nq33110gam.htm - Generated by SEC Publisher for SEC Filing

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-00041

GENERAL AMERICAN INVESTORS COMPANY, INC. (Exact name of registrant as specified in charter)

100 Park Avenue, 35th Floor, New York, NY 10017 (Address of principal executive offices)(Zip code)

Eugene S. Stark

General American Investors Company, Inc. 100 Park Avenue, 35th Floor, New York, NY 10017 (Name and address of agent for service)

Registrant's telephone number, including area code: 212-916-8400
Date of fiscal year end: December 31
 Date of reporting period: March 31, 2010

ITEM 1. Schedule of Investments

      Value 
Shares  COMMON STOCKS    (note 1) 
AEROSPACE/DEFENSE (3.2%)     
215,000  Textron Inc.    $4,564,450 
325,000  United Technologies Corporation    23,923,250 
    (COST $33,409,026)  28,487,700 
BUILDING AND REAL ESTATE (2.1%)     
1,872,000  CEMEX, S.A. de C.V. ADR (a)  (COST $23,385,068)  19,113,120 
COMMUNICATIONS AND INFORMATION SERVICES (6.2%)     
960,000  Cisco Systems, Inc. (a)(b)    24,988,800 
78,000  Leap Wireless International, Inc. (a)    1,276,080 
700,000  QUALCOMM Incorporated    29,372,000 
    (COST $41,318,833)  55,636,880 
COMPUTER SOFTWARE AND SYSTEMS (8.7%)     
1,290,000  Dell Inc. (a)    19,375,800 
570,000  Microsoft Corporation    16,693,875 
168,100  NetEase.com, Inc. (a)    5,970,912 
67,100  Nintendo Co., Ltd.    22,575,836 
450,000  Teradata Corporation (a)    13,000,500 
    (COST $78,338,915)  77,616,923 
CONSUMER PRODUCTS AND SERVICES (11.2%)     
350,000  Diageo plc ADR    23,607,500 
325,000  Heineken N. V.    16,610,733 
466,100  Hewitt Associates, Inc. Class A (a)    18,541,458 
450,000  Nestle S.A.    22,966,133 
285,000  PepsiCo, Inc.    18,855,600 
    (COST $78,085,518)  100,581,424 
ENVIRONMENTAL CONTROL (INCLUDING SERVICES) (5.5%)     
949,000  Republic Services, Inc.    27,539,980 
630,000  Waste Management, Inc.    21,690,900 
    (COST $38,960,134)  49,230,880 
FINANCE AND INSURANCE (21.3%)     
BANKING (2.4%)       
500,000  Bond Street Holdings LLC (a) (c)    10,000,000 
140,000  M&T Bank Corporation    11,113,200 
    (COST $10,713,356)  21,113,200 
INSURANCE (12.5%)       
315,000  Arch Capital Group Ltd. (a)    24,018,750 
250,000  Everest Re Group, Ltd.    20,232,500 
750,000  Fidelity National Financial, Inc.    11,115,000 
37,500  Forethought Financial Group, Inc. Class A with Warrants (a)(d)    7,875,000 
280,000  MetLife, Inc.    12,135,200 
275,000  PartnerRe Ltd.    21,923,000 
83,000  Transatlantic Holdings, Inc.    4,382,400 
200,000  The Travelers Companies, Inc.    10,788,000 
    (COST $58,086,700)  112,469,850 
OTHER (6.4%)       
325,000  American Express Company    13,409,500 
110  Berkshire Hathaway Inc. Class A (a)    13,398,000 
1,666,667  Epoch Holding Corporation    18,816,670 
635,000  Nelnet, Inc.    11,785,600 
    (COST $30,301,088)  57,409,770 
    (COST $99,101,144)  190,992,820 



