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[GINTEL LOGO]
GINTEL FUND
SEMIANNUAL REPORT TO
SHAREHOLDERS
JUNE 30, 1995
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GINTEL FUND
The investment objective is to achieve capital appreciation through investing in
equities. The minimum initial investment in the Gintel Fund is $5,000, including
IRA's and Keogh's. There is no minimum on additional investments.
SUMMARY OF INVESTMENT RESULTS*
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<S> <C>
1995 (6 mos.) 17.2%
1994 -16.5%
1993 2.0%
1992 24.7%
1991 15.6%
1990 -6.7%
1989 23.8%
1988 29.4%
1987 -14.3%
1986 20.8%
1985 20.0%
1984 -2.6%
1983 34.3%
1982 34.1%
1981 (6/10/81-12/31/81) 7.5%
Average Annual Total
Return Since Inception 13.5%
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*Investment results are net of expenses, with dividends and capital gains
reinvested.
Past results offer no assurance as to future performance. The investment return
and principal value of an investment will fluctuate, so that an investor's
shares when redeemed may be worth more or less than their original cost. The
Fund's prospectus contains more complete information and should be read
carefully.
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July 14, 1995
Fellow Shareholders:
So far this has been a very good year for both the stock and bond markets.
We seem to be back on the right track once again. Helped by strong gains in
many of our large positions, the Fund's net asset value appreciated 17.2% in
the first six months of the year. Fannie Mae, which represents 15% of the
portfolio, reached a new high, but is still selling at under 10 times next
year's projected earnings of about $10 per share. Union Camp appreciated 23%
due to the strong earnings growth we have been anticipating. DuPont, FirstFed
Michigan, Schering Plough, and Checkpoint Systems performed particularly well,
also reaching new highs, while other key holdings, such as Capstead Mortgage,
OHM Corporation, and Chart Industries, experienced strong rebounds from last
year's oversold levels. Checkpoint Systems, which represents 8.5% of the Fund's
assets, has been an outstanding performer. Source-tagging has been the catalyst
for the company's rapid growth in revenues this year. We hope for further
appreciation in this stock, but have sold part of our holdings to lock in
profits and reduce our exposure in this one issue. Our cash position at the end
of June stood at a modest 2.5%.
At the beginning of the year we were bullish for a variety of reasons. We
believed that interest rates had peaked, that inflation was under control, that
the economic recovery would continue but at a more modest pace, that corporate
earnings generally would be stronger, and that Congress would seriously
undertake important political and fiscal reforms. With many of these predictions
coming to pass, much of the pessimism and negative sentiment
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generated during the latter two-thirds of 1994 evaporated. The Dow Jones
Industrial Average made successive new all-time highs, while interest rates on
government bonds fell, thus confounding those pundits who were predicting
further interest rate hikes.
We believe now that the Federal Reserve will act to reduce interest rates
further, if necessary, to counteract weaknesses which have developed in certain
important sectors of the economy. In our opinion, there will be a pickup by the
fourth quarter of 1995 once the current inventory correction has run its course.
Corporate earnings should continue to trend higher, enabling selective stocks to
make new highs. This is why we remain fully invested.
As you may have read, Chase Manhattan Bank, N.A., has purchased U.S. Trust
Company of New York's mutual fund servicing business, including Mutual Funds
Service Company in Boston. Although Chase will become the new custodian of the
Fund's assets, Mutual Funds Service Company will remain the Fund's transfer
agent and, consequently, there will be no administrative impact on our
shareholders. We will continue to offer the UST Master Fund Money Market Funds,
and all IRA accounts will be assigned to Chase as the new custodian. This
transaction is currently awaiting regulatory approval which is expected
sometime in August.
We're glad to see results improving so well for those who stayed with us.
Shareholders will note that both Cecil Godman and Ed Carroll are co-managing the
Fund's portfolio.
