TROON PARTNERS, L.P.
FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED
JUNE 30, 1998
(UNAUDITED)
<PAGE>
TROON PARTNERS, L.P.
FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED
JUNE 30, 1998
(UNAUDITED)
CONTENTS
Statement of Assets, Liabilities and Partners' Capital.................... 1
Statement of Operations................................................... 2
Statement of Changes in Partners' Capital - Net Assets.................... 3
Notes to Financial Statements............................................. 4
Schedule of Portfolio Investments......................................... 12
<PAGE>
TROON PARTNERS, L.P.
STATEMENT OF ASSETS, LIABILITIES, AND PARTNERS' CAPITAL (IN THOUSANDS)
================================================================================
JUNE 30, 1998
(UNAUDITED)
ASSETS
Investments in securities, at market (identified cost-$120,260) $176,768
Due from broker 951
Dividends receivable 11
Organizational costs (net of accumulated amortization of $64) 172
Other assets 8
--------
TOTAL ASSETS 177,910
--------
LIABILITIES
Loan payable 2,969
Loan interest payable 9
Management fee payable 125
Accrued expenses 196
--------
TOTAL LIABILITIES 3,299
--------
NET ASSETS $174,611
========
PARTNERS' CAPITAL - NET ASSETS
Represented by:
Capital contributions - net $118,603
Accumulated net investment loss (950)
Accumulated net realized gain on investments 450
Accumulated net unrealized appreciation on investments 56,508
--------
PARTNERS' CAPITAL - NET ASSETS $174,611
========
The accompanying notes are an integral part of these financial statements.
-1-
<PAGE>
TROON PARTNERS, L.P.
STATEMENT OF OPERATIONS (IN THOUSANDS)
================================================================================
SIX MONTHS
ENDED
JUNE 30, 1998
(UNAUDITED)
INVESTMENT INCOME
Dividends $ 450
Interest 29
-------
479
-------
EXPENSES
OPERATING EXPENSES:
Management fee 660
Professional fees 129
Administration fees 97
Custodian fees 50
Amortization of organizational costs 23
Insurance expense 17
Individual General Partners' fees and expenses 11
Miscellaneous 14
-------
1,001
INTEREST EXPENSE 83
-------
TOTAL EXPENSES 1,084
-------
NET INVESTMENT LOSS (605)
-------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
REALIZED GAIN (LOSS) ON INVESTMENTS:
Investment securities 3,137
Purchased options (3,000)
Written options 24
Short sales (76)
-------
NET REALIZED GAIN ON INVESTMENTS 85
-------
NET CHANGE IN UNREALIZED APPRECIATION ON INVESTMENTS 28,329
-------
NET REALIZED AND UNREALIZED GAIN 28,414
-------
INCREASE IN PARTNERS' CAPITAL DERIVED FROM
INVESTMENT ACTIVITIES $27,809
=======
The accompanying notes are an integral part of these financial statements.
-2-
<PAGE>
TROON PARTNERS, L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL - NET ASSETS (IN THOUSANDS)
================================================================================
PERIOD FROM
SIX MONTHS FEBRUARY 27, 1997
ENDED (COMMENCEMENT OF
JUNE 30, 1998 OPERATIONS) TO
(UNAUDITED) DECEMBER 31, 1997
FROM INVESTMENT ACTIVITIES
Net investment loss $ (605) $ (345)
Net realized gain on investments 85 365
Net change in unrealized appreciation
on investments 28,329 28,179
-------- --------
INCREASE IN PARTNERS' CAPITAL
DERIVED FROM INVESTMENT
ACTIVITIES 27,809 28,199
PARTNERS' CAPITAL TRANSACTIONS
Capital contributions 47,055 77,250
Syndication costs 0 (50)
Capital withdrawals - General Partner (2,895) 0
Capital withdrawals - Limited Partners (2,757) 0
-------- --------
INCREASE IN PARTNERS' CAPITAL DERIVED
FROM CAPITAL TRANSACTIONS 41,403 77,200
PARTNERS' CAPITAL AT BEGINNING OF PERIOD 105,399 0
-------- --------
PARTNERS' CAPITAL AT END OF PERIOD $174,611 $105,399
======== ========
The accompanying notes are an integral part of these financial statements
-3-
<PAGE>
TROON PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 1998 (UNAUDITED)
================================================================================
1. ORGANIZATION
Troon Partners, L.P. (the "Partnership") was organized under the
Delaware Revised Uniform Limited Partnership Act on December 12, 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"), dated December 19, 1996, as
amended October 29, 1997. The Partnership's investment objective is to
seek long-term 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, bonds, options and other fixed-income
securities of U.S. issuers.
