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ADAMS
DIVERSIFIED EQUITY
FUND
 
​
FIRST QUARTER REPORT
MARCH 31, 2019
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GET THE LATEST NEWS AND INFORMATION
adamsfunds.com/sign-up​
​
Letter to Shareholders
​
Dear Fellow Shareholders,
After the steep sell-off at the end of 2018, the stock market reversed course in the first quarter. The S&P 500 increased 13.7%, its highest first quarter return since 1998. Our Fund outperformed the S&P, increasing 14.0%. These returns were supported by optimism about a U.S.-China trade agreement, combined with signals from the Federal Reserve that it does not plan to raise rates in 2019.
During the quarter we felt the disruption of the longest U.S. government shutdown ever, saw Britain’s plans to exit the European Union unravel, and a second summit with North Korea abruptly end with little progress toward
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“Consumer Discretionary, Health Care, and Communications Services were the biggest contributors to our relative outperformance.”
​
denuclearization. Even with this "wall of worry" as a backdrop, the market moved higher throughout the quarter, resulting in its highest quarterly return in a decade.
Ongoing concerns about the health of the global economy and the Fed's accommodating position combined to push long-term interest rates lower. This resulted in the U.S. Treasury yield curve inverting for the first time since 2007. An inverted yield curve occurs when short-term rates are higher than long-term rates and, in the past, has often been a precursor of an economic downturn. While this is one signal that the economic expansion may be nearing an end, there are several indicators that support continued growth, including a strong labor market, low levels of inflation, and renewed momentum in the housing market.
The strength in the stock market was broad-based as all sectors in the S&P 500 were positive for the first time since the second quarter of 2014. In our Fund, while all sectors generated positive returns, our investments in Consumer Discretionary, Health Care, and Communications Services were the biggest contributors to our relative outperformance. Financials and Energy generated positive returns, but underperformed relative to their benchmarks.
The Consumer Discretionary sector was a standout for the Fund, increasing 18.4%. Our position in Chipotle Mexican Grill, which increased 64.5%, was a significant contributor to the Fund's return. Chipotle has delivered strong results as its new turnaround initiatives focused on marketing, menu innovation, and loyalty have begun to take hold. We believe the company is in the early innings of this turnaround.
​
​
Letter to Shareholders (continued)
​
During the quarter, we increased our exposure to the growing beauty category. The “selfie generation” is driving sales of cosmetics and skin care and Ulta Beauty is well positioned to benefit from this trend. Ulta is a leading specialty beauty retailer that offers a unique mix of prestige and masstige (affordably-priced) cosmetics, skincare, and haircare in one store. Its exclusive offerings with top brands drive traffic to its stores and website and have enabled it to generate strong top and bottom line growth. We expect the company to continue to outperform given its significant unit growth potential and margin expansion opportunity.
Our Health Care investments were also a key contributor to overall returns. While the sector was up just 8.7%, our returns significantly outperformed due to strong stock selection. Our holdings in biotech performed particularly well, led by Alexion Pharmaceuticals, which increased 39.0%. During the quarter, the FDA approved its next generation Soliris drug, which is a highly effective treatment for many rare diseases. We added Amgen to the portfolio's biotech holdings. In our view, the company is trading at too low a valuation given its strong new product pipeline. During the quarter, we also added Zoetis to our Fund. We like that Zoetis’ focus is on animal health, which carries less regulatory and government risk than traditional pharmaceutical companies.
The Communications Services sector also generated strong returns for our Fund, increasing 17.2%. This new sector replaced the Telecommunications sector in September 2018, and now includes media companies such as Walt Disney and Netflix, as well as technology companies such as Facebook and Alphabet. Our position in Netflix, the leader in on-demand streaming services, increased 33.3% for the quarter. With over 150 million subscribers worldwide, Netflix clearly has the first-mover advantage and its competitors continue to struggle to keep up.
While the rest of the market cheered the Fed’s decision to hold off on raising rates, the Financials sector, which increased 8.0%, lagged the overall market as lower rates and a flatter yield curve will negatively impact the sector's profitability. Diversified financials was the weakest group in the sector. Our holdings were more defensively positioned with investments in Intercontinental Exchange and Berkshire Hathaway, which benefited us in the fourth quarter of 2018, but hurt us this quarter. On the positive side, we did see the re-emergence of merger and acquisition activity in the banking sector this quarter when BB&T and SunTrust announced plans to merge. While we find the combination compelling over the long-term, we believe the integration could be challenging. With SunTrust shares up 31.4% through mid-February, we chose to exit our position in the stock.
