Edgar Filing: BLACKROCK ENHANCED CAPITAL & INCOME FUND, INC.

BLACKROCK ENHANCED CAPITAL & INCOME FUND, INC.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-21506

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

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

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

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

Date of fiscal year end: 12/31/2015

Date of reporting period: 03/31/2015

Item 1 – Schedule of Investments


Schedule of Investments March 31, 2015 (Unaudited)			BlackRock Enhanced Capital and Income Fund, Inc. (CII)
			(Percentages shown are based on Net Assets)


Common Stocks	Shares		Value
Aerospace & Defense — 1.2%
Honeywell International, Inc. (a)		10,200	$	1,063,962
Raytheon Co. (a)		66,761		7,293,639

				8,357,601
Air Freight & Logistics — 1.1%
FedEx Corp. (a)		47,751		7,900,403
Airlines — 1.7%
Southwest Airlines Co.		110,045		4,874,994
United Continental Holdings, Inc. (a)(b)		110,455		7,428,099

				12,303,093
Auto Components — 0.5%
Lear Corp. (a)		34,800		3,856,536
Banks — 11.7%
Bank of America Corp. (a)		1,110,488		17,090,410
Citigroup, Inc. (a)(c)		299,387		15,424,418
JPMorgan Chase & Co. (a)		329,165		19,940,816
SunTrust Banks, Inc. (a)		225,820		9,278,944
U.S. Bancorp. (a)		397,915		17,376,948
Wells Fargo & Co. (a)		62,026		3,374,214

				82,485,750
Beverages — 2.7%
Dr Pepper Snapple Group, Inc. (a)		145,155		11,391,764
Molson Coors Brewing Co., Class B		101,670		7,569,331

				18,961,095
Biotechnology — 1.9%
Amgen, Inc. (a)		82,780		13,232,383
Capital Markets — 1.2%
Atlas Mara Co-Nvest Ltd. (b)		75,047		525,329
The Goldman Sachs Group, Inc. (a)		40,323		7,579,514

				8,104,843
Chemicals — 0.3%
The Dow Chemical Co. (a)		48,902		2,346,318
Communications Equipment — 3.2%
Brocade Communications Systems, Inc. (a)		497,701		5,905,222
Cisco Systems, Inc. (a)		416,222		11,456,511
QUALCOMM, Inc. (a)		70,500		4,888,470

				22,250,203
Consumer Finance — 2.4%
Discover Financial Services (a)(c)		203,323		11,457,251
SLM Corp.		619,946		5,753,099

				17,210,350
Containers & Packaging — 0.7%
Packaging Corp. of America		64,543		5,046,617
Electronic Equipment, Instruments & Components — 0.5%
Zebra Technologies Corp., Class A (a)(b)		39,321		3,567,005
Energy Equipment & Services — 2.3%
Atwood Oceanics, Inc. (a)		73,135		2,055,825


Common Stocks	Shares		Value
Energy Equipment & Services (concluded)
Halliburton Co. (a)		30,167	$	1,323,728
Schlumberger Ltd. (a)		130,999		10,930,557
Weatherford International PLC (a)(b)		175,445		2,157,974

				16,468,084
Food & Staples Retailing — 4.1%
CVS Health Corp. (a)(c)		219,787		22,684,216
The Kroger Co. (a)		10,144		777,639
Wal-Mart Stores, Inc. (a)		64,434		5,299,697

				28,761,552
Food Products — 0.4%
Pilgrim’s Pride Corp. (a)(d)		46,778		1,056,715
Tyson Foods, Inc., Class A (a)		50,226		1,923,656

				2,980,371
Health Care Equipment & Supplies — 0.1%
Medtronic PLC (a)		9,440		736,226
Health Care Providers & Services — 14.4%
Aetna, Inc. (a)(c)		147,208		15,682,068
Centene Corp. (a)(b)		176,400		12,469,716
Cigna Corp. (a)		141,300		18,289,872
Express Scripts Holding Co. (a)(b)		78,700		6,828,799
Humana, Inc. (a)		5,318		946,710
Laboratory Corp. of America Holdings (a)(b)		66,089		8,333,162
McKesson Corp. (a)		42,111		9,525,508
UnitedHealth Group, Inc. (a)		172,920		20,454,707
Universal Health Services, Inc., Class B (a)		73,090		8,603,424

				101,133,966
Hotels, Restaurants & Leisure — 1.7%
Carnival Corp. (a)		170,068		8,136,053
Las Vegas Sands Corp. (a)		63,060		3,470,822

