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BlackRock Enhanced Large Cap Core Fund, Inc.

Regulatory Filings Nov 24, 2015

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N-Q 1 d80843dnq.htm BLACKROCK ENHANCED CAPITAL & INCOME FUND, INC. BLACKROCK ENHANCED CAPITAL & INCOME FUND, INC.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-21506

Name of Fund: BlackRock Enhanced Capital and Income Fund, Inc. (CII)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Enhanced Capital and Income Fund, Inc., 55 East 52 nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 12/31/2015

Date of reporting period: 09/30/2015

Item 1 – Schedule of Investments

Schedule of Investments September 30, 2015 (Unaudited)
(Percentages shown are based on Net Assets)
Common Stocks Value
Aerospace & Defense — 1.1%
Raytheon Co. (a) 66,761 $ 7,294,307
Air Freight & Logistics — 1.2%
FedEx Corp. (a) 55,251 7,955,039
Airlines — 2.2%
Southwest Airlines Co. (a) 268,545 10,215,452
United Continental Holdings, Inc. (a)(b) 72,635 3,853,287
14,068,739
Auto Components — 2.0%
Goodyear Tire & Rubber Co. (a) 99,400 2,915,402
Lear Corp. (a) 89,000 9,681,420
12,596,822
Banks — 11.7%
Bank of America Corp. (a) 914,788 14,252,397
Citigroup, Inc. (a) 313,187 15,537,207
JPMorgan Chase & Co. (a) 340,165 20,739,860
SunTrust Banks, Inc. (a) 225,820 8,635,357
U.S. Bancorp. (a) 383,915 15,744,354
74,909,175
Beverages — 2.1%
Dr. Pepper Snapple Group, Inc. (a) 101,200 7,999,860
Molson Coors Brewing Co., Class B (a) 62,570 5,194,561
13,194,421
Biotechnology — 2.3%
Amgen, Inc. (a) 78,610 10,873,335
Gilead Sciences, Inc. (a) 40,900 4,015,971
14,889,306
Building Products — 0.5%
Owens Corning (a) 76,400 3,201,924
Capital Markets — 1.7%
Goldman Sachs Group, Inc. (a) 64,223 11,159,389
Chemicals — 0.7%
Dow Chemical Co. (a) 110,102 4,668,325
Communications Equipment — 2.9%
Brocade Communications Systems, Inc. (a) 489,101 5,076,868
Cisco Systems, Inc. (a) 519,422 13,634,828
18,711,696
Construction & Engineering — 1.0%
AECOM (a)(b) 230,700 6,346,557
Consumer Finance — 0.9%
Discover Financial Services (a) 25,523 1,326,941
SLM Corp. (b) 619,946 4,587,600
5,914,541
Containers & Packaging — 0.5%
Packaging Corp. of America (a) 54,243 3,263,259
Electronic Equipment, Instruments & Components — 0.4%
CDW Corp. (a) 39,000 1,593,540
Common Stocks Value
Electronic Equipment, Instruments & Components (continued)
Zebra Technologies Corp., Class A (a)(b) 15,221 $ 1,165,168
2,758,708
Energy Equipment & Services — 2.3%
Atwood Oceanics, Inc. (a) 168,235 2,491,560
Schlumberger Ltd. (a) 158,799 10,952,367
Weatherford International PLC (a)(b) 175,445 1,487,774
14,931,701
Food & Staples Retailing — 3.2%
CVS Health Corp. (a) 208,487 20,114,826
Kroger Co. (a) 20,288 731,788
20,846,614
Food Products — 0.7%
Pilgrim’s Pride Corp. (a) 55,078 1,144,521
Tyson Foods, Inc., Class A (a) 77,426 3,337,061
4,481,582
Health Care Equipment & Supplies — 0.1%
Medtronic PLC (a) 9,440 631,914
Health Care Providers & Services — 12.5%
Aetna, Inc. (a) 141,108 15,438,626
Centene Corp. (a)(b) 110,000 5,965,300
Cigna Corp. (a) 103,000 13,907,060
Express Scripts Holding Co. (a)(b) 24,200 1,959,232
Humana, Inc. (a) 37,018 6,626,222
Laboratory Corp. of America Holdings (a)(b) 66,089 7,168,674
McKesson Corp. (a) 36,011 6,663,115
UnitedHealth Group, Inc. (a) 117,120 13,587,091
Universal Health Services, Inc., Class B (a) 73,090 9,122,363
80,437,683
Hotels, Restaurants & Leisure — 2.4%
Carnival Corp. (a) 270,868 13,462,140
Las Vegas Sands Corp. (a) 48,560 1,843,823
15,305,963
Household Durables — 1.1%
DR Horton, Inc. (a) 73,298 2,152,029
Lennar Corp., Class A (a) 46,720 2,248,634
NVR, Inc. (b) 890 1,357,446
Toll Brothers, Inc. (a)(b) 38,777 1,327,724
7,085,833
Industrial Conglomerates — 0.6%
3M Co. (a) 25,149 3,565,374
Insurance — 3.6%
American International Group, Inc. (a) 289,695 16,460,470
Travelers Cos., Inc. (a) 67,248 6,693,193
23,153,663
Internet & Catalog Retail — 1.0%
Priceline Group, Inc. (a)(b) 5,344 6,609,780
Portfolio Abbreviations — ADR American Depositary Receipt SPDR Standard & Poor’s Depositary Receipt USD U.S. Dollar

