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ADAMS
DIVERSIFIED EQUITY
FUND
 
​
FIRST QUARTER REPORT
MARCH 31, 2021
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GET THE LATEST NEWS AND INFORMATION
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​
Letter to Shareholders
​
Dear Fellow Shareholders,
Every new year brings with it the opportunity for a fresh start, resolutions for change, and hope for the future. No year in recent history has held greater expectations than 2021. We all hope to put the pandemic behind us and get back to normal.
The year began with a new President in the White House and multiple vaccines already starting to be distributed. As the quarter progressed, we made significant strides towards vaccinating the most vulnerable. While we are moving closer to a return to normalcy as the availability of vaccines continues to grow, new COVID-19 variants threaten to slow progress.
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Financials, Industrials, and Health Care were the primary contributors to our relative performance.
​
The economy continued to show signs of recovering as employers added more jobs in the first quarter and the unemployment rate declined to 6.0%. In February, consumer sentiment rose to its highest level since March 2020, when the COVID-19 shutdowns were just beginning. Over the past year, household savings have grown significantly and should begin to flow through the economy as it reopens.
The passage of a $1.9 trillion stimulus package and a commitment of continued support from the Federal Reserve helped drive the stock market higher. The S&P 500 ended the quarter up 6.2% and our fund rose 5.8% on net asset value. Improved growth prospects pushed yields on 10-year Treasury notes higher and raised some concerns that the size of the stimulus could lead to higher inflation.
After a strong 2020 for growth stocks, the market saw a rotation out of the Technology sector and into cyclical sectors such as Energy and Financials, which tend to do well in a recovering economy. These two sectors generated the highest absolute returns for the S&P in the quarter, increasing 30.9% and 16.0%, respectively.
For our Fund, Financials, Industrials, and Health Care were the primary contributors to our relative performance, while Technology and Consumer Staples detracted the most.
Our investments in Financials rose 19.9%, making the sector the largest contributor to our relative performance. We were overweight bank stocks, which benefited from the rising 10-year bond yield and the rotation into value stocks.
1​
​
Letter to Shareholders (continued)
​
Bank of America, our largest active weight in banks, returned 28.3%. Our holdings in credit sensitive companies, such as Capital One Financial, generated strong returns as concerns about consumers’ ability to repay credit card debt subsided. Our position in MetLife, a life insurance company, rose 30.7%. The company is a direct beneficiary of higher interest rates and has streamlined and simplified its business model to focus on profitable growth.
Our Industrials holdings also contributed positively to our performance, increasing 13.8%. Cyclical stocks, which are the most sensitive to changes in economic growth, have done well this year. Our investments in United Rentals (+42.0%) and Caterpillar (+28.1%) were standouts. Kansas City Southern, the railroad operator, agreed to be acquired by Canadian Pacific, which drove the stock up 29.9%. During the quarter, we increased our cyclical exposure by adding Alaska Air, a domestic airline, to our portfolio. We expect domestic and leisure travel to resume sooner than international and business travel and view Alaska Air as well-positioned to capitalize on the pent-up demand for travel.
The Technology sector was challenged this quarter due to a rotation out of companies that benefited from the stay-at-home orders and rising interest rates, which negatively impact stocks with high price-to-earnings ratios. Our Technology investments increased 0.8%, compared to a 2.0% return for the benchmark. During the quarter, we added Micron Technology, a manufacturer of memory semiconductors. With rising demand and limited supply, we expect Micron to benefit from higher memory pricing and margins, which should lead to better-than-expected returns. We also added Fair Isaac to our portfolio. In addition to a large software business, the company owns the credit scoring business FICO, which accounts for 40% of revenue and is the primary driver of its profitability. We saw the stock as attractively valued and see room for meaningful growth for both of its businesses.
For the three months ended March 31, 2021, the total return on the Fund’s net asset value (“NAV”) per share (with dividends and capital gains reinvested) was 5.8%. This compares to a 6.2% total return for the S&P 500 and a 6.4% total return for the Lipper Large-Cap Core Funds Average over the same time period. The total return on the market price of the Fund’s shares for the period was 5.9%.
