Augusta Partners, L.P.
Financial Statements
For the Six Months Ended
June 30, 1997
(Unaudited)
Contents
Statement of Assets, Liabilities and Partners Capital 2
Statement of Operations 3
Statement of Changes in Partners Capital - Net Assets 4
Notes to Financial Statements 5
Schedule of Portfolio Investments 13
Schedule of Securities Sold, Not Yet Purchased 19
Schedule of Written Options 20
Augusta Partners, L.P.
Statement of Assets, Liabilities and Partners' Capital (in thousands)
June 30, 1997
(Unaudited)
Assets
Cash $ 5
Investments in securities, at market
(identified cost - $117,989) 127,276
Due from broker 18,774
Interest receivable 109
Dividends receivable 4
Organizational costs(net of accumulated amortization of $114) 578
Other assets 11
Total assets 146,757
Liabilities
Due to broker 9,952
Loan payable 3,097
Securities sold, not yet purchased - at market
(proceeds of sales - $11,533) 10,209
Management fee payable 98
Accrued expenses 354
Total liabilities 23,710
Net Assets $ 123,047
Partners' Capital
Represented by:
Capital contributions, (net of syndication costs of $50) $ 100,005
Accumulated net investment loss (588)
Accumulated net realized gain on investments 13,019
Net unrealized appreciation on investments and foreign
currency transactions 10,611
Partners' Capital - Net Assets $ 123,047
The accompanying notes are an integral part of these financial statements.
-2-
Augusta Partners, L.P.
Statement of Operations ( in thousands)
Six Months Ended
June 30, 1997
(Unaudited)
Investment Income
Dividends $170
Interest 625
795
Operating expenses
Management fee 580
Professional fees 139
Administration fees 83
Amortization of organizational costs 69
Dividends on securities sold, not yet purchased 61
Interest expense 57
Insurance expense 44
Custodian fees 29
Individual General Partners' fees and expenses 11
Miscellaneous 6
1,079
Net investment loss (284)
Realized and unrealized gain on investments
Realized gain (loss) on investments
Investment securities 4,851
Futures transactions (285)
Purchased options 1,101
Written options (1,558)
Short sales 358
Net realized gain on investments 4,467
Unrealized appreciation on investments
and foreign currency transactions:
Beginning of period 8,792
End of period 10,611
Net unrealized appreciation on investments and
foreign currency transactions 1,819
Net realized and unrealized gain on investments 6,286
Increase in partners' capital derived
from investment activities $ 6,002
The accompanying notes are an integral part of these financial statements.
-3-
Augusta Partners, L.P.
Statement of Changes in Partners' Capital - Net Assets (in thousands)
Six Months Ended Period From
June 30, 1997 September 4,1997
(Unaudited) (Commencement of
Operations) to
December 31, 1997
Investment activities
Net investment loss $ (284) $ (304)
Net realized gain on investments 4,467 8,552
Change in unrealized appreciation on
investments and foreign currency transactions 1,819 8,792
Increase in partners' capital derived
from investment activities 6,002 17,040
Partners' capital transactions
Capital contributions - 100,055
Syndication costs - (50)
Increase in partners' capital derived
from capital transactions 0 100,005
Partners' capital at beginning of period 117,045 -
Partners' capital at end of period $ 123,047 $ 117,045
The accompanying notes are an integral part of these financial statements.
-4-
Augusta Partners, L.P.
Notes to Financial Statements - June 30, 1997 (Unaudited)
1. Organization
Augusta Partners, L.P. (the "Partnership") was organized under the Delaware
Revised Uniform Limited Partnership Act on May 30, 1996. The Partnership is
registered under the Investment Company Act of 1940 (the "Act") as a
closed-end, non-diversified management investment company. The Partnership
will operate until December 31, 2021 unless further extended or sooner
terminated as provided for in the Limited Partnership Agreement (the
"Agreement"), as amended and restated on July 16, 1996. The Partnership's
investment objective is to achieve capital appreciation. The Partnership
pursues this objective by investing principally in equity securities of
publicly-traded U.S. companies. The Partnership may also invest in equity
securities of foreign issuers and in bonds and other fixed-income securities
of U.S. and foreign issuers.
