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ADAMS
DIVERSIFIED EQUITY
FUND
 
​
FIRST QUARTER REPORT
MARCH 31, 2018
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GET THE LATEST NEWS AND INFORMATION
adamsfunds.com/sign-up​
​
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