<PAGE> PAGE 1
000 B000000 09/30/98
000 C000000 0000895571
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 CAPITAL APPRECIATION PORTFOLIO
001 B000000 811-07408
001 C000000 4108953709
002 A000000 1 SOUTH STREET
002 B000000 BALTIMORE
002 C000000 MD
002 D010000 21201
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 BANKERS TRUST COMPANY
008 B000001 A
008 C000001 801-xxxxx
008 D010001 NEW YORK
008 D020001 NY
008 D030001 10006
010 A000001 BANKERS TRUST COMPANY
010 C010001 NEW YORK
010 C020001 NY
010 C030001 10006
011 A000001 FEDERATED SERVICE COMPANY
011 B000001 8-41134
011 C010001 PITTSBURG
011 C020001 PA
011 C030001 15222
011 C040001 3775
012 A000001 BANKERS TRUST COMPANY
012 B000001 84-XXXXX
012 C010001 NEW YORK
<PAGE> PAGE 2
012 C020001 NY
012 C030001 10006
013 A000001 PRICEWATERHOUSECOOPERS LLP
013 B010001 BALTIMORE
013 B020001 MD
013 B030001 21202
015 A000001 BANKERS TRUST COMPANY
015 B000001 C
015 C010001 NEW YORK
015 C020001 MD
015 C030001 10017
015 E030001 X
018 000000 Y
019 A000000 Y
019 B000000 59
019 C000000 BTTINFUNDS
020 A000001 MERRILL LYNCH, PIERCE, FENNER & SMITH, INC
020 B000001 13-5674085
020 C000001 21
020 A000002 HOENIG & CO., INC.
020 B000002 13-2656060
020 C000002 15
020 A000003 ROBINSON - HUMPHREY COMPANY
020 B000003 58-1472560
020 C000003 10
020 A000004 PAINEWEBBER INCORPORATED
020 B000004 13-2638166
020 C000004 7
020 A000005 BRIDGE TRADING COMPANY
020 B000005 43-1450530
020 C000005 7
020 A000006 GERALD KLAVER MATTISON & CO.
020 B000006 13-3459853
020 C000006 5
020 A000007 FURMAN SELTZ INCORPORATED
020 B000007 13-2753731
020 C000007 5
020 A000008 LEHMAN BROTHERS INC.
020 B000008 13-2518466
020 C000008 4
020 A000009 COWEN & COMPANY
020 B000009 13-3443499
020 C000009 3
020 A000010 DONALDSON, LUFKIN JENRETTE SECURITIES CORP.
020 B000010 13-2741729
020 C000010 3
021 000000 115
022 A000001 FURMAN SELZ
022 B000001 13-2753731
022 C000001 1691
022 D000001 4202
<PAGE> PAGE 3
022 A000002 LEHMAN BROTHERS
022 B000002 13-2518466
022 C000002 2335
022 D000002 2510
022 A000003 MORGAN STANLEY
022 B000003 13-2655998
022 C000003 1925
022 D000003 2273
022 A000004 GOLDMAN SACHS
022 B000004 13-5108880
022 C000004 1959
022 D000004 1877
022 A000005 BEAR STEARNS
022 B000005 13-3299429
022 C000005 1541
022 D000005 2180
022 A000006 MERRILL LYNCH, PIERCE, FENNER, SMITH INC.
022 B000006 13-5674085
022 C000006 2234
022 D000006 1454
022 A000007 SMITH BARNEY SHEARSON INC.
022 B000007 13-1912900
022 C000007 935
022 D000007 2467
022 A000008 UBS SECURITIES INC.
022 B000008 13-2932996
022 C000008 1998
022 D000008 978
022 A000009 CS FIRST BOSTON CORP.
022 B000009 13-5659485
022 C000009 1216
022 D000009 1731
022 A000010 DONALDSON, LUFKIN, AND JENRETTE
022 B000010 13-2741729
022 C000010 738
022 D000010 2088
023 C000000 492792
023 D000000 35155
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 N
026 C000000 Y
026 D000000 Y
<PAGE> PAGE 4
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 1695
028 A020000 0
028 A030000 0
028 A040000 2050
028 B010000 618
028 B020000 0
028 B030000 0
028 B040000 1541
028 C010000 925
028 C020000 0
028 C030000 0
028 C040000 1945
028 D010000 1038
028 D020000 0
028 D030000 0
028 D040000 1594
028 E010000 219
028 E020000 0
028 E030000 0
028 E040000 801
028 F010000 160
028 F020000 0
028 F030000 0
028 F040000 3559
028 G010000 4655
028 G020000 0
028 G030000 0
028 G040000 11490
028 H000000 0
029 000000 N
030 A000000 0
030 B000000 0.00
030 C000000 0.00
031 A000000 0
031 B000000 0
032 000000 0
033 000000 0
034 000000 N
035 000000 0
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
040 000000 N
041 000000 N
<PAGE> PAGE 5
042 A000000 0
042 B000000 0
042 C000000 0
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 0
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.650
048 A010000 0
048 A020000 0.000
048 B010000 0
048 B020000 0.000
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 Y
053 B000000 Y
053 C000000 N
054 A000000 Y
054 B000000 Y
054 C000000 Y
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 Y
054 H000000 Y
<PAGE> PAGE 6
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 Y
054 M000000 Y
054 N000000 N
054 O000000 N
055 A000000 N
055 B000000 N
056 000000 Y
057 000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 0
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 Y
066 B000000 Y
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 N
070 B010000 Y
070 B020000 N
070 C010000 Y
070 C020000 N
070 D010000 Y
070 D020000 N
070 E010000 N
070 E020000 N
<PAGE> PAGE 7
070 F010000 Y
070 F020000 Y
070 G010000 Y
070 G020000 N
070 H010000 Y
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 N
070 J020000 N
070 K010000 Y
070 K020000 N
070 L010000 Y
070 L020000 N
070 M010000 Y
070 M020000 N
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 N
070 P020000 N
070 Q010000 Y
070 Q020000 N
070 R010000 Y
070 R020000 N
071 A000000 478092
071 B000000 53340
071 C000000 36776
071 D000000 145
072 A000000 12
072 B000000 0
072 C000000 214