				11,606,875
Industrial Conglomerates — 2.5%
3M Co. (a)		105,549		17,410,308
Insurance — 4.7%
The Allstate Corp.		112,630		8,015,877
American International Group, Inc. (a)		289,695		15,872,389
The Travelers Cos., Inc. (a)		81,748		8,839,411

				32,727,677
Internet & Catalog Retail — 0.5%
The Priceline Group, Inc. (a)(b)		2,784		3,240,994
Internet Software & Services — 3.9%
Facebook, Inc., Class A (a)(b)		118,811		9,768,046
Google, Inc., Class A (a)(b)		15,622		8,665,523
Google, Inc., Class C (a)(b)		15,996		8,765,808

				27,199,377
IT Services — 3.1%
Alliance Data Systems Corp. (a)(b)		4,628		1,371,045
Amdocs Ltd.		91,591		4,982,550


Portfolio Abbreviations
ADR	American Depositary Receipt	JPY	Japanese Yen	USD	U.S. Dollar
EUR	Euro	KRW	Korean Won


				MARCH 31, 2015		1


Schedule of Investments (continued)			BlackRock Enhanced Capital and Income Fund, Inc. (CII)
			(Percentages shown are based on Net Assets)


Common Stocks	Shares		Value
IT Services (concluded)
Cognizant Technology Solutions Corp., Class A (a)(b)		54,534	$	3,402,376
DST Systems, Inc. (a)		13,536		1,498,571
MasterCard, Inc., Class A (a)		40,453		3,494,735
ServiceSource International, Inc. (b)		918,920		2,848,652
Total System Services, Inc.		103,151		3,935,211

				21,533,140
Machinery — 0.7%
Parker-Hannifin Corp. (a)		43,525		5,169,899
Media — 3.1%
Comcast Corp., Class A (a)		335,805		18,962,908
Omnicom Group, Inc. (a)		38,563		3,007,143

				21,970,051
Multiline Retail — 0.7%
Macy’s, Inc.		76,358		4,956,398
Multi-Utilities — 0.4%
Public Service Enterprise Group, Inc.		60,411		2,532,429
Oil, Gas & Consumable Fuels — 4.3%
BP PLC — ADR (a)(c)		200,430		7,838,817
Exxon Mobil Corp. (a)		26,826		2,280,210
Hess Corp. (a)		68,409		4,642,919
Marathon Petroleum Corp. (a)		32,522		3,329,928
PBF Energy, Inc., Class A		52,486		1,780,325
Suncor Energy, Inc. (a)		299,745		8,767,541
Tesoro Corp. (a)		21,244		1,939,365

				30,579,105
Paper & Forest Products — 0.7%
Domtar Corp.		98,685		4,561,221
Pharmaceuticals — 4.4%
Astrazeneca PLC — ADR (a)		103,068		7,052,943
Johnson & Johnson (a)		23,783		2,392,570
Merck & Co., Inc.		4,075		234,231
Pfizer, Inc. (a)		21,481		747,324
Shire PLC — ADR		28,175		6,741,996
Teva Pharmaceutical Industries Ltd. — ADR (a)		226,610		14,117,803

				31,286,867
Road & Rail — 0.9%
Norfolk Southern Corp. (a)		43,328		4,459,318
Union Pacific Corp. (a)		17,952		1,944,381

				6,403,699
Semiconductors & Semiconductor Equipment — 4.1%
Intel Corp. (a)		433,755		13,563,519
Micron Technology, Inc. (a)(b)		457,900		12,422,827
NVIDIA Corp. (a)		141,500		2,960,887

				28,947,233
Software — 2.1%
Microsoft Corp. (a)		223,005		9,066,268
Oracle Corp. (a)		136,525		5,891,054

				14,957,322


Common Stocks	Shares		Value
Specialty Retail — 5.0%
The Home Depot, Inc. (a)		97,749	$	11,105,264
Lowe’s Cos., Inc. (a)		248,449		18,482,121
Ross Stores, Inc.		55,295		5,825,881

				35,413,266
Technology Hardware, Storage & Peripherals — 5.4%
Apple, Inc. (a)		80,127		9,970,203
EMC Corp. (a)		359,272		9,182,992
Hewlett-Packard Co. (a)		222,589		6,935,873
Western Digital Corp. (a)		132,710		12,077,937

				38,167,005
Textiles, Apparel & Luxury Goods — 0.6%
Deckers Outdoor Corp. (a)(b)		23,274		1,695,976
Fossil Group, Inc. (a)(b)		31,095		2,563,783

