FPA CRESCENT FUND
Portfolio of investments
September 30, 2022
(Unaudited)
| COMMON STOCKS | Shares | Fair Value | ||||||
| INTERNET MEDIA — 7.9% | ||||||||
| Alphabet, Inc. Class A(a) | 2,408,380 | $ | 230,361,547 | |||||
| Alphabet, Inc. Class C(a) | 1,819,280 | 174,923,772 | ||||||
| Meta Platforms, Inc. Class A(a) | 940,467 | 127,602,563 | ||||||
| Prosus NV (Netherlands) | 2,258,811 | 117,518,242 | ||||||
| $ | 650,406,124 | |||||||
| SEMICONDUCTOR DEVICES — 5.8% | ||||||||
| Analog Devices, Inc. | 1,605,334 | $ | 223,687,240 | |||||
| Broadcom, Inc. | 409,315 | 181,739,953 | ||||||
| NXP Semiconductors NV (Netherlands) | 468,252 | 69,071,852 | ||||||
| $ | 474,499,045 | |||||||
| INDUSTRIAL DISTRIBUTION & RENTAL — 4.7% | ||||||||
| Ferguson PLC (Britain) | 598,836 | $ | 61,638,190 | |||||
| Howmet Aerospace, Inc. | 2,850,165 | 88,155,603 | ||||||
| LG Corp. (South Korea) | 1,476,300 | 75,726,317 | ||||||
| Safran SA (France) | 938,989 | 85,438,363 | ||||||
| Univar Solutions, Inc.(a) | 3,402,938 | 77,382,810 | ||||||
| $ | 388,341,283 | |||||||
| CABLE & SATELLITE — 4.0% | ||||||||
| Charter Communications, Inc. Class A(a) | 393,387 | $ | 119,333,946 | |||||
| Comcast Corp. Class A | 7,087,694 | 207,882,065 | ||||||
| $ | 327,216,011 | |||||||
| CEMENT & AGGREGATES — 3.4% | ||||||||
| HeidelbergCement AG (Germany) | 1,012,913 | $ | 40,014,258 | |||||
| Holcim AG (Switzerland) | 5,750,850 | 235,672,934 | ||||||
| $ | 275,687,192 | |||||||
| DIVERSIFIED BANKS — 2.9% | ||||||||
| Citigroup, Inc. | 3,571,897 | $ | 148,840,948 | |||||
| Flutter Entertainment PLC (Ireland)(a) | 369,859 | 40,583,784 | ||||||
| Gulfport Energy Corp.(a) | 526,060 | 46,445,838 | ||||||
| $ | 235,870,570 | |||||||
| E-COMMERCE DISCRETIONARY — 2.6% | ||||||||
| Alibaba Group Holding Ltd. (China)(a) | 3,975,773 | $ | 39,675,573 | |||||
| Amazon.com, Inc.(a) | 1,346,173 | 152,117,549 | ||||||
| Delivery Hero SE (Germany)(a)(b) | 551,839 | 20,157,108 | ||||||
| $ | 211,950,230 | |||||||
| ELECTRICAL COMPONENTS — 2.5% | ||||||||
| TE Connectivity Ltd. (Switzerland) | 1,875,698 | $ | 207,002,031 | |||||
| $ | 207,002,031 | |||||||
| P&C INSURANCE — 2.5% | ||||||||
| American International Group, Inc. | 4,249,990 | $ | 201,789,525 | |||||
| $ | 201,789,525 | |||||||
FPA CRESCENT FUND
Portfolio of investments (Continued)
September 30, 2022
(Unaudited)
| COMMON STOCKS - Continued | Shares | Fair Value | ||||||
| APPLICATION SOFTWARE — 2.4% | ||||||||
| Activision Blizzard, Inc. | 900,174 | $ | 66,918,935 | |||||
| Entain PLC (Isle of Man) | 3,178,600 | 38,004,794 | ||||||
| Epic Games, Inc.(c)(d)(e) | 33,130 | 12,986,960 | ||||||
| Nexon Co. Ltd. (Japan) | 1,965,397 | 34,724,101 | ||||||
| Nintendo Co. Ltd. (Japan) | 1,056,160 | 42,599,447 | ||||||
| $ | 195,234,237 | |||||||
| BANKS — 2.1% | ||||||||
| Signature Bank | 71,182 | $ | 10,748,482 | |||||
| Wells Fargo & Co. | 3,961,725 | 159,340,580 | ||||||
| $ | 170,089,062 | |||||||
| INSURANCE BROKERS — 2.0% | ||||||||
| Aon PLC Class A (Britain) | 611,696 | $ | 163,855,008 | |||||
| $ | 163,855,008 | |||||||
| BASE METALS — 2.0% | ||||||||
| Glencore PLC (Switzerland) | 31,022,887 | $ | 163,025,649 | |||||
| $ | 163,025,649 | |||||||
| CHEMICALS — 1.7% | ||||||||
| International Flavors & Fragrances, Inc. | 1,574,557 | $ | 143,017,012 | |||||
| $ | 143,017,012 | |||||||
| INSTITUTIONAL BROKERAGE — 1.7% | ||||||||
| Jefferies Financial Group, Inc. | 4,697,583 | $ | 138,578,699 | |||||
| $ | 138,578,699 | |||||||
| INVESTMENT COMPANIES — 1.7% | ||||||||
| Groupe Bruxelles Lambert SA (Belgium) | 1,972,785 | $ | 137,966,969 | |||||
| $ | 137,966,969 | |||||||
| FOOD SERVICES — 1.6% | ||||||||
| JDE Peet's NV (Netherlands) | 4,041,690 | $ | 118,171,306 | |||||
| Just Eat Takeaway.com NV (Netherlands)(a)(b) | 965,437 | 14,975,614 | ||||||
| $ | 133,146,920 | |||||||
| INTEGRATED UTILITIES — 1.4% | ||||||||
| FirstEnergy Corp. | 2,241,472 | $ | 82,934,464 | |||||
| PG&E Corp.(a) | 2,529,111 | 31,613,888 | ||||||
| $ | 114,548,352 | |||||||
| MARINE SHIPPING — 1.3% | ||||||||
| Sound Holding FP (Luxembourg)(c)(d)(e)(f)(g) | 1,146,250 | $ | 109,222,092 | |||||
| $ | 109,222,092 | |||||||
FPA CRESCENT FUND
Portfolio of investments (Continued)
September 30, 2022
(Unaudited)
| COMMON STOCKS - Continued | Shares | Fair Value | ||||||
| WEALTH MANAGEMENT — 1.3% | ||||||||
| LPL Financial Holdings, Inc. | 487,988 | $ | 106,615,618 | |||||
| $ | 106,615,618 | |||||||
| MIDSTREAM - OIL & GAS — 1.1% | ||||||||
| Kinder Morgan, Inc. | 5,262,897 | $ | 87,574,606 | |||||
| $ | 87,574,606 | |||||||
| RAILROAD ROLLING STOCK — 1.1% | ||||||||
| Westinghouse Air Brake Technologies Corp. | 1,065,725 | $ | 86,696,729 | |||||
| $ | 86,696,729 | |||||||
| AUTOMOTIVE RETAILERS — 1.0% | ||||||||
| CarMax, Inc.(a) | 1,238,879 | $ | 81,790,792 | |||||
| $ | 81,790,792 | |||||||
| HOTELS, RESTAURANTS & LEISURE — 0.9% | ||||||||
| Marriott International, Inc. Class A | 502,930 | $ | 70,480,610 | |||||
| $ | 70,480,610 | |||||||
| APPAREL, FOOTWEAR & ACCESSORY DESIGN — 0.8% | ||||||||
| Cie Financiere Richemont SA Class A (Switzerland) | 672,990 | $ | 63,527,177 | |||||
| $ | 63,527,177 | |||||||
| ENTERTAINMENT CONTENT — 0.7% | ||||||||
| Netflix, Inc.(a) | 238,704 | $ | 56,200,470 | |||||
| $ | 56,200,470 | |||||||
| COMMERCIAL & RESIDENTIAL BUILDING EQUIPMENT & SYSTEMS — 0.6% | ||||||||
| Samsung C&T Corp. (South Korea) | 702,330 | $ | 50,327,460 | |||||
| $ | 50,327,460 | |||||||
