TROON PARTNERS, L.P.
FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED
JUNE 30, 1999
(UNAUDITED)
<PAGE>
TROON PARTNERS, L.P.
FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED
JUNE 30, 1999
(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 ...........................................11
<PAGE>
TROON PARTNERS, L.P.
STATEMENT OF ASSETS, LIABILITIES AND PARTNERS' CAPITAL (IN THOUSANDS)
- --------------------------------------------------------------------------------
JUNE 30, 1999
(UNAUDITED)
ASSETS
Investments in securities, at market
(identified cost - $200,782) $335,049
Dividends receivable 249
Organizational costs (net of accumulated
amortization of $112) 124
Other assets 36
--------
TOTAL ASSETS 335,458
--------
LIABILITIES
Due to broker 532
Loan payable 5,473
Loan interest payable 17
Management fee payable 243
Accrued expenses 298
--------
TOTAL LIABILITIES 6,563
--------
NET ASSETS $328,895
========
PARTNERS' CAPITAL - NET ASSETS
Represented by:
Capital contributions - net $168,239
Accumulated net investment loss (1,727)
Accumulated net realized gain on investments 28,116
Accumulated net unrealized appreciation on investments 134,267
--------
PARTNERS' CAPITAL - NET ASSETS $328,895
========
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, 1999
(UNAUDITED)
INVESTMENT INCOME
Dividends $ 768
Interest 55
-------
823
-------
EXPENSES
OPERATING EXPENSES:
Management fee 1,277
Administration fees 159
Professional fees 129
Custodian fees 69
Amortization of organizational costs 24
Individual General Partners' fees and expenses 14
Insurance expense 11
Miscellaneous 10
-------
TOTAL OPERATING EXPENSES 1,693
Interest expense 50
-------
TOTAL EXPENSES 1,743
-------
NET INVESTMENT LOSS (920)
-------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
REALIZED GAIN ON INVESTMENTS:
Investment securities 27,981
Purchased options 209
-------
NET REALIZED GAIN ON INVESTMENTS 28,190
-------
NET CHANGE IN UNREALIZED APPRECIATION ON INVESTMENTS 53,160
-------
NET REALIZED AND UNREALIZED GAIN 81,350
-------
INCREASE IN PARTNERS' CAPITAL DERIVED
FROM INVESTMENT ACTIVITIES $80,430
=======
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)
- --------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1999 DECEMBER 31, 1998
(UNAUDITED)
FROM INVESTMENT ACTIVITIES
Net investment loss $ (920) $ (462)
Net realized gain (loss)
on investments 28,190 (439)
Net change in unrealized
appreciation on investments 53,160 52,928
-------- --------
INCREASE IN PARTNERS' CAPITAL
DERIVED FROM INVESTMENT
ACTIVITIES 80,430 52,027
PARTNERS' CAPITAL TRANSACTIONS
Capital contributions 46,791 64,460
Capital withdrawals - General Partner (1,298) (5,939)
Capital withdrawals - Limited Partners 0 (12,975)
-------- --------
INCREASE IN PARTNERS' CAPITAL
DERIVED FROM CAPITAL TRANSACTIONS 45,493 45,546
PARTNERS' CAPITAL AT BEGINNING
OF PERIOD 202,972 105,399
-------- --------
PARTNERS' CAPITAL AT END OF PERIOD $328,895 $202,972
======== ========
The accompanying notes are an integral part of these financial statements.
-3-
<PAGE>
TROON PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 1999 (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 First
Amended and Restated Limited Partnership Agreement dated as of February
10, 1999. 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", who serve as the
governing board of the Partnership, and a "Manager." The Manager is
Troon Management, L.L.C., whose principal members are CIBC World
Markets Corp. (formerly CIBC Oppenheimer Corp.) and Mark Asset
Management Corporation ("MAMC"). Investment professionals at MAMC
manage the Partnership's investment portfolio on behalf of the Manager
under the supervision of CIBC World Markets Corp. ("CIBC WM").
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.
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.
-4-
<PAGE>
TROON PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 1999 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
A. PORTFOLIO VALUATION (CONTINUED)
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
asked 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 asked
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
asked 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. 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 on February 27, 1997.
-5-
<PAGE>
TROON PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 1999 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. INCOME TAXES
No provision for the payment of Federal, state or local income taxes on
the profits of the Partnership will be made. The Partners are
individually liable for the income taxes on their share of the
Partnership's income.
3. MANAGEMENT FEE, RELATED PARTY TRANSACTIONS AND OTHER
CIBC WM 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 WM 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 period ended June 30, 1999, CIBC WM earned $5,979 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. During the six months ended June 30, 1999, incentive
allocations to the Manager were $4,219,325.
