FIDELITY
(registered trademark)
CONTRAFUND
SEMIANNUAL REPORT
JUNE 30, 1995
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.
PERFORMANCE 4 How the fund has done over time.
FUND TALK 6 The manager's review of fund
performance, strategy and outlook.
INVESTMENT CHANGES 9 A summary of major shifts in the
fund's investments over the past six
months.
INVESTMENTS 10 A complete list of the fund's
investments with their market
values.
FINANCIAL STATEMENTS 30 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.
NOTES 34 Notes to the financial statements.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR DISTRIBUTION
TO PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE
PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY,
ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, THE
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK. FOR MORE
INFORMATION ON
ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES, CALL 1-800-544-8888 FOR
A FREE
PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
Although there have been positive market indications so far in 1995, no one
can predict what lies ahead for investors. Last year, stocks posted
below-average returns and bonds had one of the worst years in history. This
downturn followed a period in which the investing environment was generally
very positive.
These market ups and downs are a normal part of investing, and there are
some basic principles that are helpful for investors to remember in
different types of markets.
If you can leave your money invested over the long term, you can avoid the
results of the volatility that generally accompanies the stock market in
the short term, as we witnessed last year. You also can help to manage some
of the risks of investing through diversification. A stock fund is already
diversified because it invests in many issues. You can diversify even
further by placing some of your money in several different types of stock
funds or in other investment categories, such as bonds.
If you have a short investment time horizon, you might want to consider
moving some of your investment into a money market fund, which seeks income
and a stable share price by investing in high-quality, short-term
investments. Of course, there is no assurance that a money market fund will
achieve its goal, and it is important to remember that money market funds
are not insured or guaranteed by any agency of the U.S. government.
Finally, no matter what your investment horizon or portfolio diversity, it
makes good sense to follow a regular investment plan - investing a certain
amount of money at the same time each month or quarter - and to review your
portfolio periodically. A periodic investment plan will not, of course,
assure a profit or protect against a loss.
If you have any questions, please call us at 1-800-544-8888. We stand ready
to provide the information you need to make the investments that are right
for you.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance. You can
look at the total percentage of change in value, the average annual
percentage change, or the growth of a hypothetical $10,000 investment. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (or income) and capital gains (the profits
the fund earns when it sells stocks that have grown in value).
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JUNE 30, 1995 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS
Contrafund 20.74% 25.42% 149.69% 486.89%
Contrafund (incl. 3% sales charge) 17.12% 21.66% 142.19% 469.28%
S&P 500(registered trademark) 20.21% 26.07% 76.98% 293.40%
Average Growth Fund 17.47% 22.26% 71.92% 243.85%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one, five, or 10 years. For
example, if you invested $1,000 in a fund that had a 5% return over the
past year, the value of your investment would be $1,050. You can compare
the fund's returns to the performance of the Standard & Poor's Composite
Index of 500 Stocks - a common proxy for the U.S. stock market. To measure
how the fund's performance stacked up against its peers, you can compare it
to the average growth fund, which reflects the performance of 583 growth
funds with similar objectives tracked by Lipper Analytical Services over
the past six months. Both benchmarks include reinvested dividends and
capital gains, if any, and exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JUNE 30, 1995 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Contrafund 25.42% 20.08% 19.36%
Contrafund (incl. 3% sales charge) 21.66% 19.35% 19.00%
S&P 500(registered trademark) 26.07% 12.09% 14.68%
Average Growth Fund 22.26% 11.14% 12.72%
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER 10 YEARS
Contrafund (022)Standard & Poor's
06/30/85 9700.00 10000.00
07/31/85 9805.63 9985.00
08/31/85 9990.47 9900.13
09/30/85 9488.75 9590.25
10/31/85 9999.27 10033.32
11/30/85 10527.40 10721.61
12/31/85 10927.18 11240.54
01/31/86 11026.03 11303.48
02/28/86 12109.97 12148.98
03/31/86 12650.15 12826.90
04/30/86 12414.44 12681.95
05/31/86 12728.73 13356.63
06/30/86 12669.80 13582.36
07/31/86 11736.75 12823.10
08/31/86 12502.83 13774.58
09/30/86 11756.39 12635.42
10/31/86 12542.12 13364.49
11/30/86 12542.12 13689.24
12/31/86 12382.41 13340.17
01/31/87 14170.13 15137.09
02/28/87 15036.51 15735.00
03/31/87 15285.80 16189.74
04/30/87 15319.79 16045.65
05/31/87 15455.77 16185.25
06/30/87 16022.33 17002.61
07/31/87 16804.18 17864.64
08/31/87 17416.07 18530.99
09/30/87 17064.80 18125.16
10/31/87 12135.72 14221.00
11/30/87 11467.18 13049.19
12/31/87 12147.05 14042.23
01/31/88 12928.91 14633.41
02/29/88 13518.13 15315.33
03/31/88 13540.79 14842.09
04/30/88 13812.74 15006.83
05/31/88 13620.11 15137.39
06/30/88 14277.32 15832.20
07/31/88 14379.30 15772.04
08/31/88 14062.03 15235.79
09/30/88 14639.92 15884.83
10/31/88 15025.18 16326.43
11/30/88 14911.87 16092.96
12/31/88 14700.63 16374.59
01/31/89 15676.80 17573.21
02/28/89 15583.83 17135.64
03/31/89 16408.93 17534.90
04/30/89 17466.44 18444.96
05/31/89 18372.89 19191.98
06/30/89 18256.68 19082.58
07/31/89 19930.11 20805.74
08/31/89 20499.54 21213.53
09/30/89 20894.65 21126.56
10/31/89 20267.12 20636.42
11/30/89 20731.96 21057.41
12/31/89 21044.23 21562.78
01/31/90 19928.06 20115.92
02/28/90 20341.92 20375.42
03/31/90 20780.86 20915.36
04/30/90 20567.66 20392.48
05/31/90 22511.56 22380.75
06/30/90 22800.01 22228.56
07/31/90 22373.60 22157.43
08/31/90 20630.37 20154.40
09/30/90 19765.02 19172.88
10/31/90 19865.35 19090.43
11/30/90 21044.23 20323.68
12/31/90 21872.54 20890.71
01/31/91 24003.07 21801.54
02/28/91 25818.42 23360.35
03/31/91 27331.22 23925.67
04/30/91 27482.50 23983.09
05/31/91 29234.83 25019.16
06/30/91 27595.96 23873.28
07/31/91 29549.99 24985.78
08/31/91 31037.58 25577.94
09/30/91 31125.82 25150.79
10/31/91 32020.90 25487.81
11/30/91 30331.60 24460.65
12/31/91 33884.61 27258.95
01/31/92 34850.86 26751.94
02/29/92 35981.81 27099.71
03/31/92 35005.29 26571.27
04/30/92 35385.05 27352.46
05/31/92 35764.80 27486.49
06/30/92 34896.79 27076.94
07/31/92 35778.37 28184.39
08/31/92 35113.80 27606.61
09/30/92 35710.55 27932.36
10/31/92 36510.75 28030.13
11/30/92 38273.90 28985.95
12/31/92 39270.21 29342.48
01/31/93 40513.93 29588.96
02/28/93 40781.20 29991.37
03/31/93 42730.04 30624.19
04/30/93 43018.75 29883.08
05/31/93 44722.18 30683.95
06/30/93 44736.62 30772.93
07/31/93 45227.44 30649.84
08/31/93 47421.68 31811.47
09/30/93 47522.73 31566.52
10/31/93 47941.37 32219.95
11/30/93 46136.89 31913.86
12/31/93 47684.32 32300.02
01/31/94 49184.12 33398.22
02/28/94 48831.23 32493.12
03/31/94 46900.40 31076.42
04/30/94 47476.53 31474.20
05/31/94 47211.82 31990.38
06/30/94 45390.00 31206.62
07/31/94 46308.70 32230.19
08/31/94 48239.52 33551.63
09/30/94 47601.10 32729.61
10/31/94 48955.80 33466.03
11/30/94 46729.12 32247.20
12/31/94 47149.54 32725.42
01/31/95 46386.55 33573.99
02/28/95 48255.09 34882.37
03/31/95 50014.64 35911.75
04/30/95 52272.46 36969.35
05/31/95 53533.72 38447.02
06/30/95 56928.24 39340.14
$10,000 OVER 10 YEARS: Let's say you invested $10,000 in Fidelity
Contrafund on June 30, 1985, and paid a 3% sales charge. As the chart
shows, by June 30, 1995, the value of your investment would have grown to
$56,928 - a 469.28% increase on your initial investment. For comparison,
look at how the S&P 500 did over the same period. With dividends
reinvested, the same $10,000 investment would have grown to $39,340 - a
293.40% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is no
guarantee of how it will do
tomorrow. The stock market,
for example, has a history of
growth in the long run and
volatility in the short run. In
turn, the share price and return
of a fund that invests in stocks
will vary. That means if you
sell your shares during a
market downturn, you might
lose money. But if you can ride
out the market's ups and
downs, you may have a gain.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Will Danoff, Portfolio Manager of Fidelity Contrafund
Q. HOW HAS THE FUND PERFORMED, WILL?
A. The fund performed well during the first half of 1995. For the six
months ended June 30, 1995, Contrafund returned 20.74%. It returned 25.42%
for the 12 months ended June 30, 1995. That beats the average growth fund
tracked by Lipper Analytical Services which returned 17.47% and 22.26% for
the same time periods, respectively.
