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[LOGO] THERMO
OPPORTUNITY
FUND
The Thermo Opportunity Fund, inc.
Semi-Annual Report
May 31, 1999
(Unaudited)
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<PAGE>
THE THERMO OPPORTUNITY FUND, INC.
The Thermo Opportunity Fund is a non-diversified, closed-end management
investment company that invests primarily in securities issued by subsidiaries
of Thermo Electron Corporation (Thermo Electron or TMO). The Fund's investment
objective is to seek long-term capital appreciation.
STOCK
Ticker Symbol TMF
(American Stock Exchange)
Market Price
as of 5/31/99 $8.3125
Net Asset Value
as of 5/31/99 $10.33
Shares Outstanding 1,760,417
PORTFOLIO SECTORS
May 31, 1999
[GRAPHIC OMITTED]
Common Stocks:
TMO Subsidiaries 72.5%
Cash 11.8%
Private Placements 9.9%
Convertible Bonds 3.9%
Common Stocks:
Non-TMO Subsidiaries 1.9%
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THERMO OPPORTUNITY FUND
1
<PAGE>
LETTER TO SHAREHOLDERS JULY 12, 1999
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DEAR FELLOW SHAREHOLDERS:
When we wrote to you in our 1998 Annual Report, we described in some detail the
restructurings announced by Thermo Electron Corp. and its Subsidiaries, and how
we expected to position your Fund to profit from this process. We are pleased to
report that through the first half of fiscal 1999, we successfully began this
process. In particular, Thermo Opportunity Fund's market price advanced 15%
during the first half, with both your Fund and the net asset value (NAV) of the
portfolio again outperforming Thermo Electron and the average of its
Subsidiaries. More importantly for the long term, the restructuring of Thermo
Electron has been accelerated and expanded while the recovery in many of the
Subsidiaries' core end-markets continues.
Yet, even with this progress, our expectations remain high both in terms of the
opportunities to further increase the underlying NAV of your Fund and to
continue shrinking the discount that the shares have been trading to that NAV.
In pursuing the first goal, we will strive to exploit Thermo Electron's ongoing
restructuring and focus on the Subsidiaries with the strongest operating
performance. Regarding the discount to NAV, your Board of Directors has approved
a two-pronged plan of authorizing a share buyback of up to 25% of the
outstanding shares while simultaneously exploring other avenues for enhancing
shareholder value.
THERMO ELECTRON RESTRUCTURING UPDATE
During the first half of fiscal 1999, there were three new developments in
Thermo Electron's ongoing restructuring which, while not unexpected, were
positive for your Fund. First, the price for the repurchases announced by Thermo
Electron of Thermo Spectra, at $16 per share, and Thermo Power, at $12 per
share, validated our opportunistic focus on these companies since the original
restructuring announcement. Furthermore, we remain optimistic that the almost
doubling of our position in Thermedics Detection at attractive levels this year
will also prove beneficial to the Fund's performance.
Secondly, on May 24, 1999, Thermo Electron significantly expanded its
restructuring program, announcing the merger of three more underperforming
Subsidiaries into Thermo Electron and the cash repurchase of a fourth, Thermo
Vision, by its parent, Thermo Instrument Systems. This last announcement proved
particularly beneficial to your Fund as our analysis had indicated that Thermo
Vision was a likely repurchase candidate, and we had built up the position in
the company accordingly.
Looking ahead to the next stage of Thermo Electron's restructuring, we have
eliminated the positions in Thermo Power and Thermo Spectra as they have moved
to only modest discounts to
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THERMO OPPORTUNITY FUND
2
<PAGE>
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their takeover prices, but have maintained or increased our investments in other
announced consolidation targets. On the other hand, we no longer believe that
the capital markets will be receptive to IPOs from many of the privately held
Subsidiaries and we will look to divest most of these holdings over the balance
of the year.
On the operating front, there continues to be improvement in the key
international and semiconductor end-markets for Thermo Instrument Systems and
its Subsidiaries while Thermo BioAnalysis' groundbreaking work in the life
sciences area has marked it as a rising star. We also remain enthusiastic
believers in the long-term potential for Thermo Cardiosystems' revolutionary
Heart Assist Device. Finally, we believe that as Thermo Electron proceeds with
the restructuring of its weaker Subsidiaries, the underlying strengths of the
remaining companies will be more accurately reflected in their market
valuations.
