Assets
Investments* at value:
 Common stocks and convertible securities
  (cost $310,226,999)                              $594,160,970
 Short-term investments (cost $17,049,986)           17,049,986 $611,210,956
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Cash                                                                  11,051
Securities lending collateral                                     23,804,997
Receivables:
 Investment securities sold                                           36,361
 Dividends and interest                                              586,691
Prepaid expenses                                                   1,756,504
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   Total Assets                                                  637,406,560
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Liabilities
Investment securities purchased                                      687,448
Open option contracts at value (proceeds $259,069)                   193,750
                                                           
Obligations to return securities lending collateral               23,804,997  
                                                  
Accrued expenses                                                   2,507,533
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   Total Liabilities                                              27,193,728
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   Net Assets                                                   $610,212,832
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Net Assets
Common Stock at par value $1.00 per share, authorized
  50,000,000 shares; issued and outstanding
  13,916,380 shares                                             $ 13,916,380
Additional capital surplus                                       305,239,521
Undistributed net investment income                                  533,022
Undistributed net realized gain on investments                     6,524,619
Unrealized appreciation on investments                           283,999,290
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   Net Assets Applicable to Common Stock                        $610,212,832
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   Net Asset Value per Share of Common Stock                          $43.85
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* See Schedule of Investments on pages 7 and 8.

The accompanying notes are an integral part of the financial statements.