WYNSTONE PARTNERS, L.P.
FINANCIAL STATEMENTS
WITH REPORT OF INDEPENDENT AUDITORS
PERIOD FROM NOVEMBER 16, 1998
(COMMENCEMENT OF OPERATIONS)
TO DECEMBER 31, 1998
<PAGE>
WYNSTONE PARTNERS, L.P.
FINANCIAL STATEMENTS
PERIOD FROM NOVEMBER 16, 1998 (COMMENCEMENT OF OPERATIONS)
TO DECEMBER 31, 1998
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.......................................... 14
Schedule of Securities Sold, Not Yet Purchased............................. 16
Schedule of Written Options................................................ 17
<PAGE>
REPORT OF INDEPENDENT AUDITORS
To the Partners of
Wynstone Partners, L.P.
We have audited the accompanying statement of assets, liabilities and partners'
capital of Wynstone Partners, L.P., including the schedules of portfolio
investments, securities sold, not yet purchased, and written options, as of
December 31, 1998, and the related statements of operations and changes in
partners' capital - net assets for the period from November 16, 1998
(commencement of operations) to December 31, 1998. 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 audit.
We conducted our audit in accordance with generally accepted auditing standards.
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, 1998, 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 audit provides 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 Wynstone Partners, L.P. at
December 31, 1998, the results of its operations, and the changes in its
partners' capital - net assets for the period from November 16, 1998 to December
31, 1998, in conformity with generally accepted accounting principles.
[GRAPHIC OMITTED][GRAPHIC OMITTED]
/S/ ERNST & YOUNG LLP
New York, New York
February 12, 1999
1
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WYNSTONE PARTNERS, L.P.
STATEMENT OF ASSETS, LIABILITIES AND PARTNERS' CAPITAL (IN THOUSANDS)
- --------------------------------------------------------------------------------
DECEMBER 31, 1998
ASSETS
Cash $6,230
Investments in securities, at market
(identified cost - $5,542) 5,704
Dividends receivable 14
Interest receivable 5
--------------
TOTAL ASSETS 11,953
--------------
LIABILITIES
Due to broker 788
Securities sold, not yet purchased, at market
(proceeds of sales - $163) 195
Outstanding options written, at value
(premiums received - $125) 114
Administration fee payable 9
Accrued expenses 99
--------------
TOTAL LIABILITIES 1,205
--------------
NET ASSETS $10,748
==============
PARTNERS' CAPITAL - NET ASSETS
Represented by:
Capital contributions $10,675
Accumulated net investment loss (72)
Accumulated net realized gain on investments 5
Accumulated net unrealized appreciation on
investments 140
--------------
PARTNERS' CAPITAL - NET ASSETS $10,748
==============
The accompanying notes are an integral part of these financial statements.
2
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WYNSTONE PARTNERS, L.P.
STATEMENT OF OPERATIONS (IN THOUSANDS)
- --------------------------------------------------------------------------------
PERIOD FROM
NOVEMBER 16, 1998
(COMMENCEMENT OF
OPERATIONS) TO
DECEMBER 31, 1998
INVESTMENT INCOME
Interest $ 27
Dividends 16
--------------
43
--------------
EXPENSES
OPERATING EXPENSES:
Professional fees 75
Investor servicing and accounting fee 12
Administration fee 10
Insurance expense 8
Individual General Partners' fees and expenses 6
Custodian fees 1
Miscellaneous 3
--------------
TOTAL EXPENSES 115
--------------
NET INVESTMENT LOSS (72)
--------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
REALIZED GAIN ON INVESTMENTS:
Investment securities 1
Written options 4
--------------
NET REALIZED GAIN ON INVESTMENTS 5
--------------
NET CHANGE IN UNREALIZED APPRECIATION ON INVESTMENTS 140
--------------
NET REALIZED AND UNREALIZED GAIN 145
--------------
INCREASE IN PARTNERS' CAPITAL DERIVED
FROM INVESTMENT ACTIVITIES $ 73
==============
The accompanying notes are an integral part of these financial statements.
