Monetta Family of Funds
Dear Fellow Shareholders: October 11, 1996
After a 20%+ market decline in July, stock prices rallied in August and
September to generally post positive returns for the third quarter. The rise
in stocks was narrow and volume light as investors focused on the quality
companies.
The best gains were in the large capitalization, blue chip sector, while the
smaller capitalization, secondary issues lagged during this recovery period.
This disparity was evident in the performance of the major market indices, as
the Dow Jones Industrial Average appreciated 4.6%, the S & P 500 Index rose
3.1%, the Russell 2500 Index was up 2.3% and the Russell 2000 Index, a small
capitalization stock index, declined moderately.
During the third quarter, investors anguished over the strength of economic
activity and its possible impact on inflation. Generally, industrial
production and factory orders were surprisingly strong and corporate profits
were slightly above expectations. The Federal Reserve decision to leave its
Federal Funds rate unchanged at the September meeting eased investors'
concerns that economic strength could lead to higher inflation.
Overall our funds posted better than average returns last quarter. The
performance traced that of the major market indices with the larger
capitalization holdings exceeding the returns of the smaller capitalization
companies.
Investment Outlook/Strategy
In the near term, we expect the market to trade in a narrow but choppy trading
range. The key factor in the longer term direction of the market is the
degree of economic growth. Our view of some slowing in the economy over the
next six months is widely shared. Under this scenario the fundamental
backdrop for stocks remains favorable. Data on retail sales, housing starts
and wage trends will be carefully monitored in the interim.
Growth at a reasonable price is our primary investment approach. Our primary
investment objective is to control risk management by reducing volatility and
maintaining broad diversification between industries and individual holdings.
Thanks for being part of the Monetta Family of Funds.
Best personal regards,
Robert S. Bacarella
President and Founder
<page 1>
Table of Contents
Performance Highlights
Monetta Fund 3
Monetta Mid-Cap Equity Fund 4
Monetta Large-Cap Equity Fund 5
Monetta Balanced Fund 6
Monetta Intermediate Bond Fund 7
Monetta Government Money Market Fund 8
Schedule of Investments
Monetta Fund 9
Monetta Mid-Cap Equity Fund 12
Monetta Large-Cap Equity Fund 14
Monetta Balanced Fund 16
Monetta Intermediate Bond Fund 18
Monetta Government Money Market Fund 19
Footnote:
Past performance is no guarantee of future results. The principal value and
return on your investment will fluctuate and on redemption may be worth more
or less than your original cost.
<page 2>
Monetta Fund Period Ending 9/30/96
Investment Objective: Market Capitalization Range: Total Net Assets:
Capital Appreciation/Income $50 million - $1 billion $269 million
PERFORMANCE:
<TABLE>
<CAPTION>
Average Annual Total Return
Since Incep.
1 Year 5 Years (5/6/86)
<S> <C> <C> <C>
Monetta Fund 1.5% 8.4% 12.0%
Russell 2500 15.8% 16.5% 12.4%
NASDAQ Composite* 17.6% 18.4% 11.8%
S & P 500 * 20.3% 15.2% 14.3%
*Source Lipper Analytical Services, Inc.
</TABLE>
[Performance Graph Appears Here]
<TABLE>
<CAPTION>
Measurement Period Monetta Russell NASDQ S & P
(Fiscal Year Covered) Equity Fund 2500
- --------------------- ----------- ------- ------ -------
<C> <C> <C> <C> <C>
6/86 .60 10,533 10,130 10,590
9/86 (6.16) 9,505 8,760 9,849
12/86 3.60 9,631 8,715 10,400
3/87 15.10 11,753 10,744 12,615
6/87 .71 11,823 10,609 13,246
9/87 (3.24) 12,402 11,100 14,121
12/87 (9.47) 9,180 8,256 10,943
3/88 6.20 10,651 9,360 11,567
6/88 12.65 11,374 9.859 12,331
9/88 2.33 11,281 9,686 12,368
12/88 .51 11,266 9,528 12,751
3/89 3.12 12,137 10,162 13,656
6/89 7.99 13,058 10,875 14,848
9/89 4.74 14,012 11,815 16,448
12/89 (1.21) 14,568 11,362 16,793
3/90 5.36 14,163 10,880 16,289
6/90 11.83 14,721 11,548 17,299
9/90 (19.29) 11,485 8,606 14,929
12/90 17.11 12,401 9,338 16,258
3/91 18.52 15,559 12,047 18,632
6/91 3.00 15,529 11,888 18,576
9/91 13.53 16,864 13,161 19,560
12/91 12.48 18,192 14,647 21,204
3/92 .64 18,971 15,082 20,673
6/92 (6.38) 18,109 14,079 21,066
9/92 2.97 18,604 14,571 21,719
12/92 8.73 21,137 16,911 22,827
3/93 (6.63) 22,138 17,241 23,010
6/93 .74 22,602 17,585 23,102
9/93 7.78 24,200 19,056 23,702
12/93 (.87) 24,632 19,406 24,247
3/94 (2.64) 24,086 18,574 23,324
6/94 (5.42) 23,221 17,637 23,415
9/94 7.04 24,886 19,094 24,560
12/94 (4.85) 24,360 18,786 24,555
3/95 9.64 26,160 20,416 26,945
6/95 6.91 28,623 23,320 29,512
9/95 12.46 31,374 26,070 31,870
12/95 (2.88) 32,231 26,284 33,764
3/96 1.54 34,123 27,515 35,577
6/96 3.10 35,544 29,603 37,171
9/96 (.18) 36,346 30,651 38,320
</TABLE>
The graph above to the right compares the change in value of a $10,000
investment in the Monetta Fund, the S&P 500 Composite Index, and the NASDAQ
Composite Index and the Russell 2500 Stock Index. The S&P 500 and the Russell
2500 indices are a broad measure representative of the general market, while
the NASDAQ measures performance of stocks in the over-the-counter market.