| REAL ESTATE OWNERS & DEVELOPERS — 0.6% | ||||||||
| Swire Pacific Ltd. Class A (Hong Kong) | 6,199,624 | $ | 46,339,280 | |||||
| $ | 46,339,280 | |||||||
| INDUSTRIALS — 0.6% | ||||||||
| Uber Technologies, Inc.(a) | 1,747,274 | $ | 46,302,761 | |||||
| $ | 46,302,761 | |||||||
| HOME PRODUCTS STORES — 0.4% | ||||||||
| Herbalife Nutrition Ltd.(a) | 1,628,225 | $ | 32,385,395 | |||||
| $ | 32,385,395 | |||||||
FPA CRESCENT FUND
Portfolio of investments (Continued)
September 30, 2022
(Unaudited)
| COMMON STOCKS - Continued | Shares | Fair Value | ||||||
| COMPUTER HARDWARE & STORAGE — 0.4% | ||||||||
| Dell Technologies, Inc. C Shares | 862,607 | $ | 29,475,281 | |||||
| $ | 29,475,281 | |||||||
| HEALTH CARE SERVICES — 0.3% | ||||||||
| ICON PLC (Ireland)(a) | 114,967 | $ | 21,128,635 | |||||
| $ | 21,128,635 | |||||||
| OIL & GAS SERVICES & EQUIPMENT — 0.2% | ||||||||
| McDermott International Ltd.(a)(f)(g) | 46,782,420 | $ | 21,052,089 | |||||
| $ | 21,052,089 | |||||||
| REAL ESTATE INVESTMENT TRUSTS — 0.2% | ||||||||
| Vornado Realty Trust | 877,469 | $ | 20,322,182 | |||||
| $ | 20,322,182 | |||||||
| TOTAL COMMON STOCKS — 64.4% (Cost $4,430,961,095) | $ | 5,261,665,096 | ||||||
| CLOSED END FUND — 0.2% | ||||||||
| Altegrity, Inc.(c) (Cost $0) | 4,756,180 | $ | 17,978,360 | |||||
| LIMITED PARTNERSHIPS | ||||||||
| Footpath Ventures SpV IV LP (Private Credit)(c)(d)(e) | 150,000 | $ | 12,243,930 | |||||
| FPS LLC (Marine Shipping)(c)(d)(e)(f)(g) | 2,073,734 | 229,388,939 | ||||||
| FPS Shelby Holding I LLC (Marine Shipping)(c)(d)(e)(f)(g) | 107,799 | 8,876,468 | ||||||
| GACP II LP (Private Credit)(c)(d)(e) | 958,312 | 22,951,371 | ||||||
| U.S. Farming Realty Trust II LP (Real Estate)(c)(d)(e)(f) | 120,000 | 10,211,544 | ||||||
| U.S. Farming Realty Trust LP (Real Estate)(c)(d)(e)(f) | 350,000 | 3,620,715 | ||||||
| TOTAL LIMITED PARTNERSHIPS — 3.5% (Cost $229,993,622) | $ | 287,292,967 | ||||||
| PREFERRED STOCKS | ||||||||
| ENGINEERING SERVICES — 0.2% | ||||||||
| McDermott International, Inc. — 8.000%(c)(d)(e)(f) | 22,591 | $ | 13,554,380 | |||||
| $ | 13,554,380 | |||||||
| ENERGY — 0.0% | ||||||||
| Gulfport Energy Corp. — 10.000%(d)(e) | 1,345 | $ | 803,638 | |||||
| $ | 803,638 | |||||||
| TOTAL PREFERRED STOCKS — 0.2% (Cost $1,272,525) | $ | 14,358,018 | ||||||
FPA CRESCENT FUND
Portfolio of investments (Continued)
September 30, 2022
(Unaudited)
| WARRANT — 0.0% | Shares | Fair Value | ||||||
| ENERGY — 0.0% | ||||||||
| Cie Financiere Richemont SA 11/22/2023(a) (Cost $0) | 2,521,536 | $ | 1,124,431 | |||||
| $ | 1,124,431 | |||||||
| SPECIAL PURPOSE ACQUISITION COMPANIES(a) | ||||||||
| Accelerate Acquisition Corp. | 1,824 | $ | 17,948 | |||||
| African Gold Acquisition Corp. | 175,509 | 1,741,049 | ||||||
| Agile Growth Corp. | 972,411 | 9,646,317 | ||||||
| Alpha Partners Technology Merger Corp. | 40,319 | 396,739 | ||||||
| Angel Pond Holdings Corp. Class A (Cayman Islands) | 1,264,217 | 9,399,487 | ||||||
| Apollo Strategic Growth Capital II | 206,968 | 2,042,774 | ||||||
| Ares Acquisition Corp. | 494,451 | 4,904,954 | ||||||
| Atlantic Coastal Acquisition Corp. Class A | 1,238,597 | 12,163,023 | ||||||
| Atlantic Coastal Acquisition Corp. | 412,865 | 14,492 | ||||||
| Atlantic Coastal Acquisition Corp. II | 320,872 | 3,221,555 | ||||||
| BigBear.ai Holdings, Inc. | 266,952 | 40,043 | ||||||
| Biote Corp. | 1,834 | 626 | ||||||
| Broadscale Acquisition Corp. Class A | 1,046,401 | 8,254,285 | ||||||
| BurTech Acquisition Corp. | 1,007,550 | 10,065,424 | ||||||
| C5 Acquisition Corp. | 245,091 | 2,504,830 | ||||||
| Churchill Capital Corp. VII | 616,422 | 6,071,818 | ||||||
| Colonnade Acquisition Corp. II Class A | 1,032,132 | 10,238,749 | ||||||
| Colonnade Acquisition Corp. II | 206,426 | 20,643 | ||||||
| COVA Acquisition Corp. Class A | 502,327 | 3,332,960 | ||||||
| DHC Acquisition Corp. Class A | 520,584 | 5,148,576 | ||||||
| DHC Acquisition Corp. | 173,528 | 15,635 | ||||||
| Digital Transformation Opportunities Corp. | 72,255 | 708,822 | ||||||
| Disruptive Acquisition Corp. I | 1,032,135 | 10,228,458 | ||||||
| ESM Acquisition Corp. | 157 | 1,557 | ||||||
| Flame Acquisition Corp. | 1,032,145 | 10,197,593 | ||||||
| Forest Road Acquisition Corp. II | 1,242,983 | 12,218,647 | ||||||
| Fortress Value Acquisition Corp. IV | 493,906 | 4,855,096 | ||||||
| FTAC Hera Acquisition Corp. | 124,395 | 1,232,754 | ||||||
| Fusion Acquisition Corp. II | 173,927 | 1,709,702 | ||||||
| Glenfarne Merger Corp. | 1,033,214 | 10,135,829 | ||||||
| Global Partner Acquisition Corp. II | 387,688 | 3,857,496 | ||||||
| Golden Arrow Merger Corp. | 1,032,132 | 10,166,500 | ||||||
| Gores Holdings VII, Inc. | 4,846 | 47,685 | ||||||
| Gores Holdings VIII, Inc. Class A | 264,894 | 2,351,329 | ||||||
| Gores Technology Partners II, Inc. | 6,490 | 63,667 | ||||||
| GSR II Meteora Acquisition Corp. Class A | 876 | 4,311 | ||||||
| GX Acquisition Corp. II Class A | 864,261 | 6,379,351 | ||||||
| Heliogen, Inc. | 98,835 | 21,744 | ||||||
FPA CRESCENT FUND
Portfolio of investments (Continued)
September 30, 2022
(Unaudited)
| SPECIAL PURPOSE ACQUISITION COMPANIES - Continued | Shares or Principal Amount | Fair Value | ||||||
| Hudson Executive Investment Corp. III | 1,243,215 | $ | 12,220,803 | |||||
| InterPrivate IV InfraTech Partners, Inc. | 866,479 | 8,491,494 | ||||||
| Kismet Acquisition Three Corp. | 1,032,132 | 10,218,107 | ||||||
| Landcadia Holdings IV, Inc. | 1,243,001 | 12,255,990 | ||||||