SEPTEMBER 30, 2015 1

Schedule of Investments (continued) BlackRock Enhanced Capital and Income Fund, Inc. (CII)

Common Stocks Value
Internet Software & Services — 4.4%
Facebook, Inc., Class A (a)(b) 94,311 $ 8,478,559
Google, Inc., Class A (a)(b) 15,622 9,972,616
Google, Inc., Class C (a)(b) 15,656 9,525,424
27,976,599
IT Services — 4.4%
Amdocs Ltd. (a) 100,591 5,721,616
Cognizant Technology Solutions Corp., Class A (a)(b) 173,734 10,877,486
DST Systems, Inc. (a) 33,036 3,473,405
MasterCard, Inc., Class A (a) 40,453 3,645,624
Total System Services, Inc. 103,151 4,686,150
28,404,281
Media — 3.7%
Comcast Corp., Class A (a) 312,005 17,746,844
Omnicom Group, Inc. (a) 38,563 2,541,302
Viacom, Inc., Class B (a) 80,600 3,477,890
23,766,036
Multi-Utilities — 0.7%
Public Service Enterprise Group, Inc. (a) 103,211 4,351,376
Oil, Gas & Consumable Fuels — 3.2%
BP PLC — ADR (a) 200,430 6,125,141
Exxon Mobil Corp. (a)(c) 26,826 1,994,513
Hess Corp. (a) 19,409 971,615
PBF Energy, Inc., Class A 52,486 1,481,680
Suncor Energy, Inc. (a) 247,445 6,611,730
Tesoro Corp. (a) 21,244 2,065,767
Valero Energy Corp. (a) 22,400 1,346,240
20,596,686
Paper & Forest Products — 0.6%
Domtar Corp. 98,685 3,527,989
Pharmaceuticals — 2.6%
AstraZeneca PLC — ADR (a) 82,236 2,616,750
Johnson & Johnson (a) 23,783 2,220,143
Merck & Co., Inc. (a) 4,075 201,264
Pfizer, Inc. (a) 21,481 674,718
Teva Pharmaceutical Industries Ltd. — ADR (a) 199,510 11,264,335
16,977,210
Semiconductors & Semiconductor Equipment — 2.1%
Intel Corp. (a) 124,655 3,757,102
Micron Technology, Inc. (a)(b) 355,100 5,319,398
NVIDIA Corp. (a) 171,400 4,225,010
13,301,510
Software — 3.0%
Activision Blizzard, Inc. (a) 196,100 6,057,529
Microsoft Corp. (a)(c) 191,005 8,453,881
Common Stocks Value
Software (continued)
Oracle Corp. (a) 138,025 $ 4,985,463
19,496,873
Specialty Retail — 5.5%
Home Depot, Inc. (a) 114,649 13,240,813
Lowe’s Cos., Inc. (a) 248,449 17,123,105
Ross Stores, Inc. (a) 109,090 5,287,592
35,651,510
Technology Hardware, Storage & Peripherals — 4.5%
Apple, Inc. (a) 158,627 17,496,554
EMC Corp. 94,672 2,287,276
Western Digital Corp. (a) 117,110 9,303,218
29,087,048
Textiles, Apparel & Luxury Goods — 0.3%
Fossil Group, Inc. (a)(b) 31,095 1,737,589
Tobacco — 2.0%
Altria Group, Inc. (a) 230,285 12,527,504
Total Common Stocks — 95.7% 615,384,526
Investment Companies
Investment Companies — 0.4%
Utilities Select Sector SPDR Fund 56,000 2,424,240
Total Long-Term
Investments (Cost — $649,518,102) — 96.1% 617,808,766
Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.10% (d)(e) 28,229,516 28,229,516
Total Short-Term Securities (Cost — $28,229,516) — 4.4% 28,229,516
Total Investments Before Options
Written (Cost — $677,747,618*) — 100.5% 646,038,282
Options Written
(Premiums Received — $6,787,790) — (0.6)% (3,527,255 )
Total Investments Net of Options Written — 99.9% 642,511,027
Other Assets Less Liabilities — 0.1% 444,143
Net Assets — 100.0% $ 642,955,170
Notes to Schedule of Investments
* As of period end, gross unrealized appreciation and depreciation based on cost for federal income tax
purposes were as follows:
Tax cost $ 699,493,502
Gross unrealized appreciation $ 20,666,242
Gross unrealized depreciation (74,121,462 )
Net unrealized depreciation $ (53,455,220 )

(a) All or a portion of security has been pledged and/or segregated as collateral in connection with outstanding exchange-traded options written.

