DREYFUS GROWTH OPPORTUNITY FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
From the start of the calendar year and through the end of your Fund's
semi-annual fiscal period, August 31, the stock market has exceeded almost
everyone's expectations. In addition, the market for fixed income securities
has been very strong, reflecting the decline in interest rates that is still
underway.
The overriding influence on both markets this year has been the softening
of the U.S. economy, and the accompanying weakening of price and wage
inflation.
Indicators of economic growth, of industrial activity, of retail sales
and other economic weathervanes have all pointed to the so-called soft
landing for the economy. Traditionally, this might have been seen by
investors as a reason to sell equities. However, that generally has not been
the reaction in the stock market this year.
MARKET ENVIRONMENT
A variety of factors has motivated investors to bid up the prices of
stocks. One important factor has been the policies of the Federal Reserve
Board. Early in the year, the Fed was still trying to curb inflation by
ratcheting interest rates upward. It is evident in the economic statistics
that this had a cooling effect on leading indicators. Later, the Fed reversed
course in order to prevent the decline in economic activity from getting out
of hand. In the first part of the year, the stock market apparently was
impressed with the Fed's ability to sustain growth, within limits. Later, the
market seemingly was grateful for the Fed's decision to shift gears and make
borrowing less costly.
Other factors have been at work as well. The prospects for reduced
Government spending, as well as lower taxes on income and capital gains, have
encouraged the equity markets as well as the bond market. Investors are
pleased that both political parties now vow to balance the Federal budget,
though their target dates differ. Furthermore, the bond market is very aware
of the possibility that in future years the Government may be able to cut
back on its massive borrowings, which would certainly help to keep interest
rates down.
To be sure, it is always possible that unexpected events could change the
prevailing market psychology. Among these possibilities: a FINANCIAL
earthquake in Japan, a major misfire of leadership in Washington, a serious
setback for high tech companies, or a change in the economic script to a
hard-landing scenario.
Yet, as the Fall season began, the bulls appeared to be in the ascendant
in both the stock and bond markets.
PORTFOLIO OVERVIEW
We are pleased to report that for the six months ended August 31, 1995,
the total return for the Dreyfus Growth Opportunity Fund was 15.80%.* This is
comparable with the total return for the Dow Jones Industrial Average and the
Standard & Poor's 500 Composite Stock Price Index which were 16.41% and
16.79%, respectively.**
When it became clear in July that Federal Reserve Chairman Alan Greenspan
would reduce short-term interest rates, we made major changes in the
portfolio to take advantage of this important change in the economic
environment.
In our view, lower interest rates made cyclical industries more
attractive. Accordingly, we increased the portfolio's holdings in consumer
durables, in process industries, in retail companies and in transportation
stocks.
In the consumer durable field, where the Fund had not been represented at
all six months earlier, we acquired stock in General Motors and in Ford
Motor. In addition to the boost these companies receive from lower interest
rates, we believe there are potential benefits from restructuring,
particularly in Ford's financial subsidiary.
Process industries could also do particularly well in a lower
interest-rate climate. In this vein, we increased positions in the chemical
industry, adding Monsanto, in paper manufacturing, new holdings in Georgia
Pacific and International Paper, and in metals as represented by Aluminum Co.
of America and Nucor.
In the retail field, which should benefit from a cyclical change in the
economy, we increased the Fund's holdings, particularly in the value-oriented
segments of retailing, i.e., Wal-Mart Stores and Sears, Roebuck.
We also increased the weightings in transportation. This was done not
only due to prospects for strengthening in the U.S. economy, but also in the
expectation of improvement in Europe and Japan and continued growth in the
Pacific Rim. As a consequence, new investments in CSX and Southern Pacific
Rail were established.
The trend toward lower rates should also help the manufacturing sector,
and accordingly positions were established in Allied Signal and Dresser
Industries.
