LETTER TO SHAREHOLDERS
Dear Fellow Shareholder:
For the six months ended March 31, 1995, the portfolio of Dreyfus Capital
Value Fund (A Premier Fund) was positioned very defensively. Our strategy
attempted to maximize total return by investing in instruments which we
believed would benefit in case the stock and bond markets experienced a
downturn. We continue to hold gold shares, Deutschmark and Swiss franc notes,
and short positions on individual equities, as well as options and futures
which should appreciate if financial assets decline.
While the Fund's gold and nondollar securities have generally added to
the portfolio's performance, the stock market's general advance has continued
to be a drag on the Fund's total return, especially during March 1995.
The total return of the Fund's Class A Shares and B Shares for the
semi-annual reporting period were -2.55% and -2.91%, respectively.* This
compared to 9.71% for the Standard & Poor's 500 Composite Stock Price Index
and 9.73% for the Dow Jones Industrial Average.**
The following discussion briefly outlines our rationale for investing in
an extremely defensive manner. The market is selling at the lowest yield
level seen this century, and has sustained this level for the longest
duration in that time period. We believe that at these valuation levels,
virtually all the good news has already been discounted, and the market is
vulnerable to substantial declines. Often, such high valuations have been
characterized by a great deal of public participation through mutual funds
and the eagerness of corporations to issue new shares. The public
participation is driven by a desire to replicate past performance with little
or no understanding of the additional risk which is implied in sharply rising
markets. Corporations see high valuations as the equivalent of a low cost of
capital and, thus, become aggressive issuers. The supply/demand for any asset
is usually dominated by excessive demand after a period of high returns but,
when the market perception changes to recognize the reality of lower returns,
the former buyers become heavy sellers, the equation shifts to the supply
side, and the market declines.
Over the past three decades, with one exception, selling opportunities
arose whenever the yields of Treasury bills exceeded twice what stocks were
yielding. Today, Treasury bills are yielding more than 6% while stocks yield
under 3%. Hence, we deem cash to be a relatively attractive asset class at
the moment. This conflicts with the popular view that "cash is trash". In
many ways, we see today's excesses in financial assets as similar to those
preceding the collapses in farmland, energy, real estate, and the Japanese
stock market.
The dollar, in our opinion, will come under even more pressure as
investors begin to question the attractiveness of investing in U.S.
securities. Presently, the dollar's weakness reflects a de-leveraging of the
U.S. international investment position, which is characterized by a glut of
dollar assets being held by foreigners. Our consistent trade deficits have
resulted in a U.S. external debt position in excess of $1 trillion. The
combination of U.S. and foreign investors' efforts to diversify their investme
nts away from the dollar has uncovered this imbalance, forcing the dollar
lower.
We view gold as an alter ego to financial assets. Gold bullion is now as
cheap compared to financial assets as it's been in more than 20 years. In
addition, central planners around the world appear to be yielding to
political pressure for growth in deference to maintaining the value of their
currencies. To highlight how grossly undervalued we believe gold shares are,
consider that the market capitalization of the whole gold industry
approximates that of a single large growth stock such as Coca-Cola. We
consider that the structural imbalances between the real economy and the
financial markets (as measured by the debt to GDP ratio), in addition to the
massive trade imbalances over the last decade, make the probability of a
worldwide financial meltdown more likely. Gold tends to perform well during
such periods of uncertainty.
We have held these market views for some time, but events have not
unfolded as quickly as we had expected. Still, we are firmly convinced that
today's financial asset bubble cannot continue expanding. We expect deflation
to occur with tumultuous results. Therefore, we currently plan to continue
investing the shareholders' funds entrusted to us in the same defensive
manner as in the recent past.
Sincerely,
Comstock Partners, Inc.
Investment Policy Committee
April 17, 1995
New York, N.Y.
* Total return represents the change during the period in a hypothetical
account with dividends reinvested, without taking into account the
maximum initial sales charge in the case of Class A Shares, or the
applicable contingent deferred sales charge imposed on redemptions in the
case of Class B Shares.
** 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 U.S. stock market performance.
DREYFUS CAPITAL VALUE FUND (A Premier Fund) MARCH 31, 1995
BROAD SECTOR ALLOCATION
(Exhibit A)
Convertible Bond (1.2%)
Put Options (2.0%)
Other Common Stocks (4.2%)
Other Metals (6.7%)
Gold Mining (27.6%)
Bonds (30.6%)
Cash Equivalents (27.7%)
(Exhibit B)
Restaurants (1.0%)
Health Care (1.4%)
Retail (1.4%)
Others (3.6%)
Consumers (5.5%)
Finance (8.2%)
LONG POSITIONS STOCKS SOLD SHORT
Sector allocations in the pie chart are broader groupings than are listed in
the Report's Statement of Investments.
