XANTHUS FUND, L.L.C.
FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED
JUNE 30, 2000
(UNAUDITED)
<PAGE>
XANTHUS FUND, L.L.C.
FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED
JUNE 30, 2000
(UNAUDITED)
CONTENTS
Statement of Assets, Liabilities and Members' Capital..................... 1
Statement of Operations................................................... 2
Statement of Changes in Members' Capital - Net Assets..................... 3
Notes to Financial Statements............................................. 4
Schedule of Portfolio Investments......................................... 10
Schedule of Securities Sold, Not Yet Purchased............................ 15
<PAGE>
XANTHUS FUND, L.L.C.
STATEMENT OF ASSETS, LIABILITIES AND MEMBERS' CAPITAL (IN THOUSANDS)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
JUNE 30, 2000
Assets (UNAUDITED)
<S> <C>
Cash $ 327
Investments in securities, at market (identified cost - $308,156) 378,888
Due from broker 83,839
Interest receivable 722
Dividends receivable 1
Other assets 43
-------------
TOTAL ASSETS 463,820
-------------
LIABILITIES
Securities sold, not yet purchased, at market (proceeds of sales - $101,939) 107,671
Withdrawals payable 5,613
Dividends payable on securities sold, not yet purchased 16
Management fee payable 269
Accrued expenses 280
-------------
TOTAL LIABILITIES 113,849
-------------
NET ASSETS $ 349,971
=============
MEMBERS' CAPITAL - NET ASSETS
Represented by:
Capital contributions - net $ 251,672
Accumulated net investment loss (3,430)
Accumulated net realized gain on investments 36,729
Accumulated net unrealized appreciation 65,000
-------------
MEMBERS' CAPITAL - NET ASSETS $ 349,971
=============
</TABLE>
The accompanying notes are an integral part of these financial statements.
-1-
<PAGE>
XANTHUS FUND, L.L.C.
Statement of Operations (in thousands)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000
(UNAUDITED)
<S> <C>
Investment Income
Interest $ 1,856
Dividends 94
-----------
1,950
-----------
EXPENSES
OPERATING EXPENSES:
Management fee 1,594
Prime broker fee 206
Administration fees 194
Professional fees 89
Insurance expense 58
Custodian fees 42
Board of Managers' fees and expenses 15
Miscellaneous 18
-----------
TOTAL OPERATING EXPENSES 2,216
Interest expense 1,337
Dividends on securities sold, not yet purchased 141
-----------
TOTAL EXPENSES 3,694
-----------
NET INVESTMENT LOSS (1,744)
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
REALIZED GAIN (LOSS) ON INVESTMENTS:
Investment securities 48,731
Purchased options (3,004)
Short sales (11,533)
-----------
NET REALIZED GAIN ON INVESTMENTS 34,194
-----------
NET CHANGE IN UNREALIZED APPRECIATION ON INVESTMENTS (10,032)
-----------
NET REALIZED AND UNREALIZED GAIN 24,162
-----------
INCREASE IN MEMBERS' CAPITAL DERIVED FROM INVESTMENT ACTIVITIES $ 22,418
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
-2-
<PAGE>
XANTHUS FUND, L.L.C.
STATEMENT OF CHANGES IN MEMBERS' CAPITAL - NET ASSETS (IN THOUSANDS)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD MAY 4, 1999
JUNE 30, 2000 (COMMENCEMENT OF OPERATIONS)
(UNAUDITED) TO DECEMBER 31, 1999
<S> <C> <C>
From investment activities
Net investment loss $ (1,744) $ (1,686)
Net realized gain on investments 34,194 2,535
Net change in unrealized appreciation on
investments (10,032) 75,032
---------- ----------
INCREASE IN MEMBERS' CAPITAL
DERIVED FROM INVESTMENT ACTIVITIES 22,418 75,881
MEMBERS' CAPITAL TRANSACTIONS
Capital contributions 160,797 115,023
Capital withdrawals (20,919) (3,179)
Syndication Costs 0 (50)
---------- ----------
INCREASE IN MEMBERS' CAPITAL
DERIVED FROM CAPITAL TRANSACTIONS 139,878 111,794
MEMBERS' CAPITAL AT BEGINNING OF PERIOD 187,675 0
---------- ----------
MEMBERS' CAPITAL AT END OF PERIOD $ 349,971 $ 187,675
========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
-3-
<PAGE>
XANTHUS FUND, L.L.C.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
1. ORGANIZATION
Xanthus Fund, L.L.C. (the "Company") was organized as a limited
liability company under the laws of Delaware in January 1999. The
Company is registered under the Investment Company act of 1940 (the
"Act") as a closed-end, non-diversified management investment company.
