NICHOLAS LIMITED EDITION, INC.
August 29, 2000
Report to Fellow Shareholders:
During the first half of 2000, the speculative market bubble of 1999
and early 2000 burst from over-expansion. Many speculative small company
stocks, which had returns the magnitude of which have not been seen in
recent history, corrected more than 50% between early March and late May.
In fact, the tech-heavy NASDAQ corrected 37.32% from peak to trough while
the Russell 2000 Growth Index corrected 35.11% during that same time. Many
of the dot.coms, which were all the rage last year, have been declaring
bankruptcy. Despite the fact that the Russell 2000 Index ran up 20.29% from
year-end to March 9th before correcting, Nicholas Limited Edition managed a
7.17% return vs. 3.04% for the Russell 2000 for the six months ended June
30, 2000.
The overall market remains tumultuous as we digest the big gains in
technology and biotech over the past year and wait to see what impact the
Fed's interest rate increases will have on the economy.
Returns for Nicholas Limited Edition and selected indices are provided
in the chart below for the periods ended
June 30, 2000.
[CAPTION]
<TABLE>
Average Annual Total Return*
1 Year 3 Year 5 Year 10 Years
<C> <C> <C> <C> <C>
Nicholas Limited Edition, Inc. (Distributions Reinvested 3.21% 6.45% 14.30% 13.63%
Russell 2000 Index (Dividends Reinvested) 14.32% 10.57% 14.27% 13.56%
Russell 2000 Growth Index (Dividends Reinvested) 28.39% 16.32% 15.80% 13.26%
Russell 2000 Value Index (Dividends Reinvested) (0.93)% 3.85% 11.70% 13.16%
Standard & Poor's Smallcap 500 Index (Dividends Reinvested) 7.25% 19.66% 23.79% 17.79%
Standard & Poor's Smallcap 600 Index 14.38% 10.10% 15.40% 13.99%
Consumer Price Index 3.67% 2.41% 2.47% 2.86%
Ending value of $10,000 invested in Nicholas Limited
Edition, Inc.(Distributions Reinvested) $10,321 $12,063 $19,508 $35,886
Last year and early into 2000, money was flowing out of value stocks
pushing them lower and flowing into growth stocks driving them to
unprecedented high levels. We have provided the returns of the Russell
2000 Value Index vs. the Russell 2000 Growth Index to show the disparate
effect the speculative market has had on these indices. Recently the value
approach has been far inferior to the growth approach due to the tech and
biotech speculation of last year and the value stock selloff. Today's
market is one of extremes. It is a market where some stocks are at
historic high valuations and others at historic lows even within the same
market sector. Furthermore, small companies have been underperforming
large companies for many years. This is a reflection of large companies
becoming more efficient and competitive, thus, making it harder for small
companies to compete. This is supported by the S&P 500 returns vs. the
Russell 2000 returns over the long-term.
Limited's performance for the first six months of 2000, relative to
the small company benchmark, was driven by the overweighting in healthcare
which performed well during the first two quarters. More importantly, our
technology position also helped performance due to the less speculative
nature of our holdings in this area. The Fund's exposure in the media and
entertainment field had a negative influence during the period as did our
financial exposure.
In the first two quarters, we took the opportunity to add to our
telecommunication services sector as that area was hit hard during the
correction making prices attractive. This is a deregulating environment,
allowing small companies many opportunities, with a growing amount of data
and video content. We also increased our technology exposure. We focused
on companies that supply equipment to the telecommunications, internet
infrastructure, and enterprise software markets. These are growth areas of
the economy due to deregulation in the telecommunication sector, the
buildout of the internet infrastructures and the focus of companies to
enhance productivity so as to become more competitive. As of June 30,
2000, the portfolio's major sector weightings are 35% technology; including
communication equipment, hardware, software and services, 19% healthcare,
10% financials and 15% consumer goods.
We feel the market continues to have pockets of speculation and high
valuations, yet also contains many deep values. This seems to be caused by
investors paying anything for growth and nothing for value. When, or if,
this sentiment will change we cannot predict. We are trying to achieve a
balance between growth and value. We think this balance will allow the
Fund to achieve a reasonable return at the appropriate risk level.
