<PAGE>
CONTRARIAN
ROBERTSON STEPHENS MUTUAL FUNDS
The Contrarian Fund
Annual Report
December 31, 1995
<PAGE>
THE CONTRARIAN FUND ANNUAL RESULTS
FUND PHILOSOPHY
The Robertson Stephens Contrarian Fund seeks to achieve maximum long-term growth
of capital by employing fundamental analysis of business and industry trends.
The Fund invests on a global basis in an effort to make timely investments in
out-of-favor industries and tries to be visionary on new themes. When
appropriate, the Fund will short sell stocks as a result of its research
discipline.
CONTENTS
Fund Highlights 1
Report to Shareholders 2
Fund Performance 6
Portfolio Summary 7
Schedule of Net Assets 8
Schedule of Securities Sold Short 12
Statement of Net Assets 14
Statement of Operations 15
Statement of Changes in Net Assets 16
Financial Highlights 17
Notes to Financial Statements 18
Independent Accountants' Report 24
Administration 24
<PAGE>
ROBERTSON, STEPHENS & COMPANY
FUND HIGHLIGHTS
CONTRARIAN STRATEGY IMPACTS RESULTS
The Contrarian Fund was up 3.92% for the December 31, 1995, quarter and 30.86%
for the 1995 calendar year. Though we are pleased with our 1995 results, they
were impacted by our cautious investment strategy and contrarian stance in
managing the portfolio.
LONG-POSITION RETURNS OFFSET SHORTS AND PUTS
Throughout 1995, the Contrarian Fund was continually hedged with approximately a
25% position in short sales and put options. The positive returns on our 75%
long position more than offset the losses we incurred on our 25% in shorts and
puts.
CONTRARIAN STANCE ADDS BALANCE
Our contrarian stance toward the retail and technology areas was quite
profitable in the December quarter, as the Fund's 33 short positions recouped
many of the year's earlier losses.
STAYING WITH DIAMOND FIELDS RESOURCES
Our 1% Diamond Fields Resources position (at cost) has continued to grow and has
now increased in value by more than 23 times over the last 20 months. We are
obviously glad we remained a long-term investor in Diamond Fields Resources.
WIDENING INTEREST IN ROYAL PLASTICS GROUP AND DUNDEE BANCORP
Our second and third largest long positions are Royal Plastics Group and Dundee
Bancorp, currently at 4.23% and 3.83% of the Contrarian Fund, respectively. We
believe both companies have tremendous growth prospects over the next three to
five years.
GOLD FUNDAMENTALS LOOK GOOD OVER NEXT FEW YEARS
Our growth gold position is currently 13% of the Fund, and we continue to be
extremely positive about the supply/demand fundamentals for gold over the next
few years.
EXPECTING NATURAL RESOURCES STOCKS TO LEAD MARKET
We remain cautious about the mainstream U.S. stock market, which has surpassed
most historical valuation levels. We expect the new leadership in the stock
market to be in natural resources.
1
<PAGE>
THE CONTRARIAN FUND ANNUAL RESULTS
[PHOTO]
FUND MANAGER
PAUL H. STEPHENS
Portfolio Manager
The Robertson Stephens
Contrarian Fund
DEAR SHAREHOLDER:
The Contrarian Fund was up 3.92% for the December 31, 1995, quarter and 30.86%
for the 1995 calendar year.
Though we are pleased with our 1995 results, they were impacted by our cautious
investment strategy and contrarian philosophy in managing the portfolio.
Throughout 1995, the Contrarian Fund was continually hedged with approximately a
25% position in short sales and put options. This was our primary method of
reducing the level of risk in the Contrarian Fund and protecting our 75% long
position. The positive returns on that 75% more than offset the losses we
incurred on our 25% in shorts and puts. Thus, we were effectively 50% net long
for all of calendar 1995. We are currently hedged in approximately the same
manner. We aim to protect capital without giving up growth of capital.
"We continue to be EXTREMELY POSITIVE"
2
<PAGE>
ROBERTSON, STEPHENS & COMPANY
Our contrarian stance toward the retail and technology areas was quite
profitable in the December quarter, as the Fund's 33 short positions recouped
many of the year's earlier losses. At the date of this writing, our shorts, S&P
500 and Russell 2000 index put options, and the technology put baskets are
collectively the Contrarian Fund's largest commitment at 24.30%.
Our second largest commitment, at 22.37% of the Fund, continues to be our very
successful investment in Diamond Fields Resources (DFR). Our 1% DFR position (at
cost) has continued to grow and has now increased in value by more than 23 times
over the last 20 months. We sold 35% of our DFR position last June at about 15
times our cost. One of the most difficult things to do as an investor is to hold
on to a major winner, as there is huge pressure to sell. We are obviously glad
we remained a long-term investor in Diamond Fields Resources.
Our second and third largest long positions are Royal Plastics Group and Dundee
Bancorp, currently at 4.23% and 3.83% of the Contrarian Fund, respectively.
These two Toronto-based companies are just becoming recognized by institutional
investors and are both currently making new highs. We believe both companies
have tremendous growth prospects over the next three to five years.
Our growth gold position is currently 13% of the Contrarian Fund, and we
continue to be extremely positive about the supply/demand fundamentals for gold
over the next few years. Our largest five growth gold positions are Newmont
Mining at 3% of the Fund, Cambior at 2.5%, Ashanti Goldfields at 2.5%, Golden
Star Resources at 1.8%, and Vengold at 0.88%. A new growth gold purchase is
London-based Bakyrchik Gold PLC, which has large and growing gold reserves in
Kazakhstan.
"We continue to be EXTREMELY POSITIVE about the supply/demand fundamentals for
gold over the next few years."
3
<PAGE>
THE CONTRARIAN FUND ANNUAL RESULTS
"WE EXPECT THE NEW LEADERSHIP IN THE STOCK MARKET TO BE IN NATURAL RESOURCES.
THEREFORE, WE HAVE MAINTAINED OUR LARGE COMMITMENT TO ALUMINUM, NICKEL, AND
ENERGY, AS WELL AS A SMALL WEIGHTING IN COPPER."
[PHOTO]
INVESTMENT MANAGEMENT
G. RANDY HECHT
President
Robertson Stephens
Investment Trust
INVESTMENT TEAM
RESEARCH
Rick Barry
Chris Bonomo
Andrew Pilara, Jr.
