|   | [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|---------------------------------------------------------------------------------------------|

|   | [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|----------------------------------------------------------------------------------------------|

| Texas                                                         |    75-1072796                   |
|---------------------------------------------------------------|-------------------------------------------|
| (State or other jurisdiction of incorporationor organization) |  (I.R.S. EmployerIdentification No.) |
|                                                          |                                      |
| 12900 Preston Road, Suite 700, Dallas, Texas                  |    75230                        |
| (Address of principal executive offices)                      | (Zip Code)                                |

|   | Large accelerated filer  ____  | Accelerated filer    X    | Non-accelerated filer ____  |
|--------|-----------------------------------------------|---------------------------------------------------------|----------------------------------|
|   | Smaller reporting company ____                |                                                    |                             |

----

|                                                            | Page No. |
|-----------------------------------------------------------------|----------|
| PART I. FINANCIAL INFORMATION                                   |     |
|                                                            |     |
| ITEM 1. Consolidated Financial Statements                       |     |
|                                                            |     |
| Consolidated Statements of Assets and Liabilities               |     |
| December 31, 2010 (Unaudited) and March 31, 2010           | 3        |
|                                                            |     |
| Consolidated Statements of Operations (Unaudited)               |     |
| For the nine months ended December 31, 2010 and            |     |
| December 31, 2009                                               | 4        |
|                                                            |     |
| Consolidated Statements of Changes in Net Assets (Unaudited)    |     |
| For the nine months ended December 31, 2010 and            |     |
| December 31, 2009                                               | 5        |
|                                                            |     |
| Consolidated Statements of Cash Flows (Unaudited)               |     |
| For the nine months ended December 31, 2010 and            |     |
| December 31, 2009                                               | 6        |
|                                                            |     |
| Consolidated Schedules of Investments (Unaudited)               |     |
| December 31, 2010 and March 31, 2010                            | 7        |
|                                                            |     |
| Notes to Consolidated Financial Statements                      | 17       |
|                                                            |     |
| ITEM 2. Management’s Discussion and Analysis of Financial |     |
| Condition and Results of Operations                             | 26       |
|                                                            |     |
| ITEM 3. Quantitative and Qualitative Disclosure About           |     |
| Market Risk                                                     | 29       |
|                                                            |     |
| ITEM 4. Controls and Procedures                                 | 29       |
|                                                            |     |
| PART II. OTHER INFORMATION                                      |     |
|                                                            |     |
| ITEM 1 Legal Proceedings                                        | 30       |
|                                                            |     |
| ITEM 1A. Risk Factors                                           | 30       |
|                                                            |     |
| ITEM 6. Exhibits                                                | 31       |
|                                                            |     |
| Signatures                                                      | 32       |

----

|                                                                                                                                         |   | December 31, 2010 |        |   | March 31, 2010 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-------------|--------|----------------|--------|
| Assets                                                                                                                                       |   | (Unaudited)       |        |   |           |   |
| Investments at market or fair value                                                                                                          |   |              |        |   |           |   |
| Companies more than 25% owned                                                                                                                |   |              |        |   |           |   |
|    (Cost: December 31, 2010 - $25,521,521,                                                                                    |   |              |        |   |           |   |
|    March 31, 2010 - $26,178,302)                                                                                              |   | $                 | 295,201,592 |   |           | $      | 330,147,325 |   |
| Companies 5% to 25% owned                                                                                                                    |   |              |        |   |           |   |   |   |
|    (Cost: December 31, 2010 - $23,561,278,                                                                                    |   |              |        |   |           |   |   |   |
|    March 31, 2010 - $21,562,243)                                                                                              |   |              | 86,380,732  |   |           |   | 73,589,142 |   |
| Companies less than 5% owned                                                                                                                 |   |              |        |   |           |   |   |   |
|    (Cost: December 31, 2010 - $52,591,363,                                                                                    |   |              |        |   |           |   |   |   |
|    March 31, 2010 - $52,282,449)                                                                                              |   |              | 77,466,430  |   |           |   | 74,206,590 |   |
| Total investments                                                                                                                            |   |              |        |   |           |   |   |   |
|    (Cost: December 31, 2010 - $101,674,162,                                                                                   |   |              |        |   |           |   |   |   |
|    March 31, 2010 - $100,022,994)                                                                                             |   |              | 459,048,754 |   |           |   | 477,943,057 |   |
| Cash and cash equivalents                                                                                                                    |   |              | 73,547,621  |   |           |   | 4,093,508 |   |
| Receivables                                                                                                                                  |   |              |        |   |           |   |   |   |
| Dividends and interest                                                                                                                       |   |              | 1,697,287   |   |           |   | 1,012,782 |   |
| Affiliates                                                                                                                                   |   |              | 307,403     |   |           |   | 864,943 |   |
| Pension assets                                                                                                                               |   |              | 7,345,910   |   |           |   | 7,068,957 |   |
| Other assets                                                                                                                                 |   |              | 159,613     |   |           |   | 191,338 |   |
| Total assets                                                                                                                                 |   | $                 | 542,106,588 |   |           | $      | 491,174,585 |   |
| Liabilities                                                                                                                                  |   |              |        |   |           |   |   |   |
|                                                                                                                                         |   |              |        |   |           |   |   |   |
| Other liabilities                                                                                                                            |   | $                 | 352,388     |   |           | $      | 1,070,540 |   |
| Pension liability                                                                                                                            |   |              | 1,141,410   |   |           |   | 1,082,941 |   |
| Income taxes payable                                                                                                                         |   |              | 24,577,557  |   |           |   | – |   |
| Deferred income taxes                                                                                                                        |   |              | 2,172,018   |   |           |   | 2,095,518 |   |
| Total liabilities                                                                                                                            |   |              | 28,243,373  |   |           |   | 4,248,999 |   |
| Net Assets                                                                                                                                   |   |              |        |   |           |   |   |   |
| Common stock, $1 par value: authorized, 5,000,000shares; issued, 4,337,916 shares at December 31,2010 and 4,326,516 at March 31, 2010        |   |              | 4,337,916   |   |           |   | 4,326,516 |   |
| Additional capital                                                                                                                           |   |              | 173,749,236 |   |           |   | 126,554,546 |   |
| Undistributed net investment income                                                                                                          |   |              | 2,338,119   |   |           |   | 2,061,109 |   |
| Unrealized appreciation of investments                                                                                                       |   |              | 357,374,592 |   |           |   | 377,920,063 |   |
| Treasury stock - at cost on 584,878 shares                                                                                                   |   |              | (23,936,648 | )      |           |   | (23,936,648 | ) |
| Total net assets                                                                                                                             |   |              | 513,863,215 |   |           |   | 486,925,586 |   |
| Total liabilities and net assets                                                                                                             |   | $                 | 542,106,588 |   |           | $      | 491,174,585 |   |
| Net asset value per share(on the 3,753,038 sharesoutstanding at December 31, 2010 and on the 3,741,638 shares outstanding at March 31, 2010) |   | $                 | 136.92      |   |           | $      | 130.14 |   |

----

|                                                                                                                                                                                                                                                                                                                                             |   | Three Months Ended |        |   | Nine Months Ended |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|-------------|--------|-------------------|--------|
|                                                                                                                                                                                                                                                                                                                                             |   |  December 31  |        |   |  December 31 |   |
|                                                                                                                                                                                                                                                                                                                                             |   | 2010               |        |   | 2009              |   |   | 2010 |   |   | 2009 |   |
| Investment income:                                                                                                                                                                                                                                                                                                                               |   |               |        |   |              |   |   |   |   |   |   |   |
| Interest                                                                                                                                                                                                                                                                                                                                         |   | $                  | 327,492     |   |              | $      | 260,822 |   |   | $ | 1,077,803 |   |   | $ | 773,076 |   |
| Dividends                                                                                                                                                                                                                                                                                                                                        |   |               | 1,899,156   |   |              |   | 2,019,208 |   |   |   | 4,860,400 |   |   |   | 3,216,810 |   |
| Management and directors' fees                                                    |   |               | 135,255     |   |              |   | 264,389 |   |   |   | 554,055 |   |   |   | 1,014,010 |   |
|                                                                                                                                                                                                                                                                                                                                             |   |               | 2,361,903   |   |              |   | 2,544,419 |   |   |   | 6,492,258 |   |   |   | 5,003,896 |   |
| Operating expenses:                                                                                                                                                                                                                                                                                                                              |   |               |        |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Salaries                                                                                                                                                                                                                                                                                                                                         |   |               | 770,939     |   |              |   | 605,729 |   |   |   | 2,101,716 |   |   |   | 1,557,061 |   |
| Net pension benefit                                                                                                                                                                                                                                                                                                                              |   |               | (72,828     | )      |              |   | (92,277 | ) |   |   | (218,484 | ) |   |   | (276,831 | ) |
| Professional fees                                                                                                                                                                                                                                                                                                                                |   |               | 203,547     |   |              |   | 140,420 |   |   |   | 616,523 |   |   |   | 401,022 |   |
| Other operating expenses                                                                                                                                                                                                                                                                                                                         |   |               | 134,831     |   |              |   | 157,289 |   |   |   | 647,858 |   |   |   | 519,317 |   |
|                                                                                                                                                                                                                                                                                                                                             |   |               | 1,109,318   |   |              |   | 811,161 |   |   |   | 3,147,613 |   |   |   | 2,200,569 |   |
| Income before income taxes                                                                                                                                                                                                                                                                                                                       |   |               | 1,252,585   |   |              |   | 1,733,258 |   |   |   | 3,344,645 |   |   |   | 2,803,327 |   |
| Income tax expense                                                                                                                                                                                                                                                                                                                               |   |               | 25,500      |   |              |   | 25,183 |   |   |   | 74,012 |   |   |   | 82,617 |   |
|                                                                                                                                                                                                                                                                                                                                             |   |               |        |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net investment income                                                                                                                                                                                                                                                                                                                            |   | $                  | 1,227,085   |   |              | $      | 1,708,075 |   |   | $ | 3,270,633 |   |   | $ | 2,720,710 |   |
|                                                                                                                                                                                                                                                                                                                                             |   |               |        |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from disposition of investments                                                                                                                                                                                                                                                                                                         |   |               | (4,219,231  | )      |              |   | 156,926 |   |   |   | 74,836,330 |   |   | $ | 5,126,865 |   |
| Cost of investments sold                                                                                                                                                                                                                                                                                                                         |   |               | –     |   |              |   | 156,926 |   |   |   | 4,510,400 |   |   |   | 3,486,870 |   |
| Realized gain (loss) on investments before income tax                                                                                                                                                                                                                                                                                       |   |               | (4,219,231  | )      |              |   | – |   |   |   | 70,325,930 |   |   |   | 1,639,995 |   |
| Income tax expense                                                                                                                                                                                                                                                                                                                               |   |               | 24,577,557  |   |              |   | 814,503 |   |   |   | 24,577,557 |   |   |   | 814,503 |   |
| Net realized gain (loss) on investments                                                                                                                                                                                                                                                                                                          |   |               | (28,796,788 | )      |              |   | (814,503 | ) |   |   | 45,748,373 |   |   |   | 825,492 |   |
|                                                                                                                                                                                                                                                                                                                                             |   |               |        |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in unrealized appreciation of investments                                                                                                                                                                                                                                                                                |   |               | 21,837,200  |   |              |   | 3,157,460 |   |   |   | (20,545,471 | ) |   |   | 40,419,753 |   |
|                                                                                                                                                                                                                                                                                                                                             |   |               |        |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net realized and unrealized gain (loss) on investments                                                                                                                                                                                                                                                                                           |   | $                  | (6,959,588  | )      |              | $      | 2,342,957 |   |   | $ | 25,202,902 |   |   | $ | 41,245,245 |   |
|                                                                                                                                                                                                                                                                                                                                             |   |               |        |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Increase (decrease) in net assets from operations                                                                                                                                                                                                                                                                                                |   | $                  | (5,732,503  | )      |              | $      | 4,051,032 |   |   | $ | 28,473,535 |   |   | $ | 43,965,955 |   |

