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ADAMS
DIVERSIFIED EQUITY
FUND
 
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​
FIRST QUARTER REPORT
MARCH 31, 2024
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GET THE LATEST NEWS AND INFORMATION
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​
Letter to Shareholders
​
Dear Fellow Shareholders,
The equity market rally that closed out a strong 2023 continued in the first quarter of 2024. The S&P 500 Index has been up 25% over the last five months and finished the quarter at its all-time high. Strong fourth quarter earnings and upward revisions to 2024 earnings estimates helped drive risk-on sentiment. The U.S. economy continued to brush off fears of a downturn, backed by strength in consumer spending and the labor market. While inflation continued to follow what U.S. Federal Reserve (Fed) Chair Jerome Powell repeatedly called a “bumpy” path, Fed officials remained confident that prices are cooling off, and continued to foresee three interest rate cuts in 2024. For the moment, investors seemed happy to push the timing back and remain optimistic that rates will fall in 2024.
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“Our Fund rose 11.2% in the first quarter, outpacing the S&P 500 benchmark, which returned 10.6%.”
​
Within the S&P 500, artificial intelligence (AI)-related stocks continued to be at the center of the rally, but there were signs of broadening leadership across the market. Ten of the eleven sectors recorded gains and, while Communication Services and Information Technology remained among the best performing sectors, Energy, Financials, and Industrials also generated double-digit returns during the first quarter. Also, global stocks hit multiple record highs, Japanese equities finally surpassed the high reached 35 years ago in 1989, and most commodity prices also increased with gold breaking out to a multi-decade high.
Fears of a recession continued to fade, all but disappearing in the day-to-day news cycle, replaced by talk of a soft landing. Still, many of the issues that fueled those fears as recently as last year remain. Wars in Ukraine to Gaza rage on. Inflation still showed signs of stickiness, and interest rates remained high by recent standards. The yield on the 10-year U.S. Treasury (UST) note may feel less threatening than when it rose above 5% in October 2023, but it did increase during the quarter to 4.20%, as expectations for interest rate cuts were pushed later into 2024. The yield curve between the 2-year and 10-year UST notes remained inverted for the 625th consecutive day in late March. That’s yet another all-time record (set in 1978) to note from this quarter.
We don’t point out these issues to imply that a recession is imminent. We do so to underscore that, while improving earnings growth, strong corporate and consumer balance sheets, and the potential for AI to deliver a step-function improvement in productivity have all supported higher equity prices, the market backdrop remains complicated.
Our Fund rose 11.2% in the first quarter, outpacing the S&P 500 benchmark, which returned 10.6%. Information Technology was the primary contributor to relative performance, with additional relative gains from the Consumer Staples, Consumer Discretionary, and Energy sectors. In contrast, Financials was the lone meaningful detractor on a relative basis, although Materials weighed modestly on relative performance.
​
​
Letter to Shareholders (continued)
​
The Fund’s holdings in the Technology sector increased 14.9%, outperforming the 12.7% return of the sector in the S&P 500. Strong stock selection accounted for most of the relative strength. Micron Technology, the largest U.S. manufacturer of memory computer chips, was a particularly strong performer, rising 38.2% during the quarter. An improving demand/pricing environment for Micron’s chips resulted in stronger quarterly earnings and higher expectations for future growth.
Our Consumer Staples stocks generated a 11.1% return versus the benchmark sector return of 7.5%. The leading contributor was Target Corporation, a position we added to the portfolio early in the first quarter. We believed that, after struggling for much of the prior two years with excess inventories, Target would begin to deliver improving sales and higher profit margins. Evidence of this was reflected in its March earnings report, and the stock rose 26.8% following its addition to our portfolio.
Energy was the second-best performing sector in the S&P 500 in the first quarter, returning 13.7%. Our Energy holdings increased 16.8%. Marathon Petroleum, a large oil refiner, was a particularly strong performer, rising 36.5% in the period. Marathon has used its peer-leading margins and free cash flow to repurchase almost 40% of its outstanding shares over the last three years. Diamondback Energy also added value to the Fund. During the quarter, Diamondback announced the acquisition of privately-owned Endeavor Energy Resources, solidifying its position as the largest pure-play oil producer in the Permian Basin.