Borden Putnam III
M. Hannah Sullivan
TRADING
Christopher Beagle
Catherine O'Neill
ADMINISTRATION
Leslie Bauer
Jodi Daprano
Dianny Rios
4
<PAGE>
ROBERTSON, STEPHENS & COMPANY
We remain cautious about the mainstream U.S. stock market, which has surpassed
most historical valuation levels. We expect the new leadership in the stock
market to be in natural resources. Our primary premise remains that long-term
global economic growth will be the catalyst impacting the demand picture for
commodity-based securities. Therefore, we have maintained our large commitment
to aluminum, nickel, and energy, as well as a small weighting in copper. We have
copper exposure primarily through our gold-copper hybrid investments: Adrian
Resources (the Petaquilla copper and gold resource in Panama), Cambior (the huge
La Granja copper discovery in Peru), and Indochina Goldfields (the low-cost
Monywa copper deposit in Myanmar). Indochina Goldfields also has extensive gold
exploration properties in Indonesia on the islands of Java and Kalimantan, as
well as in Vietnam, Myanmar, and Korea. Our expectation is that Indochina
Goldfields will become a public company this spring. We are excited about being
one of the company's largest shareholders.
Contrarian investing is lonely and requires patience. It takes strong
conviction while ignoring current fads and conventional thinking. Contrarian
investing is an attitude. We aim to create wealth.......and keep it.
Thank you for your continued support.
January 26, 1996
Sincerely,
/s/ Paul H. Stephens
PAUL H. STEPHENS
Portfolio Manager
TO HEAR MY ONGOING THOUGHTS ON THE FUND, CALL OUR 24-HOUR HOTLINE AT
1-800-766-3863.
5
<PAGE>
THE CONTRARIAN FUND ANNUAL RESULTS
FUND PERFORMANCE
Results of a hypothetical $10,000 investment in The Robertson Stephens
Contrarian Fund and the S&P 500 Index(1).
IF INVESTED ON JUNE 30, 1993(2)
[GRAPH]
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
CONTRARIAN S&P 500
FOR THE PERIODS ENDED 12/31/95 FUND INDEX(1)
- --------------------------------------------------------------------------------
<S> <C> <C>
Three months 3.92% 5.99%
- --------------------------------------------------------------------------------
Six months 9.54% 14.53%
- --------------------------------------------------------------------------------
Nine months 28.79% 25.29%
- --------------------------------------------------------------------------------
One year 30.86% 37.53%
- --------------------------------------------------------------------------------
Since inception (6/30/93)(2) 38.30% 46.25%
- --------------------------------------------------------------------------------
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
CONTRARIAN S&P 500
FOR THE PERIODS ENDED 12/31/95 FUND INDEX(1)
<S> <C> <C>
- --------------------------------------------------------------------------------
Since inception (6/30/93)(2) 13.83% 16.39%
- --------------------------------------------------------------------------------
</TABLE>
(1) The Standard & Poor's Composite Index of 500 Stocks (S&P 500) is a widely
recognized, unmanaged index of market activity based on the aggregate
performance of a selected portfolio of publicly traded stocks. It is widely
recognized as representative of the stock market in general. Investment
results assume the reinvestment of dividends paid on the stocks comprising
the index.
(2) Date that the Fund's shares were first offered to the public.
Investors should realize that all performance data presented is
based upon past performance during limited periods of time, and that
past performance is no guarantee of future performance. Investors
should also realize that both investment return and principal value
will fluctuate so that shares, when redeemed, may be worth more or
less than their original cost.
6
<PAGE>
ROBERTSON, STEPHENS & COMPANY
PORTFOLIO SUMMARY
AS OF DECEMBER 31, 1995
[GRAPH]
TOP TEN HOLDINGS
1.
DIAMOND FIELDS RESOURCES, INC.
Nickel-copper-cobalt deposit in Labrador is expected to make Diamond Fields the
world's lowest-cost nickel supplier. Continues to develop offshore diamond
reserves in Namibia and in South Africa.
2.
ROYAL PLASTICS GROUP, LTD.
Manufactures extruded vinyl (PVC) building products and is now aggressively
marketing The Royal Housing System to the emerging markets. Its products
primarily serve the custom profile window, door, vertical blind, siding, and
pipe markets.
3.
DUNDEE BANCORP, INC.
A Toronto-based natural resource investment management company. Has grown its
assets under management from C$600 million to C$4 billion over the last three
years and currently sells at a substantial discount to its net asset value.
4.
MAXXAM, INC.
A large resource holding company. Has majority ownership and control of Kaiser
Aluminum (63%) and Pacific Lumber (100%), plus numerous real estate assets.
5.
NEWMONT MINING CORPORATION
A senior growth gold producer. Future growth based on new mines and development
projects in Peru and Indonesia.
6.
CAMBIOR, INC.
Holds a highly prospective portfolio of gold and base metal mining projects in
both North and South America.
7.
ASHANTI GOLDFIELDS -- GDR
Anchored by one of the world's premier gold deposits in Ghana. Currently
extending its presence throughout Africa.
8.
INDOCHINA GOLDFIELDS LIMITED
A private mining company. Focuses on Asian exploration and development of large,
low-cost copper and gold deposits, primarily in Myanmar (Burma), Indonesia,
Fiji, and Vietnam.
9.
KAISER ALUMINUM CORPORATION
Produces alumina and aluminum products for domestic and international markets. A
63%-owned subsidiary of MAXXAM, Inc.
10.
LONRHO PLC
A London-based holding company with a portfolio of African gold, platinum, and
agricultural assets, as well as U.S. and U.K. hotel properties. New management
has begun to realize asset value through business combinations and public
offerings.
