| 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
GENERAL AMERICAN INVESTORS COMPANY, INC
(Exact name of registrant as specified in charter)
| 100 Park Avenue, 35th floor, New York, NY 10017 (Address of principal executive offices)(Zip code) |
| Eugene S. Stark General American Investors Company, Inc. 100 Park Avenue, 35th Floor New York, NY 10017 (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: March 31, 2008
ITEM 1. SCHEDULE OF INVESTMENTS.
| Value | ||||||
| Shares | COMMON AND PREFERRED STOCKS | (note 1a) | ||||
| AEROSPACE/DEFENSE (4.9%) | ||||||
| 600,700 | Textron Inc. | $33,290,794 | ||||
| 325,000 | United Technologies Corporation | 22,366,500 | ||||
| (COST $52,755,356) | 55,657,294 | |||||
| BUILDING AND REAL ESTATE (5.1%) | ||||||
| 2,225,862 | CEMEX, S.A. de C.V. ADR | (COST $29,518,057) | 58,139,515 | |||
| COMMUNICATIONS AND INFORMATION SERVICES (6.1%) | ||||||
| 900,000 | Cisco Systems, Inc. (a) | 21,681,000 | ||||
| 324,100 | Lamar Advertising Company Class A (a) | 11,644,913 | ||||
| 800,000 | QUALCOMM Incorporated | 32,800,000 | ||||
| 480,000 | Sprint Nextel Corporation (a) | 3,211,200 | ||||
| (COST $63,613,670) | 69,337,113 | |||||
| COMPUTER SOFTWARE AND SYSTEMS (10.0%) | ||||||
| 700,000 | Activision, Inc. (a) | 19,117,000 | ||||
| 1,500,000 | Dell Inc. (a) | 29,880,000 | ||||
| 570,000 | Microsoft Corporation | 16,176,600 | ||||
| 245,000 | NetEase.com, Inc. (a) | 4,706,450 | ||||
| 70,000 | Nintendo Co., Ltd. | 36,055,600 | ||||
| 365,000 | THQ Inc. (a) | 7,957,000 | ||||
| (COST $97,755,877) | 113,892,650 | |||||
| CONSUMER PRODUCTS AND SERVICES (9.5%) | ||||||
| 350,000 | Diageo plc ADR | 28,462,000 | ||||
| 385,000 | Heineken N. V. | 22,391,600 | ||||
| 550,000 | Hewitt Associates, Inc. Class A (a) | 21,873,500 | ||||
| 42,500 | Nestle S.A. | 21,033,675 | ||||
| 200,000 | PepsiCo, Inc. | 14,440,000 | ||||
| (COST $76,356,145) | 108,200,775 | |||||
| ENVIRONMENTAL CONTROL (INCLUDING SERVICES) (4.3%) | ||||||
| 881,500 | Republic Services, Inc. | 25,775,060 | ||||
| 680,000 | Waste Management, Inc. | 22,820,800 | ||||
| (COST $39,285,764) | 48,595,860 | |||||
| FINANCE AND INSURANCE (23.2%) | ||||||
| BANKING (3.6%) | ||||||
| 300,000 | M&T Bank Corporation | 24,144,000 | ||||
| 615,000 | Wachovia Corporation | 16,605,000 | ||||
| (COST $5,352,608) | 40,749,000 | |||||
| INSURANCE (16.7%) | ||||||
| 330,000 | The Allstate Corporation | 15,859,800 | ||||
| 450,000 | American International Group, Inc. | 19,462,500 | ||||
| 325,000 | Arch Capital Group Ltd. (a) | 22,317,750 | ||||
| 205,000 | AXIS Capital Holdings Limited | 6,965,900 | ||||
| 200 | Berkshire Hathaway Inc. Class A (a) | 26,680,000 | ||||
| 315,000 | Everest Re Group, Ltd. | 28,201,950 | ||||
| 1,375,000 | Fidelity National Financial, Inc. | 25,203,750 | ||||
| 265,000 | MetLife, Inc. | 15,968,900 | ||||
| 275,000 | PartnerRe Ltd. | 20,982,500 | ||||
| 130,000 | Transatlantic Holdings, Inc. | 8,625,500 | ||||
| (COST $97,438,870) | 190,268,550 | |||||
| OTHER (2.9%) | ||||||
| 10,000 | Epoch Holding Corporation Series A Convertible Preferred 4.6% (d) | 20,014,060 | ||||
| 1,150,000 | Nelnet, Inc. | 13,512,500 | ||||
| (COST $33,920,436) | 33,526,560 | |||||
| (COST $136,711,914) | 264,544,110 | |||||
| Value | ||||||
| Shares | COMMON AND PREFERRED STOCKS (continued) | (note 1a) | ||||
| HEALTH CARE / PHARMACEUTICALS (3.3%) | ||||||
| 80,000 | Alkermes, Inc. (a) | $950,400 | ||||
| 90,000 | Biogen Idec Inc. (a) | 5,552,100 | ||||
| 529,900 | Cytokinetics, Incorporated (a) | 1,759,268 | ||||
| 200,000 | Genentech, Inc. (a) | 16,236,000 | ||||
| 190,000 | Novo Nordisk B | 13,016,900 | ||||
| (COST $15,790,018) | 37,514,668 | |||||
| MACHINERY AND EQUIPMENT (2.3%) | ||||||
| 1,000,000 | ABB Ltd. ADR | (COST $10,779,026) | 26,920,000 | |||
| METAL (1.6%) | ||||||
| 321,000 | Carpenter Technology Corporation | (COST $19,986,798) | 17,966,370 | |||
| MISCELLANEOUS (5.2%) | ||||||
| Other (b) | (COST $67,296,904) | 59,047,910 | ||||
| OIL AND NATURAL GAS (INCLUDING SERVICES) (18.6%) | ||||||
| 600,000 | Apache Corporation | 72,492,000 | ||||
| 800,000 | Halliburton Company | 31,464,000 | ||||
