DREYFUS LARGE COMPANY GROWTH FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report that Dreyfus Large Company Growth Fund achieved
a total return of 18.87% for its latest semi-annual fiscal period, the six
months ended April 30, 1996.* This exceeded the total return for our
benchmark index, the Standard & Poor's 500 Composite Stock Price Index, which
returned 13.76% for the same six-month period.**
The period under review was one of considerable volatility both in the
U.S. economy and in the equity markets. The next two sections of this letter
define the economic and market environment. The last section comments on the
Fund's portfolio.
ECONOMIC REVIEW
Several key U.S. economic indicators have rebounded in recent months,
implying that the economic slowdown that began in early 1995 may be ending.
However, overall corporate profit growth is slowing this year. The shift to
somewhat faster economic growth is promoting inflation fears and raising bond
yields. Higher bond yields have caused the yield curve to steepen, a
condition that usually favors continued economic growth. Hence, although this
is the sixth expansion year for this business cycle, we believe that it will
prove a long cycle.
The U.S. economy grew only 2.1% in 1995, and sequential economic shocks
since September threatened to keep it slow in 1996 too. But the underlying
trend of the economy proved resilient and real Gross Domestic Product
rebounded 2.8% in the first quarter. In recent months, steady job creation
has supported faster growth in real consumer incomes and spending. Home sales
are at high levels, and capital spending remains robust. Moreover,
inventories are now quite lean. Lean inventories when demand is rising typical
ly stimulate a period of somewhat faster economic growth though this may not
translate into continued fast growth of profits.
An imbalance caused by rising demand and low inventories has begun to
affect reported inflation. This symptom is currently most pronounced in the
oil sector, but the strength in overall consumer demand is reigniting fears
of yet higher future inflation. Thus, bond yields have risen substantially
since January. By contrast, short-term market rates have risen only
marginally, held stable by the steadiness of the Federal Funds rate.
Surviving the midcycle growth slowdown that prevailed in 1995 raises the
odds that economic expansion can be sustained. A key concern going forward is
whether faster growth will reignite inflation. Higher inflation, if it
occurs, would justify a tighter monetary policy.
THE MARKETS
The U.S. equity market benefited from one of its most vigorous price
increases during the early months of this year. One of the underlying
reasons, in addition to economic growth, was a decision by the Federal
Reserve Board to take no action in February to change short-term interest
rates. As winter turned into spring, however, the market's own forces brought
about a tightening of long-term rates. Several times in March and April, the
prospect of higher borrowing costs jolted the stock averages. Nonetheless, by
the time your Fund's latest fiscal period ended on April 30, 1996, the major
market indexes were all solidly ahead of last year's level.
As shown by the flood of money going into mutual funds, investors appear
to have a voracious appetite for owning stocks. Saving for retirement has
become a national preoccupation, as evidenced by the growth of 401(k) and
other retirement plans. Stock market valuations have, of course, benefited
from this trend. However, if interest rates rise high enough, the attraction of
equities could diminish. The coming months will tell whether this is a likely
possibility.
PORTFOLIO FOCUS
Dreyfus Large Company Growth Fund was virtually fully invested during its
latest six months. Portfolio exposure is focused on medical technology,
financial services, pharmaceuticals, telecommunication equipment, technology,
chemicals, specialty retailing and consumer growth.
Fund performance has benefited from sector overweighting (compared to the
S&P 500) in health and technology, but was penalized by a large
underweighting in energy stocks, which were unusually strong in recent
months. Performance also benefited from selected stocks in the mid-cap range,
that is with market capitalizations of one to three billion dollars. These
were primarily in the medical technology, finance and retail sectors. The
Statement of Investments which appears later in this report lists all our
holdings.
The top five investments in the portfolio, ranked by percentage of the
total portfolio, were ContiFinancial, Guidant, Lucent Technologies, Sterling
Commerce, and Teva Pharmaceutical Industries A.D.R.
With the interest rate outlook now less favorable to equity prices,
near-term and 1997 earnings growth expectations are the key to absolute stock
market performance. The Fund remains fully invested as we continue to
identify attractively valued strong growth situations across many industry
sectors.
Sincerely,
[Michael L. Schonberg signature logo]
Michael L. Schonberg
Portfolio Manager
May 8, 1996
New York, N.Y.
*Total return includes reinvestment of dividends and any capital gains
paid.
** SOURCE: LIPPER ANALYTICAL SERVICES, INC. - Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. Unlike
the Fund which may invest in various types of securities and engage in
different investment techniques, the Standard & Poor's 500 Composite Stock
Price Index is a widely accepted unmanaged index of U.S. stock market
performance.
