PW EUCALYPTUS FUND, L.L.C.
FINANCIAL STATEMENTS
(UNAUDITED)
SEMI ANNUAL REPORT
FOR THE PERIOD FROM JANUARY 1, 2000
THROUGH JUNE 30, 2000
<PAGE>
PW EUCALYPTUS FUND, L.L.C.
FINANCIAL STATEMENTS
(UNAUDITED)
SEMI ANNUAL REPORT
FOR THE PERIOD FROM JANUARY 1, 2000
THROUGH JUNE 30, 2000
CONTENTS
Statement of Assets, Liabilities and Members' Capital...................1
Statement of Operations.................................................2
Statements of Changes in Members' Capital - Net Assets..................3
Notes to Financial Statements...........................................4
Schedule of Portfolio Investments......................................11
<PAGE>
PW EUCALYPTUS FUND, L.L.C.
STATEMENT OF ASSETS, LIABILITIES AND MEMBERS' CAPITAL
(UNAUDITED)
--------------------------------------------------------------------------------
JUNE 30, 2000
--------------------------------------------------------------------------------
ASSETS
Investments in securities, at value (Cost $263,405,774) $345,102,984
Receivables:
Due from broker 17,004,628
Dividends 197,523
Reclaims 96,763
Interest 389
--------------------------------------------------------------------------------
TOTAL ASSETS 362,402,287
--------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 15,285
Securities sold, not yet purchased, at value
(Proceeds of sales $16,948,243) 18,403,896
Payables:
Investments purchased, not settled 1,916,145
Margin Loan 24,660,591
Management fee 261,623
Professional fees 28,404
Miscellaneous 196,141
--------------------------------------------------------------------------------
TOTAL LIABILITIES 45,482,085
--------------------------------------------------------------------------------
NET ASSETS $316,920,202
--------------------------------------------------------------------------------
MEMBERS' CAPITAL - NET ASSETS
Represented by:
Capital contributions $219,520,508
Accumulated net investment loss (831,863)
Accumulated net realized gain from investments 17,985,996
Accumulated net unrealized appreciation from investments 80,245,561
--------------------------------------------------------------------------------
TOTAL MEMBERS' CAPITAL - NET ASSETS $316,920,202
--------------------------------------------------------------------------------
1
The accompanying notes are an integral part of these financial statements.
<PAGE>
PW EUCALYPTUS FUND, L.L.C.
STATEMENT OF OPERATIONS
(UNAUDITED)
--------------------------------------------------------------------------------
FOR THE PERIOD FROM JANUARY 1, 2000 THROUGH JUNE 30, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME
Dividends $ 704,556
Interest 396,841
--------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 1,101,397
--------------------------------------------------------------------------------
EXPENSES
Management fee 1,253,802
Administration expense 154,091
Professional fees 18,894
Miscellaneous 47,523
--------------------------------------------------------------------------------
Total Operating Expenses 1,474,310
Interest expense 241,498
--------------------------------------------------------------------------------
TOTAL EXPENSES 1,715,808
--------------------------------------------------------------------------------
NET INVESTMENT LOSS (614,411)
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS
Net realized gain from investments 18,214,564
Change in net unrealized appreciation from investments 75,944,859
--------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN FROM INVESTMENTS 94,159,423
--------------------------------------------------------------------------------
INCREASE IN MEMBERS' CAPITAL DERIVED FROM OPERATIONS $93,545,012
--------------------------------------------------------------------------------
2
The accompanying notes are an integral part of these financial statements.
<PAGE>
PW EUCALYPTUS FUND, L.L.C.
