Form N-CSRS ACAP Strategic Fund For: Mar 31

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

 

Investment Company Act file number         811-22312                 

 

ACAP Strategic Fund

(Exact name of registrant as specified in charter)

 

350 Madison Avenue, 20th Floor

New York, New York 10017

(Address of principal executive offices) (Zip code)

SilverBay Capital Management LLC
350 Madison Avenue, 20th Floor

New York, New York 10017

(Name and address of agent for service)

 

Registrant’s telephone number, including area code: 212-716-6840

 

Date of fiscal year end:  September 30

 

Date of reporting period:  March 31, 2026

 

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

 

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-1090. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

Item 1. Reports to Stockholders.

 

(a)

Include a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR 270.30e-1).

 

The Report to Shareholders is attached herewith.

 

ACAP STRATEGIC FUND

350 Madison Avenue, 20th Floor
New York, New York 10017

 

May 22, 2026

 

Re:

ACAP Strategic Fund (the “Fund”) — Semi-Annual Report to Shareholders

 

Dear Investor:

 

Please find enclosed the Fund’s Semi-Annual Report to Shareholders.

 

Please note that a copy of the Fund’s prospectus may be obtained by contacting your financial advisor.

 

We appreciate your continued investment and look forward to a long and mutually beneficial relationship.

 

Very truly yours,

 

ACAP STRATEGIC FUND

 

 

ACAP Strategic Fund

Financial Statements

(Unaudited)

 

 

For the Six Months Ended March 31, 2026

 

 

ACAP Strategic Fund

 

Financial Statements

(Unaudited)

 

For the Six Months Ended March 31, 2026

 

Contents

 

Statement of Assets and Liabilities	1
Schedule of Investments	2
Schedule of Purchased Options	8
Schedule of Securities Sold, Not Yet Purchased	11
Schedule of Swap Contracts	18
Statement of Operations	24
Statement of Changes in Net Assets	25
Statement of Cash Flows	26
Notes to Financial Statements	28

 

 

ACAP STRATEGIC FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

 

		March 31, 2026
Assets
Investments in securities unaffiliated issuers, at fair value (cost $5,601,319,564)		$	10,739,929,887
Deposits at brokers for securities sold, not yet purchased			2,816,197,490
Receivable for investment securities sold			1,516,511,780
Purchased options, at fair value (cost $1,272,191,476)			1,234,222,757
Cash collateral received for total return swap contracts			917,875,996
Net unrealized appreciation on total return swap contracts			824,384,445
Cash and cash equivalents (including restricted cash of $54,292)			15,312,580
Interest receivable			11,858,191
Dividends receivable			5,551,391
Other assets			114,849
Total assets			18,081,959,366
Liabilities
Securities sold, not yet purchased, at fair value (proceeds $6,047,419,044)			5,305,231,483
Payable for investment securities purchased			1,313,055,263
Due to brokers (including Hong Kong Dollars of $59,175, with a cost of $59,175)			824,443,621
Payable for shares repurchased			136,780,657
Variation margin payable			93,491,551
Due to custodian (including Euros of $1,012 with a cost of $1,012, Australian Dollars of $1,411 with a cost of $1,411 and Hong Kong Dollars of $7, with a cost of $7)			20,052,014
Management fees payable			13,752,520
Stock loan fee payable			9,541,568
Dividends payable on securities sold, not yet purchased			6,158,823
Distribution and shareholder servicing fees payable			5,192,145
Administration fees payable			2,340,989
Professional fees payable			48,184
Miscellaneous expenses payable			1,178,537
Total liabilities			7,731,267,355
Net Assets		$	10,350,692,011
Net assets
Represented by:
Shares of beneficial interest at $0.001 par value; unlimited shares authorized		$	394,669
Additional paid-in-capital			4,938,491,457
Total distributable earnings			5,411,805,885
Net Assets		$	10,350,692,011

 

		Shares issued and outstanding		Net Asset Value per share		Net Assets
Class A		273,640,547		$28.29		$	7,740,460,123
Class W		121,028,820		$21.57		$	2,610,231,888

 

The accompanying notes are an integral part of these financial statements.

 

 

ACAP STRATEGIC FUND

SCHEDULE OF INVESTMENTS (Unaudited)

 

Shares						March 31, 2026 Fair Value
				Investments in Securities—103.76%
				Common Stocks—103.74%
				Australia—0.65%
				Metal - Diversified—0.65%
	5,200,778			Lynas Rare Earths Ltd *		$	67,535,764
				Total Australia (cost $63,018,661)		$	67,535,764
				Canada—0.75%
				Transport - Rail—0.75%
	988,460			Canadian Pacific Kansas City		$	77,752,264
				Total Canada (cost $76,093,927)		$	77,752,264
				China—1.19%
				Auto - Cars / Light Trucks—0.37%
	2,869,800			BYD Co Ltd, Class H			38,726,670
				B2B / E - Commerce—0.35%
	4,389,237			Full Truck Alliance Co Ltd ADR (a)			36,430,667
				Schools—0.47%
	853,553			New Oriental Education & Technology Group Inc ADR			48,336,706
				Total China (cost $84,637,189)		$	123,494,043
				France—6.72%
				Aerospace / Defense - Equipment—6.72%
	1,406,933			Airbus SE			260,700,188
	1,350,388			Safran SA			434,723,225
				Total France (cost $356,179,885)		$	695,423,413
				Germany—6.17%
				Aerospace / Defense—0.97%
	280,096			MTU Aero Engines AG			100,045,249
				Athletic Footwear—0.48%
	313,729			adidas AG			49,396,044
				Machinery - Electric Utilities—4.72%
	2,987,778			Siemens Energy AG *			489,698,159
				Total Germany (cost $229,861,017)		$	639,139,452

 

The accompanying notes are an integral part of these financial statements.

 

 

ACAP STRATEGIC FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

 

Shares						March 31, 2026 Fair Value
				Common Stocks (continued)
				Hong Kong—0.60%
				Casino Hotels—0.30%
	6,857,000			Galaxy Entertainment Group Ltd		$	30,610,826
				E - Commerce / Products—0.30%
	247,563			Alibaba Group Holding Ltd ADR (a)			31,059,254
				Total Hong Kong (cost $72,285,230)		$	61,670,080
				Japan—3.18%
				Audio / Video Products - 1.48%
	7,641,500			Sony Group Corp			154,136,486
				Chemicals - Diversified—0.98%
	724,800			Resonac Holdings Corp			44,657,047
	1,441,000			Shin-Etsu Chemical Co Ltd			56,692,558
							101,349,605
				Life / Health Insurance—0.12%
	13,681,500			Sony Financial Group Inc			12,314,984
				Metal - Copper—0.10%
	195,200			Sumitomo Metal Mining Co Ltd			10,864,894
				Non - Ferrous Metals—0.50%
	2,478,400			JX Advanced Metals Corp			51,596,334
				Total Japan (cost $244,113,109)		$	330,262,303
				Netherlands—1.14%
				Semiconductor Equipment—1.14%
	89,058			ASML Holding NV			117,630,478
				Total Netherlands (cost $127,741,540)		$	117,630,478
				Taiwan—7.99%
				Semiconductor Components - Integrated Circuits—7.99%
	2,445,695			Taiwan Semiconductor Manufacturing Co Ltd ADR (a)			826,522,625
				Total Taiwan (cost $251,926,203)		$	826,522,625
				United States—73.93%
				Aerospace / Defense—1.95%
	603,292			RTX Corp			116,375,027
	73,645			TransDigm Group Inc (a)			85,351,609
							201,726,636
				Aerospace / Defense - Equipment—1.09%
	343,820			General Electric Co (a)			97,565,801
	595,284			Standardaero Inc *			15,376,186
							112,941,987

 

The accompanying notes are an integral part of these financial statements.

 

 

ACAP STRATEGIC FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

 

Shares						March 31, 2026 Fair Value
				Common Stocks (continued)
				United States (continued)
				Applications Software—1.94%
	541,214			Microsoft Corp (a)		$	200,341,186
				Building Products - Air & Heating—0.17%
	133,714			Johnson Controls International PLC			17,509,848
				Building Products - Cement / Aggregate—4.90%
	1,006,210			CRH PLC			105,772,795
	356,490			Martin Marietta Materials Inc (a)			209,858,533
	704,353			Vulcan Materials Co (a)			191,795,322
							507,426,650
				Chemicals - Specialty—1.34%
	1,816,131			Solstice Advanced Materials Inc			138,316,537
				Circuit Boards—0.37%
	396,190			TTM Technologies Inc *			38,596,830
				Coatings / Paint—0.46%
	149,809			Sherwin-Williams Co			48,021,275
				Commercial Services—1.38%
	198,373			Cintas Corp (a)			33,552,809
	198,303			Quanta Services Inc			108,872,313
							142,425,122
				Commercial Services - Finance—0.54%
	93,994			S&P Global Inc (a)			39,979,408
	613,151			Toast Inc *			16,254,633
							56,234,041
				Computer Aided Design—4.84%
	744,002			Cadence Design Systems Inc * (a)			206,735,836
	741,982			Synopsys Inc * (a)			294,181,023
							500,916,859
				Computer Software—0.98%
	802,757			Twilio Inc *			101,002,886
				E - Commerce / Products—5.27%
	2,620,552			Amazon.com Inc * (a)			545,782,365
				E - Commerce / Services—4.72%
	571,912			Doordash Inc, Class A *			85,872,587
	1,176,877			Expedia Group Inc (a)			271,729,131
	1,822,701			Uber Technologies Inc *			131,106,884
							488,708,602
				Electric - Generation—1.79%
	662,526			Constellation Energy Corp (a)			185,010,386
				Electric - Integrated—1.78%
	1,644,012			Entergy Corp (a)			184,721,188

 

The accompanying notes are an integral part of these financial statements.

 

 

ACAP STRATEGIC FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

 

Shares						March 31, 2026 Fair Value
				Common Stocks (continued)
				United States (continued)
				Electronic Components - Semiconductors—2.87%
	935,189			Analog Devices Inc		$	297,521,028
				Electronic Connectors—2.69%
	2,205,049			Amphenol Corp (a)			278,607,940
				Enterprise Software / Services—0.57%
	870,879			SS&C Technologies Holdings Inc			58,845,294
				Finance - Credit Card—3.86%
	372,670			Mastercard Inc, Class A (a)			186,208,292
	704,669			Visa Inc, Class A (a)			212,979,160
							399,187,452
				Finance - Other Services—1.31%
	861,654			Intercontinental Exchange Inc (a)			135,520,941
				Gas - Distribution—0.75%
	1,666,345			NiSource Inc			77,751,658
				Independent Power Producer—1.83%
	1,259,215			Vistra Corp			189,297,791
				Internet Content - Entertainment—5.06%
	915,688			Meta Platforms Inc, Class A (a)			523,892,575
				Machinery - Electric Utilities—4.69%
	859,670			BWX Technologies Inc (a)			175,793,918
	1,234,619			Vertiv Holdings Co (a)			309,370,829
							485,164,747
				Medical - Drugs—0.47%
	39,609			Madrigal Pharmaceuticals Inc *			20,734,123
	2,226,067			ORIC Pharmaceuticals Inc * (a)			28,204,269
							48,938,392
				Private Equity—0.24%
	505,300			Carlyle Group Inc			24,451,467
				REITS - Diversified—1.09%
	115,405			Equinix Inc			113,124,597
							113,124,597
				Retail - Apparel / Shoes—1.33%
	269,851			Burlington Stores Inc *			87,804,118
	228,248			Ross Stores Inc			49,445,364
							137,249,482
				Retail - Building Products—0.24%
	105,510			Lowe’s Cos Inc (a)			24,929,903
				Retail - Major Department Store—1.95%
	1,264,494			TJX Companies Inc (a)			201,939,692

 

The accompanying notes are an integral part of these financial statements.

 

 

ACAP STRATEGIC FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

 

Shares						March 31, 2026 Fair Value
				Common Stocks (continued)
				United States (continued)
				Retail - Restaurants—0.42%
	246,637			Chipotle Mexican Grill Inc * (a)		$	7,894,850
	227,694			Yum! Brands Inc (a)			35,401,863
							43,296,713
				Semiconductor Equipment—11.04%
	261,114			KLA Corp			384,466,865
	1,807,954			Lam Research Corp (a)			386,287,453
	1,253,450			Teradyne Inc			371,597,787
							1,142,352,105
				Total United States (cost $4,054,536,409)		$	7,651,754,175
				Uruguay—1.42%
				E - Commerce / Services—1.42%
	84,963			MercadoLibre Inc *			146,902,726
				Total Uruguay (cost $39,083,830)			146,902,726
				Total Common Stocks (cost $5,599,477,000)		$	10,738,087,323
				Short-Term Securities—0.02%
				United States—0.02%
	1,842,564			Dreyfus Treasury Obligations Cash Management, Institutional Shares, 3.54% (a) (b)		$	1,842,564
				Total United States (cost $1,842,564)		$	1,842,564
				Total Short-Term Securities (cost $1,842,564)		$	1,842,564
				Total Investments in Securities (cost $5,601,319,564)—103.76%		$	10,739,929,887
				Other Liabilities in Excess of Assets—-3.76%			(389,237,876	)
				Net Assets—100.00%		$	10,350,692,011

 

 

(a)

Partially or wholly held in a pledged account at the Custodian as collateral for securities sold, not yet purchased.

 

(b)

Money market fund; interest rate reflects seven-day effective yield on March 31, 2026.

 

*

Non-income producing security.

 

ADR	American Depositary Receipt

 

REITS

Real Estate Investment Trusts

 

The accompanying notes are an integral part of these financial statements.

 

 

ACAP STRATEGIC FUND

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

 

 

The accompanying notes are an integral part of these financial statements.

