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

811-852

 

 

FPA Paramount Fund, Inc.

(Exact name of registrant as specified in charter)

 

11400 West Olympic Boulevard, Suite 1200, Los Angeles, California

 

90064

(Address of principal executive offices)

 

(Zip code)

 

J. Richard Atwood, Treasurer, FPA Paramount Fund, Inc.,

11400 West Olympic Boulevard, Suite 1200, Los Angeles, California 90064

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

(310) 473-0225

 

 

Date of fiscal year end:

September 30

 

 

 

 

Date of reporting period:

June 30, 2013

 

 



 

ITEM 1. Schedule of Investments.

 



 

FPA Paramount Fund, Inc.

Portfolio of Investments

June 30, 2013 (unaudited)

 

 

 

Shares or

 

 

 

 

 

Principal

 

 

 

COMMON STOCKS

 

Amount

 

Fair Value

 

 

 

 

 

 

 

PRODUCER DURABLE GOODS — 21.7%

 

 

 

 

 

Franklin Electric Co., Inc.

 

252,200

 

$

8,486,530

 

Graco Inc.

 

166,900

 

10,549,749

 

HNI Corporation

 

265,300

 

9,569,371

 

IDEX Corporation

 

151,350

 

8,144,144

 

Rotork plc (Great Britain)

 

37,900

 

1,538,842

 

WABCO Holdings Inc.*

 

222,200

 

16,596,118

 

Zebra Technologies Corporation (Class A)*

 

216,800

 

9,417,792

 

 

 

 

 

$

64,302,546

 

RETAILING — 20.7%

 

 

 

 

 

CarMax, Inc.*

 

430,100

 

$

19,853,416

 

L’Occitane International SA (Luxembourg)

 

1,045,000

 

2,815,961

 

O’Reilly Automotive, Inc.*

 

178,400

 

20,091,408

 

Signet Jewelers Ltd. (Bermuda)

 

277,600

 

18,718,568

 

 

 

 

 

$

61,479,353

 

BUSINESS SERVICES & SUPPLIES —17.9%

 

 

 

 

 

Aggreko plc (Great Britain)

 

192,500

 

$

4,806,706

 

Clarcor, Inc.

 

138,600

 

7,236,306

 

Copart, Inc.*

 

398,500

 

12,273,800

 

Domino Printing Sciences plc (Great Britain)

 

366,500

 

3,477,792

 

Halma plc (Great Britain)

 

719,500

 

5,508,996

 

Landauer, Inc.

 

3,650

 

176,331

 

ScanSource, Inc.*

 

416,000

 

13,312,000

 

Spirax-Sarco Engineering plc (Great Britain)

 

154,748

 

6,323,189

 

 

 

 

 

$

53,115,120

 

HEALTH CARE — 10.7%

 

 

 

 

 

bioMérieux S.A. (France)

 

61,300

 

$

5,939,424

 

Bio-Rad Laboratories, Inc.*

 

73,300

 

8,224,260

 

Life Technologies Corporation*

 

142,400

 

10,539,024

 

Sonova Holding AG (Switzerland)

 

37,600

 

3,987,217

 

Varian Medical Systems, Inc.*

 

44,500

 

3,001,525

 

 

 

 

 

$

31,691,450

 

ENERGY — 6.8%

 

 

 

 

 

FMC Technologies, Inc.*

 

199,200

 

$

11,091,456

 

Noble Corporation (Switzerland)

 

246,100

 

9,248,438

 

 

 

 

 

$

20,339,894

 

TECHNOLOGY — 6.6%

 

 

 

 

 

EVS Broadcast Equipment S.A. (Belgium)

 

95,200

 

$

6,609,479

 

Maxim Integrated Products, Inc.

 

185,800

 

5,161,524

 

Microchip Technology Incorporated

 

209,700

 

7,811,325

 

 

 

 

 

$

19,582,328

 

TRANSPORTATION — 4.4%

 

 

 

 

 

Heartland Express, Inc.

 

454,200

 

$

6,299,754

 

Knight Transportation, Inc.

