WYNSTONE PARTNERS, L.P.
FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED
JUNE 30, 1999
(UNAUDITED)
<PAGE>
WYNSTONE 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
Results of Special Meeting..................................................12
Schedule of Portfolio Investments...........................................13
Schedule of Written Options.................................................16
<PAGE>
WYNSTONE PARTNERS, L.P.
STATEMENT OF ASSETS, LIABILITIES AND PARTNERS' CAPITAL (IN THOUSANDS)
- -----------------------------------------------------------------------------
JUNE 30, 1999
ASSETS (UNAUDITED)
Cash $ 3,840
Investments in securities, at market (identified cost - $10,866) 11,682
Due from broker 305
Dividends receivable 18
Interest receivable 3
Prepaid expenses 7
-------
TOTAL ASSETS 15,855
-------
LIABILITIES
Outstanding options written, at value (premiums received - $436) 404
Management fee payable 12
Payable to affiliate 40
Accrued expenses 207
-------
TOTAL LIABILITIES 663
-------
NET ASSETS $15,192
=======
PARTNERS' CAPITAL - NET ASSETS
Represented by:
Capital contributions - net $14,203
Accumulated net investment loss (193)
Accumulated net realized gain on investments 334
Accumulated net unrealized appreciation 848
-------
PARTNERS' CAPITAL - NET ASSETS $15,192
=======
The accompanying notes are an integral part of these financial statements.
-1-
<PAGE>
WYNSTONE PARTNERS, L.P.
STATEMENT OF OPERATIONS (IN THOUSANDS)
- ------------------------------------------------------------------------------
SIX MONTHS ENDED
JUNE 30, 1999
(UNAUDITED)
INVESTMENT INCOME
Interest $108
Dividends 65
-----
173
-----
EXPENSES
OPERATING EXPENSES:
Professional fees 101
Administration fees 70
Investor servicing and accounting fees 63
Insurance expense 33
Individual General Partners' fees and expenses 13
Custodian fees 7
Miscellaneous 6
-----
TOTAL OPERATING EXPENSES 293
Dividends on securities sold, not yet purchased 1
-----
TOTAL EXPENSES 294
-----
NET INVESTMENT LOSS (121)
-----
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
REALIZED GAIN (LOSS) ON INVESTMENTS:
Investment securities 23
Purchased options 55
Written options 279
Securities sold, not yet purchased (28)
-----
NET REALIZED GAIN ON INVESTMENTS 329
-----
NET CHANGE IN UNREALIZED APPRECIATION ON INVESTMENTS 708
-----
NET REALIZED AND UNREALIZED GAIN 1,037
-----
INCREASE IN PARTNERS' CAPITAL DERIVED
FROM INVESTMENT ACTIVITIES $ 916
=====
The accompanying notes are an integral part of these financial statements.
-2-
<PAGE>
WYNSTONE PARTNERS, L.P.
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN PARTNERS' CAPITAL - NET ASSETS (IN THOUSANDS)
- ------------------------------------------------------------------------------------------------------
SIX MONTHS PERIOD FROM
ENDED NOVEMBER 16, 1998
JUNE 30, 1999 (COMMENCEMENT OF OPERATIONS)
(UNAUDITED) TO DECEMBER 31, 1998
FROM INVESTMENT ACTIVITIES
<S> <C> <C>
Net investment loss $ (121) $ (72)
Net realized gain on investments 329 5
Net change in unrealized appreciation on
investments 708 140
------- -------
INCREASE IN PARTNERS' CAPITAL DERIVED
FROM INVESTMENT ACTIVITIES 916 73
------- -------
PARTNERS' CAPITAL TRANSACTIONS
Capital contributions 3,550 10,675
Capital withdrawals (22) (0)
------- -------
INCREASE IN PARTNERS' CAPITAL
DERIVED FROM CAPITAL TRANSACTIONS 3,528 10,675
PARTNERS' CAPITAL AT BEGINNING OF PERIOD 10,748 0
------- -------
PARTNERS' CAPITAL AT END OF PERIOD $15,192 $10,748
======= =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
-3-
<PAGE>
WYNSTONE PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
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 dated as of September 2, 1998.