For the twelve months ended March 31, 2021, the Fund’s total return on NAV was 53.4%. Comparable figures for the S&P 500 and Lipper Large-Cap Core Funds Average were 56.4% and 54.8%, respectively. The Fund’s total return on market price was 53.9%.
During the quarter, the Fund paid distributions to shareholders of  $5.6 million, or $.05 per share, consisting of $.02 net investment income and $.02 long-term capital gain realized in 2020, and $.01 net investment income realized in 2021.
2​
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Letter to Shareholders (continued)
​
On April 15, 2021, an additional net investment income distribution of  $.05 per share was declared for payment on June 1, 2021. These constitute the first two payments toward our annual 6% minimum distribution rate commitment.
Reflecting on the past 12 months of living through a global pandemic, we find ourselves humbled yet hopeful as vaccines have brought light at the end of tunnel. As we anniversary one year working remotely, I want to express my deep gratitude and appreciation to the entire Adams Funds team. In the face of much uncertainty, everyone has worked incredibly hard to adapt to these circumstances and to continue to perform at the high level our shareholders expect. Throughout this time, we are reminded of the importance of focusing on what is within our control. For us, that is maintaining a disciplined investment approach. As always, we thank you for investing with us and do not take your trust for granted.
By order of the Board of Directors,
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Mark E. Stoeckle
Chief Executive Officer & President
April 15, 2021
3
​
Summary Financial Information
​
(unaudited)
​ ​ ​
2021
​ ​
2020
​
At March 31: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Net asset value per share ​ ​ ​ $ 21.16 ​ ​ ​ ​ $ 14.64 ​ ​
Market price per share ​ ​ ​ $ 18.26 ​ ​ ​ ​ $ 12.59 ​ ​
Shares outstanding ​ ​ ​ ​ 111,027,037 ​ ​ ​ ​ ​ 108,750,795 ​ ​
Total net assets ​ ​ ​ $ 2,348,986,742 ​ ​ ​ ​ $ 1,591,765,312 ​ ​
Average net assets ​ ​ ​ $ 2,259,091,039 ​ ​ ​ ​ $ 1,820,537,084 ​ ​
Unrealized appreciation on investments ​ ​ ​ $ 955,772,294 ​ ​ ​ ​ $ 312,309,428 ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
For the three months ended March 31: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Net investment income ​ ​ ​ $ 3,485,518 ​ ​ ​ ​ $ 5,451,601 ​ ​
Net realized gain (loss) ​ ​ ​ $ 125,404,799 ​ ​ ​ ​ $ 49,396,647 ​ ​
