|   | [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               |     |
| September 30, 2010 (Unaudited) and March 31, 2010          | 3        |
|                                                            |     |
| Consolidated Statements of Operations (Unaudited)               |     |
| For the six months ended September 30, 2010 and            |     |
| September 30, 2009                                              | 4        |
|                                                            |     |
| Consolidated Statements of Changes in Net Assets (Unaudited)    |     |
| For the six months ended September 30, 2010 and            |     |
| September 30, 2009                                              | 5        |
|                                                            |     |
| Consolidated Statements of Cash Flows (Unaudited)               |     |
| For the six months ended September 30, 2010 and            |     |
| September 30, 2009                                              | 6        |
|                                                            |     |
| Consolidated Schedules of Investments (Unaudited)               |     |
| September 30, 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                             | 27       |
|                                                            |     |
| ITEM 3. Quantitative and Qualitative Disclosure About           |     |
| Market Risk                                                     | 30       |
|                                                            |     |
| ITEM 4. Controls and Procedures                                 | 30       |
|                                                            |     |
| PART II. OTHER INFORMATION                                      |     |
|                                                            |     |
| ITEM 1 Legal Proceedings                                        | 31       |
|                                                            |     |
| ITEM 1A. Risk Factors                                           | 31       |
|                                                            |     |
| ITEM 6. Exhibits                                                | 32       |
|                                                            |     |
| Signatures                                                      | 33       |

----

| Assets                                                      |   | September 30, 2010 |                                                           |   | March 31, 2010 |   |
|-------------------------------------------------------------|--------|--------------------|----------------------------------------------------------------|--------|----------------|--------|
|                                                        |   |               |                                                           |   |           |   |
|                                                        |   | (Unaudited)        |                                                           |   |           |   |
| Investments at market or fair value                         |   |               |                                                           |   |           |   |
| Companies more than 25% owned                               |   |               |                                                           |   |           |   |
|    (Cost: September 30, 2010 - $21,817,902,  |   |               |                                                           |   |           |   |
|    March 31, 2010 - $26,178,302)             |   |               |  $ 278,194,917                                            |   |           |   | $ 330,147,325 |   |
| Companies 5% to 25% owned                                   |   |               |                                                           |   |           |   |   |   |
|    (Cost: September 30, 2010 - $23,026,278,  |   |               |                                                           |   |           |   |   |   |
|    March 31, 2010 - $21,562,243)             |   |               | 70,920,419                                                     |   |           |   | 73,589,142 |   |
| Companies less than 5% owned                                |   |               |                                                           |   |           |   |   |   |
|    (Cost: September 30, 2010 - $58,271,455,  |   |               |                                                           |   |           |   |   |   |
|    March 31, 2010 - $52,282,449)             |   |               | 89,537,691                                                     |   |           |   | 74,206,590 |   |
| Total investments                                           |   |               |                                                           |   |           |   |   |   |
|    (Cost: September 30, 2010 - $103,115,635, |   |               |                                                           |   |           |   |   |   |
|    March 31, 2010 - $100,022,994)            |   |               | 438,653,027                                                    |   |           |   | 477,943,057 |   |
| Cash and cash equivalents                                   |   |               | 77,057,668                                                     |   |           |   | 4,093,508 |   |
| Receivables                                                 |   |               |                                                           |   |           |   |   |   |
| Dividends and interest                                      |   |               | 263,466                                                        |   |           |   | 1,012,782 |   |
| Affiliates                                                  |   |               | 289,345                                                        |   |           |   | 864,943 |   |
| Pension assets                                              |   |               | 7,253,594                                                      |   |           |   | 7,068,957 |   |
| Other assets                                                |   |               | 173,397                                                        |   |           |   | 191,338 |   |
| Total assets                                                |   |               | $ 523,690,497                                                  |   |           |   | $ 491,174,585 |   |
| Liabilities                                                 |   |               |                                                           |   |           |   |   |   |
|                                                        |   |               |                                                           |   |           |   |   |   |
| Other liabilities                                           |   |               | $        267,844            |   |           |   | $     1,070,540 |   |
| Pension liability                                           |   |               | 1,121,922                                                      |   |           |   | 1,082,941 |   |
| Deferred income taxes                                       |   |               | 2,146,518                                                      |   |           |   | 2,095,518 |   |
| Total liabilities                                           |   |               | 3,536,284                                                      |   |           |   | 4,248,999 |   |
| Net Assets                                                  |   |               |                                                           |   |           |   |   |   |
| Common stock, $1 par value: authorized,                     |   |               |                                                           |   |           |   |   |   |
|   5,000,000 shares; issued, 4,327,298 shares      |   |               |                                                           |   |           |   |   |   |
|   at September 30, 2010 and 4,326,516 at          |   |               |                                                           |   |           |   |   |   |
|   March 31, 2010                                  |   |               | 4,327,298                                                      |   |           |   | 4,326,516 |   |
| Additional capital                                          |   |               | 127,073,008                                                    |   |           |   | 126,554,546 |   |
| Undistributed net investment income                         |   |               | 2,608,001                                                      |   |           |   | 2,061,109 |   |
| Undistributed net realized gain on investments              |   |               | 74,545,161                                                     |   |           |   | – |   |
| Unrealized appreciation of investments                      |   |               | 335,537,393                                                    |   |           |   | 377,920,063 |   |
| Treasury stock - at cost 584,878 shares at                  |   |               |                                                           |   |           |   |   |   |
|   September 30, 2010 and March 31, 2010           |   |               | (23,936,648                                                    | )      |           |   | (23,936,648 | ) |
| Total net assets                                            |   |               | 520,154,213                                                    |   |           |   | 486,925,586 |   |
| Total liabilities and net assets                            |   |               | $ 523,690,497                                                  |   |           |   | $ 491,174,585 |   |
| Net asset value per share                                   |   |               |                                                           |   |           |   |   |   |
|   (on the 3,742,420 shares outstanding)           |   |               | $          138.99 |   |           |   | $          130.14 |   |

