<PAGE>
Dreyfus
Focus Funds, Inc.
Semi-Annual
Report
April 30, 1995
<LION>
<PAGE>
Letter to Shareholders
Dear Shareholder:
Dreyfus Focus Funds completed its latest semi-annual fiscal period on April
30, 1995. During this time span, the Federal Reserve Board on February 1,
1995, took the latest of seven steps to raise interest rates in an effort to
curb inflation. The Fed's strategy appears to have been effective as shown by
a slowdown in economic activity that began around the first of the calendar
year. As a result, inflation has been quiescent, even though the economy
continues to expand, but at a more moderate pace. Corporate profits, at least
through the first quarter of the year, were rewarding, and employment has held
up well. Toward the end of the six months, long-term interest rates started to
decline, without any action on rates by the Federal Reserve.
These changes in the dynamics of the marketplace have had their effect on
stocks of growth companies and value-oriented companies, with both large
capitalization and small. The experience of the four portfolios comprising
Dreyfus Focus Funds reflects this environment.
THE SEARCH FOR VALUE
Dreyfus Focus Funds' two value portfolios seek unusual value in publicly
traded companies. One specializes in large capitalization companies, the other
in small caps. In both cases, we analyze companies on a price/earnings or
price/book basis, backed by interviews and research in the field. We search
for companies where value might be enhanced by restructurings, changes in
management, acquisitions and shifts in the marketplace for their products. We
continue to emphasize good value, good business fundamentals and positive
business momentum.
DREYFUS LARGE COMPANY VALUE
Dreyfus Large Company Value achieved a total return of 10.36% for the six
months ended April 30, 1995.* This was comparable to the total return of
10.46% for the Standard & Poor's 500 Composite Stock Price Index for the same
period.**
During the six months, the major tide of investment money went into the
big, blue-chip stocks as represented by the Dow Jones Industrial Average. Such
well-known international brand name issues as Coca-Cola, Pepsi Cola and
Gillette, which are not the kind of stock this Portfolio buys, were the chief
beneficiaries. Nonetheless, the Portfolio produced very positive returns.
Financial services stocks were among the major contributors to the
Portfolio's gains. These included Dean Witter Discover & Co., Chase Manhattan
and American Express.
The Fund also was aided by having more than the S & P weighting in tobacco
stocks, notably Philip Morris Cos. and Loews. The latter stock also benefitted
from being newly included in the Standard & Poor's Composite Index of 500
stocks, which always creates demand for an issue when the listing takes place.
Our holdings in Energy stocks, which were about even in weightings with the
Index, also did well.
DREYFUS SMALL COMPANY VALUE
The current tendency of large investors, both foreign and domestic, to seek
out larger companies, particularly blue-chip names, reduced the demand for the
kinds of stocks this Portfolio owns. Nonetheless, the Portfolio earned a total
return of 5.79% for the six months ended April 30, 1995.* This compares with
5.36% for the Fund's benchmark index, the Russell 2000, which measures
performance of small capitalization companies.***
<PAGE>
During the reporting period, corporate merger activity boosted the price of
several of our holdings. The companies involved included Weatherford
International, Fidelity New York, Broadcasting Partners, Cl.A, Multimedia and
Tuboscope Vetco International.
Even though many of the high-technology stocks that have been so
sought after recently do not fit our value criteria, we see many opportunities
for rewarding investments at present. In fact, the Portfolio currently seeks
to remain fully invested, insofar as possible. We have such confidence in the
outlook for value stocks that we have even bought a modest amount on margin.
Looking to the future, we see many new opportunities opening around the
world, even for small cap companies. Now that a global market shake-out has
taken place as a result of the Mexican peso crisis and the contractions that
befell many emerging markets, we are starting to look very seriously at
opportunities in those areas.
We also are impressed by the profits garnered abroad by U.S.-based
international companies. Consequently, we are searching for worthy investments
in small cap companies that do business internationally and meet our value
criteria.
LOOKING FOR GROWTH
Dreyfus Focus Funds' two growth portfolios seek to invest in companies that
exhibit above-average earnings or sales growth potential. Our approach is
long-range, with emphasis on trying to find companies with emerging patterns of
growth that will pay dividends some months or years down the road. This
involves two different analytic approaches. First, we subject candidate
companies to quantitative analysis, using our large data bank resources. Next,
our staff of analysts applies qualitative analysis to identify new growth
companies with promise for the future. The qualities we look for include
prospects for earnings growth, but also financial, marketing and managerial
skills suited to the contemporary business environment. Unit sales growth,
market niches and unusual proprietary products can also be important parts of
the picture.
DREYFUS LARGE COMPANY GROWTH
In the six-month period ended April 30, 1995, the Large Company Growth
Portfolio of the Focus Funds was more conservatively positioned than our
benchmark index. Consequently, while such stock groups as Technology, Health
Care and Consumer Nondurables enjoyed price increases, the strong performance
of the Portfolio in these categories was offset by underperformance in other
areas. For the half-year fiscal period, the Portfolio showed a total return of
1.88%.* For the same period, the Standard & Poor's 500 Composite Stock Price
Index had a total return of 10.46%.**
Another factor which negatively affected the Portfolio was the holdings in
cable and related telecommunications stocks such as Comcast and Nextel. In
addition, the Portfolio owned American Depository Receipts of offshore utility
stocks in New Zealand, Brazil, Mexico, Spain and Hong Kong. Their value was
affected by the general disenchantment with emerging economies which became a
major market factor last year.
We did have good gains in such holdings as Microsoft, in Motorola and in
Ericsson (LM) Telephone, Cl.B, A.D.R. We also achieved gains with Insurance
stocks and certain Consumer Nondurables.
DREYFUS SMALL COMPANY GROWTH
The performance of the Small Company Growth Portfolio was somewhat better
than the Large Company Growth Portfolio compared with its benchmark. For the
six months, this Portfolio produced a total return of 2.94%, compared with
5.36% for the Russell 2000 Index of small company stocks.***
<PAGE>
In the Small Company Growth category, as with the Large Company Growth
Portfolio, we were not as heavily represented in the stocks that did best for
the period as their weightings in the major indexes, i.e., Technology, Health
Care and Consumer Nondurables. This proved a penalty on the Portfolio's
performance.
However, we did have some very successful investments that benefitted the
Portfolio. For example, Altera, the semiconductor firm, whose stock went from
32 to 83, represented about 4% of the Portfolio. We also held Tellabs, which
we sold at a good profit, and have also done well with Andrew which had a
sustained rise during the six-month period.
For the coming months, we expect more economic expansion, though still at a
restrained pace. Meanwhile, debates in Washington over tax and spending policy
will cause some uncertainty for the stock market. This will call for even more
selectivity in choosing investments as we go forward.
Sincerely,
Ernest G. Wiggins
Portfolio Manager
May 24, 1995
New York, N.Y.
*Total return represents the change during the period in a hypothetical
account with dividends reinvested.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. The
Standard & Poor's 500 Composite Stock Price Index is a widely accepted
unmanaged index of stock market performance.
***SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- Reflects the reinvestment of
dividends. The Russell 2000<register> Index is an unmanaged index
and is composed of the 2,000 smallest companies in the Russell
3000<register> Index.
