PENN CAPITAL SHORT DURATION HIGH INCOME FUND | ||||||||
PORTFOLIO OF INVESTMENTS | ||||||||
NOVEMBER 30, 2023 (Unaudited) | ||||||||
CORPORATE BONDS — 94.1% | PRINCIPAL | VALUE | ||||||
Aerospace & Defense — 3.8% | ||||||||
Bombardier, Inc., 7.230%, 6/15/2026* | $ | 290 | $ | 289,976 | ||||
Moog, Inc., 6.384%, 12/15/2027* | 630 | 584,603 | ||||||
TransDigm, Inc., 6.802%, 3/15/2026* | 170 | 168,827 | ||||||
Triumph Group, Inc., 8.024%, 3/15/2028* | 155 | 159,112 | ||||||
1,202,518 | ||||||||
Airlines — 3.2% | ||||||||
American Airlines, Inc., 5.184%, 7/15/2025* | 115 | 125,850 | ||||||
American Airlines, Inc., 7.719%, 2/15/2028* | 500 | 493,823 | ||||||
Spirit Loyalty Cayman Ltd. / Spirit IP Cayman Ltd., 5.480%, 9/20/2025* | 215 | 157,777 | ||||||
VistaJet Malta Finance PLC, 9.190%, 5/1/2027* | 260 | 219,700 | ||||||
997,150 | ||||||||
Apparel & Textile Products — 0.8% | ||||||||
Michael Kors USA, Inc., 3.581%, 11/1/2024* | 260 | 254,483 | ||||||
Auto Parts Manufacturing — 0.8% | ||||||||
Goodyear Tire & Rubber Co., 7.000%, 5/31/2025 | 255 | 259,463 | ||||||
Automobiles Manufacturing — 2.1% | ||||||||
Ford Motor Credit Co. LLC, 6.224%, 3/18/2024 | 650 | 648,697 | ||||||
Banks — 2.1% | ||||||||
Fifth Third Bancorp, 7.117%, 1/16/2024 | 215 | 214,374 | ||||||
Huntington Bancshares, Inc./OH, 8.714%, 8/6/2024 | 215 | 209,501 | ||||||
Popular, Inc., 7.299%, 3/13/2028 | 230 | 230,230 | ||||||
654,105 | ||||||||
Cable & Satellite — 2.6% | ||||||||
CCO Holdings LLC, 7.009%, 5/1/2027* | 592 | 563,262 | ||||||
DISH Network Corp., 10.042%, 11/15/2027* | 250 | 248,157 | ||||||
811,419 | ||||||||
Casinos & Gaming — 3.2% | ||||||||
Caesars Entertainment, Inc., 5.967%, 7/1/2025* | 385 | 382,784 | ||||||
International Game Technology PLC, 4.662%, 2/15/2025* | 199 | 198,963 | ||||||
Las Vegas Sands Corp., 6.361%, 8/8/2024 | 440 | 430,089 | ||||||
1,011,836 | ||||||||
Chemicals — 4.8% | ||||||||
Avient Corp., 6.039%, 5/15/2025* | 240 | 239,159 | ||||||
Methanex Corp., 3.972%, 12/1/2024 | 255 | 252,349 | ||||||
NOVA Chemicals Corp., 3.350%, 6/1/2024* | 530 | 523,981 | ||||||
Olin Corp., 6.217%, 9/15/2027 | 455 | 433,183 | ||||||
1,448,672 | ||||||||
Commercial Finance — 1.0% | ||||||||
Fortress Transportation and Infrastructure Investors LLC, 6.888%, 10/1/2025* | 92 | 91,383 | ||||||
Fortress Transportation and Infrastructure Investors LLC, 7.472%, 8/1/2027* | 200 | 207,982 | ||||||
299,365 | ||||||||
Consumer Finance — 7.3% | ||||||||
Enact Holdings, Inc., 5.326%, 8/15/2025* | 275 | 271,628 | ||||||
Navient Corp., 7.863%, 6/25/2025 | 345 | 347,488 | ||||||
OneMain Finance Corp., 7.333%, 3/15/2026 | 365 | 368,051 | ||||||
OneMain Finance Corp., 7.909%, 1/15/2028 | 375 | 364,449 | ||||||
Radian Group, Inc., 5.319%, 10/1/2024 | 575 | 563,058 | ||||||
SLM Corp., 3.657%, 10/29/2025 | 205 | 194,635 | ||||||
Starwood Property Trust, Inc., 4.603%, 12/31/2024* | 195 | 188,587 | ||||||
2,297,896 | ||||||||
Consumer Services — 1.8% | ||||||||
Arrow Bidco LLC, 10.782%, 6/15/2025* | 110 | 112,475 | ||||||
Prime Security Services Borrower LLC, 4.166%, 4/15/2024* | 434 | 431,433 | ||||||
543,908 | ||||||||
Containers & Packaging — 2.4% | ||||||||
Crown Cork & Seal Co., Inc., 3.435%, 12/15/2026 | 618 | 637,374 | ||||||
Owens-Brockway Glass Container, Inc., 6.698%, 5/13/2027* | 95 | 94,022 | ||||||
731,396 | ||||||||
Department Stores — 0.3% | ||||||||
