(LOGO)
BRAMWELL
FUNDS
Quarterly Report
March 31, 2000
BRAMWELL GROWTH FUND
BRAMWELL FOCUS FUND
<PAGE>
DEAR FELLOW SHAREHOLDERS:
(PHOTO)
ELIZABETH R. BRAMWELL, CFA
PRESIDENT AND
CHIEF INVESTMENT OFFICER
INVESTMENT RESULTS - QUARTER ENDED MARCH 31, 2000
The BRAMWELL GROWTH FUND and the BRAMWELL FOCUS FUND appreciated 5.57% and
5.95%, respectively, in the March quarter compared to 2.29% for the S&P 500/R
Stock Index. Both Funds ended the quarter ahead of the S&P 500 since their
respective launch dates (see third page for details). Since inception, August 1,
1994, the Growth Fund's compound average annual return was 25.74%. Since
inception, November 1, 1999, the Focus Fund appreciated 26.50%. The Growth Fund
ended the quarter with a net asset value of $30.53 per share and the Focus Fund
ended the quarter with a net asset value of $12.65 per share.
COMMENTARY
The economy was strong in the March quarter with the momentum of the 7.3% GDP
gain in the 1999 fourth quarter carrying over. Employment increased and consumer
spending was strong. Economies around the world improved. Y2K glitches did not
surface and corporate spending plans for e-commerce were accelerated. Inflation
was restrained by productivity gains, and although interest rates rose at the
short end, they started to recede at the long end as expectations improved for a
shrinking supply of 30-year Treasury bonds.
The opening quarter of the new millennium started with one of the most dynamic
stock markets ever. Investors flocked to New Economy companies that were
perceived as creating and driving the Information Age and potentially generating
extraordinary investment returns, while avoiding stocks of Old Economy companies
given near-term uncertainty about their ability to adapt to the Internet and the
Information Age. The huge flow of both new money as well as money flowing out of
traditional companies into Internet and technology stocks created an exaggerated
divergence in valuations between new and traditional companies.
Industries that contributed strong gains to our stock portfolios in the quarter
were electronics, office equipment, communications, biotechnology and financial
services. Stocks that contributed strongly to the Growth Fund's performance were
Intel, Kohl's, Cisco, Applied Materials, Flextronics, Analog Devices, On
Assignment, Nortel, Sepracor and Charles Schwab. Major contributors to the Focus
Fund's performance were: Analog Devices, Applied Materials, Molex, Corning and
Linear Technology.
OUTLOOK
We anticipate that the economy will slow somewhat going forward as higher short-
to-intermediate-term rates begin to impact spending behavior and the recent
equity market correction curtails the earlier positive wealth effect for
consumers and both reduces access to and raises the cost of capital, especially
for start-up companies. We expect further increases in interest rates to be
limited and to peak about midyear. We anticipate that inflation will continue to
be restrained as technological advances, spurred by the Internet, continue to
improve productivity.
The speed of change is accelerating and the potential for technology to disrupt
traditional activities present investment challenges and opportunities. Current
areas of opportunity include outsourcing of manufacturing, people and services,
electronic communications as we transition from print and distribute to
distribute
<PAGE>
via the Internet and then print, business-to-business (B2B) commerce, network
appliances, handheld wireless Internet access for both data and voice and
infrastructure buildout of the Internet. The Internet is expected to lower the
cost of doing business through improved logistics, greater ability to align
buyers and sellers at the lowest cost, tailor products to the specific needs of
customers and reduce inventory carrying and obsolescence costs. In healthcare,
future advances in genomics will permit better diagnoses of illnesses and better
tailoring of individual drugs to each individual's particular chemistry. We live
in exciting times!
Going forward, given an upward drift in short-term interest rates and the wide
divergence in P/E multiples, we think that valuation will be increasingly
scrutinized. We expect stock market performance to align more closely with the
economic merit of individual companies' business models and their performance
against expectations. Well-managed companies that can show healthy growth will
be rewarded with above-average valuations while those without the foresight to
anticipate the future correctly are likely to be penalized. We like to use a
common measurement platform across industries, namely a P/E multiple of growth.