Q. WHAT FACTORS AFFECTED PERFORMANCE IN THE FIRST HALF OF THE YEAR?
A. The fund's heavy weighting in technology stocks, which performed
strongly during the period, contributed significantly to the fund's
results. The stock market rebounded smartly in the first six months of
1995, after moving sideways since the autumn of 1993. During 1994, the
Federal Reserve raised interest rates, which led to depressed stock
valuations. So far in 1995, the economy has slowed, which has enabled
interest rates to fall and stock prices to recover. Shares of growth
companies performed particularly well in this environment because these
companies generally can sustain their earnings growth rates despite the
overall economy slowing.
Q. YOU MENTIONED TECHNOLOGY. THE FUND'S HOLDING IN THAT SECTOR INCREASED
FROM 29% OF THE FUND SIX MONTHS AGO TO ALMOST 40% BY THE END OF JUNE . . .
A. As I explained in the last report, the outlook for most technology
companies remains bright. With the price of computing continuing to fall
and the functionality of computing rising, society is using computers with
increasing frequency, both at work and home, throughout the world. Personal
computer sales rose by more than 20% last year, and are expected to advance
at a similar rate this year. Sales of workstations, mini-computers and even
mainframes also have been strong. These robust hardware sales are, in turn,
driving sales of components used to make computers. These include
semiconductors, peripheral devices, such as printers, and software. For
example, the Semiconductor Industry Association estimates that
semiconductor sales growth will exceed 30% in 1995.
Q. WITH A FEW EXCEPTIONS, MOST OF THE FUND'S TECHNOLOGY HOLDINGS ARE IN THE
U.S. WHY IS THAT?
A. Greater computer penetration in the global economy helps American
companies particularly because the U.S. has emerged as the world leader in
computing technology. For example, seven of the world's 10 largest personal
computer manufacturers are based in the U.S. Intel Corporation leads the
world in manufacturing microprocessors, the "semiconductor brain" of the
personal computer. Led by Intel, the American semiconductor industry has
the lowest cost structure in the world, helped by improved yields and the
weakening dollar. Microsoft leads the world in writing personal computer
software.
Q. HOW LONG CAN THE SECTOR SUSTAIN SUCH STRONG GROWTH?
A. Buoyed by strong sales, many technology companies are reporting
outstanding earnings gains this year. Therefore, although share prices of
many technology companies have appreciated sharply in the first half of the
year, the valuation for many stocks in the sector based on expected
earnings is still quite reasonable. For example, IBM, the fund's largest
holding, should double earnings this year and should be able to increase
earnings 15-17% next year but is trading at less than eight times the 1996
estimate after adjusting for the company's cash. Similarly, Intel, also in
the fund's top 10 holdings, is selling at only 10 times the 1996 earnings
estimate despite expected growth of over 20% next year. So, even though
stocks in the technology sector rose more than 30% in the first half of the
year, the outlook for these companies is still excellent.
Q. THE FUND'S INVESTMENTS IN THE FINANCIAL SECTOR HAVE MORE THAN TRIPLED TO
15.6% OF THE FUND. WHAT'S YOUR THINKING?
A. The fund significantly raised its weighting in the financial sector this
year. Earlier in the year, I realized that the U.S. economy was slowing.
Housing starts began to fall, auto sales began to slow and inventories
began to build. A slowing economy generally alleviates inflationary
pressures in the economy and leads to lower interest rates. Therefore, I
bought financial stocks, such as thrifts and consumer finance companies,
whose earnings benefit from declining interest rates. The bet has paid off
nicely as the financial stocks rose about 25% in the first half of the
year.
Q. WHAT STRATEGIES HAVEN'T WORKED OUT AS YOU WOULD HAVE LIKED?
A. Despite the good performance, the fund has had its share of
disappointments this year. At the end of 1994, the fund had about 16.0%
cash - which was too much. I had become too cautious when I should have
stayed fully invested. Additionally, there were a few instances when I sold
a stock too soon. I significantly reduced the fund's holding in Motorola
when the company announced that its cellular telephone inventories had
grown sharply. I thought that the excess inventories would lead to
deceleration of the growth rate. However, the company is still doing very
well and is a leader in wireless communications. In retrospect, I reduced
the fund's position in Motorola too much - and too quickly.
Q. WHAT'S YOUR OUTLOOK FOR THE NEXT SIX MONTHS?
A. Even though the market has produced excellent returns so far this year,
I am still bullish on the rest of 1995. With the economy weakening and
inflation subdued, interest rates should continue to decline. Lower
interest rates support higher stock valuations. Lower interest rates also
will re-stimulate the economy, propelling corporate earnings higher. When
the economy reaccelerates, stocks of technology companies and economically
sensitive companies, such as auto and machinery manufacturers, should
perform particularly well. These U.S. companies are more efficient than
ever and, with the dollar so weak, in many cases they have the lowest cost
structures in the world. These low costs coupled with steady worldwide
economic growth should lead to improved profits and stock prices.
FUND FACTS
GOAL: to increase the value
of the fund's shares over the
long term by investing in
companies undergoing
positive changes and
turnarounds
START DATE: May 17, 1967
SIZE: as of June 30, 1995,
more than $11 billion
MANAGER: Will Danoff, since
October 1990; assistant
Fidelity Magellan Fund, 1990;
manager, Fidelity Select
Retailing Portfolio,
1986-1989; joined Fidelity in
1986
(checkmark)
WILL DANOFF ON INVESTING IN
CORPORATE TURNAROUNDS:
"I am constantly looking for
new investment opportunities
and very often I seek out
corporate turnarounds. I look
for catalysts such as a new
management team, a new
product, or the sale of an
unprofitable division. In most of
my holdings I try to find any
positive change that I think will
lead to an acceleration in the
company's earnings.
"Let me review a couple of
examples in the fund's top 10
holdings as of June. General
Motors appointed a new CEO
about two years ago who has
cut costs significantly, reduced
its pension liability
meaningfully and revitalized
the product line. As a result,
earnings have surged. I've
added GM to the fund in the
past six months because the
company has become much
more competitive internationally
due in part to the decline of the
dollar against the Japanese
yen. Scott Paper is another
example. Under new
management, the company has
recently sold underperforming
assets, cut costs, introduced
new products and reduced its
debt by $2 billion.
"Investing in a turnaround
company during the early
phases can be very profitable.
Earnings can double or triple
from a very depressed base in
companies that wouldn't
ordinarily be considered growth
companies. I always like
having a healthy number of
turnaround companies in the
fund's top holdings."
INVESTMENT CHANGES
TOP TEN STOCKS AS OF JUNE 30, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO
International Business Machines 3.1 2.3
Corp.
