August 24, 1999
Dear Fellow Shareholder,
The first six months of 1999 were rough for small company
investing and for Nicholas Limited Edition. The Fund was
essentially flat (0.41)% for the six-month period ended June 30,
1999 compared to a return of 9.28% for the Russell 2000 Index and
12.38% for the S&P 500 Index. The market continues to be
dominated by a narrow list of large companies and some
speculative Internet stocks.
Small company performance during the first six months of
1999, as measured by the Russell 2000 Index, was driven by a
limited number of securities with large gains. Nearly 70% of the
Russell 2000 performance can be attributed to only 25 stocks.
Even more intriguing is that 21 of these 25 stocks were Internet
related with an average return of nearly 200% for the six-month
period. This concentration of performance masked a very languid
market for small companies during the first half of 1999.
Returns for Nicholas Limited Edition and selected indices
are provided in the chart below for the periods ended June 30,
1999.
Average Annual Total Returns*
--------------------------------------
1 Year 3 Years 5 Years 10 Years
------ ------ ------ --------
Nicholas Limited Edition, Inc.
(Distributions Reinvested) (1.19)% 11.48% 17.00% 14.79%
Lipper Small Cap Fund Index**
(Distributions Reinvested) 1.80% 7.72% 15.42% 12.62%
Russell 2000 Index (Dividends
Reinvested) 1.50% 11.22% 15.40% 12.39%
Ending Value of $10,000 invested
in Nicholas Limited Edition, Inc.
(Distributions Reinvested) $9,881 $13,854 $21,927 $39,717
The Fund's underperformance during the six-month period
ended June 30, 1999 was largely due to the lack of Internet
related securities that drove most of the Russell's performance,
along with the Fund's overweighing in healthcare which is under
pressure due to government reimbursement fears. Also, deep
discount value stocks, such as commodity stocks and cyclicals,
rebounded from very depressed levels. This aided the Russell
2000 but hurt the Fund's relative performance. The Fund's long-
term performance relative to its benchmark, the Russell 2000,
remains satisfactory.
Let me take this opportunity to discuss the Internet frenzy-
taking place in the markets today. Many of these companies are
coming to market with little or no revenues, a concept, and a lot
of hype. In the past, most of these companies would not be ready
for public ownership. The public however seems to have an
insatiable appetite for anything "dot-com". Many of these
companies end up with market valuations that are larger than well-
established, profitable companies even though many of the
Internet companies have very little revenue and no profit in
sight.
We believe the Internet is real, however, we feel the sector
currently has far too much risk for Nicholas Limited Edition. In
fact since June 30th many of the Internet stocks have fallen over
50% from their highs, displaying their volatility. We will
continue to look at the Internet sector for strong investment
opportunities, however, we will not compromise our investment
philosophy by chasing fads or stock performance that contain
large amounts of risk. Following our philosophy has negatively
affected our short-term performance as has been articulated
earlier in this letter. We have been through other periods such
as this, usually during speculative bull markets when
fundamentals mean very little and concepts drive stock prices.
We believe at some point fundamentals such as cash flow,
profitability and return on capital will return to drive stock
performance.
Thank you for your patience.
Sincerely,
/s/ David O. Nicholas
-----------------
David O. Nicholas
Portfolio Manager
*Total returns are historical and include change in share price
and reinvestment of dividend and capital gain distributions.
Past performance is no guarantee of future results. Principal
value and return will fluctuate so an investment, when redeemed,
may be worth more or less than original cost.
**Lipper Small Cap Fund Index is an unmanaged equally weighted
Index of the 30 largest mutual funds included in the Lipper Small
Cap Fund category.
