UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number: 811-00041
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GENERAL AMERICAN INVESTORS COMPANY, INC.
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(Exact name of registrant as specified in charter)
450 Lexington Avenue, Suite 3300, New York, NY 10017-3911
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(Address of principal executive offices)(Zip code)
Eugene S. Stark
General American Investors Company, Inc.
450 Lexington Avenue, Suite 3300
New York, NY 10017-3911
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-916-8400
Date of fiscal year end: December 31
Date of reporting period: September 30, 2007
ITEM 1. SCHEDULE OF INVESTMENTS.
STATEMENT OF INVESTMENTS September 30, 2007 (Unaudited)
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General American Investors
Value
Shares COMMON AND PREFERRED STOCKS (note 1a)
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AEROSPACE/DEFENSE (4.4%)
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509,800 Textron Inc. $31,714,658
325,000 United Technologies Corporation 26,156,000
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(COST $47,844,103) 57,870,658
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BUILDING AND REAL ESTATE (5.1%)
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2,280,483 CEMEX, S.A. de C.V. ADR (COST $31,628,612) 68,232,051
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COMMUNICATIONS AND INFORMATION SERVICES (8.3%)
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90,000 Avaya Inc. (a) 1,526,400
900,000 Cisco Systems, Inc. (a) 29,816,910
400,000 Lamar Advertising Company Class A (a) 19,588,000
800,000 QUALCOMM Incorporated 33,808,000
1,325,000 Sprint Nextel Corporation 25,175,000
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(COST $84,175,425) 109,914,310
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COMPUTER SOFTWARE AND SYSTEMS (8.7%)
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700,000 Activision, Inc. (a) 15,113,000
1,550,000 Dell Inc. (a) 42,780,000
720,000 Microsoft Corporation 21,211,200
55,000 Nintendo Co., Ltd. 28,512,000
315,000 THQ Inc. (a) 7,868,700
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(COST $92,410,373) 115,484,900
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CONSUMER PRODUCTS AND SERVICES (8.4%)
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350,000 Diageo plc ADR 30,705,500
300,000 Heineken N. V. 19,635,000
630,000 Hewitt Associates, Inc. Class A (a) 22,081,500
45,000 Nestle S.A. 20,160,000
250,000 PepsiCo, Inc. 18,315,000
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(COST $78,354,580) 110,897,000
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ENVIRONMENTAL CONTROL (INCLUDING SERVICES) (4.1%)
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881,500 Republic Services, Inc. 28,833,865
680,000 Waste Management, Inc. 25,663,200
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(COST $39,285,764) 54,497,065
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FINANCE AND INSURANCE (25.2%)
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BANKING (5.6%)
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200,000 Bank of America Corporation 10,054,000
300,000 M&T Bank Corporation 31,035,000
650,000 Wachovia Corporation 32,597,500
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(COST $14,094,309) 73,686,500
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INSURANCE (16.3%)
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275,000 The Allstate Corporation 15,727,250
325,000 American International Group, Inc. 21,986,250
275,000 Annuity and Life Re (Holdings), Ltd. (a) 206,250
335,000 Arch Capital Group Ltd. (a) 24,927,350
365,000 AXIS Capital Holdings Limited 14,202,150
275 Berkshire Hathaway Inc. Class A (a) 32,590,250
350,000 Everest Re Group, Ltd. 38,584,000
900,000 Fidelity National Financial, Inc. 15,732,000
250,000 MetLife, Inc. 17,432,500
310,000 PartnerRe Ltd. 24,486,900
155,000 Transatlantic Holdings, Inc. 10,901,150
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(COST $92,296,799) 216,776,050
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OTHER (3.3%)
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60,000 Ameriprise Financial, Inc. 3,786,600
10,000 Epoch Holding Corporation Series A Convertible Preferred 4.6% ( d) 23,522,370
925,000 Nelnet, Inc. 16,872,000
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(COST $34,359,009) 44,180,970
