PERFORMANCE
SUPPLEMENT
AUGUST 1998
PW AFTER- TAX
EQUITY PARTNERS, L.P.
PAINEWEBBER
<PAGE>
THIS PW AFTER-TAX EQUITY PARTNERS, L.P. (THE "PARTNERSHIP")
PERFORMANCE INFORMATION SUPPLEMENT DATED AUGUST 1998 SUPERSEDES IN ITS ENTIRETY
THE PERFORMANCE INFORMATION SET FORTH IN APPENDIX C TO THE PARTNERSHIP'S
CONFIDENTIAL OFFERING MEMORANDUM AND APPENDIX B TO THE PARTNERSHIP'S EXECUTIVE
SUMMARY.
<PAGE>
PW AFTER-TAX EQUITY PARTNERS, L.P.
INVESTMENT MANAGER PERFORMANCE INFORMATION
The Investment Managers' historical performance for the years 1988
through 1997, as applicable, and the six months ended June 30, 1998 has been
obtained from and reviewed by the relevant Investment Manager. The historical
performance is based upon the results a full period investor would have achieved
on an investment made with each Investment Manager for the period specified. The
performance shown is net of fees and expenses and incentive allocations, if
applicable. The performance information has not been audited and does not comply
with the standards established by the Association of Investment Management and
Research (AIMR). Performance information for periods before those shown is
available upon request by contacting the Manager. The following tables should be
read in conjunction with the notes thereto.
PROSPECTIVE INVESTORS SHOULD RECOGNIZE THAT THERE ARE CERTAIN DIFFERENCES
BETWEEN THE INVESTMENT POLICIES OF THE PARTNERSHIP AND THE INVESTMENT MANAGERS.
INVESTORS IN THE PARTNERSHIP WILL BEAR AN ADDITIONAL LAYER OF ASSET-BASED FEE,
EXPENSES AND PERFORMANCE-BASED ALLOCATION WHICH WILL REDUCE PERFORMANCE. PAST
PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
<PAGE>
PW AFTER-TAX EQUITY PARTNERS, L.P.
<TABLE>
<CAPTION>
BRAVERMAN ASSET MANAGEMENT COMPANY, INC.
1993 1994 1995 1996 1997 1998(a)
----- ----- ---- ----- ---- -------
<S> <C> <C> <C> <C> <C> <C>
Redwood Asset Management, L.P.(b)................. 35.9% 18.6 % 22.3% 25.2% 33.5% 13.3%
S&P 500 Index (c)................................. 10.1% 1.3 % 37.6% 23.0% 33.4% 17.7%
Russell 2000 Index (d)............................ 18.9% (1.8)% 28.4% 16.5% 22.4% 5.3%
Notes:
(a) Returns for 1998 are for the period January 1, 1998 through June 30, 1998.
(b) The performance reflects the results of Redwood Asset Management, L.P.
("Redwood"), an investment partnership managed by Braverman Asset
Management Company, Inc. ("Braverman"), which employs an investment program
that is substantially similar to the investment program which will be
employed on behalf of the Investment Fund for which Braverman will serve as
Subadviser. Braverman also manages separate accounts and an offshore fund.
The performance of the offshore fund and the separate accounts have not
been included because their investment programs are not substantially
similar to the Partnership's investment program or their inclusion would
not have a material impact on the presented performance. Several of the
separate accounts have been in existence for less than one year. Some of
these investment programs differ because they are managed in a long-only
manner or may have a higher degree of turnover. Braverman and its
affiliates began managing money in January 1993. At all times under
consideration, assets of Redwood were between $5 million and $140 million.
(c) The S&P 500 Index is an unmanaged index considered to be generally
representative of the U.S. large cap stock market as a whole. The
performance data for the S&P 500 Index assumes the reinvestment of all
dividends, but does not deduct any fees or expenses. The Partnership does
not restrict its investments to securities included in the S&P 500 Index.
(d) The Russell 2000 Index is an unmanaged index reflecting the performance of
2,000 of the smallest companies by market capitalization in the U.S. equity
market. The performance data for the Russell 2000 Index assumes the
reinvestment of all dividends, but does not deduct any fees or expenses.
