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, 2005
Item 1. SCHEDULE OF INVESTMENTS.
STATEMENT OF INVESTMENTS September 30, 2005 (Unaudited)
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General American Investors
Value
Shares COMMON STOCKS (note 1)
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BUILDING AND REAL ESTATE (5.3%)
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1,143,041 CEMEX, S.A. de C.V. ADR (COST $30,440,830) $59,781,044
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COMMUNICATIONS AND INFORMATION SERVICES (6.1%)
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675,000 American Tower Corporation (a) 16,841,250
550,000 CIENA Corporation (a) 1,452,000
900,000 Cisco Systems, Inc. (a) 16,128,000
350,000 Lamar Advertising Company Class A (a) 15,872,500
4,600,000 Telecom Corporation of New Zealand Limited 19,182,000
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(COST $62,390,544) 69,475,750
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COMPUTER SOFTWARE AND SYSTEMS (4.1%)
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300,000 EMC Corporation (a) 3,882,000
1,525,000 Microsoft Corporation 39,238,250
133,500 VeriSign, Inc. (a) 2,852,895
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(COST $45,174,564) 45,973,145
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CONSUMER PRODUCTS AND SERVICES (3.4%)
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350,000 Diageo plc 20,303,500
275,000 Ethan Allen Interiors Inc. 8,621,250
175,000 PepsiCo, Inc. 9,924,250
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(COST $29,609,424) 38,849,000
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ELECTRONICS (1.2%)
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550,000 Molex Incorporated Class A (COST $12,287,441) 14,140,500
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ENVIRONMENTAL CONTROL (INCLUDING SERVICES) (3.6%)
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1,175,000 Republic Services, Inc. (COST $26,227,380) 41,465,750
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FINANCE AND INSURANCE (25.8%)
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BANKING (8.3%)
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315,000 Bank of America Corporation 13,261,500
585,000 Golden West Financial Corporation 34,743,150
310,000 M&T Bank Corporation 32,770,100
200,000 SunTrust Banks, Inc. 13,890,000
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(COST $19,447,242) 94,664,750
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INSURANCE (16.0%)
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350,000 American International Group, Inc. 21,686,000
500,000 Annuity and Life Re (Holdings), Ltd. (a) 560,000
350,000 Arch Capital Group Ltd. (a) 17,356,500
300 Berkshire Hathaway Inc. Class A (a) 24,600,000
550,000 Everest Re Group, Ltd. 53,845,000
285,000 MetLife, Inc. 14,201,550
400,000 PartnerRe Ltd. 25,620,000
200,000 Reinsurance Group of America, Incorporated 8,940,000
250,000 Transatlantic Holdings, Inc. 14,250,000
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(COST $72,953,060) 181,059,050
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OTHER (1.5%)
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675,000 Annaly Mortgage Management, Inc. 8,741,250
95,194 Central Securities Corporation 2,414,120
925,000 MFA Mortgage Investments, Inc. 5,670,250
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(COST $18,670,863) 16,825,620
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(COST $111,071,165) 292,549,420
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STATEMENT OF INVESTMENTS September 30, 2005 (Unaudited) - continued
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General American Investors
Value
Shares COMMON STOCKS (continued) (note 1)
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HEALTH CARE (10.4%)
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PHARMACEUTICALS (8.3%)
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265,000 Alkermes, Inc. (a) $4,452,000
180,000 Biogen Idec Inc. (a) 7,106,400
550,000 Cytokinetics, Incorporated (a) 4,477,000
365,000 Genentech, Inc. (a) 30,736,650
400,000 MedImmune, Inc. (a) 13,460,000
120,000 Millennium Pharmaceuticals, Inc. (a) 1,119,600
1,300,000 Pfizer Inc 32,461,000
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(COST $55,362,059) 93,812,650
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MEDICAL INSTRUMENTS AND DEVICES (2.1%)
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450,000 Medtronic, Inc. (COST $10,483,716) 24,129,000
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(COST $65,845,775) 117,941,650
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MISCELLANEOUS (2.9%)
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Other (b) (COST $31,404,835) 32,768,000
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OIL & NATURAL GAS (INCLUDING SERVICES) (31.4%)