				4,259,759

Investment Companies
Utilities Select Sector SPDR Fund		24,000		1,066,320
Total Investment Companies — 0.2%				1,066,320

Warrants (e)
Capital Markets — 0.0%
Atlas Mara Co-Nvest Ltd., Expires 12/17/17		180,000		90,000
Total Long-Term Investments (Cost — $683,507,650) — 99.4%				699,781,341

Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.06% (f)(g)		5,833,475		5,833,475
	Beneficial Interest (000)
BlackRock Liquidity Series, LLC Money Market Series, 0.22% (f)(g)(h)	$	211		211,200
Total Short-Term Securities (Cost — $6,044,675) — 0.9%				6,044,675
Total Investments Before Options Written *(Cost — $689,552,325) — 100.3%**				705,826,016


Options Written
(Premiums Received — $6,332,521) — (0.7)%				(4,814,155	)
Total Investments Net of Options Written — 99.6%				701,011,861
Other Assets Less Liabilities — 0.4%				3,026,582

Net Assets — 100.0%			$	704,038,443


2				MARCH 31, 2015


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

Notes to Schedule of Investments

*	As of March 31, 2015, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:


Tax cost	$	711,298,209

Gross unrealized appreciation	$	34,375,134
Gross unrealized depreciation		(39,847,327	)

Net unrealized depreciation	$	(5,472,193	)

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

(b)	Non-income producing security.

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

(d)	Security, or a portion of security, is on loan.

(e)	Warrants entitle the Trust to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date of the warrants, if any.

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

(g)	During the period ended March 31, 2015, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


Affiliate	Shares/ Beneficial Interest Held at December 31, 2014		Net Activity			Shares/ Beneficial Interest Held at March 31, 2015		Income
BlackRock Liquidity Funds, TempFund, Institutional Class		1,879,452		3,954,023			5,833,475	$	1,624
BlackRock Liquidity Series, LLC Money Market Series	$	673,750	$	(462,550	)	$	211,200	$	6,397

(h)	Security was purchased with the cash collateral from loaned securities. The Trust may withdraw up to 25% of its investment daily, although the manager of the BlackRock Liquidity Series, LLC Money Market Series, in its sole discretion, may permit an investor to withdraw more than 25% on any one day.

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

As of March 31, 2015, forward foreign currency exchange contracts outstanding were as follows:


Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation/ Depreciation
EUR	3,805,000	USD	4,257,928	BNP Paribas S.A.		4/22/15	$	(165,360	)
EUR	14,567,104	USD	16,312,130	State Street Bank and Trust Co.		4/22/15		(644,095	)
JPY	848,852,000	USD	7,067,371	BNP Paribas S.A.		4/22/15		12,720
JPY	384,253,022	USD	3,183,860	BNP Paribas S.A.		4/22/15		21,111
JPY	2,088,462,000	USD	17,392,197	Citigroup Global Markets, Inc.		4/22/15		27,211
JPY	561,351,000	USD	4,692,432	Citigroup Global Markets, Inc.		4/22/15		(10,326	)
JPY	496,836,000	USD	4,154,217	Standard Chartered Bank		4/22/15		(10,215	)
KRW	11,602,279,280	USD	10,525,519	Standard Chartered Bank		4/22/15		(75,775	)
KRW	10,500,000,000	USD	9,550,664	Standard Chartered Bank		4/22/15		(93,702	)
USD	701,738	EUR	637,757	Citigroup Global Markets, Inc.		4/22/15		15,781
USD	16,743,065	EUR	14,498,371	HSBC Securities (USA), Inc.		4/22/15		1,148,958
USD	3,666,173	EUR	3,235,976	The Bank of New York Mellon		4/22/15		185,633
USD	37,316,805	JPY	4,379,754,022	HSBC Securities (USA), Inc.		4/22/15		786,228
USD	16,374,574	KRW	17,716,470,263	Standard Chartered Bank		4/22/15		418,005
USD	4,030,273	KRW	4,385,809,017	UBS Securities LLC		4/22/15		80,137
Total							$	1,696,311

As of March 31, 2015, exchange-traded options written were as follows:

Description

Put/
Call

Strike

Price

Expiration
Date

Contracts

Market
Value

Apple, Inc.

Call

USD

135.00

4/02/15

133

(133

)

Citigroup, Inc.