| Lazard Growth Acquisition Corp. I | 37,457 | 370,450 | ||||||
| Lead Edge Growth Opportunities Ltd. | 111,893 | 1,111,097 | ||||||
| Macondray Capital Acquisition Corp. I | 1,030,833 | 10,318,638 | ||||||
| Mason Industrial Technology, Inc. | 760,239 | 7,442,740 | ||||||
| Metals Acquisition Corp. Class A | 719,870 | 5,338,758 | ||||||
| Mission Advancement Corp. | 613,285 | 6,016,326 | ||||||
| Monument Circle Acquisition Corp. | 69,903 | 689,244 | ||||||
| Northern Star Investment Corp. III | 550,747 | 5,419,350 | ||||||
| Northern Star Investment Corp. IV | 425,470 | 4,173,861 | ||||||
| Orion Acquisition Corp. | 252,217 | 2,479,293 | ||||||
| Peridot Acquisition Corp. II | 582,407 | 5,781,088 | ||||||
| Pershing Square Tontine Holdings Ltd.(d)(e) | 457,176 | — | ||||||
| Pine Technology Acquisition Corp. Class A | 967,571 | 9,520,899 | ||||||
| Pine Technology Acquisition Corp. | 322,523 | 12,901 | ||||||
| Plum Acquisition Corp. I | 969,880 | 9,592,113 | ||||||
| PowerUp Acquisition Corp. | 46,911 | 476,147 | ||||||
| Prenetics Global Ltd. | 10,692 | 4,364 | ||||||
| Ross Acquisition Corp. II | 231,224 | 2,296,054 | ||||||
| RXR Acquisition Corp. | 9,883 | 96,952 | ||||||
| Silver Spike Acquisition Corp. II Class A | 163,460 | 1,298,200 | ||||||
| Slam Corp. | 714,327 | 7,078,981 | ||||||
| Stratim Cloud Acquisition Corp. | 671,649 | 6,588,877 | ||||||
| Swvl Holdings Corp. | 27,467 | 824 | ||||||
| TCW Special Purpose Acquisition Corp. | 118,726 | 1,159,953 | ||||||
| Tio Tech A (Germany) | 297,050 | 2,934,854 | ||||||
| TLG Acquisition One Corp. | 1,242,983 | 12,255,812 | ||||||
| Twelve Seas Investment Co. II | 990,015 | 9,741,748 | ||||||
| Viking Acquisition (Norway)(c)(d)(e) | 9,562,500 | 5,854,801 | ||||||
| Virgin Orbit Holdings, Inc. | 94,559 | 28,254 | ||||||
| TOTAL SPECIAL PURPOSE ACQUISITION COMPANIES — 4.0% (Cost $329,986,024) | $ | 324,691,441 | ||||||
| BONDS & DEBENTURES | ||||||||
| CORPORATE BONDS & NOTES | ||||||||
| CONSUMER, NON-CYCLICAL — 0.0% | ||||||||
| Herbalife/HLF Financing Co. — 7.875% 9/1/2025(b) | $ | 3,739,000 | $ | 3,380,617 | ||||
| ENERGY — 0.0% | ||||||||
| Gulfport Energy Corp. — 6.000% 10/15/2024(d)(e) | $ | 18,209,000 | $ | — | ||||
| Gulfport Energy Corp. — 6.375% 5/15/2025(d)(e) | 8,822,000 | — | ||||||
| Gulfport Energy Corp. — 6.375% 1/15/2026(d)(e) | 9,128,000 | — | ||||||
| Gulfport Energy Corp. — 6.625% 5/1/2023(d)(e) | 9,417,000 | — | ||||||
FPA CRESCENT FUND
PORTFOLIO OF INVESTMENTS (Continued)
September 30, 2022
(Unaudited)
| BONDS & DEBENTURES - Continued | Principal Amount | Fair Value | ||||||
| Gulfport Energy Corp. — 8.000% 5/17/2026 | $ | 596,287 | $ | 593,305 | ||||
| $ | 593,305 | |||||||
| TOTAL CORPORATE BONDS & NOTES — 0.0% (Cost $3,448,129) | $ | 3,973,922 | ||||||
| CONVERTIBLE BONDS — 1.6% | ||||||||
| COMMUNICATIONS — 1.6% | ||||||||
| Delivery Hero SE — 1.000% 4/30/2026 (Germany) | $ | 2,600,000 | $ | 1,808,383 | ||||
| Delivery Hero SE — 1.000% 1/23/2027 (Germany) | 86,200,000 | 64,672,390 | ||||||
| Wayfair, Inc. — 0.625% 10/1/2025 | 80,394,000 | 53,864,241 | ||||||
| Zillow Group, Inc. — 1.375% 9/1/2026 | 12,336,000 | 11,922,744 | ||||||
| Zillow Group, Inc. — 2.750% 5/15/2025 | 1,703,000 | 1,548,027 | ||||||
| $ | 133,815,785 | |||||||
| TOTAL CONVERTIBLE BONDS — 1.6% (Cost $146,424,678) | $ | 133,815,785 | ||||||
| CORPORATE BANK DEBT | ||||||||
| Farfetch U.S. Holdings, Inc., 1M USD LIBOR + 6.250% — 9.290% 9/27/2027(c)(d)(h)(l) | $ | 19,580,000 | $ | 18,356,250 | ||||
| McDermott Intl Senior Exit LC — 3.000% 6/30/2024(f)(l)(m) | 19,843,000 | (8,929,350 | ) | |||||
| McDermott LC — 3.740% 12/31/2025(c)(d)(e)(f)(h)(i)(l) | 28,718,370 | 18,167,706 | ||||||
| McDermott Technology Americas, Inc., 1M USD LIBOR + 1.000% — 4.115% 6/30/2025(c)(f)(h)(l) | 33,930,812 | 15,947,482 | ||||||
| McDermott Technology Americas, Inc., 1M USD LIBOR + 3.000% — 6.115% 6/28/2024(c)(f)(h)(l) | 1,074,102 | 644,461 | ||||||
| TOTAL CORPORATE BANK DEBT — 0.6% (Cost $108,544,995) | $ | 44,186,549 | ||||||
| U.S. TREASURIES | ||||||||
| U.S. Treasury Bills — 2.284% 10/25/2022(j) | $ | 50,000,000 | $ | 49,921,555 | ||||
| U.S. Treasury Bills — 2.290% 10/11/2022(j) | 25,000,000 | 24,986,265 | ||||||
| U.S. Treasury Bills — 2.293% 10/20/2022(j) | 50,000,000 | 49,938,620 | ||||||
| U.S. Treasury Bills — 2.301% 10/6/2022(j) | 58,000,000 | 57,987,576 | ||||||
| U.S. Treasury Bills — 2.335% 10/18/2022(j) | 40,000,000 | 39,957,388 | ||||||
| U.S. Treasury Bills — 2.365% 10/27/2022(j) | 63,000,000 | 62,890,827 | ||||||
| U.S. Treasury Bills — 2.367% 11/1/2022(j) | 70,000,000 | 69,849,108 | ||||||
| U.S. Treasury Bills — 2.502% 11/3/2022(j) | 36,000,000 | 35,915,933 | ||||||
| U.S. Treasury Bills — 2.527% 11/10/2022(j) | 30,000,000 | 29,913,888 | ||||||
| U.S. Treasury Bills — 2.534% 11/8/2022(j) | 44,000,000 | 43,877,777 | ||||||
| U.S. Treasury Bills — 2.772% 11/17/2022(j) | 50,000,000 | 49,821,810 | ||||||
| U.S. Treasury Bills — 2.868% 11/29/2022(j) | 73,000,000 | 72,647,739 | ||||||
| U.S. Treasury Bills — 2.920% 11/15/2022(j) | 31,000,000 | 30,892,628 | ||||||
| U.S. Treasury Bills — 2.922% 12/1/2022(j) | 20,000,000 | 19,904,538 | ||||||
| TOTAL U.S. TREASURIES — 7.8% (Cost $638,540,526) | $ | 638,505,652 | ||||||
| TOTAL BONDS & DEBENTURES — 10.0% (Cost $896,958,328) | $ | 820,481,908 | ||||||
| TOTAL INVESTMENT SECURITIES — 82.3% (Cost $5,889,171,594) | $ | 6,727,592,221 | ||||||
FPA CRESCENT FUND