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 four "Individual General Partners", who serve as the
governing board of the Partnership, and an "Adviser." CIBC Oppenheimer
Advisers, L.L.C. (the "Adviser") serves as the investment adviser of
the Partnership and is responsible for managing the Partnership's
investment portfolio. CIBC World Markets Corp. (formerly CIBC
Oppenheimer Corp.) 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
manage the Partnership's investment portfolio on behalf of the Adviser
under the supervision of CIBC World Markets Corp.("CIBC WM").
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 it will
recommend to the Individual General Partners that the Partnership offer
to repurchase interests from Partners at the end of 1999. Thereafter,
the Adviser expects that generally it will recommend to the Individual
General Partners that the Partnership offer to 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
-4-
<PAGE>
WYNSTONE PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 1999 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
requires the Adviser to make estimates and assumptions that affect the
amounts reported in the financial statements and accompanying notes.
The Adviser believes that the estimates utilized in the preparing of
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
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 at their bid prices (or asked
prices in the case of listed options held short) 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 in
accordance with procedures adopted in good faith by 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
-5-
<PAGE>
WYNSTONE PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 1999 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
A. PORTFOLIO VALUATION (CONTINUED)
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 in
accordance with procedures adopted in good faith by the Individual
General Partners.
B. 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. ADMINISTRATION FEE, RELATED PARTY TRANSACTIONS AND OTHER
CIBC WM 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 WM 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.
Payable to affiliate represents insurance expense in the amount of
$40,170 paid on behalf of the Partnership by CIBC WM.
During the six months ended June 30, 1999, CIBC WM earned no brokerage
commissions from portfolio transactions executed on behalf of the
Partnership. Keefe, Bruyette & Woods, Inc., an affiliated broker of
KBWAM, earned $5,570 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 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.
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
-6-
<PAGE>
WYNSTONE PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 1999 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
3. ADMINISTRATION FEE, RELATED PARTY TRANSACTIONS AND OTHER (CONTINUED)
from the Partnership. All Individual General Partners are reimbursed by
the Partnership for all reasonable out-of-pocket expenses incurred by
them in performing their duties. For the six months ended June 30,
1999, fees (including meeting fees and an annual retainer) and expenses
paid to the Individual General Partners totaled $19,500.
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 six months ended June 30, 1999, amounted
to $12,679,320 and $7,444,072, 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 $848,360, consisting of $1,013,877 gross unrealized
appreciation and $165,517 gross unrealized depreciation.
Due from broker represents receivables and payables from unsettled
security trades and securities sold, not yet purchased.
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 June 30, 1999 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. As of June 30, 1999 and for
the period then ended, the Partnership had no outstanding margin
borrowings.
-7-
<PAGE>
WYNSTONE 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
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.
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.
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 counter party 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 six months ended June 30,
1999, the Partnership purchased 28 call option contracts at a cost of
$69,384.
When the Partnership writes an option, the premium received by the
Partnership is recorded as a liability and is subsequently adjusted to
the current market value of the option written. If a call option is
exercised, the premium is added to the proceeds from the sale of the
underlying security or currency in determining whether the Partnership
has realized a gain or loss. In writing an option, the Partnership
bears the market risk of an unfavorable change in the price of the
security or currency underlying the written option.
Exercise of an option written by the Partnership could result in the
Partnership selling or buying a security or currency at a price
different from the current market value.