(b) Non-income producing security.

(c) All or a portion of security has been pledged as collateral in connection with outstanding OTC derivatives.

(d) Represents the current yield as of report date.

2 SEPTEMBER 30, 2015

Schedule of Investments (continued) BlackRock Enhanced Capital and Income Fund, Inc. (CII)

(e) During the period ended September 30, 2015, investments in issuers considered to be affiliates of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate — BlackRock Liquidity Funds, TempFund, Institutional Class 1,879,452 Net Activity — 26,350,064 28,229,516 Income — $ 19,133
BlackRock Liquidity Series, LLC Money Market Series $673,750 $ (673,750 ) — $ 9,555 1

1 Represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

• For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

Derivative Financial Instruments Outstanding as of Period End

Exchange-Traded Options Written — Description Put/ Call Expiration Date Strike Price Contracts Value
Aetna, Inc. Call 10/02/15 USD 119.00 150 $ (525 )
Aetna, Inc. Call 10/02/15 USD 120.00 146 (365 )
Aetna, Inc. Call 10/02/15 USD 121.00 120 (1,560 )
American International Group, Inc. Call 10/02/15 USD 62.00 650 (7,150 )
Amgen, Inc. Call 10/02/15 USD 162.50 61 (305 )
Apple, Inc. Call 10/02/15 USD 117.00 60 (90 )
Apple, Inc. Call 10/02/15 USD 118.00 60 (90 )
Apple, Inc. Call 10/02/15 USD 120.00 32 (32 )
Bank of America Corp. Call 10/02/15 USD 17.50 1,383 (1,383 )
Cisco Systems, Inc. Call 10/02/15 USD 27.00 287 (287 )
Citigroup, Inc. Call 10/02/15 USD 57.50 190 (1,330 )
Cognizant Technology Solutions Corp., Class A Call 10/02/15 USD 67.50 524 (13,100 )
CVS Health Corp. Call 10/02/15 USD 106.00 550 (13,750 )
Discover Financial Services Call 10/02/15 USD 53.00 128 (1,280 )
Dow Chemical Co. Call 10/02/15 USD 46.00 245 (735 )
DR Horton, Inc. Call 10/02/15 USD 31.50 92 (736 )
Exxon Mobil Corp. Call 10/02/15 USD 75.50 34 (476 )
Facebook, Inc., Class A Call 10/02/15 USD 94.50 40 (80 )
Gilead Sciences, Inc. Call 10/02/15 USD 112.00 60 (390 )
Goldman Sachs Group, Inc. Call 10/02/15 USD 205.00 237 (11,850 )
Goodyear Tire & Rubber Co. Call 10/02/15 USD 31.50 100 (500 )
Google, Inc., Class C Call 10/02/15 USD 665.00 20 (300 )
Home Depot, Inc. Call 10/02/15 USD 119.00 50 (150 )
JPMorgan Chase & Co. Call 10/02/15 USD 69.50 452 (904 )
Las Vegas Sands Corp. Call 10/02/15 USD 55.00 67 (670 )
MasterCard, Inc., Class A Call 10/02/15 USD 95.00 152 (2,280 )
Medtronic PLC Call 10/02/15 USD 77.50 2 (8 )
Microsoft Corp. Call 10/02/15 USD 45.00 9 (58 )
Microsoft Corp. Call 10/02/15 USD 47.50 187 (187 )
NVIDIA Corp. Call 10/02/15 USD 23.50 75 (8,700 )
Oracle Corp. Call 10/02/15 USD 38.50 344 (344 )
Oracle Corp. Call 10/02/15 USD 40.50 249 (2,739 )
Southwest Airlines Co. Call 10/02/15 USD 39.00 100 (750 )
Southwest Airlines Co. Call 10/02/15 USD 40.00 100 (500 )
Suncor Energy, Inc. Call 10/02/15 USD 28.00 275 (825 )
Teva Pharmaceutical Industries Ltd. — ADR Call 10/02/15 USD 70.00 164 (492 )
Toll Brothers, Inc. Call 10/02/15 USD 38.50 105 (1,050 )
United Continental Holdings, Inc. Call 10/02/15 USD 60.00 117 (1,170 )
UnitedHealth Group, Inc. Call 10/02/15 USD 119.00 110 (3,575 )
Western Digital Corp. Call 10/02/15 USD 84.00 65 (1,040 )
Western Digital Corp. Call 10/02/15 USD 85.00 65 (520 )
SunTrust Banks, Inc. Call 10/05/15 USD 42.40 941 (36 )

SEPTEMBER 30, 2015 3

Schedule of Investments (continued) BlackRock Enhanced Capital and Income Fund, Inc. (CII)