7
<PAGE>
THE CONTRARIAN FUND ANNUAL RESULTS
SCHEDULE OF NET ASSETS
<TABLE>
<CAPTION>
DECEMBER 31, 1995 SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS
- --------------------------------------------------------------------------------
ALUMINUM - 6.0%
Kaiser Aluminum Corporation(1) 759,100 $ 9,868,300
MAXXAM, Inc. 517,800 18,252,450
Western Mining Holdings, Ltd.(1) 350,000 2,247,658
- --------------------------------------------------------------------------------
30,368,408
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CONSTRUCTION/INFRASTRUCTURE - 6.3%
American Buildings Company 296,000 6,660,000
Easco, Inc.(1) 110,500 953,062
Royal Plastics Group, Ltd. 1,666,300 24,100,641
- ------------------------------------------------------------------------------
31,713,703
- --------------------------------------------------------------------------------
COPPER MINING - 3.3%
Adrian Resources, Ltd. 1,713,003 6,272,439
Chase Resources Corporation 212,900 249,462
Indochina Goldfields, Ltd. - Restricted(2) 1,700,000 10,200,000
- --------------------------------------------------------------------------------
16,721,901
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
ENERGY - 4.9%
Anderson Exploration, Ltd. 282,100 2,892,274
Anzoil N.L. 45,842,000 3,918,411
Louisiana Land & Exploration(1) 60,000 2,572,500
McMoRan Oil & Gas Company 1,412,420 4,855,194
Nescor Energy - Restricted(2) 375,000 1,125,000
Petro-Canada Installment Receipts 500,000 2,875,000
Tide West Oil Company 505,000 6,754,375
- --------------------------------------------------------------------------------
24,992,754
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FINANCIAL SERVICES - 3.9%
Dundee Bancorp, Inc., Class A 1,956,000 19,696,081
- --------------------------------------------------------------------------------
19,696,081
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
ROBERTSON, STEPHENS & COMPANY
<CAPTION>
SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
GOLD MINING - 13.0%
Ashanti Goldfields - GDS(1,4) 600,000 $12,000,000
Bakyrchik Gold PLC 504,500 2,162,480
Cambior, Inc.(1) 1,159,900 12,635,307
Carson Gold Corporation 978,500 988,890
Central Fund of Canada, Class A(1) 487,300 2,192,850
Delta Gold Mining Corporation 1,142,600 794,925
El Callao Mining Corporation 450,000 197,730
Golden Shamrock Mines, Ltd. 6,477,000 3,995,771
Golden Star Resources, Ltd.(1) 1,677,500 8,906,535
Guyanor Resources, S.A. 335,500 835,372
MK Gold Company 636,000 1,590,000
Newmont Mining Corporation(1) 325,000 14,706,250
Queenstake Resources, Ltd. 2,039,300 746,723
Tombstone Explorations Co., Ltd. 244,500 170,102
Vengold, Inc. 4,756,400 3,831,593
Vengold, Inc., Series A Warrants(5) 1,286,000 473,238
- --------------------------------------------------------------------------------
66,227,766
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INTERNATIONAL CONGLOMERATE - 1.8%
Lonrho PLC(1) 7,310,950 9,266,035
- --------------------------------------------------------------------------------
9,266,035
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NICKEL MINING - 25.6%
Diamond Fields Resources, Inc. 6,897,600 130,071,915
- --------------------------------------------------------------------------------
130,071,915
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
REAL ESTATE - 4.0%
Atlantic Gulf Communities 371,700 2,508,975
Avatar Holdings, Inc. 262,600 9,191,000
Catellus Development Corporation 1,471,400 8,828,400
- --------------------------------------------------------------------------------
20,528,375
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SPECIALTY CHEMICALS - 0.7%
Intertape Polymer Group(1) 49,000 1,537,375
NL Industries, Inc. 160,800 1,989,900
- --------------------------------------------------------------------------------
3,527,275
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
THE CONTRARIAN FUND ANNUAL RESULTS
SCHEDULE OF NET ASSETS (CONTINUED)
<CAPTION>
SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
TRANSPORTATION SERVICES - 1.9%
China Yuchai International, Ltd.(1) 388,800 $ 3,159,000
Harper Group(1) 367,700 6,526,675
- --------------------------------------------------------------------------------
9,685,675
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS - 71.5%
(COST: $259,092,818) $ 362,799,888
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
WARRANTS
- --------------------------------------------------------------------------------
Golden Star Resources, Ltd. - Warrants(5) 75,000 0
Queenstake Resources, Ltd. - Warrants(5) 500,000 0
- --------------------------------------------------------------------------------
TOTAL WARRANTS - 0.1% (COST: $13,000) 0
<CAPTION>
SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
PREFERRED STOCKS
- --------------------------------------------------------------------------------
United Services Advisors, Pfd. 279,860 454,773
Catellus Development, 3.625%, Conv. Pfd.,
12/31/99, Series B(1) 30,000 1,200,000
- --------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS - 0.3%
(Cost: $2,852,690) 1,654,773
- --------------------------------------------------------------------------------
<CAPTION>
CONTRACTS VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
PUT OPTIONS
- --------------------------------------------------------------------------------
RUSSELL 2000 INDEX PUT OPTIONS
March 96 300 300 91,875
June 96 300 1000 625,000
S&P 500 INDEX PUT OPTIONS
March 96 500 525 19,687
March 96 525 350 21,875
March 96 540 975 103,594
March 96 565 450 101,250
March 96 600 1,700 1,168,750
June 96 525 250 59,375
June 96 550 250 96,875
June 96 565 350 205,625
TECHNOLOGY PUT BASKET
March 96 100 20 121,309
June 96 100 10 694,693
September 96 100 9 1,293,067
August 96 100 7 2,338,230
May 96 100 7 1,491,573
- --------------------------------------------------------------------------------
TOTAL PUT OPTIONS - 1.7% (Cost: $11,816,723) 8,432,778
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
ROBERTSON, STEPHENS & COMPANY
<CAPTION>
- -------------------------------------------------------------------------------
<S> <C>
TOTAL INVESTMENTS - 73.5% (COST: $273,762,231) $ 372,887,439
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS
- -------------------------------------------------------------------------------
Cash 35,870
Repurchase Agreement 4,506,000
State Street Bank and Trust Company, 5.00%, dated
12/29/95, due 1/02/96, maturity value $4,508,503
(collateralized by $3,515,000 par value U.S. Treasury
Notes, 8.75%, due 05/15/17)
- -------------------------------------------------------------------------------
TOTAL CASH AND CASH EQUIVALENTS - 0.9% 4,541,870
- -------------------------------------------------------------------------------
DEPOSITS WITH BROKERS AND CUSTODIAN BANK FOR
SECURITIES SOLD SHORT
- -------------------------------------------------------------------------------
Cash 2,000,000
U.S. Treasury Bills, 5.3%, due 01/25/96 88,692,060
Repurchase Agreement (Segregated) 27,000,000
State Street Bank and Trust Company, 5.00%, dated
12/29/95, due 1/02/96, maturity value $27,015,000
(collateralized by $20,900,000 par value U.S. Treasury
Notes, 8.75%, due 05/15/17)
- -------------------------------------------------------------------------------
TOTAL DEPOSITS WITH BROKERS AND CUSTODIAN BANK
FOR SECURITIES SOLD SHORT - 23.2% 117,692,060
- -------------------------------------------------------------------------------
RECEIVABLE FROM BROKERS FOR SECURITIES SOLD SHORT - 24.8% 126,091,492
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
SECURITIES SOLD SHORT - (22.2)% (Proceeds: $118,970,688) (112,746,628)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
OTHER LIABILITIES, NET - (0.2)% (989,492)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $ 507,476,741
- -------------------------------------------------------------------------------
</TABLE>
(1) Income-producing securities.
(2) See 4.f. in Notes to Financial Statements.
(3) ADR - American Depository Receipts.
(4) GDS - Global Depository Shares.
(5) See 4.g. in Notes to Financial Statements.