RECENT EVENTS
As mentioned above, on April 20, 1999, the Board of Directors of your Fund
announced it was currently evaluating how Thermo Electron's restructuring will
affect the Fund and its ability to pursue its investment objective. The Board of
Directors announced also that it was considering various alternatives for
maximizing shareholder value, including continuing the Fund as is, continuing
the Fund with a changed investment objective, converting the Fund into an
open-end investment company, merging the Fund into another closed-end or
open-end investment company or liquidating the Fund. Certain of these
alternatives would be subject to shareholder approval. In addition, the Board
announced that it had authorized the Fund to purchase, from time to time, up to
25% of its stock in the open market.
The rationale behind this announcement was two-fold; first, to address the
discount to NAV that your shares have been selling at; and second, to
acknowledge that as Thermo Electron completes its restructuring over the next
year we will have to review all options available to us to maintain and enhance
shareholder value. At the current time, and subject to ongoing review, we would
hope to use a portion of the cash proceeds provided by Thermo Electron's
restructuring for an ongoing share repurchase program aimed at enhancing the
Fund's NAV and shrinking the discount. The benefits of this potential share
repurchase program will of course have to be greater than other investment
opportunities available to the Fund, and there is no guarantee that an active
share repurchase program will reduce the discount to NAV.
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THERMO OPPORTUNITY FUND
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Regarding the longer-term outlook for your Fund, much is dependent on the pace
of Thermo Electron's restructuring, whether or not it is expanded still further,
and on developments within the Subsidiaries themselves. How we manage your
portfolio during this period will also be influenced greatly by the impact that
improving performance and the potential implementation of a share repurchase
program have on the discount to NAV. At this point, our expectation is that the
next six months will be a time of transition, but that by the end of the year we
will have a clearer picture of the options open to us and their relative merit.
In the interim, we see opportunities for continued improvement in your Fund and
we look forward to updating you at the end of the year.
For weekly updates on the Fund's current statistics, please visit us at
www.thermofund.com.
Sincerely yours,
/s/ Gregory E. Ratte,
Gregory E. Ratte,
Chairman of the Board
4
<PAGE>
THERMO OPPORTUNITY FUND INTERIM PERFORMANCE UPDATE
FROM NOVEMBER 30, 1998 TO MAY 31, 1999
[GRAPHIC OMITTED]
THERMO OPPORTUNITY FUND INDUSTRY GROUPS
MAY 31, 1999
[GRAPHIC OMITTED]
Instruments 49.1%
Bio-Medical Products 16.9%
Cash 11.8%
Private Placements 9.9%
Advanced Technologies 6.5%
Alternative Energy Systems 3.3%
Environmental Services 2.4%
Process Equipment 0.1%
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THERMO OPPORTUNITY FUND
5
<PAGE>
THE THERMO OPPORTUNITY FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1999 (UNAUDITED)
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ASSETS
Investment securities:
At amortized cost (Original cost $18,420,240) ......... $ 18,439,691
============
At market value (Note 1) .............................. $ 16,048,735
Investments in repurchase agreements (Note 1) ................. 1,123,000
Cash .......................................................... 415
Interest receivable ........................................... 17,708
Receivable for securities sold ................................ 915,969
Organization expenses, net (Note 1) ........................... 80,744
Other assets .................................................. 7,092
------------
TOTAL ASSETS .......................................... 18,193,663
------------
LIABILITIES
Payable to affiliates (Note 3) ................................ 5,000
------------
TOTAL LIABILITIES ..................................... 5,000
------------
NET ASSETS .................................................... $ 18,188,663
============
Net assets consist of:
Common stock - par value $0.001 per share
Authorized 16,000,000 shares, Outstanding 1,760,417 shares .. $ 1,760
Additional paid-in capital .................................... 24,049,739
Accumulated net investment loss ............................... (94,146)
Accumulated net realized losses from security transactions .... (3,377,734)
Net unrealized depreciation on investments .................... (2,390,956)
------------
Net assets .................................................... $ 18,188,663
============
Net asset value per share (Note 1) ............................ $ 10.33
============
See accompanying notes to financial statements.
6
<PAGE>
THE THERMO OPPORTUNITY FUND, INC.