Thank you for your continued support.
Sincerely,
David O. Nicholas
* 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.
Financial Highlights
(For a share outstanding throughout each period)
------------------------------------------------------------------------
<CAPTION>
</TABLE>
<TABLE>
Six Months
Ended 06/30/2000
(unaudited) Year ended December 31,
------------- ----------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
NET ASSET VALUE, BEGINNING OF PERIOD $22.61 $24.20 $25.07 $20.74 $19.22 $17.09
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (.01) .05 .01 .00(1) .01 .08
Net gains (losses) on securities
(realized and unrealized) 1.63 (1.05) .38 6.82 4.14 5.07
------ ------ ------ ------ ------ ------
Total from investment operations 1.62 (1.00) .39 6.82 4.15 5.15
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
From net investment income -- (.05) (.01) (.00)(1) (.01) (.08)
From capital gains -- (.54) (1.25) (2.49) (2.62) (2.94)
In excess of book realized gains -- -- (.00)(2) -- -- --
------ ------ ------ ------ ------ ------
Total distributions -- (.59) (1.26) (2.49) (2.63) (3.02)
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $24.23 $22.61 $24.20 $25.07 $20.74 $19.22
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
TOTAL RETURN 7.17%(3) (4.09)% 1.67% 33.02% 21.81% 30.18%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (millions) $255.6 $278.8 $367.2 $328.0 $232.8 $169.6
Ratio of expenses to average net assets .88%(4) .87% .85% .86% .86% .90%
Ratio of net investment income
to average net assets (.14)%(4) .21% .06% .01% .06% .38%
Portfolio turnover rate 77.98%(4) 36.01% 30.06% 37.05% 32.31% 35.77%
</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, 2000 (unaudited)
-----------------------------------------------------------------------
[CAPTION]
<TABLE>
Percentage
Name of Net Assets
---- -------------
<C> <C>
Renal Care Group, Inc. ....................... 4.65%
Plantronics, Inc. ............................ 3.62%
ChoicePoint Inc. ............................. 3.44%
Shire Pharmaceuticals Group PLC .............. 2.74%
Brown & Brown, Inc. .......................... 2.65%
CONMED Corporation ........................... 2.63%
TESSCO Technologies Incorporated ............. 2.60%
NOVA Corporation ............................. 2.30%
Concord EFS, Inc. ............................ 2.25%
Emmis Communications Corporation ............. 2.18%
------
Total of top ten ............................. 29.06%
------
------
</TABLE>
Schedule of Investments
June 30, 2000 (unaudited)
-----------------------------------------------------------
[CAPTION]
<TABLE>
Shares or Quoted
Principal Market
Amount Value
------------ -------------
<C> <C>
(Note 1 (a))
COMMON STOCKS - 90.47%
Communication Services -- 5.73%
52,000 AirGate PCS, Inc. * .............................. $ 2,733,250
165,000 Alamosa PCS Holdings, Inc. * ..................... 3,444,375
220,000 Global TeleSystems, Inc. * ....................... 2,653,750
160,000 ITC/\DeltaCom, Inc. * ............................ 3,570,000
35,000 Time Warner Telecom Inc. * ....................... 2,253,125
------------
14,654,500
------------
Consumer Cyclicals - Retail -- 3.35%
80,000 Fastenal Company ................................. 4,050,000
325,000 O'Reilly Automotive, Inc. * ...................... 4,509,375
------------
8,559,375
------------
Consumer Cyclicals - Services -- 5.65%
197,531 ChoicePoint Inc. * ............................... 8,790,129
107,150 G & K Services, Inc. - Class A ................... 2,685,447
167,222 Interim Services Inc. * .......................... 2,968,191
------------
14,443,767
------------
Consumer Staples -
Media & Entertainment -- 8.99%
134,800 Emmis Communications Corporation * ............... 5,577,350
72,000 Entercom Communications Corp. * .................. 3,510,000
95,000 go.com * ......................................... 1,134,062
36,810 International Speedway
Corporation - Class A ........................... 1,523,014
100,000 International Speedway
Corporation - Class B ........................... 4,150,000
125,000 NBC Internet, Inc. * ............................. 1,562,500