For reasons that are independent of cyclical factors, we increased
significantly the Fund's holdings in consumer service stocks, concentrating
primarily on companies that produce entertainment content. In part, this was
in anticipation of benefits that may flow from the new Telecommunications Act
now being debated in Congress. Mainly, however, this was in recognition of
how important programming will become, with the commercial implementation of
technology in the communications industry. Thus we added new positions in
Liberty Media Group, Viacom, Cl.B and Disney (Walt).
The most profitable group for the six months were technology stocks.
Here, holdings remained roughly the same as six months earlier. Standout
performers were cisco Systems, Intel, Micron Technology (a new purchase),
Motorola and Texas Instruments.
We cut back on health care holdings, largely due to our concern that a
stronger U.S. dollar could be a drag on the overseas earnings of health care
companies.
Total portfolio performance would have been better had we not prematurely
sold our financial stocks. That percentage of the portfolio was cut back
drastically earlier in the year because of rising interest rates. Thus, when
interest rates reversed course, the portfolio did not benefit from the
finance sector's response to the Fed's new policy.
Currently, we believe the portfolio is positioned to take advantage of a
pickup in economic activity that could occur in late 1995 and early 1996. In
our opinion, the slowdown now being experienced is mainly an inventory
correction that is occurring in the context of a still-expanding economy.
In early August, toward the end of the latest fiscal period, Timothy M.
Ghriskey was appointed portfolio manager of Dreyfus Growth Opportunity Fund.
Tim spent the last ten years at Loomis, Sayles & Co., where he was an
associate managing partner and a member of the firm's Investment Policy and
Planning committees. Previously, he had been an equity analyst at T. Rowe
Price. He is a graduate of Trinity College and received his M.B.A. from the
Darden School at the University of Virginia. I am delighted to turn over
management of the Fund to Tim, who looks forward to serving your investment
needs.
Sincerely,
[Ernest G. Wiggins signature logo]
Ernest G. Wiggins
Portfolio Manager
September 13, 1995
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid..
**SOURCE: LIPPER ANALYTICAL SERVICES, INC. - Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. Both the
Dow Jones Industrial Average and the Standard & Poor's 500 Composite Stock
Price Index are widely accepted unmanaged indexes of stock market performance.
<TABLE>
<CAPTION>
DREYFUS GROWTH OPPORTUNITY FUND, INC.
STATEMENT OF INVESTMENTS AUGUST 31, 1995 (UNAUDITED)
COMMON STOCKS-98.6% SHARES VALUE
-------------- --------------
<S> <C> <C> <C>
CAPITAL GOODS-3.4%
BBC Brown Boveri & Cie................. 13,000 $ 13,723,422
-----------
CONSUMER DURABLES-4.6%
Ford Motor............................. 300,000 9,187,500
General Motors......................... 200,000 9,400,000
-----------
18,587,500
-----------
CONSUMER
NON-DURABLES-2.7%
Seagram................................ 300,000 11,100,000
-----------
CONSUMER SERVICES-15.4%
Disney (Walt).......................... 100,000 5,612,500
Gaylord Entertainment.................. 375,000 10,406,250
Liberty Media Group.................... 375,000 9,960,938
Mirage Resorts......................... 300,000 (a) 10,312,500
News Corp, A.D.S....................... 250,000 5,687,500
Time Warner............................ 175,000 7,371,875
Viacom, Cl. B.......................... 200,000 (a) 9,725,000
Wendy's International.................. 200,000 3,925,000
-----------
63,001,563
-----------
ENERGY-13.2%
Amerada Hess........................... 225,000 10,659,375
Baker Hughes........................... 125,000 2,812,500
Dual Drilling.......................... 218,000 (a) 2,289,000
ENSCO International.................... 265,000 (a) 4,770,000
Schlumberger........................... 100,000 6,450,000
Sonat Offshore Drilling................ 230,000 7,877,500
Texaco................................. 175,000 11,331,250
Tidewater.............................. 175,000 4,331,250
Western Atlas.......................... 75,000 (a) 3,403,125
-----------
53,924,000
-----------
FINANCE-2.0%
State Street Boston.................... 225,600 8,319,000
-----------
HEALTH CARE-5.8%
Astra A................................ 160,000 5,305,709
Baxter International................... 150,000 5,850,000
Columbia/HCA Healthcare................ 175,000 8,225,000
Genelabs Technologies.................. 166,667 (a) 625,001
Teva Pharmaceutical Industries, A.D.R........... 100,000 3,787,500
-----------
23,793,210
-----------
INDUSTRIAL SERVICES-2.7%
CBI Industries......................... 150,000 3,675,000
WMX Technologies....................... 250,000 7,343,750
