<PAGE>
TO OUR SHAREHOLDERS:
- --------------------------------------------------------------------------------
CGM Capital Development Fund rose 4.4% during the second quarter of 1996
compared to the Standard and Poor's 500 Index which increased 4.5%. For the
first six months of the year, CGM Capital Development Fund posted a gain of
16.8% comparing favorably to the S&P 500 which grew 10.1%.
A year ago the big question was, had the Federal Reserve Board ushered in a
recession, or had it successfully engineered the economy's first "soft landing"
(slowdown without recession)? "Soft landing" was the verdict by year-end when
the economy once again picked up momentum. Additional economic muscle emerged in
the first three months of 1996 and the second quarter of this year was stronger
still. Most second quarter estimates point to a real gain of 4.0%-4.5% in the
Gross Domestic Product. Other manifestations of a continuing economic advance
abound: employment levels have never been higher; profits are at record levels;
and common stock prices have recently driven leading indices to new all-time
highs. In June, an acceleration in the pace of economic growth paired with
continued low unemployment levels resulted in a significant jump in wages which
may re-ignite fears of inflation. A preferable alternative would be slower
economic growth throughout the remainder of the year--perhaps at a rate of 2%
real growth--without a significant hike in interest rates.
The surge in corporate profits in 1995 was dramatic, aided in part by the weak
dollar. This year the dollar has been very strong against the Yen and is rising
somewhat against the German Mark. The combination of slow economic growth and
U.S. currency strength will mean lower quarterly earnings for many companies
compared to last year, though on balance, many sectors continue to do well. We
expect the market to become increasingly selective and are watching interest
rates, which have increased from 6% in January to 7.1% today without deterring
the overall equity market.
CGM Capital Development Fund's largest industry positions are in airlines, oil
service companies and money center banks. The Fund's three largest holdings are
UAL Corporation, Continental Airlines, Inc., and Diamond Offshore Drilling.
/s/ Robert L. Kemp
Robert L. Kemp
President
July 10, 1996
<PAGE>
CGM CAPITAL DEVELOPMENT FUND
- ------------------------------------------------------------------------------
INVESTMENT PERFORMANCE
(unaudited)
- ------------------------------------------------------------------------------
Total Return for Periods Ended June 30, 1996
CGM CAPITAL
DEVELOPMENT S&P 500 THE FUND'S AVERAGE
FUND INDEX ANNUAL TOTAL RETURN
----------- ------- -------------------
10 Years ..................... +399.5% +264.0% +17.5%
5 Years ..................... +171.5 +107.4 +22.1
1 Year ...................... + 39.8 + 26.0 +39.8
3 Months .................... + 4.4 + 4.5 --
The percentage figures for the Fund are based upon the beginning net asset
values of $26.09, $26.10, $24.25 and $30.58, respectively, and the June 30, 1996
net asset value of $31.91 per share assuming the reinvestment of income
dividends, capital gains and paid-in capital distributions during such
respective periods. The S&P 500 Stock Index has also been adjusted for the
reinvestment of income dividends during these periods. Although the S&P 500
Index and the Fund are not directly comparable, the Index is shown because it is
widely used by investors to measure unmanaged stock market performance. When
viewing the Fund's performance, one should keep in mind the Fund's investment
objective and policies, the characteristics and quality of its portfolio
securities, and the periods selected.
The performance data contained in the report represent past performance, which
is no guarantee of future results. The investment return on, and the principal
value of, an investment in the Fund will fluctuate so that investors' shares,
when redeemed, may be worth more or less than their original cost.
<PAGE>
CGM CAPITAL DEVELOPMENT FUND
- ------------------------------------------------------------------------------
BOARD OF TRUSTEES
PETER O. BROWN
NICHOLAS J. GRANT
G. KENNETH HEEBNER
ROBERT L. KEMP
ROBERT B. KITTREDGE
LAURENS MACLURE
JAMES VAN DYKE QUEREAU, JR.