3
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WYNSTONE PARTNERS, L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL - NET ASSETS (IN THOUSANDS)
- --------------------------------------------------------------------------------
PERIOD FROM
NOVEMBER 16, 1998
(COMMENCEMENT OF
OPERATIONS) TO
DECEMBER 31, 1998
FROM INVESTMENT ACTIVITIES
Net investment loss $ (72)
Net realized gain on investments 5
Net change in unrealized appreciation on
investments 140
-------
INCREASE IN PARTNERS' CAPITAL
DERIVED FROM INVESTMENT ACTIVITIES 73
PARTNERS' CAPITAL TRANSACTIONS
Capital contributions 10,675
-------
INCREASE IN PARTNERS' CAPITAL DERIVED
FROM CAPITAL TRANSACTIONS 10,675
PARTNERS' CAPITAL AT BEGINNING OF PERIOD 0
-------
PARTNERS' CAPITAL AT END OF PERIOD $10,748
=======
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
WYNSTONE PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENT - DECEMBER 31, 1998
- --------------------------------------------------------------------------------
1. ORGANIZATION
Wynstone Partners, L.P. (the "Partnership") was organized under the
Delaware Revised Uniform Limited Partnership Act on August 13, 1998.
The Partnership is registered under the Investment Company Act of 1940
(the "Act") as a closed-end, non-diversified management investment
company. The Partnership's term is perpetual unless the Partnership is
otherwise terminated under the terms of the Limited Partnership
Agreement. The Partnership's investment objective is to achieve capital
appreciation. The Partnership pursues this objective by investing
principally in equity securities of U.S. companies engaged in the
financial services industry, but it may also invest up to 25% of the
value of its total assets in the securities of foreign issuers,
including depository receipts relating to foreign securities. Except
during periods of adverse market conditions in the financial services
industry or in the U.S. equity market generally, the Partnership will
invest more than 25% of the value of its total assets in issuers
engaged in the financial services industry. The Partnership's
investments may include long and short positions in equity securities,
fixed-income securities, and various derivatives, including options on
securities and stock index options.
There are three "Individual General Partners" and an "Adviser." CIBC
Oppenheimer Advisers, L.L.C. serves as the investment adviser of the
Partnership and is responsible for managing the Partnership's
investment portfolio. CIBC Oppenheimer Corp. ("CIBC Opco") is the
managing member and controlling person of the Adviser and KBW Asset
Management Inc. ("KBWAM") is a non-managing member of the Adviser.
Investment professionals employed by KBWAM will manage the
Partnership's investment portfolio of behalf of the Adviser under the
supervision of CIBC Opco.
The acceptance of initial and additional contributions is subject to
approval by the Individual General Partners. 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 Adviser expects that generally
it will recommend to the Individual General Partners that the
Partnership repurchase interests from Partners twice each year
effective at the end of the second fiscal quarter and again at the end
of the year.
2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with generally
accepted accounting principles requires the Adviser to make estimates
and assumptions that affect the amounts reported in the financial
statements and accompanying notes. The Adviser believes that
5
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WYNSTONE PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENT - DECEMBER 31, 1998
- --------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
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.
6
<PAGE>
WYNSTONE PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENT - DECEMBER 31, 1998 (CONTINUED)
- --------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
A. PORTFOLIO VALUATION (CONTINUED)
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. 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. ADMINISTRATION FEE, RELATED PARTY TRANSACTIONS AND OTHER
CIBC Opco provides certain 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 administration fee of .08333% (1%
on an annualized basis) of the Partnership's net assets determined as
of the beginning of the month.
During the period ended December 31, 1998, CIBC Opco earned no
brokerage commissions from portfolio transactions executed on behalf of
the Partnership. Keefe, Bruyette & Woods, Inc., an affiliated broker of
KBWAM, earned $2,586 in brokerage commissions from portfolio
transactions executed on behalf of the Partnership.
The Adviser of the Partnership will serve as the Special Advisory
Limited Partner of the
7
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WYNSTONE PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENT - DECEMBER 31, 1998 (CONTINUED)
- --------------------------------------------------------------------------------
3. ADMINISTRATION FEE, RELATED PARTY TRANSACTIONS AND OTHER (CONTINUED)
Partnership. In such capacity, the Adviser will be entitled to receive
an incentive allocation (the "Incentive Allocation"), charged to the
capital account of each Limited Partner as of the last day of each
allocation period, of 20% of the amount by which net profits, if any,
exceed the positive balance in the Limited Partner's "loss recovery
account." The Incentive Allocation will be credited to the Special
Advisory Account of the Adviser. During the period ended December 31,
1998, Incentive Allocation to the Special Advisory Account was $21,899.
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 period from November 16, 1998 to December 31, 1998, fees paid to
the Individual General Partners (including meeting fees and a pro-rata
annual retainer) and expenses totaled $5,686.
The Chase Manhattan Bank serves as Custodian of the Partnership's
assets.
PFPC Inc. serves as Investor Services 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 period from November 16, 1998 to
December 31, 1998, amounted to $5,919,533 and $382,480, respectively.
