UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-10001
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Oppenheimer Main Street Opportunity Fund
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(Exact name of registrant as specified in charter)
6803 South Tucson Way, Centennial, Colorado 80112-3924
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(Address of principal executive offices) (Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
Two World Financial Center, New York, New York 10281-1008
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(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
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Date of fiscal year end: July 31
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Date of reporting period: 01/31/2008
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ITEM 1. REPORTS TO STOCKHOLDERS.
JANUARY 31, 2008
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Oppenheimer Management
Main Street Commentaries
Opportunity Fund(R) and
Semiannual
Report
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MANAGEMENT COMMENTARIES
An Interview with Your Fund's Managers
Listing of Top Holdings
SEMIANNUAL REPORT [GRAPHIC]
Listing of Investments
Financial Statements
[LOGO] OPPENHEIMERFUNDS(R)
The Right Way to Invest
TOP HOLDINGS AND ALLOCATIONS
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TOP TEN COMMON STOCK INDUSTRIES
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Oil, Gas & Consumable Fuels 9.2%
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Diversified Financial Services 8.6
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Computers & Peripherals 7.5
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Software 6.0
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Communications Equipment 5.0
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Media 4.9
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Insurance 4.6
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Industrial Conglomerates 4.5
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Semiconductors & Semiconductor Equipment 4.1
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Health Care Providers & Services 4.0
Portfolio holdings and allocations are subject to change. Percentages are as of
January 31, 2008, and are based on net assets.
TOP TEN COMMON STOCK HOLDINGS
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Exxon Mobil Corp. 4.7%
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General Electric Co. 3.6
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Bank of America Corp. 3.1
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Microsoft Corp. 3.1
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JPMorgan Chase & Co. 2.9
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Citigroup, Inc. 2.5
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American International Group, Inc. 2.4
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Hewlett-Packard Co. 2.3
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AT&T, Inc. 2.1
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QUALCOMM, Inc. 2.1
Portfolio holdings and allocations are subject to change. Percentages are as of
January 31, 2008, and are based on net assets.
For up-to-date Top 10 Fund holdings, please visit www.oppenheimerfunds.com.
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9 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
TOP HOLDINGS AND ALLOCATIONS
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SECTOR ALLOCATION
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Information Technology 27.4%
Computers & Peripherals 7.6
Software 6.0
Communications Equipment 5.1
Semiconductors & Semiconductor Equipment 4.1
Internet Software & Services 1.9
IT Services 1.7
Electronic Equipment & Instruments 0.8
Office Electronics 0.2
Financials 21.0
Industrials 10.7
Energy 10.5
Health Care 10.4
Consumer Discretionary 8.7
Consumer Staples 4.3
Telecommunication Services 3.4
Materials 3.4
Utilities 0.2
Portfolio holdings and allocations are subject to change. Percentages are as of
January 31, 2008, and are based on the total market value of common stocks.
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10 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
NOTES
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Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
Cumulative total returns are not annualized. The Fund's total returns shown do
not reflect the deduction of income taxes on an individual's investment. Taxes
may reduce your actual investment returns on income or gains paid by the Fund or
any gains you may realize if you sell your shares.
INVESTORS SHOULD CONSIDER THE FUND'S INVESTMENT OBJECTIVES, RISKS, AND OTHER
CHARGES AND EXPENSES CAREFULLY BEFORE INVESTING. THE FUND'S PROSPECTUS CONTAINS
THIS AND OTHER INFORMATION ABOUT THE FUND, AND MAY BE OBTAINED BY ASKING YOUR
FINANCIAL ADVISOR, CALLING US AT 1.800.525.7048 OR VISITING OUR WEBSITE AT
WWW.OPPENHEIMERFUNDS.COM. READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
The Fund's investment strategy and focus can change over time. The mention of
specific fund holdings does not constitute a recommendation by OppenheimerFunds,
Inc.
CLASS A shares of the Fund were first publicly offered on 9/25/00. Unless
otherwise noted, Class A returns include the current maximum initial sales
charge of 5.75%.
CLASS B shares of the Fund were first publicly offered on 9/25/00. Unless
otherwise noted, Class B returns include the applicable contingent deferred
sales charge of 5% (1-year) and 2% (5-year). Because Class B shares convert to
Class A shares 72 months after purchase, the "since inception" return for Class
B uses Class A performance for the period after conversion. Class B shares are
subject to an annual 0.75% asset-based sales charge.
CLASS C shares of the Fund were first publicly offered on 9/25/00. Unless
otherwise noted, Class C returns include the contingent deferred sales charge of
1% for the 1-year period. Class C shares are subject to an annual 0.75%
asset-based sales charge.
CLASS N shares of the Fund were first publicly offered on 3/1/01. Class N shares
are offered only through retirement plans. Unless otherwise noted, Class N
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class N shares are subject to an annual 0.25% asset-based sales charge.
11 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
NOTES
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CLASS Y shares of the Fund were first publicly offered on 9/25/00. Class Y
shares are offered only to certain institutional investors under special
agreement with the Distributor.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
12 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
FUND EXPENSES
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FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, which may include sales charges (loads) on purchase payments,
contingent deferred sales charges on redemptions; and redemption fees (if
applicable); and (2) ongoing costs, including management fees; distribution and
service fees; and other Fund expenses. These examples are intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning
of the period and held for the entire 6-month period ended January 31, 2008.
ACTUAL EXPENSES. The first section of the table provides information about
actual account values and actual expenses. You may use the information in this
section for the class of shares you hold, together with the amount you invested,
to estimate the expense that you paid over the period. Simply divide your
account value by $1,000.00 (for example, an $8,600.00 account value divided by
$1,000.00 = 8.60), then multiply the result by the number in the first section
under the heading entitled "Expenses Paid During Period" to estimate the
expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The second section of the table
provides information about hypothetical account values and hypothetical expenses
based on the Fund's actual expense ratio for each class of shares, and an
assumed rate of return of 5% per year for each class before expenses, which is
not the actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. You may use this information to compare the ongoing costs of investing
in the Fund and other funds. To do so, compare this 5% hypothetical example for
the class of shares you hold with the 5% hypothetical examples that appear in
the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as front-end
or contingent deferred sales charges (loads), or a $12.00 fee imposed annually
on
13 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
FUND EXPENSES Continued
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accounts valued at less than $500.00 (subject to exceptions described in the
Statement of Additional Information). Therefore, the "hypothetical" section of
the table is useful in comparing on-going costs only, and will not help you
determine the relative total costs of owning different funds. In addition, if
these transactional costs were included, your costs would have been higher.
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BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
ACTUAL AUGUST 1, 2007 JANUARY 31, 2008 JANUARY 31, 2008
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Class A $ 1,000.00 $ 932.10 $ 5.32
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Class B 1,000.00 928.00 9.08
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Class C 1,000.00 929.00 8.74
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Class N 1,000.00 930.10 6.79
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Class Y 1,000.00 934.10 3.32
HYPOTHETICAL
(5% return before expenses)
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Class A 1,000.00 1,019.71 5.56
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Class B 1,000.00 1,015.83 9.49
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Class C 1,000.00 1,016.18 9.14
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Class N 1,000.00 1,018.20 7.10
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Class Y 1,000.00 1,021.78 3.47
Expenses are equal to the Fund's annualized expense ratio for that class,
multiplied by the average account value over the period, multiplied by 184/365
(to reflect the one-half year period). Those annualized expense ratios,
excluding indirect expenses from affiliated fund, based on the 6-month period
ended January 31, 2008 are as follows:
CLASS EXPENSE RATIOS
- ------------------------------
Class A 1.09%
- ------------------------------
Class B 1.86
- ------------------------------
Class C 1.79
- ------------------------------
Class N 1.39
- ------------------------------
Class Y 0.68
The expense ratios reflect reduction to custodian expenses and voluntary waivers
or reimbursements of expenses by the Fund's Manager that can be terminated at
any time, without advance notice. The "Financial Highlights" tables in the
Fund's financial statements, included in this report, also show the gross
expense ratios, without such waivers or reimbursements and reduction to
custodian expenses, if applicable.
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14 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
STATEMENT OF INVESTMENTS January 31, 2008 / Unaudited
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SHARES VALUE
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COMMON STOCKS--99.3%
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CONSUMER DISCRETIONARY--8.6%
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AUTO COMPONENTS--0.4%
American Axle &
Manufacturing
Holdings, Inc. 1 130,400 $ 2,836,200
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Cooper Tire &
Rubber Co. 168,750 2,880,563
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Goodyear Tire &
Rubber Co. (The) 2 60,500 1,522,785
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Johnson Controls, Inc. 32,100 1,135,377
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Lear Corp. 2 119,830 3,518,209
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Tenneco, Inc. 2 101,200 2,678,764
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14,571,898
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AUTOMOBILES--0.0%
Thor Industries, Inc. 1 34,800 1,229,136
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DIVERSIFIED CONSUMER SERVICES--0.2%
Apollo Group,
Inc., Cl. A 2 47,600 3,795,624
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Capella Education
Co. 2 35,000 2,207,800
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Career Education
Corp. 2 19,000 413,060
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Coinstar, Inc. 2 23,610 726,008
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ITT Educational
Services, Inc. 2 16,500 1,507,275
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Weight Watchers
International, Inc. 3,400 144,840
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8,794,607
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HOTELS, RESTAURANTS & LEISURE--0.3%
Bally Technologies,
Inc. 2 82,400 3,925,536
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Bob Evans Farms,
Inc. 1 49,860 1,482,836
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Chipotle Mexican
Grill, Inc., Cl. B 2 15,505 1,485,689
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IHOP Corp. 1 63,800 3,396,712
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Vail Resorts, Inc. 1,2 4,500 213,030
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Wendy's International,
Inc. 18,800 459,096
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WMS Industries,
Inc. 2 8,000 299,200
SHARES VALUE
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HOTELS, RESTAURANTS & LEISURE Continued
Yum! Brands, Inc. 9,100 $ 310,856
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11,572,955
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HOUSEHOLD DURABLES--0.5%
American Greetings
Corp., Cl. A 121,570 2,494,616
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Black & Decker
Corp. 19,610 1,422,509
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Blyth, Inc. 7,400 161,246
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Ethan Allen
Interiors, Inc. 1 7,700 238,315
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Lennar Corp., Cl. A 1 78,800 1,623,280
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NVR, Inc. 1,2 2,810 1,774,515
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Pulte Homes, Inc. 131,900 2,155,246
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Stanley Works (The) 30,000 1,540,800
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Tempur-Pedic
International, Inc. 1 113,000 2,239,660
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Toll Brothers, Inc. 1,2 67,400 1,569,072
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Tupperware Brands
Corp. 102,600 3,796,200
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19,015,459
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INTERNET & CATALOG RETAIL--0.5%
Amazon.com, Inc. 2 157,000 12,198,900
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Blue Nile, Inc. 1,2 36,160 1,997,840
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IAC/InterActiveCorp 2 31,800 824,892
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NetFlix.com, Inc. 1,2 116,000 2,917,400
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NutriSystem, Inc. 1,2 72,300 2,069,226
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20,008,258
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LEISURE EQUIPMENT & PRODUCTS--0.2%
Callaway Golf Co. 1 182,700 3,273,984
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Polaris Industries,
Inc. 1 72,550 3,151,572
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6,425,556
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MEDIA--4.9%
CBS Corp., Cl. B 105,800 2,665,102
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Clear Channel
Communications, Inc. 633,600 19,457,856
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Comcast Corp., Cl. A 2 916,500 16,643,640
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Dish Network Corp.,
Cl. A 2 107,500 3,035,800
15 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
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SHARES VALUE
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MEDIA Continued
Entravision
Communications
Corp. 2 143,540 $ 1,010,522
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Getty Images, Inc. 2 25,100 627,500
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Global Sources
Ltd. 1,2 80,003 1,060,040
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Liberty Global, Inc.,
Series A 2 90,100 3,640,941
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Liberty Media
Holding
Corp.-Capital,
Series A 2 13,400 1,442,108
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Marvel Entertainment,
Inc. 2 10,900 307,380
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News Corp., Inc.,
Cl. A 676,500 12,785,850
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Scholastic Corp. 2 76,700 2,628,509
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Sinclair Broadcast
Group, Inc., Cl. A 1 110,644 995,796
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Time Warner, Inc. 4,126,000 64,943,240
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Viacom, Inc., Cl. B 2 340,264 13,188,633
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Walt Disney Co.
(The) 1,159,700 34,709,821
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Warner Music
Group Corp. 1 291,300 2,315,835
---------------
181,458,573
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MULTILINE RETAIL--0.5%
Big Lots, Inc. 1,2 190,800 3,312,288
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Dollar Tree Stores,
Inc. 2 52,300 1,464,923
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Family Dollar Stores,
Inc. 73,430 1,544,233
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Macy's, Inc. 71,700 1,981,788
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Sears Holdings
Corp. 1,2 88,600 9,789,414
---------------
18,092,646
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SPECIALTY RETAIL--0.8%
Advance Auto
Parts, Inc. 15,300 545,904
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Aeropostale, Inc. 2 156,450 4,407,197
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AutoNation, Inc. 2 88,900 1,447,292
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AutoZone, Inc. 2 14,920 1,803,530
SHARES VALUE
- --------------------------------------------------------------------------------
SPECIALTY RETAIL Continued
Barnes & Noble, Inc. 1 91,950 $ 3,121,703
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Best Buy Co., Inc. 17,800 868,818
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Brown Shoe
Co., Inc. 1 37,700 648,440
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Buckle, Inc. (The) 1 63,640 2,646,788
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Dress Barn, Inc.