J. BAUR WHITTLESEY
OFFICERS
ROBERT L. KEMP, President
G. KENNETH HEEBNER, Vice President
LESLIE A. LAKE, Vice President and Secretary
KATHLEEN S. HAUGHTON, Vice President
MARTHA I. MAGUIRE, Vice President
W. DUGAL THOMAS, Vice President
MARY L. STONE, Assistant Vice President
FRANK N. STRAUSS, Treasurer
INVESTMENT ADVISER
CAPITAL GROWTH MANAGEMENT LIMITED PARTNERSHIP
Boston, Massachusetts 02110
TRANSFER AND DIVIDEND PAYING
AGENT AND CUSTODIAN OF ASSETS
STATE STREET BANK AND TRUST COMPANY
Boston, Massachusetts 02102
SHAREHOLDER SERVICING AGENT
FOR STATE STREET BANK AND
TRUST COMPANY
BOSTON FINANCIAL DATA SERVICES, INC.
P.O. Box 8511
Boston, Massachusetts 02266-8511
<PAGE>
CGM CAPITAL DEVELOPMENT FUND
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
25 YEAR INVESTMENT RECORD
DECEMBER 31, 1970 -- JUNE 30, 1996 (UNAUDITED)
- ----------------------------------------------------------------------------------------------------------------------------------
IF YOU HAD PURCHASED ONE SHARE OF THE FUND ON DECEMBER 31, 1970
- ----------------------------------------------------------------------------------------------------------------------------------
-- AND HAD TAKEN ALL DIVIDENDS OR -- HAD REINVESTED ALL DIVIDENDS AND CAPITAL
AND DISTRIBUTIONS IN CASH GAINS DISTRIBUTIONS IN ADDITIONAL SHARES
---------------------------------------- ----------------------------------------------------------------------
During the Year
You Would Have Received Which Would Represent
--------------------------- -------------------------------------------
The Value of A Cumulative
The Net Your Original Change
Asset Value Per Share Per Share Investment An Expressed
On of Your Capital Gains Income At Each Annual As An Index With
December Share Would Distributions Dividends Year End Total Return December 31,
31 Have Been of of Would Have Been of 1970 = 100.0
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1970 10.45 100.0
1971 12.55 -- 0.20 12.79 + 22.4 122.4
1972 14.63 -- 0.08 15.03 + 17.5 143.8
1973 12.69 -- 0.08 13.09 - 12.9 125.2
1974 7.78 0.37* 0.14 8.38 - 36.0 80.1
1975 9.35 -- 0.15 10.27 + 22.5 98.1
1976 10.98 -- 0.13 12.23 + 19.1 116.8
1977 10.74 -- 0.18 12.16 - 0.6 116.1
1978 13.05 -- 0.27 15.19 + 24.9 145.0
1979 16.20 -- 0.35 19.35 + 27.4 184.7
1980 20.50 1.65* 0.36 27.65 + 42.9 263.9
1981 17.34 3.38 0.36 28.89 + 4.5 275.8
1982 24.88 2.88 0.41 51.68 + 78.9 493.4
1983 25.21 2.50 0.47 59.74 + 15.6 570.4
1984 17.28 6.15 0.11 54.84 - 8.2 523.6
1985 25.02 -- 0.18 80.18 + 46.2 765.5
1986 23.12 7.46 0.16 102.95 + 28.4 982.9
1987 16.56 10.09 0.14 119.32 + 15.9 1139.2
1988 15.87 0.02 0.62 118.96 - 0.3 1135.8
1989 18.37 -- 0.34 140.25 + 17.9 1339.1
1990 18.53 -- 0.10 142.21 + 1.4 1357.8
1991 25.80 11.07* 0.06 283.14 + 99.1 2703.4
1992 27.43 2.68* 0.20 332.69 + 17.5 3176.5
1993 27.71 7.51 0.07 428.17 + 28.7 4088.2
1994 20.58 0.71 0.07 330.12 - 22.9 3152.0
1995 27.33 1.68 0.02 465.80 + 41.1 4447.5
1996(6/30) 31.91 -- -- 544.05 + 16.8** 5194.7
----- ----- ------
Totals $58.15 $5.25 +5094.7
<FN>
- ----------------------------------------------------------------------------------------------------------------------------------
* Includes $0.15, $0.09, $0.02 and $0.02 per share distributed from paid-in capital.