072 D000000 0
072 E000000 0
072 F000000 253
072 G000000 39
072 H000000 0
072 I000000 0
072 J000000 0
072 K000000 0
072 L000000 0
072 M000000 3
072 N000000 0
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 39
072 S000000 1
072 T000000 0
072 U000000 0
<PAGE> PAGE 8
072 V000000 0
072 W000000 1
072 X000000 336
072 Y000000 102
072 Z000000 -20
072AA000000 4768
072BB000000 0
072CC010000 0
072CC020000 8470
072DD010000 0
072DD020000 0
072EE000000 0
073 A010000 0.0000
073 A020000 0.0000
073 B000000 0.0000
073 C000000 0.0000
074 A000000 0
074 B000000 0
074 C000000 1371
074 D000000 0
074 E000000 597
074 F000000 23489
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 253
074 K000000 0
074 L000000 17
074 M000000 0
074 N000000 25727
074 O000000 0
074 P000000 11
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 27
074 S000000 0
074 T000000 25689
074 U010000 0
074 U020000 0
074 V010000 0.00
074 V020000 0.00
074 W000000 0.0000
074 X000000 2
074 Y000000 0
075 A000000 0
075 B000000 38915
076 000000 0.00
077 A000000 Y
077 B000000 Y
<PAGE> PAGE 9
077 Q010000 Y
078 000000 N
080 A000000 NATIONAL UNION INSURANCE COMPANY
080 C000000 13150
081 A000000 Y
081 B000000 22
082 A000000 Y
082 B000000 25
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE BRIAN WIXTED
TITLE PRINCIPAL
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000906619
<NAME> CAPITAL APPRECIATION PORTFOLIO
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 21,569,657
<INVESTMENTS-AT-VALUE> 25,456,665
<RECEIVABLES> 270,123
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 25,726,788
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 37,466
<TOTAL-LIABILITIES> 37,466
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 21,802,314
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,887,008
<NET-ASSETS> 25,689,322
<DIVIDEND-INCOME> 213,567
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 233,488
<NET-INVESTMENT-INCOME> (19,921)
<REALIZED-GAINS-CURRENT> 4,677,569
<APPREC-INCREASE-CURRENT> (8,470,353)
<NET-CHANGE-FROM-OPS> (3,812,705)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (23,282,457)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 252,946
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 335,314
<AVERAGE-NET-ASSETS> 38,914,694
<PER-SHARE-NAV-BEGIN> 0.00
<PER-SHARE-NII> 0.00
<PER-SHARE-GAIN-APPREC> 0.00
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 0.00
<EXPENSE-RATIO> 0.60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
To the Trustees of the Capital Appreciation Portfolio:
In planning and performing our audit of the financial statements and financial
highlights of the Capital Appreciation Portfolio (hereafter referred to as the
"Portfolio") for the year ended September 30, 1998, we considered its internal
control, including control activities for safeguarding securities, in order to
determine our auditing procedures for the purpose of expressing our opinion on
the financial statements and financial highlights and to comply with the
requirements of Form N-SAR, not to provide assurance on internal control.
The management of the Portfolio is responsible for establishing and maintaining
internal control. In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of
controls. Generally, controls that are relevant to an audit pertain to the
entity's objective of preparing financial statements and financial highlights
for external purposes that are fairly presented in conformity with generally
accepted accounting principles. Those controls include the safeguarding of
assets against unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, error or fraud may occur
and not be detected. Also, projection of any evaluation of internal control to
future periods is subject to the risk that it may become inadequate because of
changes in conditions or that the effectiveness of the design and operation may
deteriorate.
Our consideration of internal control would not necessarily disclose all matters
in internal control that might be material weaknesses under standards
established by the American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or operation of one or more
of the internal control components does not reduce to a relatively low level the
risk that misstatements caused by error or fraud in amounts that would be
material in relation to the financial statements and financial highlights being
audited may occur and not be detected within a timely period by employees in the
normal course of performing their assigned functions. However, we noted no
matters involving internal control and its operation, including controls over
safeguarding securities, that we consider to be material weaknesses as defined
above as of September 30, 1998.
This report is intended solely for the information and use of management, the
Board of Trustees of the Capital Appreciation Portfolio, and the Securities and
Exchange Commission.
PricewaterhouseCoopers LLP
Baltimore, Maryland
November 6, 1998