Cost of shares repurchased ​ ​ ​ $ – ​ ​ ​ ​ $ 1,328,103 ​ ​
Shares repurchased ​ ​ ​ ​ – ​ ​ ​ ​ ​ 114,792 ​ ​
Total return (based on market price) ​ ​ ​ ​ 5.9% ​ ​ ​ ​ ​ -19.9% ​ ​
Total return (based on net asset value) ​ ​ ​ ​ 5.8% ​ ​ ​ ​ ​ -18.1% ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Key ratios: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Expenses to average net assets* ​ ​ ​ ​ 0.70% ​ ​ ​ ​ ​ 0.74% ​ ​
Net investment income to average net assets* ​ ​ ​ ​ 0.63% ​ ​ ​ ​ ​ 1.20% ​ ​
Portfolio turnover* ​ ​ ​ ​ 81.6% ​ ​ ​ ​ ​ 81.2% ​ ​
Net cash & short-term investments to net assets ​ ​ ​ ​ 0.4% ​ ​ ​ ​ ​ 0.8% ​ ​
​
*
Annualized
​
Ten Largest Equity Portfolio Holdings
​
March 31, 2021
(unaudited)
​ ​ ​
Market Value
​ ​
Percent
of Net Assets
​
Microsoft Corporation ​ ​ ​ $ 145,729,437 ​ ​ ​ ​ ​ 6.2% ​ ​
Apple Inc. ​ ​ ​ ​ 130,138,610 ​ ​ ​ ​ ​ 5.5 ​ ​
Amazon.com, Inc. ​ ​ ​ ​ 98,082,336 ​ ​ ​ ​ ​ 4.2 ​ ​
Alphabet Inc. Class A ​ ​ ​ ​ 93,638,408 ​ ​ ​ ​ ​ 4.0 ​ ​
Facebook, Inc. Class A ​ ​ ​ ​ 55,872,341 ​ ​ ​ ​ ​ 2.4 ​ ​
UnitedHealth Group Incorporated ​ ​ ​ ​ 49,150,447 ​ ​ ​ ​ ​ 2.1 ​ ​
JPMorgan Chase & Co. ​ ​ ​ ​ 45,775,561 ​ ​ ​ ​ ​ 2.0 ​ ​
Bank of America Corp. ​ ​ ​ ​ 44,431,596 ​ ​ ​ ​ ​ 1.9 ​ ​
Berkshire Hathaway Inc. Class B ​ ​ ​ ​ 43,327,712 ​ ​ ​ ​ ​ 1.8 ​ ​
Thermo Fisher Scientific Inc. ​ ​ ​ ​ 40,617,820 ​ ​ ​ ​ ​ 1.7 ​ ​
​ ​ ​ $ 746,764,268 ​ ​ ​ ​ ​ 31.8% ​ ​
4​
​
Schedule of Investments
​
March 31, 2021
(unaudited)
​ ​ ​
Shares
 ​ ​
Value (a)
 ​
Common Stocks — 99.6% ​
Communication Services — 11.0%
 ​
Activision Blizzard, Inc.
 ​ ​ ​ ​ 126,000 ​ ​ ​ ​ $ 11,718,000 ​ ​
Alphabet Inc. Class A (b)
 ​ ​ ​ ​ 45,400 ​ ​ ​ ​ ​ 93,638,408 ​ ​
AT&T Inc.
 ​ ​ ​ ​ 237,882 ​ ​ ​ ​ ​ 7,200,688 ​ ​
Comcast Corporation Class A
 ​ ​ ​ ​ 710,700 ​ ​ ​ ​ ​ 38,455,977 ​ ​
Facebook, Inc. Class A (b)
 ​ ​ ​ ​ 189,700 ​ ​ ​ ​ ​ 55,872,341 ​ ​
Netflix, Inc. (b)
 ​ ​ ​ ​ 25,331 ​ ​ ​ ​ ​ 13,214,169 ​ ​
T-Mobile US, Inc. (b)
 ​ ​ ​ ​ 101,500 ​ ​ ​ ​ ​ 12,716,935 ​ ​
Walt Disney Company
​ ​ ​ ​ 132,700 ​ ​ ​ ​ ​ 24,485,804 ​ ​
​ ​ ​ ​ ​ 257,302,322 ​ ​
Consumer Discretionary — 11.7%
 ​
Amazon.com, Inc. (b)
 ​ ​ ​ ​ 31,700 ​ ​ ​ ​ ​ 98,082,336 ​ ​
Chipotle Mexican Grill, Inc. (b)
 ​ ​ ​ ​ 10,700 ​ ​ ​ ​ ​ 15,202,774 ​ ​
General Motors Company (b)
 ​ ​ ​ ​ 196,300 ​ ​ ​ ​ ​ 11,279,398 ​ ​
Hilton Worldwide Holdings, Inc. (b)
 ​ ​ ​ ​ 114,400 ​ ​ ​ ​ ​ 13,833,248 ​ ​
Home Depot, Inc.
 ​ ​ ​ ​ 27,300 ​ ​ ​ ​ ​ 8,333,325 ​ ​
Lowe’s Companies, Inc.