** Total return for the six months ended June 30, 1996.
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The performance data contained in this report represent past performance,
which is no guarantee of future results. The investment return on, and the
principal value of, an investment in the Fund will fluctuate so that
investors' shares, when redeemed, may be worth more or less than their
original cost.
<PAGE>
CGM CAPITAL DEVELOPMENT FUND
- ------------------------------------------------------------------------------
INVESTMENTS AS OF JUNE 30, 1996
(unaudited)
COMMON STOCKS -- 100.0% OF TOTAL NET ASSETS
SHARES VALUE(A)
------ --------
AIRLINES -- 21.6%
Continental Airlines, Inc.(b) .............. 703,600 $ 43,447,300
Northwest Airlines Corporation(b) .......... 530,000 20,935,000
Trans World Airlines, Inc.(b) .............. 1,110,000 15,817,500
UAL Corporation(b) ......................... 927,200 49,837,000
------------
130,036,800
------------
BANKS -- MONEY CENTER -- 10.9%
Chase Manhattan Corporation ................ 462,000 32,628,750
Citicorp ................................... 400,000 33,050,000
------------
65,678,750
------------
BASIC MATERIALS -- 6.4%
Medusa Corporation ......................... 351,500 10,896,500
National Steel Corporation(b) .............. 510,000 5,546,250
Southdown, Inc. ............................ 947,000 22,254,500
------------
38,697,250
------------
CHEMICALS -- MAJOR -- 1.1%
Rexene Corporation ......................... 665,000 6,566,875
------------
FOOD -- RETAILERS/WHOLESALERS -- 5.9%
Philip Morris Companies, Inc. .............. 340,000 35,360,000
------------
HOUSING AND BUILDING MATERIALS -- 3.6%
Fleetwood Enterprises, Inc. ................ 702,000 21,762,000
------------
LEISURE -- 2.9%
Coachman Industries, Inc. .................. 275,000 9,625,000
Station Casinos, Inc.(b) .................. 535,000 7,690,625
------------
17,315,625
------------
MACHINERY -- 0.6%
Robbins & Myers, Inc. ...................... 80,000 3,560,000
------------
MISCELLANEOUS -- 3.0%
Corrections Corporation America(b) ........ 123,000 8,610,000
NCI Building Systems, Inc.(b) .............. 276,000 9,315,000
------------
17,925,000
------------
See accompanying notes to financial statements
<PAGE>
CGM CAPITAL DEVELOPMENT FUND
- ------------------------------------------------------------------------------
INVESTMENTS AS OF JUNE 30, 1996 (CONTINUED)
(unaudited)
COMMON STOCKS -- (CONTINUED)
SHARES VALUE(A)
------ -------
OFFSHORE DRILLING -- 18.2%
Atwood Oceanics, Inc.(b) .................. 95,000 4,251,250
Diamond Offshore Drilling(b) ............... 669,000 38,300,250
Reading & Bates Corporation(b) ............. 1,460,000 32,302,500
Seacor Holdings, Inc.(b) .................. 412,500 18,459,375
Tidewater, Inc. ............................ 375,000 16,453,125
------------
109,766,500
------------
OIL -- SERVICE -- 10.9%
Halliburton Company ....................... 603,000 33,466,500
Schlumberger LTD ........................... 382,600 32,234,050
------------
65,700,550
------------
RETAIL -- 9.9%
Claire's Stores, Inc. ...................... 995,000 27,486,875
Fila Holdings ADR(c) ....................... 140,000 12,075,000
Kohls Corporation(b) ....................... 552,000 20,217,000
------------
59,778,875
------------
TEXTILE AND APPAREL -- 5.0%
Jones Apparel Group, Inc.(b) ............... 618,600 30,388,725
------------
TOTAL COMMON STOCKS (Identified Cost
$479,766,571) ........................................... 602,536,950
------------
FACE
AMOUNT
SHORT-TERM INVESTMENT -- 0.1% ------
American Express Credit Corp., 5.39% 7/01/96
(Cost $865,000) ............................. $865,000 865,000
------------
TOTAL INVESTMENTS -- 100.1% (Identified
Cost $480,631,571)(d) ...................................... 603,401,950
Cash and Receivables ..................................... 6,033,170
Liabilities .............................................. (6,593,605)
------------
TOTAL NET ASSETS -- 100.0% .................................. $602,841,515
============
(a)See Note 1A.