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. One Individual General
Partner is an "interested person" of 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, 1999, fees (including meeting fees and
the annual retainer) and expenses paid to the Individual General
Partners totaled $21,790.
Chase Manhattan Bank 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.
-6-
<PAGE>
TROON PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 1999 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
4. SECURITIES TRANSACTIONS
Aggregate purchases and sales of investment securities, excluding
short-term securities, for the six months ended June 30, 1999, amounted
to $165,289,076 and $127,823,704, respectively.
At June 30, 1999, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes. At June 30, 1999, accumulated net unrealized appreciation on
investments was $134,266,937, consisting of $139,269,611 gross
unrealized appreciation and $5,002,674 gross unrealized depreciation.
Due to broker 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 satisfy an asset coverage requirement of
300% of its indebtedness, including amounts borrowed, measured at the
time the Partnership incurs the indebtedness. 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. As of June 30, 1999, the Partnership had
outstanding margin borrowings of $5,472,546. For the six months ended
June 30, 1999, the average daily amount of such borrowings was
$1,176,644.
6. 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
contracts, options and securities sold, 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 contains 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 maintains cash in bank deposit accounts which, at
times, may exceed federally insured limits. The Partnership has not
experienced any losses in such accounts and does not believe it is
exposed to any significant credit risk on cash.
The risk associated with purchasing an option is that the Partnership
pays a premium whether or not
-7-
<PAGE>
TROON PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 1999 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
6. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK OR
CONCENTRATIONS OF CREDIT RISK (CONTINUED)
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.
Transactions in purchased options were as follows:
CALL OPTIONS PUT OPTIONS
----------------------------- ----------------------------
NUMBER NUMBER
OF CONTRACTS COST OF CONTRACTS COST
-------------- ----------- -------------- -----------
Beginning balance 1,486 $ 1,507,457 1,008 $ 922,044
Options purchased 9,272 11,630,488 7,712 8,695,375
Options closed (9,758) (11,986,183) (6,872) (8,303,152)
Expired options - - (1,698) (1,265,692)
-------------- ----------- -------------- -----------
Options outstanding
at June 30, 1999 1,000 $ 1,151,762 150 $ 48,575
-------------- ----------- -------------- -----------
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, 1999
------------------------
Equity securities $ 81,716,175
Equity options 461,655
Equity index options (827,360)
------------
$ 81,350,470
------------
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 MONTH ENDED
JUNE 30, 1999 JUNE 30, 1999
--------------- -----------------------
ASSETS:
Equity options $1,155,000 $1,351,763
Equity index options 3,750 33,488
-8-
<PAGE>
TROON PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 1999 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
7. FINANCIAL INSTRUMENTS HELD OR ISSUED FOR TRADING PURPOSES (CONTINUED)
Average market values presented above are based upon month-end market
values during the six months ended June 30, 1999.
8. SELECTED FINANCIAL RATIOS AND OTHER SUPPLEMENTAL INFORMATION
The following represents the ratios to average net assets and other
supplemental information for each period:
<TABLE>
<CAPTION>
FEBRUARY 27, 1997
SIX MONTHS (COMMENCEMENT OF
ENDED YEAR ENDED OPERATIONS) TO
JUNE 30, 1999 DECEMBER 31, 1998 DECEMBER 31, 1997
------------- ----------------- -----------------
<S> <C> <C> <C>
Ratio of net investment loss to (0.68%)* (0.03%) (0.49%)*
average net assets
Ratio of operating expenses to 1.26%* 1.43% 1.73%*
average net assets
Ratio of interest expense to 0.04%* 0.07% 0.07%*
average net assets
Portfolio turnover rate 46.80% 72.00% 58.73%
Average commission rate paid $0.0608** $0.0616** $0.0566**
Total return 35.36%*** 37.34%*** 37.60%***
Average debt ratio 0.43% 1.06% 1.06%
<FN>
* 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 Limited
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.
</FN>
</TABLE>
9. YEAR 2000
Like other investment companies and financial and business
organizations around the world, the Partnership could be adversely
affected if the computer systems it uses and those used by the
Partnership's brokers and other major service providers do not properly
process and calculate date-related information and data from and after
January 1, 2000. This is commonly known as the "Year 2000 Issue."
-9-
<PAGE>
TROON PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 1999 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
9. YEAR 2000 (CONTINUED)
The Partnership has assessed its computer systems and the systems
compliance issues of its brokers and other major service providers. The
Partnership has taken steps that it believes are reasonably designed to
address the Year 2000 Issue with respect to the computer systems it
uses and has obtained satisfactory assurances that comparable steps are
being taken by its brokers and other major service providers. At this
time, however, there can be no assurance that these steps will be
sufficient to address all Year 2000 Issues. The inability of the
Partnership or its third party providers to timely complete all
necessary procedures to address the Year 2000 Issue could have a
material adverse effect on the Partnership's operations. Management
will continue to monitor the status of and its exposure to this issue.