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
THE CONTRARIAN FUND ANNUAL RESULTS
SCHEDULE OF SECURITIES SOLD SHORT
<TABLE>
<CAPTION>
DECEMBER 31, 1995 SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE/MEDICAL TECHNOLOGY/HMO - (2.0)%
Cerner Corporation 279,000 $ 5,719,500
Integrated Health Services, Inc. 185,800 4,645,000
- --------------------------------------------------------------------------------
10,364,500
- --------------------------------------------------------------------------------
MEDICAL SUPPLIES - (3.5)%
Biomet, Inc. 371,500 6,640,562
Enzo Biochem, Inc. 175,100 3,370,675
MediSense, Inc. 236,900 7,491,962
- --------------------------------------------------------------------------------
17,503,199
- --------------------------------------------------------------------------------
MEDICAL SERVICES - (0.4)%
Isolyser Company, Inc. 142,300 1,992,200
- --------------------------------------------------------------------------------
1,992,200
- --------------------------------------------------------------------------------
COMPUTER HARDWARE & COMPONENTS - (0.9)%
Silicon Graphics, Inc. 171,700 4,721,750
- --------------------------------------------------------------------------------
4,721,750
- --------------------------------------------------------------------------------
COMPUTER SOFTWARE - (2.0)%
Avid Technology, Inc. 114,500 2,175,500
FTP Software, Inc. 187,400 5,434,600
Imnet Systems, Inc. 73,500 1,764,000
Seventh Level, Inc. 23,000 322,000
- --------------------------------------------------------------------------------
9,696,100
- --------------------------------------------------------------------------------
DATA TELECOMMUNICATIONS - (0.9)%
DSC Communications Corporation 123,100 4,539,312
- --------------------------------------------------------------------------------
4,539,312
- --------------------------------------------------------------------------------
ELECTRONIC COMPONENTS - (0.8)%
Identix, Inc. 148,800 1,581,000
X Rite, Inc. 175,900 2,484,588
- --------------------------------------------------------------------------------
4,065,588
- --------------------------------------------------------------------------------
PERIPHERALS - (1.4)%
InFocus Systems, Inc. 137,500 4,967,188
Proxima Corporation 96,500 2,135,062
- --------------------------------------------------------------------------------
7,102,250
- --------------------------------------------------------------------------------
SEMICONDUCTORS - (0.4)%
Atmel Corporation 84,900 1,899,638
- --------------------------------------------------------------------------------
1,899,638
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS - (1.9)%
Cidco, Inc. 167,900 4,281,450
Colonial Data Technologies Corp. 232,200 4,760,100
Equalnet Holding Corporation 86,500 627,125
- --------------------------------------------------------------------------------
9,668,675
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
ROBERTSON, STEPHENS & COMPANY
<CAPTION>
SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
TECHNOLOGY/NETWORK SYSTEMS - (0.1)%
American Power Conversion Corporation 72,000 $ 684,000
- --------------------------------------------------------------------------------
684,000
- --------------------------------------------------------------------------------
CONSUMER & SPECIALTY RETAIL - (4.3)%
Bed Bath & Beyond, Inc. 192,200 7,459,762
Best Buy Company, Inc. 70,000 1,137,500
Callaway Golf Company 165,000 3,733,125
First Alert, Inc. 103,500 892,688
Gymboree Corporation 137,700 2,840,062
Micro Warehouse, Inc. 135,700 5,869,025
- --------------------------------------------------------------------------------
21,932,162
- --------------------------------------------------------------------------------
RESTAURANTS - (1.7)%
IHOP Corporation 120,000 3,120,000
Papa John's International, Inc. 136,000 5,601,500
- --------------------------------------------------------------------------------
8,721,500
- --------------------------------------------------------------------------------
CONSUMER TECHNOLOGY - (1.9)%
Acclaim Entertainment, Inc. 295,171 1,313,867
Electronic Arts, Inc. 200,000 5,225,000
Sensormatic Electronics Corporation 190,900 3,316,887
- --------------------------------------------------------------------------------
9,855,754
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL SECURITIES SOLD SHORT - (22.2)%
(PROCEEDS: $118,970,688) $112,746,628
- --------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
THE CONTRARIAN FUND ANNUAL RESULTS
STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<S> <C>
ASSETS
- --------------------------------------------------------------------------------
Investments, at value (Cost: $273,762,231) $ 372,887,439
Cash and Cash Equivalents 4,432,484
Deposits with brokers and custodian bank for
securities sold short 117,801,446
Receivable from brokers for securities sold short 126,091,492
Receivable for investments sold 1,102,973
Receivable for fund shares subscribed 1,370,360
Receivables, other 39,752
- --------------------------------------------------------------------------------
TOTAL ASSETS 623,725,946
- --------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------
Securities sold short (Proceeds: $118,970,688) 112,746,628
Payable for investments purchaseed 335,490
Payable for fund shares redeemed 2,011,165
Accrued expenses 1,128,693
Payables, other 27,229
- --------------------------------------------------------------------------------
TOTAL LIABILITIES 116,249,205
- --------------------------------------------------------------------------------
TOTAL NET ASSETS $ 507,476,741
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Paid-in capital 448,475,149
Accumulated net realized gain from investments 30,514,626
Accumulated net realized loss from options (63,862,419)
Accumulated net realized loss from securities sold short (12,999,883)
Net unrealized appreciation on investments 102,509,153
Net unrealized depreciation on options (3,383,945)
Net unrealized appreciation on securities sold short 6,224,060
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL NET ASSETS $ 507,476,741
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PRICING OF SHARES: $ 13.78
Net Asset Value, offering and redemption price
per share (net assets of $507,476,741 applicable
to 36,817,846 shares of beneficial interest
outstanding with no par value)
- --------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
ROBERTSON, STEPHENS & COMPANY
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE NINE MONTHS ENDED DECEMBER 31, 1995
- -------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
- -------------------------------------------------------------------------------
Interest $ 7,423,520
Dividends (Net of foreign tax withheld of $48,403) 1,406,931
- -------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 8,830,451
- -------------------------------------------------------------------------------
EXPENSES
- -------------------------------------------------------------------------------
Investment advisory fees 5,648,970
Distribution fees 2,824,481
Custodian and transfer agent fees 629,651
Professional fees 204,044
Shareholder reports 119,775
Registration and filing fees 79,621
Dividend expense for securities sold short 65,042
Trustees' fees and expenses 16,875
Other 16,500
- -------------------------------------------------------------------------------
TOTAL EXPENSES 9,604,959
- -------------------------------------------------------------------------------
NET INVESTMENT LOSS (774,508)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
REALIZED GAIN/(LOSS) AND UNREALIZED APPRECIATION/(DEPRECIATION)
ON INVESTMENTS, OPTIONS AND SECURITIES SOLD SHORT
- -------------------------------------------------------------------------------
Net realized gain from investments 59,125,328
Net realized loss from options (36,060,843)
Net realized loss from securities sold short (12,590,530)
Net change in unrealized appreciation on investments 99,776,939
Net change in unrealized appreciation on options 12,067,990
Net change in unrealized depreciation on securities sold short (3,688,560)
- -------------------------------------------------------------------------------
TOTAL NET REALIZED GAIN AND UNREALIZED APPRECIATION ON