----

|                                                                                                                                                                                                                                                                                                                                             |   | Three Months Ended |                                               |   | Six Months Ended |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|----------------------------------------------------|--------|------------------|--------|
|                                                                                                                                                                                                                                                                                                                                             |   | September 30       |                                               |   | September 30     |   |
|                                                                                                                                                                                                                                                                                                                                             |   | 2010               |                                               |   | 2009             |   |   | 2010 |   |   | 2009 |   |
| Investment income:                                                                                                                                                                                                                                                                                                                               |   |               |                                               |   |             |   |   |   |   |   |   |   |
| Interest                                                                                                                                                                                                                                                                                                                                         |   |               | $      449,760            |   |             |   | $      189,446 |   |   |   | $      750,311 |   |   |   | $      512,254 |   |
| Dividends                                                                                                                                                                                                                                                                                                                                        |   |               | 571,871                                            |   |             |   | 613,232 |   |   |   | 2,961,244 |   |   |   | 1,197,602 |   |
| Management and directors' fees                                                    |   |               | 142,150                                            |   |             |   | 260,350 |   |   |   | 418,800 |   |   |   | 543,100 |   |
|                                                                                                                                                                                                                                                                                                                                             |   |               | 1,163,781                                          |   |             |   | 1,063,028 |   |   |   | 4,130,355 |   |   |   | 2,252,956 |   |
| Operating expenses:                                                                                                                                                                                                                                                                                                                              |   |               |                                               |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Salaries                                                                                                                                                                                                                                                                                                                                         |   |               | 709,087                                            |   |             |   | 495,276 |   |   |   | 1,330,777 |   |   |   | 951,332 |   |
| Net pension benefit                                                                                                                                                                                                                                                                                                                              |   |               | (53,379                                            | )      |             |   | (121,248 | ) |   |   | (145,656 | ) |   |   | (184,554 | ) |
| Professional fees                                                                                                                                                                                                                                                                                                                                |   |               | 175,520                                            |   |             |   | 105,039 |   |   |   | 412,976 |   |   |   | 260,602 |   |
| Other operating expenses                                                                                                                                                                                                                                                                                                                         |   |               | 232,629                                            |   |             |   | 186,891 |   |   |   | 440,199 |   |   |   | 362,028 |   |
|                                                                                                                                                                                                                                                                                                                                             |   |               | 1,063,857                                          |   |             |   | 665,958 |   |   |   | 2,038,296 |   |   |   | 1,389,408 |   |
| Income before income taxes                                                                                                                                                                                                                                                                                                                       |   |               | 99,924                                             |   |             |   | 397,070 |   |   |   | 2,092,059 |   |   |   | 863,548 |   |
| Income tax expense                                                                                                                                                               |   |               | 18,724                                             |   |             |   | 35,234 |   |   |   | 48,512 |   |   |   | 57,434 |   |
|                                                                                                                                                                                                                                                                                                                                             |   |               |                                               |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net investment income                                                                                                                                                                                                                                                                                                                            |   |               | $        81,200 |   |             |   | $      361,836 |   |   |   | $   2,043,547 |   |   |   | $      806,114 |   |
|                                                                                                                                                                                                                                                                                                                                             |   |               |                                               |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net realized gain on investments, (net of $1,218,855 of estimated transfer taxes on June 10, 2010 sale of Lifemark Group, see Note 3 –“Income Taxes” for discussion of income taxes related to gain on sale ofLifemark Group)                                                                                             |   |               | 529,797                                            |   |             |   | 1,846,516 |   |   |   | 74,545,161 |   |   |   | 1,846,516 |   |
|                                                                                                                                                                                                                                                                                                                                             |   |               |                                               |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in                                                                                                                                                                                                                                                                                                                       |   |               |                                               |   |             |   |   |   |   |   |   |   |   |   |   |   |
|    unrealized appreciation of                                                                                                                                                                                                                                                                                                     |   |               |                                               |   |             |   |   |   |   |   |   |   |   |   |   |   |
|    investments                                                                                                                                                                                                                                                                                                                    |   |               | 23,359,943                                         |   |             |   | 27,013,023 |   |   |   | (42,382,670 | ) |   |   | 37,262,293 |   |
| Net realized and unrealized                                                                                                                                                                                                                                                                                                                      |   |               |                                               |   |             |   |   |   |   |   |   |   |   |   |   |   |
|   gain on investments                                                                                                                                                                                                                                                                                                                  |   |               | $ 23,889,740                                       |   |             |   | $ 28,859,539 |   |   |   | $ 32,162,491 |   |   |   | $ 39,108,809 |   |
| Increase in net assets from                                                                                                                                                                                                                                                                                                                      |   |               |                                               |   |             |   |   |   |   |   |   |   |   |   |   |   |
|   Increase in net assets from operations                                                                                                                                                                                                                                                                                               |   |               | $ 23,970,940                                       |   |             |   | $ 29,221,375 |   |   |   | $ 34,206,038 |   |   |   | $ 39,914,923 |   |

