DREYFUS CAPITAL VALUE FUND (A Premier Fund)
LETTER TO SHAREHOLDERS
Text starts here
Second page of letter
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DREYFUS CAPITAL VALUE FUND (A Premier Fund)
STATEMENT OF INVESTMENTS MARCH 31, 1996 (UNAUDITED)
COMMON STOCKS-20.3% SHARES VALUE
_______ _______
<S> <C> <C>
BASIC INDUSTRIES-15.3%
Gold Mining:
Ashanti Goldfields, G.D.R....................(a) 354,500 $ 8,906,813
Driefontein Consolidated, A.D.R.............. 127,000 2,016,125
East Rand Gold & Uranium, A.D.R.............. 100,000 235,000
Elandsrand Gold Mining, A.D.R................ 251,100 1,487,767
Firstmiss Gold...............................(b) 158,200 4,350,500
Free State Consolidated Gold Mines, A.D.R.... 135,000 1,282,500
Golden Shamrock Mines........................(b) 440,000 344,036
Hartebeesfontein Gold Mining, A.D.R.......... 433,000 1,569,625
Kinross Mines, A.D.R......................... 144,000 1,728,000
Newmont Gold................................. 39,000 2,188,875
Pegasus Gold.................................(b) 377,300 5,518,013
Royal Oak Mines..............................(b) 1,559,900 6,532,081
Santa Fe Pacific Gold........................(b) 374,082 5,985,312
TVX Gold.....................................(b) 262,000 2,358,000
Vaal Reefs Exploration & Mining, A.D.R....... 347,500 3,322,969
Western Area Gold Mining, A.D.R.............. 18,222 297,246
Western Deep Levels, A.D.R................... 38,000 1,752,750
Winkelhaak Mines, A.D.R...................... 175,600 1,701,125
__________
TOTAL BASIC INDUSTRIES....................... 51,576,737
============
RESTRUCTURING-5.0%
Chemicals-.8% P.T. Tri Polyta Indonesia, A.D.R.............. 197,000 2,536,375
__________
Conglomerates-.5% Teledyne...................................... 63,000 1,764,000
__________
Electrical Equipment-.3% Hitachi, A.D.R................................ 10,000 976,250
__________
Energy-.6% Baker Hughes.................................. 65,000 1,901,250
__________
Foods and Beverages-.4% Castle & Cooke................................ 84,733 1,387,503
__________
Holding Companies-.5% Horsham....................................... 113,200 1,655,550
__________
Miscellaneous-.6% Fleming Russia Securities Fund................ 220,765 1,187,716
Lazard Vietnam Fund.......................... 87,000 924,375
__________
2,112,091
__________
Retail-.8% Duty Free International....................... 111,200 1,473,400
Hartmarx.....................................(b) 260,000 1,235,000
__________
2,708,400
__________
Semiconductors-.5% Fujitsu....................................... 27,000 248,824
NEC, A.D.R................................... 18,400 1,071,800
OKI Electric Industry........................(b) 32,000 245,602
Toshiba...................................... 37,000 280,523
__________
1,846,749
__________
TOTAL RESTRUCTURING.......................... 16,888,168
============
TOTAL COMMON STOCKS
(cost $59,937,199)......................... $ 68,464,905
============
DREYFUS CAPITAL VALUE FUND (A Premier Fund)
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996 (UNAUDITED)
PREFERRED STOCKS-.1% SHARES VALUE
_______ _______
CONGLOMERATES; Teledyne, Series E
(cost $ 31,339)....................... 2,130 $ 30,885
==========
CONTRACTS
SUBJECT
PUT OPTIONS-4.3% TO PUT
__________
Nasdaq 100 Index;
June `96 @ $550............................ 14,500 $ 132,312
Philadelphia Semi-Conductor Index;
June `96 @ $280............................ 4,200 438,900
Standard & Poor's 500 Index Flex Options:
December `96 @ $525........................ 32,500 142,187
March `97 @ $600........................... 167,000 2,828,563
Standard & Poor's 500 Index:
June `96 @ $450............................ 23,500 5,875
June `96 @ $475............................ 113,000 38,844
June `96 @ $500............................ 73,000 43,344
June `96 @ $550............................ 52,000 110,500
September `96 @ $550....................... 184,000 897,000
September `96 @ $575....................... 113,000 819,250
December `96 @ $525........................ 32,500 146,250
December `96 @ $550........................ 270,000 1,755,000
