SEMI-ANNUAL REPORT
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Contrarian Value Fund
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July 31, 2000
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Contrarian Value Fund
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Schedule of Investments
July 31, 2000 (Unaudited)
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Shares/Principal Amount Market Value % of Assets
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COMMON STOCKS
Data Processing
1,000 Billserv.com 9,187 1.95%
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Electronic Payment Processing
2,000 First E Com 14,500 3.08%
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Food/like Products
400 Sara Lee Corp. 7,375 1.57%
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Packaging Paper and Plastics Film, Coated and Laminated
900 Pactiv Corp* 8,325 1.77%
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Telegraph and Other Message Communications
100 Level 3 Comm 6,843 1.45%
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Toiletries
200 Procter & Gamble Co,* 11,375 2.41%
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Trust Foundation
150 Daimonds Trust* 15,750 3.34%
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Total for Common Stock 73,355 15.57%
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Financial Reserves
303,693 Fifth Third Money Money Market 303,693 64.47%
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Unit Investment Trust
120 S&P 500 Depositary Receipts* 17,273 3.67%
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Total Investments (cost $411,763) 394,321 83.71%
Other Assets Less Liabilities 76,742 16.29%
Net Assets 471,063 100.00%
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Contrarian Value Fund
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Statement of Assets and Liabilities
July 31, 2000 (unaudited)
Assets:
Investment Securities at Market Value $ 394,321
(Identified Cost - 411,763)
Cash 25,722
Receivables:
Investment Securities Sold 50,613
Dividends and Interest 1,229
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Total Assets 471,885
Liabilities
Accrued Expenses 822
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Total Liabilities 822
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Net Assets $ 471,063
Net Assets Consist of:
Capital Paid In 719,322
Accumulated Undistributed Net Investment Income 1,173
Accumulated Realized Gain (Loss) on Investments - Net (231,990)
Unrealized Depreciation in Value
of Investments Based on Identified Cost - Net (17,442)
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Net Assets, for 70,244 Shares Outstanding $ 471,063
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Net Asset Value and Redemption Price
Per Share ($471,063/70,244 shares) 6.71
Offering Price Per Share 6.71
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Contrarian Value Fund
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Statement of Operations
July 31, 2000 (unaudited)
Investment Income:
Dividends 2,530
Interest 3,081
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Total Investment Income 5,611
Expenses
Management Fees (Note 2) 3,327
Administrative Fees 1,331
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Total Expenses 4,658
Net Investment Income 953
Realized and Unrealized Gain (Loss) on Investments:
Realized Gain (Loss) on Investments (118,051)
Unrealized Appreciation (Depreciation) on Investments 62,536
Net Realized and Unrealized Gain (Loss) on Investments (55,515)
Net Increase (Decrease) in Net Assets from Operations (54,562)
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Contrarian Value Fund
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Statement of Changes in Net Assets (Unaudited)
1/31/00 2/10/99*
to to
7/31/00 1/31/00
From Operations:
Net Investment Income 953 6,139
Net Realized Gain (Loss) on Investments (118,051) (113,939)
Net Unrealized Appreciation (Depreciation) 62,536 (79,978)
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Increase (Decrease) in Net Assets from Operations (54,562) (187,778)
From Distributions to Shareholders
Net Investment Income 0 (5,919)
Net Realized Gain (Loss) from Security Transactions 0 0
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Net Increase (Decrease) from Distributions 0 (5,919)
From Capital Share Transactions:
Proceeds From Sale of Shares 31,856 666,649
Shares Issued on Reinvestment of Dividends 0 5,919
Cost of Shares Redeemed (57,249) (27,853)
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Net Increase from Shareholder Activity (25,393) 644,715
Net Increase in Net Assets (79,955) 451,018
Net Assets at Beginning of Period 551,018 100,000
Net Assets at End of Period
471,063 551,018
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Share Transactions:
Issued 4,095 65,871
Reinvested - 718
Redeemed (7,441) (2,999)
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Net increase (decrease) in shares (3,346) 63,590
Shares outstanding beginning of period 73,590 10,000
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Shares outstanding end of period 70,244 73,590
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*commencement of operations
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Contrarian Value Fund
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Financial Highlights (Unaudited)
Selected data for a share outstanding throughout the period:
01/31/00 02/10/99**
to to
07/31/00 1/31/00
Net Asset Value -
Beginning of Period 7.49 10.00
Net Investment Income 0.01 0.09
Net Gains or Losses on Securities
(realized and unrealized) (0.79) (2.52)
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Total from Investment Operations (0.78) (2.43)
Dividends
(from net investment income) 0.00 (0.08)
Distributions (from capital gains) 0.00 0.00
Return of Capital 0.00 0.00
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Total Distributions 0.00 (0.08)