STATEMENTS OF CHANGES IN MEMBERS' CAPITAL - NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE FOR THE PERIOD FROM
PERIOD FROM NOVEMBER 22, 1999
JANUARY 1, 2000 (COMMENCEMENT OF
TO JUNE 30, 2000 OPERATIONS) TO
(UNAUDITED) DECEMBER 31, 1999
-------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES
Net investment loss $ (614,411) $ (217,452)
Net realized gain/(loss) from investments 18,214,564 (228,568)
Change in net unrealized appreciation from investments 75,944,859 4,300,702
-----------------------------------------------------------------------------------------------------------
NET INCREASE IN MEMBERS' CAPITAL
DERIVED FROM OPERATIONS 93,545,012 3,854,682
-----------------------------------------------------------------------------------------------------------
MEMBERS' CAPITAL TRANSACTIONS
Proceeds from Member subscriptions 183,355,723 35,114,785
Proceeds from Manager subscriptions -- 1,050,000
-----------------------------------------------------------------------------------------------------------
INCREASE IN MEMBERS' CAPITAL DERIVED
FROM CAPITAL TRANSACTIONS 183,355,723 36,164,785
-----------------------------------------------------------------------------------------------------------
MEMBERS' CAPITAL AT BEGINNING OF PERIOD 40,019,467 --
-----------------------------------------------------------------------------------------------------------
MEMBERS' CAPITAL AT END OF PERIOD $316,920,202 $40,019,467
-----------------------------------------------------------------------------------------------------------
</TABLE>
3
The accompanying notes are an integral part of these financial statements.
<PAGE>
PW EUCALYPTUS FUND, L.L.C.
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
JUNE 30, 2000
--------------------------------------------------------------------------------
1. ORGANIZATION
PW Eucalyptus Fund, L.L.C. (the "Fund") was organized as a limited
liability company under the laws of Delaware on August 26, 1999. The
Fund is registered under the Investment Company Act of 1940 (the "1940
Act") as a closed-end, non-diversified management investment company.
The Fund's investment objective is to seek long term capital
appreciation. The Fund pursues its investment objective by investing
primarily in equity and equity related securities of health sciences
companies worldwide, with an emphasis on companies in the biotechnology
and pharmaceuticals sectors. The Fund also may invest in securities of
both established and emerging companies, the securities of which may be
denominated in foreign currencies. Operations of the Fund commenced on
November 22, 1999.
The Manager of the Fund is PW Eucalyptus Management, L.L.C. (the
"Manager"), a Delaware limited liability company. The Manager's capital
account balance at June 30, 2000 was $2,009,432. The Manager is a joint
venture between PW Fund Advisor, L.L.C. ("PWFA") and OrbiMed Advisors
Inc. ("OrbiMed"). PWFA is the managing Member of the Manager and is an
indirect, wholly owned subsidiary of Paine Webber Group Inc. and is
registered as an investment advisor under the Investment Advisers Act
of 1940, as amended. Investment professionals employed by OrbiMed will
manage the Fund's investment portfolio on behalf of the Manager under
the oversight of PWFA's personnel. OrbiMed is also registered as an
investment advisor under the Investment Advisors Act of 1940, as
amended.
The Fund's Board of Directors, (the "Directors") has overall
responsibility to manage and control the business affairs of the Fund,
including the exclusive authority to oversee and to establish policies
regarding the management, conduct and operation of the Fund's business.
The Directors have engaged the Manager to provide investment advice to,
and day-to-day management of, the Fund.
Initial and additional subscriptions for interests by eligible members
may be accepted at such times as the Fund may determine and are
generally accepted monthly. The Fund reserves the right to reject any
subscription for interests. The Fund from time to time may offer to
repurchase interests pursuant to written tenders to Members. These
repurchases will be made at such times and on such terms as may be
determined by the Directors, in their complete and exclusive
discretion. The Manager expects that generally, beginning in December
2000, it will recommend to the Directors that the Fund offer to
repurchase interests from Members twice each year, in June and
December. Member's interests in the Fund can only be transferred or
assigned with the approval of the Manager.
2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States requires the Manager
to make estimates and assumptions that affect the amounts reported in
the financial statements and accompanying notes. The
4
<PAGE>
PW EUCALYPTUS FUND, L.L.C.
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
JUNE 30, 2000
--------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES
Manager believes that the estimates utilized in preparing the Fund's
financial statements are reasonable and prudent; however, actual
results could differ from these estimates.
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. Realized gains and losses from security and foreign currency
transactions are calculated on the identified cost basis.
