THE HENLOPEN FUND
(THE HENLOPEN FUND LOGO)
QUARTERLY REPORT
SEPTEMBER 30, 1999
To My Fellow Shareholders:
During the quarter, investors' concerns were focused primarily on interest rates
and equity valuation levels. These crosscurrents were evident in the generally
poor results in the healthcare, financial and consumer sectors, while
communications and semiconductor related issues continued to perform well. The
debate regarding the above issues shows no sign of abating as of this writing,
and it is our intention to pursue our bottom-up investment approach to uncover
attractive investment opportunities.
For the quarter ending 9/30/99, The Henlopen Fund declined 1.6%. By contrast,
the S&P 500 declined 6.2% and the Lipper Growth Fund Index declined 5.2%.
Annualized returns for the Fund for 1, 3, and 5 years are +43.2%, +17.7% and
+21.7%, respectively. Since the inception of the Fund on 12/2/92, the
annualized return has been +19.8%.
In the communications sector, several Fund holdings have performed strongly of
late. FVC.COM is poised to become a key supplier of video networking equipment
to carriers such as Sprint and Bell Atlantic, which are moving quickly to
develop broadband access services. While small compared with other networking
equipment companies such as Cisco, FVC has carved out an attractive niche in
video networking and is currently growing revenues at 50% per year. Also in the
communications area, Metro One Telecommunications provides enhanced directory
assistance services to wireless and wireline carriers. By the end of the year
2000, Metro One will operate over 30 call centers around the country to assist
carriers in servicing and exploding wireless customer base.
As one of our principal semiconductor holdings, Conexant Systems is the largest
pure-play manufacturer of chips for the communications industry. Recently spun
out from Rockwell International, Conexant's products are used in modems, fax
machines, networking equipment and wireless phones. Strong revenue growth in
network access and wireless communications is driving sharp margin and earnings
increases.
In closing, we are pleased to announce that John A. Krol has joined the Board of
Trustees of The Henlopen Fund. Jack is retired chairman and chief executive
officer of the DuPont Co. and is a current member of the boards of directors of
the Mead Corp., J. P. Morgan & Co., Armstrong World Industries, Inc. and
Milliken & Co. He also serves as a member of the Boards of Trustees of Tufts
University and the University of Delaware.
Sincerely yours,
/s/Michael L. Hershey
Michael L. Hershey
President
MANAGED BY LANDIS ASSOCIATES, INC.
THE HENLOPEN FUND
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN
The Henlopen Fund, S&P 500 Index and Lipper Growth Fund Index
The Henlopen Fund S&P 500 Index Lipper Growth Fund Index
----------------- ------------- ------------------------
12/2/92 $10,000 $10,000 $10,000
12/31/92 $10,010 $10,162 $10,204
3/31/93 $10,821 $10,604 $10,507
6/30/93 $11,562 $10,654 $10,661
9/30/93 $12,450 $10,926 $11,173
12/31/93 $12,999 $11,179 $11,426
3/31/94 $12,760 $10,758 $11,084
6/30/94 $12,126 $10,804 $10,841
9/30/94 $12,853 $11,332 $11,373
12/31/94 $12,644 $11,330 $11,246
3/31/95 $13,583 $12,430 $12,059
6/30/95 $15,494 $13,613 $13,349
9/30/95 $17,819 $14,692 $14,563
12/31/95 $17,453 $15,574 $14,918
3/31/96 $19,233 $16,409 $15,591
6/30/96 $21,442 $17,144 $16,107
9/30/96 $21,024 $17,670 $16,566
12/31/96 $21,182 $19,141 $17,527
3/31/97 $20,072 $19,658 $17,468
6/30/97 $22,519 $23,083 $20,228
9/30/97 $28,095 $24,811 $22,301
12/31/97 $25,971 $25,524 $22,450
3/31/98 $31,183 $29,084 $25,229
6/30/98 $29,902 $30,041 $25,946
9/30/98 $23,918 $27,058 $22,985
12/31/98 $30,323 $32,818 $28,216
3/31/99 $30,744 $34,456 $29,647
6/30/99 $34,816 $36,885 $31,571
9/30/99*<F1> $34,260 $34,582 $29,936
*<F1> Ending value represents annualized increases of 19.8%, 19.9% and 17.4%,
respectively.
Past performance is not predictive of future performance. Investment return and
principal value will fluctuate, and redemption value may be more or less than
original cost.