INVESTMENTS, OPTIONS AND SECURITIES SOLD SHORT 118,630,324
- -------------------------------------------------------------------------------
Net Increase in Net Assets Resulting From Operations $ 117,855,816
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
THE CONTRARIAN FUND ANNUAL RESULTS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
NINE MONTHS ENDED YEAR ENDED
12/31/95 3/31/95
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
- --------------------------------------------------------------------------------------------------------------------
Net investment loss $ (774,508) $ (1,464,747)
Net realized gain/(loss) from investments 59,125,328 (17,429,453)
Net realized loss from options (36,060,843) (27,569,968)
Net realized (loss)/gain from securities sold short (12,590,530) 1,299,923
Net change in unrealized appreciation/(depreciation) on investments 99,776,939 (10,936,753)
Net change in unrealized appreciation/(depreciation) on options 12,067,990 (28,287,843)
Net change in unrealized (depreciation)/appreciation on securities sold short (3,688,560) 1,117,823
- --------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 117,855,816 (83,271,018)
- --------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
- --------------------------------------------------------------------------------------------------------------------
Realized gains on investments - (12,605,850)
- --------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS - (12,605,850)
- --------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- --------------------------------------------------------------------------------------------------------------------
Net (decrease)/increase in net assets resulting from capital share transactions (8,025,100) 8,572,147
- --------------------------------------------------------------------------------------------------------------------
TOTAL CAPITAL SHARE TRANSACTIONS (8,025,100) 8,572,147
- --------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE/(DECREASE) IN NET ASSETS 109,830,716 (87,304,721)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------------------------------------------
Beginning of period 397,646,025 484,950,746
End of period $ 507,476,741 $ 397,646,025
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
ROBERTSON, STEPHENS & COMPANY
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING PERIOD ENDED YEAR ENDED PERIOD ENDED
THROUGHOUT EACH ERIOD: 12/31/95(2) 3/31/95 3/31/94(1)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value, beginning of period $ 10.70 $ 12.34 $ 10.00
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Net investment loss (0.01) (0.04) (0.02)
Net realized gain/(loss) and unrealized appreciation/(depreciation) on investments 3.09 (1.35) 2.36
- ----------------------------------------------------------------------------------------------------------------------------------
Total Increase/(Decrease) in Net Assets Resulting From Operations 3.08 (1.39) 2.34
- ----------------------------------------------------------------------------------------------------------------------------------
Distribution from realized gains on investments - (0.25) -
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 13.78 $ 10.70 $ 12.34
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 28.79% (11.23)% 23.40%
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period $507,476,741 $397,646,025 $484,950,746
Ratio of Expenses to Average Net Assets 2.54% 2.46%(3) 2.22%
Ratio of Net Investment Loss to Average Net Assets (0.20)% (0.27)%(3) (0.77)%
Portfolio Turnover Rate 29% 79% 14%
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
1 The Fund commenced operations on 6/3/93.
2 Represents a 9-month period then ended.
3 If the Fund had paid all of its expenses and there had been no
reimbursement by the Adviser, the ratio of expenses to average net assets
for the year ended March 31, 1995 would have been 2.58% and the ratio of
net investment loss to average net assets would have been (0.42)%.
Per-share data for each period has been determined by using the average
number of shares outstanding throughout each period.
Ratios, except for total return and portfolio turnover rate, have been
annualized.
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
THE CONTRARIAN FUND ANNUAL RESULTS
NOTES TO FINANCIAL STATEMENTS
The Robertson Stephens Contrarian Fund (the "Fund") is a series of the Robertson
Stephens Investment Trust (the "Trust"), a Massachusetts business trust
organized on May 11, 1987. The Fund is registered under the Investment Company
Act of 1940, as amended (the "1940 Act"), as a non-diversified, open-end
management investment company. The Fund became effective to offer shares to the
public on June 30, 1993. Prior to the public offering, shares were offered in a
private placement offering on June 3, 1993, at $10 per share, to sophisticated
investors under Section 4(2) of the Securities Act of 1933. The Trust offers
nine series of shares -- The Robertson Stephens Emerging Growth Fund, The
Robertson Stephens Value+Growth Fund, The Robertson Stephens Contrarian Fund,
The Robertson Stephens Developing Countries Fund, The Robertson Stephens Growth
& Income Fund, The Robertson Stephens Partners Fund, The Robertson Stephens
Information Age Fund, The Robertson Stephens Global Natural Resources Fund, and
The Robertson Stephens Global Low-Priced Stock Fund. The assets for each series
are segregated and accounted for separately.
The Contrarian Fund, for book and tax purposes, has a calendar (12/31) year-end.
These financial statements reflect operations for a nine-month period.
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES:
The following policies are in conformity with generally accepted accounting
principles.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates.
a. INVESTMENT VALUATIONS:
Marketable equity securities including options and foreign securities are valued
at the last sale price on the principal exchange or market on which they are
traded; or, if there were no sales that day, at the mean between the closing bid
and asked prices. Foreign securities prices are generally denominated in foreign
currencies. The currencies are translated into U.S. dollars by using the
exchange rates quoted at the close of The London Stock Exchange prior to when
the Fund's net asset value is next determined. At December 31, 1995, 97.7% of
the Fund's long positions and 100% of its short positions were valued in this
manner.
Securities for which market quotations are not readily available are valued at
their fair value as determined in accordance with the guidelines and procedures
adopted by the Fund's Board of Trustees. The guidelines and procedures use all
available resources including quotations from market makers and fundamental
valuation methods which include, but are not limited to, the analysis of: the
effect of any restrictions on the sale of the security, product development and
trends of the security's issuer, changes in the industry and other competing
companies, significant changes in the issuer's financial position, and any other
event which could have a significant impact on the value of the security. At
December 31, 1995, 2.3% of the Fund's long positions were valued using these
guidelines and procedures.
Principally as a result of significant stock price appreciation, on December 31,
1995, and on February 14, 1996, approximately 25.6% and 25.4%, respectively, of
the Contrarian Fund's net assets were invested in the common stock of Diamond
Fields Resources, a Canadian corporation. Shares of Diamond Fields Resources are
freely traded on the Toronto Stock Exchange; the shares held by the Fund are
currently restricted as to resale within the U.S.
16
<PAGE>
ROBERTSON, STEPHENS & COMPANY
As its normal course of business, the Fund has invested a significant portion of
its assets in companies within a number of industries involving base metals,
precious metals, and oil/energy. Accordingly, the performance of the Fund may be
subject to a greater risk of market fluctuation than that of a fund invested in
a wider spectrum of market or industrial sectors.
b. REPURCHASE AGREEMENTS:
Repurchase agreements are fully collateralized by U.S. government securities.
