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 (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 & Resources | 4.5% |
| Apple | 4.3 |
| JP Morgan Chase | 2.3 |
| QUALCOMM | 2.2 |
| Lowe's | 1.8 |
| IBM | 1.7 |
| Wells Fargo | 1.7 |
| Microsoft | 1.6 |
| AT & T | 1.6 |
| 1.6 |
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 Return | NAV Return | Expense Ratio | Income | Turnover | |
| 2012 | 16.9% | 14.7% | 0.65% | 1.54% | 27.40% |
| 2011 | (4.2) | (2.8) | 0.55 | 1.25 | 21.50 |
| 2010 | 11.5 | 11.2 | 0.58 | 1.29 | 16.15 |
| 2009 | 32.1 | 30.6 | 0.90 | 1.30 | 15.05 |
| 2008 | (38.9) | (34.4) | 0.48 | 1.82 | 18.00 |
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.
Disclosure: I am long ADX.
