,751 Oracle Corp. 4,230,780 93,415,622 Salesforce.com, Inc.(1) 521,524 32,689,124 -------------- 346,362,264 -------------- MATERIALS--5.1% CHEMICALS--4.6% Monsanto Co. 1,584,193 127,923,585 Potash Corp. of Saskatchewan, Inc. 536,020 60,259,368 Praxair, Inc. 992,205 81,390,576 -------------- 269,573,529 -------------- METALS & MINING--0.5% Xstrata plc(1) 1,460,910 26,100,696 TELECOMMUNICATION SERVICES--2.5% WIRELESS TELECOMMUNICATION SERVICES--2.5% Crown Castle International Corp.(1) 2,423,659 88,924,049 NII Holdings, Inc.(1) 1,893,113 56,414,769 -------------- 145,338,818 -------------- Total Common Stocks (Cost $4,467,002,742) 5,783,825,689 INVESTMENT COMPANIES--0.7% JPMorgan U.S. Treasury Plus Money Market Fund, Agency Shares, 0.00%(2, 3) 2,865 2,865 Oppenheimer Institutional Money Market Fund, Cl. E, 0.31%(2, 4) 41,846,663 41,846,663 -------------- Total Investment Companies (Cost $41,849,528) 41,849,528 TOTAL INVESTMENTS, AT VALUE (COST $4,508,852,270) 100.2% 5,825,675,217 -------------- Liabilities in Excess of Other Assets (0.2) (10,400,613) ---------- -------------- Net Assets 100.0% $5,815,274,604 ========== ==============
Footnotes to Statement of Investments (1.) Non-income producing security. (2.) Rate shown is the 7-day yield as of November 30, 2009. 4 | Oppenheimer Capital Appreciation Fund Oppenheimer Capital Appreciation Fund STATEMENT OF INVESTMENTS November 30, 2009 / Unaudited (3.) Interest rate is less than 0.0005%. (4.) Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended November 30, 2009, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the period in which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES AUGUST 31, 2009 ADDITIONS REDUCTIONS NOVEMBER 30, 2009 --------------- ----------- ---------- ----------------- Oppenheimer Institutional Money Market Fund, Cl. E 90,535,396 324,309,529 372,998,262 41,846,663
VALUE INCOME ----------- ------- Oppenheimer Institutional Money Market Fund, Cl. E $41,846,663 $45,744
VALUATION INPUTS Various data inputs are used in determining the value of each of the Fund's investments as of the reporting period end. These data inputs are categorized in the following hierarchy under applicable financial accounting standards: 1) Level 1-unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange) 2) Level 2-inputs other than unadjusted quoted prices that are observable for the asset (such as unadjusted quoted prices for similar assets and market corroborated inputs such as interest rates, prepayment speeds, credit risks, etc.) 3) Level 3-significant unobservable inputs (including the Manager's own judgments about assumptions that market participants would use in pricing the asset). The table below categorizes amounts as of November 30, 2009 based on valuation input level:
LEVEL 3-- LEVEL 1-- LEVEL 2-- SIGNIFICANT UNADJUSTED OTHER SIGNIFICANT UNOBSERVABLE QUOTED PRICES OBSERVABLE INPUTS INPUTS VALUE ------------- ----------------- ------------ -------------- ASSETS TABLE INVESTMENTS, AT VALUE: Common Stocks Consumer Discretionary $ 522,798,243 $ -- $-- $ 522,798,243 Consumer Staples 498,418,120 -- -- 498,418,120 Energy 502,084,093 -- -- 502,084,093 Financials 411,272,418 87,527,740 -- 498,800,158 Health Care 905,469,204 73,911,352 -- 979,380,556 Industrials 271,986,823 78,350,242 -- 350,337,065 Information Technology 1,990,994,411 -- -- 1,990,994,411 Materials 269,573,529 26,100,696 -- 295,674,225 Telecommunication Services 145,338,818 -- -- 145,338,818 Investment Companies 41,849,528 -- -- 41,849,528 -------------- -------------- --- -------------- Total Assets $5,559,785,187 $265,890,030 $-- $5,825,675,217 -------------- -------------- --- --------------
Currency contracts and forwards, if any, are reported at their unrealized appreciation/depreciation at measurement date, which represents the change in the contract's value from trade date. Futures, if any, are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. All additional assets and liabilities included in the above table are reported at their market value at measurement date. SEE THE ACCOMPANYING NOTES FOR FURTHER DISCUSSION OF THE METHODS USED IN DETERMINING VALUE OF THE FUND'S INVESTMENTS, AND A SUMMARY OF CHANGES TO THE VALUATION TECHNIQUES, IF ANY, DURING THE REPORTING PERIOD. 5 | Oppenheimer Capital Appreciation Fund Oppenheimer Capital Appreciation Fund STATEMENT OF INVESTMENTS November 30, 2009 / Unaudited NOTES TO STATEMENT OF INVESTMENTS SECURITIES VALUATION. The Fund calculates the net asset value of its shares as of the close of the New York Stock Exchange (the "Exchange"), normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading. Each investment asset or liability of the Fund is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Unadjusted quoted prices in active markets for identical securities are classified as "Level 1," inputs other than unadjusted quoted prices for an asset that are observable are classified as "Level 2" and significant unobservable inputs, including the Manager's judgment about the assumptions that a market participant would use in pricing an asset or liability are classified as "Level 3." The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. A table summarizing the Fund's investments under these levels of classification is included following the Statement of Investments. Securities are valued using unadjusted quoted market prices, when available, as supplied primarily either by portfolio pricing services approved by the Board of Trustees or dealers. Securities traded on a registered U.S. securities exchange are valued based on the last sale price of the security reported on the principal exchange on which it is traded, prior to the time when the Fund's assets are valued. Securities whose principal exchange is NASDAQ(R) are valued based on the official closing prices reported by NASDAQ prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the last sale price on the prior trading day, if it is within the spread of the current day's closing "bid" and "asked" prices, and if not, at the current day's closing bid price. A foreign security traded on a foreign exchange is valued based on the last sale price on the principal exchange on which the security is traded, as identified by the portfolio pricing service used by the Manager, prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the