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ADAMS
DIVERSIFIED EQUITY
FUND
 
FIRST QUARTER REPORT
MARCH 31, 2018
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Letter to Shareholders
Dear Fellow Shareholders,
The market volatility that was missing for most of 2017 resurfaced in the first quarter of 2018. In fact, in the first quarter, the market had a daily move of more than +/- 2.0% ten times, compared to zero in all of 2017. Uncertainty surrounding rising interest rates, the threat of higher inflation, and the potential impact of protectionist trade policies contributed to the volatility. The S&P 500 declined 0.8% for the first three months of 2018, its first quarterly decline since 2015. Against this backdrop, the Fund declined 1.0% for the three months ended March 31, 2018.
Strong GDP growth and better-than-expected earnings results drove the market higher throughout much of January. The $1.5 trillion tax-cut package led many companies to increase earnings guidance, raise dividends, declare share buybacks, and announce one-time employee bonuses, adding to the market's optimism. Market volatility returned in February as investors became concerned about the stock market's high valuation as well as the unintended consequences of the tax cuts — higher interest rates and inflation. This led to the first S&P 500 correction (a decline of more than 10%) in two years. In March, the Trump administration announced plans to implement trade tariffs on steel and aluminum imports and, later in the month, proposed tariffs specifically targeting China. The two actions led to worries of a global trade war and a deceleration in global growth.
Throughout the quarter, investors became concerned that rising inflation would lead the Fed to raise rates more than the three quarter-point hikes expected for 2018. Although the Fed did not raise interest rates at its January meeting, new Fed Chair Jerome Powell raised rates a quarter of a point in March. The more hawkish tone by the Fed fueled additional uncertainty in the market.
Within the Fund, the Technology sector was the best performing sector over the past three months, increasing 4.4%. Our holdings in Adobe Systems and salesforce.com were particularly strong. Both companies are benefiting from continued growth in cloud computing. Credit card processing companies, Visa and Mastercard, also contributed to our positive returns. These high-quality companies are benefiting from the ongoing growth and evolution of electronic payments. Facebook dominated the headlines at the end of the quarter due to concerns around privacy, how social media companies manage user data, and the possibility of increased regulation. While we continue to like Facebook over the long-term, given the increased uncertainty, we trimmed our position in the stock. During the quarter, we initiated a position in Accenture, an information technology services company. The company has invested heavily over the past few years to expand its digital, cloud, and security consulting services and is well positioned to continue to generate impressive top- and bottom-line growth.
Although Utilities are a small component of our portfolio, good stock picking within the sector led to a positive 0.8% return for the Fund compared to a 3.3% decline in utility stocks in the S&P 500. During the quarter, we initiated a position in Exelon, the largest regulated electric and natural gas utility in the U.S. The company has a large power generation footprint and generates significant free cash flow. With its acquisition of Pepco now behind it, we see Exelon as well positioned to generate strong results.

Letter to Shareholders (continued)
The Financials sector was a positive contributor to the Fund’s relative performance during the quarter. Our regional bank holdings, SunTrust and Signature Bank, performed well. SunTrust’s favorable business mix, leverage to short-term interest rates and expense-saving initiatives, should lead to higher returns over time. Both banks should benefit from a rollback of some provisions of the Dodd-Frank Act that imposed strict oversight of small- and mid-sized lenders. The Fund also benefited from our underweight position in REITs, which typically are less attractive in a rising-rate environment.
The Health Care sector posted disappointing results. Health Care stocks were negatively impacted by the news that Amazon, J.P. Morgan, and Berkshire Hathaway were entering the market to reduce healthcare costs for their employees. While the magnitude of the potential disruption is unknown, we expect the managed care segment, in particular, to be impacted. We slightly reduced our exposure to this area of the market by exiting our positions in managed care companies Aetna and Cigna. We increased our exposure to UnitedHealth Group, a diversified healthcare leader, providing an integrated approach to healthcare. We like the company's strategy to help coordinate patient care, improve affordability of medical care, manage pharmacy benefits, and work with care providers to create a simpler consumer experience. We continue to see opportunities in Biotechnology and initiated a position in Biogen. The company has a very attractive business addressing neurological, autoimmune, and hematologic disorders. In addition, it has an Alzheimer’s drug in late stage trials that, if successful, could be transformative for the company.
Within Consumer Staples, we repositioned our Food & Beverage holdings by adding Monster Beverage and Constellation Brands to the portfolio. Monster Beverage is a leader in the fast-growing energy beverage category and has significant room to expand internationally. A recent pullback in its share price provided an attractive entry opportunity. Constellation Brands is a leading alcoholic beverages company with a portfolio of well-known brands. The company is well positioned to generate strong results driven by its fast-growing import and craft beer categories and continued margin expansion.
For the three months ended March 31, 2018, the total return on the Fund’s net asset value (“NAV”) per share (with dividends and capital gains reinvested) was -1.0%. This compares to a -0.8% total return for the S&P 500 and a -1.0% 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 -1.3%.
For the twelve months ended March 31, 2018, the Fund’s total return on NAV was 16.0%. Comparable figures for the S&P 500 and Lipper Large-Cap Core Funds Average were 14.0% and 13.0%, respectively. The Fund’s total return on market price was 17.6%.
During the quarter, the Fund paid distributions to shareholders in the amount of  $5.1 million, or $.05 per share, consisting of  $.03 net investment income and $.01 long-term capital gain, realized in 2017, and $.01 net investment income realized in 2018, all taxable in 2018. On April 19, 2018, an additional net investment income distribution of $.05 per share was declared for payment on June 1, 2018. These constitute the first two payments toward our annual 6% minimum distribution rate commitment. Additionally, the Fund repurchased 95,194 shares of its Common Stock during the past three months. The shares were repurchased at an average price of  $15.03 and a weighted average discount to NAV of 16.7%.
2​