Intel Corp. 1.9 0.0
General Motors Corp. 1.6 0.0
Microsoft Corp. 1.4 0.7
Philip Morris Companies, Inc. 1.4 1.4
Hewlett-Packard Co. 1.1 1.0
LSI Logic Corp. 1.1 0.8
Micron Technology, Inc. 0.9 0.4
Scott Paper Co. 0.9 0.7
Philips Electronics NV 0.9 0.7
TOP FIVE MARKET SECTORS AS OF JUNE 30, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE MARKET SECTORS
6 MONTHS AGO
Technology 39.4 29.0
Finance 15.6 4.3
Industrial Machinery & Equipment 5.8 3.9
Durables 4.8 2.5
Energy 4.1 6.3
ASSET ALLOCATION
AS OF JUNE 30, 1995* AS OF DECEMBER 31, 1994**
Row: 1, Col: 1, Value: 3.1
Row: 1, Col: 2, Value: 1.7
Row: 1, Col: 3, Value: 50.0
Row: 1, Col: 4, Value: 45.2
Stocks 83.1%
Bonds 0.7%
Short-term
Investments 16.2%
FOREIGN
INVESTMENTS 8.8%
Stocks 96.6%
Bonds 0.3%
Short-term
Investments 3.1%
FOREIGN
INVESTMENTS 7.2%
Row: 1, Col: 1, Value: 16.2
Row: 1, Col: 2, Value: 2.1
Row: 1, Col: 3, Value: 50.0
Row: 1, Col: 4, Value: 31.7
*
**
INVESTMENTS JUNE 30, 1995 (UNAUDITED)
Showing Percentage of Total Value of Investment in Securities
COMMON STOCKS - 96.4%
SHARES VALUE (NOTE 1)
(000S)
AEROSPACE & DEFENSE - 2.3%
AEROSPACE & DEFENSE - 1.5%
Boeing Co. 400,000 $ 25,050
McDonnell Douglas Corp. 400,000 30,700
Rockwell International Corp. 900,000 41,175
Special Devices, Inc. (a)(b) 642,200 14,289
Sturm Ruger & Co., Inc. 649,900 21,203
Sundstrand Corp. 560,000 33,460
Teleflex, Inc. 83,000 3,569
169,446
DEFENSE ELECTRONICS - 0.8%
Loral Corp. 1,025,000 53,044
Tech-Sym Corp. (a)(b) 330,000 9,033
Tracor, Inc. (a)(b) 1,004,100 13,681
Trimble Navigation Ltd. (a) 800,000 22,700
98,458
TOTAL AEROSPACE & DEFENSE 267,904
BASIC INDUSTRIES - 3.1%
CHEMICALS & PLASTICS - 1.3%
Agrium, Inc. (a) 274,300 9,293
Cabot Corp. 74,300 3,919
Cambrex Corp. (b) 486,200 16,409
du Pont (E.I.) de Nemours & Co. 165,000 11,344
Engelhard Corp. 690,000 19,722
First Mississippi Corp. 133,600 4,559
Grace (W.R.) & Co. 350,000 21,481
Hercules, Inc. 246,000 11,993
Mississippi Chemical Corp. 105,000 2,093
Potash Corp. of Saskatchewan 660,000 36,907
Raychem Corp. 50,000 1,919
Tredegar Industries, Inc. 274,500 6,828
Union Carbide Corp. 70,800 2,363
Vigoro Corp. 75,000 3,113
151,943
IRON & STEEL - 0.2%
Armco, Inc. (a) 1,060,400 7,158
J & L Specialty Steel, Inc. 838,500 16,141
23,299
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
BASIC INDUSTRIES - CONTINUED
METALS & MINING - 0.4%
Alcan Aluminium Ltd. 770,000 $ 23,282
Alumax, Inc. (a) 304,300 9,471
Aluminum Co. of America 86,000 4,311
Martin Marietta Materials, Inc. 177,900 3,558
Phelps Dodge Corp. 50,000 2,931
43,553
PAPER & FOREST PRODUCTS - 1.2%
Boise Cascade Corp. 75,000 3,038
Bowater, Inc. 20,000 898
Champion International Corp. (a) 150,000 7,819
Georgia-Pacific Corp. 169,100 14,669
International Paper Co. 90,000 7,718
Scott Paper Co. 2,175,000 107,663
Union Camp Corp. 100,000 5,788
147,593
TOTAL BASIC INDUSTRIES 366,388
CONGLOMERATES - 0.3%
Allied-Signal, Inc. 100,000 4,450
Crane Co. 25,000 906
Tyco International Ltd. (a) 120,500 6,507
United Technologies Corp. 365,000 28,516
40,379
CONSTRUCTION & REAL ESTATE - 1.3%
BUILDING MATERIALS - 0.5%
Armstrong World Industries, Inc. 300,000 15,038
Centex Construction Products (a) 392,800 4,959
Elcor Corp. (a) 331,700 7,380
Manville Corp. (a) 820,700 11,285
Masco Corp. 85,000 2,295
USG Corp. (a) 550,000 13,063
United Dominion Industries Ltd. 100,000 2,240
56,260
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
CONSTRUCTION & REAL ESTATE - CONTINUED
CONSTRUCTION - 0.1%
Oakwood Homes Corp. 681,500 $ 17,463
ENGINEERING - 0.3%
Fluor Corp. 296,900 15,439
Glenayre Technologies, Inc. (a) 386,100 19,691
35,130
REAL ESTATE INVESTMENT TRUSTS - 0.4%
CWM Mortgage Holdings, Inc. 720,000 9,180
Crescent Real Estate Equities, Inc. 894,500 28,512
National Golf Properties, Inc. 144,700 3,039
Shurgard Storage Centers, Inc. 235,600 5,419
46,150
TOTAL CONSTRUCTION & REAL ESTATE 155,003
DURABLES - 4.8%
AUTOS, TIRES, & ACCESSORIES - 3.5%
Allen Group, Inc. (The) 695,100 20,592
Borg-Warner Automotive, Inc. 125,000 3,563
Chrysler Corp. 2,149,200 102,893
Dana Corp. 916,900 26,246
Echlin, Inc. 448,500 15,585
General Motors Corp. 3,899,819 182,804
Goodyear Tire & Rubber Co. 570,000 23,513
Lear Seating Corp. (a) 575,600 13,167
Magna International, Inc. Class A 41,000 1,803
Snap-on Tools Corp. 15,700 608
TRW, Inc. 180,800 14,441
Toyota Motor Corp. 103,000 2,065
407,280
CONSUMER ELECTRONICS - 0.2%
Black & Decker Corp. 450,000 13,894
Toro Co. 556,300 15,576
29,470
HOME FURNISHINGS - 0.1%
Bombay Company, Inc. (The) (a) 1,034,100 8,144
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
DURABLES - CONTINUED
TEXTILES & APPAREL - 1.0%
Chaus (Bernard), Inc. (a)(b) 1,312,500 $ 6,563
Converse, Inc. (a) 95,500 704
Fila Holding SPA sponsored ADR 229,700 5,714
Mohawk Industries, Inc. (a) 415,300 6,126
NIKE, Inc. Class B 325,000 27,300
Nine West Group, Inc. (a) 545,000 19,893
Unifi, Inc. 489,000 11,736
Vista Resources, Inc. (a) 174,000 3,524
Warnaco Group, Inc. Class A 1,564,000 31,280
112,840
TOTAL DURABLES 557,734
ENERGY - 4.1%
ENERGY SERVICES - 2.5%
Baker Hughes, Inc. 1,433,700 29,391
ENSCO International, Inc. (a) 1,500,700 23,824
Halliburton Co. 450,000 16,088
Nabors Industries, Inc. (a) 536,300 4,424
Reading & Bates Corp. (a) 1,333,300 12,333
Schlumberger Ltd. 1,100,000 68,338
Smith International, Inc. (a)(b) 3,150,000 52,763
Sonat Offshore Drilling, Inc. 900,000 25,875
Tidewater, Inc. 2,092,800 52,582
Weatherford International, Inc. (a) 584,100 7,374
292,992
INDEPENDENT POWER - 0.2%
Thermo Electron Corp. (a) 550,000 22,138
OIL & GAS - 1.4%
Camco International, Inc. (b) 2,430,000 56,801
Canada Occidental Petroleum Ltd. 597,500 18,556
Chesapeake Energy Corp. (a)(b) 597,700 15,391
Newfield Exploration Co. (a) 293,800 8,337
Norsk Hydro AS ADR 152,000 6,346
Northstar Energy Corp. (a) 926,200 7,507
Pogo Producing Co. 520,500 11,906
Renaissance Energy Ltd. (a) 1,120,000 23,155
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
ENERGY - CONTINUED
OIL & GAS - CONTINUED
Rio Alto Exploration Ltd. (a) 909,300 $ 2,849
Vastar Resources, Inc. 275,000 8,491
159,339
TOTAL ENERGY 474,469
FINANCE - 15.6%
BANKS - 4.1%
Banc One Corp. 650,000 20,963
Bangkok Bank Ltd. 800,000 8,815
BankAmerica Corp. 1,300,000 68,413
Bank of Asia PCL (For. Reg.) 265,350 752
Bank of Boston Corp. 900,000 33,750
Bank of New York Co., Inc. 1,463,200 59,077
Bankers Trust New York Corp. 375,000 23,250
BayBanks, Inc. 60,500 4,795
Capital One Financial Corp. 450,000 8,775