There are four "Individual General Partners" and a "Manager." The
Manager is Troon Management, L.L.C. which is a joint venture between
CIBC Oppenheimer Corp. ("CIBC Opco") and Mark Asset Management
Corporation ("MAMC"). Investment professionals at MAMC manage the
Partnership's investment portfolio on behalf of the Manager under CIBC
Opco's supervision.
The acceptance of initial and additional contributions is 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.
-4-
<PAGE>
TROON PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 1998 (UNAUDITED) (CONTINUED)
================================================================================
A. PORTFOLIO VALUATION
Securities 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. 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.
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.
-5-
<PAGE>
TROON PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 1998 (UNAUDITED) (CONTINUED)
================================================================================
On occasion, the values of such securities and exchange rates may
be affected by events occurring between the time such values or
exchange rates are determined and the time that 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, February 27, 1997.
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
CIBC 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 CIBC Opco a monthly management fee of
0.08333% (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, 1998, CIBC Opco earned $8,698 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
-6-
<PAGE>
TROON PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 1998 (UNAUDITED) (CONTINUED)
================================================================================
period. For the six months ended June 30, 1998, Incentive Allocations
to the General Partner were $7,118,209.
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. Any Individual
General Partner who is an "interested person" does not receive any
annual or other fees from the Partnership. 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, 1998, fees paid to the Individual General
Partners (including meeting fees and the annual retainer) and expenses
totaled $19,813.
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 related services.
4. SECURITIES TRANSACTIONS
Aggregate purchases and sales of investment securities, excluding
short-term securities, for the six months ended June 30, 1998, amounted
to $82,288,873 and $46,622,378, respectively.
At June 30, 1998, the cost of investments for federal income tax
purposes was substantially the same as the cost for financial reporting
purposes. At June 30, 1998, accumulated net unrealized appreciation on
investments was $56,507,312, consisting of $59,512,231 gross unrealized
appreciation and $3,004,919 gross unrealized depreciation.
Due from broker primarily represents receivables and payables from
unsettled security trades.
5. SHORT-TERM BORROWINGS
The Partnership has the ability to trade on margin and, in that
connection, borrow funds from brokers and banks for investment
purposes. 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
-7-
<PAGE>
TROON PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 1998 (UNAUDITED) (CONTINUED)
================================================================================
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, 1998, the Partnership had outstanding
margin borrowings of $2,969,205. The Partnership pays interest on
outstanding margin borrowings at an annualized rate of LIBOR plus
.875%. The Partnership pledges securities as collateral for the margin
borrowings, which are maintained in a segregated account held by the
Custodian. For the six months ended June 30, 1998, the average daily
amount of such borrowings was $2,429,346.
6. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK OR
CONCENTRATIONS OF CREDIT RISK
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.
-8-
<PAGE>
TROON PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 1998 (UNAUDITED) (CONTINUED)
================================================================================
Transactions in purchased options were as follows:
<TABLE>
<CAPTION>
CALL OPTIONS INDEX AND PUT OPTIONS
----------------------------- ----------------------------
NUMBER NUMBER
OF CONTRACTS COST OF CONTRACTS COST
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
Beginning balance 1,110 $ 1,311,665 656 $ 566,887
Options purchased 19,502 19,156,071 16,620 9,037,098
Options closed (17,619) (18,112,314) (14,988) (8,534,158)
Expired options 0 0 (1,408) (481,307)
------- ------------ ------- -----------
Options outstanding at
June 30, 1998 2,993 $ 2,355,422 880 $ 588,520
======= ============ ======= ===========
</TABLE>
Transactions in written options were as follows:
CALL OPTIONS
-----------------------------
NUMBER AMOUNT OF
OF CONTRACTS PREMIUM
------------ ---------
Beginning balance 0 $ 0
Options written 88 90,595
Options closed (88) (90,595)
Expired options 0 0
--- --------
Options outstanding at
June 30, 1998 0 $ 0
=== ========
-9-
<PAGE>
TROON PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 1998 (UNAUDITED) (CONTINUED)
================================================================================
7. 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, 1998
------------------------
Equity securities $32,109,947
Equity options (1,706,057)
Equity index options (2,014,614)
Written options 24,268
-----------
$28,413,544
===========
The following table presents the market values of derivative financial
instruments and the average market values of those instruments:
AVERAGE MARKET VALUE
MARKET VALUE AT FOR THE SIX MONTHS ENDED
JUNE 30, 1998 JUNE 30, 1998
--------------- ------------------------
ASSETS:
Equity options $2,348,950 $2,176,409
Equity index options 57,520 123,949
Average market values presented above are based upon month-end market
value during the six months ended June 30, 1998.
