The Apex Mid Cap Growth Fund
(formerly The Bhirud Mid Cap Growth Fund)
Soundview Plaza, 1266 East Main Street
Stamford, CT 06902 Telephone. (800) 831-9922
SEMI-ANNUAL REPORT
January 31,1997
March 24, 1997
Enclosed is the semi- annual report of the Apex Mid Cap Growth Fund, for
the 6 months ending January 31, 1997.
Suresh L. Bhirud
(Suresh L. Bhirud)
Chairman of the Board
THE APEX MID CAP GROWTH FUND
SCHEDULE OF INVESTMENTS REPORT DATE 31-Jan-97
<TABLE>
Ticker CO. NAME Shares % MV Cost Value Market Value
<S> <C> <C> <C> <C> <C>
COCA COLA CO 500 26,467.50 28,937.50
TOTAL BTLD & CAN SOFT DRIN 2.03 26,467.50 28,937.50
FILA HOLDINGS 500 32,405.00 34,250.00
TOTAL MEN,YTH,BOYS FRNSH,W 2.4 32,405.00 34,250.00
MECKLERMEDIA CORP * 2,000 42,870.00 41,500.00
TOTAL PERIODICAL:PUBG,PUBG 2.91 42,870.00 41,500.00
NOVEN PHARMACEUTICALS INC * 2,000 36,120.00 27,250.00
MERCK & CO INC 500 41,467.50 45,375.00
TOTAL PHARMACEUTICALS 5.09 77,587.50 72,625.00
GENZYME CORP * 2,000 51,630.00 56,000.00
TOTAL BIOLOGICAL PDS, EX DIAGNSTICS 3.93 51,630.00 56,000.00
NIKE INC 500 30,842.50 33,937.50
TOTAL RUBBER AND PLASTICS 2.38 30,842.50 33,937.50
E M C CORP MASS * 1,000 32,376.00 37,875.00
TOTAL COMPUTER STORAGE DEV 2.66 32,376.00 37,875.00
TELEVIDEO SYS INC * 10,000 12,050.00 4,063.00
TOTAL COMPUTER TERMINALS 0.28 12,050.00 4,063.00
C-CUBE MICROSYSTEMS INC * 1,500 65,340.00 54,000.00
U S ROBOTICS CORP * 1,500 84,105.00 102,750.00
TOTAL COMPUTER PERIPHERAL 10.99 149,445.00 156,750.00
ZENITH ELECTRS CORP * 6,000 106,170.00 66,750.00
TOTAL HOUSEHOLD AUDIO & VI 4.68 106,170.00 66,750.00
NEWBRIDGE NETWORKS CORP * 1,200 35,217.00 41,400.00
TOTAL TELE & TELEGRAPH APP 2.9 35,217.00 41,400.00
QUALCOMM INC * 2,000 101,750.00 112,000.00
TOTAL RADIO,TV BROADCAST, 7.85 101,750.00 112,000.00
RAMTRON INTL CORP * 3,000 33,000.00 19,500.00
MICRON TECHNOLOGY INC 1,000 37,570.00 34,750.00
TOTAL SEMICONDUCTOR,RELATE 3.8 70,570.00 54,250.00
GUIDANT CORP 500 28,280.00 27,875.00
TOTAL SURGICAL,MED INSTR,A 1.95 28,280.00 27,875.00
TRIMEDYNE INC * 5,000 38,750.00 20,781.50
IMATRON INC * 2,000 9,125.00 6,062.60
TOTAL ELECTROMEDICAL APPAR 1.88 47,875.00 26,844.10
CAI WIRELESS SYS INC * 5,000 62,375.00 8,281.50
TOTAL CABLE AND OTHER PAY 0.58 62,375.00 8,281.50
TIFFANY & CO NEW 1,600 60,504.99 59,600.00
TOTAL JEWELRY STORES 4.18 60,504.99 59,600.00
HANOVER DIRECT INC * 5,000 9,212.50 5,000.00
U S OFFICE PRODS CO * 1,000 35,185.00 33,125.00
TOTAL CATALOG, MAIL-ORDER 2.67 44,397.50 38,125.00
SCHWAB CHARLES CORP NEW 1,000 31,810.00 37,375.00
TOTAL SECURITY BROKERS & D 2.62 31,810.00 37,375.00
STERLING COMM INC * 1,000 34,820.00 33,875.00
INTUIT INC * 1,000 52,250.00 29,250.00
COMPUTERVISION CORP NEW * 5,000 55,350.00 37,500.00
COMPUTER ASSOCIATE INTL INC 1,000 65,935.00 45,375.00
APPLIX INC * 3,000 107,960.00 51,046.80
CAMELOT CORP * 25,000 110,312.50 17,187.50
TOTAL PREPACKAGED SOFTWARE 15.02 426,627.50 214,234.30
SUN MICROSYSTEMS INC * 2,800 84,487.51 88,900.00
TOTAL CMP INTEGRATED SYS D 6.23 84,487.51 88,900.00
CUC INTL INC * 1,500 38,570.00 37,125.00
TOTAL BUSINESS SERVICES, N 2.6 38,570.00 37,125.00
DISNEY WALT HLDG CO 900 67,338.00 65,925.00
TOTAL MISC AMUSEMENT & REC 4.62 67,338.00 65,925.00