Cordially,
/s/ Robert M. Gintel /s/ Cecil A. Godman, III /s/ Edward F. Carroll
- --------------------- ------------------------- ----------------------
Robert M. Gintel Cecil A. Godman, III Edward F. Carroll
Chairman Chief Investment Officer Vice President --
Investment Research
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<CAPTION>
GINTEL FUND Statement of Net Assets As of June 30, 1995
(Unaudited)
NUMBER
OF MARKET
SHARES COST** VALUE
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COMMON STOCKS
<S> <C> <C> <C>
MORTGAGE INVESTMENTS (19.6%)
150,000 Federal National Mortgage Association $ 8,108,948 $14,156,250
150,000 Capstead Mortgage Corporation 2,932,500 4,031,250
FOREST PRODUCTS - PAPER (12.1%)
150,000 Union Camp Corporation 6,750,336 8,681,250
52,500 Weyerhauser Company 2,101,374 2,474,063
SECURITY PROTECTION SYSTEM (8.5%)
355,000 Checkpoint Systems, Inc.* 2,846,216 7,898,750
ENVIRONMENTAL SERVICES (8.3%)
600,000 OHM Corporation* 5,708,294 7,275,000
25,000 Safety-Kleen Corporation 341,251 403,125
TEXTILE-APPAREL (6.6%)
665,000 Oneita Industries, Inc.+ 8,414,133 6,068,125
DIVERSIFIED INDUSTRIES (5.5%)
700,000 Chart Industries, Inc 3,321,550 3,675,000
25,000 Johnson Controls, Inc 1,195,850 1,412,500
HEALTH CARE (4.8%)
100,000 Schering-Plough Corporation 2,412,088 4,412,500
DIVERSIFIED CHEMICAL PRODUCER (3.7%)
50,000 E.I. du Pont de Nemours and Company 2,798,852 3,437,500
COPPER PRODUCER (3.2%)
50,000 Phelps Dodge Corporation 2,992,527 2,950,000
SAVINGS & LOAN (3.0%)
100,000 FirstFed Michigan Corporation 868,021 2,800,000
INTEGRATED STEEL PRODUCER (2.8%)
75,000 USX - U S Steel Group 2,650,147 2,578,125
CONSTRUCTION & ENGINEERING (2.7%)
48,000 Fluor Corporation 2,223,496 2,496,000
ELECTRONICS/COMPUTERS (2.5%)
50,000 Compaq Computer Corporation* 2,025,000 2,268,750
OILFIELD SERVICES (1.7%)
75,000 Newpark Resources, Inc.* 1,492,845 1,575,000
BROADCAST EQUIPMENT (1.5%)
100,000 Vertex Communications Corporation* 1,550,000 1,375,000
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<TABLE>
<CAPTION>
GINTEL FUND Statement of Net Assets (continued) As of June 30, 1995
(Unaudited)
NUMBER
OF MARKET
SHARES COST** VALUE
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<S> <C> <C> <C>
CONGLOMERATE (1.5%)
25,000 Tyco International, LTD 1,278,937 1,350,000
MANUFACTURING (1.4%)
50,000 The Singer Co N.V 1,279,725 1,293,750
SPECIALTY RETAILING (1.3%)
75,000 Price/Costco Inc.* 1,011,187 1,218,750
POWER -- HOME TOOLS (1.0%)
30,000 The Black & Decker Corporation 750,260 926,250
SOFT DRINKS (1.0%)
20,000 PepsiCo Inc 696,562 912,500
PRECIOUS METALS (0.4%)
30,000 Santa Fe Pacific Gold Corporation 313,734 363,750
TUPPERWARE - FOOD EQUIPMENT (0.4%)
7,000 Premark International, Inc 292,000 363,125
MISCELLANEOUS SECURITIES***(3.9%) 3,567,721 3,651,187
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TOTAL COMMON STOCKS (97.4%) 69,923,554 90,047,500
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PRINCIPAL
AMOUNT
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CASH EQUIVALENTS
2,334,000 U.S. Trust Repurchase Agreement
5.90% due 7/3/95 (Collateralized by U.S.
Government Obligations) 2,334,000 2,334,000
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Total Cash Equivalents (2.5%) 2,334,000 2,334,000
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Total Investments (99.9%) $72,257,554 92,381,500
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Other Assets Net of Liabilities (0.1%) 135,120
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Net Assets Applicable to Outstanding
Shares (100.0%) $92,516,620
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Net asset value per share--based on 6,337,950 shares of
beneficial interest (offering and redemption price) $14.60
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* Non-income producing investments
** Cost basis for Federal income tax purposes
***Includes 19 securities, some of which are non-income producing investments.
+Robert Gintel is Chairman of the Board of Oneita Industries and owns 16% of
its common stock. As a result, Oneita may be deemed to be an affiliate of the
Fund.