35,000 Radio One, Inc. - Class A * ...................... 1,034,688
70,000 Radio One, Inc. - Class D * ...................... 1,544,375
315,500 Salem Communications Corporation * ............... 2,928,250
------------
22,964,239
------------
Financial - Banks &
Diversified Financials -- 6.27%
99,750 Commerce Bancorp, Inc. ........................... 4,588,500
206,500 Community First Bankshares, Inc. ................. 3,368,531
315,000 Medallion Financial Corp. ........................ 4,862,813
221,580 National City Bancorporation ..................... 3,212,910
------------
16,032,754
------------
Financial - Insurance -- 4.00%
130,000 Brown & Brown, Inc. .............................. 6,760,000
130,000 Protective Life Corporation ...................... 3,461,250
------------
10,221,250
------------
Health Care - Products -- 9.62%
260,000 CONMED Corporation * ............................. 6,727,500
38,400 Forest Laboratories, Inc. * ...................... 3,878,400
135,000 Shire Pharmaceuticals Group PLC * ................ 7,003,125
220,000 Sybron International Corporation * ............... 4,358,750
263,200 Thermedics Inc. * ................................ 2,615,550
------------
24,583,325
------------
Health Care - Services -- 9.14%
200,000 Health Management
Associates, Inc. - Class A * .................... 2,612,500
447,589 PSS World Medical, Inc. * ........................ 3,007,261
58,750 Patterson Dental Company * ....................... 2,996,250
486,250 Renal Care Group, Inc. * ......................... 11,890,320
530,250 Res-Care, Inc. * ................................. 2,850,094
------------
23,356,425
------------
Technology - Communication
Equipment -- 2.53%
40,000 Adaptive Broadband Corporation * ................. 1,470,000
20,000 Digital Lightwave, Inc. * ........................ 2,011,250
45,000 REMEC, Inc. * .................................... 1,884,375
35,000 Telaxis Communications Corporation * ............. 1,093,750
------------
6,459,375
------------
Technology - Hardware -- 9.77%
30,000 Alteon WebSystems, Inc. * ........................ 3,001,875
160,000 Artesyn Technologies, Inc. * ..................... 4,450,000
35,000 August Technology Corporation * .................. 575,312
50,000 Brooks Automation, Inc. * ........................ 3,196,875
80,000 Plantronics, Inc. * .............................. 9,240,000
95,000 Xircom, Inc. * ................................... 4,512,500
------------
24,976,562
------------
Technology - Services -- 15.24%
140,800 Asia Satellite Telecommunications
Holdings Limited ................................ 4,822,400
155,000 Braun Consulting, Inc. * ......................... 3,274,375
221,250 Concord EFS, Inc. * .............................. 5,752,500
30,000 Diamond Technology Partners Incorporated * ....... 2,640,000
97,000 Inforte Corp. * .................................. 3,492,000
123,000 Keane, Inc. * .................................... 2,659,875
450,000 Loral Space & Communications Ltd. * .............. 3,121,875
210,000 NOVA Corporation * ............................... 5,866,875
7,500 StorageNetworks, Inc. * .......................... 676,875
237,000 TESSCO Technologies Incorporated * + ............. 6,636,000
------------
38,942,775
------------
Technology - Software -- 7.57%
68,000 Concord Communications, Inc. * ................... 2,711,500
83,500 MatrixOne, Inc. * ................................ 3,392,187
90,000 OTG Software, Inc. * ............................. 2,570,625
55,000 OpenTV Corp. * ................................... 2,468,125
165,000 SunGard Data Systems Inc. * ...................... 5,115,000
80,000 WebTrends Corporation * .......................... 3,095,000
------------
19,352,437
------------
Transportation -- 2.61%
65,000 C. H. Robinson Worldwide, Inc. ................... 3,217,500
237,250 Knight Transportation, Inc. * .................... 3,454,953
------------
6,672,453
------------
TOTAL COMMON STOCKS
(cost $185,480,077) ...................... 231,219,237
------------
SHORT-TERM INVESTMENTS - 8.99%
Commercial Paper - 6.46%
$2,250,000 WICOR Industries, Inc.
