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Seligman
Capital
Fund, Inc.
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A Capital
Appreciation Fund
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102nd Quarterly Report
March 31, 1995
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To the Shareholders
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Seligman Capital Fund ended the first quarter of 1995 on March 31 with the net
asset value of Class A shares at $13.91 per share, up from $13.17 on December
31, 1994, and Class D shares at $13.50 per share, up from $12.82. Total returns
for the first quarter were 5.62% for Class A shares and 5.30% for Class D
shares, which compares to the 9.74% total return of the Standard & Poor's 500
Composite Stock Price Index. (Total return reflects change in net asset value
and assumes distributions paid within the period, if any, are reinvested in
additional shares. Class A returns do not, however, reflect the effect of the
maximum initial sales charge of 4.75%, and Class D returns do not reflect the
effect of the 1% contingent deferred sales load.)
For both Class A and D shares, net realized gain per share from investment
transactions for the first quarter totaled $0.60. At March 31, net unrealized
gain per share totaled $3.21. Long-term performance results appear on the back
panel of this report.
After seven short-term interest rate increases by the Federal Reserve Board
in 1994, the economy began to show signs of slowing in the first quarter of
1995. For instance, sales of previously owned homes fell to their lowest level
in two years, reflecting the delayed impact of higher interest rates on the
housing market. Retail sales were also sluggish, as consumers have backed off in
the past several months. Nevertheless, consumer confidence still remains
relatively high.
Investors, encouraged by signs of slower economic growth and by hopes of a
less stringent monetary policy, boosted financial markets in the first quarter.
The bond market bounced back from the lows experienced in late 1994, and the
stock market reached new highs, notwithstanding several negative factors
including Mexico's currency crisis, the collapse of Barings (the U.K.'s oldest
and one of its most prestigious banks), and the continual weakening of the U.S.
dollar. However, by quarter end, the plunging dollar had caused both bonds and
stocks to lose some ground.
We are optimistic that the economy will continue to expand at a moderate pace
in 1995, with inflation remaining in check. This, combined with the gradual
strengthening of the economies of U.S. trading partners, is expected to provide
a good foundation for a positive investment environment.
In your Fund, financial-related issues benefited from the stabilization in
interest rates and provided some of the best relative gains in the first
quarter. Travelers, a financial services company, and MGIC Investment, a private
mortgage insurer that was sold during the quarter, performed particularly well.
Health care related issues also performed well for the quarter, led by some of
the smaller capitalization companies, including Emcare Holdings and Sunrise
Medical. With the likelihood of new national health care legislation diminished,
and a more responsive FDA, the health care sector is expected to continue to
provide good performance. In the technology sector, Intel was the leading issue,
and although this sector of your Fund lagged the broader market, the valuations
are attractive and the prospect for capital appreciation in these issues is
bright.
Looking ahead, your portfolio is well structured for the moderating economic
growth expected in the second half of the year, and your Manager is optimistic
that your Fund is positioned to perform favorably.
By order of the Board of Directors,
/s/William C. Morris
William C. Morris
Chairman
/s/Ronald T. Schroeder
Ronald T. Schroeder
President
April 28, 1995
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Important Telephone Numbers
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(800) 221-2450 Shareholder Services (800) 445-1777 Retirement Plan (800) 622-4597 24-Hour Automated
Services Telephone Access Service
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Portfolio of Investments (unaudited) March 31, 1995
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Shares Value
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Common Stocks--100.1%
Automotive and Related--5.7%
Cooper Tire & Rubber ......................... 100,000 $ 2,837,500
Eaton ........................................ 85,000 4,611,250
Harley-Davidson .............................. 100,000 2,400,000
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9,848,750
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Basic Materials--8.4%
Great Lakes Chemical ......................... 50,000 3,118,750
Louisiana Pacific ............................ 100,000 2,762,500
Minerals Technologies ........................ 75,000 2,418,750
Nucor ........................................ 60,000 3,375,000
Schulman, A .................................. 93,750 2,882,812
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14,557,812
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Business Services and Supplies--5.7%
Interpublic Group of Companies ............... 120,000 4,485,000
Leggett & Platt .............................. 45,000 1,890,000
Sensormatic Electronics ...................... 125,000 3,500,000
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9,875,000
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Computer Goods and Services--9.5%
Ceridian* .................................... 100,000 3,337,500
EMC* ......................................... 200,000 3,350,000
FIserv* ...................................... 175,000 4,681,250
Intel ........................................ 60,000 5,088,750
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16,457,500
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Consumer Goods and Services--9.9%
Block (H. & R.) .............................. 50,000 2,168,750
CUC International* ........................... 40,000 1,555,000
Department 56* ............................... 20,000 797,500
Newell ....................................... 150,000 3,825,000
Reebok International ......................... 50,000 1,781,250
Tambrands .................................... 60,000 2,677,500
UST Inc. ..................................... 140,000 4,445,000
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17,250,000
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Drugs and Health Care--16.8%
Amgen* ....................................... 50,000 3,362,500
Beverly Enterprises .......................... 150,000 2,175,000
Bristol-Myers Squibb ......................... 50,000 3,150,000
Columbia/HCA Healthcare ...................... 100,000 4,300,000
Dentsply International* ...................... 70,000 2,441,250
Emcare Holdings .............................. 65,000 1,312,188
Protein Design Labs* ......................... 125,000 2,523,437
Sunrise Medical* ............................. 100,000 3,575,000
United Healthcare ............................ 75,000 3,506,250
Value Health* ................................ 75,000 2,868,750
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29,214,375
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Financial Services--2.8%
Travelers .................................... 125,000 4,828,125
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Food and Food Services--2.5%
PepsiCo ...................................... 110,000 4,290,000