December `96 @ $600........................ 151,000 2,076,250
June `97 @ $550............................ 74,000 730,750
June `97 @ $600............................ 231,000 4,302,375
PRINCIPAL
AMOUNT
SUBJECT
TO PUT
_______
U.S. Treasury Bond;
7.625%, 2/15/2025;
April `96 @ $103.078.......................(i) $..30,000,000 36
__________
TOTAL PUT OPTIONS
(cost $24,909,364)......................... $ 14,467,436
=============
PRINCIPAL
BONDS AND NOTES-29.9% AMOUNT
_________
BONDS- 29.1% Austrian Securities;
Republic of Austria,
4.50%, 2/12/2000...............(c) $ 6,803,864 $ 7,161,067
Danish Securities;
Kingdom of Denmark,
4.25%, 9/30/1999...............(c) 12,599,748 13,185,636
DREYFUS CAPITAL VALUE FUND (A Premier Fund)
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES (CONTINUED) AMOUNT VALUE
_______ _______
BONDS (CONTINUED) Dutch Securities;
Netherlands Government,
7.25%, 7/15/1999...............(d) $ 3,932,482 $ 4,223,486
German Securities;
Bundesrepublik Deutschland:
8.50%, 4/22/1996..............(e) 40,961,408 41,072,004
9%, 10/20/2000................(e) 16,167,908 18,504,171
8.875%, 12/20/2000............(e) 12,186,865 13,921,056
__________
98,067,420
__________
NOTES-.8% Federal National Mortgage Association,
Non-Callable Strips, (collateralized by
FNMA Strip, 10/1/2024) Cl. 267-2,
8.50%, 10/25/2024 (Interest Only Obligation).... 10,462,526 (f) 2,772,569
__________
TOTAL BONDS AND NOTES
(cost $91,822,261)................................. $100,839,989
===========
LOAN PARTICIPATIONS- 2.5%
FOREIGN LOAN PARTICIPATIONS:Vnesheconombank (Bank for Foreign
Economic Affairs of the USSR)
5/3/2025.................................(c,i) $..18,899,622 $ 6,319,561
5/3/2025.................................(d,i) 6,093,433 2,285,037
__________
TOTAL LOAN PARTICIPATIONS
(cost $6,703,509)........................ $ 8,604,598
===========
SHORT-TERM INVESTMENTS-38.9%
U.S. TREASURY BILLS:........... 4.95%, 4/4/96 $....2,557,000 $ 2,555,185
5.01%, 4/11/96.................................. 9,930,000 9,912,821
5%, 4/18/96..................................... 31,915,000 31,827,234
5.03%, 4/25/96.................................. 6,374,000 6,350,416
4.86%, 5/2/96................................... 24,718,000 24,601,578
4.77%, 5/9/96..............................(g,h) 28,766,000 28,602,609
4.75%, 5/16/96...............................(g) 23,352,000 23,198,344
5.04%, 5/30/96.................................. 4,439,000 4,401,002
__________
TOTAL SHORT-TERM INVESTMENTS
(cost $131,515,786)........................... $131,449,189
===========
TOTAL INVESTMENTS (cost $314,919,458)................................................ 96.0% $323,857,002
===== =============
CASH AND RECEIVABLES (NET)........................................................... 4.0% $ 13,326,810
===== =============
NET ASSETS........................................................................... 100.0% $337,183,812
===== =============
DREYFUS CAPITAL VALUE FUND (A Premier Fund)
NOTES TO STATEMENT OF INVESTMENTS:
(a) 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,
1996, this security amounted to $8,906,813 or 2.6% of net assets.
(b) Non-income producing.
(c) Denominated in Swiss Francs.
(d) Denominated in Dutch Guilder.
(e) Denominated in German Marks.
(f) Notional face amount.
(g) Partially held by broker as collateral for open short positions.
(h) Partially held by the custodian in a segregated account as
collateral for open financial futures positions.
(i) Securities restricted as to public resale. Investments in restricted
securities, with an aggregate market value of $8,604,634, represents
approximately 2.5% of net assets:
ACQUISITION PURCHASE PERCENTAGE OF
PUT OPTIONS; DATE PRICE NET ASSETS VALUATION*
_______ ______ _____ ________ __________
U.S. Treasury Bond;
7.625%, 2/15/2025, April `96 @ $103.078.. 4/12/95 $4.72 0.00 fair value
LOAN PARTICIPATIONS;
__________________
Vnesheconombank (Bank for Foreign Economic
Affairs of the USSR)
5/3/2025............................... 5/2/95 $ .24 2.50 fair value
6/29/95
*The valuation of these securities has been determined in good faith
under the direction of the Board of Directors.