-----------
11,018,750
-----------
NON-ENERGY MINERALS-6.3%
Alcan Aluminium........................ 225,000 7,340,625
Aluminum Co. of America................ 175,000 9,996,875
Nucor.................................. 175,000 8,575,000
-----------
25,912,500
-----------
PROCESS INDUSTRIES-9.6%
Georgia Pacific........................ 100,000 9,000,000
Grace............................. (W.R.) 150,000 9,993,750
DREYFUS GROWTH OPPORTUNITY FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1995 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
-------------- --------------
PROCESS INDUSTRIES
(CONTINUED)
International Paper.................... 100,000 $ 8,187,500
Monsanto............................... 125,000 11,859,375
-----------
39,040,625
-----------
PRODUCER
MANUFACTURING-7.8%
AlliedSignal........................... 200,000 8,875,000
Cooper Cameron......................... 157,945 (a) 3,731,450
Cooper Industries...................... 200,000 7,600,000
Corning................................ 150,000 4,893,750
Dresser Industries..................... 100,000 2,400,000
TRINOVA................................ 115,000 4,226,250
-----------
31,726,450
-----------
RETAIL TRADE-7.4%
Federated Department Stores............ 100,000 (a) 2,700,000
Harcourt General....................... 150,000 6,243,750
Home Shopping Network.................. 500,000 (a) 5,250,000
Sears, Roebuck......................... 250,000 8,093,750
Wal-Mart Stores........................ 325,000 8,003,125
-----------
30,290,625
-----------
TECHNOLOGY-10.7%
cisco Systems.......................... 100,000 (a) 6,562,500
DSC Communications..................... 75,000 (a) 3,937,500
First Data............................. 35,000 2,043,125
General Instrument..................... 100,000 (a) 3,650,000
Hewlett-Packard........................ 50,000 4,000,000
Intel.................................. 100,000 6,137,500
Micron Technology...................... 50,000 3,843,750
Microsoft.............................. 25,000 (a) 2,312,500
Motorola............................... 50,000 3,737,500
Rohr................................... 300,000 (a) 4,650,000
Texas Instruments...................... 40,000 2,995,000
-----------
43,869,375
-----------
TRANSPORTATION-7.0%
Burlington Northern.................... 150,000 10,387,500
CSX.................................... 100,000 8,250,000
OMI.................................... 307,100 (a) 2,380,025
Overseas Shipholding Group............. 78,000 1,628,250
Southern Pacific Rail.................. 250,000 (a) 6,125,000
-----------
28,770,775
-----------
TOTAL COMMON STOCKS
(cost $368,377,746).................. $403,077,795
==============
DREYFUS GROWTH OPPORTUNITY FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1995 (UNAUDITED)
PRINCIPAL
SHORT-TERM INVESTMENTS-1.5% AMOUNT VALUE
-------------- --------------
U.S. GOVERNMENT AGENCIES; Federal Home Loan Mortgage,
5.67%, 9/1/1995
(cost $6,100,000)................. $ 6,100,000 $ 6,100,000
==============
TOTAL INVESTMENTS (cost $374,477,746) ................................ 100.1% $409,177,795
====== ============
LIABILITIES, LESS CASH AND RECEIVABLES................................. (.1%) $ (568,661)
====== ============
NET ASSETS.................................................................. 100.0% $408,609,134
====== ============
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS GROWTH OPPORTUNITY FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES AUGUST 31, 1995 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $374,477,746)-see statement..................................... $409,177,795
Cash.................................................................... 1,316,240
Receivable for investment securities sold............................... 5,055,511
Dividends receivable.................................................... 910,689
Receivable for subscriptions to Common Stock............................ 39,265
Prepaid expenses........................................................ 25,251
----------
416,524,751
LIABILITIES:
Due to The Dreyfus Corporation.......................................... . $ 379,888
Payable for investment securities purchased............................. 7,274,803
Net unrealized (depreciation) on forward currency
exchange contracts-Note 3(a).......................................... 129,214
Accrued expenses........................................................ 131,712 7,915,617
--------- ---------
NET ASSETS ................................................................ $408,609,134
----------
REPRESENTED BY:
Paid-in capital......................................................... $343,235,325
Accumulated undistributed investment income-net......................... 2,163,466
Accumulated undistributed net realized gain on investments.............. 28,642,467