For the six months ended June 30, 1999, the Partnership incurred no
Year 2000 related expenses, and it does not expect to incur significant
Year 2000 expenses in the future.
The Partnership intends to develop contingency plans designed to ensure
that third party non-compliance will not materially affect the
Partnership's operations.
-10-
<PAGE>
TROON PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
JUNE 30, 1999
SHARES MARKET VALUE
COMMON STOCKS - 101.32%
ATHLETIC FOOTWEAR - 0.75%
38,637 Nike, Inc., Class B $ 2,448,620
--------------
BROADCASTING SERVICES/PROGRAMMING - 15.23%
803,662 AT&T Corp. - Liberty Media Group, Class A* (a) 29,534,579
74,366 Clear Channel Communications, Inc.* 5,126,643
261,578 Fox Entertainment Group, Inc., Class A* 7,046,388
42,014 Grupo Televisa S.A. - Sponsored GDR* 1,882,773
1,668 King World Productions, Inc.* 58,068
17,690 TCI Music, Inc., Class A 625,784
158,473 TV Guide, Inc., Class A* 5,804,074
--------------
50,078,309
--------------
BUILDING - RESIDENTIAL/COMMERCIAL - 0.53%
72,652 Lennar Corp. 1,743,648
--------------
CABLE TV - 12.05%
155,999 Cablevision Systems Corp., Class A* 10,919,930
126,055 Comcast Corp., Class A 4,514,407
467,438 Comcast Corp., Special Class A 17,967,382
83,957 MediaOne Group, Inc. * 6,244,302
--------------
39,646,021
--------------
CASINO HOTELS - 1.46%
96,180 Mandalay Resort Group 2,037,862
290,244 Park Place Entertainment Corp.* 2,774,442
--------------
4,812,304
--------------
CATALOG AND MAIL ORDER HOUSES - 2.96%
242,458 USA Networks, Inc.* 9,728,627
--------------
CELLULAR TELECOMMUNICATIONS - 0.53%
61,500 VoiceStream Wireless Corp.* 1,748,937
--------------
COMPUTER DATA SECURITY - 2.28%
87,060 VeriSign, Inc.* 7,508,925
--------------
The accompanying notes are an integral part of these financial statements.
-11-
<PAGE>
TROON PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
JUNE 30, 1999
SHARES MARKET VALUE
COMMON STOCKS - (CONTINUED)
COMPUTER SOFTWARE - 3.74%
71,774 Microsoft Corp.* $ 6,473,154
157,168 Oracle Corp.* (a) 5,834,862
--------------
12,308,016
--------------
COMPUTERS - INTEGRATED SYSTEMS - 0.34%
68,067 Silicon Graphics, Inc.* 1,114,597
--------------
COMPUTERS - MEMORY DEVICES - 1.01%
60,658 EMC Corp.* 3,336,190
--------------
COMPUTERS - MICRO - 1.63%
145,222 Dell Computer Corp.* 5,373,214
--------------
DIVERSIFIED OPERATIONS - 1.26%
82,353 Seagram Co. Ltd. 4,148,532
--------------
DIVERSIFIED OPERATIONS/
COMMERCIAL SERVICES - 0.11%
52,230 Crescent Operating, Inc.* 355,843
--------------
FINANCE - CREDIT CARDS - 2.22%
56,158 American Express Co. 7,307,560
--------------
FINANCE - INVESTMENT BANKER/BROKER - 2.06%
93,978 Goldman Sachs Group, Inc.* 6,789,911
--------------
HOTELS & MOTELS - 1.74%
187,510 Starwood Hotels & Resorts Worldwide, Inc. 5,730,868
--------------
INTERNET CONTENT - 4.37%
82,326 At Home Corp., Series A* 4,440,500
2,112 Broadcast.com, Inc.* 282,085
26,371 Inktomi Corp. * 3,467,786
71,943 SportsLine USA, Inc.* 2,580,955
20,854 Yahoo!, Inc.* 3,592,102
--------------
14,363,428
--------------
INTERNET SOFTWARE - 0.06%
2,557 RealNetworks, Inc.* 176,113
--------------
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, 1999
SHARES MARKET VALUE
COMMON STOCKS - (CONTINUED)
LEISURE & RECREATION/GAMING - 0.30%
116,359 AMF Bowling, Inc.* $ 981,837
--------------
MULTIMEDIA - 8.01%
184,073 CBS Corp.* 8,018,772
304,998 Cox Communications, Inc., Class A* 11,227,892
20,991 News Corp Ltd. - Sponsored ADR 741,255
