| NICHOLAS II, INC. | ||||
| SCHEDULE OF INVESTMENTS (UNAUDITED) | ||||
| AS OF DECEMBER 31, 2019 | ||||
| SHARES OR | ||||
| PRINCIPAL | ||||
| AMOUNT | VALUE | |||
| ------------- | ------------ | |||
| COMMON STOCKS - 94.72% | ||||
| Consumer Discretionary - Retailing - 9.70% | ||||
| 63,865 | Burlington Stores, Inc. | $ 14,563,136 | ||
| 155,000 | CarMax, Inc. | 13,588,850 | ||
| 77,500 | Expedia, Inc. | 8,380,850 | ||
| 555,000 | LKQ Corporation | 19,813,500 | ||
| 171,860 | Ollie's Bargain Outlet Holdings, Inc. | 11,224,177 | ||
| 38,000 | O'Reilly Automotive, Inc. | 16,653,880 | ||
| 42,000 | Ulta Beauty, Inc. | 10,631,880 | ||
| ------------ | ||||
| 94,856,273 | ||||
| ------------ | ||||
| Consumer Discretionary - Services - 5.09% | ||||
| 45,735 | Domino's Pizza, Inc. | 13,436,028 | ||
| 280,000 | Service Corporation International | 12,888,400 | ||
| 439,000 | Wendy's Company (The) | 9,750,190 | ||
| 217,500 | Wyndham Hotels & Resorts, Inc. | 13,661,175 | ||
| ------------ | ||||
| 49,735,793 | ||||
| ------------ | ||||
| Consumer Staples - Food & Staples | ||||
| Retailing - 3.20% | ||||
| 565,000 | BJ's Wholesale Club, Inc. | 12,848,100 | ||
| 440,000 | US Foods Holding Corp. | 18,431,600 | ||
| ------------ | ||||
| 31,279,700 | ||||
| ------------ | ||||
| Consumer Staples - Food, Beverage & | ||||
| Tobacco - 4.28% | ||||
| 423,904 | Conagra Brands, Inc. | 14,514,473 | ||
| 63,500 | Constellation Brands, Inc. - Class A | 12,049,125 | ||
| 177,500 | Lamb Weston Holdings, Inc. | 15,270,325 | ||
| ------------ | ||||
| 41,833,923 | ||||
| ------------ | ||||
| Financials - Banks - 1.75% | ||||
| 605,000 | Huntington Bancshares Incorporated | 9,123,400 | ||
| 150,000 | Webster Financial Corporation | 8,004,000 | ||
| ------------ | ||||
| 17,127,400 | ||||
| ------------ | ||||
| Financials - Diversified - 3.70% | ||||
| 110,000 | Northern Trust Corporation | 11,686,400 | ||
| 160,000 | Raymond James Financial, Inc. | 14,313,600 | ||
| 155,000 | SEI Investments Company | 10,149,400 | ||
| ------------ | ||||
| 36,149,400 | ||||
| ------------ | ||||
| Financials - Insurance - 3.17% | ||||
| 67,500 | Aon plc | 14,059,575 | ||
| 83,917 | Willis Towers Watson Public Limited Company | 16,946,199 | ||
| ------------ | ||||
| 31,005,774 | ||||
| ------------ | ||||
| Health Care - Equipment & Services - 9.50% | ||||
| 40,000 | Cooper Companies, Inc. (The) | 12,851,600 | ||
| 117,500 | LivaNova PLC | 8,863,025 | ||
| 170,000 | NuVasive, Inc. | 13,147,800 | ||
| 142,500 | Quest Diagnostics Incorporated | 15,217,575 | ||
| 110,000 | ResMed Inc. | 17,046,700 | ||
| 280,000 | Smith & Nephew PLC sponsored ADR | 13,459,600 | ||
| 20,000 | Teleflex Incorporated | 7,528,800 | ||
| 34,000 | Veeva Systems Inc. - Class A | 4,782,440 | ||
| ------------ | ||||
| 92,897,540 | ||||
| ------------ | |||
| Health Care - Pharmaceuticals, | |||
| Biotechnology & Life Sciences - 5.50% | |||
| 100,920 | IQVIA Holdings Inc. | 15,593,149 | |
| 15,235 | Mettler-Toledo International Inc. | 12,085,621 | |
| 135,000 | PerkinElmer, Inc. | 13,108,500 | |
| 14,500 | Regeneron Pharmaceuticals, Inc. | 5,444,460 | |
| 34,500 | Vertex Pharmaceuticals Incorporated | 7,553,775 | |
| ------------ | |||
| 53,785,505 | |||
| ------------ | |||
| Industrials - Capital Goods - 13.45% | |||
| 225,000 | A.O. Smith Corporation | 10,719,000 | |
| 127,500 | AMETEK, Inc. | 12,716,850 | |
| 322,000 | Fastenal Company | 11,897,900 | |
| 172,500 | Fortive Corporation | 13,177,275 | |
| 205,000 | Fortune Brands Home & Security, Inc. | 13,394,700 | |
| 70,000 | IDEX Corporation | 12,040,000 | |
| 68,500 | L3Harris Technologies, Inc. | 13,554,095 | |
| 100,000 | Middleby Corporation (The) | 10,952,000 | |
| 77,500 | Nordson Corporation | 12,620,100 | |
| 60,000 | Snap-on Incorporated | 10,164,000 | |
| 132,500 | Westinghouse Air Brake Technologies | ||
| Corporation | 10,308,500 | ||
| ------------ | |||
| 131,544,420 | |||
| ------------ | |||
| Industrials - Commercial & Professional | |||
| Services - 8.03% | |||
| 300,000 | IAA, Inc. | 14,118,000 | |
| 293,443 | IHS Markit Ltd. | 22,110,930 | |
| 255,000 | KAR Auction Services, Inc. | 5,556,450 | |
| 240,500 | TransUnion | 20,589,205 | |
| 108,500 | Verisk Analytics, Inc. | 16,203,390 | |
| ------------ | |||
| 78,577,975 | |||