Accumulated net unrealized appreciation on investments and
foreign currency transactions......................................... 34,567,876
----------
NET ASSETS at value applicable to 40,750,574 outstanding shares of
Common Stock, equivalent to $10.03 per share (100 million shares
of $.01 par value authorized)........................................... $408,609,134
============
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS GROWTH OPPORTUNITY FUND, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED AUGUST 31, 1995 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $90,606 foreign taxes withheld at source)...... . $ 3,818,306
Interest.............................................................. 324,148
----------
TOTAL INCOME...................................................... $ 4,142,454
EXPENSES:
Management fee-Note 2(a).............................................. 1,477,051
Shareholder servicing costs-Note 2(b)................................. 451,763
Custodian fees........................................................ 44,913
Directors' fees and expenses-Note 2(c)................................ 32,993
Professional fees..................................................... 28,762
Registration fees..................................................... 22,616
Prospectus and shareholders' reports.................................. 2,455
Miscellaneous......................................................... 2,003
---------
TOTAL EXPENSES.................................................... 2,062,556
----------
INVESTMENT INCOME-NET............................................. 2,079,898
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 3(a).............................. . $30,452,114
Net realized (loss) on foreign currency transactions.................... (105)
NET REALIZED GAIN................................................. 30,452,009
----------
Net unrealized appreciation on investments and
forward currency exchange contracts................................... . 24,961,164
Net unrealized (depreciation) on translation of asset and liabilities
in foreign currencies................................................. (2,959)
---------
TOTAL UNREALIZED APPRECIATION..................................... 24,958,205
----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 55,410,214
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $57,490,112
===========
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS GROWTH OPPORTUNITY FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
FEBRUARY 28, AUGUST 31, 1995
1995 (UNAUDITED)
--------------- -------------------
<S> <C> <C>
OPERATIONS:
Investment income-net.............................................. $ 4,243,022 $ 2,079,898
Net realized gain on investments................................... 3,313,992 30,452,009
Net unrealized appreciation (depreciation) on investments for the period (19,554,876) 24,958,205
------------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.. (11,997,862) 57,490,112
------------- -----------
DIVIDENDS TO SHAREHOLDERS:
From investment income-net......................................... (3,800,200) (406,852)
From net realized gain on investments.............................. (67,229,655) ---
In excess of net realized gain on investments...................... (1,809,542) ---
------------- -----------
TOTAL DIVIDENDS.................................................. (72,839,397) (406,852)
------------- -----------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold...................................... 215,640,180 178,845,628
Dividends reinvested............................................... 70,652,644 393,165
Cost of shares redeemed............................................ (292,465,535) (200,025,564)
------------- -----------
(DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS......... (6,172,711) (20,786,771)
------------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS...................... (91,009,970) 36,296,489
NET ASSETS:
Beginning of period................................................ 463,322,615 372,312,645
------------- -----------
End of period (including undistributed investment income-net:
$490,420 and $2,163,466, respectively)........................... $ 372,312,645 $ 408,609,134
============= =============
SHARES SHARES
------------- -----------
CAPITAL SHARE TRANSACTIONS:
Shares sold........................................................ 22,977,606 18,942,458
Shares issued for dividends reinvested............................. 8,225,621 39,483
Shares redeemed.................................................... (30,788,833) (21,196,312)
------------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING.................... 414,394 (2,214,371)
============ ============
</TABLE>
See independent accountants' review report and notes to financial statements.