For the three months ended March 31, 2019, the total return on the Fund’s net asset value (“NAV”) per share (with dividends and capital gains reinvested) was
2​
​
Letter to Shareholders (continued)
​
14.0%. This compares to a 13.7% total return for the S&P 500 and a 12.9% 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 14.8%.
For the twelve months ended March 31, 2019, the Fund’s total return on NAV was 12.1%. Comparable figures for the S&P 500 and Lipper Large-Cap Core Funds Average were 9.5% and 7.7%, respectively. The Fund’s total return on market price was 12.2%.
During the quarter, the Fund paid distributions to shareholders of approximately $5.3 million, or $.05 per share, consisting of $.02 net investment income and $.02 long-term capital gain, realized in 2018, and $.01 net investment income realized in 2019, all taxable in 2019. On April 16, 2019, an additional net investment income distribution of  $.05 per share was declared for payment on May 31, 2019. These constitute the first two payments toward our annual 6% minimum distribution rate commitment. Additionally, the Fund repurchased 194,763 shares of its Common Stock during the past three months. The shares were repurchased at an average price of $14.18 and a weighted average discount to NAV of 14.5%.
The bull market reached its 10th year in March, and we are mindful of this as we manage our portfolio. We continue to search for investment opportunities that can outperform in volatile markets. We appreciate your trust in us and are focused on delivering consistent investment returns for shareholders by identifying quality companies that are executing at high levels and trading at attractive valuations.
By order of the Board of Directors,
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Mark E. Stoeckle
Chief Executive Officer & President
April 16, 2019
3
​
Summary Financial Information
​
(unaudited)
​ ​ ​
2019
 ​ ​
2018
 ​
At March 31: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Net asset value per share ​ ​ ​ $ 16.92 ​ ​ ​ ​ $ 17.32 ​ ​
Market price per share ​ ​ ​ $ 14.44 ​ ​ ​ ​ $ 14.78 ​ ​
Shares outstanding ​ ​ ​ ​ 106,011,023 ​ ​ ​ ​ ​ 101,626,893 ​ ​
Total net assets ​ ​ ​ $ 1,794,035,673 ​ ​ ​ ​ $ 1,760,299,528 ​ ​
Unrealized appreciation on investments ​ ​ ​ $ 587,649,833 ​ ​ ​ ​ $ 562,521,727 ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
For the three months ended March 31: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Net investment income ​ ​ ​ $ 4,222,551 ​ ​ ​ ​ $ 4,901,721 ​ ​
Net realized gain (loss) ​ ​ ​ $ 18,328,245 ​ ​ ​ ​ $ 67,244,383 ​ ​
Cost of shares repurchased ​ ​ ​ $ 2,762,328 ​ ​ ​ ​ $ 1,430,337 ​ ​
Shares repurchased ​ ​ ​ ​ 194,763 ​ ​ ​ ​ ​ 95,194 ​ ​
Total return (based on market price) ​ ​ ​ ​ 14.8% ​ ​ ​ ​ ​ -1.3% ​ ​