Letter to Shareholders (continued)
As a result of the Fund’s mandatory retirement policy for directors, Phyllis O. Bonanno retired from our Board of Directors effective April 19, 2018. We thank her for her leadership and many contributions over her 15 years of service. An expert in U.S. public policy, Ms. Bonanno also added an international viewpoint to the Board. We wish her well in retirement.
By order of the Board of Directors,
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Mark E. Stoeckle
Chief Executive Officer & President
April 19, 2018
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.
3

Summary Financial Information
(unaudited)
2018
2017
At March 31:
Net asset value per share $ 17.32 $ 16.34
Market price per share $ 14.78 $ 13.75
Shares outstanding 101,626,893 99,192,253
Total net assets $ 1,760,299,528 $ 1,620,471,621
Unrealized appreciation on investments $ 562,521,727 $ 472,659,127
For the three months ended March 31:
Net investment income $ 4,901,721 $ 4,818,037
Net realized gain (loss) $ 67,244,383 $ 52,934,235
Cost of shares repurchased $ 1,430,337 $ 3,211,774
Shares repurchased 95,194 237,861
Total return (based on market price) -1.3% 8.6%
Total return (based on net asset value) -1.0% 7.8%
Key ratios:
Expenses to average net assets* 0.62% 0.62%
Net investment income to average net assets* 1.10% 1.24%
Portfolio turnover* 76.3% 57.0%
Net cash & short-term investments to net assets 1.3% 0.8%
*
Annualized
Ten Largest Equity Portfolio Holdings
March 31, 2018
(unaudited)
Market Value
Percent
of Net Assets
Microsoft Corporation $ 76,374,736 4.3%
Apple Inc. 66,507,992 3.8
Alphabet Inc. Class A & Class C 61,037,830 3.5
Amazon.com, Inc. 61,946,152 3.5
Bank of America Corporation 41,134,284 2.3
Adams Natural Resources Fund, Inc.* 39,886,758 2.3
Berkshire Hathaway Inc. Class B 38,399,900 2.2
Visa Inc. Class A 37,201,820 2.1
Home Depot, Inc. 36,129,248 2.1
UnitedHealth Group Incorporated 34,753,600 2.0
$ 493,372,320 28.1%
*
Non-controlled affiliated closed-end fund
4​