There are five "Individual General Partners" and a "Manager." The Manager
is Augusta Management, L.L.C. whose principal members are Oppenheimer & Co.,
Inc. ("Opco") and Ardsley Advisory Partners ("Ardsley"). Investment
professionals at Ardsley manage the Partnership's investment portfolio on
behalf of the Manager under Opco's supervision.
The acceptance of initial and additional contributions, as well as the
repurchase of Partnership interests, are subject to approval by the Manager.
The Partnership may from time to time offer to repurchase interests pursuant
to written tenders by Partners. Such repurchases will be made at such times
and on such terms as may be determined by the Individual General Partners,
in their complete and exclusive discretion. The Manager expects that
generally it will recommend to the Individual General Partners that the
Partnership repurchase interests from Partners once in each year effective
as of the end of each such year.
2. Significant Accounting Policies
The preparation of financial statements in conformity with generally
accepted accounting principles requires the Manager to make estimates and
assumptions that affect the amounts reported in the financial statements and
accompanying notes. The Manager believes that the estimates utilized in
preparing the Partnership's financial statements are reasonable and prudent;
however, actual results could differ from these estimates.
a. Portfolio Valuation
Securities and commodities transactions, including related revenue and
expenses, are recorded on a trade-date basis and dividends are recorded on
an ex-dividend date basis. Interest income is recorded on the accrual basis.
Domestic exchange traded or NASDAQ listed equity securities will be valued at
their last composite sale prices as reported on the exchanges where such
securities are traded. If no sales of such securities are reported on a
particular day, the securities will be valued based upon their composite bid
prices for securities held long, or their composite ask prices for
securities held short, as reported by such exchanges. Securities traded on
a foreign securities exchange will be valued at their last sale prices on
the exchange where such securities are primarily traded, or in the absence
of a reported sale on a particular day, at their bid prices (in the case of
securities held long) or ask prices (in the case of securities held short)
as reported by such exchange. Listed options will be valued using last sales
prices as reported by the exchange with the highest reported daily volume for
such options or, in the absence of any sales on a particular day, at their
bid prices as reported by the exchange with the highest volume on the last
day a trade was reported. Other securities for which market quotations are
readily available will be valued at their bid prices (or ask prices in the
case of securities held short) as obtained from one or more dealers making
markets for such securities. If market quotations are not readily
available, securities and other assets will be valued at fair value as
determined in good faith by, or under the supervision of, the Individual
General Partners.
Debt securities will be valued in accordance with the procedures described
above, which with respect to such securities may include the use of
valuations furnished by a pricing service which employs a matrix to
determine valuation for normal institutional size trading units or
consultation with brokers and dealers in such securities. The Individual
General Partners will periodically monitor the reasonableness of valuations
provided by any such pricing service. Debt securities with remaining
maturities of 60 days or less will, absent unusual circumstances, be valued
at amortized cost, so long as such valuation is determined by the Individual
General Partners to represent fair value.
Futures contracts and options thereon, which are traded on commodities
exchanges, are valued at their settlement value as of the close of such
exchanges.
All assets and liabilities initially expressed in foreign currencies will be
converted into U.S. dollars using foreign exchange rates provided by a
pricing service compiled as of 4:00 p.m. London time. Trading in foreign
securities generally is completed, and the values of such securities are
determined, prior to the close of securities markets in the U.S. Foreign
exchange rates are also determined prior to such close. On occasion, the
values of such securities and exchange rates may be affected by events
occurring between the time as of which determination of such values or
exchange rates are made and the time as of which the net asset value of the
Partnership is determined. When such events materially affect the values of
securities held by the Partnership or its liabilities, such securities and
liabilities will be valued at fair value as determined in good faith by, or
under the supervision of, the Individual General Partners.
b. Partnership Expenses
The expenses incurred by the Partnership in connection with its organization
are being amortized over a 60 month period beginning with the commencement
of operations, September 4, 1996.