All collateral is held by the Fund's custodian and is monitored daily to ensure
that the collateral's market value equals at least 100% of the repurchase price
under the agreement. However, in the event of default or bankruptcy by the
counterparty to the agreement, realization and/or retention of the collateral
may be subject to legal proceedings. The Fund's policy is to limit repurchase
agreement transactions to those parties deemed by the Fund's Investment Adviser
to have satisfactory creditworthiness.
c. FEDERAL INCOME TAXES:
The Fund has made no provision for federal income tax for the nine months ended
December 31, 1995. The Fund complied with requirements of the Internal Revenue
Code for qualifying as a regulated investment company so as not to be subject to
federal income tax.
d. SECURITIES TRANSACTIONS:
Securities transactions are accounted for on the date the securities are
purchased, sold, or sold short (trade date). Realized gains and losses on
securities transactions are determined on the basis of specific identification.
e. FOREIGN CURRENCY TRANSLATION:
The accounting records of the Fund are maintained in U.S. dollars. Investment
securities and all other assets and liabilities of the Fund denominated in a
foreign currency are translated into U.S. dollars at the exchange rate each day.
Purchases and sales of securities, income receipts, and expense payments are
translated into U.S. dollars at the exchange rate in effect on the dates of the
respective transactions.
The Fund does not isolate the portion of the fluctuations on investments
resulting from changes in foreign currency exchange rates from the fluctuations
in market prices of investments held. Such fluctuations are included with the
net realized gain or loss and unrealized appreciation or depreciation from
investments, options, and securities sold short.
f. INVESTMENT INCOME:
Dividend income is recorded on the ex-dividend date. Interest income is accrued
and recorded daily.
g. CAPITAL ACCOUNTS:
The Fund follows the provisions of the AICPA's Statement of Position 93-2
"Determination, Disclosure and Financial Statement Presentation of Income,
Capital Gain and Return of Capital Distributions by Investment Companies"
("SOP"). The purpose of this SOP is to report undistributed net investment
income and accumulated net realized gain or loss accounts in such a manner as to
approximate amounts available for future distributions to shareholders, if any.
19
<PAGE>
THE CONTRARIAN FUND ANNUAL RESULTS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 2 CAPITAL SHARES:
a. TRANSACTIONS:
The Fund has authorized an unlimited number of shares of beneficial interest
with no par value. Transactions in capital shares for the nine months ended
December 31, 1995, and the year ended March 31, 1995, were as follows:
<TABLE>
<CAPTION>
4/1/95 - 12/31/95 SHARES AMOUNT
- -------------------------------------------------------------------------------
<S> <C> <C>
Shares sold 27,676,642 $ 349,025,223
Shares reinvested - -
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Shares redeemed (28,017,625) (357,050,323)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Net (340,983) $ (8,025,100)
- -------------------------------------------------------------------------------
<CAPTION>
4/1/94 - 3/31/95 SHARES AMOUNT
- -------------------------------------------------------------------------------
<S> <C> <C>
Shares sold 50,424,429 $ 580,777,746
Shares reinvested 1,072,034 11,311,877
- -------------------------------------------------------------------------------
51,496,463 592,089,623
- -------------------------------------------------------------------------------
Shares redeemed (53,652,411) (583,517,476)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Net (2,155,948) $ 8,572,147
- -------------------------------------------------------------------------------
</TABLE>
NOTE 3 TRANSACTIONS WITH AFFILIATES:
a. ADVISORY FEES AND EXPENSE LIMITATION:
Under the terms of an advisory agreement, which is reviewed and approved
annually by the Board of Trustees, the Fund pays Robertson, Stephens & Company
Investment Management, L.P. ("RSIM"), an investment advisory fee calculated at
an annual rate of 1.50% of the average daily net assets of the Fund. For the
nine months ended December 31, 1995, the Fund incurred investment advisory fees
of $5,648,970. When applicable, RSIM agrees to reimburse the Fund for any annual
operating expenses, including investment advisory fees but excluding
distribution fees and dividend expense for short sales, which exceed the most
stringent limits prescribed by any state in which the Fund's shares are offered
for sale. The Fund has obtained a waiver from the State of California to exclude
a portion of its advisory fees for purposes of determining the compliance by the
Fund with the State's Expense Limitations. For the nine months ended December
31, 1995, there was no expected reimbursement of the advisory fees and other
expenses.
b. AFFILIATED PERSONS:
Certain officers and Trustees of the Fund are also Members and/or officers of
Robertson, Stephens & Company Group, L.L.C. ("RS Group"), the parent of
Robertson, Stephens & Company LLC (RS & Co.), the Fund's Distributor and RSIM,
the Fund's Adviser. G. Randy Hecht, President, Chief Executive Officer and a
Trustee of the Fund, is also a Director of RSIM, a Member of RS Group, and Chief
Operating Officer of RS & Co. Terry R. Otton, Chief Financial Officer of the
Fund, is a Member of RS Group and Chief Financial Officer of RS & Co. John P.
Rohal, a Trustee of the Fund, is a Member of RS Group and Director of Research
for RS & Co. Paul H. Stephens, Portfolio Manager, is a Member of RS Group and
Chief Investment Officer of RS & Co. All affiliated and access persons, as
defined in the 1940 Act, follow strict guidelines and policies on personal
trading as outlined in the Fund's Code of Ethics.
20
<PAGE>
ROBERTSON, STEPHENS & COMPANY
c. COMPENSATION OF TRUSTEES AND OFFICERS:
Trustees and officers of the Fund who are affiliated persons receive no
compensation from the Fund. Trustees of the Fund who are not interested persons
of the Trust, as defined in the 1940 Act, collectively received compensation and
reimbursement of expenses of $16,875 for the nine months ended
December 31, 1995.
d. DISTRIBUTION FEES:
The Fund has entered into an agreement with RS & Co. for distribution services
and has adopted a Plan of Distribution pursuant to Rule 12b-1 under the 1940
Act, which is reviewed annually by the Fund's Board of Trustees. Under this
Plan, RS & Co. is compensated for services in such capacity including its
expenses in connection with the promotion and distribution of the Fund's shares.
The distribution fee is calculated at an annual rate of 0.75% of the average
daily net assets of the Fund. For the nine months ended December 31, 1995, the
Fund incurred distribution fees of $2,824,481.
e. BROKERAGE COMMISSIONS:
RSIM may direct orders for investment transactions to RS & Co. as broker-dealer,
subject to Fund policies as stated in the prospectus, regulatory constraints,
and the ability of RS & Co. to provide competitive prices and commission rates.
All investment transactions in which RS & Co. acts as a broker may only be
executed on an agency basis. Subject to certain constraints, the Fund may make
purchases of securities from offerings or underwritings in which RS & Co. has
been retained by the issuer. For the nine months ended December 31, 1995, the
Fund paid brokerage commissions of $6,840 to RS & Co. which represented 1% of
total commissions paid for the period.
