TROON PARTNERS, L.P.
FINANCIAL STATEMENTS
WITH REPORT OF INDEPENDENT AUDITORS
FOR THE YEAR ENDED DECEMBER 31, 1999
<PAGE>
TROON PARTNERS, L.P.
FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 1999
CONTENTS
Report of Independent Auditors............................................. 1
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
<PAGE>
Report of Independent Auditors
To the Partners of
Troon Partners, L.P.
We have audited the accompanying statement of assets, liabilities and partners'
capital of Troon Partners, L.P. (the "Partnership"), including the schedule of
portfolio investments, as of December 31, 1999, and the related statement of
operations for the year then ended, and the statement of changes in partners'
capital--net assets for each of the two years in the period then ended. These
financial statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of December 31, 1999, by
correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Troon Partners, L.P. at
December 31, 1999, the results of its operations for the year then ended, and
the changes in its partners' capital--net assets for each of the two years in
the period then ended, in conformity with accounting principles generally
accepted in the United States.
February 11, 2000
-1-
<PAGE>
TROON PARTNERS, L.P.
STATEMENT OF ASSETS, LIABILITIES AND PARTNERS' CAPITAL (IN THOUSANDS)
- --------------------------------------------------------------------------------
DECEMBER 31, 1999
ASSETS
Investments in securities, at market (cost - $295,744) $ 640,726
Dividends receivable 311
Organizational costs (net of accumulated amortization of $136) 100
Other assets 17
------------
TOTAL ASSETS 641,154
------------
LIABILITIES
Withdrawals payable 54,027
Loan payable 18,290
Due to broker 3,616
Management fee payable 370
Loan interest payable 80
Accrued expenses 288
------------
TOTAL LIABILITIES 76,671
------------
NET ASSETS $ 564,483
============
PARTNERS' CAPITAL
Represented by:
Capital contributions - (net of syndication costs of $50) $ 240,409
Capital withdrawals (75,572)
Accumulated net investment loss (3,257)
Accumulated net realized gain on investments 57,921
Accumulated net unrealized appreciation on investments 344,982
------------
PARTNERS' CAPITAL - NET ASSETS $ 564,483
============
The accompanying notes are an integral part of these financial statements.
-2-
<PAGE>
TROON PARTNERS, L.P.
STATEMENT OF OPERATIONS (IN THOUSANDS)
- --------------------------------------------------------------------------------
YEAR ENDED
DECEMBER 31, 1999
INVESTMENT INCOME
Interest $ 68
Dividends 1,674
-----------
1,742
-----------
EXPENSES
OPERATING EXPENSES:
Management fee 3,094
Administration fees 362
Professional fees 243
Custodian fees 130
Amortization of organizational costs 47
Individual General Partners' fees and expenses 27
Insurance expense 22
Miscellaneous 21
-----------
TOTAL OPERATING EXPENSES 3,946
Interest expense 246
-----------
TOTAL EXPENSES 4,192
-----------
NET INVESTMENT LOSS (2,450)
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
REALIZED GAIN ON INVESTMENTS:
Investment securities 54,078
Purchased options 3,917
-----------
NET REALIZED GAIN ON INVESTMENTS 57,995
NET CHANGE IN UNREALIZED APPRECIATION ON INVESTMENTS 263,875
-----------
NET REALIZED AND UNREALIZED GAIN 321,870
INCREASE IN PARTNERS' CAPITAL DERIVED FROM -----------
INVESTMENT ACTIVITIES $ 319,420
===========
The accompanying notes are an integral part of these financial statements.
-3-
<PAGE>
TROON PARTNERS, L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL - NET ASSETS (IN THOUSANDS)
- -------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1999 DECEMBER 31, 1998
<S> <C> <C>
FROM INVESTMENT ACTIVITIES
Net investment loss $ (2,450) $ (462)
Net realized gain (loss) on investments 57,995 (439)
Net change in unrealized appreciation on
investments 263,875 52,928
--------- ---------
INCREASE IN PARTNERS' CAPITAL DERIVED
FROM INVESTMENT ACTIVITIES 319,420 52,027
PARTNERS' CAPITAL TRANSACTIONS
Capital contributions 98,749 64,460
Capital withdrawals - General Partner (37,287) (5,939)
Capital withdrawals - Limited Partners (19,371) (12,975)
--------- ---------
INCREASE IN PARTNERS' CAPITAL
DERIVED FROM CAPITAL TRANSACTIONS 42,091 45,546
PARTNERS' CAPITAL AT BEGINNING OF YEAR 202,972 105,399
--------- ---------
PARTNERS' CAPITAL AT END OF YEAR $ 564,483 $ 202,972
========= =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
-4-
<PAGE>
TROON PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS - DECEMBER 31, 1999
- --------------------------------------------------------------------------------
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, options, bonds 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. ("CIBC WM"), (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 CIBC WM's supervision.