Call

USD

53.00

4/02/15

808

(1,212

)


				MARCH 31, 2015		3


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

As of March 31, 2015, exchange-traded options written were as follows: (continued)


Description	Put/ Call		Strike Price			Expiration Date		Contracts		Market Value
Google, Inc., Class A		Call		USD	565.00		4/02/15		19	$	(855	)
Johnson & Johnson		Call		USD	104.00		4/02/15		118		(118	)
Micron Technology, Inc.		Call		USD	31.50		4/02/15		800		(2,000	)
Pfizer, Inc.		Call		USD	35.00		4/02/15		133		(1,264	)
Tesoro Corp.		Call		USD	94.50		4/02/15		55		(1,265	)
U.S. Bancorp.		Call		USD	45.50		4/02/15		1,000		(6,000	)
Weatherford International PLC		Call		USD	13.50		4/02/15		440		(440	)
Wells Fargo & Co.		Call		USD	56.00		4/02/15		310		(1,550	)
Western Digital Corp.		Call		USD	111.00		4/02/15		245		(735	)
American International Group, Inc.		Call		USD	56.50		4/06/15		975		(5,850	)
JPMorgan Chase & Co.		Call		USD	60.50		4/06/15		150		(3,450	)
Teva Pharmaceutical Industries Ltd. — ADR		Call		USD	57.50		4/06/15		575		(273,125	)
3M Co.		Call		USD	167.50		4/10/15		65		(4,225	)
Aetna, Inc.		Call		USD	100.00		4/10/15		32		(23,520	)
Amgen, Inc.		Call		USD	162.50		4/10/15		414		(64,998	)
Apple, Inc.		Call		USD	127.00		4/10/15		130		(11,570	)
Astrazeneca PLC — ADR		Call		USD	67.00		4/10/15		515		(96,563	)
Bank of America Corp.		Call		USD	16.00		4/10/15		2,780		(8,340	)
BP PLC — ADR		Call		USD	42.00		4/10/15		1,003		(2,508	)
Brocade Communications Systems, Inc.		Call		USD	12.75		4/10/15		1,395		(2,415	)
Cisco Systems, Inc.		Call		USD	31.00		4/10/15		1,042		(2,084	)
Cognizant Technology Solutions Corp., Class A		Call		USD	63.00		4/10/15		90		(5,175	)
CVS Health Corp.		Call		USD	103.00		4/10/15		1,100		(132,000	)
Deckers Outdoor Corp.		Call		USD	75.00		4/10/15		115		(5,462	)
Discover Financial Services		Call		USD	59.50		4/10/15		113		(1,695	)
Discover Financial Services		Call		USD	60.50		4/10/15		112		(1,680	)
Discover Financial Services		Call		USD	61.50		4/10/15		219		(3,285	)
The Dow Chemical Co.		Call		USD	50.00		4/10/15		280		(2,100	)
DST Systems, Inc.		Call		USD	107.51		4/10/15		66		(22,625	)
EMC Corp.		Call		USD	29.00		4/10/15		899		(4,495	)
Facebook, Inc., Class A		Call		USD	81.50		4/10/15		326		(51,508	)
FedEx Corp.		Call		USD	177.50		4/10/15		238		(2,142	)
Fossil Group, Inc.		Call		USD	87.00		4/10/15		155		(2,325	)
Google, Inc., Class A		Call		USD	585.00		4/10/15		10		(275	)
Google, Inc., Class C		Call		USD	562.50		4/10/15		29		(5,220	)
Halliburton Co.		Call		USD	43.50		4/10/15		180		(17,100	)
Hewlett-Packard Co.		Call		USD	35.00		4/10/15		420		(420	)
Intel Corp.		Call		USD	35.00		4/10/15		724		(2,896	)
Medtronic PLC		Call		USD	79.00		4/10/15		42		(1,869	)
Micron Technology, Inc.		Call		USD	29.50		4/10/15		160		(4,400	)
Micron Technology, Inc.		Call		USD	31.50		4/10/15		800		(4,800	)
Microsoft Corp.		Call		USD	45.00		4/10/15		370		(740	)
NVIDIA Corp.		Call		USD	23.50		4/10/15		120		(540	)
QUALCOMM, Inc.		Call		USD	72.50		4/10/15		73		(548	)
Tesoro Corp.		Call		USD	96.00		4/10/15		55		(2,942	)
U.S. Bancorp.		Call		USD	45.00		4/10/15		188		(940	)
U.S. Bancorp.		Call		USD	45.50		4/10/15		250		(1,750	)
Union Pacific Corp.		Call		USD	121.00		4/10/15		89		(1,157	)
United Continental Holdings, Inc.		Call		USD	69.50		4/10/15		138		(10,902	)
United Continental Holdings, Inc.		Call		USD	70.50		4/10/15		137		(7,398	)
Western Digital Corp.		Call		USD	103.00		4/10/15		315		(2,992	)
3M Co.		Call		USD	173.25		4/17/15		460		(6,776	)
Aetna, Inc.		Call		USD	105.00		4/17/15		60		(16,110	)
Alliance Data Systems Corp.		Call		USD	290.00		4/17/15		23		(25,875	)
Apple, Inc.		Call		USD	127.00		4/17/15		40		(6,060	)
Atwood Oceanics, Inc.		Call		USD	30.00		4/17/15		285		(13,538	)
Bank of America Corp.		Call		USD	16.00		4/17/15		2,780		(23,630	)
Brocade Communications Systems, Inc.		Call		USD	13.00		4/17/15		1,395		(7,673	)
Carnival Corp.		Call		USD	45.00		4/17/15		375		(113,438	)
Carnival Corp.		Call		USD	46.00		4/17/15		333		(71,595	)
Centene Corp.		Call		USD	62.50		4/17/15		614		(503,480	)
Centene Corp.		Call		USD	65.00		4/17/15		285		(163,875	)