NMG Holding Co., Inc. / Neiman Marcus Group LLC, 5.893%, 4/1/2026* | 115 | 107,725 | ||||||
Electrical Equipment Manufacturing — 1.3% | ||||||||
WESCO Distribution, Inc., 6.789%, 6/15/2025* | 408 | 408,581 | ||||||
Entertainment Content — 1.1% | ||||||||
AMC Networks, Inc., 5.000%, 4/1/2024 | 273 | 272,727 | ||||||
TEGNA, Inc., 7.439%, 3/15/2028 | 80 | 72,754 | ||||||
345,481 | ||||||||
Entertainment Resources — 2.0% | ||||||||
Live Nation Entertainment, Inc., 5.246%, 11/1/2024* | 135 | 133,481 | ||||||
SeaWorld Parks & Entertainment, Inc., 6.479%, 5/1/2025* | 270 | 273,096 | ||||||
Vail Resorts, Inc., 5.625%, 5/15/2025* | 215 | 214,384 | ||||||
620,961 | ||||||||
Exploration & Production — 5.0% | ||||||||
Chesapeake Energy Corp., 6.203%, 2/1/2026* | 175 | 171,547 | ||||||
Civitas Resources, Inc., 7.117%, 10/15/2026* | 160 | 152,581 | ||||||
Civitas Resources, Inc., 7.927%, 7/1/2028* | 150 | 153,629 | ||||||
Energy Ventures Gom LLC / EnVen Finance Corp., 9.928%, 4/15/2026* | 76 | 78,660 | ||||||
Hilcorp Energy I LP, 7.408%, 11/1/2028* | 160 | 155,674 | ||||||
Northern Oil and Gas, Inc., 7.673%, 3/1/2028* | 400 | 404,126 | ||||||
Permian Resources Operating LLC, 8.659%, 4/15/2027* | 165 | 168,515 | ||||||
SM Energy Co., 7.271%, 9/15/2026 | 185 | 182,582 | ||||||
Talos Production, Inc., 8.209%, 1/15/2026 | 85 | 87,968 | ||||||
1,555,282 | ||||||||
Financial Services — 0.9% | ||||||||
Oppenheimer Holdings, Inc., 5.500%, 10/1/2025 | 220 | 211,750 | ||||||
PRA Group, Inc., 11.192%, 2/1/2028* | 85 | 77,138 | ||||||
288,888 | ||||||||
Food & Beverage — 0.8% | ||||||||
Herbalife Nutrition Ltd. / HLF Financing, Inc., 7.875%, 9/1/2025* | 266 | 260,895 | ||||||
Forest & Paper Products Manufacturing — 0.7% | ||||||||
Mercer International, Inc., 8.183%, 1/15/2026 | 235 | 220,798 | ||||||
Hardware — 0.2% | ||||||||
Xerox Corp., 3.213%, 5/15/2024 | 50 | 49,042 | ||||||
Health Care Facilities & Services — 4.8% | ||||||||
Acadia Healthcare Co., Inc., 6.581%, 7/1/2028* | 330 | 316,154 | ||||||
HCA, Inc., 3.450%, 2/1/2025 | 465 | 462,270 | ||||||
Modivcare, Inc., 8.344%, 11/15/2025* | 105 | 102,223 | ||||||
Owens & Minor, Inc., 3.413%, 12/15/2024 | 625 | 608,787 | ||||||
1,489,434 | ||||||||
Homebuilders — 1.4% | ||||||||
Meritage Homes Corp., 5.413%, 6/1/2025 | 142 | 140,580 | ||||||
TRI Pointe Group, Inc. / TRI Pointe Homes, Inc., 2.831%, 6/15/2024 | 300 | 297,750 | ||||||
438,330 | ||||||||
Industrial Other — 0.3% | ||||||||
United Rentals North America, Inc., 6.182%, 5/15/2027 | 100 | 98,524 | ||||||
Internet Media — 2.8% | ||||||||
Match Group Holdings II LLC, 6.809%, 12/15/2027* | 615 | 588,899 | ||||||
TripAdvisor, Inc., 5.914%, 7/15/2025* | 275 | 275,927 | ||||||
864,826 | ||||||||
Machinery Manufacturing — 2.3% | ||||||||
Hillenbrand, Inc., 4.845%, 6/15/2025 | 235 | 232,091 | ||||||
Regal Rexnord Corp., 6.139%, 2/15/2026* | 180 | 179,686 | ||||||
Titan International, Inc., 8.338%, 4/30/2028 | 320 | 309,005 | ||||||
720,782 | ||||||||
Metals & Mining — 0.4% | ||||||||
Carpenter Technology Corp., 6.705%, 7/15/2028 | 135 | 132,626 | ||||||
Oil & Gas Services & Equipment — 3.7% | ||||||||
Solaris Midstream Holdings LLC, 8.425%, 4/1/2026* | 165 | 160,229 | ||||||
TechnipFMC PLC, 5.253%, 2/1/2026* | 182 | 180,120 | ||||||
Transocean Aquila Ltd., 8.001%, 9/30/2028* | 160 | 160,315 | ||||||
Transocean, Inc., 8.408%, 1/30/2027* | 150 | 156,000 | ||||||
USA Compression Partners LP / USA Compression Finance Corp., 7.765%, 9/1/2027 | 235 | 231,974 | ||||||