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(COST $140,750,117) 334,643,520
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STATEMENT OF INVESTMENTS September 30, 2007 (Unaudited) - continued
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General American Investors
Value
Shares COMMON AND PREFERRED STOCKS (continued) (note 1a)
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HEALTH CARE / PHARMACEUTICALS (4.5%)
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80,000 Alkermes, Inc. (a) $1,472,000
100,000 Biogen Idec Inc. (a) 6,633,000
604,900 Cytokinetics, Incorporated (a) 3,097,088
200,000 Genentech, Inc. (a) 15,604,000
275,000 Novo Nordisk B 33,107,250
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(COST $30,082,866) 59,913,338
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MACHINERY AND EQUIPMENT (2.0%)
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1,000,000 ABB Ltd. ADR (COST $10,779,026) 26,230,000
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METAL (1.5%)
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150,500 Carpenter Technology Corporation (COST $18,726,632) 19,566,505
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MISCELLANEOUS (4.2%)
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Other (b) (COST $60,137,934) 55,661,160
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OIL & NATURAL GAS (INCLUDING SERVICES) (17.7%)
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600,000 Apache Corporation 54,036,000
800,000 Halliburton Company 30,720,000
1,000,000 Patterson-UTI Energy, Inc. 22,570,000
3,000,000 Talisman Energy Inc. 59,100,000
1,025,000 Weatherford International Ltd. (a) 68,859,500
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(COST $125,958,179) 235,285,500
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RETAIL TRADE (14.5%)
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575,000 Costco Wholesale Corporation 35,287,750
1,278,000 The Home Depot, Inc. (c) 41,458,320
533,000 Target Corporation 33,882,810
2,100,000 The TJX Companies, Inc. 61,047,000
470,000 Wal-Mart Stores, Inc. 20,515,500
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(COST $72,476,622) 192,191,380
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TECHNOLOGY (3.2%)
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130,000 Intermec, Inc. (a) 3,395,600
2,250,000 Xerox Corporation (a) 39,015,000
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(COST $34,820,215) 42,410,600
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TRANSPORTATION (0.9%)
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236,100 Alexander & Baldwin, Inc. (COST $11,005,032) 11,835,693
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TOTAL COMMON AND PREFERRED STOCKS (112.7%) (COST $878,435,480) 1,494,633,680
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Principal Amount CORPORATE NOTE
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CONSUMER PRODUCTS AND SERVICES (1.9%)
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$25,000,000 General Motors Nova Scotia Finance Company
6.85% Guaranteed Notes due 10/15/08 (COST $24,359,180) 24,750,000
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STATEMENT OF INVESTMENTS September 30, 2007 (Unaudited) - continued
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General American Investors
Value
Shares SHORT-TERM SECURITIES AND OTHER ASSETS (note 1a)
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7,641,647 SSgA Prime Money Market Fund (0.5%) (COST $7,641,647) $7,641,647
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TOTAL INVESTMENTS (e) (115.1%) (COST $910,436,307) 1,527,025,327
Liabilities in excess of cash, receivables and other assets (0.0%) (557,335)
PREFERRED STOCK (-15.1%) (200,000,000)
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NET ASSETS APPLICABLE TO COMMON STOCK (100%) $1,326,467,992
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(a) Non-income producing security.
(b) Securities which have been held for less than one year, not previously disclosed and not restricted.
(c) 500,000 shares held by custodian in a segregated custodian account as collateral for short positions, if any.
(d) Restricted security of an affiliate acquired 11/7/06.
(e) At September 30, 2007: (1) the cost of investments for Federal income tax purposes was the same as the cost for financial
reporting purposes, (2) aggregate gross unrealized appreciation was $635,261,837, (3) aggregate gross unrealized depreciation
was $18,672,817, and (4) net unrealized appreciation was $616,589,020.