----

|                                                      |   | Six Months         |                                |   | Six Months         |   |
|-----------------------------------------------------------|--------|--------------------|-------------------------------------|--------|--------------------|--------|
|                                                      |   | Ended              |                                |   | Ended              |   |
|                                                      |   | September 30, 2010 |                                |   | September 30, 2009 |   |
| Operations:                                               |   |               |                                |   |               |   |
| Net investment income                                     |   |               | $     2,043,547 |   |               |   | $         806,114 |   |
| Net realized gain on investments                          |   |               | 74,545,161                          |   |               |   | 1,846,516 |   |
| Net increase (decrease) in unrealized                     |   |               |                                |   |               |   |   |   |
|      appreciation of investments |   |               | (42,382,670                         | )      |               |   | 37,262,293 |   |
| Increase in net assets from operations                    |   |               | 34,206,038                          |   |               |   | 39,914,923 |   |
| Distributions from:                                       |   |               |                                |   |               |   |   |   |
| Undistributed net investment income                       |   |               | (1,496,655                          | )      |               |   | (1,496,655 | ) |
|                                                      |   |               |                                |   |               |   |   |   |
| Capital share transactions:                               |   |               |                                |   |               |   |   |   |
| Change in pension plan funded status                      |   |               | –                             |   |               |   | (263,416 | ) |
| Exercise of employee stock options                        |   |               | 51,377                              |   |               |   | – |   |
| Stock option expense                                      |   |               | 467,867                             |   |               |   | 283,051 |   |
| Increase in net assets                                    |   |               | 33,228,627                          |   |               |   | 38,437,903 |   |
| Net assets, beginning of period                           |   |               | 486,925,586                         |   |               |   | 415,262,991 |   |
| Net assets, end of period                                 |   |               | $ 520,154,213                       |   |               |   | $ 453,700,894 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | Three Months Ended |                              |    |   | Six Months Ended |                              |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|-----------------------------------|---------|--------|------------------|-----------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | September 30       |                              |    |   | September 30     |                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 2010               |                              |    | 2009   |             |                              |   | 2010 |   |   | 2009 |   |
| Cash flows from operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |               |                              |    |   |             |                              |   |   |   |   |   |   |
| Increase in net assets from operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |               | $ 23,970,940                      |    |   |             | $ 29,221,375                      |   |   |   |   | $ 34,206,038 |   |   |   | $ 39,914,923 |   |
| Adjustments to reconcile increase in net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |               |                              |    |   |             |                              |   |   |   |   |   |   |   |   |   |   |
|   assets from operations to net cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |               |                              |    |   |             |                              |   |   |   |   |   |   |   |   |   |   |
|   provided by (used in) operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |               |                              |    |   |             |                              |   |   |   |   |   |   |   |   |   |   |
|   Net proceeds from disposition of investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |               | 529,798                           |    |   |             | 5,176,459                         |   |   |   |   | 75,351,942 |   |   |   | 5,176,459 |   |
|   Proceeds from repayment of debt securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |               | 134,337                           |    |   |             | –                           |   |   |   |   | 134,337 |   |   |   | 3,000,000 |   |
|   Purchases of securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |               | (1,639,035                        | )  |   |             | (9,405,000                        | )  |   |   |   | (4,033,759 | )  |   |   | (15,368,588 | ) |
|   Depreciation and amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |               | 6,507                             |    |   |             | 7,245                             |   |   |   |   | 12,834 |   |   |   | 14,898 |   |
|   Net pension benefit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |               | (53,379                           | )  |   |             | (121,248                          | )  |   |   |   | (145,656 | )  |   |   | (184,554 | ) |
|   Realized gain on investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |               | (529,797                          | )  |   |             | (1,846,516                        | )  |   |   |   | (74,545,161 | )  |   |   | (1,846,516 | ) |
|   Net (increase) decrease in unrealized                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |               |                              |    |   |             |                              |   |   |   |   |   |   |   |   |   |   |
|   appreciation of investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |               | (23,359,943                       | )  |   |             | (27,013,023                       | )  |   |   |   | 42,382,671 |   |   |   | (37,262,293 | ) |
|   Stock option expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |               | 244,650                           |    |   |             | 141,526                           |   |   |   |   | 467,867 |   |   |   | 283,051 |   |
|   (Increase) decrease in dividend and interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |               |                              |    |   |             |                              |   |   |   |   |   |   |   |   |   |   |
|      receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |               | 74,551                            |    |   |             | 62,048                            |   |   |   |   | 749,316 |   |   |   | (233,818 | ) |
|   Increase (decrease) in receivables from affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |               | 358,759                           |    |   |             | (726,662                          | )  |   |   |   | 575,598 |   |   |   | (764,067 | ) |
