<PAGE> PAGE 1
000 B000000 06/30/98
000 C000000 0000316572
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 THE MATTERHORN GROWTH FUND, INC.
001 B000000 811-03054
001 C000000 2153217110
002 A000000 301 OXFORD VALLEY ROAD, SUITE 802B
002 B000000 YARDLEY
002 C000000 PA
002 D010000 19067
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 MATTERHORN ASSET MANAGEMENT CORPORATION
008 B000001 A
008 C000001 801-32050
008 D010001 YARDLEY
008 D020001 PA
008 D030001 19067
010 A000001 INVESTMENT COMPANY ADMINISTRATION CORPORATION
010 C010001 GLENDORA
010 C020001 CA
010 C030001 91741
011 A000001 BAINBRIDGE SECURITIES INC.
011 B000001 8-019359
011 C010001 YARDLEY
011 C020001 PA
011 C030001 19067
011 A000002 CUMBERLAND BROKERAGE CORPORATION
011 B000002 8-47402
011 C010002 VINELAND
011 C020002 NJ
<PAGE> PAGE 2
011 C030002 08360
012 A000001 AMERICAN DATA SERVICES, INC.
012 B000001 84-1964
012 C010001 HAUPPAUGE
012 C020001 NY
012 C030001 11788
013 A000001 MCGLADREY & PULLEN, LLP
013 B010001 NEW YORK
013 B020001 NY
013 B030001 10017
014 A000001 BAINBRIDGE SECURITIES INC.
014 B000001 8-019359
014 A000002 CUMBERLAND BROKERAGE CORPORATION
014 B000002 8-47402
015 A000001 STAR BANK, N.A.
015 B000001 C
015 C010001 CINCINNATI
015 C020001 OH
015 C030001 45201
015 E010001 X
018 000000 Y
019 A000000 N
019 B000000 0
019 C000000 MATTERHORN
020 A000001 PAINE WEBBER
020 B000001 13-2638166
020 C000001 17
020 A000002 SMITH BARNEY
020 B000002 13-1912900
020 C000002 8
020 A000003 ALEX BROWN
020 B000003 52-1319768
020 C000003 5
020 A000004 WHEAT FIRST
020 B000004 54-0796506
020 C000004 3
020 A000005 PRUDENTIAL
020 B000005 22-2347336
020 C000005 3
020 A000006 JANNEY MONTGOMERY
020 C000006 2
020 A000007 A. G. EDWARDS
020 C000007 1
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 39
022 A000001 STAR BANK, N.A.
022 C000001 180255
022 D000001 0
022 A000002 FORD MOTOR CREDIT
<PAGE> PAGE 3
022 C000002 1000
022 D000002 0
022 C000003 0
022 D000003 0
022 C000004 0
022 D000004 0
022 C000005 0
022 D000005 0
022 C000006 0
022 D000006 0
022 C000007 0
022 D000007 0
022 C000008 0
022 D000008 0
022 C000009 0
022 D000009 0
022 C000010 0
022 D000010 0
023 C000000 181255
023 D000000 0
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 Y
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 56
028 A020000 0
028 A030000 0
028 A040000 155
028 B010000 23
028 B020000 0
028 B030000 0
028 B040000 241
028 C010000 87
028 C020000 0
028 C030000 0
028 C040000 207
<PAGE> PAGE 4
028 D010000 34
028 D020000 0
028 D030000 0
028 D040000 138
028 E010000 8
028 E020000 0
028 E030000 0
028 E040000 78
028 F010000 34
028 F020000 0
028 F030000 0
028 F040000 42
028 G010000 242
028 G020000 0
028 G030000 0
028 G040000 861
028 H000000 0
029 000000 N
030 A000000 0
030 B000000 0.00
030 C000000 0.00
031 A000000 0
031 B000000 0
032 000000 0
033 000000 0
034 000000 N
035 000000 0
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
040 000000 Y
041 000000 Y
042 A000000 0
042 B000000 9
042 C000000 0
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 91
043 000000 23
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 1.000
048 A010000 0
048 A020000 0.000
048 B010000 0
048 B020000 0.000
<PAGE> PAGE 5
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 N
054 A000000 Y
054 B000000 N
054 C000000 N
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 N
054 M000000 Y
054 N000000 N
054 O000000 N
055 A000000 N
055 B000000 N
056 000000 N
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 N
060 B000000 N
061 000000 1000
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
<PAGE> PAGE 6
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 Y
066 C000000 Y
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 Y
070 B010000 Y
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 N
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 N
070 K010000 N
070 K020000 N
070 L010000 Y
070 L020000 N
070 M010000 N
070 M020000 N
070 N010000 Y
070 N020000 N
070 O010000 Y
<PAGE> PAGE 7
070 O020000 N
070 P010000 N
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 9620
071 B000000 9570
071 C000000 8302
071 D000000 115
072 A000000 12
072 B000000 37
072 C000000 175
072 D000000 0
072 E000000 0
072 F000000 91
072 G000000 40
072 H000000 30
072 I000000 41
072 J000000 10
072 K000000 0
072 L000000 13
072 M000000 11
072 N000000 16
072 O000000 0
072 P000000 0
072 Q000000 19
072 R000000 19
072 S000000 8
072 T000000 23
072 U000000 0
072 V000000 0
072 W000000 12
072 X000000 333
072 Y000000 0
072 Z000000 -121
072AA000000 1375
072BB000000 0
072CC010000 0
072CC020000 279
072DD010000 0
072DD020000 0
072EE000000 346
073 A010000 0.0000
073 A020000 0.0000
073 B000000 0.2700
073 C000000 0.0000
074 A000000 0
074 B000000 350
074 C000000 0