ASSET ALLOCATION
LONG SHORT*
Common Stocks................ 38.5% Common Stocks................. 21.1%
Bonds........................ 30.6
Cash Equivalents............. 27.7
Put Options.................. 2.0
Convertible Bond............. 1.2
-------
100.0%
* Note that the Put Options held in the long position expand the Fund's
effective short exposure to over fifty percent.
TEN LARGEST POSITIONS
LONG SHORT
German Securities; Bundesrepublik Dean Witter, Discover & Co.... 0.9%
Deutschland, 8.50%, 4/22/1996. 10.6% T. Rowe Price Associates...... 0.8
Newmont Mining............... 7.3 Kansas City Southern Industries. 0.8
Austrian Securities; Republic General Mills................. 0.7
of Austria, 4.50%, 2/12/2000. 6.6 Philip Morris................. 0.7
German Securities; Bundesrepublik Burlington Northern........... 0.7
Deutschland, 9%, 10/20/2000. 4.5 U.S. HealthCare............... 0.7
Freeport-McMoRan
Copper & Gold, Cl. A........ 4.4 Kellogg....................... 0.7
Placer Dome.................. 4.3 Home Depot.................... 0.7
Homestake Mining............. 3.6 Chase Manhattan............... 0.6
German Securities; Bundesrepublik
Deutschland, 8.875%, 12/20/2000.3.3
Danish Securities; Kingdom of
Denmark, 4.25%, 9/30/1999... 3.0
Ashanti Goldfields........... 2.7
All percentages shown above are based on Total Net Assets.
Portfolio composition is subject to change.
<TABLE>
<CAPTION>
DREYFUS CAPITAL VALUE FUND (A Premier Fund)
STATEMENT OF INVESTMENTS MARCH 31, 1995 (UNAUDITED)
COMMON STOCKS-38.5% SHARES VALUE
-------------- --------------
<S> <C> <C> <C>
BASIC INDUSTRIES-35.2%
Agriculture-.9% IMC Global................................. 85,000 $ 4,154,375
--------------
Gold Mining-27.6% Amax Gold...............................(a) 225,500 1,324,813
Ashanti Goldfields......................(b) 450,000 11,418,750
Barrick Gold............................... 351,200 8,780,000
Battle Mountain Gold....................... 215,000 2,580,000
Cambior.................................... 150,000 1,702,109
Hecla Mining............................(a) 313,500 3,605,250
Homestake Mining........................... 844,800 15,628,800
Newmont Gold............................... 200,000 8,275,000
Newmont Mining............................. 731,000 31,250,250
Pegasus Gold............................(a) 150,000 1,837,500
Placer Dome................................ 766,400 18,681,000
Royal Oak Mines.........................(a) 400,000 1,325,000
Santa Fe Pacific Gold...................(a) 717,082 9,053,160
TVX Gold................................(a) 467,000 3,093,875
--------------
118,555,507
--------------
Metals-6.7% ASARCO..................................... 107,000 2,822,125
Echo Bay Mines............................. 50,000 518,750
Freeport-McMoRan Copper & Gold, Cl. A...... 860,000 18,812,500
Goldcorp Investments, Cl. A................ 237,860 1,721,467
Impala Platinum Holdings, A.D.R............ 15,000 339,480
Inco....................................... 165,000 4,599,375
--------------
28,813,697
--------------
TOTAL BASIC INDUSTRIES..................... 151,523,579
==============
RESTRUCTURING-3.3%
Energy-.7% Baker Hughes............................... 150,000 3,056,250
--------------
Foods and Beverages-.5% Dole Food.................................. 68,200 1,977,800
--------------
Holding Companies-1.5% Horsham.................................... 464,200 6,440,775
--------------
Retail-.6% K mart..................................... 187,000 2,571,250
--------------
TOTAL RESTRUCTURING........................ 14,046,075
==============
TOTAL COMMON STOCKS
(cost $137,081,103)...................... $165,569,654
==============
CONTRACTS
SUBJECT
PUT OPTIONS-2.0% TO PUT
--------------
Brokerage Basket;
November '95 @ $95....................(l) 224,323 $ 246,755
Standard & Poor's 500 Index Flex Options:
June '95 @ $450.......................... 46,500 58,125
September '95 @ $450..................... 119,000 416,500
December '95 @ $450..................... 122,000 732,000
Standard & Poor's 500 Index:
June '95 @ $450.......................... 172,500 258,750
September '95 @ $450..................... 88,000 330,000
September '95 @ $475..................... 40,100 275,687
September '95 @ $485..................... 48,500 415,281
DREYFUS CAPITAL VALUE FUND (A Premier Fund)
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1995 (UNAUDITED)
CONTRACTS
SUBJECT
