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THE HENLOPEN FUND
QUARTERLY REPORT
MARCH 31, 2000
To My Fellow Shareholders:
For the Quarter ending March 31, 2000, The Henlopen Fund appreciated 28.3%.
Annualized returns for the Fund for 1, 3 and 5 years are 105.2%, 46.5% and
35.9%, respectively. Since our inception on December 2, 1992, the Fund has an
annualized return of 28.6%.
Over the course of the last several quarters, we have been operating within what
is perhaps the best investment climate most of us have seen in our investment
careers. Strong domestic economic growth, benign interest rates, modest
inflation, an increased pace of global economic development, political stability
and rapid technological innovation have combined to create an environment where
sustained advances in equity prices have become the norm. Historical parameters
have been superceded as many forceful new investors (on-line investors and day
traders) have added yet another dynamic to equity markets. Professional
pundits, for at least two years, have been groping for an appropriate valuation
mechanism for equities within such an environment.
While the philosophical elements of valuation and the "New Economy" are
interesting to debate, we have tried to keep our investment efforts aimed at the
more practical elements where we can exert some level of control. Clearly, new
developments in the fields of electronics, software, communications and
biotechnology hold the promise of changing the way we live, work and relax. Yet
it is important to remember that these changes will be evolutionary as they are
absorbed into our multi-trillion-dollar economy and will sometimes manifest
themselves in ways that are totally unpredictable. (e.g., Ken Olsen, CEO of
Digital Equipment, wondered in the 1980's why anyone would want to own a
personal computer). Cognizant of the ever-present uncertainties, we have built
a portfolio that is broadly exposed to industries with the best long-term growth
opportunities.
As growth stock investors, we recognize the risks associated with volatility
caused by shifts in economic circumstance and investment fashion. While the
market has a tendency to concentrate on an ever-changing set of short-term
investment themes such as "e-commerce", "indexing" or "momentum investing", we
rely on our time-tested philosophy of investment in market-leading growth
companies to continue delivering superior performance over time for our
shareholders.
Sincerely yours,
/s/ Michael L. Hershey
Michael L. Hershey
President
MANAGED BY LANDIS ASSOCIATES, INC.
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
*<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
March 31, 2000 (Unaudited)
SHARES OR
PRINCIPAL QUOTED
AMOUNT MARKET VALUE (B)<F3>
- --------- --------------------
LONG-TERM INVESTMENTS -- 96.2%(A)<F2>
COMMON STOCKS -- 96.2% (A)<F2>
AUTO & TRUCK RELATED -- 0.9%
25,000 General Motors Corp. $ 2,070,313
BASIC RESOURCES -- 2.7%
200,000 AK Steel Holding Corp. 2,075,000
25,000 Alcoa Inc. 1,756,250
30,000 De Beers Cons
Mines - ADR 688,125
125,000 Union Pacific Resources