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Focus Funds, Inc., Large Company Growth Portfolio
- ------------------------------------------------------------------------
Statement of Investments April 30, 1995 (Unaudited)
COMMON STOCKS--91.9% SHARES VALUE
- ------------------------------------------------------------------------------ ---------- ----------
<S> <C> <C> <C>
Consumer Non-Durables--9.2% Archer-Daniels-Midland........................ 5,040 $ 91,980
Coca-Cola..................................... 2,200 127,875
Colgate-Palmolive............................. 1,000 70,250
General Mills................................. 1,000 61,000
Gillette...................................... 1,000 82,000
International Flavors & Fragrances............ 1,200 61,650
----------
494,755
----------
Consumer Services--5.8% Bell Cablemedia, A.D.R........................(a) 3,200 53,200
Comcast, Cl. A................................(a) 2,900 45,131
Comcast, Cl. A (Non-voting)...................(a) 1,450 22,838
LIN Broadcasting..............................(a) 700 87,325
MFS Communications............................(a) 2,000 71,500
NEXTEL Communications, Cl. A..................(a) 2,100 33,862
----------
313,856
----------
Energy--10.8% Anadarko Petroleum............................ 1,600 65,800
Baker Hughes.................................. 4,700 105,750
British Petroleum, A.D.R...................... 1,000 86,125
Louisiana Land & Exploration.................. 1,900 69,588
Mobil......................................... 900 85,387
Schlumberger.................................. 2,700 169,763
----------
582,413
----------
Finance--9.7% American International Group.................. 1,400 149,450
General Re.................................... 800 101,900
MGIC Investment............................... 3,100 131,363
Progressive Corp, Ohio........................ 1,500 56,625
Transatlantic Holdings........................ 1,300 82,550
----------
521,888
----------
Health Care--13.8% ALZA..........................................(a) 3,300 64,350
Abbott Laboratories........................... 3,000 118,125
Amgen.........................................(a) 1,200 87,225
Chiron........................................(a) 617 34,089
Genentech.....................................(a) 1,200 60,450
Genzyme-General Division......................(a) 2,400 102,600
Roche Holdings, A.D.R......................... 1,900 114,237
U.S. HealthCare............................... 1,350 36,113
U.S. Surgical................................. 3,500 77,875
United Healthcare............................. 1,400 50,750
----------
745,814
----------
Non-Energy Minerals--1.4% Inco.......................................... 3,000 77,625
----------
Producer Manufacturing--4.7% Deere & Co.................................... 1,200 98,400
General Electric.............................. 1,800 100,800
Trinity Industries............................ 1,400 54,075
----------
253,275
----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Focus Funds, Inc., Large Company Growth Portfolio (continued)
- -------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1995 (Unaudited)
COMMON STOCKS (CONTINUED) SHARES VALUE
- ------------------------------------------------------------------------------ ---------- ----------
<S> <C> <C> <C>
Technology--19.7% Apple Computer................................ 2,200 $ 84,150
Compaq Computer...............................(a) 2,400 91,200
Ericsson (LM) Telephone, Cl. B, A.D.R......... 2,400 160,950
General Instrument............................(a) 4,800 163,800
Hewlett-Packard............................... 2,200 145,475
Microsoft.....................................(a) 2,200 179,850
Motorola...................................... 2,800 159,250
Scientific-Atlanta............................ 3,600 81,900
----------
1,066,575
----------
Transportation--3.6% AMR...........................................(a) 1,400 94,325
Delta Air Lines............................... 1,500 98,062
----------
192,387
----------
Utilities--13.2% Hong Kong Telecom, A.D.R...................... 4,200 81,900
MCI Communications............................ 6,200 134,850
Telecom Corp New Zealand, A.D.S............... 1,800 120,150
Telecomunicacoes Brasileiras S.A., A.D.R...... 2,300 82,225
Telefonica de Espana, A.D.S................... 2,000 73,500
Telefonos de Mexico, Cl. L, A.D.R............. 1,500 45,375
Telephone & Data Systems...................... 1,700 63,325
Vodafone Group, A.D.R......................... 3,600 114,750
----------
716,075
----------
TOTAL COMMON STOCKS
(cost $4,520,250)........................... $4,964,663
----------
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM INVESTMENTS--5.9% AMOUNT
- ------------------------------------------------------------------------------ ----------
<S> <C> <C> <C>
U.S. Treasury Bill; 5.59%, 5/4/95
(cost $317,852)............................ $ 318,000 $ 317,752
----------
----------
TOTAL INVESTMENTS (cost $4,838,102)........................................... 97.8% $5,282,415
------- ----------
------- ----------
CASH AND RECEIVABLES (NET).................................................... 2.2% $ 119,819
------- ----------
------- ----------
NET ASSETS.................................................................... 100.0% $5,402,234
------- ----------
------- ----------
</TABLE>
NOTE TO STATEMENT OF INVESTMENTS;
- -------------------------------------------------------------------------------
(a) Non-income producing.
See independent accountants' review report and notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Focus Funds, Inc., Large Company Value Portfolio
- ----------------------------------------------------------------------------
Statement of Investments April 30, 1995 (Unaudited)
COMMON STOCKS--94.0% SHARES VALUE
- ------------------------------------------------------------------------------ ---------- ----------
<S> <C> <C> <C>
Consumer Durables--3.3% Black & Decker................................ 1,700 $ 51,000
Fleetwood Enterprises......................... 200 4,600
Ford Motor.................................... 5,000 135,000
----------
190,600
----------
Consumer Non-Durables--8.2% American Brands............................... 700 28,350
Archer-Daniels-Midland........................ 3,095 56,484
Dial.......................................... 2,000 48,250
Liz Claiborne................................. 2,200 39,600
Philip Morris Cos............................. 2,400 162,600
RJR Nabisco Holdings.......................... 3,040 83,220
Seagram....................................... 1,800 48,825
----------
467,329
----------
Consumer Services--.8% King World Productions........................(a) 1,100 44,275
----------
Energy--7.2% Amerada Hess.................................. 500 25,313
Exxon......................................... 1,700 118,363
Horsham....................................... 2,200 29,975
MAPCO......................................... 500 28,437
Mobil......................................... 500 47,437
Oryx Energy...................................(a) 1,700 23,375
Repsol, S.A., A.D.R........................... 1,100 35,200
Royal Dutch Petroleum......................... 500 62,000
Tosco......................................... 1,300 44,525
----------
414,625
----------
Finance--16.7% ACE........................................... 1,100 29,150
Aetna Life & Casualty......................... 500 28,500
American Express.............................. 3,400 118,150
American International Group.................. 600 64,050
Bank of Boston................................ 2,400 80,400
BankAmerica................................... 1,118 55,341
Chase Manhattan............................... 2,000 87,500
Crestar Financial............................. 800 36,000
Dean Witter Discover & Co..................... 1,400 59,325
First Chicago................................. 1,800 99,450
First Tennessee National...................... 600 25,500
Fleet Financial Group......................... 2,500 81,875
Morgan (J.P.) & Co............................ 700 45,938
Shawmut National.............................. 1,000 26,500
St. Paul Cos.................................. 1,700 81,812
SunAmerica.................................... 800 39,200
----------
958,691
----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Focus Funds, Inc., Large Company Value Portfolio (continued)
- -----------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1995 (Unaudited)
COMMON STOCKS (CONTINUED) SHARES VALUE
- ------------------------------------------------------------------------------ ---------- ----------
<S> <C> <C> <C>
Health Care--6.1% Astra AB, A.D.R., Cl. A.......................(a) 1,800 $ 52,763
Columbia/HCA Healthcare....................... 1,408 59,136
Lilly (Eli) & Co.............................. 1,100 82,225
Schering-Plough............................... 700 52,762
National Medical Enterprises..................(a) 3,900 66,300
Upjohn........................................ 1,000 36,250
----------
349,436
----------
Process Industries--5.5% Boise Cascade................................. 800 26,200
Bowater....................................... 900 34,425
Georgia-Pacific............................... 300 23,813
Grace (W.R.) & Co............................. 1,400 75,075
International Paper........................... 300 23,100
James River................................... 1,200 32,550
Praxair....................................... 1,200 28,500
Rayonier...................................... 850 28,156
Sherwin-Williams.............................. 1,200 42,750
----------
314,569
----------
Producer Manufacturing--12.9% Canadian Pacific.............................. 4,700 71,675
Champion International........................ 1,400 61,600