THE HENLOPEN FUND
STATEMENT OF NET ASSETS
September 30, 1999 (Unaudited)
SHARES OR QUOTED
PRINCIPAL AMOUNT MARKET VALUE (B)<F3>
- ---------------- --------------------
COMMON STOCKS -- 97.9% (A)<F2>
BASIC RESOURCES -- 4.6%
20,000 Barrick Gold Corp. $ 435,000
30,000 De Beers Cons Mines - ADR 810,000
100,000 Meridian Gold Inc. 681,250
61,250 Placer Dome Inc. 911,094
80,000 Royal Gold, Inc. 400,000
-----------
3,237,344
BUSINESS SERVICES -- 1.7%
85,000 TeleSpectrum Worldwide Inc. 504,687
21,000 USWeb Corp. 720,563
-----------
1,225,250
COMMUNICATIONS -- 23.7%
12,000 AT&T Corp. 522,000
22,000 C-COR.NET Corp. 668,250
12,000 Cisco Systems Inc. 822,750
16,000 Comcast Corp. Special Cl A NV 638,000
17,000 Cox Communications, Inc. 709,750
100,000 FVC.COM, Inc. 1,406,250
12,000 Lucent Technologies Inc. 778,500
50,000 Metro One
Telecommunications, Inc. 959,375
35,000 Newbridge Networks Corp. 912,188
10,000 Nextel Communications, Inc. 678,125
8,500 Nokia Corp. "A" ADR 763,406
20,000 Nortel Networks Corp. 1,020,000
50,000 Ortel Corp. 775,000
70,000 PairGain Technologies, Inc. 892,500
40,000 Polycom, Inc. 1,906,248
6,000 QUALCOMM Inc. 1,135,125
50,000 Tekelec 690,625
25,000 Time Warner Telecom Inc. 521,875
28,000 Tollgrade Communications Inc. 752,500
-----------
16,552,467
COMPUTER PERIPHERALS -- 2.7%
60,000 Ciprico Inc. 667,500
20,000 Information Resources
Engineering, Inc. 418,750
35,000 Interphase Corp. 818,125
-----------
1,904,375
COMPUTER SYSTEMS -- 2.1%
100,000 Concurrent Computer Corp. 681,250
20,000 RadiSys Corp. 785,000
-----------
1,466,250
CONSUMER DURABLES -- 0.7%
60,000 Lazare Kaplan International Inc. 483,750
DISTRIBUTION -- 2.0%
45,000 American Aircarriers
Support, Inc. 393,750
42,500 D & K Healthcare
Resources, Inc. 993,437
-----------
1,387,187
ELECTRONICS/EQUIPMENT MANUFACTURING -- 0.6%
10,000 Unisys Corp. 451,250
ENERGY/SERVICES -- 6.0%
50,000 AstroPower, Inc. 600,000
20,000 Barrett Resources Corp. 738,750
30,000 Nabors Industries, Inc. 750,000
30,000 Penn Virginia Corp. 622,500
46,000 Plains Resources Inc. 822,250
10,000 Vastar Resources, Inc. 625,625
-----------
4,159,125
FINANCIAL SERVICES -- 4.9%
12,500 Markel Corp. 2,275,781
85,000 Philadelphia Consolidated
Holding Corp. 1,147,500
-----------
3,423,281
FOOD & BEVERAGES -- 0.5%
50,000 WLR Foods, Inc. 343,750
HEALTHCARE PRODUCTS -- 6.2%
120,000 Endosonics Corp. 1,020,000
90,000 Gene Logic Inc. 568,125
110,000 IGEN International, Inc. 2,743,125
-----------
4,331,250
HEALTHCARE SERVICES -- 0.7%
30,000 Cerner Corp. 457,500
INTERNET/SOFTWARE/SERVICES -- 2.1%
9,000 CMGI Inc. 922,500
40,000 Open Market, Inc. 525,000
-----------
1,447,500
LEISURE/ENTERTAINMENT -- 3.0%
40,000 Action Performance
Companies, Inc. 842,500
50,000 Steiner Leisure Ltd. 1,250,000
-----------
2,092,500
MISCELLANEOUS MANUFACTURING -- 4.9%
43,000 P. H. Glatfelter Co. 706,812
22,000 Koala Corp. 676,500
60,000 Quixote Corp. 900,000
20,000 TJ International, Inc. 502,500
30,000 Tredegar Corp. 641,250
-----------
3,427,062
RETAILING -- 8.5%
10,000 Cheap Tickets, Inc. 323,750
57,000 David's Bridal, Inc. 423,937
28,000 Electronic Boutique
Holdings Corp. 721,000