The Partnership does not restrict its investments to securities included in
the Russell 2000 Index. The performance data is set forth solely for the
information of prospective investors in the Partnership. The statistical
data for the S&P 500 and Russell 2000 indices have been obtained from
sources believed to be reliable but which are not warranted as to accuracy
or completeness. The historical performance of Redwood has not been subject
to certain investment limitations and other restrictions imposed by the
1940 Act which, if imposed, could have adversely affected performance.
</TABLE>
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
<PAGE>
PW AFTER-TAX EQUITY PARTNERS, L.P.
<TABLE>
<CAPTION>
GRANUM ADVISORS, L.L.C.
1990(a) 1991 1992 1993 1994 1995 1996 1997 1998(b)
------ ---- ---- ---- ---- ---- ---- ---- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Granum Advisors, L.L.C. (c)........... 2.4 % 49.4% 16.6% 8.3% (15.1)% 47.5% 36.8% 30.9% 3.9%
S&P 500 Index (d)..................... 1.4 % 30.5% 7.6% 10.1% 1.3 % 37.6% 23.0% 33.4% 17.7%
Russell 2000 Index(e)................. (15.3)% 46.1% 18.4% 18.9% (1.8)% 28.4% 16.5% 22.4% 5.3%
Notes:
(a) Affiliates of Granum Advisors, L.L.C. ("Granum") began managing money on
March 5, 1990. Returns for these affiliates of Granum and the indices for
1990 are for the period March 5, 1990 through December 31, 1990.
(b) Returns for 1998 are for the period January 1, 1998 through June 30, 1998.
(c) The performance of Granum reflects the composite performance of all
accounts managed by Granum and its affiliates, including other investment
funds and separate accounts (the "Granum Accounts") which employ an
investment program that is substantially similar to the investment program
which will be employed on behalf of the Investment Fund for which Granum
will serve as Subadviser. The composite performance for each period is the
performance a full-period investor in each Granum Account would have
achieved, weighted by the average monthly assets of each Granum Account. At
all times under consideration, assets of the Granum Accounts were between
$7 million and $791 million.
(d) The S&P 500 Index is an unmanaged index considered to be generally
representative of the U.S. large cap stock market as a whole. The
performance data for the S&P 500 Index assumes the reinvestment of all
dividends, but does not deduct any fees or expenses. The Partnership does
not restrict its investments to securities included in the S&P 500 Index.
(e) The Russell 2000 Index is an unmanaged index reflecting the performance of
2,000 of the smallest companies by market capitalization in the U.S. equity
market. The performance data for the Russell 2000 Index assumes the
reinvestment of all dividends, but does not deduct any fees or expenses.
The Partnership does not restrict its investments to securities included in
the Russell 2000 Index. The performance data is set forth solely for the
information of prospective investors in the Partnership. The statistical
data for the S&P 500 and Russell 2000 indices have been obtained from
sources believed to be reliable but which are not warranted as to accuracy
or completeness. The historical performance of the Granum Accounts has
generally not been subject to certain investment limitations and other
restrictions imposed by the 1940 Act which, if imposed, could have
adversely affected performance.
</TABLE>
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
<PAGE>
PW AFTER-TAX EQUITY PARTNERS, L.P.
<TABLE>
<CAPTION>
Mark Asset Management Corporation
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998(a)
----- ----- ----- ---- ---- ---- ---- ---- ---- ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Mark Asset Management Corporation (b)..... 31.0% 56.7% (14.7)% 48.7% 9.6% 25.1% (14.2)% 30.1% 18.0% 44.6% 20.1%
S&P 500 Index (c)......................... 16.6% 31.7% (3.1)% 30.5% 7.6% 10.1% 1.3% 37.6% 23.0% 33.4% 17.7%
Russell 2000 Index (d).................... 24.9% 16.2% (19.5)% 46.1% 18.4% 18.9% (1.8)% 28.4% 16.5% 22.4% 5.3%
Notes:
(a) Returns for 1998 are for the period January 1, 1998 through June 30, 1998.
(b) The performance of Mark Asset Management Corporation ("Mark") reflects the
composite of all accounts managed by Mark and its affiliates, including
other investment funds and separate accounts (the "Mark Accounts") which
employ an investment program that is substantially similar to the
investment program which will be employed on behalf of the Investment Fund
for which Mark will serve as Subadviser. The composite performance for each
period is the performance a full-period investor in each Mark Account would
have received, weighted by the average quarterly assets of each Mark
Account. Mark and its affiliates began managing money in 1985. At all times
under consideration, assets of the Mark Accounts were between $10 million
and $1.3 billion.