General Electric.............................. 1,300 72,800
ITT........................................... 800 83,600
Litton Industries.............................(a) 700 24,238
Loews......................................... 1,100 112,062
Louisiana Pacific............................. 1,400 35,700
Masco......................................... 1,000 25,500
Philips Electronics, N.V...................... 4,300 165,550
TRW........................................... 400 29,750
Varity........................................ 1,300 54,925
----------
737,400
----------
Retail Trade--12.8% American Stores................................ 1,500 38,438
Dillard Department Stores, Cl. A............... 2,600 67,275
Kroger.........................................(a) 2,200 56,100
Limited........................................ 5,700 121,837
May Department Stores.......................... 1,900 68,875
Mercantile Stores.............................. 700 30,975
Penney (J.C.).................................. 1,500 65,625
Rite Aid....................................... 2,200 51,150
Sears, Roebuck & Co............................ 1,000 54,250
Tandy.......................................... 2,400 118,800
Toys R Us......................................(a) 2,300 58,075
----------
731,400
----------
Technology--14.2% AT&T........................................... 1,000 50,750
Advanced Micro Devices.........................(a) 800 28,800
Apple Computer................................. 1,300 49,725
Digital Equipment..............................(a) 2,300 106,088
International Business Machines................ 2,000 189,500
Intel.......................................... 400 40,950
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Focus Funds, Inc., Large Company Value Portfolio (continued)
- -----------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1995 (Unaudited)
COMMON STOCKS (CONTINUED) SHARES VALUE
- ------------------------------------------------------------------------------ ---------- ----------
<S> <C> <C> <C>
Technology (continued) Lockheed Martin............................... 1,700 $ 98,175
MCI Communications............................ 4,000 87,000
Rockwell International........................ 1,700 74,162
Sun Microsystems..............................(a) 1,400 55,825
UniCom........................................ 1,200 31,500
----------
812,475
----------
Transportation--1.5% Illinois Central, Ser. A...................... 700 24,587
Pittston Services............................. 1,200 28,500
Southern Pacific Rail.........................(a) 2,000 34,750
----------
87,837
----------
Utilities--4.8% CMS Energy.................................... 2,400 56,100
GTE........................................... 1,800 61,425
NYNEX......................................... 1,100 44,963
Pinnacle West Capital......................... 2,500 53,750
TransCanada Pipelines......................... 2,500 33,437
Western Resources............................. 800 24,300
----------
273,975
----------
TOTAL COMMON STOCKS
(cost $4,904,007)........................... $5,382,612
----------
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM INVESTMENTS--4.5% AMOUNT
- ------------------------------------------------------------------------------ ----------
<S> <C> <C> <C>
U.S. Treasury Bills: 5.64%, 6/1/95................................. $ 25,000 $ 24,870
5.57%, 7/20/95................................ 235,000 231,971
----------
TOTAL SHORT-TERM INVESTMENTS
(cost $256,967)............................. $ 256,841
----------
----------
TOTAL INVESTMENTS (cost $5,160,974)........................................... 98.5% $5,639,453
------- ----------
------- ----------
CASH AND RECEIVABLES (NET).................................................... 1.5% $ 84,520
------- ----------
------- ----------
NET ASSETS.................................................................... 100.0% $5,723,973
------- ----------
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</TABLE>
NOTE TO STATEMENT OF INVESTMENTS;
- -------------------------------------------------------------------------------
(a) Non-income producing.
See independent accountants' review report and notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Focus Funds, Inc., Small Company Growth Portfolio
- ----------------------------------------------------------------------------
Statement of Investments April 30, 1995 (Unaudited)
COMMON STOCKS--84.3% SHARES VALUE
- ------------------------------------------------------------------------------ ---------- ----------
<S> <C> <C> <C>
Consumer Durables--1.3% Oakwood Homes................................ 2,800 $ 70,000
----------
Consumer Services--10.3% Associated Group, Cl. A...................... 800 13,800
Associated Group, Cl. B...................... 800 13,800
C-TEC, Cl. B.................................(a) 2,400 52,800
Catalina Marketing...........................(a) 1,500 70,500
Cellular Communications, Cl. A...............(a) 2,800 130,550
Grupo Iusacell, S.A. de C.V., Cl. L, A.D.R...(a) 2,500 36,250
People's Choice TV...........................(a) 2,700 76,950
Rogers Cantel Mobile
Communications, Cl. B......................(a) 2,800 66,938
United International Holdings, Cl. A.........(a) 5,200 74,100
----------
535,688
----------
Energy--19.6% Brown (Tom)..................................(a) 6,700 94,637
Global Marine................................(a) 32,300 141,313
Helmerich & Payne............................ 2,800 82,950
Hornbeck Offshore Services...................(a) 4,900 67,375
Noble Drilling...............................(a) 8,500 56,312
Parker Drilling..............................(a) 15,100 71,725
Rowan........................................(a) 15,900 109,313
Sonat Offshore Drilling...................... 5,000 135,000
Unit.........................................(a) 12,200 42,700
Varco International..........................(a) 11,900 99,662
Weatherford International....................(a) 10,500 115,500
----------
1,016,487
----------
Finance--7.8% NAC Re....................................... 2,500 82,500
PXRE......................................... 3,000 72,750
Trenwick Group............................... 1,800 80,156
United Companies Financial................... 2,200 83,875
Vesta Insurance Group........................ 2,500 83,438
----------
402,719
----------
Health Care--11.3% BioChem Pharma...............................(a) 5,000 80,000
COR Therapeutics.............................(a) 6,500 107,250
Centocor.....................................(a) 5,500 77,688
Ethical Holdings, A.D.R......................(a) 7,500 45,937
GMIS.........................................(a) 4,400 95,700
Immune Response..............................(a) 8,000 24,000
Liposome Technology..........................(a) 6,800 61,200
Mariner Health Group.........................(a) 4,000 58,500
Noven Pharmaceuticals........................(a) 4,300 36,550
----------
586,825
----------
Non-Energy Minerals--1.4% Cleveland-Cliffs............................. 2,000 73,250
----------
Process Industries--2.4% Albany International, Cl. A.................. 3,700 80,937
Seda Speciality Packaging....................(a) 4,000 42,500
----------
123,437
----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Focus Funds, Inc., Small Company Growth Portfolio (continued)
- ----------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1995 (Unaudited)
COMMON STOCKS (CONTINUED) SHARES VALUE
- ------------------------------------------------------------------------------ ---------- ----------
<S> <C> <C> <C>
Producer Manufacturing--4.0% Lam Research.................................(a) 2,000 $ 101,000
Novellus Systems.............................(a) 1,800 109,350
----------
210,350
----------
Technology--22.5% Altera.......................................(a) 2,400 194,100
Andrew.......................................(a) 3,600 178,200
Aspen Technology.............................(a) 4,500 93,375
Auspex Systems...............................(a) 8,600 89,225
Avid Technology..............................(a) 2,800 112,875
Chipcom......................................(a) 3,900 127,725
Keane........................................(a) 3,300 83,325
Network Equipment Technologies...............(a) 3,400 74,375
Tracor.......................................(a) 5,000 65,000
Zilog........................................(a) 4,200 147,525
----------
1,165,725
----------
Transportation--3.7% Comair Holdings............................... 3,200 80,600
SkyWest....................................... 3,000 53,250
Werner Enterprises............................ 2,700 57,375
----------
191,225
----------
TOTAL COMMON STOCKS
(cost $4,184,380)........................... $4,375,706
----------
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM INVESTMENTS--13.5% AMOUNT
- ------------------------------------------------------------------------------- ----------
<S> <C> <C> <C>
U.S. Treasury Bills: 5.59%, 5/4/95................................. $ 551,000 $ 550,570
5.69%, 6/1/95................................. 149,000 148,227
----------
TOTAL SHORT-TERM INVESTMENTS
(cost $699,013)............................. $ 698,797
----------
----------
TOTAL INVESTMENTS (cost $4,883,393)............................................ 97.8% $5,074,503
------- ----------
------- ----------
CASH AND RECEIVABLES (NET)..................................................... 2.2% $ 111,910
------- ----------
------- ----------
NET ASSETS..................................................................... 100.0% $5,186,413
------- ----------
------- ----------
</TABLE>
NOTE TO STATEMENT OF INVESTMENTS;
- --------------------------------------------------------------------------------
(a) Non-income producing.