Please refer to the footnote on the bottom of page 2.
PORTFOLIO COMPOSITION: TOP 5 EQUITY HOLDINGS:
<TABLE>
<CAPTION>
%of Net Assets
<S> <C>
Transocean Offshore, Inc. 2.5%
Idexx Laboratories, Inc. 2.4%
Aspect Telecom 2.3%
St. John Knits, Inc. 2.0%
Ensco International, Inc. 2.0%
Total Top 5 Holdings 11.2%
</TABLE>
COMMENTARY:
The Monetta Fund was down 0.2% during the third quarter, compared to a 2.3%
increase in the Russell 2500 Index. For the nine months ended September 30,
the Fund appreciated 4.5% versus a 12.8% return for the Russell 2500 Index.
There was unusual volatility in small capitalization stocks during the third
quarter. During July, the NASDAQ Composite Index fell 9.9%, before recovering
to a 3.5% gain for the third quarter. We continue to see uneasiness in the
market, with stock prices declining precipitously on any real or perceived
earnings disappointment. In an effort to reduce exposure to this market
volatility, we have expanded our portfolio and reduced the size of our
positions. This affords us the flexibility to quickly sell a stock when there
is a deterioration of company fundamentals, and conversely, an opportunity to
add to existing positions or initiate positions on market overreactions. We
added a number of companies to the portfolio during the stock market swoon in
July, and many of these stocks were among our best performers during the third
quarter.
We will continue to focus our efforts on selecting premier growth companies
which are selling at reasonable prices relative to their earnings growth rate.
In an effort to better manage risk, we are de-emphasizing hyper-growth
companies and spending more time identifying under-followed companies and
growth companies in non-traditional growth areas.
<page 3>
Monetta Mid-Cap Equity Fund Period Ending 9/30/96
Investment Objective: Market Capitalization Range: Total Net Assets:
Capital Appreciation $1 billion - $5 billion $16.4 million
PERFORMANCE:
<TABLE>
<CAPTION>
Average Annual Total Return
Since Incep.
1 Year 2 Years (3/1/93)
<S> <C> <C> <C>
Monetta Mid-Cap Equity Fund 12.8% 19.5% 21.1%
S & P 400* 14.0% 19.7% 14.4%
S & P 500* 20.3% 24.9% 16.0%
*Source Lipper Analytical Services, Inc.
</TABLE>
[Performance Graph Appears Here]
<TABLE>
<CAPTION>
Measurement Period Mid-Cap S & P S & P
(Fiscal Year Covered) Equity Fund 400 Index 500 Index
- --------------------- ----------- ---------- ---------
<C> <C> <C> <C>
3/1/93 .00 .00 .00
3/93 16.70 2.20 .80
6/93 1.80 2.30 .40
9/93 10.44 5.00 2.60
12/93 3.20 2.70 2.30
3/94 (.48) (4.27) (3.81)
6/94 (2.72) (3.65) .39
9/94 5.94 6.77 4.89
12/94 (.38) (2.58) (.02)
3/95 7.23 8.09 9.73
6/95 11.47 8.82 9.53
9/95 6.45 9.76 7.94
12/95 (2.10) 1.43 5.94
3/96 8.61 6.16 5.37
6/96 2.08 2.88 4.48
9/96 3.92 2.91 3.09
</TABLE>
The graph above to the right compares the change in value of a $10,000
investment in the Monetta Trust Mid-Cap Equity Fund to the S & P 500 and 400.
The S&P 500 and 400 indices are a broad measure representative of the general
market. Please refer to the footnote on the bottom of page 2.
PORTFOLIO COMPOSITION: TOP 5 EQUITY HOLDINGS:
<TABLE>
<CAPTION>
%of Net Assets
<S> <C>
Danaher Corp. 2.5%
ADC Telecommunications, Inc. 2.5%
First Tennessee National 2.4%
Knight Transportation, Inc. 2.4%
Green Tree Financial Corp. 2.4%
Total Top 5 Holdings 12.2%
</TABLE>
COMMENTARY:
The Monetta Mid-Cap Equity Fund produced strong returns during the third
quarter, rising 3.9% compared to the 2.5% gain of the S&P 400 Midcap Index.
For the nine months ended September 30, the Fund is up 15.2% versus 11.1% for
the Index.
Very few changes were made during the quarter and the overall diversification
mix of the portfolio remained unaffected. Profits were taken in WorldCom,
realizing gains of about 70% and a partial sale was made in Safeway Stores,
also realizing gains of about 70%.
The best performing stocks during the quarter were generally in the housing
mortgage related industries with Oakwood Homes, GreenTree Financial and
Greepoint Financial all increasing around 30% over the past three months. The
best performing stock was ADC Telecommunications, rising about 40%, Safeway
Stores continued to do very well, increasing 27% during this period.
The Mid-Cap Fund continues to invest in a diversified portfolio of high
quality stocks with above average earnings growth and appreciation potential.
For the three year period ended June 30, 1996, Morningstar, Inc., a leading
authority on mutual funds, has awarded 5 stars, its highest rating, to the
Mid Cap Fund.
<page 4>
Monetta Large-Cap Equity Fund Period Ending 9/30/96
Investment Objective: Market Capitalization Range: Total Net Assets:
Capital Appreciation $5 billion + $1.3 million
PERFORMANCE:
<TABLE>
<CAPTION>
Nine Months Total Return
Ended 9/30/96 Since Incep.(9/1/95)
<S> <C> <C>
Monetta Large-Cap Equity Fund 21.7% 26.1%
S & P 500* 13.5% 25.4%
*Source Lipper Analytical Services, Inc.
</TABLE>
The S & P 500 is a broad measure representative of the general market. Please
refer to footnote on the bottom of page 2.