-10-
<PAGE>
TROON PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 1998 (UNAUDITED) (CONTINUED)
================================================================================
8. SELECTED FINANCIAL RATIOS AND OTHER SUPPLEMENTAL INFORMATION
The following represents the ratios to average net assets and other
supplemental information for the periods indicated:
FEBRUARY 27, 1997
(COMMENCEMENT OF
SIX MONTHS ENDED OPERATIONS) TO
JUNE 30, 1998 DECEMBER 31, 1997
---------------- -----------------
Ratio of net investment loss
to average net assets* (0.76%) (0.49%)
Ratio of operating expenses
to average net assets* 1.26% 1.73%
Ratio of interest expense
to average net assets* 0.11% 0.07%
Portfolio turnover rate 33.62% 58.73%
Average commission rate paid** $0.0634 $0.0566
Total return*** 22.30% 37.60%
Average debt ratio 1.52% 1.06%
* Annualized.
** Average commission rate paid on purchases and sales of investment
securities held long.
*** 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 Manager, if any. Total returns for a period of
less than a full year are not annualized.
-11-
<PAGE>
TROON PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS (UNAUDITED)
================================================================================
JUNE 30, 1998
SHARES MARKET VALUE
COMMON STOCKS - 97.84%
AGRICULTURAL BIOTECH - 1.73%
54,058 Monsanto Co. $ 3,020,491
-----------
APPLICATIONS SOFTWARE - 1.22%
34,681 Intuit, Inc.* 2,124,211
-----------
BROADCASTING SERVICE/PROGRAMMING - 7.31%
9,524 Grupo Televisa S.A. - Sponsored GDR* 358,340
84,734 TCI Satellite Entertainment, Inc., Class A* 497,812
293,481 Tele-Communications, Inc.,
Liberty Media Group, Series A* 11,390,878
13,259 United Video Satellite Group, Inc.* 525,388
-----------
12,772,418
-----------
BUILDING - RESIDENTIAL/COMMERCIAL - 0.99%
58,791 Lennar Corp. 1,734,334
-----------
CABLE TV - 13.48%
59,458 Cablevision Systems Corp., Class A* 4,964,743
84,558 Comcast Corp., Class A 3,361,180
129,573 Comcast Corp., Special Class A 5,259,886
38,953 Comcast UK Cable Partners Ltd., Class A * 611,095
19,595 MediaOne Group, Inc. * 860,965
210,933 Tele-Communications Inc.,TCI Group, Series A* 8,107,843
15,568 TeleWest Communications PLC - Sponsored ADR * 369,740
-----------
23,535,452
-----------
CASINO HOTELS - 1.23%
93,064 Mirage Resorts, Inc.* 1,983,473
11,157 Station Casinos, Inc.* 163,874
-----------
2,147,347
-----------
CATALOG AND MAIL ORDER HOUSES - 2.87%
199,746 USA Networks, Inc.* 5,018,618
-----------
CELLULAR TELECOMMUNICATIONS - 0.16%
10,591 CoreComm, Inc.* 278,014
-----------
The accompanying notes are an integral part of these financial statements.
-12-
<PAGE>
TROON PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS (UNAUDITED) (CONTINUED)
================================================================================
JUNE 30, 1998
SHARES MARKET VALUE
COMMON STOCKS - (CONTINUED)
COMMERCIAL SERVICES - 1.61%
88,847 Cendant Corp.* $ 1,821,363
22,250 Iron Mountain, Inc.* 995,687
-----------
2,817,050
-----------
COMMERCIAL SERVICES - FINANCE - 0.51%
52,566 Crescent Operating, Inc.* 893,622
-----------
COMMUNICATIONS SOFTWARE - 0.08%
11,394 General Magic, Inc.* 140,294
-----------
COMPUTER SOFTWARE - 8.71%
100,717 Microsoft Corp.* 10,915,205
18,992 SAP AG - Sponsored ADR 4,292,059
-----------
15,207,264
-----------
COMPUTERS - MICRO - 5.40%
101,529 Dell Computer Corp.*(a) 9,423,211
-----------
DIVERSIFIED MANUFACTURING OPERATIONS - 2.81%
154,677 CBS Corp.* 4,910,995
-----------
FINANCE - CREDIT CARDS - 2.54%
38,956 American Express Co. 4,431,245
-----------
FINANCIAL GUARANTEE INSURANCE - 1.93%
59,202 MGIC Investment Corp. 3,378,244
-----------
HOTELS & MOTELS - 1.95%
191,194 Host Marriott Corp.* 3,405,739
-----------
INTERNET CONTENT - 1.53%
56,385 At Home Corp., Series A* 2,667,744
-----------
The accompanying notes are an integral part of these financial statements.