Schedule of Investments
March 31, 2018
(unaudited)
Shares
Value (a)
Common Stocks — 98.6%
Consumer Discretionary — 12.7%
Advance Auto Parts, Inc.
166,500 $ 19,738,575
Amazon.com, Inc. (b)
42,800 61,946,152
Carnival Corporation
138,500 9,082,830
Comcast Corporation Class A
843,200 28,812,144
Consumer Discretionary Select Sector SPDR Fund
56,000 5,672,240
Dollar General Corporation
193,937 18,142,806
Home Depot, Inc.
202,700 36,129,248
Lowe's Companies, Inc.
201,100 17,646,525
Magna International Inc.
252,000 14,200,200
Netflix, Inc. (b)
16,100 4,755,135
Walt Disney Company
68,800 6,910,272
223,036,127
Consumer Staples — 7.5%
Coca-Cola Company
161,800 7,026,974
Constellation Brands, Inc. Class A
60,600 13,811,952
Costco Wholesale Corporation
77,900 14,678,697
CVS Health Corporation
174,800 10,874,308
Monster Beverage Corporation (b)
157,100 8,987,691
PepsiCo, Inc.
134,400 14,669,760
Philip Morris International Inc.
295,300 29,352,820
Procter & Gamble Company
131,850 10,453,068
Walmart Inc.
257,300 22,891,981
132,747,251
Energy — 6.1%
Adams Natural Resources Fund, Inc. (c)
2,186,774 39,886,758
Andeavor
68,000 6,838,080
Concho Resources Inc. (b)
72,900 10,959,057
Exxon Mobil Corporation
308,300 23,002,263
Halliburton Company
354,400 16,635,536
Pioneer Natural Resources Company
57,800 9,928,884
107,250,578
5

Schedule of Investments (continued)
March 31, 2018
(unaudited)
Shares
Value (a)
Financials — 15.1%
American Express Company
102,000 $ 9,514,560
Bank of America Corporation
1,371,600 41,134,284
Berkshire Hathaway Inc. Class B (b)
192,500 38,399,900
BlackRock, Inc.
41,400 22,427,208
Chubb Limited
78,800 10,777,476
Goldman Sachs Group, Inc.
82,400 20,753,264
Intercontinental Exchange, Inc.
379,900 27,550,348
JPMorgan Chase & Co.
292,400 32,155,228
Signature Bank (b)
128,900 18,297,355
SunTrust Banks, Inc.
378,100 25,725,924
Wells Fargo & Company
358,500 18,788,985
265,524,532
Health Care — 13.3%
AbbVie, Inc.
265,700 25,148,505
Alexion Pharmaceuticals, Inc. (b)
107,200 11,948,512
Becton, Dickinson and Company
97,800 21,193,260
Biogen Inc. (b)
67,000 18,345,940
Edwards Lifesciences Corporation (b)
151,100 21,081,472
Johnson & Johnson
132,900 17,031,135
Laboratory Corporation of America Holdings (b)
107,700 17,420,475
Pfizer Inc.
702,940 24,947,341
Thermo Fisher Scientific Inc.
145,400 30,019,284
UnitedHealth Group Incorporated
162,400 34,753,600
Waters Corporation (b)
62,200 12,356,030
234,245,554
Industrials — 10.3%
Boeing Company
101,200 33,181,456
Cintas Corporation
86,500 14,755,170
Cummins Inc.
136,100 22,060,449
Delta Air Lines, Inc.
282,200 15,467,382
Emerson Electric Co.
257,800 17,607,740
General Electric Company
246,500 3,322,820
Honeywell International Inc.
193,000 27,890,430
Parker-Hannifin Corporation
103,400 17,684,502
Union Pacific Corporation
219,500 29,507,385
181,477,334
6​

Schedule of Investments (continued)
March 31, 2018
(unaudited)
Shares
Value (a)
Information Technology — 24.8%
Accenture plc Class A
133,500 $ 20,492,250
Adobe Systems Incorporated (b)
117,200 25,324,576
Alphabet Inc. Class A (b)
30,900 32,047,626
Alphabet Inc. Class C (b)
28,097 28,990,204
Apple Inc.
396,400 66,507,992
Broadcom Limited
93,100 21,939,015
Cisco Systems, Inc.
271,900 11,661,791
Cognizant Technology Solutions Corporation Class A
74,800 6,021,400
DXC Technology Co.
143,000 14,375,790
Facebook, Inc. Class A (b)
188,700 30,152,373
Lam Research Corporation
66,700 13,550,772
Mastercard Incorporated Class A
147,700 25,871,132
Microsoft Corporation
836,800 76,374,736
Oracle Corporation
122,200 5,590,650
salesforce.com, inc. (b)
181,200 21,073,560
Visa Inc. Class A
311,000 37,201,820
437,175,687
Materials — 1.7%
DowDuPont Inc.
206,600 13,162,486
Freeport-McMoRan, Inc.
414,700 7,286,279
LyondellBasell Industries N.V.
93,700 9,902,216
30,350,981
Real Estate — 3.4%
American Tower Corporation
85,900 12,484,706
Prologis, Inc.
351,600 22,147,284
Public Storage
86,100 17,253,579
SBA Communications Corporation Class A (b)
46,800 7,999,056
59,884,625
Telecommunication Services — 1.0%
AT&T Inc.
262,200 9,347,430
Verizon Communications Inc.
171,600 8,205,912
17,553,342
Utilities — 2.7%
CenterPoint Energy, Inc.
401,000 10,987,400
Exelon Corporation
299,300 11,675,693
NextEra Energy, Inc.
99,000 16,169,670
Public Service Enterprise Group Incorporated
173,900 8,736,736
47,569,499
7