See independent accountants' review report and notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Focus Funds, Inc., Small Company Value Portfolio
- -----------------------------------------------------------------------------
Statement of Investments April 30, 1995 (Unaudited)
COMMON STOCKS--95.7% SHARES VALUE
- ------------------------------------------------------------------------------ ---------- ----------
<S> <C> <C> <C>
Consumer Durables--6.3% Bally Gaming International...................(a) 4,900 $ 47,775
Continental Homes Holding.................... 2,100 24,150
Fedders, Cl. A (non-voting).................. 4,950 28,462
Fieldcrest Cannon............................(a) 800 17,700
HMI Industries............................... 1,200 19,500
Hi-Lo Automotive.............................(a) 4,600 38,525
Lifetime Hoan................................(a) 1,400 16,975
Scotts, Cl. A................................(a) 4,600 92,000
U.S. Home....................................(a) 2,200 40,150
Vista Resources..............................(a) 1,200 24,300
----------
349,537
----------
Consumer Non-Durables--5.7% Alberto-Culver, Cl. A........................ 4,300 118,250
Duplex Products..............................(a) 4,000 33,500
Graphic Industries........................... 3,600 35,550
INTERCO......................................(a) 4,000 25,500
Jones Apparel Group..........................(a) 900 23,625
Michael Foods................................ 1,800 22,613
Phillips-Van Heusen.......................... 2,200 33,825
Tultex....................................... 4,700 24,087
----------
316,950
----------
Consumer Services--9.9% Broadcasting Partners, Cl. A.................(a) 4,000 81,000
Chris-Craft Industries.......................(a) 1,997 67,399
Daka International...........................(a) 3,000 51,750
Longhorn Steaks..............................(a) 2,700 37,125
MDC, Cl. A...................................(a) 18,500 34,070
Multimedia...................................(a) 2,800 105,350
Ryan's Family Steak House....................(a) 6,100 42,700
SFX Broadcasting, Cl. A......................(a) 3,900 89,700
Team Rental Group, Cl. A..................... 4,300 34,937
----------
544,031
----------
Energy--8.3% Alexander Energy.............................(a) 7,000 33,250
DI Industries................................(a) 12,000 9,750
Diamond Shamrock............................. 800 21,500
McDermott (J. Ray), S.A...................... 2,400 66,000
NGC.......................................... 2,232 21,483
Noble Drilling...............................(a) 4,800 31,800
Plains Petroleum............................. 2,500 58,438
Santa Fe Energy Resources....................(a) 6,000 56,250
Tesoro Petroleum.............................(a) 2,500 24,687
Total Petroleum, N.A......................... 4,800 60,000
Tuboscope Vetco International................(a) 6,600 46,200
Weatherford International....................(a) 2,400 26,400
----------
455,758
----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Focus Funds, Inc., Small Company Value Portfolio (continued)
- -----------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1995 (Unaudited)
COMMON STOCKS (CONTINUED) SHARES VALUE
- ------------------------------------------------------------------------------ ---------- ----------
<S> <C> <C> <C>
Finance--14.4% Acceptance Insurance Cos.....................(a) 8,000 $ 122,000
Advantage Bancorp............................ 700 20,125
Albank Financial............................. 1,600 41,400
Allmerica Property & Casualty Cos............ 800 15,200
Astoria Financial............................(a) 1,400 47,600
Bay Ridge Bancorp............................(a) 1,800 32,513
Citizens..................................... 1,000 17,000
City National................................ 2,900 29,363
Downey Financial............................. 1,900 34,200
First Palm Beach Bancorp..................... 1,300 23,400
Fleet Financial Group........................ 1,713 56,101
Fleet Financial Group (Warrants).............(a) 224 1,022
Highwoods Properties......................... 1,300 28,600
Horace Mann Educators........................ 1,700 35,063
Long Island Bancorp.......................... 2,300 42,550
Meridian Insurance Group..................... 1,200 14,100
MLF Bancorp.................................. 1,700 29,537
MMI Cos...................................... 500 9,062
Norwalk Savings Society...................... 2,000 30,500
PXRE......................................... 800 19,400
Primark......................................(a) 1,000 16,250
Security-Connecticut......................... 1,500 37,500
Standard Federal Bank........................ 2,000 56,250
Summit Properties............................ 900 14,962
Transnational Re, Cl. A......................(a) 1,200 24,300
----------
797,998
----------
Health Care--5.4% Advanced Technology Laboratories.............(a) 2,300 36,225
Kinetic Concepts............................. 5,000 37,500
Nichols Research.............................(a) 1,800 26,100
OrNda Healthcorp.............................(a) 3,494 61,145
PSICOR.......................................(a) 1,300 13,975
Safeguard Health Enterprises.................(a) 2,900 27,550
United Wisconsin Services.................... 1,200 24,300
Wellpoint Health Networks, Cl. A.............(a) 1,900 52,962
Windmere..................................... 2,600 19,825
----------
299,582
----------
Industrial Services--2.3% Groundwater Technology.......................(a) 1,300 16,575
International Recovery....................... 3,000 55,125
Republic Environmental Systems............... 1,060 2,981
Republic Waste Industries....................(a) 5,300 17,888
TRC Cos......................................(a) 4,200 32,025
----------
124,594
----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Focus Funds, Inc., Small Company Value Portfolio (continued)
- -----------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1995 (Unaudited)
COMMON STOCKS (CONTINUED) SHARES VALUE
- ------------------------------------------------------------------------------ ---------- ----------
<S> <C> <C> <C>
Non-Energy Minerals--3.9% Chaparral Steel.............................. 2,000 $ 19,000
Handy & Harman............................... 3,100 46,500
INDRESCO.....................................(a) 4,000 56,000
Miramar Mining...............................(a) 4,000 20,626
Schnitzer Steel Industries, Cl. A............ 1,600 34,800
Texas Industries............................. 1,000 37,625
----------
214,551
----------
Process Industries--9.4% Calgon Carbon................................ 5,000 61,250
CalMat....................................... 1,300 25,675
Dexter....................................... 2,000 45,750
Ferro........................................ 1,500 42,563
Fuller (H.B.)................................ 1,000 37,750