 

 

ACAP STRATEGIC FUND

SCHEDULE OF PURCHASED OPTIONS (Unaudited)

 

Notional Amount (USD)				Contracts						March 31, 2026 Fair Value
								Purchased Options—11.92%
								Equity Options—11.91%
								Equity Call Options—6.93%
								Canada—0.67%
								Internet Application Software—0.67%
$	168,334,000				19,804			Shopify Inc, Class A , 05/15/2026, $85.00		$	69,165,470
								Total Canada (cost $71,779,822)		$	69,165,470
								Taiwan—1.00%
								Semiconductor Components - Integrated Circuits—1.00%
	586,560,000				19,552			Taiwan Semiconductor Manufacturing Co Ltd ADR, 06/18/2026, $300.00			104,016,639
								Total Taiwan (cost $96,254,945)		$	104,016,639
								United States—5.26%
								Auto - Cars / Light Trucks—0.11%
	217,880,000				5,447			Tesla Inc, 06/18/2026, $400.00			11,002,939
								Casino Hotels—0.20%
	70,385,000				14,077			Las Vegas Sands Corp, 06/18/2026, $50.00			9,396,398
	64,134,000				7,126			Wynn Resorts Ltd, 06/18/2026, $90.00			11,205,635
											20,602,033
								Computers—0.35%
	430,728,000				17,947			Apple Inc, 05/15/2026, $240.00			36,297,807
								E - Commerce / Products—0.25%
	204,307,000				10,753			Amazon.com Inc, 05/15/2026, $190.00			26,344,850
								E - Commerce / Services—0.38%
	315,350,000				742			Booking Holdings Inc, 06/18/2026, $4,250.00			22,827,630
	114,927,000				7,926			Doordash Inc, Class A, 06/18/2026, $145.00			16,268,115
											39,095,745
								Electronic Components - Semiconductors—3.20%
	178,272,000				9,904			Advanced Micro Devices Inc, 06/18/2026, $180.00			35,159,200
	333,840,000				11,128			Broadcom Inc, 06/18/2026, $300.00			38,864,540
	138,664,000				34,666			Intel Corp, 06/18/2026, $40.00			26,259,495
	190,063,500				34,557			Microchip Technology Inc, 06/18/2026, $55.00			41,295,615
	693,322,000				49,523			NVIDIA Corp, 06/18/2026, $140.00			190,539,743
											332,118,593
								Enterprise Software / Services—0.17%
	230,299,000				14,858			Palantir Technologies Inc, 06/18/2026, $155.00			17,309,570

 

The accompanying notes are an integral part of these financial statements.

 

 

ACAP STRATEGIC FUND

SCHEDULE OF PURCHASED OPTIONS (Unaudited) (continued)

 

Notional Amount (USD)				Contracts						March 31, 2026 Fair Value
								Equity Call Options (continued)
								United States (continued)
								Hotels & Motels—0.60%
$	197,120,000				7,040			Hilton Worldwide Holdings Inc, 06/18/2026, $280.00		$	24,640,000
	225,881,000				7,789			Marriott International Inc, Class A, 06/18/2026, $290.00			37,075,640
											61,715,640
								Total United States (cost $635,824,812)		$	544,487,177
								Total Equity Call Options (cost $803,859,579)		$	717,669,286
								Equity Put Options—4.98%
								United States—4.98%
								Growth & Income - Large Cap—2.15%
	3,332,820,000				55,547			SPDR S&P 500 ETF Trust, 09/18/2026, $600.00			107,233,484
	2,701,440,000				42,880			SPDR S&P 500 ETF Trust, 09/18/2026, $630.00			115,411,520
											222,645,004
								Machinery - Construction & Mining—0.10%
	138,670,000				1,981			Caterpillar Inc, 06/18/2026, $700.00			10,157,578
								Sector Fund - Technology—2.58%
	645,477,940				11,230			Invesco QQQ Trust Series 1, 06/18/2026, $574.78			26,182,745
	2,433,618,000				45,067			Invesco QQQ Trust Series 1, 09/18/2026, $540.00			104,780,775
	2,370,630,000				41,590			Invesco QQQ Trust Series 1, 09/18/2026, $570.00			135,333,860
											266,297,380
								Semiconductor Equipment—0.15%
	133,515,000				989			KLA Corp, 05/15/2026, $1,350.00			6,438,390
	127,280,000				6,364			Lam Research Corp, 05/15/2026, $200.00			9,243,710
											15,682,100
								Total United States (cost $462,263,184)		$	514,782,062
								Total Equity Put Options (cost $462,263,184)		$	514,782,062
								Total Equity Options (cost $1,266,122,763)		$	1,232,451,348
								Currency Call Options - 0.01%
								United States - 0.01%
								Currency - 0.01%

 

										Counterparty
	242,492,273				242,492,273			USD / BRL, 06/18/2026, $5.80		Merrill Lynch Professional Clearing Corp			1,770,444
	183,964,644				183,964,644			USD / CNH, 06/18/2026, $7.70		Merrill Lynch Professional Clearing Corp			965
								Total United States (cost $6,068,713)				$	1,771,409
								Total Currency Call Options (cost $6,068,713)				$	1,771,409
								Total Purchased Options (cost $1,272,191,476)				$	1,234,222,757

 

ADR	American Depositary Receipt
BRL	Brazilian Real
CNH	Chinese Renminbi Yuan
ETF	Exchange Traded Fund
SPDR	Standard & Poor’s Depositary Receipts
USD	United States Dollar

 

The accompanying notes are an integral part of these financial statements.

 

 

ACAP STRATEGIC FUND

SCHEDULE OF PURCHASED OPTIONS (Unaudited) (concluded)

 

 

The accompanying notes are an integral part of these financial statements.

 

 

ACAP STRATEGIC FUND

SCHEDULE OF SECURITIES SOLD, NOT YET PURCHASED (Unaudited)

 

Shares						March 31, 2026 Fair Value
				Securities Sold, Not Yet Purchased—51.25%
				Common Stocks—51.25%
				Belgium—0.23%
				Brewery—0.23%
	346,588			Anheuser-Busch InBev SA/NV		$	24,042,810
				Total Belgium (proceeds $21,193,720)		$	24,042,810
				Canada—2.36%
				Apparel Manufacturers—0.05%
	91,524			Gildan Activewear Inc			5,093,311
				Enterprise Software / Services—0.08%
	395,386			Open Text Corp			8,793,385
				Internet Application Software—1.94%
	1,691,234			Shopify Inc			200,614,177
				Medical - Drugs—0.00%
	15,956			Canopy Growth Corp			15,145
				Private Equity—0.29%
	726,760			Brookfield Corp			29,411,977
				Total Canada (proceeds $283,401,173)		$	243,927,995
				China—1.16%
				Auto - Cars / Light Trucks—0.40%
	2,230,812			NIO Inc ADR			13,451,796
	1,609,520			XPeng Inc ADR			27,538,887
							40,990,683
				Internet Content - Information / Networks —0.59%
	1,210,067			Bilibili Inc-Sponsored ADR			27,299,112
	5,948,500			Kuaishou Technology			34,233,351
							61,532,463
				Retail - Drug Store—0.03%
	2,367,827			Ping An Healthcare and Technology Co Ltd			3,479,167
				Wireless Equipment—0.14%
	3,388,200			Xiaomi Corp, Class B			13,725,317
				Total China (proceeds $137,422,735)		$	119,727,630
				France—1.05%
				Computer Services—0.36%
	323,790			Capgemini SE			37,493,619
				Cosmetics & Toiletries—0.31%
	79,221			L’Oreal SA			31,888,122
				Power Conversion / Supply Equipment—0.38%
	148,569			Schneider Electric SE			39,217,613
				Total France (proceeds $137,323,299)		$	108,599,354

 

The accompanying notes are an integral part of these financial statements.

 

 

ACAP STRATEGIC FUND

SCHEDULE OF SECURITIES SOLD, NOT YET PURCHASED (Unaudited) (continued)

 

Shares						March 31, 2026 Fair Value
				Common Stocks (continued)
				Germany—0.24%
				Auto - Cars / Light Trucks—0.24%
	272,381			Bayerische Motoren Werke AG		$	24,479,316
				Total Germany (proceeds $24,561,899)		$	24,479,316
				Hong Kong—0.14%
				Electric - Integrated—0.14%
	1,839,300			Power Assets Holdings Ltd			14,322,245
				Total Hong Kong (proceeds $12,364,223)		$	14,322,245
				India—0.16%
				Computer Services—0.16%
	1,206,585			Infosys Ltd ADR			16,300,963
				Total India (proceeds $20,678,141)		$	16,300,963
				Ireland—2.15%
				Building Products - Air & Heating—0.42%
	104,001			Trane Technologies PLC			43,341,377
				Computer Services—0.46%
	242,127			Accenture PLC, Class A			48,011,363
				Electronic Components - Miscellaneous—0.42%
	209,239			TE Connectivity PLC			43,735,136
				Power Conversion / Supply Equipment—0.85%
	245,807			Eaton Corp PLC			87,917,790
				Total Ireland (proceeds $248,595,868)		$	223,005,666
				Israel—0.50%
				Applications Software—0.07%
	99,791			Monday.com Ltd			6,896,556
				Auto / Truck Parts & Equipment - Original—0.06%
	947,032			Mobileye Global Inc, Class A			6,506,110
				Computer Data Security - 0.37%
	267,367			Check Point Software Technologies Ltd			38,193,376
				Total Israel (proceeds $83,669,148)		$	51,596,042
				Italy - 0.71%
				Auto - Cars / Light Trucks—0.71%
	217,185			Ferrari NV			73,506,263
				Total Italy (proceeds $88,124,887)		$	73,506,263

 

The accompanying notes are an integral part of these financial statements.

 

 

ACAP STRATEGIC FUND

SCHEDULE OF SECURITIES SOLD, NOT YET PURCHASED (Unaudited) (continued)

 

Shares						March 31, 2026 Fair Value
				Common Stocks (continued)
				Netherlands - 0.57%
				Auto - Cars / Light Trucks—0.10%
	1,485,376			Stellantis NV		$	10,531,316
				Semiconductor Components—Integrated Circuits - 0.47%
	247,563			NXP Semiconductors NV			48,735,252
				Total Netherlands (proceeds $70,034,107)		$	59,266,568
				Switzerland—0.60%
				Computers - Peripheral Equipment—0.22%
	250,039			Logitech International SA			22,783,554
				Medical - Drugs—0.38%
	258,407			Novartis AG ADR			39,471,669
				Total Switzerland (proceeds $55,436,971)		$	62,255,223
				Thailand - 0.37%
				Diversified Manufacturing Operations—0.37%
	74,286			Fabrinet			38,741,635
				Total Thailand (proceeds $32,228,888)		$	38,741,635
				United Kingdom—1.84%
				Beverages - Wine / Spirits—0.48%
	668,419			Diageo PLC			49,763,795
				Electronic Components - Semiconductors—1.36%
	927,971			ARM Holdings PLC ADR			140,383,453
				Total United Kingdom (proceeds $184,128,055)		$	190,147,248
				United States—39.17%
				Advertising Agencies—0.67%
	918,552			Omnicom Group Inc			69,176,151
				Appliances—0.35%
	680,300			Whirlpool Corp			36,681,776
				Applications Software—0.10%
	198,049			Elastic NV			9,900,470
				Auto - Cars / Light Trucks—2.49%
	4,846,748			Ford Motor Co			55,931,472
	544,240			Tesla Inc			202,321,220
							258,252,692
				Beverages - Non-Alcoholic—0.22%
	316,014			Monster Beverage Corp			22,898,374
				Brewery—0.79%
	346,177			Constellation Brands Inc			51,926,550
	693,175			Molson Coors Beverage Co			29,848,116
							81,774,666

 

The accompanying notes are an integral part of these financial statements.

 

 

ACAP STRATEGIC FUND

SCHEDULE OF SECURITIES SOLD, NOT YET PURCHASED (Unaudited) (continued)

 

Shares						March 31, 2026 Fair Value
				Common Stocks (continued)
				United States (continued)
				Cable / Satellite TV—0.83%
	395,746			Charter Communications Inc, Class A		$	85,433,646
				Cellular Telecommunications—1.23%
	606,238			T-Mobile US Inc			127,328,167
				Commercial Banks - Southern US—0.69%
	2,720,362			Regions Financial Corp			71,055,855
				Commercial Services - Finance—1.28%
	653,728			Global Payments Inc			43,995,894
	1,057,596			H&R Block Inc			33,568,097
	1,211,785			PayPal Holdings Inc			54,809,036
							132,373,027
				Computer Data Security—1.27%
	520,327			Fortinet Inc			42,521,122
	307,271			Qualys Inc			26,993,757
	300,144			Rapid7 Inc			1,653,793
	498,309			Tenable Holdings Inc			8,428,897
	366,475			Zscaler Inc			51,412,778
							131,010,347
				Computer Graphics—0.10%
	495,236			Figma Inc			10,469,289
				Computer Services - 0.76%
	520,199			Cognizant Technology Solutions Corp, Class A			31,914,209
	296,541			Gartner Inc			46,954,302
							78,868,511
				Computer Software—0.27%
	939,506			Dropbox Inc, Class A			21,345,576
	273,220			Teradata Corp			7,002,629
							28,348,205
				Consumer Products - Miscellaneous—0.23%
	247,381			Kimberly-Clark Corp			23,864,845
				Cosmetics & Toiletries—0.47%
	333,964			Procter & Gamble Co/The			48,237,760
				Data Processing / Management—0.50%
	48,790			Fair Isaac Corp			52,085,277
				Diversified Manufacturing Operations - 1.32%
	524,633			Illinois Tool Works Inc			136,556,724
				E - Commerce / Products - 0.23%
	484,027			Etsy Inc			24,191,669
				E - Services / Consulting—0.20%
	173,293			CDW Corp/DE			20,971,919
				Electric Products - Miscellaneous—0.83%
	653,376			Emerson Electric Co			85,605,324

 

The accompanying notes are an integral part of these financial statements.

 

 

ACAP STRATEGIC FUND

SCHEDULE OF SECURITIES SOLD, NOT YET PURCHASED (Unaudited) (continued)

 

Shares						March 31, 2026 Fair Value
				Common Stocks (continued)
				United States (continued)
				Electronic Components - Miscellaneous—1.20%
	252,971			Hubbell Inc		$	124,142,989
				Electronic Components - Semiconductors—2.83%
	1,000,379			Advanced Micro Devices Inc			203,507,100
	416,409			GLOBALFOUNDRIES Inc			18,521,872
	446,657			Marvell Technology Inc			44,241,376
	25,004			Monolithic Power Systems Inc			27,338,124
							293,608,472
				Electronic Forms—0.58%
	247,619			Adobe Inc			60,191,227
				Enterprise Software / Services—1.40%
	987,182			Palantir Technologies Inc			144,404,983
				Finance - Credit Card—0.26%
	148,430			Capital One Financial Corp			27,078,085
				Financial Services—0.55%
	866,667			State Street SPDR S&P Regional Banking ETF			56,463,355
				Food - Miscellaneous / Diversified—1.35%
	742,937			Conagra Brands Inc			11,678,970
	1,365,450			General Mills Inc			50,822,049
	1,970,707			Kraft Heinz Co			44,321,200
	1,474,247			The Campbell’s Company			32,831,481
							139,653,700
				Hotels & Motels—1.01%
	744,803			Choice Hotels International Inc			77,087,111
	344,112			Wyndham Hotels & Resorts Inc			27,952,218
							105,039,329
				Internet Security—0.54%
	346,666			Palo Alto Networks Inc			55,577,493
				Investment Management / Advisory Services - 1.51%
	1,733,329			Franklin Resources Inc			40,941,231
	1,274,938			T Rowe Price Group Inc			114,922,911
							155,864,142
				Machinery - Construction & Mining—0.61%
	89,143			Caterpillar Inc			63,154,250
				Machinery - Electric Utilities—1.46%
	173,333			GE Vernova Inc			151,302,376
				Medical - Biomedical / Genetics—0.33%
	97,391			Amgen Inc			34,267,023
				Medical - Drugs—0.65%
	277,203			Johnson & Johnson			67,759,501
				Private Equity—0.77%
	693,331			Blackstone Inc			79,726,132

 

The accompanying notes are an integral part of these financial statements.