NOTE 4 INVESTMENTS:
a. PORTFOLIO TURNOVER RATE:
The portfolio turnover rate, which is calculated based on the lesser of the cost
of investments purchased or the proceeds from investments sold (excluding
options, securities sold short, and short-term investments) measured as a
percentage of the Fund's average monthly investment portfolio for the nine
months ended December 31, 1995, was 29%.
b. TAX BASIS OF INVESTMENTS:
At December 31, 1995, the cost of investments for federal income tax purposes
was $391,364,722. Accumulated net unrealized appreciation on investments was
$110,748,961, consisting of gross unrealized appreciation and depreciation of
$177,228,106, and $(66,479,145), respectively.
c. INVESTMENT PURCHASES AND SALES:
For the nine months ended December 31, 1995, the cost of investments purchased
and the proceeds from investments sold (excluding options, securities sold
short, and short-term investments) were $160,842,180 and $217,827,823,
respectively.
d. OPTIONS:
At December 31, 1995, 1.0% of the Fund's net assets consisted of premiums paid
for the purchase of S&P 500 Index put options to hedge portfolio long
investments against adverse price fluctuations. In addition, 1.3% of the Fund's
net assets represent premiums paid for the purchase of put options on baskets of
securities of issuers in the technology sector of the overall market.
21
<PAGE>
THE CONTRARIAN FUND ANNUAL RESULTS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The risk associated with the purchase of these put options is limited to the
premium originally paid. The premium paid for the purchase of these options is
included in the Fund's "Statement of Net Assets" as an investment and
subsequently mark-to-market daily to reflect the market value of the options.
TECHNOLOGY PUT BASKET OPTIONS:
The Technology Put Basket Options (the "Options") are European style put
options. The Options, customized for the Fund, are based on the underlying price
of different groups of high technology stocks. The market value of the Options
is determined daily based on the price of the underlying stocks, market
volatility, exercise date, and other relevant parameters.
e. SHORT SALES:
Short sales are transactions in which the Fund sells a security it does not own,
in anticipation of a decline in the market value of that security. To complete
such a transaction, the Fund must borrow the security to deliver to the buyer
upon the short sale; the Fund then is obligated to replace the security borrowed
by purchasing it in the open market at some later date. The Fund will incur a
loss if the market 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
will realize a gain if the security declines in value between those dates. All
short sales must be fully collateralized. The Fund maintains the collateral in a
segregated account consisting of cash and/or U.S. government securities
sufficient to collateralize its obligation on the short positions. The Fund may
also sell short "against the box" (i.e., the Fund enters into a short sale as
described above, while holding an offsetting long position in the security which
is sold short). If the Fund enters into a short sale against the box, it will
hold an equivalent amount of the securities to cover its position while the
short sale is outstanding. The Fund limits the value of short sale positions
(excluding short sales "against the box") to 25% of the Fund's total assets. At
December 31, 1995, the Fund had 18% of its total assets in short positions. For
the nine months ended December 31, 1995, the cost of investments purchased to
cover short sales and the proceeds from investments sold short were $142,564,487
and $150,129,469, respectively.
Included in the "Other Assets, Net" category in the Schedule of Net Assets are
the following securities sold short where the Fund has purchased the underlying
securities to effectively close out the short positions. At December 31, 1995,
the Fund chose not to complete the transactions which would have required
delivery of the purchased securities to the lender. The Fund does not consider
these boxed positions as investments.
<TABLE>
<CAPTION>
SECURITIES SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
Acclaim Entertainment 94,500 $ 1,169,438
- --------------------------------------------------------------------------------
Avid Technology 35,000 665,000
- --------------------------------------------------------------------------------
Cidco, Inc. 13,500 344,250
- --------------------------------------------------------------------------------
Colonial Data Technologies 105,900 2,170,950
- --------------------------------------------------------------------------------
Electronic Arts 24,500 640,062
- --------------------------------------------------------------------------------
Isolyser Company, Inc. 153,200 2,144,800
- --------------------------------------------------------------------------------
$ 7,134,500
- --------------------------------------------------------------------------------
</TABLE>
22
<PAGE>
ROBERTSON, STEPHENS & COMPANY
f. RESTRICTED SECURITIES:
A restricted security is a security which has been purchased through a private
offering and cannot be resold to the general public without prior registration
under the Securities Act of 1933. At December 31, 1995, the Fund held restricted
securities with an aggregate value of $11,325,000, which represented 2.2% of the
Fund's total net assets. Restricted securities are valued according to the
guidelines and procedures adopted by the Fund's Board of Trustees.
<TABLE>
<CAPTION>
SHARES COST VALUE ACQUISITION
SECURITY (000) (000) (000) DATE
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Indochina Goldfields 233 $ 233 $ 1,398 3/24/94
117 117 702 3/28/94
750 1,469 4,500 5/26/94
600 3,000 3,600 8/18/95
- --------------------------------------------------------------------------------
Nescor Energy 125 125 375 4/18/94
250 500 750 5/05/94
- --------------------------------------------------------------------------------
</TABLE>
g. WARRANTS:
A warrant is an option which normally entitles the holder to purchase a
proportionate amount of a particular class of the issuer's securities at a
predetermined price during a specific period.
The following warrants were valued such that when the exercise price of the
warrant was less than that of the underlying common stock, the warrant was
priced using the modified Black-Scholes Valuation Formula. The Black-Scholes
Valuation Formula values a warrant by determining the differential between the
exercise price of the warrant and the current price of the underlying stock
based on a number of factors. These factors include, but are not limited to,
current price of the underlying stock, exercise price of the warrant, time to
expiration, assumed riskless rate of interest, compounded rate of return on the
stock, and standard deviation of the return on the stock. If the exercise price
was greater than that of the underlying common stock, the warrant was valued at
zero. This valuation method is subject to frequent review and is in accordance
with the guidelines and procedures adopted by the Fund's Board of Trustees.
<TABLE>
<CAPTION>
SHARES COST VALUE EXPIRATION
SECURITY (000) (000) (000) DATE
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Golden Star Resources -
Warrants 75 0 0 7/31/96
- --------------------------------------------------------------------------------
Queenstake Resources -
Warrants 500 0 0 3/18/97
- --------------------------------------------------------------------------------
Vengold, Inc. - Series A
Warrants 1,286 13 473 6/30/00
- --------------------------------------------------------------------------------
</TABLE>
h. FOREIGN SECURITIES:
Foreign securities investments involve special risks and considerations not
typically associated with those of U.S. origin. These risks include, but are not
limited to, revalue of currencies, adverse political, social, and economic
developments, and less reliable information about issuers. Moreover, securities
of many foreign companies and markets may be less liquid and their prices more
volatile than those of U.S. companies and markets. At December 31, 1995, the
Fund had its largest concentrated investments, worth 33% of the Fund's total
assets, in Canada.
