DREYFUS AGGRESSIVE GROWTH FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
The following semi-annual report to shareholders of the Dreyfus
Aggressive Growth Fund of Dreyfus Growth and Value Funds, Inc. is signed by
its portfolio manager, Michael L. Schonberg.
Michael joined the staff of The Dreyfus Corporation last summer and took
over management of this portfolio at the inception of the Fund, September 29,
1995. Michael has had a 20-year career in the securities business. He started
as an equity securities analyst with E. I. DuPont de Nemours & Co., rising to
head of equity investments in 1984. He became a Managing Director for UBS
Asset Management, New York, a $30 billion asset management firm, and was
named its chief investment officer in 1988. He has also held posts with
Cambridge Capital Corporation, Alliance Capital Management and Omega
Advisors. Michael is a graduate of the Massachusetts Institute of Technology
and became a Chartered Financial Analyst in 1979.
We are very pleased to have Michael Schonberg aboard as a key member of
our investment management team.
Sincerely,
[Stephen Canter signature logo]
Stephen Canter
Chief Investment Officer
The Dreyfus Corporation
DREYFUS AGGRESSIVE GROWTH FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
It is a pleasure to send you this first report on Dreyfus Aggressive
Growth Fund, a portfolio of Dreyfus Growth and Value Funds, Inc. This letter
covers the Fund's first semi-annual fiscal period from inception, September
29, 1995, to February 29, 1996. The Fund's fiscal year-end will be August 31,
1996.
This report includes a look at the general state of the economy during
the period under review, an overview of the stock market, and a final section
reviewing the management of your Fund.
ECONOMIC REVIEW
The U.S. economy grew slightly below its 2.5% trend rate in the last half
year, reflecting an improvement compared to the early months of 1995.
Inflation was well behaved, reducing expectations for price increases in the
months ahead. Corporate profits, strong in most of 1995, slowed towards
year-end. Near-trend growth and low inflation helped pull interest rates down
sharply by January. Although short-term interest rates are still low,
long-term rates have risen in recent weeks. When long-term rates rise above
short-term rates, the yield curve steepens, and this is generally positive
for sustained economic growth. Thus, we believe that, under current market
conditions, this business cycle, already five years old, may prove to be a
long cycle.
The picture, however, remained mixed as the growth in late 1995 was not
broad-based across economic sectors. Faster growth was chiefly due to strong
exports, to a rally in the housing sector, to the service sector, and to
business spending on technology. By contrast, consumer spending in retail
stores was sluggish, leaving stores with too much inventory, and a sharp drop
in truck sales slowed overall capital spending. These restraints, in turn,
kept manufacturing slow and weakened imports, hurting foreign economies.
Additionally, several events slowed the economy for a few months near
year-end - a strike at Boeing Company, the Federal Government shutdown, and
January's snowstorm. These are now past. Recent evidence shows that the
excess inventories have cleared and that retail spending is improving. Thus,
a somewhat more broad-based profile now seems possible for economic growth in
coming months.
Low price inflation in the last six months has reduced market
expectations for inflation in future months. However, there is evidence of
pricing power in some sectors. Tight housing markets in some regions of the
country are boosting local housing prices; strong demand in the service
sector is prompting higher prices at hotels, cruise ships and airlines; and
crude oil prices are holding above year-ago levels. Moreover, recent months'
data show that a tightening labor market may finally be forcing increases in
real wages. Wages are emerging as a clear issue in this year's election,
making policy measures to repress rising wages unlikely.
Corporate profits fared well in the slow growth, low inflation
environment of 1995. Operating profits of S&P 500 companies rose an estimated
17% in the year, helped by a weaker dollar and more corporate restructuring.
However, they did slow somewhat in the fourth quarter, as rising wage costs
and foreign profit declines began to take their toll. Current market
expectations are that profits will grow only 4.3% in 1996. Key determinants
of 1996 profit growth will be how soon foreign economies start to pick up and
whether domestic companies will be able to pass higher wages into prices.
Interest rates fell substantially in 1995. Short-term market rates are
now below 5%, pulled down by the slow economy and by three consecutive rate
cuts by the Federal Reserve Board. Long-term bond yields also fell
considerably, reaching a low of 5.96% by January. But long-term rates have
moved upwards in recent weeks for two key reasons. First, the economy has
survived the several obstacles discussed above. And second, hopes for an
agreement to balance the Federal budget are dampened, making this a contentious
political issue to be dealt with in the future.