STATEMENT OF FINANCIAL FUTURES MARCH 31, 1996 (UNAUDITED)
MARKET VALUE UNREALIZED
NUMBER OF COVERED APPRECIATION
FINANCIAL FUTURES PURCHASED; CONTRACTS BY CONTRACTS EXPIRATION AT 3/31/96
__________ ____________ __________ ____________
Nikkei 225............................... 22 $ 2,369,950 June `96 $140,250
FINANCIAL FUTURES SOLD SHORT:
Japanese Yen............................. 22 (2,592,150) June `96 56,375
Standard & Poor's 500.................... 36 (11,919,600) December `96 85,500
Standard & Poor's 500.................... 64 (21,374,400) March `97 168,250
________
$450,375
==========
See notes to financial statements.
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DREYFUS CAPITAL VALUE FUND (A Premier Fund)
STATEMENT OF SECURITIES SOLD SHORT MARCH 31, 1996 (UNAUDITED)
COMMON STOCKS-21.3% SHARES VALUE
_______ _______
<S> <C> <C>
AUTO RELATED-1.3% Cooper Tire & Rubber................... 80,000 $ 2,060,000
Ford Motor............................. 64,000 2,200,000
___________
4,260,000
___________
BUSINESS EQUIPMENT-.3% Xerox.................................. 7,600 953,800
___________
CHEMICALS-1.3% Air Products & Chemicals............... 20,000 1,092,500
Great Lakes Chemical................... 6,900 464,887
Lubrizol............................... 70,000 2,065,000
RPM.................................... 50,000 775,000
___________
4,397,387
___________
COMPUTERS-.4% Compaq Computer........................ 32,000 1,236,000
___________
CONSUMERS-1.1% B.A.T. Industries, A.D.R............... 23,100 347,944
Reebok International................... 53,900 1,488,987
Rubbermaid............................. 60,300 1,711,013
___________
3,547,944
___________
COSMETICS-.9% International Flavors & Fragrances..... 40,000 1,915,000
Tambrands.............................. 21,000 981,750
___________
2,896,750
___________
ELECTRICAL EQUIPMENT-.3% Duracell International.................. 20,000 992,500
___________
ENVIRONMENTAL CONTROL-.3% Browning-Ferris Industries.............. 35,000 1,102,500
___________
FINANCE-2.6% Alex Brown.............................. 19,900 1,032,313
Bear Stearns........................... 122,587 3,034,028
CMAC Investment........................ 15,000 847,500
PaineWebber Group...................... 88,000 1,936,000
Schwab (Charles)....................... 80,000 2,050,000
___________
8,899,841
___________
FOOD PROCESSING-2.8% General Mills.......................... 35,000 2,043,125
Heinz.................................. 53,850 1,783,781
Kellogg................................ 37,200 2,817,900
Sara Lee............................... 51,000 1,663,875
Unilever, N.V.......................... 7,100 963,825
___________
9,272,506
___________
FOOD WHOLESALE-.2% Sysco.................................. 25,000 821,875
___________
FOREST PRODUCTS
& PAPER-1.2% Boise Cascade.......................... 26,000 1,092,000
Bowater................................ 25,000 931,250
International Paper.................... 25,000 984,375
Louisiana Pacific...................... 40,000 975,000
___________
3,982,625
___________
HOME APPLIANCES-.4% Whirlpool.............................. 25,200 1,392,300
___________
DREYFUS CAPITAL VALUE FUND (A Premier Fund)
STATEMENT OF SECURITIES SOLD SHORT (CONTINUED) MARCH 31, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED): SHARES VALUE
_______ _______
MACHINERY-CONSTRUCTION
& MATERIAL-.9% Caterpillar............................ 30,000 $ 2,040,000
Ingersoll-Rand......................... 26,500 1,079,875
___________
3,119,875
___________
METALS-.9% ASARCO................................. 60,000 2,100,000
Aluminum Company of America............ 16,000 1,002,000
___________
3,102,000
___________
PACKAGING & CONTAINER-.6% Crown Cork & Seal...................... 43,000 2,096,250
___________
PUBLISHING & PRINTING-.4% Houghton Mifflin....................... 12,000 529,500
Reader's Digest Association, Cl. A..... 20,000 945,000
___________
1,474,500
___________
RETAIL-1.2% Home Depot............................. 43,633 2,088,930
Wal-Mart Stores........................ 81,000 1,873,125
___________
3,962,055
___________
TECHNOLOGY-2.9% Applied Materials...................... 33,400 1,164,825
Integrated Device Technology........... 36,000 409,500
Intel.................................. 30,600 1,740,375
KLA Instruments........................ 39,000 882,375
Kulicke & Soffa Industries............. 38,000 598,500
Maxim Integrated Products.............. 30,000 930,000
Micron Technology...................... 10,000 313,750
Microsoft.............................. 11,000 1,134,375
Motorola............................... 21,000 1,113,000
Novellus Systems....................... 14,000 623,000
Texas Instruments...................... 20,000 1,017,500
___________
9,927,200
___________
TELECOMMUNICATIONS-.7% Hong Kong Telecom, A.D.R............... 114,000 2,280,000
___________
TEXTILES-.3% V.F.................................... 20,000 1,105,000
___________
TRANSPORTATION-.3% Federal Express........................ 13,000 908,375
___________
TOTAL SECURITIES SOLD SHORT
(proceeds $73,368,452)............... $71,731,283
=============
See notes to financial statements.