4				MARCH 31, 2015


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


As of March 31, 2015, exchange-traded options written were as follows: (continued)
Description	Put/ Call		Strike Price			Expiration Date		Contracts		Market Value
Cigna Corp.		Call		USD	125.00		4/17/15		710	$	(415,350	)
Citigroup, Inc.		Call		USD	52.50		4/17/15		158		(9,796	)
Citigroup, Inc.		Call		USD	55.00		4/17/15		220		(2,200	)
Cognizant Technology Solutions Corp., Class A		Call		USD	62.50		4/17/15		200		(20,500	)
Comcast Corp., Class A		Call		USD	60.00		4/17/15		840		(9,240	)
Discover Financial Services		Call		USD	60.00		4/17/15		169		(2,535	)
Discover Financial Services		Call		USD	60.75		4/17/15		360		(2,082	)
Dr Pepper Snapple Group, Inc.		Call		USD	80.00		4/17/15		726		(41,745	)
Facebook, Inc., Class A		Call		USD	82.50		4/17/15		268		(40,870	)
The Goldman Sachs Group, Inc.		Call		USD	195.00		4/17/15		100		(8,750	)
Google, Inc., Class A		Call		USD	570.00		4/17/15		49		(31,360	)
Google, Inc., Class C		Call		USD	545.00		4/17/15		41		(58,835	)
Google, Inc., Class C		Call		USD	560.00		4/17/15		10		(7,400	)
Halliburton Co.		Call		USD	44.00		4/17/15		120		(10,740	)
Hess Corp.		Call		USD	75.00		4/17/15		200		(1,300	)
Hewlett-Packard Co.		Call		USD	35.00		4/17/15		420		(840	)
The Home Depot, Inc.		Call		USD	120.00		4/17/15		230		(4,140	)
Humana, Inc.		Call		USD	170.00		4/17/15		40		(41,600	)
Intel Corp.		Call		USD	33.00		4/17/15		543		(17,919	)
JPMorgan Chase & Co.		Call		USD	62.50		4/17/15		640		(17,600	)
The Kroger Co.		Call		USD	77.50		4/17/15		51		(4,335	)
Laboratory Corp. of America Holdings		Call		USD	125.00		4/17/15		340		(93,500	)
Las Vegas Sands Corp.		Call		USD	57.50		4/17/15		160		(9,040	)
Lear Corp.		Call		USD	115.00		4/17/15		50		(2,875	)
Lowe’s Cos., Inc.		Call		USD	75.00		4/17/15		1,350		(134,325	)
Marathon Petroleum Corp.		Call		USD	110.00		4/17/15		200		(8,000	)
MasterCard, Inc., Class A		Call		USD	90.00		4/17/15		152		(4,484	)
McKesson Corp.		Call		USD	230.00		4/17/15		105		(19,688	)
Microsoft Corp.		Call		USD	45.00		4/17/15		375		(563	)
Norfolk Southern Corp.		Call		USD	110.00		4/17/15		170		(1,274	)
NVIDIA Corp.		Call		USD	24.00		4/17/15		135		(675	)
Omnicom Group, Inc.		Call		USD	80.00		4/17/15		200		(8,500	)
Oracle Corp.		Call		USD	44.00		4/17/15		265		(6,492	)
Parker-Hannifin Corp.		Call		USD	125.00		4/17/15		110		(2,750	)
Pilgrim’s Pride Corp.		Call		USD	28.00		4/17/15		150		(1,500	)
Pilgrim’s Pride Corp.		Call		USD	29.00		4/17/15		83		(830	)
Raytheon Co.		Call		USD	110.00		4/17/15		170		(23,460	)
Suncor Energy, Inc.		Call		USD	32.00		4/17/15		275		(1,512	)
SunTrust Banks, Inc.		Call		USD	42.00		4/17/15		1,135		(32,348	)
The Travelers Cos., Inc.		Call		USD	110.00		4/17/15		430		(21,500	)
Tyson Foods, Inc., Class A		Call		USD	43.00		4/17/15		125		(1,250	)
United Continental Holdings, Inc.		Call		USD	72.50		4/17/15		350		(18,200	)
Universal Health Services, Inc., Class B		Call		USD	120.00		4/17/15		366		(49,410	)
Utilities Select Sector SPDR Fund		Call		USD	45.00		4/17/15		120		(4,740	)
Western Digital Corp.		Call		USD	105.00		4/17/15		101		(1,262	)
Zebra Technologies Corp., Class A		Call		USD	95.00		4/17/15		196		(9,310	)
Aetna, Inc.		Call		USD	110.00		4/24/15		322		(29,945	)
American International Group, Inc.		Call		USD	56.00		4/24/15		150		(6,300	)
Exxon Mobil Corp.		Call		USD	87.00		4/24/15		68		(4,148	)
Intel Corp.		Call		USD	32.00		4/24/15		200		(14,800	)
Schlumberger Ltd.		Call		USD	86.00		4/24/15		152		(14,440	)
Schlumberger Ltd.		Call		USD	87.00		4/24/15		175		(11,638	)
Suncor Energy, Inc.		Call		USD	30.50		4/24/15		250		(9,875	)
Teva Pharmaceutical Industries Ltd. — ADR		Call		USD	62.00		4/24/15		279		(50,220	)
Wal-Mart Stores, Inc.		Call		USD	85.00		4/24/15		49		(2,328	)
3M Co.		Call		USD	162.50		5/01/15		33		(16,995	)
Aetna, Inc.		Call		USD	111.00		5/01/15		322		(42,182	)
American International Group, Inc.		Call		USD	56.00		5/01/15		325		(18,362	)
Apple, Inc.		Call		USD	133.00		5/01/15		98		(16,366	)
Cisco Systems, Inc.		Call		USD	27.50		5/01/15		250		(15,875	)
Citigroup, Inc.		Call		USD	54.00		5/01/15		311		(12,906	)