Syndication costs totaling $50,000 related to the Partnership's initial
offering have been charged directly to the capital accounts of the limited
and general partners.
c. Income Taxes
No federal, state or local income taxes will be provided on the profits of
the Partnership since the partners are individually liable for their share
of the Partnership's income.
3. Management Fee, Related Party Transactions and Other
Opco provides certain management and administrative services to the
Partnership including, among other things, providing office space and other
support services to the Partnership. In exchange for such services, the
Partnership pays Opco a monthly management fee of .08333% (1% on an
annualized basis) of the Partnership's net assets determined as of the
beginning of the month, excluding assets attributable to the Manager's capital
account.
During the six months ended June 30, 1997, Opco earned $3,060 in brokerage
commissions from portfolio transactions executed on behalf of the
Partnership.
At the end of the twelve month period following the admission of a limited
partner to the Partnership, and generally at the end of each fiscal year
thereafter, the Manager is entitled to an incentive allocation of 20% of net
profits, if any, that have been credited to the capital account of such
limited partner during such period. The incentive allocation will be
charged to a limited partner only to the extent that cumulative net profits
with respect to such limited partner through the close of any period exceeds
the highest level of cumulative net profits with respect to such limited
partner through the close of any prior period. As of June 30, 1997, there
was no incentive allocation.
Each Independent Individual General Partner, who is not an "interested
person" of the Partnership as defined by the Act, receives an annual retainer
of $5,000 plus a fee for each meeting attended. The other Individual General
Partners do not receive any annual or other fees. All Individual General
Partners are reimbursed by the Partnership for all reasonable out-of-pocket
expenses incurred by them in performing their duties. For the six months
ended June 30, 1997, these fees (including meeting fees and a pro-rata
portion of the annual retainer) and expenses totaled $11,257. One Individual
General Partner, who is an "interested person" of the Partnership, as
defined by the Act, holds a limited partnership interest in the Partnership.
Morgan Stanley Trust Company serves as Custodian of the Partnership's assets.
PFPC Inc. serves as Administrator and Accounting Agent to the Partnership,
and in that capacity provides certain accounting, recordkeeping, tax and
investor services.
4. Securities Transactions
Aggregate purchases and sales of investment securities, excluding short-term
securities, for the six months ended June 30, 1997, amounted to $358,519,455
and $337,512,264, respectively.
At June 30, 1997, the cost of investments for federal income tax purposes
was substantially the same as the cost for financial reporting purposes.
At June 30, 1997, accumulated net unrealized appreciation on investments,
options, and securities sold, not yet purchased, was $10,611,343, consisting
of $15,073,567 gross unrealized appreciation and $4,462,224 gross
unrealized depreciation.
Due from broker primarily represents proceeds from unsettled trades and
short sales. Due to broker primarily represents liabilities from unsettled
security purchases.
5. Financial Instruments with Off-Balance Sheet Risk or
Concentrations of Credit Risk
In the normal course of business, the Partnership may trade various
financial instruments and enter into various investment activities with
off-balance sheet risk. These financial instruments include forward and
futures contracts, options and sales of securities not yet purchased.
Generally, these financial instruments represent future commitments to
purchase or sell other financial instruments at specific terms at specified
future dates. Each of these financial instruments contain varying degrees
of off-balance sheet risk whereby changes in the market value of the
securities underlying the financial instruments may be in excess of the
amounts recognized in the statement of assets, liabilities and partners'
capital.
The Partnership's foreign exchange trading activities involve the purchase
and sale (writing) of foreign exchange options having various maturity
dates. The Partnership may seek to limit its exposure to foreign exchange
rate movements by hedging such option positions with foreign exchange
positions in spot currency, futures and forward contracts. At June 30,
1997, the Partnership had no spot currency, futures or forward contracts
outstanding.
Securities sold, not yet purchased, represent obligations of the Partnership
to deliver the specified security and thereby creates a liability to
purchase the security in the market at prevailing prices. Accordingly,
these transactions result in off-balance sheet risk as the Partnership's
ultimate obligation to satisfy the sale of securities sold, not yet
purchased, may exceed the amount recognized in the statement of assets,
liabilities and partners' capital.
