THE MALLARD FUND, INC.
Investments / September 30, 2000
(Showing Percentage of Total Value of Net Assets)
_________________________________________________________________
Shares Value
COMMON STOCK - 1.4%
Broadcom Corporation 1,050 $ 255,938
Cacheflow, Inc. 7,625 1,090,375
Checkfree Holdings 2,113 88,515
Cisco Systems, Inc. 13,653 754,328
Conductus, Inc. 10,455 154,211
Fusion Medical Technologies 7,221 70,856
Jazztel PLC 13,156 296,010
NIKU Corporation 9,937 242,214
Seagate Technology, Inc. 2,243 154,767
Usinternetworking, Inc. 30,488 203,413
Wireless Facilities, Inc. 7,438 429,080
TOTAL COMMON STOCK (COST $540,638) $ 3,739,707
MUTUAL FUNDS - 45.3%
American Funds - EuroPacfic 298,143 $ 11,350,311
CI Emerging Markets Growth 337,662 19,746,484
Morgan Stanley Emerging Mar 957,238 14,358,577
Templeton Institutional Eme 1,381,726 13,209,302
Vanguard Extended Market In 312,198 11,738,636
Vanguard Institutional Inde 359,331 47,187,390
TOTAL MUTUAL FUNDS (COST $123,587,486) $ 117,590,700
LIMITED PARTNERSHIPS - 55.3% (a)
Accel Internet Fund III, L.P. $ 848,447
Accel VIII, L.P. 320,294
Accel-KKR Company LLC 1,000,000
Adams Capital Management II, L.P. 651,949
Alloy Corporate 2000 262,623
Alloy Ventures 98, L.P. 2,452,083
Atlas Venture Fund IV, L.P. 3,692,388
Atlas Venture Fund V, L.P. 807,863
Audax Private Equity Fund, L.P. 399,533
Austin Ventures VII, L.P. 1,107,098
Bain Capital Fund VI, L.P. 1,777,378
Bain Capital VI Coinvestment Fund L.P. 999,888
Battery Ventures VI, L.P. 83,182
BC European Capital VI, L.P. 1,376,226
Berkshire Fund V, L..P. 404,754
Blackstone Capital 3,423,510
Bowman Offshore Founders Fund, L.P. 3,180,053
Bowman Technology Fund, L.P. 8,491,046
Brookside Capital Partners Fund, L.P. 3,172,245
Carlyle Asia Partners, L.P. 534,445
Centennial Fund VI, L.P. 1,745,204
CIBC Oppenheimer Emerging Markets Liquidatin 16,095
Code Hennessy & Simmons 821,474
ComVentures IV, LP 982,034
Delphi Ventures IV, L.P. 5,932,958
Doughty Number 6 1,564,592
Everest Capital Frontier, L.P. 5,496,525
Hicks, Muse, Tate & Furst Equity Fund IV, L. 5,847,745
Highfields Capital Ltd. 8,488,307
Hummer Winblad Venture Partners IV 1,682,365
Hummer Winblad Venture Partners V 50,000
Insight Capital Partners Cayman III, L.P. 3,199,184
J. H. Whitney Equity Partners III, L.P. 3,471,341
J. H. Whitney IV, L.P. 3,101,554
J. H. Whitney Mezzanine Fund, L.P. 833,793
J. W. Childs Equity Partners II, L.P. 1,011,753
Knightsbridge Integrated IV 3,221,108
Knightsbridge Integrated V 286,002
Knightsbridge Post Venture IV, L.P. 445,642
Lone Redwood, L.P. 7,613,993
Maverick Fund USA, Ltd. 7,660,329
Meritech Capital Partners 7,466,499
Meritech Capital Partners II 300,000
ML - Silver Lake Special Trust 743,580
Mohr, Davidow Ventures VI, L.P. 559,308
Morgenthaler Venture Partners V 6,026,402
Morgenthaler Partners VI 392,495
Oak Investment Partners IX 433,966
Pequot Technology Perennial Fund 5,527,518