Total return (based on net asset value) ​ ​ ​ ​ 14.0% ​ ​ ​ ​ ​ -1.0% ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Key ratios: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Expenses to average net assets* ​ ​ ​ ​ 0.63% ​ ​ ​ ​ ​ 0.62% ​ ​
Net investment income to average net assets* ​ ​ ​ ​ 1.12% ​ ​ ​ ​ ​ 1.10% ​ ​
Portfolio turnover* ​ ​ ​ ​ 68.4% ​ ​ ​ ​ ​ 76.3% ​ ​
Net cash & short-term investments to net assets ​ ​ ​ ​ 0.5% ​ ​ ​ ​ ​ 1.3% ​ ​
*
Annualized
​
Ten Largest Equity Portfolio Holdings
​
March 31, 2019
(unaudited)
​ ​ ​
Market Value
​ ​
Percent
of Net Assets
​
Microsoft Corporation ​ ​ ​ $ 93,160,806 ​ ​ ​ ​ ​ 5.2% ​ ​
Amazon.com, Inc. ​ ​ ​ ​ 73,544,975 ​ ​ ​ ​ ​ 4.1 ​ ​
Apple Inc. ​ ​ ​ ​ 55,522,385 ​ ​ ​ ​ ​ 3.1 ​ ​
Visa Inc. Class A ​ ​ ​ ​ 47,075,666 ​ ​ ​ ​ ​ 2.6 ​ ​
Alphabet Inc. Class A & Class C ​ ​ ​ ​ 46,322,986 ​ ​ ​ ​ ​ 2.6 ​ ​
Merck & Co., Inc. ​ ​ ​ ​ 36,702,921 ​ ​ ​ ​ ​ 2.0 ​ ​
Adams Natural Resources Fund, Inc.* ​ ​ ​ ​ 36,672,200 ​ ​ ​ ​ ​ 2.0 ​ ​
Bank of America Corp. ​ ​ ​ ​ 36,570,545 ​ ​ ​ ​ ​ 2.0 ​ ​
UnitedHealth Group Incorporated ​ ​ ​ ​ 35,976,330 ​ ​ ​ ​ ​ 2.0 ​ ​
Thermo Fisher Scientific Inc. ​ ​ ​ ​ 35,693,088 ​ ​ ​ ​ ​ 2.0 ​ ​
​ ​ ​ ​ $ 497,241,902 ​ ​ ​ ​ ​ 27.6% ​ ​
​
*
Non-controlled affiliated closed-end fund​
​
​
4​
​
Schedule of Investments
​
March 31, 2019
(unaudited)
​ ​ ​
Shares
 ​ ​
Value (a)
 ​
Common Stocks — 99.5% ​
Communication Services — 8.1%
 ​
Alphabet Inc. Class A (b)
 ​ ​ ​ ​ 27,400 ​ ​ ​ ​ $ 32,246,786 ​ ​
Alphabet Inc. Class C (b)
 ​ ​ ​ ​ 11,997 ​ ​ ​ ​ ​ 14,076,200 ​ ​
AT&T Inc.
 ​ ​ ​ ​ 853,282 ​ ​ ​ ​ ​ 26,758,924 ​ ​
Comcast Corporation Class A
 ​ ​ ​ ​ 668,200 ​ ​ ​ ​ ​ 26,714,636 ​ ​
Facebook, Inc. Class A (b)
 ​ ​ ​ ​ 91,100 ​ ​ ​ ​ ​ 15,185,459 ​ ​
Netflix, Inc. (b)
 ​ ​ ​ ​ 50,300 ​ ​ ​ ​ ​ 17,934,968 ​ ​
Verizon Communications Inc.
 ​ ​ ​ ​ 86,800 ​ ​ ​ ​ ​ 5,132,484 ​ ​
Walt Disney Company
 ​ ​ ​ ​ 68,800 ​ ​ ​ ​ ​ 7,638,864 ​ ​
​ ​ ​ ​ ​ 145,688,321 ​ ​
Consumer Discretionary — 11.0%
 ​
Advance Auto Parts, Inc.
 ​ ​ ​ ​ 81,900 ​ ​ ​ ​ ​ 13,966,407 ​ ​
Amazon.com, Inc. (b)
 ​ ​ ​ ​ 41,300 ​ ​ ​ ​ ​ 73,544,975 ​ ​
Chipotle Mexican Grill, Inc. (b)
 ​ ​ ​ ​ 24,100 ​ ​ ​ ​ ​ 17,118,471 ​ ​
Dollar General Corporation
 ​ ​ ​ ​ 152,437 ​ ​ ​ ​ ​ 18,185,734 ​ ​
Lowe's Companies, Inc.
 ​ ​ ​ ​ 152,800 ​ ​ ​ ​ ​ 16,727,016 ​ ​
NIKE, Inc. Class B
 ​ ​ ​ ​ 315,800 ​ ​ ​ ​ ​ 26,593,518 ​ ​
Tractor Supply Company
 ​ ​ ​ ​ 159,000 ​ ​ ​ ​ ​ 15,543,840 ​ ​
Ulta Beauty, Inc.
 ​ ​ ​ ​ 46,400 ​ ​ ​ ​ ​ 16,181,072 ​ ​
​ ​ ​ ​ ​ 197,861,033 ​ ​
Consumer Staples — 6.7%
 ​
Coca-Cola Company
 ​ ​ ​ ​ 161,800 ​ ​ ​ ​ ​ 7,581,948 ​ ​
Costco Wholesale Corporation
 ​ ​ ​ ​ 70,300 ​ ​ ​ ​ ​ 17,022,442 ​ ​
Mondelez International, Inc. Class A
 ​ ​ ​ ​ 244,500 ​ ​ ​ ​ ​ 12,205,440 ​ ​
PepsiCo, Inc.