|   Increase in other assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |               | 7,568                             |    |   |             | 19,977                            |   |   |   |   | 5,107 |   |   |   | 26,853 |   |
|   Increase (decrease) in other liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |               | (752,882                          | )  |   |             | 665,853                           |   |   |   |   | (802,696 | )  |   |   | 698,106 |   |
|   Increase in deferred income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |               | 18,600                            |    |   |             | 42,600                            |   |   |   |   | 51,000 |   |   |   | 64,800 |   |
| Net cash provided by (used in) operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |               | (989,326                          | )  |   |             | (3,775,366                        | )  |      |   |   | 74,409,438 |   |   |   | (6,480,746 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |               |                              |    |   |             |                              |   |   |   |   |   |   |   |   |   |   |
| Cash flows from financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |               |                              |    |   |             |                              |   |   |   |   |   |   |   |   |   |   |
| Distributions from undistributed net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |               |                              |    |   |             |                              |   |   |   |   |   |   |   |   |   |   |
|   investment income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |               | –                           |    |   |             | –                           |   |   |   |   | (1,496,655 | )  |   |   | (1,496,655 | ) |
| Proceeds from exercise of employee stock options                                                                                      |   |               | 51,377                            |    |   |             | –                           |   |   |   |   | 51,377 |   |   |   | – |   |
| Net cash provided by (used in) financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |               | 51,377                            |    |   |             | –                           |   |   |   |   | (1,445,278 | )  |   |   | (1,496,655 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |               |                              |    |   |             |                              |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |               |                              |    |   |             |                              |   |   |   |   |   |   |   |   |   |   |
|   equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |               | (937,949                          | )  |   |             | (3,775,366                        | )  |   |   |   | 72,964,160 |   |   |   | (7,977,401 | ) |
| Cash and cash equivalents at beginning                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |               |                              |    |   |             |                              |   |   |   |   |   |   |   |   |   |   |
|   of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |               | 77,995,617                        |    |   |             | 10,519,695                        |   |   |   |   | 4,093,508 |   |   |   | 14,721,730 |   |
| Cash and cash equivalents at end of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |               | $ 77,057,668                      |    |   |             | $   6,744,329           |   |   |   |   | $ 77,057,668 |   |   |   | $   6,744,329 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |               |                              |    |   |             |                              |   |   |   |   |   |   |   |   |   |   |
| 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                                                                  |          | $  47,407,525 |
| 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                                                                               |          | 6,000,000               |
| 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                                                                                 |          | 10,426,409              |
|     value-added resellers                                                    |                     | Warrants to purchase 350,000 shares of common stock                                                                                                                                                                                                                                             |                                                                                    |          |                    |
|                                                                                        |                     | at $11.00 per share, expiring 2017 (acquired 6-27-07)                                                                                                                                                                                                                                           | –                                                                                 |          | 4,108,903               |
|                                                                                        |                     |                                                                                                                                                                                                                                                                                            | 6,150,000                                                                               |          | 20,535,312              |
|                                                                                        |                     |                                                                                                                                                                                                                                                                                            |                                                                                    |          |                    |
| 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                                                                                 |          | 6,600,000               |
| 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;                                |                     | 1,631,516 shares Series C-1 Convertible Preferred                                                                                                                                                                                                                                               |                                                                                    |          |                    |
| develops and supports cardiac imaging systems.                                              |                     | 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)                                                  |  –                                                                           |          | –                 |
|                                                                                        |                     |                                                                                                                                                                                                                                                                                            | 8,977,382                                                                               |          | 1,489,038               |