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MAY 31, 1999 (UNAUDITED)
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INVESTMENT INCOME
Interest ............................................. $ 61,846
Dividends ............................................ 600
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TOTAL INVESTMENT INCOME ...................... 62,446
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EXPENSES
Investment advisory fees (Note 3) .................... 62,637
Administrative services fees (Note 3) ................ 30,000
Amortization of organization expenses (Note 1) ....... 18,000
Professional fees .................................... 16,743
Directors' fees and expenses ......................... 16,194
Insurance expense .................................... 9,318
Reports to shareholders .............................. 7,929
Transfer agent fees .................................. 2,087
Exchange listing fees ................................ 1,826
Custodian fees ....................................... 1,771
Postage and supplies ................................. 780
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TOTAL EXPENSES ............................... 167,285
Fees waived by the Adviser (Note 3) .................. (10,693)
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NET EXPENSES ................................. 156,592
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NET INVESTMENT LOSS .......................................... (94,146)
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REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses from security transactions ....... (1,192,812)
Net change in unrealized appreciation/
depreciation on investments ....................... 3,740,266
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NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS ............. 2,547,454
-----------
NET INCREASE IN NET ASSETS FROM OPERATIONS ................... $ 2,453,308
===========
See accompanying notes to financial statements.
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THERMO OPPORTUNITY FUND
7
<PAGE>
<TABLE>
<CAPTION>
THE THERMO OPPORTUNITY FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS ENDED MAY 31, 1999 AND NOVEMBER 30, 1998
=======================================================================================
Six Months Year
Ended Ended
May 31, 1999 November 30,
(Unaudited) 1998
- ---------------------------------------------------------------------------------------
FROM OPERATIONS:
<S> <C> <C>
Net investment loss .......................... $ (94,146) $ (335,188)
Net realized losses from security transactions (1,192,812) (1,378,681)
Net change in unrealized appreciation/
depreciation on investments ................ 3,740,266 (3,709,042)
------------ ------------
Net increase (decrease) in net assets from operations 2,453,308 (5,422,911)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS ................ 2,453,308 (5,422,911)
NET ASSETS:
Beginning of period .......................... 15,735,355 21,158,266
------------ ------------
End of period ................................ $ 18,188,663 $ 15,735,355
============ ============
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
<TABLE>
<CAPTION>
THE THERMO OPPORTUNITY FUND, INC.
FINANCIAL HIGHLIGHTS
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
===========================================================================================================
Six Months Year Year Period
Ended Ended Ended Ended
May 31, 1999 November 30, November 30, November 30,
(Unaudited) 1998 1997 1996(A)
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value at beginning of period ........... $ 8.94 $ 12.02 $ 13.66 $ 14.10
-------- -------- -------- --------
Income (loss) from investment operations:
Net investment income (loss) ............. (0.05) (0.19) (0.17) 0.07
Net realized and unrealized gains (losses)
on investments ................... 1.44 (2.89) (1.41) (0.42)
-------- -------- -------- --------
Total from investment operations ................. 1.39 (3.08) (1.58) (0.35)
-------- -------- -------- --------
Less distributions:
Dividends from net investment income ..... -- -- (0.06) --
-------- -------- -------- --------
Effect of initial public offering costs .......... -- -- -- (0.09)
-------- -------- -------- --------
Net asset value at end of period ................. $ 10.33 $ 8.94 $ 12.02 $ 13.66
======== ======== ======== ========
Market value at end of period .................... $ 8.3125 $ 7.25 $ 9.50 $ 13.75
======== ======== ======== ========
Total investment return based on net asset value . 15.55% (25.62%) (11.59%) (3.12%)
======== ======== ======== ========
Total investment return based on market value .... 14.66% (23.68%) (30.56%) (2.48%)
======== ======== ======== ========
Net assets at end of period (000's) .............. $ 18,189 $ 15,735 $ 21,158 $ 24,048
======== ======== ======== ========
Ratio of net expenses to average net assets(B) ... 2.00%(C) 1.78% 1.66% 1.53%(C)
Ratio of net investment income (loss) to average
net assets ............................... (1.20%)(C) (1.66%) (1.33%) 1.62%(C)
Portfolio turnover rate .......................... 53%(C) 37% 47% 12%(C)
</TABLE>
(A) Represents the period from the initial public offering of shares (August 6,
1996) through November 30, 1996. No income was earned or expenses incurred
from the commencement of operations through the date of initial public
offering.
(B) Absent fee waivers, the ratio of expenses to average net assets would have
been 2.14%(C), 1.91%, 1.81% and 1.56%(C) for the periods ended May 31, 1999
and November 30, 1998, 1997 and 1996, respectively (Note 3).
(C) Annualized.
See accompanying notes to financial statements.