Group Inc. 1,812,500
------------
6,331,875
BUSINESS SERVICES -- 1.3%
40,000 AppNet, Inc. 1,880,000
25,000 iGATE Capital Corp. 1,128,125
------------
3,008,125
COMMUNICATIONS -- 15.8%
60,000 C-COR.net Corp. 2,940,000
75,000 Cabletron Systems, Inc. 2,198,437
40,000 Concentric Network Corp. 2,200,000
50,000 Natural MicroSystems
Corp. 4,287,500
10,000 Nextel Communications,
Inc. 1,482,500
23,000 Nortel Networks Corp. 2,898,000
65,000 Optibase Ltd. 1,543,750
100,000 P-COM, Inc. 1,850,000
45,000 Polycom, Inc. 3,563,438
16,000 QUALCOMM Inc. 2,389,000
50,000 REMEC, Inc. 2,525,000
197,000 Science Dynamics Corp. 2,942,688
50,000 Tekelec 1,856,250
75,000 Tollgrade
Communications Inc. 3,975,000
------------
36,651,563
COMMUNICATIONS SERVICES -- 4.5%
40,000 AT&T Corp. 2,250,000
100,000 CTN Media Group, Inc. 625,000
200,000 FVC.COM, Inc. 3,575,000
30,000 PSINet Inc. 1,020,468
20,000 RCN Corp. 1,077,500
25,000 Time Warner Telecom Inc. 1,987,500
------------
10,535,468
COMPUTER PERIPHERALS -- 1.3%
82,500 Information Resources
Engineering, Inc. 2,990,625
COMPUTER SYSTEMS -- 5.5%
20,000 Citrix Systems, Inc. 1,325,000
75,000 Compaq Computer Corp. 1,996,875
16,000 EMC Corp. (Mass.) 2,000,000
20,000 Network Appliance, Inc. 1,655,000
38,500 RadiSys Corp. 2,314,812
33,000 Seagate Technology, Inc. 1,988,250
16,000 Sun Microsystems, Inc. 1,499,250
------------
12,779,187
DISTRIBUTION -- 0.9%
120,000 American Aircarriers
Support, Inc. 1,095,000
42,500 D & K Healthcare
Resources, Inc. 520,625
73,600 Lazare Kaplan
International Inc. 515,200
------------
2,130,825
ELECTRONICS/EQUIPMENT
MANUFACTURING -- 4.3%
60,000 Aeroflex Inc. 2,970,000
7,000 E-Tek Dynamics, Inc. 1,646,750
30,000 Flextronics International
Ltd. 2,113,125
30,000 KEMET Corp. 1,897,500
55,000 Sensormatic
Electronics Corp. 1,234,063
------------
9,861,438
ENERGY/SERVICES -- 1.2%
86,000 AstroPower, Inc. 2,778,875
FINANCIAL SERVICES -- 2.1%
15,000 The Chase Manhattan Corp. 1,307,813
50,000 Pacific Century
Financial Corp. 1,015,625
99,000 Philadelphia Consolidated
Holding Corp. 1,460,250
50,000 U.S. Bancorp 1,093,750
------------
4,877,438
FOOD & BEVERAGES -- 1.0%
75,000 Albertson's, Inc. 2,325,000
HEALTHCARE PRODUCTS -- 6.5%
500,000 Antex Biologics Inc. 1,359,400
105,000 Gene Logic Inc. 4,416,563
200,000 IGEN International, Inc. 5,000,000
70,000 Immunomedics, Inc. 1,806,875
90,000 PharmaNetics, Inc. 1,338,750
20,000 ViroPharma Inc. 1,226,250
------------
15,147,838
HEALTHCARE SERVICES -- 0.6%
75,000 InfoCure Corp. 1,303,125
INTERNET/SOFTWARE/SERVICES -- 1.8%
20,000 CMGI Inc. 2,266,250
8,000 Commerce One, Inc. 1,194,000
13,000 RealNetworks, Inc. 740,188
------------
4,200,438
LEISURE/ENTERTAINMENT -- 1.1%
100,000 Action Performance
Companies, Inc. 1,331,250
67,000 Steiner Leisure Ltd. 1,289,750
------------
2,621,000
MISCELLANEOUS MANUFACTURING -- 2.2%
45,000 Applied Films Corp. 900,000
13,000 Corning Inc. 2,522,000
60,000 Tredegar Corp. 1,616,250
------------
5,038,250
RETAILING -- 2.5%
20,000 Tiffany & Co. 1,672,500
120,000 Whitehall Jewellers, Inc. 2,820,000
29,000 Zale Corp. 1,368,438
------------
5,860,938