The accompanying notes to financial statements are an integral part hereof.
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<CAPTION>
GINTEL FUND Statement of Operations June 30, 1995
(Unaudited)
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INVESTMENT INCOME:
Dividends $ 982,801
Interest 18,673
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Total investment income 1,001,474
EXPENSES:
Administrative services fee (Note D) $ 548,008
Investment advisory fee (Note C) 459,341
Trustees' fees 13,635
State taxes 992
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Total expenses 1,021,976
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NET INVESTMENT LOSS (20,502)
NET REALIZED GAIN ON INVESTMENTS 3,177,921
NET INCREASE IN UNREALIZED APPRECIATION OF INVESTMENTS 11,121,753
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NET GAIN ON INVESTMENTS 14,299,674
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NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 14,279,172
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The accompanying notes to financial statements are an integral part hereof.
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<CAPTION>
GINTEL FUND Statement of Changes in Net Assets (Unaudited)
Six Months Year
Ended 6/30/95 Ended 12/31/94
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OPERATIONS:
Net investment income (loss) $ (20,502) $ 329,828
Net realized gain on investments 3,177,921 1,062,638
Net increase (decrease) in unrealized appreciation
of investments 11,121,753 (21,596,352)
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Net increase (decrease) in net assets from operations 14,279,172 (20,203,886)
DISTRIBUTIONS TO SHAREHOLDERS:
Investment income -- (321,331)
Net realized gains from investment -- (829,794)
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Net decrease from distributions -- (1,151,125)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued 1,089,576 3,780,624
Reinvestment of dividends -- 723,070
Cost of shares repurchased (11,129,398) (30,981,707)
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Net decrease from capital
share transactions (10,039,822) (26,478,013)
Total Increase (Decrease) 4,239,350 (47,833,024)
Net Assets - Beginning of Year 88,277,270 136,110,294
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Net Assets - End of Period $ 92,516,620 $ 88,277,270
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NET ASSETS CONSIST OF:
Capital Stock $ 79,002,638 $ 89,042,460
Undistributed net investment losses (175,661) (155,159)
Undistributed net realized gains
from security transactions 3,238,536 60,615
Unrealized appreciation (depreciation) on investments 10,451,107 (670,646)
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92,516,620 $ 88,277,270
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The accompanying notes to financial statements are an integral part hereof.
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<CAPTION>
GINTEL FUND Condensed Financial Information (Per Share Income and Capital Changes*) (Unaudited)
Year Ended December 31
----------------------------------------------------------
Six Months
Ended 6/30/95 1994 1993 1992 1991
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<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $ 12.46 $ 15.11 $ 16.45 $ 13.48 $ 12.75
Income from
Investment Operations
Net investment income (loss) (.01) .04 (.06) .09 .32
Net realized and unrealized
gain (loss) on securities 2.15 (2.53) .37 3.23 1.66
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Total from Investment Income 2.14 (2.49) .31 3.32 1.98
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Less: Distributions
Net investment income - .04 - .10 .31
Capital gains - .12 1.65 .25 .94
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Total Distributions - .16 1.65 .35 1.25
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Net Asset Value, End of Period $ 14.60 $ 12.46 $ 15.11 $ 16.45 $ 13.48
===================================================================================================================================
Total Return 17.2% -16.5% 2.0% 24.7% 15.6%
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Ratios/Supplemental Data
Net assets, end of period $92,516,620 $88,277,270 $136,110,294 $164,620,218 $77,408,444
Ratio of operating expenses to
average net assets (Note D) 2.3%** 2.4%** 2.2%** 1.7%** 1.4%
Ratio of net investment
income (loss) to average net assets (.1%) .3% (.3%) .9% 1.9%
Portfolio turnover rate 58.8% 69.6% 50.8% 56.0% 66.3%
Shares outstanding, end of period 6,337,950 7,085,466 9,008,802 10,009,980 5,741,424
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* The above per share information is based upon a daily average of shares
outstanding, which has been restated to reflect the 5.241835/1 split on
September 25, 1992
** The Fund's expense ratio includes brokerage commissions on portfolio
transactions paid for under the Fund's Administrative Services fee, and
therefore, may appear higher than those of other mutual funds as well as
for the Fund in prior years. Other mutual funds do not include brokerage
commissions in their operating expenses, but instead add them to the cost
of securities purchased or deduct them from the proceeds of securities
sold.