87,714 Time Warner, Inc. 6,370,229
--------------
26,358,148
--------------
MUSIC CLUBS - 2.06%
105,826 SFX Entertainment, Inc.* 6,772,864
--------------
NETWORKING PRODUCTS - 0.60%
30,814 Cisco Systems, Inc.* 1,985,593
--------------
RADIO - 2.25%
9,419 CD Radio, Inc.* 286,987
40,268 Grupo Radio Centro SA - Sponsored ADR 211,407
19,242 Hispanic Broadcasting Corp.* 1,459,987
183,931 Infinity Broadcasting Corp., Class A * 5,437,552
--------------
7,395,933
--------------
REAL ESTATE DEVELOPMENT - 0.81%
124,191 TrizecHahn Corp. 2,530,392
15,269 Vornado Operating, Inc. * 122,152
--------------
2,652,544
--------------
REAL ESTATE INVESTMENT/MANAGEMENT - 0.38%
58,883 LNR Property Corp. 1,258,624
--------------
REAL ESTATE INVESTMENT TRUST -
HOTEL/RESTAURANT - 0.90%
247,896 Host Marriott Corp. 2,943,765
--------------
REAL ESTATE INVESTMENT TRUST -
OFFICE PROPERTY - 2.14%
195,754 Boston Properties, Inc. 7,022,675
--------------
REAL ESTATE INVESTMENT TRUST -
SHOPPING CENTERS - 2.18%
202,766 Vornado Realty Trust 7,160,276
--------------
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, 1999
SHARES MARKET VALUE
COMMON STOCKS - (CONTINUED)
RETAIL - APPAREL/SHOES - 0.98%
63,582 The Gap, Inc. $ 3,202,943
RETAIL - INTERNET - 3.68%
53,351 Amazon.com, Inc.* (a) 6,675,544
20,395 eBay, Inc. * 3,087,293
77,752 Tickemaster Online -
CitySearch, Inc., Class B* 2,351,998
--------------
12,114,835
--------------
RETAIL - RESTAURANTS - 1.89%
151,347 McDonald's Corp. 6,224,145
--------------
SATELLITE TELECOMMUNICATIONS - 2.77%
13,927 EchoStar Communications Corp., Class A* 2,136,931
127,642 Globalstar Telecommunications Ltd.* 2,959,763
222,686 Loral Space & Communications Ltd.* 4,008,348
2,067 P.T. Pasifik Satelit Nusantara, ADR* 16,794
--------------
9,121,836
--------------
TELECOMMUNICATIONS EQUIPMENT - 9.40%
36,740 General Instrument Corp.* 1,561,450
204,618 QUALCOMM, Inc.* 29,362,683
--------------
30,924,133
--------------
TELECOMMUNICATIONS SERVICES - 2.94%
84,360 NTL, Inc.* 7,270,820
82,284 Time Warner Telecom, Inc., Class A* 2,386,236
--------------
9,657,056
--------------
TELEPHONE - INTEGRATED - 5.27%
310,208 AT&T Corp. 17,313,611
--------------
TELEVISION - 0.43%
35,936 Pegasus Communications Corp.* 1,417,244
--------------
TOTAL COMMON STOCKS (COST $198,931,512) 333,227,725
==============
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, 1999
SHARES MARKET VALUE
PREFERRED STOCKS - 0.20%
MULTIMEDIA - 0.20%
20,989 News Corp. Ltd. - Sponsored ADR Preferred $ 662,476
--------------
TOTAL PREFERRED STOCK (COST $650,165) 662,476
==============
NUMBER OF
CONTRACTS
CALL OPTIONS - 0.35%
CABLE TV - 0.17%
400 MediaOne Group, Inc., 07/17/99, $60.00 565,000
--------------
COMPUTER SOFTWARE - 0.07%
200 Oracle Corp., 07/17/99, $25.00 240,000
--------------
TELECOMMUNICATIONS SERVICES - 0.11%
400 Frontier Corp., 07/17/99, $50.00 350,000
--------------
TOTAL CALL OPTIONS (COST $1,151,762) 1,155,000
==============
PUT OPTIONS - 0.00%
STOCK INDEX - 0.00%
150 S & P 100, 07/17/99, $600.00 3,750
--------------
TOTAL PUT OPTIONS (COST $48,575) 3,750
==============
TOTAL INVESTMENTS
(COST $200,782,014) - 101.87% 335,048,951
--------------
OTHER ASSETS,
LESS LIABILITIES - (1.87%) (6,153,578)
--------------
NET ASSETS - 100.00% $ 328,895,373
==============
(a) Partially held in a pledged account by the custodian as collateral for loan
payable.
* Non-income producing security.
The accompanying notes are an integral part of these financial statements.
-15-