The Company's term is perpetual unless the Company is otherwise
terminated under the terms of the Limited Liability Agreement dated as
of February 10, 1999. The Company's investment objective is to achieve
maximum capital appreciation . It pursues this objective by actively
investing in a portfolio consisting primarily of equity securities of
technology companies and of companies which derive a major portion of
their revenue directly or indirectly from technological events and
advances. The Company's portfolio of securities in the technology area
is expected to include long and short positions primarily in equity
securities of U.S. and non-U.S. companies. Equity securities include
common and preferred stock and other securities having equity
characteristics, including convertible debt securities, stock options,
warrants and rights.
Responsibility for the overall management and supervision of the
operations of the Company is vested in the individuals who serve as the
Board of Managers of the Company (the "Board of Managers"). There are
four members of the "Board of Managers" and an "Adviser". CIBC
Oppenheimer Advisors, L.L.C. (the "Adviser"), a Delaware limited
liability Company, serves as the investment adviser to the Company and
is responsible for the Company's investment activities pursuant to an
investment advisory agreement. CIBC World Markets Corp. ("CIBC WM")
(formerly CIBC Oppenheimer Corp.) is the managing member and
controlling person of the Adviser.
The acceptance of initial and additional contributions is subject to
approval by the Board of Managers. The Company may from time to time
offer to repurchase interests pursuant to written tenders by Members.
Such repurchases will be made at such times and on such terms as may be
determined by the Board of Managers, in their complete and exclusive
discretion. The Adviser expects that generally it will recommend to the
Board of Managers that the Company offer to repurchase interests from
Members 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 the
estimates utilized in preparing the Company's financial statements are
reasonable and prudent; however, actual results could differ from these
estimates.
-4-
<PAGE>
XANTHUS FUND, L.L.C.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 2000 (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
a. PORTFOLIO VALUATION (CONTINUED)
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 sold 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 sold short) as obtained from one or more dealers making
markets for those 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 Board of
Managers.
Debt securities (other than convertible 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 Board of Managers 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 Board of Managers
to represent fair value.
All assets and liabilities initially expressed in foreign currencies
will be converted into U.S. dollars using foreign exchange rates
provided by a pricing service compiled as of 4:00 p.m. London time.
Trading in foreign securities generally is completed, and the values of
such securities are determined, prior to the close of securities
markets in the U.S. Foreign exchange rates are also determined prior to
such close. On occasion, the values of such securities and exchange
rates may be affected by events occurring between the time such values
or exchange rates are determined and the time that the net asset value
of the Company is determined. When such events materially affect the
values of securities held by the Company 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 Board of Managers.
-5-
<PAGE>
XANTHUS FUND, L.L.C.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 2000 (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 Members are
individually liable for the income taxes on their share of the
Company's income.
3. ADMINISTRATION FEE, RELATED PARTY TRANSACTIONS AND OTHER
CIBC WM provides certain administrative services to the Company
including, among other things, providing office space and other support
services to the Company. In exchange for such services, the Company
pays CIBC WM a monthly administration fee of .08333% (1% on an
annualized basis) of the Company's net assets determined as of the
beginning of the month.
The Adviser of the Company will serve as the Special Advisory Member of
the Company. In such capacity, the Adviser will be entitled to receive
an incentive allocation (the "Incentive Allocation"), charged to the
capital account of each Member 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 Member's "loss recovery account." The Incentive
Allocation will be credited to the Special Advisory Account of the
Adviser.