Cash and cash equivalents consist of monies invested in money market
funds and are accounted for at cost plus accrued interest as reported
by the money market funds.
a. PORTFOLIO VALUATION
Net asset value of the Fund will be determined as of the close of
business at the end of any fiscal period in accordance with the
valuation principles set forth below or as may be determined from time
to time pursuant to policies established by the Directors.
Domestic exchange traded securities and securities included in the
NASDAQ National Market System will be valued at their last composite
sales 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 sold short, as reported by such exchanges. Securities traded
on a foreign securities exchange will be valued at their last sales
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 sold 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 sold 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
Directors.
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 valuations for normal institutional size trading units.
The Directors will periodically monitor the reasonableness of
valuations provided by any such pricing service. Debt securities with
remaining maturities of 60 days or less, absent unusual circumstances,
will be valued at amortized cost, so long as such valuation is
determined by the Directors to represent fair value.
5
<PAGE>
PW EUCALYPTUS FUND, L.L.C.
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
JUNE 30, 2000
--------------------------------------------------------------------------------
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 which determination of
such values or exchange rates are made and the time that the net asset
value of the Fund is determined. When such events materially affect the
values of securities held by the Fund 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 Directors.
Foreign-denominated assets may involve more risks than domestic
transactions, including currency risk, political and economic risk,
regulatory risk, and market risk. Risks may arise from the potential
inability of a counterparty to meet the terms of a contract and from
unanticipated movements in the value of foreign currencies relative to
the U.S. dollar.
The Fund does not isolate the portion of operations resulting from
changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of foreign securities held. Such
fluctuations are included in net realized and unrealized gain or loss
from investments. Net realized exchange gain or loss from foreign
currency transactions represent net foreign exchange gain or loss from
forward foreign currency contracts, disposition of foreign currencies,
currency gain or loss realized between the trade and settlement dates
on security transactions, and the difference between the amount of net
investment income recorded on the Fund's accounting records and the U.
S. dollar equivalent amounts actually received or paid. Net unrealized
foreign exchange gain or loss arises from changes in value of assets
and liabilities, other than investments in securities, as a result of
changes in exchange rates.
b. FUND EXPENSES
The Fund will bear all expenses incurred in the business of the Fund,
including, but not limited to, the following: all costs and expenses
related to portfolio transactions and positions for the Fund's account;
legal fees; accounting and auditing fees; costs of insurance;
registration expenses; certain offering costs and organization costs;
and expenses of meetings of Directors and Members.
6
<PAGE>
PW EUCALYPTUS FUND, L.L.C.
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
JUNE 30, 2000
--------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
c. INCOME TAXES
No provision for the payment of Federal, state or local income taxes
has been provided. Each Member is individually required to report on
its own tax returns its distributive share of the Fund's taxable income
or loss.
3. MANAGEMENT FEE, INCENTIVE ALLOCATION, RELATED PARTY TRANSACTIONS AND
OTHER
PWFA provides certain management and administrative services to the
Fund, including, among other things, providing office space and other
support services to the Fund. In consideration for such services, the
Fund will pay PWFA a monthly management fee at an annual rate of 1.25%
of the Fund's net assets, excluding assets attributable to the
Manager's capital account (the "Fee"). The Fee is debited against the
Members' capital accounts, excluding the Manager. A portion of the fee
will be paid by PWFA to an affiliate of OrbiMed.
PaineWebber Incorporated ("PWI", a wholly owned subsidiary of Paine
Webber Group Inc.) acts as a placement agent for the Fund, without
special compensation from the Fund, and will bear its own costs
associated with its activities as placement agent. Placement fees, if
any, charged on contributions are debited against the contribution
amounts to arrive at a net subscription amount.
The Fund may execute portfolio transactions through PWI. During the
period ended June 30, 2000, PWI did not earn brokerage commissions from
portfolio transactions executed on behalf of the Fund.
