0001387131-22-011231.txt : 20221109 0001387131-22-011231.hdr.sgml : 20221109 20221109133556 ACCESSION NUMBER: 0001387131-22-011231 CONFORMED SUBMISSION TYPE: NPORT-P PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20220930 FILED AS OF DATE: 20221109 DATE AS OF CHANGE: 20221109 PERIOD START: 20221231 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTRAL SECURITIES CORP CENTRAL INDEX KEY: 0000018748 IRS NUMBER: 131875970 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: NPORT-P SEC ACT: 1940 Act SEC FILE NUMBER: 811-00179 FILM NUMBER: 221371672 BUSINESS ADDRESS: STREET 1: 630 FIFTH AVENUE STREET 2: SUITE 820 CITY: NEW YORK STATE: NY ZIP: 10111 BUSINESS PHONE: 212-698-2020 MAIL ADDRESS: STREET 1: 630 FIFTH AVENUE STREET 2: SUITE 820 CITY: NEW YORK STATE: NY ZIP: 10111 FORMER COMPANY: FORMER CONFORMED NAME: TRANS CENTRAL SECURITIES CORP DATE OF NAME CHANGE: 19700722 FORMER COMPANY: FORMER CONFORMED NAME: BUERGER LADET & RADINSKY INC DATE OF NAME CHANGE: 19671026 NPORT-P 1 primary_doc.xml NPORT-P false 0000018748 XXXXXXXX CENTRAL SECURITIES CORPORATION 811-00179 0000018748 549300D87MQ4TEVRK235 630 Fifth Avenue Suite 820 NY 10111 212-698-2020 N/A N/A 2022-12-31 2022-09-30 N 1101649686 4434637 1097215049 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N AerCap Holdings N.V. 549300SZYINBBLJQU475 Common Stock N00985106 400000 NS USD 16932000 1.54 Long EC CORP NL N 1 N N N Alphabet Inc. 5493006MHB84DD0ZWV18 Common Stock - Class A 02079K305 500000 NS USD 47825000 4.36 Long EC CORP US N 1 N N N Amazon.com, Inc. ZXTILKJKG63JELOEG630 Common Stock 023135106 220000 NS USD 24860000 2.27 Long EC CORP US N 1 N N N American Express Company R4PP93JZOLY261QX3811 Common Stock 025816109 270000 NS USD 36425700 3.32 Long EC CORP US N 1 N N N Analog Devices, Inc. GYVOE5EZ4GDAVTU4CQ61 Common Stock 032654105 445000 NS USD 62006300 5.65 Long EC CORP US N 1 N N N Aon plc VVT2B79I2Z4U3R6BY589 Common Stock - Class A G0403H108 150000 NS USD 40180500 3.66 Long EC CORP IE N 1 N N N Brady Corporation 549300G2LEQOFQC8GY34 Common Stock - Class A 104674106 240000 NS USD 10015200 0.91 Long EC CORP US N 1 N N N Capital One Financial Corporation ZUE8T73ROZOF6FLBAR73 Common Stock 14040H105 300000 NS USD 27651000 2.52 Long EC CORP US N 1 N N N Coherent Corp. 549300O5C25A0MMHHU33 Common Stock 19247G107 335000 NS USD 11674750 1.06 Long EC CORP US N 1 N N N Hess Corporation UASVRYNXNK17ULIGK870 Common Stock 42809H107 460000 NS USD 50135400 4.57 Long EC CORP US N 1 N N N Intel Corporation KNX4USFCNGPY45LOCE31 Common Stock 458140100 420000 NS USD 10823400 0.99 Long EC CORP US N 1 N N N Johnson & Johnson 549300G0CFPGEF6X2043 Common Stock 478160104 