(LOGO)
Bramwell
FUNDS
Quarterly Report
September 30, 2000
BRAMWELL GROWTH FUND
BRAMWELL FOCUS FUND
"FOCUSED ON THE FUTURE,
GUIDED BY THE PAST"
<PAGE>
DEAR FELLOW SHAREHOLDERS:
INVESTMENT RESULTS - QUARTER ENDED SEPTEMBER 30, 2000
(PHOTO)
ELIZABETH R. BRAMWELL, CFA
PRESIDENT AND
CHIEF INVESTMENT OFFICER
The BRAMWELL GROWTH FUND and the BRAMWELL FOCUS FUND appreciated 2.17% and
3.67%, respectively, for the quarter ended September 30, 2000 compared to a loss
of (0.97)% for the S&P 500/R Stock Index. For the year ended September 30,
2000, the Growth Fund appreciated 31.17% compared to 13.28% for the S&P 500
Index, and the Focus Fund appreciated 27.10% compared to 6.54% for the S&P 500
Index for its first eleven months ended September 30, 2000. Both Funds ended
September 2000 ahead of the S&P 500 Index since their respective launch dates
(see table for details). The Growth Fund ended the quarter with a net asset
value of $31.14 per share and the Focus Fund ended the quarter with a net asset
value of $12.71 per share.
In other news, the BRAMWELL FOCUS FUND has become effective for listing in the
news media. The Nasdaq ticket symbol is BRFOX.
Also, the Board of Directors of the Bramwell Funds, Inc. has decided to
discontinue the Funds' investment policy which previously limited investments in
companies with a track record of less than three years to 5% of a Fund's assets,
effective November 1, 2000. This policy is being discontinued in order to give
the Funds more flexibility to invest in younger companies as such companies
become more prevalent in the marketplace. This change does not necessarily mean
that the adviser will invest more in newer companies but that the ability to do
so exists when opportunities are deemed to be appropriate.
COMMENTARY
The September quarter was characterized by increasing evidence of a decelerating
economy with both slowing retail sales and indications of slower capital
spending ahead. The Euro continued to depreciate against the U.S. dollar and
energy prices surged reflecting an imbalance between supply and demand as well
as increased tensions in the Middle East. Overall inflation was nominal,
however, reflecting technology-driven productivity gains, global sourcing and
competition.
Increased exposure to financial services and energy contributed to overall
portfolio gains in the September quarter versus the S&P 500 Stock Index's
decline. Industrial products, healthcare and retailing were also additive. The
Funds are actively managed and their outperformance versus the S&P 500 Index may
be attributed to investing selectively in individual companies with above-
average growth potential at relatively attractive multiples of growth compared
to an Index composite that has become increasingly dominated by companies with
historically high P/E multiples. Specific stocks that contributed strongly to
the Growth Fund's performance were: DST Systems, EMC, Northern Trust, Walgreen,
Automated Data Processing, Molex (Class A), Tiffany, Cardinal Health,
Flextronics and Enron. Major contributors to the Focus Fund's performance were:
DST Systems, Santa Fe International, Calpine, Molex (Class A) and Adobe Systems.
OUTLOOK
We anticipate that the economy will slow to a non-inflationary growth rate of
2-3% in GDP as the result of delayed response to six consecutive interest rate
hikes, higher energy prices, digestion of technology investments made over the
past few years, and less stimulus coming from entrepreneurial savings and
venture capital flowing to startup companies. Y2K upgrades, an initial burst of
enthusiastic spending centered around the Internet and wireless communications,
and capital flowing freely to startup Internet companies in the fourth quarter
of 1999 create a particularly difficult comparison for the fourth quarter of
2000.
<PAGE>
By mid-2001, however, we expect that new products and services such as combined
voice, data and video in wireless communications, Windows 2000 upgrades in
computers, digital photography and broadband delivery will be gathering
momentum. The market generally anticipates some six months in advance and our
goal is to position the portfolio early in front of growth opportunities. We
hope to use market volatility to prudently enhance long-term investment returns.