DREYFUS GROWTH OPPORTUNITY FUND, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
SIX MONTHS ENDED
FISCAL YEAR ENDED FEBRUARY, AUGUST 31, 1995
--------------------------------------------------
PER SHARE DATA: 1991 1992 1993 1994 1995 (UNAUDITED)
------- ------- -------- ------ ------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $ 9.77 $10.27 $13.20 $12.21 $10.89 $ 8.67
------- ------- -------- ------ ------- -------------
INVESTMENT OPERATIONS:
Investment income (loss)-net.......... .24 .11 .01 (.02) .10 .05
Net realized and unrealized gain (loss)
on investments...................... .56 2.95 (.98) 1.30 (.38) 1.32
------- ------- -------- ------ ------- -------------
TOTAL FROM INVESTMENT OPERATIONS.... .80 3.06 (.97) 1.28 (.28) 1.37
------- ------- -------- ------ ------- -------------
DISTRIBUTIONS:
Dividends from investment income-net.. (.28) (.13) (.02) .- (.09) (.01)
Dividends from net realized gain
on investments...................... (.02) .- .- (2.60) (1.80) .-
Dividends in excess of net realized gain
on investments...................... .- .- .- .- (.05) .-
------- ------- -------- ------ ------- -------------
TOTAL DISTRIBUTIONS................. (.30) (.13) (.02) (2.60) (1.94) (.01)
------- ------- -------- ------ ------- -------------
Net asset value, end of period........ $10.27 $13.20 $12.21 $10.89 $ 8.67 $10.03
======= ====== ======= ====== ======= ==============
TOTAL INVESTMENT RETURN................... 8.53% 29.91% (7.36%) 11.07% (2.11%) 15.80%*
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .98% .95% 1.00% 1.09% 1.10% .52%*
Ratio of net investment income (loss) to
average net assets.................. 2.32% .85% .11% (.14%) 1.09% .53%*
Portfolio Turnover Rate............... 146.93% 56.95% 90.03% 194.59% 242.75% 148.96%*
Net Assets, end of period (000's Omitted) $511,854 $631,436 $569,791 $463,323 $372,313 $408,609
* Not Annualized.
</TABLE>
See independent accountants' review report and notes to financial statements.
DREYFUS GROWTH OPPORTUNITY FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a diversified open-end management investment company. Premier Mutual Fund
Services, Inc. (the "Distributor") acts as the distributor of the Fund's
shares, which are sold to the public without a sales charge. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of FDI Distribution Services, Inc., a provider of mutual fund
administration services, which in turn is a wholly-owned subsidiary of FDI
Holdings, Inc., the parent company of which is Boston Institutional Group,
Inc. The Dreyfus Corporation ("Manager") serves as the Fund's investment
adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
(A) PORTFOLIO VALUATION: Investments in securities (including options)
are valued at the last sales price on the securities exchange on which such
securities are primarily traded or at the last sales price on the national
securities market. Securities not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is
used when no asked price is available. Securities for which there are no such
valuations are valued at fair value as determined in good faith under the
direction of the Board of Directors. Investments denominated in foreign
currencies are translated to U.S. dollars at the prevailing rates of
exchange. Investments in forward currency exchange contracts are valued at
the offsetting rates.
(B) FOREIGN CURRENCY TRANSACTIONS: The Fund does not isolate that portion
of the results of operations resulting from changes in foreign exchange rates
on investments from the fluctuations arising from change in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of foreign currencies, currency
gains or losses realized on securities transactions, the difference between
the amounts of dividends, interest and foreign withholding taxes recorded on
the Fund's books, and the U.S. dollar equivalent of the amounts actually
received or paid. Net unrealized foreign exchange gains and losses arise from
changes in the value of assets and liabilities other than investments in
securities at period end, resulting from changes in exchange rates.
