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AB Cap Fund, Inc.

AB FlexFee Core Opportunities Portfolio

Portfolio of Investments

September 30, 2019 (unaudited)

 

Company

    Shares        U.S. $ Value  

COMMON STOCKS - 91.6%

        

Health Care - 19.5%

        

Biotechnology - 9.2%

        

Alexion Pharmaceuticals, Inc. (a)

      171        $ 16,748  

Biogen, Inc. (a)

      44          10,244  

Gilead Sciences, Inc.

      277          17,556  

Regeneron Pharmaceuticals, Inc. (a)

      94          26,076  

Vertex Pharmaceuticals, Inc. (a)

             207          35,070  
       

 

 

  
             105,694  
       

 

 

  

Health Care Providers & Services - 7.0%

        

Anthem, Inc.

      65          15,606  

Cigna Corp. (a)

      68          10,322  

Quest Diagnostics, Inc.

      99          10,596  

UnitedHealth Group, Inc.

      198          43,029  
       

 

 

  
          79,553  
       

 

 

  

Pharmaceuticals - 3.3%

        

Pfizer, Inc.

      382          13,725  

Roche Holding AG (Sponsored ADR)

      660          24,057  
       

 

 

  
          37,782  
       

 

 

  
          223,029  
       

 

 

  

Communication Services - 17.5%

        

Diversified Telecommunication Services - 7.4%

        

Comcast Corp.-Class A

      776          34,982  

Verizon Communications, Inc.

      817          49,314  
       

 

 

  
          84,296  
       

 

 

  

Entertainment - 0.9%

        

Electronic Arts, Inc. (a)

      103          10,076  
       

 

 

  

Interactive Media & Services - 7.8%

        

Alphabet, Inc.-Class C (a)

      38          46,322  

Facebook, Inc.-Class A (a)

      243          43,273  
       

 

 

  
          89,595  
       

 

 

  

Media - 1.4%

        

Discovery, Inc.-Class A (a)

      606          16,138  
       

 

 

  
          200,105  
       

 

 

  

Financials - 14.1%

        

Banks - 4.7%

        

JPMorgan Chase & Co.

      253          29,776  

Wells Fargo & Co.

      471          23,757  
       

 

 

  
          53,533  
       

 

 

  

Capital Markets - 0.8%

        

TD Ameritrade Holding Corp.

      202          9,433  
       

 

 

  

Consumer Finance - 0.8%

        

Capital One Financial Corp.

      98          8,916  
       

 

 

  

Company

    Shares        U.S. $ Value  

Diversified Financial Services - 3.0%

        

Berkshire Hathaway, Inc.-Class B (a)

      164        $ 34,115  
       

 

 

  

Insurance - 4.8%

        

Allstate Corp. (The)

      174          18,910  

Fidelity National Financial, Inc.

      406          18,031  

Reinsurance Group of America, Inc.-Class A

      117          18,706  
       

 

 

  
          55,647  
       

 

 

  
             161,644  
       

 

 

  

Information Technology - 13.1%

        

Communications Equipment - 0.8%

        

F5 Networks, Inc. (a)

      63          8,847  
       

 

 

  

Electronic Equipment, Instruments & Components - 3.1%

        

Dolby Laboratories, Inc.-Class A

             339          21,913  

Keysight Technologies, Inc. (a)

      69          6,710  

Littelfuse, Inc.

      39          6,915  
       

 

 

  
          35,538  
       

 

 

  

IT Services - 4.1%

        

Akamai Technologies, Inc. (a)

      103          9,412  

Leidos Holdings, Inc.

      128          10,993  

MAXIMUS, Inc.

      102          7,880  

Visa, Inc.-Class A

      113          19,437  
       

 

 

  
          47,722  
       

 

 

  

Software - 5.1%

        

Microsoft Corp.

      421          58,532  
       

 

 

  
          150,639  
       

 

 

  

Industrials - 8.8%

        

Aerospace & Defense - 3.6%

        

Hexcel Corp.

      97          7,967  

Raytheon Co.

      171          33,548  
       

 

 

  
          41,515  
       

 

 

  

Airlines - 0.7%

        

Southwest Airlines Co.

      155          8,371  
       

 

 

  

Building Products - 0.8%

        

Allegion PLC

      83          8,603  
       

 

 

  

Machinery - 2.4%

        

Altra Industrial Motion Corp.

      317          8,779  

Crane Co.

      172          13,869  

Parker-Hannifin Corp.

      25          4,515  
       

 

 

  
          27,163  
       

 

 

  

Road & Rail - 1.3%

        

Kansas City Southern

      78          10,375  

Saia, Inc. (a)

      47          4,404  
       

 

 

  
          14,779  
       

 

 

  
          100,431  
       

 

 

  

Company

    Shares        U.S. $ Value  

Consumer Discretionary - 6.1%

        

Auto Components - 0.9%

        

Gentex Corp.

      375        $ 10,326  
       

 

 

  

Household Durables - 1.8%

        

DR Horton, Inc.