Our performance in the Financials sector fell short of our expectations with a return of 10.0%, versus the benchmark sector return of 12.5%. Property and casualty insurance stocks, led by auto insurers, were among the strongest performers in the sector and our lack of exposure to this segment hurt our relative performance. Weak capital markets activity negatively impacted earnings for Morgan Stanley, leading the stock to significantly underperform the sector. Morgan Stanley’s high net worth businesses remain strong, and a potential recovery in capital markets activity keeps us interested in the stock.
For the three months ended March 31, 2024, the total return on the Fund’s net asset value (“NAV”) per share (with dividends and capital gains reinvested) was 11.2%. This compares to the 10.6% total return for the S&P 500 and a 10.4% total return for the Morningstar U.S. Large Blend category over the same time period. The total return on the market price of the Fund’s shares for the period was 10.5%.
For the twelve months ended March 31, 2024, the Fund’s total return on NAV was 32.6%. Comparable figures for the S&P 500 and Morningstar U.S. Large Blend category were 29.9% and 29.1%, respectively. The total return on the market price of the Fund’s shares for the period was 35.2%.
During the quarter, the Fund paid distributions to shareholders of  $6.2 million, or $.05 per share, consisting of $.01 long-term capital gain realized in 2023 and $.04 net investment income realized in 2024.
2​
​
Letter to Shareholders (continued)
​
After a strong year in 2023, the market’s continued rise was welcome news for equity investors. We have been pleased that many companies have continued to grow earnings and generate strong cash flows—their ability to innovate and execute is very impressive. At the same time, market valuation levels can’t be called cheap and there are a number of macroeconomic and geopolitical factors that could adversely impact the investing landscape. Throw in an election cycle that is likely to resemble a rollercoaster and it is easy to wonder what will come next. While we will monitor the macroeconomic situation and make needed adjustments, it will be business as usual for us. We remain focused on our process. That means remaining disciplined, holding a long-term perspective, managing risk, and identifying timely opportunities in quality companies with strong fundamentals and the ability to grow earnings over time.
We appreciate your trust and will continue to do our best to deserve it.
By order of the Board of Directors,
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James P. Haynie, CFA
Chief Executive Officer
April 18, 2024
 
 
​
​
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)
​ ​ ​
2024
​ ​
2023
​
At March 31: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Net asset value per share ​ ​ ​ $ 22.81 ​ ​ ​ ​ $ 18.52 ​ ​
Market price per share ​ ​ ​ $ 19.52 ​ ​ ​ ​ $ 15.55 ​ ​
Shares outstanding ​ ​ ​ ​ 124,051,688 ​ ​ ​ ​ ​ 120,844,712 ​ ​
Total net assets ​ ​ ​ $ 2,829,484,494 ​ ​ ​ ​ $ 2,238,417,080 ​ ​
Average net assets ​ ​ ​ $ 2,685,700,471 ​ ​ ​ ​ $ 2,181,454,419 ​ ​