We believe that the steeper yield curve now developing bodes well for
continued growth and a long economic cycle.
MARKET OVERVIEW
The performance of the stock market during the Fund's first fiscal period
reflected the favorable conditions that governed the economy, as described in
the preceding section of this letter. The sharp drop in stock and bond
valuations of March 8 occurred a week after the close of the fiscal period
under review.
In the late months of 1995 and early 1996, stocks set a string of new
record highs. In large part, this reflected the low interest rates that
prevailed during the period, plus hopes that interest levels might go still
lower.
To be sure, there was considerable volatility in the equity markets, and
shifting in leadership positions among various industry groups. In the Fall
of 1995, many technology stocks suffered reverses, but as winter took hold,
optimism returned to this sector again. IBM, one of the most widely held
issues especially among institutional investors, showed impressive recovery
powers. This set the pace for strength in many technology issues. The retail
sector remained weak, reflecting consumer worries about job security and
related issues. Yet basic industry stocks and heavy manufacturing did well,
helped considerably by strong U.S. export sales.
While the market was setting new records, both for blue chip stocks and
smaller capitalization issues, some commentators cautioned that stock prices
were getting beyond historic highs in relationship to earnings, dividends and
return on capital investment. However, this did not affect stock prices until
early March, when the market was surprised by Government statistics
indicating that the labor market was tighter than had been assumed - which
raised fears that interest rates might reverse course, and that inflation
might reappear.
PORTFOLIO FOCUS
From inception on September 29, 1995 to February 29, 1996, Dreyfus
Aggressive Growth Fund produced a total return of 67.44%.* This compares with
15.67% for the Dow Jones Industrial Average and 10.64% for the Standard &
Poor's 500 Composite Stock Price Index, both measured from September 30, 1995
through February 29, 1996.**
Our stock selection is based mainly on forecasts of future relative
earnings growth, by company, projecting 12 to 18 months ahead. This reflects
our belief that stock performance is strongly correlated to earnings
performance. In final construction of the portfolio we supplement the
fundamentals for specific companies with top-down forecasts of earnings for
the various industry sectors.
Our selection approach leads to a core portfolio of companies with
above-average, long-term growth characteristics. We supplement the core
holdings, when appropriate, with large cyclical positions, if justified by
evidence of a strong cyclical earnings recovery.
Large, medium and small capitalization stocks will be held in the Fund.
Selected small caps will be included when sufficient trading liquidity
exists. In a bear market environment, we will occasionally sell stocks short.
This strategy may also be used in anticipation of a serious earnings problem
in a particular company. Foreign stocks may also be used as an extension of a
strong domestic concept, as an opportunity to profit from a cyclical regional
earnings recovery, and as an alternative to U.S. stocks when U.S. shares are
relatively unattractive.
Over the last five months, the Fund capitalized on some exceptional
opportunities in smaller capitalization stocks. In particular, we invested in
a number of initial public offerings. We also took positions in some
market-tested companies that came public in recent years, but are now
approaching the initial stages of strong revenue and earnings growth as new
products are introduced.
As we see it, high growth areas of health care, technology and consumer
nondurables seem to offer the best opportunities and now represent more than
two thirds of the Fund's assets. We tend to avoid most industrial and
commodity cyclical areas where stock prices and earnings are vulnerable to
reduced future expectations because of overly optimistic 1996 earnings
forecasts.
Of course, we are pleased that the total return for the Fund in its first
five months eclipsed stock market averages by a wide margin. We would caution
our investors, however, that such outperformance should not be regarded as
routine. Our goal in managing the Fund is to equal, if we can, the
performance of broad market indexes and, hopefully, to exceed those
benchmarks when possible.
We appreciate the opportunity to manage assets on your behalf. We look
forward to a continuing relationship that we hope you will find rewarding.
Sincerely,
[Michael L. Schonberg signature logo]
Michael L. Schonberg
Portfolio Manager
March 15, 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 can utilize a broad range of investment techniques, both the
Dow Jones Industrial Average and the Standard & Poor's 500 Composite Stock
Price Index are widely accepted unmanaged indexes of stock market
performance.