The accompanying notes to financial statements are an integral part hereof.
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GINTEL FUND Statement of Cash Flows June 30, 1995
(Unaudited)
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Cash flows from operating activities:
Net investment loss $ (20,502)
Net change in other receivables/payables 66,504
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Net cash provided by operating activities 46,002
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Cash flows from investing activities:
Proceeds from sales of securities 26,985,700
Purchase of securities (26,802,132)
Net sales of short-term investments 9,763,000
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Net cash provided by investing activities 9,946,568
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Cash flows from financing activities:
Sales of shares 1,089,576
Shares repurchased (11,082,868)
Temporary borrowings 2,770,833
Repayment of temporary borrowings (2,770,833)
Dividends paid -
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Net cash (used in) financing activities (9,993,292)
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Net decrease in cash (722)
Cash at beginning of year 846
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Cash at end of period 124
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</TABLE>
The accompanying notes to financial statements are an integral part hereof.
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GINTEL FUND Notes to Financial Statements June 30, 1995
(Unaudited)
(NOTE A) -- ORGANIZATION:
The Gintel Fund ( "the Fund") is a Massachusetts business trust formed under the
laws of the Commonwealth of Massachusetts with authority to issue an unlimited
number of shares of beneficial interest.
(NOTE B) -- SIGNIFICANT ACCOUNTING POLICIES:
1. Security Valuation:
Investments in securities are valued at the last reported sales price on the
last business day of the period, or in the absence of a recorded sale, at the
mean of the closing bid and asked price on that date. Short-term investments are
valued at cost which approximates market value.
2. Federal Income Taxes:
It is the Fund's policy to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute
substantially all of its taxable income and long-term gains to its stockholders.
Therefore, only a nominal Federal income tax provision is required.
3. Other:
As is common in the industry, security transactions are accounted for on the
trade date. Dividend income and distributions to shareholders are recorded on
the ex-dividend date.
Realized gain or loss on security transactions is determined on the basis of
first-in, first-out or specific identification.
(NOTE C) -- INVESTMENT ADVISORY AGREEMENT:
The Fund has entered into an Investment Advisory Agreement with Gintel Equity
Management, Inc., a related party, which provides for an annual fee of 1% to be
paid quarterly, based on the daily value of the Fund's net assets during the
preceding quarter. The fee will be reduced for any fiscal year, if the Fund's
expenses, as defined, exceed certain limitations.
(NOTE D) -- ADMINISTRATIVE SERVICES AGREEMENT:
The Fund has entered into an Administrative Services Agreement which provides
that in consideration for the services provided by Gintel & Co., the Fund's
Distributor, and a related party, and the payment by the Distributor of
substantially all of the Fund's expenses, including but not limited to brokerage
commissions and operating expenses (but excluding the Investment Advisor's fees,
the fees paid to non-interested Trustees, certain transaction costs, interest,
taxes and extraordinary expenses), the Distributor will receive a fee payable at
the beginning of each quarter based on average daily net assets during the
preceeding quarter, at an annual rate of 1.25% of the first $50 million of the
average daily net assets of the Fund, 1.125% of the next $50 million of the
average daily net assets and 1.0% of the average daily net assets in excess of
$100 million.
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GINTEL FUND Notes to Financial Statements -- continued June 30, 1995
(Unaudited)
(NOTE E) -- LINE OF CREDIT:
The Fund has a bank line of credit of $15,000,000. Interest is payable at prime.
Loans are collateralized by securities owned by the Fund. At June 30, 1995 the
Fund had no outstanding borrowings.
(NOTE F) -- OTHER MATTERS:
1. Investments
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Unrealized appreciation at June 30, 1995 $ 22,900,367
Unrealized depreciation at June 30, 1995 (2,776,421)
------------
$ 20,123,946
============
FOR THE SIX MONTHS ENDED JUNE 30, 1995
Purchases of securities other than short-term investments $25,689,505
Sales of securities other than short-term investments $27,975,343
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2. Capital Stock: (in shares)
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<CAPTION>
SIX MONTHS YEAR ENDED
ENDED JUNE 30, 1995 DECEMBER 31, 1994
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<S> <C> <C>
Shares issued 83,645 268,160
Shares reinvested -- 58,265
Shares repurchased (831,161) (2,249,761)
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Net decrease (747,516) (1,923,336)
======== ==========
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INVESTMENT STAFF
ROBERT M. GINTEL
Robert Gintel has spent his entire business career in the investment
industry with more than 40 years of experience as a professional investor. Mr
Gintel is Chairman and Chief Executive Officer of Gintel Equity Management, Inc.