Net Asset Value -
End of Period 6.71 7.49
Total Return -10.41% -24.37%
Ratios/Supplemental Data
Net Assets - End of Period (Thousands) 471 551
Ratio of Expenses to Average Net Assets * 1.75% 1.75%
Ratio of Net Income to Average Net Assets * 0.36% 0.98%
Portfolio Turnover Rate * 747.90% 231.49%
* Annualized
** commencement of operations.
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Contrarian Value Fund
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Notes to Financial Statements
July 31, 2000 (unaudited)
1.)SIGNIFICANT ACCOUNTING POLICIES
Contrarian Value Fund (the "Fund") is a non-diversified series of Firstmark
Partners (the "Trust"), an open-end management investment company. The
Trust was organized in Delaware as a business trust and may offer shares of
beneficial interest in a number of separate series, each series
representing a distinct fund with its own investment objectives and
policies. At present, there is only one series authorized by the Trust,
which series has been designated as the Contrarian Value Fund. The Fund's
primary investment objective is to seek capital appreciation by primarily
investing in a core portfolio of 20-30 common stocks that the Fund's
adviser believes to be undervalued in the marketplace. Receipt of income is
a secondary objective, as some investments may yield dividends, interest or
other income. Significant accounting policies of the Fund are presented
below:
SECURITY VALUATION:
The Fund intends to invest in a wide variety of equity and debt securities.
The investments in securities are carried at market value. The market
quotation used for common stocks, including those listed on the NASDAQ
National Market System, is the last sale price on the date on which the
valuation is made or, in the absence of sales, at the closing bid price.
Over-the-counter securities will be valued on the basis of the bid price at
the close of each business day. Short-term investments are valued at
amortized cost, which approximates market. Securities for which market
quotations are not readily available will be valued at fair value as
determined in good faith pursuant to procedures established by the Board of
Directors.
Fixed income securities generally are valued by using market quotations,
but may be valued on the basis of prices furnished by a pricing service
when the Adviser believes such prices accurately reflect the fair market
value of such securities. A pricing service utilizes electronic data
processing techniques based on yield spreads relating to securities with
similar characteristics to determine prices for normal institutional-size
trading units of debt securities without regard to sale or bid prices. When
prices are not readily available from a pricing service, or when restricted
or illiquid securities are being valued, securities are valued at fair
value as determined in good faith by the Adviser, subject to review of the
Board of Trustees. Short term investments in fixed income securities with
maturities of less than 60 days when acquired, or which subsequently are
within 60 days of maturity, are valued by using the amortized cost method
of valuation, which the Board has determined will represent fair value.
SECURITY TRANSACTION TIMING:
Security transactions are recorded on the dates transactions are entered
into (the trade dates). Dividend income and distributions to shareholders
are recorded on the ex-dividend date. Interest income is recorded as
earned. The Fund uses the identified cost basis in computing gain or loss
on sale of investment securities. Discounts and premiums on securities
purchased are amortized over the life of the respective securities.