Unrealized appreciation on investments ​ ​ ​ $ 1,255,515,651 ​ ​ ​ ​ $ 757,080,578 ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
For the three months ended March 31: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Net investment income ​ ​ ​ $ 3,761,365 ​ ​ ​ ​ $ 4,035,535 ​ ​
Net realized gain (loss) ​ ​ ​ $ 76,552,150 ​ ​ ​ ​ $ 40,748,226 ​ ​
Cost of shares repurchased ​ ​ ​ $ — ​ ​ ​ ​ $ 851,641 ​ ​
Shares repurchased ​ ​ ​ ​ — ​ ​ ​ ​ ​ 57,434 ​ ​
Total return (based on market price) ​ ​ ​ ​ 10.5% ​ ​ ​ ​ ​ 7.3% ​ ​
Total return (based on net asset value) ​ ​ ​ ​ 11.2% ​ ​ ​ ​ ​ 6.9% ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Key ratios: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Expenses to average net assets* ​ ​ ​ ​ 0.61% ​ ​ ​ ​ ​ 0.66% ​ ​
Net investment income to average net assets* ​ ​ ​ ​ 0.58% ​ ​ ​ ​ ​ 0.78% ​ ​
Portfolio turnover* ​ ​ ​ ​ 68.5% ​ ​ ​ ​ ​ 80.0% ​ ​
Net cash & short-term investments to net assets ​ ​ ​ ​ 0.5% ​ ​ ​ ​ ​ 0.4% ​ ​
​
*
Annualized
​
Ten Largest Equity Portfolio Holdings
​
March 31, 2024
(unaudited)
​ ​ ​
Market Value
​ ​
Percent
of Net Assets
​
Microsoft Corporation ​ ​ ​ $ 223,738,896 ​ ​ ​ ​ ​ 7.9% ​ ​
Apple Inc. ​ ​ ​ ​ 149,890,668 ​ ​ ​ ​ ​ 5.3 ​ ​
NVIDIA Corporation ​ ​ ​ ​ 145,563,516 ​ ​ ​ ​ ​ 5.1 ​ ​
Amazon.com, Inc. ​ ​ ​ ​ 123,488,148 ​ ​ ​ ​ ​ 4.4 ​ ​
Alphabet Inc. Class A ​ ​ ​ ​ 107,099,928 ​ ​ ​ ​ ​ 3.8 ​ ​
Meta Platforms, Inc. Class A ​ ​ ​ ​ 76,770,198 ​ ​ ​ ​ ​ 2.7 ​ ​
JPMorgan Chase & Co. ​ ​ ​ ​ 60,963,909 ​ ​ ​ ​ ​ 2.2 ​ ​
Visa Inc. Class A ​ ​ ​ ​ 54,465,532 ​ ​ ​ ​ ​ 1.9 ​ ​
UnitedHealth Group Incorporated ​ ​ ​ ​ 53,279,190 ​ ​ ​ ​ ​ 1.9 ​ ​
Adams Natural Resources Fund, Inc.* ​ ​ ​ ​ 50,427,008 ​ ​ ​ ​ ​ 1.8 ​ ​
​ ​ ​ ​ $ 1,045,686,993 ​ ​ ​ ​ ​ 37.0% ​ ​
​
*
Non-controlled affiliated closed-end fund​
​
4​
​
Schedule of Investments
​
March 31, 2024
(unaudited)
​ ​ ​
Shares
 ​ ​
Value (a)
 ​
Common Stocks — 99.5% ​
Communication Services — 9.0%
 ​
Alphabet Inc. Class A (b)
 ​ ​ ​ ​ 709,600 ​ ​ ​ ​ $ 107,099,928 ​ ​
Meta Platforms, Inc. Class A
 ​ ​ ​ ​ 158,100 ​ ​ ​ ​ ​ 76,770,198 ​ ​
Netflix, Inc. (b)
 ​ ​ ​ ​ 52,422 ​ ​ ​ ​ ​ 31,837,453 ​ ​
Verizon Communications Inc.
 ​ ​ ​ ​ 617,000 ​ ​ ​ ​ ​ 25,889,320 ​ ​
Walt Disney Company
 ​ ​ ​ ​ 118,900 ​ ​ ​ ​ ​ 14,548,604 ​ ​
​ ​ ​ ​ ​ 256,145,503 ​ ​
Consumer Discretionary — 10.8%
 ​
Amazon.com, Inc. (b)
 ​ ​ ​ ​ 684,600 ​ ​ ​ ​ ​ 123,488,148 ​ ​
Booking Holdings Inc.
 ​ ​ ​ ​ 7,000 ​ ​ ​ ​ ​ 25,395,160 ​ ​
Home Depot, Inc.
 ​ ​ ​ ​ 41,500 ​ ​ ​ ​ ​ 15,919,400 ​ ​
McDonald’s Corporation
 ​ ​ ​ ​ 93,400 ​ ​ ​ ​ ​ 26,334,130 ​ ​
NIKE, Inc. Class B
 ​ ​ ​ ​ 211,100 ​ ​ ​ ​ ​ 19,839,178 ​ ​
O’Reilly Automotive, Inc. (b)
 ​ ​ ​ ​ 22,800 ​ ​ ​ ​ ​ 25,738,464 ​ ​
Tesla, Inc. (b)
 ​ ​ ​ ​ 134,700 ​ ​ ​ ​ ​ 23,678,913 ​ ​
Uber Technologies, Inc. (b)
 ​ ​ ​ ​ 357,200 ​ ​ ​ ​ ​ 27,500,828 ​ ​
Ulta Beauty, Inc. (b)
 ​ ​ ​ ​ 31,900 ​ ​ ​ ​ ​ 16,679,872 ​ ​
​ ​ ​ ​ ​ 304,574,093 ​ ​
Consumer Staples — 5.8%
 ​
Coca-Cola Company
 ​ ​ ​ ​ 144,000 ​ ​ ​ ​ ​ 8,809,920 ​ ​
Colgate-Palmolive Company
 ​ ​ ​ ​ 255,200 ​ ​ ​ ​ ​ 22,980,760 ​ ​
Monster Beverage Corporation (b)
 ​ ​ ​ ​ 242,668 ​ ​ ​ ​ ​ 14,385,359 ​ ​
PepsiCo, Inc.
