0001387131-23-006146.txt : 20230508 0001387131-23-006146.hdr.sgml : 20230508 20230508125511 ACCESSION NUMBER: 0001387131-23-006146 CONFORMED SUBMISSION TYPE: NPORT-P PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20230331 FILED AS OF DATE: 20230508 DATE AS OF CHANGE: 20230508 PERIOD START: 20231231 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GENERAL AMERICAN INVESTORS CO INC CENTRAL INDEX KEY: 0000040417 IRS NUMBER: 135098450 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: NPORT-P SEC ACT: 1940 Act SEC FILE NUMBER: 811-00041 FILM NUMBER: 23896806 BUSINESS ADDRESS: STREET 1: 530 FIFTH AVE STREET 2: 26TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10036 BUSINESS PHONE: 2129168400 MAIL ADDRESS: STREET 1: 530 FIFTH AVE STREET 2: 26TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10036 NPORT-P 1 primary_doc.xml NPORT-P false 0000040417 XXXXXXXX General American Investors Company, Inc. 811-00041 0000040417 254900MHIF9G7IS1T951 530 Fifth Avenue 26TH FLOOR NEW YORK 10036 2129168400 N/A N/A 2023-12-31 2023-03-31 N 1326416009 208500731 1117915278 7802083 0 0 0 0 0 0 0 0 0 0 0 190117175 0 N Adobe Inc. FU4LY2G4933NH2E1CP29 Common Stock 00724F101 20000 NS USD 7707400 0.69 Long EC CORP US N 1 N N N Agnico Eagle Mines Limited YGE0EUBRF7IJOB3QRX76 Common Stock 008474108 504528 NS USD 25715792.16 2.3 Long EC CORP CA N 1 N N N AIXTRON SE 5299004UJ4D51M25LD67 Common Stock N/A 383364 NS USD 12984129.12 1.16 Long EC CORP DE N 1 N N N Alamos Gold Inc. - Class A 549300TDOX73YGYXE959 Common Stock 011532108 1005438 NS USD 12296506.74 1.1 Long EC CORP CA N 1 N N N Algoma Steel Group Inc. 549300Q5EU337A1XCX27 Common Stock 015658107 970960 NS USD 7845356.8 0.7 Long EC CORP CA N 1 N N N Alphabet Inc. - Class C 5493006MHB84DD0ZWV18 Common Stock 02079K107 429923 NS USD 44711992 4 Long EC CORP US N 1 N N N Amazon.com, Inc. ZXTILKJKG63JELOEG630 Common Stock 023135106 286000 NS USD 29540940 2.64 Long EC CORP US N 1 N N N Angi Inc. 5493003ENY577E6SZL06 Common Stock 00183L102 1437969 NS USD 3264189.63 0.29 Long EC CORP US N 1 N N N Apple Inc. HWUPKR0MPOU8FGXBT394 Common Stock 037833100 321000 NS USD 52932900 4.73 Long EC CORP US N 1 N N N Applied Materials, Inc. 41BNNE1AFPNAZELZ6K07 Common Stock 038222105 61652 NS USD 7572715.16 0.68 Long EC CORP US N 1 N N N Arch Capital Group Ltd. 549300AYR4P8AFKDCE43 Common Stock G0450A105 863403 NS USD 58599161.61 5.24 Long EC CORP BM N 1 N N N ASML Holding N.V. 724500Y6DUVHQD6OXN27 NY Reg Shrs N07059210 79600 NS USD 54184516 4.85 Long EC CORP NL N 1 N N N AT&T Inc. 549300Z40J86GGSTL398 Common Stock 00206R102 446392 NS USD 8593046 0.77 Long EC CORP US N 1 N N N Axis Capital Holdings Limited N/A Common Stock G0692U109 250000 NS USD 13630000 1.22 Long EC CORP BM N 1 N N N BAE Systems PLC 8SVCSVKSGDWMW2QHOH83 Common Stock N/A 799054 NS USD 9685610.56 0.87 Long EC CORP GB N 1 N N N Bath & Body Works Inc. GR3KVMWVCR54YWQNXU90 Common Stock 070830104 214592 NS USD 7849775.36 0.7 Long EC CORP US