Historically, the largest gains in the market occur during the early part of an
upturn.
Our goal is to be ahead of emerging trends. The Internet continues to drive
tremendous, often disruptive, change and we are on the hunt to prudently invest
in those newer companies that have surviving, added-value business models with
large potential markets and those older companies that employ the Internet
effectively. In addition, investment strategies include positioning the
portfolio ahead of increased capital spending, such as for oil exploration and
production, and positioning the portfolio in front of favorable demographics,
such as the demand for financial services where saving, investing and credit
needs are expanding on a global basis. We prefer to invest in companies with
strong revenue growth that can generate earnings expansion over and beyond cost
cutting and that spend meaningful amounts on productive research and
development.
We believe that interest rates have peaked given a slowing economy and little
inflation. Stable interest rates should be favorable to equity valuations.
Currently, we estimate that the Growth Fund has an earnings growth rate of 21%
in 2001 for which we are paying a 26 P/E ratio - not much more than the 23
multiple paid for the S&P 500 Index which as a projected 9% earnings growth rate
for 2001. The price/earnings ratio to growth is a favorable 1.2 times compared
to approximately 2.5 times for the S&P 500 Index. We estimate that the Focus
Fund's earnings growth rate is 17% and selling at a favorable 22 P/E ratio and
P/E ratio to growth of 1.3 times. We believe that these lower growth valuations
help to restrain risk.
The Internet and the Information Age, as well as advances in genomics, are in
the early stages of having far-reaching consequences both at work and at home.
Our working objective is to analyze an abundant supply of opportunities and to
invest in those most favorably positioned for long-term success at reasonable
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 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. The Nasdaq symbol for the Focus Fund
is BRFOX and for the Growth Fund is BRGRX. Further information may also be
obtained from our new Web site, WWW.BRAMWELL.COM.
Sincerely,
/s/ Elizabeth R. Bramwell
Elizabeth R. Bramwell, CFA
President and Chief Investment Officer
October 25, 2000
The outlook and opinions expressed above represent the views of the investment
adviser as of October 25, 2000 and are subject to change as market and economic
events unfold.
<PAGE>
BRAMWELL GROWTH FUND
SEPTEMBER 30, 2000
The BRAMWELL GROWTH FUND is a no-load, diversified fund that generally invests
in a portfolio of 60-90 stocks of companies that the Adviser believes have above
average growth potential.
MAJOR INDUSTRY HOLDINGS
----------------------------------------
Retailing 13.3%
Electronics 11.5
Financial Services 11.4
Information Processing Services 10.2
Industrial Products 9.1
Energy 8.0
Healthcare Products 6.1
Information Processing Equipment 4.9
Employee Staffing 3.3
Communications 3.2
MAJOR EQUITY HOLDINGS
----------------------------------------
Computer Sciences 4.1%
General Electric 3.6
Walgreen 3.5
Tiffany 2.8
Home Depot 2.8
EMC 2.7
Kohl's 2.7
Automatic Data Processing 2.4
Molex, Class A 2.3
Cardinal Health 2.2
COMPARATIVE INVESTMENT RETURNS (9/30/00)
--------------------------------------------------------------------------------
Sept Cal One Three Five Since
Q YTD Year Years Years Inception<F1>
--------------------------------------------------------------------------------
GROWTH
FUND 2.17% 7.68% 31.17% 22.49% 22.17% 23.82%
S&P 500/R
Stock Index (0.97) (1.39) 13.28 16.44 21.69 22.62
<F1> From August 1, 1994.
BRAMWELL FOCUS FUND
SEPTEMBER 30, 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 in that the price movement of a single stock may have
a greater positive or negative effect on overall portfolio performance.