6.75%, due July 5, 2000 ......................... 2,249,156
3,000,000 Fiserv, Inc.
6.95%, due July 7, 2000 ......................... 2,997,684
1,500,000 WICOR Industries, Inc.
6.95%, due July 11, 2000 ........................ 1,497,683
4,000,000 Fiserv, Inc.
6.80%, due July 17, 2000 ........................ 3,989,422
3,000,000 Banta Corporation
6.80%, due July 20, 2000 ........................ 2,990,367
2,800,000 Banta Corporation
6.80%, due July 26, 2000 ........................ 2,787,836
------------
16,512,148
------------
Variable Rate Demand Notes -- 2.53%
6,451,926 Firstar Bank U.S.A., N.A.
6.34%, due July 3, 2000 ......................... 6,451,926
------------
TOTAL SHORT-TERM INVESTMENTS
(cost $22,925,678) ...................... 22,964,074
------------
TOTAL INVESTMENTS
(cost $208,405,755) -- 99.46% ........... 254,183,311
------------
OTHER ASSETS,
NET OF LIABILITIES -- 0.54% ............. 1,387,984
------------
TOTAL NET ASSETS
(Basis of percentages
disclosed above) -- 100% ............... $255,571,295
------------
------------
</TABLE>
* 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, 2000 (unaudited)
--------------------------------------------------------------
<TABLE>
<CAPTION>
<C> <C>
ASSETS:
Investments in securities at market value (Note 1 (a)) --
Nonaffiliated issuers (cost $203,682,005) - see
accompanying schedule of investments............... $247,547,311
Affiliated issuers (cost $4,723,750) - see
accompanying schedule of investments (Note 5)...... 6,636,000
------------
Total investments............................ 254,183,311
------------
Receivables --
Investment securities sold......................... 2,026,962
Dividends and interest............................. 90,838
------------
Total receivables............................ 2,117,800
------------
Total assets................................. 256,301,111
------------
LIABILITIES:
Payables --
Investment securities purchased.................... 442,250
Management fee (Note 2)............................ 165,714
Other payables and accrued expenses................ 121,852
------------
Total liabilities............................ 729,816
------------
Total net assets............................. $255,571,295
------------
------------
NET ASSETS CONSIST OF:
Fund shares issued and outstanding....................... $156,226,291
Net unrealized appreciation on investments (Note 3)...... 45,739,160
Accumulated undistributed net realized gains on investments 53,776,976
Accumulated undistributed net investment loss............ (171,132)
------------
$255,571,295
------------
------------
NET ASSET VALUE PER SHARE ($.01 par value, 20,000,000 shares authorized),
offering price and redemption price ($255,571,295./.10,546,835) shares
outstanding).................................................. $24.23
------
------
</TABLE>
The accompanying notes to financial statements
are an integral part of this statement.
