GREENSPRING FUND,
INCORPORATED
SEMI-ANNUAL REPORT
JUNE 30, 1997
This report is authorized for distribution
only to shareholders who have received a
copy of the official Prospectus of the
Greenspring Fund, Incorporated.
<PAGE>
July 1997
Dear Shareholders:
The second quarter of 1997 was a remarkable one for the equity
markets. The quarter began in the throes of a downturn that caused some market
participants to believe the bull market that had begun in 1982 might finally be
ending. As the quarter progressed, however, it became increasingly apparent
that Federal Reserve policy makers would not be implementing a series of
interest rate hikes following the quarter-percent boost made in March of 1997.
This realization relaxed investors' fears of higher interest rates and provided
the fuel for the stock market to ignite and move higher during the remainder of
the second quarter. According to Lipper Analytical Services, the average equity
mutual fund gained 15.4% during the quarter. This gain was considerably more
than the stock market has advanced in an average year and made the second
quarter of 1997 the best performing quarter since the first three months of
1991.
The Greenspring Fund also performed strongly during the second
quarter with a gain of 8.9%. When combined with our positive performance in
the first quarter of the year, a period during which the average equity
mutual fund declined by 2%, our absolute performance numbers for the first
six months of 1997, as well as the most recent twelve months, are very good.
During these time periods, assuming the reinvestment of dividends and
distributions, the Greenspring Fund has achieved returns of 12.4% and 28.2%,
respectively. This performance exemplifies the Greenspring Fund's ability to
preserve capital during difficult market conditions, and to provide solid
investment returns during favorable market environments. As always, the Fund's
performance was achieved while subjecting our shareholders to well-below-average
risk and volatility. We strongly believe our investment philosophy will allow
for continued strong performance even if the stock market's recent volatility
continues due to the growing emergence of a two-tiered stock market that we
describe below.
In our view, the stock market has recently become stratified into two
distinct tiers. One tier consists of the more actively-traded, easily
recognizable, large capitalization stocks, such as those found in the Dow Jones
Industrial Average ("DJIA") and the Standard & Poor's 500 Index ("S&P 500").
A second tier consists of the smaller capitalization, less actively-traded,
less familiar securities, such as those found in the Russell 2000 Index or
the Wilshire 5000 Index.
<PAGE>
Thus far in 1997, the performance of tier-one securities has been
generally stronger than that of tier-two stocks. The DJIA and the S&P 500 have
gained approximately 20%, including dividends, while tier-two securities, as
measured by the "Small Cap" mutual funds in Lipper Analytical Services'
database, posted a total return gain of 9%. The current economic environment,
which features low interest rates, subdued inflation and a steadily growing
economy, benefits both tier-one and tier-two companies. However, the
popularity of index funds (mutual funds that passively invest their assets in
the stocks that allow the funds to closely mirror the performance of a certain
index, often the S&P 500) has significantly favored the performance of tier-one
securities during the first half of 1997, as well as in the last several years.
Portfolio managers of index funds have a mandate to invest their assets
in certain stocks. In order for an index fund to mirror its target index as
closely as possible, the portfolio manager immediately purchases stocks when
money is deposited in the fund, regardless of the level of the market or the
economic outlook. The resulting increased demand for stocks helps to drive
the prices of securities higher. Tier-one securities have benefitted from this
flow of funds toward index funds to a much greater extent than tier-two
securities. The extent to which this trend has provided stronger demand for
tier-one stocks versus tier-two stocks is illustrated by the following
comparison. As of June 30, 1997, total assets in the Vanguard S&P 500 Index
Fund had ballooned to more than $39 billion, making it the second largest
mutual fund in the country. This is an increase of $15 billion
over the Fund's asset base as of June 30, 1996. In contrast, the Vanguard
Extended Market Index Fund, which tracks the Wilshire 4500 (the Wilshire 5000
Index less the S&P 500 stocks), had grown its assets by a "mere" $700 million
over the same period and ended the quarter with only $2.4 billion in assets!
This example, representing just one investment company, illustrates the
tremendous amount of money that has been mindlessly "invested" in tier-one
stocks by portfolio managers who have no alternative but to make those
investments. Whether or not a fundamental basis exists for these stock
purchases, the result is an increase in demand for such stocks, which has
helped to boost the performance of these securities.