PUT OPTIONS (CONTINUED) TO PUT VALUE
-------------- --------------
Standard & Poor's 500 Index (continued):
December '95 @ $375...................... 45,500 $ 56,875
December '95 @ $400...................... 45,500 96,688
December '95 @ $450...................... 71,500 411,125
December '95 @ $475...................... 40,100 370,925
December '95 @ $485...................... 30,000 356,250
March '96 @ $453......................(l) 90,931 590,141
March '96 @ $500......................... 50,000 887,500
June '96 @ $450.......................... 23,500 217,375
June '96 @ $475.......................... 66,000 924,000
June '96 @ $500.......................... 35,000 717,500
PRINCIPAL
AMOUNT
SUBJECT
TO PUT
--------------
U.S. Treasury Bond;
6.25%, 8/15/2023;
April '95 @ $87.406.................(l) $ 52,500,000 1,050,000
--------------
TOTAL PUT OPTIONS
(cost $24,155,214)....................... $ 8,411,477
==============
PRINCIPAL
CONVERTIBLE BOND-1.2% AMOUNT
--------------
RETAIL; Pepgro, 6%
(cost $3,034,000).....................(c) $ 229,114 $ 5,155,071
==============
BONDS-30.6%
FOREIGN GOVERNMENTS: Argentinian Securities;
Republic of Argentina,
4.25%, 3/31/2023..................(d,e) $ 2,250,000 $ 902,813
Austrian Securities;
Republic of Austria,
4.50%, 2/12/2000....................(f) 28,319,365 28,186,264
Danish Securities;
Kingdom of Denmark,
4.25%, 9/30/1999....................(f) 13,233,348 13,085,135
German Securities;
Bundesrepublik Deutschland:
8.50%, 4/22/1996....................(g) 43,968,023 45,476,126
9%, 10/20/2000......................(g) 17,354,651 19,133,503
8.875%, 12/20/2000..................(g) 13,081,395 14,352,907
Netherlands Securities;
Netherlands Government,
7.25%, 7/15/1999....................(h) 4,217,493 4,339,800
Venezuelan Securities;
Republic of Venezuela,
6.75%, 3/31/2020................(d,e,i) 14,000,000 6,055,000
--------------
TOTAL BONDS
(cost $112,795,187)...................... $131,531,548
==============
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CAPITAL VALUE FUND (A Premier Fund)
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1995 (UNAUDITED)
PRINCIPAL
SHORT-TERM INVESTMENTS-27.4% AMOUNT VALUE
-------------- --------------
<S> <C> <C> <C>
U.S. TREASURY BILLS: 5.41%, 4/6/95.............................. $ 6,189,000 $ 6,184,049
5.67%, 4/20/95..........................(j) 70,000,000 69,781,600
5.64%, 5/4/95.............................. 12,099,000 12,035,722
5.70%, 6/1/95...........................(k) 30,000,000 29,708,700
--------------
TOTAL SHORT-TERM INVESTMENTS
(cost $117,721,468)...................... $117,710,071
==============
TOTAL INVESTMENTS(cost $394,786,972)........................................... 99.7% $428,377,821
======== ==============
CASH AND RECEIVABLES (NET)..................................................... .3% $ 1,459,410
======== ==============
NET ASSETS..................................................................... 100.0% $429,837,231
======== ==============
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Non-income producing.
(b) Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At March 31,
1995, this security amounted to $11,418,750 or 2.7% of net assets.
(c) Denominated in South African Rand.
(d) Denominated in U.S. Dollars.
(e) Secured by U.S. Treasury securities.
(f) Denominated in Swiss Francs.
(g) Denominated in German Marks.
(h) Denominated in Dutch Guilder.
(i) Scheduled variable interest rate.
(j) Partially held by broker as collateral for open short positions.
(k) Partially held by the custodian in a segregated account as
collateral for open financial futures positions.
(l) Securities restricted as to public resale. Investments in restricted
securities, with an aggregate market value of $1,886,896, represents
approximately .4% of net assets:
<TABLE>
<CAPTION>
ACQUISITION PURCHASE PERCENTAGE OF
PUT OPTIONS: DATE PRICE NET ASSETS VALUATION*
------------- ------------ ---------- --------------- ------------
<S> <C> <C> <C> <C>
Brokerage Basket**
November '95 @ $95....................... 11/11/94 $ 5.70 .06 fair value
Standard & Poor's 500 Index
March '96 @ $453......................... 12/14/94 21.99 .14 fair value
U.S. Treasury Bond;
6.25%, 8/15/2023 April '95@ $87.406...... 4/8/94 .06 .24 fair value
</TABLE>
* The valuation of these securities has been determined in good faith under
the direction of the Board of Directors.