<TABLE>
DREYFUS AGGRESSIVE GROWTH FUND
STATEMENT OF INVESTMENTS FEBRUARY 29, 1996 (UNAUDITED)
COMMON STOCKS-108.7% SHARES VALUE
_______ ______
<S> <C> <C> <C>
COMMERCIAL SERVICES-4.4% META Group.............................. 8,000 $ 194,000
Quintel Entertainment.................. 30,000 311,250
______
505,250
______
COMPUTER
SOFTWARE/SERVICES-.6% Engineering Animation................... 2,500 64,375
______
CONSUMER
NON-DURABLES- 12.5% Revlon, Cl. A.......................... 10,000 276,250
Ultrafem............................... 45,000 669,375
Vista 2000............................. (a) 40,000 475,000
______
1,420,625
______
CONSUMER SERVICES-5.8% Cinar Films, Cl. B..................... (a) 6,500 97,500
Extended Stay America.................. 2,500 58,125
Koo Koo Roo............................ (a) 30,000 247,500
U.S. Satellite Broadcasting, Cl. A..... 8,000 260,000
______
663,125
______
ELECTRONIC
TECHNOLOGY- 11.1% Advanced Photonix, Cl. A................. (a) 85,000 244,375
Cree Research.......................... (a) 14,000 211,750
IDX Systems............................ 5,000 158,750
Visioneer.............................. 4,000 68,000
Voice Control Systems.................. (a) 44,000 574,750
______
1,257,625
______
FINANCE-6.2% American Medical Technologies.......... (a) 200,000 237,500
Amerin................................. 2,000 52,500
ASTA Funding........................... 40,000 190,000
Capmac Holdings........................ 4,000 97,000
Contifinancial......................... 5,000 128,750
______
705,750
______
HEALTH SERVICES- 20.9% Complete Management..................... 36,000 315,000
Core................................... (a) 20,000 207,500
IMPATH................................. 900 14,062
Northstar Health Services.............. (a) 15,500 79,438
On-Gard Systems........................ (a) 55,000 446,875
Oncormed............................... (a) 35,000 271,250
Pace Health Management Systems......... 65,000 349,375
Pharmaceutical Product Development..... 7,000 189,875
Physician Support Systems.............. 5,000 88,750
Renal Care Group....................... 15,000 412,500
______
2,374,625
______
HEALTH TECHNOLOGY- 16.2% Conceptus.............................. 3,500 69,125
Fuisz Technologies..................... 13,000 312,000
Heartstream............................ 10,000 147,500
DREYFUS AGGRESSIVE GROWTH FUND
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 29, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
_______ ______
HEALTH
TECHNOLOGY (CONTINUED) Hemacare............................... (a) 45,000 $ 157,500
Macrochem.............................. (a) 45,000 306,562
Neopharm............................... 35,000 293,125
Neopharm (Warrants).................... 12,500 37,500
Neuromedical Systems................... 8,000 161,000
Oncor.................................. (a) 70,000 363,125
______
1,847,437
______
INSURANCE- 3.2% RISCORP, Cl. A......................... 17,000 365,500
______
PROCESS INDUSTRIES-3.7% Chromatics Color Sciences.............. (a) 50,000 418,750
______
PRODUCER
MANUFACTURING-2.8% Motorcar Parts & Accessories (a) 25,000 318,750
______
RETAIL-.5% Mossimo................................ 2,100 51,450
______
TECHNOLOGY SERVICES- 18.2% Citrix Systems......................... 4,800 208,800
Cybercash.............................. 1,200 60,300
Cylink................................. 5,500 129,250
Documentum............................. 4,000 155,000
Gensym................................. 19,000 304,000
Learning Tree International............ 10,000 167,500
Mercury Interactive.................... (a) 20,000 325,000
Objective System Integrators........... 6,000 246,000
Raptor Systems......................... 3,000 95,250
Red Brick Systems...................... 5,000 255,000
SQA.................................... 4,500 121,500
______
2,067,600
______
UTILITIES-2.6% Amnex.................................. (a) 75,000 295,313
______
TOTAL INVESTMENTS (cost $10,003,269) .................................... 108.7% $12,356,175
====== =====
LIABILITIES, LESS CASH AND RECEIVABLES (8.7%) $ (991,156)
====== =====
NET ASSETS.................................................................. 100.0% $11,365,019
====== =====
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.