The two-tiered market is reminiscent of the "nifty-fifty" or "one-decision
stock" mentality of the early 1960's, a period during which the glamorous stocks
of the time, such as Avon, Xerox, and Polaroid, were bid up to stratospheric
levels, as investors were eager to buy stocks (with no intention of ever
selling) before stock prices went higher. Eventually, the value of a company
as a business became disconnected from its stock market valuation, although
"nifty-fifty" investors were attempting to purchase high-growth securities at
what they believed were reasonable valuations. The disconnection between
business value and stock market value that is occurring today in tier-one stocks
is even more disconcerting because today's investors in index funds are usually
not even attempting to make a judgment about the fundamental basis of their
investments. Instead, they are lured by aggressive marketing campaigns touting
the recent performance success of these popular funds and the simplistic
mantra that "over the long run stocks have historically outperformed other asset
classes." Most such investors are unaware of the fact that, after the harsh
bear markets that followed a period of euphoria in the 1960's, it took
more than twenty years for the purchasers of many "nifty-fifty" stocks to get
back to break-even.
<PAGE>
Despite the fact that the Greenspring Fund's investment philosophy
typically leads us to tier-two securities, our investment performance has been
excellent, far exceeding the performance of "Small Cap" mutual funds. By
focusing on fundamental research and hard-core value securities, we avoid
stocks whose prices have been elevated by speculative forces and the "herd"
mentality. The performance of tier-two stocks has been influenced more by
company-specific business developments than by market forces. Consequently,
tier-two securities have had more measured, less speculative, increases in
stock prices and trade at more rational valuation levels. Stocks that are
valued based upon their individual merits will fare much better in a market
downturn than stocks that have been pushed to extreme valuations simply because
they are in a popular index. Furthermore, we believe it is a lot easier to
sleep at night owning a mutual fund whose stocks are firmly supported by
underlying fundamentals than a mutual fund whose future performance could be
harshly affected if a horde of trendy investors decides to pull out of index
funds to chase the next investment fad.
Despite our reservations about the overvaluation of many large
capitalization securities, the economic fundamentals of the overall financial
markets remain excellent and we continue to uncover investments that meet our
"value with a catalyst," free-cash flow, or workout criteria. Investing
principally in tier-two securities, the Greenspring Fund has achieved very
strong and steady performance during the last year, and we are confident that
we will continue to provide excellent returns during the balance of this year.
We look forward to presenting the Fund's results as the year progresses.
Respectfully,
Charles vK. Carlson
President
<PAGE>
GREENSPRING FUND, INCORPORATED
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997
(UNAUDITED)
COMMON STOCKS (63.64%)
Shares Value
Banking (9.85%)
600 *Bank Plus Corp. $ 6,525
31,000 BostonFed Bancorp, Inc. 548,312
49,400 Charter Financial, Inc. 876,850
18,000 Chase Manhattan Corp. 1,747,125
14,575 CitiSave Financial Corp. 295,144
15,000 *Coast Savings Financial, Inc. 681,562
25,000 Columbia Bancorp, Inc. 596,875
89,728 Crestar Financial Corp. 3,488,176