Financial Highlights
(For a share outstanding throughout each period)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Year ended December 31,
Ended 6/30/99 ----------------------------------------------------
(unaudited) 1998 1997 1996 1995 1994
------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........ $24.20 $25.07 $20.74 $19.22 $17.09 $18.68
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.................. .01 .01 .00(1) .01 .08 .10
Net gains(losses) on securities
(realized and unrealized)........... (.11) .38 6.82 4.14 5.07 (.68)
------ ------ ------ ------ ------ ------
Total from investment operations.. (.10) .39 6.82 4.15 5.15 (.58)
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
From net investment income................ -- (.01) (.00)(1) (.01) (.08) (.10)
From capital gains........................ -- (1.25) (2.49) (2.62) (2.94) (.91)
In excess of book realized gains.......... -- (.00)(2) -- -- -- --
------ ------ ------ ------ ------ ------
Total distributions............... -- (1.26) (2.49) (2.63) (3.02) (1.01)
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD.............. $24.10 $24.20 $25.07 $20.74 $19.22 $17.09
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
TOTAL RETURN................................ (.41)%(3) 1.67% 33.02% 21.81% 30.18% (3.04)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (millions)....... $333.0 $367.2 $328.0 $232.8 $169.6 $142.6
Ratio of expenses to average net assets.... .85%(4) .85% .86% .86% .90% .90%
Ratio of net investment income
to average net assets.................... .11%(4) .06% .01% .06% .38% .52%
Portfolio turnover rate.................... 25.66%(4) 30.06% 37.05% 32.31% 35.77% 16.29%
</TABLE>
(1) The amount rounds to $0.00, actual amount $0.0029.
(2) The amount rounds to $(0.00), actual amount $(0.0020).
(3) Not annualized.
(4) Annualized.
The accompanying notes to financial statements
are an integral part of these statements.
Top Ten Portfolio Holdings
June 30, 1999 (unaudited)
- -------------------------------------------------------------------------------
Percentage
Name of Net Assets
- ---- -------------
DBT Online, Inc. ............................. 3.70%
Artesyn Technologies, Inc. ................... 3.33%
International Speedway Corporation - Class B . 3.16%
C.H. Robinson Worldwide, Inc. ................ 3.04%
Brown & Brown, Inc. .......................... 2.96%
Knight Transportation, Inc. .................. 2.96%
Fastenal Company ............................. 2.83%
Thermo BioAnalysis Corporation................ 2.83%
International Speedway Corporation - Class A . 2.62%
Heartland Express, Inc. ...................... 2.61%
------
Total of top ten portfolio holdings .......... 30.04%
------
------
Schedule of Investments
June 30, 1999 (unaudited)
- -------------------------------------------------------------------------------
Shares or Quoted
Principal Market
Amount Value
- ------------ -------------
(Note 1 (a))
COMMON STOCKS - 90.46%
Banks and Finance - 9.33%
45,000 Commerce Bancorp, Inc. .......................... $ 1,923,750
296,500 Community First Bankshares, Inc. ................ 7,078,938
150,000 FirstMerit Corporation .......................... 4,209,375
97,500 Marshall & Ilsley Corporation ................... 6,276,563
250,000 Medallion Financial Corp. ....................... 4,765,625
221,580 National City Bancorporation .................... 4,625,482
143,397 State Financial Services
Corporation ................................... 2,186,804
-------------
31,066,537
-------------
Business Products and Services - 15.74%
303,850 Analysts International Corporation .............. 4,367,844
45,000 Checkfree Holdings Corporation * ................ 1,240,312
147,500 Concord EFS, Inc. * ............................. 6,241,094
376,250 DBT Online, Inc. * .............................. 12,322,187
107,150 G&K Services, Inc. - Class A .................... 5,611,981
287,222 Interim Services, Inc. * ........................ 5,923,954
95,000 Metro Information Services, Inc. * .............. 1,579,375
100,000 Plantronics, Inc. * ............................. 6,512,500
5,000 Portal Software, Inc. * ......................... 231,563
75,790 Quintiles Transnational Corp. * ................. 3,183,180
3,000 Razorfish, Inc. * ............................... 111,188
237,000 TESSCO Technologies Incorporated * + ............ 5,095,500