The increase (or decrease) in Members' capital derived from operations
(net profit) is initially allocated to the capital accounts of all
Members on a pro-rata basis. At the end of the twelve month period
following the admission of a Member to the Fund, and generally at the
end of each fiscal year thereafter, the Manager is entitled to an
incentive allocation (the "Incentive Allocation") of 20% of the net
profits, if any, that would have been credited to the Member's capital
account for such period. The Incentive Allocation will be made only
with respect to net profits that exceed any net losses previously
charged to the account of such Member who have not been offset by any
net profits subsequently credited to the account of the Member. There
was no Incentive Allocation recorded in the financial statements for
the period ended June 30, 2000.
Each Director, who is not an "interested person" of the Fund, as
defined by the 1940 Act, receives an annual retainer of $5,000 plus a
fee for each meeting attended. Any Director who is an "interested
person" does not receive any annual or other fee from the Fund. All
7
<PAGE>
PW EUCALYPTUS FUND, L.L.C.
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
JUNE 30, 2000
--------------------------------------------------------------------------------
3. MANAGEMENT FEE, INCENTIVE ALLOCATION, RELATED PARTY TRANSACTIONS AND
OTHER (CONTINUED)
Directors are reimbursed by the Fund for all reasonable out-of-pocket
expenses incurred by them in performing their duties.
PFPC Trust Company (an affiliate of PNC Bank, NA) serves as custodian
of the Fund's assets and provides custodial services for the Fund. PFPC
Trust Company entered into a service agreement whereby PNC Bank, NA
provides securities clearance functions.
PFPC Inc. (also an affiliate of PNC Bank, NA) serves as Administrator
and Accounting Agent to the Fund, and in that capacity provides certain
accounting, record keeping, tax and member related services. PFPC Inc.
receives a monthly fee primarily based upon aggregate net assets of the
Fund.
4. SECURITIES TRANSACTIONS
Aggregate purchases and sales of investment securities, for the period
ended June 30, 2000, amounted to $280,592,088 and $82,286,957,
respectively.
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 $80,241,557, consisting of $86,411,690 gross unrealized
appreciation and $6,170,133 gross unrealized depreciation.
5. SHORT-TERM BORROWINGS
The Fund has the ability to trade on margin and, in that connection,
borrows 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 1940 Act requires the
Fund to satisfy an asset coverage requirement of 300% of its
indebtedness, including amounts borrowed, measured at the time the Fund
incurs the indebtedness. The Fund pledges securities as collateral for
the margin borrowings, which are maintained in a segregated account
held by the Custodian. For the period ended June 30, 2000, the Fund's
average interest rate paid on borrowings was 7.18% and the average
borrowings outstanding were $6,560,551. The Fund had borrowings
outstanding at June 30, 2000 totaling $24,660,591.
6. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK OR CONCENTRATIONS OF
CREDIT RISK
In the normal course of business, the Fund may trade various financial
instruments and enter into various investment activities with
off-balance sheet risk. These financial instruments include forward and
futures contracts, options and sales of securities sold, not yet
purchased.
8
<PAGE>
PW EUCALYPTUS FUND, L.L.C.
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
JUNE 30, 2000
--------------------------------------------------------------------------------
6. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK OR CONCENTRATIONS OF
CREDIT RISK (CONTINUED)
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.
Securities sold short, not yet purchased represents obligations of the
Fund 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
Fund'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 cash due from broker is
primarily related to securities sold, not yet purchased; its use is
therefore restricted until the securities are purchased.
During the period ended June 30, 2000, the Fund did not trade any
forward or futures contracts or options.
7. FINANCIAL HIGHLIGHTS
The following represents the ratios to average net assets and other
supplemental information for the period indicated:
<TABLE>
<CAPTION>
PERIOD FROM PERIOD FROM
JANUARY 1, 2000 TO NOVEMBER 22, 1999 TO
JUNE 30, 2000 DECEMBER 31, 1999
------------- -----------------
<S> <C> <C>
Ratio of net investment loss to average net assets -0.64%* -6.11%*
Ratio of operating expenses to average net assets 1.78%* 8.74%*
Ratio of operating expenses to average net assets
excluding interest expense 1.53%* 8.73%*
Portfolio turnover rate 39.90% 10.94%
Total return 57.76%** 8.62%**
Average debt ratio 3.40% .28%
<FN>
* Annualized.