50,000 DimeBancorp, Inc. 875,000
34,000 GA Financial, Inc. 646,000
10,000 Mercantile Bankshares Corp. 400,000
33,000 *PFF Bancorp, Inc. 618,750
21,100 PS Financial, Inc. 305,950
44,760 Patriot Bank Corp. 777,705
16,500 Rocky Ford Financial Corp. 224,812
28,600 Statewide Financial Corp. 514,800
2,500 Wells Fargo & Company 673,750
13,277,336
Business Services (1.68%)
170,900 *Credit Management Solutions, Inc. 2,264,425
2,264,425
<PAGE>
GREENSPRING FUND, INCORPORATED
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997
(UNAUDITED)
COMMON STOCKS (CON'T)
Shares Value
Consumer Products/Services (4.91%)
52,400 *American Safety Razor $ 949,750
415,200 *BEC Group 1,868,400
243,000 *Eagle Food Centers, Inc. 1,458,000
36,600 First Brands Corporation 839,512
19,900 Genesee Corporation Class B 791,025
60,000 *Host Marriott Services 705,000
6,611,687
Defense (.85%)
11,000 Lockheed Martin Corp. 1,139,188
1,139,188
Electric Power (.19%)
17,500 *NRG Generating, Inc. 253,750
253,750
Entertainment (.96%)
200,000 *Colonial Downs Holdings, Inc. 1,300,000
1,300,000
Environmental Services (5.00%)
121,100 Alliance Global Environmental Fund 1,930,031
417,774 *ATC Group Services, Inc. 4,804,401
6,734,432
<PAGE>
GREENSPRING FUND, INCORPORATED
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997
(UNAUDITED)
COMMON STOCKS (CON'T)
Shares Value
Financial Services (9.29%)
300,900 Criimi Mae Inc. $ 4,814,400
68,500 *ITLA Capital Corp. 1,113,125
332,400 *Long Beach Financial Corp. 2,908,500
125,300 Ocwen Asset Investment Corp. 2,537,325
35,000 *Ocwen Financial, Inc. 1,141,875
12,515,225
Healthcare Products/Services (.63%)
69,700 *Mediq, Inc. 614,231
15,071 *VWR Scientific 237,368
851,599
Insurance (4.90%)
75,000 PartnerRe Holdings, Ltd. 2,859,375
51,208 Reliastar Financial Corp. 3,744,585
6,603,960
Manufacturing (11.30%)
11,300 C & D Technologies, Inc. 423,750
115,300 *Figgie International 1,455,663
69,600 *Figgie International Class A 957,000
278,300 *Griffon Corporation 3,809,231
55,200 *Middleby Corp. 510,600
421,000 UNR Industries, Inc. 2,894,375
110,000 *U.S. Industries, Inc. 3,918,750
35,000 Woodward Governor Company 1,260,000
15,229,369
<PAGE>
GREENSPRING FUND, INCORPORATED
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997
(UNAUDITED)
COMMON STOCKS (CON'T)
Shares Value
Media (1.50%)
100,000 *US West Media Group $ 2,025,000
2,025,000
Natural Resources (5.59%)
339,917 *Castle Energy Corp. 4,546,390
33,200 *Norex Industries, Inc. 531,200
49,365 Penn Virginia Corp. 2,418,885
3,900 United States Lime & Minerals 35,588
7,532,063
Real Estate (4.60%)
288,000 Mark Centers Trust 2,772,000
222,445 The Town and Country Trust 3,420,092
6,192,092
Companies in Liquidation (2.39%)
93,811 *Atlantic Realty Trust 1,102,279
564,300 *EQK Realty Investors 1 705,375
581,450 *Hi Shear Industries, Inc. 1,416,994
3,224,648
Total Common Stocks (Cost $63,197,508) 85,754,774
<PAGE>
GREENSPRING FUND, INCORPORATED
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997
(UNAUDITED)
PREFERRED STOCKS (6.63%)
Shares/
Principal
Amount Value
Convertible Pfd. Stocks (3.70%)
374,200 Live Entertainment, Series B $ 3,683,550
54,500 Prime Retail, Inc. 1,301,188
Total Convertible Pfd. Stocks 4,984,738
Non-Convertible Pfd. Stocks (2.93%)
1,000 +Bank United Capital, 10.25%, Series A 995,000
14,500 Illinois Power Company, Adj. Rate Pfd.,
Series A 706,875
94,500 *River Bank America $3.75, Series A 2,244,375
Total Non-Convertible Pfd. Stocks 3,946,250
Total Pfd. Stocks (Cost $7,944,301) 8,930,988
BONDS (17.14%)
Convertible Bonds (9.28%)
$1,500,000 Alexander Haagen Properties, Inc.