 

 

ACAP STRATEGIC FUND

SCHEDULE OF SECURITIES SOLD, NOT YET PURCHASED (Unaudited) (continued)

 

Shares						March 31, 2026 Fair Value
				Common Stocks (continued)
				United States (continued)
				REITS - Diversified—0.85%
	485,778			Digital Realty Trust Inc		$	87,542,053
				REITS - Office Property—0.72%
	413,772			Brandywine Realty Trust			1,121,322
	495,979			BXP Inc			25,741,310
	1,882,663			Douglas Emmett Inc			17,734,685
	49,162			Hudson Pacific Properties Inc			290,547
	725,334			Kilroy Realty Corp			20,461,672
	247,267			SL Green Realty Corp			9,134,043
							74,483,579
				REITS - Storage—0.97%
	249,401			Extra Space Storage Inc			32,703,953
	248,092			Public Storage			67,203,161
							99,907,114
				Retail - Home Furnishings—0.13%
	742,855			Bath & Body Works Inc			13,869,103
				Retail - Miscellaneous / Diversified—0.11%
	800,932			Sally Beauty Holdings Inc			11,092,908
				Retail - Regional Department Store—0.47%
	1,408,686			Kohl’s Corp			18,172,049
	1,689,526			Macy’s Inc			30,563,525
							48,735,574
				Sector Fund - Technology—4.76%
	1,287,615			VanEck Semiconductor ETF			493,671,591
				Semiconductor Components - Integrated Circuits—0.43%
	346,333			QUALCOMM Inc			44,600,764
				Telephone - Integrated—0.47%
	1,694,202			AT&T Inc			49,114,916
				Transport - Services—0.38%
	396,190			United Parcel Service Inc			38,977,172
				Total United States (proceeds $4,648,255,930)		$	4,055,312,525
				Total Common Stocks (proceeds $6,047,419,044)		$	5,305,231,483
				Total Securities Sold, Not Yet Purchased (proceeds $6,047,419,044)		$	5,305,231,483
	ADR			American Depositary Receipt
	REITS			Real Estate Investment Trusts

 

The accompanying notes are an integral part of these financial statements.

 

 

ACAP STRATEGIC FUND

SCHEDULE OF SECURITIES SOLD, NOT YET PURCHASED (Unaudited) (concluded)

 

 

The accompanying notes are an integral part of these financial statements.

 

 

ACAP STRATEGIC FUND

SCHEDULE OF SWAP CONTRACTS (Unaudited)

 

Notional Amount (USD)				Maturity Date*				March 31, 2026 Unrealized Appreciation / Depreciation***
				Swap Contracts—7.96%
				Total Return Swap Contracts - Appreciation—8.66%
				Brazil—0.19%
				Finance - Other Services—0.19%
$	35,769,869			1/30/2029		B3 SA - Brasil Bolsa Balcao		$	20,174,502
						Agreement with Morgan Stanley, dated 01/30/2019 to receive the total return of the shares of B3 SA - Brasil Bolsa Balcao in exchange for an amount to be paid equal to the Daily Fed Funds Effective Rate plus 1.00%**.
				Total Brazil				$	20,174,502
				Japan—0.52%
				Audio / Video Products—0.25%
	(34,392,870	)		3/6/2028		Sharp Corp.			25,755,128
						Agreement with Morgan Stanley, dated 03/01/2010 to deliver the total return of the shares of Sharp Corp in exchange for an amount to be received equal to the Daily Fed Funds Effective Rate less 0.40%**.
				Office Automation & Equipment—0.02%
	(26,444,589	)		3/6/2028		Ricoh Company Ltd			2,486,847
						Agreement with Morgan Stanley, dated 03/01/2010 to deliver the total return of the shares of Ricoh Company Ltd in exchange for an amount to be received equal to the Daily Fed Funds Effective Rate less 0.40%**.
				Semiconductor Equipment—0.25%
	(166,519,616	)		3/6/2028		Advantest Corp			26,012,728
						Agreement with Morgan Stanley, dated 03/01/2010 to deliver the total return of the shares of Advantest Corp in exchange for an amount to be received equal to the Daily Fed Funds Effective Rate less 0.40%**.
				Total Japan				$	54,254,703
				Spain—0.06%
				Building - Heavy Construction—0.06%
	17,093,419			2/26/2027		Cellnex Telecom SA			6,623,978
						Agreement with Morgan Stanley, dated 03/03/2014 to receive the total return of the shares of Cellnex Telecom SA in exchange for an amount to be paid equal to the Daily Fed Funds Effective Rate plus 0.65%**.
				Total Spain				$	6,623,978

 

The accompanying notes are an integral part of these financial statements.

 

 

ACAP STRATEGIC FUND

SCHEDULE OF SWAP CONTRACTS (Unaudited) (continued)

 

Notional Amount (USD)				Maturity Date*				March 31, 2026 Unrealized Appreciation / Depreciation***
				Total Return Swap Contracts - Appreciation (continued)
				Sweden—0.03%
				Auto - Cars / Light Trucks—0.03%
$	(9,586,011	)		12/11/2026		Volvo Car AB, Class B		$	3,388,605
						Agreement with Morgan Stanley, dated 12/07/2012 to deliver the total return of the shares of Volvo Car AB, Class B in exchange for an amount to be received equal to the Daily Fed Funds Effective Rate less 2.88%**.
				Total Sweden				$	3,388,605
				Taiwan—0.40%
				Computers - Peripheral Equipment—0.00%
	(3,873,352	)		3/6/2028		Innolux Corp			180,502
						Agreement with Morgan Stanley, dated 03/01/2010 to deliver the total return of the shares of Innolux Corp in exchange for an amount to be received equal to the Daily Fed Funds Effective Rate less 4.00%**.
				Electronic Components - Miscellaneous—0.01%
	(6,488,194	)		3/6/2028		AUO Corp			903,350
						Agreement with Morgan Stanley, dated 03/01/2010 to deliver the total return of the shares of AUO Corp in exchange for an amount to be received equal to the Daily Fed Funds Effective Rate less 16.00%**.
				Power Conversion / Supply Equipment—0.39%
	12,384,576			3/6/2028		Delta Electronics Inc			40,629,227
						Agreement with Morgan Stanley, dated 03/01/2010 to receive the total return of the shares of Delta Electronics Inc in exchange for an amount to be paid equal to the Daily Fed Funds Effective Rate plus 1.25%**.
				Total Taiwan				$	41,713,079
				United Kingdom—1.33%
				Aerospace / Defense—1.29%
	96,253,402			12/11/2026		Rolls-Royce Holdings PLC			133,548,091
						Agreement with Morgan Stanley, dated 12/07/2012 to receive the total return of the shares of Rolls-Royce Holdings PLC in exchange for an amount to be paid equal to the Daily Fed Funds Effective Rate plus 0.65%**.

 

The accompanying notes are an integral part of these financial statements.

 

 

ACAP STRATEGIC FUND

SCHEDULE OF SWAP CONTRACTS (Unaudited) (continued)

 

Notional Amount (USD)				Maturity Date*				March 31, 2026 Unrealized Appreciation / Depreciation***
				Total Return Swap Contracts - Appreciation (continued)
				United Kingdom (continued)
				Cosmetics & Toiletries—0.02%
$	(44,089,477	)		2/26/2027		Unilever PLC		$	2,071,207
						Agreement with Morgan Stanley, dated 03/03/2014 to deliver the total return of the shares of Unilever PLC in exchange for an amount to be received equal to the Daily Fed Funds Effective Rate less 0.35%**.
				Food - Retail—0.02%
	(15,192,763	)		12/11/2026		Marks & Spencer Group PLC			2,250,536
						Agreement with Morgan Stanley, dated 12/07/2012 to deliver the total return of the shares of Marks & Spencer Group PLC in exchange for an amount to be received equal to the Daily Fed Funds Effective Rate less 0.30%**.
				Total United Kingdom				$	137,869,834
				United States—6.13%
				Private Equity—0.69%
	49,301,209			3/4/2027		Carlyle Group Inc			71,042,496
						Agreement with Morgan Stanley, dated 03/03/2014 to receive the total return of the shares of Carlyle Group Inc in exchange for an amount to be paid equal to the Daily Fed Funds Effective Rate plus 0.45%**.
				Web Portals / ISP—5.44%
	91,417,519			3/4/2027		Alphabet Inc, Class A			561,953,259
						Agreement with Morgan Stanley, dated 03/03/2014 to receive the total return of the shares of Alphabet Inc, Class A in exchange for an amount to be paid equal to the Daily Fed Funds Effective Rate plus 0.45%**.
				Total United States				$	632,995,755
				Total Return Swap Contracts - Appreciation ****				$	897,020,456
				Total Return Swap Contracts - Depreciation—0.70%
				Australia—0.12%
				Commercial Banks Non-US—0.12%
	(90,532,549	)		12/23/2026		Commonwealth Bank of Australia			12,226,857
						Agreement with Morgan Stanley, dated 12/23/2014 to deliver the total return of the shares of Commonwealth Bank of Australia in exchange for an amount to be received equal to the Daily Fed Funds Effective Rate less 0.40%**.
				Total Australia				$	12,226,857

 

The accompanying notes are an integral part of these financial statements.

 

 

ACAP STRATEGIC FUND

SCHEDULE OF SWAP CONTRACTS (Unaudited) (continued)

 

Notional Amount (USD)				Maturity Date*				March 31, 2026 Unrealized Appreciation / Depreciation***
				Total Return Swap Contracts - Appreciation (continued)
				Denmark—0.20%
				Transport - Services—0.20%
$	124,848,811			2/26/2027		DSV A/S		$	20,187,086
						Agreement with Morgan Stanley, dated 03/03/2014 to receive the total return of the shares of DVS A/S in exchange for an amount to be paid equal to the Daily Fed Funds Effective Rate plus 0.65%**.
				Total Denmark				$	20,187,086
				Japan—0.22%
				Office Automation & Equipment—0.01%
	(92,002,934	)		3/6/2028		Canon Inc			853,108
						Agreement with Morgan Stanley, dated 03/01/2010 to deliver the total return of the shares of Canon Inc in exchange for an amount to be received equal to the Daily Fed Funds Effective Rate less 0.40%**.
				Semiconductor Equipment—0.21%
	(66,519,642	)		3/6/2028		Lasertec Corp			2,135,110
						Agreement with Morgan Stanley, dated 03/01/2010 to deliver the total return of the shares of Lasertec Corp in exchange for an amount to be received equal to the Daily Fed Funds Effective Rate less 0.40%**.
	(138,908,194	)		3/6/2028		Tokyo Electron Ltd			20,911,707
						Agreement with Morgan Stanley, dated 03/01/2010 to deliver the total return of the shares of Tokyo Electron Ltd in exchange for an amount to be received equal to the Daily Fed Funds Effective Rate less 0.40%**.
				Total Japan				$	23,899,925
				South Korea—0.10%
				Engines - Internal Combustion—0.10%
	50,677,695			2/25/2028		Doosan Co Ltd			10,304,618
						Agreement with Morgan Stanley, dated 02/25/2026 to receive the total return of the shares of Doosan Co Ltd in exchange for an amount to be paid equal to the Daily Fed Funds Effective Rate plus 0.90%**.
				Total South Korea				$	10,304,618

 

The accompanying notes are an integral part of these financial statements.

 

 

ACAP STRATEGIC FUND

SCHEDULE OF SWAP CONTRACTS (Unaudited) (continued)

 

Notional Amount (USD)				Maturity Date*				March 31, 2026 Unrealized Appreciation / Depreciation***
				Total Return Swap Contracts - Appreciation (continued)
				Taiwan—0.05%
				Semiconductor Components - Integrated Circuits—0.05%
$	(52,034,058	)		3/6/2028		United Microelectronics Corp		$	5,469,597
						Agreement with Morgan Stanley, dated 03/01/2010 to deliver the total return of the shares of United Microelectronics Corp in exchange for an amount to be received equal to the Daily Fed Funds Effective Rate less 1.25%**.
				Total Taiwan				$	5,469,597
				United Kingdom—0.01%
				Aerospace / Defense—0.01%
	51,347,623			12/11/2026		BAE Systems PLC			547,928
						Agreement with Morgan Stanley, dated 12/07/2012 to receive the total return of the shares of BAE Systems PLC in exchange for an amount to be paid equal to the Daily Fed Funds Effective Rate plus 0.65%**.
				Total United Kingdom				$	547,928
				Total Return Swap Contracts - Depreciation *****				$	72,636,011
				Total Swap Contracts, net				$	824,384,445

 

 

*

Per the terms of the executed swap agreement, no periodic payments are made. A single payment is made upon the maturity of the Total Return Swap Contracts.

 

**

The financing rate is made up of the Daily Fed Funds Effective Rate plus a variable rate. The Daily Fed Funds Effective Rate is the weighted average interest rate at which depository institutions (banks and credit unions) trade federal funds (balances held at Federal Reserve Banks) with each other overnight. The variable rate indicated is as of March 31, 2026.

 

***

The value of the Total Return Swap Contracts is the same as the unrealized appreciation/depreciation. For this reason the value has not been broken out separately. Additionally, there were no upfront payments or receipts related to any of the Total Return Swap Contracts transactions.

 

****

Includes all Total Return Swap Contracts in an appreciated position. The unrealized appreciation of these contracts is included as part of Net unrealized appreciation on total return swap contracts in the Statement of Assets and Liabilities.

 

*****

Includes all Total Return Swap Contracts in a depreciated position. The unrealized depreciation amounts of these contracts is included as part of Net unrealized appreciation on total return swap contracts in the Statement of Assets and Liabilities.

 

The accompanying notes are an integral part of these financial statements.

 

 

ACAP STRATEGIC FUND

SCHEDULE OF SWAP CONTRACTS (Unaudited) (concluded)

 

 

The accompanying notes are an integral part of these financial statements.