N 1 UBS Financial Services, Inc. ETYRV6ORNFJB5NONI676 Call Written Bath & Body Works Inc. Bath & Body Works Inc. May 40 Calls Exp 5/19/23 77400 40 USD 2023-05-19 XXXX 146926.64 N N N Berkshire Hathaway Inc. - Class A 5493000C01ZX7D35SD85 Common Stock 084670108 110 NS USD 51216000 4.58 Long EC CORP US N 1 N N N Broadcom Inc. 549300WV6GIDOZJTV909 Common Stock 11135F101 25000 NS USD 16038500 1.43 Long EC CORP US N 1 N N N Cameco Corporation N4BHALMXL3GMZKCUON55 Common Stock 13321L108 619230 NS USD 16205249.1 1.45 Long EC CORP CA N 1 N N N Chevron Corporation N/A Common Stock 166764100 81991 NS USD 13377651.56 1.2 Long EC CORP US N 1 N N N Cisco Systems, Inc. 549300LKFJ962MZ46593 Common Stock 17275R102 500000 NS USD 26137500 2.34 Long EC CORP US N 1 N N N Cleveland-Cliffs Inc. 549300TM2WLI2BJMDD86 Common Stock 185899101 243593 NS USD 4465059.69 0.4 Long EC CORP US N 1 N N N Costco Wholesale Corporation 29DX7H14B9S6O3FD6V18 Common Stock 22160K105 53000 NS USD 26334110 2.36 Long EC CORP US N 1 N N N Danaher Corporation S4BKK9OTCEWQ3YHPFM11 Common Stock 235851102 40010 NS USD 10084120.4 0.9 Long EC CORP US N 1 N N N Eaton Corporation plc 549300VDIGTMXUNT7H71 Common Stock G29183103 86131 NS USD 14757685.54 1.32 Long EC CORP US N 1 N N N Energy Transfer LP MTLVN9N7JE8MIBIJ1H73 MLP 29273V100 1120030 NS USD 13966774.1 1.25 Long EC CORP US N 1 N N N Everest Re Group, Ltd. 549300N24XF2VV0B3570 Common Stock G3223R108 129196 NS USD 46254751.92 4.14 Long EC CORP BM N 1 N N N Expedia Group, Inc. N/A Common Stock 30212P303 208157 NS USD 20197473.71 1.81 Long EC CORP US N 1 N N N Gilead Sciences, Inc. 549300WTZWR07K8MNV44 Common Stock 375558103 119900 NS USD 9948103 0.89 Long EC CORP US N 1 N N N Gulf Coast Ultra Deep Royalty Trust 549300LVVWU3NPP3DF95 Royalty Trst 40222T104 1173370 NS USD 27896.87 0 Long EC CORP US N 1 N N N Hess Corporation UASVRYNXNK17ULIGK870 Common Stock 42809H107 83512 NS USD 11051978.08 0.99 Long EC CORP US N 1 N N N Huntsman Corporation 5299000V56320A7RIQ67 Common Stock 447011107 198248 NS USD 5424065.28 0.49 Long EC CORP US N 1 N N N Intra-Cellular Therapies, Inc. 5299002U2KGF193IJA20 Common Stock 46116X101 260439 NS USD 14102771.85 1.26 Long EC CORP US N 1 N N N JPMorgan Chase & Co. 8I5DZWZKVSZI1NUHU748 Common Stock 46625H100 80000 NS USD 10424800 0.93 Long EC CORP US N 1 N N N M&T Bank Corporation 549300WYXDDBYRASEG81 Common Stock 55261F104 100000 NS USD 11957000 1.07 Long EC CORP US N 1 N N N Merck & Co., Inc. 4YV9Y5M8S0BRK1RP0397 Common Stock 58933Y105 179326 NS USD 19078493.14 1.71 Long EC CORP US N 1 N N N Meta Platforms, Inc. - Class A BQ4BKCS1HXDV9HN80Z93 Common Stock 30303M102 22000 NS USD 4662680 0.42 Long EC CORP US N 1 N N N MetLife, Inc. C4BXATY60WC6XEOZDX54 Common Stock 59156R108 170327 NS USD 9868746.38 0.88 Long EC CORP US N 1 N N N Microsoft Corporation INR2EJN1ERAN0W5ZP974 Common Stock 594918104 215000 NS USD 61984500 5.54 Long EC CORP US N 1 N N N Nelnet, Inc. - Class A 549300T6B0Q52I6OM558 Common