Following this approach, with both Funds projected to have earnings growth rates
of more than 20%, based on 2001 estimated earnings, their price to growth
(P/E)/G multiples of less than 1.5 times compare favorably to estimated secular
growth of 10% and (P/E)/G of more than 2 times for the S&P 500/R Stock Index.
The Internet and the Information Age are likely to have as far-reaching impact
as the industrial revolution did a century ago. Our objective is to position the
portfolios in front of secular change, both by investing in new innovators of
change but also in older, traditional companies that are the customers of the
new innovators' products and services and that implement and execute well. Both
are important. We intend to use the recent market correction to invest in what
we perceive as attractively positioned companies for long-term growth at more
attractive valuations.
FUND INVESTMENT
For both Funds, the minimum initial investment for a Regular account is $1,000
and for an IRA or Gift to Minor account $500. Subsequent investment minimums are
$100 for Regular and IRA accounts and $50 for a Gift to Minor account. Equity
markets are inherently volatile, as demonstrated in the March quarter, and
investors are encouraged to invest over time to smooth the effects of
volatility. To facilitate regular investment programs, an Automatic Investment
Plan, with initial and subsequent investment minimums of $50 per month, is
available upon request.
Net asset values for both Funds are available each evening after 6:00 p.m. (EST)
by calling 1-800-BRAMCAP (1-800-272-6227). Please also call this number if you
need assistance or additional information.
Sincerely,
/s/ Elizabeth R. Bramwell
Elizabeth R. Bramwell, CFA
President and Chief Investment Officer
April 24, 2000
The outlook and opinions expressed above represent the views of the investment
adviser as of April 24, 2000 and are subject to change as market and economic
events unfold.
<PAGE>
BRAMWELL GROWTH FUND
MARCH 31, 2000
The BRAMWELL GROWTH FUND is a no-load, diversified fund that invests primarily
in a broad range of common stocks of companies that the Adviser believes have
above average growth potential.
MAJOR INDUSTRY SECTORS
- --------------------------------------------------------------------------------
Retailing 19.3%
Information Processing 18.9
Communications 11.3
Electronics 10.1
Industrial Products 7.0
Financial Services 6.8
Healthcare 6.4
Employee Staffing 3.5
Entertainment/Leisure Time 3.1
Testing & Measurement 2.8
MAJOR HOLDINGS
- --------------------------------------------------------------------------------
Computer Sciences 4.4%
Home Depot 3.6
General Electric 3.4
Tiffany 3.3
Kohl's 3.2
Intel 3.2
Cisco 2.8
Nortel Networks 2.8
Applied Materials 2.6
Walgreen 2.6
COMPARATIVE INVESTMENT RETURNS (3/31/00)
- --------------------------------------------------------------------------------
March One Three Five Since
Q Year Years Years Inception<F1>
- --------------------------------------------------------------------------------
GROWTH
FUND 5.57% 29.33% 34.60% 26.94% 25.74%
S&P 500/R
Stock
Index 2.29 17.94 27.40 26.76 25.67
<F1> From August 1, 1994. The annual expense ratio of the Growth Fund is capped
at 1.75% which favorably affected performance through June 30, 1997.
BRAMWELL FOCUS FUND
MARCH 31, 2000
The BRAMWELL FOCUS FUND is a no-load, non-diversified fund with a concentrated
portfolio, normally comprised of 20 to 30 securities, that invests primarily in
common stocks of companies that the Adviser believes have above average growth
potential. Because of its concentration, the Focus Fund should be regarded as a
more aggressive portfolio than the Growth Fund.