Redpoint Ventures I, L.P. 1,606,813
Sankaty High Yield Partners, L.P. 864,000
Sevin Rosen Fund VI L.P. 1,627,842
Sevin Rosen Fund VII, L.P. 1,262,188
Spectrum Equity Investors III, L.P. 4,450,030
Spectrum Equity Investors IV, L.P. 266,555
Summit Accelerator Fund, L.P. 208,873
Summit Ventures V, L.P. 1,841,353
T/A Atlantic & Pacific IV, L.P. 1,724,960
TCV III (Q), L.P. 4,385,544
TCV IV, L.P. 1,859,678
The Varde Fund IV-A, L.P. 328,291
Thomas H. Lee Equity Fund V, L.P. 13,500
Tiger Management 751,092
Weston Presidio Capital III, L.P. 1,510,972
Weston Presidio Capital IV, L.P. 90,457
Worldview Technology Partners III, L.P. 881,672
TOTAL LIMITED PARTNERSHIPS (COST 104,355,554) $143,580,590
FUND OF FUNDS - 4.0% (a)
Knightsbridge Integrated Holdings 3,000 $ 10,266,540
TOTAL INVESTMENTS(COST $230,945,748)-106.0% $ 275,177,537
OTHER ASSETS AND LIABILITIES, NET- (6.0%) (15,552,572)
NET ASSETS - 100.00% $ 259,624,965
*Cost for federal income tax purposes at September 30, 2000 has not been
determined due to the Fund not having received tax information on all
of the Fund's investments in limited partnerships.
(a) See Note 8.
(b) Closed-end investment company.
The accompanying notes are an integral part of the financial statements.
The Mallard Fund, Inc.
Statement of Assets and Liabilities
For the Year Ended September 30, 2000
Assets:
Investments, at value (Cost $230,745,748) $ 275,177,537
Cash 270,624
Total Assets $ 275,448,161
Liabilities:
Bank loan $ 15,708,732
Other accrued expenses 114,464
Total Liabilities $ 15,823,196
Commitments (Note 8)
Net Assets $ 259,624,965
Net Assets consist of:
Common Stock, $0.001 par value
Authorized 100,000,000 shares; 11,926,553 shares
issued and outstanding $ 11,957
Paid-in capital 219,509,335
Contributed capital 21,218,750
Distributions in excess of net inves(26,618,668)
Accumulated net realized gain on inv 1,271,802
Net unrealized appreciation on inves 44,231,789
Net Assets $ 259,624,965
Net Asset Value Per Share
($259,624,965 / 11,926,553 shares $ 21.77
The accompanying notes are an integral part of the financial statements.
The Mallard Fund, Inc.
Statement of Operations
For the Year Ended September 30, 2000
INVESTMENT INCOME
Income:
Interest Income $ 8,043
Dividend Income 4,326,349
Total Income $ 4,334,392
Expenses:
Investment consulting fees (Note $ 90,517
Investment management fees 22,562
Administration fee (Note 4) 34,998
Custodian fees (Note 4) 3,765
Legal fees 33,874
Audit fees 13,062
Directors fees and expenses 7,541
Insurance 1,326
Interest on bank loan 613,480
Miscellaneous expenses 9,753
Total Expenses $ 830,878
NET INVESTMENT INCOME $ 3,503,514
Net realized gain on investments dur 1,223,495
Net unrealized appreciation of inves (16,524,433)
Net realized and unrealized g $ (15,300,938)
NET INCREASE IN NET ASSETS RESULTING FROM $ (11,797,424)
The accompanying notes are an integral part of the financial statements.
The Mallard Fund, Inc.