-8-
<PAGE>
WYNSTONE 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)
Transactions in written options were as follows:
<TABLE>
<CAPTION>
CALL OPTIONS PUT OPTIONS
----------------------------------- -------------------------------------
NUMBER AMOUNT OF NUMBER AMOUNT OF
OF CONTRACTS PREMIUM OF CONTRACTS PREMIUM
------------------ ------------- -------------- ------------
<S> <C> <C> <C> <C>
Beginning balance 29 $ 8,719 735 $ 116,014
Options written 1,711 484,578 1,964 616,036
Options closed (1,032) (335,504) (1,439) (326,297)
Expired options 0 0 (673) (127,618)
------ --------- ------ ---------
Options outstanding at
June 30, 1999 708 $ 157,793 587 $ 278,135
====== ========= ====== =========
</TABLE>
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 SIX MONTHS ENDED
JUNE 30, 1999
-------------
Equity securities $ 663,790
Equity options 73,410
Written options 300,278
-----------
Total $1,037,478
===========
The following table presents the market values of derivative financial
instruments and the average market values of those instruments:
AVERAGE MARKET VALUE FOR
MARKET VALUE AT THE SIX MONTHS ENDED
JUNE 30, 1999 JUNE 30, 1999
-------------- ----------------------
ASSETS:
Equity options $ 88,550 $ 56,233
LIABILITIES:
Written options ($ 403,969) ($ 320,982)
Average market values presented above are based upon month-end market
values during the six months ended June 30, 1999.
-9-
<PAGE>
WYNSTONE PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 1999 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
8. SELECTED FINANCIAL RATIOS AND OTHER SUPPLEMENTAL INFORMATION
The following represents the ratios to average net assets and other
supplemental information for the period indicated:
<TABLE>
<CAPTION>
NOVEMBER 16, 1998
SIX MONTHS (COMMENCEMENT OF
ENDED OPERATIONS) TO
JUNE 30, 1999 DECEMBER 31, 1998
----------------- -------------------------
<S> <C> <C>
Ratio of net investment loss to average net assets (1.79%)* (8.39%)*
Ratio of operating expenses to average net assets 4.35%* 13.39%*
Portfolio turnover rate 76.00% 10.75%
Average commission rate paid $0.0583** $0.0600**
Total return 6.20%*** (1.40%)***
<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 Special Advisory Limited Partner, 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."
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.
-10-
<PAGE>
WYNSTONE PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 1999 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
9. YEAR 2000 (CONTINUED)
The Partnership intends to develop contingency plans designed to ensure
that third party non-compliance will not materially affect the
Partnership's operations.
-11-
<PAGE>
WYNSTONE PARTNERS, L.P.
RESULTS OF SPECIAL MEETING
- --------------------------------------------------------------------------------
The Partnership held a Special Meeting of the Limited Partners on June
25, 1999. The purpose of the meeting was to vote on proposals to
convert Wynstone Partners, L.P. from a Delaware limited partnership to
a Delaware limited liability company and to adopt the proposed limited
liability company agreement. A total of 21 partners, representing
$10,288,490 of interests in Wynstone Partners, L.P. and 67.78% of the
votes eligible to be cast at the Special Meeting, voted to approve the
conversion and adopt the agreement. The limited partners also elected
four persons to serve as Managers of the limited liability company and
ratified the selection of Ernst & Young LLP to serve as the independent
accountant for the Partnership for the year ending December 31, 1999.
The following provides information concerning the matters voted on at
the meeting:
I. PROPOSALS TO CONVERT WYNSTONE PARTNERS, L.P. FROM A DELAWARE LIMITED
PARTNERSHIP TO A DELAWARE LIMITED LIABILITY COMPANY AND TO ADOPT THE
PROPOSED LIMITED LIABILITY COMPANY AGREEMENT
VOTES FOR VOTES AGAINST VOTES ABSTAINED
--------- -------------- ---------------
$ 10,288,490 $ 0 $ 0
Effective July 1, 1999, the conversion was completed and the
Partnership changed its name to Wynstone Fund, L.L.C.