(The) 2 176,000 2,145,440
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Gap, Inc. (The) 9,200 175,904
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Home Depot, Inc. 261,500 8,020,205
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Men's Wearhouse,
Inc. (The) 1 103,500 2,638,215
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RadioShack Corp. 85,730 1,487,416
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Sally Beauty
Holdings, Inc. 2 24,100 196,656
---------------
30,153,508
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TEXTILES, APPAREL & LUXURY GOODS--0.3%
Fossil, Inc. 1,2 39,720 1,349,686
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Liz Claiborne, Inc. 21,900 479,391
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Polo Ralph
Lauren Corp., Cl. A 20,600 1,248,154
- --------------------------------------------------------------------------------
Warnaco Group,
Inc. (The) 2 86,650 3,109,869
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Wolverine World
Wide, Inc. 113,480 2,872,179
---------------
9,059,279
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CONSUMER STAPLES--4.3%
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BEVERAGES--1.0%
Coca-Cola Co.
(The) 394,800 23,360,316
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PepsiCo, Inc. 199,700 13,617,543
---------------
36,977,859
- --------------------------------------------------------------------------------
FOOD & STAPLES RETAILING--0.8%
BJ's Wholesale
Club, Inc. 2 105,160 3,411,390
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Casey's General
Stores, Inc. 80,800 2,100,800
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Costco Wholesale
Corp. 70,700 4,803,358
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CVS Caremark
Corp. 142,000 5,547,940
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Kroger Co. (The) 109,000 2,774,050
16 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
SHARES VALUE
- --------------------------------------------------------------------------------
FOOD & STAPLES RETAILING Continued
Wal-Mart Stores,
Inc. 181,400 $ 9,229,632
---------------
27,867,170
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FOOD PRODUCTS--0.1%
Darling International,
Inc. 2 118,500 1,374,600
- --------------------------------------------------------------------------------
Flowers Foods, Inc. 151,990 3,647,760
---------------
5,022,360
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HOUSEHOLD PRODUCTS--1.3%
Procter & Gamble
Co. (The) 737,567 48,642,544
- --------------------------------------------------------------------------------
PERSONAL PRODUCTS--0.2%
American Oriental
Bioengineering, Inc. 1,2 152,500 1,489,925
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Herbalife Ltd. 32,500 1,289,600
- --------------------------------------------------------------------------------
NBTY, Inc. 2 108,200 2,620,604
---------------
5,400,129
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TOBACCO--0.9%
Altria Group, Inc. 391,100 29,653,202
- --------------------------------------------------------------------------------
Universal Corp. 1 58,100 2,893,961
- --------------------------------------------------------------------------------
Vector Group Ltd. 1 98,700 1,825,950
---------------
34,373,113
- --------------------------------------------------------------------------------
ENERGY--10.5%
- --------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES--1.3%
Dresser-Rand
Group, Inc. 2 40,500 1,283,850
- --------------------------------------------------------------------------------
Global Industries
Ltd. 2 62,700 1,107,282
- --------------------------------------------------------------------------------
NATCO Group, Inc.,
Cl. A 2 24,220 1,108,792
- --------------------------------------------------------------------------------
National Oilwell
Varco, Inc. 2 46,900 2,824,787
- --------------------------------------------------------------------------------
Oil States
International, Inc. 2 92,300 3,236,038
- --------------------------------------------------------------------------------
Schlumberger Ltd. 415,500 31,353,630
- --------------------------------------------------------------------------------
Transocean, Inc. 48,600 5,958,360
- --------------------------------------------------------------------------------
Willbros Group, Inc. 1,2 20,500 683,060
---------------
47,555,799
SHARES VALUE
- --------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS--9.2%
Alon USA Energy,
Inc. 1 24,800 $ 451,360
- --------------------------------------------------------------------------------
Alpha Natural
Resources, Inc. 1,2 136,670 4,572,978
- --------------------------------------------------------------------------------
Anadarko
Petroleum Corp. 82,500 4,833,675
- --------------------------------------------------------------------------------
Bois d'Arc Energy, Inc. 2 3,800 72,770
- --------------------------------------------------------------------------------
Chevron Corp. 763,971 64,555,550
- --------------------------------------------------------------------------------
ConocoPhillips 582,843 46,813,950
- --------------------------------------------------------------------------------
Enbridge Energy
Management LLC 2 1 12
- --------------------------------------------------------------------------------
Exxon Mobil Corp. 1,997,600 172,592,640
- --------------------------------------------------------------------------------
Foundation Coal
Holdings, Inc. 83,200 4,351,360
- --------------------------------------------------------------------------------
Mariner Energy, Inc. 2 14,800 370,888
- --------------------------------------------------------------------------------
Occidental
Petroleum Corp. 265,100 17,992,337
- --------------------------------------------------------------------------------
Petrohawk Energy
Corp. 2 61,700 971,775
- --------------------------------------------------------------------------------
Stone Energy Corp. 2 69,800 2,861,800
- --------------------------------------------------------------------------------
Tesoro Corp. 45,640 1,782,242
- --------------------------------------------------------------------------------
Tusk Energy Corp. 2 226,900 354,796
- --------------------------------------------------------------------------------
Tusk Energy Corp. 2,3 258,700 404,521
- --------------------------------------------------------------------------------
Valero Energy Corp. 276,700 16,377,873
- --------------------------------------------------------------------------------
W&T Offshore, Inc. 28,000 792,120
---------------
340,152,647
- --------------------------------------------------------------------------------
FINANCIALS--20.9%
- --------------------------------------------------------------------------------
CAPITAL MARKETS--3.6%
Charles Schwab
Corp. (The) 70,600 1,574,380
- --------------------------------------------------------------------------------
GAMCO Investors,
Inc., Cl. A 1 36,200 2,147,022
- --------------------------------------------------------------------------------
Goldman Sachs
Group, Inc. (The) 368,600 74,003,822
- --------------------------------------------------------------------------------
Janus Capital
Group, Inc. 74,970 2,024,940
- --------------------------------------------------------------------------------
Lehman Brothers
Holdings, Inc. 79,800 5,120,766
- --------------------------------------------------------------------------------
Merrill Lynch &
Co., Inc. 131,200 7,399,680
17 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
CAPITAL MARKETS Continued
Morgan Stanley 805,400 $ 39,810,922
- --------------------------------------------------------------------------------
optionsXpress
Holdings, Inc. 95,500 2,589,960
---------------
134,671,492
- --------------------------------------------------------------------------------
COMMERCIAL BANKS--3.3%
U.S. Bancorp 531,600 18,047,820
- --------------------------------------------------------------------------------
Wachovia Corp. 1,701,162 66,226,237
- --------------------------------------------------------------------------------
Wells Fargo & Co. 1,120,400 38,104,804
---------------
122,378,861
- --------------------------------------------------------------------------------
CONSUMER FINANCE--0.5%
American Express Co. 302,000 14,894,640
- --------------------------------------------------------------------------------
Capital One
Financial Corp. 30,400 1,666,224
- --------------------------------------------------------------------------------
Discover Financial
Services 59,600 1,043,000
- --------------------------------------------------------------------------------
Student Loan Corp.
(The) 4,800 568,416
---------------
18,172,280
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--8.6%
Bank of America
Corp. 2,616,241 116,030,289
- --------------------------------------------------------------------------------
CIT Group, Inc. 63,600 1,778,256
- --------------------------------------------------------------------------------
Citigroup, Inc. 3,290,200 92,849,444
- --------------------------------------------------------------------------------
JPMorgan Chase
& Co. 2,265,952 107,746,018
---------------
318,404,007
- --------------------------------------------------------------------------------
INSURANCE--4.6%
Allstate Corp. 109,500 5,395,065
- --------------------------------------------------------------------------------
Ambac Financial
Group, Inc. 1 53,600 628,192
- --------------------------------------------------------------------------------
American
International
Group, Inc. 1,620,400 89,381,264
- --------------------------------------------------------------------------------
AmTrust Financial
Services, Inc. 30,200 474,140
- --------------------------------------------------------------------------------
Aon Corp. 195,300 8,499,456
- --------------------------------------------------------------------------------
Assurant, Inc. 43,800 2,842,182
- --------------------------------------------------------------------------------
Berkshire Hathaway,
Inc., Cl. B 2 2,730 12,421,500
- --------------------------------------------------------------------------------
Chubb Corp. 197,900 10,249,241
- --------------------------------------------------------------------------------
CNA Surety Corp. 2 4,400 78,452
SHARES VALUE
- --------------------------------------------------------------------------------
INSURANCE Continued
Delphi Financial
Group, Inc., Cl. A 36,660 $ 1,150,391
- --------------------------------------------------------------------------------
FBL Financial
Group, Inc., Cl. A 20,100 662,295
- --------------------------------------------------------------------------------
First American
Corp. (The) 43,230 1,882,667
- --------------------------------------------------------------------------------
Genworth Financial,
Inc., Cl. A 105,100 2,558,134
- --------------------------------------------------------------------------------
Loews Corp. 27,600 1,288,644
- --------------------------------------------------------------------------------
Max Capital
Group Ltd. 110,500 3,137,095
- --------------------------------------------------------------------------------
MBIA, Inc. 1 70,840 1,098,020
- --------------------------------------------------------------------------------
MetLife, Inc. 70,600 4,163,282
- --------------------------------------------------------------------------------
Midland Co. (The) 15,600 998,712
- --------------------------------------------------------------------------------
Montpelier
Re Holdings Ltd. 68,600 1,175,804
- --------------------------------------------------------------------------------
Navigators Group,
Inc. (The) 2 27,400 1,581,802
- --------------------------------------------------------------------------------
Platinum
Underwriters
Holdings Ltd. 11,900 401,625
- --------------------------------------------------------------------------------
ProAssurance Corp. 2 19,900 1,148,230
- --------------------------------------------------------------------------------
Progressive Corp. 22,200 412,032
- --------------------------------------------------------------------------------
RLI Corp. 20,000 1,128,000
- --------------------------------------------------------------------------------
Safeco Corp. 14,920 796,280
- --------------------------------------------------------------------------------
Torchmark Corp. 13,400 818,204
- --------------------------------------------------------------------------------
Travelers Cos., Inc.
