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: March 31, 2006
Item 1. SCHEDULE OF INVESTMENTS.
STATEMENT OF INVESTMENTS March 31, 2006 (Unaudited)
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General American Investors
Value
Shares COMMON AND PREFERRED STOCKS (note 1)
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BUILDING AND REAL ESTATE (6.4%)
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1,143,041 CEMEX, S.A. de C.V. ADR (COST $30,440,830) $74,617,716
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COMMUNICATIONS AND INFORMATION SERVICES (5.0%)
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675,000 American Tower Corporation (a) 20,466,000
900,000 Cisco Systems, Inc. (a) 19,503,000
350,000 Lamar Advertising Company Class A (a) 18,413,500
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(COST $34,761,823) 58,382,500
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COMPUTER SOFTWARE AND SYSTEMS (3.9%)
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300,000 EMC Corporation (a) 4,089,000
1,400,000 Microsoft Corporation 38,094,000
133,500 VeriSign, Inc. (a) 3,202,665
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(COST $41,604,314) 45,385,665
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CONSUMER PRODUCTS AND SERVICES (2.7%)
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350,000 Diageo plc 22,200,500
175,000 PepsiCo, Inc. 10,113,250
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(COST $22,493,511) 32,313,750
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ELECTRONICS (1.4%)
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550,000 Molex Incorporated Class A (COST $12,287,441) 16,346,000
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ENVIRONMENTAL CONTROL (INCLUDING SERVICES) (4.2%)
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Republic Services, Inc. (COST $26,227,380) 49,949,250
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FINANCE AND INSURANCE (27.0%)
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BANKING (9.9%)
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280,000 Bank of America Corporation 12,751,200
585,000 Golden West Financial Corporation 39,721,500
310,000 M&T Bank Corporation 35,383,400
475,000 North Fork Bancorporation, Inc. 13,694,250
200,000 SunTrust Banks, Inc. 14,552,000
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(COST $31,006,675) 116,102,350
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INSURANCE (15.9%)
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275,000 The Allstate Corporation 14,330,250
350,000 American International Group, Inc. 23,131,500
500,000 Annuity and Life Re (Holdings), Ltd. (a) 605,000
350,000 Arch Capital Group Ltd. (a) 20,209,000
300 Berkshire Hathaway Inc. Class A (a) 27,105,000
550,000 Everest Re Group, Ltd. 51,353,500
285,000 MetLife, Inc. 13,785,450
365,000 PartnerRe Ltd. 22,662,850
225,000 Transatlantic Holdings, Inc. 13,151,250
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(COST $82,551,050) 186,333,800
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OTHER (1.2%)
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500,000 Annaly Mortgage Management, Inc. 6,070,000
1,300,000 MFA Mortgage Investments, Inc. 8,255,000
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(COST $16,084,154) 14,325,000
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(COST $129,641,879) 316,761,150
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STATEMENT OF INVESTMENTS March 31, 2006 (Unaudited) - continued
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General American Investors
Value
Shares COMMON AND PREFERRED STOCKS (continued) (note 1)
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HEALTH CARE (11.0%)
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PHARMACEUTICALS (9.1%)
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240,000 Alkermes, Inc. (a) $5,292,000
170,000 Biogen Idec Inc. (a) 8,007,000
604,900 Cytokinetics, Incorporated (a) 4,409,721
305,000 Genentech, Inc. (a) 25,775,550
400,000 MedImmune, Inc. (a) 14,632,000
1,947,000 Pfizer Inc 48,519,240
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(COST $67,179,843) 106,635,511
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MEDICAL INSTRUMENTS AND DEVICES (1.9%)
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450,000 Medtronic, Inc. (COST $10,483,716) 22,837,500
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(COST $77,663,559) 129,473,011
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MISCELLANEOUS (4.5%)
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Other (b) (COST $51,274,394) 53,090,000
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OIL & NATURAL GAS (INCLUDING SERVICES) (23.4%)
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665,000 Apache Corporation 43,564,150
200,000 EOG Resources, Inc. 14,400,000
440,000 Halliburton Company 32,128,800
1,000,000 Patterson-UTI Energy, Inc. 31,960,000
1,000,000 Talisman Energy Inc. 53,180,000
330,000 Total S.A. ADR 43,470,900
1,220,000 Weatherford International Ltd. (a) 55,815,000
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(COST $174,256,353) 274,518,850
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RETAIL TRADE (17.6%)
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700,000 Costco Wholesale Corporation 37,912,000
750,000 Dollar General Corporation 13,252,500
1,570,000 The Home Depot, Inc. (c) 66,411,000
2,500,000 The TJX Companies, Inc. 62,050,000
575,000 Wal-Mart Stores, Inc. 27,163,000
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(COST $70,534,121) 206,788,500
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SEMICONDUCTORS (0.5%)
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323,000 Brooks Automation, Inc. (a) 4,599,520
100,000 EMCORE Corporation (a) 1,020,000
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(COST $4,024,001) 5,619,520
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SPECIAL HOLDING (a) (d) (0.0%)
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546,000 Standard MEMS, Inc. Series A Convertible Preferred (COST $3,003,000) -
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TECHNOLOGY (2.4%)
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1,900,000 Xerox Corporation (a) (COST $25,689,854) 28,880,000
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TOTAL COMMON AND PREFERRED STOCKS (110.0%) (COST $703,902,460) 1,292,125,912
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Principal Amount CORPORATE NOTE
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CONSUMER PRODUCTS AND SERVICES (2.5%)
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$35,000,000 General Motors Nova Scotia Finance Company
6.85% Guaranteed Notes due 10/15/08 (COST $33,275,342) 29,750,000
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8 STATEMENT OF INVESTMENTS March 31, 2006 (Unaudited) - continued
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General American Investors
Principal Value
Amount SHORT-TERM SECURITY AND OTHER ASSETS (note 1)
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$10,000,000 General Electric Credit Corporation note due 4/11/06; 4.73% (COST $9,981,606) $9,981,606
10,000,000 UBS Finance Inc. Corporation note due 4/4/06; 4.68% (COST $9,981,800) 9,981,800
28,297,721 SSgA Prime Money Market Fund (COST $28,297,721) 28,297,721
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TOTAL SHORT-TERM SECURITIES (4.1%) (COST $48,261,127) 48,261,127
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TOTAL INVESTMENTS (e) (116.6%) (COST $785,438,929) 1,370,137,039
Cash, receivables and other assets less liabilities (0.4%) 4,542,661
PREFERRED STOCK (-17.0%) (200,000,000)
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NET ASSETS APPLICABLE TO COMMON STOCK (100%) $1,174,679,700
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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) 1,000,000 shares held by custodian in a segregated account as collateral for open short positions.
(d) Restricted security acquired 12/17/99. Fair value in the opinion of the directors.
(e) At March 31, 2006: (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 $602,036,783, (3) aggregate gross unrealized depreciation was
$17,338,673, and (4) net unrealized appreciation was $584,698,110.
(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 open short positions) 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. Corporate
discount notes are valued at amortized cost, which approximates market value.
Investments in money market funds are valued at their net asset value. Special
holdings (restricted securities) and other securities for which quotations are
not readily available are valued at fair value determined in good faith pursuant
to procedures established by and under the general supervision of the Board of
Directors.
ITEM 2. CONTROLS AND PROCEDURES.
Conclusions of principal officers concerning controls and procedures
(a) As of March 31, 2006, 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, 2005, 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: April 28, 2006
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: April 28, 2006
By: /s/ Eugene S. Stark
Eugene S. Stark
Vice-President, Administration
(Principal Financial Officer)
Date: April 28, 2006