7.50%, 1/15/01 1,454,062
2,000,000 Bell Sports Corp., 4.25%, 11/15/00 1,699,166
5,000,000 Corporate Express, Inc., 4.50%, 7/1/00 4,462,500
1,176,000 Kelley Oil & Gas Partners, Ltd.,
8.50%, 4/1/00 1,146,600
685,000 Kelley Oil & Gas Partners, Ltd.,
7.875%, 12/15/99 655,888
<PAGE>
GREENSPRING FUND, INCORPORATED
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997
(UNAUDITED)
BONDS (CON'T)
Principal
Amount Value
Convertible Bonds (Con't)
$ 500,000 Liberty Properties Limited Partnership,
8.00%, 7/1/01 $ 621,250
3,000,000 +Physicians Resource Group,
6.00%, 12/1/01 2,471,250
Total Convertible Bonds 12,510,716
Non-Convertible Bonds (7.52%)
1,500,000 B.F. Saul Real Estate Investment Trust,
11.625%, 4/1/02 1,603,125
1,000,000 Figgie International, 9.875%, 10/1/99 1,043,750
1,000,000 +Life Savings Bank, 13.50%, 3/15/04 1,000,000
1,742,700 Live Entertainment, 12.00%, 3/23/99 1,747,057
1,904,000 Mattel, Inc., 10.125%, 8/15/02 1,980,160
400,000 Ocwen Financial, 11.875%, 10/1/03 436,500
1,237,000 UNC Inc., 9.125%, 7/15/03 1,302,716
1,000,000 U.S. Treasury, 7.125%, 9/30/99 1,020,781
Total Non-Convertible Bonds 10,134,089
Bonds in Reorganization (.34%)
2,900,000 *Lomas Mortgage, 10.25%, 10/1/02 464,000
Total Bonds in Reorganization 464,000
Total Bonds (Cost $21,473,232) 23,108,805
<PAGE>
GREENSPRING FUND, INCORPORATED
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997
(UNAUDITED)
SHORT-TERM INVESTMENTS (12.46%)
Principal
Amount Value
Commercial Paper (8.91%)
$ 6,000,000 Amercian Express Credit Corp.,
5.53%, 7/1/97 $ 6,000,000
6,000,000 General Electric Credit Corp.,
5.54%, 7/8/97 6,000,000
Total Commercial Paper 12,000,000
Other Short-Term Investments (3.55%)
Rodney Square Money Market 4,784,091
Total Other Short-Term Investments 4,784,091
Total Short-Term Investments (Cost $16,784,091) 16,784,091
Total Investments in Securities (99.87%)
(Cost $109,399,132) 134,578,658
Other Assets Less Liabilities (.13%) 173,129
Total Net Assets (100%) $134,751,787
*Non-income producing securities
+144A securities, representing 3.31% of net assets
<PAGE>
GREENSPRING FUND, INCORPORATED
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1997
(UNAUDITED)
ASSETS
Investments, at market value (Cost $109,399,132) $134,578,658
Receivable for Fund shares sold 734,457
Interest receivable 555,578
Receivable for securities sold 467,335
Dividends receivable 161,043
Cash 98,677
Purchased interest 93,280
Prepaid expense 28,316
Total Assets 136,717,344
LIABILITIES
Payable for securities purchased 1,823,215
Due to investment advisor 83,777
Accrued expenses 32,455
Payable for Fund shares repurchased 26,110
Total Liabilities 1,965,557
NET ASSETS
Capital stock, $.01 par value, authorized
30,000,000 shares, outstanding, 6,957,181 $134,751,787
NET ASSETS CONSIST OF:
Capital stock at par value 69,572
Paid in capital 103,604,343
Undistributed net investment income 2,876,878
Undistributed net realized gains 3,021,468
Net unrealized appreciation of investments 25,179,526
Net Assets $134,751,787
NET ASSET VALUE PER SHARE $ 19.37
The accompanying notes are an integral part of these financial statements.
<PAGE>
GREENSPRING FUND, INCORPORATED
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997
(UNAUDITED)
INVESTMENT INCOME
Income
Dividend $ 983,700
Interest 1,550,463
Total Income $2,534,163
Expenses
Investment advisory fees 431,158
Administrative 43,841
Registration fees 25,756
Transfer agent fees 24,209
Custodian fees 16,730
Filing fees 10,613
Professional fees 6,662
Reports to shareholders 5,710
Directors fees 4,100
Fidelity bond 1,377
Total Expenses 570,156
Net Investment Income 1,964,007
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS
Net realized gain on investments 2,733,934
Net change in unrealized appreciation of investments 8,500,204
Net Realized and Unrealized Gain on Investments 11,234,138
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $13,198,145
The accompanying notes are an integral part of these financial statements.
<PAGE>
GREENSPRING FUND, INCORPORATED
STATEMENTS OF CHANGES IN NET ASSETS
Six Months
Ended Year Ended
June 30, December 31,
1997 1996
(Unaudited)
OPERATIONS:
Net investment income $ 1,964,007 $ 2,863,535
Net realized gain/loss from investments 2,733,934 3,697,949
Net change in unrealized appreciation of
investments 8,500,204 9,422,762
Net increase in net assets resulting from
operations 13,198,145 15,984,246
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income - (2,789,842)
Net realized gain on investments - (2,752,675)
Net decrease in net assets from
distributions to shareholders - (5,542,517)
CAPITAL STOCK TRANSACTIONS:
Sale of 2,513,942 and 1,319,471 shares 45,654,304 21,518,835
Distributions reinvested of 0 and
317,469 shares - 5,231,782
Redemptions of 865,220 and 1,102,859 shares (15,592,316) (17,539,787)
Increase in net assets from capital stock
transactions 30,061,988 9,210,830
TOTAL INCREASE IN NET ASSETS 43,260,133 19,652,559
NET ASSETS AT BEGINNING OF PERIOD 91,491,654 71,839,095
NET ASSETS AT END OF PERIOD $134,751,787 $91,491,654
The accompanying notes are an integral part of these financial statements.