 

 

ACAP STRATEGIC FUND

STATEMENT OF OPERATIONS (Unaudited)

 

		For the Six Months Ended March 31, 2026
Investment Income
Interest		$	55,374,628
Dividends (net of foreign withholding tax of $2,208,730)			34,866,688
Other			1,074
Total investment income			90,242,390
Expenses
Management fees			81,090,873
Stock loan fees			51,927,362
Dividends on securities sold, not yet purchased			39,142,631
Distribution and shareholder servicing fees - Class A Shares			30,363,316
Administration fees			2,304,989
Interest expense			2,171,301
Transfer agent fees			882,761
Custody fees			585,000
Professional fees			327,750
Insurance expense			98,893
Trustees’ fees			67,500
Registration fees			47,501
Miscellaneous expense			1,950,904
Total expenses			210,960,781
Net investment loss			(120,718,391	)
Net realized gain/(loss) and net change in unrealized appreciation/depreciation from investment activities, foreign currency transactions, written options, purchased options and total return swap contracts
Net realized gain/(loss) from investment activities, foreign currency transactions, written options, purchased options and total return swap contracts
Investment securities of unaffiliated issuers			1,104,980,985
Purchased options			(766,740,597	)
Securities sold, not yet purchased			(314,576,337	)
Total return swap contracts			10,730,222
Foreign currency transaction			(450,161	)
Net realized gain/(loss) from investment activities, foreign currency transactions, written options, purchased options and total return swap contracts			33,944,112
Net change in unrealized appreciation/depreciation from investment activities, foreign currency transactions, written options, purchased options and total return swap contracts
Investment securities of unaffiliated issuers			(989,392,712	)
Purchased options			(45,717,340	)
Securities sold, not yet purchased			782,920,477
Total return swap contracts			(1,141,613	)
Foreign currency transactions			101,437
Net change in unrealized appreciation/depreciation from investment activities, foreign currency transactions, written options, purchased options and total return swap contracts			(253,229,751	)
Net realized gain/(loss) and net change in unrealized appreciation/depreciation from investment activities, foreign currency transactions, written options, purchased options and total return swap contracts			(219,285,639	)
Net decrease in net assets resulting from operations		$	(340,004,030	)

 

The accompanying notes are an integral part of these financial statements.

 

 

ACAP STRATEGIC FUND

STATEMENT OF CHANGES IN NET ASSETS (Unaudited)

 

		For the Six Months Ended March 31, 2026				For the Year Ended September 30, 2025
From operations:
Net investment loss		$	(120,718,391	)		$	(679,889,268	)
Net realized gain/(loss) from investment activities, foreign currency transactions, written options, purchased options and total return swap contracts			33,944,112				572,026,517
Net change in unrealized appreciation/depreciation from investment activities, foreign currency transactions, written options, purchased options and total return swap contracts			(253,229,751	)			2,606,225,101
Net increase/(decrease) in net assets resulting from operations			(340,004,030	)			2,498,362,350
From transactions in shares:
Proceeds from sales of shares
Class A			226,077,887				245,204,933
Class W			100,429,843				92,248,141
Total proceeds from sale of shares			326,507,730				337,453,074
Payment for shares repurchased
Class A			(204,327,896	)			(565,614,617	)
Class W			(81,446,458	)			(212,658,272	)
Total payment for shares repurchased			(285,774,354	)			(778,272,889	)
Exchange of shares
Class A			(6,629,186	)			(14,608,811	)
Class W			6,629,186				14,608,811
Total exchange of shares			—				—
Net increase/(decrease) in net assets from transactions in shares			40,733,376				(440,819,815	)
Net increase/(decrease) in net assets			(299,270,654	)			2,057,542,535
Net assets at beginning of period			10,649,962,665				8,592,420,130
Net assets at end of period		$	10,350,692,011			$	10,649,962,665

 

The accompanying notes are an integral part of these financial statements.

 

 

ACAP STRATEGIC FUND

STATEMENT OF CASH FLOWS (Unaudited)

 

		For the Six Months Ended March 31, 2026
Cash Flows From Operating Activities:
Net decrease in net assets resulting from operations		$	(340,004,030	)
Adjustments to reconcile net decrease in net assets resulting from operations to net cash used in operating activities:
Proceeds from sales of long-term investment securities			12,891,126,826
Purchases of long-term investment securities			(12,005,609,226	)
Proceeds from long-term securities sold short, not yet purchased			9,720,982,028
Cover of long-term securities sold short, not yet purchased			(8,808,616,035	)
Proceeds from sales of short-term investment securities			13,404,913
Purchases of short-term investment securities			(14,629,219	)
Proceeds from sales of short-term purchased options			3,837,503,507
Purchases of short-term purchased options			(4,788,779,757	)
Proceeds from swap contracts			10,730,222
Net realized (gain)/loss from investment activities, foreign currency transactions, written options, purchased options and total return swaps			(33,944,112	)
Net change in unrealized (appreciation)/depreciation from investment activities, foreign currency transactions, written options, purchased options and total return swaps			253,229,751
Changes in operating assets and liabilities:
Increase in deposits at brokers for securities sold, not yet purchased			(517,203,074	)
Decrease in cash collateral received for total return swap contracts			28,402,067
Increase in receivable for investment securities sold			(1,034,171,674	)
Increase in interest receivable			(10,247	)
Increase in dividends receivable			(226,130	)
Decrease in due from brokers			105,924
Decrease in other assets			21,392
Decrease in due to brokers			(1,138,691	)
Decrease in accrued incentive fees payable			(518,714,845	)
Increase in payable for investment securities purchased			1,109,915,060
Decrease in variation margin payable			(27,260,454	)
Increase in management fees payable			674,644
Increase in stock loan fee payable			1,626,447
Increase in distribution and shareholder servicing fees payable			283,442
Increase in dividends payable on securities sold, not yet purchased			1,928,090
Increase in administration fees payable			591,044
Decrease in professional fees payable			(138,832	)
Increase in due to custodian			20,052,014
Decrease in miscellaneous expenses payable			(645,716	)
Net cash used in operating activities			(200,514,671	)

 

The accompanying notes are an integral part of these financial statements.

 

 

ACAP STRATEGIC FUND

STATEMENT OF CASH FLOWS (Unaudited) (concluded)

 

		For the Six Months Ended March 31, 2026
Cash flows from financing activities
Net proceeds from sale of shares		$	326,507,730
Payment for shares repurchased, including the change in payable for shares repurchased			(286,256,615	)
Net cash provided by financing activities			40,251,115
Effect of exchange rate on cash			(348,724	)
Net change in cash and cash equivalents and restricted cash			(160,612,280	)
Cash and cash equivalents and restricted cash at beginning of period			175,924,860
Cash and cash equivalents and restricted cash at end of period		$	15,312,580
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for interest		$	2,852,836

 

The accompanying notes are an integral part of these financial statements.

 

 

ACAP STRATEGIC FUND

NOTES TO FINANCIAL STATEMENTS—MARCH 31, 2026 (Unaudited)

 

1. Organization

 

ACAP Strategic Fund (the “Fund”) was organized as a Delaware statutory trust in June 2009. The Fund commenced operations on March 1, 2010. The Fund is registered under the Investment Company Act of 1940 (the “1940 Act”) as a closed-end management investment company and operates as a diversified company. The Fund operates as an interval fund under Rule 23c-3 of the 1940 Act and, as such, offers to repurchase between 5% – 25% of its outstanding shares at their net asset value as of or prior to the end of each fiscal quarter. SilverBay Capital Management LLC serves as the investment adviser of the Fund (the “Adviser”). The Adviser is controlled by its sole member, Alkeon Capital Management, LLC (“Alkeon”). Each of the Adviser and Alkeon are registered with the SEC as an investment adviser. The Adviser also serves as the Fund’s “valuation designee” pursuant to Rule 2a-5 under the 1940 Act.

 

The Fund’s investment objective is to achieve maximum capital appreciation. The Fund pursues this objective by investing its assets primarily in publicly-traded equity securities of U.S. and foreign companies that the Adviser believes are well positioned to benefit from demand for their products or services, including companies that can innovate or grow rapidly relative to their peers in their markets. The Fund also pursues its objective by effecting short sales of securities when the Adviser believes that the market price of a security is above its estimated intrinsic or fundamental value. The Fund may also borrow money for investment purposes (leverage). The use of short sales and leverage are speculative investment practices and involve a high degree of risk.

 

The Fund is authorized to issue an unlimited number of shares of beneficial interest (“Shares”), $0.001 par value. The minimum initial investment in the Fund by an investor is $50,000. Minimum subsequent investments must be at least $5,000 (including a sales load, if applicable). Investors may be charged a sales load up to a maximum of 3% on the amount they invest in Class A Shares. The specific amount of the sales load is not fixed and will be determined by the investor and its broker, dealer or other financial intermediary. Shares may be purchased through, and with funds drawn on, an investor’s brokerage account with brokers or dealers retained by Breakwater Group Distribution Services, LLC (the “Underwriter”) to act as selling agents to assist in the distribution of Shares (“Selling Agents”). Class A Shares are subject to distribution and shareholder servicing fees and Selling Agents who do not charge a front end load may charge their clients transaction fees or other transaction charges in such amounts as they may determine (which may be higher or lower, in the aggregate, than a front end load). Unlike Class A Shares, Class W Shares are not subject to any sales load or distribution and shareholder servicing fees. Class W Shares may be purchased through, and with funds drawn on, an investor’s “wrap-fee” account with a registered broker dealer or registered investment adviser retained by the Underwriter or the Adviser, as applicable, and whose financial advisor recommends their investment in the Fund. Shares of the Fund may be purchased only by investors who certify to the Fund or its agents that they have a net worth of more than $2,200,000 (excluding the value of the primary residence of such person and any debt secured by such property up to its current market value) or otherwise satisfy the definition of a “qualified client” under the Investment Advisers Act of 1940. Under certain circumstances (including where a Class A shareholder may be eligible to invest in Class W Shares), and only as authorized by the Underwriter or the Fund, Class A Shares may be exchanged for Class W Shares. Any such exchange would generally not be a taxable event for U.S. federal income tax purposes. If shares are exchanged, such transactions shall not be considered a repurchase from the Fund triggering a Fiscal Period (as defined below) end for purpose of calculation of the Incentive Fee (as defined below). As an interval fund, the Fund has adopted a fundamental policy to offer to repurchase at least 5% of its outstanding Shares at their net asset value at regular intervals. Currently, the Fund intends to offer to repurchase 25% of its outstanding Shares as of or prior to the end of each fiscal quarter. However, repurchase offers in excess of 5% of the Fund’s outstanding Shares for any particular fiscal quarter are entirely within the discretion of the Board of Trustees of the Fund (the “Board”) and, as a result, there can be no assurance that the Fund will make repurchase offers for amounts in excess of 5% of the outstanding Shares for any particular fiscal quarter.

 

Shares of the Fund are offered for purchase on a monthly basis in a continuous offering at their net asset value per share. Shares will be issued at the net asset value per share next computed after acceptance of an order to purchase shares. Purchase orders for shares sold in connection with a monthly offering must be received prior to the close of business on the day of the month specified by the Underwriter (typically the last business day of the month).

 

 

ACAP STRATEGIC FUND

NOTES TO FINANCIAL STATEMENTS—MARCH 31, 2026 (Unaudited) (continued)

 

1. Organization (continued)

 

Purchase orders received in proper form that are accepted by the Fund will have deposited monies invested in the Fund (net of the sales load, if applicable) as of the first business day of the next month following submission of an investor’s purchase order. The Fund reserves the right to suspend or terminate the offering of Shares at any time.

 

The Board has overall responsibility for the management and supervision of the operations of the Fund. The Board has delegated responsibility for management of the Fund’s day-to-day operations to the Adviser. The Board exercises the same powers, authority and responsibilities on behalf of the Fund as are customarily exercised by the board of directors of a registered investment company organized as a corporation. The persons comprising the Board (the “Trustees”) are not required to invest in the Fund or to own Shares. A majority of the Trustees are persons who are not “interested persons” (as defined in the 1940 Act) of the Fund (the “Independent Trustees”). The Independent Trustees perform the same functions for the Fund as are customarily exercised by the non-interested directors of a registered investment company organized as a corporation.

 

2. Significant Accounting Policies

 

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (hereafter referred to as “Authoritative Guidance”) requires the Adviser to make estimates and assumptions in determining the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Adviser believes that the estimates utilized in preparing the Fund’s financial statements are reasonable and prudent; however, actual results could differ from these estimates.

 

Net increase in net assets resulting from operations, as presented in the Statement of Operations, with the exception of the distribution and shareholder servicing fee, is allocated pro rata between Class A and Class W Shares based on the net asset value of each share class as compared to the Fund’s net asset value overall on a monthly basis. The distribution and shareholder servicing fee is allocated only to Class A Shares.

 

The Fund qualifies as an investment company, as defined in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946 Financial Services—Investment Companies and, therefore, is applying the specialized accounting and reporting guidance therein.

 

The following is a summary of the significant accounting policies of the Fund:

 

a. Revenue Recognition

 

Securities transactions, including related revenue and expenses, are recorded on a trade date basis. The Fund employs the specific identification method of inventory accounting for realized gains and losses on investment transactions. Dividends are recorded on the ex-dividend date, net of foreign withholding tax, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Interest income and expense are recorded on the accrual basis. Dividends on securities sold, not yet purchased are an expense to the Fund. Such amounts are recorded on the ex-dividend date as Dividends on securities sold, not yet purchased on the Statement of Operations. The Fund amortizes premium and accretes discount on bonds using the effective yield method.

 

b. Portfolio Valuation

 

The value of the net assets of the Fund is determined on each business day as of the close of regular business of the New York Stock Exchange in accordance with the procedures set forth below or as may be determined from time to time pursuant to policies established by the Board.

 

 

ACAP STRATEGIC FUND

NOTES TO FINANCIAL STATEMENTS—MARCH 31, 2026 (Unaudited) (continued)

 

2. Significant Accounting Policies (continued)

 

b. Portfolio Valuation (continued)

 

Domestic and foreign exchange-traded equity securities (including listed warrants) traded upon or dealt in one or more domestic or foreign securities exchanges are valued at their official closing price as reported on their primary exchange.

 

Domestic non-exchange traded equity securities are valued at their last reported price.

 

Total return swaps on equity securities are generally valued based upon the price for the reference asset, as determined in the manner specified above, as well as dividends on the reference equity security and accrued swap interest since the day of opening the position.