most recent official closing price on the principal exchange on which it is traded. Shares of a registered investment company that are not traded on an exchange are valued at that investment company's net asset value per share. Corporate, government and municipal debt instruments having a remaining maturity in excess of sixty days and all mortgage-backed securities, collateralized mortgage obligations and other asset-backed securities are valued at the mean between the "bid" and "asked" prices. "Money market-type" debt instruments with remaining maturities of sixty days or less are valued at cost adjusted by the amortization of discount or premium to maturity (amortized cost), which approximates market value. In the absence of a readily available unadjusted quoted market price, including for securities whose values have been materially affected by what the Manager identifies as a significant event occurring before the Fund's assets are valued but after the close of the securities' respective exchanges, the Manager, acting through its internal valuation committee, in good faith determines the fair valuation of that asset using consistently applied procedures under the supervision of the Board of Trustees (which reviews those fair valuations by the Manager). Those procedures include certain standardized methodologies to fair value securities. Such methodologies include, but are not limited to, pricing securities initially at cost and subsequently adjusting the value based on: changes in company specific fundamentals, changes in an appropriate securities index, or changes in the value of similar securities which may be adjusted for any discounts related to resale restrictions. When possible, such methodologies use observable market inputs such as unadjusted quoted prices of similar securities, observable interest rates, currency rates and yield curves. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. There have been no significant changes to the fair valuation methodologies during the period. FOREIGN CURRENCY TRANSLATION. The Fund's accounting records are maintained in U.S. dollars. The values of securities denominated in foreign currencies and amounts related to the purchase and sale of foreign securities and foreign investment income are translated into U.S. dollars as of the close of the Exchange, normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading. Foreign exchange rates may be valued primarily using a reliable bank, dealer or service authorized by the Board of Trustees. 6 | Oppenheimer Capital Appreciation Fund Oppenheimer Capital Appreciation Fund STATEMENT OF INVESTMENTS November 30, 2009 / Unaudited Reported net realized gains and losses from foreign currency transactions arise from sales of portfolio securities, sales and maturities of short-term securities, sales of foreign currencies, exchange rate fluctuations between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized appreciation and depreciation on the translation of assets and liabilities denominated in foreign currencies arise from changes in the values of assets and liabilities, including investments in securities at fiscal period end, resulting from changes in exchange rates. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the Fund's Statement of Operations in the annual and semiannual reports. INVESTMENT IN OPPENHEIMER INSTITUTIONAL MONEY MARKET FUND. The Fund is permitted to invest daily available cash balances in an affiliated money market fund. The Fund may invest the available cash in Class E shares of Oppenheimer Institutional Money Market Fund ("IMMF") to seek current income while preserving liquidity. IMMF is a registered open-end management investment company, regulated as a money market fund under the Investment Company Act of 1940, as amended. The Manager is also the investment adviser of IMMF. When applicable, the Fund's investment in IMMF is included in the Statement of Investments. Shares of IMMF are valued at their net asset value per share. As a shareholder, the Fund is subject to its proportional share of IMMF's Class E expenses, including its management fee. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in IMMF. FEDERAL TAX. The approximate aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of securities and other investments for federal income tax purposes as of November 30, 2009 are noted below. The primary difference between book and tax appreciation or depreciation of securities and other investments, if applicable, is attributable to the tax deferral of losses. Federal tax cost of securities $4,621,066,375 ============== Gross unrealized appreciation $1,310,953,090 Gross unrealized depreciation (106,344,248) -------------- Net unrealized appreciation $1,204,608,842 ==============
7 | Oppenheimer Capital Appreciation Fund ITEM 2. CONTROLS AND PROCEDURES. (a) Based on their evaluation of the registrant's disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270.30a-3(c)) as of 11/30/2009, the registrant's principal executive officer and principal financial officer found the registrant's disclosure controls and procedures to provide reasonable assurances that information required to be disclosed by the registrant in the reports that it files under the Securities Exchange Act of 1934 (a) is accumulated and communicated to the registrant's management, including its principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure, and (b) is recorded, processed, summarized and reported, within the time periods specified in the rules and forms adopted by the U.S. Securities and Exchange Commission. (b) There have been no significant changes in the registrant's internal controls over financial reporting that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 3. EXHIBITS. Exhibits attached hereto. SIGNATURES 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. Oppenheimer Capital Appreciation Fund By: /s/ William F. Glavin -------------------------------- William F. Glavin Principal Executive Officer Date: 01/06/2010 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/ William F. Glavin -------------------------------- William F. Glavin Principal Executive Officer Date: 01/06/2010 By: /s/ Brian W. Wixted -------------------------------- Brian W. Wixted Principal Financial Officer Date: 01/06/2010