Description — Raytheon Co. Put/ Call — Call Expiration Date — 10/06/15 USD 107.01 82 Value — $ (18,671 )
Aetna, Inc. Call 10/09/15 USD 123.00 120 (2,700 )
Altria Group, Inc. Call 10/09/15 USD 55.50 250 (8,000 )
American International Group, Inc. Call 10/09/15 USD 60.50 150 (1,275 )
Amgen, Inc. Call 10/09/15 USD 157.50 97 (1,358 )
Apple, Inc. Call 10/09/15 USD 117.00 194 (2,619 )
Bank of America Corp. Call 10/09/15 USD 17.00 925 (1,388 )
Cisco Systems, Inc. Call 10/09/15 USD 26.50 745 (15,272 )
Citigroup, Inc. Call 10/09/15 USD 55.00 151 (604 )
Cognizant Technology Solutions Corp., Class A Call 10/09/15 USD 64.00 126 (6,615 )
Comcast Corp., Class A Call 10/09/15 USD 58.50 842 (23,576 )
Dow Chemical Co. Call 10/09/15 USD 47.50 74 (444 )
Facebook, Inc., Class A Call 10/09/15 USD 92.00 210 (20,370 )
Goldman Sachs Group, Inc. Call 10/09/15 USD 185.00 84 (2,016 )
Goodyear Tire & Rubber Co. Call 10/09/15 USD 30.50 230 (4,600 )
Google, Inc., Class A Call 10/09/15 USD 665.00 19 (3,088 )
Google, Inc., Class A Call 10/09/15 USD 675.00 25 (1,562 )
Google, Inc., Class C Call 10/09/15 USD 622.50 20 (7,800 )
Google, Inc., Class C Call 10/09/15 USD 645.00 15 (788 )
Hess Corp. Call 10/09/15 USD 60.00 170 (2,210 )
Home Depot, Inc. Call 10/09/15 USD 118.00 136 (8,092 )
Intel Corp. Call 10/09/15 USD 30.00 86 (5,461 )
Las Vegas Sands Corp. Call 10/09/15 USD 47.50 140 (700 )
Medtronic PLC Call 10/09/15 USD 72.00 21 (284 )
Merck & Co., Inc. Call 10/09/15 USD 57.00 10 (50 )
Microsoft Corp. Call 10/09/15 USD 44.00 180 (14,760 )
Microsoft Corp. Call 10/09/15 USD 45.50 100 (1,750 )
Pfizer, Inc. Call 10/09/15 USD 34.00 29 (174 )
Schlumberger Ltd. Call 10/09/15 USD 77.50 247 (4,940 )
Schlumberger Ltd. Call 10/09/15 USD 80.00 90 (720 )
Southwest Airlines Co. Call 10/09/15 USD 39.00 190 (6,650 )
Tesoro Corp. Call 10/09/15 USD 98.00 52 (22,360 )
Teva Pharmaceutical Industries Ltd. — ADR Call 10/09/15 USD 64.50 272 (3,808 )
U.S. Bancorp. Call 10/09/15 USD 42.50 243 (2,794 )
UnitedHealth Group, Inc. Call 10/09/15 USD 116.00 83 (21,206 )
Valero Energy Corp. Call 10/09/15 USD 62.00 110 (10,450 )
Weatherford International PLC Call 10/09/15 USD 11.00 292 (2,044 )
Dr. Pepper Snapple Group, Inc. Call 10/15/15 USD 78.51 267 (43,649 )
AECOM Call 10/16/15 USD 27.50 523 (39,225 )
AECOM Call 10/16/15 USD 30.00 130 (1,950 )
Altria Group, Inc. Call 10/16/15 USD 55.00 316 (23,700 )
Amdocs Ltd. Call 10/16/15 USD 60.00 50 (2,500 )
Amgen, Inc. Call 10/16/15 USD 160.00 97 (388 )
Apple, Inc. Call 10/16/15 USD 120.00 178 (2,492 )
Atwood Oceanics, Inc. Call 10/16/15 USD 20.00 210 (3,150 )
Bank of America Corp. Call 10/16/15 USD 17.00 446 (1,561 )
Brocade Communications Systems, Inc. Call 10/16/15 USD 11.00 1,150 (10,350 )
Centene Corp. Call 10/16/15 USD 65.00 325 (9,750 )
Cigna Corp. Call 10/16/15 USD 145.00 275 (5,500 )
Cisco Systems, Inc. Call 10/16/15 USD 27.00 620 (9,610 )
Citigroup, Inc. Call 10/16/15 USD 55.00 245 (2,695 )
Cognizant Technology Solutions Corp., Class A Call 10/16/15 USD 65.00 102 (5,100 )
Dr. Pepper Snapple Group, Inc. Call 10/16/15 USD 80.00 93 (9,068 )
DST Systems, Inc. Call 10/16/15 USD 110.00 110 (15,675 )
Express Scripts Holding Co. Call 10/16/15 USD 87.50 61 (1,068 )
Facebook, Inc., Class A Call 10/16/15 USD 94.50 135 (10,665 )
Facebook, Inc., Class A Call 10/16/15 USD 95.00 31 (2,046 )
FedEx Corp. Call 10/16/15 USD 165.00 134 (737 )
Goodyear Tire & Rubber Co. Call 10/16/15 USD 32.00 150 (1,500 )
Google, Inc., Class A Call 10/16/15 USD 675.00 20 (12,900 )
Google, Inc., Class C Call 10/16/15 USD 635.00 9 (7,335 )
Home Depot, Inc. Call 10/16/15 USD 115.00 56 (14,000 )