PORTFOLIO OF INVESTMENTS (Continued)
September 30, 2022
(Unaudited)
| SHORT-TERM INVESTMENTS | Principal Amount | Fair Value | ||||||
| Amazon.com, Inc. | ||||||||
| —2.392%10/4/2022 | $ | 109,000,000 | $ | 108,978,654 | ||||
| —2.392%10/7/2022 | 100,000,000 | 99,960,833 | ||||||
| —2.698%10/24/2022 | 60,000,000 | 59,898,417 | ||||||
| —2.699%10/28/2022 | 70,000,000 | 69,860,875 | ||||||
| —2.729%11/1/2022 | 38,000,000 | 37,912,304 | ||||||
| —2.749%11/2/2022 | 30,000,000 | 29,928,000 | ||||||
| —2.750%10/31/2022 | 40,000,000 | 39,910,000 | ||||||
| —2.852%11/10/2022 | 45,000,000 | 44,860,000 | ||||||
| —2.852%11/14/2022 | 50,000,000 | 49,828,889 | ||||||
| —3.005%11/14/2022 | 30,000,000 | 29,891,833 | ||||||
| —3.125%11/14/2022 | 25,000,000 | 24,906,195 | ||||||
| —3.211%11/21/2022 | 80,000,000 | 79,643,000 | ||||||
| —3.262%11/22/2022 | 35,000,000 | 34,838,222 | ||||||
| Apple, Inc. | ||||||||
| —2.338%10/6/2022 | 35,000,000 | 34,988,820 | ||||||
| —2.359%10/6/2022 | 17,000,000 | 16,994,522 | ||||||
| —2.371%10/5/2022 | 40,000,000 | 39,989,644 | ||||||
| —2.380%10/6/2022 | 61,000,000 | 60,980,175 | ||||||
| —2.381%10/11/2022 | 50,000,000 | 49,967,500 | ||||||
| —2.392%10/13/2022 | 31,000,000 | 30,975,717 | ||||||
| —2.392%10/14/2022 | 50,000,000 | 49,957,569 | ||||||
| —2.739%11/7/2022 | 37,000,000 | 36,897,705 | ||||||
| —2.790%11/9/2022 | 13,000,000 | 12,961,412 | ||||||
| —3.262%11/28/2022 | 27,000,000 | 26,860,800 | ||||||
| Nestle Finance International Ltd. | ||||||||
| —2.438%10/6/2022 | 30,000,000 | 29,990,000 | ||||||
| —2.595%10/20/2022 | 33,000,000 | 32,955,588 | ||||||
| Roche Holdings, Inc. | ||||||||
| —2.379%10/5/2022 | 20,000,000 | 19,994,800 | ||||||
| —2.381%10/12/2022 | 30,000,000 | 29,978,550 | ||||||
| —2.430%10/13/2022 | 50,000,000 | 49,960,167 | ||||||
| —2.830%11/4/2022 | 33,000,000 | 32,913,357 | ||||||
| —2.882%11/9/2022 | 35,000,000 | 34,892,696 | ||||||
| —3.047%10/17/2022 | 20,000,000 | 19,973,333 | ||||||
| Walmart, Inc. | ||||||||
| —2.471%10/12/2022 | 80,000,000 | 79,940,600 | ||||||
| —2.490%10/11/2022 | 33,000,000 | 32,977,542 | ||||||
| —2.824%10/11/2022 | 33,350,000 | 33,324,246 | ||||||
| —2.996%10/12/2022 | 20,000,000 | 19,981,972 | ||||||
| State Street Bank Repurchase Agreement — 0.83% 10/3/2022 | ||||||||
| (Dated 09/30/2022, repurchase price of $38,354,653, collateralized by $39,875,200 principal amount U.S. Treasury Bill — 0.000% 2023, fair value $39,119,086)(k) | 38,352,000 | 38,352,000 | ||||||
| TOTAL SHORT-TERM INVESTMENTS — 18.7% (Cost $1,526,225,937) | $ | 1,526,225,937 | ||||||
| TOTAL INVESTMENTS — 101.0% (Cost $7,415,397,531) | $ | 8,253,818,158 | ||||||
| Other Assets and Liabilities, net — (1.0)% | (77,913,937 | ) | ||||||
| NET ASSETS — 100.0% | $ | 8,175,904,221 | ||||||
FPA CRESCENT FUND
PORTFOLIO OF INVESTMENTS (Continued)
September 30, 2022
(Unaudited)
| (a) | Non-income producing security. |
| (b) | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, typically only to qualified institutional buyers. Unless otherwise indicated, these securities are not considered to be illiquid. |
| (c) | Restricted securities. These restricted securities constituted 6.87% of total net assets at September 30, 2022, most of which are considered liquid by the Adviser. These securities are not registered and may not be sold to the public. There are legal and/or contractual restrictions on resale. The Fund does not have the right to demand that such securities be registered. The values of these securities are determined by valuations provided by pricing services, brokers, dealers, market makers, or in good faith under policies adopted by authority of the Fund’s Board of Trustees. |
| (d) | Investments categorized as a significant unobservable input (Level 3) (See Note 1 of the Notes to Financial Statements). |
| (e) | These securities have been valued in good faith under policies adopted by authority of the Board of Trustees in accordance with the Fund's fair value procedures. These securities constituted 5.48% of total net assets at September 30, 2022. |
| (f) | Affiliated Security. |
| (g) | Controlled company. |
| (h) | Variable/Floating Rate Security — The rate shown is based on the latest available information as of September 30, 2022. For Corporate Bank Debt, the rate shown may represent a weighted average interest rate. Certain variable rate securities are not based on a published rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. |
| (i) | As of September 30, 2022 the Fund had entered into commitments to fund various delayed draw debt-related investments. Such commitments are subject to the satisfaction of certain conditions set forth in the documents governing those investments and there can be no assurance that such conditions will be satisfied. At September 30, 2022, unfunded commitments totaled $2,598,066. |
| (j) | Zero coupon bond. Coupon amount represents effective yield to maturity. |
| (k) | Security pledged as collateral. |
| (l) | For corporate bank debt, the rate shown may represent a weighted average interest rate. |
| (m) | As of September 30, 2022, the Fund had entered into commitments to fund various delayed draw limited partnership and/debt-related investments. Such commitments are subject to the satisfaction of certain conditions set forth in the documents governing those investments and there can be no assurance that such conditions will be satisfied. |
FPA CRESCENT FUND
PORTFOLIO OF INVESTMENTS (Continued)