LIPOSOME INC * 2,000 41,272.50 45,750.00
TOTAL COML PHYSICAL, BIOLO 3.21 41,272.50 45,750.00
SANCTUARY WOODS * 8,000 54,990.00 1,500.00
VISTA 2000 INC * 4,000 44,280.00 250
TOTAL OTHER 0.12 99,270.00 1,750.00
TOTAL COMMON STOCKS 97.61 1,802,188.00 1,392,122.00
TOTAL INVESTMENTS 1,802,188.00 1,392,122.00
OTHER ASSETS (LESS LIABILITIES) 34,140.00 34,140.00
NET ASSETS 100.00 1,836,328.00 1,426,262.00
NET ASSETS VALUE PER SHARE 7.5
OFFERING PRICE PER SHARE 7.96
* Non - income producing securities
<FN>
<F1>
See accompanying notes to financial statements Page: 2
</FN>
</TABLE>
THE APEX MID CAP GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) - FOR 6 MONTHS ENDED
JANUARY 31, 1997
ASSETS
Investment Securities at Value $1,392,122
(Identified cost - $1,802,188) (Note 1)
Cash 11,269
Receivable From Advisor (Note 4) 28,048
Deferred organization expenses (Note 5) 19,707
Dividends receivable 435
Prepaid insurance 2,171
Total Assets $1,453,752
LIABILITIES
Payables:
Fund Shares Redeemed $ 5,879
Other accrued expenses $ 21,611
Total Liabilities ($27,490)
NET ASSETS (Equivalent to $7.50 per share based on 190,242
shares outstanding) $ 1,426,262
COMPOSITION OF NET ASSETS:
Paid in Capital $ 2,676,259
Distribution in excess of accumulated
Net Realized gain/loss (839,930)
Accumulated Net Investment Income --
Net Unrealized Depreciation of Investments (410,067)
Total Net Assets $1,426,262
STATEMENT OF OPERATIONS (UNAUDITED) FOR 6 MONTHS ENDED JANUARY 31, 1997
INVESTMENT INCOME
Dividends $ 369
EXPENSES
Audit $ 6,036
Fund Accounting 5,369
Transfer Agent (Note 6) 5,815
Legal 5,000
Miscellaneous 0
Shareholder Report 458
Directors 0
Registration 2,383
Organization (Note 5) 9,982
Insurance 1,658
Fund Administration (Note 4) 764
Custodian 3,672
Investment Advisor (Note 4) 3,821
12b-1 Fees 2,182
Total Expenses ( 47,140)
Expense Reimbursement/ waived by Advisor (Note 4) 4,585
Expense net of Reimbursement/ waiver ( 42,555)
NET INVESTMENT LOSS $ (42,186)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net Realized Gain (Loss) on Investments $(65,284)
Change in Unrealized Appreciation (Depreciation) of
Investments 213,376
NET REALIZED/UNREALIZED GAIN (LOSS) ON INVESTMENTS $148,092
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $105,906
[FN]
See accompanying Notes to Financial Statements PAGE: 3
<TABLE>
THE APEX MID CAP GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
<CAPTION>
For 6 Months ended For year Ended
January 31,1997 July 31, 1996
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Net Investment Income/ (loss) $ (42,186) $ (83,993)
Net Realized Gain / (loss) on investment
Securities Sold (65,284) 322,785
Net unrealized appreciation/(depreciation)
of Investments 213,376 (1,000,785)
Net Increase (Decrease) in Net Assets
Resulting from Operations $ 105,906 $ (761,993)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Dividend distributions paid 00 117,118
Capital Gains 00 00
Total Distributions 00 117,118
CAPITAL SHARE TRANSACTIONS
Shares Sold 4,471 141,665
Shares issued in lieu of Cash Distributions 00 (117,118)
Cost of shares Redeemed (538,975) (4,114,309)
Increase (Decrease) in Net Assets Due to
Capital Share Transactions (534,504) (4,089,762)