<PAGE>
GREENSPRING FUND, INCORPORATED
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997
(UNAUDITED)
Note 1 - Significant Accounting Policies
Greenspring Fund, Incorporated ("the Fund") is a diversified open-end management
investment company registered under the Investment Company Act of 1940, as
amended.
The preparation of the financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
Investment transactions and related investment income - Investment transactions
are recorded on the trade date. Dividend income is recorded on the ex-dividend
date and interest income is recorded on the accrual basis. Dividends determined
to be a return of capital are recorded as a reduction of the cost basis of the
security. Realized gains and losses from investment transactions and unrealized
appreciation and depreciation of investments are reported on an identified
cost basis.
Valuation of investments - Securities listed on a national securities exchange
or the NASDAQ National Market are valued at the last reported sale price on the
exchange of major listing as of the close of the regular session of the New York
Stock Exchange (currently 4:00 P.M. Eastern Standard Time).
Securities which are traded principally in the over-the-counter market, listed
securities for which no sale was reported on the day of valuation, listed
securities for which the last reported sale price is not in the context of the
highest closing bid price and the lowest closing offering price, and listed
securities whose primary market is believed by the Advisor to be over-the-
counter are valued at the mean of the closing bid and asked prices obtained
from sources that the Advisor deems appropriate.
Short-term investments are valued at amortized cost which approximates fair
market value. The value of securities that mature, or have an announced call,
within 60 days will be amortized on a straightline basis from the market value
one day preceding the beginning of the amortization period.
Securities for which market quotations are not readily available are valued at
fair value as determined in good faith by the Advisor as directed by the Board
of Directors.
<PAGE>
GREENSPRING FUND, INCORPORATED
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1997
(UNAUDITED)
Note 1 - Significant Accounting Policies (Con't)
Income Taxes - It is the policy of the Fund to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies.
Accordingly, the Fund intends to distribute substantially all of its taxable
income. Therefore, no federal income tax provision is required. In order for
the Fund's capital accounts and distributions to shareholders to reflect the
tax character of certain transactions, reclassifications were made during the
period. The net results of operations and net assets were not affected by the
reclassifications.
Dividends and distributions to stockholders - The Fund records dividends and
distributions to stockholders on the ex-dividend date.
Redemption of capital stock - A stockholder may request redemption of some or
all of his shares on any day that the New York Stock Exchange is open for
business. The redemption price per share is the net asset value per share as
of the close of business on the day that the redemption request is received
by the Fund. Payment for shares will be made within seven days after receipt
of the redemption request.
Note 2 - Dividends and Distributions of 1997 Taxable Earnings
It is the Fund's policy to declare dividends from net investment income and
distributions from net realized gains as determined in accordance with income
tax regulations which may differ from generally accepted accounting principles.
These dividends are either distributed to shareholders or reinvested by the
Fund in additional shares of common stock, which are issued to stockholders.
For those reinvesting the dividend, the number of shares issued is based on
the net asset value per share as of the close of business on the business day
previous to the payment date.
Note 3 - Purchases and Sales of Investments
For the six months ended June 30, 1997, purchases and sales of investments,
other than short-term investments, aggregated $53,187,237 and $29,990,365,
respectively.
For federal income tax purposes, the cost of investments owned at June 30, 1997
was $109,399,132. Net unrealized appreciation of such investments aggregated
$25,179,526, which was composed of appreciation of $27,048,126 for those
securities having an excess of value over cost, and depreciation of $1,868,600
for those securities having an excess of cost over value.
<PAGE>
GREENSPRING FUND, INCORPORATED
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1997
(UNAUDITED)
Note 4 - Investment Advisory Agreement and Related Party Transactions
The Fund's investment advisor, Key Equity Management Corporation ("Key
Equity"), is a wholly-owned subsidiary of Corbyn Investment Management. Under
an agreement between the Fund and Key Equity, the Fund pays Key Equity a
monthly fee at an annual rate of .75% of the Fund's month-end net assets. The
Fund's total expenses, excluding interest, taxes, brokerage commissions and
extraordinary expenses, may not exceed 1.5% of average daily net assets
(1% of average daily net assets in excess of $30,000,000). Investment advisory
fees incurred for the six months ended June 30, 1997 were $431,158. At June 30,
1997, investment advisory fees payable amounted to $83,777.