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DREYFUS CAPITAL VALUE FUND (A Premier Fund)
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $314,919,458)-see statement..................................... $323,857,002
Cash.................................................................... 5,538,796
Receivable from broker for proceeds on securities sold short............ 73,368,452
Dividends and interest receivable....................................... 5,374,771
Receivable for investment securities sold............................... 2,328,731
Receivable for subscriptions to Common Stock............................ 622,348
Receivable for futures variation margin-Note 4(a)....................... 234,897
Prepaid expenses........................................................ 38,654
___________
411,363,651
LIABILITIES:
Due to investment adviser............................................... $ 127,056
Due to sub-investment adviser........................................... 86,824
Due to Distributor...................................................... 125,263
Securities sold short, at value
(proceeds $73,368,452)-see statement.................................. 71,731,283
Payable for investment securities purchased............................. 1,157,034
Payable for Common Stock redeemed....................................... 606,923
Accrued expenses........................................................ 345,456 74,179,839
____________ _____________
NET ASSETS.................................................................. $337,183,812
=============
REPRESENTED BY:
Paid-in capital......................................................... $445,502,512
Accumulated undistributed investment income-net......................... 6,163,237
Accumulated net realized (loss) on investments.......................... (125,376,176)
Accumulated net unrealized appreciation on investments, securities
sold short, and foreign currency transactions [including $450,375
net unrealized appreciation on financial futures-Note 4(b)]........... 10,894,239
___________
NET ASSETS at value......................................................... $337,183,812
=============
DREYFUS CAPITAL VALUE FUND (A Premier Fund)
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED) MARCH 31, 1996 (UNAUDITED)
Shares of Common Stock outstanding:
Class A Shares
(100 million shares of $.01 par value authorized)..................... 23,474,365
=============
Class B Shares
(100 million shares of $.01 par value authorized)..................... 7,863,269
=============
Class C Shares
(100 million shares of $.01 par value authorized)..................... 337,767
=============
Class R Shares
(100 million shares of $.01 par value authorized)..................... 104
=============
NET ASSET VALUE per share:
Class A Shares
($250,870,368 / 23,474,365 shares).................................... $10.69
======
Class B Shares
($82,801,001 / 7,863,269 shares)...................................... $10.53
======
Class C Shares
($3,511,332 / 337,767 shares)......................................... $10.40
======
Class R Shares
($1,111 / 104 shares)................................................. $10.68
======
See notes to financial statements.
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DREYFUS CAPITAL VALUE FUND (A Premier Fund)
STATEMENT OF OPERATIONS SIX MONTHS ENDED MARCH 31, 1996 (UNAUDITED)
INVESTMENT INCOME:
<S> <C> <C>
INCOME:
Interest.............................................................. $ 8,221,015
Cash dividends (net of $24,016 foreign taxes withheld at source)...... 697,826
__________
TOTAL INCOME.................................................... $ 8,918,841
EXPENSES:
Investment advisory fee-Note 3(a)..................................... 757,486
Sub-investment advisory fee-Note 3(a)................................. 519,986
Shareholder servicing costs-Note 3(c)................................. 685,835
Dividends on securities sold short.................................... 517,562
Distribution fees-Note 3(b)........................................... 314,264
Professional fees..................................................... 48,281
Interest expense-Note 2............................................... 45,028
Custodian fees........................................................ 41,798
Registration fees..................................................... 39,498
Directors' fees and expenses-Note 3(d)................................ 31,457
Prospectus and shareholders' reports.................................. 3,118
Miscellaneous......................................................... 13,401
__________
TOTAL EXPENSES.................................................. 3,017,714
____________
INVESTMENT INCOME-NET........................................... 5,901,127
____________
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain (loss) on investments-Note 4(a):
Long transactions (including options transactions and foreign
currency transactions)............................................ $22,548,860
Short sale transactions............................................... (5,220,676)
Net realized gain (loss) on forward currency exchange contracts-Note 4(a):
Long transactions..................................................... 86,001
Short transactions.................................................... (796,761)
Net realized gain (loss) on financial futures-Note 4(a):
Long transactions..................................................... 394,656
Short transactions.................................................... (1,836,215)
____________
NET REALIZED GAIN..................................................... 15,175,865
Net unrealized (depreciation) on investments, securities sold short
and foreign currency transactions [including $393,400 net
unrealized appreciation on financial futures]......................... (4,589,244)
____________
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 10,586,621
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $16,487,748
============
See notes to financial statements.