(The) 286,300 13,771,030
---------------
168,141,739
- --------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE--0.3%
Fannie Mae 236,600 8,011,276
- --------------------------------------------------------------------------------
Washington
Mutual, Inc. 1 132,000 2,629,440
---------------
10,640,716
- --------------------------------------------------------------------------------
HEALTH CARE--10.3%
- --------------------------------------------------------------------------------
BIOTECHNOLOGY--1.3%
Alnylam
Pharmaceuticals, Inc. 1,2 38,900 1,168,556
- --------------------------------------------------------------------------------
Amgen, Inc. 2 357,600 16,660,584
- --------------------------------------------------------------------------------
Applera Corp./Celera
Genomics Group 2 33,600 514,752
18 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
SHARES VALUE
- --------------------------------------------------------------------------------
BIOTECHNOLOGY Continued
Biogen Idec, Inc. 2 234,900 $ 14,317,155
- --------------------------------------------------------------------------------
Cubist
Pharmaceuticals, Inc. 2 131,240 2,229,768
- --------------------------------------------------------------------------------
Genentech, Inc. 2 129,400 9,082,586
- --------------------------------------------------------------------------------
OSI Pharmaceuticals,
Inc. 2 80,000 3,190,400
---------------
47,163,801
- --------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--0.9%
Analogic Corp. 37,700 2,226,562
- --------------------------------------------------------------------------------
Baxter International,
Inc. 101,800 6,183,332
- --------------------------------------------------------------------------------
Intuitive Surgical, Inc. 2 7,100 1,803,400
- --------------------------------------------------------------------------------
Invacare Corp. 3,800 92,492
- --------------------------------------------------------------------------------
Medtronic, Inc. 362,590 16,885,816
- --------------------------------------------------------------------------------
Meridian Bioscience,
Inc. 1 90,800 2,852,028
- --------------------------------------------------------------------------------
Steris Corp. 116,600 2,889,348
---------------
32,932,978
- --------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES--4.0%
Aetna, Inc. 329,000 17,522,540
- --------------------------------------------------------------------------------
AMERIGROUP Corp. 2 99,800 3,744,496
- --------------------------------------------------------------------------------
AmerisourceBergen
Corp. 42,700 1,991,955
- --------------------------------------------------------------------------------
Apria Healthcare
Group, Inc. 2 124,750 2,647,195
- --------------------------------------------------------------------------------
Centene Corp. 2 114,300 2,736,342
- --------------------------------------------------------------------------------
Chemed Corp. 1 51,650 2,646,030
- --------------------------------------------------------------------------------
Coventry Health
Care, Inc. 2 33,500 1,895,430
- --------------------------------------------------------------------------------
Emergency Medical
Services LP, Cl. A 1,2 38,400 1,181,568
- --------------------------------------------------------------------------------
Express Scripts, Inc. 2 206,900 13,963,681
- --------------------------------------------------------------------------------
Health Net, Inc. 2 33,800 1,571,362
- --------------------------------------------------------------------------------
Healthspring, Inc. 2 138,460 2,864,737
- --------------------------------------------------------------------------------
Humana, Inc. 2 39,800 3,195,940
- --------------------------------------------------------------------------------
Lincare Holdings, Inc. 2 41,030 1,370,812
- --------------------------------------------------------------------------------
McKesson Corp. 163,900 10,291,281
- --------------------------------------------------------------------------------
Medco Health
Solutions, Inc. 2 358,400 17,948,672
SHARES VALUE
- --------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES Continued
Molina
Healthcare, Inc. 1,2 66,474 $ 2,267,428
- --------------------------------------------------------------------------------
Omnicare, Inc. 58,000 1,284,120
- --------------------------------------------------------------------------------
UnitedHealth
Group, Inc. 426,650 21,690,886
- --------------------------------------------------------------------------------
Universal American
Corp. 2 36,300 759,759
- --------------------------------------------------------------------------------
WellCare Health
Plans, Inc. 1,2 75,000 3,524,250
- --------------------------------------------------------------------------------
WellPoint, Inc. 2 426,790 33,374,978
---------------
148,473,462
- --------------------------------------------------------------------------------
HEALTH CARE TECHNOLOGY--0.0%
Omnicell, Inc. 2 45,100 1,131,108
- --------------------------------------------------------------------------------
Phase Forward, Inc. 2 27,000 465,750
---------------
1,596,858
- --------------------------------------------------------------------------------
LIFE SCIENCES TOOLS & SERVICES--0.3%
Applera Corp./Applied
Biosystems Group 47,500 1,497,675
- --------------------------------------------------------------------------------
Dionex Corp. 1,2 38,800 2,719,880
- --------------------------------------------------------------------------------
Invitrogen Corp. 2 26,000 2,227,420
- --------------------------------------------------------------------------------
Parexel International
Corp. 2 36,800 2,002,288
- --------------------------------------------------------------------------------
Varian, Inc. 2 53,000 2,875,250
---------------
11,322,513
- --------------------------------------------------------------------------------
PHARMACEUTICALS--3.8%
Abbott Laboratories 31,100 1,750,930
- --------------------------------------------------------------------------------
Endo Pharmaceuticals
Holdings, Inc. 2 54,460 1,423,584
- --------------------------------------------------------------------------------
Forest Laboratories,
Inc. 2 122,900 4,887,733
- --------------------------------------------------------------------------------
Johnson & Johnson 956,800 60,527,168
- --------------------------------------------------------------------------------
King Pharmaceuticals,
Inc. 2 143,100 1,501,119
- --------------------------------------------------------------------------------
Medicis Pharmaceutical
Corp., Cl. A 1 112,850 2,291,984
- --------------------------------------------------------------------------------
Merck & Co., Inc. 274,800 12,717,744
- --------------------------------------------------------------------------------
Pfizer, Inc. 1,317,900 30,825,681
- --------------------------------------------------------------------------------
Sepracor, Inc. 2 53,940 1,523,266
- --------------------------------------------------------------------------------
Valeant
Pharmaceuticals
International, Inc. 2 226,430 2,563,188
19 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
PHARMACEUTICALS Continued
Wyeth 432,700 $ 17,221,460
- --------------------------------------------------------------------------------
Xenoport, Inc. 2 50,200 3,080,272
---------------
140,314,129
- --------------------------------------------------------------------------------
INDUSTRIALS--10.6%
- --------------------------------------------------------------------------------
AEROSPACE & DEFENSE--3.0%
Boeing Co. 259,900 21,618,482
- --------------------------------------------------------------------------------
Ceradyne, Inc. 1,2 58,850 2,833,628
- --------------------------------------------------------------------------------
Cubic Corp. 65,300 1,753,958
- --------------------------------------------------------------------------------
DRS Technologies, Inc. 65,300 3,504,651
- --------------------------------------------------------------------------------
DynCorp
International, Inc.,
Cl. A 2 106,460 2,189,882
- --------------------------------------------------------------------------------
HEICO Corp. 1 24,360 1,084,264
- --------------------------------------------------------------------------------
Honeywell
International, Inc. 152,400 9,002,268
- --------------------------------------------------------------------------------
L-3 Communications
Holdings, Inc. 105,500 11,692,565
- --------------------------------------------------------------------------------
Lockheed Martin
Corp. 54,900 5,924,808
- --------------------------------------------------------------------------------
Northrop Grumman
Corp. 114,500 9,086,720
- --------------------------------------------------------------------------------
Raytheon Co. 284,200 18,512,788
- --------------------------------------------------------------------------------
Teledyne Technologies,
Inc. 2 2,600 134,238
- --------------------------------------------------------------------------------
United Technologies
Corp. 315,200 23,138,832
---------------
110,477,084
- --------------------------------------------------------------------------------
AIR FREIGHT & LOGISTICS--0.1%
Atlas Air Worldwide
Holdings, Inc. 1,2 38,900 1,942,666
- --------------------------------------------------------------------------------
AIRLINES--0.4%
AMR Corp. 2 95,700 1,334,058
- --------------------------------------------------------------------------------
Continental Airlines,
Inc., Cl. B 2 58,500 1,591,785
- --------------------------------------------------------------------------------
Copa Holdings SA,
Cl. A 61,120 2,385,514
- --------------------------------------------------------------------------------
Northwest Airlines
Corp. 2 47,400 886,854
- --------------------------------------------------------------------------------
Republic Airways
Holdings, Inc. 2 30,000 598,800
- --------------------------------------------------------------------------------
SkyWest, Inc. 78,400 2,039,968
SHARES VALUE
- --------------------------------------------------------------------------------
AIRLINES Continued
UAL Corp. 1 38,600 $ 1,464,870
- --------------------------------------------------------------------------------
US Airways Group,
Inc. 1,2 177,500 2,451,275
---------------
12,753,124
- --------------------------------------------------------------------------------
BUILDING PRODUCTS--0.1%
Goodman Global,
Inc. 2 79,400 1,993,734
- --------------------------------------------------------------------------------
Lennox
International, Inc. 53,600 1,991,776
- --------------------------------------------------------------------------------
USG Corp. 1,2 33,400 1,222,440
---------------
5,207,950
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--0.9%
Administaff, Inc. 77,970 2,339,880
- --------------------------------------------------------------------------------
Advisory Board Co.
(The) 2 36,800 2,344,896
- --------------------------------------------------------------------------------
ChoicePoint, Inc. 2 37,600 1,251,704
- --------------------------------------------------------------------------------
Corporate Executive
Board Co. (The) 1 19,100 1,099,205
- --------------------------------------------------------------------------------
Deluxe Corp. 98,760 2,401,843
- --------------------------------------------------------------------------------
HNI Corp. 1 84,900 2,857,734
- --------------------------------------------------------------------------------
Ikon Office
Solutions, Inc. 1 12,630 103,313
- --------------------------------------------------------------------------------
Interface, Inc., Cl. A 148,100 2,363,676
- --------------------------------------------------------------------------------
Knoll, Inc. 149,840 2,001,862
- --------------------------------------------------------------------------------
Korn-Ferry
International 2 61,600 991,144
- --------------------------------------------------------------------------------
Layne Christensen
Co. 2 49,900 1,841,310
- --------------------------------------------------------------------------------
Miller (Herman), Inc. 111,600 3,546,648
- --------------------------------------------------------------------------------
Resources
Connection, Inc. 128,140 2,681,970
- --------------------------------------------------------------------------------
Rollins, Inc. 93,100 1,656,249
- --------------------------------------------------------------------------------
Steelcase, Inc., Cl. A 139,600 2,140,068
- --------------------------------------------------------------------------------
TeleTech Holdings,
Inc. 2 44,100 870,093
- --------------------------------------------------------------------------------
TrueBlue, Inc. 2 20,150 287,541
- --------------------------------------------------------------------------------
United Stationers,
Inc. 2 37,000 2,044,620
- --------------------------------------------------------------------------------
Waste Connections,
Inc. 2 70,317 2,050,444
---------------
34,874,200
20 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
SHARES VALUE
- --------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING--0.1%
Fluor Corp. 8,200 $ 997,694
- --------------------------------------------------------------------------------
Perini Corp. 2 66,690 2,330,816
- --------------------------------------------------------------------------------
Shaw Group, Inc. (The) 2 24,500 1,384,250
---------------
4,712,760
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--0.4%
Acuity Brands, Inc. 82,800 3,768,228
- --------------------------------------------------------------------------------
Belden, Inc. 10,300 435,690
- --------------------------------------------------------------------------------
GrafTech
International Ltd. 2 195,240 2,938,362
- --------------------------------------------------------------------------------
Rockwell Automation,
Inc. 29,900 1,704,898
- --------------------------------------------------------------------------------
Smith (A.O.) Corp. 47,600 1,666,000
- --------------------------------------------------------------------------------
Thomas & Betts Corp. 2 36,000 1,629,000
- --------------------------------------------------------------------------------
Woodward
Governor Co. 21,050 1,321,519
---------------
13,463,697
- --------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES--4.5%
3M Co. 230,100 18,327,465
- --------------------------------------------------------------------------------
General Electric Co. 3,776,600 133,729,406
- --------------------------------------------------------------------------------
Teleflex, Inc. 8,500 502,520
- --------------------------------------------------------------------------------
Tyco International Ltd. 312,000 12,280,320
- --------------------------------------------------------------------------------
Walter Industries, Inc. 18,500 775,520
---------------
165,615,231
- --------------------------------------------------------------------------------
MACHINERY--0.9%
Actuant Corp., Cl. A 1 22,600 617,658
- --------------------------------------------------------------------------------
Astec Industries, Inc. 2 37,500 1,157,625
- --------------------------------------------------------------------------------
Deere & Co. 70,000 6,143,200
- --------------------------------------------------------------------------------
Eaton Corp. 22,700 1,878,652
- --------------------------------------------------------------------------------
EnPro Industries, Inc. 2 22,800 684,000
- --------------------------------------------------------------------------------
Gardner Denver, Inc. 2 95,500 3,098,020
- --------------------------------------------------------------------------------
Ingersoll-Rand Co.
Ltd., Cl. A 67,700 2,675,504
- --------------------------------------------------------------------------------
Mueller Industries, Inc. 83,700 2,343,600
- --------------------------------------------------------------------------------
Parker-Hannifin Corp. 107,750 7,284,978
- --------------------------------------------------------------------------------
Robbins & Myers, Inc. 44,970 2,980,612
- --------------------------------------------------------------------------------
SPX Corp. 18,110 1,821,866
- --------------------------------------------------------------------------------
Tennant Co. 24,300 801,657
- --------------------------------------------------------------------------------
Toro Co. (The) 62,110 3,064,507
---------------
34,551,879
SHARES VALUE
- --------------------------------------------------------------------------------
MARINE--0.1%
Excel Maritime
Carriers Ltd. 47,420 $ 1,804,805
- --------------------------------------------------------------------------------
TBS International
Ltd., Cl. A 2 55,900 1,862,029
---------------
3,666,834
- --------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS--0.1%
Applied Industrial
Technologies, Inc. 44,900 1,355,531
- --------------------------------------------------------------------------------
United Rentals, Inc. 2 163,200 2,978,400
---------------
4,333,931
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--27.2%
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--5.0%
ADC
Telecommunications,
Inc. 2 200,700 2,968,353
- --------------------------------------------------------------------------------
ADTRAN, Inc. 135,310 2,815,801
- --------------------------------------------------------------------------------
Avocent Corp. 2 56,900 944,540
- --------------------------------------------------------------------------------
Blue Coat Systems, Inc. 2 79,430 2,134,284
- --------------------------------------------------------------------------------
Cisco Systems, Inc. 2 2,391,000 58,579,500
- --------------------------------------------------------------------------------
CommScope, Inc. 2 34,000 1,507,900
- --------------------------------------------------------------------------------
Comtech
Telecommunications
Corp. 1,2 55,160 2,471,168
- --------------------------------------------------------------------------------
Dycom Industries,