(c) The S&P 500 Index is an unmanaged index considered to be generally
representative of the U.S. large cap stock market as a whole. The
performance data for the S&P 500 Index assumes the reinvestment of all
dividends, but does not deduct any fees or expenses. The Partnership does
not restrict its investments to securities included in the S&P 500 Index.
(d) The Russell 2000 Index is an unmanaged index reflecting the performance of
2,000 of the smallest companies by market capitalization in the U.S. equity
market. The performance data for the Russell 2000 Index assumes the
reinvestment of all dividends, but does not deduct any fees or expenses.
The Partnership does not restrict its investments to securities included in
the Russell 2000 Index. The performance data is set forth solely for the
information of prospective investors in the Partnership. The statistical
data for the S&P 500 and Russell 2000 indices have been obtained from
sources believed to be reliable but which are not warranted as to accuracy
or completeness. The historical performance of the Mark Accounts has
generally not been subject to certain investment limitations and other
restrictions imposed by the 1940 Act which, if imposed, could have
adversely affected performance.
</TABLE>
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
<PAGE>
PW AFTER-TAX EQUITY PARTNERS, L.P.
<TABLE>
<CAPTION>
Perry Partners L.P.
1988(a) 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998(b)
------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Perry Partners L.P. (c)........ 4.5% 17.5% 6.7% 17.3% 14.2% 30.1% 6.3% 18.0% 21.1% 28.5% 11.2%
S&P 500 Index (d).............. 5.4% 31.7% (3.1)% 30.5% 7.6% 10.1% 1.3% 37.6% 23.0% 33.4% 17.7%
Russell 2000Index (e).......... 5.0% 16.2% (19.5)% 46.1% 18.4% 18.9% (1.8)% 28.4% 16.5% 22.4% 5.3%
Notes:
(a) Perry Partners L.P. ("Perry Partners") commenced operations on November 18,
1988. Returns for Perry Partners and the indices for 1988 are for the
period November 18, 1988 through December 31, 1988.
(b) Returns for 1998 are for the period January 1, 1998 through June 30, 1998.
(c) The performance reflects the results of Perry Partners, an investment
partnership managed by Perry Corp. ("Perry") that is one of the Other Funds
in which the Partnership will invest. Perry and its affiliates began
managing money in November 1988. At all times under consideration, net
assets of Perry Partners were between $50 million and $870 million.
(d) The S&P 500 Index is an unmanaged index considered to be generally
representative of the U.S. large cap stock market as a whole. The
performance data for the S&P 500 Index assumes the reinvestment of all
dividends, but does not deduct any fees or expenses. The Partnership does
not restrict its investments to securities included in the S&P 500 Index.
(e) The Russell 2000 Index is an unmanaged index reflecting the performance of
2,000 of the smallest companies by market capitalization in the U.S. equity
market. The performance data for the Russell 2000 Index assumes the
reinvestment of all dividends, but does not deduct any fees or expenses.
The Partnership does not restrict its investments to securities included in
the Russell 2000 Index. The performance data is set forth solely for the
information of prospective investors in the Partnership. The statistical
data for the S&P 500 and Russell 2000 indices have been obtained from
sources believed to be reliable but which are not warranted as to accuracy
or completeness.
</TABLE>
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
<PAGE>
PW AFTER-TAX EQUITY PARTNERS, L.P.
<TABLE>
<CAPTION>
Tontine Financial Partners, L.P.
1995(a) 1996 1997 1998(b)
------- ----- ----- -------
<S> <C> <C> <C> <C>
Tontine Financial Partners, L.P. (c)............................. 12.7% 33.3% 86.4% 9.6%
S&P 500 Index (d)................................................ 14.4% 23.0% 33.4% 17.7%
Russell 2000 Index (e)........................................... 13.0% 16.5% 22.4% 5.3%
Tontine Partners, L.P.
