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Legg Mason Partners Capital Fund, Inc. – ‘N-Q’ for 9/30/06

On:  Wednesday, 11/29/06, at 10:17am ET   ·   Effective:  11/29/06   ·   For:  9/30/06   ·   Accession #:  1193125-6-243376   ·   File #:  811-02667

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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/FALegg Mason Partners Capital Fund, Inc. Class A (SCCAX) — Class B (SPABX) — Class C (SCCCX) — Class IClass O (SACPX)

Quarterly Schedule of Portfolio Holdings of a Management Investment Company   —   Form N-Q
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: N-Q         Saolomon Brothers Capital Fund                      HTML     71K 
 2: EX-99.CERT  Certifications                                      HTML     20K 


N-Q   —   Saolomon Brothers Capital Fund


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  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

Stamford, CT 06902

(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

SEPTEMBER 30, 2006

 


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

 


Dates Referenced Herein

This ‘N-Q’ Filing    Date    Other Filings
Filed on / Effective on:11/29/06None on these Dates
For Period End:9/30/06
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