				MARCH 31, 2015		5


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

As of March 31, 2015, exchange-traded options written were as follows: (concluded)


Description	Put/ Call		Strike Price			Expiration Date		Contracts		Market Value
Express Scripts Holding Co.		Call		USD	86.50		5/01/15		148	$	(47,212	)
JPMorgan Chase & Co.		Call		USD	62.50		5/01/15		198		(9,801	)
MasterCard, Inc., Class A		Call		USD	90.00		5/01/15		50		(4,975	)
Oracle Corp.		Call		USD	43.50		5/01/15		145		(9,715	)
Schlumberger Ltd.		Call		USD	86.50		5/01/15		175		(17,850	)
Teva Pharmaceutical Industries Ltd. — ADR		Call		USD	62.00		5/01/15		279		(58,311	)
Weatherford International PLC		Call		USD	13.00		5/01/15		440		(15,620	)
The Goldman Sachs Group, Inc.		Call		USD	195.00		5/07/15		100		(20,894	)
Cisco Systems, Inc.		Call		USD	27.50		5/08/15		250		(17,375	)
JPMorgan Chase & Co.		Call		USD	60.00		5/08/15		460		(79,350	)
Microsoft Corp.		Call		USD	43.50		5/08/15		371		(10,388	)
Oracle Corp.		Call		USD	43.50		5/08/15		145		(11,310	)
Wal-Mart Stores, Inc.		Call		USD	84.50		5/08/15		225		(17,775	)
Honeywell International, Inc.		Call		USD	104.00		5/11/15		50		(14,412	)
Carnival Corp.		Call		USD	48.00		5/15/15		150		(21,000	)
Comcast Corp., Class A		Call		USD	60.00		5/15/15		840		(54,600	)
Express Scripts Holding Co.		Call		USD	85.00		5/15/15		98		(41,650	)
Express Scripts Holding Co.		Call		USD	87.50		5/15/15		148		(42,254	)
Exxon Mobil Corp.		Call		USD	87.50		5/15/15		68		(6,324	)
The Home Depot, Inc.		Call		USD	120.00		5/15/15		258		(22,962	)
JPMorgan Chase & Co.		Call		USD	62.50		5/15/15		198		(14,256	)
Las Vegas Sands Corp.		Call		USD	60.00		5/15/15		160		(11,600	)
Lear Corp.		Call		USD	114.25		5/15/15		120		(26,897	)
McKesson Corp.		Call		USD	230.00		5/15/15		105		(51,975	)
NVIDIA Corp.		Call		USD	24.00		5/15/15		300		(5,700	)
Oracle Corp.		Call		USD	44.00		5/15/15		128		(7,936	)
Parker-Hannifin Corp.		Call		USD	125.00		5/15/15		110		(16,775	)
The Priceline Group, Inc.		Call		USD	1,210.00		5/15/15		14		(38,780	)
Raytheon Co.		Call		USD	110.00		5/15/15		170		(44,965	)
Schlumberger Ltd.		Call		USD	87.50		5/15/15		152		(16,720	)
UnitedHealth Group, Inc.		Call		USD	125.00		5/15/15		864		(125,280	)
Wal-Mart Stores, Inc.		Call		USD	85.00		5/15/15		48		(3,551	)
Total										$	(4,128,869	)