 ​ ​ ​ ​ 81,600 ​ ​ ​ ​ ​ 15,518,688 ​ ​
O’Reilly Automotive, Inc. (b)
 ​ ​ ​ ​ 29,700 ​ ​ ​ ​ ​ 15,065,325 ​ ​
Target Corporation
 ​ ​ ​ ​ 144,300 ​ ​ ​ ​ ​ 28,581,501 ​ ​
Tesla Motors, Inc. (b)
 ​ ​ ​ ​ 36,600 ​ ​ ​ ​ ​ 24,446,238 ​ ​
TJX Companies, Inc.
 ​ ​ ​ ​ 280,700 ​ ​ ​ ​ ​ 18,568,305 ​ ​
Ulta Beauty, Inc. (b)
 ​ ​ ​ ​ 37,700 ​ ​ ​ ​ ​ 11,655,709 ​ ​
V.F. Corporation
 ​ ​ ​ ​ 187,400 ​ ​ ​ ​ ​ 14,977,008 ​ ​
​ ​ ​ ​ ​ 275,543,855 ​ ​
Consumer Staples — 6.1%
 ​
Coca-Cola Company
 ​ ​ ​ ​ 268,200 ​ ​ ​ ​ ​ 14,136,822 ​ ​
Constellation Brands, Inc. Class A
 ​ ​ ​ ​ 52,400 ​ ​ ​ ​ ​ 11,947,200 ​ ​
Costco Wholesale Corporation
 ​ ​ ​ ​ 53,000 ​ ​ ​ ​ ​ 18,681,440 ​ ​
Lamb Weston Holdings, Inc.
 ​ ​ ​ ​ 229,800 ​ ​ ​ ​ ​ 17,804,904 ​ ​
Monster Beverage Corporation (b)
 ​ ​ ​ ​ 160,900 ​ ​ ​ ​ ​ 14,656,381 ​ ​
PepsiCo, Inc.
 ​ ​ ​ ​ 78,800 ​ ​ ​ ​ ​ 11,146,260 ​ ​
Philip Morris International Inc.
 ​ ​ ​ ​ 309,700 ​ ​ ​ ​ ​ 27,482,778 ​ ​
Post Holdings, Inc. (b)
 ​ ​ ​ ​ 117,000 ​ ​ ​ ​ ​ 12,369,240 ​ ​
Procter & Gamble Company
 ​ ​ ​ ​ 115,350 ​ ​ ​ ​ ​ 15,621,851 ​ ​
​ ​ ​ ​ 143,846,876 ​ ​
Energy — 3.2%
 ​
Adams Natural Resources Fund, Inc. (c)
 ​ ​ ​ ​ 2,186,774 ​ ​ ​ ​ ​ 32,167,446 ​ ​
ConocoPhillips
 ​ ​ ​ ​ 314,800 ​ ​ ​ ​ ​ 16,674,956 ​ ​
Hess Corporation
 ​ ​ ​ ​ 190,800 ​ ​ ​ ​ ​ 13,501,008 ​ ​
Schlumberger N.V.
 ​ ​ ​ ​ 489,900 ​ ​ ​ ​ ​ 13,320,381 ​ ​
​ ​ ​ ​ 75,663,791 ​ ​
5
​
Schedule of Investments (continued)
​
March 31, 2021
(unaudited)
​ ​ ​
Shares
 ​ ​
Value (a)
 ​
Financials — 11.7%
 ​
Bank of America Corp.
 ​ ​ ​ ​ 1,148,400 ​ ​ ​ ​ $ 44,431,596 ​ ​
Berkshire Hathaway Inc. Class B (b)
 ​ ​ ​ ​ 169,600 ​ ​ ​ ​ ​ 43,327,712 ​ ​
Capital One Financial Corporation
 ​ ​ ​ ​ 185,200 ​ ​ ​ ​ ​ 23,562,996 ​ ​
Intercontinental Exchange, Inc.