 

Fixed income, including convertible bonds, is generally valued using an evaluated bid price provided by an independent pricing agent. Evaluated bid prices provided by the pricing agent may be determined without exclusive reliance on quoted bid prices and may reflect factors such as relative credit information, observed market movements, sector news, maturity, reported trade frequencies and other market data. Money market instruments with a remaining maturity of 60 days or less may be valued at amortized cost (purchase price or last valuation, as applicable, adjusted for accretion of discount or amortization of premium) unless the Adviser believes another valuation is more appropriate.

 

Options traded upon or dealt in one or more domestic or foreign securities exchanges are valued at their last reported mid price as reported on such exchange(s). Non-exchange traded options and currency options are valued using a combination of observable inputs and models.

 

Forward contracts are traded on the over-the-counter market. Forward contracts are valued using observable inputs, such as currency exchange rates or commodity prices, applied to notional amounts stated in the applicable contracts.

 

When market quotations are not readily available, if a market quotation is “stale”, or when the valuation methods mentioned above are not reflective of the fair value of an asset or a liability, fair value will be determined in good faith based on observable and unobservable inputs relevant to the valuation of the asset by the Adviser, as the Fund Valuation Designee (“Fair Value Determination”).

 

The Adviser monitors the continuing appropriateness of the valuation methodology being used for each security and other investment.

 

All assets and liabilities initially expressed in foreign currencies are converted into U.S. dollars using foreign exchange rates provided by a pricing service compiled as of 4:00 p.m. London time. Trading in foreign securities generally is completed, and the values of foreign securities are determined prior to the close of securities markets in the U.S. On occasion, the values of foreign securities and exchange rates may be materially affected by events occurring before the Fund calculates its net asset value but after the close of the primary markets or exchanges on which foreign securities are traded. These intervening events might be country-specific (e.g., natural disaster, economic or political developments, interest-rate change), issuer-specific (e.g., earnings report, merger announcement), or U.S. market specific (e.g., a significant movement in the U.S. markets that is deemed to affect the value of foreign securities). When such an event materially affects the values of securities held by the Fund or its liabilities (including foreign securities for which there is a readily available market price), such securities and liabilities may be subject to Fair Value Determination taking into account the aforementioned factors, in good faith pursuant to procedures adopted by the Board. For the six months ended March 31, 2026, no portfolio securities or liabilities were subject to Fair Value Determination.

 

The Fund follows ASC Topic 820, Fair Value Measurements and Disclosures (“ASC Topic 820”) for fair value measurement. ASC Topic 820 establishes a framework for measuring fair value and a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs

 

 

ACAP STRATEGIC FUND

NOTES TO FINANCIAL STATEMENTS—MARCH 31, 2026 (Unaudited) (continued)

 

2. Significant Accounting Policies (continued)

 

b. Portfolio Valuation (continued)

 

by requiring that the most observable inputs be used when available. ASC Topic 820 establishes three levels of inputs that may be used to measure fair value. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.

 

Level 1—observable market inputs that are unadjusted quoted prices for identical assets or liabilities in active markets.

 

Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

 

Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

 

Over-the-counter financial derivative instruments, such as forward contracts and total return swaps, derive their values from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. These derivative contracts that use valuation techniques and observable inputs as described above and in further detail below and have an appropriate level of market activity are categorized within Level 2 of the fair value hierarchy.

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in these securities.

 

Additional information on the investments can be found in the Schedule of Investments, the Schedule of Purchased Options, the Schedule of Securities Sold, Not Yet Purchased and the Schedule of Swap Contracts.

 

The following table summarizes the fair value of assets and liabilities by the ASC Topic 820 fair value hierarchy levels as of March 31, 2026.

 

		Level 1				Level 2				Level 3				Balance March 31, 2026
Assets
Investment Securities
Common Stocks		$	10,738,087,323			$	—			$	—			$	10,738,087,323
Short-Term Securities			1,842,564				—				—				1,842,564
Purchased Options			1,232,451,348				1,771,409				—				1,234,222,757
Net Unrealized Appreciation on Total Return Swap Contracts			—				824,384,445				—				824,384,445
Total Assets		$	11,972,381,235			$	826,155,854			$	—			$	12,798,537,089
Liabilities
Securities Sold, Not Yet Purchased
Common Stocks		$	5,305,231,483			$	—			$	—			$	5,305,231,483
Total Liabilities		$	5,305,231,483			$	—			$	—			$	5,305,231,483

 

 

ACAP STRATEGIC FUND

NOTES TO FINANCIAL STATEMENTS—MARCH 31, 2026 (Unaudited) (continued)

 

2. Significant Accounting Policies (continued)

 

c. Cash and Cash Equivalents

 

The Fund considers all financial instruments that mature within three months of the date of purchase as cash equivalents. At March 31, 2026 the Fund held $15,257,199 in cash equivalents in a BNY Mellon overnight interest-bearing account, $1,089 in U.S. Dollars and $54,292 in U.S. Dollars restricted cash. These amounts are presented in the Statement of Assets and Liabilities as cash and cash equivalents. Money market accounts are not subject to federally insured bank deposit limits.

 

The Fund maintains cash in bank deposit accounts which, at times, may exceed federally insured limits. The Fund has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk on such bank deposits.

 

As further discussed in Note 2.f., as of March 31, 2026 the Fund has additional cash and cash equivalents on deposit with brokers primarily to satisfy margin and short sale requirements.

 

d. Dividends and Distributions

 

Dividends and distributions to shareholders are recorded on the ex-dividend date. Income and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with Authoritative Guidance. To the extent these differences are permanent, such amounts are reclassified within the capital account based on their federal tax basis treatment; temporary differences do not require such reclassification.

 

e. Income Taxes

 

Each year the Fund intends to operate in a manner to qualify as, and has elected to be treated as, a regulated investment company under subchapter M of the Internal Revenue Code of 1986 (the “Code”), as amended. Also, the Fund intends to distribute each year substantially all of its net investment company taxable income and net realized capital gains, if any, to shareholders and therefore not be required to pay federal income taxes. Accordingly, no provision for federal income or excise tax is required.

 

Foreign securities held by the Fund may be subject to foreign taxation on dividend income received.

 

f. Due to/from Brokers and Custodian

 

Due to/from brokers consists of U.S. dollar and foreign currency cash balances held at the Fund’s prime brokers (Morgan Stanley & Co., Inc., Merrill Lynch Professional Clearing Corp. and Goldman Sachs & Co. LLC). The Fund is charged interest on cash it borrows at agreed upon rates with its prime brokers. The amount due from brokers primarily represents receivables for funds held by the broker which result from cash proceeds from the unwinding of swap positions and other trades. It is the Fund’s policy to monitor the credit standing of the broker and other financial institutions with which it conducts business. Due to custodian consists of debit cash balances generated through trading activities held at the Fund’s custodian, The Bank of New York Mellon (the “Custodian”). All amounts due to brokers and custodians will be paid within one year.

 

Due to brokers also includes the obligation to return cash collateral received from a counterparty due to the appreciation in the fair market value of the fund’s swap instruments, as further discussed in Note 2.g.

 

 

ACAP STRATEGIC FUND

NOTES TO FINANCIAL STATEMENTS—MARCH 31, 2026 (Unaudited) (continued)

 

2. Significant Accounting Policies (continued)

 

g. Cash Collateral Received for Total Return Swap Contracts and Variation Margin Receivable/Payable

 

Cash is paid/received periodically (subject to certain thresholds) to/from the counterparty due to the appreciation or depreciation in the fair market values of the Fund’s swap instruments. Settled payments are recorded as Cash Collateral Received for total return swap contracts in the Statement of Assets and Liabilities. Variation Margin Receivable/Payable represents the amount of such payments due from/to counterparty which have not been settled in the Statement of Assets and Liabilities. As of March 31, 2026, the amount of such cash collateral received was $917,875,996 and the amount of Variation Margin Payable was $93,491,551 as presented in the Statement of Assets and Liabilities. See also Note 13 below.

 

h. Receivable for Investment Securities Sold and Payable for Investment Securities Purchased

 

Receivable for investment securities sold and Payable for investment securities purchased represents trades that occurred prior to the end of the Fiscal Period but have not settled as of the end of the Fiscal Period (as defined below). These amounts are presented in the Statement of Assets and Liabilities.

 

It’s the Fund’s policy to monitor the credit risk of the brokers with which it conducts business.

 

3. Operating Segments

 

The Fund represents a single operating segment. An operating segment is defined in U.S. GAAP as a component of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the public entity’s chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance, and has discrete financial information available. The Fund’s Adviser is the CODM. The CODM monitors the operating results of the Fund as a whole and the pre-determined Fund’s long term investment strategy, which is executed by the portfolio management group. The qualitative and quantitative information contained within the financial statements is used by the CODM to assess the segment’s performance versus the Fund’s comparative benchmark and to make resource allocation decisions. Segment assets are reflected on the Statement of Assets and Liabilities and segment expenses are listed on the Statement of Operations.

 

4. Management Fee

 

In consideration of management services provided by the Adviser and for services provided by the Adviser or an affiliate for certain administrative services, the Fund pays the Adviser a monthly management fee computed at the annual rate of 1.50% of the Fund’s average daily net assets (the “Management Fee”), which is due and payable in arrears within five business days after the end of each month. This fee is accrued daily as an expense to be paid out of the Fund’s assets and has the effect of reducing the net asset value of the Fund. For the six months ended March 31, 2026, Management Fees totaled $81,090,873, included in the Statement of Operations, of which $13,752,520 remained payable to the Adviser at the end of the reporting period and is included on the Statement of Assets and Liabilities.

 

5. Incentive Fee

 

Also in consideration for the management services provided by the Adviser, the Fund pays the Adviser a performance-based incentive fee (the “Incentive Fee”). The Incentive Fee is determined as of the end of the fiscal year in an amount equal to 20% of the amount by which the Fund’s net profits for all Fiscal Periods (defined below) exceed the balance of the loss carryforward account (described below), without duplication for any Incentive Fees paid during such fiscal year. The Fund also pays the Adviser the Incentive Fee in the event a Fiscal Period is triggered in connection with a Share repurchase offer by the Fund.

 

 

ACAP STRATEGIC FUND

NOTES TO FINANCIAL STATEMENTS—MARCH 31, 2026 (Unaudited) (continued)

 

5. Incentive Fee (continued)

 

For purposes of calculating the Incentive Fee, net profits means the amount by which: (a) the net assets of the Fund as of the end of a Fiscal Period, increased by the dollar amount of Shares repurchased during the Fiscal Period (excluding Shares to be repurchased as of the last day of the Fiscal Period after determination of the Incentive Fee) and by the amount of dividends and other distributions paid to shareholders during the Fiscal Period and not reinvested in additional Shares (excluding any dividends and other distributions to be paid as of the last day of the Fiscal Period), exceeds (b) the net assets of the Fund as of the beginning of the Fiscal Period, increased by the dollar amount of Shares issued during the Fiscal Period (excluding any Shares issued in connection with the reinvestment of dividends and other distributions paid by the Fund).

 

Net assets means the total value of all assets of the Fund, less an amount equal to all accrued debts, liabilities and obligations of the Fund, determined in accordance with the valuation and accounting policies and procedures of the Fund.

 

“Fiscal Period” means each period ending on the Fund’s fiscal year-end (or such other period ending on the Fund’s fiscal year-end in the event the Fund’s fiscal year is changed), provided that whenever the Fund conducts a Share repurchase offer, the period of time from the last Fiscal Period-end through the effective date of the repurchase offer also constitutes a Fiscal Period for purposes of calculating the Incentive Fee due (if any) on Shares being tendered for repurchase.

 

The Incentive Fee is payable for a Fiscal Period only if there is no positive balance in the Fund’s loss carryforward account. The loss carryforward account is an account that is credited as of the end of each Fiscal Period with the amount of any net loss of the Fund for that Fiscal Period and will be debited (but not below zero) with the amount of any net profits of the Fund for that Fiscal Period. This is sometimes known as a “high water mark.” The loss carryforward account is also reduced by: (i) the payment by the Fund of any dividend or other distribution to Shareholders (unless the full amount thereof is reinvested in Shares of the Fund); and (ii) any repurchase by the Fund of its Shares.

 

For the six months ended March 31, 2026, there were no accrued Incentive Fees.

 

6. Distribution and Shareholder Servicing Fees

 

The Board has approved, and the Fund has adopted, a distribution and service plan that allows the Fund to pay distribution and service fees for the sale and distribution of its shares, and the related servicing of shareholders. Under the plan, Class A Shares of the Fund are subject to ongoing distribution and shareholder servicing fees to compensate Selling Agents for selling Shares of the Fund, marketing the Fund and providing, or arranging for the provision of, ongoing investor services and account maintenance services to investors in the Fund. These fees are accrued daily and paid monthly in an amount not to exceed, in the aggregate, 0.75% (on an annualized basis) of the net asset value of the Class A Shares of the Fund (the “Distribution and Shareholder Servicing Fees”). Distribution and Shareholder Servicing Fees are accrued daily as an expense of the Fund. Class W Shares of the Fund are not subject to the Distribution and Shareholder Servicing Fees. In addition to Distribution and Shareholder Servicing Fees paid by the Fund, the Adviser (or its affiliates), in its discretion and from its own resources, generally pays Selling Agents additional compensation that, in general, does not exceed 0.25% (on an annual basis) of the aggregate value of shares of the Fund held by customers of such Selling Agents. In return for the additional compensation, the Fund may receive certain services and/or advantages such as access to a Selling Agent’s financial advisors, placement on a list of investment options offered by a Selling Agent, or the ability to assist in training and educating the Selling Agent’s financial advisors. The additional compensation and the services and/or advantages received (if any) may differ among Selling Agents in amount. The receipt of additional compensation by a Selling Agent may create potential conflicts of interest between an investor and its Selling Agent who is recommending the Fund over other potential investments.

 

For the six months ended March 31, 2026, Distribution and Shareholder Servicing Fees amounted to $30,363,316 and is included in the Statement of Operations. At March 31, 2026, $5,192,145 remained payable as distribution and shareholder servicing fees as presented in the Statement of Assets and Liabilities.