At December 31, 1998, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes. At December 31, 1998, accumulated net unrealized appreciation
on investments was $139,860, consisting of $268,723 gross unrealized
appreciation and $128,863 gross unrealized depreciation.
Due to broker primarily represents receivables and payables from
unsettled security trades and short sales.
8
<PAGE>
WYNSTONE PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENT - DECEMBER 31, 1998 (CONTINUED)
- --------------------------------------------------------------------------------
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. As of December 31, 1998
and for the period then ended, the Partnership had no margin
borrowings. 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.
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 sales of securities 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.
Securities sold, not yet purchased represent obligations of the
Partnership to deliver specified securities and thereby creates a
liability to purchase such securities 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 indicated in
the statement of assets, liabilities and partners' capital.
9
<PAGE>
WYNSTONE PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENT - DECEMBER 31, 1998 (CONTINUED)
- --------------------------------------------------------------------------------
6. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK OR
CONCENTRATIONS OF CREDIT RISK (CONTINUED)
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. As of and for the period ended December 31,
1998, the Partnership purchased 20 put option contracts at a cost of
$4,060.
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.
Transactions in written options were as follows:
CALL OPTIONS PUT OPTIONS
--------------------- ----------------------
NUMBER AMOUNT NUMBER AMOUNT
OF CONTRACTS OF PREMIUM OF CONTRACTS OF PREMIUM
------------ ---------- ------------ ----------
Beginning balance 0 $ 0 0 $ 0
Options purchased 50 14,037 775 124,144
Options closed (21) (5,318) ( 10) (3,970)
Expired options (0) (0) ( 30) (4,160)
---------- --------- ------- -----------
Options outstanding at
December 31, 1998 29 $ 8,719 735 $ 116,014
========== ========= ======= ===========
10
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WYNSTONE PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENT - DECEMBER 31, 1998 (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
FOR THE PERIOD ENDED
DECEMBER 31, 1998
--------------------
Equity securities $ 129,441
Equity options 690
Written options 14,703
------------
$ 144,834
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 PERIOD ENDED
DECEMBER 31, 1998 DECEMBER 31, 1998
----------------- -------------------------
ASSETS:
Equity options $4,750 $2,375
LIABILITIES:
Written options (114,190) (68,439)
Average market values presented above are based upon month-end market
values during the period ended December 31, 1998.
11
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WYNSTONE PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENT - DECEMBER 31, 1998 (CONTINUED)
- --------------------------------------------------------------------------------
8. SELECTED FINANCIAL RATIOS AND OTHER SUPPLEMENTAL INFORMATION
The following represents the ratios to average net assets and other
supplemental information for the period indicated:
NOVEMBER 16, 1998
(COMMENCEMENT OF
OPERATIONS) TO
DECEMBER 31, 1998
Ratio of net investment loss to average net assets (8.39%) *
Ratio of operating expenses to average net assets 13.39% *
Portfolio turnover rate 10.75%
Average commission rate paid $0.0600 **
Total return (1.40%) ***
* 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 Special Advisory Limited Partner, if any. Total
returns for a period of less than a full year are not annualized.
9. SUBSEQUENT EVENT
On January 1, 1999, the Partnership received additional Limited Partner
capital contributions of approximately $2,000,000.
10. YEAR 2000 (UNAUDITED)
Like other investment companies, 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."
12
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WYNSTONE PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENT - DECEMBER 31, 1998 (CONTINUED)
- --------------------------------------------------------------------------------
10. YEAR 2000 (UNAUDITED) (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 period ended December 31, 1998, 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 intended to ensure
that third party non-compliance will not materially affect the
Partnership's operations.