II. ELECTION OF MANAGERS OF LIMITED LIABILITY COMPANY
NOMINEE VOTES FOR VOTES WITHHELD
------- --------- --------------
Jesse H. Ausubel $ 3,859,471 $ 6,429,019
Paul Belica $ 3,859,471 $ 6,429,019
Charles F. Barber $ 3,859,471 $ 6,429,019
Thomas W. Brock $ 3,859,471 $ 6,429,019
III. RATIFICATION OF ERNST & YOUNG LLP AS THE INDEPENDENT ACCOUNTANT OF THE
PARTNERSHIP
VOTES FOR VOTES AGAINST VOTES ABSTAINED
--------- -------------- ---------------
$ 10,288,490 $ 0 $ 0
-12-
<PAGE>
WYNSTONE PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
JUNE 30, 1999
SHARES MARKET VALUE
COMMON STOCKS - 76.32%
COMMERCIAL BANKS - CENTRAL U.S. - 6.42%
10,000 Cullen/Frost Bankers, Inc. (a) $ 275,630
14,000 First Midwest Bancorp, Inc. (a) 556,500
10,700 Sterling Bancshares, Inc. 143,112
----------
975,242
----------
COMMERCIAL BANKS - EASTERN U.S. - 15.09%
10,914 Chittenden Corp. 341,063
1,000 Independent Bank Corp. 15,750
8,240 Investors Financial Services Corp. 329,600
530 M & T Bank Corp. 291,500
27,000 Peoples Heritage Financial Group, Inc. (a) 507,951
7,100 Summit Bancorp 296,872
5,500 U.S. Trust Corp. 08,750
----------
2,291,486
----------
COMMERCIAL BANKS - SOUTHERN U.S. - 10.90%
300 CCB Financial Corp. 15,788
7,600 Centura Banks, Inc. 428,450
16,300 Colonial BancGroup, Inc. 227,189
13,199 Compass Bancshares, Inc. (a) 359,673
10,300 First American Corp. (a) 428,099
9,000 National Commerce Bancorp 196,875
----------
1,656,074
----------
COMMERCIAL BANKS - WESTERN U.S. - 6.80%
4,500 City National Corp. 168,471
16,400 First Security Corp. (a) 446,900
3,850 UCBH Holdings, Inc. * 69,061
8,000 Western Bancorp 348,000
----------
1,032,432
----------
FINANCE - CREDIT CARD - 2.56%
2,400 Capital One Financial Corp. 133,651
6,200 MBNA Corp. 189,875
700 Providian Financial Corp. 65,275
----------
388,801
----------
The accompanying notes are an integral part of these financial statements.
-13-
<PAGE>
WYNSTONE PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS (UNAUDITED) (CONTINUED)
- -------------------------------------------------------------------------------
JUNE 30, 1999
SHARES MARKET VALUE
COMMON STOCKS - 76.32%- (CONTINUED)
MONEY CENTER BANKS - 1.93%
8,000 Bank of New York Co., Inc. (a) $ 293,504
-----------
S&L/THRIFTS - CENTRAL U.S. - 4.12%
6,400 Commercial Federal Corp. (a) 148,403
18,730 St. Paul Bancorp, Inc. 477,615
-----------
626,018
-----------
S&L/THRIFTS - EASTERN U.S. - 7.18%
10,000 Reliance Bancorp, Inc. 276,250
29,000 Seacoast Financial Services Corp. (a) 329,875
40,000 Sovereign Bancorp, Inc. (a) 485,000
-----------
1,091,125
-----------
SUPER-REGIONAL BANKS - U.S. - 21.32%
11,400 Bank One Corp. (a) 679,018
4,200 Comerica, Inc. 249,640
23,400 KeyCorp (a) 751,725
28,000 Mellon Bank Corp. (a) 1,018,500
11,500 U.S. Bancorp (a) 383,813
3,500 Union Planters Corp. 156,408
-----------
3,239,104
-----------
TOTAL COMMON STOCKS (COST $10,796,551) $11,593,786
===========
The accompanying notes are an integral part of these financial statements.
-14-
<PAGE>
WYNSTONE PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
JUNE 30, 1999
NUMBER OF MARKET VALUE
CONTRACTS
CALL OPTIONS - 0.58%
SUPER-REGIONAL BANKS- U.S. - 0.58%
28 SunTrust Banks, Inc., 01/22/00, $40.00 $ 88,550
-----------
TOTAL CALL OPTIONS (COST $69,384) 88,550
===========
TOTAL INVESTMENTS (COST $10,865,935) - 76.90% 11,682,336
===========
OTHER ASSETS, LESS LIABILITIES - 23.10% 3,509,767
-----------
NET ASSETS - 100% $15,192,103
===========
(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-
<PAGE>
WYNSTONE PARTNERS, L.P.