**Consists of Common Stocks of six publicly traded brokerage firms.
<TABLE>
<CAPTION>
STATEMENT OF FINANCIAL FUTURES MARCH 31, 1995 (UNAUDITED)
FINANCIAL FUTURES SOLD SHORT;
MARKET VALUE UNREALIZED
NUMBER OF COVERED APPRECIATION
ISSUER CONTRACTS BY CONTRACTS EXPIRATION AT 3/31/95
------ ------------ -------------- -------------- -------------
<S> <C> <C> <C> <C>
Hang Seng.................................... 35 $(1,936,271) April '95 $42,208
=======
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CAPITAL VALUE FUND (A Premier Fund)
STATEMENT OF SECURITIES SOLD SHORT MARCH 31, 1995 (UNAUDITED)
COMMON STOCKS-21.1% SHARES VALUE
-------------- -------------
<S> <C> <C> <C>
AUTO RELATED-.8% Breed Technologies......................... 18,000 $ 393,750
Chrysler................................... 22,000 921,250
Ford Motor................................. 40,000 1,080,000
General Motors............................. 20,000 885,000
--------------
3,280,000
--------------
CONSUMERS- 5.5% Anheuser-Busch............................. 5,700 334,162
Avon Products.............................. 5,600 338,800
B.A.T. Industries, A.D.R. ................. 23,100 329,175
Colgate-Palmolive.......................... 15,600 1,029,600
General Mills.............................. 52,000 3,100,500
Heinz (H.J.)............................... 35,900 1,382,150
Hershey Foods.............................. 40,000 2,045,000
Kellogg.................................... 50,000 2,918,750
PepsiCo.................................... 38,100 1,485,900
Philip Morris.............................. 47,500 3,099,375
Reebok International....................... 53,900 1,920,188
Rubbermaid................................. 60,300 1,989,900
Sara Lee................................... 81,000 2,116,125
Tambrands.................................. 18,000 803,250
Wrigley, (Wm), Jr.......................... 20,000 887,500
--------------
23,780,375
--------------
DRUGS & MEDICAL- .6% Upjohn..................................... 70,000 2,502,500
--------------
FINANCE- 8.2% ADVANTA, Cl. A............................. 2,500 83,750
Bear Stearns............................... 116,750 2,159,875
Berkshire Hathaway......................... 45 1,019,250
Chase Manhattan............................ 78,000 2,778,750
Chemical Banking........................... 43,000 1,623,250
Citicorp................................... 23,000 977,500
Conseco.................................... 22,000 877,250
Dean Witter,Discover & Co.................. 93,000 3,789,750
First USA.................................. 53,000 2,226,000
Franklin Resources......................... 49,000 1,904,875
Kansas City Southern Industries............ 86,000 3,493,750
MBNA....................................... 55,000 1,595,000
Morgan Stanley Group....................... 31,000 2,088,625
Paine Webber Group......................... 88,000 1,419,000
Salomon.................................... 67,000 2,269,625
Suntrust Banks............................. 20,000 1,070,000
T. Rowe Price Associates................... 98,000 3,564,750
United Asset Management.................... 20,000 767,500
Wells Fargo & Co........................... 10,000 1,563,750
--------------
35,272,250
--------------
HEALTH CARE- 1.4% Bausch & Lomb.............................. 11,600 414,700
Healthsource............................... 23,000 1,089,625
Mid-Atlantic Medical Services.............. 33,500 741,188
United Healthcare.......................... 18,000 841,500
U.S. HealthCare............................ 68,500 3,031,125
--------------
6,118,138
--------------
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CAPITAL VALUE FUND (A Premier Fund)
STATEMENT OF SECURITIES SOLD SHORT (CONTINUED) MARCH 31, 1995 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
------------- -------------
<S> <C> <C> <C>
HOTELS & MOTELS- .3% Hospitality Franchise Systems.............. 40,000 $ 1,280,000
--------------
MACHINERY-CONSTRUCTION
& MATERIAL-.4% Clark Equipment............................ 19,000 1,567,500
--------------
RAILROADS- .7% Burlington Northern........................ 52,000 3,087,500
--------------
RESTAURANTS- 1.0% Lone Star Steakhouse/Saloon................ 82,500 2,237,813
Outback Steakhouse......................... 74,500 1,890,437
--------------
4,128,250
--------------
RETAIL- 1.4% Home Depot................................. 64,233 2,842,310
Staples.................................... 50,000 1,318,750
Wal-Mart Stores............................ 81,000 2,065,500
--------------
6,226,560
--------------
TECHNOLOGY- .3% American Power Conversion.................. 47,000 769,625
Atmel...................................... 15,000 579,375
--------------
1,349,000
--------------
TELECOMMUNICATIONS- .5% Hong Kong Telecom, A.D.R................... 114,000 2,208,750
-------------
TOTAL SECURITIES SOLD SHORT
(proceeds $91,176,099)................... $90,800,823
==============
See independent accountants' reveiw report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CAPITAL VALUE FUND (A Premier Fund)
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1995 (UNAUDITED)
ASSETS:
<S> <C> <C>
Investments in securities, at value
(cost $394,786,972)-see statement..................................... $428,377,821