----

|                                                                                                                                                                                                                                                                 |   | Nine Months       |        |   | Nine Months       |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-------------|--------|-------------------|--------|
|                                                                                                                                                                                                                                                                 |   | Ended             |        |   | Ended             |   |
|                                                                                                                                                                                                                                                                 |   | December 31, 2010 |        |   | December 31, 2009 |   |
| Operations:                                                                                                                                                                                                                                                          |   |              |        |   |              |   |
| Net investment income                                                                                                                                                                                                                                                |   | $                 | 3,270,633   |   |              | $      | 2,720,710 |   |
| Net realized gain on investments                                                                                                                                                                                                                                     |   |              | 45,748,373  |   |              |   | 825,492 |   |
| Net increase (decrease) in unrealized                                                                                                                                                                                                                                |   |              |        |   |              |   |   |   |
|      appreciation of investments                                                                                                                                                                                                            |   |              | (20,545,471 | )      |              |   | 40,419,753 |   |
| Increase in net assets from operations                                                                                                                                                                                                                               |   |              | 28,473,535  |   |              |   | 43,965,955 |   |
| Distributions from:                                                                                                                                                                                                                                                  |   |              |        |   |              |   |   |   |
| Undistributed net investment income                                                                                                                                                                                                                                  |   |              | (2,993,623  | )      |              |   | (2,993,310 | ) |
|    Net realized gains deemed distributed                                                                                                                                                                                                              |   |              |        |   |              |   |   |   |
|      to shareholders                                                                                                                                                                                                                        |   |              | (45,748,373 | )      |              |   | (868,114 | ) |
| Capital share transactions:                                                                                                                                                                                                                                          |   |              |        |   |              |   |   |   |
|    Allocated increase in share value for                                                                                                                                                                                                              |   |              |        |   |              |   |   |   |
|       deemed distribution                                                                                                                                                                                                              |   |              | 45,748,373  |   |              |   | 868,114 |   |
| Change in pension plan funded status                                                                                                                                                                                                                                 |   |              | –     |   |              |   | (263,416 | ) |
| Exercise of employee stock options                                                                                                                                                                                                                                   |   |              | 745,200     |   |              |   | – |   |
| Stock option expense                                         |   |              | 712,517     |   |              |   | 473,703 |   |
| Increase in net assets                                                                                                                                                                                                                                               |   |              | 26,937,629  |   |              |   | 41,182,932 |   |
| Net assets, beginning of period                                                                                                                                                                                                                                      |   |              | 486,925,586 |   |              |   | 415,262,991 |   |
| Net assets, end of period                                                                                                                                                                                                                                            |   | $                 | 513,863,215 |   |              | $      | 456,445,923 |   |

----

|                                                                                                                                  |   | Three Months Ended |        |          | Nine Months Ended |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|-------------|---------------|-------------------|--------|
|                                                                                                                                  |   | December 31        |        |          | December 31       |   |
|                                                                                                                                  |   | 2010               |        |          | 2009              |   |   | 2010 |   |   | 2009 |   |
| Cash flows from operating activities                                                                                                  |   |               |        |          |              |   |   |   |   |   |   |   |
| Increase (decrease) in net assets from operations                                                                                     |   | $                  | (5,732,503  | )             |              | $      | 4,051,032 |   |   | $ | 28,473,535 |   |   | $ | 43,965,955 |   |
| Adjustments to reconcile increase (decrease) in net assets fromoperations to net cashprovided by (used in) operating activities: |   |               |        |          |              |   |   |   |   |   |   |   |   |   |   |   |
|   Net proceeds from disposition of investments                                                                              |   |               | (4,219,231  | )             |              |   | 156,926 |   |   |   | 71,132,711 |   |   |   | 5,126,865 |   |
|   Proceeds from repayment of loans                                                                                          |   |               | 4,273,097   |          |              |   | – |   |   |   | 4,407,434 |   |   |   | 3,000,000 |   |
|   Purchases of securities                                                                                                   |   |               | (2,831,624  | )             |              |   | (753,000 | ) |   |   | (6,865,383 | ) |   |   | (16,121,588 | ) |
|   Depreciation and amortization                                                                                             |   |               | 6,734       |          |              |   | 6,516 |   |   |   | 19,568 |   |   |   | 21,414 |   |
|   Net pension benefit                                                                                                       |   |               | (72,828     | )             |              |   | (92,277 | ) |   |   | (218,484 | ) |   |   | (276,831 | ) |
|   Realized (gain) loss on investments     before income tax                                        |   |               | 4,219,231   |          |              |   | – |   |   |   | (70,325,930 | ) |   |   | (1,639,994 | ) |
|  Taxes payable on behalf of shareholders     on deemed distribution                                     |   |               | 24,577,557  |          |              |   | 814,503 |   |   |   | 24,577,557 |   |   |   | 814,503 |   |
|   Net (increase) decrease in unrealized                                                                                     |   |               |        |          |              |   |   |   |   |   |   |   |   |   |   |   |
|      appreciation of investments                                                                             |   |               | (21,837,200 | )             |              |   | (3,157,460 | ) |   |   | 20,545,471 |   |   |   | (40,419,753 | ) |
|   Stock option expense                                                                                                      |   |               | 244,650     |          |              |   | 190,652 |   |   |   | 712,517 |   |   |   | 473,703 |   |
|   Increase in dividend and interest receivable                                                                              |   |               | (1,433,821  | )             |              |   | (1,881,293 | ) |   |   | (684,505 | ) |   |   | (2,115,111 | ) |
|   (Increase) decrease in receivables from affiliates                                                                        |   |               | (18,058     | )             |              |   | 158,528 |   |   |   | 557,540 |   |   |   | (605,539 | ) |
|   (Increase) decrease in other assets                                                                                       |   |               | 7,050       |          |              |   | (4,093 | ) |   |   | 12,157 |   |   |   | 22,760 |   |
|   Increase (decrease) in other liabilities                                                                                  |   |               | 84,544      |          |              |   | (64,281 | ) |   |   | (718,152 | ) |   |   | 633,825 |   |
|   Increase in deferred income taxes                                                                                         |   |               | 25,500      |          |              |   | 32,400 |   |   |   | 76,500 |   |   |   | 97,200 |   |
| Net cash provided by (used in) operating activities                                                                                   |   |               | (2,706,902  | )   |              |   | (541,845 | ) |   |   | 71,702,536 |   |   |   | (7,022,591 | ) |
|                                                                                                                                  |   |               |        |          |              |   |   |   |   |   |   |   |   |   |   |   |
| Cash flows from financing activities                                                                                                  |   |               |        |          |              |   |   |   |   |   |   |   |   |   |   |   |
| Distributions from undistributed net                                                                                                  |   |               |        |          |              |   |   |   |   |   |   |   |   |   |   |   |
|   investment income                                                                                                         |   |               | (1,496,968  | )             |              |   | (1,496,655 | ) |   |   | (2,993,623 | ) |   |   | (2,993,310 | ) |
| Proceeds from exercise of employee stock options                                                                                      |   |               | 693,823     |          |              |   | – |   |   |   | 745,200 |   |   |   | – |   |
| Net cash used in financing activities                                                    |   |               | (803,145    | )             |              |   | (1,496,655 | ) |   |   | (2,248,423 | ) |   |   | (2,993,310 | ) |
|                                                                                                                                  |   |               |        |          |              |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash                                                                                              |   |               |        |          |              |   |   |   |   |   |   |   |   |   |   |   |
|   equivalents                                                                                                               |   |               | (3,510,047  | )             |              |   | (2,038,500 | ) |   |   | 69,454,113 |   |   |   | (10,015,901 | ) |
| Cash and cash equivalents at beginning                                                                                                |   |               |        |          |              |   |   |   |   |   |   |   |   |   |   |   |
|   of period                                                                                                                 |   |               | 77,057,668  |          |              |   | 6,744,329 |   |   |   | 4,093,508 |   |   |   | 14,721,730 |   |
| Cash and cash equivalents at end of period                                                                                            |   | $                  | 73,547,621  |          |              | $      | 4,705,829 |   |   | $ | 73,547,621 |   |   | $ | 4,705,829 |   |
|                                                                                                                                  |   |               |        |          |              |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental disclosure of cash flow information:                                                                                     |   |               |        |          |              |   |   |   |   |   |   |   |   |
| Cash paid during the period for:                                                                                                      |   |               |        |          |              |   |   |   |   |   |   |   |   |   |   |   |
|   Interest                                                                                                                  |   | $                  | –     |          |              | $      | – |   |   | $ | – |   |   | $ | – |   |
|   Income taxes                                                                                                              |   | $                  | –     |          |              | $      | – |   |   | $ | – |   |   | $ | – |   |

| Total Investments |   | $ | – |   |   | $ | – |   |   | $ | 3,703,619 |   |   | $ | – |   |
|-------------------|--------|---|---------|--------|--------|---|---------|--------|--------|---|-----------|--------|--------|---|---------|--------|