-13-
<PAGE>
TROON PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS (UNAUDITED) (CONTINUED)
================================================================================
JUNE 30, 1998
SHARES MARKET VALUE
COMMON STOCKS - (CONTINUED)
INTERNET SOFTWARE - 1.83%
3,191 Infoseek Corporation * $ 114,477
19,609 Yahoo!, Inc.* 3,088,418
-----------
3,202,895
-----------
INVESTMENT COMPANIES - 1.94%
168,373 Tele-Communications, Inc.,
TCI Ventures Group, Series A 3,378,068
-----------
LEISURE & RECREATION/GAMING - 1.70%
102,495 AMF Bowling, Inc.* 2,972,355
-----------
MEDICAL-BIOMEDICAL/GENE - 0.01%
177 EntreMed, Inc.* 5,885
-----------
MONEY CENTER BANKS - 0.42%
8,563 BankAmerica Corp. 740,700
-----------
MULTI-LINE INSURANCE - 0.30%
8,664 Travelers Group, Inc. 525,255
-----------
MULTIMEDIA - 7.41%
131,852 Cox Communications, Inc., Class A* 6,386,647
106,994 News Corp., Ltd. - Sponsored ADR 3,437,182
34,755 Time Warner, Inc. 2,969,398
1,409 The Walt Disney Co. 148,034
-----------
12,941,261
-----------
MUSIC CLUBS - 2.95%
112,169 SFX Entertainment, Inc., Class A* 5,145,753
-----------
OFFICE FURNISHINGS - 0.29%
19,631 Steelcase, Inc., Class A 510,406
-----------
The accompanying notes are an integral part of these financial statements.
-14-
<PAGE>
TROON PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS (UNAUDITED) (CONTINUED)
================================================================================
JUNE 30, 1998
SHARES MARKET VALUE
COMMON STOCKS - (CONTINUED)
OIL & GAS DRILLING - 0.08%
3,570 Ensco International, Inc. $ 62,475
3,570 Rowan Companies, Inc. * 69,394
-----------
131,869
-----------
OIL COMPANIES - EXPLORATION &
PRODUCTION - 1.07%
77,981 Pioneer Natural Resources, Co. 1,861,796
-----------
RADIO - 1.79%
28,617 Clear Channel Communications, Inc.* 3,122,830
-----------
REAL ESTATE INVESTMENT/MANAGEMENT - 0.48%
38,676 Trizec Hahn Corp. 829,136
-----------
REAL ESTATE INVESTMENT TRUST -
HOTEL/RESTAURANT - 3.35%
121,200 Starwood Hotels & Resorts Trust 5,855,536
-----------
REAL ESTATE INVESTMENT TRUST -
OFFICE PROPERTY - 5.70%
143,739 Boston Properties, Inc. 4,887,126
150,512 Crescent Real Estate Equities Company 5,060,966
-----------
9,948,092
-----------
REAL ESTATE INVESTMENT TRUST -
SHOPPING CENTERS - 3.47%
152,742 Vornado Realty Trust 6,062,024
-----------
RETAIL - INTERNET - 1.90%
33,274 Amazon.com, Inc.* 3,319,082
-----------
RETAIL - RESTAURANTS - 2.52%
63,772 McDonald's Corp. 4,400,268
-----------
SATELLITE TELECOMMUNICATIONS - 1.61%
71,312 Globalstar Telecommunications Ltd.* 1,925,424
31,141 Loral Space and Communications Ltd.* 879,733
-----------
2,805,157
-----------
The accompanying notes are an integral part of these financial statements.
