DREYFUS LARGE COMPANY VALUE FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
One of my most enjoyable duties as portfolio manager of the Dreyfus Large
Company Value Fund, a portfolio of the Dreyfus Growth & Value Funds, Inc., is
writing this shareholder letter. This report covers the six-month period
ended April 30, 1997 during which the Fund's total return was 11.62%,*
compared to 14.71% for the Standard & Poor's 500 Composite Stock Price
Index** and 11.80% for the Standard & Poor's Barra Value Index.*** Beating
the performance of these major indices proved to be extremely difficult
during this period given the stock market's overwhelming focus on the very
largest companies included in these indices.
ECONOMIC REVIEW
The Federal Reserve Board (the "Fed") decision in March to tighten credit
already has been vindicated by the reported 5.6% rise in first quarter real
Gross Domestic Product and by the drop to 4.9% in April's unemployment rate.
The economic debate is now splintered into 1) those who believe that softer
incoming economic data for the second quarter can keep Fed policy on hold,
and 2) those who believe the economy is fundamentally too strong, warranting
higher rates irrespective of short-term economic fluctuations. Views on the
risk of inflation clearly distinguish these camps. To date, a strong dollar
has helped mute price inflation, preventing a follow-through from rising
wages. Market interest rates are likewise treading water until the policy
outlook becomes clearer. We believe that some tightening is likely in coming
months and this should temper overall growth to sustain a long business
cycle.
First quarter real GDP grew an annualized 5.6% on the quarter and by 4.0%
since the first quarter of 1996, both growth rates unseen since 1987/88.
Virtually every major economic sector contributed positively to growth. In
the early evidence for the second quarter, rising new orders portend
continued strength in exports and capital spending. By contrast, retail
spending weakened in April and the housing sector slowed. However, real
disposable income grew 3.8% in the last year, a pace which, if sustained,
should support the upward cycle in consumer spending, while mortgage rates
have not yet risen substantially.
Alongside the recent evidence of slowing consumer demand is the report of
the drop in unemployment in April. With this, the labor market is becoming
extremely tight. This is raising fears of future inflation even though actual
inflation remains modest and despite signs of a slower second quarter
economy.
If inflation should stay subdued, then the larger risk from the
combination of slower economic growth and a tightening labor market is to
corporate profits. Through the first quarter, however, profits continued to
surprise on the upside, and we expect overall profits to post modest gains in
1997.
The economy is now embarked on the seventh year for this business cycle.
Economic growth is proving stronger than seen since the late 1980s while
inflation is still subdued. More Fed tightening would indicate a willingness
to err on the side of caution and would thus help sustain the expansion.
MARKET OVERVIEW
The six-month fiscal period ended April 30, 1997 was one of the most
volatile in recent stock market history. While the underlying U.S. economy
continued to grow with little inflation, investor concerns over the outlook
for interest rates and for corporate profits caused major shifts in market
sentiment, and hence in prices.
Early in the half-year period, the dominant market trend was strong,
despite nervousness about the solidity of economic growth and the possible
reactions of the Fed. The trend picked up steam during the winter, with the
Dow Jones Industrial Average+ breaking the 7000 mark in mid-February, and then
hitting a new high of 7085 in mid-March. However, when the Fed, in a widely
anticipated move, increased its overnight lending rate on March 25 by one
quarter of a percentage point, seeking to cool off the economy and the
"irrational exuberance" in the equity markets (as Fed Chairman Alan Greenspan
termed it), the markets promptly obliged. Between mid-March and mid-April the
DJIA dropped 9.8%.
By then, however, a stream of strong quarterly profit reports began
issuing from major corporations, and the latest Government numbers on
inflation appeared reassuring. Moreover, underlying economic expansion
continued, but at a pace that appeared sustainable. The market's reaction was
to resume the upward trend of earlier in the year, breaking the 7000 level
once again on April 30.
Clearly one of the engines currently driving the market is the profit
outlook. According to two companies that monitor profit reports, I.B.E.S. and
First Call, overall first-quarter corporate profits ran about 3.7% above
forecasts. This reflects results from most of the companies in the Standard &
Poor's 500 Index. At the same time, increases in wages and compensation
during that same period were modest.