Weatherford International Ltd., 6.433%, 9/15/2028* | 253 | 255,530 | ||||||
1,144,168 | ||||||||
Pharmaceuticals — 0.6% | ||||||||
Teva Pharmaceutical Finance Netherlands III BV, 3.123%, 4/15/2024 | 200 | 199,351 | ||||||
Pipeline — 4.8% | ||||||||
Blue Racer Midstream LLC, 5.960%, 12/15/2025* | 255 | 257,563 | ||||||
Buckeye Partners LP, 6.518%, 3/1/2025* | 262 | 255,198 | ||||||
EQM Midstream Partners LP, 7.037%, 8/1/2024 | 351 | 343,636 | ||||||
Harvest Midstream I LP, 7.617%, 9/1/2028* | 235 | 231,566 | ||||||
New Fortress Energy, Inc., 9.497%, 9/30/2026* | 160 | 151,968 | ||||||
Venture Global LNG, Inc., 8.124%, 6/1/2028* | 250 | 247,867 | ||||||
1,487,798 | ||||||||
Power Generation — 3.1% | ||||||||
Calpine Corp., 6.483%, 6/1/2026* | 155 | 152,180 | ||||||
Calpine Corp., 7.605%, 3/15/2028* | 330 | 310,574 | ||||||
Vistra Operations Co. LLC, 6.725%, 9/1/2026* | 509 | 499,621 | ||||||
962,375 | ||||||||
Property & Casualty Insurance — 1.6% | ||||||||
NMI Holdings, Inc., 5.030%, 6/1/2025* | 490 | 492,769 | ||||||
Publishing & Broadcasting — 2.0% | ||||||||
Gray Television, Inc., 10.548%, 5/15/2027* | 330 | 299,888 | ||||||
Nexstar Media, Inc., 8.574%, 7/15/2027* | 330 | 312,450 | ||||||
612,338 | ||||||||
Real Estate — 5.0% | ||||||||
HAT Holdings I LLC, 5.510%, 4/15/2025* | 345 | 340,097 | ||||||
Park Intermediate Holdings LLC / PK Domestic Property LLC / PK Finance Co.-Issuer, 5.925%, 6/1/2025* | 252 | 253,516 | ||||||
RHP Hotel Properties LP / RHP Finance Corp., 7.247%, 7/15/2028* | 225 | 228,495 | ||||||
Service Properties Trust, 8.922%, 10/1/2024 | 135 | 134,851 | ||||||
VICI Properties LP / VICI Note Co., Inc., 3.042%, 5/1/2024* | 595 | 592,415 | ||||||
1,549,374 | ||||||||
Restaurants — 0.7% | ||||||||
Dave & Buster's, Inc., 7.529%, 11/1/2025* | 205 | 205,569 | ||||||
Retail - Consumer Discretionary — 1.7% | ||||||||
Abercrombie & Fitch Management Co., 6.807%, 7/15/2025* | 230 | 233,467 | ||||||
Bath & Body Works, Inc., 3.238%, 7/1/2025* | 268 | 280,037 | ||||||
513,504 | ||||||||
Retail - Consumer Staples — 0.4% | ||||||||
KeHE Distributors LLC, 6.366%, 10/15/2026* | 132 | 132,121 | ||||||
Software & Services — 0.8% | ||||||||
Gen Digital, Inc., 6.745%, 9/30/2027* | 235 | 236,572 | ||||||
Tobacco — 0.5% | ||||||||
Turning Point Brands, Inc., 8.357%, 2/15/2026* | 165 | 153,863 | ||||||
Transportation & Logistics — 0.6% | ||||||||
XPO, Inc., 4.954%, 5/1/2025* | 192 | 190,118 | ||||||
Travel & Lodging — 5.1% | ||||||||
Lindblad Expeditions Holdings, Inc., 8.135%, 5/15/2028* | 150 | 151,372 | ||||||
NCL Corp. Ltd., 7.354%, 2/1/2028* | 265 | 274,128 | ||||||
Royal Caribbean Cruises Ltd., 8.616%, 7/15/2027* | 555 | 533,971 | ||||||
Travel + Leisure Co., 4.301%, 10/1/2025 | 325 | 324,082 | ||||||
Travel + Leisure Co., 4.426%, 7/31/2026* | 260 | 259,887 | ||||||
1,543,440 | ||||||||
Utilities — 0.8% | ||||||||
NextEra Energy Operating Partners LP, 3.637%, 7/15/2024* | 260 | 256,523 | ||||||
Wireline Telecommunications Services — 2.5% | ||||||||
Cogent Communications Group, Inc., 7.819%, 6/15/2027* | 220 | 216,150 | ||||||
Frontier Communications Holdings LLC, 8.210%, 10/15/2027 | 595 | 558,989 | ||||||
775,139 | ||||||||
TOTAL CORPORATE BONDS (COST $29,417,935) | 29,218,105 | |||||||
NUMBER OF SHARES (000'S) | ||||||||
SHORT-TERM INVESTMENTS — 4.1% | ||||||||
Money Market Deposit Accounts — 4.1% | ||||||||