REPURCHASE AGREEMENTS:
The Fund may enter into repurchase agreements with financial institutions
deemed to be creditworthy by Firstmark, the Fund's investment advisor,
under guidelines approved by the Trust's Board of Trustees, subject to the
seller's agreement to repurchase and the Funds' agreement to resell such
securities at a mutually agreed-upon date and price. Securities purchased
subject to repurchase agreements are deposited with the Funds' custodian
and pursuant to the terms of the repurchase agreement, must have an
aggregate market value greater than or equal to the repurchase price plus
accrued interest at all times. If the seller were to default on its
repurchase obligation or become insolvent, the Fund would suffer a losses
to the extent that the proceeds from a sale of the underlying portfolio
securities were less than the repurchase price under the agreement, or to
the extent that the disposition of such securities by the Fund was delayed
pending court action.
INCOME TAXES:
It is the Fund's policy to distribute annually, prior to the end of the
calendar year, dividends sufficient to satisfy excise tax requirements of
the Internal Revenue Service. This Internal Revenue Service requirement may
cause an excess of distributions over the book year-end accumulated income.
In addition, it is the Fund's policy to distribute annually, after the end
of the fiscal year, any remaining net investment income and net realized
capital gains.
ESTIMATES:
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
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2.)INVESTMENT ADVISORY AGREEMENT
The Fund has entered into an investment advisory and administration
agreement with Firstock Financial Services, Inc. The Fund is authorized to
pay the Adviser a fee equal to an annual average rate of 1.25% for
investment adviser services and a fee equal to an annual average rate of
0.50% for administrative fees. As a result of the above calculation, for
the six months ending July 31, 2000, the advisor received management fees
totaling $3,327 and administrative fees totaling $1,331.
3.)RELATED PARTY TRANSACTIONS
The owner of Firstock Financial Services, Inc. is also a trustee of the
Contrarian Value Fund. This individual may receive benefits from any
management fee paid to the Advisor. Waterhouse Securities, Inc. provides
research and quotation services to the Fund at no charge due to an
arrangement with Firstock Financial Services, Inc., the Advisor. The
beneficial ownership either directly or indirectly, of more than 25% of the
voting securities of a Fund creates a presumption of control of the Fund,
under Section 2(a)(9) of the Investment Company Act of 1940. As of July 31,
2000, National Investor Services owned of record in aggregate more than 99%
of the Fund.
4.)CAPITAL STOCK AND DISTRIBUTION
At July 31, 2000 an indefinite number of shares of capital stock ($.10 par
value) were authorized, and paid-in capital amounted to $719,322.
5.)PURCHASES AND SALES OF SECURITIES
During the six months ending July 31, 2000, purchases and sales of
investment securities other than U.S. Government obligations and short-term
investments aggregated $1,234,152 and $1,481,767 respectively. Purchases
and sales of U.S. Government obligations aggregated $0 and $0 respectively.
6.)SECURITY TRANSACTIONS
For Federal income tax purposes, the cost of investments owned at July 31,
2000 was the same as identified cost. At July 31, 2000, the composition of
unrealized appreciation (the excess of value over tax cost) and
depreciation (the excess of tax cost over value) was as follows:
Appreciation (Depreciation) Net Appreciation (Depreciation)
1,651 (19,093) (17,442)
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Contrarian Value Fund
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Board of Trustees
Mark H. Baumann
Jane A. Baumann
John R. Wingender Jr.
Robin R. Richardson
Gary L. Teel
Investment Adviser
Firstock Financial Services, Inc.
808 south 74th Plaza, Suite #113
Omaha, Nebraska 68114-4666
Dividend Paying Agent,
Shareholders' Servicing Agent,
Transfer Agent
Mutual Shareholder Services
1301 E. 9th St., Suite 1005
Cleveland, Ohio 44114
Custodian
Fifth Third Bank
Mutual Fund Services
38 Fountain Square Plaza
MD 1090E5
Cincinnati, Ohio 45263
Counsel
Anderson, Berkshire, Lauritsen & Brower
8805 Indian Hills Dr., Suite.# 200
Omaha, Nebraska 68114
Independent Auditors
McCurdy & Associates CPA's, Inc.
27955 Clemens Rd
Westlake, Ohio 44145
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