Cash.................................................................... 1,429,420
Receivable from broker for proceeds on securities sold short............ 91,176,099
Dividends and interest receivable....................................... 5,783,263
Receivable for subscriptions to Common Stock............................ 634,686
Receivable for futures variation margin-Note 3(a)....................... 43,631
Prepaid expenses........................................................ 86,611
--------------
527,531,531
LIABILITIES:
Due to investment adviser............................................... $ 306,659
Due to sub-investment adviser........................................... 114,908
Securities sold short, at value
(proceeds $91,176,099)-see statement.................................. 90,800,823
Payable for Common Stock redeemed....................................... 4,827,931
Payable to broker for loss on securities sold short..................... 1,161,830
Accrued expenses........................................................ 482,149 97,694,300
------------- --------------
NET ASSETS ................................................................ $429,837,231
===============
REPRESENTED BY:
Paid-in capital......................................................... $514,777,277
Accumulated undistributed investment income-net......................... 7,085,119
Accumulated net realized (loss) on investments, securities
sold short, and foreign currency transactions......................... (126,579,647)
Accumulated net unrealized appreciation on investments,
securities sold short, and foreign currency transactions
(including $42,208 net unrealized appreciation on
financial futures)-Note 3(b).......................................... 34,554,482
--------------
NET ASSETS at value......................................................... $429,837,231
===============
Shares of Common Stock outstanding:
Class A Shares
(200 million shares of $.01 par value authorized)..................... 29,274,209
===============
Class B Shares
(200 million shares of $.01 par value authorized)..................... 8,851,619
===============
NET ASSET VALUE per share:
Class A Shares
($331,219,377 / 29,274,209 shares).................................... $11.31
=======
Class B Shares
($98,617,854 / 8,851,619 shares)...................................... $11.14
=======
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CAPITAL VALUE FUND (A Premier Fund)
STATEMENT OF OPERATIONS SIX MONTHS ENDED MARCH 31, 1995 (UNAUDITED)
INVESTMENT INCOME:
INCOME:
<S> <C> <C>
Interest.............................................................. $11,050,911
Cash dividends (net of $38,887 foreign taxes withheld at source)...... 1,014,891
-------------
TOTAL INCOME...................................................... $ 12,065,802
EXPENSES:
Investment advisory fee-Note 2(a)..................................... 981,011
Sub-investment advisory fee-Note 2(a)................................. 744,161
Dividends on securities sold short.................................... 1,218,156
Shareholder servicing costs-Note 2(c)................................. 892,406
Distribution fees (Class B shares)-Note 2(b).......................... 384,891
Custodian fees........................................................ 51,194
Prospectus and shareholders' reports.................................. 38,886
Professional fees..................................................... 30,849
Registration fees..................................................... 29,757
Directors' fees and expenses-Note 2(d)................................ 20,341
Miscellaneous......................................................... 13,463
-------------
TOTAL EXPENSES.................................................... 4,405,115
--------------
INVESTMENT INCOME-NET............................................. 7,660,687
--------------
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments-Note 3(a):
Long transactions (including options transactions and foreign
currency transactions)............................................ $ (6,783,141)
Short sale transactions............................................... (6,727,102)
-------------
NET REALIZED (LOSS)............................................... (13,510,243)
Net unrealized (depreciation) on investments, securities sold short
and foreign currency transactions [including $(1,441,892) net
unrealized (depreciation) on financial futures]....................... (9,900,659)
--------------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS................. (23,410,902)
--------------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $(15,750,215)
==============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CAPITAL VALUE FUND (A Premier Fund)
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
SEPTEMBER 30, MARCH 31, 1995
1994 (UNAUDITED)
-------------- -------------------
<S> <C> <C>
OPERATIONS:
Investment income-net.................................................. $ 9,823,170 $ 7,660,687
Net realized (loss) on investments..................................... (9,217,163) (13,510,243)