-15-
<PAGE>
TROON PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS (UNAUDITED) (CONTINUED)
================================================================================
JUNE 30, 1998
SHARES MARKET VALUE
COMMON STOCKS - (CONTINUED)
TELECOMMUNICATIONS EQUIPMENT - 1.03%
66,000 General Instrument Corp.* $ 1,794,408
------------
TELECOMMUNICATIONS SERVICES - 1.11%
36,256 NTL Inc.* 1,939,696
------------
TELEPHONE - LONG DISTANCE - 0.82%
29,642 WorldCom, Inc.* 1,435,799
------------
TOTAL COMMON STOCKS (COST $114,955,741) 170,834,564
============
PREFERRED STOCKS - 2.02%
MULTIMEDIA - 2.00%
123,552 News Corp. Ltd. - Sponsored ADR Preferred 3,490,344
------------
RADIO - 0.02%
1,964 TCI Music, Inc., CV Preferred, Class A* 36,334
------------
TOTAL PREFERRED STOCKS (COST $2,360,717) 3,526,678
============
NUMBER OF
CONTRACTS
CALL OPTIONS - 1.32%
AGRICULTURAL BIOTECH- 0.05%
160 Monsanto Co., 07/18/98, $50.00 92,000
------------
BEVERAGES-NON-ALCOHOLIC - 0.01%
88 Coca-Cola Femsa S.A.-Ser L, 07/18/98, $ 16.625 7,700
------------
The accompanying notes are an integral part of these financial statements.
-16-
<PAGE>
TROON PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS (UNAUDITED) (CONTINUED)
================================================================================
NUMBER OF JUNE 30, 1998
CONTRACTS MARKET VALUE
CALL OPTIONS - (CONTINUED)
BROADCASTING SERVICE/PROGRAMMING - 0.12%
272 Grupo Televisa S.A.-
Sponsored GDR, 07/18/98, $30.00 $ 204,000
----------
CABLE TV - 0.10%
440 Tele-Communications Inc. TCI Group,
08/22/98, $35.00 170,500
----------
COMMERCIAL SERVICES - 0.09%
220 Cendant Corporation, 08/22/98, $15.00 132,000
132 Cendant Corporation, 08/22/98, $20.00 31,350
----------
163,350
----------
INTERNET SOFTWARE - 0.08%
160 Netscape Communications Corp.,
07/18/98, $20.00 130,000
----------
MULTIMEDIA - 0.11%
88 The Walt Disney Co., 07/18/98, $100.00 63,800
160 Viacom, Inc., Class B, 07/18/98, $50.00 136,000
----------
199,800
----------
REAL ESTATE INVESTMENT TRUST -
HOTEL/RESTAURANT - 0.18%
300 Starwood Hotels & Resorts Trusts,
08/22/98, $40.00 255,000
136 Starwood Hotels & Resorts Trusts,
08/22/98, $45.00 59,500
----------
314,500
----------
TELEPHONE - LONG DISTANCE - 0.58%
160 AT&T Corporation, 08/22/98, $50.00 130,000
597 MCI Communications Corp., 07/18/98, $45.00 776,100
80 WorldCom, Inc. 07/18/98, $35.00 109,000
----------
1,015,100
----------
TOTAL CALL OPTIONS (COST $2,355,422) 2,296,950
==========
PUT OPTIONS - 0.06%
COMPUTERS - MICRO - 0.03%
80 Sun Microsystems, Inc., 07/18/98, $50.00 52,000
----------
The accompanying notes are an integral part of these financial statements.
-17-
<PAGE>
TROON PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS (UNAUDITED) (CONTINUED)
================================================================================
NUMBER OF JUNE 30, 1998
CONTRACTS MARKET VALUE
PUT OPTIONS - (CONTINUED)
STOCK INDEX - 0.03%
400 S&P 100 Index, 07/18/98, $500.00 $ 25,000
400 S&P 100 Index, 07/18/98, $510.00 32,520
------------
57,520
------------
TOTAL PUT OPTIONS (COST $588,520) 109,520
============
TOTAL INVESTMENTS (COST $120,260,400)**-101.24% 176,767,712
============
OTHER ASSETS, LESS LIABILITIES - (1.24%) (2,156,417)
------------
NET ASSETS - 100.00% $174,611,295
============
(a) Partially or wholly held in a pledged account by the Custodian as collateral
for borrowings.
* Non-income Producing Security
** Also cost for federal income tax purposes.
The accompanying notes are an integral part of these financial statements.
-18-