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DREYFUS CAPITAL VALUE FUND (A Premier Fund)
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
SEPTEMBER 30, MARCH 31, 1996
1995 (UNAUDITED)
________ __________
<S> <C> <C>
OPERATIONS:
Investment income-net............................................... $ 14,681,492 $ 5,901,127
Net realized gain (loss) on investments............................. (27,482,637) 15,175,865
Net unrealized (depreciation) on investments for the period......... (28,971,658) (4,589,244)
_____________ _____________
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS............................................... (41,772,803) 16,487,748
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net:
Class A shares.................................................... (8,406,886) (10,905,352)
Class B shares.................................................... (1,940,644) (2,909,347)
Class C shares.................................................... - (29,071)
Class R shares.................................................... - (44)
_____________ _____________
TOTAL DIVIDENDS............................................... (10,347,530) (13,843,814)
_____________ _____________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares.................................................... 39,533,363 24,136,621
Class B shares.................................................... 26,973,391 15,178,983
Class C shares.................................................... 1,000 3,485,565
Class R shares.................................................... 1,000 75
Dividends reinvested:
Class A shares.................................................... 5,143,774 6,964,456
Class B shares.................................................... 990,338 1,653,446
Class C shares.................................................... - 29,071
Class R shares.................................................... - 44
Cost of shares redeemed:
Class A shares.................................................... (136,312,596) (53,013,200)
Class B shares.................................................... (36,549,208) (22,770,086)
Class C shares.................................................... - (25,566)
_____________ _____________
(DECREASE) IN NET ASSETS FROM CAPITAL
STOCK TRANSACTIONS.......................................... (100,218,938) (24,360,591)
_____________ _____________
TOTAL (DECREASE) IN NET ASSETS.............................. (152,339,271) (21,716,657)
NET ASSETS:
Beginning of period................................................. 511,239,740 358,900,469
_____________ _____________
End of period (including undistributed investment income-net:
$14,105,924 in 1995 and $6,163,237 in 1996)....................... $ 358,900,469 $ 337,183,812
============= ===============
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<CAPTION>
DREYFUS CAPITAL VALUE FUND (A Premier Fund)
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
SHARES
____________________________________________________________________________________
CLASS A CLASS B
_______________________________________ _______________________________________
YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
SEPTEMBER 30, MARCH 31, 1996 SEPTEMBER 30, MARCH 31, 1996
1995 (UNAUDITED) 1995 (UNAUDITED)
________ ________________ ________ ________________
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold............. 3,569,389 2,283,921 2,464,126 1,462,135
Shares issued for
dividends reinvested........ 466,343 688,868 91,024 165,676
Shares redeemed.............. (12,382,551) (5,041,909) (3,400,272) (2,203,172)
________ ____________ ___________ ________________
NET (DECREASE) IN
SHARES OUTSTANDING...... (8,346,819) (2,069,120) (845,122) (575,361)
=========== =========== ========== =============
SHARES
____________________________________________________________________________________
CLASS C CLASS R
_______________________________________ _______________________________________
PERIOD ENDED SIX MONTHS ENDED PERIOD ENDED SIX MONTHS ENDED
SEPTEMBER 30, MARCH 31, 1996 SEPTEMBER 30, MARCH 31, 1996
1995* (UNAUDITED) 1995* (UNAUDITED)
________ ________________ ________ ________________
CAPITAL SHARE TRANSACTIONS:
Shares sold................... 94 337,214 92 8
Shares issued for dividends
reinvested - 2,948 - 4
Shares redeemed............... - (2,489) - -
__________ ____________ ___________ ________________
NET INCREASE IN
SHARES OUTSTANDING...... 94 337,673 92 12
=========== =========== ========== =============
* From August 22, 1995 (commencement of initial offering) to September 30,
1995.
See notes to financial statements.