Inc. 1,2 105,730 2,497,343
- --------------------------------------------------------------------------------
EchoStar Holding
Corp. 2 21,500 628,230
- --------------------------------------------------------------------------------
Foundry Networks,
Inc. 2 81,300 1,121,940
- --------------------------------------------------------------------------------
InterDigital, Inc. 1,2 98,900 1,998,769
- --------------------------------------------------------------------------------
Juniper Networks, Inc. 2 513,200 13,933,380
- --------------------------------------------------------------------------------
MasTec, Inc. 2 17,000 141,950
- --------------------------------------------------------------------------------
Motorola, Inc. 1,033,600 11,917,408
- --------------------------------------------------------------------------------
Netgear, Inc. 2 72,600 1,935,516
- --------------------------------------------------------------------------------
Plantronics, Inc. 107,300 2,049,430
- --------------------------------------------------------------------------------
QUALCOMM, Inc. 1,792,000 76,016,640
- --------------------------------------------------------------------------------
Tellabs, Inc. 1,2 148,900 1,015,498
- --------------------------------------------------------------------------------
ViaSat, Inc. 2 74,000 1,536,980
---------------
186,214,630
21 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS--7.5%
Apple, Inc. 2 303,600 $ 41,095,296
- --------------------------------------------------------------------------------
Brocade
Communications
Systems, Inc. 2 197,900 1,363,531
- --------------------------------------------------------------------------------
Dell, Inc. 2 1,736,200 34,793,448
- --------------------------------------------------------------------------------
Electronics for
Imaging, Inc. 2 64,400 950,544
- --------------------------------------------------------------------------------
EMC Corp. 2 1,005,700 15,960,459
- --------------------------------------------------------------------------------
Emulex Corp. 2 170,810 2,664,636
- --------------------------------------------------------------------------------
Hewlett-Packard Co. 1,973,100 86,323,125
- --------------------------------------------------------------------------------
International Business
Machines Corp. 697,900 74,912,586
- --------------------------------------------------------------------------------
Lexmark International,
Inc., Cl. A 2 42,200 1,528,062
- --------------------------------------------------------------------------------
NCR Corp. 2 62,500 1,342,500
- --------------------------------------------------------------------------------
Network Appliance,
Inc. 2 74,850 1,738,017
- --------------------------------------------------------------------------------
QLogic Corp. 2 264,100 3,776,630
- --------------------------------------------------------------------------------
Seagate Technology 276,800 5,610,736
- --------------------------------------------------------------------------------
Sun Microsystems, Inc. 2 171,100 2,994,250
- --------------------------------------------------------------------------------
Synaptics, Inc. 2 63,310 1,677,715
- --------------------------------------------------------------------------------
Teradata Corp. 2 28,100 669,342
---------------
277,400,877
- --------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--0.8%
Agilent Technologies,
Inc. 2 506,300 17,168,633
- --------------------------------------------------------------------------------
Arrow Electronics,
Inc. 2 42,900 1,468,038
- --------------------------------------------------------------------------------
Avnet, Inc. 2 45,320 1,613,845
- --------------------------------------------------------------------------------
Checkpoint Systems,
Inc. 2 116,600 2,770,416
- --------------------------------------------------------------------------------
Dolby Laboratories,
Inc., Cl. A 2 13,700 590,333
- --------------------------------------------------------------------------------
National Instruments
Corp. 42,400 1,138,864
- --------------------------------------------------------------------------------
Rofin-Sinar
Technologies, Inc. 2 74,440 3,164,444
- --------------------------------------------------------------------------------
Sanmina-SCI Corp. 2 105,300 165,321
- --------------------------------------------------------------------------------
Technitrol, Inc. 40,500 917,730
---------------
28,997,624
SHARES VALUE
- --------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES--1.9%
CNET Networks, Inc. 1,2 107,100 $ 845,019
- --------------------------------------------------------------------------------
Digital River, Inc. 1,2 85,400 3,202,500
- --------------------------------------------------------------------------------
eBay, Inc. 2 447,200 12,025,208
- --------------------------------------------------------------------------------
Google, Inc., Cl. A 2 79,400 44,805,420
- --------------------------------------------------------------------------------
j2 Global
Communications, Inc. 2 122,230 2,678,059
- --------------------------------------------------------------------------------
Open Text Corp. 1,2 66,450 2,051,976
- --------------------------------------------------------------------------------
United Online, Inc. 1 206,490 2,306,493
- --------------------------------------------------------------------------------
ValueClick, Inc. 2 18,500 403,855
- --------------------------------------------------------------------------------
VeriSign, Inc. 2 56,600 1,919,872
---------------
70,238,402
- --------------------------------------------------------------------------------
IT SERVICES--1.7%
Accenture Ltd., Cl. A 466,500 16,150,230
- --------------------------------------------------------------------------------
Alliance Data
Systems Corp. 2 21,000 1,061,970
- --------------------------------------------------------------------------------
Automatic Data
Processing, Inc. 366,600 14,872,962
- --------------------------------------------------------------------------------
Broadridge Financial
Solutions, Inc. 105,000 2,274,300
- --------------------------------------------------------------------------------
CACI International,
Inc., Cl. A 2 62,400 2,720,016
- --------------------------------------------------------------------------------
Computer Sciences
Corp. 2 44,910 1,900,591
- --------------------------------------------------------------------------------
DST Systems, Inc. 2 20,200 1,444,300
- --------------------------------------------------------------------------------
Electronic Data
Systems Corp. 231,100 4,645,110
- --------------------------------------------------------------------------------
Gartner, Inc., Cl. A 2 142,300 2,113,155
- --------------------------------------------------------------------------------
Heartland Payment
Systems, Inc. 1 91,600 2,224,048
- --------------------------------------------------------------------------------
Hewitt Associates,
Inc. 2 42,700 1,587,159
- --------------------------------------------------------------------------------
ManTech International
Corp. 2 48,000 1,963,200
- --------------------------------------------------------------------------------
Maximus, Inc. 1 65,500 2,310,840
- --------------------------------------------------------------------------------
MPS Group, Inc. 2 110,380 1,109,319
- --------------------------------------------------------------------------------
NeuStar, Inc., Cl. A 2 33,900 1,007,169
- --------------------------------------------------------------------------------
SAIC, Inc. 2 41,800 790,020
- --------------------------------------------------------------------------------
Sapient Corp. 2 98,500 690,485
- --------------------------------------------------------------------------------
SRA International,
Inc., Cl. A 2 20,500 562,315
22 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
SHARES VALUE
- --------------------------------------------------------------------------------
IT SERVICES Continued
Syntel, Inc. 1 22,381 $ 663,149
- --------------------------------------------------------------------------------
Unisys Corp. 2 626,600 2,606,656
- --------------------------------------------------------------------------------
Western Union Co. 46,300 1,037,120
---------------
63,734,114
- --------------------------------------------------------------------------------
OFFICE ELECTRONICS--0.2%
Xerox Corp. 460,000 7,084,000
- --------------------------------------------------------------------------------
Zebra Technologies
Corp., Cl. A 2 38,500 1,182,335
---------------
8,266,335
- --------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--4.1%
Amkor Technology,
Inc. 1,2 295,620 2,258,537
- --------------------------------------------------------------------------------
Analog Devices, Inc. 101,350 2,874,286
- --------------------------------------------------------------------------------
Applied Materials, Inc. 922,400 16,529,408
- --------------------------------------------------------------------------------
Atmel Corp. 2 116,300 367,508
- --------------------------------------------------------------------------------
ATMI, Inc. 2 84,960 2,234,448
- --------------------------------------------------------------------------------
Brooks Automation,
Inc. 2 105,050 1,291,065
- --------------------------------------------------------------------------------
Cabot Microelectronics
Corp. 1,2 67,400 2,330,692
- --------------------------------------------------------------------------------
Cymer, Inc. 1,2 74,510 2,012,515
- --------------------------------------------------------------------------------
Entegris, Inc. 1,2 296,800 2,285,360
- --------------------------------------------------------------------------------
FEI Co. 2 105,160 2,382,926
- --------------------------------------------------------------------------------
Integrated Device
Technology, Inc. 2 307,300 2,289,385
- --------------------------------------------------------------------------------
Intel Corp. 2,191,500 46,459,800
- --------------------------------------------------------------------------------
Intersil Corp., Cl. A 57,000 1,312,710
- --------------------------------------------------------------------------------
Lam Research Corp. 2 35,610 1,367,068
- --------------------------------------------------------------------------------
Linear Technology
Corp. 1 56,300 1,557,821
- --------------------------------------------------------------------------------
MEMC Electronic
Materials, Inc. 2 11,200 800,352
- --------------------------------------------------------------------------------
MKS Instruments,
Inc. 2 141,600 2,633,760
- --------------------------------------------------------------------------------
National
Semiconductor Corp. 87,800 1,618,154
- --------------------------------------------------------------------------------
Novellus Systems, Inc. 2 57,410 1,364,062
- --------------------------------------------------------------------------------
NVIDIA Corp. 2 471,300 11,589,267
- --------------------------------------------------------------------------------
ON Semiconductor
Corp. 1,2 164,790 1,067,839
- --------------------------------------------------------------------------------
PMC-Sierra, Inc. 2 436,790 2,048,545
SHARES VALUE
- --------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT
Continued
Rambus, Inc. 1,2 166,100 $ 3,232,306
- --------------------------------------------------------------------------------
RF Micro Devices,
Inc. 1,2 531,940 1,718,166
- --------------------------------------------------------------------------------
Semtech Corp. 2 164,390 2,099,260
- --------------------------------------------------------------------------------
Sigma Designs, Inc. 1,2 53,200 2,405,704
- --------------------------------------------------------------------------------
Skyworks Solutions,
Inc. 2 350,100 2,818,305
- --------------------------------------------------------------------------------
Standard
Microsystems Corp. 2 32,600 975,392
- --------------------------------------------------------------------------------
Tessera Technologies,
Inc. 2 33,100 1,296,527
- --------------------------------------------------------------------------------
Texas Instruments,
Inc. 650,800 20,129,244
- --------------------------------------------------------------------------------
TriQuint
Semiconductor, Inc. 2 15,300 72,522
- --------------------------------------------------------------------------------
Varian Semiconductor
Equipment
Associates, Inc. 2 38,100 1,227,201
- --------------------------------------------------------------------------------
Verigy Ltd. 2 91,373 1,907,868
- --------------------------------------------------------------------------------
Xilinx, Inc. 90,900 1,987,983
- --------------------------------------------------------------------------------
Zoran Corp. 2 137,210 1,619,078
---------------
150,165,064
- --------------------------------------------------------------------------------
SOFTWARE--6.0%
Activision, Inc. 2 80,000 2,069,600
- --------------------------------------------------------------------------------
Adobe Systems, Inc. 2 183,700 6,416,641
- --------------------------------------------------------------------------------
Advent Software, Inc. 1,2 53,400 2,411,544
- --------------------------------------------------------------------------------
Ansys, Inc. 2 39,100 1,364,981
- --------------------------------------------------------------------------------
Aspen Technology, Inc. 2 196,120 2,755,486
- --------------------------------------------------------------------------------
Autodesk, Inc. 2 44,050 1,812,658
- --------------------------------------------------------------------------------
BEA Systems, Inc. 2 92,200 1,723,218
- --------------------------------------------------------------------------------
Blackbaud, Inc. 88,000 2,434,960
- --------------------------------------------------------------------------------
Blackboard, Inc. 1,2 67,800 2,371,644
- --------------------------------------------------------------------------------
BMC Software, Inc. 2 58,030 1,859,281
- --------------------------------------------------------------------------------
CA, Inc. 157,500 3,469,725
- --------------------------------------------------------------------------------
Cadence Design
Systems, Inc. 2 95,900 973,385
- --------------------------------------------------------------------------------
Check Point Software
Technologies Ltd. 2 56,800 1,209,840
- --------------------------------------------------------------------------------
Citrix Systems, Inc. 2 45,900 1,589,058
23 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
SOFTWARE Continued
Cognos, Inc. 2 27,200 $ 1,577,600
- --------------------------------------------------------------------------------
Compuware Corp. 2 185,500 1,576,750
- --------------------------------------------------------------------------------
Concur Technologies,
Inc. 2 90,730 3,180,994
- --------------------------------------------------------------------------------
Fair Isaac Corp. 1 95,030 2,423,265
- --------------------------------------------------------------------------------
Henry (Jack) &
Associates, Inc. 87,900 2,160,582
- --------------------------------------------------------------------------------
Informatica Corp. 2 181,800 3,510,558
- --------------------------------------------------------------------------------
Intuit, Inc. 2 65,900 2,022,471
- --------------------------------------------------------------------------------
Lawson Software, Inc. 1,2 287,700 2,500,113
- --------------------------------------------------------------------------------
McAfee, Inc. 2 45,560 1,533,550
- --------------------------------------------------------------------------------
MICROS Systems, Inc. 2 21,220 1,306,728
- --------------------------------------------------------------------------------
Microsoft Corp. 3,466,246 112,999,620
- --------------------------------------------------------------------------------
MicroStrategy, Inc.,
Cl. A 2 31,500 2,296,980
- --------------------------------------------------------------------------------
Net 1 UEPS
Technologies, Inc. 2 83,700 2,400,516
- --------------------------------------------------------------------------------
Novell, Inc. 2 205,500 1,306,980
- --------------------------------------------------------------------------------
Oracle Corp. 2 1,317,200 27,068,460
- --------------------------------------------------------------------------------
Progress Software
Corp. 2 64,100 1,892,232
- --------------------------------------------------------------------------------
Red Hat, Inc. 2 76,200 1,423,416
- --------------------------------------------------------------------------------
Salesforce.com, Inc. 2 28,700 1,500,436
- --------------------------------------------------------------------------------
Sybase, Inc. 2 25,900 730,898
- --------------------------------------------------------------------------------
Symantec Corp. 2 648,800 11,632,984
- --------------------------------------------------------------------------------
Synchronoss
Technologies, Inc. 1,2 24,900 530,370
- --------------------------------------------------------------------------------
Synopsys, Inc. 2 77,000 1,695,540
- --------------------------------------------------------------------------------
Ultimate Software
Group, Inc. (The) 2 2,100 56,805
- --------------------------------------------------------------------------------
Wind River Systems,
Inc. 2 231,000 1,938,090
---------------
221,727,959
- --------------------------------------------------------------------------------
MATERIALS--3.3%
- --------------------------------------------------------------------------------
CHEMICALS--1.5%
Arch Chemicals, Inc. 64,300 2,164,981
- --------------------------------------------------------------------------------
Cabot Corp. 1 46,100 1,370,553
- --------------------------------------------------------------------------------
Celanese Corp., Series A 58,760 2,184,697
- --------------------------------------------------------------------------------
Dow Chemical Co.