 

396,600

 

6,670,812

 

 

 

 

 

$

12,970,566

 

 

 

 

 

 

 

OTHER COMMON STOCKS — 0.8%

 

 

 

$

2,280,919

 

 

 

 

 

 

 

TOTAL COMMON STOCKS — 89.6% (Cost $184,025,995)

 

 

 

$

265,762,176

 

 

 

 

 

 

 

SHORT-TERM INVESTMENTS

 

 

 

 

 

State Street Bank Repurchase Agreement — 0.01% 07/01/13
(Dated 06/28/2013, repurchase price of $8,655,007, collateralized by $10,255,000 principal amount U.S. Treasury Notes — 2.75% 2042, fair value $8,832,119)

 

$

8,655,000

 

$

8,655,007

 

ExxonMobil Corporation — 0.06% 07/08/13

 

12,000,000

 

11,999,860

 

Toyota Motor Credit Corporation — 0.07% 07/10/13

 

10,861,000

 

10,860,810

 

TOTAL SHORT-TERM INVESTMENT — 10.6% (Cost $31,515,677)

 

 

 

$

31,515,677

 

 

 

 

 

 

 

TOTAL INVESTMENTS — 100.2% (Cost $215,541,672)— Note 2

 

 

 

$

297,277,853

 

Other assets and liabilities, net — (0.2)%

 

 

 

(546,656

)

TOTAL NET ASSETS — 100.0%

 

 

 

$

296,731,197

 

 


*Non-income producing security

 



 

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 market more accurately reflects the securities’ value in the judgment of the Fund’s officers, are valued at the most recent bid price. Short-term corporate notes with maturities of 60 days or less at the time of purchase are valued at amortized cost, which approximates fair value.

 

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 authority of the Fund’s Board of Directors. 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. 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.

 

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. 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 June 30, 2013:

 

Investments

 

Level 1

 

Level 2

 

Level 3

 

Total

 

 

 

 

 

 

 

 

 

 

 

Common Stocks

 

$

265,762,176

 

 

 

 

 

$

265,762,176

 

Short-Term Investments

 

 

$

31,515,677

 

 

31,515,677

 

Total Investments

 

$

265,762,176

 

$

31,515,677

 

 

$

297,277,853

 

 

Transfers of investments between different levels of the fair value hierarchy are recorded at market value as of the end of the reporting period. There were no transfers between Levels 1, 2 or 3 during the period ended June 30, 2013.

 

NOTE 2 — Federal Income Tax

 

The aggregate cost of investment securities was $184,064,721 for Federal income tax purposes. Net unrealized depreciation for Federal income tax consists of:

 

Gross unrealized appreciation:

 

$

87,651,617

 

Gross unrealized depreciation:

 

(5,954,162

)

Net unrealized depreciation:

 

$

81,697,455

 

 


 


 

ITEM 2. CONTROLS AND PROCEDURES.

 

(a)                                  The principal executive officer and principal financial officer of the registrant have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are effective based on their evaluation of the disclosure controls and procedures as of a date within 90 days of the filing date of this report.

 

(b)                                  There have been no significant changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting.

 

ITEM 3. EXHIBITS.

 

(a)                                  Separate certification for the registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(a) under the Investment Company Act of 1940. 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.

 

FPA PARAMOUNT FUND, INC.

 

 

 

 

 

By:

/s/ ERIC S. ENDE

 

 

Eric S. Ende, President

 

 

(Principal Executive Officer)

 

 

 

Date:  August 28, 2013

 

 

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.

 

FPA PARAMOUNT FUND, INC.

 

 

 

 

 

By:

/s/ ERIC S. ENDE

 

 

Eric S. Ende, President

 

 

(Principal Executive Officer)

 

 

 

Date:  August 28, 2013

 

 

 

 

 

By:

/s/ J. RICHARD ATWOOD

 

 

J. Richard Atwood, Treasurer

 

 

(Principal Financial Officer)

 

 

 

Date: August 28, 2013

 

 


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