 ​ ​ ​ ​ 47,800 ​ ​ ​ ​ ​ 8,365,478 ​ ​
Philip Morris International Inc.
 ​ ​ ​ ​ 259,935 ​ ​ ​ ​ ​ 23,815,245 ​ ​
Procter & Gamble Company
 ​ ​ ​ ​ 226,849 ​ ​ ​ ​ ​ 36,806,250 ​ ​
Target Corporation
 ​ ​ ​ ​ 112,500 ​ ​ ​ ​ ​ 19,936,125 ​ ​
Walmart Inc.
 ​ ​ ​ ​ 506,943 ​ ​ ​ ​ ​ 30,502,760 ​ ​
​ ​ ​ ​ ​ 165,601,897 ​ ​
Energy — 4.1%
 ​
Adams Natural Resources Fund, Inc. (c)(g)
 ​ ​ ​ ​ 2,186,774 ​ ​ ​ ​ ​ 50,427,008 ​ ​
Chevron Corporation
 ​ ​ ​ ​ 89,500 ​ ​ ​ ​ ​ 14,117,730 ​ ​
Diamondback Energy, Inc.
 ​ ​ ​ ​ 90,600 ​ ​ ​ ​ ​ 17,954,202 ​ ​
Hess Corporation
 ​ ​ ​ ​ 92,600 ​ ​ ​ ​ ​ 14,134,464 ​ ​
Marathon Petroleum Corporation
 ​ ​ ​ ​ 99,837 ​ ​ ​ ​ ​ 20,117,156 ​ ​
​ ​ ​ ​ 116,750,560 ​ ​
5
​
Schedule of Investments (continued)
​
March 31, 2024
(unaudited)
​ ​ ​
Shares
 ​ ​
Value (a)
 ​
Financials — 12.8%
 ​
American International Group, Inc.
 ​ ​ ​ ​ 367,000 ​ ​ ​ ​ $ 28,688,390 ​ ​
Bank of America Corp.
 ​ ​ ​ ​ 1,105,368 ​ ​ ​ ​ ​ 41,915,555 ​ ​
Berkshire Hathaway Inc. Class B (b)
 ​ ​ ​ ​ 82,643 ​ ​ ​ ​ ​ 34,753,034 ​ ​
Blackstone Inc.
 ​ ​ ​ ​ 153,600 ​ ​ ​ ​ ​ 20,178,432 ​ ​
Cboe Global Markets, Inc.
 ​ ​ ​ ​ 124,800 ​ ​ ​ ​ ​ 22,929,504 ​ ​
JPMorgan Chase & Co.
 ​ ​ ​ ​ 304,363 ​ ​ ​ ​ ​ 60,963,909 ​ ​
Marsh & McLennan Companies, Inc.
 ​ ​ ​ ​ 100,100 ​ ​ ​ ​ ​ 20,618,598 ​ ​
Mastercard Incorporated Class A
 ​ ​ ​ ​ 30,562 ​ ​ ​ ​ ​ 14,717,742 ​ ​
MetLife, Inc.
 ​ ​ ​ ​ 220,200 ​ ​ ​ ​ ​ 16,319,022 ​ ​
Morgan Stanley
 ​ ​ ​ ​ 302,269 ​ ​ ​ ​ ​ 28,461,649 ​ ​
S&P Global, Inc.
 ​ ​ ​ ​ 39,600 ​ ​ ​ ​ ​ 16,847,820 ​ ​
Visa Inc. Class A
 ​ ​ ​ ​ 195,161 ​ ​ ​ ​ ​ 54,465,532 ​ ​
​ ​ ​ ​ ​ 360,859,187 ​ ​
Health Care — 12.3%
 ​
AbbVie, Inc.
 ​ ​ ​ ​ 180,000 ​ ​ ​ ​ ​ 32,778,000 ​ ​
Cencora, Inc.
