MADISON OPPORTUNITY FUND, INC.
Semi-Annual Report
June 30, 1997
(unaudited)
608-274-0300
6411 Mineral Point Road
Madison, WI 53705
STATEMENT OF NET ASSETS
Schedule of Investments
June 30, 1997
Market
Common Stocks - 85.1% Shares Value
Basic Industry -3.5%
Morton International, Inc. 800 $ 24,150
Consumer Cyclical - 8.2%
Callaway Golf Co. 600 21,300
Clayton Homes, Inc. 937 13,352
Tommy Hilfiger Corp. 550 22,103
Consumer Services - 7.1%
LaQuinta Inns 1,250 27,344
Unitog Co. 800 21,600
Consumer Staples - 2.4%
Richfood Holdings, Inc. 650 16,900
Consumer Retail - 10.0%
Intimate Brands, Inc. 1,200 25,200
Officemax, Inc. 1,300 18,769
Pep Boys - Manny Moe & Jack 750 25,547
Financial -Insurance - 5.9%
ALLIED Group 450 17,100
MGIC Investment 500 23,969
Financial Services - 13.9%
Equifax, Inc. 650 24,172
Franklin Resources, Inc. 350 25,397
Green Tree Financial Corp. 750 26,719
United Asset Management 700 19,819
Food & Beverage - 4.0%
Dole Food Co. 650 27,787
Medical & Health Care - 16.0%
Dentsply International, Inc. 400 19,600
Express Scripts, Inc. 500 20,875
Health Care Compare 450 23,569
Sybron International Corp. 600 23,925
Watson Pharmaceutical 550 23,237
Technology - Hardware - 6.8%
Cabletron Systems, Inc. 400 11,325
EMC Corp/Mass 425 16,575
IKOS Systems, Inc. 900 19,237
Technology - Semiconductors/Electronics - 2.5%
Arrow Electronics, Inc. 325 17,266
Technology - Software - 4.8%
CFI Proservices, Inc. 750 13,500
Fiserv, Inc. 450 20,081
Total Common Stocks (cost $500,940) $590,418
See Accompanying Notes to Financial Statements
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MADISON OPPORTUNITY FUND, INC.
STATEMENT OF NET ASSETS (continued)
Principal Market
Amount Value
Short Term Investments - 17.9%
Repurchase Agreement: % of Net Assets
With DLJ Securities issued 6/30/97 at 5.75%
due 7/1/97 $124,000
Cash & Receivables Less Liabilities - (-.3.0%)$(20,619)
TOTAL NET ASSETS - Equivalent to $23.77 per share on 29,175.874 shares
of $.01 par value capital stock outstanding (authorized capital stock -
500,000 shares), and paid in capital aggregated $591,858. $693,799
See Accompanying Notes to Financial Statements
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MADISON OPPORTUNITY FUND, INC.
STATEMENT OF OPERATIONS
Six Month Period Ended
June 30, 1997
Income:
Interest $ 3,051
Dividends 1,844
$ 4,895
Expenses:
Investment Advisor Fee $215
Auditing Fee 1,123
Custodial Fee 519
Legal Fee 215
Transfer Agent Fee 410
Licensing Fee 100
Other Fees 171
$2,753
Net Investment Income $2,142
Ratio of Expenses to Income 56.2%
Realized Gains on Investments:
Proceeds from Sale $224,193
Cost 214,858
Net Realized Gains $ 9,335
Unrealized Appreciation on Investments:
Balance, Beginning of Year $42,374
Balance, End of Year 89,478
Increase in Unrealized Appreciation $47,104
Net Realized Gains and Increase
in Unrealized Appreciation $56,439
See Accompanying Notes to Financial Statements.
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MADISON OPPORTUNITY FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
Six Month Period Ended Year Ended
June 30, 1997 December 31, 1996
Investment Activities
Net Investment Income $2,142 $6,562
Income Distributions to Shareholders 0 5,866
Increase in Undistributed Net
Investment Income $2,142 696
Net Realized Gains from Security
Transactions $9,335 28,361
Net Realized Gain Distributions to
Shareholders 0 (28,362)
Increase (Decrease) in Undistributed
Realized Gains $9,335 (1)
Increase in Unrealized Appreciation $47,104 42,374
Increase in Undistributed Net Assets
Derived From Investment Activities $58,581 43,069
Shares Sold and Redeemed
Net Proceeds from Shares Issued $0 157,921
Net Asset Value of Shares Issued in
Distributions 0 34,228
Cost of Shares Redeemed $ 0 0
Increase in Net Assets from Sale of
Fund Shares $0 192,149
Net Assets
Balance at Beginning of Year $635,218 400,000
Net Increase from Investment
Activities 58,581 43,069
Net Increase from Shares Sold and Redeemed 0 192,149
Balance at End of Year (Including
undistributed net investment
income of $3,234) $693,799 635,218
See Accompanying Notes to Financial Statements.