| 700,000 | Patterson-UTI Energy, Inc. | 18,326,000 | ||||
| 1,235,000 | Weatherford International Ltd. (a) | 89,500,450 | ||||
| (COST $89,768,143) | 211,782,450 | |||||
| RETAIL TRADE (14.5%) | ||||||
| 575,000 | Costco Wholesale Corporation | 37,357,750 | ||||
| 1,100,000 | The Home Depot, Inc. (c) | 30,767,000 | ||||
| 333,100 | Target Corporation | 16,881,508 | ||||
| 1,675,000 | The TJX Companies, Inc. | 55,392,250 | ||||
| 470,000 | Wal-Mart Stores, Inc. | 24,759,600 | ||||
| (COST $54,473,830) | 165,158,108 | |||||
| TECHNOLOGY (2.6%) | ||||||
| 1,000,000 | BearingPoint, Inc. (a) | 1,680,000 | ||||
| 1,900,000 | Xerox Corporation | 28,443,000 | ||||
| (COST $33,306,174) | 30,123,000 | |||||
| TRANSPORTATION (0.9%) | ||||||
| 236,100 | Alexander & Baldwin, Inc. | (COST $11,005,032) | 10,171,188 | |||
| TOTAL COMMON AND PREFERRED STOCKS (112.1%) | (COST $798,402,708) | 1,277,051,011 | ||||
| Principal Amount | CORPORATE NOTE | |||||
| CONSUMER PRODUCTS AND SERVICES (1.2%) | ||||||
| $13,750,000 | General Motors Nova Scotia Finance Company | |||||
| 6.85% Guaranteed Notes due 10/15/08 | (COST $13,508,602) | 13,509,375 | ||||
| Shares | SHORT-TERM SECURITY AND OTHER ASSETS | |||||
| 43,032,346 | SSgA Prime Money Market Fund (3.7%) | (COST $43,032,346) | 43,032,346 | |||
| TOTAL INVESTMENTS (e) (117.0%) | (COST $854,943,656) | 1,333,592,732 | ||||
| Cash, receivables and other assets less liabilities (0.5%) | 6,046,947 | |||||
| PREFERRED STOCK (-17.5%) | (200,000,000) | |||||
| NET ASSETS APPLICABLE TO COMMON STOCK (100%) | $1,139,639,679 | |||||
| (a) | Non-income producing security. | |
| (b) | Securities which have been held for less than one year, not previously disclosed and not restricted. | |
| (c) | 1,000,000 shares held by custodian in a segregated custodian account as collateral for short positions and options, if any. | |
| (d) | Restricted security of an affiliate acquired 11/7/06. | |
| (e) | At March 31, 2008: (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 $534,250,373, (3) aggregate gross unrealized depreciation was $55,601,297, and | |
| (4) | net unrealized appreciation was $478,649,076. | |
| (see notes to financial statements) |
| Contracts | Value | |||||
| (100 shares each) | COMMON STOCK/EXPIRATION DATE/EXERCISE PRICE | (note 1a) | ||||
| CALL OPTIONS | ||||||
| OIL AND NATURAL GAS (INCLUDING SERVICES) | ||||||
| 1,000 | Apache Corporation/April 08/$120.00 | $510,000 | ||||
| 1,000 | Weatherford International Ltd./April 08/$70.00 | 457,000 | ||||
| 900 | Weatherford International Ltd./May 08/$70.00 | 594,000 | ||||
| (PREMIUMS RECEIVED $1,379,249) | 1,561,000 | |||||
| PUT OPTIONS | ||||||
| REAL ESTATE | ||||||
| 750 | CB Richard Ellis Group, Inc. Class A/May 08/$25.00 | 300,000 | ||||
| 750 | CB Richard Ellis Group, Inc. Class A/May 08/$22.50 | 210,000 | ||||
| (PREMIUMS RECEIVED $374,606) | 510,000 | |||||
| TOTAL OPTIONS | (PREMIUMS RECEIVED $1,753,855) | $2,071,000 | ||||
| (See notes to financial statements) | ||||||
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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 March 31, 2008, 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 March 31, 2008, 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 |
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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. |
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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. |
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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. |
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By: /s/ Eugene S. Stark Eugene S. Stark Vice-President, Administration Date: April 28, 2008 |
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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. |
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By: /s/ Spencer Davidson Spencer Davidson President and Chief Executive Officer (Principal Executive Officer) Date: April 28, 2008 By: /s/ Eugene S. Stark Eugene S. Stark Vice-President, Administration (Principal Financial Officer) Date: April 28, 2008 |