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<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
_______________________________________________________________________________
SIX MONTHS ENDED
YEAR ENDED SEPTEMBER 30, MARCH 31, 1996
________________________________________________________________
PER SHARE DATA: 1991 1992 1993 1994 1995 (UNAUDITED)
______ ______ ______ ______ ______ _____________
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $15.08 $12.97 $12.41 $11.42 $11.88 $10.61
______ ______ ______ ______ ______ _______
INVESTMENT OPERATIONS:
Investment income-net................. .73 .40 .24 .24 .36 .19
Net realized and unrealized gain (loss)
on investments...................... (.89) (.39) (.62) .46 (1.37) .35
______ ______ ______ ______ ______ ________
TOTAL FROM INVESTMENT OPERATIONS (.16) .01 (.38) .70 (1.01) .54
______ ______ ______ ______ ______ ________
DISTRIBUTIONS:
Dividends from investment income-net.. (.99) (.57) (.61) (.24) (.26) (.46)
Dividends from net realized gain
on investments...................... (.96) - - - - -
______ ______ ______ ______ ______ ________
TOTAL DISTRIBUTIONS............. (1.95) (.57) (.61) (.24) (.26) (.46)
______ ______ ______ ______ ______ ________
Net asset value, end of period........ $12.97 $12.41 $11.42 $11.88 $10.61 $10.69
====== ====== ======= ======= ======= =======
TOTAL INVESTMENT RETURN (1)............... (.70%) (.02%) (2.70%) 6.14% (8.58%) 5.29%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to
average net assets.................. 1.19% 1.19% 1.23% 1.21% 1.24% .62%(2)
Ratio of interest expense and dividends on
securities sold short to average net assets .49% .39% .45% .39% .45% .17%(2)
Ratio of net investment income to average
net assets.......................... 5.58% 2.83% 1.94% 2.06% 3.61% 1.82%(2)
Portfolio Turnover Rate............... 154.07% 344.29% 41.78% 45.57% 54.70% 27.16%(2)
Average commission rate paid.......... $.0605
Net Assets, end of period (000's Omitted) $755,450 $537,392 $412,316 $402,708 $271,052 $250,870
(1) Exclusive of sales load.
(2) Not annualized.
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CAPITAL VALUE FUND (A Premier Fund)
FINANCIAL HIGHLIGHTS (CONTINUED)
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 B
_______________________________________________________
SIX MONTHS ENDED
YEAR ENDED SEPTEMBER 30, MARCH 31, 1996
_______________________________________
PER SHARE DATA: 1993(1) 1994 1995 (UNAUDITED)
______ ______ _______ ________
<S> <C> <C> <C> <C>
Net asset value, beginning of period.............. $10.58 $11.32 $11.69 $10.41
______ ______ ______ ________
INVESTMENT OPERATIONS:
Investment income-net............................. .03 .23 .31 .16
Net realized and unrealized gain (loss) on investments .71 .38 (1.38) .33
______ ______ ______ ________
TOTAL FROM INVESTMENT OPERATIONS................ .74 .61 (1.07) .49
______ ______ ______ ________
DISTRIBUTIONS;
Dividends from investment income-net.............. - (.24) (.21) (.37)
______ ______ ______ ________
Net asset value, end of period.................... $11.32 $11.69 $10.41 $10.53
======= ======== ======== =========
TOTAL INVESTMENT RETURN (2)........................... 6.99%(3) 5.35% (9.27%) 4.85%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses
to average net assets........................... 1.49%(3) 1.99% 1.99% 1.00%(3)
Ratio of interest expense and dividends on
securities sold short to average net assets..... .31%(3) .40% .45% .17%(3)
Ratio of net investment income to average net assets .83%(3) 1.39% 2.86% 1.45%(3)
Portfolio Turnover Rate........................... 41.78% 45.57% 54.70% 27.16%(3)
Average commission rate paid...................... $.0605
Net Assets, end of period (000's Omitted)......... $30,378 $108,532 $87,847 $82,801
(1) From January 15, 1993 (commencement of initial offering) to September 30, 1993.
(2) Exclusive of sales load.
(3) Not annualized.
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CAPITAL VALUE FUND (A Premier Fund)
FINANCIAL HIGHLIGHTS (CONTINUED)
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 C CLASS R
_______________________________________ ________________________________
PERIOD ENDED SIX MONTHS ENDED PERIOD ENDED SIX MONTHS ENDED
SEPTEMBER 30, MARCH 31, 1996 SEPTEMBER 30, MARCH 31, 1996
PER SHARE DATA: 1995(1) (UNAUDITED) 1995(1) (UNAUDITED)
______ ________ ______ ________
<S> <C> <C> <C> <C>
Net asset value, beginning of period $10.64 $10.41 $10.84 $10.62
_______ _______ _______ _______
INVESTMENT OPERATIONS:
Investment income-net............... .02 .42 .04 .24
Net realized and unrealized gain (loss)
on investments.................... (.25) .06 (.26) .30
_______ _______ _______ _______
TOTAL FROM INVESTMENT
OPERATIONS.................... (.23) .48 (.22) .54
_______ _______ _______ _______
DISTRIBUTIONS;
Dividends from investment
income-net........................ - (.49) - (.48)
_______ _______ _______ _______
Net asset value, end of period...... $10.41 $10.40 $10.62 $10.68
======== ======== ======= =======
TOTAL INVESTMENT RETURN (2)............. (2.26%)(3) 4.92%(3) (2.03%)(3) 5.35%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses
to average net assets............. .26%(3) 1.10%(3) .14%(3) .46%(3)
Ratio of interest expense and dividends on
securities sold short to average net assets .06%(3) .18%(3) .04%(3) .16%(3)
Ratio of net investment income to
average net assets................ .23%(3) 1.44%(3) .38%(3) 1.99%(3)
Portfolio Turnover Rate............. 54.70% 27.16%(3) 54.70% 27.16%(3)
Average commission rate paid........ $.0605 $.0605
Net Assets, end of period (000's Omitted) $1 $3,511 $1 $1
(1) From August 22, 1995 (commencement of initial offering) to September 30, 1995.