4 SEPTEMBER 30, 2015

Schedule of Investments (continued) BlackRock Enhanced Capital and Income Fund, Inc. (CII)

Description — Kroger Co. Put/ Call — Call Expiration Date — 10/16/15 USD 36.25 26 Value — $ (1,885 )
Laboratory Corp. of America Holdings Call 10/16/15 USD 125.00 165 (8,250 )
Las Vegas Sands Corp. Call 10/16/15 USD 50.00 73 (110 )
Lear Corp. Call 10/16/15 USD 110.00 124 (28,520 )
Lear Corp. Call 10/16/15 USD 115.00 124 (7,440 )
Lennar Corp., Class A Call 10/16/15 USD 52.50 27 (405 )
Lennar Corp., Class A Call 10/16/15 USD 55.00 137 (411 )
Lowe’s Cos., Inc. Call 10/16/15 USD 70.00 500 (41,750 )
Lowe’s Cos., Inc. Call 10/16/15 USD 72.50 162 (3,078 )
McKesson Corp. Call 10/16/15 USD 210.00 115 (2,875 )
Micron Technology, Inc. Call 10/16/15 USD 18.00 900 (13,950 )
Microsoft Corp. Call 10/16/15 USD 45.00 54 (2,808 )
Microsoft Corp. Call 10/16/15 USD 46.00 188 (3,760 )
Molson Coors Brewing Co., Class B Call 10/16/15 USD 77.50 200 (138,000 )
NVIDIA Corp. Call 10/16/15 USD 22.00 200 (55,400 )
Omnicom Group, Inc. Call 10/16/15 USD 70.00 96 (3,360 )
Oracle Corp. Call 10/16/15 USD 40.00 249 (249 )
Owens Corning Call 10/16/15 USD 46.00 75 (938 )
Owens Corning Call 10/16/15 USD 47.00 116 (1,450 )
Packaging Corp. of America Call 10/16/15 USD 70.00 170 (3,825 )
Pilgrim’s Pride Corp. Call 10/16/15 USD 22.00 140 (2,800 )
Priceline Group, Inc. Call 10/16/15 USD 1,240.00 7 (20,580 )
Raytheon Co. Call 10/16/15 USD 110.00 40 (5,320 )
Ross Stores, Inc. Call 10/16/15 USD 50.00 100 (5,000 )
Ross Stores, Inc. Call 10/16/15 USD 52.50 380 (3,800 )
Southwest Airlines Co. Call 10/16/15 USD 40.00 665 (16,625 )
Tesoro Corp. Call 10/16/15 USD 100.00 30 (11,400 )
Tesoro Corp. Call 10/16/15 USD 105.00 25 (5,538 )
Toll Brothers, Inc. Call 10/16/15 USD 37.00 88 (1,760 )
Tyson Foods, Inc., Class A Call 10/16/15 USD 43.00 100 (10,250 )
Tyson Foods, Inc., Class A Call 10/16/15 USD 44.00 95 (5,462 )
U.S. Bancorp. Call 10/16/15 USD 43.00 176 (2,552 )
U.S. Bancorp. Call 10/16/15 USD 45.00 310 (310 )
Universal Health Services, Inc., Class B Call 10/16/15 USD 140.00 166 (7,470 )
Universal Health Services, Inc., Class B Call 10/16/15 USD 145.00 200 (10,000 )
Viacom, Inc., Class B Call 10/16/15 USD 45.00 56 (5,040 )
Western Digital Corp. Call 10/16/15 USD 87.50 207 (9,418 )
Zebra Technologies Corp., Class A Call 10/16/15 USD 90.00 152 (7,600 )
3M Co. Call 10/23/15 USD 143.00 126 (35,595 )
Activision Blizzard, Inc. Call 10/23/15 USD 31.50 229 (16,488 )
Altria Group, Inc. Call 10/23/15 USD 56.00 250 (13,875 )
Amgen, Inc. Call 10/23/15 USD 155.00 69 (2,794 )
Apple, Inc. Call 10/23/15 USD 115.00 120 (15,420 )
Bank of America Corp. Call 10/23/15 USD 16.50 440 (5,940 )
BP PLC — ADR Call 10/23/15 USD 31.00 250 (18,625 )
Cisco Systems, Inc. Call 10/23/15 USD 26.50 125 (5,250 )
Citigroup, Inc. Call 10/23/15 USD 52.50 187 (9,911 )
Comcast Corp., Class A Call 10/23/15 USD 58.50 360 (24,480 )
Dow Chemical Co. Call 10/23/15 USD 46.50 72 (1,944 )
DR Horton, Inc. Call 10/23/15 USD 32.50 210 (3,150 )
Express Scripts Holding Co. Call 10/23/15 USD 85.50 66 (3,960 )
Exxon Mobil Corp. Call 10/23/15 USD 74.00 33 (6,386 )
Exxon Mobil Corp. Call 10/23/15 USD 76.00 33 (3,102 )
Facebook, Inc., Class A Call 10/23/15 USD 95.00 37 (4,625 )
FedEx Corp. Call 10/23/15 USD 155.00 143 (8,080 )
Gilead Sciences, Inc. Call 10/23/15 USD 110.00 160 (5,040 )
Goodyear Tire & Rubber Co. Call 10/23/15 USD 31.00 100 (3,500 )
Google, Inc., Class C Call 10/23/15 USD 642.50 15 (14,550 )
Home Depot, Inc. Call 10/23/15 USD 118.00 136 (19,448 )
Home Depot, Inc. Call 10/23/15 USD 119.00 106 (11,342 )
Humana, Inc. Call 10/23/15 USD 190.00 93 (18,368 )
Intel Corp. Call 10/23/15 USD 31.50 135 (5,670 )
JPMorgan Chase & Co. Call 10/23/15 USD 64.00 400 (17,400 )
MasterCard, Inc., Class A Call 10/23/15 USD 91.50 25 (3,900 )
Merck & Co., Inc. Call 10/23/15 USD 54.50 10 (105 )

