THE HENLOPEN FUND
QUARTERLY REPORT
SEPTEMBER 30, 2000
To My Fellow Shareholders:
For the quarter ending September 30, 2000, The Henlopen Fund declined 6.0%.
Annualized returns for the Fund for 1, 3 and 5 years are 46.8%, 21.4% and 23.1%,
respectively. Since our inception on December 2, 1992, the Fund has an
annualized return of 22.9%.
This past quarter saw a continuation of the broad-based correction that took
hold in the March quarter. The typical "summer doldrums" were exacerbated by
fears that a market-hostile Federal Reserve policy and a sharp decline in the
Euro would combine to dampen earnings growth. Investor sentiment is ephemeral,
earnings and growth rates are tangible. This is why we strive to find companies
that are leaders in the strongest areas of our economy. These areas include
next-generation telecommunications equipment (encompassing fiber optics,
broadband access and packet-based technologies), specialty semiconductors and
genomic research. Current demand for products and services in these industries
is robust, and the advances they have spawned assure strong demand for many
years to come.
The Fund's holdings are well diversified among many exciting areas of
technology, as well as among non-technology sectors. Highlighted in our
previous quarterly letter, natural gas exploration continues to be a focus for
the Fund as the industry races to ease the supply/demand imbalance created by
years of inadequate spending on exploration and development in the face of
steadily rising consumption.
As we mentioned in past reports, we believe it is in our shareholders' best
interest to remain fully invested in a diversified portfolio of leading growth
companies. Navigating through the associated risks and opportunities is the
task ever before us.
We thank you for your support. Please be assured of our continued diligence on
your behalf.
Sincerely yours,
/s/ Michael L. Hershey
Michael L. Hershey
President
MANAGED BY LANDIS ASSOCIATES LLC
WWW.HENLOPENFUND.COM
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT*<F1> 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 $34,260 $34,582 $29,936
12/31/99 $49,162 $39,781 $36,103
3/31/00 $63,069 $40,678 $38,735
6/30/00 $53,512 $39,597 $37,119
9/30/00 $50,296 $39,213 $36,626
*<F1> assumes equal $10,000 investments made on inception date of December 2,
1992.
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.
STATEMENT OF NET ASSETS
September 30, 2000 (Unaudited)
QUOTED
SHARES MARKET VALUE (B)<F3>
------ --------------------
COMMON STOCKS -- 94.9% (A)<F2>
BASIC RESOURCES -- 1.5%
150,000 Alcoa Inc. $ 3,796,875
COMMUNICATIONS -- 13.4%
90,000 ADC Telecommunications, Inc. 2,420,154
70,000 Brooktrout Inc. 2,305,625
200,000 C-COR.net Corp. 3,062,500
150,000 Cabletron Systems, Inc. 4,406,250
60,000 F5 Networks, Inc. 2,040,000
130,000 Optibase Ltd. 2,283,125
90,000 Polycom, Inc. 6,027,183
40,000 QUALCOMM Inc. 2,850,000
20,000 Redback Networks Inc. 3,280,000
217,500 Science Dynamics Corp. 2,433,281
60,000 Tekelec 1,972,500
------------
33,080,618
COMMUNICATIONS SERVICES -- 1.8%
200,000 CTN Media Group, Inc. 1,300,000
250,000 FVC.COM, Inc. 1,250,000
51,472 NEXTLINK Communications, Inc.
(DBA XO Communications) 1,811,171
------------
4,361,171
COMPUTER SYSTEMS -- 3.9%
100,000 Applied Innovation Inc. 1,550,000
107,500 Auspex Systems, Inc. 1,330,312
100,000 Concurrent Computer Corp. 1,900,000
30,000 EMC Corp. (Mass.) 2,973,750
16,000 Sun Microsystems, Inc. 1,868,000
------------
9,622,062
DISTRIBUTION -- 0.3%
70,000 D & K Healthcare Resources, Inc. 844,375
ELECTRONICS/EQUIPMENT
MANUFACTURING -- 6.3%
100,000 Aeroflex Inc. 4,862,500
30,000 Flextronics International Ltd. 2,463,750
40,000 Keithley Instruments, Inc. 2,800,000
15,000 Newport Corp. 2,388,984
40,000 Tektronix, Inc. 3,072,500
------------
15,587,734
ENERGY/SERVICES -- 19.4%
60,000 Anadarko Petroleum Corp. 3,987,600
150,000 CMS Energy Corp. 4,040,625
100,000 Conoco Inc. Cl B 2,693,750
75,000 Devon Energy Corp. 4,511,250