Statement of Operations
For the six months ended June 30, 2000 (unaudited)
-------------------------------------------------------------
INCOME:
Dividends.................................................. $ 545,561
Interest................................................... 407,272
-----------
952,833
-----------
EXPENSES:
Management fee (Note 2).................................... 957,726
Transfer agent fees........................................ 83,609
Registration fees.......................................... 24,854
Legal fees................................................. 21,509
Postage and mailing........................................ 12,298
Printing................................................... 11,917
Audit and tax consulting fees.............................. 6,750
Custodian fees............................................. 6,269
Telephone.................................................. 1,890
Directors' fees............................................ 500
Other operating expenses................................... 3,115
-----------
1,130,437
-----------
Net investment loss.................................. (177,604)
-----------
NET REALIZED GAINS ON INVESTMENTS
Nonaffiliatted issuers ..................................... 48,147,691
Affiliated issuers (Note 5) ................................ (85,016)
-----------
48,062,675
-----------
NET DECREASE IN UNREALIZED APPRECIATION ON INVESTMENTS ........... (30,109,270)
-----------
Net realized and unrealized gain on investments...... 17,953,405
-----------
Net increase in net assets resulting from operations. $17,775,801
-----------
-----------
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, 2000 (unaudited) and the year
ended December 31, 1999
---------------------------------------------------------------------
[CAPTION]
<TABLE>
2000 1999
----------- ------------
<C> <C> <C>
OPERATIONS:
Net investment income (loss)............................................... $ (177,604) $ 655,698
Net realized gains on investments.......................................... 48,062,675 13,362,496
Net increase (decrease) in unrealized appreciation on investments.......... (30,109,270) (31,899,463)
------------ ------------
Net increase (decrease) in net assets resulting from operations....... 17,775,801 (17,881,269)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment income ($0.0538 per share in 1999)....... -- (649,226)
Distributions from net realized gains on investment transactions
($0.5439 per share in 1999).............................................. -- (6,563,457)
------------ ------------
Total distributions................................................... -- (7,212,683)
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued (2,321,523 and 3,704,511 shares, respectively). 53,313,335 83,315,928
Reinvestment of distributions (290,709 shares in 1999)..................... -- 6,543,850
Cost of shares redeemed (4,106,868 and 6,834,229 shares, respectively)..... (94,314,201) (153,160,855)
------------ ------------
Increase (decrease) in net assets derived
from capital share transactions..................................... (41,000,866) (63,301,077)
------------ ------------
Total increase (decrease) in net assets............................... (23,225,065) (88,395,029)
------------ ------------
NET ASSETS:
Beginning of the period ................................................. 278,796,360 367,191,389
------------ ------------
End of the period (including undistributed net investment
net investment income (loss) of $(171,132) and $6,472, respectively)...... $255,571,295 $278,796,360
------------ ------------
------------ ------------
</TABLE>
The accompanying notes to financial statements
are an integral part of these statements.
Historical Record (unaudited)
--------------------------------------------------------------------
[CAPTION]
<TABLE>
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***
----------- ------------- ------------- -------------- -------------
<C> <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
December 31, 1999.......................... 22.61 .0538 .5439 23.4 49,333
June 30, 2000.............................. 24.23 -- -- 24.6 52,867
</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, 2000 (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. 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 generally 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 identification.
(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) The amount of dividends and distributions from net investment
income and net realized capital gains are determined in accordance
with federal income tax regulations, which may differ from
generally accepted accounting principles. To the extent these
book and tax differences are permanent in nature, such amounts are
reclassified among fund shares issued and outstanding, accumulated
undistributed net realized gains on investments and accumulated
undistributed net investment income.
(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,
2000, based on investment cost for federal tax purposes is as follows:
Aggregate gross
unrealized appreciation on investments ............ $ 64,754,466
Aggregate gross unrealized depreciation
on investments .................................... (19,015,306)
-----------
Net unrealized appreciation .................. $ 45,739,160
-----------
-----------
(4) Investment Transactions --
For the six months ended June 30, 2000, the cost of purchases and the
proceeds from sales of investments, other than short-term obligations,
aggregated $94,691,331 and $156,680,981, respectively.
(5) Transactions with Affiliates --
Following is an analysis of fiscal 2000 transactions with "affiliated
companies" as defined by the Investment Company Act of 1940:
[CAPTION]
<TABLE>
Amount of
Capital
Gain/(Loss)
Realized
Share Activity on Sale
-------------------------------------------------- of Shares
Balance Balance in Fiscal
Security Name 12/31/99 Purchases Sales 06/30/00 2000
------------- -------- --------- ----- ------- -----------
<C> <C> <C> <C> <C> <C>
TESSCO Technologies Incorporated .......... 237,000 -- -- 237,000 $ --
Thermo Vision Corporation (a) (b).......... 408,580 -- 408,580 --- (85,016)
--------
$(85,016)
--------
--------
</TABLE>
(a) As of June 30, 2000, the Fund is no longer affiliated with this company.
(b) Thermo Vision Corporation was acquired by Thermo Electron Corporation for
cash on January 7, 2000.
There were no dividends from affiliated companies for the period
ended June 30, 2000.
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
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 INSTITUTIONAL CUSTODY SERVICES
Cincinnati, Ohio
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, 2000