(see notes to financial statements)
STATEMENT OF CALL OPTIONS WRITTEN September 30, 2007 (Unaudited)
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General American Investors
Contracts Value
(100 shares each) COMMON STOCK/EXPIRATION DATE/EXERCISE PRICE (note 1a)
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COMMUNICATIONS AND INFORMATION SERVICES
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446 Avaya Inc./January '08/$17.50 (PREMIUMS RECEIVED $23,085) $4,460
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(see notes to financial statements)
NOTES TO FINANCIAL STATEMENTS (Unaudited)
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General American Investors
General American Investors Company, Inc. (the "Company"), established in 1927,
is registered under the Investment Company Act of 1940 as a closed-end,
diversified management investment company. It is internally managed by its
officers under the direction of the Board of Directors.
1. SECURITY VALUATION
Securities traded on a national securities exchange are valued at the last
reported sales price on the last business day of the period. Securities reported
on the NASDAQ national market are valued at the official closing price on that
day. Listed and NASDAQ securities for which no sales are reported on that day
and other securities traded in the over-the-counter market are valued at the
last bid price (asked price for options written) on the valuation date.
Securities traded primarily in foreign markets are generally valued at the
preceding closing price of such securities on their respective exchanges or
markets. If, after the close of the foreign market, conditions change
significantly, the price of certain foreign securities may be adjusted to
reflect fair value as of the time of the valuation of the portfolio. Investments
in money market funds are valued at their net asset value. The restricted
security is valued at par value (cost), divided by the conversion price of $6.00
multiplied by the last reported sales price of the publicly traded common stock
of the corporation.
2. OPTIONS
The Company may purchase and write (sell) put and call options. The risk
associated with purchasing an option is that the Company pays a premium whether
or not the option is exercised. Additionally, the Company bears the risk of loss
of the premium and a change in market value should the counterparty not perform
under the contract. Put and call options purchased are accounted for in the same
manner as portfolio securities. Premiums received from writing options that
expire unexercised are treated by the Company on the expiration date as realized
gains from investments. The difference between the premium received and the
amount paid on effecting a closing purchase transaction, including brokerage
commissions, is also treated as a realized gain, or, if the premium is less than
the amount paid for the closing purchase transaction, as a realized loss. If a
call option is exercised, the premium is added to the proceeds from the sale of
the underlying security in determining whether the Company has realized a gain
or loss. If a put option is exercised, the premium reduces the cost basis for
the securities purchased by the Company. The Company as writer of an option
bears the market risk of an unfavorable change in the price of the security
underlying the written option.
ITEM 2. CONTROLS AND PROCEDURES.
Conclusions of principal officers concerning controls and procedures
(a) As of September 30, 2007, an evaluation was performed under the supervision
and with the participation of the officers of General American Investors
Company, Inc. (the "Registrant"), including the principal executive officer
("PEO") and principal financial officer ("PFO"), of the effectiveness of the
Registrant's disclosure controls and procedures. Based on that evaluation,
the Registrant's officers, including the PEO and PFO, concluded that, as of
September 30, 2007, the Registrant's disclosure controls and procedures were
reasonably designed so as to ensure: (1) that information required to be
disclosed by the Registrant on Form N-Q is recorded, processed, summarized and
reported within the time periods specified by the rules and forms of the
Securities and Exchange Commission; and (2) that material information relating
to the Registrant is made known to the PEO and PFO as appropriate to allow
timely decisions regarding required disclosure.
(b) There have been no significant changes in the Registrant's internal control
over financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940 (17 CFR 270.30a-3(d)) that occurred during the Registrant's
last fiscal quarter that has materially affected, or is reasonably likely to
materially affect, the Registrant's internal control over financial reporting.
ITEM 3. EXHIBITS.
The certifications of the principal executive officer and principal
financial officer pursuant to Rule 30a-2(a)under the Investment Company
Act of 1940 are attached hereto as Exhibit 99 CERT.
SIGNATURES
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.
General American Investors Company, Inc.
By: /s/ Eugene S. Stark
Eugene S. Stark
Vice-President, Administration
Date: October 19, 2007
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/ Spencer Davidson
Spencer Davidson
President and Chief Executive Officer
(Principal Executive Officer)
Date: October 19, 2007
By: /s/ Eugene S. Stark
Eugene S. Stark
Vice-President, Administration
(Principal Financial Officer)
Date: October 19, 2007