U.S. Bank Money Market Deposit Account, 3.27% (a) | 1,286 | 1,286,412 | ||||||
TOTAL MONEY MARKET DEPOSIT ACCOUNTS (COST $1,286,412) | 1,286,412 | |||||||
TOTAL SHORT-TERM INVESTMENTS (COST $1,286,412) | 1,286,412 | |||||||
TOTAL INVESTMENTS (COST $30,704,347) — 98.2% | 30,504,517 | |||||||
OTHER ASSETS IN EXCESS OF LIABILITIES — 1.8% | 556,229 | |||||||
TOTAL NET ASSETS — 100.0% | $ | 31,060,746 | ||||||
Percentages are stated as a percent of net assets. |
PLC Public Limited Company
* | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional buyers. As of November 30, 2023, total market value of Rule 144A securities is $19,452,014 or 62.7% of net assets. |
(a) | The rate shown is as of November 30, 2023. |
PENN CAPITAL SHORT DURATION HIGH INCOME FUND |
PORTFOLIO HOLDINGS SUMMARY TABLE |
NOVEMBER 30, 2023 (UNAUDITED) |
COUNTRY EXPOSURE (as a percentage of total investments) | |||||
CORPORATE BONDS | |||||
United States | 86.0 | % | |||
Canada | 2.7 | % | |||
Liberia | 1.8 | % | |||
Bermuda | 1.7 | % | |||
United Kingdom | 1.2 | % | |||
Cayman Islands | 1.0 | % | |||
Puerto Rico | 0.8 | % | |||
Netherlands | 0.7 | % | |||
SHORT-TERM INVESTMENTS | |||||
United States | 4.1 | % |
PORTFOLIO VALUATION - The Fund’s net asset value (“NAV”) is calculated once daily at the close of regular trading hours on the New York Stock Exchange (“NYSE”) (generally 4:00 p.m. Eastern time) on each day the NYSE is open. Securities held by the Fund are valued using the closing price or the last sales price on a national securities exchange or the National Association of Securities Dealers Automatic Quotation System (“NASDAQ”) market system where they are primarily traded. Equity securities traded in the over-the-counter ("OTC") market are valued at their closing prices. If there were no transactions on that day, securities traded principally on an exchange or on NASDAQ will be valued at the mean of the last bid and ask prices prior to the market close. Fixed income securities are valued using an independent pricing service, which considers such factors as security prices, yields, maturities and ratings, and are deemed representative of market values at the close of the market. Foreign securities are valued based on prices from the primary market in which they are traded, and are translated from the local currency into U.S. dollars using current exchange rates. Investments in other open-end investment companies are valued based on the NAV of those investment companies (which may use fair value pricing as discussed in their prospectuses). Options for which the primary market is a national securities exchange are valued at the last sale price on the exchange on which they are traded, or, in the absence of any sale, will be valued at the mean of the last bid and ask prices prior to the market close. Options not traded on a national securities exchange are valued at the last quoted bid price for long option positions and the closing ask price for short option positions. Forward currency exchange contracts are valued by interpolating between spot and forward currency rates as quoted by an independent pricing service. Futures contracts are generally valued using the settlement price determined by the relevant exchange. If market quotations are unavailable or deemed unreliable, securities will be valued in accordance with procedures adopted by the RBB, Fund, Inc.’s Board of Directors (the “Board”). Relying on prices supplied by pricing services or dealers or using fair valuation may result in values that are higher or lower than the values used by other investment companies and investors to price the same investments.
