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As Of Filer Filing For·On·As Docs:Size Issuer Agent 11/29/06 Legg Mason Partners Cap Fd, Inc. N-Q 9/30/06 2:100K RR Donnelley/FA → Legg Mason Partners Capital Fund, Inc. ⇒ Class A (SCCAX) — Class B (SPABX) — Class C (SCCCX) — Class I — Class O (SACPX) |
Document/Exhibit Description Pages Size 1: N-Q Saolomon Brothers Capital Fund HTML 71K 2: EX-99.CERT Certifications HTML 20K
SAOLOMON BROTHERS CAPITAL FUND |
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 811-02667
Salomon Brothers Capital Fund Inc
(Exact name of registrant as specified in charter)
125 Broad Street, New York, NY 10004
(Address of principal executive offices) (Zip code)
Robert I. Frenkel, Esq.
Legg Mason & Co., LLC
300 First Stamford Place
(Name and address of agent for service)
Registrant’s telephone number, including area code: 1-800-725-6666
Date of fiscal year end: December 31
Date of reporting period: September 30, 2006
ITEM 1. | SCHEDULE OF INVESTMENTS |
SALOMON BROTHERS
CAPITAL FUND INC
FORM N-Q
SALOMON BROTHERS CAPITAL FUND INC
Schedule of Investments (unaudited) | September 30, 2006 |
SHARES | SECURITY |
VALUE | |||
COMMON STOCKS - 98.8% | |||||
CONSUMER DISCRETIONARY - 15.0% | |||||
Leisure Equipment & Products - 1.2% | |||||
750,000 | Hasbro Inc. |
$ | 17,062,500 | ||
Media - 13.8% | |||||
1,000,000 | CBS Corp., Class B Shares |
28,170,000 | |||
1,000,000 | Clear Channel Communications Inc. |
28,850,000 | |||
3,600,000 | Time Warner Inc. |
65,628,000 | |||
1,231,390 | Warner Music Group Corp. |
31,954,571 | |||
3,750,000 | WPP Group PLC |
46,461,270 | |||
Total Media | 201,063,841 | ||||
TOTAL CONSUMER DISCRETIONARY | 218,126,341 | ||||
CONSUMER STAPLES - 1.9% | |||||
Food & Staples Retailing - 1.9% | |||||
466,286 | FHC Delaware Inc. (a)(b)* |
2,214,858 | |||
528,700 | Wal-Mart Stores Inc. |
26,075,484 | |||
TOTAL CONSUMER STAPLES | 28,290,342 | ||||
ENERGY - 11.1% | |||||
Energy Equipment & Services - 5.4% | |||||
600,000 | Cameron International Corp.* |
28,986,000 | |||
2,138,200 | Input/Output Inc.* |
21,232,326 | |||
499,400 | National-Oilwell Varco Inc.* |
29,239,870 | |||
Total Energy Equipment & Services | 79,458,196 | ||||
Oil, Gas & Consumable Fuels - 5.7% | |||||
850,000 | Anadarko Petroleum Corp. |
37,255,500 | |||
350,000 | BP PLC, ADR |
22,953,000 | |||
500,000 | Noble Energy Inc. |
22,795,000 | |||
Total Oil, Gas & Consumable Fuels | 83,003,500 | ||||
TOTAL ENERGY | 162,461,696 | ||||
FINANCIALS - 28.0% | |||||
Capital Markets - 5.7% | |||||
700,000 | Lehman Brothers Holdings Inc. |
51,702,000 | |||
405,000 | Merrill Lynch & Co. Inc. |
31,679,100 | |||
Total Capital Markets | 83,381,100 | ||||
Consumer Finance - 8.4% | |||||
1,300,000 | American Express Co. |
72,904,000 | |||
625,000 | Capital One Financial Corp. |
49,162,500 | |||
Total Consumer Finance | 122,066,500 | ||||
Diversified Financial Services - 4.0% | |||||
1,250,000 | JPMorgan Chase & Co. |
58,700,000 | |||
Insurance - 8.4% | |||||
350,000 | Arch Capital Group Ltd.* |
22,221,500 | |||
336 | Berkshire Hathaway Inc., Class A Shares* |
32,188,800 | |||
2,385,000 | Marsh & McLennan Cos. Inc. |
67,137,750 | |||
Total Insurance | 121,548,050 | ||||
Thrifts & Mortgage Finance - 1.5% | |||||
1,688,000 | Hudson City Bancorp Inc. |
22,366,000 | |||
TOTAL FINANCIALS | 408,061,650 | ||||
INDUSTRIALS - 8.1% | |||||
Aerospace & Defense - 3.0% | |||||
550,000 | L-3 Communications Holdings Inc. |
43,081,500 | |||
Construction & Engineering - 1.6% | |||||
1,000,000 | Shaw Group Inc.* |
23,640,000 | |||
See Notes to Schedule of Investments.