1997(f) 1998(b)
------- -------
Tontine Partners, L.P. (g)....................................... 41.5% 17.7%
S&P 500 Index (d)................................................ 29.9% 17.7%
Russell 2000 Index (e)........................................... 29.0% 5.3%
Notes:
(a) Tontine Financial Partners, L.P. ("Tontine Financial") commenced operations
on June 20, 1995. Returns for Tontine Financial and the indices for 1995
are for the period June 20, 1995 through December 31, 1995.
(b) Returns for 1998 are for the period January 1, 1998 through June 30, 1998.
(c) The performance reflects the results of Tontine Financial, an investment
partnership managed by Tontine Management, L.L.C. ("Tontine") that is one
of the Other Funds in which the Partnership will invest. Tontine and its
affiliates began managing money in 1995. At all times under consideration,
assets of Tontine Financial were between $20 million and $385 million.
(d) The S&P 500 Index is an unmanaged index considered to be generally
representative of the U.S. large cap stock market as a whole. The
performance data for the S&P 500 Index assumes the reinvestment of all
dividends, but does not deduct any fees or expenses. The Partnership does
not restrict its investments to securities included in the S&P 500 Index.
(e) The Russell 2000 Index is an unmanaged index reflecting the performance of
2,000 of the smallest companies by market capitalization in the U.S. equity
market. The performance data for the Russell 2000 Index assumes the
reinvestment of all dividends, but does not deduct any fees or expenses.
The Partnership does not restrict its investments to securities included in
the Russell 2000 Index.
(f) Tontine Partners, L.P. ("Tontine Partners") commenced operations on April
1, 1997. Returns for Tontine Partners and the indices for 1997 are for the
period April 1, 1997 through December 31, 1997.
(g) The performance reflects the results of Tontine Partners, an investment
partnership managed by Tontine that is one of the Other Funds in which the
Partnership will invest. At all times under consideration, assets of
Tontine Partners were between $20 million and $155 million. The performance
data is set forth solely for the information of prospective investors in
the Partnership. The statistical data for the S&P 500 and Russell 2000
indices have been obtained from sources believed to be reliable but which
are not warranted as to accuracy or completeness.
</TABLE>
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
<PAGE>
PW AFTER-TAX EQUITY PARTNERS, L.P.
<TABLE>
<CAPTION>
Baron Capital Partners, L.P.
1992(a) 1993 1994 1995 1996 1997 1998(b)
------- ----- ----- ----- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Baron Capital Partners, L.P. (c)........ 16.8% 28.7% 4.7% 37.0% 16.1% 49.9% 4.1%
S&P 500 Index (d)........................ 8.3% 10.1% 1.3% 37.6% 23.0% 33.4% 17.7%
Russell 2000 Index (e)................... 9.5% 18.9% (1.8)% 28.4% 16.5% 22.4% 5.3%
Notes:
(a) Baron Capital Partners, L.P. ("Baron Capital Partners") commenced
operations on February 1, 1992. Returns for Baron Capital Partners and the
indices for 1992 are for the period February 1, 1992 through December 31,
1992.
(b) Returns for 1998 are for the period January 1, 1998 through June 30, 1998.
(c) The performance reflects the results of Baron Capital Partners, an
investment partnership managed by Baron Capital Management, Inc. ("Baron")
that is one of the Other Funds in which the Partnership will invest. Baron
and its affiliates began managing money in 1982. At all times under
consideration, assets of Baron Capital Partners were between $3 million and
$174 million.
(d) The S&P 500 Index is an unmanaged index considered to be generally
representative of the U.S. large cap stock market as a whole. The
performance data for the S&P 500 Index assumes the reinvestment of all
dividends, but does not deduct any fees or expenses. The Partnership does
not restrict its investments to securities included in the S&P 500 Index.
(e) The Russell 2000 Index is an unmanaged index reflecting the performance of
2,000 of the smallest companies by market capitalization in the U.S. equity
market. The performance data for the Russell 2000 Index assumes the
reinvestment of all dividends, but does not deduct any fees or expenses.
The Partnership does not restrict its investments to securities included in
the Russell 2000 Index. The performance data is set forth solely for the
information of prospective investors in the Partnership. The statistical
data for the S&P 500 and Russell 2000 indices have been obtained from
sources believed to be reliable but which are not warranted as to accuracy
or completeness.