Schedule of Investments (continued)
March 31, 2018
(unaudited)
Shares
Value (a)
Total Common Stocks
(Cost $1,177,760,579)
$ 1,736,815,510
Other Investments — 0.1%
Financials — 0.1%
Adams Funds Advisers, LLC (b)(d)
(Cost $150,000)
1,060,000
Short-Term Investments — 1.1%
Money Market Funds — 1.1%
Fidelity Investments Money Market Funds - Prime Money Market Portfolio (Institutional Class), 1.74% (e)
8,994,917 8,996,716
Northern Institutional Treasury Portfolio, 1.53% (e)
10,134,945 10,134,945
Total Short-Term Investments
(Cost $19,133,460)
19,131,661
Total — 99.8%
(Cost $1,197,044,039)
1,757,007,171
Other Assets Less Liabilities — 0.2% 3,292,357
Net Assets — 100.0%
$
1,760,299,528
8​

Schedule of Investments (continued)
March 31, 2018
(unaudited)
Total Return Swap Agreements — 0.1%
Description
Value and
Unrealized
Appreciation
(Assets)
Value and
Unrealized
Depreciation
(Liabilities)
Terms
Contract
Type
Underlying
Security
Termination
Date
Notional
Amount
Receive total return on underlying
security and pay financing amount
based on notional amount and daily
U.S. Federal Funds rate plus 0.55%.
Long
Illinois Tool
Works Inc.
(82,400 shares)
2/21/2019
$ 14,059,755 $ $ (1,142,021)
Pay total return on underlying
security and receive financing
amount based on notional amount
and daily U.S. Federal Funds rate
less 0.45%.
Short
Industrial Select
Sector SPDR Fund
(177,300 shares)
2/21/2019
(14,116,892) 918,499
Receive total return on underlying
security and pay financing amount
based on notional amount and daily
U.S. Federal Funds rate plus 0.55%.
Long
Intel Corporation
(333,700 shares)
2/27/2019
15,308,988 2,112,495
Pay total return on underlying
security and receive financing
amount based on notional amount
and daily U.S. Federal Funds rate
less 0.45%.
Short
Technology Select
Sector SPDR Fund
(222,000 shares)
2/27/2019
(15,263,543) 720,684
Receive total return on underlying
security and pay financing amount
based on notional amount and daily
U.S. Federal Funds rate plus 0.55%.
Long
CBS Corporation
Class B
(254,400 shares)
3/11/2019
13,675,730 (596,692)
Pay total return on underlying
security and receive financing
amount based on notional amount
and daily U.S. Federal Funds rate
less 0.55%.
Short
Morgan Stanley
Consumer Discretionary
Select Sector
Equal-Weighted Custom
Basket (136,600 units)
3/11/2019
(13,554,477) 545,630
Gross unrealized gain (loss) on open total return swap agreements $ 4,297,308 $ (1,738,713)
Net unrealized gain on open total return swap agreements (f) $ 2,558,595
(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.
(f)
Counterparty for all open swap agreements is Morgan Stanley. At period-end, $2,260,000 in cash collateral was held by the Fund.
More information regarding transactions in equity securities during the quarter can be found on our website at: www.adamsfunds.com.
9​

Adams Diversified Equity Fund, Inc.
Board of Directors
Enrique R. Arzac  (2), (4)
Frederic A. Escherich  (1), (2), (3)
Kathleen T. McGahran  (1), (5)
Phyllis O. Bonanno (3), (4), (6)
Roger W. Gale  (1), (2), (4) Craig R. Smith  (2), (3)
Kenneth J. Dale  (1), (3), (4)
Lauriann C. Kloppenburg  (2)
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
(6)
Retired effective April 19, 2018
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
Lawrence L. Hooper, Jr.
Vice President, General Counsel, Secretary and Chief Compliance Officer
Steven R. Crain, 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: contact@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