** Total return assumes a purchase of a Member interest in the
Fund at the beginning of the period and a sale of the Fund
interest on the last day of the period noted, after incentive
allocation to the Manager and does not reflect the deduction
of placement fees, if any, incurred when subscribing to the
Fund. Total returns for a period of less than a full year are
not annualized.
</FN>
</TABLE>
9
<PAGE>
PW EUCALYPTUS FUND, L.L.C.
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
JUNE 30, 2000
--------------------------------------------------------------------------------
8. SUBSEQUENT EVENTS
Effective July 1, 2000, the Fund received additional Member capital
contributions of $1,019,375. On August 1, 2000, the Fund received
additional Member capital contributions of $3,885,432.
10
<PAGE>
PW EUCALYPTUS FUND, L.L.C.
SCHEDULE OF PORTFOLIO INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
JUNE 30, 2000
SHARES MARKET VALUE
--------------------------------------------------------------------------------
COMMON STOCK (108.73%)
----------------------
COSMETICS & TOILETRIES(0.09%)
945 Givaudan, Ltd. - (Switzerland) *,** $ 288,539
------------
DRUG DELIVERY SYSTEMS(2.99%)
160,000 ALZA Corp. *, (a) 9,460,000
------------
ELECTRONIC COMPONENTS - SEMICONDUCTORS(2.96%)
203,800 Caliper Technologies Corp. * 9,374,800
------------
MEDICAL - BIOMEDICAL/GENETICS(22.23%)
92,000 Amgen, Inc. * 6,463,000
169,600 ArQule, Inc. * 3,286,000
360,000 Bio-Technology General Corp. *, (a) 4,747,680
80,000 Celera Genomics Group. * 7,360,000
131,000 Cell Genesys, Inc. * 3,668,000
260,000 Chiron Corp. * 12,350,000
135,400 Enzon, Inc. *, (a) 5,754,500
160,000 Genzyme Corp. *, (a) 9,510,080
155,000 LJL Biosystems, Inc. * 3,003,125
37,500 MediGene AG (Germany) *,** 2,368,913
285,000 Orchid Biosciences Inc. * 10,821,165
177,000 Repligen Corp. * 1,111,737
------------
70,444,200
------------
MEDICAL - DRUGS(59.85%)
168,500 Altana AG - (Germany) ** 13,584,020
156,000 American Home Products Corp. (a) 9,165,000
402,000 Banyu Pharmaceutical Co., Ltd. - (Japan) ** 9,859,879
254,000 Chugai Pharmaceutical Co., Ltd. - (Japan) ** 4,813,448
513,000 Dainippon Pharmaceutical Co., Ltd. - (Japan) ** 6,856,065
11
The preceeding notes are an integral part of these financial statements.
<PAGE>
PW EUCALYPTUS FUND, L.L.C.
SCHEDULE OF PORTFOLIO INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
JUNE 30, 2000
SHARES MARKET VALUE
--------------------------------------------------------------------------------
COMMON STOCK (CONTINUED)
------------------------
MEDICAL - DRUGS (CONTINUED)
275,000 Eisai Co., Ltd. - (Japan) ** $ 8,837,304
150,000 Eli Lilly & Co. 14,981,250
90,000 Forest Laboratories, Inc. *, (a) 9,090,000
200,000 Fujisawa Pharmaceutical Co., Ltd. - (Japan) ** 8,109,526
315,000 GelTex Pharmaceuticals, Inc. *, (a) 6,437,970
9,600 Novartis AG (Switzerland) ** 15,255,150
650,000 Orphan Medical, Inc. * 6,297,200
196,600 PathoGenesis Corp. * 5,111,600
302,500 Pfizer, Inc. 14,520,000
230,000 Pharmacia Corp. 11,888,240
162,000 Pharmacopeia, Inc. * 7,512,750
945 Roche Holding AG - Genussschein - (Switzerland) ** 9,228,584
260,000 Sanofi-Synthelabo SA - (France) , ** 12,436,733
8,630 Serono SA (Switzerland) ** 7,217,760
444,000 Shionogi & Co., Ltd. - (Japan) ** 8,456,024
------------
189,658,503
------------
MEDICAL - PRODUCTS(1.86%)
318 Serum & Impfinstitut Bern AG - (Switzerland) ** 5,905,910
------------
MEDICAL - GENERIC DRUGS(2.71%)
160,000 Watson Pharmaceuticals, Inc. * 8,600,000
------------
THERAPEUTICS(16.04%)
32,000 Abgenix, Inc. * 3,835,488
290,000 Cell Therapeutics, Inc. *, (a) 8,881,250
81,000 COR Therapeutics, Inc. * 6,910,353
117,000 Gilead Sciences, Inc. *, (a) 8,321,625
422,859 Insmed Inc. * 1,374,291
190,400 NPS Pharmaceuticals, Inc. * 5,093,200
130,000 PRAECIS Pharmaceuticals, Inc. * 3,623,750
12
The preceeding notes are an integral part of these financial statements.