23
<PAGE>
THE CONTRARIAN FUND ANNUAL RESULTS
INDEPENDENT ACCOUNTANTS' REPORT
To the Shareholders and Board of Trustees of The Robertson Stephens Contrarian
Fund
In our opinion, the accompanying statement of net assets, including the
schedules of net assets and of securities sold short, and the related statements
of operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of The Robertson
Stephens Contrarian Fund (one of the series constituting The Robertson Stephens
Investment Trust, hereinafter referred to as the "Fund") at December 31, 1995,
the results of its operations for the nine months then ended, and the changes in
its net assets and the financial highlights for each of the periods presented,
in conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Fund's management; our responsibility
is to express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with generally
accepted auditing standards, which require that we plan and perform the audits
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1995, by
correspondence with the custodian and brokers and the application of alternative
auditing procedures where confirmations from brokers were not received, provides
a reasonable basis for the opinion expressed above.
/s/ Price Waterhouse LLP
Price Waterhouse LLP
San Francisco, California
February 15, 1996
ADMINISTRATION
OFFICERS AND TRUSTEES
G. Randy Hecht
President, Chief Executive Officer
Terry R. Otton
Chief Financial Officer
Leonard B. Auerbach, Trustee
Daniel R. Cooney, Trustee
James K. Peterson, Trustee
John P. Rohal, Trustee
Robert I. Goldbaum, Secretary
INVESTMENT ADVISER
Robertson, Stephens & Company Investment Management, L.P.
555 California Street, Suite 2600
San Francisco, CA 94104
DISTRIBUTOR
Robertson, Stephens & Company LLC
555 California Street, Suite 2600
San Francisco, CA 94104
1-800-766-3863
TRANSFER AGENT AND DISBURSING AGENT
State Street Bank & Trust Company
c/o National Financial Data Services
Kansas City, MO
1-800-272-6944
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
AUDITORS
Price Waterhouse LLP
San Francisco, CA
LEGAL COUNSEL
Ropes & Gray
Boston, MA
This report is submitted for the information of shareholders of The Robertson
Stephens Contrarian Fund. It is not authorized for distribution to prospective
investors unless preceded or accompanied by an effective prospectus.
Published February 27, 1996
24
<PAGE>
THE ROBERTSON STEPHENS MUTUAL FUNDS
In addition to THE CONTRARIAN FUND, Robertson Stephens offers the following
mutual funds:
THE DEVELOPING COUNTRIES FUND
A PORTFOLIO OF GROWING COMPANIES IN EMERGING MARKETS - Invests in publicly
traded equities of developing countries. The Fund may engage in short sales
and/or invest in private placement emerging market equity securities. No load.
Managed by Michael Hoffman.
THE EMERGING GROWTH FUND
SEEKING TO INVEST IN AMERICA'S MOST DYNAMIC, GROWTH-ORIENTED INDUSTRIES -
Invests primarily in common stocks of emerging growth companies (predominantly
technology, specialty retailing, and health care) with above-average growth
potential. No load. Managed by Dave Evans.
THE GLOBAL LOW-PRICED STOCK FUND
SEEKING OVERLOOKED AND UNDERVALUED COMPANIES - Invests in companies worldwide
that are low-priced (stock prices no greater than $10 per share), have future
growth potential, but are underappreciated by other investors. No load. Managed
by Hannah Sullivan.
THE GLOBAL NATURAL RESOURCES FUND
PRIMARILY FOCUSING ON ATTRACTIVE HARD ASSET COMPANIES - Invests in equities of
companies engaged in the discovery, development, production, or distribution of
natural resources, such as energy, metals, and forest products. No load. Managed
by Andy Pilara, Jr.
THE GROWTH & INCOME FUND
SEEKING HIGH GROWTH WHILE MODERATING RISK - Invests primarily in small- and mid-
cap company stocks and convertible bonds and preferred stocks. No load. Managed
by John Wallace.
THE INFORMATION AGE FUND
FOCUSING ON INVESTMENTS IN THE INFORMATION TECHNOLOGY SECTOR - Invests in a wide
range of technology companies with strong fundamentals, market advantage, and
growth potential, including computer hardware and software, telecommunications,
and multimedia. No load. Managed by Ron Elijah.
THE PARTNERS FUND
SMALL-CAP VALUE WITH A CONTRARIAN DISCIPLINE - Invests with a value methodology
combining traditional Graham & Dodd balance sheet analysis and cash flow
analysis. No load. Managed by Andy Pilara, Jr.
THE VALUE+GROWTH FUND
A GROWTH FUND FOR VALUE-CONSCIOUS INVESTORS - Invests in mid-cap growth
companies with favorable price/earnings ratios in sectors with the potential for
above-average growth. Ability to short sell. No load. Managed by Ron Elijah.
For a discussion of the risks associated with using options, international
investing, investing in a few sectors, allocating a large percentage of the
portfolio to one security, and short selling, please read the prospectus.
Design: Broom & Broom, Inc., San Francisco
Photography: Jerry Orabona, Bill Zemanek
<PAGE>
ROBERTSON STEPHENS & COMPANY
MUTUAL FUNDS
555 CALIFORNIA STREET, SUITE 2600
SAN FRANCISO, CALIFORINA 94104
FUND NEWS & INFORMATION
ROBERTSON STEPHENS
INVESTOR SERVICES
- - Knowledgeable mutual fund representatives.
- - Automated access to daily net asset values.
- - Portfolio managers' hotline, 24 hours a day.
1-800-766-3863
ROBERTSON STEPHENS
MUTUAL FUND E-MAIL
[email protected]
ROBERTSON STEPHENS
ACCOUNTLINK
- - Automated account information, 24 hours a day.
1-800-624-8025
FUND LISTINGS
The Fund is listed in THE WALL STREET JOURNAL, USA TODAY, INVESTOR'S BUSINESS
DAILY, and most local newspapers as Contra under the heading Robertson Stephens.
Its computer quotation symbol is RSCOX.
The views expressed in this report were those of the Fund's portfolio manager as
of the date specified, and may not reflect the views of the portfolio manager on
the date they are first published or at any other time thereafter. RSIM and its
affiliates may buy or sell investments at any time for the Fund or their other
clients or for their own accounts and will not necessarily do so in a manner
consistent with the views expressed in this report. The prices at which they buy
or sell investments may be affected favorably by the contents of this report or
the timing of its publication. THE VIEWS EXPRESSED IN THIS REPORT ARE INTENDED
TO ASSIST SHAREHOLDERS OF THE FUND IN UNDERSTANDING THEIR INVESTMENT IN THE FUND
AND DO NOT CONSTITUTE INVESTMENT ADVICE; INVESTORS SHOULD CONSULT THEIR OWN
INVESTMENT PROFESSIONALS AS TO THEIR INDIVIDUAL INVESTMENT PROGRAMS.