-------------
52,420,678
-------------
Consumer Products and Services - 2.91%
313,200 Thermedics Inc. * ............................... 2,916,675
508,700 ThermoQuest Corporation * ....................... 6,772,069
-------------
9,688,744
-------------
Health Care Products - 6.85%
135,000 CONMED Corporation * ............................ 4,134,375
92,000 Elan Corporation PLC * .......................... 2,553,000
68,400 Forest Laboratories, Inc. * ..................... 3,163,500
125,250 Osteotech, Inc. * ............................... 3,600,938
50,000 Priority Healthcare Corporation * ............... 1,725,000
441,000 Respironics, Inc. * ............................. 6,670,125
20,000 Xomed Surgical Products, Inc. * ................. 973,750
-------------
22,820,688
-------------
Health Care Services - 13.65%
819,000 Assisted Living Concepts Incorporated * ......... 1,228,500
290,000 Boron, LePore & Associates, Inc. * .............. 2,428,750
261,700 Concentra Managed Care, Inc. * .................. 3,876,431
158,488 National HealthCare Corporation * ............... 1,267,904
457,500 NCS HealthCare, Inc. * .......................... 2,487,656
223,750 Patterson Dental Company * ...................... 7,775,312
245,000 Province Healthcare Company * ................... 4,777,500
433,125 PSS World Medical, Inc. * ....................... 4,845,586
326,250 Renal Care Group, Inc. * ........................ 8,441,719
365,250 Res-Care, Inc. * ................................ 8,309,437
-------------
45,438,795
-------------
Industrial Products and Services - 9.16%
180,000 Fastenal Company ................................ 9,438,750
332,200 General Cable Corporation ....................... 5,315,200
542,100 Thermo BioAnalysis Corporation * ................ 9,418,988
395,000 Thermo Optek Corporation * ...................... 4,098,125
408,580 Thermo Vision Corporation * + ................... 2,247,190
-------------
30,518,253
-------------
Insurance - 4.71%
259,800 Brown & Brown, Inc. ............................. 9,872,400
140,000 Protective Life Corporation ..................... 4,620,000
40,000 StanCorp Financial Group, Inc. .................. 1,200,000
-------------
15,692,400
-------------
Media and Entertainment - 9.74%
406,680 Dover Downs Entertainment, Inc. ................. 7,193,152
120,000 Entercom Communications Corp. * ................. 5,130,000
184,000 International Speedway
Corporation - Class A ......................... 8,740,000
219,310 International Speedway
Corporation - Class B ......................... 10,526,880
17,000 Penske Motorsports, Inc. * ...................... 843,625
-------------
32,433,657
-------------
Real Estate - 0.82%
119,000 National Health Investors, Inc. ................. 2,714,688
-------------
Retail Trade - 2.43%
32,900 Kohl's Corporation * ............................ 2,539,469
110,000 O'Reilly Automotive, Inc. * ..................... 5,541,250
-------------
8,080,719
-------------
Technology and Communications - 6.52%
500,000 Artesyn Technologies, Inc. * .................... 11,093,750
365,800 Asia Satellite Telecommunications
Holdings Limited .............................. 8,436,262
75,000 Time Warner Telecom Inc. * ...................... 2,175,000
-------------
21,705,012
-------------
Transportation - 8.60%
275,000 C.H. Robinson Worldwide, Inc. ................... 10,106,250
530,188 Heartland Express, Inc. * ....................... 8,681,828
461,250 Knight Transportation, Inc. * ................... 9,859,219
-------------
28,647,297
-------------
TOTAL COMMON STOCKS
(cost $223,074,272) ..................... 301,227,468
-------------
SHORT-TERM INVESTMENTS - 7.32%
Commercial Paper - 6.23%
$4,000,000 Raytheon Co.
5.10%, due July 1, 1999 ........................ 4,000,000
1,500,000 Tyco International Group, S.A.
5.20%, due July 8, 1999 ........................ 1,498,483
2,500,000 Tyco International Group, S.A.
5.23%, due July 12, 1999 ....................... 2,496,005
1,500,000 Cox Communications, Inc.
5.27%, due July 13, 1999 ....................... 1,497,365
3,250,000 WICOR Industries, Inc.
5.35%, due July 16, 1999 ....................... 3,242,755
2,500,000 Wausau-Mosinee Paper Corp.
5.20%, due July 21, 1999 ....................... 2,492,778
2,000,000 Quad/Graphics, Inc.
5.40%, due July 23, 1999 ....................... 1,993,400
3,550,000 Fiserv, Inc.