----

| Company                                                                                                   | Equity (a) |                                                                                                                                                                                                                                                                                                                                                                                     |        Investment (b)                                                       |  Cost      |                     |  Value (c) |
|--------------------------------------------------------------------------------------------------------------------------|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|-----------------|--------------------------|-----------------|
|                                                                                                                     |       |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                      |            |                     |
| CINATRA CLEAN TECHNOLOGIES, INC.                                                                                         | 59.2%      |                                                                                                                                                                                                                                                                                                                                                                                     | 10% subordinated secured promissory note, due 2012     (acquired 5-19-10)   | $  940,354 |                     | $ 940,354  |
| 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.                                                                                                        |       | 1,128,649 shares Series A Convertible Preferred Stock,                                                                                                                                                                                                                                                                                                                                   |                                                                                                      |            |      |
|                                                                                                                     |       | convertible into 1,128,649 shares of common stock at $1.00                                                                                                                                                                                                                                                                                                                               |                                                                                                      |            |                     |
|                                                                                                                     |       | per share (acquired 7-14-08 and 11-19-08)                                                                                                                                                                                                                                                                                                                                                |  1,128,649                                                                                      |            |  1,128,649     |
|                                                                                                                     |       |                                                                                                                                                                                                                                                                                                                                                                                     |  8,269,703                                                                                           |            |  8,269,703          |
|                                                                                                                     |       |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                      |            |                     |
|                                                                                                                     |       |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                      |            |                     |
| *†ENCORE WIRE CORPORATION                                                                                          | 17.0%      |                                                                                                                                                                                                                                                                                                                                                                                     | 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                                                                                                   |            | 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         |                     | 20,125,390      |
| 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         |                     | 10,131,448      |
| Bedford, Massachusetts                                                                                                   |       |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                      |            |                     |
| Medical instruments including bone densitometers,                                                                        |       |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                      |            |                     |
| mammography devices and digital radiography systems.                                                                     |       |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                      |            |                     |
|                                                                                                                     |       |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                      |            |                     |
| iMEMORIES, INC.                                                                                                          | 27.4%      |                                                                                                                                                                                                                                                                                                                                                                                     | 10% subordinated secured promissory note, due 2012                                                   | 775,000    |                     | 775,000    |
| 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)                                                                                                                                                                                                                                                                                                                           |   -                                                                                                  |            |   -                 |
|                                                                                                                     |       |                                                                                                                                                                                                                                                                                                                                                                                     | 4,775,000                                                                                            |            | 4,775,000           |
|                                                                                                                     |       |                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                      |            |                     |
| KBI BIOPHARMA, INC.                                                                                                      | 14.5%      |                                                                                                                                                                                                                                                                                                                                                                                     | 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.                                       | 97.5%                     |                                                 | 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                   |             | $  2,700,000 |
| accessories; impact, tilt monitoring and temperature sensing     |                      | 4,000,002 shares common stock (acquired 11-4-97)     | 4,615,000                                                |             | 13,400,000             |
| devices to detect mishandled shipments; dunnage for              |                      |                                                 | 5,415,000                                                |             | 16,100,000             |
|     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.                             | 30.4%                     |                                                 | 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      |                   | 138,100,000      |
| 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        |                   | 8,446,566             |
| Dallas, Texas                                                    |                      |                                                 |                                                     |             |                   |
| Regional bank holding company with banking operations            |                      |                                                 |                                                     |             |                   |
| in six Texas cities.                                             |                      |                                                 |                                                     |             |                   |

| 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                                              |   | 6,354,265 |
|     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  |            | 49,400,000                                                                             |
| 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. – 2.6% limited partnership      |                                                              |       |            |
|                                                                                                                                                                               |                            | interest (acquired 8-4-08 thru 6-18-10)                                       | 975,000                                                           |       | 975,000         |
|                                                                                                                                                                               |                            | – BankCap Partners Fund I, L.P. – 6.0% limited partnership        |                                                              |       |            |
|                                                                                                                                                                               |                            | interest (acquired 7-14-06  thru 6-18-09)                           | 5,583,470                                                         |       | 5,188,421       |
|                                                                                                                                                                               |     100.0%  |                                                                          | – CapitalSouth Partners Fund III, L.P. – 2.8% limited |       |            |                                                                                   |
|                                                                                                                                                                               |                            | partnership interest (acquired 1-22-08 and 2-12-09)                           | 831,256                                                           |       | 831,256         |
|                                                                                                                                                                               |                            | – ¥CapStar Holdings Corporation, – 500 shares common         |                                                              |       |            |
|                                                                                                                                                                               |                            |     stock (acquired 6-10-10)                                   | 3,703,619                                                         |       |  3,703,619 |
|                                                                                                                                                                               |                            | – Diamond State Ventures, L.P. – 1.9% limited partnership         |                                                              |       |            |
|                                                                                                                                                                               |                            | interest (acquired 10-12-99 thru 8-26-05)                                     | 76,000                                                            |       | 187,112         |
|                                                                                                                                                                               |                            | – ¥Discovery Alliance, LLC – 90.0% limited liability company |                                                              |       |            |
|                                                                                                                                                                               |                            | (acquired 9-12-08 thru 5-14-10)                                               | 900,000                                                           |       | 900,000         |
|                                                                                                                                                                               |                            | – 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                                                           |       | 413,725         |
|                                                                                                                                                                               |     100.0%  |                                                                          | – ¥Humac Company – 1,041,000 shares common stock |       |            |                                                                                   |
|                                                                                                                                                                               |                            | (acquired 1-31-75 and 12-31-75)                                               | –                                                           |       | 162,000         |
|                                                                                                                                                                               |                            | – 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. – 1.7% limited partnership      |                                                              |       |            |
|                                                                                                                                                                               |                            | interest (acquired 4-20-01 thru 1-24-05)                                      | 1,064,042                                                         |       | 703,008         |
| TOTAL INVESTMENTS                                                                                                                                                                  |                            |                                                                          | $103,115,635                                                      |       | $438,653,027    |
|                                                                                                                                                                               |                            |                                                                          |                                                              |       |            |
| †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) |                            |                                                                           |                                                              |