(b)Non-income producing security.
(c)An American Depository Receipt (ADR) is a certificate issued by a
U.S. bank representing the right to receive securities of the foreign
issuer described. The values of ADRs are significantly influenced by
trading on exchanges not located in the United States or Canada.
(d)Federal Tax Information: At June 30, 1996 the net unrealized appreciation on
investments based on cost of $480,631,571 for Federal income tax purposes was
as follows:
Aggregate gross unrealized appreciation for all
investments in which there is an excess of value
over tax cost ........................................... $133,951,783
Aggregate gross unrealized depreciation for all
investments in which there is an excess of tax cost
over value .............................................. (11,181,404)
------------
Net unrealized appreciation ................................ $122,770,379
============
See accompanying notes to financial statements
<PAGE>
CGM CAPITAL DEVELOPMENT FUND
- ------------------------------------------------------------------------------
STATEMENT OF
ASSETS AND LIABILITIES
June 30, 1996
(unaudited)
ASSETS
Investments at value (Identified
cost -- $480,631,571)....................................... $603,401,950
Cash ........................................................ 3,309
Receivable for:
Securities sold ............................... $5,241,698
Shares of the Fund sold ....................... 256,088
Dividends and interest ........................ 532,075 6,029,861
------------
609,435,120
------------
LIABILITIES
Payable for:
Securities purchased .......................... $5,761,832
Shares of the Fund redeemed ................... 320,433 6,082,265
---------- ------------
Accrued expenses:
Management fees ............................... 349,271
Trustees' fees ................................ 14,390
Accounting and Administration ................. 4,833
Other expenses ................................ 142,846 511,340
---------- ------------
6,593,605
------------
NET ASSETS ................................................... $602,841,515
============
Net Assets consist of:
Capital paid-in ............................................ $414,679,577
Undistributed net investment income ........................ 298,508
Accumulated net realized gain .............................. 65,093,051
Unrealized appreciation on
investments -- net ....................................... 122,770,379
------------
NET ASSETS ................................................... $602,841,515
============
Shares of beneficial interest outstanding,
no par value .............................................. 18,891,611
============
Net asset value per share* .................................. $31.91
============
*Shares of the Fund are sold and redeemed at net asset value
($602,841,515 / 18,891,611).
STATEMENT OF
OPERATIONS
Six Months Ended June 30, 1996
(unaudited)
INVESTMENT INCOME
Income
Dividends (net of withholding tax of $23,992) ............ $ 2,599,734
Interest ................................................. 35,189
------------
2,634,923
------------
Expenses
Management fees .......................................... 2,007,017
Trustees' fees ........................................... 29,000
Accounting and Administration ............................ 29,000
Custodian ................................................ 61,000
Transfer agent ........................................... 120,000
Audit and tax services ................................... 16,500
Legal .................................................... 25,000
Printing ................................................. 25,000
Registration ............................................. 18,000
Miscellaneous ............................................ 5,898
------------
2,336,415
------------
Net investment income .................................... 298,508
------------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS
Realized gain on investments -- net ....................... 65,111,802
Unrealized appreciation -- net ............................ 21,591,602
------------
Net gain on investments ................................... 86,703,404
------------
NET INCREASE IN ASSETS FROM OPERATIONS ....................... $ 87,001,912
============
See accompanying notes to financial statements
<PAGE>
CGM CAPITAL DEVELOPMENT FUND
- ------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31,
(UNAUDITED) 1995
------------- ------------
FROM OPERATIONS
Net investment income ................. $ 298,508 $ 332,275
Net realized gain from investments .... 65,111,802 30,780,337
Unrealized appreciation ............... 21,591,602 127,281,953
------------ ------------
Increase in net assets from
operations ........................ 87,001,912 158,394,565
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income ................. -- (325,671)