30,000 Enron Corp. 2,628,750
100,000 EOG Resources, Inc. 3,887,500
30,000 FuelCell Energy, Inc. 2,887,029
600,000 Grey Wolf, Inc. 3,450,000
50,000 Mitchell Energy &
Development Corp. 2,331,250
60,000 Nabors Industries, Inc. 3,144,000
75,000 Newfield Exploration Co. 3,501,562
175,000 Ocean Energy Inc. 2,701,563
75,000 Universal Compression
Holdings, Inc. 2,320,312
100,000 USX-Marathon Group 2,837,500
117,200 Western Gas Resources, Inc. 2,937,325
------------
47,860,016
FINANCIAL SERVICES -- 2.3%
60,000 Commerce Bancorp, Inc. 3,491,250
14,000 Markel Corp. 2,124,500
------------
5,615,750
HEALTHCARE PRODUCTS -- 4.4%
100,000 Antex Biologics Inc. 387,500
105,000 Gene Logic Inc. 2,415,000
250,000 IGEN International, Inc. 5,031,250
160,000 PharmaNetics, Inc. 3,040,000
------------
10,873,750
MISCELLANEOUS MANUFACTURING -- 8.4%
100,000 The B.F. Goodrich Co. 3,918,750
75,000 The Boeing Co. 4,725,000
13,000 Corning Inc. 3,861,000
100,000 DONCASTERS plc ADR 2,025,000
60,000 Precision Castparts Corp. 2,302,500
130,000 Tredegar Corp. 2,250,625
150,000 Unifi, Inc. 1,528,125
------------
20,611,000
RETAILING -- 2.5%
50,000 Lowe's Companies, Inc. 2,243,750
175,000 Whitehall Jewellers, Inc. 1,389,062
75,000 Zale Corp. 2,432,813
------------
6,065,625
SEMICONDUCTORS/RELATED -- 17.3%
55,000 Altera Corp. 2,626,250
100,000 Asyst Technologies, Inc. 2,025,000
50,000 ATMI, Inc. 1,168,750
12,000 Broadcom Corp. 2,925,000
300,000 Catalyst Semiconductor, Inc. 2,831,250
60,000 Conexant Systems, Inc. 2,512,500
75,000 Electroglas, Inc. 1,279,687
60,000 Fairchild Semiconductor Corp. 1,687,500
60,000 Ibis Technology Corp. 2,178,750
30,000 KLA-Tencor Corp. 1,235,625
84,000 Kulicke & Soffa Industries, Inc. 1,118,250
60,000 Lam Research Corp. 1,256,250
60,000 National Semiconductor Corp. 2,415,000
50,000 Novellus Systems, Inc. 2,328,125
15,000 PMC-Sierra, Inc. 3,228,750
40,000 Rambus Inc. 3,157,500
285,300 Symmetricom, Inc. 4,457,813
35,000 Texas Instruments Inc. 1,651,563
30,000 Xilinx, Inc. 2,568,750
------------
42,652,313
SOFTWARE & RELATED SERVICES -- 12.8%
250,000 Bitstream Inc. 906,250
40,000 Business Objects S.A.- SP ADR 4,522,500
100,000 Citrix Systems, Inc. 2,006,250
40,000 Commerce One, Inc. 3,140,000
50,000 Critical Path, Inc. 3,037,500
15,000 i2 Technologies, Inc. 2,805,938
120,000 Information Resources
Engineering, Inc. 3,630,000
100,000 Level 8 Systems, Inc. 1,837,500
200,000 Novadigm, Inc. 3,096,860
250,000 Novell, Inc. 2,484,375
10,000 Nuance Communications Inc. 1,216,875
60,000 Wind River Systems, Inc. 2,876,250
------------
31,560,298
TRANSPORTATION -- 0.6%
200,000 RailAmerica, Inc. 1,562,500
------------
Total common stocks 234,094,087
SHORT-TERM INVESTMENTS -- 3.2% (A)<F2>
VARIABLE RATE DEMAND NOTE -- 3.2%
$7,744,027 Firstar Bank U.S.A., N.A. 7,744,027
------------
Total investments 241,838,114
Cash and receivables, less
liabilities -- 1.9% (A)<F2> 4,760,035
------------
NET ASSETS $246,598,149
------------
------------
Net Asset Value Per Share
(No par value, unlimited
shares authorized), offering
and redemption price
($246,598,149 / 9,275,305
shares outstanding) $26.59
------
------
(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.
Senior Director
Cushman & Wakefield
Philadelphia, Pennsylvania
STEPHEN L. HERSHEY, M.D.
President, First State
Orthopaedic Consultants, P.A.
Newark, Delaware
MICHAEL L. HERSHEY
Chairman,
Landis Associates LLC
Kennett Square, Pennsylvania
JOHN A. KROL
Chairman/CEO (Retired)
E.I. DuPont de Nemours
Wilmington, Delaware
P. COLEMAN TOWNSEND, JR.
Chairman,
Townsends, Inc.
Wilmington, Delaware
FIRSTAR BANK, N.A.
Custodian
FIRSTAR MUTUAL FUND
SERVICES, LLC
Transfer Agent and
Dividend Disbursing Agent
LANDIS ASSOCIATES LLC
Investment Adviser
PRICEWATERHOUSECOOPERS LLP
Independent Accountants
FOLEY & LARDNER
Legal Counsel
THE HENLOPEN FUND
LONGWOOD CORPORATE CENTER SOUTH
415 MCFARLAN ROAD, SUITE 213
KENNETT SQUARE, PENNSYLVANIA 19348
(610-925-0400) WWW.HENLOPENFUND.COM
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.