      225          11,860  

Garmin Ltd.

      99          8,384  
       

 

 

  
          20,244  
       

 

 

  

Internet & Direct Marketing Retail - 0.9%

        

Booking Holdings, Inc. (a)

      5          9,813  
       

 

 

  

Specialty Retail - 2.5%

        

Advance Auto Parts, Inc.

      59          9,758  

Home Depot, Inc. (The)

      44          10,209  

Murphy USA, Inc. (a)

             107          9,127  
       

 

 

  
          29,094  
       

 

 

  
          69,477  
       

 

 

  

Consumer Staples - 4.8%

        

Beverages - 1.1%

        

Monster Beverage Corp. (a)

      215          12,483  
       

 

 

  

Food & Staples Retailing - 3.7%

        

Walmart, Inc.

      357          42,369  
       

 

 

  
          54,852  
       

 

 

  

Real Estate - 4.1%

        

Equity Real Estate Investment Trusts (REITs) - 1.5%

        

Regency Centers Corp.

      255          17,720  
       

 

 

  

Real Estate Management & Development - 2.6%

        

CBRE Group, Inc.-Class A (a)

      563          29,845  
       

 

 

  
          47,565  
       

 

 

  

Energy - 3.6%

        

Oil, Gas & Consumable Fuels - 3.6%

        

ConocoPhillips

      295          16,809  

Phillips 66

      237          24,269  
       

 

 

  
          41,078  
       

 

 

  

Total Common Stocks
(cost $933,185)

           1,048,820  
       

 

 

  

Company

    Shares        U.S. $ Value  

SHORT-TERM INVESTMENTS - 10.6%

 

Investment Companies - 10.6%

 

AB Fixed Income Shares, Inc.-Government Money Market Portfolio-Class AB, 1.89% (b)(c)(d)
(cost $121,466)

      121,466        $ 121,466  
       

 

 

  

Total Investments - 102.2%
(cost $1,054,651) (e)

           1,170,286  

Other assets less liabilities - (2.2)%

           (24,857 ) 
       

 

 

  

Net Assets - 100.0%

         $ 1,145,429  
       

 

 

  

 

(a)

Non-income producing security.

(b)

To obtain a copy of the fund’s shareholder report, please go to the Securities and Exchange Commission’s website at www.sec.gov, or call AB at (800) 227-4618.

(c)

The rate shown represents the 7-day yield as of period end.

(d)

Affiliated investments.

(e)

As of September 30, 2019, the cost basis of investment securities owned was substantially identical for both book and tax purposes. Gross unrealized appreciation of investments was $131,836 and gross unrealized depreciation of investments was $(16,201), resulting in net unrealized appreciation of $115,635.

Glossary:

 

ADR    -    American Depositary Receipt

AB Cap Fund, Inc.

AB FlexFee Core Opportunities Portfolio

September 30, 2019 (unaudited)

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier 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 Fund’s own assumptions in determining the fair value of investments)

Where readily available market prices or relevant bid prices are not available for certain equity investments, such investments may be valued based on similar publicly traded investments, movements in relevant indices since last available prices or based upon underlying company fundamentals and comparable company data (such as multiples to earnings or other multiples to equity). Where an investment is valued using an observable input, such as another publicly traded security, the investment will be classified as Level 2. If management determines that an adjustment is appropriate based on restrictions on resale, illiquidity or uncertainty, and such adjustment is a significant component of the valuation, the investment will be classified as Level 3. An investment will also be classified as Level 3 where management uses company fundamentals and other significant inputs to determine the valuation.

The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of September 30, 2019:

 

Investments in Securities

    Level 1     Level 2     Level 3     Total  

Assets:

         

Common Stocks ^

    $     1,048,820     $             – 0  –    $             – 0  –    $     1,048,820  

Short-Term Investments:

         

Investment Companies

      121,466       – 0  –      – 0  –      121,466  
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Investments in Securities

      1,170,286       – 0  –      – 0  –      1,170,286  

Other Financial Instruments*

      – 0  –      – 0  –      – 0  –      – 0  – 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $     1,170,286     $ – 0  –    $ – 0  –    $ 1,170,286  
  

 

 

    

 

 

    

 

 

    

 

 

  

 

^

See Portfolio of Investments for sector classifications.

*

Other financial instruments are derivative instruments, such as futures, forwards and swaps, which are valued at the unrealized appreciation/(depreciation) on the instrument. Other financial instruments may also include swaps with upfront premiums, options written and swaptions written which are valued at market value.

A summary of the Fund’s transactions in AB mutual funds for the nine months ended September 30, 2019 is as follows:

 

Fund

    Market Value
12/31/18
(000)		      Purchases
at Cost
(000)		      Sales
Proceeds
(000)		      Market Value
9/30/19
(000)		      Dividend
Income
(000)		  

Government Money Market Portfolio

    $ 79      $ 314      $ 272      $ 121      $ 2