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MADISON OPPORTUNITY FUND, INC.
FINANCIAL HIGHLIGHTS - Selected Per Share Data and Ratios
Period Ended Year Ended
June 30, 1996 December 31, 1996
NET ASSET VALUE:
Beginning of year........................ $ 21.77 20.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income................... $ 0.07 0.24
Net realized and unrealized gains
or (losses) on securities............... $ 1.93 2.77
Total from investment operations........ $ 23.77 23.01
LESS DISTRIBUTIONS:
Dividends from net income............... $ -- (0.21)
Capital gains distributions............. $ -- (1.03)
NET ASSET VALUE:
End of year............................ $ 23.77 21.77
TOTAL RETURN: 9.19% 15.05%
RATIOS:
Operating expenses to average net assets. 0.85%* 0.81%
Net income to average net assets......... 0.67% 1.20%
Portfolio turnover rate.................... 34.59% 56.52%
Average commission rate paid............... 0.08 --
*Annualized
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MADISON OPPORTUNITY FUND, INC.
NOTES TO FINANCIAL STATEMENTS June 30, 1997 (unaudited)
(1) Significant Accounting Principles
Madison Opportunity Fund, Inc. began operations on December 27, 1995.
There were no operations in 1995 and net assets consisted soley of
$400,000 for the purchase of 20,000 shares by investors. The Fund is
registered under the Investment Company Act of 1940, as amended, as an
open-end management company. The Fund is not publicly offered and is
not registered under the Securities Act of 1933. The following is a
summary of significant accounting principles followed by the Fund in the
preparation of its financial statements. The policies are in conformity
with generally accepted accounting principles.
(a) The market quotation for each security is the last reported sale
price on a national securities exchange, or, in the case of Over-The-
Counter securities, the latest available bid price. Other securities for
which quotations are not readily available are valued at fair value as
determined by the Board of Directors. Short-term securities (maturing
within 60 days) are valued on the basis of amortized cost. Securities
with maturities in excess of 60 days are valued at market value.
(b) No provision is made for Federal income taxes since it is the
intention of the Fund to comply with the provisions of the Internal
Revenue Code available to investment companies, and to make the
requisite distribution to shareholders of taxable income which will be
sufficient to relieve it from all or substantially all Federal income
taxes.
(c) All percentages for the various classifications relate to total
net assets.
(d) The Fund follows industry practice and records security
transactions on the trade date. Dividend income is recognized on the
ex-dividend date and interest income is accrued on a daily basis.
(2) Investment Advisory Agreement
The investment advisory agreement with Madison Investment Advisors,
Inc., provides for an annual management fee of .75 of 1% on the average
net assets of the Fund. Such fees were being waived until June 16,
1997. Although the investment advisor may be reimbursed for clerical or
administrative expenses incurred by it, none have been charged to the
Fund during 1996 and 1997. Certain officers and directors of the Fund
are also officers and directors of Madison Investment Advisors, Inc.
(3) Cost of Investments Purchased and Proceeds of Investments Sold
For the six month period ended June 30, 1997, the purchases and sales of
investment securities (excluding short-term securities) were $237,046
and $224,193, respectively, (purchases and sales of U.S. government
obligations only were $0 and $0, respectively).
(4) Aggregate Cost of Securities and Undistributed Income or Capital
Gains
The aggregate cost of securities for Federal income tax purposes is
$603,965. The aggregate gross unrealized appreciation for all securities
in which there is an excess of value over tax cost is $95,067. The
aggregate gross unrealized depreciation for all securities in which
there is an excess of tax cost over value amounts to $5,589.
The net unrealized appreciation at June 30, 1997, for all securities is
$89,478. Through the year ended June 30, 1997, the accumulated
undistributed net investment income is $3,234, and the accumulated
undistributed realized capital gain is 9,334.
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