N-Q 1 nq062010.htm QUARTERLY REPORT nq062010.htm - Generated by SEC Publisher for SEC Filing

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-01728

NICHOLAS FUND, INC.

(Exact Name of Registrant as Specified in Charter)

700 North Water Street, Milwaukee, Wisconsin 53202
(Address of Principal Executive Offices) (Zip Code)

Jeffrey T. May, Senior Vice President, Secretary and Treasurer
700 North Water Street
Milwaukee, Wisconsin 53202
(Name and Address of Agent for Service)

Registrant's Telephone Number, Including Area Code: 414-272-4650

Date of Fiscal Year End: 03/31/2011

Date of Reporting Period: 06/30/2010

Item 1. Schedule of Investments.


  NICHOLAS FUND, INC.   
  SCHEDULE OF INVESTMENTS (UNAUDITED)   
  AS OF 6/30/2010   
    VALUE 
    -------------- 
 
 
COMMON STOCKS - 97.12%   
  Consumer Discretionary - Durables & Apparel - 0.87%   
550,000  Mattel, Inc.  $ 11,638,000 
    -------------- 
 
  Consumer Discretionary - Media - 0.56%   
175,300  Morningstar, Inc. *  7,453,756 
    -------------- 
  Consumer Discretionary - Retail - 10.12%   
818,600  Aaron's, Inc.  13,973,502 
359,400  Jos. A. Bank Clothiers, Inc. *  19,404,006 
650,000  Kohl's Corporation *  30,875,000 
400,000  LKQ Corporation *  7,712,000 
942,476  O'Reilly Automotive, Inc. *  44,824,158 
636,160  Penske Automotive Group, Inc.  7,226,778 
1,130,886  Sally Beauty Company, Inc. *  9,273,265 
55,300  Signet Jewelers Limited *  1,520,750 
    -------------- 
    134,809,459 
    -------------- 
  Consumer Discretionary - Services - 2.14%   
1,022,255  DineEquity, Inc.  28,541,360 
    -------------- 
 
  Consumer Staples - Food & Staple Retail - 2.91%   
1,450,000  Walgreen Co.  38,715,000 
    -------------- 
 
  Consumer Staples - Food, Beverage & Tobacco - 5.24%   
200,000  Altria Group, Inc.  4,008,000 
800,000  Philip Morris International Inc.  36,672,000 
530,000  Ralcorp Holdings, Inc. *  29,044,000 
    -------------- 
    69,724,000 
    -------------- 
  Energy - 14.09%   
400,000  Apache Corporation  33,676,000 
724,939  Bristow Group Inc. *  21,313,207 
931,300  Inergy, L.P. *  36,851,541 
230,000  Kayne Anderson Energy Development Company  3,489,100 
700,000  Kayne Anderson Energy Total Return Fund, Inc.  16,793,000 
700,000  Kayne Anderson MLP Investment Company  18,319,000 
1,011,245  Kinder Morgan Management, LLC *  57,226,369 
    -------------- 
    187,668,217 
    -------------- 
  Financials - Diversified - 6.19%   
900,000  Affiliated Managers Group, Inc. *  54,693,000 
525,000  Duff & Phelps Corporation - Class A  6,630,750 
1,084,785  Leucadia National Corporation  21,164,155 
    -------------- 
    82,487,905 
    -------------- 
  Financials - Insurance - 2.65%   
900,000  Loews Corporation  29,979,000 
200,000  W.R. Berkley Corporation  5,292,000 
    -------------- 
    35,271,000 
    -------------- 
  Financials - Real Estate - 0.72%   
1,520,950  Cohen & Steers Quality Income Realty Fund, Inc.  9,627,614 
    -------------- 
  Health Care - Equipment - 4.77%   
400,000  Beckman Coulter, Inc.  24,116,000 
507,500  Covidien plc  20,391,350 
525,000  St. Jude Medical, Inc. *  18,947,250 
    -------------- 
    63,454,600 
    -------------- 
  Health Care - Pharmaceuticals & Biotechnology - 10.40%   
850,000  Gilead Sciences, Inc. *  29,138,000 
325,400  Mettler-Toledo International Inc. *  36,324,402 
550,000  Teva Pharmaceutical Industries Ltd.  28,594,500 
905,688  Thermo Fisher Scientific Inc. *  44,423,996 
    -------------- 
    138,480,898 
    -------------- 
  Health Care - Services - 4.48%   
590,000  DaVita, Inc. *  36,839,600 
920,000  VCA Antech, Inc. *  22,779,200 
    -------------- 
    59,618,800 
    -------------- 
  Industrials - Capital Goods - 12.20%   
1,120,400  AECOM Technology Corporation *  25,836,424 
400,000  Fastenal Company  20,076,000 

 

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1,783,300  Oshkosh Corporation *  55,567,628 
425,000  W.W. Grainger, Inc.  42,266,250 
733,695  Woodward Governor Company  18,731,233 
    -------------- 
    162,477,535 
    -------------- 
  Industrials - Commercial Services & Supplies - 4.53%   
756,500  Copart, Inc. *  27,090,265 
580,202  Healthcare Services Group, Inc.  10,994,828 
750,000  Republic Services, Inc.  22,297,500 
    -------------- 
    60,382,593 
    -------------- 
  Industrials - Transportation - 1.58%   
550,000  Kirby Corporation *  21,037,500 
    -------------- 
 