 ​ ​ ​ ​ 134,400 ​ ​ ​ ​ ​ 16,470,720 ​ ​
Philip Morris International Inc.
 ​ ​ ​ ​ 197,000 ​ ​ ​ ​ ​ 17,412,830 ​ ​
Procter & Gamble Company
 ​ ​ ​ ​ 115,350 ​ ​ ​ ​ ​ 12,002,167 ​ ​
Unilever plc Sponsored ADR
 ​ ​ ​ ​ 193,400 ​ ​ ​ ​ ​ 11,163,048 ​ ​
Walmart Inc.
 ​ ​ ​ ​ 261,800 ​ ​ ​ ​ ​ 25,533,354 ​ ​
​ ​ ​ ​ ​ 119,391,949 ​ ​
Energy — 5.3%
 ​
Adams Natural Resources Fund, Inc. (c)
 ​ ​ ​ ​ 2,186,774 ​ ​ ​ ​ ​ 36,672,200 ​ ​
BP plc Sponsored ADR
 ​ ​ ​ ​ 80,800 ​ ​ ​ ​ ​ 3,532,576 ​ ​
Diamondback Energy, Inc.
 ​ ​ ​ ​ 74,200 ​ ​ ​ ​ ​ 7,533,526 ​ ​
EOG Resources, Inc.
 ​ ​ ​ ​ 87,200 ​ ​ ​ ​ ​ 8,299,696 ​ ​
Exxon Mobil Corporation
 ​ ​ ​ ​ 168,400 ​ ​ ​ ​ ​ 13,606,720 ​ ​
Marathon Petroleum Corporation
 ​ ​ ​ ​ 167,525 ​ ​ ​ ​ ​ 10,026,371 ​ ​
Occidental Petroleum Corporation
 ​ ​ ​ ​ 133,100 ​ ​ ​ ​ ​ 8,811,220 ​ ​
Royal Dutch Shell plc Sponsored ADR Class B
 ​ ​ ​ ​ 54,900 ​ ​ ​ ​ ​ 3,510,855 ​ ​
Total S.A. ADR
 ​ ​ ​ ​ 60,800 ​ ​ ​ ​ ​ 3,383,520 ​ ​
​ ​ ​ ​ ​ 95,376,684 ​ ​
5
​
Schedule of Investments (continued)
​
March 31, 2019
(unaudited)
​ ​ ​
Shares
 ​ ​
Value (a)
 ​
Financials — 12.6%
 ​
Aflac Incorporated
 ​ ​ ​ ​ 245,900 ​ ​ ​ ​ $ 12,295,000 ​ ​
American Express Company
 ​ ​ ​ ​ 152,600 ​ ​ ​ ​ ​ 16,679,180 ​ ​
Bank of America Corp.
 ​ ​ ​ ​ 1,325,500 ​ ​ ​ ​ ​ 36,570,545 ​ ​
Berkshire Hathaway Inc. Class B (b)
 ​ ​ ​ ​ 171,600 ​ ​ ​ ​ ​ 34,472,724 ​ ​
Fifth Third Bancorp
 ​ ​ ​ ​ 538,700 ​ ​ ​ ​ ​ 13,586,014 ​ ​
Intercontinental Exchange, Inc.
 ​ ​ ​ ​ 279,000 ​ ​ ​ ​ ​ 21,243,060 ​ ​
JPMorgan Chase & Co.
 ​ ​ ​ ​ 298,200 ​ ​ ​ ​ ​ 30,186,786 ​ ​
Raymond James Financial, Inc.
 ​ ​ ​ ​ 237,400 ​ ​ ​ ​ ​ 19,089,334 ​ ​
Travelers Companies, Inc.
 ​ ​ ​ ​ 134,400 ​ ​ ​ ​ ​ 18,434,304 ​ ​
U.S. Bancorp
 ​ ​ ​ ​ 447,000 ​ ​ ​ ​ ​ 21,540,930 ​ ​
Wells Fargo & Company
 ​ ​ ​ ​ 55,300 ​ ​ ​ ​ ​ 2,672,096 ​ ​
​ ​ ​ ​ ​ 226,769,973 ​ ​
Health Care — 14.9%
 ​
Abbott Laboratories
 ​ ​ ​ ​ 376,100 ​ ​ ​ ​ ​ 30,065,434 ​ ​
Alexion Pharmaceuticals, Inc. (b)
 ​ ​ ​ ​ 146,700 ​ ​ ​ ​ ​ 19,830,906 ​ ​
Amgen Inc.