PORTFOLIO COMPOSITION: TOP 5 EQUITY HOLDINGS:
<TABLE>
<CAPTION>
%of Net Assets
<S> <C>
Intel Corp. 4.4%
Electronic Data Systems Corp. 4.3%
Microsoft Corp. 4.1%
Monsanto Corp. 4.0%
Cisco Systems, Inc. 4.9%
Total Top 5 Holdings 21.7%
</TABLE>
COMMENTARY:
The Monetta Large-Cap Equity Fund produced strong returns during the third
quarter, rising 7.9% compared to the 3.1% gain of the S & P 500 index. For the
nine months ended September 30, the Fund is up 21.7% versus 13.5% for the
index.
The industrial sector showed the biggest increase in holdings. New positions
in this sector performed well, including Boeing, Monsanto, and Transocean
Offshore. All are producing vigorous earnings per share growth. Sources of
funds included the financial and medical sectors, which were trimmed during
the quarter, and cash balances, which were reduced to 6.0% of the portfolio.
The Large-Cap Fund continues to benefit from the growth of its blue-chip
technology stocks which snapped back strongly from a mid-summer sell-off.
Those that stood out included Intel, the dominant PC microprocessor
manufacturer, and Computer Associates, the number two software firm behind
Microsoft. Telecommunications provider WorldCom was sold after producing a
significant gain during its holding period.
The Large-Cap Fund continues to invest in a diversified portfolio of high
quality stocks with above-average earnings growth and appreciation potential.
For the twelve months ended September 30, the Fund is ranked 15th among its
peer group of 633 growth funds tracked by Lipper Analytical Services.
<page 5>
Monetta Balanced Fund Period Ending 9/30/96
Investment Market Capitalization Total Net
Objective: Range: Maturity: Assets:
Capital Appreciation/ $50 million + 1.9 years $638 thousand
Income
PERFORMANCE:
<TABLE>
<CAPTION>
Nine Months Total Return
Ended 9/30/96 Since Incep.(9/1/95)
<S> <C> <C>
Monetta Balanced Fund 18.2% 23.4%
S&P 500* 13.5% 25.4%
Lehman Gov't/Corp Bond Index* (0.2)% 5.6%
Lehman Gov't/Corp Intermediate
Bond Index* 1.6% 5.9%
*Source Lipper Analytical Services, Inc.
</TABLE>
Please refer to footnote on the bottom of page 2. The S & P 500 is broad
measure representative of the general market, while the Lehman
Government/Corporate Bond Index and the Lehman Government/Corporate
Intermediate Bond Index measure that specific segment of their respective bond
market.
PORTFOLIO COMPOSITION: TOP 5 EQUITY HOLDINGS:
<TABLE>
<CAPTION>
%of Net Assets
<S> <C>
Intel Corp. 3.0%
TJX Companies, Inc. 2.8%
Household International 2.6%
Associated First Capital 2.6%
First Data Corp. 2.6%
Total Top 5 Holdings 13.6%
</TABLE>
COMMENTARY:
Monetta Balanced Fund posted a very strong third quarter, up 5.3%, exceeding
its primary benchmarks of the S & P 500 and Lehman Brother Govt./Corp. Bond
Index which were up 3.1% and 1.8%, respectively. For the nine months ended
September 30, the Balanced Fund was up 18.2%.
In the Lipper Analytical latest rankings of its Balanced Fund category, for
the one year period ended September 30, our fund ranked FIRST among the 272
funds in this category. The fund generated a 16.1% return versus the
category average of 9.2%.
During the quarter, the fund's asset mix averaged 65% common stocks and 35%
fixed income. No significant changes were made in asset allocation.
The portfolio continued to benefit from slight overweightings in technology,
energy, telecommunications, and industrials. We continue to favor
economically sensitive stocks. Purchases during the quarter included Boeing,
United Technologies, Ascend Communications and Schlumberger, all in keeping
with a moderately growing economy.
During the quarter, investors flocked to the large-capitalization quality
growth companies. This trend benefited the Balanced Fund due to its heavier
weightings in the large capitalization sector.
The average maturity of the fixed income portion of the Fund had a slight
increase to 1.9 years from 1.8 years, which is fairly defensive and supports
our outlook for a moderately improving economy over the next few quarters.
We do not however, expect economic growth to be so strong as to prompt a
significant increase in interest rates by the Federal Reserve Board.
<page 6>
Monetta Intermediate Bond Fund Period Ending 9/30/96
Investment Objective: 30-Day SEC Yield: Average Maturity: Total Net
Assets:
Income 6.47% 5.4 Years 2.7 million
PERFORMANCE:
<TABLE>
<CAPTION>
Average Annual Total Return
Since Incep.
1 Year 3 Years (3/5/93)
<S> <C> <C> <C>
Monetta Intermediate
Bond Fund 5.5% 8.9% 6.9%
Lehman Gov/Corp
Intermediate
Bond Index* 5.1% 4.8% 5.4%
*Source Lipper Analytical Services, Inc.
</TABLE>
[Performance Graph Appears Here]
<TABLE>
<CAPTION>
Measurement Period Intermediate Lehman
(Fiscal Year Covered) Bond Fund
- --------------------- ------------ -------
<C> <C> <C>
3/1/93 10,000 10,007
3/93 10,000 10,028
6/93 10,399 10,255
9/93 10,732 10,486
12/93 10,817 10,504
3/94 10,585 10,291
6/94 10,494 10,229
9/94 10,613 10,313
12/94 10,705 10,302
3/95 11,270 10,754
6/95 11,866 11,292
9/95 12,046 11,479
12/95 12,282 11,883
3/96 12,245 11,784
6/96 12,428 11,859
9/96 12,702 12,068
</TABLE>
The graph above to the right compares the change in value of a $10,000
investment in the Monetta Trust Intermediate Bond Fund to the Lehman
Government/Corporate Intermediate Bond Index. The Lehman Government/
Corporate Intermediate Bond Index measures that specific segment of the bond
market. Please refer to the footnote on the bottom of page 2.