 ​ ​ ​ ​ 94,800 ​ ​ ​ ​ ​ 10,587,264 ​ ​
JPMorgan Chase & Co.
 ​ ​ ​ ​ 300,700 ​ ​ ​ ​ ​ 45,775,561 ​ ​
MetLife, Inc.
 ​ ​ ​ ​ 521,400 ​ ​ ​ ​ ​ 31,695,906 ​ ​
Morgan Stanley
 ​ ​ ​ ​ 413,800 ​ ​ ​ ​ ​ 32,135,708 ​ ​
T. Rowe Price Group
 ​ ​ ​ ​ 106,700 ​ ​ ​ ​ ​ 18,309,720 ​ ​
Wells Fargo & Company
 ​ ​ ​ ​ 665,700 ​ ​ ​ ​ ​ 26,008,899 ​ ​
​ ​ ​ ​ ​ 275,835,362 ​ ​
Health Care — 13.2%
 ​
Abbott Laboratories
 ​ ​ ​ ​ 256,400 ​ ​ ​ ​ ​ 30,726,976 ​ ​
AbbVie, Inc.
 ​ ​ ​ ​ 240,900 ​ ​ ​ ​ ​ 26,070,198 ​ ​
Alexion Pharmaceuticals, Inc. (b)
 ​ ​ ​ ​ 91,200 ​ ​ ​ ​ ​ 13,945,392 ​ ​
AmerisourceBergen Corporation
 ​ ​ ​ ​ 155,600 ​ ​ ​ ​ ​ 18,371,692 ​ ​
Bristol-Myers Squibb Company
 ​ ​ ​ ​ 270,300 ​ ​ ​ ​ ​ 17,064,039 ​ ​
Centene Corporation (b)
 ​ ​ ​ ​ 134,800 ​ ​ ​ ​ ​ 8,615,068 ​ ​
CVS Health Corporation
 ​ ​ ​ ​ 251,800 ​ ​ ​ ​ ​ 18,942,914 ​ ​
Edwards Lifesciences Corporation (b)
 ​ ​ ​ ​ 186,300 ​ ​ ​ ​ ​ 15,582,132 ​ ​
Eli Lilly and Company
 ​ ​ ​ ​ 132,000 ​ ​ ​ ​ ​ 24,660,240 ​ ​
IDEXX Laboratories, Inc. (b)
 ​ ​ ​ ​ 13,800 ​ ​ ​ ​ ​ 6,752,478 ​ ​
Johnson & Johnson
 ​ ​ ​ ​ 145,400 ​ ​ ​ ​ ​ 23,896,490 ​ ​
Thermo Fisher Scientific Inc.
 ​ ​ ​ ​ 89,000 ​ ​ ​ ​ ​ 40,617,820 ​ ​
UnitedHealth Group Incorporated
 ​ ​ ​ ​ 132,100 ​ ​ ​ ​ ​ 49,150,447 ​ ​
Vertex Pharmaceuticals Incorporated (b)
 ​ ​ ​ ​ 71,200 ​ ​ ​ ​ ​ 15,300,168 ​ ​
​ ​ ​ ​ ​ 309,696,054 ​ ​
Industrials — 9.1%
 ​
Alaska Air Group, Inc. (b)
 ​ ​ ​ ​ 179,200 ​ ​ ​ ​ ​ 12,402,432 ​ ​
Boeing Company (b)
 ​ ​ ​ ​ 97,800 ​ ​ ​ ​ ​ 24,911,616 ​ ​
Carrier Global Corporation
 ​ ​ ​ ​ 392,600 ​ ​ ​ ​ ​ 16,575,572 ​ ​
Caterpillar Inc.
 ​ ​ ​ ​ 126,800 ​ ​ ​ ​ ​ 29,401,116 ​ ​
Honeywell International Inc.
 ​ ​ ​ ​ 127,800 ​ ​ ​ ​ ​ 27,741,546 ​ ​
Huntington Ingalls Industries, Inc.