90000 NS USD 14702400 1.34 Long EC CORP US N 1 N N N JPMorgan Chase & Co. 8I5DZWZKVSZI1NUHU748 Common Stock 46625H100 230000 NS USD 24035000 2.19 Long EC CORP US N 1 N N N Kennedy-Wilson Holdings, Inc. 549300MOI1T78144X610 Common Stock 489398107 1000000 NS USD 15460000 1.41 Long EC CORP US N 1 N N N Keysight Technologies, Inc. 549300GLKVIO8YRCYN02 Common Stock 49338L103 200000 NS USD 31472000 2.87 Long EC CORP US N 1 N N N Medtronic plc 549300GX3ZBSQWUXY261 Common Stock G5960L103 185000 NS USD 14938750 1.36 Long EC CORP IE N 1 N N N Mercadolibre, Inc. 549300DKPDN9M5S8GB14 Common Stock 58733R102 11000 NS USD 9105580 0.83 Long EC CORP US N 1 N N N Merck & Co., Inc. 4YV9Y5M8S0BRK1RP0397 Common Stock 58933Y105 200000 NS USD 17224000 1.57 Long EC CORP US N 1 N N N Meta Platforms, Inc. BQ4BKCS1HXDV9HN80Z93 Common Stock - Class A 30303M102 100000 NS USD 13568000 1.24 Long EC CORP US N 1 N N N Microsoft Corporation INR2EJN1ERAN0W5ZP974 Common Stock 594918104 90000 NS USD 20961000 1.91 Long EC CORP US N 1 N N N Motorola Solutions, Inc. 6S552MUG6KGJVEBSEC55 Common Stock 620076307 250000 NS USD 55992500 5.1 Long EC CORP US N 1 N N N Progressive Corporation 529900TACNVLY9DCR586 Common Stock 743315103 435000 NS USD 50551350 4.61 Long EC CORP US N 1 N N N Rayonier Inc. HGV8VDVNL0W6SF2U9C50 Common Stock 754907103 700000 NS USD 20979000 1.91 Long EC CORP US N 1 N N N Roche Holding AG 549300U41AUUVOAAOB37 ADR 771195104 300000 NS USD 12186000 1.11 Long EC CORP CH N 1 N N N Roper Technologies, Inc. 54930003T4SXCIWVXY35 Common Stock 776696106 54000 NS USD 19420560 1.77 Long EC CORP US N 1 N N N Star Group, L.P. N/A Common Units 85512C105 211186 OU Common Units USD 1716942.18 0.16 Long EC US N 1 N N N The Charles Schwab Corporation 549300VSGCJ7E698NM85 Common Stock 808513105 600000 NS USD 43122000 3.93 Long EC CORP US N 1 N N N Wolfspeed, Inc. 549300OGU88P3AW3TO93 Common Stock 977852102 170000 NS USD 17571200 1.6 Long EC CORP US N 1 N N N The Plymouth Rock Company Incorporated 98450064D596453C6420 Common Stock - Class A N/A 28424 NS USD 258658400 23.57 Long EC CORP US Y 3 N N N Fidelity Colchester Street Trust 549300NPOIO5VXBKJA04 Treasury Only Portfolio Class I 233809300 37519353 NS USD 37519353 3.42 Long STIV RF US N 1 N N N U.S. Government N/A Treasury Bill 912796YD5 40000000 PA USD 39972939 3.64 Long DBT UST US N 2 2022-10-11 None 2.474 N N N N N N U.S. Government N/A Treasury Bill 912796YP8 40000000 PA USD 39889040 3.64 Long DBT UST US N 2 2022-11-08 None 2.672 N N N N N N 2022-11-09 CENTRAL SECURITIES CORPORATION /s/ Lawrence P. Vogel Lawrence P. Vogel Vice President and Treasurer XXXX NPORT-EX 2 cet_nportex.htm STATEMENT OF INVESTMENTS