Certain of the Fund's officers and directors are also officers and directors of
Key Equity and Corbyn Investment Management. At June 30, 1997, investors for
whom Corbyn Investment Management was investment advisor held 1,201,768 shares
of the Fund's common stock.
<PAGE>
GREENSPRING FUND, INCORPORATED
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
(Unaudited)
For the six
months ended
June 30,
1997 1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 17.24 $ 15.05 $ 13.39 $ 13.96 $ 13.78 $ 12.91
Income From Investment Operations
Net Investment Income 0.24 0.60 0.70 0.51 0.40 0.51
Net Realized and Unrealized Gain/Loss on Investments 1.89 2.74 1.78 (0.12) 1.59 1.59
Total From Investment Operations 2.13 3.34 2.48 0.39 1.99 2.10
Less Distributions
Net Investment Income - (0.59) (0.68) (0.51) (0.40) (0.51)
Net Realized Gain on Investments - (0.56) (0.07) (0.45) (1.41) (0.72)
Distributions in Excess of Net Realized Gains - ( - ) (0.07) ( - ) ( - ) ( - )
Total Distributions - (1.15) (0.82) (0.96) (1.81) (1.23)
Net Asset Value, End of Period $ 19.37 $ 17.24 $ 15.05 $ 13.39 $ 13.96 $ 13.78
Total Return 12.36% 22.65% 18.79% 2.83% 14.65% 16.52%
Ratios/Supplemental Data
Net Assets, End of Period (000's) $134,752 $ 91,492 $ 71,839 $ 50,322 $ 29,885 $ 20,004
Ratio of Expenses to Average Net Assets 1.02%* 1.04% 1.06% 1.27% 1.31% 1.48%
Ratio of Net Investment Income to Average Net Assets 3.50%* 3.74% 4.97% 4.03% 2.78% 3.68%
Portfolio Turnover 29.70% 60.74% 65.19% 76.55% 121.79% 100.17%
Average Commission Paid Per Share $ 0.0505 $ 0.0477 - - - -
*Annualized
</TABLE>
<PAGE>
GREENSPRING FUND, INCORPORATED
PERFORMANCE SINCE INCEPTION
HOW $10,000 INVESTED ON 7/1/83
WOULD HAVE GROWN*
(GRAPH)
7/83 $10,000.00
12/83 11,223.00
12/84 12,691.50
12/85 15,238.00
12/86 17,127.10
12/87 19,303.70
12/88 22,389.30
12/89 24,761.70
12/90 23,149.94
12/91 27,626.00
12/92 32,190.40
12/93 36,905.90
12/94 37,951.70
12/95 45,081.70
12/96 55,291.30
6/97 62,123.00
*Figures include changes in principal value, reinvested dividends, and capital
gain distributions. Cumulative total return represents past performance. Past
expense limitations increased the Fund's return. Investment returns and
principal value will vary and shares will be worth more or less at redemption
then at original purchase.
Average annual total returns for the one, five and ten year periods ended
June 30, 1997 were 28.18%, 16.57% and 11.95%, respectively. Average annual
returns for more than one year assume a compounded rate of return and are not
Fund's year-by-year results, which fluctuated over the periods shown.
<PAGE>
Greenspring Fund, Incorporated
2330 West Joppa Road, Suite 110
Lutherville, MD 21093
(410) 823-5353
(800) 366-3863
DIRECTORS
Charles vK. Carlson, Chairman
William E. Carlson
David T. Fu
Michael J. Fusting
Michael T. Godack
Richard Hynson, Jr.
OFFICERS
Charles vK. Carlson
President and Chief Executive Office
Michael T. Godack
Sr. Vice President and Secretary
Michael J. Fusting
Vice President, Treasurer, and Chief
Financial Officer
INVESTMENT ADVISOR
Key Equity Management Corporation
2330 West Joppa Road, Suite 108
Lutherville, MD 21093-7207
TRANSFER AGENT
Rodney Square Management Corporation
1105 North Market Street, Third Floor
Wilmington, DE 19890
(800) 576-7498
CUSTODIAN
Wilmington Trust Company
1100 North Market Street
Wilmington, DE 19890
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P.
217 East Redwood Street
Baltimore, MD 21202-3316
LEGAL COUNSEL
DeMartino Finkelstein Rosen & Virga
1818 N Street, N.W.
Washington, DC 20036-2492