<TABLE>
DREYFUS LARGE COMPANY GROWTH FUND
STATEMENT OF INVESTMENTS APRIL 30, 1996 (UNAUDITED)
COMMON STOCKS-94.5% SHARES VALUE
______ ______
<S> <C> <C> <C>
CONSUMER NON-DURABLES-7.3% Coca-Cola............................... 2,200 $ 179,300
Tommy Hilfiger.......................(a) 5,000 227,500
Warnaco Group, Cl. A.................... 6,000 157,500
_________
564,300
_________
CONSUMER SERVICES-2.1% Spelling Entertainment Group..........(a) 17,000 163,625
_________
ELECTRONIC TECHNOLOGY-23.0% C-Cube Microsystems...................(a) 6,000 297,000
Cisco Systems.........................(a) 6,000 311,250
Hewlett-Packard.......................... 2,200 232,925
Lucent Technologies...................... 14,000 491,750
Seagate Technology....................(a) 5,500 319,000
Storage Technology....................(a) 4,000 123,000
_________
1,774,925
_________
ENERGY-2.1% NorAm Energy............................. 15,000 165,000
_________
FINANCE-12.6% American International Group............. 2,100 191,888
ContiFinancial........................... 14,900 474,937
Western National......................... 17,000 308,125
_________
974,950
_________
HEALTH SERVICES-2.7% DENTSPLY International................... 5,000 208,750
_________
HEALTH TECHNOLOGY-19.3% Amgen.................................(a) 2,400 138,000
Forest Laboratories...................(a) 6,500 299,812
Guidant.................................. 9,000 505,125
Roche Holding, A.D.R..................... 1,900 149,388
Teva Pharmaceutical Industries, A.D.R.... 9,000 403,875
_________
1,496,200
_________
PROCESS INDUSTRIES-6.8% Grace (W.R.)............................. 4,000 310,000
Monsanto................................. 1,400 212,100
_________
522,100
_________
PRODUCER MANUFACTURING-9.3% General Electric......................... 1,800 139,500
Olin..................................... 3,000 265,500
Raychem.................................. 4,000 311,500
_________
716,500
_________
TECHNOLOGY SERVICES-7.7% Microsoft..............................(a) 2,200 249,150
Sterling Commerce......................... 10,000 350,000
_________
599,150
_________
UTILITIES-1.6% Telecomunicacoes Brasileiras S.A., A.D.R.. 2,300 124,487
_________
TOTAL COMMON STOCKS
(cost $5,473,038)..................... $7,309,987
============
DREYFUS LARGE COMPANY GROWTH FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996 (UNAUDITED)
PRINCIPAL
SHORT-TERM INVESTMENTS-4.2% AMOUNT VALUE
_____ _______
U.S. TREASURY BILLS: 4.95%, 7/5/96............................. $254,000 $ 251,719
4.98%, 7/25/96............................ 75,000 74,116
_________
TOTAL SHORT-TERM INVESTMENTS
(cost $325,848) $ 325,835
============
TOTAL INVESTMENTS (cost $5,798,886)............................................ 98.7% $7,635,822
======= ============
CASH AND RECEIVABLES (NET)..................................................... 1.3% $ 97,682
======= ============
NET ASSETS..................................................................... 100.0% $7,733,504
======= ============
NOTE TO STATEMENT OF INVESTMENTS:
(a) Non-income producing.
