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Adams Express Company is a closed end investment company that is more than 75 years old, trading on the New York Stock Exchange under the symbol ADX. I have written before about ADX and recently wrote about its sister fund, Petroleum and Resources (NYSE:PEO).

ADX buys and holds quality large-cap stocks and maintains a very stable portfolio, with minimal trading. It presently sells at over a 13% discount from net asset value, which only makes it more appealing. You could use ADX to replace the large-cap section of your portfolio.

It should be noted that Erik K. Bergstrom, who has no affiliation with the fund, has owned 9.2% of the outstanding shares. ADX owns in excess of 8% of the shares of its sister fund, Petroleum and Resources .

As of December 31, 2013, its 10 largest holdings constituted 23.3% of its total portfolio. These holdings are as follows:

Petroleum & Resources4.5%
Apple4.3
JP Morgan Chase2.3
QUALCOMM2.2
Lowe's1.8
IBM1.7
Wells Fargo1.7
Microsoft1.6
AT & T1.6
Google1.6

As of December 31, 2012, ADX had assets of $1,155,997,037. with leverage of 0.3% and almost no short-term assets. ADX is involved in an option writing and selling program which constitutes about 1.5% of assets. ADX had a cost basis in its common stock holdings of $1,010,947,838 which had a market value of $1,153,761,081. ADX has a broadly diversified portfolio.

The 5 year ratios show a fund with decent performance, a very low expense ratio, decent income and moderate turnover. These figures are as follow:

Market Price ReturnNAV ReturnExpense RatioIncomeTurnover
201216.9%14.7%0.65%1.54%27.40%
2011(4.2)(2.8)0.551.2521.50
201011.511.20.581.2916.15
200932.130.60.901.3015.05
2008(38.9)(34.4)0.481.8218.00

The fund, like its sister PEO, has a managed distribution program of 6% of net assets annually. Management feels that its long-term shareholders require a steady source of income. Many individual families can trace their ownership of ADX back five generations.

This a quality fund which should be part of everyone's portfolio, especially when purchased at a substantial discount.

Source: Adams Express: A Long-Term Quality Holding