 

 

 

CENTRAL SECURITIES CORPORATION

STATEMENT OF INVESTMENTS

September 30, 2022

(unaudited)

 

Shares      Value 
COMMON STOCKS 89.3%
     Banks 2.2%     
 230,000   JPMorgan Chase & Co.  $24,035,000 
           
     Communications Services 5.6%     
 500,000   Alphabet Inc. Class A (a)   47,825,000 
 100,000   Meta Platforms, Inc. Class A (a)   13,568,000 
         61,393,000 
           
     Diversified Financial 9.8%     
 270,000   American Express Company   36,425,700 
 300,000   Capital One Financial Corporation   27,651,000 
 600,000   The Charles Schwab Corporation   43,122,000 
         107,198,700 
           
     Diversified Industrial 4.2%     
 400,000   AerCap Holdings N.V. (a)   16,932,000 
 240,000   Brady Corporation Class A   10,015,200 
 54,000   Roper Technologies, Inc.   19,420,560 
         46,367,760 
           
     Energy 4.6%     
 460,000   Hess Corporation   50,135,400 
           
     Health Care 5.4%     
 90,000   Johnson & Johnson   14,702,400 
 185,000   Medtronic plc.   14,938,750 
 200,000   Merck & Co., Inc.   17,224,000 
 300,000   Roche Holding AG ADR   12,186,000 
         59,051,150 
           
     Insurance Brokers 3.7%     
 150,000   Aon plc Class A   40,180,500 
           
     Insurance Underwriters 28.2%     
 28,424   The Plymouth Rock Company Class A (b)(c)   258,658,400 
 435,000   Progressive Corporation   50,551,350 
         309,209,750 
           
     Real Estate 3.3%     
 1,000,000   Kennedy-Wilson Holdings Inc.   15,460,000 
 700,000   Rayonier Inc.   20,979,000 
         36,439,000 

 

 

 

 

Shares       Value 
     Retailing 3.1%     
 220,000   Amazon.com, Inc. (a)  $24,860,000 
 11,000   Mercadolibre, Inc. (a)   9,105,580 
         33,965,580 
           
     Semiconductor 8.2%     
 445,000   Analog Devices, Inc.   62,006,300 
 420,000   Intel Corporation   10,823,400 
 170,000   Wolfspeed, Inc., Inc. (a)   17,571,200 
         90,400,900 
           
     Software and Services 1.9%     
 90,000   Microsoft Corporation   20,961,000 
           
     Technology Hardware and Equipment 9.0%     
 335,000   Coherent Corporation (a)(e)   11,674,750 
 200,000   Keysight Technologies, Inc. (a)   31,472,000 
 250,000   Motorola Solutions, Inc.   55,992,500 
         99,139,250 
           
     Utilities 0.1%     
 211,186   Star Group, L.P.   1,716,942 
           
     Total Common Stocks (cost $378,816,910)   980,193,932 
           
 SHORT-TERM INVESTMENTS 10.7%
           
     Money Market Fund 3.4%     
 37,519,353   Fidelity Investments Money Market Fund     
     Treasury Only Portfolio Class I   37,519,353 
Principal    U.S. Treasury Bills 7.3%     
$80,000,000   U.S. Treasury Bills 2.474% - 2.672% due 10/11/22 - 11/8/22 (d)   79,861,979 
     Total Short-Term Investments (cost $117,381,332)   117,381,332 
           
     Total Investments (cost $496,198,242) (100.0%)   1,097,575,264 
           
     Cash, receivables and other assets less liabilities (0.0%)   (360,215)
           
     Net Assets (100%)  $1,097,215,049 

 

 

 

(a) Non-dividend paying.

(b) Affiliate as defined in the Investment Company Act of 1940 and restricted.  See Note 3 and Note 4.

(c) Valued based on Level 3 inputs.  See Note 2.

(d) Valued based on Level 2 inputs.  See Note 2.

(e) Formerly known as II-VI Incorporated.

 

    See accompanying notes to statement of investments.  

 

 

 

 

CENTRAL SECURITIES CORPORATION

(the “Corporation”)

 

NOTES TO STATEMENT OF INVESTMENTS

(unaudited)

 

1. Security Valuation – Marketable common stocks are valued at the last or closing sale price or, if unavailable, at the closing bid price. Investments in money market funds are valued at net asset value per share. Other short-term investments are valued at amortized cost, which approximates fair value. Securities for which no ready market exists are valued at estimated fair value pursuant to procedures adopted by the Board of Directors. The determination of fair value involves subjective judgments. As a result, using fair value to price a security may result in a price materially different from the price used by other investors or the price that may be realized upon the actual sale of the security.