 ​ ​ ​ ​ 140,500 ​ ​ ​ ​ ​ 34,140,095 ​ ​
DexCom, Inc. (b)
 ​ ​ ​ ​ 194,957 ​ ​ ​ ​ ​ 27,040,536 ​ ​
Eli Lilly and Company
 ​ ​ ​ ​ 63,568 ​ ​ ​ ​ ​ 49,453,361 ​ ​
Health Care Select Sector SPDR Fund
 ​ ​ ​ ​ 218,500 ​ ​ ​ ​ ​ 32,279,005 ​ ​
IDEXX Laboratories, Inc. (b)
 ​ ​ ​ ​ 26,100 ​ ​ ​ ​ ​ 14,092,173 ​ ​
Johnson & Johnson
 ​ ​ ​ ​ 101,200 ​ ​ ​ ​ ​ 16,008,828 ​ ​
Merck & Co., Inc.
 ​ ​ ​ ​ 86,400 ​ ​ ​ ​ ​ 11,400,480 ​ ​
Regeneron Pharmaceuticals, Inc. (b)
 ​ ​ ​ ​ 32,300 ​ ​ ​ ​ ​ 31,088,427 ​ ​
Thermo Fisher Scientific Inc.
 ​ ​ ​ ​ 40,700 ​ ​ ​ ​ ​ 23,655,247 ​ ​
UnitedHealth Group Incorporated
 ​ ​ ​ ​ 107,700 ​ ​ ​ ​ ​ 53,279,190 ​ ​
Zoetis, Inc. Class A
 ​ ​ ​ ​ 135,900 ​ ​ ​ ​ ​ 22,995,639 ​ ​
​ ​ ​ ​ ​ 348,210,981 ​ ​
Industrials — 8.3%
 ​
Boeing Company (b)
 ​ ​ ​ ​ 34,777 ​ ​ ​ ​ ​ 6,711,613 ​ ​
Generac Holdings Inc. (b)
 ​ ​ ​ ​ 103,400 ​ ​ ​ ​ ​ 13,042,876 ​ ​
Hubbell Incorporated
 ​ ​ ​ ​ 55,400 ​ ​ ​ ​ ​ 22,993,770 ​ ​
Ingersoll Rand Inc.
 ​ ​ ​ ​ 267,300 ​ ​ ​ ​ ​ 25,380,135 ​ ​
Leidos Holdings, Inc.
 ​ ​ ​ ​ 195,900 ​ ​ ​ ​ ​ 25,680,531 ​ ​
Pentair plc
 ​ ​ ​ ​ 272,900 ​ ​ ​ ​ ​ 23,316,576 ​ ​
Republic Services, Inc.
 ​ ​ ​ ​ 132,500 ​ ​ ​ ​ ​ 25,365,800 ​ ​
Trane Technologies plc
 ​ ​ ​ ​ 97,000 ​ ​ ​ ​ ​ 29,119,400 ​ ​
TransDigm Group Incorporated
​ ​ ​ ​ 22,600 ​ ​ ​ ​ ​ 27,834,160 ​ ​
Union Pacific Corporation
 ​ ​ ​ ​ 142,400 ​ ​ ​ ​ ​ 35,020,432 ​ ​
​ ​ ​ ​ ​ 234,465,293 ​ ​
6​
​
Schedule of Investments (continued)
​
March 31, 2024
(unaudited)
​ ​ ​
Shares
 ​ ​
Value (a)
 ​
Information Technology — 29.8%
 ​
Accenture plc Class A
 ​ ​ ​ ​ 38,319 ​ ​ ​ ​ $ 13,281,749 ​ ​
Adobe Inc. (b)
 ​ ​ ​ ​ 58,300 ​ ​ ​ ​ ​ 29,418,180 ​ ​
Advanced Micro Devices, Inc. (b)
 ​ ​ ​ ​ 197,100 ​ ​ ​ ​ ​ 35,574,579 ​ ​
Analog Devices, Inc.
 ​ ​ ​ ​ 112,000 ​ ​ ​ ​ ​ 22,152,480 ​ ​
Apple Inc.
 ​ ​ ​ ​ 874,100 ​ ​ ​ ​ ​ 149,890,668 ​ ​
Arista Networks, Inc. (b)
 ​ ​ ​ ​ 70,391 ​ ​ ​ ​ ​ 20,411,982 ​ ​
Broadcom Inc.