==============================
THERMO OPPORTUNITY FUND
9
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THE THERMO OPPORTUNITY FUND, INC.
PORTFOLIO OF INVESTMENTs
MAY 31, 1999 (UNAUDITED)
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Market
Shares COMMON STOCKS -- 82.7% Value
- --------------------------------------------------------------------------------
INSTRUMENTS -- 49.1%
164,166 Metrika Systems Corp.* ........................... $ 1,539,056
100,433 ONIX Systems, Inc.* .............................. 703,031
65,500 Thermo BioAnalysis Corp.* ........................ 1,195,375
25,000 Thermo Instrument Systems, Inc.* ................. 359,375
281,500 Thermo Optek Corp.* .............................. 2,885,375
74,100 ThermoQuest Corp.* ............................... 944,775
232,594 Thermo Vision Corp.* ............................. 1,308,341
------------
8,935,328
------------
BIO-MEDICAL PRODUCTS -- 16.9%
9,000 Photoelectron Corp.* ............................. 19,688
26,200 Thermedics, Inc.* ................................ 225,975
200,400 Thermo Cardiosystems, Inc.* ...................... 2,392,275
68,400 Trex Medical Corp.* .............................. 440,325
------------
3,078,263
------------
PRIVATE PLACEMENTS(A) -- 8.3%
50,000 Thermo Information Solutions* (Advanced Technologies) 500,000
50,000 Thermo Trilogy Corp.* (Environmental Services) ... 412,500
150,000 Trex Communications, Inc.* (Advanced Technologies) 600,000
------------
1,512,500
------------
ADVANCED TECHNOLOGIES -- 6.5%
2,000 DocuCorp International, Inc.* .................... 10,250
3,000 OAO Technology Solutions, Inc.* .................. 12,375
82,500 Thermedics Detection, Inc.* ...................... 835,312
38,900 ThermoTrex Corp.* ................................ 318,494
------------
1,176,431
------------
ALTERNATIVE ENERGY SYSTEMS -- 1.7%
181,900 KFX, Inc.* ....................................... 295,588
1,700 Thermo Power Corp.* .............................. 19,656
------------
315,244
------------
ENVIRONMENTAL SERVICES -- 0.1%
4,000 Randers Killam Group, Inc.* ...................... 12,250
------------
PROCESS EQUIPMENT -- 0.1%
500 Thermo Fibertek, Inc.* ........................... 3,719
------------
TOTAL COMMON STOCKS (Cost $17,340,241) ........... $ 15,033,735
------------
10
<PAGE>
THE THERMO OPPORTUNITY FUND, INC.
PORTFOLIO OF INVESTMENTS
(CONTINUED)
================================================================================
Market
Shares LIMITED LIABILITY COMPANIES(A) -- 1.6% Value
- --------------------------------------------------------------------------------
100,000 Cosmetic Laser Services L.L.C.* .................. $ 100,000
200,000 Cosmetic Laser Services II L.L.C.* ............... 200,000
------------
TOTAL LIMITED LIABILITY COMPANIES (Cost $300,000) $ 300,000
------------
================================================================================
Par Market
Value CONVERTIBLE BONDS -- 3.9% Value
- --------------------------------------------------------------------------------
$ 425,000 Thermo EuroTech N.V., 2.50%, 8/31/01(A) .......... $ 425,000
500,000 KFX, Inc., 6.00%, 7/23/02 ........................ 290,000
- ---------- ------------
$ 925,000 TOTAL CONVERTIBLE BONDS (Cost $799,450) .......... $ 715,000
========== ------------
TOTAL INVESTMENT SECURITIES -- 88.2%
(Cost $18,439,691) ............................... $ 16,048,735
------------
================================================================================
Face Market
Amount REPURCHASE AGREEMENTS(B) -- 6.2% Value
- --------------------------------------------------------------------------------
$1,123,000 Fifth Third Bank, 4.34%, dated 5/28/99,
========== due 6/01/99, repurchase proceeds $1,123,542 ...... $ 1,123,000
------------
TOTAL INVESTMENT SECURITIES AND
REPURCHASE AGREEMENTS -- 94.4% ................... $ 17,171,735
OTHER ASSETS IN EXCESS OF LIABILITIES -- 5.6% .... 1,016,928
------------
NET ASSETS -- 100.0% ............................. $ 18,188,663
============
* Non-income producing security.
(A) Valued at fair value as determined in good faith by the Adviser consistent
with procedures approved by the Board of Directors.
(B) Repurchase agreements are fully collateralized by U.S. Government
obligations.