MAJOR INDUSTRY SECTORS
- --------------------------------------------------------------------------------
Electronics 22.4%
Information Processing 16.2
Communications 14.3
MAJOR HOLDINGS
- --------------------------------------------------------------------------------
Computer Sciences 7.5%
Molex 6.7
Jabil Circuits 5.9
Tiffany 5.7
Analog Devices 5.5
COMPARATIVE INVESTMENT RETURNS (3/31/00)
- --------------------------------------------------------------------------------
March Since
Q Inception<F1>
- --------------------------------------------------------------------------------
FOCUS FUND 5.95% 26.50%
S&P 500/R Stock Index 2.29% 10.52%
<F1> From October 31, 1999. The annual expense ratio of the Focus Fund is capped
at 1.75% which favorably affected performance to date.
Returns for the Funds include the reinvestment of all dividends and are net of
expenses. Returns for periods greater than one year are compound average annual
rates of return. Past performance is not predictive of future results.
Investment returns and principal value will fluctuate, so that shares, when
redeemed, may be worth more or less than their original cost.
The S&P 500/R Stock Index is an unmanaged index of 500 selected common stocks,
most of which are listed on the New York Stock Exchange. The index is adjusted
for dividends, weighted towards stocks with large-market capitalizations and
represents approximately two-thirds of the total market value of all domestic
common stocks.
<PAGE>
BRAMWELL GROWTH FUND
PORTFOLIO OF INVESTMENTS - MARCH 31, 2000 (UNAUDITED)
SHARES MARKET VALUE
------- ------------
COMMON STOCKS - 99.68%
APPAREL - 0.37%
Cutter & Buck, Inc.<F1> 75,000 $1,007,812
-------------
CHEMICALS/METALS - 2.40%
Alcoa Inc. 35,000 2,458,750
Minerals Technologies, Inc. 40,000 1,782,500
OM Group, Inc. 50,000 2,275,000
-------------
6,516,250
-------------
COMMUNICATIONS - 11.31%
America Online, Inc.<F1> 15,000 1,008,750
Bell Atlantic Corporation 16,000 978,000
Cisco Systems, Inc.<F1> 100,000 7,731,250
Corning, Inc. 5,000 970,000
Cox Communications, Inc., Class A<F1> 25,000 1,212,500
EarthLink Network, Inc.<F1> 24,225 470,873
GTE Corporation 35,000 2,485,000
Lucent Technologies, Inc. 45,000 2,733,750
MCI WorldCom, Inc.<F1> 65,000 2,945,313
Nortel Networks Corporation 60,000 7,560,000
Sprint Corp. (PCS Group) 15,000 979,688
Telocity, Inc.<F1> 24,000 297,000
UTStarcom, Inc.<F1> 17,000 1,327,062
-------------
30,699,186
-------------
ELECTRONICS - 10.07%
Analog Devices, Inc.<F1> 50,000 4,028,125
Flextronics International Ltd.<F1> 70,000 4,930,625
Intel Corporation 65,000 8,575,938
Jabil Circuit, Inc.<F1> 80,000 3,460,000
Linear Technology Corporation 20,000 1,100,000
Solectron Corporation<F1> 71,000 2,844,437
Texas Instruments, Inc. 15,000 2,400,000
-------------
27,339,125
-------------
EMPLOYEE STAFFING - 3.47%
Heidrick & Struggles
International, Inc.<F1> 12,000 481,500
Keane, Inc.<F1> 50,000 1,262,500
Labor Ready, Inc.<F1> 80,000 790,000