----

| Company                                                                                     | Equity (a)               |                                                                                                                                                                                                                                                                                            |              Investment (b) | Cost          |                    |      Value (c) |
|---------------------------------------------------------------------------------------------|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|---------------|-------------------------|------------------------------------|
|                                                                                        |                     |                                                                                                                                                                                                                                                                                            |                                                                                    |          |                    |
| ¥†ALAMO GROUP INC.                                                               | 22.0%                    |                                                                                                                                                                                                                                                                                            | 2,830,300 shares common stock (acquired 4-1-73                                          |          |                    |                               |
| Seguin, Texas                                                                               |                     | thru 5-25-07)                                                                                                                                                                                                                                                                                   | $  2,190,937                                                                  |          | $  59,011,755 |
| Tractor-mounted mowing and mobile excavation                                                |                     |                                                                                                                                                                                                                                                                                            |                                                                                    |          |                    |
| equipment for governmental, industrial and agricultural                                     |                     |                                                                                                                                                                                                                                                                                            |                                                                                    |          |                    |
| markets; street-sweeping equipment for municipalities.                                      |                     |                                                                                                                                                                                                                                                                                            |                                                                                    |          |                    |
|                                                                                        |                     |                                                                                                                                                                                                                                                                                            |                                                                                    |          |                    |
| ALL COMPONENTS, INC.                                                                        | 80.4%                    |                                                                                                                                                                                                                                                                                            | 8.25%  subordinated note, $2,000,000 principal due                            |          |                    |                               |
| Pflugerville, Texas                                                                         |                     | 2012 (acquired 6-27-07)                                             | 2,000,000                                                                               |          | 2,000,000               |
| Electronics contract manufacturing; distribution and                                        |                     | 150,000 shares Series A Convertible Preferred Stock,                                                                                                                                                                                                                                            |                                                                                    |          |                    |
| production of memory and other components for                                               |                     | convertible into 600,000 shares of common stock                                                                                                                                                                                                                                                 |                                                                                    |          |                    |
| computer manufacturers,retailers and .                                                      |                     | at $0.25 per share (acquired 9-16-94)                                                                                                                                                                                                                                                           | 150,000                                                                                 |          | 4,494,970               |
|     value-added resellers                                                    |                     | Warrants to purchase 350,000 shares of common stock                                                                                                                                                                                                                                             |                                                                                    |          |                    |
|                                                                                        |                     | at $11.00 per share, expiring 2017 (acquired 6-27-07)                                                                                                                                                                                                                                           | –                                                                                 |          | –                 |
|                                                                                        |                     |                                                                                                                                                                                                                                                                                            | 2,150,000                                                                               |          | 6,494,970               |
|                                                                                        |                     |                                                                                                                                                                                                                                                                                            |                                                                                    |          |                    |
| ATLANTIC CAPITAL BANCSHARES, INC.                                                           |     1.9%  |                                                                                                                                                                                                                                                                                            | 300,000 shares common stock (acquired 4-10-07)                                          | 3,000,000     |                    | 1,575,000                          |
| Atlanta, Georgia                                                                            |                     |                                                                                                                                                                                                                                                                                            |                                                                                    |          |                    |
| Holding company of Atlantic Capital Bank,    a full service commercial bank. |                     |                                                                                                                                                                                                                                                                                            |                                                                                    |          |                    |
|                                                                                        |                     |                                                                                                                                                                                                                                                                                            |                                                                                    |          |                    |
| ¥ BALCO, INC.                                                                          | 90.9%                    |                                                                                                                                                                                                                                                                                            | 445,000 shares common stock and 60,920 shares Class B                                   |          |                    |                               |
| Wichita, Kansas                                                                             |                     | non-voting common stock (acquired 10-25-83 and 5-30-02)                                                                                                                                                                                                                                         | 624,920                                                                                 |          | 5,300,000               |
| Specialty architectural products used in the construction                                   |                     |                                                                                                                                                                                                                                                                                            |                                                                                    |          |                    |
| and remodeling of commercial and institutional buildings.                                   |                     |                                                                                                                                                                                                                                                                                            |                                                                                    |          |                    |
|                                                                                        |                     |                                                                                                                                                                                                                                                                                            |                                                                                    |          |                    |
| *BOXX TECHNOLOGIES, INC.                                                                    |     15.2% |                                                                                                                                                                                                                                                                                            | 3,125,354 shares Series B Convertible Preferred Stock,                                  |          |                    |                               |
| Austin, Texas                                                                               |                     | convertible into 3,125,354 shares of common stock at                                                                                                                                                                                                                                            |                                                                                    |          |                    |
| Workstations for computer graphic imaging and design.                                       |                     | $0.50 per share (acquired 8-20-99 thru 8-8-01)                                                                                                                                                                                                                                                  | 1,500,000                                                                               |          | 2                       |
|                                                                                        |                     |                                                                                                                                                                                                                                                                                            |                                                                                    |          |                    |
| *CMI HOLDING COMPANY, INC.                                                                  | 21.4%                    |                                                                                                                                                                                                                                                                                            | 10% convertible promissory note, due 2010 (acquired 9-13-10)                            |  864,035 |                    | 864,035                            |
| Richardson, Texas                                                                           |                     | 10% convertible promissory note, due 2013 (acquired 5-19-10)                                                                                                                                                                                                                                    |  600,000                                                                           |          | 300,000                 |
| Owns Chase Medical, which develops and sells devices                                        |                     | 10% convertible promissory note, due 2013 (acquired 2-23-10)                                                                                                                                                                                                                                    | 650,000                                                                                 |          | 325,000                 |
|     used in cardiac surgery to relieve congestive heart failure,             |                     | 3% convertible promissory note, due 2011 (acquired 12-21-10)                                                                                                                                                                                                                                    |  535,000                                                                           |          |  535,000           |
| develops and supports cardiac imaging systems.                                              |                     | 1,631,516 shares Series C-1 Convertible Preferred                                                                                                                                                                                                                                               |                                                                                    |          |                    |
|                                                                                        |                     | Stock, convertible into 1,631,516 shares of common                                                                                                                                                                                                                                              |                                                                                    |          |                    |
|                                                                                        |                     | stock at $2.15 per share (acquired 7-10-09)                                                                                                                                                                                                                                                     | 2,863,347                                                                               |          | 1                       |
|                                                                                        |                     | 2,327,658 shares Series A Convertible Preferred Stock,                                                                                                                                                                                                                                          |                                                                                    |          |                    |
|                                                                                        |                     | convertible into 2,327,658 shares of common stock at                                                                                                                                                                                                                                            |                                                                                    |          |                    |
|                                                                                        |                     | $1.72 per share (acquired 8-21-02 and 6-4-03)                                                                                                                                                                                                                                                   | 4,000,000                                                                               |          | 2                       |
|                                                                                        |                     | Warrants to purchase 109,012 shares of common stock at                                                                                                                                                                                                                                          |                                                                                    |          |                    |
|                                                                                        |                     | $1.72 per share, expiring 2012 (acquired 4-7-04)                                                                                                                                                                          |  –                                                                           |          | –                 |
|                                                                                        |                     | Warrants to purchase 636,151 shares of Series A-1                                                                                                                                                                                                                                               |                                                                                    |          |                    |
|                                                                                        |                     | Convertible Preferred Stock at $1.72 per share expiring                                                                                                                                                                                                                                         |                                                                                    |          |                    |
|                                                                                        |                     | 2017 and 2019 (acquired 7-2-07 and 6-9-09)                                                                            |  –                                                                           |          | –                 |
|                                                                                        |                     | Warrant to purchase 90,698 shares of Series D or D-1                                                                                                                                                                                                                                            |                                                                                    |          |                    |
|                                                                                        |                     | Convertible Preferred Stock at $1.72 per share expiring                                                                                                                                                                                                                                         |                                                                                    |          |                    |
|                                                                                        |                     | 2017 (acquired 2-23-10)                                                  |  –                                                                           |          | –                 |
|                                                                                        |                     |                                                                                                                                                                                                                                                                                            | 9,512,382                                                                               |          | 2,024,038               |

----

| Company                                                                                                   | Equity (a) |                                                                                                                                                                                                                                                                                                                                                                                     |        Investment (b)                                                                     |  Cost        |                     |  Value (c)  |
|--------------------------------------------------------------------------------------------------------------------------|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|-------------------|--------------------------|------------------|
|                                                                                                                     |       |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                    |              |                     |
| CINATRA CLEAN TECHNOLOGIES, INC.                                                                                         | 68.8%      |                                                                                                                                                                                                                                                                                                                                                                                     | 12% subordinated secured promissory note, due 2012     (acquired 5-19-10 thru 10-20-10)   | $  1,001,929 |                     | $ 1,001,929 |
| Houston, Texas                                                                                                           |       | 10% subordinated secured promissory note, due 2013                                                                                                                                                                                                                                                                                                                   |                                                                                                                    |              |                     |
| Cleans above ground oil storage tanks with a patented,                                                                   |       | (acquired 7-14-08 thru 4-28-10)                                                                                                                                                                                                                                                                                                                                                          |   6,200,700                                                                                                   |              |   6,200,700    |
| automated system.                                                                                                        |       | 3,033,410 shares Series A Convertible Preferred Stock,                                                                                                                                                                                                                                                                                                                              |                                                                                                                    |              |      |
|                                                                                                                     |       | convertible into 3,033,410 shares of common stock at $1.00                                                                                                                                                                                                                                                                                                                               |                                                                                                                    |              |                     |
|                                                                                                                     |       | per share (acquired 7-14-08 thru 11-18-10)                                                                                                                                                                                                                                                                                                                                               | 3,033,410                                                                                                               |              | 3,033,410                |
|                                                                                                                     |       |                                                                                                                                                                                                                                                                                                                                                                                     | 10,236,039                                                                                                              |              | 10,236,039               |
|                                                                                                                     |       |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                    |              |                     |
|                                                                                                                     |       |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                    |              |                     |
| *†ENCORE WIRE CORPORATION                                                                                          | 16.9%      |                                                                                                                                                                                                                                                                                                                                                                                     | 4,086,750 shares common stock (acquired 7-16-92 thru                                                                    |              |                     |             |
| McKinney, Texas                                                                                                          |       | 10-7-98)                                                                                                                                                                                                                                                                                                                                                                                 | 5,800,000                                                                                                               |              | 82,756,688               |
| Electric wire and cable for residential, commercial and                                                                  |       |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                    |              |                     |
| industrial construction use.                                                                                             |       |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                    |              |                     |
|                                                                                                                     |       |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                    |              |                     |
| EXTREME INTERNATIONAL, INC.                                                                                              | 53.6%      |                                                                                                                                                                                                                                                                                                                                                                                     | 13,035 shares Series A common stock (acquired 9-26-08                                                                   |              |                     |             |
| Sugar Land, Texas                                                                                                        |       | and 12-18-08)                                                                                                                                                                                                                                                                                                                                                                            | 325,875                                                                                                                 |              | 757,000                  |
| Owns  Bill  Young  Productions, Texas  Video  and  Post, and |       | 39,359.18 shares Series C Convertible Preferred Stock,                                                                                                                                                                                                                                                                                                                                   |                                                                                                                    |              |                     |
| Extreme Communications, which produce radio and television                                                               |       | convertible into 157,437.72 shares of common stock at                                                                                                                                                                                                                                                                                                                                    |                                                                                                                    |              |                     |
| commercials and corporate communications videos.                                                                         |       | $25.00 per share (acquired 9-30-03)                                                                                                                                                                                                                                                                                                                                                      | 2,625,000                                                                                                               |              | 9,143,000                |
|                                                                                                                     |       | 3,750 shares 8% Series A Convertible Preferred Stock,                                                                                                                                                                                                                                                                                                                                    |                                                                                                                    |              |                     |
|                                                                                                                     |       | convertible into 15,000 shares of common stock at $25.00                                                                                                                                                                                                                                                                                                                                 |                                                                                                                    |              |                     |
|                                                                                                                     |       | per share (acquired 9-30-03)                                                           | 375,000                                                                                                                 |              | 871,000                  |
|                                                                                                                     |       |                                                                                                                                                                                                                                                                                                                                                                                     | 3,325,875                                                                                                               |              | 10,771,000               |
|                                                                                                                     |       |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                    |              |                     |
| ¥†HEELYS, INC.                                                                                                | 31.1%      |                                                                                                                                                                                                                                                                                                                                                                                     | 9,317,310 shares common stock (acquired 5-26-00)                                                                        | 102,490           |                     | 22,268,371       |
| Carrollton, Texas                                                                                                        |       |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                    |              |                     |
| Heelys stealth skate shoes, equipment and apparel sold                                                                   |       |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                    |              |                     |
| through sporting goods chains,  department stores and                                                          |       |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                    |              |                     |
|     footware retailers.                                                                              |       |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                    |              |                     |
|                                                                                                                     |       |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                    |              |                     |
| †HOLOGIC, INC.                                                                                                     | <1%     |                                                                                                                                                                                                                                                                                                                                                                                     | ‡632,820 shares common stock (acquired 8-27-99)                                                                   | 220,000           |                     | 11,909,672       |
| Bedford, Massachusetts                                                                                                   |       |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                    |              |                     |
| Medical instruments including bone densitometers,                                                                        |       |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                    |              |                     |
| mammography devices and digital radiography systems.                                                                     |       |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                    |              |                     |
|                                                                                                                     |       |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                    |              |                     |
| iMEMORIES, INC.                                                                                                          | 27.6%      |                                                                                                                                                                                                                                                                                                                                                                                     | 10% subordinated secured promissory note, due 2012                                                                 | 875,000      |                     | 875,000     |
| Scottsdale, AZ                                                                                                           |       |      (acquired 9-13-10)                                                                                                                                                                                                                                                                                                                                    |                                                                                                                    |              |                     |
| Enables online video and photo sharing and DVD creation                                                                  |       | 17,391,304 shares Series B Convertible Preferred Stock,                                                                                                                                                                                                                                                                                                                                  |                                                                                                                    |              |                     |
| for home movies recorded in analog and new digital format.                                                               |       | convertible into 17,391,304 shares of common stock at                                                                                                                                                                                                                                                                                                                                    |                                                                                                                    |              |                     |
|                                                                                                                     |       | $0.23 per share (acquired 7-10-09)                                                                                                                                                                                                                                                                                                                                                       | 4,000,000                                                                                                               |              | 4,000,000                |
|                                                                                                                     |       | Warrant to purchase 968,750 shares of common stock at $0.12                                                                                                                                                                                                                                                                                                                         |                                                                                                                    |              |                     |
|                                                                                                                     |       |     per share, expiring 2020 (acquired 9-13-10)                                                                                                                                                                                                                                                                                                                           |   -                                                                                                                |              |   -                 |
|                                                                                                                     |       |                                                                                                                                                                                                                                                                                                                                                                                     | 4,875,000                                                                                                          |              | 4,875,000           |
|                                                                                                                     |       |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                    |              |                     |
| KBI BIOPHARMA, INC.                                                                                                      | 17.1%      |                                                                                                                                                                                                                                                                                                                                                                                     | 7,142,857 shares Series B-2 Convertible Preferred Stock,                                                                |              |                     |             |
| Durham, NC                                                                                                               |       | convertible into 7,142,857 shares of common stock at                                                                                                                                                                                                                                                                                                                                     |                                                                                                                    |              |                     |
| Provides fully-integrated, outsourced drug development                                                                   |       | $0.70 per share (acquired 9-08-09)                                                                                                                                                                                                                                                                                                                                                       | 5,000,000                                                                                                               |              | 5,000,000                |
| and bio-manufacturing services.                                                                                          |       |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                    |              |                     |