September 30, 2022
(Unaudited)
Purchased Options
| Description | Pay/ Receive Floating Rate | Floating
Rate Index | Exercise
Rate | Expiration Date | Counterparty | Notional Amount | Premium | Fair Value | ||||||||||||||||
| Call — CMS Cap Swap(c),(d) | Receive | Maximum of [0, 30- Year — 3-Year — USD-ISDA Swap Rate — 0.04] | 0.04 | % | 2/15/2023 | Goldman Sachs International | $ | 9,204,500,000 | $ | 2,531,238 | $ | 7,317,578 | ||||||||||||
| Call — CMS Cap Swap(c),(d) | Receive | Maximum of [0, 30- Year — 3-Year — USD-ISDA Swap Rate — 0.04] | 0.04 | % | 2/22/2023 | Goldman Sachs International | 9,204,500,000 | 2,531,238 | 7,658,144 | |||||||||||||||
| Call — CMS Cap Swap(c),(d) | Receive | Maximum of [0, 30- Year — 3-Year — USD-ISDA Swap Rate — 0.04] | 0.04 | % | 3/1/2023 | Goldman Sachs International | 9,204,500,000 | 2,531,237 | 8,072,346 | |||||||||||||||
| Call — CMS Cap Swap(c),(d) | Receive | Maximum of [0, 30- Year — 3-Year — USD-ISDA Swap Rate — 0.04] | 0.04 | % | 3/8/2023 | Goldman Sachs International | 9,204,500,000 | 2,531,237 | 8,523,367 | |||||||||||||||
| Call — CMS Cap Swap(c),(d) | Receive | Maximum of [0, 30- Year — 3-Year — USD-ISDA Swap Rate — 0.04] | 0.04 | % | 3/1/2023 | Morgan Stanley | 5,062,500,000 | 1,265,625 | 4,232,250 | |||||||||||||||
| Call — CMS Cap Swap(c),(d) | Receive | Maximum of [0, 30- Year — 3-Year — USD-ISDA Swap Rate — 0.04] | 0.04 | % | 3/8/2023 | Morgan Stanley | 5,062,500,000 | 1,265,625 | 4,455,000 | |||||||||||||||
| Call — OIS Cap Swap(c),(d) | Receive | 3-Month USD-LIBOR | 0.68 | % | 1/11/2029 | Morgan Stanley | 130,030,907 | 3,519,114 | 23,298,548 | |||||||||||||||
| $ | 16,175,314 | $ | 63,557,233 | |||||||||||||||||||||
FPA CRESCENT FUND
Portfolio of investments (Continued)
September 30, 2022
(Unaudited)
Written Options
| Description | Pay/ Receive Floating Rate | Floating
Rate Index | Exercise Rate | Expiration Date | Counterparty | Notional Amount | Premium | Fair Value | ||||||||||||||||
| Put — OIS Cap Swap(c),(d) | Pay | 3-Month USD-LIBOR | 0.35 | % | 1/11/2029 | Morgan Stanley | $ | (130,030,907 | ) | $ | (3,519,114 | ) | $ | (1,037,777 | ) | |||||||||
Forward Foreign Currency Contracts
| Counterparty | Currency Purchased | Currency Sold | Settlement Date | Valuation
at September 30, 2022 | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||
| Barclays Bank PLC | USD | 16,381,014 | JPY | 2,188,700,000 | 11/17/2022 | $ | 15,188,053 | $ | 1,192,961 | $ | — | |||||||||
Total Return Swaps - Short
| Receive | Pay | Payment Frequency | Counter party | Expiration Date | Notional Amount | Value | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | ||||||||||||||||
| Green Thumb Industries, Inc. | OBFR + 1.500% | Annual | Barclays Capital, Inc. | 8/7/2023 | $ | 346,240 | $ | (438,381 | ) | - | $ | (438,381 | ) | |||||||||||
| Cresco Labs, Inc. | CDOR01M + 1.500% | Annual | Citibank N.A. | 8/8/2023 | 514,474 | (86,606 | ) | - | (86,606 | ) | ||||||||||||||
| Trulieve Cannabis Corp. | CDOR01M + 1.500% | Annual | Barclays Capital, Inc. | 8/8/2023 | 144,289 | (519,647 | ) | - | (519,647 | ) | ||||||||||||||
| Verano Holdings Corp. | CDOR01M + 1.500% | Annual | Citibank N.A. | 8/8/2023 | 336,945 | (90,221 | ) | - | (90,221 | ) | ||||||||||||||
| $ | (1,134,855 | ) | - | $ | (1,134,855 | ) | ||||||||||||||||||
FPA CRESCENT FUND
PORTFOLIO OF INVESTMENTS – RESTRICTED SECURITIES
September 30, 2022
(Unaudited)
| Issuer | Acquisition Date (s) | Cost | Fair Value | Fair
Value as a % of Net Assets | ||||||||||
| Altegrity, Inc. | 09/01/2021, 03/15/2022 | — | $ | 17,978,360 | 0.22 | % | ||||||||
| CMS CAP SWAPTION 4.000 FEB23 4.000 CALL Goldman Sachs International 4.000% 02/15/2023 | 02/26/2020 | $ | 2,531,238 | 7,317,578 | 0.09 | % | ||||||||
| CMS CAP SWAPTION 4.000 FEB23 4.000 CALL Goldman Sachs International 4.000% 02/22/2023 | 02/26/2020 | 2,531,238 | 7,658,144 | 0.09 | % | |||||||||
| CMS CAP SWAPTION 4.000 MAR23 4.000 CALL Goldman Sachs International 4.000% 03/01/2023 | 02/26/2020 | 2,531,237 | 8,072,346 | 0.10 | % | |||||||||
| CMS CAP SWAPTION 4.000 MAR23 4.000 CALL Goldman Sachs International 4.000% 03/08/2023 | 02/26/2020 | 2,531,237 | 8,523,367 | 0.10 | % | |||||||||
| CMS CAP SWAPTION 4.000 MAR23 4.000 CALL Morgan Stanley 4.000% 03/01/2023 | 02/26/2020 | 1,265,625 | 4,232,250 | 0.05 | % | |||||||||
| CMS CAP SWAPTION 4.000 MAR23 4.000 CALL Morgan Stanley 4.000% 03/08/2023 | 02/26/2020 | 1,265,625 | 4,455,000 | 0.05 | % | |||||||||
| Epic Games, Inc. | 06/25/2020 | 19,049,750 | 12,986,960 | 0.16 | % | |||||||||
| Farfetch U.S. Holdings, Inc., 1M USD LIBOR + 6.250% — 9.290% 9/27/2027 | 09/27/2022 | 18,307,300 | 18,356,250 | 0.22 | % | |||||||||
| FPS LLC (Marine Shipping) | 01/03/2022, 02/04/2022, 02/03/2022, 03/09/2022, 04/01/2022, 04/29/2022 | 188,848,513 | 229,388,939 | 2.81 | % | |||||||||
| FPS Shelby Holding I LLC (Marine Shipping) | 02/04/2020, 03/26/2020, 04/29/2020, 07/24/2020 | 10,191,935 | 8,876,468 | 0.11 | % | |||||||||
| Footpath Ventures SpV IV LP (Private Credit) | 09/24/2021 | 15,376,200 | 12,243,930 | 0.15 | % | |||||||||
| GACP II LP (Private Credit) | 01/17/2020 | 6,345,142 | 22,951,371 | 0.28 | % | |||||||||
| McDermott International, Inc. — 8.000% | 12/31/2020 | — | 13,554,380 | 0.17 | % | |||||||||
| McDermott LC — 3.740% 12/31/2025 | 03/04/2021, 03/05/2021 | 35,777,645 | 18,167,706 | 0.22 | % | |||||||||