On Assignment, Inc.<F1> 100,000 4,500,000
Robert Half International, Inc.<F1> 50,000 2,371,875
-------------
9,405,875
-------------
SHARES MARKET VALUE
------- ------------
ENERGY - 1.94%
Diamond Offshore Drilling, Inc. 50,000 $1,996,875
Enron Corp. 10,000 748,750
Nabors Industries, Inc.<F1> 45,000 1,746,562
Transocean Sedco Forex, Inc. 15,059 772,715
-------------
5,264,902
-------------
ENTERTAINMENT & LEISURE TIME - 3.09%
AMFM, Inc.<F1> 10,000 621,250
AT&T Corporation -
Liberty Media Group, Class A<F1> 30,000 1,777,500
CBS Corporation<F1> 40,000 2,265,000
Cinar Corporation, Class B<F1> 64,000 498,000
Grupo Televisa S.A. 25,000 1,700,000
Imax Corporation<F1> 70,000 1,509,375
-------------
8,371,125
-------------
FINANCIAL SERVICES - 6.80%
BlackRock, Inc.<F1> 30,000 607,500
Charles Schwab Corporation (The) 70,000 3,976,875
Citigroup, Inc. 60,000 3,558,750
H&R Block, Inc. 15,000 671,250
Jones Lang LaSalle, Inc.<F1> 45,600 706,800
LendingTree, Inc.<F1> 2,000 27,000
Mellon Financial Corporation 35,000 1,032,500
Northern Trust Company 70,000 4,729,375
State Street Corporation 30,000 2,906,250
TD Waterhouse Group, Inc.<F1> 10,000 250,000
-------------
18,466,300
-------------
FOOD & BEVERAGE - 0.60%
Bestfoods 35,000 1,638,437
-------------
HEALTHCARE: PRODUCTS - 4.84%
Amgen, Inc.<F1> 25,000 1,534,375
Focal, Inc.<F1> 25,000 200,000
Genentech, Inc.<F1> 23,000 3,496,000
Johnson & Johnson 15,000 1,050,938
Medtronic, Inc. 34,000 1,748,875
Pfizer, Inc. 70,000 2,559,375
Sepracor, Inc.<F1> 35,000 2,548,437
-------------
13,138,000
-------------
<PAGE>
PORTFOLIO OF INVESTMENTS - MARCH 31, 2000 (UNAUDITED) (continued)
SHARES MARKET VALUE
------- ------------
HEALTHCARE: SERVICES - 1.53%
Cardinal Health, Inc. 90,500 $4,151,687
Neoforma.com, Inc.<F1> 1,000 16,375
-------------
4,168,062
-------------
HOME & OFFICE FURNITURE - 0.40%
Leggett & Platt, Inc. 50,000 1,075,000
-------------
HOUSEHOLD & PERSONAL CARE
PRODUCTS - 1.04%
Colgate-Palmolive Company 50,000 2,818,750
-------------
INDUSTRIAL PRODUCTS - 6.99%
Emerson Electric Company 40,800 2,157,300
General Electric Company 60,000 9,311,250
Illinois Tool Works, Inc. 35,000 1,933,750
Molex Inc., Class A 125,481 5,568,219
-------------
18,970,519
-------------
INFORMATION PROCESSING:
OFFICE EQUIPMENT - 6.67%
Dell Computer Corporation<F1> 20,000 1,078,750
EMC Corporation<F1> 40,000 5,000,000
Hewlett-Packard Co. 8,000 1,060,500
International Business
Machines Corporation 28,000 3,304,000
Lexmark International Group, Inc.<F1> 55,000 5,816,250
Palm, Inc.<F1> 1,000 44,875
Pitney Bowes, Inc. 40,000 1,787,500
-------------
18,091,875
-------------
INFORMATION PROCESSING: SERVICES - 9.34%
AGENCY.COM, Inc.<F1> 15,000 400,313
Automatic Data Processing, Inc. 125,000 6,031,250
Computer Sciences Corporation<F1> 150,058 11,873,339
DST Systems, Inc.<F1> 46,500 3,019,594
Electronic Data Systems Corporation 15,000 962,813
Paychex, Inc. 58,500 3,063,938
-------------
25,351,247
-------------