Chase Manhattan Corp. 800,000 37,600
Chemical Banking Corp. 1,485,000 70,166
Citicorp 475,000 27,491
First Bank System, Inc. 894,500 36,675
Fleet Financial Group, Inc. 331,500 12,307
MLF Bancorp, Inc. 165,400 3,184
NationsBank Corp. 800,000 42,900
Republic New York Corp. 160,000 8,960
Thai Farmers Bank PCL 1,000,000 9,560
477,433
CREDIT & OTHER FINANCE - 2.9%
Aames Financial Corp. 294,900 5,345
American Express Co. 1,835,000 64,454
Beneficial Corp. 535,000 23,540
Countrywide Credit Industries, Inc. 449,600 9,442
Equitable Companies, Inc. 844,600 17,631
First USA, Inc. 850,000 37,719
Green Tree Acceptance, Inc. 1,340,000 59,463
Greenpoint Financial Corp. 1,145,000 27,051
Household International, Inc. 1,340,000 66,330
Industrial Finance Corp. (For. Reg.) (a) 2,700,000 7,110
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
CREDIT & OTHER FINANCE - CONTINUED
MBNA Corp. 425,000 $ 14,344
Mercury Finance Co. 550,000 10,588
343,017
FEDERAL SPONSORED CREDIT - 1.6%
Federal Home Loan Mortgage Corporation 925,000 63,594
Federal National Mortgage Association 1,025,000 96,734
Student Loan Marketing Association 425,000 19,922
180,250
INSURANCE - 3.1%
Aetna Life & Casualty Co. 425,000 26,722
Allstate Corp. 2,050,000 60,731
American International Group, Inc. 349,200 39,809
American Reinsurance Corp. 518,600 19,318
CIGNA Corp. 150,000 11,644
General Re Corp. 88,400 11,835
Loews Corp. 137,800 16,674
MGIC Investment Corp. 925,000 43,359
PMI Group, Inc. 385,100 16,704
Reliastar Financial Corp. 313,500 11,991
TIG Holdings, Inc. 455,000 10,465
Transatlantic Holdings, Inc. 107,500 6,988
Travelers, Inc. (The) 2,050,000 89,688
365,928
SAVINGS & LOANS - 1.4%
Charter One Financial Corp. 832,004 20,384
Coast Savings Financial, Inc. (a) 476,300 9,824
Glendale Federal Bank (a) 1,400,000 17,500
Golden West Financial Corp. 500,000 23,563
Great Western Financial Corp. 1,600,000 33,000
Long Island Bancorp, Inc. (b) 1,336,600 25,395
Standard Federal Bancorporation, Inc. 529,100 17,791
Standard Financial, Inc. (a) 771,600 10,224
Washington Federal, Inc. 451,500 9,933
167,614
SECURITIES INDUSTRY - 2.5%
Alex. Brown, Inc. 440,000 18,260
Alliance Capital Management LP (a) 624,900 11,873
Alliance Entertainment Corp. (a) 1,200,000 11,250
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
SECURITIES INDUSTRY - CONTINUED
Bear Stearns Companies, Inc. 1,428,945 $ 30,544
Edwards (A.G.), Inc. 912,100 20,522
Lehman Brothers Holdings, Inc. 359,400 7,862
Merrill Lynch & Co., Inc. 1,911,000 100,328
Morgan Stanley Group, Inc. 373,900 30,286
Quick & Reilly Group, Inc. (The) 400,000 14,500
Schwab (Charles) Corp. 1,019,000 44,198
289,623
TOTAL FINANCE 1,823,865
HEALTH - 3.3%
DRUGS & PHARMACEUTICALS - 0.9%
Allergan, Inc. 378,100 10,256
Amgen, Inc. (a) 405,000 32,577
Bio-Rad Laboratories, Inc. Class A (a) 307,100 11,056
Circa Pharmaceuticals, Inc. (a) 896,400 28,573
Copley Pharmaceutical, Inc. 32,800 689
Diagnostic Products Corp. 196,100 7,158
Natures Sunshine Products, Inc. 10,000 158
North American Biologicals, Inc. (a)(b) 1,295,000 12,141
102,608
MEDICAL EQUIPMENT & SUPPLIES - 1.8%
Baxter International, Inc. 1,550,000 56,381
Becton Dickinson & Co. 325,000 18,931
Benson Eyecare Corp. (a) 972,000 9,842
Cardinal Health, Inc. 500,000 23,625
Coherent, Inc. (a) 197,300 5,796
Haemonetics Corp. (a) 342,100 6,585
Medtronic, Inc. 500,000 38,563
Nellcor, Inc. (a) 459,000 20,655
Puritan-Bennett Corp. (b) 704,500 27,211
Zoll Medical Corp. (a) 150,000 1,875
209,464
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
HEALTH - CONTINUED
MEDICAL FACILITIES MANAGEMENT - 0.6%
Columbia/HCA Healthcare Corp. 690,000 $ 29,843
Health Management Associates, Inc. Class A (a) 650,000 18,987
HEALTHSOUTH Rehabilitation Corp. (a) 1,250,000 21,719
70,549
TOTAL HEALTH 382,621
HOLDING COMPANIES - 0.1%
Lonrho Ltd. Ord. 3,949,900 9,321
INDUSTRIAL MACHINERY & EQUIPMENT - 5.8%
ELECTRICAL EQUIPMENT - 1.7%
Adflex Solutions (a) 340,000 8,330
American Power Conversion Corp. 50,000 1,144
AMETEK, Inc. 617,000 11,106
Avid Technology, Inc. (a)(b) 1,187,500 44,531
BMC Industries, Inc. 234,200 5,884
Computer Products, Inc. (a) 1,111,200 6,945
General Signal Corp. 119,100 4,734
Philips Electronics NV 2,510,000 107,303
United Engineers BHD 1,000,000 6,358
196,335
INDUSTRIAL MACHINERY & EQUIPMENT - 2.9%
AGCO Corp. 442,050 16,577
Case Corp. 1,106,200 32,909
Caterpillar, Inc. 1,261,100 81,026
Cincinnati Milacron, Inc. 462,200 12,479
Deere & Co. 1,045,300 89,504
Dover Corp. 15,200 1,106
Gleason Corp. (b) 438,000 9,691
Harnischfeger Industries, Inc. 875,200 30,304
Ingersoll-Rand Co. 839,300 32,103
Parker-Hannifin Corp. 891,600 32,321
338,020
POLLUTION CONTROL - 1.2%
Browning-Ferris Industries, Inc. 1,050,000 37,931
Continental Waste Industries, Inc. (a) 288,400 3,317
Republic Waste Industries, Inc. 85,000 1,105
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
POLLUTION CONTROL - CONTINUED
Sanifill, Inc. (a) 850,000 $ 26,669
Sevenson Environmental Services, Inc. (b) 427,000 7,793
United Waste Systems, Inc. (a)(b) 1,040,000 37,440
Western Waste Industries, Inc. (a)(b) 1,326,400 26,694
140,949
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 675,304
MEDIA & LEISURE - 4.0%
BROADCASTING - 1.9%
American Radio Systems Corp. Class A (a) 127,500 2,901
British Sky Broadcasting Group ADR (a) 530,200 13,851
Capital Cities/ABC, Inc. 560,000 58,730
Citicasters, Inc. (a) 460,650 12,668
Clear Channel Communications, Inc. (a) 233,800 15,051
EZ Communications, Inc. (a)(b) 652,200 12,066
Emmis Broadcasting Corp. Class A (a)(b) 687,000 18,721
Heritage Media Corp. Class A (a)(b) 964,500 27,850
Jacor Communications, Inc. Class A 62,900 1,006
Renaissance Communications Corp. (a) 310,600 10,405
Saga Communications, Inc. Class A (a)(b) 257,300 5,242
Sinclair Broadcast Group, Inc. Class A (a)(b) 313,900 8,789
Viacom, Inc. (a):
Class A 452,100 21,023
Class B (non-vtg.) 400,300 18,564
226,867
ENTERTAINMENT - 0.3%
Disney (Walt) Co. 275,000 15,297
Players International, Inc. (a) 911,150 18,223
33,520
LEISURE DURABLES & TOYS - 0.1%
Champion Enterprises, Inc. (a)(b) 920,500 14,613
LODGING & GAMING - 0.4%
Circus Circus Enterprises, Inc. (a) 700,000 24,675
Grand Palais Enterprises, Inc. (a)(b)(c) 398,400 3,400
Hemmeter Enterprises, Inc. (warrants) (a) 398,400 -
Hospitality Franchise Systems, Inc. 135,500 4,692
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
MEDIA & LEISURE - CONTINUED
LODGING & GAMING - CONTINUED