Interface, Cl. A............................. 3,700 51,337
Measurex..................................... 1,600 40,000
NCH.......................................... 500 32,000
Oneita Industries............................(a) 4,000 47,500
Paragon Trade Brands.........................(a) 3,100 48,050
Sealright.................................... 1,800 31,500
Slocan Forest Products....................... 2,108 18,052
Stepan....................................... 2,000 39,250
----------
520,677
----------
Producer Manufacturing--4.4% Defiance..................................... 2,400 15,600
Harnischfeger Industries..................... 1,000 29,500
Insilco......................................(a) 2,200 58,850
MagneTek.....................................(a) 2,700 40,163
Park-Ohio Industries.........................(a) 1,569 17,847
Triarc Cos., Cl. A...........................(a) 3,000 45,000
Zero......................................... 2,700 37,125
----------
244,085
----------
Retail Trade--12.9% Bon-Ton Stores...............................(a) 5,800 60,175
Carr-Gottstein Foods.........................(a) 7,000 41,125
Chart House Enterprises......................(a) 7,000 63,000
Claire's Stores.............................. 2,000 27,750
Diagnostek...................................(a) 2,300 42,550
Dress Barn...................................(a) 1,800 17,325
Fay's........................................ 5,000 45,000
Finish Line, Cl. A...........................(a) 6,000 44,250
InterTan.....................................(a) 3,700 28,213
Little Switzerland...........................(a) 1,800 8,100
Pier 1 Imports............................... 10,080 90,720
Ross Stores.................................. 4,900 47,775
ShowBiz Pizza Time...........................(a) 2,800 24,850
Uni-Marts.................................... 9,000 50,625
Uno Restaurant...............................(a) 2,700 29,700
Venture Stores............................... 300 3,263
Waban........................................(a) 2,100 34,912
Younkers.....................................(a) 3,000 55,875
----------
715,208
----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Focus Funds, Inc., Small Company Value Portfolio (continued)
- ---------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1995 (Unaudited)
COMMON STOCKS (CONTINUED) SHARES VALUE
- ------------------------------------------------------------------------------ ---------- ----------
<S> <C> <C> <C>
Technology--9.1% ASM Lithography Holding...................... 3,000 $ 82,125
Conner Peripherals...........................(a) 4,500 47,812
Digital Systems International................(a) 4,300 27,413
Dynatech.....................................(a) 2,400 42,000
Esterline Technologies.......................(a) 2,000 33,750
Micrografx...................................(a) 4,700 29,375
QMS..........................................(a) 5,500 33,000
Quantum......................................(a) l,500 27,750
Renaissance Solutions........................ 500 6,500
Rexon........................................(a) 7,000 31,500
State of the Art.............................(a) 1,600 17,600
Telxon....................................... 2,700 42,525
Tivoli Systems............................... 2,000 76,500
Tripos....................................... 333 2,081
----------
499,931
----------
Transportation--3.1% Arkansas Best................................ 2,500 25,312
Cannon Express, Cl. B........................(a) 2,100 28,613
Intertrans................................... 2,723 58,885
Stolt-Nielsen, S.A...........................(a) 2,300 56,206
----------
169,016
----------
Utilities--.6% Associated Group, Cl. A...................... 75 1,294
Associated Group, Cl. B...................... 75 1,294
Central Maine Power.......................... 2,700 30,037
----------
32,625
----------
TOTAL COMMON STOCKS
(cost $5,230,327).......................... $5,284,543
----------
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM INVESTMENTS--6.6% AMOUNT
- ------------------------------------------------------------------------------- ----------
<S> <C> <C> <C>
U.S. Treasury Bills: 5.68%, 5/4/95................................. $ 30,000 $ 29,977
5.63%, 5/11/95................................(b) 41,000 40,924
5.55%, 7/6/95.................................(b) 295,000 291,858
----------
TOTAL SHORT-TERM INVESTMENTS
(cost $362,918)............................. $ 362,759
----------
----------
TOTAL INVESTMENTS (cost $5,593,245)............................................ 102.3% $5,647,302
------- ----------
------- ----------
LIABILITIES, LESS CASH AND RECEIVABLES......................................... (2.3%) $(124,859)
------- ----------
------- ----------
NET ASSETS..................................................................... 100.0% $5,522,443
------- ----------
------- ----------
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
- --------------------------------------------------------------------------------
(a) Non-income producing.
(b) Partially held by broker as collateral for open short positions.
See independent accountants' review report and notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Focus Funds, Inc., Small Company Value Portfolio
- -----------------------------------------------------------------------------
Statement of Securities Sold Short April 30, 1995 (Unaudited)
COMMON STOCKS--6.7% SHARES VALUE
- ------------------------------------------------------------------------------ ---------- ---------
<S> <C> <C>
Appliance Recycling Centers of America........................................ 4,000 $ 20,500
Best Buy...................................................................... 1,000 27,375
CellStar...................................................................... 1,300 25,187
Champion Industries........................................................... 1,500 31,125
Department 56................................................................. 600 22,200
Electronics for Imaging....................................................... 300 13,650
Fritz Cos..................................................................... 1,035 62,359
Lowe's Cos.................................................................... 1,000 28,875
NGC........................................................................... 2,480 23,870
Presstek...................................................................... 500 41,500
WMS Industries................................................................ 2,940 55,492
Williams-Sonoma............................................................... 1,000 18,813
---------
TOTAL SECURITIES SOLD SHORT
(proceeds $375,592)......................................................... $ 370,946
---------
---------
</TABLE>
See independent accountants' review report and notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Focus Funds, Inc.