MAJOR INDUSTRY HOLDINGS
----------------------------------------
Energy 20.9%
Information Processing Services 15.2
Industrial Products 13.4
MAJOR EQUITY HOLDINGS
----------------------------------------
Computer Sciences 7.1%
Molex, Class A 6.1
Transocean Sedco Forex 5.6
Santa Fe International 5.5
Bank of New York 5.0
COMPARATIVE INVESTMENT RETURNS (9/30/00)
Sept Cal Since
Q YTD Inception<F1>
--------------------------------------------------------------------------------
FOCUS FUND 3.67% 6.45% 27.10%
S&P 500/R Stock Index (0.97)% (1.39) 6.54%
--------------------------------------------------------------------------------
<F1> From October 31, 1999.
The annual expense ratios for both Funds are contractually capped at 1.75% by
their adviser through June 30, 2002, after which time, the expense limitations
may be terminated or revised at any time. The agreement to cap the expense ratio
of the Growth Fund favorably affected performance in the years ended January 30,
1997 and has favorably affected the performance of the Focus Fund through
September 30, 2000.
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 - SEPTEMBER 30, 2000 (UNAUDITED)
SHARES MARKET VALUE
------------ ------------
COMMON STOCKS - 91.24%
CHEMICALS/METALS - 2.00%
Alcoa, Inc. 70,000 $ 1,771,875
Minerals Technologies, Inc. 40,000 1,840,000
OM Group, Inc. 50,000 2,181,250
------------
5,793,125
------------
COMMUNICATIONS - 3.15%
America Online, Inc.<F1> 15,000 806,250
Cisco Systems, Inc.<F1> 90,000 4,972,500
Nortel Networks Corp. 50,000 2,978,125
UTStarcom, Inc.<F1> 17,000 355,937
------------
9,112,812
------------
CONSUMER PRODUCTS - 0.81%
Colgate - Palmolive Co. 50,000 2,360,000
------------
ELECTRONICS - 11.47%
Analog Devices, Inc.<F1> 50,000 4,128,125
Applied Materials, Inc.<F1> 74,000 4,389,125
Flextronics International Ltd.<F1> 70,000 5,748,750
Intel Corp. 80,000 3,330,000
Jabil Circuit, Inc.<F1> 80,000 4,540,000
KLA-Tencor Corp.<F1> 10,000 411,875
Linear Technology Corp. 20,000 1,295,000
LSI Logic Corp.<F1> 25,000 731,250
Solectron Corp.<F1> 95,000 4,381,875
Teradyne, Inc.<F1> 80,000 2,800,000
Texas Instruments, Inc. 31,000 1,462,813
------------
33,218,813
------------
EMPLOYEE STAFFING - 3.32%
Heidrick & Struggles International, Inc.<F1> 10,000 513,750
On Assignment, Inc.<F1> 180,000 5,647,500
Robert Half International, Inc.<F1> 100,000 3,468,750
------------
9,630,000
------------
ENERGY - 7.98%
Calpine Corp.<F1> 35,000 3,653,125
Diamond Offshore Drilling, Inc. 50,000 2,050,000
Enron Corp. 40,000 3,505,000
Nabors Industries, Inc.<F1> 70,000 3,668,000
Petroleo Brasileiro S.A.<F1> 90,000 2,705,625
Santa Fe International Corp. 75,000 3,379,687
Transocean Sedco Forex, Inc. 70,659 4,142,384
------------
23,103,821
------------
SHARES MARKET VALUE
------------ ------------
ENTERTAINMENT & LEISURE TIME - 1.47%
Grupo Televisa S.A. 30,000 $ 1,730,625
Viacom, Inc., Class B<F1> 43,400 2,538,900
------------
4,269,525
------------
FINANCIAL SERVICES - 11.43%