 ​ ​ ​ ​ 64,000 ​ ​ ​ ​ ​ 13,174,400 ​ ​
Kansas City Southern
 ​ ​ ​ ​ 48,300 ​ ​ ​ ​ ​ 12,747,336 ​ ​
Knight-Swift Transportation Holdings Inc.
 ​ ​ ​ ​ 254,000 ​ ​ ​ ​ ​ 12,214,860 ​ ​
Parker-Hannifin Corporation
 ​ ​ ​ ​ 73,500 ​ ​ ​ ​ ​ 23,184,105 ​ ​
Raytheon Technologies Corporation
 ​ ​ ​ ​ 209,800 ​ ​ ​ ​ ​ 16,211,246 ​ ​
Union Pacific Corporation
 ​ ​ ​ ​ 51,700 ​ ​ ​ ​ ​ 11,395,197 ​ ​
United Rentals, Inc. (b)
 ​ ​ ​ ​ 43,800 ​ ​ ​ ​ ​ 14,423,778 ​ ​
​ ​ ​ ​ ​ 214,383,204 ​ ​
6​
​
Schedule of Investments (continued)
​
March 31, 2021
(unaudited)
​ ​ ​
Shares
 ​ ​
Value (a)
 ​
Information Technology — 26.3%
 ​
Accenture plc Class A
 ​ ​ ​ ​ 39,500 ​ ​ ​ ​ $ 10,911,875 ​ ​
Adobe Inc. (b)
 ​ ​ ​ ​ 55,800 ​ ​ ​ ​ ​ 26,525,646 ​ ​
Amphenol Corporation Class A
 ​ ​ ​ ​ 219,800 ​ ​ ​ ​ ​ 14,500,206 ​ ​
Apple Inc.
 ​ ​ ​ ​ 1,065,400 ​ ​ ​ ​ ​ 130,138,610 ​ ​
Arista Networks, Inc. (b)
 ​ ​ ​ ​ 44,700 ​ ​ ​ ​ ​ 13,494,483 ​ ​
CDW Corp.
 ​ ​ ​ ​ 66,900 ​ ​ ​ ​ ​ 11,088,675 ​ ​
Cisco Systems, Inc.
 ​ ​ ​ ​ 271,900 ​ ​ ​ ​ ​ 14,059,949 ​ ​
Fair Isaac Corporation (b)
 ​ ​ ​ ​ 24,600 ​ ​ ​ ​ ​ 11,956,830 ​ ​
Intuit Inc.
 ​ ​ ​ ​ 52,100 ​ ​ ​ ​ ​ 19,957,426 ​ ​
Lam Research Corporation
 ​ ​ ​ ​ 44,600 ​ ​ ​ ​ ​ 26,547,704 ​ ​
Mastercard Incorporated Class A
 ​ ​ ​ ​ 110,500 ​ ​ ​ ​ ​ 39,343,525 ​ ​
Microchip Technology Incorporated
 ​ ​ ​ ​ 113,200 ​ ​ ​ ​ ​ 17,570,904 ​ ​
Micron Technology, Inc. (b)
 ​ ​ ​ ​ 276,300 ​ ​ ​ ​ ​ 24,372,423 ​ ​
Microsoft Corporation
 ​ ​ ​ ​ 618,100 ​ ​ ​ ​ ​ 145,729,437 ​ ​
NVIDIA Corporation
 ​ ​ ​ ​ 58,100 ​ ​ ​ ​ ​ 31,021,333 ​ ​
Oracle Corporation
 ​ ​ ​ ​ 122,200 ​ ​ ​ ​ ​ 8,574,774 ​ ​
PayPal Holdings Inc. (b)
 ​ ​ ​ ​ 42,200 ​ ​ ​ ​ ​ 10,247,848 ​ ​
QUALCOMM Incorporated
 ​ ​ ​ ​ 157,500 ​ ​ ​ ​ ​ 20,882,925 ​ ​
Visa Inc. Class A
 ​ ​ ​ ​ 189,600 ​ ​ ​ ​ ​ 40,144,008 ​ ​
​ ​ ​ ​ ​ 617,068,581 ​ ​
Materials — 2.4%
 ​
Air Products and Chemicals, Inc.