 ​ ​ ​ ​ 8,800 ​ ​ ​ ​ ​ 11,663,608 ​ ​
Cisco Systems, Inc.
 ​ ​ ​ ​ 359,400 ​ ​ ​ ​ ​ 17,937,654 ​ ​
Intuit Inc.
 ​ ​ ​ ​ 47,600 ​ ​ ​ ​ ​ 30,940,000 ​ ​
Lam Research Corporation
 ​ ​ ​ ​ 37,500 ​ ​ ​ ​ ​ 36,433,875 ​ ​
Micron Technology, Inc.
 ​ ​ ​ ​ 260,700 ​ ​ ​ ​ ​ 30,733,923 ​ ​
Microsoft Corporation
 ​ ​ ​ ​ 531,800 ​ ​ ​ ​ ​ 223,738,896 ​ ​
NVIDIA Corporation
 ​ ​ ​ ​ 161,100 ​ ​ ​ ​ ​ 145,563,516 ​ ​
Oracle Corporation
 ​ ​ ​ ​ 48,800 ​ ​ ​ ​ ​ 6,129,768 ​ ​
Salesforce, Inc.
 ​ ​ ​ ​ 135,700 ​ ​ ​ ​ ​ 40,870,126 ​ ​
Synopsys, Inc. (b)
 ​ ​ ​ ​ 50,100 ​ ​ ​ ​ ​ 28,632,150 ​ ​
​ ​ ​ ​ ​ 843,373,154 ​ ​
Materials — 2.2%
 ​
Avery Dennison Corporation
 ​ ​ ​ ​ 25,900 ​ ​ ​ ​ ​ 5,782,175 ​ ​
Freeport-McMoRan, Inc.
 ​ ​ ​ ​ 404,100 ​ ​ ​ ​ ​ 19,000,782 ​ ​
Linde plc
 ​ ​ ​ ​ 61,400 ​ ​ ​ ​ ​ 28,509,248 ​ ​
PPG Industries, Inc.
 ​ ​ ​ ​ 64,900 ​ ​ ​ ​ ​ 9,404,010 ​ ​
​ ​ ​ ​ ​ 62,696,215 ​ ​
Real Estate — 2.2%
 ​
CBRE Group, Inc. Class A (b)
 ​ ​ ​ ​ 118,700 ​ ​ ​ ​ ​ 11,542,388 ​ ​
Equinix, Inc.
 ​ ​ ​ ​ 19,500 ​ ​ ​ ​ ​ 16,093,935 ​ ​
Prologis, Inc.
 ​ ​ ​ ​ 174,800 ​ ​ ​ ​ ​ 22,762,456 ​ ​
Public Storage
 ​ ​ ​ ​ 43,300 ​ ​ ​ ​ ​ 12,559,598 ​ ​
​ ​ ​ ​ 62,958,377 ​ ​
​
7
​
Schedule of Investments (continued)
​
March 31, 2024
(unaudited)
​ ​ ​
Shares
 ​ ​
Value (a)
 ​
S&P 500 Index — 0.3%
 ​
SPDR S&P 500 ETF Trust
 ​ ​ ​ ​ 16,200 ​ ​ ​ ​ $ 8,473,734
​
Utilities — 1.9%
 ​
Atmos Energy Corporation
 ​ ​ ​ ​ 97,300 ​ ​ ​ ​ ​ 11,566,051
DTE Energy Company
 ​ ​ ​ ​ 137,400 ​ ​ ​ ​ ​ 15,408,036
NextEra Energy, Inc.