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665,000 Apache Corporation 50,021,300
1,340,000 Devon Energy Corporation 91,977,600
600,000 EOG Resources, Inc. 44,940,000
440,000 Halliburton Company 30,148,800
750,000 Patterson-UTI Energy, Inc. 27,060,000
791,300 Talisman Energy Inc. 38,647,092
330,000 Total S.A. ADR 44,820,600
425,000 Weatherford International Ltd. 29,180,500
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(COST $192,474,120) 356,795,892
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RETAIL TRADE (17.1%)
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700,000 Costco Wholesale Corporation 30,163,000
750,000 Dollar General Corporation 13,755,000
1,920,000 The Home Depot, Inc. (c) 73,228,800
2,500,000 The TJX Companies, Inc. 51,200,000
575,000 Wal-Mart Stores, Inc. 25,196,500
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(COST $82,946,439) 193,543,300
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SEMICONDUCTORS (0.7%)
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491,500 Brooks Automation, Inc. (a) 6,551,695
197,000 EMCORE Corporation (a) 1,205,640
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(COST $9,890,144) 7,757,335
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SPECIAL HOLDINGS (a) (d) (NOTE 2) (0.0%)
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144,000 Silicon Genesis Corporation 1,440
546,000 Standard MEMS, Inc. Series A Convertible Preferred -
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(COST $6,009,720) 1,440 (e)
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TECHNOLOGY (2.3%)
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1,900,000 Xerox Corporation (a) (COST $25,689,854) 25,935,000
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TOTAL COMMON STOCKS (114.3%) (COST $731,462,235) 1,296,977,226
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Principal Amount CORPORATE NOTE
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CONSUMER PRODUCTS AND SERVICES (2.9%)
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$35,000,000 General Motors Nova Scotia Finance Company
6.85% Guaranteed due 10/15/08 (COST $32,960,009) 32,637,500
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STATEMENT OF INVESTMENTS September 30, 2005 (Unaudited) - continued
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General American Investors
Value
Shares SHORT-TERM SECURITY AND OTHER ASSETS (note 1)
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4,405,559 SSgA Prime Money Market Fund (0.4%) (COST $4,405,559) $4,405,559
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TOTAL INVESTMENTS (f) (117.6%) (COST $768,827,803) 1,334,020,285
Cash, receivables and other assets less liabilities (0.0%) 399,826
PREFERRED STOCK (-17.6%) (200,000,000)
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NET ASSETS APPLICABLE TO COMMON STOCK (100%) $1,134,420,111
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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.
(e) Fair value of each holding in the opinion of the directors.
(f) At September 30, 2005: (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 $596,380,917, (3) aggregate gross unrealized depreciation
was $31,188,435, and (4) net unrealized appreciation was $565,192,482.
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STATEMENT OF CALL OPTIONS WRITTEN September 30, 2005 (Unaudited)
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General American Investors
Contracts Value
(100 shares each) COMMON STOCK/EXPIRATION DATE/EXERCISE PRICE (note 1)
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OIL AND NATURAL GAS (INCLUDING SERVICES)
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267 Devon Energy Corporation/January '06/$55.00 $405,840
100 Devon Energy Corporation/January '06/$60.00 111,000
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TOTAL OPTIONS (PREMIUMS RECEIVED $196,208) $516,840
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(see notes to financial statements)
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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 written options) 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. 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.
2. RESTRICTED SECURITIES
DATE VALUE
ACQUIRED COST (NOTE 1)
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Silicon Genesis Corporation 2/16/01 $3,006,720 $1,440
Standard MEMS, Inc. Series A Convertible Preferred 12/17/99 3,003,000 -
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Total $6,009,720 $1,440
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ITEM 2. CONTROLS AND PROCEDURES.
Conclusions of principal officers concerning controls and procedures
(a) As of October 12, 2005, 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: October 31, 2005
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 31, 2005
By: /s/ Eugene S. Stark
Eugene S. Stark
Vice-President, Administration
(Principal Financial Officer)
Date: October 31, 2005