----

| Company                                                          | Equity (a)      |                                                 |       Investment (b)            | Cost   |                   | Value (c)   |
|------------------------------------------------------------------|---------------------------|------------------------------------------------------|----------------------------------------------------------|------------------|------------------------|-----------------------|
|                                                             |                      |                                                 |                                                     |             |                   |
| ¥MEDIA RECOVERY, INC.                                       | 97.9%                     |                                                 | 800,000 shares Series A Convertible Preferred Stock,     |             |                   |                  |
| Dallas, Texas                                                    |                      | convertible into 800,000 shares of common stock at   |                                                     |             |                   |
| Computer datacenter and office automation supplies and           |                      | $1.00 per share (acquired 11-4-97)                   | $     800,000                   |             | $  3,200,000 |
| accessories; impact, tilt monitoring and temperature sensing     |                      | 4,000,002 shares common stock (acquired 11-4-97)     | 4,615,000                                                |             | 15,800,000             |
| devices to detect mishandled shipments; dunnage for              |                      |                                                 | 5,415,000                                                |             | 19,000,000             |
|     protecting shipments.                         |                      |                                                 |                                                     |             |                   |
|                                                             |                      |                                                 |                                                     |             |                   |
| *PALLETONE, INC.                                            | 8.4%                      |                                                 | 12.3% senior subordinated notes, $2,000,000              |             |                   |                  |
| Bartow, Florida                                                  |                      | principal due 2015 (acquired 9-25-06)           | 1,553,150                                                |             | 1,600,000              |
| Manufacturer of wooden pallets and pressure-treated              |                      | 150,000 shares common stock (acquired 10-18-01)      | 150,000                                                  |             | 2                      |
| lumber.                                                          |                      | Warrant to purchase 15,294 shares of common stock    |                                                     |             |                   |
|                                                             |                      | at $1.00 per share, expiring 2011 (acquired 2-17-06) | 45,746                                                   |             | –                |
|                                                             |                      |                                                 | 1,748,896                                                |             | 1,600,002              |
|                                                             |                      |                                                 |                                                     |             |                   |
| ¥†PALM HARBOR HOMES, INC.                             | 30.4%                     |                                                 | 7,855,121 shares common stock (acquired 1-3-85           |             |                   |                  |
| Dallas, Texas                                                    |                      | thru 7-31-95)                                        | 10,931,955                                               |             | 2                      |
| Integrated manufacturing, retailing, financing and insuring      |                      | Warrant to purchase 286,625 shares of common         |                                                     |             |                   |
| of manufactured housing and modular homes.                       |                      | stock at $3.14 per share, expiring 2019 (acquired    |                                                     |             |                   |
|                                                             |                      | 4-24-09)                                             | –                                                  |             | –                |
|                                                             |                      |                                                 | 10,931,955                                               |             | 2                      |
|                                                             |                      |                                                 |                                                     |             |                   |
| ¥THE RECTORSEALCORPORATION                                  |     100.0% |                                                 | 27,907 shares common stock (acquired 1-5-73 and 3-31-73) | 52,600      |                   | 133,000,000      |
| Houston, Texas                                                   |                      |                                                 |                                                     |             |                   |
| Specialty chemicals for plumbing, HVAC, electrical,              |                      |                                                 |                                                     |             |                   |
| construction, industrial, oil field and automotive applications; |                      |                                                 |                                                     |             |                   |
| smoke containment systems for building fires; also owns          |                      |                                                 |                                                     |             |                   |
| 20% of The Whitmore Manufacturing Company.                       |                      |                                                 |                                                     |             |                   |
|                                                             |                      |                                                 |                                                     |             |                   |
| TCI HOLDINGS, INC.                                          | –                   |                                                 | 21 shares 12% Series C Cumulative Compounding            |             |                   |                  |
| Denver, Colorado                                                 |                      | Preferred stock (acquired 1-30-90)                   | –                                                  |             | 677,250                |
| Cable television systems and microwave relay systems.            |                      |                                                 |                                                     |             |                   |
|                                                             |                      |                                                 |                                                     |             |                   |
| †TEXAS CAPITALBANCHSARES, INC.                             | 1.6%                      |                                                 | ‡489,656 shares common stock (acquired 5-1-00)     | 3,550,006        |                   | 10,414,983            |
| Dallas, Texas                                                    |                      |                                                 |                                                     |             |                   |
| Regional bank holding company with banking operations            |                      |                                                 |                                                     |             |                   |
| in six Texas cities.                                             |                      |                                                 |                                                     |             |                   |

| TRAX HOLDINGS, INC.                                              | 30.9%  |                                                  | 1,061,279 shares Series A Convertible Preferred Stock, |   |      |   |
|-----------------------------------------------------------------------|--------|-------------------------------------------------------|--------------------------------------------------------|--------|-----------|--------|
| Scottsdale, Arizona                                                   |   | convertible into 1,061,279 common stock at $4.71 |                                                   |   |      |
| Provides a comprehensive set of solutions to improve                  |   | per share (acquired 12-8-08 and 2-17-09)              | 5,000,000                                              |   | 6,205,387 |
|     the transportation validation, accounting, payment |   |                                                  |                                                   |   |      |
| and information management process.                              |   |                                                  |                                                   |   |      |

----

| Company                                                                                                                                                                  | Equity (a)                            |                                                                          |       Investment (b)                         |  Cost |         |  Value (c)                                                                        |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------|-------------------------------------------------------------------------------|-----------------------------------------------------------------------|------------|--------------|----------------------------------------------------------------------------------------|
|                                                                                                                                                                               |                                  |                                                                          |                                                                  |       |         |
| VIA HOLDINGS, INC.                                                                                                                                                            | 28.1%                                 |                                                                          | 9,118 shares Series B Preferred Stock (acquired 9-19-05)              | $4,559,000 |         | $              2 |
| Sparks, Nevada                                                                                                                                                                     |                                  | 1,118 shares Series C Preferred Stock (acquired 11-1-07)                      | 281,523                                                               |       | 2            |
| Designer, manufacturer and distributor of high-quality                                                                                                                             |                                  |                                                                          | 4,840,523                                                             |       | 4            |
| office  seating.                                                                                                                                                         |                                  |                                                                          |                                                                  |       |         |
|                                                                                                                                                                               |                                  |                                                                          |                                                                  |       |         |
| *WELLOGIX, INC.                                                                                                                                                               | 19.3%                                 |                                                                          | 4,788,371 shares Series A-1 Convertible Participating                 |       |         |                                                                                   |
|    Houston, Texas                                                                                                                                                   |                                  | Preferred Stock, convertible into 4,788,371 shares                            |                                                                  |       |         |
| Developer and supporter of software used by the oil and gas                                                                                                                        |                                  | of common stock at $1.0441 per share (acquired                                |                                                                  |       |         |
| industry.                                                                                                                                                                          |                                  | 8-19-05 thru 6-15-08)                                                         | 5,000,000                                                             |       | 2            |
|                                                                                                                                                                               |                                  |                                                                          |                                                                  |       |         |
| ¥THE WHITMORE                                                                                                                                                                 | 80.0%                                 |                                                                          | 80 shares common stock (acquired 8-31-79)                             | 1,600,000  |         | 51,800,000                                                                             |
| MANUFACTURING COMPANY                                                                                                                                                              |                                  |                                                                          |                                                                  |       |         |                                                                                   |
| Rockwall, Texas                                                                                                                                                                    |                                  |                                                                          |                                                                  |       |         |
| Specialized surface mining, railroad and industrial                                                                                                                                |                                  |                                                                          |                                                                  |       |         |
|     lubricants;coatings for automobiles and primary metals;                                                                                                         |                                  |                                                                          |                                                                  |       |         |
|     fluid contamination control devices.                                                                                                                            |                                  |                                                                          |                                                                  |       |         |
|                                                                                                                                                                               |                                  |                                                                          |                                                                  |       |         |
| MISCELLANEOUS                                                                                                                                                                      |                                  | – Ballast Point Ventures II, L.P. – 2.2% limited partnership      |                                                                  |       |         |
|                                                                                                                                                                               |                                  | interest (acquired 8-4-08 thru 6-18-10)                                       | 975,000                                                               |       | 975,000      |
|                                                                                                                                                                               |                                  | – BankCap Partners Fund I, L.P. – 5.5% limited partnership        |                                                                  |       |         |
|                                                                                                                                                                               |                                  | interest (acquired 7-14-06  thru 12-13-10)                          | 5,646,770                                                             |       | 5,126,941    |
|                                                                                                                                                                               |                        |                                                                          | – CapitalSouth Partners Fund III, L.P. –1.9% limited      |       |         |                                                                                   |
|                                                                                                                                                                               |                                  | partnership interest (acquired 1-22-08 and 2-12-09)                           | 831,256                                                               |       | 790,000      |
|                                                                                                                                                                               |     100.0%   |                                                                          | – ¥CapStar Holdings Corporation, – 500 shares common |       |         |                                                                                   |
|                                                                                                                                                                               |                                  |     stock (acquired 6-10-10)                                   | 3,703,619                                                             |       | 4,028,994    |
|                                                                                                                                                                               |                                  | – Diamond State Ventures, L.P. – 1.4% limited partnership         |                                                                  |       |         |
|                                                                                                                                                                               |                                  | interest (acquired 10-12-99 thru 8-26-05)                                     | 76,000                                                                |       | 177,494      |
|                                                                                                                                                                               |                                  | – ¥Discovery Alliance, LLC – 90.0% limited liability company |                                                                  |       |         |
|                                                                                                                                                                               |                                  | (acquired 9-12-08 thru 5-14-10)                                               | 900,000                                                               |       | 635,470      |
|                                                                                                                                                                               |                                  | – Essex Capital Corporation – 10% unsecured promissory            |                                                                  |       |         |
|                                                                                                                                                                               |                                  | note due 8-19-10 (acquired 8-16-09)                                           | –                                                               |       | 1,000,000    |
|                                                                                                                                                                               |                                  | – First Capital Group of Texas III, L.P. – 3.0% limited           |                                                                  |       |         |
|                                                                                                                                                                               |                                  | partnership interest (acquired 12-26-00 thru 8-12-05)                         | 778,895                                                               |       | 402,825      |
|                                                                                                                                                                               |     100.0%        |                                                                          | – ¥Humac Company – 1,041,000 shares common stock     |       |         |                                                                                   |
|                                                                                                                                                                               |                                  | (acquired 1-31-75 and 12-31-75)                                               | –                                                               |       | 157,000      |
|                                                                                                                                                                               |                                  | – STARTech Seed Fund I – 12.1% limited partnership                |                                                                  |       |         |
|                                                                                                                                                                               |                                  |   interest (acquired 4-17-98 thru 1-5-00)                           | 178,066                                                               |       | 54,399       |
|                                                                                                                                                                               |                                  | – STARTech Seed Fund II – 3.2% limited partnership                |                                                                  |       |         |
|                                                                                                                                                                               |                                  | interest (acquired 4-28-00 thru 2-23-05)                                      | 843,891                                                               |       | 119,621      |
|                                                                                                                                                                               |                                  | – Sterling Group Partners I, L.P. – 1.6% limited partnership      |                                                                  |       |         |
|                                                                                                                                                                               |                                  | interest (acquired 4-20-01 thru 1-24-05)                                      | 1,064,042                                                             |       | 660,845      |
| TOTAL INVESTMENTS                                                                                                                                                                  |                                  |                                                                          | $101,674,162                                                          |       | $459,048,754 |
|                                                                                                                                                                               |                                  |                                                                          |                                                                  |       |         |
| †Publicly-owned company   ¥ Control investment   * Affiliated investment  ‡Unrestricted securities as defined in Note (a) |                                  |                                                                          |