13
<PAGE>
WYNSTONE PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DECEMBER 31, 1998
MARKET VALUE
Shares
Common Stocks - 53.02%
COMMERCIAL BANKS - CENTRAL US - 12.46%
10,000 Associated Banc-Corp $ 341,880
2,800 Cullen/Frost Bankers, Inc. (a) 153,650
14,000 First Midwest Bancorp, Inc. 532,882
18,000 Prime Bancshares, Inc. (a) 310,500
-------------------
1,338,912
-------------------
COMMERCIAL BANKS - EASTERN US - 6.31%
20,000 North Fork Bancorporation, Inc. (a) 478,760
10,000 People's Heritage Financial Group, Inc. 200,000
-------------------
678,760
-------------------
COMMERCIAL BANKS - SOUTHERN US - 3.00%
1,900 Colonial BancGroup, Inc. 22,800
3,800 Compass Bancshares, Inc. (a) 144,639
3,500 First American Corp. (a) 155,313
-------------------
322,752
-------------------
COMMERCIAL BANKS - WESTERN US - 0.74%
3,400 First Security Corp. (a) 79,475
-------------------
S&L/THRIFTS - CENTRAL US - 6.54%
20,000 Charter One Financial, Inc. 555,000
6,400 Commercial Federal Corp. (a) 148,403
-------------------
703,403
-------------------
S&L/THRIFTS - EASTERN US - 14.48%
13,500 First Essex Bancorp, Inc. (a) 243,000
17,500 Reliance Bancorp, Inc. 486,728
25,000 Seacoast Financial Services Corp. *(a) 256,250
40,000 Sovereign Bancorp, Inc. (a) 570,000
-------------------
1,555,978
-------------------
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
WYNSTONE PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
DECEMBER 31, 1998
MARKET VALUE
Shares
COMMON STOCKS (CONTINUED)
SUPER - REGIONAL BANKS - US - 9.49%
4,400 Banc One Corp. $ 224,677
10,000 Keycorp 320,000
7,000 U.S. Bancorp 248,500
5,000 Union Planters Corp. 226,565
--------------------
1,019,742
--------------------
TOTAL COMMON STOCKS (COST $5,537,865) 5,699,022
====================
NUMBER
of Contracts
PUT OPTIONS - 0.05%
COMMERCIAL BANKS - CENTRAL US - 0.05%
20 Firstar Corp., 1/16/99, $90.00 \ 4,750
--------------------
TOTAL PUT OPTIONS (COST $4,060) 4,750
====================
TOTAL INVESTMENTS (COST $5,541,925) - 53.07% 5,703,772
====================
OTHER ASSETS, LESS LIABILITIES - 46.93% 5,044,697
--------------------
NET ASSETS - 100% $ 10,748,469
====================
(a) Partially or wholly held in a pledged account by the Custodian as collateral
for open written options.
* Non-income producing security.
The accompanying notes are an integral part of these financial statements.
15
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WYNSTONE PARTNERS, L.P.
SCHEDULE OF SECURITIES SOLD, NOT YET PURCHASED
- --------------------------------------------------------------------------------
DECEMBER 31, 1998
MARKET VALUE
Shares
SHORT COMMON STOCK - (1.82%)
COMMERCIAL BANKS - CENTRAL US - (1.82%)
2,100 Firstar Corp. $ (195,300)
--------------------
TOTAL SHORT COMMON STOCK (PROCEEDS $162,770) $ (195,300)
====================
The accompanying notes are an integral part of these financial statements.
16
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WYNSTONE PARTNERS, L.P.
SCHEDULE OF WRITTEN OPTIONS
- --------------------------------------------------------------------------------
DECEMBER 31, 1998
MARKET VALUE
NUMBER
OF CONTRACTS
WRITTEN CALL OPTIONS - (0.49%)
COMMERCIAL BANKS - CENTRAL US - (0.49%)
29 Firstar Corp., 1/16/99, $75.00 $ (52,200)
--------------------
TOTAL WRITTEN CALL OPTIONS (PROCEEDS $8,719) (52,200)
====================
WRITTEN PUT OPTIONS - (0.58%)
COMMERCIAL BANKS - EASTERN US - (0.28%)
50 North Fork Bancorporation, Inc., 2/20/99, $20.00 (1,875)
200 People's Heritage Financial Group, Inc.,
2/20/99, $20.00 (23,760)
135 Summit Bancorp, 1/16/99, $40.00 (4,226)
--------------------
(29,861)
--------------------
COMMERCIAL BANKS - SOUTHERN US - (0.03%)
50 Colonial Bancgroup, Inc., 1/16/99, $12.50 (3,440)
--------------------
SUPER - REGIONAL BANKS - US - (0.27%)
20 Banc One Corp., 1/16/99, $50.00 (1,250)
100 Fleet Financial Group, Inc., 1/16/99, $40.00 (1,250)
50 Keycorp, 3/20/99, $30.00 (7,500)
50 U.S. Bancorp, 1/16/99, $35.00 (3,750)
30 U.S. Bancorp, 3/20/99, $30.00 (2,439)
50 U.S. Bancorp, 3/20/99, $35.00 (12,500)
--------------------
(28,689)
--------------------
TOTAL WRITTEN PUT OPTIONS (PROCEEDS $116,014) (61,990)
====================
TOTAL OPTIONS WRITTEN (PROCEEDS $124,733) $ (114,190)
====================
The accompanying notes are an integral part of these financial statements.
17