INFORMATION PROCESSING: SOFTWARE - 2.84%
Adobe Systems, Inc. 10,000 1,113,125
Ariba, Inc.<F1> 2,000 419,250
Microsoft Corporation<F1> 58,000 6,162,500
-------------
7,694,875
-------------
SHARES MARKET VALUE
------- ------------
RETAILING - 19.33%
BUY.COM, Inc.<F1> 2,000 $19,719
Costco Wholesale Corporation<F1> 48,000 2,523,000
CVS Corporation 85,000 3,192,813
Home Depot, Inc. (The) 150,000 9,675,000
Kohl's Corporation<F1> 85,000 8,712,500
Lowe's Companies, Inc. 40,000 2,335,000
Tandy Corporation 25,000 1,268,750
Target Corporation 35,000 2,616,250
Tiffany & Company 105,600 8,830,800
Wal-Mart Stores, Inc. 110,000 6,105,000
Walgreen Company 270,000 6,952,500
Yankee Candle Company, Inc. (The)<F1> 15,000 237,188
-------------
52,468,520
-------------
SEMICONDUCTOR EQUIP. MFG. - 2.57%
Applied Materials, Inc.<F1> 74,000 6,974,500
-------------
TESTING & MEASUREMENT - 2.81%
Agilent Technologies, Inc.<F1> 10,000 1,040,000
Teradyne, Inc.<F1> 80,000 6,580,000
-------------
7,620,000
-------------
TRANSPORTATION - 1.27%
Kansas City Southern Industries, Inc. 40,000 3,437,500
-------------
TOTAL COMMON STOCKS
(Cost $127,837,157) 270,517,860
-------------
PRINCIPAL AMOUNT
----------------
VARIABLE RATE
DEMAND NOTES - 0.35%
Firstar Bank $959,000 959,000
-------------
TOTAL VARIABLE RATE DEMAND NOTES
(Cost $959,000) 959,000
-------------
TOTAL INVESTMENTS - 100.03%
(Cost $128,796,157) 271,476,860
LIABILITIES LESS OTHER ASSETS - (0.03)% (89,296)
-------------
NET ASSETS - 100.00%
(8,888,625 shares outstanding) $271,387,564
=============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $30.53
=============
<F1>Non-income producing security
<PAGE>
BRAMWELL FOCUS FUND
PORTFOLIO OF INVESTMENTS - MARCH 31, 2000 (UNAUDITED)
SHARES MARKET VALUE
------- ------------
COMMON STOCKS - 98.53%
CHEMICALS/METALS - 4.59%
Minerals Technologies, Inc. 6,000 $267,375
-------------
COMMUNICATIONS - 14.34%
Corning, Inc. 1,000 194,000
Cox Communications, Inc., Class A<F1> 4,000 194,000
GTE Corporation 3,100 220,100
Telocity, Inc.<F1> 9,500 117,563
UTStarcom, Inc.<F1> 1,400 109,288
-------------
834,951
-------------
ELECTRONICS - 22.37%
Analog Devices, Inc.<F1> 4,000 322,250
Jabil Circuit, Inc.<F1> 8,000 346,000
Linear Technology Corporation 2,000 110,000
Solectron Corporation<F1> 7,500 300,469
Texas Instruments, Inc. 1,400 224,000
-------------
1,302,719
-------------
FINANCIAL SERVICES - 4.23%
BlackRock, Inc.<F1> 6,000 121,500
TD Waterhouse Group, Inc.<F1> 5,000 125,000
-------------
246,500
-------------
FOOD & BEVERAGE - 3.62%
Bestfoods 4,500 210,656
-------------
HEALTHCARE: PRODUCTS - 3.92%
Genentech, Inc.<F1> 1,500 228,000
-------------
INDUSTRIAL PRODUCTS - 10.30%
Emerson Electric Company 4,000 211,500
Molex, Inc., Class A 8,750 388,281
-------------
599,781
-------------
INFORMATION PROCESSING:
OFFICE EQUIPMENT - 1.37%
Hewlett-Packard Co. 600 79,537
-------------
INFORMATION PROCESSING:
SERVICES - 11.57%
Automatic Data Processing, Inc. 3,600 173,700