15,000 Friedman's Inc. 132,187
72,500 Hastings Entertainment Inc. 625,313
12,000 Lowe's Companies, Inc. 585,000
12,000 Tiffany & Co. 719,250
50,000 Whitehall Jewellers, Inc. 1,437,500
25,000 Zale Corp. 957,813
-----------
5,925,750
SEMICONDUCTORS/RELATED -- 13.7%
20,000 Altera Corp. 867,500
13,000 Applied Materials, Inc. 1,009,937
38,000 Applied Science and
Technology, Inc. 783,750
31,000 ATMI Inc. 1,156,688
20,000 Conexant Systems, Inc. 1,453,124
30,000 DSP Communications, Inc. 570,000
10,000 KLA-Tencor Corp. 650,000
15,000 National Semiconductor Corp. 457,500
10,000 Novellus Systems, Inc. 674,375
65,000 Symmetricom, Inc. 487,500
18,000 Teradyne, Inc. 634,500
10,000 Texas Instruments Inc. 822,500
-----------
9,567,374
SOFTWARE & RELATED SERVICES -- 4.8%
74,000 ANSYS, Inc. 730,750
65,000 Level 8 Systems, Inc. 820,625
25,000 Novell, Inc. 517,188
50,000 Parametric Technology Corp. 675,000
50,000 Systems & Computer
Technology Corp. 628,125
-----------
3,371,688
TRANSPORTATION -- 1.6%
110,000 RailAmerica, Inc. 1,086,250
Miscellaneous -- 2.9%
100,000 Troy Group, Inc. 756,250
7,000 Tyco International Ltd. 722,750
70,000 U.S. Concrete, Inc. 568,750
-----------
2,047,750
-----------
Total common stocks 68,388,653
SHORT-TERM INVESTMENTS -- 1.7% (A)<F2>
VARIABLE RATE DEMAND NOTE
$1,154,588 Firstar Bank U.S.A., N.A. 1,154,588
-----------
Total investments 69,543,241
Cash and receivables, less
liabilities 0.4% (A)<F2> 276,910
-----------
NET ASSETS $69,820,151
-----------
-----------
Net Asset Value Per Share
(No par value, unlimited shares
authorized), offering and redemption
price ($69,820,151 / 3,821,489
shares outstanding) $18.27
------
------
(a)<F2> Percentages for the various classifications relate to net assets.
(b)<F3> Each security, excluding short-term investments, is valued at the last
sale price reported by the principal security exchange on which the
issue is traded, or if no sale is reported, the latest bid price.
Securities which are traded over-the-counter are valued at the latest
bid price. Short-term investments are valued at cost which
approximates quoted market value.
BOARD OF TRUSTEES
ROBERT J. FAHEY, JR. JOHN A. KROL
Director of Real Estate Investment Banking Chairman/CEO (Retired)
Cushman &Wakefield of Pennsylvania, Inc. E.I. DuPont de Nemours
Philadelphia, Pennsylvania Wilmington, Delaware
MICHAEL L. HERSHEY
Chairman, Landis Associates, Inc.
Kennett Square, Pennsylvania
STEPHEN L. HERSHEY, M.D.
President, P. COLEMAN TOWNSEND, JR.
First State Orthopaedic Consultants, P.A. Chairman, Townsends, Inc.
Newark, Delaware Wilmington, Delaware
Custodian Investment Adviser
FIRSTAR BANK MILWAUKEE, NA LANDIS ASSOCIATES, INC.
Transfer Agent and Independent Accountants
Dividend Disbursing Agent PRICEWATERHOUSECOOPERS LLP
FIRSTAR MUTUAL FUND
SERVICES, LLC Legal Counsel
FOLEY & LARDNER
THE HENLOPEN FUND
LONGWOOD CORPORATE CENTER SOUTH
SUITE 213
415 MCFARLAN ROAD
KENNETT SQUARE, PENNSYLVANIA 19348
(610-925-0400)
This report is not authorized for use as an offer of sale or a solicitation of
an offer to buy shares of The Henlopen Fund unless accompanied or preceded by
the Fund's current prospectus.