 

 

ACAP STRATEGIC FUND

NOTES TO FINANCIAL STATEMENTS—MARCH 31, 2026 (Unaudited) (continued)

 

7. Administration Fee, Related Party Transactions and Other

 

BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”) serves as the Fund’s administrator and provides various administration, fund accounting, investor accounting and taxation services to the Fund. BNY Mellon also provides transfer agency services to the Fund and is paid a minimum of $20,000 per annum for such services. In consideration of the administration and accounting services, the Fund pays BNY Mellon a monthly asset-based fee that includes the regulatory administration fee, which is not anticipated to exceed .08% of the Fund’s average net assets. The Fund also reimburses BNY Mellon for certain out-of-pocket expenses. For the six months ended March 31, 2026, administration fees amounted to $2,304,989, as presented in the Statement of Operations. At March 31, 2026, $2,340,989 of administration fees remained payable, as presented in the Statement of Assets and Liabilities, representing five months’ worth of such fees. Morgan Stanley Fund Services USA LLC (“MSFS”) also provides certain additional reporting (non-distribution) services to the Fund. In consideration for such services, the Fund pays MSFS an amount not anticipated to exceed .01% of the Fund’s average net assets per year.

 

The Custodian serves as the primary custodian of the Fund’s assets, and may maintain custody of the Fund’s assets with domestic and foreign sub-custodians (which may be banks, trust companies, securities depositories and clearing agencies) approved by the Board in accordance with the requirements set forth in Section 17(f) of the 1940 Act and the rules adopted thereunder. Assets of the Fund are not held by the Adviser or commingled with the assets of other accounts other than to the extent that securities are held in the name of a custodian in a securities depository, clearing agency or omnibus customer account of a custodian.

 

The Fund’s distributor is Breakwater Group Distribution Services LLC (“Breakwater”). Alkeon, the sole member of the Adviser, is the non-managing member of Breakwater, a broker-dealer that employs certain of Alkeon’s employees. Breakwater, an underwriter under the federal securities laws, serves as Underwriter of the Fund’s Shares on a best efforts basis. Pursuant to the terms of the Underwriter’s distribution agreement with the Fund, the Underwriter may retain Selling Agents to assist in the distribution of Shares. As described in Note 6 above and in the Fund’s prospectus, Distribution and Shareholder Servicing Fees are used to compensate Selling Agents and are generally not retained by Breakwater.

 

Each Independent Trustee receives an annual retainer of $67,500 plus reimbursement of reasonable out of pocket expenses. Trustees who are “interested persons” do not receive any annual or other fee from the Fund. Trustees who are “interested persons” are reimbursed by the Fund for all reasonable out-of-pocket expenses incurred in performing their duties. The Officers of the Fund serve without compensation.

 

8. Indemnifications and Financial Guarantees

 

The Fund has entered into several contracts that contain routine indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. The Fund has had no claims or payments pursuant to these or prior agreements, and the Fund believes the likelihood of a claim being made is remote. Other than the foregoing, the Fund has no other commitments or contingencies.

 

9. Securities Transactions

 

Aggregate purchases and sales of investment securities, excluding short-term investment securities, for the six months ended March 31, 2026 amounted to $12,005,609,226 and $12,891,126,826, respectively. Aggregate proceeds of sales and purchases for securities sold, not yet purchased for the six months ended March 31, 2026 amounted to $9,720,982,028 and $8,808,616,035, respectively. For the six months ended March 31, 2026, there were no transactions of government securities.

 

10. Borrowings

 

The Fund is authorized to borrow money for investment purposes, to meet repurchase requests and for liquidity purposes. Borrowings by the Fund (which do not include securities sold, not yet purchased and derivative transactions), subject to limitations of the 1940 Act, will not exceed 33⅓ percent of the Fund’s total assets. Purchasing equity securities on margin involves an initial cash requirement representing at least 50% of the

 

35

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ACAP STRATEGIC FUND

NOTES TO FINANCIAL STATEMENTS—MARCH 31, 2026 (Unaudited) (continued)

 

10. Borrowings (continued)

 

underlying security’s value with respect to transactions in U.S. markets and varying (typically lower) percentages with respect to transactions in foreign markets. Borrowing for investment purposes (a practice known as “leverage”) is a speculative investment practice and involves certain risks.

 

Although leverage can increase investment returns if the Fund earns a greater return on the investments purchased with borrowed funds than it pays for the use of those funds, the use of leverage will decrease investment returns if the Fund fails to earn as much on investments purchased with borrowed funds as it pays for the use of those funds.

 

The use of leverage will therefore magnify the impact of changes in the value of investments held by the Fund on the Fund’s net asset value and thus can increase the volatility of the Fund’s net asset value per Share. The Fund’s investment program makes frequent use of leverage.

 

For the six months ended March 31, 2026, the average daily amount of such borrowings was $189,137,182 and the daily weighted average annualized interest rate was 2.63%. At March 31, 2026, the total amount of such borrowings was $59,175, presented as part of due to brokers in the Statement of Assets and Liabilities.

 

11. Transactions in Shares

 

Transactions in Shares were as follows:

 

		For the Six Months Ended March 31, 2026 Shares								For the Year Ended September 30, 2025 Shares
			Class A				Class W				Class A				Class W
Shares at the beginning of the period			273,345,671				120,003,994				286,918,171				125,838,180
Shares sold			7,629,289				4,446,915				9,866,643				4,896,011
Shares reinvested			—				—				—				—
Shares repurchased			(7,104,574	)			(3,723,942	)			(22,873,811	)			(11,475,926	)
Shares exchanged*			(229,839	)			301,853				(565,332	)			745,729
Net increase (decrease)			294,876				1,024,826				(13,572,500	)			(5,834,186	)
Shares at the end of the period			273,640,547				121,028,820				273,345,671				120,003,994

 

 

*

For the six months ended March 31, 2026 and year ended September 30, 2025, $6,629,186 and $14,608,811, respectively, represent the value of Class A and W Shares exchanged, in the aggregate. Different Share amounts are due to different net asset values between the Share classes.

 

As of March 31, 2026, the Adviser and its affiliates owned 12,487.735 Class A Shares of the Fund.

 

12. Principal and Non-Principal Fund Investment Practices and Their Risks

 

Although the Fund’s principal investment strategy is to invest primarily in publicly traded equity securities of U.S. and foreign companies, the Fund may invest its assets in other types of securities and in other asset classes when, in the judgment of the Adviser (subject to any policies established by the Board), such investments present opportunities for the Fund to achieve maximum capital appreciation, taking into account the availability of equity investment opportunities, market conditions, the relative risk/reward analysis of other investments compared to equity securities, and such other considerations as the Adviser deems appropriate.

 

The Fund may effect short sales of securities when the Adviser believes that the market price of a security is above its estimated intrinsic or fundamental value. For example, the Fund may “short” a security of a company if the Adviser believes the security is over-valued in relation to the issuer’s prospects for earnings growth. In addition, the Fund may attempt to limit exposure to a possible market decline in the value of its portfolio securities through short sales of securities that the Adviser believes possess volatility characteristics similar to those being hedged. At times, the Fund may be exposed significantly to short positions and, as a result, the dollar value of short positions in the portfolio could exceed the dollar value of long positions.

 

36

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ACAP STRATEGIC FUND

NOTES TO FINANCIAL STATEMENTS—MARCH 31, 2026 (Unaudited) (continued)

 

12. Principal and Non-Principal Fund Investment Practices and Their Risks (continued)

 

To effect a short sale, the Fund will borrow a security from a brokerage firm to make delivery to the buyer. The Fund is then obligated to replace the borrowed security by purchasing it at the market price at the time of replacement. Thus, short sales expose the Fund to the risk that it will be required to buy the security sold short (also known as “covering” the short position) at a time when the security has appreciated in value, thus resulting in a loss to the Fund. Positions in stocks sold short are more risky than long positions (purchases) in stocks because the maximum loss on a stock purchased is limited to the amount paid for the stock plus the transaction costs, where in the case of a short sale, there is no limit on the loss that may be incurred. The Fund is required to pay the lender any dividends declared on short positions. Such amounts are recorded on the ex-dividend date as Dividends on securities sold, not yet purchased on the Statement of Operations. In accordance with the terms of its prime brokerage agreement, the Funds may be charged a fee on borrowed securities. Such fees are calculated on a daily basis based upon the market value of each borrowed security and a variable rate that is dependent upon the availability of such security. The fees are presented as Stock loan fees on the Statement of Operations. There is a risk that the borrowed securities would need to be returned to the brokerage firm on short notice. If a request for return of securities occurs at a time when other short sellers of the subject security are receiving similar requests, a “short squeeze” can occur, and the Fund might be compelled, at the most disadvantageous time, to replace borrowed securities previously sold short with purchases on the open market, possibly at prices significantly in excess of the price at which the securities were sold short. The successful use of short selling may be adversely affected by imperfect correlation between movements in the price of the security sold short and the securities being hedged. Short selling may exaggerate the volatility of the Fund’s investment portfolio. Short selling may also produce higher than normal portfolio turnover and may result in increased transaction costs to the Fund. In addition, the Fund, as a result of certain short sale transactions, may recognize short term capital gain.

 

The Fund’s short sales have the effect of leveraging the Fund’s assets. The Fund may also generate leverage through engaging in securities lending. The Fund’s use of total return swaps can also expose the Fund to leveraged investment exposure. During periods of volatility, regulators may impose certain restrictions or disclosure requirements on short sales. The levels of restriction and disclosure may vary across different jurisdictions. Such restrictions and disclosure requirements may make it difficult for the Adviser to express its negative views in relation to certain securities, companies or sectors, which may have an adverse effect on the Fund’s ability to implement its investment strategy.

 

Authoritative guidance on disclosures about derivative instruments and hedging activities requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments and disclosures about credit-risk-related contingent features in derivative agreements. The realized gain/(loss) on swap contracts and foreign currency transactions is reflected on the Statement of Operations within these financial statements. The net change in unrealized appreciation/depreciation on swap contracts is reflected on the Statement of Operations within these financial statements. The net change in unrealized appreciation/depreciation on foreign currency transactions is reflected on the Statement of Operations within these financial statements as a component of the net change in unrealized appreciation/depreciation from investment activities and foreign currency transactions. Option contracts serve as components of the Fund’s investment strategies and are utilized to structure investments to enhance the performance of the Fund.

 

Foreign (Non-U.S.) Risk – Investments in securities of non-U.S. issuers may involve more risk than those of U.S. issuers. These securities may fluctuate more widely in price and may be less liquid due to adverse market, economic, political, regulatory or other factors, including as a result of wars such as in the Ukraine and the Middle East.

 

a. Bonds and Other Fixed-Income Securities

 

The Fund may invest without limit in high quality fixed-income securities for temporary defensive purposes and to maintain liquidity. For these purposes, “fixed-income securities” are bonds, notes and debentures issued by corporations; debt securities issued or guaranteed by the U.S. Government or one of its agencies

 

37

 Table of Contents

 

ACAP STRATEGIC FUND

NOTES TO FINANCIAL STATEMENTS—MARCH 31, 2026 (Unaudited) (continued)

 

12. Principal and Non-Principal Fund Investment Practices and Their Risks (continued)

 

a. Bonds and Other Fixed-Income Securities (continued)

 

or instrumentalities (“U.S. Government Securities”) or by a foreign government; municipal securities; and mortgage-backed and asset-backed securities. These securities may pay fixed, variable or floating rates of interest, and may include zero coupon obligations. Fixed-income securities are subject to the risk of the issuer’s inability to meet principal and interest payments on its obligations (i.e., credit risk) and are subject to price volatility due to such factors as interest rate sensitivity, market perception of the credit worthiness of the issuer and general market liquidity (i.e., market risk). The Fund may also invest in both investment grade and non-investment grade debt securities. Investment grade debt securities are securities that have received a rating from at least one nationally recognized statistical rating organization (“NRSRO”) in one of the four highest rating categories or, if not rated by any NRSRO, have been determined by the Adviser to be of comparable quality.

 

The Fund may also invest in convertible bonds.

 

Non-investment grade debt securities (typically called “junk bonds”) are securities that have received a rating from an NRSRO of below investment grade or have been given no rating, and are considered by the NRSRO to be predominantly speculative with respect to the issuer’s capacity to pay interest and repay principal. Non-investment grade debt securities in the lowest rating categories may involve a substantial risk of default or may be in default. Adverse changes in economic conditions or developments regarding the individual issuer are more likely to cause price volatility and weaken the capacity of the issuers of non-investment grade debt securities to make principal and interest payments than is the case for higher grade debt securities. An economic downturn affecting an issuer of non-investment grade debt securities may result in an increased incidence of default. In addition, the market for lower grade debt securities may be thinner and less active than for higher grade debt securities. The Fund does not expect to invest more than 15% of its net assets in non-convertible debt securities. The Fund’s investments in non-investment grade debt securities, if any, are not expected to exceed 5% of its net assets.

 

At March 31, 2026, the Fund held no positions of the above-mentioned investments.

 

b. Exchange Traded Funds and Other Similar Instruments

 

The Fund may purchase retail shares of exchange-traded funds (“ETFs”) that are registered under the 1940 Act and retail shares of similar investment vehicles that are not registered under the 1940 Act (together with the ETFs, “Traded Funds”) and effect short sales of these shares. Transactions in Traded Funds may be used in seeking maximum capital appreciation or for hedging purposes. Typically, a Traded Fund holds a portfolio of common stocks designed to track the performance of a particular index or a “basket” of stocks of companies within a particular industry sector or group. Traded Funds sell and redeem their shares at net asset value in large blocks (typically 50,000 shares) called “creation units.” Shares representing fractional interests in these creation units are listed for trading on national securities exchanges and can be purchased and sold in the secondary market in lots of any size at any time during the trading day (i.e., retail shares).

 

Investments in Traded Funds involve certain inherent risks generally associated with investments in a broadly-based portfolio of stocks including risks that the general level of stock prices may decline, thereby adversely affecting the value of each unit of the Traded Funds. In addition, a Traded Fund may not fully replicate the performance of its benchmark index because of the temporary unavailability of certain index securities in the secondary market or discrepancies between the Traded Fund and the index with respect to the weighting of securities or number of stocks held.

 

Because Traded Funds bear various fees and expenses, the Fund’s investment in these instruments will involve certain indirect costs, as well as transaction costs, such as brokerage commissions. The Adviser considers the expenses associated with an investment in determining whether to invest in a Traded Fund.

 

At March 31, 2026, the Fund held no positions of the above-mentioned investments.

 

38

 Table of Contents

 

ACAP STRATEGIC FUND

NOTES TO FINANCIAL STATEMENTS—MARCH 31, 2026 (Unaudited) (continued)

 

12. Principal and Non-Principal Fund Investment Practices and Their Risks (continued)

 

c. Temporary Investments; U.S. Government Securities Risk

 

During periods of adverse market conditions in the equity securities markets, the Fund may deviate from its investment objective and invest all or a portion of its assets in high quality debt securities, money market instruments, or hold its assets in cash. Securities will be deemed to be of high quality if they are rated in the top four categories by an NRSRO or, if unrated, are determined to be of comparable quality by the Adviser. Money market instruments are high quality, short-term debt obligations (which generally have remaining maturities of one year or less), and may include: U.S. Government Securities; commercial paper; certificates of deposit and banker’s acceptances issued by domestic branches of United States banks that are members of the Federal Deposit Insurance Corporation (“FDIC”); and repurchase agreements for U.S. Government Securities. In lieu of purchasing money market instruments, the Fund may purchase shares of money market mutual funds that invest primarily in U.S. Government Securities and repurchase agreements involving those securities, subject to certain limitations imposed by the 1940 Act.