The risk associated with purchasing an option is that the Partnership pays
a premium whether or not the option is exercised. Additionally, the
Partnership bears the risk of loss of premium and change in market value
should the counterparty not perform under the contract. Put and call options
purchased are accounted for in the same manner as investment securities.
When the Partnership writes an option, the premium received by the
Partnership is recorded as a liability and is subsequently adjusted to the
current market value of the option written. If a call option is exercised,
the premium is added to the proceeds from the sale of the underlying
security or currency in determining whether the Partnership has realized a
gain or loss. In writing an option, the Partnership bears the market risk
of an unfavorable change in the price of the security or currency
underlying the written option. Exercise of an option written by the
Partnership could result in the Partnership selling or buying a security or
currency at a price different from the current market value.
A summary of the notional amounts of open purchased option contracts as of
June 30, 1997, is as follows:
Notional Amounts
Equity Options $12,005,000
Equity Index Options $43,650,900
Foreign Exchange Options 85,000,000 CHF
Transactions in written options were as follows:
Call Options Put Options
Number Amount Number Amount
of Contracts of Premium of Contracts of Premium
Beginning balance - $ 0 - $ 0
Options written 8,855 4,994,836 140,825 4,416,262
Options closed (7,025) (4,556,603) (76,325) (2,766,183)
Expired options (2,305) (438,233) - 0
Written options split 475 0 - 0
Options outstanding at
June 30, 1997 - $ 0 64,500 $1,650,079
6. Financial Instruments Held or Issued for Trading Purposes
The Partnership maintains positions in a variety of financial instruments.
The following table summarizes the components of net realized and unrealized
gains from investment transactions:
Net Gains / (Losses)
for the Six Months Ended
June 30, 1997
Equity securities $ 7,757,175
Equity options (429,094)
Fixed income transactions 223,596
Foreign exchange
(including realized gains of $1,224,714) (177,178)
Futures transactions (285,959)
Index options (628,463)
Written options (174,298)
Net Gain from investment transactions $ 6,285,779
The following table presents the fair values of derivative financial
instruments and the average fair values of those instruments:
Average Fair Value for
Fair Value at the Six Months Ended
June 30, 1997 June 30, 1997
Assets:
Equity options $1,091,813 $1,956,447
Futures 0 0
Foreign exchange 863,014 335,557
Index 4,629 1,200,352
Written options 0 (102,740)
Average fair values presented above are based upon each type's month-end
fair value during the six months ended June 30, 1997.
7. Short-Term Borrowings
The Partnership has the ability to trade on margin and, in that connection,
borrow funds from brokers and banks for the purchase of equity and fixed
income securities. Trading in equity securities on margin involves an
initial cash requirement representing at least 50% of the underlying
security's value with respect to transactions in U.S. markets and varying
percentages with respect to transactions in foreign markets. The Act
requires the Partnership to satisfy an asset coverage requirement of 300%
of its indebtedness, including amounts borrowed, measured at the time the
Partnership incurs the indebtedness. As of June 30, 1997, the Partnership
had margin borrowings outstanding of $3,097,176. For the six months ended
June 30, 1997, the average daily amount of such borrowings was $1,979,139.
8. Selected Financial Ratios and Other Supplemental Information
The following represents the ratios to average net assets and other
supplemental information for the period:
September 4, 1996
Six Months (commencement of
Ended operations) to
June 30, 1997 December 31, 1996
(Unaudited)
Investment loss (0.49%)* (0.83%)*
Operating expenses 1.84%* 2.34%*
Dividends on securities
sold, not yet purchased .05%* .06%*
Portfolio turnover 306% 215%
Average commission rate $.0554** $.0569**
Total return 5.13%*** 17.20%***
Average debt ratio 1.85% .28%
* Annualized.
** Average commission rate per share on purchases and sales of investment
securities.
*** Total return assumes a purchase of a Limited Partnership interest in the
Partnership on the first day and a sale of the Partnership interest on
the last day of the period noted, before incentive allocation to the
General Partner, if any. Total returns for a period of less than a full
year are not annualized.
Augusta Partners, L.P.