| ------------ | |||
| Industrials - Transportation - 2.17% | |||
| 380,000 | Knight-Swift Transportation Holdings Inc. | 13,619,200 | |
| 40,000 | Old Dominion Freight Line, Inc. | 7,591,200 | |
| ------------ | |||
| 21,210,400 | |||
| ------------ | |||
| Information Technology - Hardware & | |||
| Equipment - 1.53% | |||
| 105,000 | CDW Corporation | 14,998,200 | |
| ------------ | |||
| Information Technology - Semiconductors & | |||
| Semiconductor Equipment - 3.85% | |||
| 113,750 | Microchip Technology Incorporated | 11,911,900 | |
| 124,000 | Skyworks Solutions, Inc. | 14,989,120 | |
| 110,000 | Xilinx, Inc. | 10,754,700 | |
| ------------ | |||
| 37,655,720 | |||
| ------------ | |||
| Information Technology - Software & | |||
| Services - 14.34% | |||
| 117,500 | Broadridge Financial Solutions, Inc. | 14,515,950 | |
| 69,500 | Euronet Worldwide, Inc. | 10,950,420 | |
| 377,419 | EVO Payments, Inc. - Class A | 9,967,636 | |
| 73,500 | FleetCor Technologies, Inc. | 21,147,420 | |
| 60,000 | Gartner, Inc. | 9,246,000 | |
| 143,762 | Global Payments Inc. | 26,245,191 | |
| 63,500 | Guidewire Software, Inc. | 6,970,395 | |
| 57,000 | Palo Alto Networks, Inc. | 13,181,250 | |
| 57,000 | Paylocity Holding Corporation | 6,886,740 | |
| 121,000 | Qualys, Inc. | 10,087,770 | |
| 59,000 | Twilio Inc. - Class A | 5,798,520 | |
| 68,000 | Zendesk, Inc. | 5,210,840 | |
| ------------ | |||
| 140,208,132 | |||
| ------------ | |||
| Materials - 2.54% | ||||
| 90,000 | AptarGroup, Inc. | 10,405,800 | ||
| 100,000 | Vulcan Materials Company | 14,399,000 | ||
| ------------ | ||||
| 24,804,800 | ||||
| ------------ | ||||
| Real Estate - 2.92% | ||||
| 280,000 | CBRE Group, Inc. | 17,161,200 | ||
| 173,729 | CyrusOne Inc. | 11,367,088 | ||
| ------------ | ||||
| 28,528,288 | ||||
| ------------ | ||||
| TOTAL COMMON STOCKS | ||||
| (cost $551,489,897) | 926,199,243 | |||
| ------------ | ||||
| SHORT-TERM INVESTMENTS - 5.27% | ||||
| U.S. Government Securities - 3.78% | ||||
| $13,000,000 | U.S. Treasury Bill 01/02/2020, 1,491% | 13,000,000 | ||
| 13,000,000 | U.S. Treasury Bill 01/14/2020, 1.514% | 12,993,549 | ||
| 11,000,000 | U.S. Treasury Bill 01/21/2020, 1.489% | 10,991,505 | ||
| ------------ | ||||
| 36,985,054 | ||||
| ------------ | ||||
| Money Market Fund - 1.49% | ||||
| 14,541,753 | Morgan Stanley Liquidity Funds Government | |||
| Portfolio (Institutional Class), 7-day | ||||
| net yield 1.51% | 14,541,753 | |||
| ------------ | ||||
| TOTAL SHORT-TERM INVESTMENTS | ||||
| (cost $51,526,807) | 51,526,807 | |||
| ------------ | ||||
| TOTAL INVESTMENTS | 977,726,050 | |||
| (cost $603,016,704) - 99.99% | ------------ | |||
| OTHER ASSETS, NET OF LIABILITIES - 0.01% | 53,735 | |||
| ------------ | ||||
| TOTAL NET ASSETS | ||||
| (basis of percentages disclosed | ||||
| above) - 100% | $977,779,785 | |||
| ------------ | ||||
| ------------ | ||||
| % of net assets. | ||||
As of December 31, 2019, investment cost for federal tax purposes was $603,158,712 and the tax basis components of unrealized appreciation/depreciation were as follows:
| Unrealized appreciation | $381,547,161 | ||
| Unrealized depreciation | (6,979,823 | ) | |
| ------------ | |||
| Net unrealized appreciation | $374,567,338 | ||
| ------------ | |||
| ------------ |
For information on the Fund's policies regarding the valuation of investments and other significant accounting policies, please refer to the Fund's most recent Semiannual or Annual Report to Shareholders.
Various inputs are used in determining the value of the Fund's investments relating to Finanacial Accounting Standard No. 157.
The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
�� Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund’s own
assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used as of December 31, 2019 in valuing the Fund’s investments carried at value:
| Investments | ||
| Valuation Inputs | in Securities | |
| ---------------- | ------------- | |
| Level 1 - | ||
| Common Stocks(1) | $926,199,243 | |
| Money Market Fund | 14,541,753 | |
| Level 2 - | ||
| U.S. Government Securities | 36,985,054 | |
| Level 3 - | ||
| None | -- | |
| ------------ | ||
| Total | $977,726,050 | |
| ------------ | ||
| ------------ |
(1) See Schedule above for further detail by industry.