(C) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Dividend
income is recognized on the ex-dividend date and interest income, including,
where applicable, amortization of discounts on investments, is recognized on
the accrual basis.
(D) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and dividends from net realized
capital gain are normally declared and paid annually, but the Fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. To the extent that net realized
capital gain can be offset by capital loss carryovers, if any, it is the
policy of the Fund not to distribute such gain.
(E) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders, by complying with
DREYFUS GROWTH OPPORTUNITY FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
the applicable provisions of the Internal Revenue Code, and to make
distributions of taxable income sufficient to relieve it from substantially
all Federal income and excise taxes.
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of 3/4 of 1% of the average
daily value of the Fund's net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Fund's
aggregate expenses, exclusive of taxes, interest on borrowings, brokerage
commissions and extraordinary expenses, exceed 11\2% of the average value of
the Fund's net assets for any full fiscal year. No expense reimbursement was
required for the six months ended August 31, 1995.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, an
amount not to exceed an annual rate of .25 of 1% of the value of the Fund's
average daily net assets for certain allocated expenses of providing personal
services and/or maintaining shareholder accounts. The services provided may
include personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the Fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
During the six months ended August 31, 1995, the Fund was charged an
aggregate of $201,848 pursuant to the Shareholder Services Plan.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $4,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3-SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts,
during the six months ended August 31, 1995, amounted to $568,220,191 and
$576,426,392, respectively.
In addition, the following summarizes open forward currency exchange
contracts at August 31, 1995;
<TABLE>
<CAPTION>
U.S. DOLLAR UNREALIZED
FORWARD CURRENCY SALE CONTRACTS PROCEEDS VALUE (DEPRECIATION)
- ------------------------------------- -------------- ---------- --------------
<S> <C> <C> <C>
Swiss Francs, expiring 9/20/95............... $6,800,000 $6,929,214 $(129,214)
=========
</TABLE>
The Fund enters into forward exchange currency contracts in order to
hedge its exposure to changes in foreign currency exchange rates on its
foreign portfolio holdings. When executing forward currency exchange
contracts, the Fund is obligated to buy or sell a foreign currency at a
specified rate on a certain date in the future. With respect to sales of
forward currency exchange contracts, the Fund would incur a loss if the value
of the contract increases between the date the forward contract is opened and
the date the forward contract is closed. The Fund realizes a gain if the
value of the contract decreases between those dates. With respect to
purchases of forward currency exchange contracts, the Fund would incur a loss
if the value of the contract decreases between the date the forward contract
is opened and the date
DREYFUS GROWTH OPPORTUNITY FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
the forward contract is closed. The Fund realizes a gain if the value of the
contract increases between those dates. The Fund is also exposed to credit
risk associated with counter party nonperformance on these forward currency
exchange contracts which is typically limited to the unrealized gains in such
contracts that are recognized in the Statement of Assets and Liabilities.
(B) At August 31, 1995, accumulated net unrealized appreciation on
investments was $34,570,835, consisting of $43,358,257 gross unrealized
appreciation and $8,787,422 gross unrealized depreciation.
At August 31, 1995, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
DREYFUS GROWTH OPPORTUNITY FUND, INC.
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS GROWTH OPPORTUNITY FUND, INC.
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus Growth Opportunity Fund, Inc., including the statement of
investments, as of August 31, 1995, and the related statements of operations
and changes in net assets and financial highlights for the six month period
ended August 31, 1995. These financial statements and financial highlights
are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
February 28, 1995 and financial highlights for each of the five years in the
period ended February 28, 1995 and in our report dated March 31, 1995, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
[Ernst and Young LLP signature logo]
New York, New York
October 5, 1995
[Dreyfus lion "d" logo]
DREYFUS GROWTH
OPPORTUNITY FUND, INC.
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 018SA958
[Dreyfus logo]
Growth Opportunity Fund, Inc.
Semi-Annual
Report
August 31, 1995