 ​ ​ ​ ​ 75,700 ​ ​ ​ ​ ​ 14,381,486 ​ ​
Centene Corporation (b)
 ​ ​ ​ ​ 131,800 ​ ​ ​ ​ ​ 6,998,580 ​ ​
Edwards Lifesciences Corporation (b)
 ​ ​ ​ ​ 122,900 ​ ​ ​ ​ ​ 23,514,457 ​ ​
Johnson & Johnson
 ​ ​ ​ ​ 137,800 ​ ​ ​ ​ ​ 19,263,062 ​ ​
Medtronic plc
 ​ ​ ​ ​ 222,700 ​ ​ ​ ​ ​ 20,283,516 ​ ​
Merck & Co., Inc.
 ​ ​ ​ ​ 441,300 ​ ​ ​ ​ ​ 36,702,921 ​ ​
Pfizer Inc.
 ​ ​ ​ ​ 211,940 ​ ​ ​ ​ ​ 9,001,092 ​ ​
Thermo Fisher Scientific Inc.
 ​ ​ ​ ​ 130,400 ​ ​ ​ ​ ​ 35,693,088 ​ ​
UnitedHealth Group Incorporated
 ​ ​ ​ ​ 145,500 ​ ​ ​ ​ ​ 35,976,330 ​ ​
Zoetis Inc. Class A
 ​ ​ ​ ​ 148,500 ​ ​ ​ ​ ​ 14,949,495 ​ ​
​ ​ ​ ​ ​ 266,660,367 ​ ​
Industrials — 9.5%
 ​
Boeing Company
 ​ ​ ​ ​ 71,800 ​ ​ ​ ​ ​ 27,385,956 ​ ​
Cintas Corporation
 ​ ​ ​ ​ 48,400 ​ ​ ​ ​ ​ 9,782,124 ​ ​
Delta Air Lines, Inc.
 ​ ​ ​ ​ 216,200 ​ ​ ​ ​ ​ 11,166,730 ​ ​
General Electric Company
 ​ ​ ​ ​ 246,500 ​ ​ ​ ​ ​ 2,462,535 ​ ​
HD Supply Holdings, Inc. (b)
 ​ ​ ​ ​ 204,800 ​ ​ ​ ​ ​ 8,878,080 ​ ​
Honeywell International Inc.
 ​ ​ ​ ​ 203,000 ​ ​ ​ ​ ​ 32,260,760 ​ ​
Parker-Hannifin Corporation
 ​ ​ ​ ​ 101,300 ​ ​ ​ ​ ​ 17,385,106 ​ ​
Republic Services, Inc.
 ​ ​ ​ ​ 112,400 ​ ​ ​ ​ ​ 9,034,712 ​ ​
Southwest Airlines Co.
 ​ ​ ​ ​ 139,000 ​ ​ ​ ​ ​ 7,215,490 ​ ​
Union Pacific Corporation
 ​ ​ ​ ​ 175,700 ​ ​ ​ ​ ​ 29,377,040 ​ ​
United Technologies Corporation
 ​ ​ ​ ​ 115,200 ​ ​ ​ ​ ​ 14,848,128 ​ ​
​ ​ ​ ​ ​ 169,796,661 ​ ​
6​
​
Schedule of Investments (continued)
​
March 31, 2019
(unaudited)
​ ​ ​
Shares
 ​ ​
Value (a)
 ​
Information Technology — 23.1%
 ​
Accenture plc Class A
 ​ ​ ​ ​ 147,000 ​ ​ ​ ​ $ 25,874,940 ​ ​
Adobe Systems Incorporated (b)
 ​ ​ ​ ​ 110,100 ​ ​ ​ ​ ​ 29,340,549 ​ ​
Apple Inc.
 ​ ​ ​ ​ 292,300 ​ ​ ​ ​ ​ 55,522,385 ​ ​
Broadcom Inc.
 ​ ​ ​ ​ 61,600 ​ ​ ​ ​ ​ 18,523,736 ​ ​
Broadridge Financial Solutions, Inc.
 ​ ​ ​ ​ 67,300 ​ ​ ​ ​ ​ 6,978,337 ​ ​
Cisco Systems, Inc.