The acceptance of initial and additional capital contributions from
Limited Partners 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.
-5-
<PAGE>
TROON PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS - DECEMBER 31, 1999 (CONTINUED)
- --------------------------------------------------------------------------------
2. 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 sold 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 sold 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 sold 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.
-6-
<PAGE>
TROON PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS - DECEMBER 31, 1999 (CONTINUED)
- --------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. ORGANIZATION COSTS
The expenses incurred by the Partnership in connection with its
organization, which were $236,274, are being amortized over a 60-month
period beginning with the commencement of operations, February 27,
1997.
C. INCOME TAXES
No provision for the payment of Federal, state or local income taxes on
the profits of the Partnership have been made. The Partners are
individually liable for 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. 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 year ended December 31, 1999, CIBC WM earned $14,019 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 year ended December 31, 1999, incentive
allocations to the Manager were $52,923,235.
Each 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.
-7-
<PAGE>
TROON PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS - DECEMBER 31, 1999 (CONTINUED)
- --------------------------------------------------------------------------------
3. MANAGEMENT FEE, RELATED PARTY TRANSACTIONS AND OTHER (CONTINUED)
For the year ended December 31, 1999, fees paid to the Individual
General Partners (including meeting fees and the annual retainer) and
expenses totaled $26,759.
The 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.
4. SECURITIES TRANSACTIONS
Aggregate purchases and sales of investment securities, excluding
short-term securities, for the year ended December 31, 1999, amounted
to $372,162,262 and $271,936,946, respectively.
At December 31, 1999, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes. At December 31, 1999, accumulated net unrealized appreciation
on investments was $344,981,891 consisting of $353,982,606 gross
unrealized appreciation and $9,000,715 gross unrealized depreciation.
Due to 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 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 0.875%. The Partnership pledges securities as collateral for
the margin borrowings, which are maintained in a segregated account
held by the Custodian. As of December 31, 1999, the Partnership had
outstanding margin borrowings of $18,290,031. For the year ended
December 31, 1999, the average daily amount of such borrowings was
$3,465,152.
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
-8-
<PAGE>
TROON PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS - DECEMBER 31, 1999 (CONTINUED)
- --------------------------------------------------------------------------------
6. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK OR
CONCENTRATIONS OF CREDIT RISK (CONTINUED)
forward and futures 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 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 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:
<TABLE>
<CAPTION>
CALL OPTIONS PUT OPTIONS
-------------------------------- ------------------------------
NUMBER NUMBER
OF CONTRACTS COST OF CONTRACTS COST
------------ -------------- ------------ ------------
<S> <C> <C> <C> <C>
Beginning balance 1,486 $ 1,507,457 1,008 $ 922,044
Options purchased 30,475 40,858,852 17,005 18,623,569
Options closed (27,738) (35,289,155) (14,173) (16,998,330)
Options expired - - (3,516) (2,319,511)
Options split 216 - - -
------------ ------------ ----------- ------------
Options outstanding at
December 31, 1999 4,439 $ 7,077,154 324 $ 227,772
============ ============ =========== ============
</TABLE>
There were no transactions in written options during the year ended
December 31, 1999.
-9-
<PAGE>
TROON PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS - DECEMBER 31, 1999 (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 YEAR ENDED
DECEMBER 31, 1999
--------------------
Equity securities $314,369,145
Equity options 9,104,644
Equity index options (1,603,187)
------------
$321,870,602
============
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 YEAR ENDED
DECEMBER 31, 1999 DECEMBER 31, 1999
----------------- -----------------------
ASSETS:
Equity options $ 11,345,709 $ 2,868,662
Equity index options 76,950 56,813
Average market values presented above are based upon month-end market
values during the year ended December 31, 1999.