As of March 31, 2015, over-the-counter options written were as follows:


Description	Counterparty	Put/ Call		Strike Price			Expiration Date		Contracts		Market Value
Amdocs Ltd.	Deutsche Bank AG		Call		USD	52.65		4/10/15		45,800	$	(96,438	)
Total System Services, Inc.	Morgan Stanley & Co. International PLC		Call		USD	39.02		4/10/15		51,600		(18,118	)
Domtar Corp.	Morgan Stanley & Co. International PLC		Call		USD	46.41		4/15/15		25,000		(26,861	)
Public Service Enterprise Group, Inc.	Deutsche Bank AG		Call		USD	41.87		4/15/15		30,000		(25,682	)
Ross Stores, Inc.	Deutsche Bank AG		Call		USD	107.25		4/15/15		30,000		(26,204	)
SLM Corp.	UBS AG		Call		USD	9.65		4/15/15		156,000		(7,764	)
Domtar Corp.	Morgan Stanley & Co. International PLC		Call		USD	46.87		4/22/15		25,000		(28,295	)
Macy’s, Inc.	Goldman Sachs International		Call		USD	64.93		4/22/15		19,000		(21,958	)
Packaging Corp. of America	Deutsche Bank AG		Call		USD	83.18		4/27/15		16,000		(7,929	)
SLM Corp.	UBS AG		Call		USD	9.74		4/29/15		156,000		(12,767	)
Southwest Airlines Co.	Morgan Stanley & Co. International PLC		Call		USD	45.11		4/29/15		27,000		(26,831	)
Molson Coors Brewing Co., Class B	Citibank N.A.		Call		USD	77.04		4/30/15		25,000		(45,760	)
PBF Energy, Inc., Class A	Morgan Stanley & Co. International PLC		Call		USD	32.80		5/01/15		26,200		(51,227	)
Tyson Foods, Inc., Class A	Morgan Stanley & Co. International PLC		Call		USD	40.60		5/06/15		12,600		(6,222	)
The Allstate Corp.	Morgan Stanley & Co. International PLC		Call		USD	71.26		5/07/15		56,400		(75,885	)
Norfolk Southern Corp.	Deutsche Bank AG		Call		USD	111.25		5/08/15		17,000		(3,517	)
Macy’s, Inc.	Goldman Sachs International		Call		USD	64.93		5/12/15		19,000		(37,413	)
Shire PLC — ADR	Citibank N.A.		Call		USD	255.19		5/12/15		14,000		(50,496	)
Molson Coors Brewing Co., Class B	Citibank N.A.		Call		USD	77.04		5/14/15		25,000		(61,305	)
Southwest Airlines Co.	Morgan Stanley & Co. International PLC		Call		USD	45.11		5/19/15		27,000		(37,726	)
Packaging Corp. of America	Deutsche Bank AG		Call		USD	83.18		5/21/15		16,000		(16,888	)
Total											$	(685,286	)

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. The hierarchy gives the highest priority to unadjusted quoted prices in


6				MARCH 31, 2015


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

active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities. The three levels of the fair value hierarchy are as follows:

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

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

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

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, refer to the Trust’s most recent financial statements as contained in its annual report.