(The) 148,900 5,756,474
SHARES VALUE
- --------------------------------------------------------------------------------
CHEMICALS Continued
Eastman Chemical Co. 25,300 $ 1,671,571
- --------------------------------------------------------------------------------
Fuller (H.B.) Co. 114,170 2,370,169
- --------------------------------------------------------------------------------
Monsanto Co. 195,800 22,015,752
- --------------------------------------------------------------------------------
Mosaic Co. (The) 2 92,200 8,391,122
- --------------------------------------------------------------------------------
OM Group, Inc. 2 60,000 3,442,800
- --------------------------------------------------------------------------------
Scotts Miracle-Gro
Co. (The), Cl. A 34,200 1,335,168
- --------------------------------------------------------------------------------
Sensient
Technologies Corp. 57,200 1,519,232
- --------------------------------------------------------------------------------
Terra Industries, Inc. 2 40,810 1,839,307
- --------------------------------------------------------------------------------
W.R. Grace & Co. 1,2 124,550 2,817,321
- --------------------------------------------------------------------------------
Zep, Inc. 16,600 274,232
---------------
57,153,379
- --------------------------------------------------------------------------------
CONTAINERS & PACKAGING--0.2%
Owens-Illinois, Inc. 2 41,600 2,096,640
- --------------------------------------------------------------------------------
Packaging Corp.
of America 52,300 1,267,752
- --------------------------------------------------------------------------------
Rock-Tenn Co., Cl. A 98,030 2,802,678
---------------
6,167,070
- --------------------------------------------------------------------------------
METALS & MINING--1.5%
AK Steel Holding
Corp. 2 35,630 1,702,401
- --------------------------------------------------------------------------------
Brush Engineered
Materials, Inc. 2 45,200 1,293,624
- --------------------------------------------------------------------------------
Carpenter
Technology Corp. 24,020 1,480,593
- --------------------------------------------------------------------------------
Century Aluminum
Co. 1,2 58,370 3,034,656
- --------------------------------------------------------------------------------
Commercial Metals
Co. 49,000 1,389,150
- --------------------------------------------------------------------------------
Compass Minerals
International, Inc. 50,110 2,125,666
- --------------------------------------------------------------------------------
Freeport-McMoRan
Copper & Gold, Inc.,
Cl. B 65,500 5,831,465
- --------------------------------------------------------------------------------
Hecla Mining Co. 1,2 324,280 3,015,804
- --------------------------------------------------------------------------------
Metal Management,
Inc. 1 18,600 924,048
- --------------------------------------------------------------------------------
Nucor Corp. 218,000 12,600,400
- --------------------------------------------------------------------------------
Quanex Corp. 77,450 4,059,155
24 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
SHARES VALUE
- --------------------------------------------------------------------------------
METALS & MINING Continued
Reliance Steel &
Aluminum Co. 28,600 $ 1,407,406
- --------------------------------------------------------------------------------
Schnitzer Steel
Industries, Inc. 1 44,100 2,498,706
- --------------------------------------------------------------------------------
Southern Copper
Corp. 1 96,040 9,012,394
- --------------------------------------------------------------------------------
Steel Dynamics, Inc. 30,700 1,601,005
- --------------------------------------------------------------------------------
United States Steel
Corp. 33,755 3,446,723
- --------------------------------------------------------------------------------
Worthington
Industries, Inc. 1 138,100 2,263,459
---------------
57,686,655
- --------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS--0.1%
International Paper
Co. 88,900 2,867,025
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--3.4%
- --------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES--3.1%
AT&T, Inc. 2,009,000 77,326,410
- --------------------------------------------------------------------------------
Cbeyond, Inc. 2 64,220 2,166,783
- --------------------------------------------------------------------------------
CenturyTel, Inc. 45,530 1,680,512
- --------------------------------------------------------------------------------
Cincinnati Bell, Inc. 2 589,130 2,285,824
- --------------------------------------------------------------------------------
Cogent
Communications
Group, Inc. 1,2 120,120 2,458,856
- --------------------------------------------------------------------------------
Embarq Corp. 34,791 1,576,032
- --------------------------------------------------------------------------------
NTELOS Holdings Corp. 92,600 1,970,528
- --------------------------------------------------------------------------------
Premiere Global
Services, Inc. 2 99,000 1,206,810
- --------------------------------------------------------------------------------
Qwest
Communications
International, Inc. 1 2,097,700 12,334,476
- --------------------------------------------------------------------------------
Verizon
Communications,
Inc. 313,500 12,176,340
---------------
115,182,571
- --------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES--0.3%
American Tower
Corp. 2 26,300 987,039
- --------------------------------------------------------------------------------
Centennial
Communications
Corp. 1,2 243,700 1,393,964
- --------------------------------------------------------------------------------
Sprint Nextel Corp. 304,300 3,204,279
SHARES VALUE
- --------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES Continued
Syniverse
Holdings, Inc. 2 148,665 $ 2,347,420
- --------------------------------------------------------------------------------
Telephone & Data
Systems, Inc. 28,200 1,487,268
---------------
9,419,970
- --------------------------------------------------------------------------------
UTILITIES--0.2%
- --------------------------------------------------------------------------------
ELECTRIC UTILITIES--0.1%
Duke Energy Corp. 72,600 1,354,716
- --------------------------------------------------------------------------------
Reliant Energy, Inc. 2 67,000 1,425,090
---------------
2,779,806
- --------------------------------------------------------------------------------
GAS UTILITIES--0.1%
Northwest
Natural Gas Co. 1 63,170 2,990,468
- --------------------------------------------------------------------------------
WGL Holdings, Inc. 58,110 1,873,457
---------------
4,863,925
---------------
Total Common Stocks
(Cost $3,568,048,683) 3,675,051,094
- --------------------------------------------------------------------------------
INVESTMENT COMPANY--0.5%
- --------------------------------------------------------------------------------
Oppenheimer Institutional Money
Market Fund, Cl. E,
4.54% 4,5
(Cost $16,743,284) 16,743,284 16,743,284
- --------------------------------------------------------------------------------
Total Investments,
at Value (excluding
Investments Purchased
with Cash Collateral
from Securities Loaned)
(Cost $3,584,791,967) 3,691,794,378
PRINCIPAL
AMOUNT
- --------------------------------------------------------------------------------
INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM
SECURITIES LOANED--4.6% 6
- --------------------------------------------------------------------------------
Undivided interest of 6.87% in joint repurchase
agreement (Principal Amount/Value
$2,500,000,000, with a maturity value
of $2,500,208,333) with BNP Paribas
Securities Corp., 3%, dated 1/31/08,
to be repurchased at $171,821,685
on 2/1/08, collateralized by
U.S. Agency Mortgages,
0%-6%, 4/1/37-1/1/38,
with a value of
$2,550,000,000 $171,807,368 171,807,368
25 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
VALUE
- --------------------------------------------------------------------------------
INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM
SECURITIES LOANED 6 Continued
- --------------------------------------------------------------------------------
Total Investments
Purchased with
Cash Collateral
from Securities
Loaned
(Cost $171,807,368) $ 171,807,368
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS,
AT VALUE
(COST $3,756,599,335) 104.4% 3,863,601,746
- --------------------------------------------------------------------------------
LIABILITIES IN
EXCESS OF
OTHER ASSETS (4.4) (163,254,827)
-----------------------
NET ASSETS 100.0% $3,700,346,919
=======================
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Partial or fully-loaned security. See Note 7 of accompanying Notes.
2. Non-income producing security.
3. Illiquid or restricted security. The aggregate value of illiquid or
restricted securities as of January 31, 2008 was $404,521, which represents
0.01% of the Fund's net assets, all of which is considered restricted. See Note
6 of accompanying Notes. Information concerning restricted securities is as
follows:
ACQUISITION UNREALIZED
SECURITY DATE COST VALUE DEPRECIATION
- -------------------------------------------------------------------------------
Tusk Energy Corp. 11/14/04 $463,330 $404,521 $58,809
4. Rate shown is the 7-day yield as of January 31, 2008.
5. Is or was an affiliate, as defined in the Investment Company Act of 1940, at
or during the period ended January 31, 2008, by virtue of the Fund owning at
least 5% of the voting securities of the issuer or as a result of the Fund and
the issuer having the same investment adviser. Transactions during the period in
which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES
JULY 31, 2007 ADDITIONS REDUCTIONS JANUARY 31, 2008
- -------------------------------------------------------------------------------------------
Oppenheimer Institutional
Money Market Fund, Cl. E 43,273,511 457,216,282 483,746,509 16,743,284
DIVIDEND
VALUE INCOME
- -------------------------------------------------------------------------------------------
Oppenheimer Institutional
Money Market Fund, Cl. E $16,743,284 $493,968
6. The security/securities have been segregated to satisfy the forward
commitment to return the cash collateral received in securities lending
transactions upon the borrower's return of the securities loaned. See Note 7 of
accompanying Notes.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
26 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
January 31, 2008
- -----------------------------------------------------------------------------------------------------
ASSETS
- -----------------------------------------------------------------------------------------------------
Investments, at value--see accompanying statement of investments:
Unaffiliated companies (cost $3,739,856,051) $ 3,846,858,462
Affiliated companies (cost $16,743,284) 16,743,284
-----------------
3,863,601,746
- -----------------------------------------------------------------------------------------------------
Cash 104,500
- -----------------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 19,132,582
Shares of beneficial interest sold 7,018,249
Dividends 3,171,343
Other 160,244
-----------------
Total assets 3,893,188,664
- -----------------------------------------------------------------------------------------------------
LIABILITIES
- -----------------------------------------------------------------------------------------------------
Return of collateral for securities loaned 171,844,258
- -----------------------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 13,778,965
Investments purchased 5,819,768
Distribution and service plan fees 735,556
Transfer and shareholder servicing agent fees 564,350
Shareholder communications 30,604
Trustees' compensation 15,341
Other 52,903
-----------------
Total liabilities 192,841,745
- -----------------------------------------------------------------------------------------------------
NET ASSETS $ 3,700,346,919
=================
- -----------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- -----------------------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 291,164
- -----------------------------------------------------------------------------------------------------
Additional paid-in capital 3,639,718,036
- -----------------------------------------------------------------------------------------------------
Accumulated net investment income 1,638,629
- -----------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments and foreign currency transactions (48,303,321)
- -----------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets
and liabilities denominated in foreign currencies 107,002,411
-----------------
NET ASSETS $ 3,700,346,919
=================
27 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited / Continued
- --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- ----------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of $2,195,094,865
and 170,978,831 shares of beneficial interest outstanding) $ 12.84
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $ 13.62
- ----------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $411,555,127 and 33,464,267 shares
of beneficial interest outstanding) $ 12.30
- ----------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $587,736,807 and 47,569,436 shares
of beneficial interest outstanding) $ 12.36
- ----------------------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $137,840,436 and 10,913,810 shares
of beneficial interest outstanding) $ 12.63
- ----------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $368,119,684 and 28,237,624 shares of beneficial interest outstanding) $ 13.04
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
28 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended January 31, 2008
- -----------------------------------------------------------------------------------------
INVESTMENT INCOME
- -----------------------------------------------------------------------------------------
Dividends:
Unaffiliated companies (net of foreign withholding taxes of $207) $ 37,716,857
Affiliated companies 493,968
- -----------------------------------------------------------------------------------------
Interest 47,418
- -----------------------------------------------------------------------------------------
Portfolio lending fees 482,809
- -----------------------------------------------------------------------------------------
Other income 47,513
---------------
Total investment income 38,788,565
- -----------------------------------------------------------------------------------------
EXPENSES
- -----------------------------------------------------------------------------------------
Management fees 13,005,921
- -----------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 3,134,306
Class B 2,414,882
Class C 3,359,775
Class N 367,078
- -----------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 2,640,140
Class B 538,259
Class C 550,180
Class N 189,320
Class Y 98,410
- -----------------------------------------------------------------------------------------
Shareholder communications:
Class A 35,980
Class B 15,225
Class C 9,885
Class N 1,327
Class Y 686
- -----------------------------------------------------------------------------------------
Custodian fees and expenses 43,922
- -----------------------------------------------------------------------------------------
Trustees' compensation 36,476
- -----------------------------------------------------------------------------------------
Administration service fees 750
- -----------------------------------------------------------------------------------------
Other 57,724
---------------
Total expenses 26,500,246
Less reduction to custodian expenses (4,843)
Less waivers and reimbursements of expenses (9,402)
---------------
Net expenses 26,486,001
- -----------------------------------------------------------------------------------------
NET INVESTMENT INCOME 12,302,564
29 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
STATEMENT OF OPERATIONS Unaudited / Continued
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- -----------------------------------------------------------------------------------------
Net realized gain on:
Investments from unaffiliated companies $ 120,085,001
Foreign currency transactions 185,324
---------------
Net realized gain 120,270,325
- -----------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on:
Investments from unaffiliated companies (416,105,123)
Translation of assets and liabilities denominated in foreign currencies (94,354)
---------------
Net change in unrealized appreciation (416,199,477)
- -----------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (283,626,588)
===============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
30 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2008 JULY 31,
(UNAUDITED) 2007
- ----------------------------------------------------------------------------------------------------------------------------
OPERATIONS
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income $ 12,302,564 $ 25,254,621
- ----------------------------------------------------------------------------------------------------------------------------
Net realized gain 120,270,325 349,776,644
- ----------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (416,199,477) 187,159,398
------------------------------------
Net increase (decrease) in net assets resulting from operations (283,626,588) 562,190,663
- ----------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ----------------------------------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (19,963,434) (15,611,867)
Class B -- --
Class C (928,401) --
Class N (861,600) (371,142)
Class Y (4,685,142) (2,046,080)
------------------------------------
(26,438,577) (18,029,089)
- ----------------------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (234,136,386) (119,664,284)
Class B (46,030,886) (23,602,300)
Class C (64,875,551) (28,105,581)
Class N (14,111,801) (5,070,143)
Class Y (35,634,158) (9,896,262)
------------------------------------
(394,788,782) (186,338,570)
- ----------------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- ----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from beneficial
interest transactions:
Class A 50,151,206 50,288,663
Class B (21,345,812) (12,981,168)
Class C 19,806,101 89,231,682
Class N 22,079,949 41,153,724
Class Y 92,904,879 173,040,825
------------------------------------
163,596,323 340,733,726
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSETS
- ----------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) (541,257,624) 698,556,730
- ----------------------------------------------------------------------------------------------------------------------------
Beginning of period 4,241,604,543 3,543,047,813
------------------------------------
End of period (including accumulated net investment income
of $1,638,629 and $15,774,642, respectively) $ 3,700,346,919 $ 4,241,604,543
====================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
31 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
JANUARY 31, 2008 YEAR ENDED JULY 31,
CLASS A (UNAUDITED) 2007 2006 2005 2004 2003
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning
of period $ 15.35 $ 14.04 $ 13.58 $ 12.69 $ 10.70 $ 9.28
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income (loss) .06 1 .12 1 .09 1 .12 1 (.02) (.01)
Net realized and unrealized gain
(loss) (1.00) 1.94 .91 1.86 2.01 1.43
--------------------------------------------------------------------------------------------
Total from investment operations (.94) 2.06 1.00 1.98 1.99 1.42
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment
income (.12) (.09) (.07) (.08) -- --
Distributions from net realized
gain (1.45) (.66) (.47) (1.01) -- --
--------------------------------------------------------------------------------------------
Total dividends and/or
distributions to shareholders (1.57) (.75) (.54) (1.09) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.84 $ 15.35 $ 14.04 $ 13.58 $ 12.69 $ 10.70
============================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET
VALUE 2 (6.79)% 14.87% 7.51% 16.16% 18.60% 15.30%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $2,195,095 $2,566,678 $2,284,257 $1,844,002 $1,213,822 $501,277
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $2,500,280 $2,691,156 $2,044,335 $1,490,786 $ 892,462 $362,221
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income (loss) 0.76% 0.80% 0.68% 0.90% 0.11% (0.02)%
Total expenses 1.09% 4,5,6 1.06% 4,5,6 1.08% 5 1.11% 5 1.17% 5,7 1.23% 5
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 61% 123% 107% 107% 134% 165%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods less than one full
year. Returns do not reflect the deduction of taxes that a shareholder would pay
on fund distributions or the redemption of fund shares.