SEPTEMBER 30, 2015 5

Schedule of Investments (continued) BlackRock Enhanced Capital and Income Fund, Inc. (CII)

Description — Microsoft Corp. Put/ Call — Call Expiration Date — 10/23/15 USD 45.50 92 Value — $ (7,084 )
NVIDIA Corp. Call 10/23/15 USD 24.00 285 (37,050 )
Pfizer, Inc. Call 10/23/15 USD 33.50 40 (760 )
Schlumberger Ltd. Call 10/23/15 USD 76.50 303 (8,787 )
Teva Pharmaceutical Industries Ltd. — ADR Call 10/23/15 USD 63.00 246 (5,535 )
Teva Pharmaceutical Industries Ltd. — ADR Call 10/23/15 USD 66.00 169 (1,098 )
United Continental Holdings, Inc. Call 10/23/15 USD 63.50 124 (1,488 )
Western Digital Corp. Call 10/23/15 USD 85.50 248 (27,404 )
Exxon Mobil Corp. Call 10/28/15 USD 74.00 34 (6,969 )
Activision Blizzard, Inc. Call 10/30/15 USD 31.00 320 (35,200 )
American International Group, Inc. Call 10/30/15 USD 61.50 500 (11,000 )
Amgen, Inc. Call 10/30/15 USD 150.00 71 (11,254 )
Apple, Inc. Call 10/30/15 USD 121.00 149 (15,124 )
AstraZeneca PLC — ADR Call 10/30/15 USD 35.00 205 (3,075 )
Cisco Systems, Inc. Call 10/30/15 USD 26.50 695 (34,402 )
Citigroup, Inc. Call 10/30/15 USD 52.00 501 (40,330 )
Cognizant Technology Solutions Corp., Class A Call 10/30/15 USD 64.50 100 (11,250 )
CVS Health Corp. Call 10/30/15 USD 102.00 489 (36,186 )
Facebook, Inc., Class A Call 10/30/15 USD 97.50 64 (9,280 )
Google, Inc., Class A Call 10/30/15 USD 670.00 20 (25,700 )
Humana, Inc. Call 10/30/15 USD 187.50 92 (25,760 )
Intel Corp. Call 10/30/15 USD 30.00 67 (7,973 )
Johnson & Johnson Call 10/30/15 USD 98.00 59 (3,894 )
JPMorgan Chase & Co. Call 10/30/15 USD 62.50 96 (10,368 )
JPMorgan Chase & Co. Call 10/30/15 USD 64.50 466 (22,601 )
Microsoft Corp. Call 10/30/15 USD 45.50 92 (7,912 )
Microsoft Corp. Call 10/30/15 USD 46.00 54 (3,672 )
Pfizer, Inc. Call 10/30/15 USD 33.50 19 (560 )
Priceline Group, Inc. Call 10/30/15 USD 1,350.00 12 (8,280 )
Southwest Airlines Co. Call 10/30/15 USD 40.00 200 (13,000 )
UnitedHealth Group, Inc. Call 10/30/15 USD 124.00 391 (54,345 )
Utilities Select Sector SPDR Fund Call 10/30/15 USD 43.50 280 (20,440 )
Public Service Enterprise Group, Inc. Call 11/03/15 USD 40.65 50 (10,357 )
CDW Corp. Call 11/05/15 USD 41.01 195 (27,171 )
Aetna, Inc. Call 11/06/15 USD 119.00 170 (31,450 )
Altria Group, Inc. Call 11/06/15 USD 56.50 455 (32,760 )
American International Group, Inc. Call 11/06/15 USD 58.00 148 (20,276 )
Bank of America Corp. Call 11/06/15 USD 16.50 1,379 (32,406 )
Cisco Systems, Inc. Call 11/06/15 USD 27.00 125 (4,625 )
Citigroup, Inc. Call 11/06/15 USD 52.00 291 (26,772 )
Comcast Corp., Class A Call 11/06/15 USD 58.00 360 (52,380 )
Dow Chemical Co. Call 11/06/15 USD 43.50 160 (24,000 )
DR Horton, Inc. Call 11/06/15 USD 32.00 65 (2,178 )
Fossil Group, Inc. Call 11/06/15 USD 61.50 155 (6,588 )
Home Depot, Inc. Call 11/06/15 USD 120.00 90 (12,150 )
Intel Corp. Call 11/06/15 USD 30.00 167 (20,458 )
JPMorgan Chase & Co. Call 11/06/15 USD 63.00 143 (15,158 )
MasterCard, Inc., Class A Call 11/06/15 USD 92.00 25 (5,600 )
Medtronic PLC Call 11/06/15 USD 70.50 12 (966 )
NVIDIA Corp. Call 11/06/15 USD 24.00 150 (23,400 )
Schlumberger Ltd. Call 11/06/15 USD 76.50 154 (6,622 )
Southwest Airlines Co. Call 11/06/15 USD 39.50 200 (19,500 )
Teva Pharmaceutical Industries Ltd. — ADR Call 11/06/15 USD 62.00 146 (8,979 )
U.S. Bancorp. Call 11/06/15 USD 43.00 420 (18,690 )
United Continental Holdings, Inc. Call 11/06/15 USD 57.50 121 (12,221 )
Viacom, Inc., Class B Call 11/10/15 USD 45.75 347 (50,267 )
Travelers Cos., Inc. Call 11/17/15 USD 101.75 84 (17,280 )
Activision Blizzard, Inc. Call 11/20/15 USD 31.00 320 (52,000 )
Activision Blizzard, Inc. Call 11/20/15 USD 33.00 110 (8,965 )
Amdocs Ltd. Call 11/20/15 USD 57.50 260 (45,500 )
AstraZeneca PLC — ADR Call 11/20/15 USD 35.00 205 (7,175 )
Carnival Corp. Call 11/20/15 USD 50.00 285 (57,712 )