| McDermott Technology Americas, Inc., 1M USD LIBOR + 1.000% — 4.115% 6/30/2025 | 12/31/2021, 01/31/2022 02/28/2022, 03/31/2022, 04/29/2022, 05/31/2022, 06/30/2022, 07/31/2022, 08/31/2022, 09/30/2022 | 62,017,654 | 15,947,482 | 0.20 | % | |||||||||
| McDermott Technology Americas, Inc., 1M USD LIBOR + 3.000% — 6.115% 6/28/2024 | 07/01/2020 | 1,074,101 | 644,461 | 0.01 | % | |||||||||
| OIS CAP SWAPTION 0.680 JAN29 0.680 CALL Morgan Stanley 0.680% 01/11/2029 | 10/19/2020 | 3,519,114 | 23,298,548 | 0.28 | % | |||||||||
| OIS FLOOR SWAPTION 0.350 JAN29 0.350 PUT Morgan Stanley 0.350% 01/11/2029 | 10/19/2020 | (3,519,114 | ) | (1,037,777 | ) | (0.01 | )% | |||||||
FPA CRESCENT FUND
PORTFOLIO OF INVESTMENTS – RESTRICTED SECURITIES (Continued)
September 30, 2022
(Unaudited)
| Issuer | Acquisition Date (s) | Cost | Fair Value | Fair
Value as a % of Net Assets | ||||||||||
| Sound Holding FP | 10/07/2013 | 60,882,839 | 109,222,092 | 1.34 | % | |||||||||
| U.S. Farming Realty Trust LP (Real Estate) | 11/26/2010, 01/31/2011, 03/09/2011, 04/15/2011, 05/10/2011, 06/27/2011, 08/15/2011, 10/17/2011, 10/28/2011, 11/28/2011, 01/03/2012, 01/26/2012, 04/05/2012, 07/13/2012, 12/07/2012, 08/01/2013 | — | $ | 3,620,715 | 0.04 | % | ||||||||
| U.S. Farming Realty Trust II LP (Real Estate) | 12/24/2012, 04/29/2013, 06/17/2013, 10/28/2013, 01/14/2014, 04/22/2014, 06/25/2014, 09/09/2014, 10/08/2014, 12/18/2014, 06/18/2015, 07/29/2015 | $ | 9,231,833 | 10,211,544 | 0.12 | % | ||||||||
| Viking Acquisition (Norway) | 06/03/2021 | 7,607,534 | 5,854,801 | 0.07 | % | |||||||||
| TOTAL RESTRICTED SECURITIES | $ | 447,366,646 | $ | 562,524,915 | 6.87 | % | ||||||||
NOTE 1 — Disclosure of Fair Value Measurements
The Fund uses the following methods and inputs to establish the fair value of its assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.
Equity securities are generally valued each day at the official closing price of, or the last reported sale price on, the exchange or market on which such securities principally are traded, as of the close of business on that day. If there have been no sales that day, equity securities are generally valued at the last available bid price. Securities that are unlisted and fixed-income and convertible securities listed on a national securities exchange for which the over-the-counter ("OTC") market more accurately reflects the securities’ value in the judgment of the Fund's officers, are valued at the most recent bid price. 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 NYSE. The Fund may utilize an independent fair valuation service in adjusting the valuations of foreign securities. However, most fixed income securities are generally valued at prices obtained from pricing vendors and brokers. Vendors value such securities based on one or more of the following inputs: transactions, bids, offers quotations from dealers and trading systems, spreads and other relationships observed in the markets among comparable securities, benchmarks, underlying equity of the issuer, and proprietary pricing models such as cash flows, financial or collateral performance and other reference data (includes prepayments, defaults, collateral, credit enhancements, and interest rate volatility). Currency forwards are valued at the closing currency exchange rate which is not materially different from the forward rate. Short-term corporate notes with maturities of 60 days or less at the time of purchase are valued at amortized cost.
Securities for which representative market quotations are not readily available or are considered unreliable by the Adviser are valued as determined in good faith under procedures adopted by the authority of the Fund’s Board of Trustees. Various inputs may be reviewed in order to make a good faith determination of a security’s value. These inputs include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. Investments in limited partnerships are valued, as a practical expedient, utilizing the net asset valuations provided by the underlying limited partnerships in a manner consistent with U.S. GAAP for investment companies. The Fund applies the practical expedient to its investments in limited partnerships on an investment-by-investment basis, and consistently with the Fund’s entire position in a particular investment, unless it is probable that the Fund will sell a portion of an investment at an amount different from the net asset valuation. Investments in limited partnerships are included in Level 3 of the fair value hierarchy based on the limited rights of withdrawal by the Fund as specified in the respective agreements. Fair valuations and valuations of investments that are not actively trading involve judgment and may differ materially from valuations of investments that would have been used had greater market activity occurred.
Investments in open-end investment companies are valued at their net asset value each business day and are categorized as Level 1. The investments in limited partnerships represent investments in private funds which are valued at their net asset value as a practical expedient. The net asset value of the limited partnerships has been estimated primarily based upon the pro-rata ownership of the fair value of the limited partnerships as reported by the management of the limited partnerships. Investments in private funds can never be redeemed. Instead, the nature of the investments in this category is that distributions are received through the liquidation of the underlying assets of the limited partnerships.