SCHEDULE OF WRITTEN OPTIONS (UNAUDITED)
- --------------------------------------------------------------------------------
JUNE 30, 1999
NUMBER OF MARKET VALUE
CONTRACTS
WRITTEN CALL OPTIONS - (1.01%)
COMMERCIAL BANKS - EASTERN U.S. - (0.15%)
71 Summit Bancorp, 01/22/00, $42.50 $(23,075)
----------
COMMERCIAL BANKS - SOUTHERN U.S. - (0.19%)
20 Compass Bancshares, Inc., 07/17/99, $23.38 (12,750)
86 Hibernia Corp., 10/16/99, $17.50 (9,675)
90 National Commerce Bancorp, 07/17/99, $22.50 (6,192)
----------
(28,617)
----------
COMMERCIAL BANKS - WESTERN U.S. - (0.06%)
45 City National Corp., 11/20/99, $40.00 (8,438)
----------
FINANCE - CREDIT CARDS - (0.28%)
41 MBNA Corp., 01/22/00, $26.63 (42,281)
----------
S&L/THRIFTS - EASTERN U.S. - (0.16%)
25 Sovereign Bancorp, Inc., 01/22/00, $12.50 (4,845)
200 Sovereign Bancorp, Inc., 01/22/00, $15.00 (18,760)
70 Sovereign Bancorp, Inc., 07/17/99, $15.00 (875)
----------
(24,480)
----------
SUPER-REGIONAL BANKS- U.S. - (0.17%)
60 Bank One Corp., 01/22/00, $65.00 (26,250)
----------
TOTAL WRITTEN CALL OPTIONS (PREMIUMS $157,793) (153,141)
==========
sWRITTEN PUT OPTIONS - (1.65%)
COMMERCIAL BANKS - SOUTHERN U.S. - (0.35%)
40 First American Corp., 09/18/99, $40.00 (7,000)
40 First American Corp., 09/18/99, $45.00 (19,000)
52 Mercantile Bank, 12/18/99, $55.00 (17,550)
70 National Commerce Bank, 07/17/99, $22.50 (9,625)
----------
(53,175)
----------
The accompanying notes are an integral part of these financial statements.
-16-
<PAGE>
WYNSTONE PARTNERS, L.P.
SCHEDULE OF WRITTEN OPTIONS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
JUNE 30, 1999
NUMBER OF MARKET VALUE
CONTRACTS
WRITTEN PUT OPTIONS - (CONTINUED)
FINANCE - CREDIT CARD - (0.46%)
33 Capital One Financial Corp., 09/18/99, $46.63 $(3,920)
30 Capital One Financial Corp., 09/18/99, $58.38 (22,875)
30 Capital One Financial Corp., 12/18/99, $56.67 (21,000)
50 Capital One Financial Corp., 12/18/99, $51.63 (22,500)
----------
(70,295)
----------
MONEY CENTER BANKS - (0.08%)
23 Bank of America Corp., 08/21/99, $70.00 (5,320)
20 Chase Manhattan Corp., 09/18/99, $80.00 (6,500)
----------
(11,820)
----------
SUPER-REGIONAL BANKS - U.S. - (0.76%)
28 Bank One Corp., 08/21/99, $60.00 (9,100)
26 Comerica, Inc., 07/17/99, $60.00 (4,875)
125 U.S. Bancorp, 01/22/00, $40.00 (95,313)
20 Wachovia Corp., 08/21/99, $85.00 (6,250)
----------
(115,538)
----------
TOTAL WRITTEN PUT OPTIONS (PREMIUMS $278,135) (250,828)
==========
TOTAL OPTIONS WRITTEN (PREMIUMS $435,928) $(403,969)
==========
The accompanying notes are an integral part of these financial statements.
-17-