 ​ ​ ​ ​ 15,900 ​ ​ ​ ​ ​ 4,473,306 ​ ​
DuPont de Nemours, Inc.
 ​ ​ ​ ​ 177,700 ​ ​ ​ ​ ​ 13,732,656 ​ ​
LyondellBasell Industries N.V.
 ​ ​ ​ ​ 114,800 ​ ​ ​ ​ ​ 11,944,940 ​ ​
Sherwin-Williams Company
 ​ ​ ​ ​ 20,200 ​ ​ ​ ​ ​ 14,907,802 ​ ​
Steel Dynamics, Inc.
 ​ ​ ​ ​ 235,200 ​ ​ ​ ​ ​ 11,938,752 ​ ​
​ ​ ​ ​ ​ 56,997,456 ​ ​
Real Estate — 2.3%
 ​
CBRE Group, Inc. Class A (b)
 ​ ​ ​ ​ 126,000 ​ ​ ​ ​ ​ 9,967,860 ​ ​
Equinix, Inc.
 ​ ​ ​ ​ 19,600 ​ ​ ​ ​ ​ 13,319,964 ​ ​
Prologis, Inc.
 ​ ​ ​ ​ 92,800 ​ ​ ​ ​ ​ 9,836,800 ​ ​
Simon Property Group, Inc.
 ​ ​ ​ ​ 91,900 ​ ​ ​ ​ ​ 10,455,463 ​ ​
Weyerhaeuser Company
 ​ ​ ​ ​ 292,700 ​ ​ ​ ​ ​ 10,420,120 ​ ​
​ ​ ​ ​ ​ 54,000,207 ​ ​
Utilities — 2.6%
 ​
CMS Energy Corporation
 ​ ​ ​ ​ 180,800 ​ ​ ​ ​ ​ 11,068,576 ​ ​
Edison International
 ​ ​ ​ ​ 198,100 ​ ​ ​ ​ ​ 11,608,660 ​ ​
NextEra Energy, Inc.
 ​ ​ ​ ​ 124,100 ​ ​ ​ ​ ​ 9,383,201 ​ ​
Public Service Enterprise Group Incorporated
 ​ ​ ​ ​ 233,900 ​ ​ ​ ​ ​ 14,083,119 ​ ​
Southern Company
 ​ ​ ​ ​ 222,800 ​ ​ ​ ​ ​ 13,849,248 ​ ​
​ ​ ​ ​ ​ 59,992,804 ​ ​
​
7
​
Schedule of Investments (continued)
​
March 31, 2021
(unaudited)
​ ​ ​
Shares
 ​ ​
Value (a)
 ​
Total Common Stocks ​
(Cost $1,384,876,617)
 ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 2,340,330,512
Other Investments — 0.0% ​
Financials — 0.0%
 ​
Adams Funds Advisers, LLC (b)(d)
 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
(Cost $150,000)
 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 466,000
Short-Term Investments — 0.4% ​
Money Market Funds — 0.4%
 ​
Morgan Stanley Institutional Liquidity Funds Prime Portfolio, 0.06% (e)
 ​ ​ ​ ​ 6,310,495 ​ ​ ​ ​ ​ 6,311,757
Northern Institutional Treasury Portfolio, 0.01% (e)
 ​ ​ ​ ​ 2,037,081 ​ ​ ​ ​ ​ 2,037,081
Total Short-Term Investments ​
(Cost $8,346,439)
 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 8,348,838
Total — 100.0% ​
(Cost $1,393,373,056)
 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2,349,145,350
Other Assets Less Liabilities — (0.0)% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (158,608 )
Net Assets — 100.0%
 ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 2,348,986,742
​
​
(a)
Common stocks are listed on the New York Stock Exchange or NASDAQ and are valued at the last reported sale price on the day of valuation.