Computer Sciences Corporation<F1> 5,500 435,187
DST Systems, Inc.<F1> 1,000 64,938
-------------
673,825
-------------
SHARES MARKET VALUE
------- ------------
INFORMATION PROCESSING:
SOFTWARE - 3.21%
Adobe Systems, Inc. 1,300 $144,706
Ariba, Inc.<F1> 200 41,925
-------------
186,631
-------------
RETAILING - 8.46%
Tiffany & Company 4,000 334,500
Yankee Candle Company, Inc. (The)<F1> 10,000 158,125
-------------
492,625
-------------
SEMICONDUCTOR EQUIP. MFG. - 4.86%
Applied Materials, Inc.<F1> 3,000 282,750
-------------
TESTING & MEASUREMENT - 5.69%
Agilent Technologies, Inc.<F1> 2,000 208,000
Teradyne, Inc.<F1> 1,500 123,375
-------------
331,375
-------------
TOTAL COMMON STOCKS
(Cost $4,974,992) 5,736,725
-------------
PRINCIPAL AMOUNT
----------------
VARIABLE RATE
DEMAND NOTES - 2.44%
Firstar Bank $142,000 142,000
-------------
TOTAL VARIABLE RATE DEMAND NOTES
(Cost $142,000) 142,000
-------------
TOTAL INVESTMENTS - 100.97%
(Cost $5,116,992) 5,878,725
LIABILITIES LESS OTHER ASSETS - (0.97)% (56,537)
-------------
NET ASSETS - 100.00%
(460,143 shares outstanding) $5,822,188
=============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $12.65
=============
<F1>Non-income producing security
<PAGE>
(LOGO)
BRAMWELL
FUNDS
BOARD OF DIRECTORS
ELIZABETH R. BRAMWELL, CFA
President, Chief Investment and Financial Officer
The Bramwell Funds, Inc.
J. SINCLAIR ARMSTRONG
Director, Secretary and Treasurer
The Reed Foundation, Inc.
Retired Executive VP
US Trust Co. of New York
Former Chairman
Securities & Exchange Commission
ISABEL H. BENHAM
Trustee Emeritus and former President, Board of Trustees
John W. Barriger III National Railroad Library
CHARLES L. BOOTH, JR.
Former Executive Vice President and Chief Investment Officer
The Bank of New York, Inc.
GEORGE F. KEANE
Chairman
Trigen Energy Corp.
President Emeritus
The Common Fund, Inc.
JAMES C. SARGENT
Counsel
Opton, Handler, Gottlieb, Feiler & Katz
Former Commissioner
Securities & Exchange Commission
MARTHA R. SEGER, PH.D.
Chairman
Martha Seger & Associates
Former Governor
Federal Reserve Board
<PAGE>
(LOGO)
BRAMWELL
FUNDS
745 Fifth Avenue, New York, New York 10151
1-800-BRAMCAP (1-800-272-6227)
WWW.BRAMWELL.COM
OFFICERS
ELIZABETH R. BRAMWELL, CFA
President, Chief Investment
and Financial Officer
MARY F. MCCOLLUM
Secretary and Treasurer
MARGARET A. BANCROFT
Assistant Secretary
INVESTMENT ADVISER
Bramwell Capital Management, Inc.
ADMINISTRATOR
Sunstone Financial Group, Inc.
COUNSEL
Dechert Price & Rhoads
INDEPENDENT CERTIFIED
PUBLIC ACCOUNTANTS
PricewaterhouseCoopers LLP
CUSTODIAN
Firstar Bank Milwaukee
TRANSFER AGENT AND
DIVIDEND DISBURSING AGENT
Firstar Mutual Fund Services, LLC
------------------------------------------------------------
This financial statement is submitted for the general information of the
shareholders of the Bramwell Funds. It is not authorized for distribution to
prospective investors unless preceded or accompanied by an effective prospectus.
BR-412-0400