TOTAL INCREASE (DECREASE) IN NET ASSETS (428,598) (4,734,637)
NET ASSETS BEGINNING OF PERIOD 1,854,860 6,589,497
NET ASSETS END OF PERIOD $ 1,426,262 $ 1,854,860
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH
PERIOD (UNAUDITED)
<CAPTION>
For the For the For the
6 Months Ended Year Ended Year Ended
January 31, 1997 July31,1996 July 31, 1995
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $7.18 $9.71 $10.50
Income/(Loss) from Investment Operations:
Net Investment Income/(Loss) (0.13) (0.35) (0.14)
Net Gain/(Loss) on Securities (Both
Realized and Unrealized) 0.45 (2.63) 0.86
Total from Investment Operations 0.32 (2.98) 0.72
Distributions:
Dividend Distributions Paid 0.00 0.45 0.00
Distributions from Capital Gains 0.00 0.00 (1.51)
Total Distributions 0.00 0.00 (1.51)
NET ASSET VALUE, END OF PERIOD $ 7.50 $ 7.18 $ 9.71
Total Return (Not Reflecting Sales Load) 4.45%**(26.05)% 8.97%
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands) $1,426 $1,855 $6,589
Ratios to Average Net Assets:
Expenses 2.52%** 2.52% 2.68%
Net Investment Income/(Loss) (2.50)%**(2.11)% (1.02)%
Effect of Reimbursements/Waivers on
Above Ratios 0.27%** 1.28% 0.19%
Portfolio Turnover Rate 78.59%** 320.89% 224.77%
Average Commission Rate Paid $/Share $ 0.0597 $ 0.0413 $ 0.0586
* Based on weighted average shares outstanding
** Not annualized
<FN>
<fn1>
See accompanying Notes to Financial Statements PAGE: 4
</FN>
</TABLE>
THE APEX MID CAP GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTH ENDED JANUARY 31, 1997
1. SIGNIFICANT ACCOUNTING POLICIES
Bhirud Funds, Inc. (the "Fund") is a diversified open-end
management investment company currently consisting of The Apex
Mid Cap Growth Fund portfolio (the "Portfolio"). The Fund was
incorporated in Maryland on May 27, 1992. Prior to November 4,
1992 (commencement of operations), the Fund had no operations
other than the sale of 10,000 shares of stock on August 4, 1992
at a cost of $100,000 to Thomas James MidCap Partners
representing the initial capital. The following is a summary of
significant accounting policies followed by the Fund:
SECURITY VALUATION
Readily marketable portfolio securities listed on the New York
Stock Exchange are valued at the last sale price reflected at
the close of the regular trading session of the New York Stock
Exchange on the business day as of which such value is being
determined. If there has been no sale on such day, the
securities are valued at the mean of the closing bid and asked
prices on such day. If no bid or asked prices are quoted on
such day, then the security is valued by such method as the
Board of Directors shall determine in good faith to reflect its
fair value. Readily marketable securities not listed on the New
York Stock Exchange but listed on other national securities
exchanges or admitted to trading on the National Association of
Securities Dealers Automated Quotations, Inc. ("NASDAQ")
National List are valued in like manner. Portfolio securities
traded on more than one national securities exchange are valued
at the last price on the business day as of which such value is
being determined as reflected on the tape at the close of the
exchange representing the principal market for such securities.