----

| Company                                                                                     |  Equity (a)         |                                                                                                                                                                                                                                                                                            |       Investment (b)                | Cost      |                    | Value (c) |
|---------------------------------------------------------------------------------------------|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|-----------|-------------------------|-----------|
|                                                                                        |                     |                                                                                                                                                                                                                                                                                            |                                                         |      |                    |
| ¥†ALAMO GROUP INC.                                                               | 22.0%                    |                                                                                                                                                                                                                                                                                            | 2,830,300 shares common stock (acquired 4-1-73               |      |                    |      |
| Seguin, Texas                                                                               |                     | thru 5-25-07)                                                                                                                                                                                                                                                                                   | $  2,190,937                                       |      | $  42,454,500 |
| Tractor-mounted mowing and mobile excavation                                                |                     |                                                                                                                                                                                                                                                                                            |                                                         |      |                    |
| equipment for governmental, industrial and agricultural                                     |                     |                                                                                                                                                                                                                                                                                            |                                                         |      |                    |
| markets; street-sweeping equipment for municipalities.                                      |                     |                                                                                                                                                                                                                                                                                            |                                                         |      |                    |
|                                                                                        |                     |                                                                                                                                                                                                                                                                                            |                                                         |      |                    |
| ALL COMPONENTS, INC.                                                                   | 80.4%                    |                                                                                                                                                                                                                                                                                            | 8.25%  subordinated note, $6,000,000 principal due |      |                    |      |
| Pflugerville, Texas                                                                         |                     | 2012 (acquired 6-27-07)                                             | 6,000,000                                                    |      | 6,454,925               |
| Electronics contract manufacturing; distribution and                                        |                     | 150,000 shares Series A Convertible Preferred Stock, con-                                                                                                                                                                                                                                       |                                                         |      |                    |
| production of memory and other components for                                               |                     | vertible into 600,000 shares of common stock at $0.25                                                                                                                                                                                                                                           |                                                         |      |                    |
| computer manufacturers,retailers and                                                        |                     | per share (acquired 9-16-94)                                                                                                                                                                                                                                                                    | 150,000                                                      |      | 5,821,725               |
|     value-added resellers.                                              |                     | Warrants to purchase 350,000 shares of common stock at                                                                                                                                                                                                                                          |                                                         |      |                    |
|                                                                                        |                     | $11.00 per share, expiring 2017 (acquired 6-27-07)                                                                                                                                                                                                                                              | –                                                      |      | –                 |
|                                                                                        |                     |                                                                                                                                                                                                                                                                                            | 6,150,000                                                    |      | 12,276,650              |
|                                                                                        |                     |                                                                                                                                                                                                                                                                                            |                                                         |      |                    |
| ATLANTIC CAPITALBANCSHARES, INC.                                                            |     1.9%  |                                                                                                                                                                                                                                                                                            | 300,000 shares common stock (acquired 4-10-07)               | 3,000,000 |                    | 3,150,000 |
| Atlanta, Georgia                                                                            |                     |                                                                                                                                                                                                                                                                                            |                                                         |      |                    |
| Holding company of Atlantic Capital Bank,    a full service commercial bank. |                     |                                                                                                                                                                                                                                                                                            |                                                         |      |                    |
|                                                                                        |                     |                                                                                                                                                                                                                                                                                            |                                                         |      |                    |
| ¥BALCO, INC.                                                                           | 90.9%                    |                                                                                                                                                                                                                                                                                            | 445,000 shares common stock and 60,920 shares Class B        |      |                    |      |
| Wichita, Kansas                                                                             |                     | non-voting common stock (acquired 10-25-83 and 5-30-02)                                                                                                                                                                                                                                         | 624,920                                                      |      | 8,000,000               |
| Specialty architectural products used in the construction                                   |                     |                                                                                                                                                                                                                                                                                            |                                                         |      |                    |
| and remodeling of commercial and institutional buildings.                                   |                     |                                                                                                                                                                                                                                                                                            |                                                         |      |                    |
|                                                                                        |                     |                                                                                                                                                                                                                                                                                            |                                                         |      |                    |
| *BOXX TECHNOLOGIES, INC.                                                               |     15.2% |                                                                                                                                                                                                                                                                                            | 3,125,354 shares Series B Convertible Preferred Stock,       |      |                    |      |
| Austin, Texas                                                                               |                     | convertible into 3,125,354 shares of common stock at                                                                                                                                                                                                                                            |                                                         |      |                    |
| Workstations for computer graphic imaging and design.                                       |                     | $0.50 per share (acquired 8-20-99 thru 8-8-01)                                                                                                                                                                                                                                                  | 1,500,000                                                    |      | 2                       |
|                                                                                        |                     |                                                                                                                                                                                                                                                                                            |                                                         |      |                    |
| *CMI HOLDING COMPANY, INC.                                                                  | 22.4%                    |                                                                                                                                                                                                                                                                                            | 10% convertible promissory note, due 2013 (acquired 2-23-10) | 650,000   |                    | 1,300,000 |
| Richardson, Texas                                                                           |                     | 1,631,516 shares Series C-1 Convertible Preferred                                                                                                                                                                                                                                               |                                                         |      |                    |
| Owns Chase Medical, which develops and sells devices                                        |                     | Stock, convertible into 1,631,516 shares of common                                                                                                                                                                                                                                              |                                                         |      |                    |
| used in cardiac surgery to relieve congestive heart failure;                                |                     | stock at $2.15 per share (acquired 7-10-09)                                                                                                                                                                                                                                                     | 2,863,347                                                    |      | 2,857,759               |
| develops and supports cardiac imaging systems.                                              |                     | 2,327,658 shares Series A Convertible Preferred Stock,                                                                                                                                                                                                                                          |                                                         |      |                    |
|                                                                                        |                     | convertible into 2,327,658 shares of common stock at                                                                                                                                                                                                                                            |                                                         |      |                    |
|                                                                                        |                     | $1.72 per share (acquired 8-21-02 and 6-4-03)                                                                                                                                                                                                                                                   | 4,000,000                                                    |      | 2                       |
|                                                                                        |                     | Warrants to purchase 109,012 shares of common stock at                                                                                                                                                                                                                                          |                                                         |      |                    |
|                                                                                        |                     | $1.72 per share, expiring 2012 (acquired 4-7-04)                                                                                                                                                                          |  –                                                |      |  –           |
|                                                                                        |                     | Warrants to purchase 636,151 shares of Series A-1 Convertible                                                                                                                                                                                                                                   |                                                         |      |                    |
|                                                                                        |                     | Preferred Stock at $1.72 per share expiring 2017 and                                                                                                                                                                                                                                            |                                                         |      |                    |
|                                                                                        |                     | 2019 (acquired 7-2-07 and 6-9-09)                                                                                     |  –                                                |      |  –           |
|                                                                                        |                     | Warrant to purchase 90,698 shares of Series D or D-1                                                                                                                                                                                                                                            |                                                         |      |                    |
|                                                                                        |                     | Convertible Preferred Stock at $1.72 per share expiring                                                                                                                                                                                                                                         |                                                         |      |                    |
|                                                                                        |                     | 2017 (acquired 2-23-10)                                                  |  –                                                |      |  –           |
|                                                                                        |                     |                                                                                                                                                                                                                                                                                            | 7,513,347                                                    |      | 4,157,761               |