Big, heavily capitalized and well-established companies were the chief
beneficiaries. For the six months under review, the blue chip DJIA gained
17.42%, the Standard & Poor's 500 rose 14.71%, the Nasdaq was up only 3.23%
and the Russell 2000 Index of small-cap stocks only 1.61%. The mid- and
small-cap stocks enjoyed a revival along with the general market in late
April and the first few days of May. (Of course, past performance is no
guarantee of future results).
The latest trend could, of course, be affected by a Fed decision to raise
interest rates once again. However, there is no denying the resilience
displayed by the equity markets, especially the larger issues, in the closing
days of the Fund's latest fiscal period.
TEAM EFFORT
Managing your investment assets is certainly a team effort. In our last
shareholder letter I described our research effort and the significant part
our team of analysts plays in selecting investments for your Fund. The effort
employed to manage your assets is much broader, and this letter will review
some of the other hard work involved on your behalf.
Your Dreyfus Large Company Value Fund is managed in a disciplined manner.
Since it is a stock fund, you should realize that you will always have stock
market exposure. We believe that, generally, the decision to diversify into
other asset classes should not be made by a manager of a fund devoted solely
to equity securities. Rather it is the investor's job to allocate his or her
investment portfolio among various available asset classes as appropriate or
select a fund whose objective is to allocate assets.
Your Fund selects companies that we believe are value stocks. All
investment managers look for companies which are growing; a value manager
looks for these growing companies, but is price sensitive, and does not want
to pay much for them. Your Fund also may buy and sell stocks based on the
level of interest rates, in a disciplined process designed to both protect
your assets in a potentially negative stock market environment, and to allow
market participation in a potentially positive stock market environment.
As your Fund manager, I follow specific, internally created buy and sell
criteria to maintain this disciplined process. An extensive team of research
analysts as well as proprietary computer models are employed in this process.
My experience as portfolio manager for your Fund determines whether to buy or
sell a security, and provides the structure of the portfolio of investments.
Trading is another area where we attempt to add value. Dreyfus has
dedicated security traders who focus on implementing the investment decisions
of the portfolio manager. This team of traders works hard to achieve the best
prices possible when the securities in your Fund are bought or sold. In
addition, the traders provide a flow of timely information to the analysts
and portfolio manager. The accounting team at Dreyfus also works hard to make
sure that, among other duties, security trades settle properly, that available
cash is properly calculated, and that the Fund's share price is calculated
accurately on a daily basis.
PORTFOLIO FOCUS
Investment results during this semi-annual period benefited from holdings
such as Reebock International, Compaq Computer, Micron Technology, Intel,
Seagate Technology, Tosco, NationsBank, BankAmerica, Great Western Financial,
McKesson, Xerox, Ciba Specialty Chemicals, Owens-Illinois, Dayton Hudson, El
Paso Natural Gas, and Telebras, the Brazilian telephone company. Relative
performance results were penalized by holdings including Storage Technology,
Amdahl, Raychem, General Signal, CSX Corp., and Northeast Utilities.
It is both an honor and a pleasure to be managing your investment assets.
Sincerely,
[Timothy M. Ghriskey signature logo]
Timothy M. Ghriskey
Portfolio Manager
May 15, 1997
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. The
Standard & Poor's 500 Composite Stock Price Index is a widely accepted
unmanaged index of U.S. stock market performance.
*** The Standard & Poor's Barra Value Index is a capitalization-weighted
index of all the stocks in the Standard & Poor's 500 Composite Stock Price
Index that have low price-to-book ratios. It is designed so that
approximately 50% of the S&P 500's market capitalization is in the Value
Index.
+ SOURCE: LIPPER ANALYTICAL SERVICES, INC. _ The Dow Jones Industrial
Average (DJIA) is a price-weighted average of 30 actively traded blue chip
stocks.