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
DREYFUS LARGE COMPANY GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1996 (UNAUDITED)
ASSETS:
<S> <C> <C>
Investments in securities, at value
(cost $5,798,886)-see statement....................................... $7,635,822
Cash.................................................................... 102,641
Dividends receivable.................................................... 3,026
Prepaid expenses........................................................ 16,892
_________
7,758,381
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $12,013
Due to Distributor...................................................... 1,517
Accrued expenses........................................................ 11,347 24,877
_________ _________
NET ASSETS.................................................................. $7,733,504
=============
REPRESENTED BY:
Paid-in capital......................................................... $5,619,103
Accumulated investment (loss)........................................... (23,659)
Accumulated undistributed net realized gain on investments.............. 301,124
Accumulated net unrealized appreciation on investments-Note 4........... 1,836,936
_________
NET ASSETS at value applicable to 441,170 outstanding shares of
Common Stock, equivalent to $17.53 per share
(100 million shares of $.001 par value authorized)...................... $7,733,504
=============
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $753 foreign taxes withheld at source)......... $ 20,208
Interest.............................................................. 3,883
_________
TOTAL INCOME...................................................... $ 24,091
EXPENSES:
Management fee-Note 3(a).............................................. 25,100
Shareholder servicing costs-Note 3(b)................................. 10,331
Prospectus and shareholders' reports.................................. 5,358
Registration fees..................................................... 4,868
Organization expenses................................................. 2,892
Directors' fees and expenses-Note 3(c)................................ 1,873
Custodian fees........................................................ 1,051
Miscellaneous......................................................... 338
_________
TOTAL EXPENSES.................................................... 51,811
Less-reduction in management fee due to
undertaking-Note 3(a)................................................. 9,507
_________
NET EXPENSES...................................................... 42,304
_________
INVESTMENT (LOSS)-NET............................................. (18,213)
_________
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 4................................. $361,377
Net unrealized appreciation on investments.............................. 838,630
_________
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 1,200,007
_________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $1,181,794
============
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
DREYFUS LARGE COMPANY GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
OCTOBER 31, APRIL 30, 1996
1995 (UNAUDITED)
________ ________________
<S> <C> <C>
OPERATIONS:
Investment income (loss)-net...................................... $ 29,986 $ (18,213)
Net realized gain on investments.................................. 57,631 361,377
Net unrealized appreciation on investments for the period......... 729,269 838,630
____________ __________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............ 816,886 1,181,794
____________ __________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net............................................. (85,068) (19,280)
____________ __________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold..................................... 93,703 595,404
Dividends reinvested.............................................. 85,068 19,280
Cost of shares redeemed........................................... (4,133) (231,106)
____________ __________
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS.......... 174,638 383,578
____________ __________
TOTAL INCREASE IN NET ASSETS................................ 906,456 1,546,092
NET ASSETS:
Beginning of period............................................... 5,280,956 6,187,412
____________ __________
End of period [including undistributed investment income-net of
$13,834 in 1995 and investment (loss) of ($23,659) in 1996]..... $6,187,412 $7,733,504
============ =============
SHARES SHARES
____________ __________
CAPITAL SHARE TRANSACTIONS:
Shares sold....................................................... 6,814 36,670
Shares issued for dividends reinvested............................ 6,990 1,246
Shares redeemed................................................... (331) (15,042)
____________ __________
NET INCREASE IN SHARES OUTSTANDING.............................. 13,473 22,874
============ =============
</TABLE>
See independent accountants' review report and notes to financial statements.
DREYFUS LARGE COMPANY GROWTH FUND
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 period indicated This information
has been derived from the Fund's financial statements.
<TABLE>
SIX MONTHS ENDED
YEAR ENDED OCTOBER 31, APRIL 30,1996
______________________________
PER SHARE DATA: 1994(1) 1995 (UNAUDITED)
_______ _______ _____________
<S> <C> <C>
Net asset value, beginning of period............ $12.50 $13.05 $14.79
_______ _______ _______
INVESTMENT OPERATIONS:
Investment income (loss)-net.................... .17 .07 (.04)
Net realized and unrealized gain on investments. .38 1.88 2.83
_______ _______ _______
TOTAL FROM INVESTMENT OPERATIONS.............. .55 1.95 2.79
_______ _______ _______
DISTRIBUTIONS:
Dividends from investment income-net............ - (.21) (.05)
_______ _______ _______
Net asset value, end of period.................. $13.05 $14.79 $17.53
======== ======== ========
TOTAL INVESTMENT RETURN............................. 4.40%(2) 15.29% 18.87%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets......... - .85% .63%(2)
Ratio of net investment income (loss)
to average net assets......................... 1.37%(2) .54% (.27%)(2)
Decrease reflected in above expense ratios due to
undertakings by the Manager................... 1.97%(2) 1.69% .14%(2)
Portfolio Turnover Rate......................... 12.08%(2) 86.59% 70.39%(2)
Average commission rate paid(3)................. - - $.0504
Net Assets, end of period (000's omitted)....... $5,281 $6,187 $7,734
(1) From December 29, 1993 (commencement of operations) to October 31, 1994.
(2) Not annualized.
(3) For fiscal years beginning on or after November 1, 1995, the Fund is
required to disclose its average commission rate paid per share for purchases
and sales of investment securities.
</TABLE>
See independent accountants' review report and notes to financial statements.
DREYFUS LARGE COMPANY GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Growth and Value Funds, Inc. (the "Company") 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 eight series, including the Dreyfus Large Company Growth Fund (the
"Fund"). The Fund's investment objective is capital appreciation. The Dreyfus
Corporation ("Manager") serves as the Fund's investment adviser. The Manager
is a direct subsidiary of Mellon Bank, N.A ("Mellon"). Premier Mutual Fund
Services, Inc. (the "Distributor") acts as the distributor of the Fund's
shares, which are sold to the public without a sales charge.
As of April 30, 1996, Major Trading Corporation, a subsidiary of Mellon
Bank Investments Corporation, the parent company of which is Mellon Bank
Corporation, held 410,125 shares of the Fund.