SEMICONDUCTORS/RELATED -- 17.4%
24,000 Altera Corp. 2,142,000
18,000 ANADIGICS, Inc. 1,188,000
105,000 Artisan Components, Inc. 2,060,625
30,000 Asyst Technologies, Inc. 1,755,000
35,000 ATMI, Inc. 1,671,250
30,000 Conexant Systems, Inc. 2,130,000
10,000 Cree, Inc. 1,128,750
20,000 Cymer, Inc. 1,000,000
40,000 Electroglas, Inc. 1,370,000
29,000 Ibis Technology Corp. 2,610,000
100,000 Integrated Measurement
Systems, Inc. 2,031,250
20,000 KLA-Tencor Corp. 1,685,000
42,000 Kulicke & Soffa
Industries, Inc. 2,690,625
33,000 Novellus Systems, Inc. 1,852,125
5,000 PMC-Sierra, Inc. 1,018,437
20,000 PRI Automation, Inc. 1,222,500
175,000 Symmetricom, Inc. 1,848,438
30,000 Taiwan Semiconductor
Manufacturing Co. Ltd. 1,710,000
25,000 Teradyne, Inc. 2,056,250
11,600 Texas Instruments Inc. 1,856,000
30,000 Vitesse Semiconductor
Corp. 2,887,500
30,000 Xilinx, Inc. 2,484,375
------------
40,398,125
SOFTWARE & RELATED SERVICES -- 19.2%
100,000 Bitstream Inc. 1,250,000
20,000 Business Objects
S.A. - SP ADR 1,990,000
30,000 Electronic Data
Systems Corp. 1,925,625
25,000 Entrust Technologies Inc. 2,126,952
80,000 Excalibur Technologies
Corp. 3,170,000
150,000 eXcelon Corp. 1,687,500
40,000 Exchange Applications, Inc. 2,116,872
25,000 Extended Systems Inc. 2,750,000
150,000 General Magic, Inc. 1,340,625
15,000 HNC Software Inc. 1,080,938
20,000 ISS Group, Inc. 2,330,000
80,000 Level 8 Systems, Inc. 3,740,000
60,000 Media 100 Inc. 2,092,500
100,000 Novadigm, Inc. 1,625,000
40,000 Novell, Inc. 1,145,000
100,000 ON Technology Corp. 1,050,000
50,000 Pinnacle Systems, Inc. 1,662,500
80,000 RAVISENT
Technologies Inc. 1,110,000
150,000 Segue Software, Inc. 1,846,875
30,000 Sonic Foundry, Inc. 2,925,000
100,000 Systems & Computer
Technology Corp. 2,337,500
139,500 Versant Corp. 1,874,531
40,000 White Pine Software, Inc. 1,440,000
------------
44,617,418
TRANSPORTATION -- 0.6%
200,000 RailAmerica, Inc. 1,350,000
UTILITIES-- 2.2%
50,000 IDACORP, Inc. 1,737,500
30,000 The Montana Power Co. 1,920,000
57,000 SCANA Corp. 1,400,063
------------
5,057,563
MISCELLANEOUS -- 0.6%
75,000 Cendant Corp. 1,387,500
------------
Total common stocks 223,322,927
RIGHTS -- 0.0% (A)<F2>
400 Opus360 Corp.,
Exp. 04/11/00 0
------------
Total long-term
investments 223,322,927
SHORT-TERM INVESTMENTS -- 3.1% (A)<F2>
VARIABLE RATE DEMAND NOTE
$7,263,307 Firstar Bank U.S.A., N.A. 7,263,307
------------
Total investments 230,586,234
Cash and receivables, less
liabilities -- 0.7% (A) 1,577,410
------------
NET ASSETS $232,163,644
------------
------------
Net Asset Value Per Share
(No par value, unlimited
shares authorized), offering
and redemption price
($232,163,644 / 6,937,887
shares outstanding) $33.46
------
------
(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
MICHAEL L. HERSHEY
Chairman,
Landis Associates, Inc.
Kennett Square, Pennsylvania
STEPHEN L. HERSHEY, M.D.
President, First State
Orthopaedic Consultants, P.A.
Newark, Delaware
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, INC.
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.
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