<TABLE>
<CAPTION>
DREYFUS LARGE COMPANY VALUE FUND
STATEMENT OF INVESTMENTS APRIL 30, 1997 (UNAUDITED)
Common Stocks_93.2% Shares Value
_____________ _____________
<S> <C> <C>
Commercial Services_1.2% McGraw-Hill............................ 22,000 $ 1,119,250
_____________
Consumer Durables_1.7% General Motors......................... 26,200 1,516,325
_____________
Consumer Non-Durables_12.0% First Brands........................... 58,300 1,479,363
Fruit of the Loom, Cl. A............... (a) 41,400 1,490,400
Kimberly-Clark......................... 26,000 1,332,500
NIKE, Cl. B............................ 27,400 1,541,250
Philip Morris Cos...................... 37,800 1,488,375
RJR Nabisco Holdings................... 44,900 1,335,775
UST.................................... 43,800 1,144,275
Warnaco Group, Cl. A................... 42,600 1,214,100
_____________
11,026,038
_____________
Consumer Services_4.0% Harcourt General....................... 16,600 767,750
Harte-Hanks Communications............. 51,600 1,406,100
La Quinta Inns......................... 67,400 1,474,375
_____________
3,648,225
_____________
Electronic Technology_14.1% Amdahl................................. (a) 145,800 1,248,413
Cabletron Systems...................... (a) 48,000 1,656,000
Compaq Computer........................ (a) 20,100 1,716,038
Intel.................................. 10,500 1,607,812
International Business Machines........ 9,300 1,494,975
Lockheed Martin........................ 16,800 1,503,600
Novell................................. (a) 150,000 1,134,375
Seagate Technology..................... (a) 31,900 1,463,412
Storage Technology..................... (a) 31,800 1,116,975
_____________
12,941,600
_____________
Energy Minerals_6.2% Amoco.................................. 14,200 1,187,475
Exxon.................................. 28,400 1,608,150
Phillips Petroleum..................... 35,400 1,393,875
Tosco.................................. 51,400 1,522,725
_____________
5,712,225
_____________
Finance_12.3% Allstate............................... 23,400 1,532,700
BankAmerica............................ 13,700 1,601,187
Chase Manhattan........................ 16,800 1,556,100
Equitable.............................. 55,700 1,629,225
Great Western Financial................ 4,300 180,600
NationsBank............................ 24,800 1,497,300
Nationwide Financial Services, Cl. A... (a) 14,900 394,850
Simon DeBartolo Group.................. 48,000 1,374,000
Travelers Group........................ 28,000 1,550,500
_____________
11,316,462
_____________
Health Services_3.3% Allegiance............................. 63,580 1,406,707
McKesson............................... 22,000 1,592,250
_____________
2,998,957
_____________
DREYFUS LARGE COMPANY VALUE FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997 (UNAUDITED)
Common Stocks (continued) Shares Value
_____________ ____________
Health Technology_6.9% Bausch & Lomb.......................... (a) 37,000 $ 1,493,875
DePuy.................................. (a) 69,300 1,455,300
Forest Laboratories.................... (a) 41,700 1,423,013
Glaxo Wellcome PLC, A.D.R.............. 10,800 425,250
Watson Pharmaceuticals................. (a) 42,800 1,530,100
_____________
6,327,538
_____________
Industrial Services_1.5% Cooper Cameron......................... (a) 19,400 1,382,250
_____________
Non-Energy Minerals_1.7% Aluminum Co. of America................ 22,000 1,537,250
_____________
Process Industries_5.9% Ciba Specialty Chemicals AG............ 20,700 1,787,759
Owens-Illinois......................... (a) 52,000 1,404,000
Premark International.................. 55,400 1,357,300
Temple-Inland.......................... 16,100 893,550
_____________
5,442,609
_____________
Producer Manufacturing_7.3% General Signal......................... 39,100 1,534,675
Ingersoll-Rand......................... 15,500 761,438
Masco.................................. 39,300 1,483,575
Raychem................................ 21,400 1,380,300
Xerox.................................. 25,000 1,537,500
_____________
6,697,488
_____________
Retail Trade_4.4% Dayton Hudson.......................... 28,200 1,269,000
Federated Department Stores............ (a) 38,900 1,322,600
Meyer (Fred)........................... (a) 36,000 1,480,500
_____________
4,072,100
_____________
Transportation_1.9% CSX.................................... 32,200 1,501,325
Hertz, Cl. A........................... 8,600 249,400
_____________
1,750,725
_____________
Utilities_8.8% Coastal................................ 30,500 1,448,750
El Paso Natural Gas.................... 26,100 1,517,063
Hong Kong Telecommunications, A.D.R.... 85,700 1,467,613
NorAm Energy........................... 37,000 541,125
Northeast Utilities.................... 42,500 350,625
Philippine Long Distance Telephone, A.D.R. 25,400 1,416,050
Tenaga Nasional Berhad................. 290,000 1,340,612
_____________
8,081,838
_____________
TOTAL COMMON STOCKS
(cost $81,623,916)................... $85,570,880