- -----------------------------------------------------------------------------
Statement of Assets and Liabilities April 30, 1995 (Unaudited)
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 5(b)]--see statement............ $5,282,415 $5,639,453 $5,074,503 $5,647,302
Cash.......................................... 113,471 585 102,819 10,210
Receivable for investment securities sold..... -- 221,753 -- --
Dividends and interest receivable............. 2,781 8,757 575 3,600
Receivable from brokers for proceeds on
securities sold short....................... -- -- -- 375,592
Prepaid expenses.............................. 22,700 26,642 27,122 22,671
Due from The Dreyfus Corporation.............. 2,530 3,447 2,364 3,406
---------- ---------- ---------- ----------
5,423,897 5,900,637 5,207,383 6,062,781
---------- ---------- ---------- ----------
LIABILITIES:
Due to Distributor............................ $ 3,286 $ 3,447 $ 3,122 $ 3,406
Payable for investment securities purchased... -- 153,520 -- --
Bank loans payable--Note 3.................... -- -- -- 143,000
Securities sold short, at value
(proceeds $375,592)......................... -- -- -- 370,946
Interest payable.............................. -- -- -- 1,349
Accrued expenses and other liabilities........ 18,377 19,697 17,848 21,637
---------- ---------- ---------- ----------
21,663 176,664 20,970 540,338
---------- ---------- ---------- ----------
NET ASSETS...................................... $5,402,234 $5,723,973 $5,186,413 $5,522,443
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
REPRESENTED BY:
Paid-in capital............................... $5,164,205 $5,270,278 $5,173,425 $5,609,390
Accumulated undistributed investment
income--net................................. 4,358 27,283 2,201 8,748
Accumulated net realized (loss) on
investments, securities sold short
and foreign currency transactions and
distributions in excess of net realized gain
on investments--Note 2(e)................... (210,642) (52,067) (180,323) (154,398)
Accumulated net unrealized appreciation
on investments, securities sold short and
foreign currency transactions--Note 5(b).... 444,313 478,479 191,110 58,703
---------- ---------- ---------- ----------
NET ASSETS at value............................. $5,402,234 $5,723,973 $5,186,413 $5,522,443
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Shares Outstanding
[400 million shares (with 100 million
allocated to each series) of $.001 par value
Common Stock authorized].................... 413,254 421,824 415,001 452,214
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
NET ASSET VALUE per share
(Net Assets / Shares Outstanding)........... $13.07 $13.57 $12.50 $12.21
------ ------ ------ ------
------ ------ ------ ------
</TABLE>
See independent accountants' review report and notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Focus Funds, Inc.
- ----------------------------------------------------------------------------
Statement of Operations six months ended April 30, 1995 (Unaudited)
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 $1,083, $245 and $130
foreign taxes withheld at source for the
Large Company Growth, Large Company
Value and Small Company Value Portfolios,
respectively)............................. $ 26,594 $ 61,376 $ 7,199 $ 22,870
Interest.................................... 8,554 5,059 23,932 18,480
-------- -------- -------- ----------
TOTAL INCOME......................... 35,148 66,435 31,131 41,350
-------- -------- -------- ----------
EXPENSES--NOTE 3(D):
Management fee--Note 4(a)................... $ 19,051 $ 19,406 $ 18,496 $ 19,367
Shareholder servicing costs--Note 4(b,c).... 20,657 20,923 19,436 20,929
Auditing fees............................... 4,817 5,216 4,816 4,817
Organization expenses....................... 2,904 2,591 2,955 2,559
Registration fees........................... 2,587 3,884 3,631 3,190
Shareholders' reports....................... 2,472 3,172 3,947 3,370
Directors' fees and expenses--Note 4(d)..... 1,494 1,534 1,497 1,498
Legal fees.................................. 1,176 1,237 1,243 1,161
Custodian fees.............................. 849 1,182 1,120 2,541
Dividends on securities sold short.......... -- -- -- 266
Interest--Note 3............................ -- -- -- 1,815
Miscellaneous............................... 847 855 851 851
-------- -------- -------- ---------
56,854 60,000 57,992 62,364
Less--expense reimbursement from Manager
due to undertaking--Note 4(a)............. 42,216 45,136 41,742 43,748
-------- -------- -------- ---------
TOTAL EXPENSES.......................... 14,638 14,864 16,250 18,616
-------- -------- -------- ---------
INVESTMENT INCOME--NET.................. 20,510 51,571 14,881 22,734
-------- -------- -------- ---------
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain (loss) on investments--
Note 5(a):
Long transactions (including foreign
currency transactions).................... $(92,758) $ 2,958 $216,620 $(109,403)
Short sale transactions..................... -- -- -- (25,625)
-------- -------- -------- ---------
NET REALIZED GAIN (LOSS).................... (92,758) 2,958 216,620 (135,028)
Net unrealized appreciation (depreciation)
on investments, securities sold short and
foreign currency transactions............... 175,276 478,195 (75,128) 414,350
-------- -------- -------- ---------
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS................. 82,518 481,153 141,492 279,322
-------- -------- -------- ---------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS............................... $103,028 $532,724 $156,373 $ 302,056
-------- -------- -------- ---------
-------- -------- -------- ---------
</TABLE>
See independent accountants' review report and notes to financial statements.
<PAGE>
Dreyfus Focus Funds, Inc.
- -----------------------------------------------------------------------------
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Large Company Large Company
Growth Portfolio Value Portfolio
---------------------------- ---------------------------
Year Ended Six Months Ended Year Ended Six Months Ended
October 31, April 30, 1995 October 31, April 30, 1995
1994(1) (Unaudited) 1994(1) (Unaudited)
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income--net....................... $ 68,916 $ 20,510 $ 106,661 $ 51,571
Net realized gain (loss) on investments...... (117,884) (92,758) (55,025) 2,958
Net unrealized appreciation on investments
for the period............................. 269,037 175,276 284 478,195
----------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS.......................... 220,069 103,028 51,920 532,724
----------- ----------- ----------- -----------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income--net....................... -- (85,068) -- (130,949)
----------- ----------- ----------- -----------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold................ 5,053,200 22,383 5,101,555 65,622
Dividends reinvested......................... -- 85,068 -- 130,949
Cost of shares redeemed...................... (17,313) (4,133) (10,077) (42,771)
----------- ----------- ----------- -----------
INCREASE IN NET ASSETS FROM CAPITAL STOCK
TRANSACTIONS............................. 5,035,887 103,318 5,091,478 153,800
----------- ----------- ----------- -----------
TOTAL INCREASE IN NET ASSETS........... 5,255,956 121,278 5,143,398 555,575
NET ASSETS:
Beginning of period.......................... 25,000 5,280,956 25,000 5,168,398
----------- ----------- ----------- -----------
End of period................................ $ 5,280,956(2) $ 5,402,234(2) $ 5,168,398(3) $ 5,723,973(3)
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
<CAPTION>
SHARES SHARES SHARES SHARES
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold.................................. 404,190 1,772 407,991 4,871
Shares issued for dividends reinvested....... -- 6,990 -- 11,116
Shares redeemed.............................. (1,367) (331) (774) (3,380)
----------- ----------- ---------- -----------
NET INCREASE IN SHARES OUTSTANDING......... 402,823 8,431 407,217 12,607
----------- ----------- ---------- -----------
----------- ----------- ---------- -----------
<FN>
- ---------------------
(1) From December 29, 1993 (commencement of operations) to October 31, 1994.
(2) Includes undistributed investment income--net: $68,916 in 1994 and $4,358 in 1995.
(3) Includes undistributed investment income--net: $106,661 in 1994 and $27,283 in 1995.
</TABLE>
See independent accountants' review report and notes to financial statements.
<PAGE>
Dreyfus Focus Funds, Inc.