​
(b)
Presently non-dividend paying.
​
(c)
Non-controlled affiliate, a closed-end sector fund, registered as an investment company under the Investment Company Act of 1940.
​
(d)
Controlled affiliate valued using fair value procedures.
​
(e)
Rate presented is as of period-end and represents the annualized yield earned over the previous seven days.
​
Information regarding transactions in equity securities during the quarter can be found on our website at: www.adamsfunds.com.
 
 
​
​
Disclaimers​
This report contains “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Several factors that could materially affect the Fund’s actual results are the performance of the portfolio of stocks held by the Fund, the conditions in the U.S. and international financial markets, the price at which shares of the Fund will trade in the public markets, and other factors discussed in the Fund’s periodic filings with the Securities and Exchange Commission.​
This report is transmitted to the shareholders of the Fund for their information. It is not a prospectus, circular or representation intended for use in the purchase or sale of shares of the Fund or of any securities mentioned in the report. The rates of return will vary and the principal value of an investment will fluctuate. Shares, if sold, may be worth more or less than their original cost. Past performance is no guarantee of future investment results.
8​
​
Adams Diversified Equity Fund, Inc.
​
Board of Directors
​
Enrique R. Arzac(3)(4)
 ​ ​ Roger W. Gale(2)(3) ​ ​
Kathleen T. McGahran(1)(5)
 ​
​ Kenneth J. Dale(1)(2)(4) ​ ​ Mary Chris Jammet (4) ​ ​ Craig R. Smith(3)(4) ​
​
Frederic A. Escherich(1)(2)(4)
 ​ ​
Lauriann C. Kloppenburg(1)(2)(3)
 ​ ​ Mark E. Stoeckle (1) ​
​
(1)
Member of Executive Committee
​
(2)
Member of Audit Committee
​
(3)
Member of Compensation Committee
​
(4)
Member of Nominating and Governance Committee
​
(5)
Chair of the Board
​
Officers
​ Mark E. Stoeckle ​ ​
Chief Executive Officer and President
 ​
​ James P. Haynie, CFA ​ ​
Executive Vice President
 ​
​ D. Cotton Swindell, CFA ​ ​
Executive Vice President
 ​
​ Brian S. Hook, CFA, CPA ​ ​
Vice President, Chief Financial Officer and Treasurer
 ​
​ Janis F. Kerns ​ ​
General Counsel, Secretary and Chief Compliance Officer
 ​
​ Gregory W. Buckley ​ ​
Vice President—Research
 ​
​ Xuying Chang, CFA ​ ​
Vice President—Research
 ​
​ Steven R. Crain, CFA ​ ​
Vice President—Research
 ​
​ Michael A. Kijesky, CFA ​ ​
Vice President—Research
 ​
​ Michael E. Rega, CFA ​ ​
Vice President—Research
 ​
​ David R. Schiminger, CFA ​ ​
Vice President—Research
 ​
​ Jeffrey R. Schollaert, CFA ​ ​
Vice President—Research
 ​
​
Christine M. Sloan, CPA
​ ​ Assistant Treasurer and Director of Human Resources ​
​
500 East Pratt Street, Suite 1300, Baltimore, MD 21202
410.752.5900   800.638.2479
Website: www.adamsfunds.com
Email: investorrelations@adamsfunds.com
Tickers: ADX (NYSE), XADEX (NASDAQ)
Counsel: Norton Rose Fulbright US LLP
Independent Registered Public Accounting Firm: PricewaterhouseCoopers LLP
Custodian of Securities: The Northern Trust Company
Transfer Agent & Registrar: American Stock Transfer & Trust Company, LLC
Stockholder Relations Department
6201 15th Avenue
Brooklyn, NY 11219
(877) 260-8188
Website: www.astfinancial.com
Email: info@astfinancial.com