American Express Co. 55,000 3,341,250
Bank of New York Co., Inc. 70,000 3,924,375
BlackRock, Inc.<F1> 30,000 960,000
Charles Schwab Corp. 105,000 3,727,500
Citigroup, Inc. 93,333 5,045,815
Jones Lang LaSalle, Inc.<F1> 39,600 514,800
LendingTree, Inc.<F1> 20,000 90,000
Mellon Financial Corp. 65,000 3,014,375
Northern Trust Co. 65,000 5,776,875
State Street Corp. 25,000 3,250,000
Stilwell Financial, Inc. 80,000 3,480,000
------------
33,124,990
------------
FOOD & BEVERAGE - 1.13%
Bestfoods 45,000 3,273,750
------------
HEALTHCARE PRODUCTS - 6.12%
Amgen, Inc.<F1> 25,000 1,745,703
Genentech, Inc.<F1> 23,000 4,270,813
Human Genome Sciences, Inc.<F1> 5,000 865,625
Johnson & Johnson 15,000 1,409,063
Medtronic, Inc. 34,000 1,761,625
Pfizer, Inc. 75,000 3,370,313
Sepracor, Inc.<F1> 35,000 4,294,063
------------
17,717,205
------------
HEALTHCARE SERVICES - 2.15%
Cardinal Health, Inc. 70,500 6,217,219
------------
INDUSTRIAL PRODUCTS - 9.05%
Emerson Electric Co. 45,800 3,068,600
General Electric Co. 180,000 10,383,750
Illinois Tool Works, Inc. 35,000 1,955,625
Minnesota Mining and Manufacturing Co. 45,600 4,155,300
Molex Inc., Class A 160,481 6,649,931
------------
26,213,206
------------
<PAGE>
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 2000 (UNAUDITED) (continued)
SHARES MARKET VALUE
------------ ------------
INFORMATION PROCESSING
EQUIPMENT - 4.90%
Dell Computer Corp.<F1> 20,000 $ 616,250
EMC Corp.<F1> 80,000 7,930,000
Hewlett-Packard Co. 35,000 3,395,000
International Business Machines Corp. 20,000 2,250,000
------------
14,191,250
------------
INFORMATION PROCESSING SERVICES - 10.21%
AGENCY.COM, Inc.<F1> 35,000 522,813
Automatic Data Processing, Inc. 105,000 7,021,875
Computer Sciences Corp.<F1> 160,058 11,884,306
DST Systems, Inc.<F1> 50,500 5,933,750
Paychex, Inc. 80,250 4,213,125
------------
29,575,869
------------
INFORMATION PROCESSING SOFTWARE - 2.60%
Adobe Systems, Inc. 18,000 2,794,500
Ariba, Inc.<F1> 10,000 1,432,656
Microsoft Corp.<F1> 55,000 3,313,750
------------
7,540,906
------------
RETAILING - 13.30%
Home Depot, Inc. 150,000 7,959,375
Kohl's Corp.<F1> 135,000 7,787,812
Tiffany & Co. 211,200 8,144,400
Wal-Mart Stores, Inc. 95,000 4,571,875
Walgreen Co. 265,000 10,053,437
------------
38,516,899
------------
SHARES MARKET VALUE
------------ ------------
TRANSPORTATION - 0.15%
Kansas City Southern Industries, Inc. 50,000 $434,375
------------
TOTAL COMMON STOCKS
(Cost $127,284,866) 264,293,765
------------
PRINCIPAL
AMOUNT
------------
SHORT-TERM INVESTMENTS - 8.61%
VARIABLE RATE DEMAND NOTES - 5.88%
Firstar Corp. $8,512,000 8,512,000
Sara Lee Corp. 5,453,000 5,453,000
Wisconsin Electric Power Co. 3,087,000 3,087,000
------------
17,052,000
------------
COMMERCIAL PAPER - 2.73%
American Express Credit Corp.,
6.53%, Due 10/02/2000 7,900,000 7,900,000
------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $24,952,000) 24,952,000
------------
TOTAL INVESTMENTS - 99.85%
(Cost $152,236,866) 289,245,765