Schedule of Portfolio Investments (Unaudited)
June 30, 1997
Shares Market Value
Common Stocks - 94.72%
Advertising Sales - 1.14%
55,000 Lamar Advertising Co., Class A* $1,402,500
Airlines - 3.02%
25,000 AMR Corp. * 2,312,500
40,000 US Airways Group, Inc. * 1,400,000
3,712,500
Cable TV - 3.10%
65,000 Comcast UK Cable Partners Ltd. * 780,000
55,000 HSN, Inc. * 1,718,750
65,000 U.S. West Media Group * 1,316,250
3,815,000
Cellular Telecommunications - 2.33%
60,000 Millicom International Cellular S.A. * 2,865,000
Commercial Banking - 1.27%
45,000 Magna Group, Inc. 1,563,750
Computers - Integrated Systems - 3.60%
125,000 Digital Equipment Corp. * 4,429,750
Computers - Micro - 1.21%
40,000 Sun Microsystems, Inc. * 1,488,750
Computer Software - 4.62%
35,000 Autodesk, Inc. 1,340,955
40,000 Cognos, Inc. * 1,245,000
65,000 Compuware Corp. * 3,103,750
5,689,705
Consulting Services - 1.31%
90,000 Maximus, Inc. * 1,608,750
Data Processing/Management - 1.02%
25,000 Oracle Systems Corp. * 1,259,375
Electronic Components/Semiconductors - 1.82%
70,000 LSI Logic Corp. * 2,240,000
* Non-income producing security
The accompanying notes are an integral part of these financial statements.
-13-
Augusta Partners, L.P.
Schedule of Portfolio Investments (Unaudited) (continued)
June 30, 1997
Shares Market Value
Common Stocks - 94.72% - (continued)
Electronic Parts Distribution - 1.79%
60,000 Kent Electronics Corp. * $ 2,201,280
Financial Savings & Loans/Thrifts - 4.95%
75,000 Dime Bancorp, Inc. 1,312,500
100,000 Empire Federal Bancorp, Inc. * 1,437,500
100,000 FirstFed America Bancorp, Inc. * 1,775,000
25,000 First Federal Bancshares of AK, Inc. 503,125
30,000 Ocean Financial Corp. * 1,057,500
6,085,625
Healthcare Cost Containment - 1.10%
55,000 Access Health, Inc. * 1,347,500
Healthcare Services & Management - 0.82%
60,000 American Oncology Resources, Inc. * 1,012,500
Hotels & Motels - 1.20%
100,000 Servico, Inc. * 1,475,000
Human Resources - 2.23%
75,000 Emcare Holdings, Inc. * 2,746,875
Life/Health Insurance - 2.29%
40,000 Conseco, Inc. 1,480,000
50,000 Western National Corp. 1,340,650
2,820,650
Machines/Tools & Related Products - 1.05%
50,000 Cincinnati Milacron, Inc. 1,296,900
Manufacturing - 0.75%
70,000 Foamex International, Inc. * 918,750
Medical - Biomedical - 5.96%
150,000 Alpha Beta Tech, Inc. * 1,368,750
55,000 Biochem Pharmaceutical, Inc. * 1,223,750
50,000 Centocor, Inc. * 1,553,150
85,000 Liposome Co., Inc. * 759,730
90,000 Myriad Genetics, Inc. * 2,430,000
7,335,380
Medical - Drugs - 2.71%
140,000 Vivus, Inc. * 3,333,820
* Non-income producing security
The accompanying notes are an integral part of these financial statements.
-14-
Augusta Partners, L.P.