<PAGE>
PW EUCALYPTUS FUND, L.L.C.
SCHEDULE OF PORTFOLIO INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
JUNE 30, 2000
SHARES MARKET VALUE
--------------------------------------------------------------------------------
COMMON STOCK (CONTINUED)
------------------------
THERAPEUTICS (CONTINUED)
102,000 SangStat Medical Corp. * $ 2,945,250
334,000 Tularik, Inc. * 9,853,000
------------
50,838,207
------------
TOTAL COMMON STOCK (COST $262,983,675) 344,570,159
------------
PREFERRED STOCK (0.13%)
-----------------------
MEDICAL - BIOMEDICAL/GENETICS(0.13%)
148,000 Ciphergen Biosystems, Inc. * 407,000
------------
TOTAL PREFERRED STOCK (COST $407,000) 407,000
------------
WARRANTS (0.04%)
----------------
THERAPEUTICS(0.04%)
148,029 Insmed, Inc., $2.25, May 31, 2005 125,825
------------
TOTAL WARRANTS (COST $15,099) 125,825
------------
SECURITIES SOLD, NOT YET PURCHASED((5.81)%)
-------------------------------------------
MEDICAL - BIOMEDICAL/GENETICS((3.40)%)
23,850 EntreMed, Inc. * (714,021)
55,100 Enzo Biochem, Inc. * (3,801,900)
275,000 Genelabs Technologies, Inc. * (1,117,325)
100,000 Maxim Pharmaceuticals, Inc. * (5,137,500)
------------
(10,770,746)
------------
13
The preceeding notes are an integral part of these financial statements.
<PAGE>
PW EUCALYPTUS FUND, L.L.C.
SCHEDULE OF PORTFOLIO INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
JUNE 30, 2000
SHARES MARKET VALUE
--------------------------------------------------------------------------------
SECURITIES SOLD, NOT YET PURCHASED (CONTINUED)
----------------------------------------------
MEDICAL - DRUGS((0.37)%)
116,500 OXiGENE, Inc. * $ (1,165,000)
------------
THERAPEUTICS((2.04)%)
222,600 Amylin Pharmaceuticals, Inc. * (3,380,849)
193,900 Isis Pharmaceuticals, Inc. * (2,811,550)
25,800 NeoTherapeutics, Inc. * (275,751)
------------
(6,468,150)
------------
TOTAL SECURITIES SOLD, NOT YET PURCHASED
(PROCEEDS $(16,948,243) (18,403,896)
------------
TOTAL INVESTMENTS--103.09% (COST $246,457,531) 326,699,088
------------
LIABILITIES IN EXCESS OF ASSETS--(3.09%) (9,778,886)
------------
TOTAL NET ASSETS--100.0% $316,920,202
============
(a) Partially or wholly held ($71,601,355) in a pledged account by the
Custodian as collateral for securities sold, not yet purchased.
* Non-income producing security
** Foreign Security Market value quoted in U.S. dollars at prevailing exchange
rates.
14
The preceeding notes are an integral part of these financial statements.
