UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13G Under the Securities Exchange Act of 1934 Amendment No.: _____ Gladstone Capital Corp. ----------------------- Name of Issuer Common Stock ------------ Title of Class of Securities 376535100 --------- CUSIP Number December 31, 2003 ----------------- (Date of Event Which Requires Filing of this Statement) Check the appropriate box to designate the rule pursuant to which this Schedule is filed: /X/ Rule 13d-1(b) / / Rule 13d-1(c) / / Rule 13d-1(d) *The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page. The information required in the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act(however, see the Notes). CUSIP Number: 376535100 1. Name of Reporting Person I.R.S. Identification No. of Above Person Fairholme Capital Management, L.L.C. 2. Check the Appropriate Box if a Member of a Group a. b. X 3. SEC Use Only 4. Citizenship or Place of Organization Delaware Number of Shares Beneficially Owned by Each Reporting Person With: 5. Sole Voting Power: 233,927 6. Shared Voting Power: 0 7. Sole Dispositive Power: 675,354 8. Shared Dispositive Power: 0 9. Aggregate Amount Beneficially Owned by Each Reporting Person: 675,354 10. Check Box if the Aggregate Amount in Row (9) Excludes Certain Shares 11. Percent of Class Represented by Amount in Row (9) 6.7% 12. Type of Reporting Person IA CUSIP Number: 376535100 1. Name of Reporting Person I.R.S. Identification No. of Above Person Bruce R. Berkowitz 2. Check the Appropriate Box if a Member of a Group a. b. X 3. SEC Use Only 4. Citizenship or Place of Organization: New Jersey Number of Shares Beneficially Owned by Each Reporting Person With: 5. Sole Voting Power: 233,927 6. Shared Voting Power: 0 7. Sole Dispositive Power: 675,354 8. Shared Dispositive Power: 0 9. Aggregate Amount Beneficially Owned by Each Reporting Person: 675,354 10. Check Box if the Aggregate Amount in Row (9) Excludes Certain Shares 11. Percent of Class Represented by Amount in Row (9) 6.7% 12. Type of Reporting Person IN CUSIP Number: 376535100 Item 1(a) Name of Issuer: Gladstone Capital Corp. (b) Address of Issuer's Principal Executive Offices: 1616 Anderson Road, Suite 208 McLean, VA 22102 Item 2(a) - (b). Name and Principal Business Address of Persons Filing: Fairholme Capital Management, L.L.C. ("FCM") 51 JFK Parkway Short Hills, New Jersey 07078 Bruce R. Berkowitz Fairholme Capital Management, L.L.C. 51 JFK Parkway Short Hills, New Jersey 07078 Item 2(c). Citizenship: FCM is a limited liability company organized under the laws of Delaware and Mr. Berkowitz is a resident of New Jersey (d) Title of Class of Securities: Common Stock (e) CUSIP Number: 376535100 Item 3. If this statement is filed pursuant to Rule 13d-1(b)(1) or 13d-2(b) or (c) check whether the person filing is: (a) / / Broker or dealer registered under Section 15 of the Act, (b) / / Bank as defined in Section 3(a)(6) of the Act, (c) / / Insurance Company as defined in Section 3(a)(19) of the Act, (d) / / Investment Company registered under Section 8 of the Investment Company Act, (e) /X/ Investment Adviser in accordance with Rule 13d-1(b)(1)(ii)(E), (f) / / An employee benefit plan or endowment fund in accordance withss.240.13d-1(b)(1)(ii)(F); (g) / / A parent holding company or control person in accordance withss.240.13d-1(b)(1)(ii)(G); (h) / / A savings association as defined in Section 3(b) of the Federal Deposit Insurance Act (12 U.S.C. 1813); (i) / / A church plan that is excluded from the definition of an investment company under section 3(c)(14) of the Investment Company Act of 1940 (15 U.S.C. 80a-3); (j) / / Group, in accordance withss.240.13d-1(b)(1)(ii)(J). Item 4. Ownership. (a) Amount Beneficially Owned: 675,354 shares of common stock are owned, in the aggregate, by various investment vehicles and individual accounts, of which 441,427 are owned by investment CUSIP Number: 376535100 advisory clients of FCM. While the advisory relationship causes attribution to FCM of certain indicia of beneficial ownership for the limited purpose of this Form 13G, FCM hereby disclaims such beneficial ownership of 441,427 of these shares for purposes of interpretations under the Internal Revenue Code of 1986, as amended, or for any other purpose. Because Mr. Berkowitz has voting and dispositive power over all shares beneficially owned by FCM, he is deemed to have beneficial ownership of all such shares so reported herein. (b) Percent of Class: 6.7% (c) Number of shares as to which each of the reporting persons has: