Letter to Shareholders
Dear Shareholder:
The Dreyfus Focus Funds marked completion of their first semi-annual
reporting period on April 30, 1994. This report covers operations from the
inception of the Funds on December 29, 1993 to April 30, 1994, a period of
just over four months. The next report you receive will be an annual report
for the months from the start of operations through October 31, 1994, the
date chosen as the close of the Fund's fiscal year.
A CHANGED ECONOMIC ENVIRONMENT
During the first month of the Fund's operations, stock prices were still
rising, as the American economy continued to recover from recession without
any clear indications that inflation had returned as an economic problem.
In early February, however, the Federal Reserve Board initiated the first
of a series of moves to tighten credit and raise interest rates as a
preemptive strike against possible future inflation. The result was a
continuing sell-off in the stock markets, as investors reacted to the threat
of higher interest rates.
While, in retrospect, the climate for the start-up of these portfolios
was not ideal, we believe that each of their underlying approaches can prove
itself over the long term.
OUR APPROACH TO GROWTH
As described in the Fund's Prospectus, the Growth portfolios seek to
invest in companies with above average earnings growth. It should be borne in
mind, however, that stocks with a high rate of earnings growth tend to be
more volatile than the broad equity market.
LARGE COMPANY GROWTH
In setting up the Large Company Growth Portfolio, we looked abroad as
well as at home for companies with growth potential. The largest single
sector in which we established positions encompasses Telecommunications,
which includes Cable Television, Communications Equipment, and Telephony.
Telecommunications accounted for some 30.3% of the portfolio as of April 30,
a larger weighting than in the Standard & Poor's 500 Index.
Holdings in Telecommunications included companies in Britain, Hong Kong,
Brazil, New Zealand, Spain and Mexico as well as major U.S. companies such as
MCI Communications and LIN Broadcasting. In the equipment field, principal
positions included Ericsson (LM) Telephone Cl.B, A.D.R. (of Sweden), General
Instrument, Grupo Televisa S.A. (of Mexico) and Motorola.
During February, March and April, when the U.S. stock market experienced
a correction, these holdings also corrected, with the foreign holdings losing
more ground than the American stocks. However, they are now starting to
regain some ground and we believe their prospects for the longer range may be
very good.
At the end of the reporting period, the portfolio had an 8.8% weighting
in financial services including insurance, somewhat less than in the S & P
500 Index of 12%. Our holdings included such companies as Federal National
Mortgage Association, Student Loan Marketing Association and the insurance
company, American International Group.
The portfolio's stake in the health field amounted to about 10% which is
modestly more than the S & P weighting of 8%. Holdings include health
services companies, healthcare enterprises, biotechnology and three
pharmaceutical stocks -- Roche Holdings A.D.R. (the Swiss firm), Abbott
Laboratories and Genentech. Most of these investments lost some ground during
the four-month reporting period. We still believe strongly in this sector's
long-range potential.
About 5.7% of assets were invested in computer equipment and computer
software/services. Leading holdings here were COMPAQ Computer,
Hewlett-Packard and Microsoft. These investments gained in value during the
period.
The cash position of the Large Company Growth Portfolio was 8.8% as of
April 30 -- about normal for a Fund that is still
accumulating assets.
SMALL COMPANY GROWTH
This portfolio also emphasized Telecommunications -- amounting to 27.7%
of the total including radio, TV, semiconductors and cable companies. Names
included such companies as Tellabs, Zilog, Altera, Andrew and Cellular
Communications Cl.A. The group generally showed positive results for the
reporting period.
Energy stocks made up an important part of the portfolio, about 16%
versus 10% in the Standard & Poor's 500 Composite Stock Index. Investments
here included Global Marine, Rowan, Weatherford International, Sonat Offshore
Drilling, and Parker Drilling. Rowan showed an unrealized loss but most of
the other energy holdings were ahead for the four months.
Technology, accounting for nearly 12% of the portfolio, compared to an S
& P weighting of 8%, experienced mixed results. Our conviction on energy
remains intact, longer term.
The Small Company Growth Portfolio, at the close of the semi-annual
period, held 18.4% in cash and cash equivalents, which allows us to make
additional commitments when we see attractive opportunities.
OUR APPROACH TO VALUE
The Value portfolios invest primarily in companies selling at discount
valuations on a price/earnings or price/book basis. The process is truly one
that is research-driven and, in our opinion, by and large, risk averse.
We look for companies where we believe value exists but is often not
discernible to the naked eye. Our search for value in the stock market is
similar to buying a new car or home. We look for companies undergoing a
"catalyst for change" as evidenced by restructurings, spin-outs, changes in
management or acquisitions. We also closely monitor insider buying and
selling trends. Our focus is on value, good business fundamentals and
positive business momentum.
LARGE COMPANY VALUE
Finance was a major sector for this portfolio, accounting for 19.7% of
total holdings versus 12% weighting in the S & P 500. Two of our stocks,
Continental Bank and First Chicago, benefitted from trends toward bank
mergers, though the financial sector was weakened by poor performance of
insurance stocks.
The retail sector, in which the portfolio had a heavier weighting than
the S & P 500 (10.0% for the portfolio versus 7.1% for the S & P) showed a
small decline in asset value for the period. Here we hold stores such as May
Department Stores, Federated Department Stores, Penney (J.C.), Sears Roebuck
& Co., Designs and Dress Barn. Retail establishments should do better as the
consumer regains confidence.
Oil and Gas shares constituted approximately 7% of the portfolio compared
to 10% in the S & P 500. This was a mixture of U.S. and foreign companies --
Amoco, Elf Aquitaine A.D.R., Exxon, Mobil, USX - Marathon Group, Repsol S.A.,
A.D.R., Royal Dutch Petroleum, Total Petroleum N.A. and, in the refining
industry, Amerada Hess. Generally speaking, the energy holdings were on the
plus side for the reporting period.
Foreign holdings accounted for about 11.1% of the Large Company Value
Portfolio.
SMALL COMPANY VALUE
This portfolio normally holds shares in as many as 150 companies.
Financial companies, which we weighted at about 12.7%, approximately the
same as for the S & P 500, did not gain as a group during the period, though
investments in a number of Savings and Loans were up. The financial group was
affected negatively by the performance of insurance companies which made up
4.1% of the portfolio.
Rising interest rates negatively affected the performance of
construction-related stocks during the fiscal period. The retail
sector, including about a dozen names, turned in a mixed performance with a
net decline.
Foreign stocks accounted for 7.8% of the portfolio and cash and cash
equivalents ll.7%. The foreign stocks, which were all Canadian, include Total
Petroleum N.A., Beamscope Canada, Forzani Group Cl.A, CHC Helicopter Cl.B,
Enerflex Systems and Grad & Walker Energy. As a group, the Canadian holdings
showed a gain for the fiscal period.
We appreciate your investment in Dreyfus Focus Funds and will continue to
use our best research and market judgment in an effort to bring you rewarding
results.
Sincerely,
(Signature Logo)
Ernest Wiggins
Investment Officer
May 19, 1994
New York, N.Y.
Performance
Total Return for the period ending April 30, 1994 (1)
Large Company Growth Portfolio (3.92%)
Wilshire Large Company Growth Index (2) (3.08%)
Large Company Value Portfolio (0.32%)
Wilshire Large Company Value Index (2) (2.19%)
Small Company Growth Portfolio (5.20%)
Wilshire Small Company Growth Index (2) (2.75%)
Small Company Value Portfolio (0.24%)
Wilshire Small Company Value Index (2) (2.67%)
Standard & Poor's 500 Composite Stock Price Index (3) (2.55%)
Dow Jones Industrial Average (3) (1.05%)
Past performance is not predictive of future performance.
(1) Total return figures for the Focus portfolios are from Inception
(December 29, 1993). For the various stock market indices, the total
return figures are from December 31, 1993. Total return represents the
change during the period in a hypothetical account with dividends
reinvested.
(2) SOURCE: WILSHIRE ASSOCIATES, INC. - Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. The
Wilshire Large Company Growth Index, Small Company Growth Index, Large
Company Value Index and Small Company Value Index are unmanaged indices
derived from the largest 2,500 securities in the Wilshire 5000 Index. The
Large Company universe consists of the largest 750 companies in the
Wilshire 5000 and the Small Company universe consists of the remaining
securities in the top 2,500. The Value universe and Growth universe
consist of companies which embody the characteristics of each style
respectively.
(3) SOURCE: LIPPER ANALYTICAL SERVICES, INC. - Reflects the reinvestment
of income dividends and, where applicable, capital gain distributions.
Both the Dow Jones Industrial Average and the Standard & Poor's 500
Composite Stock Price Index are widely accepted unmanaged indices of
stock market performance.
None of the indices described above take into account charges, fees
and other expenses.
<TABLE>
<CAPTION>
TOTAL RETURN FOR THE PERIOD ENDING APRIL 30, 1994 (1)
<S> <C>
Large Company Growth Portfolio..................................................... (3.92)%
Wilshire Large Company Growth Index (2)......................................... (3.08)%
Small Company Growth Portfolio...................................................... (5.20)%
Wilshire Small Company Growth Index (2)......................................... (2.75)%
Small Company Value Portfolio....................................................... (0.32)%
Wilshire Small Company Value Index (2).......................................... (2.19)%
Small Company Value Portfolio...................................................... (0.24)%
Wilshire Small Company Value Index(2).......................................... (2.67)%
Standard & Poor's 500 Composite Stock Price Index(3)............................ (2.55)%
Dow Jones Industrial Average (3)................................................. (1.05)%
</TABLE>
Past performance is not predictive of future performance.
(1) Total return figures for the Focus portfolios are from Inception
(December 29, 1993). For the various stock market indices, the total
return figures are from December 31, 1993. Total return represents the
change during the period in a hypothetical account with dividends
reinvested.
(2) SOURCE: WILSHIRE ASSOCIATES, INC. - Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. the
Wilshire Large Company Growth Index, Small Company Growth Index, Large
Company Value Index and Small Company Value Index are unmanaged indices
derived from the largest 2,500 securities in the Wilshire 5000 Index. The
Large Company universe consists of the largest 750 companies in the
Wilshire 5000 and the Small companies which embody the characteristics of
each style respectively.
(3) SOURCE: LIPPER ANALYTICAL SERVICES, INC. - Reflects the reinvestment
of income dividends and, where applicable, capital gain distributions.
Both the Dow Jones Industrial Average and the Standard & Poor's 500
Composite Stock Price Index are widely accepted unmanaged indices of
stock market performance.
None of the indices described above take into account charges, fees and
other expenses.
<PAGE>
[LOGO]
Focus Funds, Inc.
Semi-Annual
Report
April 30, 1994
<PAGE>
- - --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., LARGE COMPANY GROWTH PORTFOLIO
STATEMENT OF INVESTMENTS APRIL 30, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------
COMMON STOCKS--91.2% SHARES VALUE
---------- ----------
<S> <C> <C> <C>
AIR COURIER SERVICES--1.1% Federal Express............................(a) 700 $ 53,375
----------
AIR TRANSPORT--3.2% AMR........................................(a) 1,400 84,875
Delta Air Lines............................ 1,500 71,250
----------
156,125
----------
BANKING--1.6% Morgan (J.P.) & Co......................... 1,300 79,950
----------
BEVERAGES-SOFT DRINK--1.9% Coca-Cola.................................. 2,200 91,575
----------
CABLE TELEVISION--1.4% Comcast, Cl. A............................. 2,900 45,675
Comcast, Cl. A (Non-voting)................ 1,450 22,837
----------
68,512
----------
CHEMICALS-MISCELLANEOUS-- .9% International Flavors & Fragrances......... 1,200 43,800
----------
COMMUNICATIONS EQUIPMENT--11.8% Ericsson (LM) Telephone, Cl. B, A.D.R...... 2,400 108,600
General Instrument.........................(a) 2,400 129,900
Grupo Televisa S.A.........................(a) 2,000 106,000
Motorola................................... 2,800 124,950
Newbridge Networks.........................(a) 900 45,337
Scientific-Atlanta......................... 1,800 60,300
----------
575,087
----------
COMPUTER EQUIPMENT--3.6% COMPAQ Computer............................(a) 800 88,800
Hewlett-Packard............................ 1,100 88,275
----------
177,075
----------
COMPUTER SOFTWARE/SERVICES--2.1% Microsoft..................................(a) 1,100 101,750
----------
CONSUMER PRODUCTS--1.2% Colgate-Palmolive.......................... 1,000 58,625
----------
CONSUMER STAPLES--3.5% Archer-Daniels-Midland..................... 3,200 73,600
General Mills.............................. 1,000 51,625
Wrigley, (Wm) Jr........................... 900 46,463
----------
171,688
----------
DISTRIBUTION-ENTERTAINMENT--1.5% Disney (Walt).............................. 1,700 72,037
----------
ELECTRONICS & ELECTRICAL General Electric........................... 900 85,612
EQUIPMENT--1.8%
----------
FINANCIAL SERVICES--3.4% Federal National Mortgage Association...... 1,400 116,550
Student Loan Marketing Association......... 1,300 51,025
----------
167,575
----------
HEALTH SERVICES--1.9% Amgen......................................(a) 1,200 48,600
Chiron.....................................(a) 700 45,413
----------
94,013
----------
HOUSEHOLD Gillette................................... 1,000 67,125
PRODUCTS-MISCELLANEOUS--1.4%
----------
</TABLE>
<PAGE>
- - --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., LARGE COMPANY GROWTH PORTFOLIO (CONTINUED)
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1994 (UNAUDITED)
<TABLE>
SHARES VALUE
---------- ----------
<S> <C> <C> <C>
INSURANCE--5.4% American International Group............... 1,400 $ 119,350
MGIC Investment............................ 3,100 94,162
Progressive Corp Ohio...................... 1,500 47,813
----------
261,325
----------
MACHINERY-AGRICULTURAL--1.9% Deere & Co................................. 1,200 92,100
----------
MACHINERY-INDUSTRIAL/SPECIALTY--1.6% Emerson Electric........................... 1,300 75,725
----------
MEDICAL SERVICES--2.2% U.S. HealthCare............................ 1,350 50,625
United Healthcare.......................... 1,400 58,100
----------
108,725
----------
MOBILE HOMES--.7% Clayton Homes..............................(a) 1,700 36,338
----------
NATURAL GAS--1.3% Anadarko Petroleum......................... 1,100 61,600
----------
OIL & GAS--3.7% Louisiana Land & Exploration............... 1,900 75,050
Total, Cl. B, A.D.S........................ 3,600 104,400
----------
179,450
----------
OIL REFINING--1.2% Ashland Oil................................ 1,500 58,125
----------
OIL WELL EQUIPMENT & SERVICES--3.9% Baker Hughes............................... 3,700 67,988
Schlumberger Limited....................... 2,200 121,000
----------
188,988
----------
PHARMACEUTICALS--4.5% Abbott Laboratories........................ 2,500 70,937
Genentech..................................(a) 1,200 59,850
Roche Holdings, A.D.R...................... 1,900 90,725
----------
221,512
----------
RAILROAD EQUIPMENT--1.0% Trinity Industries......................... 1,400 48,650
----------
RETAIL TRADE-DRUG STORES--1.0% Walgreen................................... 1,200 50,100
----------
RETAIL TRADE-FOOD CHAINS--1.3% Albertson's................................ 2,200 62,975
----------
RETAIL TRADE-MISCELLANEOUS--1.0% Home Shopping Network......................(a) 4,200 48,300
----------
TELECOMMUNICATIONS--17.1% Cable & Wireless, A.D.S.................... 3,100 63,550
Hong Kong Telecom, A.D.R................... 1,400 80,150
LIN Broadcasting...........................(a) 700 74,025
MCI Communications......................... 3,500 80,063
MFS Communications.........................(a) 1,500 41,250
NEXTEL Communications, Cl. A...............(a) 1,300 46,150
Telecom Corp New Zealand, A.D.S............ 1,800 83,700
Telecomunicacoes Brasileiras S.A., A.D.R... 2,300 81,650
Telefonica de Espana, A.D.S................ 2,000 81,500
Telefonos de Mexico, Cl. A, A.D.R.......... 1,500 88,312
Telephone & Data Systems................... 1,200 45,600
Vodafone Group, A.D.R...................... 800 65,600
----------
831,550
----------
</TABLE>
<PAGE>
- - --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., LARGE COMPANY GROWTH PORTFOLIO (CONTINUED)
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1994 (UNAUDITED)
<TABLE>
SHARES VALUE
---------- ----------
<S> <C> <C> <C>
UTILITIES-ELECTRIC POWER--1.1% China Light & Power, A.D.R................. 10,300 $ 54,075
----------
TOTAL COMMON STOCKS
(cost $4,654,889)........................ $4,443,462
----------
----------
- - ----------------------------------------------------------------------------------- PRINCIPAL
SHORT-TERM INVESTMENTS--8.5% AMOUNT VALUE
---------- ----------
<S> <C> <C> <C>
U.S. TREASURY BILLS: 3.50%, 5/19/1994........................... $ 114,000 $ 113,801
3.56%, 7/21/1994........................... 302,000 299,581
----------
TOTAL SHORT-TERM INVESTMENTS
(cost $413,382).......................... $ 413,382
----------
----------
TOTAL INVESTMENTS (cost $5,068,271)................................................ 99.7% $4,856,844
---------- ----------
---------- ----------
CASH AND RECEIVABLES (NET)........................................................ .3% $ 16,338
---------- ----------
---------- ----------
NET ASSETS........................................................................ 100.0% $4,873,182
---------- ----------
---------- ----------
</TABLE>
- - --------------------------------------------------------------------------------
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.
See notes to financial statements.
<PAGE>
- - --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., LARGE COMPANY VALUE PORTFOLIO
STATEMENT OF INVESTMENTS APRIL 30, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------
COMMON STOCKS--99.7% SHARES VALUE
---------- ----------
<S> <C> <C> <C>
AIR TRANSPORT--2.8% Delta Air Lines............................ 1,300 $ 61,750
KLM Royal Dutch Airlines...................(a) 2,800 79,800
----------
141,550
----------
AIRCRAFT & AEROSPACE--3.4% Lockheed................................... 300 18,413
Martin Marietta............................ 1,700 75,650
Rockwell International..................... 1,200 46,800
Textron.................................... 600 31,650
----------
172,513
----------
AUTO PARTS--4.7% Ford Motor................................. 1,200 70,050
General Motors............................. 3,000 170,250
----------
240,300
----------
AUTO RELATED--.5% Ryder System............................... 1,000 25,000
----------
AUTOMOBILES--1.6% Volkswagen A.G., A.D.R..................... 1,300 82,631
----------
BANKING--6.7% Chase Manhattan............................ 1,900 64,600
Chemical Banking........................... 700 24,325
Commerce Bancshares........................ 600 19,313
Continental Bank........................... 1,900 65,550
First Chicago.............................. 1,300 68,737
Morgan (J.P.) & Co......................... 1,100 67,650
Republic New York.......................... 600 29,625
----------
339,800
----------
BASIC INDUSTRIES--.1% Rayonier................................... 250 7,063
----------
BEVERAGES-SOFT DRINK--.8% Seagram.................................... 1,400 41,125
----------
BROADCASTING--.4% Turner Broadcasting Systems, Cl. B......... 1,100 20,763
----------
CHEMICALS--1.4% Georgia Gulf...............................(a) 800 23,100
Grace (W.R.) & Co.......................... 1,200 48,900
----------
72,000
----------
CHEMICALS-MISCELLANEOUS--.8% IMC Fertilizer Group.......................(a) 1,100 40,700
----------
COMPUTER EQUIPMENT--1.2% Conner Peripherals.........................(a) 2,300 35,938
Cray Research..............................(a) 600 12,825
Quantum....................................(a) 700 12,381
----------
61,144
----------
COMPUTER SOFTWARE/SERVICES--.5% Honeywell.................................. 800 26,100
----------
CONSUMER PRODUCTS--1.5% Dial....................................... 1,600 75,200
----------
CONSUMER STAPLES--2.4% Archer-Daniels-Midland..................... 2,600 59,800
Heinz (H.J.)............................... 700 22,925
Ralston-Purina Group....................... 1,100 39,600
----------
122,325
----------
</TABLE>
<PAGE>
- - --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., LARGE COMPANY VALUE PORTFOLIO (CONTINUED)
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1994 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
ELECTRONICS & ELECTRICAL CMS Energy................................. 2,400 $ 53,400
EQUIPMENT--7.1%
General Electric........................... 800 76,100
Philips Electronics N.V.................... 5,600 163,100
Pinnacle West Capital...................... 2,500 51,563
Tandy...................................... 500 16,562
----------
360,725
----------
FINANCIAL--1.0% Fleet Financial Group...................... 1,300 49,075
----------
FINANCIAL SERVICES--10.9% American Express........................... 3,700 109,613
Federal National Mortgage Association...... 1,400 116,550
ITT........................................ 1,600 143,600
Loews...................................... 900 80,550
Student Loan Marketing Association......... 1,100 43,175
Travelers.................................. 1,700 59,075
----------
552,563
----------
FOOD-RESTAURANT--1.6% Luby's Cafeterias.......................... 800 19,000
McDonald's................................. 800 48,000
Shoney's...................................(a) 800 15,200
----------
82,200
----------
FOODS--.1% Ralcorp Holdings........................... 366 5,856
----------
FOODS & RELATED PRODUCTS--2.5% Pet........................................ 1,500 26,625
Philip Morris Cos.......................... 1,800 98,100
----------
124,725
----------
HEALTH CARE--.6% Johnson & Johnson.......................... 700 28,963
----------
HEALTH RELATED--1.6% Columbia/HCA Healthcare.................... 840 35,595
Healthtrust-The Hospital Company...........(a) 1,600 46,800
----------
82,395
----------
HEALTH SERVICES--.2% Genetics Institute.........................(a) 200 8,750
----------
HOUSEHOLD PRODUCTS-MISCELLANEOUS--.6% Libbey..................................... 1,500 28,875
----------
INSURANCE--5.5% ACE........................................ 1,100 31,350
Aetna Life & Casualty...................... 2,200 114,400
Allmerica Property & Casualty Cos.......... 1,100 18,563
Allstate................................... 1,200 28,650
American General........................... 1,200 30,600
American International Group............... 300 25,575
Lincoln National........................... 800 30,500
----------
279,638
----------
MACHINERY-AGRICULTURAL--1.6% Deere & Co................................. 400 30,700
Tenneco.................................... 1,000 51,250
----------
81,950
----------
</TABLE>
<PAGE>
- - --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., LARGE COMPANY VALUE PORTFOLIO (CONTINUED)
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1994 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
MEDICAL INSTRUMENTATIONS--.5% SpaceLabs Medical..........................(a) 1,000 $ 22,875
----------
MEDICAL SERVICES--.9% Bausch & Lomb.............................. 600 27,900
FHP International..........................(a) 700 17,062
----------
44,962
----------
METAL FABRICATING--.7% Parker-Hannifin............................ 800 34,700
----------
NATURAL GAS--1.8% Occidental Petroleum....................... 3,300 58,575
TransCanada Pipelines...................... 2,500 33,750
----------
92,325
----------
OIL & GAS--7.0% Amoco...................................... 500 28,063
Elf Aquitaine, A.D.R....................... 400 14,550
Exxon...................................... 1,100 69,162
Mobil...................................... 900 70,425
Repsol S.A., A.D.R......................... 1,100 36,300
Royal Dutch Petroleum...................... 700 76,300
Total Petroleum N.A........................ 1,200 20,700
USX-Marathon Group......................... 2,200 37,125
----------
352,625
----------
OIL REFINING--.5% Amerada Hess............................... 500 25,125
----------
PACKAGING--1.4% Premark International...................... 900 71,100
----------
PAPER & PAPER RELATED--3.9% Federal Paper Board........................ 500 10,625
Illinois Power............................. 2,500 55,625
International Paper........................ 400 26,100
James River................................ 700 12,337
Paragon Trade Brands.......................(a) 500 14,500
Repap Enterprises..........................(a) 4,000 13,250
Scott Paper................................ 800 34,300
Stone Container............................(a) 1,000 13,500
Temple-Inland.............................. 400 18,950
----------
199,187
----------
PHARMACEUTICALS--2.2% Genentech..................................(a) 700 34,913
Warner-Lambert............................. 1,100 74,662
----------
109,575
----------
PHOTOGRAPHY--2.2% Eastman Kodak.............................. 2,000 83,000
Xerox...................................... 300 29,662
----------
112,662
----------
RAILROADS--1.2% Conrail.................................... 1,100 62,012
----------
RETAIL-APPAREL--.7% Designs....................................(a) 1,000 14,500
Dress Barn.................................(a) 800 9,200
Russell.................................... 500 14,125
----------
37,825
----------
</TABLE>
<PAGE>
- - --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., LARGE COMPANY VALUE PORTFOLIO (CONTINUED)
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1994 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
RETAIL TRADE-DEPARTMENT STORES--6.4% Dillard Department Stores, Cl. A........... 900 $ 30,150
Federated Department Stores................(a) 2,300 49,163
May Department Stores...................... 1,500 62,812
Mercantile Stores.......................... 700 26,600
Penney (J.C.).............................. 800 43,400
Sears Roebuck & Co......................... 2,400 112,800
----------
324,925
----------
RETAIL TRADE-FOOD CHAINS--.2% Food Lion, Cl. A........................... 1,600 9,400
----------
RETAIL TRADE-MISCELLANEOUS--2.2% Caldor.....................................(a) 800 23,600
Dayton Hudson.............................. 700 55,300
Family Dollar Stores....................... 900 13,725
Waban......................................(a) 1,100 18,562
----------
111,187
----------
RETAIL TRADE-SHOES--.5% Melville................................... 600 23,850
----------
SAVINGS & LOAN COMPANIES--1.1% Anchor Bancorp.............................(a) 1,300 16,737
Standard Federal Bank...................... 1,500 38,063
----------
54,800
----------
STEEL--1.4% AK Steel Holding........................... 1,300 29,737
Bethlehem Steel............................(a) 2,000 40,250
----------
69,987
----------
TEXTILES--1.0% Burlington Industries......................(a) 3,400 51,850
----------
TOBACCO--1.4% American Brands............................ 800 27,100
RJR Nabisco Holdings.......................(a) 6,500 41,437
----------
68,537
----------
TRUCKING--.4% Arkansas Best.............................. 1,600 20,200
----------
TOTAL INVESTMENTS (cost $5,092,000)................................................ 99.7% $5,053,638
------ ----------
------ ----------
CASH AND RECEIVABLES (NET)......................................................... .3% $ 15,148
------ ----------
------ ----------
NET ASSETS......................................................................... 100.0% $5,068,786
------ ----------
------ ----------
</TABLE>
- - --------------------------------------------------------------------------------
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.
See notes to financial statements.
<PAGE>
- - --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY GROWTH PORTFOLIO
STATEMENT OF INVESTMENTS APRIL 30, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------
COMMON STOCKS--81.6% SHARES VALUE
---------- ----------
<S> <C> <C> <C>
ADVERTISING--1.5% Catalina Marketing.........................(a) 1,500 $ 71,625
----------
AIR TRANSPORT--5.4% Comair Holdings............................ 3,200 66,400
Mesa Airlines..............................(a) 5,500 79,750
SkyWest.................................... 3,000 115,875
----------
262,025
----------
BUILDING & CONSTRUCTION--2.8% Hovnanian Enterprises, Cl. A...............(a) 5,000 62,500
Toll Brothers..............................(a) 5,100 71,400
----------
133,900
----------
CABLE TELEVISION--2.3% People's Choice TV.........................(a) 1,700 40,375
United International Holdings, Cl. A.......(a) 5,200 68,900
----------
109,275
----------
COMMUNICATIONS EQUIPMENT--13.4% ANTEC......................................(a) 3,100 83,313
Andrew.....................................(a) 2,400 93,000
Auspex Systems.............................(a) 8,600 49,450
Chipcom....................................(a) 2,600 121,875
NetFRAME Systems...........................(a) 4,500 51,750
Octel Communications.......................(a) 3,600 73,800
Tellabs....................................(a) 2,700 172,125
----------
645,313
----------
COMPUTER SOFTWARE/SERVICES--2.8% GMIS.......................................(a) 4,400 50,600
Keane......................................(a) 2,200 85,525
----------
136,125
----------
DISTRIBUTION/ENTERTAINMENT--.8% Savoy Pictures Entertainment...............(a) 3,000 36,750
----------
HEALTH SERVICES--1.7% Mariner Health Group.......................(a) 3,500 83,562
----------
HOME FURNISHINGS--1.2% ABT Building Products......................(a) 2,600 59,800
----------
HOMEBUILDING--1.2% Southern Energy Homes......................(a) 4,500 57,375
----------
HOUSEHOLD APPLIANCES--1.3% Fedders....................................(a) 7,800 60,450
----------
INSURANCE--3.0% Phoenix Re................................. 3,000 70,500
United Companies Financial................. 2,000 72,000
----------
142,500
----------
MACHINERY/SPECIALTY--2.6% Lam Research...............................(a) 2,000 60,500
Novellus Systems...........................(a) 1,800 65,475
----------
125,975
----------
MINING & METALS--1.5% Cleveland-Cliffs........................... 2,000 74,250
----------
MOBILE HOMES--3.2% Coachmen Industries........................ 5,000 76,875
Oakwood Homes.............................. 3,600 76,950
----------
153,825
----------
</TABLE>
<PAGE>
- - --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY GROWTH PORTFOLIO (CONTINUED)
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1994 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
NATURAL GAS--.7% Unit.......................................(a) 12,200 $ 35,075
----------
OIL & GAS DRILLING--11.4% Global Marine..............................(a) 32,300 129,200
Helmerich & Payne.......................... 2,800 73,150
Noble Drilling.............................(a) 8,500 58,438
Parker Drilling............................(a) 15,100 86,825
Rowan......................................(a) 15,900 115,275
Sonat Offshore Drilling.................... 5,000 88,750
----------
551,638
----------
OIL & GAS SERVICES--2.3% Weatherford International..................(a) 10,500 112,875
----------
OIL WELL EQUIPMENT & SERVICES--1.3% Varco International........................(a) 11,900 63,963
----------
PACKAGING--2.0% Seda Speciality Packaging..................(a) 4,000 94,000
----------
PHARMACEUTICALS--1.1% Amylin Pharmaceuticals.....................(a) 4,800 52,800
----------
PHOTOGRAPHY--1.6% Avid Technology............................(a) 2,800 75,950
----------
RADIO & TV BROADCASTING--3.0% Associated Communications, Cl. B...........(a) 3,200 69,800
C-TEC......................................(a) 2,400 76,800
----------
146,600
----------
SEMICONDUCTORS--4.9% Altera.....................................(a) 2,400 93,000
Zilog......................................(a) 4,200 140,700
----------
233,700
----------
TELECOMMUNICATIONS--4.1% Cellular Communications, Cl. A.............(a) 2,800 127,400
Rogers Cantel Mobile Communications, Cl. (a)
B........................................ 2,800 68,950
----------
196,350
----------
TEXTILES-SYNTHETIC FIBERS--1.5% Albany International, Cl. A................ 3,700 70,762
----------
TRANSPORTATION--1.5% Hornbeck Offshore Services.................(a) 4,900 74,112
----------
TRUCKING--1.5% Werner Enterprises......................... 2,700 71,550
----------
TOTAL COMMON STOCKS
(cost $4,144,844)........................ $3,932,125
----------
----------
</TABLE>
<PAGE>
- - --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY GROWTH PORTFOLIO (CONTINUED)
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
- - ----------------------------------------------------------------------------------- PRINCIPAL
SHORT-TERM INVESTMENTS--16.2% AMOUNT VALUE
---------- ----------
<S> <C> <C> <C>
U.S. TREASURY BILLS: 3.328%, 5/5/1994........................... $ 205,000 $ 204,924
3.50%, 5/19/1994........................... 77,000 76,866
3.56%, 7/21/1994........................... 504,000 499,962
----------
TOTAL SHORT-TERM INVESTMENTS
(cost $781,752).......................... $ 781,752
----------
----------
TOTAL INVESTMENTS (cost $4,926,596)................................................ 97.8% $4,713,877
------ ----------
------ ----------
CASH AND RECEIVABLES (NET)......................................................... 2.2% $ 105,074
------ ----------
------ ----------
NET ASSETS......................................................................... 100.0% $4,818,951
------ ----------
------ ----------
</TABLE>
- - --------------------------------------------------------------------------------
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.
See notes to financial statements.
<PAGE>
- - --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY VALUE PORTFOLIO
STATEMENT OF INVESTMENTS APRIL 30, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
- - -----------------------------------------------------------------------------------
COMMON STOCKS--88.3% SHARES VALUE
---------- ----------
<S> <C> <C> <C>
AIR TRANSPORT--.9% Alaska Air Group...........................(a) 2,000 $ 31,250
CCAIR......................................(a) 5,300 17,225
----------
48,475
----------
AUTO PARTS--1.2% Borg-Warner Automotive..................... 1,500 39,375
Defiance...................................(a) 3,400 22,950
----------
62,325
----------
BANKING--.9% City National..............................(a) 3,800 38,000
National Mercantile Bancorp................(a) 2,700 10,125
----------
48,125
----------
BIOTECHNOLOGY--1.1% Primark....................................(a) 4,200 58,800
----------
BROADCASTING--2.3% Broadcasting Partners, Cl. A............... 1,800 20,700
Chris-Craft Industries..................... 1,339 45,526
SFX Broadcasting, Cl. A.................... 3,900 49,725
----------
115,951
----------
BUILDING & CONSTRUCTION--1.8% Continental Homes Holdings................. 2,300 37,088
NVR........................................(a) 1,700 12,750
U.S. Home..................................(a) 2,000 41,750
----------
91,588
----------
BUILDING & INDUSTRIAL SUPPLIES--2.5% Elco Industries............................ 3,200 61,600
Medalist Industries........................(a) 2,600 34,450
RB&W.......................................(a) 4,700 32,313
----------
128,363
----------
CHEMICALS-MISCELLANEOUS--1.1% NCH........................................ 500 30,313
Scotts, Cl. A..............................(a) 1,500 27,375
----------
57,688
----------
COMMUNICATIONS EQUIPMENT--.6% Code-Alarm.................................(a) 2,800 29,050
----------
COMPUTER EQUIPMENT--6.4% Cherry.....................................(a) 800 23,600
Conner Peripherals.........................(a) 4,000 62,500
Cray Research..............................(a) 1,400 29,925
Evans & Sutherland Computer................(a) 1,000 16,500
PAR Technology.............................(a) 6,600 49,500
Printronix.................................(a) 2,000 16,500
QMS........................................(a) 5,000 40,000
Quantum....................................(a) 1,500 26,531
Rexon......................................(a) 10,000 61,250
----------
326,306
----------
COMPUTER SERVICES--1.2% Beamscope Canada........................... 7,000 60,127
----------
</TABLE>
<PAGE>
- - --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY VALUE PORTFOLIO (CONTINUED)
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1994 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
CONSTRUCTION--1.8% Offshore Pipelines.........................(a) 4,000 $ 65,500
UTILX......................................(a) 5,000 25,625
----------
91,125
----------
CONSUMER GOODS--1.3% Alberto-Culver, Cl. A...................... 3,500 67,813
----------
CONSUMER PRODUCTS--.5% DeSoto.....................................(a) 3,600 24,300
----------
COSMETICS/TOILETRIES--.3% Block Drug, Cl. A (non-voting)............. 500 16,000
----------
ELECTRONICS & ELECTRICAL Read-Rite..................................(a) 3,000 37,500
EQUIPMENT--1.4%
Thomas Industries.......................... 2,400 34,800
----------
72,300
----------
FOOD-RESTAURANT--3.4% Daka International.........................(a) 5,400 63,450
Longhorn Steaks............................(a) 4,300 40,850
Luby's Cafeterias.......................... 1,900 45,125
Ryan's Family Steak House..................(a) 3,000 23,250
----------
172,675
----------
FOODS--.8% GoodMark Foods............................. 2,100 39,900
----------
FOREST PRODUCTS--.5% Slocan Forest Products..................... 1,400 27,975
----------
HEALTH SERVICES--1.6% Living Centers of America..................(a) 2,800 79,800
----------
HOME FURNISHINGS--2.6% Ameriwood Industries International.........(a) 900 10,575
LADD Furniture............................. 2,600 24,050
Lechters...................................(a) 3,500 42,875
Pier 1 Imports............................. 6,500 56,062
----------
133,562
----------
HOSPITAL RELATED--.7% OrNda Healthcorp...........................(a) 1,294 22,321
PSICOR.....................................(a) 1,300 11,700
----------
34,021
----------
HOUSEHOLD APPLIANCES--.6% Fedders....................................(a) 3,900 30,225
----------
INSURANCE--4.1% Acceptance Insurance Cos. (Warrants).......(a) 9,000 25,875
Allmerica Property & Casualty & Cos........ 1,800 30,375
Argonaut Group............................. 1,100 29,700
Capital Guaranty........................... 800 12,800
Citizens................................... 1,000 16,750
MMI Cos.................................... 3,000 38,438
Merchants Group............................ 1,300 20,068
Meridian Insurance Group................... 3,600 36,000
----------
210,006
----------
</TABLE>
<PAGE>
- - --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY VALUE PORTFOLIO (CONTINUED)
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1994 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
MACHINERY-INDUSTRIAL/SPECIALTY--1.4% Core Industries............................ 2,400 $ 30,000
Harnischfeger Industries................... 2,000 42,000
----------
72,000
----------
MANUFACTURING--1.0% Vista Resources............................(a) 2,300 52,038
----------
MEDICAL INSTRUMENTATIONS--2.6% Advanced Technology Labs...................(a) 1,300 18,525
Datascope..................................(a) 1,500 21,375
Nellcor....................................(a) 1,500 41,437
SpaceLabs Medical..........................(a) 2,400 54,900
----------
136,237
----------
MEDICAL SERVICES--1.2% Safeguard Health Enterprises...............(a) 2,900 39,875
Wellpoint Health Networks, Cl. A...........(a) 700 22,225
----------
62,100
----------
MINING--1.7% CalMat..................................... 3,500 70,000
Miramar Mining............................. 4,000 17,360
----------
87,360
----------
MINING & METALS--1.4% Cleveland-Cliffs........................... 2,000 74,250
----------
MOBILE HOMES--.9% Coachmen Industries........................ 3,000 46,125
----------
NATURAL GAS--2.9% Plains Petroleum........................... 2,500 55,625
Santa Fe Energy Resources.................. 6,000 53,250
Trident NGL Holdings....................... 4,500 40,500
----------
149,375
----------
OFFICE EQUIPMENT--.5% Pentech International......................(a) 4,000 23,500
----------
OIL & GAS DRILLING--.2% DI Industries..............................(a) 12,000 12,000
----------
OIL & GAS EXPLORATION--.5% Grad & Walker Energy....................... 2,600 27,740
----------
OIL & GAS SERVICES--2.9% CHC Helicopter, Cl. B...................... 5,700 47,414
Enerflex Systems........................... 3,200 42,242
Western Co. of North America...............(a) 4,600 58,650
----------
148,306
----------
OIL REFINING--1.6% Total Petroleum N.A........................ 4,800 82,800
----------
PAPER & PAPER RELATED--3.5% Duplex Products............................(a) 1,000 9,750
Ennis Business Forms....................... 2,600 36,075
Gibson (C.R.).............................. 2,200 15,675
MDC, Cl. A................................. 18,500 40,814
Nashua..................................... 1,200 31,500
Paragon Trade Brands.......................(a) 1,100 31,900
Varitronic Systems.........................(a) 1,400 12,250
----------
177,964
----------
</TABLE>
<PAGE>
- - --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY VALUE PORTFOLIO (CONTINUED)
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1994 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
PRINTING & PUBLISHING--1.6% Graphic Industries......................... 3,100 $ 29,062
Plenum Publishing.......................... 700 17,325
Pulitzer Publishing........................ 1,000 36,625
----------
83,012
----------
RETAIL-APPAREL--1.8% Designs....................................(a) 3,300 47,850
Dress Barn.................................(a) 3,700 42,550
----------
90,400
----------
RETAIL TRADE-DEPARTMENT STORES--1.1% Bon-Ton Stores.............................(a) 6,800 58,650
----------
RETAIL TRADE-MISCELLANEOUS--4.2% Blair...................................... 600 26,175
Forzani Group, Cl. A....................... 7,000 53,165
Shopko Stores.............................. 1,700 18,912
Uni-Marts.................................. 10,000 58,750
Venture Stores............................. 300 7,125
Waban......................................(a) 3,000 50,625
----------
214,752
----------
RETAIL TRADE-SPECIALTY--1.1% Johnson Worldwide Associates, Cl. A........(a) 1,500 31,500
Little Switzerland.........................(a) 3,300 23,100
----------
54,600
----------
SAVINGS & LOAN COMPANIES--7.7% Advantage Bancorp..........................(a) 700 19,075
Albank Financial........................... 2,000 41,125
AmeriFed Financial......................... 500 20,750
Anchor Bancorp.............................(a) 2,000 25,750
Astoria Financial.......................... 900 26,100
Downey Savings & Loan Association.......... 2,300 43,125
Farm & Home Financial...................... 1,100 33,137
Fidelity New York FSB...................... 2,300 43,700
First Palm Beach Bancorp................... 1,300 20,800
NBB Bancorp................................ 800 34,300
Standard Federal Bank...................... 2,000 50,750
Sterling Bancshares........................ 500 19,250
Sterling Financial......................... 1,300 15,600
----------
393,462
----------
SERVICES--.7% Kinder-Care Learning Centers...............(a) 2,800 37,100
----------
SOFTWARE--.6% Micrografx.................................(a) 4,700 30,256
----------
STEEL--2.0% Chaparral Steel............................ 3,400 34,425
Kentucky Electric Steel.................... 2,400 24,600
Schnitzer Steel Industries, Cl. A.......... 2,000 45,500
----------
104,525
----------
TELECOMMUNICATIONS--.1% Associated Communications, Cl. A...........(a) 300 6,825
----------
TRANSPORTATION-MISCELLANEOUS--.5% Alexander & Baldwin........................ 1,100 27,500
----------
</TABLE>
<PAGE>
- - --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY VALUE PORTFOLIO (CONTINUED)
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1994 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
TRUCKING--2.4% Arkansas Best.............................. 2,500 $ 31,562
Builders Transport.........................(a) 3,500 49,000
Cannon Express, Cl. B......................(a) 2,100 24,150
Matlack Systems............................(a) 1,000 16,000
----------
120,712
----------
WASTE MANAGEMENT--.4% Groundwater Technology.....................(a) 1,300 18,525
----------
WHOLESALE--2.2% Allou Health & Beauty Care, Cl. A..........(a) 1,500 14,813
International Recovery..................... 5,300 76,850
Morgan Products............................(a) 3,200 19,600
----------
111,263
----------
TOTAL COMMON STOCKS
(cost $4,730,384)........................ $4,529,877
----------
----------
<CAPTION>
- - ----------------------------------------------------------------------------------- PRINCIPAL
SHORT-TERM INVESTMENTS--9.3% AMOUNT
----------
<S> <C> <C> <C>
U.S. TREASURY BILLS: 3.25%, 5/5/1994............................(b) $ 60,000 $ 59,978
3.35%, 5/19/1994........................... 83,000 82,861
3.67%, 7/21/1994...........................(b) 337,000 334,220
----------
TOTAL SHORT-TERM INVESTMENTS
(cost $477,059).......................... $ 477,059
----------
----------
TOTAL INVESTMENTS (cost $5,207,443)................................................ 97.6% $5,006,936
------ ----------
------ ----------
CASH AND RECEIVABLES (NET)......................................................... 2.4% $ 124,399
------ ----------
------ ----------
NET ASSETS......................................................................... 100.0% $5,131,335
------ ----------
------ ----------
</TABLE>
- - --------------------------------------------------------------------------------
NOTES TO STATEMENT OF INVESTMENTS:
(a) Non-income producing.
(b) Partially held by broker as collateral for open short positions.
See notes to financial statements.
<PAGE>
- - --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY VALUE PORTFOLIO
STATEMENT OF SECURITIES SOLD SHORT APRIL 30, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
- - ------------------------------------------------------------------------------------------
COMMON STOCKS--3.4% SHARES VALUE
------- --------
<S> <C> <C>
Appliance Recycling Centers of America.................................................... 2,000 $ 24,000
Aviall.................................................................................... 1,800 27,000
Dyersburg................................................................................. 4,000 27,500
Flowers Industries........................................................................ 1,500 25,313
Lone Star Industries...................................................................... 324 5,022
Lone Star Industries (Warrants)........................................................... 1,654 11,578
Megahertz................................................................................. 1,700 19,550
Presstek.................................................................................. 800 18,300
Sodak Gaming.............................................................................. 1,200 18,150
--------
TOTAL SECURITIES SOLD SHORT (proceeds $217,804)........................................... $176,413
--------
--------
</TABLE>
See notes to financial statements.
<PAGE>
- - --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC.
- - --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
LARGE LARGE SMALL SMALL
COMPANY COMPANY COMPANY COMPANY
GROWTH VALUE GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at value [cost--Note 4(b)]--
see statement................................................ $4,856,844 $5,053,638 $4,713,877 $5,006,936
Cash........................................................... 6,392 1,677 98,044 68,926
Dividends receivable........................................... 3,326 7,631 -- 2,709
Receivable from brokers for proceeds on securities sold
short.......................................................... -- -- -- 217,804
Receivable for investment securities sold...................... -- -- -- 6,951
Prepaid expenses--Note 2(f).................................... 27,459 27,204 28,016 26,881
Due from The Dreyfus Corporation............................... 3,241 4,220 2,629 4,062
---------- ---------- ---------- ----------
4,897,262 5,094,370 4,842,566 5,334,269
---------- ---------- ---------- ----------
LIABILITIES:
Securities sold short, at value (proceeds $217,804)............ $ -- $ -- $ -- $ 176,413
Accrued expenses and other liabilities......................... 24,080 25,584 23,615 26,521
---------- ---------- ---------- ----------
24,080 25,584 23,615 202,934
---------- ---------- ---------- ----------
NET ASSETS....................................................... $4,873,182 $5,068,786 $4,818,951 $5,131,335
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
REPRESENTED BY:
Paid-in capital................................................ $5,070,894 $5,085,000 $5,082,025 $5,147,111
Accumulated undistributed investment income--net............... 27,584 39,176 14,394 53,490
Accumulated undistributed net realized gain (loss) on
investments.................................................. (13,869) (17,028) (64,749) 89,850
Accumulated net unrealized (depreciation)
on investments--Note 4(b).................................... (211,427) (38,362) (212,719) (159,116)
---------- ---------- ---------- ----------
NET ASSETS at value.............................................. $4,873,182 $5,068,786 $4,818,951 $5,131,335
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
SHARES OF COMMON STOCK OUTSTANDING
[400 million shares (with 100 million allocated to each series)
of $.001 par value Common Stock authorized].................... 405,601 406,658 406,632 411,440
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
NET ASSET VALUE per share
(Net Assets / Shares Outstanding).............................. $12.01 $12.46 $11.85 $12.47
</TABLE>
See notes to financial statements.
<PAGE>
- - --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC.
- - --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS FROM DECEMBER 29, 1993 (COMMENCEMENT OF OPERATIONS) TO
APRIL 30, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
LARGE LARGE SMALL SMALL
COMPANY COMPANY COMPANY COMPANY
GROWTH VALUE GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $209, $110 and $126 foreign taxes
withheld at source for the Large Company Growth, Large Company
Value and Small Company Value Portfolios, respectively)........ $ 18,473 $ 32,160 $ 2,836 $ 44,518
INTEREST......................................................... 9,111 7,016 11,558 9,338
--------- --------- --------- ---------
TOTAL INCOME................................................. 27,584 39,176 14,394 53,856
--------- --------- --------- ---------
EXPENSES--NOTE 2(C):
Management fee--Note 3(a)........................................ $ 12,669 $ 12,937 $ 12,655 $ 13,263
Shareholder servicing costs--Note 3(b,c)......................... 13,954 14,188 13,300 14,522
Auditing fees.................................................... 4,804 5,203 4,804 5,204
Organization expenses--Note 2(f)................................. 2,462 2,473 2,496 2,444
Legal fees....................................................... 1,963 2,043 1,963 2,043
Shareholders' reports............................................ 1,920 2,080 1,920 2,080
Registration fees................................................ 1,740 1,753 1,744 1,775
Custodian fees................................................... 784 1,616 826 2,217
Directors' fees--Note 3(d)....................................... 660 697 663 702
Dividends on securities sold short............................... -- -- -- 366
Miscellaneous.................................................... 693 693 695 692
--------- --------- --------- ---------
41,649 43,683 41,066 45,308
Less--expense reimbursement from Manager
due to undertaking--Note 3(a).................................. 41,649 43,683 41,066 44,942
--------- --------- --------- ---------
TOTAL EXPENSES............................................... -- -- -- 366
--------- --------- --------- ---------
INVESTMENT INCOME--NET....................................... 27,584 39,176 14,394 53,490
--------- --------- --------- ---------
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments--Note 4(a):
Long transactions................................................ $ (13,869) $ (17,028) $ (64,749) $ 83,628
Short sale transactions.......................................... -- -- -- 6,222
--------- --------- --------- ---------
NET REALIZED GAIN (LOSS)......................................... (13,869) (17,028) (64,749) 89,850
Net unrealized (depreciation) on investments
and securities sold short........................................ (211,427) (38,362) (212,719) (159,116)
--------- --------- --------- ---------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............ (225,296) (55,390) (277,468) (69,266)
--------- --------- --------- ---------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS............... $(197,712) $ (16,214) $(263,074) $ (15,776)
--------- --------- --------- ---------
--------- --------- --------- ---------
</TABLE>
See notes to financial statements.
<PAGE>
- - --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC.
- - --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS FROM DECEMBER 29, 1993 (COMMENCEMENT OF
OPERATIONS) TO APRIL 30, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
LARGE LARGE SMALL SMALL
COMPANY COMPANY COMPANY COMPANY
GROWTH VALUE GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income--net......................................... $ 27,584 $ 39,176 $ 14,394 $ 53,490
Net realized gain (loss) on investments........................ (13,869) (17,028) (64,749) 89,850
Net unrealized (depreciation) on investments for the period.... (211,427) (38,362) (212,719) (159,116)
---------- ---------- ---------- ----------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... (197,712) (16,214) (263,074) (15,776)
---------- ---------- ---------- ----------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold.................................. 5,053,200 5,060,000 5,096,363 5,123,611
Cost of shares redeemed........................................ (7,306) -- (39,338) (1,500)
---------- ---------- ---------- ----------
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS....... 5,045,894 5,060,000 5,057,025 5,122,111
---------- ---------- ---------- ----------
TOTAL INCREASE IN NET ASSETS............................... 4,848,182 5,043,786 4,793,951 5,106,335
NET ASSETS:
Beginning of period--Note 1.................................... 25,000 25,000 25,000 25,000
---------- ---------- ---------- ----------
End of period (including undistributed investment income--net
--see Statement of Assets and Liabilities)................... $4,873,182 $5,068,786 $4,818,951 $5,131,335
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
<CAPTION>
SHARES SHARES SHARES SHARES
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold.................................................... 404,190 404,658 407,787 409,562
Shares redeemed................................................ (589) -- (3,155) (122)
---------- ---------- ---------- ----------
NET INCREASE IN SHARES OUTSTANDING........................... 403,601 404,658 404,632 409,440
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
</TABLE>
See notes to financial statements.
<PAGE>
- - --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC.
- - --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (UNAUDITED)
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net assets
and other supplemental data for each series for the period December 29, 1993
(commencement of operations) to April 30, 1994. This information has been
derived from information provided in the Fund's financial statements.
<TABLE>
<CAPTION>
LARGE LARGE SMALL SMALL
COMPANY COMPANY COMPANY COMPANY
GROWTH VALUE GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------- ---------
--------- --------- --------- ---------
- - ---------------------------------------------------------------------
<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of period............................... $ 12.50 $ 12.50 $ 12.50 $ 12.50
--------- --------- --------- ---------
INVESTMENT OPERATIONS:
Investment income--net............................................. .07 .10 .04 .13
Net realized and unrealized (loss) on investments.................. (.56) (.14) (.69) (.16)
--------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS................................. (.49) (.04) (.65) (.03)
--------- --------- --------- ---------
Net asset value, end of period..................................... $ 12.01 $ 12.46 $ 11.85 $ 12.47
--------- --------- --------- ---------
--------- --------- --------- ---------
- - ---------------------------------------------------------------------
TOTAL INVESTMENT RETURN* (3.92%) (.32%) (5.20%) (.24%)
- - ---------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets*................. -- -- -- --
Ratio of dividends on securities sold short to average net
assets*............................................................ -- -- -- .01%
Ratio of net investment income to average net assets*.............. .55% .77% .29% 1.02%
Decrease reflected in above expense ratios due to undertaking
by the Manager*.................................................. .83% .85% .82% .86%
Portfolio Turnover Rate*........................................... 2.92% 9.37% 12.59% 23.27%
Net Assets, end of period (000's Omitted).......................... $ 4,873 $ 5,069 $ 4,819 $ 5,131
<FN>
- - ------------------------
* Not annualized.
</TABLE>
See notes to financial statements.
<PAGE>
- - --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC.
- - --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1--GENERAL:
Dreyfus Focus Funds, Inc. (the "Fund") was incorporated on November 16,
1993 and operates as a series company currently issuing four classes of shares
of Common Stock: the Large Company Growth Portfolio, the Large Company Value
Portfolio, the Small Company Growth Portfolio and the Small Company Value
Portfolio. The Fund accounts separately for the assets, liabilities and
operations of each series. The Fund had no operations until December 29, 1993
(when operations commenced for all series', other than matters relating to its
organization and registration as a diversified open-end management investment
company under the Investment Company Act of 1940 ("Act") and the Securities Act
of 1933 and the sale and issuance of 2,000 shares of Common Stock ("Initial
Shares") of each series to The Dreyfus Corporation ("Manager"). Dreyfus Service
Corporation ("Distributor"), a wholly-owned subsidiary of the Manager, acts as
the distributor of the Fund's shares. The Fund's fiscal year ends on October 31.
As of April 30, 1994, the Manager held the following shares:
<TABLE>
<S> <C> <S> <C>
Large Company Growth Portfolio 402,000 Small Company Growth Portfolio 402,000
Large Company Value Portfolio 402,000 Small Company Value Portfolio 407,800
</TABLE>
NOTE 2--SIGNIFICANT ACCOUNTING POLICIES:
(A) PORTFOLIO VALUATION: Each series' investments in securities are valued
at the last sales price on the securities exchange on which such securities are
primarily traded or at the last sales price on the national securities market.
Securities not listed on an exchange or the national securities market, or
securities for which there were no transactions, are valued at the average of
the most recent bid and asked prices, except for open short positions, where the
asked price is used for valuation purposes. Bid price is used when no asked
price is available. Short-term investments are carried at amortized cost, which
approximates value. Investments denominated in foreign currencies are translated
to U.S. dollars at the prevailing rates of exchange.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions
are recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis.
(C) EXPENSES: Expenses directly attributable to each series are charged to
that series' operations; expenses which are applicable to all series are
allocated among them.
(D) DIVIDENDS TO SHAREHOLDERS: Dividends payable to shareholders are
recorded by each series on the ex-dividend date. Dividends from investment
income-net and dividends from net realized capital gain, with respect to each
series, are normally declared and paid annually, but each series may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. To the extent that a net realized
capital gain of a series can be offset by a capital loss carryover, if any, of
that series, such gain will not be distributed.
(E) FEDERAL INCOME TAXES: It is the policy of the Fund to qualify as a
regulated investment company, if such qualification is in the best interests of
its shareholders, by complying with the provisions available to certain
investment companies, as defined in applicable sections of the Internal Revenue
Code, and to make distributions of taxable income sufficient to relieve it from
all, or substantially all, Federal income taxes. For Federal income tax
purposes, each series is treated as a single entity for the purpose of
determining such qualification.
<PAGE>
- - --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC.
(F) OTHER: Organization expenses paid by the Fund are included in prepaid
expenses and are being amortized to operations from the date operations
commenced over the period during which it is expected that a benefit will be
realized, not to exceed five years. At April 30, 1994, the unamortized balance
of such expenses for each of the respective series amounted to the following:
<TABLE>
<S> <C> <S> <C>
Large Company Growth Portfolio $27,112 Small Company Growth Portfolio $27,484
Large Company Value Portfolio 27,202 Small Company Value Portfolio 26,879
</TABLE>
In the event that any of the Initial Shares, with respect to all series,
are redeemed during the amortization period, the redemption proceeds will be
reduced by any unamortized organization expenses for that series in the same
proportion as the number of such shares being redeemed bears to the number of
such shares outstanding of that series at the time of such redemption.
NOTE 3--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager, the
management fee is computed at the annual rate of .75 of 1% of the average daily
value of each series' net assets and is payable monthly. The Agreement provides
that if in any full fiscal year the aggregate expenses of any series, exclusive
of taxes, brokerage, interest on borrowings (which, in the view of Stroock &
Stroock & Lavan, counsel to the Series, also contemplates dividends accrued on
securities sold short) and extraordinary expenses, exceed the expense limitation
of any state having jurisdiction over the Series, that series may deduct from
payments to be made to the Manager, or the Manager will bear the amount of such
excess to the extent required by state law. The most stringent state expense
limitation applicable to the Series presently requires reimbursement of expenses
in any full fiscal year that such expenses of a series exceed 2 1/2% of the
first $30 million, 2% of the next $70 million, and 1 1/2% of the excess over
$100 million of the average value of that series' net assets in accordance with
California "blue sky" regulations. However, the Manager has undertaken from
December 29, 1993 through June 30, 1994, or until such time as the net assets of
a series exceed $25 million, regardless of whether they remain at that level, to
assume all expenses of the Series (excluding certain expenses as described
above).
The expense reimbursements, pursuant to the undertaking amounted to the
following for the period ended April 30, 1994:
<TABLE>
<S> <C> <S> <C>
Large Company Growth Portfolio $41,649 Small Company Growth Portfolio $41,066
Large Company Value Portfolio 43,683 Small Company Value Portfolio 44,942
</TABLE>
The undertakings may be modified by the Manager from time to time, provided
that the resulting expense reimbursement would not be less than the amount
required pursuant to the agreements.
(B) Under the Distribution Plan ("the Plan") adopted pursuant to Rule 12b-1
under the Act, each Series pays the Distributor, at an annual rate of .50 of 1%
of the value of each Series' average daily net assets, for costs and expenses in
connection with advertising, marketing and distributing the Series' shares and
for servicing shareholder accounts. The Distributor may make payments to one or
more Service Agents (a securities dealer, financial institution, or other
industry professional) based on the value of the Series' shares owned by clients
of the Service Agents. The plan also separately provides for the Fund to bear
the costs of preparing, printing and distributing certain of the Fund's
prospectuses and statements of additional information and costs associated with
implementing and operating the Plan, not to exceed the greater of $100,000 or
.005 of 1% of each Series' average daily net assets for any full fiscal year.
During the period ended April 30, 1994, the following was charged to each series
pursuant to the Plan:
<TABLE>
<S> <C> <S> <C>
Large Company Growth Portfolio $8,446 Small Company Growth Portfolio $8,437
Large Company Value Portfolio 8,625 Small Company Value Portfolio 8,842
</TABLE>
<PAGE>
- - --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC.
(C) Under the Shareholder Services Plan, each series pays the Distributor
at an annual rate of .25 of 1% of the value of a series' average daily net
assets for servicing shareholder accounts. The services provided may include
personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the Series and providing reports and other
information, and services related to the maintenance of shareholder accounts.
The Distributor may make payments to Service Agents in respect of these
services. The Distributor determines the amount to be paid to Service Agents.
The following summarizes the aggregate amount charged by the Distributor,
pursuant to the Shareholder Services Plan during the period ended April 30,
1994:
<TABLE>
<S> <C> <S> <C>
Large Company Growth Portfolio $4,223 Small Company Growth Portfolio $4,218
Large Company Value Portfolio 4,312 Small Company Value Portfolio 4,421
</TABLE>
(D) Certain officers and directors of the Fund are "affiliated persons," as
defined in the Act, of the Manager and/or the Distributor. Each director who is
not an "affiliated person" receives from the Fund an annual fee of $3,000 and an
attendance fee of $250 per meeting.
(E) On December 5, 1993, the Manager entered into an Agreement and Plan of
Merger (the "Merger Agreement") providing for the merger of the Manager with a
subsidiary of Mellon Bank Corporation ("Mellon").
Following the merger, it is planned that the Manager will be a direct
subsidiary of Mellon Bank, N.A. Closing of this merger is subject to a number of
contingencies, including receipt of certain regulatory approvals and approvals
of the stockholders of the Manager and of Mellon. The merger is expected to
occur in mid-1994, but could occur later.
As a result of regulatory requirements and the terms of the Merger
Agreement, the Manager will seek various approvals from the Fund's board and
shareholders before completion of the merger. Shareholder approval will be
solicited by a proxy statement.
NOTE 4--SECURITIES TRANSACTIONS:
(A) The following summarizes the aggregate amount of purchases and sales of
investment securities and securities sold short, excluding short-term
securities, for the period ended April 30, 1994:
LONG TRANSACTIONS:
<TABLE>
<CAPTION>
PURCHASES SALES
---------- ----------
<S> <C> <C>
Large Company Growth Portfolio...................................... $4,802,669 $ 133,421
Large Company Value Portfolio....................................... 5,568,316 458,858
Small Company Growth Portfolio...................................... 4,748,189 538,100
Small Company Value Portfolio....................................... 5,781,221 1,133,957
</TABLE>
SHORT SALE TRANSACTIONS;
<TABLE>
<CAPTION>
PURCHASES SALES
---------- ----------
<S> <C> <C>
Small Company Value Portfolio....................................... $ 122,130 $ 346,156
</TABLE>
The Series is engaged in short-selling which obligates the Series to
replace the security borrowed by purchasing the security at current market
value. The Series would incur a loss if the price of the security increases
between the date of the short sale and the date on which the Series replaces the
borrowed security. The Series would realize a gain if the price of the security
declines between those dates. Until the Series replaces the borrowed security,
the Series will maintain daily, a segregated account with a broker and
custodian, of cash and/or U.S. Government securities sufficient to cover its
short position. Securities sold short at April 30, 1994 and their related market
values and proceeds are set forth in the Statement of Securities Sold Short.
<PAGE>
- - --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC.
(B) The following summarizes the gross and accumulated net unrealized
appreciation (depreciation) on investments for each series at April 30, 1994:
<TABLE>
<CAPTION>
GROSS GROSS
APPRECIATION (DEPRECIATION) NET
------------ -------------- ---------
<S> <C> <C> <C>
Large Company Growth Portfolio...................... $135,905 $ (347,332) $(211,427)
Large Company Value Portfolio....................... 201,480 (239,842) (38,362)
Small Company Growth Portfolio...................... 211,588 (424,307) (212,719)
Small Company Value Portfolio....................... 233,344 (392,460) (159,116)
</TABLE>
At April 30, 1994, the cost of investments of each series for Federal
income tax purposes was substantially the same as the cost for financial
reporting purposes. The cost of investments for each series for financial
reporting purposes as of April 30, 1994 was as follows:
<TABLE>
<S> <C> <S> <C>
Large Company Growth Portfolio $5,068,271 Small Company Growth Portfolio $4,926,596
Large Company Value Portfolio 5,092,000 Small Company Value Portfolio 5,207,443
</TABLE>
<PAGE>
[LOGO]
DREYFUS FOCUS FUNDS, INC.
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
DISTRIBUTOR
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
110 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained in the Prospectus,
which must precede or accompany this report.
Printed in U.S.A. 251/252SA944