-10-
<PAGE>
TROON PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS - DECEMBER 31, 1999 (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:
<TABLE>
<CAPTION>
FEBRUARY 27, 1997
YEAR ENDED YEAR ENDED (COMMENCEMENT OF OPERATIONS)
DECEMBER 31, 1999 DECEMBER 31, 1998 TO DECEMBER 31, 1997
----------------- ----------------- ----------------------------
<S> <C> <C> <C>
Ratio of net investment loss to
average net assets (0.73%) (0.30%) (0.49%)*
Ratio of operating expenses to
average net assets 1.17% 1.43% 1.73%*
Ratio of interest expense to average
net assets 0.07% 0.07% 0.07%*
Portfolio turnover 79.26% 72.00% 58.73%
Total return ** 120.54% 37.34% 37.60%
Average debt ratio 1.03% 1.06% 1.06%
<FN>
* Annualized.
** 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.
</FN>
</TABLE>
-11-
<PAGE>
TROON PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS - DECEMBER 31, 1999 (CONTINUED)
- --------------------------------------------------------------------------------
9. SUBSEQUENT EVENT
On January 1, 2000, the Partnership received initial and additional
capital contributions from Limited Partners of approximately
$84,000,000.
-12-
<PAGE>
TROON PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DECEMBER 31, 1999
SHARES MARKET VALUE
COMMON STOCK - 111.48%
AIRLINES - 0.12%
12,292 Lufthansa-Unsponsored ADR $ 284,597
4,885 UAL Corp. * 378,892
-----------
663,489
-----------
ATHLETIC FOOTWEAR - 0.84%
95,343 Nike, Inc., Class B 4,725,485
-----------
AUDIO/VIDEO PRODUCTS - 0.43%
34,326 Gemstar International Group Ltd. * 2,445,728
-----------
AUTO - CARS/LIGHT TRUCKS - 0.35%
26,846 General Motors Corp. 1,951,382
-----------
BROADCASTING SERVICES/PROGRAMMING - 13.71%
856,516 AT&T Corp. - Liberty Media Group, Class A* (a) 48,661,244
384,264 Fox Entertainment Group, Inc., Class A* 9,582,776
44,309 Grupo Televisa S.A. - Sponsored GDR 3,024,089
334,562 TV Guide, Inc., Class A* 14,386,166
46,142 XM Satellite Radio Holdings Inc., Class A* 1,759,163
-----------
77,413,438
-----------
BUILDING - RESIDENTIAL/COMMERCIAL - 0.20%
70,519 Lennar Corp. 1,145,934
-----------
CABLE TV - 7.93%
160,234 Cablevision Systems Corp., Class A* 12,097,667
141,419 Comcast Corp., Class A 6,770,435
512,491 Comcast Corp., Special Class A 25,913,082
-----------
44,781,184
-----------
CASINO HOTELS - 1.16%
101,168 Mandalay Resort Group * 2,036,006
360,863 Park Place Entertainment Corp.* 4,510,787
-----------
6,546,793
-----------
The accompanying notes are an integral part of these financial statements.
-13-
<PAGE>
TROON PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
DECEMBER 31, 1999
SHARES MARKET VALUE
COMMON STOCK - (CONTINUED)
CATALOG AND MAIL ORDER HOUSES - 2.43%
248,678 USA Networks, Inc.* $13,739,459
-----------
CELLULAR TELECOMMUNICATIONS - 1.41%
63,989 Sprint Corp., (PCS Group) * 6,558,873
28,841 Vodafone Airtouch PLC-Sponsored ADR 1,427,630
-----------
7,986,503
-----------
COMMERCIAL SERVICES - 0.16%
33,084 Cendant Corp.* 878,810
-----------
COMPUTER DATA SECURITY - 6.27%
185,416 VeriSign, Inc.* 35,402,960
-----------
COMPUTERS - MEMORY DEVICES - 1.39%
71,560 EMC Corp.* 7,817,930
-----------
COMPUTERS - MICRO - 0.87%
96,796 Dell Computer Corp.* 4,936,596
-----------
COMPUTER SOFTWARE - 1.62%
78,233 Microsoft Corp.* 9,133,703
-----------
DIVERSIFIED OPERATIONS - 1.52%
191,437 Seagram Co., Ltd. 8,566,806
-----------
ELECTRIC COMPONENTS - SEMICONDUCTORS - 0.81%
55,406 Intel Corp. 4,560,634
-----------
ENTERPRISE SOFTWARE/SERVICE - 3.21%
161,507 Oracle Corp.* 18,098,958
-----------
ENTERTAINMENT SOFTWARE - 0.69%
34,816 Electronic Arts, Inc.* 2,924,544
104,700 The 3DO Co. * 952,142
-----------
3,876,686
-----------
The accompanying notes are an integral part of these financial statements.