The Fund classifies its assets based on three valuation methodologies. Level 1 values are based on quoted market prices in active markets for identical assets. Level 2 values are based on significant observable market inputs, such as quoted prices for similar assets and quoted prices in inactive markets or other market observable inputs as noted above including spreads, cash flows, financial performance, prepayments, defaults, collateral, credit enhancements, and interest rate volatility. Level 3 values are based on significant unobservable inputs that reflect the Fund’s determination of assumptions that market participants might reasonably use in valuing the assets. The valuation levels are not necessarily an indication of the risk associated with investing in those securities. The following table presents the valuation levels of the Fund's investments as of September 30, 2022:
| Investments | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks | ||||||||||||||||
| Internet Media | $ | 532,887,882 | $ | 117,518,242 | — | $ | 650,406,124 | |||||||||
| Semiconductor Devices | 474,499,045 | — | — | 474,499,045 | ||||||||||||
| Industrial Distribution & Rental | 227,176,603 | 161,164,680 | — | 388,341,283 | ||||||||||||
| Cable & Satellite | 327,216,011 | — | — | 327,216,011 | ||||||||||||
| Cement & Aggregates | — | 275,687,192 | — | 275,687,192 | ||||||||||||
| Diversified Banks | 195,286,786 | 40,583,784 | — | 235,870,570 | ||||||||||||
| E-Commerce Discretionary | 152,117,549 | 59,832,681 | — | 211,950,230 | ||||||||||||
| Electrical Components | 207,002,031 | — | — | 207,002,031 | ||||||||||||
| P&C Insurance | 201,789,525 | — | — | 201,789,525 | ||||||||||||
| Application Software | 66,918,935 | 115,328,342 | $ | 12,986,960 | 195,234,237 | |||||||||||
| Banks | 170,089,062 | — | — | 170,089,062 | ||||||||||||
| Insurance Brokers | 163,855,008 | — | — | 163,855,008 | ||||||||||||
| Base Metals | — | 163,025,649 | — | 163,025,649 | ||||||||||||
| Chemicals | 143,017,012 | — | — | 143,017,012 | ||||||||||||
| Institutional Brokerage | 138,578,699 | — | — | 138,578,699 | ||||||||||||
| Investment Companies | — | 137,966,969 | — | 137,966,969 | ||||||||||||
| Food Services | — | 133,146,920 | — | 133,146,920 | ||||||||||||
| Integrated Utilities | 114,548,352 | — | — | 114,548,352 | ||||||||||||
| Marine Shipping | — | — | 109,222,092 | 109,222,092 | ||||||||||||
| Wealth Management | 106,615,618 | — | — | 106,615,618 | ||||||||||||
| Midstream - Oil & Gas | 87,574,606 | — | — | 87,574,606 | ||||||||||||
| Railroad Rolling Stock | 86,696,729 | — | — | 86,696,729 | ||||||||||||
| Automotive Retailers | 81,790,792 | — | — | 81,790,792 | ||||||||||||
| Hotels, Restaurants & Leisure | 70,480,610 | — | — | 70,480,610 | ||||||||||||
| Apparel, Footwear & Accessory Design | — | 63,527,177 | — | 63,527,177 | ||||||||||||
| Entertainment Content | 56,200,470 | — | — | 56,200,470 | ||||||||||||
| Commercial & Residential Building Equipment & Systems | — | 50,327,460 | — | 50,327,460 | ||||||||||||
| Real Estate Owners & Developers | — | 46,339,280 | — | 46,339,280 | ||||||||||||
| Industrials | 46,302,761 | — | — | 46,302,761 | ||||||||||||
| Home Products Stores | 32,385,395 | — | — | 32,385,395 | ||||||||||||
| Computer Hardware & Storage | 29,475,281 | — | — | 29,475,281 | ||||||||||||
| Health Care Services | 21,128,635 | — | — | 21,128,635 | ||||||||||||
| Oil & Gas Services & Equipment | 21,052,089 | — | — | 21,052,089 | ||||||||||||
| Real Estate Investment Trusts | 20,322,182 | — | — | 20,322,182 | ||||||||||||
| Closed End Fund | — | 17,978,360 | — | 17,978,360 | ||||||||||||
| Limited Partnerships | — | — | 287,292,967 | 287,292,967 | ||||||||||||
| Preferred Stocks | ||||||||||||||||
| Engineering Services | — | — | 13,554,380 | 13,554,380 | ||||||||||||
| Energy | — | — | 803,638 | 803,638 | ||||||||||||
| Warrant | ||||||||||||||||
| Energy | 1,124,431 | — | — | 1,124,431 | ||||||||||||
| Special Purpose Acquisition Companies | 318,360,493 | 476,147 | 5,854,801 | 324,691,441 | ||||||||||||
| Corporate Bonds & Notes | — | 3,973,922 | — | 3,973,922 | ||||||||||||
| Convertible Bonds | — | 133,815,785 | — | 133,815,785 | ||||||||||||
| Corporate Bank Debt | — | 7,662,593 | 36,523,956 | 44,186,549 | ||||||||||||
| U.S. Treasuries | — | 638,505,652 | — | 638,505,652 | ||||||||||||
| Short-Term Investments | — | 1,526,225,937 | — | 1,526,225,937 | ||||||||||||
| $ | 4,094,492,592 | $ | 3,693,086,772 | $ | 466,238,794 | $ | 8,253,818,158 | |||||||||
| Purchased Options (interest rate risk) | — | — | $ | 63,557,233 | $ | 63,557,233 | ||||||||||
| Written Options (interest rate risk) | — | — | (1,037,777 | ) | (1,037,777 | ) | ||||||||||
| Forward Foreign Currency Contracts (currency risk) | — | $ | 1,192,961 | — | 1,192,961 | |||||||||||
| Total Return Swaps | — | (1,134,855 | ) | — | (1,134,855 | ) | ||||||||||
| $ | — | $ | 58,106 | $ | 62,519,456 | $ | 62,577,562 | |||||||||
The following table summarizes the Fund’s Level 3 investment securities and related transactions during the period ended September 30, 2022:
| Investments | Beginning Value at December 31, 2021 | Net
Realized and Unrealized Gains (Losses) | Purchases | (Sales) | Gross Transfers In/(Out) | Ending
Value at September 30, 2022 | Net
Change in Unrealized Appreciation (Depreciation) related to Investments held at September 30, 2022 | |||||||||||||||||||||
| Common Stocks | $ | 84,884,430 | $ | 44,067,090 | — | $ | (6,742,468 | ) | — | $ | 122,209,052 | $ | 44,987,808 | |||||||||||||||
| Limited Partnerships | 151,633,431 | 58,247,705 | $ | 89,024,969 | (11,613,138 | ) | — | 287,292,967 | 58,247,705 | |||||||||||||||||||
| Preferred Stocks | 14,281,743 | 76,347 | — | (72 | ) | — | 14,358,018 | 76,275 | ||||||||||||||||||||
| Special Purpose Acquisition Companies | 7,238,930 | (1,384,129 | ) | — | — | — | 5,854,801 | (1,384,129 | ) | |||||||||||||||||||
| Corporate Bank Debt | 7,815,830 | 1,074,616 | 18,307,300 | — | $ | 9,326,210 | 36,523,956 | 1,074,616 | ||||||||||||||||||||
| Purchased Options (interest rate risk) | 23,221,610 | 80,083,687 | — | (39,748,064 | ) | — | 63,557,233 | 47,513,716 | ||||||||||||||||||||
| Written Options (interest rate risk) | (3,501,472 | ) | 1,696,513 | 767,182 | — | — | (1,037,777 | ) | (1,055,418 | ) | ||||||||||||||||||
| $ | 285,574,502 | $ | 183,861,829 | $ | 108,099,451 | $ | (58,103,742 | ) | $ | 9,326,210 | $ | 528,758,250 | $ | 149,460,573 | ||||||||||||||
Transfers of investments between different levels of the fair value hierarchy are recorded at fair value as of the end of the reporting period. There were transfers of $9,326,210 out of Level 3 into Level 2. Transfers out of Level 3 were due to change in valuation technique from recent trade activity to vendor priced.