Each Member of the Board of Managers ("Managers") who is not an
"interested person" of the company, as defined by the act, receives an
annual retainer of $5,000 plus a fee for each meeting attended.
Currently, no Manager is an "interested person" of the Company. All
Managers are reimbursed by the Company for all reasonable out-of-pocket
expenses incurred by them in performing their duties. For the period
ended June 30, 2000, fees (including meeting fees and a pro-rata annual
retainer) and expenses paid to the Managers totaled $24,900.
The Chase Manhattan Bank served as Custodian of the Company's assets
for the six months ended June 30, 2000.
PFPC Inc. serves as Investor Services and Accounting Agent to the
Company, 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 ended June 30, 2000, amounted to
$681,600,140 and $567,816,409, respectively.
-6-
<PAGE>
XANTHUS FUND, L.L.C.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 2000 (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
4. SECURITIES TRANSACTIONS (CONTINUED)
At June 30, 2000, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes. At June 30, 2000, accumulated net unrealized appreciation on
investments was $64,999,670 consisting of $93,820,555 gross unrealized
appreciation and $28,820,885 gross unrealized depreciation.
Due from broker represents receivables and payables from unsettled
security trades and proceeds from securities sold, not yet purchased.
5. SHORT-TERM BORROWINGS
The Company 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
Company to satisfy an asset coverage requirement of 300% of its
indebtedness, including amounts borrowed, measured at the time the
Company incurs the indebtedness. The Company pays interest on
outstanding margin borrowings at an annualized rate of LIBOR plus
.875%. The Company pledges securities as collateral for the margin
borrowings, which are maintained in a segregated account held by the
Custodian. As of June 30, 2000, the Company had no outstanding margin
borrowings. For the period ended June 30, 2000, the average daily
amount of such borrowings was $37,906,502.
6. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK OR
CONCENTRATIONS OF CREDIT RISK
In the normal course of business, the Company 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 members'
capital.
The Company maintains cash in bank deposit accounts, which at times may
exceed federally insured limits. The Company has not experienced any
losses in such accounts and does not believe it is exposed to any
significant credit risk on cash.
-7-
<PAGE>
XANTHUS FUND, L.L.C.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 2000 (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
6. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK OR
CONCENTRATIONS OF CREDIT RISK (CONTINUED)
Securities sold, not yet purchased represent obligations of the Company
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
Company'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 members' capital.
The risk associated with purchasing an option is that the Company pays
a premium whether or not the option is exercised. Additionally, the
Company bears the risk of loss of premium and change in market value
should the counterparty not perform under the contract. Put and call
options purchased are accounted for in the same manner as investment
securities.
Transactions in purchased options were as follows:
<TABLE>
<CAPTION>
PUT OPTIONS
-----------------------------------
NUMBER
OF CONTRACTS COST
------------ -------------
<S> <C> <C>
Beginning balance 430 $ 9,762,290
Options purchased 3,574 99,329,190
Options closed (4,004) (109,091,480)
Expired options (0) (0)
------ -------------
Options outstanding at June 30, 2000 0 $ 0
====== =============
</TABLE>
7. FINANCIAL INSTRUMENTS HELD OR ISSUED FOR TRADING PURPOSES
The Company maintains positions in a variety of financial instruments.
The following table summarizes the components of net realized and
unrealized gains from investment transactions:
NET GAINS/LOSSES
FOR THE PERIOD ENDED
JUNE 30, 2000
--------------------
Equity securities $27,237,402
Index options (3,075,079)
-----------
Total $24,162,323
===========
-8-
<PAGE>
XANTHUS FUND, L.L.C.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 2000 (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
7. FINANCIAL INSTRUMENTS HELD OR ISSUED FOR TRADING PURPOSES (CONTINUED)
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
JUNE 30, 2000 JUNE 30, 2000
--------------- --------------------
ASSETS:
Index options $ 0 $8,689,583
Average market values presented above are based upon month-end market
values during the period ended June 30, 2000.