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Industrial Goods and Services--4.2%
ASM Lithography Holding ...................... 40,000 1,122,500
Lam Research* ................................ 75,000 3,365,625
Nordson ...................................... 50,000 2,781,250
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7,269,375
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Leisure and Related--9.0%
British Sky Broadcasting (ADRs)* ............. 100,000 2,462,500
Carnival (Class A) ........................... 100,000 2,337,500
CBS .......................................... 50,000 3,200,000
Circus Circus Enterprises* ................... 50,000 1,612,500
Hospitality Franchise Systems* ............... 100,000 3,200,000
Mirage Resorts* .............................. 100,000 2,800,000
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15,612,500
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Packaging--3.0%
Ball ......................................... 75,000 2,578,125
Crown Cork & Seal* ........................... 60,000 2,632,500
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5,210,625
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Retail Trade--6.6%
Home Depot ................................... 100,000 4,425,000
Nordstrom .................................... 100,000 4,050,000
Office Depot* ................................ 125,000 3,046,875
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11,521,875
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Software--9.6%
Informix* .................................... 75,000 2,568,750
Microsoft* ................................... 75,000 5,329,688
Parametric Technology* ....................... 75,000 2,990,625
Sybase* ...................................... 60,000 2,407,500
Synopsys* .................................... 70,000 3,342,500
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16,639,063
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Telecommunications--6.4%
Century Telephone Enterprises ................ 100,000 3,037,500
DSC Communications* .......................... 100,000 3,256,250
Motorola ..................................... 90,000 4,916,250
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11,210,000
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Other ........................................ 30,165
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Value
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Total Investments--100.1%
(Cost $133,763,486) ....................... $173,815,165
Other Assets Less
Liabilities--(0.1%) ....................... (137,722)
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Net Assets--100.0% ........................... $173,677,443
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*Non-income producing security.
Note: Investments in stocks are valued at current market value or, in their
absence, at fair value determined in accordance with procedures approved by the
Board of Directors. Securities traded on national exchanges are valued at last
sales prices or, in their absence and in the case of over-the-counter
securities, a mean of bid and asked prices.
Short-term holdings maturing in 60 days or less are valued at amortized cost.
Largest Portfolio Changes+
During Past Three Months
Shares
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Holdings
Additions Increase 3/31/95
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Amgen ........................................ 50,000 50,000
Bristol-Myers Squibb ......................... 50,000 50,000
CBS .......................................... 50,000 50,000
Cooper Tire & Rubber ......................... 100,000 100,000
Great Lakes Chemical ......................... 50,000 50,000
Hospitality Franchise Systems ................ 100,000 100,000
Nucor ........................................ 60,000 60,000
Sybase ....................................... 60,000 60,000
Tambrands .................................... 60,000 60,000
Value Health ................................. 75,000 75,000
Holdings
Reductions Decrease 3/31/95
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Bay Networks ................................. 100,000 --
Cisco Systems ................................ 80,000 --
Fingerhut .................................... 100,000 --
Liz Claiborne ................................ 150,000 --
MGIC Investment .............................. 60,000 --
Parametric Technology ........................ 50,000 75,000
PETsMART ..................................... 70,000 --
Powersoft .................................... 25,000 --
TeleWest Communications (ADRs) ............... 100,000 --
Xilinx ....................................... 75,000 --
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+ Largest portfolio changes from the previous quarter to the current quarter are
based on cost of purchases and proceeds from sales of securities.
Major Portfolio Holdings
at March 31, 1995
Security Value
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Microsoft ................................................ $5,329,688
Intel .................................................... 5,088,750
Motorola ................................................. 4,916,250
Travelers ................................................ 4,828,125
FIserv ................................................... 4,681,250
Eaton .................................................... 4,611,250
Interpublic Group of Companies ........................... 4,485,000
UST Inc. ................................................. 4,445,000
Home Depot ............................................... 4,425,000
Columbia/HCA Healthcare .................................. 4,300,000
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Long-Term Investment Results
Average Annual Total Returns
March 31, 1995
Class A*
One Five Ten
Year Years Years
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With Sales Charge (3.53)% 12.11% 12.00%
Without Sales Charge 1.27 13.21 12.55
Class D**
Since
One Inception
Year 5/3/93
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With CDSL (1.34)% n/a
Without CDSL (0.45) 2.02%
* The maximum initial sales charge for Class A shares is 4.75%. No adjustment
was made to performance for periods prior to January 1, 1993, the
commencement date for the annual Administration, Shareholder Services and
Distribution Plan fee of up to 0.25% of average daily net assets of Class A
shares.
** The returns for the one-year period for Class D shares are shown with and
without the effect of the 1% contingent deferred sales load ("CDSL")imposed
on certain shares redeemed within one year of purchase.
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These rates of return reflect changes in prices and assume that all
distributions within the period are reinvested in additional shares. The rates
of return will vary and the principal value of an investment will fluctuate.
Shares, if redeemed, may be worth more or less than their original cost. Past
performance is not indicative of future investment results.
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SELIGMAN FINANCIAL SERVICES, INC.
an affiliate of
[LOGO OMITTED]
J. & W. SELIGMAN & CO.
INCORPORATED
ESTABLISHED 1864
100 Park Avenue, New York, NY 10017
This report is intended only for the information of shareholders or those who
have received the offering prospectus covering shares of Capital Stock of
Seligman Capital Fund, Inc., which contains information about the sales charges,
management fee, and other costs. Please read the prospectus carefully before
investing or sending money.
EQCA3a 3/95