1
SALOMON BROTHERS CAPITAL FUND INC
Schedule of Investments (unaudited) (continued) | September 30, 2006 |
SHARES | SECURITY |
VALUE | |||||
INDUSTRIALS - 8.1% (continued) | |||||||
Industrial Conglomerates - 2.3% | |||||||
1,200,000 | Tyco International Ltd. |
$ | 33,588,000 | ||||
Machinery - 1.2% | |||||||
500,000 | Mueller Industries Inc. |
17,585,000 | |||||
TOTAL INDUSTRIALS | 117,894,500 | ||||||
INFORMATION TECHNOLOGY - 29.4% | |||||||
Communications Equipment - 13.3% | |||||||
3,454,500 | Cisco Systems Inc.* |
79,453,500 | |||||
1,492,465 | Comverse Technology Inc.* |
31,998,450 | |||||
1,300,000 | Dycom Industries Inc.* |
27,950,000 | |||||
1,300,000 | Juniper Networks Inc.* |
22,464,000 | |||||
1,300,000 | Motorola Inc. |
32,500,000 | |||||
Total Communications Equipment | 194,365,950 | ||||||
Electronic Equipment & Instruments - 0.9% | |||||||
1,000,002 | Photon Dynamics Inc.* |
13,270,026 | |||||
Internet Software & Services - 1.7% | |||||||
995,000 | Yahoo! Inc.* |
25,153,600 | |||||
IT Services - 4.6% | |||||||
2,100,000 | Accenture Ltd., Class A Shares |
66,591,000 | |||||
Semiconductors & Semiconductor Equipment - 4.0% | |||||||
1,535,979 | Freescale Semiconductor Inc., Class A Shares* |
58,444,001 | |||||
Software - 4.9% | |||||||
760,700 | Blackboard Inc.* |
20,158,550 | |||||
800,000 | Check Point Software Technologies Ltd.* |
15,240,000 | |||||
1,300,000 | Microsoft Corp. |
35,529,000 | |||||
Total Software | 70,927,550 | ||||||
TOTAL INFORMATION TECHNOLOGY | 428,752,127 | ||||||
MATERIALS - 2.3% | |||||||
Metals & Mining - 2.3% | |||||||
800,000 | Alcoa Inc. |
22,432,000 | |||||
329,100 | Reliance Steel & Aluminum Co. |
10,577,274 | |||||
TOTAL MATERIALS | 33,009,274 | ||||||
TELECOMMUNICATION SERVICES - 3.0% | |||||||
Wireless Telecommunication Services - 3.0% | |||||||
800,000 | ALLTEL Corp. |
44,400,000 | |||||
TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENT (Cost - $1,319,708,344) |
1,440,995,930 | ||||||
FACE AMOUNT |
|||||||
SHORT-TERM INVESTMENT - 1.6% | |||||||
Repurchase Agreement - 1.6% | |||||||
$ | 23,741,000 | Interest in $518,363,000 joint tri-party repurchase agreement dated 9/29/06 with Greenwich Capital Markets Inc., 5.350% due 10/2/06; Proceeds at maturity - $23,751,585; (Fully collateralized by various U.S. Government Agency Obligations, 4.221% to 7.589% due 11/1/18 to 2/1/37; Market value - $24,216,012) (Cost - $23,741,000) |
23,741,000 | ||||
TOTAL INVESTMENTS - 100.4% (Cost - $1,343,449,344#) | 1,464,736,930 | ||||||
Liabilities in Excess of Other Assets - (0.4)% |
(6,559,582 | ) | |||||
TOTAL NET ASSETS - 100.0% | $ | 1,458,177,348 | |||||
* | Non-income producing security. |
(a) | Security is valued in good faith at fair value by or under the direction of the Board of Directors (See Note 1). |
(b) | Illiquid security. |
# | Aggregate cost for federal income tax purposes is substantially the same. |
Abbreviation used in this schedule: | ||
ADR | — American Depositary Receipt |
See Notes to Schedule of Investments.
2
Notes to Schedule of Investments (unaudited)
1. Organization and Significant Accounting Policies
Salomon Brothers Capital Fund Inc (the “Fund”), a Maryland Corporation, is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as a non-diversified open-end management investment company.
The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”).
(a) Investment Valuation. Equity securities for which market quotations are available are valued at the last sale price or official closing price on the primary market or exchange on which they trade. Debt securities are valued at the mean between the bid and asked prices provided by an independent pricing service that are based on transactions in debt obligations, quotations from bond dealers, market transactions in comparable securities and various other relationships between securities. When prices are not readily available, or are determined not to reflect fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund may value these investments at fair value as determined in accordance with the procedures approved by the Fund’s Board of Directors. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADRs and futures contracts. Short-term obligations maturing within 60 days are valued at amortized cost, which approximates market value.
(b) Repurchase Agreements. When entering into repurchase agreements, it is the Fund’s policy that its custodian or a third party custodian take possession of the underlying collateral securities, the market value of which at least equals the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase transaction exceeds one business day, the value of the collateral is marked-to-market to ensure the adequacy of the collateral. If the seller defaults, and the market value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited.
(c) Foreign Currency Translation. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the respective dates of such transactions.
Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.
(d) Security Transactions. Security transactions are accounted for on a trade date basis.
2. Investments
At September 30, 2006, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:
Gross unrealized appreciation |
$ | 142,818,029 | ||
Gross unrealized depreciation |
(21,530,443 | ) | ||
Net unrealized appreciation |
$ | 121,287,586 | ||
3
ITEM 2. | CONTROLS AND PROCEDURES. |
(a) | The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934. |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are likely to materially affect the registrant’s internal control over financial reporting. |
ITEM 3. | EXHIBITS. |
Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are 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.
Salomon Brothers Capital Fund Inc | ||
By | /s/ R. JAY GERKEN | |
R. Jay Gerken | ||
Chief Executive Officer | ||
Date: November 29, 2006 |
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/ R. JAY GERKEN | |
R. Jay Gerken | ||
Chief Executive Officer | ||
Date: November 29, 2006 | ||
By | /s/ FRANCES M. GUGGINO | |
Frances M. Guggino | ||
Chief Financial Officer | ||
Date: November 29, 2006 |
This ‘N-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
Filed on / Effective on: | 11/29/06 | None on these Dates | ||
For Period End: | 9/30/06 | |||
List all Filings |