 

The Fund may also invest in money market instruments or purchase shares of money market mutual funds pending investment of its assets in equity securities or non-money market debt securities, or to maintain such liquidity as may be necessary to effect repurchases of shares from shareholders or for other purposes.

 

It is possible that the U.S. Government would not provide financial support to its agencies or instrumentalities if it were not required to do so by law. If a U.S. Government agency or instrumentality in which the Fund invests defaults and the U.S. Government does not stand behind the obligation, the Fund’s Share price or yield could fall. The U.S. Government’s guarantee of ultimate payment of principal and timely payment of interest of the U.S. Government Securities owned by the Fund does not imply that the Fund’s Shares are guaranteed by the FDIC or any other government agency, or that the price of the Fund’s Shares will not continue to fluctuate.

 

At March 31, 2026, the fair value of the above-mentioned investments was $1,842,564 and is presented as part of investments in securities on the Statement of Assets and Liabilities.

 

d. Total Return Swaps

 

The Adviser may use total return swaps to pursue the Fund’s investment objective of maximum capital appreciation. The Adviser may also use these swaps for hedging purposes. A swap is a contract under which two parties agree to make periodic payments to each other based on specified interest rates, an index or the value of some other instrument, applied to a stated notional amount. Swaps generally can be classified as interest rate swaps, currency swaps, commodity swaps, total return swaps or equity swaps, depending on the type of index or instrument used to calculate the payments. Such swaps would increase or decrease the Fund’s investment exposure to the particular interest rate, currency, commodity or equity involved.

 

Total return swap agreements are contracts in which one party agrees to make periodic payments based on the change in market value of underlying assets, which may include a specified security, basket of securities, defined portfolios of bonds, loans and mortgages, or securities indexes during the specified period, in return for periodic payments based on a fixed or variable interest rate or the total return of other underlying assets or indices. Total return swap agreements may be used to obtain exposure to a security or market without owning or taking physical custody of such security index or market.

 

Most swap agreements entered into by the Fund require the calculation of the obligations of the parties to the agreements on a “net basis.” Consequently, current obligations (or rights) under a swap agreement generally will be equal to only the net amount to be paid or received under the agreement based on the relative values of the positions held by each party to the agreement (the “net amount”). The Fund’s current obligations under a swap agreement will be accrued daily (offset against amounts owed to the Fund), and any accrued but unpaid net amounts owed to a swap counterparty will be covered in accordance with applicable regulatory requirements.

 

39

 Table of Contents

 

ACAP STRATEGIC FUND

NOTES TO FINANCIAL STATEMENTS—MARCH 31, 2026 (Unaudited) (continued)

 

12. Principal and Non-Principal Fund Investment Practices and Their Risks (continued)

 

d. Total Return Swaps (continued)

 

Obligations under swap agreements so covered will not be construed to be “senior securities” for purposes of the Fund’s investment restriction concerning senior securities. The Fund is subject to the market risk associated with changes in the value of the underlying investment or instrument, as well as exposure to credit risk associated with counterparty non-performance on swap contracts. The risk of loss with respect to swaps is limited to the net amount of payments that the Fund is contractually obligated to make. If the other party to a swap defaults, the Fund’s risk of loss generally consists of the net amount of payments that the Fund contractually is entitled to receive and/or the termination value at the end of the contract, which may be different than the amounts recorded on the Statement of Assets and Liabilities. Total return swaps are non-income producing instruments.

 

The Fund’s total return swap contract counterparty is Morgan Stanley & Co., Inc.

 

At March 31, 2026, the net amount of the fair value of the above-mentioned investments was $824,384,445 and is presented as net unrealized appreciation on total return swap contracts on the Statement of Assets and Liabilities.

 

e. Call and Put Options on Individual Securities

 

The Fund may purchase call and put options in respect of specific securities, and may write and sell covered or uncovered call and put options for hedging purposes and non-hedging purposes to pursue its investment objective. A put option gives the purchaser of the option the right to sell, and obligates the writer to buy, the underlying security at a stated exercise price at any time prior to the expiration of the option. Similarly, a call option gives the purchaser of the option the right to buy, and obligates the writer to sell, the underlying security at a stated exercise price at any time prior to the expiration of the option. A covered call option written by the Fund is a call option with respect to which the Fund owns the underlying security. A covered put option written by the Fund is a put option with respect to which cash or liquid securities have been placed in a segregated account on the Fund’s books or with the Fund’s custodian to fulfill the obligation undertaken.

 

The Fund may close out a position when writing options by purchasing an option on the same security with the same exercise price and expiration date as the option that it has previously written on the security. The Fund will realize a profit or loss if the amount paid to purchase an option is less or more, as the case may be, than the amount received from the sale thereof. To close out a position as a purchaser of an option, the Fund would ordinarily make a similar “closing sale transaction,” which involves liquidating the Fund’s position by selling the option previously purchased, although the Fund would be entitled to exercise the option should it deem it advantageous to do so. The Fund may also invest in so-called “synthetic” options or other derivative instruments written by broker-dealers.

 

Options transactions may be effected on securities exchanges or in the over-the-counter market. Over-the-counter options purchased and sold by the Fund may also include options on baskets of specific securities. The use of options is a highly specialized activity which involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. The Fund may buy and sell call and put options, including options on currencies. If the Fund sells a put option, there is a risk that the Fund may be required to buy the underlying asset at a disadvantageous price. If the Fund sells a call option, there is a risk that the Fund may be required to sell the underlying asset at a disadvantageous price, and if the call option sold is not covered (for example, by owning the underlying asset), the Fund’s losses are potentially unlimited. Options may be traded over-the-counter or on a securities exchange. These transactions involve risks consisting of counterparty credit risk and leverage risk.

 

At March 31, 2026, the fair value of the above-mentioned investments was $1,232,451,348 and is presented as part of purchased options on the Statement of Assets and Liabilities.

 

40

 Table of Contents

 

ACAP STRATEGIC FUND

NOTES TO FINANCIAL STATEMENTS—MARCH 31, 2026 (Unaudited) (continued)

 

12. Principal and Non-Principal Fund Investment Practices and Their Risks (continued)

 

f. Foreign Currency Transactions

 

Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the exchange rate of such currencies against U.S. dollars on the date of valuation. The Fund may enter into foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of securities and income and expense items denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date. Occasionally, events may impact the availability or reliability of foreign exchange rates used to convert the U.S. dollar equivalent value. If such an event occurs, the foreign exchange rate will be valued at fair value using procedures established and approved by the Board.

 

The Fund does not separately report the effect of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in the net change in unrealized appreciation/depreciation from investment activities and foreign currency transactions and in net realized gain/(loss) from investment activities on the Statement of Operations.

 

Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period.

 

The Fund may enter into forward contracts for hedging and non-hedging purposes to pursue its investment objective. These contracts represent obligations to purchase or to sell a specified amount of currency at a future date and at a specified price agreed to by the parties at the time they enter into the contracts and allow the Fund to “lock in” the U.S. dollar prices of securities. However, there may be an imperfect correlation between the securities being purchased or sold and the forward contracts entered into, and there is a risk that a counterparty will be unable or unwilling to fulfill its obligations under the forward contract.

 

At March 31, 2026, the Fund held no positions of the above-mentioned investments.

 

The Fund may also seek to hedge against the decline in the value of a currency or, to the extent applicable, to enhance returns, through the use of currency options. Currency options are similar to options on securities. For example, in consideration for an option premium the writer of a currency option is obligated to sell (in the case of a call option) or purchase (in the case of a put option) a specified amount of a specified currency on or before the expiration date for a specified amount of another currency. The Fund may engage in transactions in options on currencies either on exchanges or over-the-counter markets. Currency options involve substantial currency risk, and may also involve credit, leverage or liquidity risk.

 

At March 31, 2026, the fair value of the currency options was $1,771,409 and is presented as part of purchased options on the Statement of Assets and Liabilities.

 

 

ACAP STRATEGIC FUND

NOTES TO FINANCIAL STATEMENTS—MARCH 31, 2026 (Unaudited) (continued)

 

13. Balance Sheet Offsetting

 

In the normal course of business, the Fund enters into derivative transactions subject to enforceable master netting agreements. International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreements”) govern OTC financial derivative transactions and related collateral entered into by the Fund and its counterparties. The Fund has entered into ISDA Master Agreements with all of its counterparties. The ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral and events of termination or default.

 

Events of termination include conditions that may entitle the Fund/counterparty to elect to terminate an agreement early and cause the settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate a contract early could be material to the financial statements.

 

In an event of default (i.e. the Fund/counterparty (a) fails to post collateral, (b) fails to comply with any restrictions or provisions, or (c) fails to comply with or perform any agreement or obligation), the counterparty/Fund has the right to set-off any amounts payable by the Fund/counterparty with respect to any obligations against any posted collateral or the cash equivalent of any posted collateral. Further, the counterparty/Fund has the right to liquidate, sell, pledge, re-hypothecate, or dispose of such posted collateral to satisfy any outstanding obligations.

 

Collateral requirements generally differ by type of derivative. Collateral terms are contract-specific for OTC derivatives (e.g. foreign exchange contracts, options, and certain swaps). Generally, for transactions traded under an ISDA Master Agreement, the collateral requirements are calculated by netting the marked to market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Fund/counterparty. Generally, the amount of collateral due to/from a counterparty must exceed a minimum transfer amount threshold before a transfer is required to be made. To the extent amounts due to the Fund from its derivatives counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from the counterparty’s non-performance.

 

The Fund has elected to offset eligible financial instruments in the Statement of Assets and Liabilities pursuant to the ISDA Master Agreements.

 

The Fund’s derivative agreements contain credit-risk related contingent features which include, but are not limited to, a percentage decline in the Fund’s NAV over a specified time period. If an event occurred at March 31, 2026 that triggered a contingent feature, the counterparty to the agreement may require the Fund to post additional collateral or terminate the derivative positions and demand payment. Any collateral already posted with respect to the derivative positions would be used to offset or reduce the payment. The maximum exposure to derivative agreements with credit-risk related contingent features would be the total value of derivative instruments in a net liability position for the Fund as of March 31, 2026, as disclosed in the table below. At March 31, 2026, no cash or securities were posted as collateral. If the credit-risk-related contingent features were triggered at the end of the reporting period, no additional collateral would be required to be posted.

 

At March 31, 2026, no event occurred that triggered a credit-risk-related contingent feature.

 

 

ACAP STRATEGIC FUND

NOTES TO FINANCIAL STATEMENTS—MARCH 31, 2026 (Unaudited) (continued)

 

13. Balance Sheet Offsetting (continued)

 

Offsetting of Financial Assets and Derivative Assets

 

						Gross Amounts Offset in the				Net Amounts of Assets Presented in the				Gross Amounts Not Offset in the Statement of Assets and Liabilities
		Gross Amount of Recognized Assets				Statement of Assets and Liabilities				Statement of  Assets and Liabilities				Financial Instruments				Cash or Securities Collateral Received (a)				Net Amount
Total return swap contracts		$	897,020,456			$	(72,636,011	)		$	824,384,445			$	—			$	824,384,445			$	—
Purchased options		$	1,234,222,757			$	—			$	1,234,222,757			$	—			$	—			$	1,234,222,757

 

Offsetting of Financial Liabilities and Derivative Liabilities

 

						Gross Amounts Offset in the				Net Amounts of Liabilities Presented in the				Gross Amounts Not Offset in the Statement of Assets and Liabilities
		Gross Amount of Recognized Liabilities				Statement of Assets and Liabilities				Statement of Assets and Liabilities				Financial Instruments				Cash or Securities Collateral Pledged (a)				Net Amount
Total return swap contracts		$	72,636,011			$	(72,636,011	)		$	—			$	—			$	—			$	—
Written options		$	—			$	—			$	—			$	—			$	—			$	—

 

(a)

As of March 31, 2026, the total amount of cash or securities collateral received/pledged is more than the amount reported due to over-collateralization. As of March 31, 2026 the amount of cash or securities collateral received from the counterparty is $917,875,996 and is included as part of cash collateral received for total return swap contracts in the Statement of Assets and Liabilities.

 

The fair value of derivative instruments as of March 31, 2026 was as follows:

 

		Fair Value on the Statement of Assets and Liabilities
Asset derivatives not accounted for as hedging instruments		Equity Risk				Foreign Exchange Risk
Total return swap contracts (a)		$	897,020,456			$	—
Purchased options (b)			1,232,451,348				1,771,409
Total		$	2,129,471,804			$	1,771,409

 

		Fair Value on the Statement of Assets and Liabilities
Liability derivatives not accounted for as hedging instruments		Equity Risk				Foreign Exchange Risk
Total return swap contracts (a)		$	72,636,011			$	—
Total		$	72,636,011			$	—

 

(a)	Presented as part of net unrealized appreciation on total return swap contracts in the Statement of Assets and Liabilities.

(b)	Presented as part of purchased options, at fair value in the Statement of Assets and Liabilities.

 

 

ACAP STRATEGIC FUND

NOTES TO FINANCIAL STATEMENTS—MARCH 31, 2026 (Unaudited) (continued)

 

13. Balance Sheet Offsetting (continued)

 

Effect of derivative instruments trading activities for the six months ended March 31, 2026:

 

		Realized gain/(loss) recognized on the Statement of Operations
Derivatives not accounted for as hedging instruments		Equity Risk				Foreign Exchange Risk
Total return swap contracts (a)		$	10,730,222			$	—
Purchased options (b)			(753,065,301	)			(13,675,296	)
Total			(742,335,079	)			(13,675,296	)

 

(a)	Presented as part of net realized gain/(loss) from total return swap contracts in the Statement of Operations.

(b)	Presented as part of net realized gain/(loss) from purchased options in the Statement of Operations.

 

		Net change in unrealized gain/(loss) recognized on the Statement of Operations
Derivatives not accounted for as hedging instruments		Equity Risk				Foreign Exchange Risk
Total return swap contracts (a)		$	(1,141,613	)		$	—
Purchased options (b)			(54,125,597	)			8,408,257
Total			(55,267,210	)			8,408,257

 

(a)	Presented as part of net change in unrealized appreciation/depreciation from total return swap contracts in the Statement of Operations.