La Quinta Motor Inns, Inc. 507,100 $ 13,692
Primadonna Resorts, Inc. (a) 222,700 5,345
51,804
PUBLISHING - 0.6%
Belo (A.H.) Corp. Class A 385,000 11,791
Harcourt General, Inc. 139,200 5,916
Meredith Corp. 850,000 21,569
News Corp. Ltd. ADR 1,150,000 26,019
Scholastic Corp. (a) 110,000 5,968
71,263
RESTAURANTS - 0.7%
Apple South, Inc. 267,300 5,212
Applebee's International, Inc. 351,400 9,049
Consolidated Products, Inc. (a) 276,076 3,589
Dave & Busters Inc. 15,000 291
Lone Star Steakhouse Saloon (a) 1,000,000 30,313
Longhorn Steaks, Inc. (a) 203,800 2,904
Outback Steakhouse, Inc. (a) 663,900 19,170
Quantum Restaurant Group, Inc. (a) 228,900 2,604
Starbucks Corp. (a) 165,000 5,878
79,010
TOTAL MEDIA & LEISURE 477,077
NONDURABLES - 1.5%
FOODS - 0.0%
Ralston Purina Co. 20,000 1,020
TOBACCO - 1.5%
Dimon, Inc. 914,400 15,431
Mafco Consolidated Group, Inc. 5,000 106
Philip Morris Companies, Inc. 2,145,000 159,534
175,071
TOTAL NONDURABLES 176,091
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
PRECIOUS METALS - 0.8%
Agnico Eagle Mines Ltd. 227,300 $ 3,043
Barrick Gold Corp. 1,300,000 32,914
Euro-Nevada Mining Corp. 370,400 11,335
Kinross Gold Corp. (a) 3,300,000 24,645
Newmont Mining Corp. 450,000 18,844
90,781
RETAIL & WHOLESALE - 3.5%
APPAREL STORES - 0.7%
AnnTaylor Stores Corp. (a) 1,060,000 24,645
Cato Corp. Class A (b) 2,196,900 17,850
Charming Shoppes, Inc. 317,700 1,668
Goody's Family Clothing (b) 1,145,300 12,598
Next PLC 2,835,000 15,437
Talbots, Inc. 167,500 6,658
78,856
DRUG STORES - 0.4%
General Nutrition Companies, Inc. (a) 81,700 2,870
Revco (D.S.), Inc. (a) 1,935,900 46,462
49,332
GENERAL MERCHANDISE STORES - 0.2%
Price/Costco, Inc. 48,000 780
Stein Mart, Inc. (a) 477,000 6,440
Woolworth Corp. 1,550,000 23,444
30,664
GROCERY STORES - 1.3%
Loblaw Companies Ltd. 643,300 13,007
Provigo, Inc. 616,200 3,648
Richfood Holdings, Inc. Class A (b) 1,721,800 38,095
Rykoff-Sexton, Inc. (b) 1,015,375 17,896
Safeway, Inc. (a) 800,000 29,900
Stop & Shop Companies, Inc. (a) 1,739,300 44,570
Vons Companies, Inc. (a) 238,200 4,794
151,910
RETAIL & WHOLESALE, MISCELLANEOUS - 0.9%
Circuit City Stores, Inc. 570,900 18,055
Fabri-Centers of America, Inc. (a) 210,200 4,362
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
RETAIL & WHOLESALE - CONTINUED
RETAIL & WHOLESALE, MISCELLANEOUS - CONTINUED
Global Directmail Corp. 166,800 $ 3,294
Office Depot, Inc. (a) 200,000 5,625
Officemax, Inc. (a) 685,000 19,094
Staples, Inc. (a) 770,200 22,240
Sunglass Hut International, Inc. (a) 452,100 15,824
Williams-Sonoma, Inc. (a) 739,000 16,258
104,752
TOTAL RETAIL & WHOLESALE 415,514
SERVICES - 1.5%
PRINTING - 0.2%
ASM Lithography Holding NV (a) 266,400 9,557
Devon Group, Inc. (a) 286,350 8,447
Moore Corporation Ltd. 194,100 4,260
22,264
SERVICES - 1.3%
Block (H & R), Inc. 752,500 30,947
CDI Corp. (a) 377,600 7,741
Comdata Holdings Corp. (a) 200,000 3,034
Craig (Jenny), Inc. (a) 174,700 1,441
First Financial Management Corp. 215,000 18,383
Kelly Services, Inc. Class A 79,400 2,045
Medaphis Corp. (a)(b) 2,480,600 53,953
Robert Half International, Inc. (a) 1,064,200 27,270
Zebra Technologies Corp. Class A (a) 186,300 9,920
154,734
TOTAL SERVICES 176,998
TECHNOLOGY - 39.1%
COMMUNICATIONS EQUIPMENT - 5.5%
ADC Telecommunications, Inc. (a) 935,000 33,426
Andrew Corp. (a) 216,600 12,536
Apertus Technologies, Inc. (a)(b) 782,900 6,850
Aspect Telecommunications Corp. (a) 341,300 15,273
Cisco Systems, Inc. (a) 1,530,000 77,361
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
COMMUNICATIONS EQUIPMENT - CONTINUED
DSC Communications Corp. (a) 866,000 $ 40,269
Dynatech Corp. (a) 764,300 14,331
Ericsson (L.M.) Telephone Co. Class B ADR 1,405,000 28,100
General Instrument Corp. (a) 900,000 34,538
Global Village Communication (a) 618,300 9,661
ITI Technologies (a)(b) 435,000 10,331
Inter-Tel, Inc. (a) 355,600 5,378
Microcom, Inc. (a)(b) 1,206,800 18,102
Microdyne Corp. (a) 236,900 4,590
Nokia Corp. AB:
sponsored ADR 1,170,000 69,761
Series A 850,000 49,818
Series K 825,000 48,353
Northern Telecom Ltd. 450,400 16,326
Octel Communications Corp. (a) 215,800 6,312
Perceptron, Inc. (a)(b) 391,100 8,311
Tellabs, Inc. (a) 1,074,700 51,720
3Com Corp. (a) 950,000 63,650
U.S. Robotics Corp. 175,000 19,075
644,072
COMPUTER SERVICES & SOFTWARE - 6.1%
Acxiom Corp. (a) 438,500 10,469
America Online, Inc. (a) 675,500 29,722
American Management Systems, Inc. (a) 761,700 19,138
Ascend Communications, Inc. (a) 672,500 33,961
Broderbund Software, Inc. (a) 500,000 31,875
CACI International, Inc. Class A (a)(b) 668,300 8,187
CUC International, Inc. (a) 298,950 8,371
Cambridge Technology Partners Mass., Inc. (a) 79,800 2,633
Ceridian Corp. (a) 664,400 24,500
Cerner Corp. (a) 87,500 5,359
Computer Sciences Corp. 20,000 1,138
CyCare Systems, Inc. (a)(b) 481,200 13,113
HBO & Co. 55,900 3,047
Health Management Systems, Inc. (a) 194,250 5,682
Henry (Jack) & Associates, Inc. 10,000 146
Informix Corp. (a) 355,100 9,011
Intersolv, Inc. (a)(b) 792,900 18,435
Manugistics Group, Inc. 10,000 141
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
COMPUTER SERVICES & SOFTWARE - CONTINUED
Maxis, Inc. (a) 120,300 $ 3,203
Mentor Graphics Corp. (a) 712,000 12,282
Mercury Interactive Group Corp. (a) 540,300 10,874
Microsoft Corp. (a) 1,850,000 167,194
Novell, Inc. (a) 44,700 891
Oracle Systems Corp. (a) 1,824,900 70,487
Parametric Technology Corp. (a) 707,600 35,203
Primark Corp. (a) 148,500 2,692
Reuters Holdings PLC ADR Class B 725,000 36,341
SEI Corp. 37,600 846
SPSS, Inc. (a)(b) 365,900 5,397
7TH Level Inc. 82,700 1,171
Shared Medical Systems Corp. (b) 1,277,600 51,264
Sierra On-Line, Inc. (a) 226,000 5,650
Softkey International, Inc. (a) 30,000 956
Spectrum Holobyte, Inc. (a) 535,400 7,663
State of The Art, Inc. (a) 495,400 4,892
Stratacom, Inc. (a) 608,600 29,669
Symantec Corp. (a) 1,425,000 41,147
712,750
COMPUTERS & OFFICE EQUIPMENT - 10.9%
ADAPTEC, Inc. (a) 732,000 27,084
Amdahl Corp. (a) 224,300 2,495
Apple Computer, Inc. 1,000,000 46,438
Boca Research, Inc. 95,000 2,365
Comdisco, Inc. 264,300 8,028
Compaq Computer Corp. (a) 1,752,500 79,520
Conner Peripherals, Inc. (a) 2,000,000 24,750
Dell Computer Corp. (a) 350,000 21,044
Diebold, Inc. 323,900 14,090
Digital Equipment Corp. (a) 1,859,300 75,766
Discreet Logic 12,200 256
Filenet Corp. (a)(b) 803,700 32,449
Gateway 2000, Inc. 375,000 8,531
General Motors Corp. Class E 900,000 39,150
Hewlett-Packard Co. 1,750,000 130,375