3. Annualized for periods less than one full year.
4. Total expenses including indirect expenses from affiliated fund were as
follows:
Six Months Ended January 31, 2008 1.09%
Year Ended July 31, 2007 1.06%
5. Reduction to custodian expenses less than 0.005%.
6. Voluntary waiver or reimbursement of indirect management fees less than
0.005%.
7. Voluntary waiver of transfer agent fees less than 0.005%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
32 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
SIX MONTHS
ENDED
JANUARY 31, 2008 YEAR ENDED JULY 31,
CLASS B (UNAUDITED) 2007 2006 2005 2004 2003
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 14.71 $ 13.50 $ 13.11 $ 12.31 $ 10.47 $ 9.15
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) -- 1,2 -- 1,2 (.02) 1 .01 1 (.07) (.07)
Net realized and unrealized gain (loss) (.96) 1.87 .88 1.80 1.91 1.39
---------------------------------------------------------------------------------
Total from investment operations (.96) 1.87 .86 1.81 1.84 1.32
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income -- -- -- -- -- --
Distributions from net realized gain (1.45) (.66) (.47) (1.01) -- --
---------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (1.45) (.66) (.47) (1.01) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.30 $ 14.71 $ 13.50 $ 13.11 $ 12.31 $ 10.47
=================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 (7.20)% 14.03% 6.64% 15.17% 17.57% 14.43%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 411,555 $ 510,881 $ 479,198 $ 434,456 $ 366,608 $ 237,002
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 478,998 $ 525,389 $ 455,267 $ 403,468 $ 321,870 $ 187,066
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income (loss) 0.00% (0.01)% (0.15)% 0.06% (0.76)% (0.85)%
Total expenses 1.86% 5 1.87% 5 1.91% 1.95% 2.01% 2.12%
Expenses after payments, waivers and/or
reimbursements and reduction to
custodian expenses 1.86% 1.87% 1.91% 1.95% 2.01% 2.07%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 61% 123% 107% 107% 134% 165%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Less than $0.005 per share.
3. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods less than one full
year. Returns do not reflect the deduction of taxes that a shareholder would pay
on fund distributions or the redemption of fund shares.
4. Annualized for periods less than one full year.
5. Total expenses including indirect expenses from affiliated fund were as
follows:
Six Months Ended January 31, 2008 1.86%
Year Ended July 31, 2007 1.87%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
33 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
JANUARY 31, 2008 YEAR ENDED JULY 31,
CLASS C (UNAUDITED) 2007 2006 2005 2004 2003
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 14.78 $ 13.56 $ 13.16 $ 12.34 $ 10.48 $ 9.15
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income (loss) -- 1,2 .01 1 (.01) 1 .02 1 (.05) (.06)
Net realized and unrealized gain
(loss) (.95) 1.87 .88 1.81 1.91 1.39
--------------------------------------------------------------------------------------
Total from investment operations (.95) 1.88 .87 1.83 1.86 1.33
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.02) -- -- -- -- --
Distributions from net realized gain (1.45) (.66) (.47) (1.01) -- --
--------------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (1.47) (.66) (.47) (1.01) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.36 $ 14.78 $ 13.56 $ 13.16 $ 12.34 $ 10.48
======================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 (7.10)% 14.04% 6.69% 15.30% 17.75% 14.54%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $587,737 $680,871 $539,720 $448,492 $348,928 $198,180
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $666,253 $641,709 $489,988 $404,242 $289,046 $159,105
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income (loss) 0.06% 0.05% (0.07)% 0.16% (0.63)% (0.73)%
Total expenses 1.79% 5,6,7 1.80% 5,6,7 1.83% 6 1.85% 6 1.89% 6,8 1.95% 6
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 61% 123% 107% 107% 134% 165%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Less than $0.005 per share.
3. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods less than one full
year. Returns do not reflect the deduction of taxes that a shareholder would pay
on fund distributions or the redemption of fund shares.
4. Annualized for periods less than one full year.
5. Total expenses including indirect expenses from affiliated fund were as
follows:
Six Months Ended January 31, 2008 1.79%
Year Ended July 31, 2007 1.80%
6. Reduction to custodian expenses less than 0.005%.
7. Voluntary waiver or reimbursement of indirect management fees less than
0.005%.
8. Voluntary waiver of transfer agent fees less than 0.005%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
34 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
SIX MONTHS
ENDED
JANUARY 31, 2008 YEAR ENDED JULY 31,
CLASS N (UNAUDITED) 2007 2006 2005 2004 2003
- ----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 15.12 $ 13.84 $ 13.40 $ 12.56 $ 10.62 $ 9.23
- ----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .03 1 .07 1 .04 1 .06 1 (.04) (.03)
Net realized and unrealized gain (loss) (.98) 1.92 .90 1.84 1.98 1.42
-------------------------------------------------------------------------------
Total from investment operations (.95) 1.99 .94 1.90 1.94 1.39
- ----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.09) (.05) (.03) (.05) -- --
Distributions from net realized gain (1.45) (.66) (.47) (1.01) -- --
-------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (1.54) (.71) (.50) (1.06) -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.63 $ 15.12 $ 13.84 $ 13.40 $ 12.56 $ 10.62
===============================================================================
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 (6.99)% 14.57% 7.09% 15.62% 18.27% 15.06%
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 137,840 $ 141,253 $ 90,293 $ 58,243 $ 33,665 $ 13,369
- ----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 145,677 $ 123,744 $ 73,232 $ 46,600 $ 22,846 $ 8,524
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income (loss) 0.46% 0.45% 0.30% 0.46% (0.28)% (0.30)%
Total expenses 1.39% 4 1.39% 4 1.45% 1.54% 1.62% 1.49%
Expenses after payments, waivers and/or
reimbursements and reduction to
custodian expenses 1.39% 1.39% 1.45% 1.53% 1.54% 1.49%
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 61% 123% 107% 107% 134% 165%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods less than one full
year. Returns do not reflect the deduction of taxes that a shareholder would pay
on fund distributions or the redemption of fund shares.
3. Annualized for periods less than one full year.
4. Total expenses including indirect expenses from affiliated fund were as
follows:
Six Months Ended January 31, 2008 1.39%
Year Ended July 31, 2007 1.39%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
35 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
JANUARY 31, 2008 YEAR ENDED JULY 31,
CLASS Y (UNAUDITED) 2007 2006 2005 2004 2003
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 15.60 $ 14.25 $ 13.76 $ 12.86 $ 10.79 $ 9.31
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .09 1 .18 1 .14 1 .15 1 .05 .02
Net realized and unrealized gain (loss) (1.01) 1.97 .93 1.89 2.02 1.46
---------------------------------------------------------------------------------
Total from investment operations (.92) 2.15 1.07 2.04 2.07 1.48
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.19) (.14) (.11) (.13) -- --
Distributions from net realized gain (1.45) (.66) (.47) (1.01) -- --
---------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (1.64) (.80) (.58) (1.14) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 13.04 $ 15.60 $ 14.25 $ 13.76 $ 12.86 $ 10.79
=================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 (6.59)% 15.31% 7.94% 16.43% 19.18% 15.90%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $368,120 $341,922 $149,580 $44,303 $ 6,589 $ 4,428
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $367,618 $262,277 $ 90,378 $27,864 $ 5,921 $ 3,102
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 1.15% 1.14% 1.01% 1.14% 0.57% 0.44%
Total expenses 0.68% 4,5,6 0.68% 4,5,6 0.72% 5 0.82% 5 0.67% 5 0.77% 5
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 61% 123% 107% 107% 134% 165%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods less than one full
year. Returns do not reflect the deduction of taxes that a shareholder would pay
on fund distributions or the redemption of fund shares.
3. Annualized for periods less than one full year.
4. Total expenses including indirect expenses from affiliated fund were as
follows:
Six Months Ended January 31, 2008 0.68%
Year Ended July 31, 2007 0.68%
5. Reduction to custodian expenses less than 0.005%.
6. Voluntary waiver or reimbursement of indirect management fees less than
0.005%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
36 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Main Street Opportunity Fund (the "Fund") is registered under the
Investment Company Act of 1940, as amended, as an open-end management investment
company. The Fund's investment objective is to seek long-term capital
appreciation. The Fund's investment adviser is OppenheimerFunds, Inc. (the
"Manager"). The Fund offers Class A, Class B, Class C, Class N and Class Y
shares.
The Fund offers Class A, Class B, Class C, Class N and Class Y shares.
Class A shares are sold at their offering price, which is normally net asset
value plus a front-end sales charge. Class B, Class C and Class N shares are
sold without a front-end sales charge but may be subject to a contingent
deferred sales charge ("CDSC"). Class N shares are sold only through retirement
plans. Retirement plans that offer Class N shares may impose charges on those
accounts. Class Y shares are sold to certain institutional investors without
either a front-end sales charge or a CDSC, however, the institutional investor
may impose charges on those accounts. All classes of shares have identical
rights and voting privileges with respect to the Fund in general and exclusive
voting rights on matters that affect that class alone. Earnings, net assets and
net asset value per share may differ due to each class having its own expenses,
such as transfer and shareholder servicing agent fees and shareholder
communications, directly attributable to that class. Class A, B, C and N have
separate distribution and/or service plans. No such plan has been adopted for
Class Y shares. Class B shares will automatically convert to Class A shares 72
months after the date of purchase.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
SECURITIES VALUATION. The Fund calculates the net asset value of its shares as
of the close of the New York Stock Exchange (the "Exchange"), normally 4:00 P.M.
Eastern time, on each day the Exchange is open for trading. Securities may be
valued primarily using dealer-supplied valuations or a portfolio pricing service
authorized by the Board of Trustees. Securities traded on a registered U.S.
securities exchange are valued based on the last sale price of the security
traded on that exchange prior to the time when the Fund's assets are valued.
Securities whose principal exchange is NASDAQ(R) are valued based on the closing
price reported by NASDAQ prior to the time when the Fund's assets are valued. In
the absence of a sale, the security is valued at the last sale price on the
prior trading day, if it is within the spread of the closing "bid" and "asked"
prices, and if not, at the closing bid price. Securities traded on foreign
exchanges are valued based on the last sale price on the principal exchange on
which the security is traded, as identified by the portfolio pricing service,
prior to the time when the Fund's assets are valued. In the absence of a sale,
the security is valued at the official closing price on the principal exchange.
Corporate, government and municipal debt instruments having a remaining maturity
in excess of sixty days and all mortgage-backed securities, collateralized
mortgage obligations and other asset-backed securities will be valued at the
mean between the "bid" and "asked" prices. Securities for which market
quotations are not readily available are valued at their fair value. Securities
37 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
whose values have been materially affected by what the Manager identifies as a
significant event occurring before the Fund's assets are valued but after the
close of their respective exchanges will be fair valued. Fair value is
determined in good faith using consistently applied procedures under the
supervision of the Board of Trustees. Shares of a registered investment company
that are not traded on an exchange are valued at the acquired investment
company's net asset value per share. "Money market-type" debt instruments with
remaining maturities of sixty days or less are valued at cost adjusted by the
amortization of discount or premium to maturity (amortized cost), which
approximates market value.
- --------------------------------------------------------------------------------
FOREIGN CURRENCY TRANSLATION. The Fund's accounting records are maintained in
U.S. dollars. The values of securities denominated in foreign currencies and
amounts related to the purchase and sale of foreign securities and foreign
investment income are translated into U.S. dollars as of the close of the
Exchange, normally 4:00 P.M. Eastern time, on each day the Exchange is open for
trading. Foreign exchange rates may be valued primarily using a reliable bank,
dealer or service authorized by the Board of Trustees.
Reported net realized gains and losses from foreign currency transactions
arise from sales of portfolio securities, sales and maturities of short-term
securities, sales of foreign currencies, exchange rate fluctuations between the
trade and settlement dates on securities transactions, and the difference
between the amounts 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 appreciation and depreciation on the
translation of assets and liabilities denominated in foreign currencies arise
from changes in the values of assets and liabilities, including investments in
securities at fiscal period end, resulting from changes in exchange rates.
The effect of changes in foreign currency exchange rates on investments is
separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains and
losses in the Fund's Statement of Operations.