</TABLE>
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
<PAGE>
PW AFTER-TAX EQUITY PARTNERS, L.P.
<TABLE>
<CAPTION>
Everglades Partners, L.P.
1994(a) 1995 1996 1997 1998(b)
------- ----- ----- ----- -------
<S> <C> <C> <C> <C> <C>
Everglades Partners, L.P. (c)............................ 31.0% 23.5% 48.6% 23.1% 7.5%
S&P 500 Index (d)........................................ (0.3)% 37.6% 23.0% 33.4% 17.7%
Russell 2000 Index (e)................................... (4.3)% 28.4% 16.5% 22.4% 5.3%
Notes:
(a) Everglades Partners, L.P. ("Everglades") commenced operations on February
10, 1994. Returns for Everglades and the indices for 1994 are for the
period February 10, 1994 through December 31, 1994.
(b) Returns for 1998 are for the period January 1, 1998 through June 30, 1998.
(c) The performance reflects the results of Everglades, an investment
partnership managed by Matador Capital Management Corporation ("Matador")
that is one of the Other Funds in which the Partnership will invest.
Matador and its affiliates began managing money in February 1994. At all
times under consideration, assets of Everglades were between $2 million and
$80 million.
(d) The S&P 500 Index is an unmanaged index considered to be generally
representative of the U.S. large cap stock market as a whole. The
performance data for the S&P 500 Index assumes the reinvestment of all
dividends, but does not deduct any fees or expenses. The Partnership does
not restrict its investments to securities included in the S&P 500 Index.
(e) The Russell 2000 Index is an unmanaged index reflecting the performance of
2,000 of the smallest companies by market capitalization in the U.S. equity
market. The performance data for the Russell 2000 Index assumes the
reinvestment of all dividends, but does not deduct any fees or expenses.
The Partnership does not restrict its investments to securities included in
the Russell 2000 Index. The performance data is set forth solely for the
information of prospective investors in the Partnership. The statistical
data for the S&P 500 and Russell 2000 indices have been obtained from
sources believed to be reliable but which are not warranted as to accuracy
or completeness.
</TABLE>
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
<PAGE>
PW AFTER-TAX EQUITY PARTNERS, L.P.
<TABLE>
<CAPTION>
Stinson Capital Partners, L.P.
1995(a) 1996 1997 1998(b)
-------- ----- ----- ------
<S> <C> <C> <C> <C>
Stinson Capital Partners, L.P. (c) .............................. 7.1% 14.7% 39.7% 12.0%
S&P 500 Index (d) ............................................... 6.7% 23.0% 33.4% 17.7%
Russell 2000 Index (e)........................................... 7.6% 16.5% 22.4% 5.3%
Notes:
(a) Stinson Capital Partners, L.P. ("Stinson") commenced operations on October
30, 1995. Returns for Stinson and the indices for 1995 are for the period
October 30, 1995 through December 31, 1995.
(b) Returns for 1998 are for the period January 1, 1998 through June 30, 1998.
(c) The performance reflects the results of Stinson, an investment partnership
managed by Richard C. Blum & Associates, L.P. ("Blum"), that is one of the
Other Funds in which the Partnership will invest. Blum and its affiliates
began managing money in 1975. At all times under consideration, assets of
Stinson were between $6 million and $163 million.
(d) The S&P 500 Index is an unmanaged index considered to be generally
representative of the U.S. large cap stock market as a whole. The
performance data for the S&P 500 Index assumes the reinvestment of all
dividends, but does not deduct any fees or expenses. The Partnership does
not restrict its investments to securities included in the S&P 500 Index.
(e) The Russell 2000 Index is an unmanaged index reflecting the performance of
2,000 of the smallest companies by market capitalization in the U.S. equity
market. The performance data for the Russell 2000 Index assumes the
reinvestment of all dividends, but does not deduct any fees or expenses.
The Partnership does not restrict its investments to securities included in
the Russell 2000 Index. The performance data is set forth solely for the
information of prospective investors in the Partnership. The statistical
data for the S&P 500 and Russell 2000 indices have been obtained from
sources believed to be reliable but which are not warranted as to accuracy
or completeness.
</TABLE>
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
<PAGE>
PaineWebber
(C) 1998 PaineWebber Incorporated
Member SIPC