 ​ ​ ​ ​ 607,200 ​ ​ ​ ​ ​ 32,782,728 ​ ​
Lam Research Corporation
 ​ ​ ​ ​ 49,800 ​ ​ ​ ​ ​ 8,914,698 ​ ​
Mastercard Incorporated Class A
 ​ ​ ​ ​ 139,100 ​ ​ ​ ​ ​ 32,751,095 ​ ​
Microsoft Corporation
 ​ ​ ​ ​ 789,900 ​ ​ ​ ​ ​ 93,160,806 ​ ​
Oracle Corporation
 ​ ​ ​ ​ 122,200 ​ ​ ​ ​ ​ 6,563,362 ​ ​
Palo Alto Networks, Inc. (b)
 ​ ​ ​ ​ 71,400 ​ ​ ​ ​ ​ 17,341,632 ​ ​
salesforce.com, inc. (b)
 ​ ​ ​ ​ 139,800 ​ ​ ​ ​ ​ 22,140,126 ​ ​
Texas Instruments Incorporated
 ​ ​ ​ ​ 156,100 ​ ​ ​ ​ ​ 16,557,527 ​ ​
Visa Inc. Class A
 ​ ​ ​ ​ 301,400 ​ ​ ​ ​ ​ 47,075,666 ​ ​
​ ​ ​ ​ ​ 413,527,587 ​ ​
Materials — 2.1%
 ​
Air Products and Chemicals, Inc.
 ​ ​ ​ ​ 58,100 ​ ​ ​ ​ ​ 11,094,776 ​ ​
Ball Corporation
 ​ ​ ​ ​ 103,000 ​ ​ ​ ​ ​ 5,959,580 ​ ​
DowDuPont Inc.
 ​ ​ ​ ​ 172,200 ​ ​ ​ ​ ​ 9,179,982 ​ ​
Sherwin-Williams Company
 ​ ​ ​ ​ 24,900 ​ ​ ​ ​ ​ 10,724,679 ​ ​
​ ​ ​ ​ ​ 36,959,017 ​ ​
Real Estate — 2.8%
 ​
American Tower Corporation
 ​ ​ ​ ​ 85,900 ​ ​ ​ ​ ​ 16,927,454 ​ ​
AvalonBay Communities, Inc.
 ​ ​ ​ ​ 53,600 ​ ​ ​ ​ ​ 10,759,128 ​ ​
Prologis, Inc.
 ​ ​ ​ ​ 218,000 ​ ​ ​ ​ ​ 15,685,100 ​ ​
Simon Property Group, Inc.
 ​ ​ ​ ​ 41,700 ​ ​ ​ ​ ​ 7,598,157 ​ ​
​ ​ ​ ​ ​ 50,969,839 ​ ​
S&P 500 Index — 0.2%
 ​
SPDR S&P 500 ETF Trust
 ​ ​ ​ ​ 15,700 ​ ​ ​ ​ ​ 4,434,936 ​ ​
​ ​ ​ ​ ​ ​ ​
Utilities — 3.2%
 ​
Exelon Corporation
 ​ ​ ​ ​ 299,300 ​ ​ ​ ​ ​ 15,003,909 ​ ​
NextEra Energy, Inc.
 ​ ​ ​ ​ 99,000 ​ ​ ​ ​ ​ 19,138,680 ​ ​
Public Service Enterprise Group Incorporated
 ​ ​ ​ ​ 173,900 ​ ​ ​ ​ ​ 10,331,399 ​ ​
WEC Energy Group Inc.
 ​ ​ ​ ​ 166,200 ​ ​ ​ ​ ​ 13,143,096 ​ ​
​ ​ ​ ​ ​ 57,617,084 ​ ​
Total Common Stocks ​
(Cost $1,198,655,064)
 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1,785,053,451 ​ ​
​
7
​
Schedule of Investments (continued)
​
March 31, 2019
(unaudited)
​ ​ ​
Shares
 ​ ​
Value (a)
 ​
Other Investments — 0.0% ​
Financials — 0.0%
 ​
Adams Funds Advisers (b)(d)
 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
(Cost $150,000)
 ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 471,000 ​ ​
Short-Term Investments — 0.4% ​
Money Market Funds — 0.4%
 ​
Fidelity Investments Money Market Funds - Prime Money Market Portfolio (Institutional Class), 2.50% (e)
 ​ ​ ​ ​ 5,407,980 ​ ​ ​ ​ ​ 5,410,143 ​ ​
Northern Institutional Treasury Portfolio, 2.32% (e)
 ​ ​ ​ ​ 1,020,773 ​ ​ ​ ​ ​ 1,020,773 ​ ​
Total Short-Term Investments ​
(Cost $6,429,926)
 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 6,430,916 ​ ​
Total — 99.9% ​
(Cost $1,205,234,990)
 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1,791,955,367 ​ ​
Other Assets Less Liabilities — 0.1% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2,080,306 ​ ​
Net Assets — 100.0%
 ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 1,794,035,673 ​ ​
​
8​
​
Schedule of Investments (continued)
​
March 31, 2019
(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
​ ​ Robert Half International Inc.