----

----

----

----

----

----

----

| ·   | 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 September 30, 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 9/30/2010 Using |   |                                         |
|-----------------------|--------|--------|--------------------|--------|--------------------------------------------------------------------|-------------------------------------------|--------|----------------------------------------------|
|                  |   | Total  |               |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |                                      |   | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
| Debt                  |   |   | $   18.4 |   |                                                               |                                      |   | $       -      |   |   |   |   | $     - |   |   |   |   | $   18.4 |   |   |
| Partnership Interests |   |   | 9.2                |   |                                                               |                                      |   | -                                            |   |   |   |   | - |   |   |   |   | 9.2 |   |   |
| Warrants              |   |   | 4.1                |   |                                                               |                                      |   | -                                            |   |   |   |   | - |   |   |   |   | 4.1 |   |   |
| Preferred Equity      |   |   | 40.3               |   |                                                               |                                      |   | -                                            |   |   |   |   | - |   |   |   |   | 40.3 |   |   |
| Common Equity         |   |   | 366.7              |   |                                                               |                                      |   | 18.6                                         |   |   |   |   | - |   |   |   |   | 348.1 |   |   |
| Total Investments     |   |   | $ 438.7            |   |                                                               |                                      |   | $ 18.6                                       |   |   |   |   | $     - |   |   |   |   | $ 420.1 |   |   |

|                  |   |   |               |   |                                                          | 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 9/30/2010 |              |
|----------------------|----------------------|--------------------|--------|--------------------------------------------|--------|--------|---------------------------------------------------|--------|--------|-----------------|--------|-----------------------------|--------------|--------|--------|---------------------------|-------------------|
| Debt                 |                 | $   14.6 |   |                                       |   |   | $    0.4                           |   |   |            |   | $     - |         |   |   |                      | $   3.4 |   |   |   | $ | $       - |   |   |   |   | $   18.4 |   |   |
| Partnership Interest |                 | 8.6                |   |                                       |   |   | -                                                 |   |   |            |   | -                           |         |   |   |                      | 0.6               |   |   |   |   | - |   |   |   |   | 9.2 |   |   |
| Warrants             |                 | -                  |   |                                       |   |   | 4.1                                               |   |   |            |   | -                           |         |   |   |                      | -                 |   |   |   |   | - |   |   |   |   | 4.1 |   |   |
| Preferred Equity     |                 | 35.3               |   |                                       |   |   | 5.0                                               |   |   |            |   | -                           |         |   |   |                      | -                 |   |   |   |   | - |   |   |   |   | 40.3 |   |   |
| Common Equity        |                 | 398.4              |   |                                       |   |   | -49.5                                             |   |   |            |   | -                           |         |   |   |                      | 3.7               |   |   |   |   | -4.5 |   |   |   |   | 348.1 |   |   |
| Total Investments    |                 | $ 456.9            |   |                                       |   |   | $ -39.9                                           |   |   |            |   | $     - |         |   |   |                      | $   7.6 |   |   |   | $ | $  -4.5 |   |   |   |   | $ 420.1 |   |   |

----

|                 |   | Fair Value 6/30/2010 |               |   | Net Unrealized Appreciation (Depreciation) |   |   | Net Changes from Unrealized to Realized  |   |   | New Investments |   |                        | Divestitures |   |   | Fair Value 9/30/2010 |        |
|----------------------|--------|----------------------|--------------------|--------|--------------------------------------------|--------|--------|-----------------------------------------------|--------|--------|----------------------|--------|-----------------------------|--------------|--------|--------|----------------------|-------------|
| Debt                 |   |                 | $   16.9 |   |                                       |   |   | $        - |   |   |                 |   | $     - |         |   |   |                 | $  1.5 |   |   |   |   | $     - |   |   |   |   | $   18.4 |   |   |
| Partnership Interest |   |                 | 9.2                |   |                                       |   |   | -                                             |   |   |                 |   | -                           |         |   |   |                 | -           |   |   |   |   | - |   |   |   |   | 9.2 |   |   |
| Warrants             |   |                 | -                  |   |                                       |   |   | 4.1                                           |   |   |                 |   | -                           |         |   |   |                 | -           |   |   |   |   | - |   |   |   |   | 4.1 |   |   |
| Preferred Equity     |   |                 | 34.1               |   |                                       |   |   | 6.2                                           |   |   |                 |   | -                           |         |   |   |                 | -           |   |   |   |   | - |   |   |   |   | 40.3 |   |   |
| Common Equity        |   |                 | 336.7              |   |                                       |   |   | 11.4                                          |   |   |                 |   | -                           |         |   |   |                 | -           |   |   |   |   | - |   |   |   |   | 348.1 |   |   |
| Total Investments    |   |                 | $ 396.9            |   |                                       |   |   | $  21.7                                  |   |   |                 |   | $     - |         |   |   |                 | $  1.5 |   |   |   |   | $     - |   |   |   |   | $ 420.1 |   |   |