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>
MAY 4, 1999
SIX MONTHS ENDED (COMMENCEMENT OF OPERATIONS)
JUNE 30, 2000 TO DECEMBER 31, 1999
---------------- ----------------------------
<S> <C> <C>
Ratio of net investment loss
to average net assets (1.16%)* (2.67%)*
Ratio of operating expenses
to average net assets 1.34%* 1.92% *
Ratio of interest expense
to average net assets 1.03%* 1.52% *
Ratio of dividends on securities sold,
not yet purchased to average net assets 0.09%* 0.06% *
Portfolio turnover rate 172.83% 143.30%
Total return ** 11.75% 79.07%
<FN>
* Annualized.
** Total return assumes a purchase of an interest in the Company
on the first day and a sale of the interest on the last day of
the period noted, before incentive allocation to the Special
Advisory Member, if any. Total returns for a period of less
than a full year are not annualized.
</FN>
</TABLE>
-9-
<PAGE>
XANTHUS FUND, L.L.C.
SCHEDULE OF PORTFOLIO INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
JUNE 30, 2000
SHARES MARKET VALUE
COMMON STOCKS - 108.26%
APPLICATIONS SOFTWARE - 10.70%
2,000 Intertrust Technologies Corp. * $ 41,126
50,456 Intuit, Inc. * 2,087,617
264,052 Microsoft Corp. * (a) 21,124,160
34,100 Parametric Technology Corp. * 375,100
42,100 Rational Software Corp. * 3,912,690
60,600 Siebel Systems, Inc. * (a) 9,911,918
------------
37,452,611
------------
AUDIO/VIDEO PRODUCTS - 0.90%
51,000 Gemstar International Group Ltd. * 3,134,103
------------
CABLE TV - 0.22%
35,400 USA Networks, Inc.* 765,525
------------
CELLULAR TELECOMMUNICATIONS - 4.23%
183,992 Nextel Communications, Inc. * (a) 11,258,102
30,500 VoiceStream Wireless Corp. * 3,547,059
------------
14,805,161
------------
CIRCUITS - 4.02%
82,600 Linear Technology, Inc. 5,281,238
71,300 Maxim Integrated Products, Inc.* 4,843,979
53,550 Vitesse Semiconductor, Inc.* 3,939,299
------------
14,064,516
------------
COMPUTERS - MEMORY DEVICES - 3.42%
1 Seagate Technology, Inc. * 55
38,930 StorageNetworks, Inc.* 3,513,433
74,890 VERITAS Software Corp. * (a) 8,463,768
------------
11,977,256
------------
The accompanying notes are an integral part of these financial statements.
-10-
<PAGE>
XANTHUS FUND, L.L.C.
SCHEDULE OF PORTFOLIO INVESTMENTS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
JUNE 30, 2000
SHARES MARKET VALUE
COMMON STOCKS - (CONTINUED)
COMPUTERS - MICRO - 5.12%
73,560 Apple Computer, Inc. * $ 3,852,705
130,852 Dell Computer Corp. * 6,452,705
1 Hewlett Packard Company 125
83,784 Sun Microsystems, Inc. * 7,619,149
------------
17,924,684
------------
COMPUTERS - VOICE RECOGNITION - 0.04%
1,700 Nuance Communications, Inc.* 141,631
------------
DECISION SUPPORT SOFTWARE - 0.00%
430 Precise Software Solutions Ltd.* 10,320
------------
DISTRIBUTION - WHOLESALE - 0.05%
4,316 Tech Data Corp. * 188,018
------------
E-COMMERCE - 0.71%
46,000 eBay, Inc. * 2,498,398
------------
ELECTRONIC COMPONENTS - MISCELLANEOUS - 0.00%
2 Solectron Corp. * 84
------------
ELECTRONIC COMPONENTS - SEMICONDUCTORS - 24.17%
67,850 Altera Corp. * 6,916,493
134,160 Analog Devices, Inc. * 10,196,160
60,388 Applied Materials, Inc. * 5,472,662
23,600 Applied Micro Circuits Corp. 2,330,500
22,500 Atmel Corp. * 829,687
54,852 Conexant Systems, Inc. * 2,667,179
197,430 Intel Corp. (a) 26,394,022
59,050 KLA - Tencor Corp.* 3,458,145
56,350 Marvell Technology Group Ltd.* 3,211,950
1,000 Parthus Technologies PLC. - Sponsored ADR* 28,500
The accompanying notes are an integral part of these financial statements.