Net realized gain on investments ...... -- (30,395,964)
------------ ------------
-- (30,721,635)
------------ ------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares .......... 16,910,959 24,146,671
Net asset value of shares issued
in connection with reinvestment of:
Dividends from net investment
income ............................ -- 284,834
Distributions from net
realized gain ..................... -- 27,239,616
------------ ------------
16,910,959 51,671,121
Cost of shares redeemed ............... (22,319,126) (59,772,451)
------------ ------------
Decrease in net assets derived
from capital share transactions ... (5,408,167) (8,101,330)
------------ ------------
Total increase in net assets .......... 81,593,745 119,571,600
NET ASSETS
Beginning of period ................... 521,247,770 401,676,170
------------ ------------
End of period (including
undistributed net investment
income of $298,508 and $0,
respectively) . .................... $602,841,515 $521,247,770
============ ============
NUMBER OF SHARES OF THE FUND:
Issued from sale of shares ........... 569,530 1,007,187
Issued in connection with
reinvestment of:
Dividends from net investment
income ........................... -- 10,461
Distributions from net realized
gain ............................. -- 996,693
------------ ------------
569,530 2,014,341
Redeemed ........................... (751,837) (2,458,372)
------------ ------------
Net change ......................... (182,307) (444,031)
============ ============
See accompanying notes to financial statements
<PAGE>
CGM CAPITAL DEVELOPMENT FUND
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 1996 -----------------------------------------------------------------
(UNAUDITED) 1995 1994 1993 1992 1991
----------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
For a share of the Fund outstanding throughout each period:
Net asset value at the
beginning of period ........... $27.33 $20.58 $27.71 $27.43 $25.80 $18.53
------ ------ ------ ------ ------ ------
Net investment income ........... 0.02 0.02 0.07 0.07 0.19 0.03
Dividends from net
investment income ............. -- (0.02) (0.07) (0.07) (0.20) (0.06)
Net realized and unrealized
gain (loss) on investments .... 4.56 8.43 (6.42) 7.79 4.32 18.37
Distribution from net
realized gain ................. -- (1.68) (0.69) (7.51) (2.66) (11.05)
Distribution in excess of
net realized gain ............. -- -- (0.02) -- -- --
Distribution from paid-in
capital ....................... -- -- -- -- (0.02) (0.02)
------ ------ ------ ------ ------ ------
Net increase (decrease) in
net asset value ............... 4.58 6.75 (7.13) 0.28 1.63 7.27
------ ------ ------ ------ ------ ------
Net asset value at end of
period ........................ $31.91 $27.33 $20.58 $27.71 $27.43 $25.80
====== ====== ====== ====== ====== ======
Total Return (%) ................ 16.8 41.1 -22.9 28.7 17.5 99.1
Ratios:
Operating expenses to
average net assets (%) ........ 0.83* 0.85 0.84 0.85 0.86 0.88
Net investment income to
average net assets (%) ........ 0.11* 0.07 0.25 0.23 0.79 0.21
Portfolio turnover (%) .......... 175* 271 146 143 163 272
Average commission rate** ....... $0.0665 -- -- -- -- --
Net assets at end of period
(in thousands) ($) ............ 602,842 521,248 401,676 523,775 394,530 325,965
*Computed on an annualized basis.
**SEC regulations require portfolios to disclose the average commission rate
paid on trades for which commissions were charged for fiscal years beginning
on or after September 1, 1995.
</TABLE>
See accompanying notes to financial statements
<PAGE>
CGM CAPITAL DEVELOPMENT FUND
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 1996
(unaudited)
1. The Fund is organized as a Massachusetts business trust under the laws of
Massachusetts pursuant to an Agreement and Declaration of Trust. The Fund is
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The Fund's objective is long-term capital
appreciation. The Fund seeks to attain its objective by investing in the equity
securities of a diverse group of companies and industries.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
financial statements are prepared in conformity with generally accepted
accounting principles which require management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
A. SECURITY VALUATION -- Equity securities are valued on the basis of
valuations furnished by a pricing service, authorized by the Board of
Trustees, which provides the last reported sale price for securities listed
on a national securities exchange or on the NASDAQ national market system
or, if no sale was reported and in the case of over-the-counter securities
not so listed, the last reported bid price. Short-term investments having a
maturity of sixty days or less are stated at amortized cost, which
approximates value.
B. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME -- Security transactions
are accounted for on the trade date (date the order to buy or sell is
executed) and dividend income is recorded on the ex-dividend date. Interest
income is recorded on the accrual basis. Net gain or loss on securities sold
is determined on the identified cost basis.
C. 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 to its shareholders all of its taxable income
and net realized capital gains, within the prescribed time period.
Accordingly, no provision for federal income tax has been made.
D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends and distributions
are recorded by the Fund on the ex-dividend date. The classification of
income and capital gains distributions is determined in accordance with
income tax regulations. Permanent book and tax differences relating to
shareholder distributions may result in reclassifications to paid-in
capital. Undistributed net investment income, accumulated net investment
loss, or distributions in excess of net investment income may include
temporary book and tax differences which will reverse in a subsequent
period. Any taxable income or gain remaining at fiscal year end is
distributed in the following year.
<PAGE>
CGM CAPITAL DEVELOPMENT FUND
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
(unaudited)
2. PURCHASES AND SALES OF SECURITIES - For the six months ended June 30, 1996,
purchases and sales of securities other than United States government
obligations and short-term investments aggregated $492,558,181 and $496,280,743,
respectively. There were no purchases or sales of United States government
obligations.
3. A. MANAGEMENT FEES -- During the six months ended June 30, 1996, the Fund
incurred management fees of $2,007,017 paid or payable to the Fund's
investment adviser, Capital Growth Management Limited Partnership (CGM),
certain officers and directors of which are also officers and trustees of
the Fund. The management agreement between the Fund and CGM provides for a
fee at the annual rate of 0.75% on the first $200 million of the Fund's
average daily net assets, 0.70% of the next $300 million and 0.65% of such
assets in excess of $500 million.
B. OTHER EXPENSES -- CGM performs certain administrative, accounting and
other services for the Fund. The expense of those services, which are paid
to CGM by the Fund, include the following: (i) expenses for personnel
performing bookkeeping, accounting, internal auditing and financial
reporting functions and clerical functions relating to the Fund; (ii)
expenses for services required in connection with the preparation of
registration statements and prospectuses, shareholder reports and notices,
proxy solicitation material furnished to shareholders of the Fund or
regulatory authorities and reports and questionnaires for SEC compliance;
and (iii) registration, filing and other fees in connection with
requirements of regulatory authorities. The Accounting and Administration
expense of $29,000 is shown separately in the financial statements.
C. TRUSTEES FEES AND EXPENSES -- The Fund does not pay any compensation
directly to its officers or to any trustees who are directors, officers or
employees of CGM, or any affiliate of CGM, (other than registered
investment companies). Each other trustee is compensated by the Fund with
an annual base fee of $3,000 plus travel expenses for each meeting
attended and an annual variable fee calculated based on the proportion of
the Fund's average net assets to the aggregate average net assets of the
CGM Funds, which for 1996 is $6,093. In addition, the Chairman of the
Independent Trustees Committee receives an annual retainer of $1,500.
<PAGE>
INVESTMENT ADVISER
CAPITAL GROWTH MANAGEMENT
LIMITED PARTNERSHIP
Boston, Massachusetts 02110
- ------------------------------------------------------------------------------
TELEPHONE NUMBERS
For information about:
[] Account Procedures and Status
[] Redemptions
[] Exchanges
Call 800-343-5678
[] New Account Procedures
[] Prospectuses
[] Performance
Call 800-345-4048
- ------------------------------------------------------------------------------
MAILING ADDRESSES
FOR EXISTING ACCOUNTS
Boston Financial Data Services
P.O. Box 8511
Boston, MA 02266-8511
FOR NEW ACCOUNT APPLICATIONS ONLY
The CGM Funds
P.O. Box 449
Boston, MA 02117-0449
- ------------------------------------------------------------------------------
This report has been prepared for the shareholders of the Fund and is not
authorized for distribution to current or prospective investors in the Fund
unless it is accompanied or preceded by a prospectus.
CQR2 Printed in U.S.A.
CGM
CAPITAL
DEVELOPMENT
FUND
140th Quarterly Report
June 30, 1996
A No-Load Fund
[FENCER LOGO]
Investment Adviser
CAPITAL GROWTH MANAGEMENT
Limited Partnership