Net unrealized appreciation (depreciation) on investments for the period 26,168,303 (9,900,659)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.. 26,774,310 (15,750,215)
-------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net:
Class A shares....................................................... (8,633,848) (8,406,886)
Class B shares....................................................... (913,770) (1,940,644)
-------------- --------------
TOTAL DIVIDENDS.................................................. (9,547,618) (10,347,530)
-------------- --------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares....................................................... 116,664,797 21,128,033
Class B shares....................................................... 85,400,651 12,897,989
Dividends reinvested:
Class A shares....................................................... 4,857,514 5,143,675
Class B shares....................................................... 489,988 990,255
Cost of shares redeemed:
Class A shares....................................................... (147,154,408) (77,298,474)
Class B shares....................................................... (8,939,968) (18,166,242)
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS 51,318,574 (55,304,764)
-------------- --------------
TOTAL INCREASE (DECREASE) IN NET ASSETS........................ 68,545,266 (81,402,509)
NET ASSETS:
Beginning of period.................................................... 442,694,474 511,239,740
-------------- --------------
End of period (including undistributed investment income-net:
$9,771,962 in 1994 and $7,085,119 in 1995)........................... $511,239,740 $429,837,231
============== ==============
</TABLE>
<TABLE>
<CAPTION>
SHARES
-------------------------------------------------------------------------
CLASS A CLASS B
---------------------------------- ------------------------------------
YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
SEPTEMBER 30, MARCH 31, 1995 SEPTEMBER 30, MARCH 31, 1995
1994 (UNAUDITED) 1994 (UNAUDITED)
-------------- ------------------- -------------- -------------------
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold......................... 9,919,385 1,885,731 7,342,835 1,151,068
Shares issued for dividends reinvested 411,308 466,335 41,951 91,016
Shares redeemed..................... (12,560,968) (6,968,159) (783,960) (1,674,217)
----------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING.......... (2,230,275) (4,616,093) 6,600,826 (432,133)
============== ============== ============== ==============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CAPITAL VALUE FUND (A Premier Fund)
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.
CLASS A CLASS B
-------------------------------------------------------------- --------------------------------
YEAR ENDED
YEAR ENDED SEPTEMBER 30, SIX MONTHS ENDED SEPTEMBER 30, SIX MONTHS ENDED
---------------------------------------------- MARCH 31, 1995 ---------------- MARCH 31, 1995
PER SHARE DATA: 1990(1) 1991 1992 1993 1994 (UNAUDITED) 1993(2) 1994 (UNAUDITED)
------ ------ ------ ------ ------ -------------- ------ ------ --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period................. $14.42 $15.08 $12.97 $12.41 $11.42 $11.88 $10.58 $11.32 $11.69
------ ------ ------ ------ ------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income-net....... .89 .73 .40 .24 .24 .17 .03 .23 .15
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions.............. .61 (.89) (.39) (.62) .46 (.48) .71 .38 (.50)
------ ------ ------ ------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT
OPERATIONS............ 1.50 (.16) .01 (.38) .70 (.31) .74 .61 (.35)
------ ------ ------ ------ ------ ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment
income-net................ (.84) (.99) (.57) (.61) (.24) (.26) -- (.24) (.20)
Dividends from net realized
gain on investments...... -- (.96) -- -- -- -- -- -- --
------ ------ ------ ------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS... (.84) (1.95) (.57) (.61) (.24) (.26) -- (.24) (.20)
------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of
period.................... $15.08 $12.97 $12.41 $11.42 $11.88 $11.31 $11.32 $11.69 $11.14
====== ====== ====== ====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN (3)... 10.53% (.70%) (.02%) (2.70%) 6.14% (2.55%)(4) 6.99%(4) 5.35% (2.91%)(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses
to average net assets..... 1.20% 1.19% 1.19% 1.23% 1.21% .61%(4) 1.49%(4) 1.99% .98%(4)
Ratio of dividends and interest
on securities sold short to
average net assets........ .26% .49% .39% .45% .39% .26%(4) .31%(4) .40% .27%(4)
Ratio of net investment income
to average net assets..... 6.64% 5.58% 2.83% 1.94% 2.06% 1.75%(4) .83%(4) 1.39% 1.37%(4)
Portfolio Turnover Rate..... 62.84% 154.07% 344.29% 41.78% 45.57% 12.45%(4) 41.78% 45.57% 12.45%(4)
Net Assets, end of period
(000's Omitted)........... $741,267 $755,450 $537,392 $412,316 $402,708 $331,219 $30,378 $108,532 $98,618
---------------------------
(1) Per share data restated to reflect a 100% stock dividend at the close of
business on February 16, 1990.
(2) From January 15, 1993 (commencement of initial offering) to September 30,
1993.
(3) Exclusive of sales load.