5.25%, due July 26, 1999 ....................... 3,537,057
-------------
20,757,843
-------------
Variable Rate Demand Notes - 1.09%
3,614,154 Firstar Bank U.S.A., N.A.
4.89%, due July 1, 1999 ........................ 3,614,154
-------------
TOTAL SHORT-TERM INVESTMENTS
(cost $24,343,549) ..................... 24,371,997
-------------
TOTAL INVESTMENTS
(cost $247,417,821) .................... 325,599,465
-------------
CASH AND RECEIVABLES,
NET OF LIABILITIES - 2.22% ............. 7,384,140
-------------
TOTAL NET ASSETS
(Basis of percentages
disclosed above) ...................... $ 332,983,605
-------------
-------------
* Nondividend paying security.
+ This company is affiliated with the Fund as
defined in Section 2(a)(3) of the Investment Company Act of
1940, in that the Fund holds 5% or more of its outstanding
voting securities. (Note 5)
The accompanying notes to financial statements
are an integral part of this schedule.
Statement of Assets and Liabilities
June 30, 1999 (unaudited)
- -------------------------------------------------------------------------------
ASSETS:
Investments in securities at market value (Note 1 (a)) --
Nonaffiliated issuers (cost $239,748,995) - see
accompanying schedule of investments............... $318,256,775
Affiliated issuers (cost $7,668,826) - see
accompanying schedule of investments (Note 5)...... 7,342,690
------------
Total investments............................ 325,599,465
------------
Receivables --
Investment securities sold......................... 8,292,810
Dividends and interest............................. 169,417
------------
Total receivables............................ 8,462,227
------------
Total assets................................. 334,061,692
------------
LIABILITIES:
Payables --
Investment securities purchased.................... 738,125
Management fee (Note 2)............................ 200,677
Other payables and accrued expenses................ 139,285
------------
Total liabilities............................ 1,078,087
------------
Total net assets............................. $332,983,605
------------
------------
NET ASSETS CONSIST OF:
Fund shares issued and outstanding....................... $229,279,204
Net unrealized appreciation on investments (Note 3)...... 78,153,196
Accumulated undistributed net realized gains on investments 25,366,774
Accumulated undistributed net investment income.......... 184,431
------------
$332,983,605
------------
------------
NET ASSET VALUE PER SHARE ($.01 par value, 20,000,000 shares authorized),
offering price and redemption price ($332,983,605./.13,814,837) shares
outstanding).................................................. $24.10
------
------
The accompanying notes to financial statements
are an integral part of this statement.
Statement of Operations
For the six months ended June 30, 1999 (unaudited)
- -------------------------------------------------------------------------------
INCOME:
Dividends.................................................. $ 1,207,076
Interest................................................... 384,581
-----------
1,591,657
-----------
EXPENSES:
Management fee (Note 2).................................... 1,208,806
Transfer agent fees........................................ 85,724
Legal fees................................................. 52,901
Postage and mailing fees................................... 19,973
Registration fees.......................................... 16,367
Printing fees.............................................. 10,874
Custodian fees............................................. 8,259
Telephone fees............................................. 528
Directors' fees............................................ 500
Other operating expenses................................... 3,294
-----------
1,407,226
-----------
Net investment income................................ 184,431
-----------
NET REALIZED GAINS ON INVESTMENTS................................. 25,395,972
-----------
NET DECREASE IN UNREALIZED APPRECIATION ON INVESTMENTS ........... (29,594,697)
-----------
Net loss on investments.............................. (4,198,725)
-----------
Net decrease in net assets resulting from operations. $(4,014,294)
-----------
-----------
The accompanying notes to financial statements
are an integral part of this statement.