Schedule of Portfolio Investments (Unaudited) (continued)
June 30, 1997
Shares Market Value
Common Stocks - 94.72% - (continued)
Medical - Hospitals - 1.20%
50,000 Magellan Health Services,Inc. * $ 1,475,000
Medical Instruments - 3.25%
65,000 Boston Scientific Corp. * 3,993,470
Medical Sterilization Products - 0.46%
15,000 Steris Corp. * 560,625
Metal - Aluminum - 1.24%
40,000 Alumax, Inc. * 1,525,000
Multi-Line Insurance - 0%
1 Aegon N.V. 36
Networking Products - 2.18%
40,000 Cisco Systems, Inc. * 2,685,000
Oil/Field Machinery & Equipment - 3.22%
60,000 Baker Hughes, Inc. 2,321,280
35,000 Cooper Cameron Corp. * 1,636,250
3,957,530
Oil/Field Services - 1.09%
25,000 BJ Services Co. * 1,340,625
Oil/Gas Drilling - 3.81%
35,000 ENSCO International, Inc. * 1,846,250
125,000 Parker Drilling Co. * 1,390,625
30,000 Precision Drilling Corp. * 1,451,250
4,688,125
Oil/Gas Equipment & Services - 6.55%
70,000 Louisiana Land & Exploration Co. 3,998,750
80,000 Reading & Bates Corp. * 2,140,000
50,000 Weatherford Enterra, Inc. * 1,925,000
8,063,750
Paper & Related Products - 2.25%
50,000 Champion International Corp. 2,762,500
* Non-income producing security
The accompanying notes are an integral part of these financial statements.
-15-
Augusta Partners, L.P.
Schedule of Portfolio Investments (Unaudited) (continued)
June 30, 1997
Shares Market Value
Common Stocks - 94.72% - (continued)
Pharmacy Services - 1.57%
100,000 Covance, Inc. * $ 1,931,300
Radio - 3.92%
25,000 American Radio Systems Corp., Class A * 996,875
45,000 Jacor Communication, Inc. * 1,721,250
50,000 SFX Broadcasting, Inc., Class A * 2,109,400
4,827,525
Real Estate Investment Trust - 0.96%
70,000 Westfield America, Inc. * 1,181,250
Retail - Apparel/Shoes - 1.27%
60,000 Stage Stores, Inc. * 1,567,500
Retail - Building Products - 0.75%
25,000 Lowe's Companies, Inc. 928,125
Retail - Jewelry - 1.21%
84,800 Claire's Stores, Inc. 1,484,000
Retail - Restaurants - 0.98%
50,000 Outback Steakhouse, Inc. * 1,209,375
Retirement/Aged Care - 0.89%
100,000 ARV Assisted Living, Inc. * 1,100,000
Telecommunications Equipment - 1.10%
35,000 Associated Group, Inc., Class B * 1,356,250
Telecommunications Equipment &
Long Distance Service - 2.60%
100,000 WorldCom, Inc. * 3,200,000
Telecommunications Services - 0.55%
25,000 Qwest Communications International, Inc. * 681,250
Therapeutics - 1.32%
20,000 Agouron Pharmaceuticals, Inc. * 1,617,500
* Non-income producing security
The accompanying notes are an integral part of these financial statements.
-16-
Augusta Partners, L.P.
Schedule of Portfolio Investments (Unaudited) (continued)
June 30, 1997
Shares Market Value
Common Stocks - 94.72% - (continued)
Transportation - Marine - 1.26%
45,000 Teekay Shipping Corp. $ 1,555,335
Transportation - Truck - 1.80%
135,000 Consolidated Freightways Corp. * 2,210,625
Total Common Stocks (Cost $107,582,834) 116,551,056
Preferred Stocks - 2.36%
Telecommunications Equipment &
Long Distance Service
50,000 Globalstar Telecommunications. Ltd., 6.5%,
03/01/06, PRF Conv. 144A, $30.80 2,900,000
Total Preferred Stocks (Cost $2,125,000) 2,900,000
Face
Amount
Bonds - 4.36%
Broadcasting - 1.29%
1,500,000 Comcast Corp., 3.375%, 9/09/05, Conv., $24.50 1,578,750
Cable TV - 3.07%
3,500,000 NTL Inc., 7.25%, 04/15/05, Conv. 144A, $27.56 3,780,000
Total Bonds (Cost $5,027,605) 5,358,750
Number of
Contracts
Call Options - 0 .60%
Medical - Drugs - 0.15%
500 Vivus, Inc., 09/20/97, $50.00 181,250
Networking Products - 0.12%
750 3Com Corp., 07/19/97, $45.00 150,000
Telecommunications Equipment &
Long Distance Service - 0.33%
500 WorldCom, Inc., 01/17/98, $25.00 406,250
Total Call Options (Cost $1,045,317) 737,500
* Non-income producing security
The accompanying notes are an integral part of these financial statements.