Stock 64031N108 243415 NS USD 22367404.35 2 Long EC CORP US N 1 N N N Nestle S.A. KY37LUS27QQX7BB93L28 Common Stock N/A 325000 NS USD 39591780.97 3.54 Long EC CORP CH N 1 N N N Paratek Pharmaceuticals, Inc. 5493007V5QDIWECEYV79 Common Stock 699374302 1914424 NS USD 4862636.96 0.43 Long EC CORP US N 1 N N N PepsiCo, Inc. FJSUNZKFNQ5YPJ5OT455 Common Stock 713448108 140000 NS USD 25522000 2.28 Long EC CORP US N 1 N N N Pfizer Inc. 765LHXWGK1KXCLTFYQ30 Common Stock 717081103 365808 NS USD 14924966.4 1.34 Long EC CORP US N 1 N N N Raytheon Technologies Corporation I07WOS4YJ0N7YRFE7309 Common Stock 75513E101 165000 NS USD 16158450 1.45 Long EC CORP US N 1 N N N Regeneron Pharmaceuticals, Inc. 549300RCBFWIRX3HYQ56 Common Stock 75886F107 15076 NS USD 12387496.92 1.11 Long EC CORP US N 1 N N N Republic Services, Inc. NKNQHM6BLECKVOQP7O46 Common Stock 760759100 524895 NS USD 70976301.9 6.35 Long EC CORP US N 1 N N N T-Mobile US, Inc. 549300QHIJYOHPACPG31 Common Stock 872590104 202348 NS USD 29308084.32 2.62 Long EC CORP US N 1 N N N TJX Companies, Inc./The V167QI9I69W364E2DY52 Common Stock 872540109 525092 NS USD 41146209.12 3.68 Long EC CORP US N 1 N N N Tyler Technologies, Inc. 25490040SMU4Z8LBCW70 Common Stock 902252105 34381 NS USD 12192877.84 1.09 Long EC CORP US N 1 N N N Uber Technologies, Inc. 549300B2FTG34FILDR98 Common Stock 90353T100 400000 NS USD 12680000 1.13 Long EC CORP US N 1 N N N Unilever PLC 549300MKFYEKVRWML317 Common Stock N/A 435000 NS USD 22498112.97 2 Long EC CORP GB N 1 N N N Universal Display Corporation N/A Common Stock 91347P105 58009 NS USD 8998936.17 0.8 Long EC CORP US N 1 N N N Valneva SE 969500DIVIP5VKNW4948 Common Stock N/A 223201 NS USD 1169398.92 0.1 Long EC CORP FR N 1 N N N Valneva SE - ADS 969500DIVIP5VKNW4948 ADR 92025Y103 345000 NS USD 3512100 0.31 Long EC CORP FR N 1 N N N VBI Vaccines, Inc. 52990076U5YRLVGDJE40 Common Stock 91822J103 1877497 NS USD 568881.59 0.05 Long EC CORP US N 1 N N N Venator Materials PLC 549300WFXC4YL5IHX316 Common Stock G9329Z100 874076 NS USD 353825.96 0.03 Long EC CORP GB N 1 N N N Walt Disney Company /The 549300GZKULIZ0WOW665 Common Stock 254687106 111478 NS USD 11162292.14 1 Long EC CORP US N 1 N N N SS Inst. Treas Plus MM Fund TPL 549300PNASLVKQG64331 Open-End Fund 85749Q448 148645467.4 PA USD 148645467.4 13.3 Long CORP US N 1 N N N US Treasury Bill 4.547% Due 06-29-23 254900HROIFWPRGM1V77 US GOVERNMENT 912796ZR3 25000000 PA USD 24718760 2.21 Long STIV UST US N 2 2023-06-29 None 4.547 N N N N N N Steel Dynamics, Inc. 549300HGGKEL4FYTTQ83 Common Stock 858119100 0 NS USD 0 0 Long EC CORP US N 1 UBS Financial Services, Inc. ETYRV6ORNFJB5NONI676 Put Purchased Steel Dynamics, Inc. Steel Dynamics, Inc. May 95 Puts Exp 5/19/23 40000 95 USD 2023-05-19 XXXX -104807.26 N N N 2023-05-04 General American Investors Company, Inc. /s/ Eugene S. Stark Eugene S. Stark Vice-President Administration, CCO, PFO XXXX NPORT-EX 2 gam-nportex_033123.htm SCHEDULE OF INVESTMENTS gam-soi