=============
Preferred Stocks_1.2%
Energy Minerals; Petroleo Brasileiro S.A. - Petro Bras
(cost $872,777)...................... 5,000,000 $ 1,050,973
=============
DREYFUS LARGE COMPANY VALUE FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997 (UNAUDITED)
Principal
Short-Term Investments_2.9% Amount Value
___________ ___________
U.S. Treasury Bills: 5.02%, 5/1/1997........................ $ 131,000 $ 131,000
4.97%, 5/8/1997........................ 24,000 23,978
4.94%, 5/15/1997....................... 370,000 369,327
4.97%, 5/22/1997....................... 116,000 115,681
5.17%, 7/24/1997....................... 1,615,000 1,595,943
5.24%, 8/14/1997....................... 467,000 459,934
_____________
TOTAL SHORT-TERM INVESTMENTS
(cost $2,695,318).................... $ 2,695,863
=============
TOTAL INVESTMENTS (cost $85,192,011)........................................ 97.3% $89,317,716
======= =============
CASH AND RECEIVABLES (NET).................................................. 2.7% $ 2,465,539
======= =============
NET ASSETS.................................................................. 100.0% $91,783,255
======= =============
Notes to Statement of Investments:
(a) Non-income producing.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS LARGE COMPANY VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1997 (UNAUDITED)
Cost Value
_____________ _____________
<S> <C> <C> <C>
ASSETS: Investments in securities_See Statement of Investments $85,192,011 $89,317,716
Cash....................................... 837,106
Receivable for investment securities sold.. 3,845,776
Receivable for shares of Common Stock subscribed 239,090
Dividends and interest receivable.......... 91,697
Net unrealized appreciation on forward
currency exchange contracts_Note 4(a)...... 3,224
Prepaid expenses........................... 24,686
_____________
94,359,295
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 52,234
Due to Distributor......................... 17,792
Payable for investment securities purchased 2,357,907
Payable for shares of Common Stock redeemed 86,553
Accrued expenses........................... 61,554
_____________
2,576,040
_____________
NET ASSETS.................................................................. $91,783,255
=============
REPRESENTED BY: Paid-in capital............................ $85,481,070
Accumulated undistributed investment income_net 123,762
Accumulated net realized gain (loss) on investments,
forward currency exchange contracts and foreign
crrency transactions....................... 2,049,622
Accumulated net unrealized appreciation (depreciation)
on investments, forward currency exchange contracts
and foreign currency transactions.......... 4,128,801
_____________
NET ASSETS.................................................................. $91,783,255
=============
SHARES OUTSTANDING
(100 MILLION SHARES OF $.001 PAR VALUE COMMON STOCK AUTHORIZED)............. 4,825,253
NET ASSET VALUE, offering and redemption price per share.................... $19.02
========
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS LARGE COMPANY VALUE FUND
STATEMENT OF OPERATIONS SIX MONTHS ENDED APRIL 30, 1997 (UNAUDITED)
INVESTMENT INCOME
INCOME: Cash dividends (net of $8,591 foreign taxes
withheld at source).................... $ 554,880
Interest................................... 89,019
____________
Total Income......................... $ 643,899
EXPENSES: Management fee_Note 3(a)................... 241,818
Shareholder servicing costs_Note 3(b)...... 127,932
Registration fees.......................... 30,621
Professional fees.......................... 17,288
Custodian fees_Note 3(b)................... 9,993
Prospectus and shareholders' reports....... 8,440
Directors' fees and expenses_Note 3(c)..... 5,519
Miscellaneous.............................. 3,524
____________
Total Expenses....................... 445,135
Less_reduction in management fee due to
undertaking_Note 3(a).................. (41,787)
____________
Net Expenses......................... 403,348
____________
INVESTMENT INCOME_NET....................................................... 240,551
____________
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS_Note 4:
Net realized gain (loss) on investments and
foreign currency transactions.......... $2,009,244
Net realized gain (loss) on forward currency
exchange contracts
Short Transactions..................... 41,183
____________
Net Realized Gain (Loss)............. 2,050,427
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions...... 2,256,184
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 4,306,611
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $4,547,162
==============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS LARGE COMPANY VALUE FUND
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
_________________ _________________
<S> <C> <C>
OPERATIONS:
Investment income_net............................................... $ 240,551 $ 167,322