- --------------------------------------------------------------------------------
INVESTMENT IN OPPENHEIMER INSTITUTIONAL MONEY MARKET FUND. The Fund is permitted
to invest daily available cash balances in an affiliated money market fund. The
Fund may invest the available cash in Class E shares of Oppenheimer
Institutional Money Market Fund ("IMMF") to seek current income while preserving
liquidity. IMMF is a registered open-end management investment company,
regulated as a money market fund under the Investment Company Act of 1940, as
amended. The Manager is also the investment adviser of IMMF. The Fund's
investment in IMMF is included in the Statement of Investments. As a
shareholder, the Fund is subject to its proportional share of IMMF's Class E
expenses, including its management fee. The Manager will waive fees and/or
reimburse Fund expenses in an amount equal to the indirect management fees
incurred through the Fund's investment in IMMF.
- --------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Fund, along with other affiliated funds
advised by the
38 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
Manager, may transfer uninvested cash balances into joint trading accounts on a
daily basis. These balances are invested in one or more repurchase agreements.
Securities pledged as collateral for repurchase agreements are held by a
custodian bank until the agreements mature. Each agreement requires that the
market value of the collateral be sufficient to cover payments of interest and
principal. If the seller of the agreement defaults and the value of the
collateral declines, or if the seller enters an insolvency proceeding,
realization of the value of the collateral by the Fund may be delayed or
limited.
- --------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis to each class of shares based upon the relative proportion of net
assets represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders. Therefore, no federal income or excise tax provision is
required. The Fund files income tax returns in U.S. federal and applicable state
jurisdictions. The statute of limitations on the Fund's tax return filings
generally remain open for the three preceding fiscal reporting period ends.
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of dividends and
distributions made during the fiscal year from net investment income or net
realized gains may differ from their ultimate characterization for federal
income tax purposes. Also, due to timing of dividends and distributions, the
fiscal year in which amounts are distributed may differ from the fiscal year in
which the income or net realized gain was recorded by the Fund.
As of January 31, 2008, the Fund had available for federal income tax
purposes an estimated capital loss carryforward of zero. This estimated capital
loss carryforward represents carryforward as of the end of the last fiscal year,
increased for losses deferred under tax accounting rules to the current fiscal
year and is increased or decreased by capital losses or gains realized in the
first six months of the current fiscal year. During the six months ended January
31, 2008, it is estimated that the Fund will utilize $4,374 of capital loss
carryforward to offset realized capital gains. During the fiscal year ended July
31, 2007, the Fund did not utilize any capital loss carryforward to offset
capital gains realized in that fiscal year.
As of July 31, 2007, the Fund had available for federal income tax
purposes post-October foreign currency losses of $4,374.
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Board of Trustees has adopted a compensation
deferral plan for independent trustees that enables trustees to elect to defer
receipt of all or a portion of the annual compensation they are entitled to
receive from the Fund. For purposes of determining the amount owed to the
Trustee under the plan, deferred amounts are treated as
39 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
though equal dollar amounts had been invested in shares of the Fund or in other
Oppenheimer funds selected by the Trustee. The Fund purchases shares of the
funds selected for deferral by the Trustee in amounts equal to his or her deemed
investment, resulting in a Fund asset equal to the deferred compensation
liability. Such assets are included as a component of "Other" within the asset
section of the Statement of Assets and Liabilities. Deferral of trustees' fees
under the plan will not affect the net assets of the Fund, and will not
materially affect the Fund's assets, liabilities or net investment income per
share. Amounts will be deferred until distributed in accordance to the
compensation deferral plan.
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations and
may differ from U.S. generally accepted accounting principles, are recorded on
the ex-dividend date. Income and capital gain distributions, if any, are
declared and paid annually or at other times as deemed necessary by the Manager.
- --------------------------------------------------------------------------------
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date or upon
ex-dividend notification in the case of certain foreign dividends where the
ex-dividend date may have passed. Non-cash dividends included in dividend
income, if any, are recorded at the fair market value of the securities
received. Interest income is recognized on an accrual basis. Market discount and
premium, which are included in interest income on the Statement of Operations,
are amortized or accreted daily.
- --------------------------------------------------------------------------------
CUSTODIAN FEES. "Custodian fees and expenses" in the Statement of Operations may
include interest expense incurred by the Fund on any cash overdrafts of its
custodian account during the period. Such cash overdrafts may result from the
effects of failed trades in portfolio securities and from cash outflows
resulting from unanticipated shareholder redemption activity. The Fund pays
interest to its custodian on such cash overdrafts, to the extent they are not
offset by positive cash balances maintained by the Fund, at a rate equal to the
Federal Funds Rate plus 0.50%. The "Reduction to custodian expenses" line item,
if applicable, represents earnings on cash balances maintained by the Fund
during the period. Such interest expense and other custodian fees may be paid
with these earnings.
- --------------------------------------------------------------------------------
SECURITY TRANSACTIONS. Security transactions are recorded on the trade date.
Realized gains and losses on securities sold are determined on the basis of
identified cost.
- --------------------------------------------------------------------------------
INDEMNIFICATIONS. The Fund's organizational documents provide current and former
trustees and officers with a limited indemnification against liabilities arising
in connection with the performance of their duties to the Fund. In the normal
course of business, the Fund may also enter into contracts that provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would be dependent on future claims that may be made against the
Fund. The risk of material loss from such claims is considered remote.
40 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
- --------------------------------------------------------------------------------
OTHER. The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results could differ from those estimates.
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of $0.001 par value shares of
beneficial interest of each class. Transactions in shares of beneficial interest
were as follows:
SIX MONTHS ENDED JANUARY 31, 2008 YEAR ENDED JULY 31, 2007
SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------------------------------------------
CLASS A
Sold 20,881,909 $ 312,294,710 67,834,856 $ 1,016,927,358
Dividends and/or
distributions reinvested 16,692,633 230,358,337 8,352,096 122,608,749
Redeemed (33,755,432) (492,501,841) (71,775,981) (1,089,247,444)
-----------------------------------------------------------------------
Net increase 3,819,110 $ 50,151,206 4,410,971 $ 50,288,663
=======================================================================
- --------------------------------------------------------------------------------------------------
CLASS B
Sold 1,720,859 $ 24,542,993 6,960,228 $ 99,743,192
Dividends and/or
distributions reinvested 3,294,569 43,587,149 1,567,120 22,143,398
Redeemed (6,289,907) (89,475,954) (9,286,714) (134,867,758)
-----------------------------------------------------------------------
Net decrease (1,274,479) $ (21,345,812) (759,366) $ (12,981,168)
=======================================================================
- --------------------------------------------------------------------------------------------------
CLASS C
Sold 3,837,611 $ 55,007,914 11,601,424 $ 168,357,535
Dividends and/or
distributions reinvested 4,480,386 59,544,322 1,782,890 25,317,039
Redeemed (6,800,883) (94,746,135) (7,136,888) (104,442,892)
-----------------------------------------------------------------------
Net increase 1,517,114 $ 19,806,101 6,247,426 $ 89,231,682
=======================================================================
- --------------------------------------------------------------------------------------------------
CLASS N
Sold 1,975,489 $ 28,376,108 4,764,730 $ 70,547,026
Dividends and/or
distributions reinvested 1,017,314 13,815,129 350,116 5,069,683
Redeemed (1,422,348) (20,111,288) (2,295,339) (34,462,985)
-----------------------------------------------------------------------
Net increase 1,570,455 $ 22,079,949 2,819,507 $ 41,153,724
=======================================================================
- --------------------------------------------------------------------------------------------------
CLASS Y
Sold 4,715,117 $ 71,226,470 12,174,806 $ 185,199,803
Dividends and/or
distributions reinvested 2,878,274 40,295,835 801,871 11,931,845
Redeemed (1,268,584) (18,617,426) (1,563,298) (24,090,823)
-----------------------------------------------------------------------
Net increase 6,324,807 $ 92,904,879 11,413,379 $ 173,040,825
=======================================================================
41 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations and investments in IMMF, for the six months ended
January 31, 2008, were as follows:
PURCHASES SALES
---------------------------------------------------------------------
Investment securities $2,550,950,245 $2,806,547,329
---------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Under the investment advisory agreement, the Fund pays the
Manager a management fee based on the daily net assets of the Fund at an annual
rate as shown in the following table:
FEE SCHEDULE
-------------------------------
Up to $200 million 0.75%
Next $200 million 0.72
Next $200 million 0.69
Next $200 million 0.66
Next $4.2 billion 0.60
Over $5 billion 0.58
- --------------------------------------------------------------------------------
ADMINISTRATION SERVICE FEES. The Fund pays the Manager a fee of $1,500 per year
for preparing and filing the Fund's tax returns.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services ("OFS"), a division of the
Manager, acts as the transfer and shareholder servicing agent for the Fund. The
Fund pays OFS a per account fee. For the six months ended January 31, 2008, the
Fund paid $4,058,743 to OFS for services to the Fund.
Additionally, Class Y shares are subject to minimum fees of $10,000
annually for assets of $10 million or more. The Class Y shares are subject to
the minimum fees in the event that the per account fee does not equal or exceed
the applicable minimum fees. OFS may voluntarily waive the minimum fees.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN (12b-1) FEES. Under its General Distributor's
Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the "Distributor")
acts as the Fund's principal underwriter in the continuous public offering of
the Fund's classes of shares.
- --------------------------------------------------------------------------------
SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a Service Plan (the
"Plan") for Class A shares under Rule 12b-1 of the Investment Company Act of
1940. Under the Plan, the Fund reimburses the Distributor for a portion of its
costs incurred for services provided to accounts that hold Class A shares.
Reimbursement is made periodically at an annual rate of up to 0.25% of the
average annual net assets of Class A shares of the Fund. The Distributor
currently uses all of those fees to pay dealers, brokers, banks and other
financial institutions periodically for providing personal service and
maintenance of accounts of their customers that hold Class A shares. Any
unreimbursed expenses the Distributor incurs with respect to Class A shares in
any fiscal year cannot be recovered in subsequent periods. Fees incurred by the
Fund under the Plan are detailed in the Statement of Operations.
42 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLANS FOR CLASS B, CLASS C AND CLASS N SHARES. The Fund
has adopted Distribution and Service Plans (the "Plans") for Class B, Class C
and Class N shares under Rule 12b-1 of the Investment Company Act of 1940 to
compensate the Distributor for its services in connection with the distribution
of those shares and servicing accounts. Under the Plans, the Fund pays the
Distributor an annual asset-based sales charge of 0.75% on Class B and Class C
shares and 0.25% on Class N shares. The Distributor also receives a service fee
of 0.25% per year under each plan. If either the Class B, Class C or Class N
plan is terminated by the Fund or by the shareholders of a class, the Board of
Trustees and its independent trustees must determine whether the Distributor
shall be entitled to payment from the Fund of all or a portion of the service
fee and/or asset-based sales charge in respect to shares sold prior to the
effective date of such termination. The Distributor's aggregate uncompensated
expenses under the Plans at December 31, 2007 for Class B, Class C and Class N
shares were $2,931,380, $6,671,649 and $1,795,612, respectively. Fees incurred
by the Fund under the Plans are detailed in the Statement of Operations.
- --------------------------------------------------------------------------------
SALES CHARGES. Front-end sales charges and contingent deferred sales charges
("CDSC") do not represent expenses of the Fund. They are deducted from the
proceeds of sales of Fund shares prior to investment or from redemption proceeds
prior to remittance, as applicable. The sales charges retained by the
Distributor from the sale of shares and the CDSC retained by the Distributor on
the redemption of shares is shown in the following table for the period
indicated.
CLASS A CLASS B CLASS C CLASS N
CONTINGENT CONTINGENT CONTINGENT CONTINGENT
CLASS A DEFERRED SALES DEFERRED SALES DEFERRED SALES DEFERRED SALES
FRONT-END SALES CHARGES CHARGES CHARGES CHARGES
SIX MONTHS CHARGES RETAINED RETAINED BY RETAINED BY RETAINED BY RETAINED BY
ENDED BY DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- ------------------------------------------------------------------------------------------------------
January 31, 2008 $ 575,214 $ 19,057 $ 322,188 $ 30,467 $ 2,656
- --------------------------------------------------------------------------------
WAIVERS AND REIMBURSEMENTS OF EXPENSES. OFS has voluntarily agreed to limit
transfer and shareholder servicing agent fees for all classes to 0.35% of
average annual net assets per class. This undertaking may be amended or
withdrawn at any time.
The Manager will waive fees and/or reimburse Fund expenses in an amount
equal to the indirect management fees incurred through the Fund's investment in
IMMF. During the six months ended January 31, 2008, the Manager waived $9,402
for IMMF management fees.
- --------------------------------------------------------------------------------
5. FOREIGN CURRENCY EXCHANGE CONTRACTS
The Fund may enter into foreign currency exchange contracts ("forward
contracts") for the purchase or sale of a foreign currency at a negotiated rate
at a future date.
Foreign currency exchange contracts are reported on a schedule following
the Statement of Investments. Forward contracts will be valued daily based upon
the closing prices of the
43 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
5. FOREIGN CURRENCY EXCHANGE CONTRACTS Continued
forward currency rates determined at the close of the Exchange as provided by a
bank, dealer or pricing service. The resulting unrealized appreciation
(depreciation) is reported in the Statement of Assets and Liabilities as a
receivable or payable and in the Statement of Operations within the change in
unrealized appreciation (depreciation). At contract close, the difference
between the original cost of the contract and the value at the close date is
recorded as a realized gain (loss) in the Statement of Operations.
Risks to the Fund include both market and credit risk. Market risk is the
risk that the value of the forward contract will depreciate due to unfavorable
changes in the exchange rates. Credit risk arises from the possibility that the
counterparty will default. If the coun-terparty defaults, the Fund's loss will
consist of the net amount of contractual payments that the Fund has not yet
received.