Statements of Changes in Net Assets
For the six months ended June 30, 1999 (unaudited)
and the year ended December 31, 1998
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998
----------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income...................................................... $ 184,431 $ 206,250
Net realized gains on investments.......................................... 25,395,972 18,041,115
Net increase (decrease) in unrealized appreciation on investments.......... (29,594,697) (14,015,362)
------------ ------------
Net increase (decrease) in net assets resulting from operations....... (4,014,294) 4,232,003
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment income ($0.0142 per share in 1998)....... -- (206,250)
Distributions from net realized gains on investments
($1.2470 per share in 1998).............................................. -- (18,041,115)
Distributions in excess of book realized gains
($0.0020 per share in 1998) (Note 1 (d))................................. -- (29,198)
------------ ------------
Total distributions................................................... -- (18,276,563)
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued (2,151,068 and 5,541,251 shares, respectively). 49,071,052 136,879,599
Net asset value of shares issued in distributions to shareholders
(713,706 shares in 1998)................................................. -- 16,921,966
Cost of shares redeemed (3,507,420 and 4,167,180 shares, respectively)..... (79,264,542) (100,587,882)
------------ ------------
Increase (decrease) in net assets derived
from capital share transactions..................................... (30,193,490) 53,213,683
------------ ------------
Total increase (decrease) in net assets............................... (34,207,784) 39,169,123
------------ ------------
NET ASSETS, at the beginning of the period..................................... 367,191,389 328,022,266
------------ ------------
NET ASSETS, at the end of the period (including undistributed
net investment income of $184,431 and $0, respectively)...................... $332,983,605 $367,191,389
------------ ------------
------------ ------------
</TABLE>
The accompanying notes to financial statements
are an integral part of these statements.
Historical Record (unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Investment Dollar Growth of
Net Income Capital Gain Weighted an Initial
Asset Value Distributions Distributions Price/Earnings $10,000
Per Share Per Share Per Share Ratio** Investment***
----------- ------------- ------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
May 18, 1987 *............................. $10.00 $ -- $ -- -- $10,000
December 31, 1987 ......................... 9.15 .0900 -- 13.9 times 9,242
December 31, 1988.......................... 11.29 .0969 .2527 14.1 11,762
December 31, 1989.......................... 12.49 .1453 .6151 16.3 13,804
December 31, 1990.......................... 12.03 .1207 .1213 14.2 13,566
December 31, 1991.......................... 16.86 .1228 .2407 21.9 19,429
December 31, 1992.......................... 18.77 .0815 .8275 18.8 22,690
December 31, 1993.......................... 18.68 .0867 1.6782 20.4 24,738
December 31, 1994.......................... 17.09 .1031 .9065 18.3 23,985
December 31, 1995.......................... 19.22 .0761 2.9353 25.2 31,223
December 31, 1996.......................... 20.74 .0124 2.6151 30.7 38,031
December 31, 1997.......................... 25.07 .0029 2.4886 33.0 50,590
December 31, 1998.......................... 24.20 .0142 1.2490 30.3 51,436
June 30, 1999.............................. 24.10 -- -- 27.4 51,223
</TABLE>
* Date of Initial Public Offering.
** Based on latest 12 months accomplished earnings.
*** Assuming reinvestment of all distributions.
Range in quarter end price/earnings ratios
High Low
- ------------------------- --------------------
September 30, 1997 35.5 June 30, 1988 13.3
<PAGE>
Notes to Financial Statements
June 30, 1999 (unaudited)
- -------------------------------------------------------------------------------
(1) Summary of Significant Accounting Policies --
Nicholas Limited Edition, Inc. (the "Fund") is an open-end, diversified
management investment company registered under the Investment Company
Act of 1940, as amended. The primary objective of the Fund is
long-term growth. Current income is a small factor in considering the
selection of investments. The following is a summary of the
significant accounting policies of the Fund.
(a) Each equity security, is valued at the last sale price reported by
the principal security exchange on which the issue is traded, or
if no sale is reported, the last bid price. Most debt securities,
excluding short-term investments, are valued at current evaluated
bid price. Variable rate demand notes are valued at cost which
approximates market value. U.S. Treasury Bills and commercial
paper are stated at market value with the resultant difference
between market value and original purchase price being recorded as
interest income. Investment transactions are recorded no later
than the first business day after the trade date. Cost amounts,
as reported on the schedule of investments and the statement of
assets and liabilities, are the same for federal income tax
purposes.
(b) Net realized gains and losses on portfolio securities were
computed on the basis of specific certificates.