 

As of September 30, 2022, the tax cost of investments was $496,198,242. Net unrealized appreciation was $601,377,023 consisting of gross unrealized appreciation and gross unrealized depreciation of $642,454,334 and $41,077,311, respectively.

 

2. Fair Value Measurements – The Corporation’s investments are categorized below in three broad hierarchical levels based on market price observability as follows:

●Level 1 – Quoted prices in active markets for identical investments;
●Level 2 – Other significant observable inputs obtained from independent sources, for example, quoted prices in active markets for similar investments;
●Level 3 – Significant unobservable inputs including the Corporation’s own assumptions based upon the best information available. The Corporation’s only Level 3 investment is The Plymouth Rock Company Class A Common Stock (“Plymouth Rock”).

 

The designated Level for a security is not necessarily an indication of the risk associated with investing in that security.

 

The Corporation’s investments as of September 30, 2022 are classified as follows:

 

   Level 1   Level 2   Level 3   Total 
Common stocks  $721,535,532    —   $258,658,400   $980,193,932 
Short-term investments   37,519,353    79,861,979    —    117,381,332 
Total investments  $759,054,885   $79,861,979   $258,658,400   $1,097,575,264 

 

The following is a reconciliation of the change in the value of Level 3 investments:

 

Balance at December 31, 2021  $292,767,200 
Change in net unrealized appreciation of investments in affiliated companies included in net decrease in net assets resulting from operations   (34,108,800)
Balance at September 30, 2022  $258,658,400 

 

Unrealized appreciation of Level 3 investments held as of September 30, 2022 decreased by $34,108,800 during the nine months ended September 30, 2022, which is included in the above table.

 

Management assists the Board of Directors in the determination of fair value of Plymouth Rock. In valuing Plymouth Rock as of September 30, 2022, management considered Plymouth Rock’s financial condition and results of operations, the insurance industry outlook, and any transactions in Plymouth Rock’s shares. Management used significant unobservable inputs to develop a range of values for the investment. It used a comparable company approach that utilized the following valuation multiples from selected publicly traded companies: price-to-book value (range: 0.9–1.9; average: 1.3); price-to-historical earnings (range: 10.0–38.4; average: 19.8); and price-to-forward earnings estimates (range: 11.7–26.0; average: 19.2). Management also used Plymouth Rock’s book value and a discounted cash flow model based on a forecasted return on equity of approximately 12% and a cost of capital of approximately 12%. The average of these values was then discounted for lack of marketability and control of the Plymouth Rock shares. Management considered a discount range of 25% to 40%, a range management believes market participants would apply. Management presented and discussed the above information with the Corporation’s directors, who determined the value for the investment.

 

 

 

 

Increases (decreases) in the price-to-book value multiple, price-to-historical earnings multiple, price-to-forward earnings estimate multiple, return on equity rate and book value in isolation would have resulted in a higher (lower) range of fair values. Increases (decreases) in the discount for lack of marketability and control or cost of capital in isolation would have resulted in a lower (higher) range of fair values.

 

3. Restricted Securities - The Corporation may from time to time invest in securities the resale of which is restricted. On September 30, 2022, the Corporation’s only restricted security consisted of 28,424 shares of Plymouth Rock that were acquired on December 15, 1982 at a cost of $710,600. This security had a value of $258,658,400 at September 30, 2022, which was equal to 23.6% of the Corporation’s net assets. The Corporation does not have the right to demand registration of this security.

 

4. Affiliated Companies – Plymouth Rock is an affiliated company as defined in the Investment Company Act of 1940 due to the Corporation’s ownership of 5% or more of the company’s outstanding voting securities. During the nine months ended September 30, 2022, unrealized appreciation from the Corporation’s investment in Plymouth Rock decreased by $34,108,800 and the Corporation received dividends of $9,344,958 from Plymouth Rock. The Chairman of the Corporation is a director of Plymouth Rock. The Chief Executive Officer of the Corporation is a director of certain subsidiaries of Plymouth Rock.