----

----

|             |   |                        |    |   | 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  |   |             |   | 28.58 |   |
| Exercised                              |   |      | – |   |             |   | – |   |
| Canceled                               |   |      | – |   |             |   | – |   |
| Balance at September 30, 2010          |   |      | 73,750  |   |             |   | $   83.23 |   |
|                                   |   |      |    |   |             |   |   |   |
| 1999 Plan                              |   |      |    |   |             |   |   |   |
| Balance at March 31, 2010              |   |      | 107,900 |   |             |   | 114.78 |   |
|    Granted              |   |      | – |   |             |   | – |   |
| Exercised                              |   |      | -782    |   |             |   | 65.70 |   |
| Canceled                               |   |      | – |   |             |   | – |   |
| Balance at September 30, 2010          |   |      | 107,118 |   |             |   | $ 114.29 |   |
| Combined Balance at September 30, 2010 |   |      | 180,868 |   |             |   | $ 102.53 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Three Months Ended |                                            |   | Six Months Ended |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|-------------------------------------------------|--------|------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | September 30       |                                            |   | September 30     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 2010               |                                            |   | 2009             |   |   | 2010 |   |   | 2009 |   |
| Investment income                                                                                                                                                                                                                                                                                                                                                                                                                       |   |               | $        .31 |   |             |   | $         .28 |   |   |   | $       1.10 |   |   |   | $         .60 |   |
| Operating expenses                                                                                                                                                                                                                                                                                                                                                                                                                      |   |               | (.28                                            | )      |             |   | (.17 | ) |   |   | (.54 | ) |   |   | (.37 | ) |
| Interest expense                                                                                                                                                                                                                                                                                                                                                                                                                        |   |               | –                                         |   |             |   | – |   |   |   | – |   |   |   | – |   |
| Income taxes                                                                                                                                                                                                                                                                                                              |   |               | (.01                                            | )      |             |   | (.01 | ) |   |   | (.01 | ) |   |   | (.01 | ) |
| Net investment income                                                                                                                                                                                            |   |               | .02                                             |   |             |   | .10 |   |   |   | .55 |   |   |   | .22 |   |
| Distributions from undistributed                                                                                                                                                                                                                                                                                                                                                                                                        |   |               |                                            |   |             |   |   |   |   |   |   |   |   |   |   |   |
|   net investment income                                                                                                                                                                                |   |               | –                                         |   |             |   | – |   |   |   | (.40 | ) |   |   | (.40 | ) |
| Net realized gain (loss) on investments                                                                 |   |               | .14                                             |   |             |   | .49 |   |   |   | 19.92 |   |   |   | .49 |   |
| Net increase (decrease) in unrealized                                                                                                                                                                                                                                                                                                                                                                                                   |   |               |                                            |   |             |   |   |   |   |   |   |   |   |   |   |   |
|   appreciation of investments                                                                                                                   |   |               | 6.24                                            |   |             |   | 7.22 |   |   |   | (11.32 | ) |   |   | 9.96 |   |
| Change in pension plan funded status                                                                                                                                                                                                                                                                                                                                                                                                    |   |               | –                                         |   |             |   | – |   |   |   | – |   |   |   | (.07 | ) |
| Exercise of employee stock options                                                                                                                                                                                                                                                                                                                                                                                                      |   |               | (.01                                            | )      |             |   | – |   |   |   | (.01 | ) |   |   | – |   |
| Stock option expense                                                                                                                                                                              |   |               | .07                                             |   |             |   | .04 |   |   |   | .11 |   |   |   | .08 |   |
| Increase (decrease) in net asset value                                                                                                                                                                                                                                                                                                                                                                                                  |   |               | 6.46                                            |   |             |   | 7.85 |   |   |   | 8.85 |   |   |   | 10.28 |   |
| Net asset value:                                                                                                                                                                                                                                                                                                                                                                                                                        |   |               |                                            |   |             |   |   |   |   |   |   |   |   |   |   |   |
|  Beginning of period                                                                                                                                                                                        |   |               | 132.53                                          |   |             |   | 113.41 |   |   |   | 130.14 |   |   |   | 110.98 |   |
|  End of period                                                                                                                                                                                                                                                                                                                                                                                                                     |   |               | $  138.99                                  |   |             |   | $   121.26 |   |   |   | $   138.99 |   |   | $ | $   121.26 |   |
| Shares outstanding at end of period                                                                                                                                                                                                                                                                                                                                                                                                     |   |               |                                            |   |             |   |   |   |   |   |   |   |   |   |   |   |
|      (000s omitted)                                                                                                                                                                                                                                                                                                                                                                                            |   |               | 3,742                                           |   |             |   | 3,742 |   |   |   | 3,742 |   |   |   | 3,742 |   |