(4) Not annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS CAPITAL VALUE FUND (A Premier Fund)
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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. The Dreyfus
Corporation ("Dreyfus") serves as the Fund's investment adviser. Comstock
Partners, Inc. ("Comstock Partners") serves as the Fund's sub-investment
adviser. Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares. The Distributor, located at One Exchange
Place, Boston, Massachusetts 02109, is a wholly-owned subsidiary of Institutio
nal Administration Services, Inc., a provider of mutual fund administration
services, the parent company of which is Boston Institutional Group, Inc.
Dreyfus is a direct subsidiary of Mellon Bank, N. A.
The Fund offers both Class A and Class B shares. Class A shares are
subject to a sales charge imposed at the time of purchase and Class B shares
are subject to a contingent deferred sales charge imposed at the time of
redemption on redemptions made within six years of purchase. Other
differences between the two Classes include the services offered to and the
expenses borne by each Class and certain voting rights.
(A) PORTFOLIO VALUATION: Investments in securities (including options and
financial futures) 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, except for open short positions, where the asked price is used for
valuation purposes. 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.
(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 changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Reported 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, 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 discount 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, if any, 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. This may result in
distributions that are in excess of investment income-net and net realized
gain on a fiscal year basis. To the extent that net realized capital gain can
be offset by capital loss carryovers, 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 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.
The Fund has an unused capital loss carryover of approximately
$113,400,000 available for Federal income tax purposes to be applied against
future net securities profits, if any, realized subsequent to September 30,
1994. The carryover does not include net realized securities losses from
November 1, 1993 through September 30, 1994 which are treated, for Federal
income tax purposes, as arising in fiscal 1995. If not applied, $9,100,000 of
the carryover expires in fiscal 1999, $29,800,000 expires in fiscal 2000,
$17,800,000 expires in fiscal 2001 and $56,700,000 expires in fiscal 2002.
NOTE 2-INVESTMENT ADVISORY FEE, SUB-INVESTMENT ADVISORY FEE AND OTHER TRANSACT
IONS WITH AFFILIATES:
(A) Fees payable by the Fund pursuant to the provisions of an Investment
Advisory Agreement with Dreyfus and a Sub-Investment Advisory Agreement with
Comstock Partners (together "Agreements") are payable monthly, computed on
the average daily value of the Fund's net assets at the following annual
rates:
<TABLE>
<CAPTION>
AVERAGE NET ASSETS DREYFUS COMSTOCK PARTNERS
----------------------- ------------- ----------------------
<S> <C> <C>
0 up to $25 million............................................. .60 of 1% .15 of 1%
$25 up to $75 million........................................... .50 of 1% .25 of 1%
$75 up to $200 million.......................................... .45 of 1% .30 of 1%
$200 up to $300 million......................................... .40 of 1% .35 of 1%
In excess of $300 million....................................... .375 of 1% .375 of 1%
</TABLE>
The Agreements further provide that the Fund may deduct from the fee to be
paid to Dreyfus and Comstock Partners, or Dreyfus and Comstock Partners will
bear such excess expense, to the extent required by state law, should the
Fund's aggregate expenses, exclusive of taxes, brokerage, interest on borrowings
(which, in the view of Stroock & Stroock & Lavan, counsel to the Fund, also
contemplates dividends and interest accrued on securities sold short), and
extraordinary expenses, exceed the limitation of any state having jurisdiction
over the Fund. The most stringent state expense limitation applicable to the
Fund presently requires reimbursement in any full fiscal year that such expenses
(exclusive of distribution expenses and certain expenses as described above)
exceed 2 1/2% of the first $30 million, 2% of the next $70 million and 1 1/2% of
the excess over $100 million of the average value of the Fund's net assets in
accordance with California "blue sky" regulations. No expense reimbursement was
required for the six months ended March 31, 1995.
Dreyfus Service Corporation retained $11,624 during the six months ended
March 31, 1995 from commissions earned on sales of Fund shares.
(B) Under the Distribution Plan with respect to Class B shares (the
"Class B Distribution Plan") adopted pursuant to Rule 12b-1 under the Act,
the Fund pays the Distributor for distributing the Fund's Class B shares at
an annual rate of .75 of 1% of the value of the average daily net assets of
Class B. During the six months ended March 31, 1995, $384,891 was charged to
the Fund pursuant to the Class B Distribution Plan.
(C) Under the Shareholder Services Plan, the Fund pays the Distributor,
at an annual rate of .25 of 1% of the value of the average daily net assets
of Class A and Class B shares for servicing 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. The Distributor may make payments to
Service Agents in respect of these services. The Distributor determines the
amount to be paid to Service Agents. For the six months ended March 31, 1995,
$446,760 and $128,297 were charged to the Fund pursuant to the Class A and
Class B shares, respectively, pursuant to the Shareholder Service Plan.