(141,500 shares)		 ​ ​
2/12/2020
​ ​ ​ $ 8,264,364 ​ ​ ​ ​ $ 944,767 ​ ​ ​ ​ $ — ​ ​
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 (121,600 shares)
​ ​
2/12/2020
​ ​ ​ ​ (8,161,196) ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (978,637) ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
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
 ​ ​ Apple Inc. (53,600 shares)
​ ​
3/3/2020
 ​ ​ ​ ​ 8,350,339 ​ ​ ​ ​ ​ 1,827,675 ​ ​ ​ ​ ​ — ​ ​
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
(128,400 shares)		 ​ ​
3/3/2020
 ​ ​ ​ ​ (8,328,396) ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (1,175,181) ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
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
 ​ ​ Anadarko Petroleum
Corporation (199,700 shares)
​ ​
4/16/2020
 ​ ​ ​ ​ 8,856,036 ​ ​ ​ ​ ​ 215,416 ​ ​ ​ ​ ​ — ​ ​
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
 ​ ​ Energy Select Sector SPDR Fund (133,900 shares) ​ ​
4/16/2020
 ​ ​ ​ ​ (8,844,590) ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (70,445) ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
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
 ​ ​ WestRock Company (242,800
shares)		 ​ ​
4/24/2020
 ​ ​ ​ ​ 8,989,791 ​ ​ ​ ​ ​ 316,417 ​ ​ ​ ​ ​ — ​ ​
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
 ​ ​ Materials Select Sector SPDR
Fund (164,100 shares)		 ​ ​
4/24/2020
 ​ ​ ​ ​ (8,941,645) ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (162,492) ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
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
 ​ ​ Fidelity National Information
Services, Inc. (80,800 shares)		 ​ ​
4/29/2020
 ​ ​ ​ ​ 8,863,429 ​ ​ ​ ​ ​ 274,316 ​ ​ ​ ​ ​ — ​ ​
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 (121,400 shares)		 ​ ​
4/29/2020
 ​ ​ ​ ​ (8,844,378) ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (138,736) ​ ​
9
​
Schedule of Investments (continued)
​
March 31, 2019
(unaudited)
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
 ​ ​ NRG Energy, Inc. (207,900 shares) ​ ​
4/30/2020
 ​ ​ ​ $ 8,903,255 ​ ​ ​ ​ $ — ​ ​ ​ ​ $ (72,411) ​ ​
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
 ​ ​ Utilities Select Sector SPDR Fund (153,300 shares) ​ ​
4/30/2020
 ​ ​ ​ ​ (8,865,738) ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (51,233) ​ ​
Gross unrealized gain (loss) on open total return swap agreements ​ ​ ​ $ 3,578,591 ​ ​ ​ ​ $ (2,649,135) ​ ​
Net unrealized gain on open total return swap agreements (f) ​ ​ ​ $ 929,456 ​ ​ ​ ​ ​ ​ ​ ​
​
(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 March 31, 2019, $910,000 in cash collateral was held by the Fund.
​
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.
10​
​
Adams Diversified Equity Fund, Inc.
​
Board of Directors
​ Enrique R. Arzac  (2), (3) ​ ​ Roger W. Gale   (1), (2), (4) ​ ​
Craig R. Smith  (3), (4)
 ​
​
Kenneth J. Dale  (1), (3), (4)
 ​ ​
Lauriann C. Kloppenburg  (2), (3)
 ​ ​
Mark E. Stoeckle  (1)
 ​
​
Frederic A. Escherich  (1), (2), (4)
​ ​ Kathleen T. McGahran  (1), (5) ​ ​ ​ ​
(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
 ​
​ Xuying Chang, CFA ​ ​
Vice President—Research
 ​
​ 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