-14-
<PAGE>
TROON PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
DECEMBER 31, 1999
SHARES MARKET VALUE
COMMON STOCK - (CONTINUED)
FINANCE - INVESTMENT BANKER/BROKER - 1.79%
107,439 Goldman Sachs Group, Inc. $10,119,465
-----------
GOLD MINING - 0.06%
33,138 Placer Dome, Inc. 356,234
-----------
HOTELS & MOTELS - 0.83%
199,610 Starwood Hotels & Resorts Worldwide, Inc. 4,690,835
-----------
INTERNET CONTENT - 3.33%
83,285 Go.com * 1,978,019
55,922 Hollywood.com, Inc. * 1,062,518
75,573 SportsLine.com, Inc. * 3,788,097
27,704 Yahoo!, Inc.* 11,987,188
-----------
18,815,822
-----------
INTERNET SOFTWARE - 2.61%
120,628 At Home Corp., Series A * 5,171,926
51,013 Exodus Communications, Inc. * 4,530,618
56,586 Inktomi Corp. * 5,022,007
-----------
14,724,551
-----------
LEISURE & RECREATION/GAMING - 0.18%
322,319 AMF Bowling, Inc.* 1,007,247
-----------
MACHINERY - GENERAL INDUSTRIAL - 0.98%
23,095 Mannesmann AG-Sponsored ADR 5,544,001
-----------
MONEY CENTER BANKS - 1.43%
6,152 Bayerische Hypovereinsbank-Sponsored ADR 418,065
83,432 Deutsche Bank AG - Sponsored ADR 7,011,876
12,354 Dresdner Bank AG - Sponsored ADR 668,660
-----------
8,098,601
-----------
The accompanying notes are an integral part of these financial statements.
-15-
<PAGE>
TROON PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
DECEMBER 31, 1999
SHARES MARKET VALUE
COMMON STOCK - (CONTINUED)
MULTIMEDIA - 10.09%
267,358 CBS Corp.* $17,094,336
342,782 Cox Communications, Inc., Class A* 17,653,273
92,743 Time Warner, Inc. 6,706,525
158,014 Viacom Inc., Class B * 9,550,050
203,939 Walt Disney Co. 5,965,215
-----------
56,969,399
-----------
MUSIC/CLUBS - 1.11%
173,016 SFX Entertainment, Inc.* 6,261,085
-----------
NETWORKING PRODUCTS - 0.66%
34,983 Cisco Systems, Inc.* 3,747,554
-----------
RADIO - 1.92%
43,293 Grupo Radio Centro SA - Sponsored ADR * 362,579
225,709 Infinity Broadcasting Corp., Class A * 8,167,957
22,012 Sirius Satellite Radio, Inc.* 979,534
17,693 Westwood One, Inc.* 1,344,668
-----------
10,854,738
-----------
REAL ESTATE DEVELOPMENT - 0.47%
150,767 Trizec Hahn Corp. 2,544,193
18,141 Vornado Operating, Inc. * 108,846
-----------
2,653,039
-----------
REAL ESTATE INVESTMENT TRUST - HOTEL/RESTAURANT - 0.40%
271,510 Host Marriott Corp. 2,239,958
-----------
REAL ESTATE INVESTMENT TRUST - OFFICE PROPERTY - 1.20%
218,205 Boston Properties, Inc. 6,791,631
-----------
REAL ESTATE INVESTMENT TRUST - SHOPPING CENTERS - 1.37%
237,325 Vornado Realty Trust 7,713,062
-----------
The accompanying notes are an integral part of these financial statements.