(c) Provision has not been made for federal income taxes or excise
taxes since the Fund has elected to be taxed as a "regulated
investment company" and intends to distribute substantially all
taxable income to its shareholders and otherwise comply with the
provisions of the Internal Revenue Code applicable to regulated
investment companies.
(d) Excess distributions of book realized gains is the result of
different accounting treatment for book and tax purposes and
should not be treated as a return of capital for income tax
reporting. The Fund is required to distribute at least 98 percent
of realized gains through October 31 to avoid paying a federal
excise tax. The excess distribution generally represents losses
on the sale of portfolio securities in the months of November and
December. These losses are used to offset future gains.
(e) Dividend income and distributions to shareholders are recorded on
the ex-dividend date. Non-cash dividends, if any, are recorded at
fair market value on date of distribution.
(f) The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements, and the
reported amounts of revenues and expenses during the reporting
period. Actual results could differ from estimates.
(2) Investment Adviser and Management Agreement --
The Fund has an agreement with Nicholas Company, Inc. (with whom
certain officers and directors of the Fund are affiliated) to serve as
investment adviser and manager. Under the terms of the agreement, a
monthly fee is paid to the investment adviser based on .75 of 1% on an
annual basis of the average net asset value. Also, the investment
adviser may be reimbursed for clerical and administrative services
rendered by its personnel. The advisory agreement is subject to an
annual review by the Directors of the Fund.
(3) Net Unrealized Appreciation --
Aggregate gross unrealized appreciation (depreciation) as of June 30,
1999, based on investment cost for federal tax purposes is as follows:
Aggregate gross
unrealized appreciation on investments ............ $103,970,921
Aggregate gross unrealized depreciation
on investments .................................... (25,817,725)
-----------
Net unrealized appreciation .................. $ 78,153,196
-----------
-----------
(4) Investment Transactions --
For the six months ended June 30, 1999, the cost of purchases and the
proceeds from sales of investments, other than short-term obligations,
aggregated $40,358,845 and $101,011,602, respectively.
(5) Transactions with Affiliates --
Following is an analysis of fiscal 1999 transactions with "affiliated
companies" as defined by the Investment Company Act of 1940:
<TABLE>
<CAPTION>
Share Activity
--------------------------------------------------
<S> <C> <C> <C> <C>
Balance Balance
Security Name 12/31/98 Purchases Sales 6/30/99
------------- -------- --------- ----- -------
TESSCO Technologies Incorporated .......... 237,000 -- -- 237,000
Thermo Vision Corporation ................. 408,580 -- -- 408,580
</TABLE>
There were no dividends from, realized gains/losses on, affiliated companies
for the six months ended June 30, 1999.
Officers and Directors
ALBERT O. NICHOLAS, President and Director
THOMAS J. SAEGER, Executive Vice President,
Secretary and Director
MELVIN L. SCHULTZ, Director
DAVID L. JOHNSON, Executive Vice President
DAVID O. NICHOLAS, Senior Vice President
LYNN S. NICHOLAS, Senior Vice President
JEFFREY T. MAY, Senior Vice President
MARK J. GIESE, Vice President
CANDACE L. LESAK, Vice President
TRACY C. EBERLEIN, Assistant Vice President
MARY C. GOSEWEHR, Treasurer
Investment Adviser
NICHOLAS COMPANY, INC.
Milwaukee, Wisconsin
414-272-6133 or 800-227-5987
Transfer Agent
FIRSTAR MUTUAL FUND SERVICES, LLC
Milwaukee, Wisconsin
414-276-0535 or 800-544-6547
Custodian
FIRSTAR BANK MILWAUKEE, N.A.
Milwaukee, Wisconsin
Auditors
ARTHUR ANDERSEN LLP
Milwaukee, Wisconsin
Counsel
MICHAEL, BEST & FRIEDRICH LLP
Milwaukee, Wisconsin
This report is submitted for the information of shareholders of the
Fund. It is not authorized for distribution to prospective investors
unless preceded or accompanied by an effective prospectus.
NICHOLAS LIMITED EDITION, INC.
SEMIANNUAL REPORT
700 North Water Street
Milwaukee, WIsconsin 53202
www.nicholasfunds.com
June 30, 1999