</TABLE>
See notes to financial statements.
<TABLE>
DREYFUS AGGRESSIVE GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 29, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $10,003,269)-see statement...................................... $12,356,175
Cash.................................................................... 566,413
Receivable for investment securities sold............................... 20,938
Receivable for shares of Common Stock subscribed........................ 10,000
Interest receivable..................................................... 897
Prepaid expenses........................................................ 1,026
Due from The Dreyfus Corporation........................................ 101
______
12,955,550
LIABILITIES:
Due to Distributor...................................................... $ 1,705
Payable for investment securities purchased............................. 1,481,774
Bank loans payable-Note 2............................................... 82,000
Interest payable........................................................ 2,305
Accrued expenses........................................................ 22,747 1,590,531
______ ______
NET ASSETS.................................................................. $11,365,019
=======
REPRESENTED BY:
Paid-in capital......................................................... $ 8,714,002
Accumulated investment (loss)........................................... (21,159)
Accumulated undistributed net realized gain on investments
and securities sold short............................................. 319,270
Accumulated net unrealized appreciation on investments-Note 4(b)........ 2,352,906
______
NET ASSETS at value applicable to 543,089 outstanding shares of
Common Stock equivalent to $20.93 per share (100 million shares
of $.001 par value authorized).......................................... $11,365,019
=======
</TABLE>
See notes to financial statements.
<TABLE>
DREYFUS AGGRESSIVE GROWTH FUND
STATEMENT OF OPERATIONS
FROM SEPTEMBER 29, 1995 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 29, 1996 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Interest.............................................................. $ 6,986
Cash dividends........................................................ 350
____
TOTAL INCOME.................................................... $ 7,336
EXPENSES:
Management fee-Note 3(a).............................................. 13,661
Legal fees............................................................ 18,359
Shareholder servicing costs-Note 3(b)................................. 6,526
Interest-Note 2....................................................... 5,015
Auditing fees......................................................... 4,014
Registration fees..................................................... 3,292
Custodian fees........................................................ 2,177
Directors' fees and expenses-Note 3(c)................................ 1,456
Prospectus and shareholders' reports.................................. 1,157
Miscellaneous......................................................... 857
____
TOTAL EXPENSES.................................................. 56,514
Less-expense reimbursement from Manager
due to undertaking-Note 3(a)...................................... 28,019
____
NET EXPENSES.................................................... 28,495
______
INVESTMENT (LOSS)............................................... (21,159)
______
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 4(a):
Long transactions..................................................... $278,595
Short sale transactions............................................... 40,675
____
NET REALIZED GAIN..................................................... 319,270
Net unrealized appreciation on investments.............................. 2,352,906
______
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 2,672,176
______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $2,651,017
======
</TABLE>
See notes to financial statements.
<TABLE>
DREYFUS AGGRESSIVE GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
FROM SEPTEMBER 29, 1995 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 29, 1996 (UNAUDITED)
<S> <C> <C>
OPERATIONS:
Investment (loss)......................................................................... $ (21,159)
Net realized gain on investments.......................................................... 319,270
Net unrealized appreciation on investments for the period................................. 2,352,906
_____
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................................... 2,651,017
_____
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold............................................................. 9,264,990
Cost of shares redeemed................................................................... (550,988)
_____
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS.................................. 8,714,002
_____
TOTAL INCREASE IN NET ASSETS........................................................ 11,365,019
NET ASSETS:
Beginning of period....................................................................... -
-------
End of period [including accumulated investment (loss);
($21,159) on February 29, 1996]....................................................... $11,365,019
======
SHARES
_____
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................................... 571,863
Shares redeemed........................................................................... (28,774)
_____
NET INCREASE IN SHARES OUTSTANDING...................................................... 543,089
======
</TABLE>
See notes to financial statements.
DREYFUS AGGRESSIVE GROWTH FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for the period September 29, 1995
(commencement of operations) to February 29, 1996. This information has been
derived from the Fund's financial statements.