      Value 
Shares  COMMON STOCKS (continued)    (note 1) 
HEALTH CARE / PHARMACEUTICALS (4.7%)     
347,100  Cephalon, Inc. (a)    $23,526,438 
529,900  Cytokinetics, Incorporated (a)    1,695,680 
119,500  Gilead Sciences, Inc. (a)    5,433,665 
655,808  Pfizer Inc.    11,247,107 
195,344  Poniard Pharmaceuticals, Inc. (a)    224,646 
    (COST $39,602,800)  42,127,536 
MACHINERY AND EQUIPMENT (2.9%)     
1,200,000  ABB Ltd. ADR  (COST $13,364,456)  26,208,000 
METALS (2.2%)       
254,200  Alpha Natural Resources, Inc. (a)    12,682,038 
150,000  Nucor Corporation    6,807,000 
    (COST $19,939,605)  19,489,038 
MISCELLANEOUS (5.0%)     
  Other (e)  (COST $38,670,419)  44,424,874 
OIL AND NATURAL GAS (INCLUDING SERVICES) (12.6%)     
295,478  Apache Corporation    29,991,017 
100,000  Devon Energy Corporation    6,443,000 
800,000  Halliburton Company    24,104,000 
325,000  McDermott International, Inc. (a)    8,749,000 
2,150,000  Weatherford International Ltd. (a)    34,099,000 
200,000  XTO Energy Inc.    9.436,000 
    (COST $82,773,479)  112,822,017 
RETAIL TRADE (17.1%)       
575,000  Costco Wholesale Corporation    34,333,250 
400,000  J.C. Penney Company, Inc.    12,868,000 
1,775,000  The TJX Companies, Inc.    75,473,000 
550,000  Wal-Mart Stores, Inc.    30,580,000 
    (COST $61,858,262)  153,254,250 
SEMICONDUCTORS (2.8%)     
700,000  ASML Holding N.V.  (COST $17,340,380)  24,780,000 
TECHNOLOGY (3.6%)       
750,000  International Game Technology    13,837,500 
1,900,000  Xerox Corporation    18,525,000 
    (COST $34,368,474)  32,362,500 
TRANSPORTATION (0.9%)     
236,100  Alexander & Baldwin, Inc.  (COST $11,005,032)  7,803,105 
TOTAL COMMON STOCKS (110.0%)  (COST $711,521,545)  984,931,067 
Principal Amount  CORPORATE DEBT (f)     
CONSUMER PRODUCTS AND SERVICES (1.1%)     
$9,600,000  Smithfield Foods, Inc.     
  7.75% due 5/15/2013  (COST $7,827,836)  9,864,096 
TECHNOLOGY (1.0%)       
$10,000,000  VeriFone Holdings, Inc.     
  1.375% due 6/15/2012  (COST $6,152,290)  9,100,000 
TOTAL CORPORATE DEBT (2.1%)  (COST $13,980,126)  18,964,096 



Shares or      Value 
Principal Amount  SHORT-TERM SECURITIES AND OTHER ASSETS    (note 1) 
$50,000,000 U. S. Treasury Bills due 5/27-6/24/10; .100%-.115%  (COST $49,989,328)  $49,989,328 
 30,871,813 SSgA Prime Money Market Fund  (COST $30,871,813)  30,871,813 
   TOTAL SHORT-TERM SECURITIES (9.0%)  (COST $80,861,141)  80,861,141 
TOTAL INVESTMENTS (g) (121.1%)  (COST $806,362,812)  1,084,756,304 
     Cash, receivables and other assets less liabilities (0.1%)    923,063 
PREFERRED STOCK (-21.2%)    (190,117,175) 
NET ASSETS APPLICABLE TO COMMON STOCK (100%)    $895,562,192 
(a) Non-income producing security.     
(b) 130,500 shares held by custodian in a segregated custodial account as collateral for short positions or options, if any.   
(c) Level 3 fair value measurement, restricted security acquired 11/4/09, note 3.     
(d) Level 3 fair value measurement, restricted security acquired 11/3/09, note 3.     
(e) Securities which have been held for less than one year, not previously disclosed, and not restricted.   
(f) Level 2 fair value measurement, note 3.     
(g) At March 31, 2010: (1) the cost of investments for Federal income tax purposes was the same as the cost for financial reporting purposes, 
    (2) aggregate gross unrealized appreciation was $317,126,247, (3) aggregate gross unrealized depreciation was $38,732,755, and (4) net unrealized 
    appreciation was $278,393,492.     


