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 L. DeStaebler, Jr.
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, 2004
Item 1. SCHEDULE OF INVESTMENTS.
STATEMENT OF INVESTMENTS September 30, 2004 (Unaudited)
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General American Investors
Shares or Value
Principal Amount COMMON STOCKS (note 1)
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BUILDING AND REAL ESTATE (2.8%)
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950,000 CEMEX, S.A. de C.V. (COST $24,846,539) $26,733,000
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COMMUNICATIONS AND INFORMATION SERVICES (7.3%)
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550,000 American Tower Corporation (a) 8,442,500
550,000 CIENA Corporation (a) 1,089,000
900,000 Cisco Systems, Inc. (a) 16,290,000
620,000 Cox Communications, Inc. Class A (a) 20,540,600
150,000 Juniper Networks, Inc. (a) 3,540,000
500,000 Lamar Advertising Company Class A (a) 20,805,000
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(COST $58,318,248) 70,707,100
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COMPUTER SOFTWARE AND SYSTEMS (5.9%)
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300,000 EMC Corporation (a) 3,462,000
1,525,000 Microsoft Corporation 42,166,250
623,000 NetIQ Corporation (a) 6,666,100
233,500 VeriSign, Inc. (a) 4,641,980
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(COST $54,544,667) 56,936,330
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CONSUMER PRODUCTS AND SERVICES (3.6%)
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350,000 Diageo plc 17,650,500
275,000 Ethan Allen Interiors Inc. 9,556,250
150,000 PepsiCo, Inc. 7,297,500
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(COST $28,303,579) 34,504,250
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ELECTRONICS (1.9%)
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715,000 Molex Incorporated Class A (COST $15,450,691) 18,818,800
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ENVIRONMENTAL CONTROL (INCLUDING SERVICES) (3.6%)
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1,175,000 Republic Services, Inc. (COST $26,227,380) 34,968,000
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FINANCE AND INSURANCE (31.0%)
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BANKING (10.2%)
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368,000 Bank of America Corporation 15,945,440
325,000 Golden West Financial Corporation 36,058,750
330,000 M&T Bank Corporation 31,581,000
205,000 SunTrust Banks, Inc. 14,434,050
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(COST $23,599,570) 98,019,240
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INSURANCE (18.4%)
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265,000 American International Group, Inc. 18,017,350
625,000 Annuity and Life Re (Holdings), Ltd. (a) 250,000
300 Berkshire Hathaway Inc. Class A (a) 25,995,000
650,000 Everest Re Group, Ltd. 48,314,500
435,000 MetLife, Inc. 16,812,750
175,000 Montpelier Re Holdings Ltd. 6,419,000
500,000 PartnerRe Ltd. 27,345,000
445,000 Reinsurance Group of America, Incorporated 18,334,000
281,250 Transatlantic Holdings, Inc. 15,285,937
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(COST $84,976,740) 176,773,537
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OTHER (2.4%)
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775,000 Annaly Mortgage Management, Inc. 13,275,750
90,184 Central Securities Corporation 2,006,594
850,000 MFA Mortgage Investments, Inc. 7,828,500
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(COST $19,609,426) 23,110,844
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(COST $128,185,736) 297,903,621
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STATEMENT OF INVESTMENTS September 30, 2004 (Unaudited) - continued
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General American Investors
Shares or Value
Principal Amount COMMON STOCKS (continued) (note 1)
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HEALTH CARE (16.8%)
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PHARMACEUTICALS (14.4%)
340,000 Alkermes, Inc. (a) $3,923,600
825,000 Baxter International Inc. 26,532,000
250,000 Biogen Idec Inc. (a) 15,292,500
300,000 Bristol-Myers Squibb Company 7,101,000
75,000 Cytokinetics, Incorporated (a) 997,500
270,000 Genaera Corporation (a) 1,055,700
560,000 Genentech, Inc. (a) 29,355,200
375,000 Genta Incorporated (a) 1,008,750
455,000 MedImmune, Inc. (a) 10,783,500
120,000 Millennium Pharmaceuticals, Inc.(a) 1,640,400
1,325,000 Pfizer Inc 40,545,000
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(COST $100,333,012) 138,235,150
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MEDICAL INSTRUMENTS AND DEVICES (2.4%)
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450,000 Medtronic, Inc. (COST $10,483,716) 23,355,000
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(COST $110,816,728) 161,590,150
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MISCELLANEOUS (0.9%)
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Other (b) (COST $8,337,168) 8,600,000
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OIL & NATURAL GAS (INCLUDING SERVICES) (12.6%)
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390,000 Apache Corporation 19,542,900
800,000 Devon Energy Corporation 56,808,000
600,000 Halliburton Company 20,214,000
247,000 Total S.A. ADR 25,235,990
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(COST $86,389,860) 121,800,890
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RETAIL TRADE (20.3%)
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700,000 Costco Wholesale Corporation 29,057,000
1,920,000 The Home Depot, Inc. (c) 75,264,000
2,500,000 The TJX Companies, Inc. 55,100,000
675,000 Wal-Mart Stores, Inc. 35,910,000
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(COST $68,036,225) 195,331,000
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SEMICONDUCTORS (0.8%)
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491,500 Brooks Automation, Inc. (a) 6,954,725
197,000 EMCORE Corporation (a) 388,090
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(COST $9,890,144) 7,342,815
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SPECIAL HOLDINGS (a) (d) (NOTE 2) (0.2%)