-11-
<PAGE>
XANTHUS FUND, L.L.C.
SCHEDULE OF PORTFOLIO INVESTMENTS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
JUNE 30, 2000
SHARES MARKET VALUE
COMMON STOCKS - (CONTINUED)
ELECTRONIC COMPONENTS - SEMICONDUCTORS - (CONTINUED)
35,350 PMC Sierra, Inc.* $ 6,281,271
47,300 Triquint Semiconductor, Inc.* 4,526,042
49,300 Varian Semiconductor Equipment Associates,
Inc. * 3,096,681
110,968 Xilinx, Inc. * (a) 9,161,850
------------
84,571,142
------------
ENTERPRISE SOFTWARE/SERVICES - 2.84%
90,200 BEA Systems, Inc. * 4,459,308
46,550 i2 Technologies, Inc. * 4,853,582
38,150 PeopleSoft, Inc. * 639,012
------------
9,951,902
------------
ENTERTAINMENT SOFTWARE - 0.25%
11,800 Electronic Arts, Inc. * 860,668
------------
FIBER OPTICS - 12.02%
53,150 CIENA Corp.* 8,859,467
36,100 Corning, Inc. 9,742,488
11,900 Harmonic, Inc.* 294,525
77,040 JDS Uniphase Corp. * 9,235,170
94,200 Metromedia Fiber Network, Inc. * 3,738,610
35,800 SDL, Inc. (a) 10,209,730
------------
42,079,990
------------
INTERNET CONTENT - 2.38%
71,000 CMGI, Inc. * 3,252,723
1,208 eMerge Interactive, Inc. * 21,669
40,652 Yahoo!, Inc. * (a) 5,035,767
------------
8,310,159
------------
INTERNET SOFTWARE - 2.38%
59,500 America Online, Inc. * 3,134,936
90,500 BroadVision, Inc. * 4,598,577
66,490 Genuity, Inc.* 608,798
------------
8,342,311
------------
The accompanying notes are an integral part of these financial statements.
-12-
<PAGE>
XANTHUS FUND, L.L.C.
SCHEDULE OF PORTFOLIO INVESTMENTS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
JUNE 30, 2000
SHARES MARKET VALUE
COMMON STOCKS - (CONTINUED)
MEDICAL - BIOMEDICAL/GENE - 2.44%
59,000 Amgen, Inc.* $ 4,144,750
88,500 Immunex Corp.* 4,375,263
------------
8,520,013
------------
NETWORKING PRODUCTS - 13.43%
368,360 Cisco Systems, Inc. * (a) 23,414,067
23,800 Juniper Networks, Inc. * 3,464,399
54,100 Network Appliance, Inc. * 4,355,050
187,616 Oracle Corp. (a) 15,771,564
------------
47,005,080
------------
SATELLITE TELECOMMUNICATIONS - 0.50%
53,100 EchoStar Communications Corp.* 1,758,088
------------
TELECOMMUNICATIONS EQUIPMENT - 14.43%
1,050 Accelerated Networks, Inc.* 44,297
145,620 ADC Telecommunications, Inc. * 12,213,877
70,800 Comverse Technology, Inc.* 6,584,400
3,558 Lucent Technologies, Inc. 210,812
188,800 Nokia Corp. - Sponsored ADR 9,428,294
107,368 Nortel Networks, Corp. 7,327,866
108,600 QUALCOMM, Inc. * (a) 6,516,000
332,000 Telefonaktiebolaget LM Ericsson -
Sponsored ADR 6,640,000
22,516 Tellabs, Inc. * 1,540,950
------------
50,506,496
------------
TELECOMMUNICATIONS SERVICES - 2.15%
106,200 Global Crossing, Ltd.* 2,794,441
29,500 NTL, Inc.* 1,766,312
59,500 Qwest Communications International, Inc.* 2,956,436
------------
7,517,189
------------
TELEPHONE - INTEGRATED - 1.24%
94,400 WorldCom, Inc.* 4,330,600
------------
The accompanying notes are an integral part of these financial statements.