PORTFOLIO COMPOSITION: MATURITY PROFILE:
<TABLE>
<CAPTION>
<S> <C>
1 Year or Less 17.0%
1 - 3 Years 3.9%
4 - 6 Years 28.6%
7 - 10 Years 49.9%
Over 10 Years 0.6%
Total of all holdings 100%
</TABLE>
COMMENTARY:
The Monetta Intermediate Bond Fund posted a solid quarterly return, up 2.2%.
This compares favorably to the 1.8% return for the Lehman Govt./Corp.
Intermediate Bond Index. For the nine months ended September 30, the fund was
up 3.4%, versus its benchmark return of 1.6%.
Dividends paid during the quarter totaled $0.17. At September 30, the fund's
30-day SEC yield was 6.47%, up 39 basis points since June 30th.
Bond market participants seem to be increasingly buying into the view that the
economy is slowing down, inflation is not a problem and the Federal Reserve
policy is likely to be on hold until after the national elections. We agreed
with this outlook and therefore have moderately increased the fund's average
maturity from 4.4 years to 5.4 years. Overall the fund is positioned very
defensively, invested primarily in high quality securities.
At September 30, the fund was primarily invested in investment-grade fixed
income securities representing 72% of the portfolio. The overall sector
weightings were basically unchanged during the quarter.
The recent strength in economic indicators and general uncertainty concerning
rising inflation pressure should keep bond yields near 7%. However, if the
markets sense that the Federal Reserve is falling "behind the curve" by moving
too slowly to contain inflationary expectations, yield will move higher. Our
defensive position reflects this ongoing concern.
<page 7>
Monetta Government Money Market Fund Period Ending 9/30/96
Investment 7-Day Average Days Total Net
Objective: Yield: to Maturity: Assets:
Income and Capital Preservation 5.17% 82 Days $7.0 million
PERFORMANCE:
Average Annual Total Return
<TABLE>
<CAPTION> Since Incep.
1 Year 3 Years (3/1/93)
<S> <C> <C> <C>
Monetta Government Money Market Fund 5.2%** 5.4%** 4.5%**
Lipper U.S. Gov't Money 4.8% 4.4% 4.1%
Market Funds Avg.*
</TABLE>
*Source Lipper Analytical Services, Inc.
**Total returns are net of advisory fees waived and voluntary absorption of
the Funds' operating expenses by the Advisor.
An investment in the Monetta Government Money Market Fund is neither insured
or guaranteed by the U.S. Government. There can be no assurance that the Fund
will be able to maintain a stable $1.00 per share net asset value. Please
refer to footnote on the bottom of page 2.
PORTFOLIO COMPOSITION: ALLOCATION:
<TABLE>
<CAPTION>
% of Net Assets
<S> <C>
Government Agencies 53.0%
U.S. Treasuries 47.9%
Total Investments 100.9%
Other Assets & Liabilities (0.9)%
Total 100.0%
</TABLE>
COMMENTARY:
The Monetta Government Money Market Fund returned 1.25% for the past quarter
and 5.2% for the twelve months just ended. According to Lipper Analytical
Services, this performance rates the Fund 3{rd} out of approximately 114
similar funds for the past year.
The Fund's 7 day yield is now 5.17%, up substantially from the 4.80% yield at
the beginning of the quarter. Average maturity of the Fund was increased from
64 days on June 30 to 82 days on September 30.
The Federal Reserve System's Open Market Committee is next scheduled to meet
on November 13, and we believe that the Federal Fund rate will be increased
by 25 basis points at that time.
The Money Market Fund remains invested in a very conservative fashion, with
almost half the Fund in Treasury Bills and the remainder in other Government
Agency securities.
<page 8>
Schedule of Investments
September 30, 1996
(unaudited)
MONETTA FUND
<TABLE>
<CAPTION>
Quoted
Shares or Market
Principal Value
Amount (In Thousands)
COMMON STOCKS - 91.8%
<S> <C>
Consumer Related - 37.0% $99,431
Broadcasting/Cable TV - 4.1%
*25,000 American Radio Systems Corp. $931
*100,000 Chancellor Corp.-CL A 4,150
*100,000 Lin Television Corp. 4,100
*70,000 Metromedia Int'l Grp., Inc. 744
*25,000 SFX Broadcasting, Inc.-CL A 1,137
11,062
Recreation & Entertainment - 6.3%
*50,000 Carmike Cinemas, Inc. 1,156
*50,000 Casino Data Systems 950
*100,000 Cinar Films, Inc.-CL B 2,606
150,000 Harveys Casinos Resorts 2,550
150,000 Int'l Game Technology 3,075
*91,500 MGM Grand, inc. 3,866
*37,500 Regal Cinemas, Inc. 937
*13,900 Rockshox, Inc. 208
*42,500 Shuffle Master, Inc. 489
*100,000 West Coast Entertainment Corp. 1,013
16,850
Restaurants & Lodging - 5.4%
77,100 CKE Restaurants, Inc. 2,371
*20,000 Doubletree Corp. 797
*50,000 Foodmaker, Inc. 500
*125,000 Lone Star Steakhouse 3,805
*100,000 Outback Steakhouse, Inc. 2,413
*165,000 Planet Hollywood Int'l, Inc. 4,620
14,506
Retail Trades - 15.7%
*125,000 Bed Bath & Beyond 3,422
*100,000 Charming Shoppes 600
40,000 Ethan Allen Interiors 1,245
60,000 Family Dollar Stores 1,042
*25,000 Friedman's, Inc.-CL A 469
*50,000 Furniture Brands Int'l 731
*20,000 Gadzooks, Inc. 695
*60,000 Just For Feet, Inc. 3,008
*50,000 Nine West 2,713
*275,000 Officemax, Inc. 3,850
*52,500 Paul Harris Stores 525
50,000 Pier 1 Imports, Inc. 806
*50,000 Quiksilver, Inc. 1,250
40,000 Ross Stores, Inc. 1,440
100,000 St. John Knits, Inc. 5,013
*30,000 Starbucks Corp. 990
*50,000 Sunglass Hut Int'l, Inc. 797
*30,000 The Buckle, Inc. 953
*165,000 The Sports Authority, Inc. 4,393
125,000 TJX Companies, Inc. 4,484
*200,000 Vans, Inc. 3,825
42,251
Miscellaneous - 5.5%
*75,000 American Eco Corp. 797
*250,000 ATC Environmental 3,219
*50,000 CKS Grp., Inc. 1,181
*15,000 ITI Technologies, Inc. 529
30,000 Libbey, Inc. 791
*50,000 Panamsat Corp. 1,391
*20,000 Performance Food Grp., Co. 330
*40,000 Printrak Int'l, Inc. 390
*95,000 United Waste Systems, Inc. 3,301
*40,000 US Office Products 1,435
*75,000 Warrantech Corp. 731
*30,000 World Color Press 667
14,762
<page 9>
Financial Related - 6.7% $17,909
Financial Services - 6.7%
100,000 Advanta Corp.-CL B $4,275
20,000 American Bankers Ins., Grp. 1,000
*50,000 Americredit Corp. 919
*12,800 Berkley Corp. 586
*175,000 Concord EFS, Inc. 4,506
30,000 Excel Realty Trust, Inc. 649
18,500 Executive Risk, Inc. 712
20,000 Horace Mann Educator, Corp. 657
*30,000 Imperial Credit Industries 1,099
30,000 National Data Corp. 1,309
*40,000 Oxford Resources Corp.-CL A 855
40,500 United Cos Financial Corp. 1,342
17,909
Industrial Related - 17.6% $47,485
Energy Resources & Services - 6.8%
*30,000 B.J. Services Co. 1,087
*100,000 Belco Oil & Gas Corp. 2,675
*150,000 Ensco Int'l 4,875
*40,000 Houston Exploration Co. 680
*100,000 Input/Output, Inc. 2,975
100,000 Transocean Offshore, Inc. 6,125
18,417
Industrial/Electronics Products - 6.8%
*40,000 BE Aerospace, Inc. 825
*25,000 Berg Electronics Corp. 681
40,000 Breed Technologies, Inc. 1,115
*70,000 Checkpoint Systems, Inc. 1,855
30,000 DT Industries, Inc. 1,012
20,000 Harman Int'l Industries, Inc. 975
100,000 Harnischfeger Ind., Inc. 3,775
*40,000 Mohawk Industries 1,025
*50,000 O'Sullivan Industries Holdings, Inc. 444
20,000 Precision Castparts Corp. 970
*25,000 Sanmina Corp. 1,006
80,000 Spartech Corp. 770
*50,000 U.S. Filter Corp. 1,706
*35,000 Waters Corp. 1,146
*25,000 Wolverine Tube, Inc. 1,075
18,380
Mining & Mineral Resources - 2.3%
*75,000 Oregon Metallurgical Corp. 2,437
*125,000 Titanium Metals Corp. 3,625
6,062
Transportation - 0.5%
*30,000 Swift Transportation Co., Inc. 658
30,000 US Freightways Corp. 615
1,273
Miscellaneous - 1.2%
*105,000 Alternative Resource Corp. 2,953
*18,500 Rental Service Corp. 400
3,353
Medical Related - 15.9% $42,816
Medical Supplies - 1.6%
50,000 Ballard Medical Products $975
30,000 Fisher Scientific Int'l 1,237
*75,000 Physician Sales & Service, Inc. 1,763
*10,000 Safeskin Corp. 348
4,323
<page 10>
Medical Technology - 2.4%
*130,000 IDEXX Laboratories, Inc. 5,882
*50,000 Orthologic Corp. 531
6,413
Pharmaceutical - 4.9%
*30,000 Applied Analytical Ind., Inc. 682
*10,000 Capstone Pharmacy Svcs., Inc. 1,238
*50,000 Chirex, Inc. 650
*75,000 Genzyme Corp. 1,913
40,000 Jones Medical Ind., Inc. 1,940
*11,000 Medicis Pharmaceutical Corp.-CL A 531
*40,000 Parexel Int'l Corp. 2,520
*100,000 Watson Pharmaceuticals, Inc. 3,750
13,224
Physician Services - 7.0%
*100,000 American Medical Resp. Inc. 3,600
*100,000 American Oncology Res., Inc. 1,125
*100,000 Genesis Health Ventures, Inc. 2,812
*115,000 Phycor, Inc. 4,377
*50,000 Renal Treatment Centers, Inc. 1,663
*243,200 Sheridan Healthcare, Inc. 2,098
*145,000 Veterinary Centers of America, Inc. 3,181
18,856
Technology Related - 14.6% $39,328
Computer Software & Systems - 3.1%
*30,000 Acxiom Corp. $1,234
*25,000 Applix, Inc. 656
*20,000 Ciber, Inc. 760
*50,000 Citrix Systems, Inc. 2,562
24,300 Logicon, Inc. 854
*50,000 Technology Modeling Associates, Inc. 650
*20,000 Unison Software, Inc. 515
*45,000 Wall Data, Inc. 1,024
8,255
Computer & Office Equip. - 1.9%
*30,000 Black Box Corp. 990
*75,000 Comverse Technology, Inc. 2,916
*50,000 Vanstar Corp. 1,212
5,118
Semiconductor - 0.7%
*30,000 Microchip Technology, Inc. 1,121
40,000 S3, Inc. 790
1,911
Telecommunication & Equip. - 8.9%
*100,000 ACE*COMM Corp. 1,200
*92,500 Aspect Telecom. Corp. 5,758
*200,000 Brightpoint, Inc. 4,825
*5,000 Brooktrout Technology, Inc. 182