- ----------------------------------------------------------------------------
Statement of Changes in Net Assets (continued)
<TABLE>
<CAPTION>
Small Company Small Company
Growth Portfolio Value Portfolio
---------------------------- ---------------------------
Year Ended Six Months Ended Year Ended Six Months Ended
October 31, April 30, 1995 October 31, April 30, 1995
1994(1) (Unaudited) 1994(1) (Unaudited)
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income--net....................... $ 38,622 $ 14,881 $ 123,146 $ 22,734
Net realized gain (loss) on investments...... (396,943) 216,620 200,873 (135,028)
Net unrealized appreciation (depreciation)
on investments for the period.............. 266,238 (75,128) (355,647) 414,350
---------- ---------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS................ (92,083) 156,373 (31,628) 302,056
---------- ---------- ---------- ----------
DIVIDENDS TO SHAREHOLDERS:
From investment income--net.................. -- (51,302) -- (137,132)
From net realized gain on investments........ -- -- -- (200,873)
In excess of net realized gain on investments -- -- -- (19,370)
---------- ---------- ---------- ----------
TOTAL DIVIDENDS............................ -- (51,302) -- (357,375)
---------- ---------- ---------- ----------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold................ 5,286,073 344,171 5,174,759 195,813
Dividends reinvested......................... -- 51,302 -- 357,374
Cost of shares redeemed...................... (179,625) (353,496) (2,340) (141,216)
---------- ---------- ---------- ----------
INCREASE IN NET ASSETS FROM CAPITAL
STOCK TRANSACTIONS....................... 5,106,448 41,977 5,172,419 411,971
---------- ---------- ---------- ----------
TOTAL INCREASE IN NET ASSETS........... 5,014,365 147,048 5,140,791 356,652
NET ASSETS:
Beginning of period.......................... 25,000 5,039,365 25,000 5,165,791
---------- ---------- ---------- ----------
End of period................................ $5,039,365(2) $5,186,413(2) $5,165,791(3) $5,522,443(3)
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
<CAPTION>
SHARES SHARES SHARES SHARES
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold.................................. 424,287 30,049 413,701 17,024
Shares issued for dividends reinvested....... -- 4,465 -- 31,965
Shares redeemed.............................. (15,425) (30,375) (191) (12,285)
---------- ---------- ---------- ----------
NET INCREASE IN SHARES OUTSTANDING......... 408,862 4,139 413,510 36,704
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
<FN>
- ---------------------
(1) From December 29, 1993 (commencement of operations) to October 31, 1994.
(2) Includes undistributed investment income--net: $38,622 in 1994 and $2,201
in 1995.
(3) Includes undistributed investment income--net: $123,146 in 1994 and $8,748
in 1995.
</TABLE>
See independent accountants' review report and notes to financial statements.
<PAGE>
Dreyfus Focus Funds, Inc.
- ---------------------------------------------------------------------------
Financial Highlights
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 indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
LARGE COMPANY LARGE COMPANY
GROWTH PORTFOLIO VALUE PORTFOLIO
---------------------------- -----------------------------
SIX MONTHS SIX MONTHS
YEAR ENDED ENDED YEAR ENDED ENDED
OCTOBER 31, APRIL 30, 1995 OCTOBER 31, APRIL 30, 1995
1994(1) (UNAUDITED) 1994(1) (UNAUDITED)
---------- -------------- ----------- --------------
<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of period ............ $12.50 $13.05 $12.50 $12.63
------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income--net .......................... .17 .05 .26 .12
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions .................................. .38 .18 (.13) 1.14
------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS ............ .55 .23 .13 1.26
------ ------ ------ ------
DISTRIBUTIONS;
Dividends from investment income-net ............ -- (.21) -- (.32)
------ ------ ------ ------
Net asset value, end of period .................. $13.05 $13.07 $12.63 $13.57
------ ------ ------ ------
------ ------ ------ ------
TOTAL INVESTMENT RETURN(2) .......................... 4.40% 1.88% 1.04% 10.36%
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average
net assets(2) ................................. -- .29% -- .28%
Ratio of net investment income to
average net assets(2) ......................... 1.37% .40% 2.08% .99%
Decrease reflected in above expense ratios
due to undertaking by the
Manager(2) .................................... 1.97% .82% 2.01% .87%
Portfolio Turnover Rate(2) ...................... 12.08% 8.59% 48.35% 35.67%
Net Assets, end of period (000's Omitted) ....... $5,281 $5,402 $5,168 $5,724
- --------------------------
<FN>
(1) From December 29, 1993 (commencement of operations) to October 31, 1994.
(2) Not annualized.
</TABLE>
See independent accountants' review report and notes to financial statements.
<PAGE>
Dreyfus Focus Funds, Inc.
- ----------------------------------------------------------------------------
Financial Highlights (continued)
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 indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
SMALL COMPANY SMALL COMPANY
GROWTH PORTFOLIO VALUE PORTFOLIO
---------------------------- -----------------------------
SIX MONTHS SIX MONTHS
YEAR ENDED ENDED YEAR ENDED ENDED
OCTOBER 31 APRIL 30, 1995 OCTOBER 31, APRIL 30, 1995
1994(1) (UNAUDITED) 1994(1) (UNAUDITED)
---------- -------------- ----------- --------------
<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of period ............ $12.50 $12.27 $12.50 $12.43
------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income--net .......................... .09 .03 .30 .05
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions .................................. (.32) .32 (.37) .59
------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS ............ (.23) .35 (.07) .64
------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income-net ............ -- (.12) -- (.33)
Dividends from net realized gain
on investments ................................ -- -- -- (.48)
Dividends in excess of net realized gain
on investments ................................ -- -- -- (.05)
------ ------ ------ ------
TOTAL DISTRIBUTIONS ......................... -- (.12) -- (.86)
------ ------ ------ ------
Net asset value, end of period .................. $12.27 $12.50 $12.43 $12.21
------ ------ ------ ------
------ ------ ------ ------
TOTAL INVESTMENT RETURN(2) .......................... (1.84%) 2.94% (.56%) 5.79%
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average
net assets(2) ................................. -- .33% -- .36%
Ratio of interest expense and dividends on
securities sold short to average net
assets (2) .................................... -- -- .01% .04%
Ratio of net investment income to
average net assets(2) ......................... .79% .30% 2.39% .44%
Decrease reflected in above expense ratios
due to undertaking by the Manager(2) .......... 1.96% .84% 2.07% .84%
Portfolio Turnover Rate(2) ...................... 25.95% 16.44% 219.63% 66.18%
Net Assets, end of period (000's Omitted) ....... $5,039 $5,186 $5,166 $5,522
<FN>
(1) From December 29, 1993 (commencement of operations) to October 31, 1994.
(2) Not annualized.
</TABLE>
See independent accountants' review report and notes to financial statements.
<PAGE>
Dreyfus Focus Funds, Inc.
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--GENERAL:
The Fund is registered under the Investment Company Act of 1940 ("Act") as
a diversified open-end management investment company and operates as a series
company currently offering 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. Premier Mutual Fund
Services, Inc. (the "Distributor") acts as the distributor of the Fund's shares
which are sold without a sales charge. The Distributor, located at One
Exchange Place, Boston, Massachusetts 02109, is a wholly-owned subsidiary of
FDI Distribution Services, Inc., a provider of mutual fund administration
services, which in turn is a wholly-owned subsidiary of FDI Holdings, Inc., the
parent company of which is Boston Institutional Group, Inc. The Dreyfus
Corporation ("Manager") serves as the Fund's investment adviser. The Manager is
a direct subsidiary of Mellon Bank, N.A.
As of April 30, 1995, Major Trading Corporation, a subsidiary of Mellon Bank
Investments Corporation, the parent company of which is Mellon Bank, held the
following shares:
<TABLE>
<CAPTION>
<S> <C> <S> <C>
Large Company Growth Portfolio 408,937 Small Company Growth Portfolio 406,198
Large Company Value Portfolio 412,920 Small Company Value Portfolio 439,186
</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. Investments denominated in foreign currencies are
translated to U.S. dollars at the prevailing rates of exchange.