STATEMENT OF INVESTMENTS March 31, 2023 (Unaudited)

General American Investors

1

 

 

Shares

COMMON STOCKS

Value
(Note 1a)

Communication Services

(9.1%)

Media and Entertainment (5.7%)

429,923

Alphabet Inc. - Class C (a)

$44,711,992

1,437,969

Angi Inc. - Class A (a)

3,264,190

 

22,000

Meta Platforms, Inc. - Class A (a)

4,662,680

 

111,478

The Walt Disney Company (a)

11,162,292

 

(Cost $35,775,205)

63,801,154

 

Telecommunication Services (3.4%)

 

446,392

AT&T Inc.

8,593,046

 

202,348

T-Mobile US, Inc. (a)

29,308,084

 

(Cost $30,395,828)

37,901,130

 

(Cost $66,171,033)

101,702,284

 

Consumer
Discretionary

(8.8%)

Consumer Services (1.8%)

208,157

Expedia Group, Inc. (a)

(Cost $25,343,867)

20,197,474

 

Distribution & Retail (7.0%)

 

286,000

Amazon.com, Inc. (a)

29,540,940

 

214,592

Bath & Body Works, Inc.

7,849,775

 

525,092

The TJX Companies, Inc.

41,146,209

 

(Cost $19,081,917)

78,536,924

 

(Cost $44,425,784)

98,734,398

 

Consumer
Staples

(10.2%)

Distribution & Retail (2.4%)

53,000

Costco Wholesale Corporation

(Cost $1,601,596)

26,334,110

 

Food, Beverage and Tobacco (5.8%)

 

325,000

Nestlé S.A. (Switzerland)

39,591,781

 

140,000

PepsiCo, Inc.

25,522,000

 

(Cost $15,322,831)

65,113,781

 

Household and Personal Products (2.0%)

 

435,000

Unilever PLC (Netherlands/United Kingdom)

(Cost $12,310,109)

22,498,113

 

(Cost $29,234,536)

113,946,004

 

Energy

(4.9%)

619,230

Cameco Corporation (Canada)

16,205,249

81,991

Chevron Corporation

13,377,652

 

1,120,030

Energy Transfer LP

13,966,774

 

1,173,370

Gulf Coast Ultra Deep Royalty Trust

27,897

 

83,512

Hess Corporation

11,051,978

 

(Cost $30,620,605)

54,629,550

 

Financials

Banks (2.0%)

(20.1%)

80,000

JPMorgan Chase & Co.

10,424,800

 

100,000

M&T Bank Corporation

11,957,000

 

(Cost $3,188,933)

22,381,800

 

Financial Services (6.6%)

 

110

Berkshire Hathaway Inc. - Class A (a)(b)

51,216,000

 

243,415

Nelnet, Inc.

22,367,404

 

(Cost $2,968,650)

73,583,404

 

Insurance (11.5%)

 

863,403

Arch Capital Group Ltd. (a) (Bermuda)

58,599,162

 

250,000

Axis Capital Holdings Limited (Bermuda)

13,630,000

 

129,196

Everest Re Group, Ltd. (Bermuda)

46,254,752

 

170,327

MetLife, Inc.