(2) Exclusive of sales load.
(3) Not annualized.
See notes to financial statements.
</TABLE>
DREYFUS CAPITAL VALUE FUND (A Premier Fund)
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Capital Value Fund (A Premier Fund) (the "Fund") is registered
under the Investment Company Act of 1940 ("Act") as a diversified open-end
management investment company. The Fund's investment objective is to maximize
total return, consisting of capital appreciation and current income. The
Dreyfus Corporation ("Dreyfus") serves as the Fund's investment adviser.
Comstock Partners, Inc. ("Comstock Partners") serves as the Fund's
sub-investment adviser. Dreyfus is a direct subsidiary of Mellon Bank, N.A.
On January 29, 1996, the Board of Directors of the Fund voted to approve,
and to submit for shareholder approval, an Agreement and Plan of
Reorganization (the "Reorganization") providing for the transfer of all or
substantially all of the Fund's assets, subject to liabilities, attributable
to the Fund's Class A, Class B, Class C and Class R shares in a tax-free
exchange for corresponding Class A, Class B, Class C and Class R shares of
common stock of Comstock Partners Capital Value Fund, a portfolio of Comstock
Partners Funds, Inc., and the assumption by Comstock Partners Capital Value
Fund of stated liabilities. A special meeting of the Fund's shareholders to
consider the Reorganization currently is scheduled to be held on May 30,
1996. The Comstock Partners Capital Value Fund is a newly formed portfolio of
Comstock Partners Funds, Inc. Comstock Partners, Inc., the Fund's
sub-investment adviser, will serve as investment adviser to the Comstock
Partners Capital Value Fund, and The Dreyfus Corporation, the Fund's
investment adviser, will serve as sub-investment adviser and administrator to
the Comstock Partners Capital Value Fund. The Comstock Partners Capital Value
Fund's investment objective and policies are substantially identical to those
of the Fund and the Comstock Partners Capital Value Fund is intended to be
operated in a manner that is substantially similar to the current operation
of the Fund.
Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares. The Fund offers Class A, Class B, Class C
and Class R shares. Class A shares are subject to a sales charge imposed at
the time of purchase, 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, Class C shares are subject to a contingent deferred sales
charge imposed at the time of redemption on redemptions made within one year
of purchase and Class R shares are sold at net asset value per share only to
institutional investors. Other differences between the four 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. Forward currency exchange contracts are
valued at the forward rate.
(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
DREYFUS CAPITAL VALUE FUND (A Premier Fund)
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
from changes in market prices of securities held. Such fluctuations are
included with the net realized and unrealized gain or loss from investments.
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. Such gains and losses
are included with net realized and unrealized gain or loss on investments.
(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 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. 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
$122,600,000 available for Federal income tax purposes to be applied against
future net securities profits, if any, realized subsequent to September 30,
1995. The carryover does not include net realized securities losses from
November 1, 1994 through September 30, 1995 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, $56,700,000 expires in fiscal 2002, and
$9,200,000 expires in fiscal 2003.
NOTE 2-BANK LINE OF CREDIT:
In accordance with an agreement with a bank, the Fund may borrow up to
$10 million under a short-term unsecured line of credit. Interest on
borrowings is charged at rates which are related to Federal Funds rates in
effect from time to time. At March 31, 1996, there were no outstanding
borrowings under the line of credit.
The average daily amount of short-term debt outstanding during the period
ended March 31, 1996, was approximately $1,311,000, with a related weighted
average annualized interest rate of 6.87%. The maximum amount borrowed at any
time during the period ended March 31, 1996 was $10 million.