See accompanying notes to financial statements.
==============================
THERMO OPPORTUNITY FUND
11
<PAGE>
THE THERMO OPPORTUNITY FUND, INC.
NOTES TO FINANCIAL STATEMENTS
MAY 31, 1999 (UNAUDITED)
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
The Thermo Opportunity Fund, Inc. (the Fund) was organized under Maryland law on
May 16, 1996 as a non-diversified, closed-end investment company. The Fund
commenced operations on June 19, 1996, when Brundage, Story and Rose, llc (the
Adviser), purchased 6,667 shares at $15 per share to provide the Fund with its
initial $100,000 of capital. The Fund commenced the public offering of shares on
August 6, 1996. The Fund is listed on the American Stock Exchange with a symbol
of "TMF."
The Fund's investment objective is to seek long-term capital appreciation. The
Fund seeks to achieve its investment objective by investing primarily in
securities issued by direct and indirect subsidiaries of Thermo Electron
Corporation (Thermo Electron). The Fund may also invest in securities issued by
companies not affiliated with Thermo Electron which either (i) engage in the
same or related industries as Thermo Electron or one or more of its subsidiaries
or (ii) practice a spin-out strategy similar to that practiced by Thermo
Electron.
The following is a summary of the Fund's significant accounting policies:
Securities valuation -- The Fund's portfolio securities are valued weekly (each
Friday) and on the last business day of each month as of the close of the
regular session of trading on the New York Stock Exchange (normally 4:00 p.m.,
Eastern time). Portfolio securities listed on stock exchanges and securities
traded in the over-the-counter market are valued at the last sale price as of
the close of business on the day the securities are being valued. Securities not
traded on a particular day, or for which the last sale price is not readily
available, are valued at the closing bid price quoted by brokers that make
markets in the securities. Corporate bonds are valued at their most recent bid
price as obtained from one or more of the major market makers for such
securities or are valued at an estimated fair value obtained from an independent
pricing service based upon such factors as maturity, coupon, issuer and type of
security. If market quotations are not readily available, securities will be
valued at fair value as determined in good faith by the Adviser consistent with
procedures approved by the Board of Directors.
Repurchase agreements -- Repurchase agreements, which are collateralized by U.S.
Government obligations, are valued at cost which, together with accrued
interest, approximates market. Collateral for repurchase agreements is held in
safekeeping in the customer-only account of the Fund's custodian at the Federal
Reserve Bank. At the time the Fund enters into a repurchase agreement, the
seller agrees that the value of the underlying securities, including accrued
interest, will be equal to or exceed the face amount of the repurchase
agreement. The Fund enters into repurchase agreements only with institutions
deemed to be creditworthy by the Adviser, including banks having assets in
excess of $10 billion and primary U.S. Government securities dealers.
Share valuation -- The net asset value of the Fund is calculated weekly (each
Friday) and on the last business day of each month by dividing the total value
of the Fund's assets, less liabilities, by the number of shares outstanding.
Investment income-- Interest income is accrued as earned. Dividend income is
recorded on the ex-dividend date. Discounts and premiums on securities purchased
are accreted/amortized in accordance with income tax regulations.
Distributions to shareholders-- Dividends arising from net investment income, if
any, are declared and paid annually. Net realized short-term capital gains, if
any, may be distributed throughout the year and net realized long-term capital
gains, if any, are distributed at least once each year. Income distributions and
capital gain distributions are determined in accordance with income tax
regulations.
12
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THE THERMO OPPORTUNITY FUND, INC.
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
================================================================================
Security transactions -- Security transactions are accounted for on the trade
date. Securities sold are accounted for on a specific identification basis.
Organization expenses and offering costs-- Expenses of organization, net of
certain expenses paid by the Adviser, have been capitalized and are being
amortized on a straight-line basis over five years. Expenses related to the
offering of shares have been charged against capital.
Estimates -- The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amount of assets and liabilities at the
date of the financial statements and the reported amounts of income and expenses
during the reporting period. Actual results could differ from those estimates.
Federal income tax -- It is the Fund's policy to comply with the special
provisions of the Internal Revenue Code available to regulated investment
companies. As provided therein, in any fiscal year in which a Fund so qualifies
and distributes at least 90% of its taxable net income, the Fund (but not the
shareholders) will be relieved of federal income tax on the income distributed.
Accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also the Fund's intention to declare as dividends in
each calendar year at least 98% of its net investment income (earned during the
calendar year) and 98% of its net realized capital gains (earned during the
fiscal year ended November 30) plus undistributed amounts from prior years.
The following information is based upon federal income tax cost of portfolio
investments (excluding repurchase agreements) as of May 31, 1999:
- --------------------------------------------------------------------------------
Gross unrealized appreciation ......................... $ 1,615,302
Gross unrealized depreciation ......................... (4,231,612)
------------
Net unrealized depreciation ........................... $ (2,616,310)
============
Federal income tax cost ............................... $ 18,665,045
============
- --------------------------------------------------------------------------------
The difference between the federal income tax cost of portfolio investments and
the financial statement cost is due to certain timing differences in the
recognition of capital losses under generally accepted accounting principles and
income tax regulations.
As of November 30, 1998, the Fund had capital loss carryforwards for federal
income tax purposes of $2,021,465, none of which expire prior to November 30,
2004. These capital loss carryforwards may be utilized in the current and future
years to offset net realized capital gains prior to distributing such gains to
shareholders.
2. INVESTMENT TRANSACTIONS
Cost of purchases and proceeds from sales and maturities of investment
securities, other than short-term investments, amounted to $4,053,612 and
$5,565,254, respectively, during the six months ended May 31, 1999.
==============================
THERMO OPPORTUNITY FUND
13
<PAGE>
THE THERMO OPPORTUNITY FUND, INC.
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
================================================================================
3. TRANSACTIONS WITH AFFILIATES
Certain Directors and officers of the Fund are principals of the Adviser.
Certain officers of the Fund are officers of Countrywide Fund Services, Inc.
(CFS), the administrative services agent for the Fund.
ADVISORY AGREEMENT
The Fund's investments are managed by the Adviser pursuant to the terms of an
Advisory Agreement. Under the Advisory Agreement, the Fund pays the Adviser a
fee, computed and accrued daily and paid monthly, at an annual rate of 0.80% of
its average daily net assets.
In order to reduce the operating expenses of the Fund, the Adviser voluntarily
waived $10,693 of its investment advisory fees during the six months ended May
31, 1999.
ADMINISTRATIVE SERVICES AGREEMENT
Under the terms of the Administrative Services Agreement between the Fund and
CFS, CFS supplies non-investment related statistical and research data, internal
regulatory compliance services and executive and administrative services for the
Fund. CFS calculates the weekly and month end net asset value per share and
maintains the financial books and records of the Fund, supervises the
preparation of tax returns, reports to shareholders of the Fund, reports to and
filings with the Securities and Exchange Commission, and materials for meetings
of the Board of Directors. For the performance of these administrative services,
CFS receives a monthly fee based on the Fund's average daily net assets, subject
to a $5,000 monthly minimum.
4. STOCK REPURCHASE PROGRAM
On April 20, 1999, the Board of Directors authorized the Fund to purchase, from
time to time, up to 25% of its common stock in the open market. As of May 31,
1999, no shares had been repurchased under the stock repurchase program.
5. RESULTS OF ANNUAL MEETING OF STOCKHOLDERS
On April 20, 1999, the Annual Meeting of Stockholders of the Fund was held to
elect one Director and to ratify or reject the selection of Arthur Andersen LLP
as independent auditors for the Fund's current fiscal year. The total number of
shares of the Fund present by proxy represented 91.9% of the shares entitled to
vote at the meeting. Each of the matters submitted to stockholders was approved.
The results of the voting for the election of one Director was as follows:
incumbent nominee Blair M. Brewster-- 1,579,759 shares for election and 38,881
against election. The results of the voting for or against the ratification of
Arthur Andersen LLP as independent auditors was as follows: 1,600,150 shares for
ratification, 10,148 shares against ratification and 8,342 shares abstained.
14
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15
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THE THERMO OPPORTUNITY FUND, INC.
312 Walnut Street, 21st Floor
Cincinnati, Ohio 45202
BOARD OF DIRECTORS
Francis S. Branin, Jr.
Blair M. Brewster
Henson L. Jones, Jr.
Hollis S. McLoughlin
Gregory E. Ratte
INVESTMENT ADVISER
Brundage, Story and Rose, LLC
One Broadway
New York, New York 10004
TRANSFER AGENT
Fifth Third Bank
38 Fountain Square Plaza
Cincinnati, Ohio 45263
SHAREHOLDER SERVICES
Nationwide: (Toll Free) 888-254-6872
WEBSITE
www.thermofund.com