<PAGE> PAGE 8
074 D000000 0
074 E000000 0
074 F000000 8712
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 0
074 K000000 0
074 L000000 11
074 M000000 9
074 N000000 9082
074 O000000 0
074 P000000 10
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 49
074 S000000 0
074 T000000 9023
074 U010000 1238
074 U020000 0
074 V010000 7.29
074 V020000 0.00
074 W000000 0.0000
074 X000000 1938
074 Y000000 0
075 A000000 0
075 B000000 9114
076 000000 0.00
077 A000000 Y
077 B000000 Y
078 000000 N
080 A000000 RELIANCE INSURANCE COMPANY
080 C000000 200
081 A000000 N
081 B000000 0
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
<PAGE> PAGE 9
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE THEODORE G. BRADPIECE
TITLE ASSISTANT TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000316572
<NAME> THE MATTERHORN GROWTH FUND, INC.
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-START> JUL-01-1997
<PERIOD-END> JUN-30-1998
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 8521339
<INVESTMENTS-AT-VALUE> 9062330
<RECEIVABLES> 11496
<ASSETS-OTHER> 5988
<OTHER-ITEMS-ASSETS> 2131
<TOTAL-ASSETS> 9081945
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 58784
<TOTAL-LIABILITIES> 58784
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 7177180
<SHARES-COMMON-STOCK> 1238176
<SHARES-COMMON-PRIOR> 1351548
<ACCUMULATED-NII-CURRENT> (120551)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1155541
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 810991
<NET-ASSETS> 9023161
<DIVIDEND-INCOME> 175415
<INTEREST-INCOME> 36818
<OTHER-INCOME> 0
<EXPENSES-NET> 332784
<NET-INVESTMENT-INCOME> (120551)
<REALIZED-GAINS-CURRENT> 1374530
<APPREC-INCREASE-CURRENT> (278775)
<NET-CHANGE-FROM-OPS> 975204
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (345985)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 69763
<NUMBER-OF-SHARES-REDEEMED> (230594)
<SHARES-REINVESTED> 47819
<NET-CHANGE-IN-ASSETS> (189662)
<ACCUMULATED-NII-PRIOR> (107624)
<ACCUMULATED-GAINS-PRIOR> 234620
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 91148
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 332784
<AVERAGE-NET-ASSETS> 3114180
<PER-SHARE-NAV-BEGIN> 6.82
<PER-SHARE-NII> (0.11)
<PER-SHARE-GAIN-APPREC> 0.85
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (0.27)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 7.29
<EXPENSE-RATIO> 3.65
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
The Board of Directors
The Matterhorn Growth Fund, Inc.
In planning and performing our audit of the financial statements of The
Matterhorn Growth Fund, Inc. for the year ended June 30, 1998, we considered
its internal control, including controls over safeguarding securities, in
order to determine our auditing procedures for the purpose of expressing our
opinion on the financial statements and to comply with the requirements of
Form N-SAR, not to provide assurance on internal control.
The management of The Matterhorn Growth Fund, Inc. is responsible for
establishing and maintaining internal control. In fulfilling this
responsibility, estimates and judgments by management are required to assess
the expected benefits and related costs of controls. Generally, controls
that are relevant to an audit pertain to the entity's objective of preparing
financial statements for external purposes that are fairly presented in
conformity with generally accepted accounting principles. Those controls
include safeguarding of assets against unauthorized acquisition, use, or
disposition.
Because of inherent limitations in internal control, errors or fraud may
occur and may not be detected. Also, projection of any evaluation of
internal control to future periods is subject to the risk that it may become
inadequate because of changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of internal control would not necessarily disclose all
matters in internal control that might be material weaknesses under standards
established by the American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or operation of any
specific internal control component does not reduce to a relatively low level
the risk that errors or fraud in amounts that would be material in relation
to the financial statements being audited may occur and not be detected
within a timely period by employees in the normal course of performing their
assigned functions. However, we noted no matters involving internal control,
including controls over safeguarding securities, that we consider to be
material weaknesses as defined above as of June 30, 1998.
This report is intended solely for the information and use of management and
the Securities and Exchange Commission.
McGladrey & Pullen, LLP
New York, New York
July 24, 1998