6 SEPTEMBER 30, 2015

Schedule of Investments (continued) BlackRock Enhanced Capital and Income Fund, Inc. (CII)

Description — Cognizant Technology Solutions Corp., Class A Call Expiration Date — 11/20/15 USD 65.00 17 Value — $ (3,188 )
Intel Corp. Call 11/20/15 USD 30.00 167 (22,211 )
Johnson & Johnson Call 11/20/15 USD 95.50 60 (10,773 )
JPMorgan Chase & Co. Call 11/20/15 USD 65.00 143 (9,581 )
Laboratory Corp. of America Holdings Call 11/20/15 USD 125.00 165 (6,600 )
Lennar Corp., Class A Call 11/20/15 USD 50.00 70 (11,375 )
Lowe’s Cos., Inc. Call 11/20/15 USD 70.00 545 (109,000 )
McKesson Corp. Call 11/20/15 USD 220.00 115 (3,162 )
NVIDIA Corp. Call 11/20/15 USD 25.00 150 (19,500 )
Owens Corning Call 11/20/15 USD 47.00 191 (11,460 )
Pfizer, Inc. Call 11/20/15 USD 34.00 20 (630 )
Pilgrim’s Pride Corp. Call 11/20/15 USD 22.00 135 (10,125 )
Priceline Group, Inc. Call 11/20/15 USD 1,285.00 7 (30,275 )
Raytheon Co. Call 11/20/15 USD 110.00 170 (51,850 )
SunTrust Banks, Inc. Call 11/20/15 USD 40.00 188 (15,134 )
Tyson Foods, Inc., Class A Call 11/20/15 USD 44.00 219 (29,565 )
Total $ (2,784,278 )