Net realized gain (loss) on investments............................. 2,050,427 2,354,531
Net unrealized appreciation (depreciation) on investments........... 2,256,184 1,553,523
_________________ _________________
Net Increase (Decrease) in Net Assets Resulting from Operations... 4,547,162 4,075,376
_________________ _________________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net............................................... (262,874) (91,396)
Net realized gain on investments.................................... (2,353,919) (870,438)
_________________ _________________
Total Dividends................................................... (2,616,793) (961,834)
_________________ _________________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold....................................... 89,559,915 34,849,269
Dividends reinvested................................................ 2,254,119 961,690
Cost of shares redeemed............................................. (36,147,932) (11,424,820)
_________________ _________________
Increase (Decrease) in Net Assets from Capital Stock Transactions. 55,666,102 24,386,139
_________________ _________________
Total Increase (Decrease) in Net Assets....................... 57,596,471 27,499,681
NET ASSETS:
Beginning of Period................................................. 34,186,784 6,687,103
_________________ _________________
End of Period....................................................... $ 91,783,255 $ 34,186,784
============== =================
UNDISTRIBUTED INVESTMENT INCOME_NET.................................... $ 123,762 $ 146,085
_________________ _________________
Shares Shares
_________________ _________________
CAPITAL SHARE TRANSACTIONS:
Shares sold......................................................... 4,732,156 2,046,872
Shares issued for dividends reinvested.............................. 121,976 65,600
Shares redeemed..................................................... (1,922,654) (651,191)
_________________ _________________
Net Increase (Decrease) in Shares Outstanding..................... 2,931,478 1,461,281
============== =================
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS LARGE COMPANY VALUE 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.
Six Months Ended
April 30, 1997 Year Ended October 31,
_______________________________
PER SHARE DATA: (Unaudited) 1996 1995 1994(1)
____________ _______ _______ ______
<S> <C> <C> <C> <C>
Net asset value, beginning of period.................. $18.05 $15.46 $12.63 $12.50
________ _______ _______ ______
Investment Operations:
Investment income_net................................. .06 .12 .22 .26
Net realized and unrealized gain (loss)
on investments...................................... 2.01 4.68 2.93 (.13)
________ _______ _______ ______
Total from Investment Operations...................... 2.07 4.80 3.15 .13
________ _______ _______ ______
Distributions:
Dividends from investment income_net.................. (.11) (.21) (.32) __
Dividends from net realized gain on investments....... (.99) (2.00) __ __
________ _______ _______ ______
Total Distributions................................... (1.10) (2.21) (.32) __
________ _______ _______ ______
Net asset value, end of period........................ $19.02 $18.05 $15.46 $12.63
======== ======== ======== ========
TOTAL INVESTMENT RETURN................................... 11.62%(2) 34.35% 25.73% 1.04%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............... .62%(2) 1.25% .83% __
Ratio of net investment income
to average net assets............................... .37%(2) .93% 1.64% 2.08%(2)
Decrease reflected in above expense ratios
due to undertakings by the Manager.................. .06%(2) .32% 1.76% 2.01%(2)
Portfolio Turnover Rate............................... 68.73%(2) 186.39% 143.61% 48.35%(2)
Average commission rate paid (3)................. $.0533 $.0471 __ __
Net Assets, end of period (000's Omitted)............. $91,783 $34,187 $6,687 $5,168
(1) From December 29, 1993 (commencement of operations) to October 31, 1994.
(2) Not annualized.
(3) For fiscal years beginning November 1, 1995, the Fund is required to
disclose its average commission rate paid per share
for purchases and sales of investment securities.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS LARGE COMPANY VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1_SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Large Company Value Fund (the "Fund") is a series of Dreyfus
Growth and Value Funds, Inc. (the "Company") which 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 Fund. The Fund's investment objective is capital apprecia
tion. 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") is 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 funds
are allocated among them on a pro rata basis.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: 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. Forward currency exchange contracts are
valued at the forward rate.