In Focus Systems, Inc. (a)(b) 1,053,600 28,447
International Business Machines Corp. 3,800,000 364,800
Komag, Inc. (a) 527,000 27,404
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
COMPUTERS & OFFICE EQUIPMENT - CONTINUED
Kronos, Inc. (a)(b) 498,400 $ 18,503
PSC, Inc. (a)(b) 654,600 9,328
Quantum Corp. (a) 387,600 8,866
SCI Systems, Inc. (a) 286,800 7,170
Seagate Technology (a) 1,136,400 44,604
Silicon Graphics, Inc. (a) 2,250,000 89,719
Sun Microsystems, Inc. (a) 1,904,600 92,373
Symbol Technologies, Inc. (a) 760,400 29,180
Western Digital Corp. (a) 1,178,500 20,476
Xerox Corp. 177,000 20,753
1,273,964
ELECTRONIC INSTRUMENTS - 3.2%
Applied Materials, Inc. (a) 700,000 60,638
Credence Systems Corp. (a) 565,000 17,091
Fluke (John) Mfg. Co., Inc. 231,000 9,702
KLA Instruments Corp. (a) 600,000 46,350
Lam Research Corp. (a) 328,900 21,050
Measurex Corp. 113,300 3,441
Novellus System, Inc. (a) 246,000 16,667
Silicon Valley Group, Inc. (a) 1,100,000 39,875
Tektronix, Inc. 549,800 27,078
Teradyne, Inc. (a) 844,200 55,190
Varian Associates, Inc. 1,420,000 78,455
375,537
ELECTRONICS - 13.0%
Actel Corp. (a)(b) 1,374,000 17,862
Altera Corp. (a) 887,400 38,380
Altron Inc. (a) 333,000 7,992
AMP, Inc. 1,600,000 67,600
Analog Devices, Inc. (a) 1,430,000 48,620
Arrow Electronics, Inc. (a) 1,162,700 57,844
Atmel Corp. (a) 880,000 48,730
Avnet, Inc. 851,100 41,172
C-Cube Microsystems, Inc. (a) 395,200 10,769
Cascade Communications Corp. (a) 495,600 21,435
Chips & Technologies, Inc. (a)(b) 1,682,900 22,088
Cirrus Logic, Inc. (a) 90,000 5,642
Cypress Semiconductor Corp. (a) 87,500 3,544
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
ELECTRONICS - CONTINUED
Dovatron International, Inc. (a) 190,200 $ 4,660
Integrated Device Technology, Inc. (a) 1,157,400 53,530
Intel Corp. 3,495,000 221,277
International Rectifier Corp. (a) 990,000 32,175
Kemet Corp. (a) 603,500 31,684
Kent Electronics Corp. (a) 43,800 1,659
LSI Logic Corp. (a) 3,250,000 127,156
Lattice Semiconductor Corp. (a) 216,900 7,456
Linear Technology Corp. 902,400 59,558
Maxim Integrated Products, Inc. (a) 769,900 39,265
Microchip Technology, Inc. (a) 396,000 14,405
Micron Technology, Inc. 2,000,000 109,750
National Semiconductor Corp. (a) 2,642,000 73,316
Opti, Inc. (a) 457,700 10,413
Rexel, Inc. (a) 234,000 2,223
SGS-Thomson Microelectronic NV (a) 1,175,000 47,734
S-3, Inc. (a) 1,000,000 36,000
Samsung Electronics (d) 125,000 12,000
Tencor Instruments (a) 195,000 7,995
Texas Instruments, Inc. 718,400 96,176
Thomas & Betts Corp. 400,000 27,350
Vishay Intertechnology, Inc. 660,000 23,843
Wyle Laboratories 278,000 7,819
Xilinx, Inc. (a) 865,000 81,310
1,520,432
PHOTOGRAPHIC EQUIPMENT - 0.4%
Eastman Kodak Co. 900,000 54,563
TOTAL TECHNOLOGY 4,581,318
TRANSPORTATION - 4.0%
AIR TRANSPORTATION - 2.1%
AMR Corp. (a) 840,900 62,752
Alaska Air Group, Inc. 85,000 1,562
Atlantic Southeast Airlines, Inc. 883,200 26,606
Comair Holdings, Inc. 847,200 32,088
Delta Air Lines, Inc. 570,000 42,038
KLM Royal Dutch Airlines 74,600 2,434
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TRANSPORTATION - CONTINUED
AIR TRANSPORTATION - CONTINUED
KLM Royal Dutch Airlines Ord. 337,300 $ 10,962
Mesa Airlines, Inc. 1,200 11
Northwest Airlines Corp. Class A (a) 488,900 17,295
Southwest Airlines Co. 1,179,200 28,153
ValuJet Airlines (a) 555,000 18,246
242,147
RAILROADS - 1.9%
Bombardier, Inc. Class B 1,150,000 27,964
Burlington Northern, Inc. 986,500 62,519
CSX Corp. 1,030,000 77,379
Santa Fe Pacific Corp. 387,400 9,879
Southern Pacific Rail Corp. (a) 850,000 13,388
Wisconsin Central Transportation Corp. (a) 650,000 31,850
222,979
TOTAL TRANSPORTATION 465,126
UTILITIES - 1.3%
CELLULAR - 1.0%
AirTouch Communications, Inc. (a) 2,250,000 64,125
Arch Communications Group, Inc. (a) 50,000 1,106
Commnet Cellular, Inc. (a) 215,000 6,020
Mobile Telecommunications Technologies, Inc. 349,200 9,559
Palmer Wireless, Inc. 18,200 298
Vanguard Cellular Systems, Inc. Class A (a) 492,600 11,822
Vodafone Group PLC sponsored ADR 650,000 24,619
117,549
TELEPHONE SERVICES - 0.3%
LCI International, Inc. (a) 68,600 2,101
WorldCom, Inc. (a) 1,050,000 28,350
30,451
TOTAL UTILITIES 148,000
TOTAL COMMON STOCKS
(Cost $9,209,908) 11,283,893
PREFERRED STOCKS - 0.2%
SHARES VALUE (NOTE 1)
(000S)
NONCONVERTIBLE PREFERRED STOCKS - 0.2%
TECHNOLOGY - 0.2%
COMPUTER SERVICES & SOFTWARE - 0.2%
SAP AG 19,500 $ 24,596
TOTAL PREFERRED STOCKS
(Cost $15,842) 24,596
CORPORATE BONDS - 0.3%
MOODY'S PRINCIPAL
RATINGS (E) AMOUNT (000S)
CONVERTIBLE BONDS - 0.2%
RETAIL & WHOLESALE - 0.1%
RETAIL & WHOLESALE, MISCELLANEOUS - 0.1%
Fabri-Centers of America, Inc. 6 1/4%, 3/1/02 B2 $ 18,150 15,337
TECHNOLOGY - 0.1%
COMMUNICATIONS EQUIPMENT - 0.1%
General Instrument Corp. 5%, 6/15/00 B1 5,195 8,546
TOTAL CONVERTIBLE BONDS 23,883
NONCONVERTIBLE BONDS - 0.1%
RETAIL & WHOLESALE - 0.1%
GROCERY STORES - 0.1%
Rykoff-Sexton, Inc. 8 7/8%, 11/1/03 Ba3 12,000 11,940
TOTAL CORPORATE BONDS
(Cost $33,754) 35,823
REPURCHASE AGREEMENTS - 3.1%
MATURITY VALUE (NOTE 1)
AMOUNT (000S)
(000S)
Investments in repurchase agreements
(U.S. Treasury obligations), in a
joint trading account at 6.15%,
dated 6/30/95 due 7/3/95 $ 367,836 $ 367,648
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $9,627,152) $ 11,711,960
FORWARD FOREIGN CURRENCY CONTRACTS
AMOUNTS IN THOUSANDS SETTLEMENT UNREALIZED
DATE(S) VALUE GAIN/(LOSS)
CONTRACTS TO BUY
22,440 CAD 7/18/95 $ 16,342 $ (158)(Payable amount $16,500)
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 0.1%
CONTRACTS TO SELL
305,955 CAD 7/18/95 to 8/17/95 $ 222,728 $ 290
232,089 FIM 8/2/95 54,408 200
TOTAL CONTRACTS TO SELL
(Receivable amount $277,626) $ 277,136 490
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 2.4%
$ 332
CURRENCY ABBREVIATIONS
CAD - Canadian dollar
FIM - Finnish markka
LEGEND
1. Non-income producing
2. Affiliated company (see Note 8 of Notes to Financial Statements).
3. Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
Grand Palais
Enterprises, Inc. 6/11/93 $ 6,598,000
4. Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $12,000,000 or 0.1% of net
assets.
5. Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
INCOME TAX INFORMATION
At June 30, 1995, the aggregate cost of investment securities for income
tax purposes was $9,643,879,000. Net unrealized appreciation aggregated
$2,068,081,000, of which $2,199,137,000 related to appreciated investment
securities and $131,056,000 related to depreciated investment securities.