OTC Options Written

Description — Domtar Corp. Put/ Call — Call Counterparty — Citibank N.A. Expiration Date — 10/02/15 USD 41.96 25,000 Value — $ —
U.S. Bancorp. Call Morgan Stanley & Co. International PLC 10/05/15 USD 42.60 38,500 (2,084 )
Public Service Enterprise Group, Inc. Call Goldman Sachs International 10/06/15 USD 41.49 7,400 (7,003 )
Centene Corp. Call Citibank N.A. 10/12/15 USD 65.01 27,500 (591 )
Packaging Corp. of America Call Deutsche Bank AG 10/12/15 USD 72.00 16,000 (16 )
SLM Corp. Call Morgan Stanley & Co. International PLC 10/12/15 USD 8.30 77,500 (1,207 )
Amdocs Ltd. Call Deutsche Bank AG 10/15/15 USD 58.89 25,000 (8,361 )
Carnival Corp. Call Morgan Stanley & Co. International PLC 10/15/15 USD 49.49 47,000 (63,824 )
Domtar Corp. Call Citibank N.A. 10/15/15 USD 38.78 24,400 (4,567 )
Total System Services, Inc. Call Citibank N.A. 10/15/15 USD 48.00 30,000 (7,683 )
Travelers Cos., Inc. Call Morgan Stanley & Co. International PLC 10/15/15 USD 106.95 25,300 (805 )
PBF Energy, Inc., Class A Call Citibank N.A. 10/19/15 USD 30.12 26,000 (17,241 )
Public Service Enterprise Group, Inc. Call Morgan Stanley & Co. International PLC 10/21/15 USD 40.13 30,200 (70,342 )
Total System Services, Inc. Call Morgan Stanley & Co. International PLC 10/22/15 USD 47.07 26,000 (14,231 )
Carnival Corp. Call Morgan Stanley & Co. International PLC 10/29/15 USD 49.49 47,000 (86,629 )
U.S. Bancorp. Call Morgan Stanley & Co. International PLC 10/29/15 USD 42.60 38,500 (20,983 )
Carnival Corp. Call Credit Suisse International 10/30/15 USD 52.30 13,000 (10,102 )
Cigna Corp. Call Citibank N.A. 10/30/15 USD 146.78 27,500 (12,938 )
Dr. Pepper Snapple Group, Inc. Call Credit Suisse International 10/30/15 USD 79.91 19,000 (28,976 )
DST Systems, Inc. Call Citibank N.A. 10/30/15 USD 107.12 6,500 (23,075 )
Lear Corp. Call Morgan Stanley & Co. International PLC 10/30/15 USD 101.75 19,700 (187,117 )
Lowe’s Cos., Inc. Call Citibank N.A. 10/30/15 USD 71.13 16,200 (13,561 )
Raytheon Co. Call Credit Suisse International 10/30/15 USD 106.21 4,200 (15,005 )
Ross Stores, Inc. Call Morgan Stanley & Co. International PLC 10/30/15 USD 50.82 13,000 (8,069 )
Brocade Communications Systems, Inc. Call Morgan Stanley & Co. International PLC 11/02/15 USD 10.49 89,000 (34,964 )
Kroger Co. Call Morgan Stanley & Co. International PLC 11/02/15 USD 38.42 2,500 (916 )
Molson Coors Brewing Co., Class B Call Morgan Stanley & Co. International PLC 11/02/15 USD 82.60 20,000 (84,488 )
Brocade Communications Systems, Inc. Call Citibank N.A. 11/12/15 USD 10.72 40,000 (14,562 )
Kroger Co. Call Morgan Stanley & Co. International PLC 11/13/15 USD 37.09 5,000 (3,637 )
Total $ (742,977 )

SEPTEMBER 30, 2015 7

Schedule of Investments (concluded) BlackRock Enhanced Capital and Income Fund, Inc. (CII)

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

• Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the ability to access

• Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

• Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, refer to the Trust’s most recent financial statements as contained in its semi-annual report.

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:

Assets:
Investments:
Long-Term Investments:
Common Stocks 1 $ 615,384,526 — — $ 615,384,526
Investment Companies 2,424,240 — — 2,424,240
Short-Term Securities 28,229,516 — — 28,229,516
Total $ 646,038,282 — — $ 646,038,282
1 See above Schedule of Investments for values in each industry.
Level 1 Level 2 Level 3 Total
Derivative Financial Instruments 2
Liabilities:
Equity contracts $ (2,599,108 ) $ (928,147 ) — $ (3,527,255 )
2 Derivative financial instruments are options written, which are shown at value.
The Trust may hold assets in which the fair value approximates the carrying amount for financial reporting purposes. As of period end, such assets are categorized
within the disclosure hierarchy as follows:
Level 1 Level 2 Level 3 Total
Assets:
Cash $ 620,557 — — $ 620,557
Foreign currency at value 3,004 — — 3,004
Cash pledged as collateral for OTC derivatives 420,000 — — 420,000
Total $ 1,043,561 — — $ 1,043,561
During the
period ended September 30, 2015, there were no transfers between levels.

8 SEPTEMBER 30, 2015

Item 2 – Controls and Procedures

2(a) – The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.

2(b) – There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3 – Exhibits

Certifications – Attached hereto

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.

BlackRock Enhanced Capital and Income Fund, Inc.

By:
John M. Perlowski
Chief Executive Officer (principal executive officer) of BlackRock Enhanced Capital and Income Fund, Inc.
Date: November 23, 2015

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By: /s/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of BlackRock Enhanced Capital and Income Fund, Inc.
Date: November 23, 2015
By: /s/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of BlackRock Enhanced Capital and Income Fund, Inc.
Date: November 23, 2015

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