  Information Technology - Semiconductors &   
  Semiconductor Equipment - 0.62%   
300,000  Microchip Technology Incorporated  8,322,000 
    -------------- 
 
  Information Technology - Software & Services - 6.39%   
785,000  Fiserv, Inc. *  35,843,100 
600,000  Hewitt Associates, Inc. *  20,676,000 
250,000  Paychex, Inc.  6,492,500 
608,800  Solera Holdings, Inc.  22,038,560 
    -------------- 
    85,050,160 
    -------------- 
  Materials - 6.50%   
200,000  Air Products and Chemicals, Inc.  12,962,000 
350,000  AptarGroup, Inc.  13,237,000 
800,000  Ball Corporation  42,264,000 
300,000  RPM International, Inc.  5,352,000 
186,802  Stepan Company  12,782,861 
    -------------- 
    86,597,861 
    -------------- 
  Utilities - 0.16%   
50,000  Integrys Energy Group, Inc.  2,187,000 
    -------------- 
  TOTAL COMMON STOCKS (cost $1,068,656,712)  1,293,545,258 
    -------------- 
 
SHORT-TERM INVESTMENTS - 3.04%   
  Commercial Paper - 2.84%   
$3,000,000  BMW US Capital, LLC 07/01/10, 0.37%  3,000,000 
2,575,000  Prudential Financial, Inc. 07/02/10, 0.30%  2,574,978 
3,500,000  Volkswagen of America, Inc. 07/06/10, 0.34%  3,499,835 
2,425,000  Volkswagen of America, Inc. 07/07/10, 0.38%  2,424,846 
3,800,000  Covidien International Finance S.A. 07/08/10, 0.30%  3,799,778 
4,880,000  CVS Corporation 07/12/2010, 0.42%  4,879,374 
1,650,000  Clorox Company (The) 07/14/10, 0.37%  1,649,780 
4,000,000  CVS Corporation 07/15/2010, 0.41%  3,999,362 
4,000,000  SABMiller plc 07/15/10, 0.45%  3,999,300 
975,000  Hitachi Capital America Corp. 07/16/10, 0.38%  974,846 
2,000,000  Altria Group, Inc. 07/21/10, 0.42%  1,999,533 
2,000,000  General Mills, Inc. 07/23/10, 0.33%  1,999,597 
3,050,000  General Mills, Inc. 07/23/10, 0.33%  3,049,385 
    -------------- 
    37,850,614 
    -------------- 
  Variable Rate Security - 0.20%   
2,656,422  American Family Financial Services, Inc. 07/01/2010, 0.10%  2,656,422 
    -------------- 
 
  TOTAL SHORT-TERM INVESTMENTS (cost $40,507,036)  40,507,036 
    -------------- 
 
  TOTAL SECURITY HOLDINGS (cost $1,109,163,748) - 100.16%  1,334,052,294 
    -------------- 
 
  LIABILITIES, NET OF OTHER ASSETS - (0.16)%  (2,119,133) 
    -------------- 
  TOTAL NET ASSETS  $1,331,933,161 
    -------------- 
    -------------- 
 
 
% OF NET ASSETS   

 

As of June 30, 2010, investment cost for federal tax purposes was $1,108,475,602 and the tax basis components of unrealized appreciation/depreciation were as follows:

Unrealized appreciation  $325,567,563 
Unrealized depreciation  (99,990,871) 
  ------------ 
Net unrealized appreciation  $225,576,692 
  ------------ 
  ------------ 

 

Page 2


For information on the Fund's policies regarding the valuation of investments and other significant accounting policies, please refer to the Fund's most recent Semiannual or Annual Report to Shareholders.

Various inputs are used in determining the value of the Fund's investments relating to Finanacial Accounting Standard No. 157.

The three-tier hierarchy of inputs is summarized in the three broad Levels listed below. Level 1 - quoted prices in active markets for identical investments

     Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) Level 3 - significant unobservable inputs (including the Fund’s own 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.

The following is a summary of the inputs used as of June 30, 2010 in valuing the Fund’s investments carried at value:

Valuation Inputs  Investments in Securities 
Level 1 -   
Common Stocks(1)  $1,293,545,258 
Level 2 -   
Commercial Paper  37,850,614 
Variable Rate Security  2,656,422 
Level 3 -   
None  -- 
  -------------- 
Total  $1,334,052,294 
  -------------- 
  -------------- 
 
(1) See Schedule above for further detail by industry   

 

Page 3


Item 2. Controls and Procedures.

(a) The Fund's principal executive officer and principal financial officer have concluded that the Fund's disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Fund in this Form N-Q was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, based upon such officers' evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.

(b) There were no significant changes or corrective actions with regard to significant deficiencies or material weaknesses in the Fund's internal controls or in other factors that could significantly affect the Fund's internal controls during the last fiscal quarter.

Item 3. Exhibits.

Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a-2(a) under the Act, attached hereto as part of EX-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.

(Registrant) NICHOLAS FUND, INC.

By: /s/ Albert O. Nicholas
Name: Albert O. Nicholas
Title: Principal Executive Officer

Date: 08/03/2010

     Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By: /s/ Albert O. Nicholas
Name: Albert O. Nicholas
Title: Principal Executive Officer
Date: 08/03/2010

By: /s/ Jeffrey T. May
Name: Jeffrey T. May
Title: Principal Financial Officer
Date: 08/03/2010