As of March 31, 2015, the following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:


	Level 1		Level 2		Level 3	Total
Assets:
Investments:
Long-Term Investments:
Common Stocks:
Aerospace & Defense	$	8,357,601		—	—	$	8,357,601
Air Freight & Logistics		7,900,403		—	—		7,900,403
Airlines		12,303,093		—	—		12,303,093
Auto Components		3,856,536		—	—		3,856,536
Banks		82,485,750		—	—		82,485,750
Beverages		18,961,095		—	—		18,961,095
Biotechnology		13,232,383		—	—		13,232,383
Capital Markets		8,104,843		—	—		8,104,843
Chemicals		2,346,318		—	—		2,346,318
Communications Equipment		22,250,203		—	—		22,250,203
Consumer Finance		17,210,350		—	—		17,210,350
Containers & Packaging		5,046,617		—	—		5,046,617
Electronic Equipment, Instruments & Components		3,567,005		—	—		3,567,005
Energy Equipment & Services		16,468,084		—	—		16,468,084
Food & Staples Retailing		28,761,552		—	—		28,761,552
Food Products		2,980,371		—	—		2,980,371
Health Care Equipment & Supplies		736,226		—	—		736,226
Health Care Providers & Services		101,133,966		—	—		101,133,966
Hotels, Restaurants & Leisure		11,606,875		—	—		11,606,875
Industrial Conglomerates		17,410,308		—	—		17,410,308
Insurance		32,727,677		—	—		32,727,677
Internet & Catalog Retail		3,240,994		—	—		3,240,994
Internet Software & Services		27,199,377		—	—		27,199,377
IT Services		21,533,140		—	—		21,533,140
Machinery		5,169,899		—	—		5,169,899
Media		21,970,051		—	—		21,970,051
Multiline Retail		4,956,398		—	—		4,956,398
Multi-Utilities		2,532,429		—	—		2,532,429
Oil, Gas & Consumable Fuels		30,579,105		—	—		30,579,105
Paper & Forest Products		4,561,221		—	—		4,561,221
Pharmaceuticals		31,286,867		—	—		31,286,867
Road & Rail		6,403,699		—	—		6,403,699
Semiconductors & Semiconductor Equipment		28,947,233		—	—		28,947,233
Software		14,957,322		—	—		14,957,322
Specialty Retail		35,413,266		—	—		35,413,266
Technology Hardware, Storage & Peripherals		38,167,005		—	—		38,167,005
Textiles, Apparel & Luxury Goods		4,259,759		—	—		4,259,759
Investment Companies		1,066,320		—	—		1,066,320
Warrants		—	$	90,000	—		90,000
Short-Term Securities		5,833,475		211,200	—		6,044,675

Total	$	705,524,816	$	301,200	—	$	705,826,016


				MARCH 31, 2015		7


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


	Level 1				Level 2				Level 3		Total
Derivative Financial Instruments¹
Assets:
Forward foreign currency exchange contracts			—			$	2,695,784			—		$	2,695,784
Liabilities:
Equity contracts		$	(4,032,769	)			(781,386	)		—			(4,814,155	)
Forward foreign currency exchange contracts			—				(999,473	)		—			(999,473	)

Total		$	(4,032,769	)		$	914,925			—		$	(3,117,844	)

¹ Derivative financial instruments are forward foreign currency exchange contracts and options written. Forward foreign currency exchange contracts are valued at the unrealized appreciation/depreciation on the instrument and options written are shown at value.

The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial reporting purposes. As of March 31, 2015, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

	Level 1				Level 2				Level 3		Total
Assets:
Cash pledged as collateral for OTC derivatives		$	100,000				—			—		$	100,000
Liabilities:
Bank overdraft			—			$	(196	)		—			(196	)
Bank overdraft on foreign currency at value			—				(14,031	)		—			(14,031	)
Collateral on securities loaned at value			—				(211,200	)		—			(211,200	)

Total		$	100,000			$	(225,427	)		—		$	(125,427	)

During the period ended March 31, 2015, there were no transfers between levels.


8				MARCH 31, 2015

Item 2 – Controls and Procedures


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

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

Item 3 – Exhibits

Certifications – Attached hereto

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BlackRock Enhanced Capital and Income Fund, Inc.


By:		/s/ John M. Perlowski
		John M. Perlowski
		Chief Executive Officer (principal executive officer) of
		BlackRock Enhanced Capital and Income Fund, Inc.

Date: May 22, 2015

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


By:		/s/ John M. Perlowski
		John M. Perlowski
		Chief Executive Officer (principal executive officer) of
		BlackRock Enhanced Capital and Income Fund, Inc.

Date: May 22, 2015

By:		/s/ Neal J. Andrews
		Neal J. Andrews
		Chief Financial Officer (principal financial officer) of
		BlackRock Enhanced Capital and Income Fund, Inc.

Date: May 22, 2015