Readily marketable securities traded in the over-the-counter
market, including listed securities whose primary market is
believed by the Advisor to be over-the-counter but excluding
securities admitted to trading on the NASDAQ National List, are
valued at the mean of the current bid and asked prices as
reported by NASDAQ or, in the case of securities not quoted by
NASDAQ, the National Quotation Bureau or such other comparable
sources as the Board of Directors deem appropriate to reflect
their fair value.
United States Government obligations and other debt instruments
having sixty days or less remaining until maturity are stated at
amortized cost. Debt instruments having a greater remaining
maturity will be valued at the highest bid price obtained from a
dealer maintaining an active market in that security or on the
basis of prices obtained from a pricing service approved as
reliable by the Board of Directors.
SECURITY TRANSACTIONS AND INVESTMENT INCOME
Security transactions are accounted for on the dates the
securities are purchased or sold (the trade dates), with
realized gain and loss on investments determined by using
specific identification as the cost method. Interest income
(including amortization of premium and discount, when
appropriate), is recorded as earned. Dividend income and
dividends and capital gain distributions to shareholders are
recorded on the ex-dividend date.
FEDERAL INCOME TAXES
The Fund intends to qualify as a "regulated investment company"
under Subchapter M of the Internal Revenue Code and distribute
all of its taxable income to its shareholders. Therefore, no
federal income tax provision is required.
<PAGE>
2. CAPITAL STOCK TRANSACTIONS
The Articles of Incorporation, dated May 27, 1992 permit the
Fund to issue twenty billion shares (par value $0.001).
Transactions in shares of common stock for the six month ended
January 31, 1997 were as follows:
Shares Amount
Beginning Balance 258,430 $ 3,210,763
Shares Sold 577 4,471
Shares Issued in
Reinvestment of Dividends 00 00
Shares Redeemed ( 68,765) ( 538,975)
Net Increase ( 68,188) ( 534,504)
Ending Balance 190,242 $2,676,259
3. INVESTMENTS
Purchases and sales of securities for the six month ended
January 31st, 1997 other than short-term securities, aggregated
$1,274,188 and $1,830,005, respectively. The cost of securities
is substantially the same for Federal income tax purposes.
For Federal income tax purposes:
Aggregate Cost $1,802,188
Gross Unrealized Appreciation 70,718
Gross Unrealized Depreciation (480,785)
Net Unrealized Depreciation ($410,067)
4. INVESTMENT ADVISORY CONTRACT
The Fund employs Bhirud Associates, Incorporated (the "Advisor")
to provide a continuous investment program for the Fund's
portfolio, provide all facilities and personnel, including
Officers required for its administrative management, and to pay
the compensation of all Officers and Directors of the Fund who
are affiliated with the Advisor. As compensation for the
services rendered and related expenses borne by the Advisor, the
Fund pays the Advisor a fee, computed and accrued daily and
payable monthly, equal to 1.00% of the first $250 million of the
average net assets of the Portfolio; 0.75% of the average net
assets of the Portfolio between $250 and $500 million; and 0.65%
of the average net assets of the Portfolio over $500 million.
The Advisor has voluntarily agreed to reimburse the Fund in the
event the Fund's expenses exceed certain prescribed limits.
During the fiscal year ended July 31, 1996 the Advisor elected
to defer the payment of Advisor fees payable in amount of
$39,604. The Advisor has elected to waive these fees and apply
the deferred fees against expense reimbursements due to the
fund. Total reimbursements in the amount of $56, 534 have been
accrued for the fiscal year 1996. With the application of the
deferred advisory fees a net receivable from the advisor in the
amount of $16,929 has been recorded for the 1996 fiscal year.
For the six month ended January 31, 1997, the Advisor was
entitled to fees of $ 3,821. The Advisor has voluntarily agreed
to waive these fess, considering the small assets of the Fund.