*25,000 Cable Design Technologies 1,000
*20,000 Dynatech Corp. 915
*75,000 Intermedia Communications, Inc. 2,194
*4,400 LCC Int'l, Inc. 80
*125,000 P-Com, Inc. 3,094
*70,000 Premisys Communications, Inc. 2,573
*19,500 RMH Teleservices, Inc. 288
*25,000 Technology Solutions Co. 872
*25,000 Teltrend, Inc. 1,063
24,044
Total Common Stocks
(Cost $221,732)(a) 246,969
Variable Demand Notes - 0.5%
1,315,600 Warner Lambert 1,316
<page 11>
Commercial Paper - 11.9%
8,000,000 AT & T-5.25% 8,000
Due 10/01/96
2,500,000 Merrill Lynch-5.38% 2,500
Due 10/01/96
2,500,000 Merrill Lynch-5.35% 2,500
Due 10/02/96
2,300,000 Progress Capital-5.35% 2,299
Due 10/03/96
5,000,000 Progress Capital-5.45% 4,998
Due 10/04/96
2,000,000 Merrill Lynch-5.34% 1,998
Due 10/07/96
6,000,000 Cargil, Inc.-5.26% 5,993
Due 10/09/96
4,000,000 Bell Atlantic-5.35% 3,994
Due 10/11/96
Total Commercial Paper 32,282
Total Short term Investments 33,598
Total Investment - 104.2%
(Cost $255,330)(a) 280,567
Other Assets
Less Liabilities (4.2%) (11,271)
Net Assets - 100% $269,296
</TABLE>
Net Asset Value, offering price and redemption per share
($269,295,648/16,530,665 shares outstanding.) $16.29
(a)Cost is identical for book and tax purposes; the aggregate gross unrealized
appreciation is $34,507 and aggregate gross unrealized depreciation is
$9,270 resulting in net unrealized appreciation of $25,237(in thousands)
*Non-income producing security.
Schedule of Investments
September 30, 1996
(unaudited)
MONETTA MID-CAP EQUITY FUND
<TABLE>
<CAPTION>
Quoted
Shares or Market
Principal Value
Amount (In Thousands)
COMMON STOCKS - 86.2%
<S> <C>
Consumer Related - 22.5% $3,699
Food Processing - 3.6%
*10,000 Smithfield Foods, Inc. $311
12,000 Whitman Corp. 278
589
Retail Manufacturers/Distribution - 9.3%
*10,000 Autozone, Inc. 290
6,000 Avery-Dennison Corp. 333
8,000 Black & Decker Corp. 332
8,000 Newell Company 240
*6,000 Nine West 325
1,520
Recreation & Entertainment - 1.8%
*20,000 Coleman Co., Inc. 295
Restaurants & Entertainment - 1.7%
*10,000 Planet Hollywood Int'l, Inc. 280
Retail Trades - 4.2%
*8,000 Safeway, Inc. 341
10,000 TJX Companies, Inc. 359
700
Miscellaneous - 1.9%
*10,000 U.S.A Waste Service 315
Financial Related - 18.8% $3,079
Financial Services - 18.8%
4,300 Aon Corp. $233
<page 12>
4,400 Associates First Cap., Corp. 180
5,000 Compass Bancorp 172
3,500 Crestar Financial Corp. 206
*15,000 Dime Bancorp, Inc. 201
4,050 Fifth Third Bancorp 235
12,000 First Tennessee 398
10,000 Green Tree Financial Corp. 392
10,000 Greenpoint Financial Corp. 381
10,000 PHH Corp. 297
10,000 Roosevelt Financial 171
6,000 Union Planters Corp. 213
3,079
Industrial Related - 32.6% $5,353
Energy Resources & Services - 5.5%
*1,600 Belco Oil & Gas Corp. $43
*8,000 Ensco Int'l 260
*6,000 Input/Output, Inc. 178
4,000 Kerr McGee Corp. 243
5,000 Tidewater, Inc. 187
911
Housing - 2.0%
12,000 Oakwood Homes 330
Industrial/Electronics Products - 19.1%
18,000 AMETEK, Inc. 340
10,000 Applied Power, Inc. CL A 319
10,000 Danaher Corp. 414
7,000 Harnischfeger Ind., Inc. 264
7,000 Sundstrand Corp. 273
2,625 Molex, Inc. 98
8,000 Precision Castparts, Corp. 388
6,000 Sigma-Aldrich Corp. 342
14,400 TriMas Corp. 349
7,000 York Int'l, Corp. 339
3,126
Mining & Mineral Resources - 2.3%
9,600 IMC Global, Inc. 376
Miscellaneous - 1.3%
5,000 Tyco Int'l, Ltd. 216
Transportation - 2.4%
*18,000 Knight Transportation, Inc. 394
Medical Related - 4.3% $696
Pharmaceuticals - 2.4%
*8,000 Elan Corp. PLC-ADR $239
*4,000 Watson Pharmaceuticals 150
389
Physician Services - 1.9%
*8,000 Healthsouth Corp. 307
Technology Related - 8.0% $1,314
Computer Software - 2.7%
*4,000 Ceridian Corp. $200
*5,000 Parametric Technology Corp. 247
447
Telecommunications Svcs & Equip - 5.3%
*6,400 ADC Telecommunications, Inc. 410
*3,000 Cascade Communications Corp. 245
*3,000 Tellabs, Inc. 212
867
Total Common Stock 14,141
<page 13>
Variable Demand Notes - 3.1%
508,900 Eli Lilly 509
Commercial Paper - 10.3%
500,000 AMP, Inc. - 5.32% 499
Due 10/17/96
500,000 BAT Capital - 5.33% 500
Due 10/04/96
700,000 Pepsico, Inc. - 5.30% 699
Due 10/11/96
1,698
Total Investments - 99.6%
(Cost $14,286)(a) 16,348
Other Assets Less Liabilities - 0.4% 61
Net Assets - 100% $16,409
</TABLE>
Net Asset Value, offering price, and redemption per share
($16,408,988/1,191,016 shares outstanding) $13.78
(a)Cost is identical for book and tax purposes; the aggregate gross unrealized
appreciation is $2,137 and aggregate gross unrealized depreciation is $75,
resulting in net unrealized appreciation of $2,062(in thousands).