DREYFUS CAPITAL VALUE FUND (A Premier Fund)
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 3-INVESTMENT ADVISORY FEE, SUB-INVESTMENT ADVISORY FEE AND OTHER
TRANSACTIONS 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 fees 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 expense
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 21\2%
of the first $30 million, 2% of the next $70 million and 11\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, 1996.
Dreyfus Service Corporation, wholly-owned subsidiary of Dreyfus, retained
$15,741 during the six months ended March 31, 1996 from commissions earned on
sales of Fund shares.
(B) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the
Act, the Fund pays the Distributor for distributing the Fund's Class B and
Class C shares at an annual rate of .75 of 1% of the value of the average
daily net assets of Class B and Class C. During the six months ended March
31, 1996, $310,626 was charged to the Fund for the Class B shares and $3,638
was charged to the Fund for the Class C shares.
(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, Class B and Class C shares for the provision of certain services.
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, 1996,
$321,068, $103,542 and $1,213 were charged to Class A, Class B and Class C
shares, respectively, by the Distributor pursuant to the Shareholder Services
Plan.
DREYFUS CAPITAL VALUE FUND (A Premier Fund)
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Effective December 1, 1995, the Fund compensates Dreyfus Transfer, Inc.,
a wholly-owned subsidiary of the Manager, under a transfer agency agreement
for providing personnel and facilities to perform transfer agency services
for the Fund. Such compensation amounted to $76,302 for the period from
December 1, 1995 through March 31, 1996.
(D) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund 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 4-SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment securities
and securities sold short, excluding short-term securities, financial
futures, options transactions, and forward currency exchange contracts during
the six months ended March 31, 1996 is summarized as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
________________ ________________
<S> <C> <C>
Long transactions................................................ $ 14,855,464 $136,845,141
Short sale transactions.......................................... 38,466,873 41,186,235
________________ ________________
TOTAL...................................................... $ 53,322,337 $178,031,376
============== =================
</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/or custodian, of cash and/or U.S. Government securities
sufficient to cover its short position. Securities sold short at March 31,
1996 and their related market values and proceeds are set forth in the
Statement of Securities Sold Short.
The Fund may invest in financial futures contracts in order to gain
exposure to or protect against changes in the market. 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 the market value of the contracts at the close
of each day's trading. Typically, variation margin payments are made or
received to reflect daily realized 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,
1996 and their related unrealized market appreciation are set forth in the
Statement of Financial Futures.
The Fund enters into forward currency exchange contracts in order to
hedge its exposure to changes in foreign currency exchange rates on its
foreign portfolio holdings. When executing forward currency exchange
contracts, the Fund is obligated to buy or sell a foreign currency at a
specified rate on a certain
DREYFUS CAPITAL VALUE FUND (A Premier Fund)
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
date in the future. With respect to sales of forward currency exchange
contracts, the Fund would incur a loss if the value of the contract increases
between the date the forward contract is opened and the date the forward
contract is closed. The Fund realizes a gain if the value of the contract
decreases between those dates. With respect to purchases of forward currency
exchange contracts, the Fund would incur a loss if the value of the contract
decreases between the date the forward contract is opened and the date the
forward contract is closed. The Fund realizes a gain if the value of the
contract increases between those dates. The Fund is also exposed to credit
risk associated with counter party nonperformance on these forward currency
exchange contracts which is typically limited to the unrealized gains on such
contracts that are recognized in the Statement of Assets and Liabilities.
The Fund may purchase put and call options, including restricted options,
which are not exchange traded, in order to gain exposure to or protect
against changes in the market. 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.
The Fund may invest in fixed and floating rate loans arranged through
private negotiations between an issuer of Sovereign Debt Obligations and one
or more financial institutions. The Fund's investments in loans are expected
in most instances to be in the form of participations in loans and
assignments of all or a portion of loans from third parties. As a result the
Fund may be subject to credit risk from the issuer of Sovereign Debt
Obligations and the third party. In addition such loans may be less liquid
and may be subject to greater price volatility.
(B) At March 31, 1996, accumulated net unrealized appreciation on
investments was $11,025,088, consisting of $29,155,695 gross unrealized
appreciation and $18,130,607 gross unrealized depreciation.
At March 31, 1996, 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,
1996, and the related statements of operations and changes in net assets and
financial highlights for the six month period ended March 31, 1996. 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, 1995 and financial highlights for each of the five years in the
period ended September 30, 1995 and in our report dated November 13, 1995, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
[Ernst & Young signature logo]
New York, New York
April 29, 1996
April 30, 1996
May 1, 1996
May 2, 1996
May 3, 1996
[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
10 Exchange Place, Suite 2010
Jersey City, NJ 07302
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. CAPSA963
[Dreyfus logo]
Capital Value Fund
(A Premier Fund)
Semi-Annual
Report
March 31, 1996