-13-
<PAGE>
XANTHUS FUND, L.L.C.
SCHEDULE OF PORTFOLIO INVESTMENTS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
JUNE 30, 2000
SHARES MARKET VALUE
COMMON STOCKS - (CONTINUED)
WIRELESS EQUIPMENT - 0.62%
5,400 Handspring, Inc.* $ 145,800
60,720 Palm, Inc. * 2,026,530
------------
2,172,330
------------
TOTAL COMMON STOCKS (COST $308,156,439) $378,888,275
=============
TOTAL INVESTMENTS (COST $308,156,439) - 108.26% 378,888,275
------------
OTHER ASSETS, LESS LIABILITIES - (8.26%) (28,916,890)
------------
NET ASSETS - 100.00% $349,971,385
=============
(a) Partially or wholly held in a pledged account by the custodian as collateral
for securities sold, not yet purchased.
* Non income producing security.
The accompanying notes are an integral part of these financial statements.
-14-
<PAGE>
XANTHUS FUND, L.L.C.
SCHEDULE OF SECURITIES SOLD, NOT YET PURCHASED (UNAUDITED)
--------------------------------------------------------------------------------
JUNE 30, 2000
SHARES MARKET VALUE
SHORT COMMON STOCK - (30.77%)
APPLICATIONS SOFTWARE - (1.25%)
11,900 Clarus Corp. $ (462,612)
42,100 Rational Software, Inc. (3,912,690)
2 Siebel Systems, Inc. (327)
------------
(4,375,629)
------------
COMMERCIAL SERVICES - FINANCE - (0.14%)
11,900 Paychex, Inc. (499,800)
------------
COMPUTERS - INTEGRATED SYSTEMS - (0.18%)
17,850 Synopsis, Inc. (616,950)
------------
COMPUTER SERVICES - (0.39%)
11,900 Computer Sciences Corp. (888,781)
11,850 Electronic Data Systems Corp. (488,813)
2 Sapient Corp. (214)
------------
(1,377,808)
------------
COMPUTERS - MEMORY DEVICES - (0.45%)
17,850 Silicon Storage Technology, Inc. (1,576,387)
------------
COMPUTERS - MICRO - (1.00%)
17,700 Hewlett Packard Co. (2,210,287)
11,900 International Business Machines Corp. (1,303,799)
------------
(3,514,086)
------------
DATA PROCESSING/ MANAGEMENT - (0.72%)
17,850 Automatic Data Processing, Inc. (956,099)
17,850 Fiserv, Inc. (772,012)
17,750 LHS Group, Inc. (612,375)
11,110 Total System Services, Inc. (176,371)
------------
(2,516,857)
------------
DISTRIBUTION - WHOLESALE - (0.27%)
22,056 Tech Data Corp. (960,826)
------------
The accompanying notes are an integral part of these financial statements.
-15-
<PAGE>
XANTHUS FUND, L.L.C.