*Non-income producing security
Schedule of Investments
September 30, 1996
(unaudited)
MONETTA LARGE-CAP EQUITY FUND
<TABLE>
<CAPTION>
Quoted
Shares or Market
Principal Value
Amount (In Thousands)
COMMON STOCKS - 91.8%
<S> <C>
Consumer Related - 13.4% $173
Retail Trades - 10.7%
1,200 Gap, Inc. $35
800 Home Depot, Inc. 46
*600 Safeway, Inc. 26
700 Sears Roebuck, & Co. 31
138
Miscellaneous - 2.7%
*1,100 U.S.A. Waste Service, Inc. 35
Financial Related - 18.5% $239
Financial Services - 18.5%
1,000 Associates First Cap Corp. $41
600 Fifth Third Bancorp 35
600 First Data Corp. 49
800 Fleet Financial Group 36
600 Household Int'l, Inc. 49
700 Norwest Corp. 29
239
<page 14>
Industrial Related - 18.5% $238
Chemicals - 4.0%
1,400 Monsanto Co. $51
Energy Resources & Services - 6.6%
500 Schlumberger, Ltd. 42
700 Transocean Offshore, Inc. 43
85
Industrial/Electronics Products - 3.3%
600 Illinois Tool Works 43
Transportation - 4.6%
500 Boeing Co. 47
100 United Technologies, Corp. 12
59
Medical Related - 9.7% $126
Pharmaceuticals - 6.8%
800 Johnson & Johnson 41
600 Pfizer, Inc. 47
88
Physician Services - 2.9%
*1,000 HEALTHSOUTH Corp. 38
Technology Related - 31.7% $408
Computers & Office Equipment - 2.1%
500 Xerox Corp. $27
Computer Software - 11.9%
750 Computer Associates Int'l, Inc. 45
*400 Microsoft, Corp. 53
900 Electronic Data Systems Corp. 55
153
Semiconductors - 4.4%
600 Intel Corp. 57
Telecommunications Svcs & Equip. - 13.3%
*400 Cascade Communications, Corp. 33
*800 Cisco Systems, Inc. 50
800 Northern Telecom, Ltd. 46
*600 Tellabs, Inc. 42
171
Total Common Stocks
(Cost $1,012)(a) 1,184
Variable Demand Notes - 6.0%
56,800 American Family 57
20,300 Warner Lambert 20
77
Total Investments - 97.8% 1,261
(Cost $1,089)(a)
Other Assets Less Liabilities - 2.2% 28
Net Assets - 100% $1,289
</TABLE>
Net Asset Value, offering price, and redemption price per share
($1,288,581/100,186 shares outstanding) $12.86
(a) Cost is identified for book and tax purposes; the aggregate gross
unrealized appreciation is $179 and aggregate gross unrealized depreciation
is $7 resulting in net unrealized appreciation of $172(in thousands).
* Non-income producing security
<page 15>
Schedule of Investments
September 30, 1996
(unaudited)
MONETTA BALANCED FUND
<TABLE>
<CAPTION>
Quoted
Shares or Market
Principal Value
Amount (In Thousands)
COMMON STOCKS - 64.2%
<S> <C>
Consumer Related - 16.1% $103
Recreation & Entertainment - 1.5%
600 Harveys Casinos Resorts $10
Retail Manufacturers/Distribution - 3.8%
200 Avery - Dennison Corp. 11
200 Black & Decker Corp. 8
*200 Quiksilver, Inc. 5
24
Broadcasting/Cable TV - 1.9%
*200 SFX Broadcasting, Inc. CL A 9
*100 Univision Communications 3
12
Retail Trades - 6.9%
200 Gap, Inc. 6
200 Home Depot, Inc. 11
*200 Safeway, Inc. 9
500 TJX Companies, Inc. 18
44
Miscellaneous Services - 2.0%
*400 U.S.A. Waste Service 13
Financial Related - 12.5% $80
Financial Services - 12.5%
400 Associates First Cap. Corp. $16
200 First Data Corp. 16
*600 Dime Bancorp, Inc. 8
200 Green Tree Financial 8
400 Greenpoint Financial Corp. 15
200 Household Int'l, Inc. 17
80
Industrial Related - 14.0% $89
Energy Resources & Services - 5.8%
*100 Belco Oil & Gas Corp. $3
*400 Ensco Int'l 13
100 Schlumberger, Ltd. 9
200 Transocean Offshore 12
37
Industrial/Electronics Products - 2.4%
100 Illinois Tool Works, Inc. 7
200 Sundstrand Corp. 8
15
Chemicals - 2.4%
400 Monsanto Co. 15
Transportation - 3.4%
100 Boeing Co. 10
100 United Technologies Corp. 12
22
Medical Related - 3.7% $24
Pharmaceuticals - 3.7%
200 Pfizer, Inc. $16
*200 Watson Pharmaceutical 8
24
<page 16>
Technology Related - 17.9% $114
Semiconductors - 3.0%
200 Intel Corp. $19
Computer Software - 6.3%
*300 Citrix Systems, Inc. 15
*100 Microsoft Corp. 13
200 Electronic Data Systems Corp. 12
40
Telecommunications Svcs & Equip - 8.6%
*200 Ascend Communications 13
*100 Cascade Communications 8
*200 Cisco Systems, Inc. 12
*100 LCC Int'l, Inc. 2
*100 Shiva Corp. 6
*200 Tellabs, Inc. 14
55
Total Common Stock
(Cost $356)(a) 410
U.S. Treasury Notes - 18.6%
40,000 6.00%, Due 05/31/98 40
40,000 6.00%, Due 10/15/99 40
40,000 5.75%, Due 10/31/00 39
119
Variable Demand Notes - 10.5%
28,700 American Family 29
26,000 Eli Lilly 26
12,100 Warner Lambert 12
67
Total Investments - 93.3% 595
(Cost $541)(a)
Other Assets Less Liabilities - 6.7% 43
Net Assets - 100% $638
</TABLE>
Net Asset Value, offering price and redemption per share
($638,072/51,252 shares outstanding) $12.45
(a)Cost is identical for book and tax purposes; the aggregate gross unrealized
appreciation is $61 and aggregate gross unrealized depreciation is $7,
resulting in net unrealized appreciation of $54(in thousands).