Contracts      Value 
(100 shares each) COMMON STOCK/EXPIRATION DATE/EXERCISE PRICE (note 1) 
COMMUNICATIONS AND INFORMATION SERVICES   
1,305 Cisco Systems, Inc./July 10/$27.00  (PREMIUM DEPOSITED WITH BROKERS $135,333)  $103,095 


                                   NOTES TO FINANCIAL STATEMENTS (Unaudited)

                                                            General American Investors

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.

1. 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
generally valued at the preceding closing price of such securities on their respective exchanges or markets.
Corporate debt securities, domestic and foreign, are generally traded in the over-the-counter market rather
than on a securities exchange. The Company utilizes the latest bid prices provided by independent dealers
and information with respect to transactions in such securities to assist in determining current market value.
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.  Special holdings (restricted securities) and other securities
for which quotations are not readily available are valued at fair value determined in good faith pursuant to
procedures established by and under the supervision of the Board of Directors.

2. OPTIONS

The Company may purchase and write (sell) put and call options. The Company typically purchases put
options or writes call options to hedge the value of portfolio investments while it typically purchases call
options and writes put options to obtain equity market exposure under specified circumstances. 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 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 put option is exercised, the premium reduces the cost basis for the
securities purchased by the Company and is parenthetically disclosed under cost of investments 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.


3. 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 using amortized cost and which transact at net asset value, typically $1 per share),
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates,
credit risk, etc.), and
Level 3 - significant unobservable inputs (including the Company’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 to value the Company’s net
assets as of March 31, 2010:

Assets  Level 1  Level 2  Level 3  Total 
Common stocks  $967,056,067  —  $17,875,000  $984,931,067 
Corporate debt  —  $18,964,096  —  18,964,096 
U.S. Treasury Bills  49,989,328  —  —  49,989,328 
Money market fund  30,871,813  —  —  30,871,813 
     Total  $1,047,917,208  $18,964,096  $17,875,000  $1,084,756,304 
Liabilities         
Options written  ($103,095)  —  —  ($103,095) 

The aggregate value of Level 3 portfolio investments changed during the three months ended March 31, 2010 as follows:

Change in Portfolio Valuations using Significant Unobservable inputs (Level 3)

          Fair Value at December 31, 2009 $16,850,000
            Included in net change in unrealized appreciation on investments 1,025,000
          Fair Value at March 31, 2010 $17,875,000
   
        The amount of net unrealized gain included in the results of operations attributable to
                Level 3 assets held at March 31, 2010 and reported within the caption
                Net change in unrealized appreciation/depreciation in the Statement of Operations  $1,025,000

ITEM 2. CONTROLS AND PROCEDURES.

Conclusions of principal officers concerning controls and procedures

(a) As of March 31, 2010, an evaluation was performed under the supervision and with the participation
of the officers of General American Investors Company, Inc. (the "Registrant"), including the principal
executive officer ("PEO") and principal financial officer ("PFO"), of the effectiveness of the
Registrant's disclosure controls and procedures. Based on that evaluation, the Registrant's officers,
including the PEO and PFO, concluded that, as of March 31, 2010, the Registrant's disclosure controls and
procedures were reasonably designed so as to ensure: (1) that information required to be disclosed by the
Registrant on Form N-Q is recorded, processed, summarized and reported within the time periods specified
by the rules and forms of the Securities and Exchange Commission; and (2) that material information
relating to the Registrant is made known to the PEO and PFO as appropriate to allow
timely decisions regarding required disclosure.

(b) There have been no significant changes in the Registrant's internal control over financial reporting (as
defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a-3(d)) that
occurred during the Registrant's last fiscal quarter that has materially affected, or is reasonably likely to
materially affect, the Registrant's internal control over financial reporting.

 

 

 

ITEM 3. EXHIBITS.

     The certifications of the principal executive officer and principal financial officer pursuant to Rule
30a-2(a)under the Investment Company Act of 1940 are attached hereto as Exhibit 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.

General American Investors Company, Inc.

By: /s/ Eugene S. Stark
       Eugene S. Stark
       Vice-President, Administration

Date: April 28, 2010

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

By: /s/ Spencer Davidson
       Spencer Davidson
       President and Chief Executive Officer
       (Principal Executive Officer)

Date: April 28, 2010

By: /s/ Eugene S. Stark
       Eugene S. Stark
       Vice-President, Administration
       (Principal Financial Officer)

Date: April 28, 2010