The Advisory and Administrative Services Contracts provide that
if, in any fiscal year, the aggregate expenses of a Fund,
excluding interest, taxes, brokerage and extraordinary expenses,
but including the Advisory and Administrative Services fees,
exceed the expense limitation of any state in which the Trust is
registered for sale, the Funds may deduct from fees paid to the
Advisor and Administrator their proportionate share of such
excess expenses to the extent of the fees payable. Currently,
the most restrictive state limitation is 2.5% of the first $30
million, 2% of the next $70 million and 1.5% of the excess over
$100 million of the average value of the Fund's net assets.
Pursuant to the provisions in the contract, expense
reimbursements were not required for the six months ended
January 31, 1997.
The Fund retained Bhirud Associates, Inc. ("BAI") to act as
Administrator for the Fund from November 1, 1994. BAI provided
administrative services for the Fund. BAI earned administrative
services fees of $11,772 for the period of November 1, 1994
through July 31, 1995. During the fiscal year ended July 31,
1996 the Administrator elected to defer the payment of
Administrative service fees payable in amount of $7,141. During
the six months ended January 31, 1997 the Administrator elected
to defer the payment of Administrative service fees payable in
amount of $764.
From December 1, 1996, the Star Bank , N.A. has been providing
custodian services and fund accounting, and transfer agency
functions are provided by American Data Services for the Fund.
5. ORGANIZATION EXPENSES
The organization and start-up expenses of the Fund are being
amortized on a straight line basis over a period of 60 months.
The initial shareholder has agreed in the event that any of the
initial 10,000 shares it owns are redeemed during the period of
amortization of the Fund's organization and start-up expenses,
the redemption proceeds will be reduced by any such unamortized
organizational expenses in the same proportion as the number of
shares being redeemed bears to the initial shares outstanding at
the time of redemption.
6. DISTRIBUTION PLAN
The Fund's Board of Directors has adopted a distribution plan
(the "Plan") under Section 12(b) of the Investment Company Act
of 1940 and Rule 12b-1 thereunder. The Plan provides that the
Portfolio may bear certain expenses and costs which in the
aggregate are subject to a maximum of 0.25% per annum of the
Portfolio's average daily net assets. For the six months ended
January 31st, 1997, the Fund has incurred distribution costs of
$1536 payable to H. J. Meyers, formerly Thomas James Associates,
Inc. and $334 payable to Bhirud Associates, Inc.
7. TRANSACTIONS WITH AFFILIATES
During the 6 months ended January 31st, 1997 the Fund paid no
brokerage commissions to Bhirud Associates, Inc.
8. RECLASSIFICATION OF CAPITAL ACCOUNTS
In accordance with generally accepted accounting principals, the
Fund recorded reclassifications in the capital accounts. The
Fund recorded a permanent book/tax difference of
$(83,993) as of July 31, 1996, from undistributed net investment
income to paid in capital. These reclassifications have no
impact on net asset value of the Fund and are designed generally
to present undistributed income and realized gains on a tax
basis which is considered to be more informative to the
shareholder.
THE APEX MID CAP GROWTH FUND
SOUNDVIEW PLAZA, 1266 EAST MAIN STREET
STAMFORD, CT 06902
(800) 831-9922
BOARD OF DIRECTORS
Suresh L. Bhirud Chairman of the Board; President of
Bhirud Associates, Inc.
Alexander N. Crowder, III Management Consultant
Michael Smith* General Counsel, H. J. Meyers & Co. Inc.
M. John Sterba, Jr. Chairman of Investment Management
Advisors, Inc.
Tim Fenton Partner, Fenton & Zelenetz, Inc.
* "Interested person" as defined in the Investment Company Act of 1940.
OFFICERS
Suresh L. Bhirud Chairman of the Board & Treasurer
Michael Smith President & Secretary
Harish L. Bhirud Vice-President
Investment Advisor & Distributor Bhirud Associates, Inc.
Administrator Bhirud Associates, Inc.
Custodian Star Bank, N.A.
Legal Counsel Battle Fowler
Independent Auditors Van Buren & Hauke, LLC
Page: 8