*Non-income producing security.
<page 17>
Schedule of Investments
September 30, 1996
(unaudited)
MONETTA INTERMEDIATE BOND FUND
<TABLE>
<CAPTION>
Quoted
Shares or Market
Principal Value
Amount (In Thousands)
<S> <C>
Treasury Notes - 58.6%
300,000 6.25% Due 01/31/97 $301
200,000 5.50% Due 04/15/00 195
100,000 7.50% Due 11/15/01 104
200,000 6.37% Due 08/15/02 199
200,000 5.75% Due 08/15/03 191
200,000 5.87% Due 02/15/04 191
200,000 6.50% Due 05/15/05 197
200,000 6.50% Due 08/15/05 197
1,575
Government Agency - 1.6%
40,000 Sheboygan, WI TIF#6
8.5% Due 03/15/03 42
Corporate Bonds - 32.0%
100,000 Delta Airlines, 7.73%
Due 05/14/97 101
50,000 American Airlines, 8.70%
Due 01/15/98 51
50,000 Salomon, Inc., 9.37%
Due 04/15/98 52
100,000 Chase Manhatten Corp., 8.80%
Due 02/01/00 101
50,000 ADT Operations, 8.25%
Due 08/01/00 52
50,000 American Standard, 9.87%
Due 06/01/01 53
50,000 Dayton-Hudson, 9.75%
Due 07/01/02 56
100,000 IBM Corp., 7.25%
Due 11/01/02 102
100,000 RJR Nabisco, Inc., 8.62%
Due 12/01/02 100
100,000 Webb, Del E., 9.75%
Due 03/01/03 100
100,000 Salomon, Inc., 6.75%
Due 01/15/06 93
861
Federal Home Bank Loan - 3.6%
100,000 6.44% Due 11/28/05 96
Mortgage Obligations - 0.6%
15,344 GNMA, 8.50%
Due 07/15/21 16
Demand Notes - 2.1%
56,800 Warner Lambert 57
Total Investments - 98.5%
(Cost $2,689)(a) 2,647
Other Assets Less Liabilities- 1.5% 40
Net Assets - 100% $2,687
</TABLE>
Net Asset Value, offering price and redemtpion per share
($2,686,631/265,101 shares outstanding) $10.13
(a)Cost is identical for book and tax purposes; the aggregate gross unrealized
appreciation is $8 and aggregate gross unrealized depreciation is $50,
resulting in net unrealized depreciation of $42(in thousands).
<page 18>
Schedule of Investments
September 30, 1996
(unaudited)
MONETTA GOVERNMENT MONEY MARKET FUND
<TABLE>
<CAPTION>
Quoted
Shares or Market
Principal Value
Amount (In Thousands)
<S> <C>
GOVERNMENT OBLIGATIONS - 47.9%
U.S. Treasury Bills - 47.9%
600,000 Due 10/17/96 $599
400,000 Due 11/14/96 398
1,000,000 Due 12/12/96 990
870,000 Due 03/06/97 850
500,000 Due 07/24/97 477
60,000 Due 09/18/97 57
3,371
GOVERNMENT AGENCY - 53.0%
Federal Farm Credit Discount Note - 1.2%
90,000 Due 10/21/96 90
Federal Agriculture Mortgage Corp. Discount Notes - 3.5%
100,000 Due 01/02/97 99
150,000 Due 04/01/97 146
245
Federal Home Loan Bank Discount Notes - 15.0%
355,000 Due 10/16/96 354
450,000 Due 10/17/96 449
150,000 Due 12/05/96 148
110,000 Due 04/14/97 107
1,058
Federal National Mortgage Association Discount Notes - 19.5%
975,000 Due 10/11/96 974
400,000 Due 11/19/96 397
1,371
Federal Home Loan Mortgage Corp. Discount Notes - 7.7%
475,000 Due 01/15/97 467
80,000 Due 02/03/97 78
545
Tennessee Valley Authority - 6.1%
430,000 Due 11/04/96 428
Total Investments - 100.9% 7,108
Other Assets Less Liabilities - (.9)% (66)
Net Assets - 100% $7,042
</TABLE>
Net Asset Value, offering price, and redemption price per share
($7,042,324/7,042,324 shares outstanding) $1.00
(a) Cost is identical for book and tax purposes.
<page 19>
Quarterly Report
September 30, 1996
MONETTA FAMILY OF FUNDS
Monetta Fund, Inc.
Monetta Mid-Cap Equity Fund
Monetta Large-Cap Fund
Monetta Balanced Fund
Monetta Intermediate Bond Fund
Monetta Government Money Market Fund
Monetta Funds
1776-A South Naperville Road
Suite 207
Wheaton, Illinois 60187
1-800-MONETTA