FAIR VALUE MEASUREMENTS - The inputs and valuation techniques used to measure the fair value of the Fund’s investments are summarized into three levels as described in the hierarchy below:
Level 1 - | Prices are determined using quoted prices in active markets for identical securities. |
Level 2 - | Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). |
Level 3 - | Prices are determined using significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). |
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used, as of Returns the end of the date range, in valuing the Fund’s investments carried at fair value:
PENN CAPITAL SHORT DURATION HIGH INCOME FUND | ||||||||||||||||
TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | |||||||||||||
Fixed Income Securities | ||||||||||||||||
Corporate Bonds | $ | 29,218,104 | $ | – | $ | 29,218,104 | $ | – | ||||||||
Total Fixed Income Securities | $ | 29,218,104 | $ | – | $ | 29,218,104 | $ | – | ||||||||
Short-Term Investments | ||||||||||||||||
Money Market Deposit Accounts | $ | 1,286,412 | $ | 1,286,412 | $ | – | $ | – | ||||||||
Total Short-Term Investments | $ | 1,286,412 | $ | 1,286,412 | $ | – | $ | – |
* Please refer to Portfolio of Investments for further details.
At the end of each quarter, management evaluates the classification of Levels 1, 2 and 3 assets and liabilities. Various factors are considered, such as changes in liquidity from the prior reporting period; whether or not a broker is willing to execute at the quoted price; the depth and consistency of prices from third party pricing services; and the existence of contemporaneous, observable trades in the market. Additionally, management evaluates the classification of Levels 1, 2 and 3 assets and liabilities on a quarterly basis for changes in listings or delistings on national exchanges.
Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Fund’s investments may fluctuate from period to period. Additionally, the fair value of investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values the Fund may ultimately realize. Further, such investments may be subject to legal and other restrictions on resale or otherwise less liquid than publicly traded securities.
For fair valuations using significant unobservable inputs, U.S. generally accepted accounting principles (“U.S. GAAP”) requires the Fund to present a reconciliation of the beginning to ending balances for reported market values that presents changes attributable to total realized and unrealized gains or losses, purchase and sales, and transfers in and out of Level 3 during the period. Transfers in and out between levels are based on values at the end of the period. A reconciliation of Level 3 investments is presented only when the Fund had an amount of Level 3 investments at the end of the reporting period that was meaningful in relation to its net assets. The amounts and reasons for Level 3 transfers are disclosed if the Fund had an amount of total transfers during the reporting period that was meaningful in relation to its net assets as of the end of the reporting period.
For the period ended November 30, 2023, the Fund had no Level 3 transfers.