(b)	Presented as part of net change in unrealized appreciation/depreciation from purchased options in the Statement of Operations.

 

The average volume of derivative activities for the six months ended March 31, 2026 are as follows:

 

Derivatives not accounted for as hedging instruments		Derivative Volume
Total return swap contracts (a)		$	(222,036,609	)
Purchased options (b)			1,131,611,377

 

(a)	Average notional cost basis of the underlying securities within each total return swap contract at the end of each month of the Fiscal Period.

(b)	Average cost basis of the purchased options at the end of each month of the Fiscal Period.

 

14. Federal Tax Information

 

During the year ended September 30, 2025, taxable gain differs from net increase in net assets resulting from operations primarily due to: (1) unrealized gain/(loss) from investment activities and foreign currency transactions, as investment gains and losses are not included in taxable income until they are realized; (2) deferred wash sales losses and loss deferrals on unsettled short positions; (3) net deferral of qualified late year losses; (4) deferred straddle losses; and (5) net operating losses.

 

Net capital losses recognized by the Fund may be carried forward indefinitely, and retain their character as short-term and/or long-term losses. As of September 30, 2025, the Fund had $252,714,005 of capital loss carryovers available to offset possible future capital gains. Under federal tax law, capital loss realized after October 31, 2024 and certain ordinary losses realized after December 31, 2024 may be deferred and treated as having arisen on the first day of the following fiscal year. For the year ended September 30, 2025, the Fund incurred and elected to defer qualified late-year ordinary loss of $647,520,887.

 

 

ACAP STRATEGIC FUND

NOTES TO FINANCIAL STATEMENTS—MARCH 31, 2026 (Unaudited) (continued)

 

14. Federal Tax Information (continued)

 

As of September 30, 2025, the components of accumulated earnings (deficit) on a tax basis were as follows:

 

Undistributed ordinary income:		$	—
Undistributed long-term capital gains:			—
Accumulated realized capital and other losses:			(900,234,892	)
Net unrealized appreciation/depreciation:			6,682,659,401
Other temporary differences:			(30,614,594	)
Total		$	5,751,809,915

 

As of March 31, 2026, the aggregate unrealized appreciation/depreciation and the aggregate cost of investment securities for tax purposes, including purchased options were as follows:

 

Excess of value over tax cost gross appreciation		$	5,138,610,323
Excess of tax cost over value gross depreciation			(212,998,240	)
Net unrealized appreciation		$	4,925,612,083
Cost of total investments for income tax purposes		$	7,052,837,866

 

The authoritative guidance requires that certain components of net assets be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or NAV. The permanent differences are primarily attributable to the write-off of net investment loss. For the year ended September 30, 2025, permanent differences in book and tax accounting have been reclassified to paid-in capital, undistributed net investment income (loss) and accumulated realized gain (loss) as follows:

 

Decrease Paid-in-Capital		Increase Undistributed Net Investment Income/(Loss)		Decrease Accumulated Realized Gain/(Loss)
$(120,950,299)		$126,025,269		$(5,074,970)

 

During the year ended September 30, 2025 and year ended September 30, 2024, the Fund did not pay any distributions.

 

ASC Topic 740 Accounting for Uncertainty in Income Taxes (“ASC Topic 740”) provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the Fund’s financial statements. ASC Topic 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are recorded as a tax benefit or expense in the current year. Management’s determinations regarding ASC Topic 740 may be subject to review and adjustment at a later date based upon factors including, but not limited to, an ongoing analysis of tax laws, regulations and interpretations thereof. The Fund recognizes the tax benefits of uncertain tax positions only where the position is “more-likely-than-not” to be sustained assuming examination by tax authorities. In accordance with authoritative guidance, management has analyzed the Fund’s tax positions for the open tax years from 2021 through 2024, and has concluded that no provision for income tax is required in the Fund’s financial statements. The Fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period, the Fund did not record any interest or penalties. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

 

 

ACAP STRATEGIC FUND

NOTES TO FINANCIAL STATEMENTS—MARCH 31, 2026 (Unaudited) (continued)

 

14. Federal Tax Information (continued)

 

The Fund may be subject to a tax imposed on net realized gains on securities of certain foreign countries. The Fund records an estimated deferred tax liability for net unrealized gains on these securities in an amount that would be payable if the securities were disposed of on the valuation date. At September 30, 2025, the Fund had no deferred tax liability.

 

15. Financial Highlights

 

The following table includes selected data for a share outstanding throughout the periods shown.

 

		Class A				Class A				Class A				Class A				Class A				Class A
		For the Six Months Ended March 31, 2026				For the Year Ended September 30, 2025				For the Year Ended September 30, 2024				For the Year Ended September 30, 2023				For the Year Ended September 30, 2022				For the Year Ended September 30, 2021
Net asset value per Share, beginning of period		$	29.22			$	22.51			$	16.21			$	14.22			$	24.72			$	25.49
Income from investment operations (a):
Net investment income/(loss)			(0.35	)			(1.86	)			(0.36	)			(0.42	)			(0.58	)			(0.78	)
Net realized and net change in unrealized gain/(loss) from investment activities, foreign currency transactions, forward contracts, purchased options and total return swaps			(0.58	)			8.57				6.66				2.41				(9.52	)			1.07
Total income/(loss) from investment operations			(0.93	)			6 .71				6.30				1.99				(10.10	)			0.29
Distributions to shareholders:
Total distributions to shareholders			—				—				—				—				(0.40	)			(1.06	)
Net asset value per Share, end of period		$	28.29			$	29.22			$	22.51			$	16.21			$	14.22			$	24.72
Total return—gross (b) (c)			(3.18	)%			36.12	%			38.86	%			13.99	%			(41.51	)%			0.95	%
Total return—net (b) (c)			(3.18	)%			29.81	%			38.86	%			13.99	%			(41.51	)%			0.92	%
Ratios/supplemental data:
Net assets (dollars in thousands), end of period		$	7,740,460			$	7,986,628			$	6,457,218			$	5,546,690			$	5,356,661			$	9,471,744
Average net assets (dollars in thousands), end of period		$	8,117,581			$	6,985,419			$	6,500,598			$	5,707,615			$	7,538,699			$	9,152,450
Ratio of expenses to average net assets (c)			4.09	%			9.82	%			4.40	%			4.49	%			4.08	%			3.48	%
Ratio of net investment income/(loss) to average net assets (c)			(2.43	)%			(7.50	)%			(1.81	)%			(2.63	)%			(3.06	)%			(2.98	)%
Ratio of incentive fee to average net assets (c)			—	%			5.65	%			—	%			—	%			—	%			0.04	%
Ratio of expenses without incentive fee to average net assets (c)			4.09	%			4.17	%			4.40	%			4.49	%			4.08	%			3.44	%
Ratio of expenses without incentive fee, dividend & interest expense and security trading related expenses to average net assets (c)			2.36	%			2.37	%			2.38	%			2.39	%			2.38	%			2.37	%
Ratio of net investment income/(loss) without incentive fee to average net assets (c)			(2.43	)%			(1.85	)%			(1.81	)%			(2.63	)%			(3.06	)%			(2.94	)%
Portfolio turnover on investments in securities			105	%			143	%			149	%			119	%			159	%			107	%
Average debt ratio			1.75	%			1.44	%			1.10	%			0.04	%			0.20	%			0.45	%
Average commission rate paid		$	0.09			$	0.08			$	0.06			$	0.04			$	0.05			$	0.05

 

 

ACAP STRATEGIC FUND

NOTES TO FINANCIAL STATEMENTS—MARCH 31, 2026 (Unaudited) (continued)

 

15. Financial Highlights (continued)

 

		Class W				Class W				Class W				Class W				Class W				Class W
		For the Six Months Ended March 31, 2026				For the Year Ended September 30, 2025				For the Year Ended September 30, 2024				For the Year Ended September 30, 2023				For the Year Ended September 30, 2022				For the Year Ended September 30, 2021
Net asset value per Share, beginning of period		$	22.19			$	16.97			$	12.13			$	10.56			$	18.33			$	19.02
Income from investment operations (a):
Net investment income/(loss)			(0.18	)			(1.26	)			(0.17	)			(0.22	)			(0.33	)			(0.41	)
Net realized and net change in unrealized gain/(loss) from investment activities, foreign currency transactions, forward contracts, purchased options and total return swaps			(0.44	)			6.48				5.01				1.79				(7.04	)			0.78
Total income/(loss) from investment operations		$	(0.62	)			5.22				4.84				1.57				(7.37	)			0.37
Distributions to shareholders:
Total distributions to shareholders			—				—				—				—				(0.40	)			(1.06	)
Net asset value per Share, end of period		$	21.57			$	22.19			$	16.97			$	12.13			$	10.56			$	18.33
Total return—gross (b) (c)			(2.79	)%			37.12	%			39.90	%			14.87	%			(41.09	)%			1.65	%
Total return—net (b) (c)			(2.79	)%			30.76	%			39.90	%			14.87	%			(41.09	)%			1.69	%
Ratios/supplemental data:
Net assets (dollars in thousands), end of period		$	2,610,232			$	2,663,335			$	2,135,202			$	1,246,255			$	1,467,291			$	2,745,394
Average net assets (dollars in thousands), end of period		$	2,722,083			$	2,308,970			$	1,613,656			$	1,442,790			$	2,170,161			$	2,603,130
Ratio of expenses to average net assets (c)			3.33	%			9.07	%			3.65	%			3.74	%			3.32	%			2.65	%
Ratio of net investment income/(loss) to average net assets (c)			(1.66	)%			(6.76	)%			(1.10	)%			(1.87	)%			(2.31	)%			(2.15	)%
Ratio of incentive fee to average net assets (c)			—	%			5.66	%			—	%			—	%			—	%			—	%
Ratio of expenses without incentive fee to average net assets (c)			3.34	%			3.42	%			3.65	%			3.74	%			3.32	%			2.69	%
Ratio of expenses without incentive fee, dividend & interest expense and security trading related expenses to average net assets (c)			1.61	%			1.62	%			1.63	%			1.64	%			1.64	%			1.62	%
Ratio of net investment income/(loss) without incentive fee to average net assets (c)			(1.66	)%			(1.10	)%			(1.10	)%			(1.87	)%			(2.31	)%			(2.19	)%
Portfolio turnover on investments in securities			105	%			143	%			149	%			119	%			159	%			107	%
Average debt ratio			1.75	%			1.44	%			1.10	%			0.04	%			0.20	%			0.45	%
Average commission rate paid		$	0.09			$	0.08			$	0.06			$	0.04			$	0.05			$	0.05

 

(a)	Per Share amounts presented are based on the average monthly Shares outstanding throughout the period indicated.

 

(b)

Total return gross/net of incentive fee is calculated assuming an investment on the first day of each period reported, reinvestment of all dividends and distributions, if any, at net asset value on the ex-dividend dates, and a sale at net asset value on the last day of each period reported. The figures do not include any applicable sales charges; results would be lower if they were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund Shares.

 

(c)	The computation of such ratios for an individual shareholder may vary from these ratios due to timing of capital activity.

 

16. Subsequent Events

 

Subsequent to March 31, 2026, and through May 22, 2026, the Fund had proceeds from sales of shares of $64,587,577 and $23,876,924 in Class A shares and Class W shares, respectively.

 

 

ACAP STRATEGIC FUND

 

Supplemental Information
(Unaudited)

 

Disclosure of Portfolio Holdings: The Fund files a Form N-PORT with the Securities and Exchange Commission (the “SEC”) no more than sixty days after the Fund’s first and third fiscal quarters of each fiscal year. For the Fund, this would be for the fiscal quarters ending December 31 and June 30. Form N-PORT includes a complete schedule of the Fund’s portfolio holdings as of the end of those fiscal quarters. The Fund’s N-PORT filings can be found free of charge on the SEC’s website at http://www.sec.gov, or they may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. (call 800-SEC-0330 for information on the operation of the Public Reference Room).

 

Voting Proxies on Fund Portfolio Securities: A description of the policies and procedures that the Adviser uses to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 are available without charge, upon request, by calling your financial advisor, or calling collect (212) 716-6840, or on the SEC’s website at http://www.sec.gov.

 

Supplemental Tax Information: If during the year you would like information on estimated capital gains, please contact the Fund at (212) 716-6840.

 

 

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(b)

Not applicable.

 

Item 2. Code of Ethics.

 

Not applicable.

 

Item 3. Audit Committee Financial Expert.

 

Not applicable.

 

Item 4. Principal Accountant Fees and Services.

 

Not applicable.

 

Item 5. Audit Committee of Listed Registrants.

 

Not applicable.

 

Item 6. Investments.

 

(a)

Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1(a) of this form or is included in the financial statements filed under Item 7 of this Form.

 

(b)

Not applicable.

 

Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.

 

(a)

Not applicable.

 

(b)

Not applicable.

 

 

Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.

 

Not applicable.

 

Item 9. Proxy Disclosures for Open-End Management Investment Companies.

 

Not applicable.

 

Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.

 

Not applicable.

 

Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.

 

Not applicable.

 

Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

 

Not applicable.

 

Item 13. Portfolio Managers of Closed-End Management Investment Companies.

 

Not applicable.

 

Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

 

Not applicable.

 

Item 15. Submission of Matters to a Vote of Security Holders.

 

There have been no material changes to the procedures by which the shareholders may recommend nominees to the Board, where those changes were implemented after the Registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.

 

 

Item 16. Controls and Procedures.

 

(a)

The Registrant’s principal executive and principal financial officers 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") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

 

(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 (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

 

Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

 

Not applicable.

 

Item 18. Recovery of Erroneously Awarded Compensation.

 

Not Applicable.

 

 

Item 19. Exhibits.

 

	(a)(1)	Not applicable.
	(a)(2)	Not applicable.
	(a)(3)	Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
	(a)(4)	Not applicable.
	(a)(5)	Not applicable.
	(b)	Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 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.

 

(Registrant)

ACAP Strategic Fund

 

By (Signature and Title)*	/s/ Gregory D. Jakubowsky
	Gregory D. Jakubowsky, President and Principal Executive Officer
	(principal executive officer)

 

Date	June 5, 2026

 

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 (Signature and Title)*	/s/ Gregory D. Jakubowsky
	Gregory D. Jakubowsky, President and Principal Executive Officer
	(principal executive officer)

 

Date	June 5, 2026

 

By (Signature and Title)*	/s/ George Mykoniatis
	George Mykoniatis, Treasurer and Principal Financial Officer
	(principal financial officer)

 

Date	June 5, 2026

 

^* Print the name and title of each signing officer under his or her signature.

 

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