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200,000 Cytokinetics, Incorporated 1,862,000
144,000 Silicon Genesis Corporation 21,600
546,000 Standard MEMS, Inc. Series A Convertible Preferred -
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(COST $8,009,720) 1,883,600(e)
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TOTAL COMMON STOCKS (107.7%) (COST $627,356,685) 1,037,119,556
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CONVERTIBLE CORPORATE NOTES
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COMMUNICATIONS AND INFORMATION SERVICES (0.3%)
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$2,321,000 American Tower Corporation 9 3/8% due 2/1/09 (COST $2,451,141) 2,471,865
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OIL & NATURAL GAS (INCLUDING SERVICES) (1.2%)
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$22,500,000 El Paso Corporation 0% due 2/28/21 (COST $10,822,193) 11,475,000
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TOTAL CONVERTIBLE CORPORATE NOTES (1.5%) (COST $13,273,334) 13,946,865
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STATEMENT OF INVESTMENTS September 30, 2004 (Unaudited) - continued
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General American Investors
Principal Value
Amount SHORT-TERM SECURITIES AND OTHER ASSETS (note 1)
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$20,900,000 American Express Credit Corporation notes due 10/7-10/28/04; 1.51%-1.66% $20,861,326
26,600,000 American General Finance Corporation notes due 10/5-11/4/04; 1.55%-1.76% 26,549,092
24,600,000 General Electric Capital Corporation notes due 10/14-11/1/04; 1.59%-1.68% 24,548,067
18,900,000 General Motors Acceptance Corporation notes due 10/1-10/26/04; 1.66%-1.76% 18,861,067
13,900,000 Prudential Funding, LLC notes due 10/18-11/2/04; 1.62%-1.76% 13,871,684
10,200,000 Sears Roebuck Acceptance Corp. notes due 10/4-10/21/04;1.70%-1.75% 10,179,937
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Total Short-Term Securities (11.9%) (COST $114,871,173) 114,871,173
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TOTAL INVESTMENTS (f) (121.1%) (COST $755,501,192) 1,165,937,594
Liabilities in excess of cash, receivables and other assets (-0.3%) (3,161,677)
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1,162,775,917
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PREFERRED STOCK (-20.8%) (200,000,000)
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NET ASSETS APPLICABLE TO COMMON STOCK (100%) $962,775,917
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(a) Non-income producing security.
(b) Securities which have been held for less than one year and in which the Company is in the process of accumulating a position.
(c) 1,000,000 shares held by custodian in a segregated custodian account as collateral for open short positions.
(d) Restricted security.
(e) Fair value of each holding in the opinion of the directors.
(f) At September 30, 2004:
(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 $456,004,746,
(3) aggregate gross unrealized depreciation was $45,568,344, and
(4) net unrealized appreciation was $410,436,402.
STATEMENT OF SECURITIES SOLD SHORT September 30, 2004 (Unaudited)
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General American Investors
Value
Shares COMMON STOCKS (note 1)
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50,000 NASDAQ-100 Trust, Series 1 (PROCEEDS $1,501,230) $1,757,000
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STATEMENT OF OPTIONS WRITTEN September 30, 2004 (Unaudited)
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General American Investors
Contracts Value
(100 shares each) COMMON STOCKS/EXPIRATION DATE/EXERCISE PRICE (note 1)
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CALL OPTIONS
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COMMUNICATIONS AND INFORMATION SERVICES
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1,225 Cox Communications, Inc. Class A/January 05/$32.50 (PREMIUMS RECEIVED $206,188) $220,500
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PHARMACEUTICALS
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200 Genentech, Inc./January 05/$55 (PREMIUMS RECEIVED $79,398) 62,000
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PUT OPTIONS
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OIL & NATURAL GAS (INCLUDING SERVICES)
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500 Apache Corporation/January 05/$45 (PREMIUMS RECEIVED $98,498) 55,000
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TOTAL OPTIONS (PREMIUMS RECEIVED $384,084) $337,500
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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 or prices 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 open short positions and written options)
on the valuation date. Corporate discount notes are valued at amortized cost,
which approximates market value. Special holdings are valued at fair value in
the opinion of the Directors. In determining fair value, in the case of
restricted shares, consideration is given to cost, operating and other financial
data and, where applicable, subsequent private offerings or market price of the
issuer's unrestricted shares (to which a 30 percent discount is applied).
2. RESTRICTED SECURITIES
DATE VALUE
ACQUIRED COST (NOTE 1)
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Cytokinetics, Incorporated 3/21/03 $2,000,000 $1,862,000
Silicon Genesis Corporation 2/16/01 3,006,720 21,600
Standard MEMS, Inc. Series A Convertible Preferred 12/17/99 3,003,000 -
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Total $8,009,720 $1,883,600
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ITEM 2. CONTROLS AND PROCEDURES.
Conclusions of principal officers concerning controls and procedures
(a) As of October 12, 2004, 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
October 12, 2004, 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 L. DeStaebler, Jr.
Eugene L. DeStaebler, Jr.
Vice-President, Administration
Date: October 26, 2004
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 26, 2004
By: /s/ Eugene L. DeStaebler, Jr.
Eugene L. DeStaebler, Jr.
Vice-President, Administration
(Principal Financial Officer)
Date: October 26, 2004