-16-
<PAGE>
TROON PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
DECEMBER 31, 1999
SHARES MARKET VALUE
COMMON STOCK - (CONTINUED)
RETAIL - APPAREL/SHOES - 1.24%
152,508 The Gap, Inc. $ 7,015,368
-----------
RETAIL - DRUG STORE - 0.12%
58,878 Rite Aid Corp. 655,018
-----------
RETAIL - INTERNET - 3.35%
100,204 Amazon.com, Inc. 7,628,030
11,006 CDnow, Inc. * 108,684
20,675 Drugstore.com, Inc. * 748,187
36,500 eBay, Inc. * 4,569,362
111,032 Tickemaster Online - CitySearch, Inc., Class B * 4,267,848
96,087 Webvan Group, Inc.* 1,585,435
-----------
18,907,546
-----------
RETAIL - RESTAURANTS - 1.28%
179,118 McDonald's Corp. 7,220,784
-----------
SATELLITE TELECOMMUNICATIONS - 4.43%
35,121 EchoStar Communications Corp., Class A * 3,424,298
252,252 Globalstar Telecommunications Ltd.* 11,099,088
430,171 Loral Space & Communications Ltd.* 10,458,747
-----------
24,982,133
-----------
TELECOMMUNICATIONS EQUIPMENT - 18.50%
592,923 QUALCOMM, Inc.* 104,428,563
-----------
TELECOMMUNICATIONS SERVICES - 3.46%
114,258 NTL, Inc.* 14,253,717
106,232 Time Warner Telecom, Inc., Class A* 5,305,013
-----------
19,558,730
-----------
TELEPHONE - INTEGRATED - 3.99%
442,779 AT&T Corp. 22,498,904
-----------
The accompanying notes are an integral part of these financial statements.
-17-
<PAGE>
TROON PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
DECEMBER 31, 1999
SHARES MARKET VALUE
COMMON STOCK - (CONTINUED)
TELEVISION - 0.51%
29,181 Pegasus Communications Corp.* $ 2,852,443
------------
TRANSPORT SERVICES - 1.05%
85,854 United Parcel Service, Inc., Class B* 5,923,926
------------
TOTAL COMMON STOCK (COST $288,438,956) 629,303,115
============
Number of
Contracts
CALL OPTIONS - 2.01%
AUDIO/VIDEO PRODUCTS - 0.17%
378 Gemstar International Group Ltd., 01/22/00, $45.00 973,350
------------
CELLULAR TELECOMMUNICATIONS - 0.19%
216 Sprint Corp. (PCS Group), 02/19/00, $65.00 823,500
216 Vodafone AirTouch PLC Sponsored ADR, 01/22/00, $40.00 226,800
------------
1,050,300
------------
COMPUTER SOFTWARE - 0.02%
59 Microsoft Corp., 01/22/00, $95.00 133,488
------------
DIVERSIFIED OPERATIONS - 0.11%
594 Seagram Co., Ltd., 02/19/00, $35.00 608,850
------------
ENTERPRISE SOFTWARE/SERVICE - 1.14%
432 Oracle Corp., 01/22/00, $50.00 2,683,800
864 Oracle Corp., 01/22/00, $70.00 3,715,200
------------
6,399,000
------------
GOLD MINING - 0.03%
432 Placer Dome, Inc., 01/22/00, $7.50 140,400
432 Placer Dome, Inc., 01/22/00, $10.00 51,321
------------
191,721
------------
The accompanying notes are an integral part of these financial statements.
-18-
<PAGE>
TROON PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
DECEMBER 31, 1999
NUMBER OF MARKET VALUE
CONTRACTS
CALL OPTIONS (CONTINUED)
MULTIMEDIA - 0.35%
408 CBS Corp., 01/22/00, $40.00 $ 953,700
408 Viacom Inc., Class B, 01/22/00, $35.00 1,035,300
------------
1,989,000
------------
TOTAL CALL OPTIONS (COST $7,077,154) 11,345,709
============
PUT OPTIONS - 0.01%
STOCK INDEX - 0.01%
324 S & P 100, 01/22/00, $710.00 76,950
------------
TOTAL PUT OPTIONS (COST $227,772) 76,950
============
TOTAL INVESTMENTS (COST $295,743,882) - 113.50% 640,725,774
OTHER ASSETS, LESS LIABILITIES - (13.50%) (76,243,222)
------------
NET ASSETS - 100.00% $564,482,552
============
(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.
-19-