<TABLE>
<S> <C> <C>
PER SHARE DATA:
Net asset value, beginning of period..................................................... $12.50
___
INVESTMENT OPERATIONS:
Investment (loss)........................................................................ (.04)
Net realized and unrealized gain on investments.......................................... 8.47
___
TOTAL FROM INVESTMENT OPERATIONS....................................................... 8.43
___
Net asset value, end of period........................................................... $20.93
===
TOTAL INVESTMENT RETURN...................................................................... 67.44%*
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets........................................ .54%*
Ratio of interest expense to average net assets.......................................... .12%*
Ratio of net investment (loss) to average net assets..................................... (.49%)*
Decrease reflected in above expense ratio due to
undertaking by the Manager (limited to the expense
limitation provision of the management agreement)...................................... .51%*
Portfolio Turnover Rate.................................................................. 65.42%*
Average Commission Rate.................................................................. $.0505
Net Assets, end of period (000's omitted).............................................. $11,365
- ----------
* Not annualized.
</TABLE>
See notes to financial statements.
DREYFUS AGGRESSIVE 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 Aggressive Growth Fund (the
"Fund") which commenced operations on September 29, 1995. 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. 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.
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.
As of February 29, 1996, Allomon Corporation, a subsidiary of Mellon Bank
Investments Corporation, the parent company of which is Mellon Bank, held
160,000 shares of the Fund.
(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.
Investments denominated in foreign currencies are translated to U.S. dollars
at the prevailing rates of exchange.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Dividend
income is recognized on the ex-dividend date and interest income, including,
where applicable, amortization of discount on investments, is recognized on
the accrual basis.
(C) 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, if any, it is the
policy of the Fund not to distribute such gain.
(D) 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.
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. Outstanding borrowings on February 29, 1996 under the line of
credit amounted to $82,000, at an annualized rate of 7.18%.
DREYFUS AGGRESSIVE GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The average daily amount of short-term debt outstanding during the period
ended February 29, 1996 was approximately $155,000,
with a related weighted average annualized interest rate of 6.51%. The
maximum amount of such debt outstanding at any time during the period ended
February 29, 1996, was $1,188,000.
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 (which, in the view of
Stroock & Stroock & Lavan, counsel to the Fund, also contemplates dividends
and interest accrued on securities sold short) 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 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 the Fund's net assets in accordance with
California "blue sky" regulations. The Manager has currently undertaken from
September 29, 1995 through August 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 expense reimbursement, pursuant to the undertaking,
amounted to $28,019 for the period ended February 29, 1996.
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.
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 $677 for the period from December
1, 1995 through February 29, 1996.
(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 in respect of these
services. The Distributor determines the amounts to be paid to Service
Agents. During the period ended February 29, 1996, the Fund was charged an
aggregate of $4,554 pursuant to the Shareholder Services Plan.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund 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.
DREYFUS AGGRESSIVE GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(D) BROKERAGE COMMISSIONS: For the period ended February 29, 1996, the
Fund incurred total brokerage commissions of $14,604,
of which $90 was paid to Dreyfus Investment Services Corporation, a
subsidiary of Mellon Bank Corporation.
NOTE 4-SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment securities
and securities sold short, excluding short-term securities, during the period
ended February 29, 1996 is summarized as follows:
<TABLE>
PURCHASES SALES
_______ _______
<S> <C> <C>
Long transactions................................................ $12,877,123 $3,152,354
Short sale transactions.......................................... 189,075 229,750
_______ _______
TOTAL.......................................................... $13,066,198 $3,382,104
======== ========
</TABLE>
The Fund is engaged in short-selling which obligates the Fund to replace
the security borrowed by purchasing the security at
current market value. The Fund would incur a loss if the price of the
security increases between the date of the short sale and the date on which
the Fund replaces the borrowed security. The Fund would realize a gain if the
price of the security declines between those dates. Until the Fund replaces
the borrowed security, the Fund 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. At February 29, 1996, there were no
securities sold short outstanding.
(B) At February 29, 1996, accumulated net unrealized appreciation on
investments was $2,352,906, consisting of $2,711,565 gross unrealized
appreciation and $358,659 gross unrealized depreciation.
At February 29, 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 lion "d" logo]
DREYFUS AGGRESSIVE GROWTH FUND
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
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. 256SA962
[Dreyfus logo]
Aggressive Growth
Fund
Semi-Annual
Report
February 29, 1996