9,868,746

 

(Cost $28,454,112)

128,352,660

 

(Cost $34,611,695)

224,317,864

 

2

 

STATEMENT OF INVESTMENTS March 31, 2023 (Unaudited) - continued

General American Investors

 

Shares

COMMON STOCKS (continued)

Value
(Note 1a)

Health Care

(8.1%)

Pharmaceuticals, Biotechnology and Life Sciences (8.1%)

40,010

Danaher Corporation

$10,084,120

 

119,900

Gilead Sciences, Inc.

9,948,103

 

260,439

Intra-Cellular Therapies, Inc. (a)

14,102,772

 

179,326

Merck & Co., Inc.

19,078,493

 

1,914,424

Paratek Pharmaceuticals, Inc. (a)

4,862,637

 

365,808

Pfizer Inc.

14,924,966

 

15,076

Regeneron Pharmaceuticals, Inc. (a)

12,387,497

 

223,201

Valneva SE (a) (France)

1,169,399

 

345,000

Valneva SE ADR (a) (France)

3,512,100

 

1,877,497

VBI Vaccines, Inc. (a) (Canada)

568,882

 

(Cost $56,866,986)

90,638,969

 

Industrials

(11.1%)

Capital Goods (3.6%)

799,054

BAE Systems plc (United Kingdom)

9,685,611

 

86,131

Eaton Corporation plc (Ireland)

14,757,686

 

165,000

Raytheon Technologies Corporation

16,158,450

 

(Cost $20,676,991)

40,601,747

 

Commercial and Professional Services (6.4%)

 

524,895

Republic Services, Inc.

(Cost $7,346,689)

70,976,302

 

 

Transportation (1.1%)

 

400,000

Uber Technologies, Inc. (a)

(Cost $10,945,394)

12,680,000

 

(Cost $38,969,074)

124,258,049

 

Information

Technology

(23.3%)

Semiconductors and Semiconductor Equipment (8.9%)

383,364

AIXTRON SE (Germany)

12,984,129

61,652

Applied Materials, Inc.

7,572,715

 

79,600

ASML Holding N.V. (Netherlands)

54,184,516

 

25,000

Broadcom Inc.

16,038,500

 

58,009

Universal Display Corporation

8,998,936

 

(Cost $23,000,123)

99,778,796

 

Software and Services (7.3%)

 

20,000

Adobe Inc. (a)

7,707,400

 

215,000

Microsoft Corporation

61,984,500

 

34,381

Tyler Technologies, Inc. (a)

12,192,878

 

(Cost $23,048,837)

81,884,778

 

Technology, Hardware and Equipment (7.1%)

 

321,000

Apple Inc.

52,932,900

 

500,000

Cisco Systems, Inc.

26,137,500

 

(Cost $8,362,996)

79,070,400

 

(Cost $54,411,956)

260,733,974

 

Materials

(5.0%)

504,528

Agnico Eagle Mines Limited (Canada)

25,715,792

1,005,438

Alamos Gold Inc. - Class A (Canada)

12,296,507

 

970,960

Algoma Steel Group Inc. (Canada)

7,845,357

 

243,593

Cleveland-Cliffs Inc. (a)

4,465,060

 

198,248

Huntsman Corporation

5,424,065

 

874,076

Venator Materials PLC (a) (United Kingdom)

353,826

 

(Cost $55,516,071)

56,100,607

 

Miscellaneous

(0.7%)

1,899,750

Other (c)

(Cost $9,827,535)

7,802,083

 

TOTAL COMMON STOCKS (101.3%)

(Cost $420,655,275)

$1,132,863,782

 

3

 

STATEMENT OF INVESTMENTS March 31, 2023 (Unaudited) - continued

General American Investors

(see notes to unaudited financial statements)

 

PURCHASED OPTIONS (a)

Value
(Note 1a)

Put

Contracts

(100 shares each)

Company/Expiration Date/
Exercise Price/Notional

Materials 

400

Steel Dynamics, Inc./May 19, 2023/$95/$3,800,000

(Cost $160,807)

$56,000

(0.0%)

 

Principal

Short-Term Securities

 

$25,000,000

U.S. Treasury Bill due June 29, 2023, 4.5465% (d)

(Cost $24,719,001)

24,718,760

 

 