(B) FOREIGN CURRENCY TRANSACTIONS: The Fund does not isolate that portion of
the results of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of foreign currencies, currency
gains or losses realized on securities transactions, the difference between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Fund's books, and the U.S. dollar equivalent of the amounts actually received
or paid. Net unrealized foreign exchange gains and losses arise from changes
in the value of assets and liabilities other than investments in securities,
resulting from changes in exchange rates.
(C) 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.
<PAGE>
Dreyfus Focus Funds, Inc.
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NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(D) EXPENSES: Expenses directly attributable to each series are charged to
that series' operations; expenses which are applicable to all series are
allocated among them on a pro rata basis.
(E) 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 of that
series, such gain will not be distributed.
Dividends in excess of net realized gains on investments for financial
statement purposes result from wash sale loss deferrals from security
transactions during the period.
(F) 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 applicable provisions of the Internal
Revenue Code, and to make distributions of taxable income sufficient to relieve
it from substantially all Federal income and excise taxes. For Federal income
tax purposes, each series is treated as a single entity for the purpose of
determining such qualification.
The Large Company Growth Portfolio has an unused capital loss carryover of
approximately $118,000 available for Federal income tax purposes to be applied
against future net securities profits, if any, realized subsequent to October
31, 1994. If not applied, the carryover expires in fiscal 2002.
The Large Company Value Portfolio has an unused capital loss carryover of
approximately $55,000 available for Federal income tax purposes to be applied
against future net securities profits, if any, realized subsequent to October
31, 1994. If not applied, the carryover expires in fiscal 2002.
The Small Company Growth Portfolio has an unused capital loss carryover of
approximately $397,000 available for Federal income tax purposes to be applied
against future net securities profits, if any, realized subsequent to October
31, 1994. If not applied, the carryover expires in fiscal 2002.
NOTE 3--BANK LINES OF CREDIT:
In accordance with an agreement with a bank, each Series may borrow up to
$2 million under a short-term unsecured line of credit. Interest on borrowings
is charged at rates which are related to Federal Funds rate in effect from time
to time.
Small Company Value Portfolio:
Outstanding borrowings on April 30, 1995, under the line of credit,
amounted to approximately $143,000, at an annualized interest rate of 7.04%.
The average daily amount of short-term debt outstanding during the six
months ended April 30, 1995 was approximately $51,000, with a related weighted
average annualized interest rate of 7.15%. The maximum amount of such debt
outstanding at any time during the six months ended April 30, 1995, was
$268,000.
NOTE 4--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
<PAGE>
Dreyfus Focus Funds, Inc.
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NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
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
Fund, 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 each Series presently requires reimbursement of expenses in any
full fiscal year that such expenses (exclusive of distribution expenses and
certain expenses as described above) 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 had undertaken from November 1, 1994
through December 31, 1994, to assume all expenses of each Series (excluding
certain expenses as described above). The Manager has currently undertaken from
January 1, 1995 to April 30, 1995 to waive receipt of the management, service
and distribution fees.
The expense reimbursements, pursuant to the undertakings amounted to the
following for the six months ended April 30, 1995:
<TABLE>
<CAPTION>
<S> <C> <S> <C>
Large Company Growth Portfolio $42,216 Small Company Growth Portfolio $41,742
Large Company Value Portfolio 45,136 Small Company Value Portfolio 43,748
</TABLE>
The undertaking 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 agreement.
(B) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, the Fund (a) reimburses the Distributor for payments to certain
Service Agents for distributing each Series' shares and (b) pays the Manager,
Dreyfus Service Corporation and any affiliate of either of them for advertising
and marketing relating to each Series, at an aggregate annual rate of .50 of 1%
of the value of each Series' average daily net assets. The Distributor may pay
one or more Service Agents in respect of distribution services. The Distributor
determines the amounts, if any, to be paid to Service Agents under the Plan and
the basis on which such payments are made. The fees payable under the Plan are
payable without regard to actual expenses incurred. 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 six months ended ended April 30, 1995, the following was charged
to each series pursuant to the Plan:
Large Company Growth Portfolio $12,701 Small Company Growth Portfolio $12,331
Large Company Value Portfolio 12,937 Small Company Value Portfolio 12,912
(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
<PAGE>
Dreyfus Focus Funds, Inc.
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
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 six months
ended April 30, 1995:
Large Company Growth Portfolio $6,350 Small Company Growth Portfolio $6,165
Large Company Value Portfolio 6,469 Small Company Value Portfolio 6,456
(D) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $3,000 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 5--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 six months ended April 30, 1995:
LONG TRANSACTIONS:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- ----------
<S> <C> <C>
Large Company Growth Portfolio.................... $ 412,317 $ 653,010
Large Company Value Portfolio..................... 1,791,082 1,832,692
Small Company Growth Portfolio.................... 682,212 669,315
Small Company Value Portfolio..................... 3,626,340 3,110,830
</TABLE>
SHORT SALE TRANSACTIONS;
<TABLE>
<CAPTION>
PURCHASES SALES
----------- ----------
<S> <C> <C>
Small Company Value Portfolio..................... $ 180,699 $ 431,368
</TABLE>
The Small Company Value Portfolio 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/or custodian, of cash and/or U.S.
Government securities sufficient to cover its short position. Securities sold
short at April 30, 1995 and their related market values and proceeds are set
forth in the Statement of Securities Sold Short.
<PAGE>
Dreyfus Focus Funds, Inc.
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(B) The following summarizes the accumulated net unrealized appreciation on
investments, excluding foreign currency transactions, for each series at April
30, 1995:
<TABLE>
<CAPTION>
GROSS GROSS
APPRECIATION (DEPRECIATION) NET
-------------- -------------- --------
<S> <C> <C> <C>
Large Company Growth Portfolio........ $751,332 $(307,019) $444,313
Large Company Value Portfolio......... 613,623 (135,144) 478,479
Small Company Growth Portfolio........ 625,987 (434,877) 191,110
Small Company Value Portfolio......... 433,074 (374,371) 58,703
</TABLE>
At April 30, 1995, the cost of investments for 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, 1995 was as follows:
<TABLE>
<CAPTION>
<S> <C> <S> <C>
Large Company Growth Portfolio $4,838,102 Small Company Growth Portfolio $4,883,393
Large Company Value Portfolio 5,160,974 Small Company Value Portfolio 5,593,245
</TABLE>
<PAGE>
Dreyfus Focus Funds, Inc.
- ----------------------------------------------------------------------------
Review Report of Ernst & Young LLP, Independent Accountants
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS FOCUS FUNDS, INC.
We have reviewed the accompanying statement of assets and liabilities,
including the statements of investments and securities sold short, of Dreyfus
Focus Funds, Inc. as of April 30, 1995 (comprising, respectively, the Large
Company Growth Portfolio, the Large Company Value Portfolio, the Small Company
Growth Portfolio and the Small Company Value Portfolio), and the related
statements of operations and changes in net assets and financial highlights for
the six month period ended April 30, 1995. These financial statements and
financial highlights are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data, and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit conducted
in accordance with generally accepted auditing standards, which will be
performed for the full year with the objective of expressing an opinion
regarding the financial statements and financial highlights taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the statement of changes in net assets and financial highlights for
the period from December 29, 1993 (commencement of operations) to October 31,
1994 and in our report dated December 5, 1994, we expressed an unqualified
opinion on such statement of changes in net assets and financial highlights.
Ernst & Young LLP
New York, New York
June 6, 1995
<PAGE>
DREYFUS FOCUS FUNDS, INC.
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 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. FFIAR954