(B) FOREIGN CURRENCY TRANSACTIONS: The Fund does not isolate that portion
of the results of the 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 amount 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 or losses arise from
changes in the value of assets and liabilities other than investments in
securities, resulting from changes in exchange rates. Such gains and losses
are included with net realized and unrealized gain or loss on investments.
(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.
(D) 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.
(E) 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.
DREYFUS LARGE COMPANY VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 2_BANK LINE OF CREDIT:
The Fund may borrow up to $2 million for leveraging purposes under a
short-term unsecured line of credit and participates with other
Dreyfus-managed funds in a $100 million unsecured line of credit primarily to
be utilized for temporary or emergency purposes, including the financing of
redemptions. Interest is charged to the Fund at rates which are related to
the Federal Funds rate in effect at the time of borrowings. For the period
ended April 30, 1997, the Fund did not borrow under the lines of credit.
NOTE 3_MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management 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 Manager has undertaken
from November 1, 1996 through October 31, 1997 to reduce the management fee
paid by the Fund, to the extent that the Fund's aggregate expenses, exclusive
of taxes, brokerage, interest on borrowings and extraordinary expenses,
exceed an annual rate of 1.25% of the value of the Fund's average daily net
assets. The reduction in management fee, pursuant to the undertaking,
amounted to $41,787 during the period ended April 30, 1997.
(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 period ended April 30, 1997, the Fund was charged an
aggregate of $80,606 pursuant to the Shareholder Services Plan.
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 $27,779 during the period ended April 30, 1997.
The Fund compensates Mellon under a custody agreement to provide
custodial services for the Fund. During the period ended April 30, 1997,
$9,993 was charged by Mellon pursuant to the custody agreement.
(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) Effective March 3, 1997, a 1% redemption fee is charged on certain
redemptions of Fund shares (including redemptions through use of the Fund
Exchanges service) where the shares being redeemed were issued subsequent to
a specified effective date and the redemption or exchange occurs less than
fifteen days following the date of issuance.
(E) BROKERAGE COMMISSIONS: During the period ended April 30, 1997, the
Fund incurred total brokerage commissions of $201,510, of which $28,901 was
paid to Dreyfus Investment Services Corporation, a subsidiary of Mellon.
DREYFUS LARGE COMPANY VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 4_SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts,
during the period ended April 30, 1997, amounted to $92,217,838 and
$42,919,221, respectively.
In addition, the following summarizes open forward currency exchange
contracts at April 30, 1997:
<TABLE>
<CAPTION>
Foreign
Currency Unrealized
Forward Currency Contracts Amount Proceeds Value Appreciation
__________________________ _________ __________ ________ ____________
<S> <C> <C> <C> <C>
Sales:
Swiss Francs, expiring 6/16/97........... 2,027,035 $1,388,000 $1,384,776 $3,224
========
</TABLE>
The Fund enters into forward currency exchange contracts in order to hedge
its exposure to changes in foreign currency exchange rates on its foreign
portfolio holdings. When executing forward currency exchange contracts, the
Fund is obligated to buy or sell a foreign currency at a specified rate on
a certain date in the future. With respect to sales of forward currency
exchange contracts, the Fund would incur a loss if the value of the contract
increases between the date the forward contract is opened and the date the
forward contract is closed. The Fund realizes a gain if the value of the
contract decreases between those dates. With respect to purchases of forward
currency exchange contracts, the Fund would incur a loss if the value of the
contract decreases between the date the forward contract is opened and the
date the forward contract is closed. The Fund realizes a gain if the value
of the contract increases between those dates. The Fund is also exposed to
credit risk associated with counter party nonperformance on these forward
currency exchange contracts which is typically limited to the unrealized
gain on each open contract.
(B) At April 30, 1997, accumulated net unrealized appreciation on
investments and forward currency exchange contracts was $4,128,929,
consisting of $6,245,819 gross unrealized appreciation and $2,116,890 gross
unrealized depreciation.
At April 30, 1997, 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]
Registration Mark
DREYFUS LARGE COMPANY
VALUE 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.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 251SA974
[Dreyfus logo]
Registration Mark
Large Company
Value Fund
Semi-Annual
Report
April 30, 1997