Shares

 

148,645,467

State Street Institutional Treasury Plus Money Market Fund, Trust Class, 4.63% (e)

(Cost $148,645,467)

148,645,467

 

 

TOTAL SHORT-TERM SECURITIES (15.5%)

(Cost $173,364,468)

173,364,227

 

TOTAL INVESTMENTS (f) (116.8%)

(Cost $594,180,550)

1,306,284,009

OTHER ASSETS IN EXCESS OF LIABILITIES (0.2%)

1,748,444

 

1,308,032,453

PREFERRED STOCK (-17.0%)

(190,117,175

)

NET ASSETS APPLICABLE TO COMMON STOCK (100%)

$1,117,915,278

ADR - American Depository Receipt

(a)Non-income producing security.

(b)50 shares of 110 total shares held as collateral for options written.

(c)Securities which have been held for less than one year, not previously disclosed, and not restricted.

(d)Yield to maturity at purchase.

(e)7-day yield.

(f)At March 31, 2023, the cost of investments and derivatives for Federal income tax purposes was $592,640,174; aggregate gross unrealized appreciation was $736,770,306; aggregate gross unrealized depreciation was $23,270,015; and net unrealized appreciation was $713,500,291.

STATEMENT OF OPTIONS WRITTEN March 31, 2023 (Unaudited)

Call

Contracts

(100 shares each)

Company/Expiration Date/
Exercise Price/Notional

Premiums
Received*

Value
(Note 1a)

Consumer

Discretionary

(0.1%)

774

Bath & Body Works, Inc./May 19, 2023/
$40/$3,096,000

$243,677

$96,750

*The maximum cash outlay if all options are exercised is $3,096,000.

4

 

NOTES TO FINANCIAL STATEMENTS (Unaudited)

General American Investors

1. Significant Accounting Policies and Other Matters – 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.

The accompanying financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) pursuant to the requirements for reporting; Accounting Standards Codification 946, Financial Services – Investment Companies (“ASC 946”), and Regulation S-X.

The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income, expenses, and gains and losses during the reported period. Changes in the economic environment, financial markets, and any other parameters used in determining these estimates could cause actual results to differ, and these differences could be material.

a. 

Security Valuation Equity securities traded on a national securities exchange are valued at the last reported sales price on the last business day of the period. Equity securities reported on the NASDAQ national market are valued at the official closing price on that day. Listed and NASDAQ equity 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. Equity securities traded primarily in foreign markets are valued at the closing price of such securities on their respective exchanges or markets. Corporate debt, domestic and foreign, and U.S. government securities are generally traded in the over-the-counter market rather than on a national securities exchange. The Company utilizes the latest bid prices furnished by independent pricing services with respect to transactions in such securities to determine current market value if maturity date exceeds 60 days. Investments in such securities maturing within 60 days or less are valued at amortized cost. If, after the close of foreign markets, 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.

b. 

Options The Company may purchase and write (sell) exchange traded put and call options on equity securities. The Company purchases put options or writes call options to hedge the value of portfolio investments while it purchases call options and writes put options to obtain market exposure. 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 are reported as a liability on the Statement of Assets and Liabilities. Those that expire unexercised are treated by the Company on the expiration date as realized gains on written option transactions in the Statement of Operations. 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 on written option transactions in the Statement of Operations. If a written 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 on investments in the Statement of Operations. If a written put option is exercised, the premium reduces the cost basis of the securities purchased by the Company and is parenthetically disclosed on the Statement of Assets and Liabilities. 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. For exchange traded options purchased, the Company bears the risk of loss in the amount of the premiums paid plus appreciation in market value should a counterparty fail to perform under the contract. Options written by the Company do not give rise to counterparty risk as options written obligate the Company to perform. The Company has not entered into a master netting agreement with respect to options on equity securities. See Note 4 for option information.

c. 

Security Transactions and Investment Income Security transactions are recorded as of the trade date. Realized gains and losses are determined on the specific identification method. Dividend income and distributions to stockholders are recorded as of the ex-dividend dates. Interest income is recognized daily on the accrual basis, adjusted for the accretion of discounts and amortization of premiums.