SCHEDULE OF SECURITIES SOLD, NOT YET PURCHASED (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
JUNE 30, 2000
SHARES MARKET VALUE
SHORT COMMON STOCK - (CONTINUED)
ELECTRONIC COMPONENTS - MISCELLANEOUS - (0.53%)
14,870 Sawtek, Inc. $ (855,962)
23,600 Solectron Corp. (988,250)
------------
(1,844,212)
------------
ELECTRONIC COMPONENTS - SEMICONDUCTORS - (4.17%)
76,700 Analog Devices, Inc. (5,829,200)
22,500 Atmel Corp. (829,687)
14,870 Lattice Semiconductor Corp. (1,027,889)
17,700 STMicroelectronics N.V. (1,136,128)
29,500 Triquint Semiconductor, Inc. (2,822,796)
47,150 Varian Semiconductor Equipment, Inc. (2,961,633)
------------
(14,607,333)
------------
ENTERPRISE SOFTWARE/SERVICE - (1.12%)
32,260 BEA Systems, Inc. (1,594,870)
23,600 Computer Associates International, Inc. (1,208,037)
23,600 SAP AG - Sponsored ADR (1,107,737)
------------
(3,910,644)
------------
ENTERTAINMENT SOFTWARE - (0.25%)
11,800 Electronic Arts, Inc. (860,668)
------------
FIBER OPTICS - (1.31%)
23,800 360Networks, Inc. (362,950)
14,540 Corning, Inc. (3,923,983)
11,900 Harmonic, Inc. (294,525)
------------
(4,581,458)
------------
INDEX - (8.91%)
334,750 Nasdaq-100 Shares (31,194,683)
------------
INSTRUMENTS - CONTROLS - (0.40%)
23,800 Microchip Technology, Inc. (1,386,731)
------------
The accompanying notes are an integral part of these financial statements.
-16-
<PAGE>
XANTHUS FUND, L.L.C.
SCHEDULE OF SECURITIES SOLD, NOT YET PURCHASED (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
JUNE 30, 2000
SHARES MARKET VALUE
SHORT COMMON STOCK - (CONTINUED)
INTERNET CONTENT - (0.16%)
14,260 MarketWatch.com, Inc. $ (268,273)
14,860 StarMedia Network, Inc. (280,482)
------------
(548,755)
------------
INTERNET SOFTWARE - (1.19%)
44,050 BroadVision, Inc. (2,238,313)
29,750 Covad Communications Group, Inc. (479,719)
14,850 Persistence Software, Inc. (269,156)
14,860 RADWARE Ltd. (393,790)
17,850 Scient Corp. (787,631)
------------
(4,168,609)
------------
MEDICAL INSTRUMENTS - (0.26%)
17,750 Medtronic, Inc. (884,181)
------------
MEDICAL - DRUGS - (0.25%)
17,850 Pfizer, Inc. (856,800)
------------
PHARMACY SERVICES - (0.11%)
5,950 Express Scripts, Inc. (369,644)
------------
RETAIL - CONSUMER ELECTRONICS - (0.56%)
17,750 Best Buy Co., Inc. (1,122,687)
17,700 RadioShack Corp. (838,537)
------------
(1,961,224)
------------
RETAIL - OFFICE SUPPLIES - (0.10%)
23,800 Staples, Inc. (365,925)
------------
SCHOOLS - (0.06%)
12,730 ITT Educational Services, Inc. (223,577)
------------
The accompanying notes are an integral part of these financial statements.
-17-
<PAGE>
XANTHUS FUND, L.L.C.
SCHEDULE OF SECURITIES SOLD, NOT YET PURCHASED (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
JUNE 30, 2000
SHARES MARKET VALUE
SHORT COMMON STOCK - (CONTINUED)
TELECOMMUNICATIONS EQUIPMENT - (6.30%)
41,300 ADC Telecommunications, Inc. $ (3,464,038)
11,900 ADTRAN, Inc. (712,513)
15,458 Lucent Technologies, Inc. (915,887)
121,850 Nokia Corp. - Sponsored ADR (6,084,945)
53,100 Nortel Networks Corp. (3,624,075)
332,000 Telefonaktiebolaget LM Ericsson AB -
Sponsored ADR (6,640,000)
8,850 Tellabs, Inc. (605,676)
------------
(22,047,134)
------------
TELECOMMUNICATIONS SERVICES - (0.30%)
11,900 Level 3 Communications, Inc. (1,047,200)
------------
WIRELESS EQUIPMENT - (0.39%)
17,850 Powerwave Technologies, Inc. (785,400)
5,950 Proxim, Inc. (588,866)
------------
(1,374,266)
------------
TOTAL SHORT COMMON STOCK (PROCEEDS $101,939,221) $(107,671,387)
=============
The accompanying notes are an integral part of these financial statements.
-18-