Statement of Cash Flows
For the Year Ended September 30, 2000
INCREASE (DECREASE) IN CASH FROM:
Operating Activities
Net increase in net assets from operations $ (11,797,424)
Adjustments:
Increase in other acc exp 18,904
Net realized and unrealized gain on inv 15,300,938
Purchases of portfolio investments (22,356,350)
Proceeds from disposition of investments 16,036,882
Investment paydowns 1,062,061
Net decrease in cash $ (1,744,989)
Financing Activities
Increase in Bank loan $ 126,656
CRUT Asset Transfer 1,605,093
Net increase in cash $ 1,731,749
Net decrease in cash (13,240)
Cash at beginning of year 283,864
Cash at end of year $ 270,624
Supplemental cash flow information:
Cash paid for interest $ 514,695
Depreciation on inv $ (16,524,433)
The accompanying notes are an integral part of the financial statements.
The Mallard Fund, Inc.
Statement of Changes in Net Assets
Year ended Year ended
Sept 30, 2000 March 31, 1999
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income $ 3,503,514 $4,748,826
Net realized gain loss on inv 1,223,495 7,349,893
Net increase in unrealized apprec(16,524,433) 77,331,213
Net inc (decrease)in net assets$ (11,797,424) $89,429,932
Distributions to Shareholders from:
Net investment income $ - $ (4,748,826)
In excess of net investment - (25,373,357)
Total Distributions $ - $ (30,122,183)
Capital Transactions:
Capital Contribution $ - $ 21,218,750
Proceeds from 2,203,700 shares - 25,122,184
Proceeds from CRAT assst transfer - 55,628,268
Common stock reacquire - (12,196,989)
Proceeds from CRUT I purchase - 1,872,647
Proceeds from CRUT II purchase - 2,004,010
Proceeds from CRUT II purchase 674,880
Proceeds from CRUT II purchase 930,213
Net increase in net asstes $ 1,605,093 $ 72,430,120
NET ASSETS:
Beginning of Period 269,817,296 116,860,677
End of Period $259,624,965 $269,817,296
The accompanying notes are an integral part of the financial statements.
THE MALLARD FUND, INC.
Financial Highlights
For a share outstanding throughout each period.
For the period For the Year For the Year
4/1/00 4/1/99 4/1/98
9/30/00 3/31/00 3/31/99
Net Asset Value-Begin of Pd $22.70 $11.52 $16.75
Investment Operations:
Net investment income 1.35 0.44 0.09
Net realized and unreal gain (2.28) 13.54 (2.55)
Total from invest operations (0.93) 13.98 (2.46)
Distributions
From net income 0 (0.44) (0.09)
In excess of nii 0 (2.36) (2.68)
In excess of real gain 0 0 0
Return of capital 0 0 0
Total Distributions 0 (2.80) (2.77)
Net Asset Value-End of Pd $21.77 $22.70 $11.52
Total Return (a) (4.10%) 148.39%*** (12.18%)
Ratios (to average net assets)/ Supplemental Information
Expenses(excluding int) 0.08% 0.25% 0.58%
Expenses(including int) 0.31% 0.81% 1.23%
Net Investment income 1.32% 3.10% 0.66%
Portfolio turnover 5.82% 64.92% 26.98%
Net Assets end of pd $259,625 $269,817 $116,820
Number of shares outstanding 11,926,553 11,883,910 10,140,988
Amount of bank loans outstanding
At end of the period $15,709 $15,582 $10,109
Average amount of bank loan outstanding
during the period $18,085 $15,108 $13,699
Amount of maximum month end bank loans
during the period $21,966 $22,098 $24,745
Average amount of bank loans per share $1.52 $1.41 $1.35
Weighted average interest rate of bank loans
during the period 6.89% 5.74% 5.69%
* Annualized
** Initial public offering price of $20.00 per share less offering expenses of
$0.03 per share.
*** Total return affected by asset donation. (See note 7)
# Commencement of Operations.
(a) Based on per share net asset value. Per share market price is not
readily determinable since fund shares are not currently sold to the public.
Total return assumes reinvestment of dividends at the most recent quarterly
net asset value and does not reflect brokerage commissions or initial
underwriting discounts.
(b) Total investment return has not been annualized.
The accompanying notes are an integral part of the financial statements.