At December 31, 1994, the fund had a capital loss carryforward of
approximately $148,184,000 which will expire on December 31, 2002.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER SHARE AMOUNTS) JUNE 30, 1995 (UNAUDITED)
ASSETS
Investment in securities, at value (including repurchase $ 11,711,960
agreements of $367,648) (cost $9,627,152) -
See accompanying schedule
Receivable for investments sold 232,307
Unrealized appreciation on foreign currency contracts 1,183
Receivable for fund shares sold 29,452
Dividends receivable 11,011
Interest receivable 618
Other receivables 453
TOTAL ASSETS 11,986,984
LIABILITIES
Payable for investments purchased $ 256,842
Unrealized depreciation on foreign currency contracts 851
Payable for fund shares redeemed 16,867
Accrued management fee 6,703
Other payables and accrued expenses 2,583
Payable for collateral on closed security loans 27,046
Collateral on open security loans, at value 105,552
TOTAL LIABILITIES 416,444
NET ASSETS $ 11,570,540
Net Assets consist of:
Paid in capital $ 9,420,380
Undistributed net investment income 21,049
Accumulated undistributed net realized gain (loss) on 43,904
investments and foreign currency transactions
Net unrealized appreciation (depreciation) on 2,085,207
investments and assets and liabilities in foreign
currencies
NET ASSETS, for 316,495 shares outstanding $ 11,570,540
NET ASSET VALUE and redemption price per share $36.56
($11,570,540 (divided by) 316,495 shares)
Maximum offering price per share (100/97.00 of $36.56) $37.69
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)
INVESTMENT INCOME $ 49,045
Dividends (including $1,386 received from affiliated
issuers)
Interest (including income on securities loaned of 20,953
$1,927)
TOTAL INCOME 69,998
EXPENSES
Management fee $ 30,243
Basic fee
Performance adjustment 4,242
Transfer agent fees 12,472
Accounting and security lending fees 451
Non-interested trustees' compensation 46
Custodian fees and expenses 621
Registration fees 563
Audit 28
Legal 17
Interest 27
Miscellaneous 75
Total expenses before reductions 48,785
Expense reductions (1,153) 47,632
NET INVESTMENT INCOME 22,366
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investment securities (including realized loss of $621 271,041
on sales of investment in affiliated issuers)
Foreign currency transactions (17,847) 253,194
Change in net unrealized appreciation (depreciation) on:
Investment securities 1,640,587
Assets and liabilities in foreign currencies 339 1,640,926
NET GAIN (LOSS) 1,894,120
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 1,916,486
FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31,
1995 1994
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS
Operations $ 22,366 $ 46,141
Net investment income
Net realized gain (loss) 253,194 (223,809)
Change in net unrealized appreciation (depreciation) 1,640,926 72,425
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 1,916,486 (105,243)
FROM OPERATIONS
Distributions to shareholders from net realized gain - (46,899)
Share transactions 2,191,643 4,739,576
Net proceeds from sales of shares
Reinvestment of distributions - 45,585
Cost of shares redeemed (1,231,771) (2,146,397)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 959,872 2,638,764
FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 2,876,358 2,486,622
NET ASSETS
Beginning of period 8,694,182 6,207,560
End of period (including undistributed net investment $ 11,570,540 $ 8,694,182
income of $21,049 and $16,028, respectively)
OTHER INFORMATION
Shares
Sold 67,424 154,793
Issued in reinvestment of distributions - 1,465
Redeemed (38,037) (70,436)
Net increase (decrease) 29,387 85,822
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED DECEMBER 31,
ENDED JUNE 30,
1995
(UNAUDITED) 1994 1993 F 1992 D 1991 1990
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
Net asset value, $ 30.28 $ 30.84 $ 27.47 $ 25.60 $ 17.35 $ 16.78
beginning of period
Income from
Investment
Operations
Net investment .01 .06 .14 .32 E .22 .51
income
Net realized and 6.27 (.40) 5.66 3.67 9.20 .15
unrealized gain
(loss)
Total from investment 6.28 (.34) 5.80 3.99 9.42 .66
operations
Less Distributions - - (.11) (.20) (.11) (.09)
From net investment
income
In excess of net - - (.07) - - -
investment income
From net realized - (.22) (2.25) (1.92) (1.06) -
gain
Total distributions - (.22) (2.43) (2.12) (1.17) (.09)
Net asset value, end of $ 36.56 $ 30.28 $ 30.84 $ 27.47 $ 25.60 $ 17.35
period
TOTAL RETURN B,C 20.74% (1.12) 21.43% 15.89% 54.92% 3.94%
%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of $ 11,571 $ 8,694 $ 6,208 $ 1,986 $ 1,000 $ 332
period (in millions)
Ratio of expenses to .97% 1.00% 1.06% .87% .89% 1.06%
average net assets A
Ratio of expenses to .99% 1.03% 1.08% .87% .89% 1.06%
average net assets A
before expense
reductions
Ratio of net investment .46% .59% .46% 1.19% 1.01% 3.02%
income to average A
net assets
Portfolio turnover rate 210% 235% 255% 297% 217% 320%
A
</TABLE>
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 7 OF NOTES TO FINANCIAL
STATEMENTS).
C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D AS OF JANUARY 1, 1992 THE FUND DISCONTINUED THE USE OF EQUALIZATION
ACCOUNTING.
E NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
F EFFECTIVE JANUARY 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2,
"DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME,
CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES."
AS A RESULT, NET INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
NOTES TO FINANCIAL STATEMENTS
For the period ended June 30, 1995 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Contrafund (the fund) is registered under the Investment Company
Act of 1940, as amended (the 1940 Act), as an open-end management
investment company organized as a Massachusetts business trust and is
authorized to issue an unlimited number of shares. The following summarizes
the significant accounting policies of the fund:
SECURITY VALUATION. Securities for which exchange quotations are readily
available are valued at the last sale price, or if no sale price, at the
closing bid price. Securities (including restricted securities) for which
exchange quotations are not readily available (and in certain cases debt
securities which trade on an exchange), are valued primarily using
dealer-supplied valuations or at their fair value as determined in good
faith under consistently applied procedures under the general supervision
of the Board of Trustees. Short-term securities maturing within sixty days
of their purchase date are valued at amortized cost or original cost plus
accrued interest, both of which approximate current value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases and
sales of securities, income receipts, and expense payments are translated
into U.S. dollars at the prevailing exchange rate on the respective dates
of the transactions.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from sales and maturities of forward currency
contracts , disposition of foreign currencies, currency gains and losses
realized between the trade and settlement dates on securities transactions,
and the difference between the amount of net investment income accrued and
the U.S. dollar amount actually received. The effects of changes in foreign
currency exchange rates on investments in securities are included with the
net realized and unrealized gain or loss on investment securities.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes substantially all of its taxable income for
its fiscal year. The schedule of investments includes information regarding
income taxes under the caption "Income Tax Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the fund is informed of the
ex-dividend date. Interest income is accrued as earned. Investment income
is recorded net of foreign taxes withheld where recovery of such taxes is
uncertain.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
These differences, which may result in distribution reclassifications, are
primarily due to differing treatments for foreign currency transactions,
passive foreign investment companies (PFIC), market discount, partnerships,
non-taxable dividends, and losses deferred due to wash sales. The fund also
utilized earnings and profits distributed to shareholders on redemption of
shares as a part of the dividends paid deduction for income tax purposes.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect the per-share allocation between net investment income and realized
and unrealized gain (loss). Undistributed net investment income (loss) and
accumulated undistributed net realized gain (loss) on investments and
foreign currency transactions may include temporary book and tax basis
differences which will reverse in a subsequent period. Any taxable income
or gain remaining at fiscal year end is distributed in the following year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The fund may use foreign currency
contracts to facilitate transactions in foreign securities and to manage
the fund's currency exposure. Contracts to buy generally are used to
acquire exposure to foreign currencies, while contracts to sell are used to
hedge the fund's investments against currency fluctuations. Also, a
contract to buy or sell can offset a previous contract. These contracts
involve market risk in excess of the unrealized gain or loss reflected in
the fund's Statement of Assets and Liabilities. The U.S. dollar value of
the currencies the fund has committed to buy or sell is shown in the
schedule of investments under the caption "Forward Foreign Currency
Contracts." This amount represents the aggregate exposure to each currency
the fund has acquired or hedged through currency contracts at period end.
Losses may arise from changes in the value of the foreign currency or if
the counterparties do not perform under the contracts' terms.
The U.S. dollar value of forward foreign currency contracts is determined
using forward currency exchange rates supplied by a quotation service.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and any realized gain (loss) is
recognized on the date of offset; otherwise, gain (loss) is recognized on
settlement date. Contracts that have been offset with different
counterparties are reflected as both a contract to buy and a contract to
sell in the schedule of investments under the caption "Forward Foreign
Currency Contracts."
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund,
2. OPERATING POLICIES - CONTINUED
JOINT TRADING ACCOUNT - CONTINUED
along with other affiliated entities of Fidelity Management & Research
Company (FMR), may transfer uninvested cash balances into one or more joint
trading accounts. These balances are invested in one or more repurchase
agreements that mature in 60 days or less from the date of purchase, and
are collateralized by U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. FMR, the fund's
investment adviser, is responsible for determining that the value of these
underlying securities remains at least equal to the resale price.
RESTRICTED SECURITIES. The fund is permitted to invest in privately placed
restricted securities. These securities may be resold in transactions
exempt from registration or to the public if the securities are registered.