 ​ ​ ​ ​ 288,300 ​ ​ ​ ​ ​ 18,425,253
Utilities Select Sector SPDR Fund
 ​ ​ ​ ​ 110,000 ​ ​ ​ ​ ​ 7,221,500
​ ​ ​ ​ ​ 52,620,840
Total Common Stocks ​
(Cost $1,562,365,399)
 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2,816,729,834
Other Investments — 0.0% ​
Financials — 0.0%
 ​
Adams Funds Advisers, LLC (b)(d)(g)
 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
(Cost $150,000)
 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 466,000
Short-Term Investments — 0.4% ​
Money Market Funds — 0.4%
 ​
Morgan Stanley Institutional Liquidity Funds
Prime Portfolio, 5.38% (e)
 ​ ​ ​ ​ 9,999,709 ​ ​ ​ ​ ​ 10,000,709
Northern Institutional Treasury Premier
Portfolio, 5.15% (e)
 ​ ​ ​ ​ 759,579 ​ ​ ​ ​ ​ 759,579
Total Short-Term Investments ​
(Cost $10,761,838)
 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 10,760,288
Total — 99.9% ​
(Cost $1,573,277,237)
 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2,827,956,122
Other Assets Less Liabilities — 0.1% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1,528,372
Net Assets — 100.0%
 ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 2,829,484,494
​
8​
​
Schedule of Investments (continued)
​
March 31, 2024
(unaudited)
Total Return Swap Agreements — 0.0%
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
​ ​ Deere & Company
(37,000 shares) 		​ ​
4/15/2025
 ​ ​ ​ $ 13,858,354 ​ ​ ​ ​ $ 1,348,143 ​ ​ ​ ​ $ — ​ ​
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
(113,700 shares)
 ​ ​
4/15/2025
 ​ ​ ​ ​ (13,815,596) ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (511,377) ​ ​
Gross unrealized gain (loss) on open total return swap agreements ​ ​ ​ $ 1,348,143 ​ ​ ​ ​ $ (511,377) ​ ​
Net unrealized gain on open total return swap agreements (f) ​ ​ ​ $ 836,766 ​ ​ ​
​
(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 total return swap agreements is Morgan Stanley. At March 31, 2024, $790,000 in cash collateral was held by the fund.
​
(g)
During the three months ended March 31, 2024, investments in affiliates were as follows:
​
​ ​ ​ ​ ​ ​ ​ ​ ​
​
Affiliate
 ​ ​
Shares held
 ​ ​
Net realized gain
(loss) and
long-term capital
gain distributions
 ​ ​
Dividend income
​ ​
Change in
unrealized
appreciation
 ​ ​
Value
 ​
​ Adams Funds Advisers, LLC (controlled) ​ ​ ​ ​ n/a ​ ​ ​ ​ $ — ​ ​ ​ ​ $ — ​ ​ ​ ​ $ — ​ ​ ​ ​ $ 466,000 ​ ​
​ Adams Natural Resources Funds, Inc.
(non-controlled)		 ​ ​ ​ ​ 2,186,774 ​ ​ ​ ​ ​ 21,868 ​ ​ ​ ​ ​ 196,810 ​ ​ ​ ​ ​ 5,313,861 ​ ​ ​ ​ ​ 50,427,008 ​ ​
​ Total ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 21,868 ​ ​ ​ ​ $ 196,810 ​ ​ ​ ​ $ 5,313,861 ​ ​ ​ ​ $ 50,893,008 ​ ​
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
​ Kenneth J. Dale (1) (2) (5) ​ ​ Mary Chris Jammet (1) (2) (3) (4) ​ ​
Mark E. Stoeckle (3) (4)
 ​
​
Frederic A. Escherich (1) (2) (3) (4)
​ ​
Lauriann C. Kloppenburg (1) (2) (3) (4)
​ ​ ​ ​
​
James P. Haynie (1)
 ​ ​ Jane Musser Nelson (2) (3) (4) ​ ​ ​ ​
​
(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
​
James P. Haynie, CFA
​ ​ Chief Executive Officer ​
​ D. Cotton Swindell, CFA ​ ​
President
 ​
​
Brian S. Hook, CFA, CPA
​ ​ Vice President and Chief Financial Officer ​
​
Janis F. Kerns
 ​ ​
Vice President, General Counsel, Secretary, and Chief Compliance Officer
 ​
​ Gregory W. Buckley ​ ​
Vice President—Research
 ​
​ Xuying Chang, CFA ​ ​
Vice President—Research
 ​
​ Steven R. Crain, CFA ​ ​
Vice President—Research
 ​
​ Michael A. Kijesky, 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
​ ​ 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
Tickers: ADX (NYSE), XADEX (NASDAQ)
Independent Registered Public Accounting Firm: PricewaterhouseCoopers LLP
Custodian of Securities: The Northern Trust Company
Transfer Agent & Registrar: Equiniti Trust Company, LLC
Attn: Stockholder Relations Department
P.O. Box 500
Newark, NJ 07101
(877) 260-8188
Website: https://equiniti.com/us/ast-access
Email: helpAST@equiniti.com