(D) Each director who is not an "affiliated person" receives 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 and each director
emeritus receives 50% of such compensation.
NOTE 3-SECURITIES TRANSACTIONS:
(A) The following summarizes the aggregate amount of purchases and sales
of investment securities and securities sold short, excluding short-term
securities, financial futures and options transactions during the six months
ended March 31, 1995:
<TABLE>
<CAPTION>
PURCHASES SALES
--------------- ---------------
<S> <C> <C>
Long transactions.................................................... $41,718,789 $ 9,826,696
Short sale transactions.............................................. 41,014,625 22,584,593
--------------- ---------------
TOTAL............................................................ $82,733,414 $32,411,289
=============== ===============
</TABLE>
The Fund is engaged in short-selling which obligates the Fund to replace
the security borrowed by purchasing the security at
current market value. The Fund would incur a loss if the price of the
security increases between the date of the short sale and the date on which
the Fund replaces the borrowed security. The Fund would realize a gain if the
price of the security declines between those dates. Until the Fund replaces
the borrowed security, the Fund will maintain daily, a segregated account
with a broker and custodian, of cash and/or U.S. Government securities
sufficient to cover its short position. Securities sold short at March 31,
1995 and their related market values and proceeds are set forth in the
Statement of Securities Sold Short.
The Fund is engaged in trading financial futures contracts. The Fund is
exposed to market risk as a result of changes in the value of the underlying
financial instruments (see the Statement of Financial Futures). Investments
in financial futures require the Fund to "mark to market" on a daily basis,
which reflects the change in market value of the contracts at the close of
each day's trading. Typically, variation margin payments are made or received
to reflect daily unrealized gains or losses. When the contracts are closed,
the Fund recognizes a realized gain or loss. These investments require
initial margin deposits with a custodian, which consist of cash or cash
equivalents, up to approximately 10% of the contract amount. The amount of
these deposits is determined by the exchange or Board of Trade on which the
contract is traded and is subject to change. Contracts open at March 31, 1995
and their related unrealized market appreciation are set forth in the
Statement of Financial Futures.
The Fund is engaged in trading restricted options, which are not exchange
traded. The Fund's exposure to credit risk associated with counter party
nonperformance on these investments is typically limited to the market value
of such investments that are disclosed in the Statement of Investments.
(B) At March 31, 1995, accumulated net unrealized appeciation on
investments was $34,008,333, consisting of $57,513,637 gross unrealized
appreciation and $23,505,304 gross unrealized depreciation, excluding foreign
currency transactions.
At March 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 CAPITAL VALUE FUND (A Premier Fund)
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS CAPITAL VALUE FUND (A PREMIER FUND)
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus Capital Value Fund (A Premier Fund), including the statements of
investments, financial futures and securities sold short, as of March 31,
1995, and the related statements of operations and changes in net assets and
financial highlights for the six month period ended March 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
September 30, 1994 and financial highlights for each of the five years in the
period ended September 30, 1994 and in our report dated November 8, 1994, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
[Ernst & Young Signature]
New York, New York
May 8, 1995
(Dreyfus Logo)
Capital Value Fund
(A Premier Fund)
Semi-Annual
Report
March 31, 1995
(Dreyfus lion "D" Logo)
DREYFUS
CAPITAL VALUE FUND
(A Premier Fund)
200 Park Avenue
New York, NY 10166
INVESTMENT ADVISER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
SUB-INVESTMENT ADVISER
Comstock Partners
45 Broadway
New York, NY 10006
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. 107/634SA953
Dreyfus Capital Value Fund (A Premier Fund)
Broad Sector Allocation March 31, 1995
Long Positions
|------------------------------------------------ |
|Bonds 30.6 % |
|Cash Equivalents 27.7 % |
|Gold Mining 27.6 % |
|Other Metals 6.7 % |
|Other Common Stocks 4.2 % |
|Put Options 2.0 % |
|Convertible Bond 1.2 % |
|------------------------------------------------ |
Sector allocations in the pie chart are broader groupings
than are listed in the Report's Statement of Investments.
Dreyfus Capital Value Fund (A Premier Fund)
Broad Sector Allocation March 31, 1995
Stocks Sold Short
|------------------------------------------------------|
|Finance 8.2 %|
|Consumers 5.5 %|
|Others 3.6 %|
|Retail 1.4 %|
|Health Care 1.4 %|
|Restaurants 1.0 %|
|------------------------------------------------------|
Sector allocations in the pie chart are broader groupings
than are listed in the Report's Statement of Investments.