Disposal of these securities may involve time-consuming negotiations and
expense, and prompt sale at an acceptable price may be difficult. At the
end of the period, restricted securities (excluding 144A issues) amounted
to $3,400,000 or 0% of net assets.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $11,850,168,000 and $9,811,374,000, respectively, of which U.S.
government and government agency obligations aggregated $562,681,000 and
$570,243,000, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
basic fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of the fund. The
group fee rate is the weighted average of a series of rates and is based on
the monthly average net assets of all the mutual funds advised by FMR. The
rates ranged from .2700% to .5200% for the period. In the event that these
rates were lower than the contractual rates in effect during the period,
FMR voluntarily implemented the above rates, as they resulted in the same
or a lower management fee. The annual individual fund fee rate is .30%. The
basic fee is subject to a performance adjustment (up to a maximum of
(plus/minus) .20%) based on the fund's investment performance as compared
to the appropriate index over a specified period of time. For the period,
the management fee was equivalent to an annualized rate of .70% of average
net assets after the performance adjustment.
SALES LOAD. For the period, Fidelity Distributors Corporation (FDC), an
affiliate of FMR and the general distributor of the fund, received sales
charges of $3,910,000 on sales of shares of the fund.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT FEES. Fidelity Service Co. (FSC), an affiliate of FMR, is
the fund's transfer, dividend disbursing and shareholder servicing agent.
Effective January 1, 1995, the Board of Trustees approved a revised
transfer agent contract pursuant to which FSC receives account fees and
asset-based fees that vary according to account size and type of account.
Under the prior transfer agent contract, FSC received fees based on the
type, size, number of accounts and the number of transactions made by
shareholders. FSC pays for typesetting, printing and mailing of all
shareholder reports, except proxy statements.
ACCOUNTING AND SECURITY LENDING FEES. FSC maintains the fund's accounting
records and administers the security lending program. The security lending
fee is based on the number and duration of lending transactions. The
accounting fee is based on the level of average net assets for the month
plus out-of-pocket expenses.
BROKERAGE COMMISSIONS. The fund placed a portion of its portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms were $5,400,000 for the period.
5. SECURITY LENDING.
The fund loaned securities to certain brokers who paid the fund negotiated
lenders' fees. These fees are included in interest income. The fund
receives U.S. Treasury obligations and/or cash as collateral against the
loaned securities, in an amount at least equal to 102% of the market value
of the loaned securities at the inception of each loan. This collateral
must be maintained at not less than 100% of the market value of the loaned
securities during the period of the loan. At period end, the value of the
securities loaned and the value of collateral amounted to $102,147,000 and
$105,552,000, respectively.
6. BANK BORROWINGS.
The fund is permitted to have bank borrowings for temporary or emergency
purposes to fund shareholder redemptions. The fund has established
borrowing arrangements with certain banks. Under the most restrictive
arrangement, the fund must pledge to the bank securities having a market
value in excess of 220% of the total bank borrowings. The interest rate on
the borrowings is the bank's base rate, as revised from time to time. The
maximum loan and the average daily loan balances during the periods for
which loans were outstanding amounted to $51,030,000. The weighted average
interest rate was 6.4375%.
7. EXPENSE REDUCTIONS.
FMR has directed certain portfolio trades to brokers who paid a portion of
the fund's expenses. For the period, the fund's expenses were reduced by
$1,153,000 under this arrangement.
8. TRANSACTIONS WITH AFFILIATED COMPANIES.
An affiliated company is a company in which the fund has ownership of at
least 5% of the voting securities. Transactions during the period with
companies which are or were affiliates are as follows:
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES
DOLLAR AMOUNTS IN THOUSANDS PURCHASE SALES DIVIDEND MARKET
AFFILIATES COST COST INCOME VALUE
Actel Corp. (a) $ 16,785 $ - $ - $ 17,862
Active Voice Corp. 1,464 2,690 - -
Apertus Technologies, Inc. (a) 6,137 5,087 - 6,850
Avid Technology, Inc. (a) 12,476 4,002 - 44,531
Bio-Rad Laboratories, Inc. Class A (a) 680 1,936 - -
CACI International, Inc. Class A (a) 1,081 - - 8,187
Cambrex Corp. 1,548 - 46 16,409
Camco International, Inc. 15,372 - 185 56,801
Cato Corp. Class A 8,125 - - 17,850
Champion Enterprises, Inc. (a) 4,076 7,831 - 14,613
Chaus (Bernard), Inc. (a) 359 - - 6,563
Chesapeake Energy Corp. (a) - - - 15,391
Chips & Technologies, Inc. (a) 8,237 - - 22,088
Conmed Corp. (a) - - - -
Credence Systems Corp. (a) 594 2,316 - -
CyCare Systems, Inc. (a) 5,735 - - 13,113
Cyrk, Inc. (a) 1,682 17,752 - -
Electronics for Imaging, Inc. 2,641 9,145 - -
Emmis Broadcasting Corp. Class A (a) 7,989 - - 18,721
EZ Communications, Inc. (a) 1,037 1,016 - 12,066
Filenet Corp. (a) 8,798 - - 32,449
Gleason Corp. - - - 9,691
Goody's Family Clothing 2,394 - - 12,598
Grand Palais Enterprises, Inc. (a) - - - 3,400
Ground Round Restaurants, Inc. (a) - 3,935 - -
Heritage Media Corp. Class A (a) 1,842 9,640 - 27,850
Hologic, Inc. (a) - 118 - -
Imo Industries, Inc. (a) - 5,014 - -
In Focus Systems, Inc. (a) 23,310 712 - 28,447
Inter-Tel, Inc. (a) - 914 - -
Intersolv, Inc. (a) 206 - - 18,435
ITI Technologies (a) 1,086 - - 10,331
Kronos, Inc. (a) 5,172 - - 18,503
Long Island Bancorp, Inc. - - - 25,395
Medaphis Corp. (a) 16,178 15,282 - 53,953
Microcom, Inc (a) 7,574 - - 18,102
Network Peripherals, Inc. (a) - 6,620 - -
North American Biologicals, Inc. (a) 2,003 1,835 - 12,141
Perceptron, Inc. (a) 3,677 1,126 - 8,311
Proxima Corp. (a) 118 7,291 - -
PSC, Inc. (a) 522 - - 9,328
Puritan-Bennett Corp. 935 - - 27,211
Quorum Health Group, Inc. (a) - - - -
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES - CONTINUED
DOLLAR AMOUNTS IN THOUSANDS PURCHASE SALES DIVIDEND MARKET
AFFILIATES COST COST INCOME VALUE
Richfood Holdings, Inc. Class A $ 7,706 $ 1,034 $ 81 $ 38,095
Rykoff-Sexton, Inc. 3,552 - - 17,896
Safeskin Corp. (a) - 2,068 - -
Saga Communications, Inc. Class A (a) - 3,051 - 5,242
Sanifill, Inc. (a) 3,314 5,995 - -
Sevenson Environmental Services, Inc. - - 47 7,793
Shared Medical Systems Corp. 1,390 - 268 51,264
Silicon Valley Group, Inc. (a) 3,388 8,820 - -
Sinclair Broadcast Group, Inc.
Class A (a) 14 - - 8,789
Smith International, Inc. (a) 11,927 905 - 52,763
Special Devices, Inc. (a) 1,281 - - 14,289
SPSS, Inc. (a) 2,514 4,813 - 5,397
State of The Art, Inc. (a) 713 2,132 - -
Sturm Ruger & Co., Inc. 806 10,176 613 -
Tech-Sym Corp. (a) 1,106 - - 9,033
Today's Man, Inc. (a) - 2,059 - -
Tracor, Inc. (a) 2,775 - - 13,681
United Waste Systems, Inc. (a) 3,090 - - 37,440
Warnaco Group, Inc. Class A - 6,216 146 -
Western Waste Industries, Inc. (a) 2,003 - - 26,694
TOTALS $ 215,412 $ 151,531 $ 1,386 $ 875,566
(a) NON-INCOME PRODUCING.
INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research
(U.K.) Inc. London, England
Fidelity Management & Research
(Far East) Inc. Tokyo, Japan
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
William J. Hayes, Vice President
Will Danoff, Vice President
Arthur S. Loring, Secretary
Stephen P. Jonas, Treasurer
Robert H. Morrison, Manager,
Security Transactions
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
Brown Brothers Harriman & Co.
Boston, MA
FIDELITY'S GROWTH FUNDS
Blue Chip Growth Fund
Capital Appreciation Fund
Contrafund
Disciplined Equity Fund
Dividend Growth Fund
Emerging Growth Fund
Fidelity Fifty
Growth Company Fund
Low-Priced Stock Fund
Magellan(registered trademark) Fund
Mid-Cap Stock Fund
New Millennium(trademark) Fund
OTC Portfolio
Retirement Growth Fund
Small Cap Stock Fund
Stock Selector
Trend Fund
Value Fund
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
(registered trademark)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