OTHER ASSETS LESS LIABILITIES - 0.15% 439,919
------------
NET ASSETS - 100.00%
(9,302,046 shares outstanding) $289,685,684
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $31.14
============
<F1> Non-income producing security
<PAGE>
BRAMWELL FOCUS FUND
PORTFOLIO OF INVESTMENTS - SEPTEMBER 30, 2000 (UNAUDITED)
SHARES MARKET VALUE
------------ ------------
COMMON STOCKS - 92.86%
ELECTRONICS - 9.47%
Analog Devices, Inc.<F1> 3,000 $ 247,687
Applied Materials, Inc.<F1> 2,000 118,625
Solectron Corp.<F1> 3,000 138,375
Texas Instruments, Inc. 4,000 188,750
------------
693,437
------------
ENERGY - 20.92%
Calpine Corp.<F1> 3,000 313,125
Enron Corp. 1,500 131,438
Petroleo Brasileiro S.A.<F1> 9,000 270,563
Santa Fe International Corp. 9,000 405,562
Transocean Sedco Forex, Inc. 7,000 410,375
------------
1,531,063
------------
FINANCIAL SERVICES - 11.67%
American Express Co. 4,500 273,375
Bank of New York Co., Inc. 6,500 364,406
Citigroup, Inc. 4,000 216,250
------------
854,031
------------
FOOD & BEVERAGE - 4.97%
Bestfoods 5,000 363,750
------------
HEALTHCARE PRODUCTS - 3.80%
Genentech, Inc.<F1> 1,500 278,531
------------
INDUSTRIAL PRODUCTS - 13.40%
Emerson Electric Co. 2,000 134,000
General Electric Co. 3,000 173,063
Minnesota Mining and
Manufacturing Co. 2,500 227,813
Molex, Inc., Class A 10,750 445,453
------------
980,329
------------
INFORMATION PROCESSING EQUIPMENT - 3.08%
EMC Corp.<F1> 1,000 99,125
Hewlett-Packard Co. 1,300 126,100
------------
225,225
------------
INFORMATION PROCESSING SERVICES - 15.21%
Automatic Data Processing, Inc. 3,600 240,750
Computer Sciences Corp.<F1> 7,000 519,750
DST Systems, Inc.<F1> 3,000 352,500
------------
1,113,000
------------
SHARES MARKET VALUE
------------ ------------
INFORMATION PROCESSING SOFTWARE - 7.18%
Adobe Systems, Inc. 2,000 $ 310,500
Ariba, Inc.<F1> 1,500 214,898
------------
525,398
------------
RETAILING - 3.16%
Tiffany & Co. 6,000 231,375
------------
TOTAL COMMON STOCKS
(Cost $5,714,116) 6,796,139
------------
PRINCIPAL
AMOUNT
------------
VARIABLE RATE
DEMAND NOTES - 7.27%
Firstar Corp. $225,000 225,000
Sara Lee Corp. 173,000 173,000
Wisconsin Electric Power Co. 134,000 134,000
------------
TOTAL VARIABLE RATE DEMAND NOTES
(Cost $532,000) 532,000
------------
TOTAL INVESTMENTS - 100.13%
(Cost $6,246,116) 7,328,139
LIABILITIES LESS OTHER ASSETS - (0.13)% (9,668)
------------
NET ASSETS - 100.00%
(575,851 shares outstanding) $7,318,471
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $12.71
============
<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
CHARLES L. BOOTH, JR.
Former Executive Vice President and
Chief Investment Officer
The Bank of New York, Inc.
GEORGE F. KEANE
President Emeritus
The Common Fund and
Endowment Advisers
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
INDEPENDENT CERTIFIED
PUBLIC ACCOUNTANTS
PricewaterhouseCoopers LLP
CUSTODIAN
Firstar Bank, N.A.
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-412-1000