----

| Company                                                                                                   |  Equity (a) |                                                                                                                                                                                                                                                                                                                                                                                     |       Investment (b)            |  Cost             |            |  Value (c)              |
|--------------------------------------------------------------------------------------------------------------------------|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------|------------------------|-----------------|------------------------------|
|                                                                                                                     |             |                                                                                                                                                                                                                                                                                                                                                                                     |                                                     |                   |            |
| CINATRA CLEAN                                                                                                            | 59.2%            |                                                                                                                                                                                                                                                                                                                                                                                     | 10% subordinated secured promissory note, $6,200,000     |                   |            |                         |
| TECHNOLOGIES, INC.                                                                                             |             |                                                                                                                                                                                                                                                                                                                                                                                     | principal due 2013 (acquired 7-14-08 thru 3-23-10)       | $  6,000,300 |            | $   3,815,235 |
| Houston, Texas                                                                                                           |             | 1,128,649 shares Series A Convertible Preferred Stock,                                                                                                                                                                                                                                                                                                                                   |                                                     |                   |            |
| Cleans above ground oil storage tanks with a patented,                                                                   |             | convertible into 1,128,649 shares of common stock at $1.00                                                                                                                                                                                                                                                                                                                               |                                                     |                   |            |
| automated system.                                                                                                        |             | per share (acquired 7-14-08 and 11-19-08)                                                                                                                                                                                                                                                                                                                                                |  1,128,649                                     |                   | 1,128,649  |
|                                                                                                                     |             |                                                                                                                                                                                                                                                                                                                                                                                     | 7,128,949                                                |                   | 4,943,884       |
|                                                                                                                     |             |                                                                                                                                                                                                                                                                                                                                                                                     |                                                     |                   |            |
|                                                                                                                     |             |                                                                                                                                                                                                                                                                                                                                                                                     |                                                     |                   |            |
| *†ENCORE WIRE CORPORATION                                                                                          | 17.3%            |                                                                                                                                                                                                                                                                                                                                                                                     | 4,086,750 shares common stock (acquired 7-16-92 thru     |                   |            |                         |
| McKinney, Texas                                                                                                          |             | 10-7-98)                                                                                                                                                                                                                                                                                                                                                                                 | 5,800,000                                                |                   | 67,431,375      |
| Electric wire and cable for residential, commercial and                                                                  |             |                                                                                                                                                                                                                                                                                                                                                                                     |                                                     |                   |            |
| industrial construction use.                                                                                             |             |                                                                                                                                                                                                                                                                                                                                                                                     |                                                     |                   |            |
|                                                                                                                     |             |                                                                                                                                                                                                                                                                                                                                                                                     |                                                     |                   |            |
| EXTREME INTERNATIONAL, INC.                                                                                         | 53.6%            |                                                                                                                                                                                                                                                                                                                                                                                     | 13,035 shares Series A common stock (acquired 9-26-08    |                   |            |                         |
| Sugar Land, Texas                                                                                                        |             | and 12-18-08)                                                                                                                                                                                                                                                                                                                                                                            | 325,875                                                  |                   | 600,000         |
| Owns  Bill  Young  Productions, Texas  Video  and  Post, and |             | 39,359.18 shares Series C Convertible Preferred Stock,                                                                                                                                                                                                                                                                                                                                   |                                                     |                   |            |
| Extreme Communications, which produce radio and television                                                               |             | convertible into 157,437.72 shares of common stock at                                                                                                                                                                                                                                                                                                                                    |                                                     |                   |            |
| commercials and corporate communications videos.                                                                         |             | $25.00 per share (acquired 9-30-03)                                                                                                                                                                                                                                                                                                                                                      | 2,625,000                                                |                   | 7,236,000       |
|                                                                                                                     |             | 3,750 shares 8% Series A Convertible Preferred Stock,                                                                                                                                                                                                                                                                                                                                    |                                                     |                   |            |
|                                                                                                                     |             | convertible into 15,000 shares of common stock at $25.00                                                                                                                                                                                                                                                                                                                                 |                                                     |                   |            |
|                                                                                                                     |             | per share (acquired 9-30-03)                                                           | 375,000                                                  |                   | 689,000         |
|                                                                                                                     |             |                                                                                                                                                                                                                                                                                                                                                                                     | 3,325,875                                                |                   | 8,525,000       |
|                                                                                                                     |             |                                                                                                                                                                                                                                                                                                                                                                                     |                                                     |                   |            |
| ¥†HEELYS, INC.                                                                                                | 31.1%            |                                                                                                                                                                                                                                                                                                                                                                                     | 9,317,310 shares common stock (acquired 5-26-00)         | 102,490                |            | 19,845,870                   |
| Carrollton, Texas                                                                                                        |             |                                                                                                                                                                                                                                                                                                                                                                                     |                                                     |                   |            |
| Heelys stealth skate shoes, equipment and apparel sold                                                                   |             |                                                                                                                                                                                                                                                                                                                                                                                     |                                                     |                   |            |
| through sporting goods chains,  department stores and                                                          |             |                                                                                                                                                                                                                                                                                                                                                                                     |                                                     |                   |            |
|     footware retailers.                                                                              |             |                                                                                                                                                                                                                                                                                                                                                                                     |                                                     |                   |            |
|                                                                                                                     |             |                                                                                                                                                                                                                                                                                                                                                                                     |                                                     |                   |            |
| †HOLOGIC, INC.                                                                                                     | <1%           |                                                                                                                                                                                                                                                                                                                                                                                     | ‡632,820 shares common stock (acquired 8-27-99)    | 220,000                |            | 11,726,155                   |
| Bedford, Massachusetts                                                                                                   |             |                                                                                                                                                                                                                                                                                                                                                                                     |                                                     |                   |            |
| Medical instruments including bone densitometers,                                                                        |             |                                                                                                                                                                                                                                                                                                                                                                                     |                                                     |                   |            |
| mammography devices and digital radiography systems.                                                                     |             |                                                                                                                                                                                                                                                                                                                                                                                     |                                                     |                   |            |
|                                                                                                                     |             |                                                                                                                                                                                                                                                                                                                                                                                     |                                                     |                   |            |
| iMEMORIES, INC.                                                                                                | 26.2%            |                                                                                                                                                                                                                                                                                                                                                                                     | 17,391,304 shares Series B Convertible Preferred Stock,  |                   |            |                         |
| Scottsdale, AZ                                                                                                           |             | convertible into 17,391,304 shares of common stock at                                                                                                                                                                                                                                                                                                                                    |                                                     |                   |            |
| Enables online video and photo sharing and DVD creation                                                                  |             | $0.23 per share (acquired 7-10-09)                                                                                                                                                                                                                                                                                                                                                       | 4,000,000                                                |                   | 4,000,000       |
| for home movies recorded in analog and new digital format.                                                               |             |                                                                                                                                                                                                                                                                                                                                                                                     |                                                     |                   |            |
|                                                                                                                     |             |                                                                                                                                                                                                                                                                                                                                                                                     |                                                     |                   |            |
| KBI BIOPHARMA, INC.                                                                                                 | 14.8%            |                                                                                                                                                                                                                                                                                                                                                                                     | 7,142,857 shares Series B-2 Convertible Preferred Stock, |                   |            |                         |
| Durham, NC                                                                                                               |             | convertible into 7,142,857 shares of common stock at                                                                                                                                                                                                                                                                                                                                     |                                                     |                   |            |
| Provides fully-integrated, outsourced drug development                                                                   |             | $0.70 per share (acquired 9-08-09)                                                                                                                                                                                                                                                                                                                                                       | 5,000,000                                                |                   | 5,000,000       |
| and bio-manufacturing services.                                                                                          |             |                                                                                                                                                                                                                                                                                                                                                                                     |                                                     |                   |            |
|                                                                                                                     |             |                                                                                                                                                                                                                                                                                                                                                                                     |                                                     |

----

| Company                                           |  Equity (a)          |                                                 |       Investment (b)            | Cost   |       | Value (c)   |
|------------------------------------------------------------------|---------------------------|------------------------------------------------------|----------------------------------------------------------|------------------|------------|-----------------------|
|                                                             |                      |                                                 |                                                     |             |       |
| ¥LIFEMARK GROUP                                             |     100.0% |                                                 | 1,449,026 shares common stock (acquired 7-16-69)         | $ 4,510,400      |       | $ 71,000,000          |
| Hayward, California                                              |                      |                                                 |                                                     |             |       |
| Cemeteries, mausoleums and mortuaries located in                 |                      |                                                 |                                                     |             |       |
| northern California.                                             |                      |                                                 |                                                     |             |       |
|                                                             |                      |                                                 |                                                     |             |       |
| ¥MEDIA RECOVERY, INC.                                       | 97.5%                     |                                                 | 800,000 shares Series A Convertible Preferred Stock,     |             |       |                  |
| Dallas, Texas                                                    |                      | convertible into 800,000 shares of common stock at   |                                                     |             |       |
| Computer datacenter and office automation supplies and           |                      | $1.00 per share (acquired 11-4-97)                   | 800,000                                                  |             | 2,200,000  |
| sensing devices accessories; impact, tilt monitoring and    |                      | 4,000,002 shares common stock (acquired 11-4-97)     | 4,615,000                                                |             | 11,200,000 |
| temperature to detect mishandled shipments; dunnage              |                      |                                                 | 5,415,000                                                |             | 13,400,000 |
|     for protecting shipments.                     |                      |                                                 |                                                     |             |       |
|                                                             |                      |                                                 |                                                     |             |       |
| *PALLETONE, INC.                                            | 8.4%                      |                                                 | 12.3% senior subordinated notes, $2,000,000              |             |       |                  |
| Bartow, Florida                                                  |                      | principal due 2012 (acquired 9-25-06)           | 1,553,150                                                |             | 2,000,000  |
| Manufacturer of wooden pallets and pressure-treated              |                      | 150,000 shares common stock (acquired 10-18-01)      | 150,000                                                  |             | 2          |
| lumber.                                                          |                      | Warrant to purchase 15,294 shares of common stock    |                                                     |             |       |
|                                                             |                      | at $1.00 per share, expiring 2011 (acquired 2-17-06) | 45,746                                                   |             | –    |
|                                                             |                      |                                                 | 1,748,896                                                |             | 2,000,002  |
|                                                             |                      |                                                 |                                                     |             |       |
| ¥†PALM HARBOR HOMES, INC.                             | 30.5%                     |                                                 | 7,855,121 shares common stock (acquired 1-3-85           |             |       |                  |
| Dallas, Texas                                                    |                      | thru 7-31-95)                                        | 10,931,955                                               |             | 6,833,955  |
| Integrated manufacturing, retailing, financing and insuring      |                      | Warrant to purchase 286,625 shares of common         |                                                     |             |       |
| of manufactured housing and modular homes.                       |                      | stock at $3.14 per share, expiring 2019 (acquired    |                                                     |             |       |
|                                                             |                      | 4-24-09)                                             | –                                                  |             | –    |
|                                                             |                      |                                                 | 10,931,955                                               |             | 6,833,955  |
|                                                             |                      |                                                 |                                                     |             |       |
| ¥THE RECTORSEALCORPORATION                                  |     100.0% |                                                 | 27,907 shares common stock (acquired 1-5-73 and 3-31-73) | 52,600      |       | 120,200,000      |
| Houston, Texas                                                   |                      |                                                 |                                                     |             |       |
| Specialty chemicals for plumbing, HVAC, electrical,              |                      |                                                 |                                                     |             |       |
| construction, industrial, oil field and automotive applications; |                      |                                                 |                                                     |             |       |
| smoke containment systems for building fires; also owns          |                      |                                                 |                                                     |             |       |
| 20% of The Whitmore Manufacturing Company.                       |                      |                                                 |                                                     |             |       |
|                                                             |                      |                                                 |                                                     |             |       |
| TCI HOLDINGS, INC.                                          | –                   |                                                 | 21 shares 12% Series C Cumulative Compounding            |             |       |                  |
| Denver, Colorado                                                 |                      | Preferred stock (acquired 1-30-90)                   | –                                                  |             | 677,250    |
| Cable television systems and microwave relay systems.            |                      |                                                 |                                                     |             |       |
|                                                             |                      |                                                 |                                                     |             |       |
| †TEXAS CAPITALBANCSHARES, INC.                             | 1.6%                      |                                                 | ‡489,656 shares common stock (acquired 5-1-00)     | 3,550,006        |       | 9,288,774             |
| Dallas, Texas                                                    |                      |                                                 |                                                     |             |       |
| Regional bank holding company with banking operations            |                      |                                                 |                                                     |             |       |
| in six Texas cities.                                             |                      |                                                 |                                                     |             |       |
|                                                             |                      |                                                 |                                                     |