5

 

NOTES TO FINANCIAL STATEMENTS (Unaudited) - continued

General American Investors

d. 

Foreign Currency Translation and Transactions Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the exchange rate of such currencies versus U.S. dollars on the date of valuation. Purchases and sales of securities, income and expense items denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date. Events may impact the availability or reliability of foreign exchange rates used to convert the U.S. dollar equivalent value. If such an event occurs, the foreign exchange rate will be valued at fair value using procedures established and approved by the Company’s Board of Directors. The Company does not separately report the effect of changes in foreign exchange rates from changes in market prices on securities held. These changes are combined and included in net realized and unrealized gain or loss on the Statement of Operations.

Realized foreign exchange gains or losses may also arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses may also arise from changes in foreign exchange rates on foreign currency denominated assets and liabilities other than investments in securities held at the end of the reporting period.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. companies as a result of, among other factors, the possibility of political or economic instability or the level of governmental supervision and regulation of foreign securities markets.

e. 

Dividends and Distributions The Company expects to pay dividends of net investment income and distributions of net realized capital and currency gains, if any, annually to common shareholders and quarterly to preferred shareholders. Dividends and distributions to common and preferred shareholders, which are determined in accordance with Federal income tax regulations, are recorded on the ex-dividend date. Permanent book/tax differences relating to income and gains are reclassified to paid-in capital as they arise.

f. 

Federal Income Taxes The Company’s policy is to fulfill the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all taxable income to its stockholders. Accordingly, no provision for Federal income taxes is required. In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Company’s tax positions taken or expected to be taken on Federal and state income tax returns for all open tax years (the current and the prior three tax years) and has concluded that no provision for income tax is required in the Company’s financial statements.

g. 

Contingent Liabilities Amounts related to contingent liabilities are accrued if it is probable that a liability has been incurred and an amount is reasonably estimable. Management evaluates whether there are incremental legal or other costs directly associated with the ultimate resolution of a matter that are reasonably estimable and, if so, they are included in the accrual.

h. 

Indemnifications In the ordinary course of business, the Company enters into contracts that contain a variety of indemnifications. The Company’s maximum exposure under these arrangements is unknown. However, the Company has not had prior claims or losses pursuant to these indemnification provisions and expects any future risk of loss thereunder to be remote.

i. 

Coronavirus Pandemic The Coronavirus (COVID-19) pandemic has caused significant humanitarian and economic disruption both nationally and internationally for over three years. For the most part, governments worldwide responded with significant fiscal and monetary stimulus to offset the decline in commercial activity. Multiple vaccines and improved treatments have been developed and administered to those seeking immunization or requiring medical intervention with the goal of reducing the impact of the virus. Increased market volatility has occurred as a result of the spread of variants in the virus. More recently, the expiration of fiscal stimulus programs and reduced monetary accommodations by the Federal Reserve (i.e., increasing interest rates, cessation of asset purchases, and asset sales more recently) have contributed to further market volatility. The Company continues to operate in a hybrid work fashion (i.e., work from both home and in the office).

1. Significant Accounting Policies and Other Matters – (Continued from bottom of previous page.)

6

 

NOTES TO FINANCIAL STATEMENTS (Unaudited) - continued

General American Investors

2. Fair Value Measurements – Various data inputs are used in determining the value of the Company’s investments. These inputs are summarized in a hierarchy consisting of the three broad levels listed below:

Level 1 - quoted prices in active markets for identical securities (including money market funds which are valued at net asset value, typically $1 per share),

Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, etc.), and

Level 3 - significant unobservable inputs (including assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. No transfers among levels occurred during the three months ended March 31, 2023. The following is a summary of the inputs used to value the Company’s net assets as of March 31, 2023:

Assets

Level 1

Level 2

Level 3

Total

Common stocks

$1,132,863,782

$1,132,863,782

Purchased options

56,000

56,000

U.S. Treasury bills

$24,718,760

24,718,760

Money market fund

148,645,467

148,645,467

Total

$1,281,565,249

$24,718,760

$1,306,284,009

 

Liabilities

Options written

$96,750

$96,750