The Company accounts separately for the assets, liabilities and
operations of each fund. Expenses directly attributable to each fund are
charged to that fund's operations; expenses which are applicable to all
series are allocated among them on a pro rata basis.
(A) PORTFOLIO VALUATION: The Fund's investments in securities (including
options and financial futures) 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.
(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) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and dividends from net realized
capital gain are normally declared and paid annually, but the Fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. To the extent that net realized
capital gain can be offset by capital loss carryovers, it is the policy of
the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue 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.
The Fund has an unused capital loss carryover of approximately $60,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to October 31, 1995. If not
applied, the carryover expires in fiscal 2002.
DREYFUS LARGE COMPANY GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 2-BANK LINE OF CREDIT:
In accordance with an agreement with a bank, the Fund 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 rates in effect from
time to time.
During the six months ended April 30, 1996, there were no borrowings
under the line of credit.
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 value
of the Fund's average daily net assets and is payable monthly. The Agreement
provides that if in any full fiscal year the aggregate expenses of the Fund,
exclusive of taxes, brokerage, interest on borrowings and extraordinary
expenses, exceed the expense limitation of any state having jurisdiction over
the Fund, the Fund 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 Fund
presently requires reimbursement of expenses in any full fiscal year that
such expenses (exclusive of certain expenses as described above) exceed 21/2%
of the first $30 million, 2% of the next $70 million and 11/2% of the excess
over $100 million of the average value of the Fund's net assets in accordance
with California "blue sky" regulations. The Manager has currently undertaken
from November 1, 1995 through October 31, 1996 to reduce the management fee
paid by or reimburse such excess expenses of the Fund, to the extent that the
Fund's aggregate annual expenses (exclusive of certain expenses as described
above) exceed an annual rate of 1.25 of 1% of the value of the Fund's average
daily net assets. The reduction in management fee, pursuant to the
undertaking, amounted to $9,507 for the six months ended April 30, 1996.
The undertaking may be extended, modified or terminated by the Manager,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the Agreement.
(B) Under the Shareholder Services Plan, the Fund pays the Distributor at
an annual rate of .25 of 1% of the value of the Fund's average daily net
assets for the provision of certain services. The services provided may
include personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the Fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
The Distributor may make payments to Service Agents (a securities dealer,
financial institution or other industry professional) in respect of these
services. The Distributor determines the amounts to be paid to Service
Agents. During the six months ended April 30, 1996, the Fund was charged an
aggregate of $8,367 pursuant to the Shareholder Services Plan.
Effective December 1, 1995, the Fund compensates Dreyfus Transfer, Inc.,
a wholly-owned subsidiary of the Manager, under a transfer agency agreement
for providing personnel and facilities to perform transfer agency services
for the Fund. Such compensation amounted to $158 for the period from December
1, 1995 through April 30, 1996.
DREYFUS LARGE COMPANY GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Effective May 10, 1996, the Fund entered into a Custody Agreement with
Mellon, to provide custodial services for the Fund.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Company an annual fee of $5,000 and an attendance fee of
$500 per meeting. The Chairman of the Board receives an additional 25% of
such compensation.
(D) BROKERAGE COMMISSIONS: For the six months ended April 30, 1996, the
Fund incurred total brokerage commissions of $9,742, of which $1,548 was paid
to Dreyfus Investment Services Corporation, a subsidiary of Mellon Bank
Corporation.
NOTE 4-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the six months ended April 30, 1996,
amounted to $4,712,089 and $4,642,476, respectively.
At April 30, 1996, accumulated net unrealized appreciation on investments
was $1,836,936, consisting of $1,895,174 gross unrealized appreciation and
$58,238 gross unrealized depreciation.
At April 30, 1996, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
DREYFUS LARGE COMPANY GROWTH FUND
REVIEW OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS LARGE COMPANY GROWTH FUND
We have reviewed the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus Large Company Growth Fund
(one of the Funds constituting Dreyfus Growth and Value Funds, Inc.) as of
April 30, 1996, and the related statements of operations and changes in net
assets and financial highlights for the six month period ended April 30,
1996. 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 for the year ended
October 31, 1995 and financial highlights for each of the two years in the
period ended October 31, 1995 and in our report dated December 7, 1995, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
[Ernst & Young LLP signature logo]
New York, New York
May 30, 1996
[Dreyfus lion "d" logo]
DREYFUS LARGE COMPANY GROWTH FUND
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained in the Prospectus,
which must precede or accompany this report.
Printed in U.S.A. 250SA964
[Dreyfus logo]
Large Company
Growth Fund
Semi-Annual
Report
April 30, 1996