----

|                 |   | September 30,2010 |                                                           |   | March 31,2010 |   |                                                           | September 30, 2009 |   |
|----------------------|--------|-------------------|----------------------------------------------------------------|--------|---------------|--------|----------------------------------------------------------------|-------------------------|--------|
| Net assets           |   |              | $ 520,154,213                                                  |   |          |   | $ 486,925,586                                                  |                    |   |   | $ 453,700,894 |   |
| Shares outstanding   |   |              | 3,742,420                                                      |   |          |   | 3,741,638                                                      |                    |   |   | 3,741,638 |   |
| Net assets per share |   |              | $          138.99 |   |          |   | $          130.14 |                    |   |   | $          121.26 |   |

----

|                               |   | Six Months EndedSeptember 30, |                        |
|------------------------------------|--------|-------------------------------|-----------------------------|
|                               |   | 2010                          |                        |   | 2009 |   |
| Alamo Group Inc.                   |   |                          | $    339,636 |   |   |   | $    339,636 |   |
| Balco, Inc.                        |   |                          | 1,817,503                   |   |   |   | - |   |
| CapitalSouth Partners Fund III     |   |                          | -                           |   |   |   | 20,528 |   |
| Dennis Tool Company                |   |                          | -                           |   |   |   | 33,333 |   |
| Encore Wire Corporation            |   |                          | 163,470                     |   |   |   | 163,470 |   |
| The RectorSeal Corporation         |   |                          | 480,000                     |   |   |   | 480,000 |   |
| TCI Holdings, Inc                  |   |                          | 40,635                      |   |   |   | 40,635 |   |
| The Whitmore Manufacturing Company |   |                          | 120,000                     |   |   |   | 120,000 |   |
|                               |   |                          | $ 2,961,244                 |   |   |   | $ 1,197,602 |   |

|                       |   | Three Months EndedSeptember 30, |        |   | Six Months EndedSeptember 30, |   |
|----------------------------|--------|---------------------------------|-------------|--------|-------------------------------|--------|
|                       |   | 2010                            |        |   | 2009                          |   |   | 2010 |   |   | 2009 |   |
| Alamo Group Inc.           |   |                            | $ 1,415,150 |   |                          |   | $ 11,321,200 |   |   |   | $  4,953,025 |   |   |   | $ 11,321,200 |   |
| All Components, Inc.       |   |                            | 8,713,587   |   |                          |   | 3,612,999 |   |   |   | 8,258,662 |   |   |   | 6,612,999 |   |
| CMI Holding Company, Inc.  |   |                            | –     |   |                          |   |   |   |   |   | (4,132,758 | ) |   |   |   |   |
| Encore Wire Corporation    |   |                            | 6,130,125   |   |                          |   | 8,173,500 |   |   |   | – |   |   |   | 8,173,500 |   |
| Heelys                     |   |                            | –     |   |                          |   | 1,490,769 |   |   |   | 279,250 |   |   |   | 3,820,097 |   |
| Lifemark Group             |   |                            | –     |   |                          |   | – |   |   |   | (66,489,600 | ) |   |   | – |   |
| Media Recovery, Inc.       |   |                            | 1,500,000   |   |                          |   | (3,000,000 | ) |   |   | 2,700,000 |   |   |   | (3,000,000 | ) |
| Palm Harbor Homes, Inc.    |   |                            | (6,833,953  | )      |                          |   | – |   |   |   | (6,833,953 | ) |   |   | – |   |
| The RectorSeal Corporation |   |                            | 8,100,000   |   |                          |   | (2,700,000 | ) |   |   | 17,900,000 |   |   |   | (2,700,000 | ) |

----

----

----

----

----

|                                                                                                                  |   | CAPITAL SOUTHWEST CORPORATION                       |
|-----------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|
|                                                                                                                  |   |                                                |
| Date:             November 4, 2010    | By:    | /s/ Gary L. Martin                                  |
|                                                                                                                  |   | Gary L. Martin, Chairman of the Board and President |
|                                                                                                                  |   |                                                |
|                                                                                                                  |   |                                                |

|                                                                                                            |   |                                     |   |
|-----------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|--------|
| Date:           November 4, 2010     | By:    | /s/ Tracy L. Morris                 |   |
|                                                                                                            |   | Tracy L. Morris, Chief Financial Officer |   |
|                                                                                                            |   |                                     |   |
|                                                                                                            |   |                                     |   |

----