The following table summarizes the quantitative inputs and assumptions used for items categorized as items categorized as Level 3 of the fair value hierarchy as of September 30, 2022.
| Financial Assets | Fair Value at September 30, 2022 | Valuation Technique(s) | Unobservable Inputs | Price/Range | Weighted Average | |||||||||||
| Special Purpose Acquisition Companies | $ | 5,854,801 | Restricted Security (a) | Cost | $0.61 | $ | 0.61 | |||||||||
| Corporate Bank Debt | $ | 36,523,956 | Pricing Model (b) | Quotes/Prices | $55.00 - $93.75 | $ | 74.48 | |||||||||
| Preferred Stock | $ | 14,358,018 | Pricing Model (b) | Quotes/Prices | $597.50 - $600.00 | $ | 599.86 | |||||||||
| Purchased Options (interest rate risk) | $ | 63,557,233 | Third-Party Broker Quote (c) | Quotes/Prices | $0.00 - $0.18 | $ | 0.07 | |||||||||
| Written Options (interest rate risk) | $ | (1,037,777.00 | ) | Third-Party Broker Quote (c) | Quotes/Prices | $0.01 | $ | 0.01 | ||||||||
| Common Stocks- Long | $ | 109,222,092 | Market Approach (d) | Shipping Broker Valuations | 58% | 58 | % | |||||||||
| 12,986,960 | Most Recent Capitalization (Funding) (e) | Quotes/Prices | $392.00 | $ | 392.00 | |||||||||||
| Discounts | 40% | 40 | % | |||||||||||||
| Limited Partnerships | $ | 22,951,371 | NAV as Practical Expedient (f) | Market Discount | 15% | 15 | % | |||||||||
| 238,265,407 | Market Approach (d) | Shipping Broker Valuations | 37% - 69% | 38 | % | |||||||||||
| 12,243,930 | NAV as Practical Expedient (f) | Market Discount | 20% | 20 | % | |||||||||||
| 13,832,259 | Discounted NAV (g) | Market Discount | 25% | 25 | % | |||||||||||
(a) The fair value of the investment is based on the initial purchase price. If the financial condition of the underlying assets were to deteriorate, or if the market comparables were to fall, the value of the investment could be lower.
(b) The Pricing Model technique for Level 3 securities involves recently quoted funding prices of the security.
(c) The Third Party Broker Quote technique involves obtaining an third-party broker quote for the security.
(d) The fair value of the investment is based on the market approach, which involves obtaining broker quotes for the underlying vessels based on free and clear charter rates, and further discounting those quotes for vessel-specific contracted charter rates.
(e) The fair value of the investment is based on capital funding terms. If the financial condition of the underlying assets were to deteriorate, or if the market comparables were to fall, the value of the investment could be lower.
(f) No adjustmend were made to the NAV provided by the administrator of the Limited Partnerships. Adjustments to the NAV would be considered if the practical expedient NAV was not as of the Fund's measurement date; it was probably that the Limited Partnerships would be sold at a value materially different than the reported expedient NAV; or it was determined in accordance with the Fund's valuation procedures than the Limited Partnerships are not being reported at fair value.
(g) The NAV provided by the general partner has been discounted for the possible impact from various long-term exist strategies under consideration by the general partner.
Options Contracts: An option contract is a commitment that gives the purchaser of the contract the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a specified future date. On the other hand, the writer of an option contract is obligated, upon the exercise of the option, to buy or sell an underlying asset at a specific price on or before a specified future date. A swaption is an option contract granting the owner the right to enter into an underlying swap. Inflation-capped options are options on U.S. inflation rates at a stated strike price. The seller of an inflation-capped option receives an upfront premium and in return the buyer receives the right to receive a payment at the expiration of the option if the cumulative annualized inflation rate over the life of the option is above (for caps) or below (for floors) the stated strike price. The purpose of inflation-capped options is to protect the buyer from inflation erosion above a certain rate on a given notional exposure. A floor can be used to give downside protection to investments in inflation-linked products below a certain rate on a given notional exposure. Writing put options or purchasing call options tends to increase a Fund’s exposure to the underlying instrument. Writing call options or purchasing put options tends to decrease a Fund’s exposure to the underlying instrument. When a Fund writes or purchases a call, put, or inflation-capped option, an amount equal to the premium received or paid by the Fund is recorded as a liability or an investment, respectively, and subsequently adjusted to the current market value, based on the quoted daily settlement price of the option written or purchased. Certain options may be written or purchased with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. Premiums received or paid from writing or purchasing options, which expire unexercised, are treated by a Fund on the expiration date as realized gains or losses. The difference between the premium and the amount paid or received on a closing purchase or sale transaction, including brokerage commissions, is also treated as a realized gain or loss. If an option is exercised, the premium paid or realized is added to the cost of the purchase or proceeds from the sale in determining whether the Fund has realized a gain or loss on investment transactions. A Fund, as a writer of an option, may have no control over whether the underlying instrument may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the underlying written option. In addition, an illiquid market may make it difficult for a Fund to close out an option contract. The maximum risk of loss associated with writing put options is limited to the exercised fair value of the option contract. The maximum risk of loss associated with writing call options is potentially unlimited. Listed option contracts present minimal counterparty credit risk since they are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange-traded options, guarantees the options against default. A Fund’s maximum risk of loss from counterparty credit risk related to OTC option contracts is limited to the premiums paid.
Forward foreign currency contracts: Forward foreign currency contracts are agreements to exchange one currency for another at a future date and at a specified price. The Funds’ transactions in forward foreign currency contracts are limited to transaction and portfolio hedging. The contractual amounts of forward foreign currency contracts do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered and could exceed the net unrealized value shown in the tables below. Risks arise from the possible inability of counterparties to meet the terms of their contracts and from movements in currency values. Forward foreign currency contracts are valued daily at the foreign exchange rates as of the close of the New York Stock Exchange. Unrealized appreciation or depreciation on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the foreign exchange rates at the end of the period is included in the Statement of Assets and Liabilities under the caption “Forward Foreign Currency Contracts.” Realized gains and losses and the net change in unrealized appreciation (depreciation) on forward foreign currency contracts for the year are included in the Statement of Operations under the caption “Forward Foreign Currency Contracts.”
Credit Default Swaps: The Fund enters into credit default swap contracts for investment purposes and to manage its credit risk. Credit default swap agreements involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event of a default or other credit event for the referenced entity, obligation or index. The Fund may purchase or sell protection. A seller of protection generally receives an upfront payment or periodic payments throughout the term of the swap provided there is no credit event. Such periodic payments received are accrued daily and accounted for as realized gains. If a credit event occurs, as defined under the terms of the swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. The buyer of protection generally pays an upfront premium or periodic payments throughout the term of the swap provided there is no credit event. Such periodic payments paid are accrued daily and accounted for as realized losses.
Entering into credit default swaps involves, to varying degrees, elements of credit, market and documentation risk in excess of the related amounts recognized in the Consolidated Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligations to perform or disagree as to the meaning of the contractual terms in the agreements, and that there will be unfavorable changes in net interest rates.
Total Return Swaps: A Fund investing in total return swaps is subject to the risk that there is no liquid market for these agreements, that the counterparties may default on their obligations to perform or that there may be unfavorable changes in the value of the underlying index or reference instrument (generally caused by changes in interest rates or declines in credit quality). A total return swap agreement is one in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying index or reference instrument, which includes both the income it generates and any capital gains. To the extent the total return of the index or reference instrument underlying the transaction exceeds or falls short of the offsetting interest rate obligation, a Fund will receive a payment from or make a payment to the counterparty. A Fund’s maximum risk of loss from counterparty credit risk related to total return swaps is the discounted net value of the cash flows to be received from or paid to the counterparty over the contract’s remaining life, to the extent that the amount is positive. The risk may be mitigated to some extent if a master netting arrangement between a Fund and the counterparty is in place and to the extent a Fund obtains collateral to cover a Fund’s exposure to the counterparty.
A Fund may enter into fully funded total return swaps which involves one party making an initial payment equal to the estimated value of the reference instrument. The parties to the swap then exchange respective commitments to pay or receive a net amount based on the change in the fair value of a reference instrument and a specified notional amount.