----

| Company                                                                                                                                                                  | Equity (a)                      |                                                                           |       Investment (b)                     |  Cost |         |  Value (c) |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------|--------------------------------------------------------------------------------|-------------------------------------------------------------------|------------|--------------|-----------------|
|                                                                                                                                                                               |                            |                                                                           |                                                              |       |         |
| TRAX HOLDINGS, INC.                                                                                                                                                           | 31.1%                           |                                                                           | 1,061,279 shares Series A Convertible Preferred Stock,            |       |         |            |
| Scottsdale, Arizona                                                                                                                                                                |                            | convertible into 1,061,279 common stock at $4.71                          |                                                              |       |         |
| Provides a comprehensive set of solutions to improve                                                                                                                               |                            | per share (acquired 12-8-08 and 2-17-09)                                       | $5,000,000                                                        |       | $5,687,669   |
|     the transportation validation, accounting, payment                                                                                                              |                            |                                                                           |                                                              |       |         |
| and information management process.                                                                                                                                           |                            |                                                                           |                                                              |       |         |
|                                                                                                                                                                               |                            |                                                                           |                                                              |       |         |
| VIA HOLDINGS, INC.                                                                                                                                                            | 28.1%                           |                                                                           | 9,118 shares Series B Preferred Stock (acquired 9-19-05)          | 4,559,000  |         | 2               |
| Sparks, Nevada                                                                                                                                                                     |                            | 1,118 shares Series C Preferred Stock (acquired 11-1-07)                       | 281,523                                                           |       | 2            |
| Designer, manufacturer and distributor of high-quality                                                                                                                             |                            |                                                                           | 4,840,523                                                         |       | 4            |
| office  seating.                                                                                                                                                         |                            |                                                                           |                                                              |       |         |
|                                                                                                                                                                               |                            |                                                                           |                                                              |       |         |
| *WELLOGIX, INC.                                                                                                                                                               | 19.6%                           |                                                                           | 4,788,371 shares Series A-1 Convertible Participating             |       |         |            |
|    Houston, Texas                                                                                                                                                   |                            | Preferred Stock, convertible into 4,788,371 shares                             |                                                              |       |         |
| Developer and supporter of software used by the oil and gas                                                                                                                        |                            | of common stock at $1.0441 per share (acquired                                 |                                                              |       |         |
| industry.                                                                                                                                                                          |                            | 8-19-05 thru 6-15-08)                                                          | 5,000,000                                                         |       | 2            |
|                                                                                                                                                                               |                            |                                                                           |                                                              |       |         |
| ¥THE WHITMOREMANUFACTURING COMPANY                                                                                                                                            | 80.0%                           |                                                                           | 80 shares common stock (acquired 8-31-79)                         | 1,600,000  |         | 47,500,000      |
| Rockwall, Texas                                                                                                                                                                    |                            |                                                                           |                                                              |       |         |
| Specialized surface mining, railroad and industrial                                                                                                                                |                            |                                                                           |                                                              |       |         |
|     lubricants;coatings for automobiles and primary metals;                                                                                                         |                            |                                                                           |                                                              |       |         |
|     fluid contamination control devices.                                                                                                                            |                            |                                                                           |                                                              |       |         |
|                                                                                                                                                                               |                            |                                                                           |                                                              |       |         |
| MISCELLANEOUS                                                                                                                                                                      |                            | –Ballast Point Ventures II, L.P. – 2.6% limited partnership        |                                                              |       |         |
|                                                                                                                                                                               |                            | interest (acquired 8-4-08 thru 11-3-09)                                        | 675,000                                                           |       | 675,000      |
|                                                                                                                                                                               |                            | –BankCap Partners Fund I, L.P. – 6.0% limited partnership          |                                                              |       |         |
|                                                                                                                                                                               |                            | interest (acquired 7-14-06  thru 6-18-09)                            | 5,513,837                                                         |       | 5,179,842    |
|                                                                                                                                                                               |                            | –CapitalSouth Partners Fund III, L.P. – 2.0% limited partnership   |                                                              |       |         |
|                                                                                                                                                                               |                            | interest (acquired 1-22-08 and 2-12-09)                                        | 831,256                                                           |       | 831,256      |
|                                                                                                                                                                               |                            | –Diamond State Ventures, L.P. – 1.8% limited partnership           |                                                              |       |         |
|                                                                                                                                                                               |                            | interest (acquired 10-12-99 thru 8-26-05)                                      | 76,000                                                            |       | 186,852      |
|                                                                                                                                                                               |                            | –¥ Discovery Alliance, LLC – 90.0% limited liability company  |                                                              |       |         |
|                                                                                                                                                                               |                            | (acquired 9-12-08 thru 3-12-10)                                                | 750,000                                                           |       | 750,000      |
|                                                                                                                                                                               |                            | –Essex Capital Corporation – 10% unsecured promissory              |                                                              |       |         |
|                                                                                                                                                                               |                            | note due 8-19-11 (acquired 8-16-09)                                            | –                                                           |       | 1,000,000    |
|                                                                                                                                                                               |                            | –First Capital Group of Texas III, L.P. – 3.0% limited partnership |                                                              |       |         |
|                                                                                                                                                                               |                            | interest (acquired 12-26-00 thru 8-12-05)                                      | 778,895                                                           |       | 451,208      |
|                                                                                                                                                                               |     100.0%  |                                                                           | ¥– Humac Company – 1,041,000 shares common stock |       |         |            |
|                                                                                                                                                                               |                            | (acquired 1-31-75 and 12-31-75)                                                | –                                                           |       | 163,000      |
|                                                                                                                                                                               |                            | –STARTech Seed Fund I – 12.1% limited partnership                  |                                                              |       |         |
|                                                                                                                                                                               |                            |   interest (acquired 4-17-98 thru 1-5-00)                            | 178,066                                                           |       | 1            |
|                                                                                                                                                                               |                            | –STARTech Seed Fund II – 3.2% limited partnership                  |                                                              |       |         |
|                                                                                                                                                                               |                            | interest (acquired 4-28-00 thru 2-23-05)                                       | 950,000                                                           |       | 1            |
|                                                                                                                                                                               |                            | –Sterling Group Partners I, L.P. – 1.6% limited partnership        |                                                              |       |         |
|                                                                                                                                                                               |                            | interest (acquired 4-20-01 thru 1-24-05)                                       | 1,064,042                                                         |       | 607,044      |
| TOTAL INVESTMENTS                                                                                                                                                                  |                            |                                                                           | $100,022,994                                                      |       | $477,943,057 |
| †Publicly-owned company   ¥ Control investment   * Affiliated investment  ‡Unrestricted securities as defined in Note (a) |                            |                                                                           |                                                              |

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| ·   | Level 1:  Investments whose values are based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access.  We use Level 1 inputs for publicly traded unrestricted securities.  Such investments are valued at the closing price for listed securities and at the lower of the closing bid price or the closing sale price for over-the-counter (NASDAQ) securities on the valuation date. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 2: Investments whose values are based on observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.  These inputs may include quoted prices for the identical instrument in non-active markets, quoted prices for similar instruments in active markets and similar data.  We did not value any of our investments using Level 2 inputs as of December 31, 2010. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 3: Investments whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.  These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the investment.  We use Level 3 inputs for measuring the fair value of substantially all of our investments.  See “Notes to Consolidated Schedule of Investments” (c) on page 15 for the investment policy used to determine the fair value of these investments. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |                  |   |   |   |   | Fair Value Measurementsat 12/31/2010 Using                         |   |
|--------|-----------------------|--------|--------|--------|--------|--------------------------------------------------------------------|--------|
|   |                  |   | Total  |   |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
|   | Debt                  |   | $      | 14.7   |   |                                                               | $      | - |   |   | $ | - |   |   | $ | 14.7 |   |
|   | Partnership Interests |   |   | 8.9    |   |                                                               |   | - |   |   |   | - |   |   |   | 8.9 |   |
|   | Warrants              |   |   | -      |   |                                                               |   | - |   |   |   | - |   |   |   | - |   |
|   | Preferred Equity      |   |   | 36.6   |   |                                                               |   | - |   |   |   | - |   |   |   | 36.6 |   |
|   | Common Equity         |   |   | 398.8  |   |                                                               |   | 22.3 |   |   |   | - |   |   |   | 376.5 |   |
|   | Total Investments     |   | $      | 459.0  |   |                                                               | $      | 22.3 |   |   | $ | - |   |   | $ | 436.7 |   |

|   |                  |   |   |   |   | Fair Value Measurementsat 3/31/2010 Using                     |   |
|--------|-----------------------|--------|--------|--------|--------|---------------------------------------------------------------|--------|
|   |                  |   | Total  |   |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
|   | Debt                  |   | $      | 14.6   |   |                                                          | $      | - |   |   | $ | - |   |   | $ | 14.6 |   |
|   | Partnership Interests |   |   | 8.6    |   |                                                          |   | - |   |   |   | - |   |   |   | 8.6 |   |
|   | Preferred Equity      |   |   | 35.3   |   |                                                          |   | - |   |   |   | - |   |   |   | 35.3 |   |
|   | Common Equity         |   |   | 419.4  |   |                                                          |   | 21.0 |   |   |   | - |   |   |   | 398.4 |   |
|   | Total Investments     |   | $      | 477.9  |   |                                                          | $      | 21.0 |   |   | $ | - |   |   | $ | 456.9 |   |

|   |                 |   | Fair Value 3/31/2010 |   |   | Net Unrealized Appreciation (Depreciation) |   |   | Net Changes from Unrealized to Realized |   |   | New Investments |   |   | Divestitures |   |   | Fair Value 12/31/2010 |   |
|--------|----------------------|--------|----------------------|--------|--------|--------------------------------------------|--------|--------|-----------------------------------------|--------|--------|-----------------|--------|--------|--------------|--------|--------|-----------------------|--------|
|   | Debt                 |   | $                    | 14.6   |   |                                       | $      | -      |                                    |   | $      | -               |   |   | $            | 4.1    |   |                  | $      | (4.0 | ) |   | $ | 14.7 |   |
|   | Partnership Interest |   |                 | 8.6    |   |                                       |   | (0.3   | )                                       |   |   | -               |   |   |         | 0.6    |   |                  |   | - |   |   |   | 8.9 |   |
|   | Warrants             |   |                 | -      |   |                                       |   | -      |                                    |   |   | -               |   |   |         | -      |   |                  |   | - |   |   |   | - |   |
|   | Preferred Equity     |   |                 | 35.3   |   |                                       |   | (0.6   | )                                       |   |   | -               |   |   |         | 1.9    |   |                  |   | - |   |   |   | 36.6 |   |
|   | Common Equity        |   |                 | 398.4  |   |                                       |   | (21.1  | )                                       |   |   | -               |   |   |         | 3.7    |   |                  |   | (4.5 | ) |   |   | 376.5 |   |
|   | Total Investments    |   | $                    | 456.9  |   |                                       | $      | (22.0  | )                                       |   | $      | -               |   |   | $            | 10.3   |   |                  | $      | (8.5 | ) |   | $ | 436.7 |   |

----

|   |                 |   | Fair Value 9/30/2010 |   |   | Net Unrealized Appreciation (Depreciation) |   |   | Net Changes from Unrealized to Realized |   |   | New Investments |   |   | Divestitures |   |   | Fair Value 12/31/2010 |   |
|--------|----------------------|--------|----------------------|--------|--------|--------------------------------------------|--------|--------|----------------------------------------------|--------|--------|-----------------|--------|--------|--------------|--------|--------|-----------------------|--------|
|   | Debt                 |   | $                    | 18.4   |   |                                       | $      | (0.4   | )                                            |   | $      | -               |   |   | $            | 0.7    |   |                  | $      | (4.0 | ) |   | $ | 14.7 |   |
|   | Partnership Interest |   |                 | 9.2    |   |                                       |   | (0.3   | )                                            |   |   | -               |   |   |         | -      |   |                  |   | - |   |   |   | 8.9 |   |
|   | Warrants             |   |                 | 4.1    |   |                                       |   | (4.1   | )                                            |   |   | -               |   |   |         | -      |   |                  |   | - |   |   |   | - |   |
|   | Preferred Equity     |   |                 | 40.3   |   |                                       |   | (5.6   | )                                            |   |   | -               |   |   |         | 1.9    |   |                  |   | - |   |   |   | 36.6 |   |
|   | Common Equity        |   |                 | 348.1  |   |                                       |   | 28.4   |                                         |   |   | -               |   |   |         | -      |   |                  |   | - |   |   |   | 376.5 |   |
|   | Total Investments    |   | $                    | 420.1  |   |                                       | $      | 18.0   |                                         |   | $      | -               |   |   | $            | 2.6    |   |                  | $      | (4.0 | ) |   | $ | 436.7 |   |