He is also Senior Partner and founder of Gintel & Co., a member of the New York
Stock Exchange and associate member of the American Stock Exchange, and Chairman
of the Board and Chief Executive Officer of Gintel Fund and Gintel ERISA Fund.
He holds a B.A. degree from Columbia College and an M.B.A. from the Harvard
Business School. Mr. Gintel has served on the Board of Directors of several New
York Stock Exchange listed corporations and is currently Chairman of the Board
of Oneita Industries, Vice Chairman of the Board of XTRA Corporation, and a
Director of Amtech Corporation. Mr. Gintel has lectured and written articles on
investments and has appeared on Wall Street Week and other television and radio
programs.
CECIL A. GODMAN, III
Mr. Godman joined the Gintel organization in 1985 after spending two
years as a securities analyst with First Tennessee Investment Management, Inc.,
a $1.8 billion asset management subsidiary of First Tennessee National
Corporation. He is a General Partner of Gintel & Co. and a director of Gintel
Equity Management, Inc. Mr. Godman received his B.A. in Business Administration
and Economics from Rhodes College in Memphis in 1982.
EDWARD F. CARROLL
Mr. Carroll joined Gintel Equity Management, Inc. in 1983 and is a
General Partner of Gintel & Co. Previously, Mr. Carroll had his own consulting
firm specializing in global energy issues and was on the staff of the Ford
Foundation, where he was directly responsible for all energy-related
investments. Mr. Carroll's 35-year career includes experience as an analyst with
the Wall Street firms Halle & Steiglitz, Henry Hentz & Company, and E.F. Hutton.
He holds a B.G.S. degree from the University of Connecticut.
<PAGE> 14
GINTEL FUND TRUSTEES AND OFFICERS
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Robert M. Gintel Chairman, Trustee, and Chief Executive Officer
Chairman and Chief Executive Officer, Gintel Equity
Management, Inc.; Senior Partner, Gintel & Co.
Limited Partnership; Chairman and Director, Oneita
Industries; Vice Chairman and Director, XTRA
Corporation; Director, Amtech Corporation; Chairman,
Trustee and Chief Executive Officer, Gintel ERISA Fund.
Thomas H. Lenagh Trustee
Financial Consultant; formerly Chairman and Chief
Executive Officer of Greiner Engineering Co.; Director,
Adams Express Co., USLife Corp., ICN Biomedics, Inc.,
SCI Systems, Inc., Irvine Sensors Corp., CML Inc.,
Clemente Global, Rexhall Inc.; Trustee, Gintel ERISA
Fund.
Francis J. Palamara Trustee
Business Consultant; previously Director and Executive
Vice President of ARA Services, Inc.: formerly
Executive Vice President and Chief Operating Officer of
the New York Stock Exchange, Inc.; Director, Glenmede
Fund, XTRA Corporation; Trustee, Gintel ERISA Fund.
Russel R. Taylor Trustee
Associate Professor of Management and Marketing,
Director of H.W. Taylor Institute of Entrepreneurial
Studies, College of New Rochelle; Founder of Russel
Taylor, Inc.; Trustee, Gintel ERISA Fund.
Stephen G. Stavrides Trustee, President, and Treasurer
President, Gintel Equity Management, Inc.; General
Partner and Chief Operating Officer, Gintel & Co.
Limited Partnership; Trustee, President, and Treasurer,
Gintel ERISA Fund.
Donna K. Grippe Secretary and Assistant Treasurer
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<CAPTION>
INVESTMENT ADVISOR GINTEL GROUP
<S> <C>
Gintel Equity Management, Inc. c/o Mutual Funds Service Company
6 Greenwich Office Park P. O. Box 2798
Greenwich, CT 06831-5197 Boston, MA 02208-2798
203 622-6400 800 344-3092
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