As of January 31, 2008, the Fund had no outstanding forward contracts.
- --------------------------------------------------------------------------------
6. ILLIQUID OR RESTRICTED SECURITIES
As of January 31, 2008, investments in securities included issues that are
illiquid or restricted. Investments may be illiquid because they do not have an
active trading market, making it difficult to value them or dispose of them
promptly at an acceptable price. A restricted security may have a contractual
restriction on its resale and is valued under methods approved by the Board of
Trustees as reflecting fair value. The Fund will not invest more than 10% of its
net assets (determined at the time of purchase and reviewed periodically) in
illiquid and restricted securities. Certain restricted securities, eligible for
resale to qualified institutional purchasers, may not be subject to that
limitation. Securities that are illiquid or restricted are marked with an
applicable footnote on the Statement of Investments. Restricted securities are
reported on a schedule following the Statement of Investments.
- --------------------------------------------------------------------------------
7. SECURITIES LENDING
The Fund lends portfolio securities from time to time in order to earn
additional income in the form of fees or interest on securities received as
collateral or the investment of any cash received as collateral. The loans are
secured by collateral (either securities, letters of credit, or cash) in an
amount not less than 100% of the market value of the loaned securities during
the period of the loan. The market value of the loaned securities is determined
at the close of each business day and any additional required collateral is
delivered to the Fund on the next business day. If the borrower defaults on its
obligation to return the securities loaned because of insolvency or other
reasons, the Fund could experience delays and cost in recovering the securities
loaned or in gaining access to the collateral. The Fund continues to receive the
economic benefit of interest or dividends paid on the securities loaned in the
form of a substitute payment received from the borrower and recognizes the gain
or loss in the fair value of the securities loaned that may occur during the
term of the loan. The Fund has the right under the lending agreement to recover
the securities
44 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
from the borrower on demand. As of January 31, 2008, the Fund had on loan
securities valued at $172,798,073. Collateral of $171,844,258 was received for
the loans, all of which was received in cash and subsequently invested in
approved instruments or held as cash.
- --------------------------------------------------------------------------------
8. RECENT ACCOUNTING PRONOUNCEMENT
In September 2006, Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 157, FAIR VALUE
MEASUREMENTS. This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and expands
disclosures about fair value measurements. SFAS No. 157 applies to fair value
measurements already required or permitted by existing standards. SFAS No. 157
is effective for financial statements issued for fiscal years beginning after
November 15, 2007, and interim periods within those fiscal years. As of January
31, 2008, the Manager does not believe the adoption of SFAS No. 157 will
materially impact the financial statement amounts; however, additional
disclosures may be required about the inputs used to develop the measurements
and the effect of certain of the measurements on changes in net assets for the
period.
45 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Each year, the Board of Trustees (the "Board"), including a majority of the
independent Trustees, is required to determine whether to renew the Fund's
investment advisory agreement (the "Agreement"). The Investment Company Act of
1940, as amended, requires that the Board request and evaluate, and that the
Manager provide, such information as may be reasonably necessary to evaluate the
terms of the Agreement. The Board employs an independent consultant to prepare a
report that provides information, including comparative information, that the
Board requests for that purpose. In addition, the Board receives information
throughout the year regarding Fund services, fees, expenses and performance.
The Manager and the independent consultant provided information to the
Board on the following factors: (i) the nature, quality and extent of the
Manager's services, (ii) the investment performance of the Fund and the Manager,
(iii) the fees and expenses of the Fund, including comparative expense
information, (iv) the profitability of the Manager and its affiliates, including
an analysis of the cost of providing services, (v) whether economies of scale
are realized as the Fund grows and whether fee levels reflect these economies of
scale for Fund investors and (vi) other benefits to the Manager from its
relationship with the Fund. Outlined below is a summary of the principal
information considered by the Board as well as the Board's conclusions.
The Board was aware that there are alternatives to retaining the Manager.
NATURE, QUALITY AND EXTENT OF SERVICES. The Board considered information
about the nature and extent of the services provided to the Fund and information
regarding the Manager's key personnel who provide such services. The Manager's
duties include providing the Fund with the services of the portfolio managers
and the Manager's investment team, who provide research, analysis and other
advisory services in regard to the Fund's investments; securities trading
services; oversight of third party service providers; monitoring compliance with
applicable Fund policies and procedures and adherence to the Fund's investment
restrictions. The Manager is responsible for providing certain administrative
services to the Fund as well. Those services include providing and supervising
all administrative and clerical personnel who are necessary in order to provide
effective corporate administration for the Fund; compiling and maintaining
records with respect to the Fund's operations; preparing and filing reports
required by the Securities and Exchange Commission; preparing periodic reports
regarding the operations of the Fund for its shareholders; preparing proxy
materials for shareholder meetings; and preparing the registration statements
required by Federal and state securities laws for the sale of the Fund's shares.
The Manager also provides the Fund with office space, facilities and equipment.
46 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
The Board also considered the quality of the services provided and the
quality of the Manager's resources that are available to the Fund. The Board
took account of the fact that the Manager has had over forty years of experience
as an investment adviser and that its assets under management rank it among the
top mutual fund managers in the United States. The Board evaluated the Manager's
administrative, accounting, legal and compliance services, and information the
Board has received regarding the experience and professional qualifications of
the Manager's key personnel and the size and functions of its staff providing
investment management services to the Fund. In its evaluation of the quality of
the portfolio management services provided, the Board considered the experience
of Nikolaos D. Monoyios and Mark Zavanelli and the Manager's Main Street
investment team and analysts. Mr. Monoyios has been a portfolio manager of the
Fund since September 2000 and Mr. Zavanelli has been a portfolio manager of the
Fund since October 2003. The Board members also considered the totality of their
experiences with the Manager as directors or trustees of the Fund and other
funds advised by the Manager. In light of the foregoing, the Board concluded
that the Fund benefits from the services provided under the Agreement as a
result of the Manager's experience, reputation, personnel, operations, and
resources.
INVESTMENT PERFORMANCE OF THE MANAGER AND THE FUND. During the year, the
Manager provided information on the investment performance of the Fund and the
Manager at each Board meeting, including comparative performance information.
The Board also reviewed information, prepared by the Manager and by the
independent consultant, comparing the Fund's historical performance to relevant
market indices and to the performance of other retail front-end load and no load
multi-cap core funds (including both funds advised by the Manager and funds
advised by other investment advisers). The Board noted that the Fund's one-year,
three-year, and five-year performance was better than its peer group median.
COSTS OF SERVICES AND PROFITS REALIZED BY THE MANAGER. The Board
considered information regarding the Manager's costs in serving as the Fund's
investment adviser, including the costs associated with the personnel and
systems necessary to manage the Fund, and information regarding the Manager's
profitability from its relationship with the Fund. The Board reviewed the fees
paid to the Manager and the other expenses borne by the Fund. The Board also
considered the comparability of the fees charged and the services provided to
the Fund to the fees and services for other clients or accounts advised by the
Manager. The independent consultant provided comparative data in regard to the
fees and expenses of the Fund and other multi-cap core funds with comparable
asset levels and distribution features. The Board noted that the Fund's
contractual and actual management fees are lower than its peer group median.
47 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited / Continued
- --------------------------------------------------------------------------------
ECONOMIES OF SCALE. The Board reviewed whether the Manager may realize
economies of scale in managing and supporting the Fund. The Board noted that the
Fund currently has management fee breakpoints, which are intended to share with
Fund shareholders economies of scale that may exist as the Fund's assets grow.
OTHER BENEFITS TO THE MANAGER. In addition to considering the profits
realized by the Manager, the Board considered information that was provided
regarding the direct and indirect benefits the Manager receives as a result of
its relationship with the Fund, including compensation paid to the Manager's
affiliates and research provided to the Manager in connection with permissible
brokerage arrangements (soft dollar arrangements). The Board also considered
that the Manager must be able to pay and retain experienced professional
personnel at competitive rates to provide quality services to the Fund and that
maintaining the financial viability of the Manager is important in order for the
Manager to continue to provide significant services to the Fund and its
shareholders.
CONCLUSIONS. These factors were also considered by the independent
Trustees meeting separately from the full Board, assisted by experienced counsel
to the Fund and to the independent Trustees. Fund counsel and the independent
Trustees' counsel are both independent of the Manager within the meaning and
intent of the Securities and Exchange Commission Rules.
Based on its review of the information it received and its evaluations
described above, the Board, including a majority of the independent Trustees,
decided to continue the Agreement for another year. In arriving at this
decision, the Board considered all of the above information, and considered the
terms and conditions of the Agreement, including the management fee, in light of
all of the surrounding circumstances.
48 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;
UPDATES TO STATEMENTS OF INVESTMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which
the Fund votes proxies relating to securities ("portfolio proxies") held by the
Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures
is available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and
(iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to
file Form N-PX, with its complete proxy voting record for the 12 months ended
June 30th, no later than August 31st of each year. The Fund's voting record is
available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, and (ii) in the Form N-PX filing on the SEC's website at
www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC
for the first quarter and the third quarter of each fiscal year on Form N-Q. The
Fund's Form N-Q filings are available on the SEC's website at
http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public
Reference Room in Washington, D.C. Information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.
49 | OPPENHEIMER MAIN STREET OPPORTUNITY FUND
ITEM 2. CODE OF ETHICS.
Not applicable to semiannual reports.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to semiannual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to semiannual reports.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to semiannual reports.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
THE FUND'S GOVERNANCE COMMITTEE PROVISIONS WITH RESPECT TO NOMINATIONS OF
DIRECTORS/TRUSTEES TO THE RESPECTIVE BOARDS
1. The Fund's Governance Committee (the "Committee") will evaluate potential
Board candidates to assess their qualifications. The Committee shall have
the authority, upon approval of the Board, to retain an executive search
firm to assist in this effort. The Committee may consider recommendations
by business and personal contacts of current Board members and by executive
search firms which the Committee may engage from time to time and may also
consider shareholder recommendations. The Committee may consider the advice
and recommendation of the Funds' investment manager and its affiliates in
making the selection.
2. The Committee shall screen candidates for Board membership. The Committee
has not established specific qualifications that it believes must be met by
a trustee nominee. In evaluating trustee nominees, the Committee considers,
among other things, an individual's background, skills, and experience;
whether the individual is an "interested person" as defined in the
Investment Company Act of 1940; and
whether the individual would be deemed an "audit committee financial
expert" within the meaning of applicable SEC rules. The Committee also
considers whether the individual's background, skills, and experience will
complement the background, skills, and experience of other nominees and
will contribute to the Board. There are no differences in the manner in
which the Committee evaluates nominees for trustees based on whether the
nominee is recommended by a shareholder.
3. The Committee may consider nominations from shareholders for the Board at
such times as the Committee meets to consider new nominees for the Board.
The Committee shall have the sole discretion to determine the candidates to
present to the Board and, in such cases where required, to shareholders.
Recommendations for trustee nominees should, at a minimum, be accompanied
by the following:
o the name, address, and business, educational, and/or other pertinent
background of the person being recommended;
o a statement concerning whether the person is an "interested person" as
defined in the Investment Company Act of 1940;
o any other information that the Funds would be required to include in a
proxy statement concerning the person if he or she was nominated; and
o the name and address of the person submitting the recommendation and,
if that person is a shareholder, the period for which that person held
Fund shares.
The recommendation also can include any additional information which the
person submitting it believes would assist the Committee in evaluating the
recommendation.
4. Shareholders should note that a person who owns securities issued by
Massachusetts Mutual Life Insurance Company (the parent company of the
Funds' investment adviser) would be deemed an "interested person" under the
Investment Company Act of 1940. In addition, certain other relationships
with Massachusetts Mutual Life Insurance Company or its subsidiaries, with
registered broker-dealers, or with the Funds' outside legal counsel may
cause a person to be deemed an "interested person."
5. Before the Committee decides to nominate an individual as a trustee,
Committee members and other directors customarily interview the individual
in person. In addition, the individual customarily is asked to complete a
detailed questionnaire which is designed to elicit information which must
be disclosed under SEC and stock exchange rules and to determine whether
the individual is subject to any statutory disqualification from serving as
a trustee of a registered investment company.
ITEM 11. CONTROLS AND PROCEDURES.
Based on their evaluation of the registrant's disclosure controls and procedures
(as defined in rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR
270.30a-3(c)) as of 01/31/2008, the registrant's principal executive officer and
principal financial officer found the registrant's disclosure controls and
procedures to provide reasonable assurances that information required to be
disclosed by the registrant in the reports that it files under the Securities
Exchange Act of 1934 (a) is accumulated and communicated to registrant's
management, including its principal executive officer and principal financial
officer, to allow timely decisions regarding required disclosure, and (b) is
recorded, processed, summarized and reported, within the time periods specified
in the rules and forms adopted by the U.S. Securities and Exchange Commission.
There have been no changes in the registrant's internal controls over financial
reporting that occurred during the registrant's second fiscal quarter of the
period covered by this report that have materially affected, or are reasonably
likely to materially affect, the registrant's internal control over financial
reporting.
ITEM 12. EXHIBITS.
(a) (1) Not applicable to semiannual reports.
(2) Exhibits attached hereto.
(3) Not applicable.
(b) Exhibit attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Oppenheimer Main Street Opportunity Fund
By: /s/ John V. Murphy
---------------------------
John V. Murphy
Principal Executive Officer
Date: 03/11/2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ John V. Murphy
---------------------------
John V. Murphy
Principal Executive Officer
Date: 03/11/2008
By: /s/ Brian W. Wixted
---------------------------
Brian W. Wixted
Principal Financial Officer
Date: 03/11/2008