----

| ·   | For the tax year ended December 31, 2010, we had net long-term capital gains of $70,221,589 for tax purposes and $70,325,930 for book purposes, which we elected to retain and treat as deemed distributions to our shareholders.  During the quarter ended December 31, 2010 we recorded a $4,217,985 reduction in the gain on sale of Lifemark Group, Inc.  This reduction was the result of a net asset adjustment calculated in accordance with the Stock Purchase Agreement signed on June 10, 2010. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In order to make the election to retain capital gains, we incurred federal taxes on behalf of our shareholders in the amount of $24,577,557 for the tax year ended December 31, 2010.  For the tax year ended December 31, 2009, we had net long-term capital gains of $2,327,150 for tax purposes and $1,682,616 for book purposes, which we elected to retain and treat as deemed distributions to our shareholders.  In order to make the election to retain capital gains, we incurred federal taxes on behalf of our shareholders in the amount of $814,502 for the tax year ended December 31, 2009. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|             |   |                        |   | Black-Scholes Pricing Model Assumptions |
|------------------|--------|-----------------------------|--------|-----------------------------------------|
| Date of Issuance |   | Weighted Average Fair Value |   | Expected Dividend Yield                 |   | Risk-Free Interest Rate |   | Expected Volatility |   | Expected Life       (in years) |
| 2009 Plan        |   |                        |   |                                    |   |   |   |   |
| July 19, 2010    |   |  $  28.59    |   | 0.91%                                   |   | 1.73% |   | 37.5% |   | 5 |
| March 22, 2010   |   |  $  32.56    |   | 0.84%                                   |   | 2.43% |   | 37.8% |   | 5 |
| October 19, 2009 |   |  $  25.36    |   | 1.04%                                   |   | 2.36% |   | 37.6% |   | 5 |
|             |   |                        |   |                                    |   |   |   |   |   |   |
| 1999 Plan        |   |                        |   |                                    |   |   |   |   |
| July 30, 2008    |   |  $  29.93    |   | 0.62%                                   |   | 3.36% |   | 20.2% |   | 5 |
| July 21, 2008    |   |  $  27.35    |   | 0.67%                                   |   | 3.41% |   | 20.2% |   | 5 |
| July 16, 2007    |   |  $  41.78    |   | 0.39%                                   |   | 4.95% |   | 19.9% |   | 5 |
| July 17, 2006    |   |  $  33.05    |   | 0.61%                                   |   | 5.04% |   | 21.2% |   | 7 |
| May 15, 2006     |   |  $  31.28    |   | 0.64%                                   |   | 5.08% |   | 21.1% |   | 7 |

|                                  |   | Number    |    |   | Weighted-Average |   |
|---------------------------------------|--------|-----------|---------|--------|------------------|--------|
|                                  |   | of shares |    |   | Exercise Price   |   |
|                                  |   |      |    |   |             |   |
| 2009 Plan                             |   |      |    |   |             |   |
| Balance at March 31, 2010             |   |      | 58,750  |   |             | $      | 83.23 |   |
|    Granted             |   |      | 15,000  |   |             |   | 88.20 |   |
| Exercised                             |   |      | – |   |             |   | – |   |
| Canceled                              |   |      | – |   |             |   | – |   |
| Balance at December 31, 2010          |   |      | 73,750  |   |             | $      | 83.24 |   |
|                                  |   |      |    |   |             |   |   |   |
| 1999 Plan                             |   |      |    |   |             |   |   |   |
| Balance at March 31, 2010             |   |      | 107,900 |   |             | $      | 114.78 |   |
|    Granted             |   |      | – |   |             |   | – |   |
| Exercised                             |   |      | (11,400 | )      |             |   | 65.37 |   |
| Canceled                              |   |      | – |   |             |   | – |   |
| Balance at December 31, 2010          |   |      | 96,500  |   |             | $      | 107.86 |   |
| Combined Balance at December 31, 2010 |   |      | 170,250 |   |             | $      | 104.83 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Three Months Ended |    |   | Nine Months Ended |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|--------|-------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | December 31        |    |   | December 31       |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 2010               |    |   | 2009              |   |   | 2010 |   |   | 2009 |   |
| Investment income                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $                  | .63     |   |              | $      | .68 |   |   | $ | 1.73 |   |   | $ | 1.34 |   |
| Operating expenses                                                                                                                                                                                                                                                                                                                                                                                                                      |   |               | (.29    | )      |              |   | (.21 | ) |   |   | (.84 | ) |   |   | (.59 | ) |
| Interest expense                                                                                                                                                                                                                                                                                                                                                                                                                        |   |               | – |   |              |   | – |   |   |   | – |   |   |   | – |   |
| Income taxes                                                                                                                                                                                                                                                                                                                                                                                                                            |   |               | (.01    | )      |              |   | (.01 | ) |   |   | (.02 | ) |   |   | (.02 | ) |
| Net investment income                                                                                                                                                                                                                                                                                                                                                                                                                   |   |               | .33     |   |              |   | .46 |   |   |   | .87 |   |   |   | .73 |   |
| Distributions from undistributed                                                                                                                                                                                                                                                                                                                                                                                                        |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
|   net investment income                                                                                                                                                                                                                                                                                                                                                                                                       |   |               | (.40    | )      |              |   | (.40 | ) |   |   | (.80 | ) |   |   | (.80 | ) |
| Net realized gain (loss) on investments                                                                 |   |               | (7.67   | )      |              |   | (.22 | ) |   |   | 12.19 |   |   |   | .22 |   |
| Net increase (decrease) in unrealized                                                                                                                                                                                                                                                                                                                                                                                                   |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
|   appreciation of investments                                                                                                                                                                                                                                                                                                                                                                                                 |   |               | 5.82    |   |              |   | .84 |   |   |   | (5.47 | ) |   |   | 10.80 |   |
| Exercise of employee stock options                                                                                                                                                                                                                                                                                                                                                                                                      |   |               | (.19    | )      |              |   | – |   |   |   | (.20 | ) |   |   | (.07 | ) |
| Stock option expense                                                                                                                                                                                                                                                                                                                                                                                                     |   |               | .06     |   |              |   | .05 |   |   |   | .19 |   |   |   | .13 |   |
| Increase (decrease) in net asset value                                                                                                                                                                                                                                                                                                                                                                                                  |   |               | (2.05   | )      |              |   | .73 |   |   |   | 6.78 |   |   |   | 11.01 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net asset value:                                                                                                                                                                                                                                                                                                                                                                                                                        |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
|  Beginning of period                                                                                                                                                                                                                                                                                                                                                                                                               |   |               | 138.99  |   |              |   | 121.26 |   |   |   | 130.14 |   |   |   | 110.98 |   |
|  End of period                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                  | 136.92  |   |              | $      | 121.99 |   |   | $ | 136.92 |   |   | $ | 121.99 |   |
| Shares outstanding at end of period                                                                                                                                                                                                                                                                                                                                                                                                     |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
|      (000s omitted)                                                                                                                                                                                                                                                                                                                                                                                            |   |               | 3,753   |   |              |   | 3,742 |   |   |   | 3,753 |   |   |   | 3,742 |   |

----

|                 |   | December 31,2010 |        |   | March 31,2010 |   |        | December 31, 2009 |   |
|----------------------|--------|------------------|-------------|--------|---------------|--------|-------------|------------------------|--------|
| Net assets           |   | $                | 513,863,215 |   |          | $      | 486,925,586 |                   |   | $ | 456,455,923 |   |
| Shares outstanding   |   |             | 3,753,038   |   |          |   | 3,741,638   |                   |   |   | 3,741,638 |   |
| Net assets per share |   | $                | 136.92      |   |          | $      | 130.14      |                   |   | $ | 121.99 |   |

----

|                               |   | Nine Months EndedDecember 31, |      |
|------------------------------------|--------|-------------------------------|-----------|
|                               |   | 2010                          |      |   | 2009 |   |
| Alamo Group Inc.                   |   | $                             | 509,454   |   |   | $ | 509,454 |   |
| Balco, Inc.                        |   |                          | 1,817,503 |   |   |   | - |   |
| CapitalSouth Partners Fund III     |   |                          | -         |   |   |   | 20,528 |   |
| Dennis Tool Company                |   |                          | -         |   |   |   | 33,333 |   |
| Encore Wire Corporation            |   |                          | 245,205   |   |   |   | 245,205 |   |
| The RectorSeal Corporation         |   |                          | 1,781,828 |   |   |   | 1,877,870 |   |
| TCI Holdings, Inc                  |   |                          | 60,953    |   |   |   | 60,953 |   |
| The Whitmore Manufacturing Company |   |                          | 445,457   |   |   |   | 469,467 |   |
|                               |   | $                             | 4,860,400 |   |   | $ | 3,216,810 |   |

|                               |   | Three Months EndedDecember 31, |        |   | Nine Months EndedDecember 31, |   |
|------------------------------------|--------|--------------------------------|-------------|--------|-------------------------------|--------|
|                               |   | 2010                           |        |   | 2009                          |   |   | 2010 |   |   | 2009 |   |
| Alamo Group Inc.                   |   | $                              | 11,604,230  |   |                          | $      | 2,830,300 |   |   | $ | 16,557,255 |   |   | $ | 14,151,500 |   |
| All Components, Inc.               |   |                           | (10,040,342 | )      |                          |   | 1,000,000 |   |   |   | (1,781,680 | ) |   |   | 7,612,999 |   |
| Balco, Inc.                        |   |                           | (700,000    | )      |                          |   | – |   |   |   | (2,700,000 | ) |   |   | 1,400,000 |   |
| CMI Holding Company, Inc.          |   |                           | –     |   |                          |   | – |   |   |   | (4,132,758 | ) |   |   | 2,700,759 |   |
| Encore Wire Corporation            |   |                           | 15,325,313  |   |                          |   | (4,086,750 | ) |   |   | 15,325,313 |   |   |   | 4,086,750 |   |
| Heelys, Inc.                       |   |                           | 2,142,981   |   |                          |   | 465,866 |   |   |   | 2,422,501 |   |   |   | 4,285,963 |   |
| Media Recovery, Inc.               |   |                           | 2,900,000   |   |                          |   | 1,900,000 |   |   |   | 5,600,000 |   |   |   | (1,100,000 | ) |
| Palm Harbor Homes, Inc.            |   |                           | –     |   |                          |   | (2,984,947 | ) |   |   | (6,833,953 | ) |   |   | (2,984,947 | ) |
| The RectorSeal Corporation         |   |                           | (5,100,000  | )      |                          |   | 5,300,000 |   |   |   | 12,800,000 |   |   |   | 2,600,000 |   |
| The Whitmore Manufacturing Company |   |                           | 2,400,000   |   |                          |   | – |   |   |   | 4,300,000 |   |   |   | 2,400,000 |   |

----

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----

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| (a)   | Exhibits |
|-----------------|----------|

----

|                                                                                                                  |   | CAPITAL SOUTHWEST CORPORATION                       |
|-----------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|
|                                                                                                                  |   |                                                |
| Date:             February 7, 2011    | By:    |                                                |   |
|                                                                                                                  |   | Gary L. Martin, Chairman of the Board and President |
|                                                                                                                  |   |                                                |
|                                                                                                                  |   |                                                |

|                                                                              |   |                                     |   |
|-----------------------------------------------------------------------------------|--------|------------------------------------------|--------|
| Date:          February 7, 2011 | By:    | /s/ Tracy L. Morris                 |   |
|                                                                              |   | Tracy L. Morris, Chief Financial Officer |   |
|                                                                              |   |                                     |   |
|                                                                              |   |                                     |   |

----