-17-
Augusta Partners, L.P.
Schedule of Portfolio Investments (Unaudited) (continued)
Number of June 30, 1997
Contracts Market Value
Put Options - 1.40%
Computers - Micro - 0.07%
255 Gateway 2000, Inc., 07/19/97, $35.00 $ 92,437
Chemicals - Diversified - 0.12%
500 Union Carbide Corp., 07/19/97,$50.00 143,750
Cross Currency - 1.11%
25,000 OTC ITL Call/CHF Put, 09/27/97,Strike-1210 ITL/CHF 506,849
Notional 25,000,000 CHF
60,000 OTC ITL Call/CHF Put, 06/19/98,Strike-1231 ITL/CHF 863,014
Notional 60,000,000 CHF
1,369,863
Electronic Components/Semiconductors - .10%
350 Micron Technology, Inc. 07/19/97, $42.50 118,125
Index - 0%
10,000 OTC SPX KO 07/02/97, $752.73/94.75 0
Notional $10,000,000
1,948 OTC SPX KO 07/02/97, $830/94.75 4
Notional $1,948,400
19,500 OTC SPX KO 07/09/97, $753.75/94.82 0
Notional $19,500,000
10,000 OTC SPX KO 07/16/97, $752.73/94.91 0
Notional $10,000,000
2,203 OTC SPX KO 07/16/97, $830/94.91 4,625
Notional $2,202,500
4,629
Total Put Options (Cost $2,207,746) 1,728,804
Total Investments (Cost $117,988,502) - 103.44%$ 127,276,110
Other Assets, Less Liabilities - (3.44%) (4,229,174)
Net Assets - 100.00% $ 123,046,936
* Non-income producing security
The accompanying notes are an integral part of these financial statements.
-18-
Augusta Partners, L.P.
Schedule of Securities Sold, not yet Purchased (Unaudited)
June 30, 1997
Shares Market Value
Short Common Stock - (7.88%)
Commercial Services - (1.81%)
(15,000) Pharmaceutical Product Development, Inc. $ (330,000)
(72,500) Teletech Holdings, Inc. (1,903,125)
(2,233,125)
Computers-Micro - (2.11%)
(80,000) Gateway 2000, Inc. (2,600,000)
Computer Services - (0.43%)
(25,000) National TechTeam, Inc. (534,375)
Cosmetics & Toiletries - (0.69%)
(60,000) Thermolase Corp. (843,750)
Finance/Credit Cards - (0.46%)
(15,000) Capital One Financial Corp. (566,250)
Medical - HMO - (0.32%)
(30,000) PHP Healthcare Corp. (393,750)
Medical Instruments - (0.53%)
(25,000) Thermo Cardiosystems, Inc. (650,000)
Resorts/Theme Parks - (0.84%)
(30,000) Signature Resorts, Inc. (1,036,890)
Telecommunications Equipment &
Long Distance Service - (0.69%)
(35,000) Deutsche Telekom AG (844,375)
Total Short Common Stock Proceeds ($9,883,019)$(9,702,515)
The accompanying notes are an integral part of these financial statements.
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Augusta Partners, L.P.
Schedule of Written Options (Unaudited)
Number of June 30, 1997
Contracts Market Value
Written Put Options - (0.41%)
Cross Currency - (0.41%)
(25,000) OTC ITL Call/CHF Put, 09/27/97, Strike 1210 ITL/CHF
Notional (25,000,000) CHF $ (506,849)
Index - (0%)
(10,000) OTC SPX KO, 07/02/97, $752.73/94.75 0
Notional ($10,000,000)
(19,500) OTC SPX KO, 07/09/97, $753.75/94.82 0
Notional ($19,500,000)
(10,000) OTC SPX KO, 07/16/97, $752.73/94.91 0
Notional ($10,000,000)
0
Total Written Put Options Proceeds ($1,650,079) (506,849)
Total Options Written Proceeds ($1,650,079) $ (506,849)
The accompanying notes are an integral part of these financial statements.
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