SAWGRASS FUND, L.L.C.
FINANCIAL STATEMENTS
PERIOD FROM MARCH 15, 2000
(COMMENCEMENT OF OPERATIONS)
TO JUNE 30, 2000
(UNAUDITED)
<PAGE>
SAWGRASS FUND, L.L.C.
FINANCIAL STATEMENTS
PERIOD FROM MARCH 15, 2000
(COMMENCEMENT OF OPERATIONS)
TO 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.......................................... 11
Schedule of Securities Sold, Not Yet Purchased............................. 15
Schedule of Written Options................................................ 17
<PAGE>
SAWGRASS FUND, L.L.C.
STATEMENT OF ASSETS, LIABILITIES AND MEMBERS' CAPITAL (IN THOUSANDS)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
JUNE 30, 2000
(UNAUDITED)
<S> <C>
Assets
Investments in securities, at market (identified cost - $98,502) $110,714
Due from broker 1,243
Dividends receivable 1
Interest receivable 100
--------
TOTAL ASSETS 112,058
--------
LIABILITIES
Securities sold, not yet purchased, at market (proceeds of sales - $5,545) 6,228
Outstanding options written, at value (premiums received - $719) 496
Syndication fees payable 46
Management fee payable 83
Accrued expenses 277
--------
TOTAL LIABILITIES 7,130
--------
NET ASSETS $104,928
========
MEMBERS' CAPITAL - NET ASSETS
Represented by:
Capital contributions (net of syndication costs) $107,725
Accumulated net investment gain 96
Accumulated net realized loss on investments (14,645)
Accumulated net unrealized appreciation on investments 11,752
--------
MEMBERS' CAPITAL - NET ASSETS $104,928
========
</TABLE>
The accompanying notes are an integral part of these financial statements.
-1-
<PAGE>
SAWGRASS FUND, L.L.C.
STATEMENT OF OPERATIONS (IN THOUSANDS)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIOD FROM MAY 15, 2000
(COMMENCEMENT OF OPERATIONS)
TO JUNE 30, 2000
(UNAUDITED)
<S> <C>
INVESTMENT INCOME
Interest $ 734
Dividends 10
--------
744
--------
EXPENSES
OPERATING EXPENSES:
Management Fee 274
Organizational expense 169
Professional fees 77
Administration fee 48
Insurance expense 35
Custodian fees 15
Board of Managers' fees 9
Prime broker fee 8
Miscellaneous 8
--------
TOTAL OPERATING EXPENSES 643
Dividends on securities sold, not yet purchased 1
Interest expense 4
--------
TOTAL EXPENSES 648
--------
NET INVESTMENT GAIN 96
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
REALIZED GAIN (LOSS) ON INVESTMENTS:
Investment securities (16,601)
Purchased options 17
Written options 383
Securities sold, not yet purchased 1,556
--------
NET REALIZED LOSS ON INVESTMENTS (14,645)
--------
NET CHANGE IN UNREALIZED APPRECIATION ON INVESTMENTS 11,752
--------
NET REALIZED AND UNREALIZED LOSS (2,893)
--------
DECREASE IN MEMBERS' CAPITAL DERIVED FROM INVESTMENT ACTIVITIES $ (2,797)
========
</TABLE>
The accompanying notes are an integral part of these financial statements.
-2-
<PAGE>
SAWGRASS FUND, L.L.C.
STATEMENT OF CHANGES IN MEMBERS' CAPITAL - NET ASSETS (IN THOUSANDS)
--------------------------------------------------------------------------------
PERIOD FROM MAY 15, 2000
(COMMENCEMENT OF OPERATIONS)
TO JUNE 30, 2000
(UNAUDITED)
FROM INVESTMENT ACTIVITIES
Net investment gain $ 96
Net realized loss on investments (14,645)
Net change in unrealized depreciation on investments 11,752
--------
DECREASE IN MEMBERS' CAPITAL
DERIVED FROM INVESTMENT ACTIVITIES (2,797)
MEMBERS' CAPITAL TRANSACTIONS
Capital contributions 107,810
Syndication costs (85)
--------
INCREASE IN MEMBERS' CAPITAL DERIVED
FROM CAPITAL TRANSACTIONS 107,725
MEMBERS' CAPITAL AT BEGINNING OF PERIOD 0
--------
MEMBERS' CAPITAL AT END OF PERIOD $104,928
========
The accompanying notes are an integral part of these financial statements.
-3-
<PAGE>
SAWGRASS FUND, L.L.C.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
1. ORGANIZATION
Sawgrass Fund, L.L.C. (the "Company") was organized as a limited
liability company under the laws of Delaware in January 2000. The
Company is registered under the Investment Company act of 1940 (the
"Act") as a closed-end, non-diversified management investment company.
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. 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").
The Company's investment objective is to seek superior long-term
capital appreciation. It pursues this objective by investing in a
portfolio consisting primarily of equity securities of small to medium
size emerging growth companies. The Company's portfolio of securities
in the emerging growth areas is expected to include long and short
positions 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.
There are four members of the "Board of Managers" and an "Adviser."
CIBC Oppenheimer Advisers, L.L.C. serves as the investment adviser of
the Company and is responsible for managing 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, and CWH
Associate Inc. ("CWH") is a non-managing member of the Adviser.
Investment professionals employed by CWH will manage the Company's
investment portfolio on behalf of the Adviser under the supervision of
CIBC WM.
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 it will recommend to the Board of
Managers that the Company offer to repurchase interests from Members at
the end of 2000. Thereafter, 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>
SAWGRASS FUND, L.L.C.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 2000 (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 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 sold 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>
SAWGRASS 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.
During the period ended June 30, 2000, CIBC WM earned no brokerage
commissions from portfolio transactions executed on behalf of the
Company.
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 Managers ("Manager") 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, one
Manager, Howard M. Singer, is an "interested person" as defined by the
act. 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
$22,527.
PFPC Trust Company serves as Custodian of the Company's assets.
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.
-6-
<PAGE>
SAWGRASS FUND, L.L.C.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 2000 (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
4. SECURITIES TRANSACTIONS
Aggregate purchases and sales of investment securities, excluding
short-term securities, for the period from March 15, 2000 (commencement
of operations) to June 30, 2000, amounted to $148,978,305 and
$32,977,603, 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 $11,751,530, consisting of $17,092,191 gross unrealized
appreciation and $5,340,661 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,
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 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 outstanding margin
borrowings of $385,979. For the period from March 15, 2000 to June 30,
2000, the average daily amount of such borrowings was $10,006.
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.
-7-
<PAGE>
SAWGRASS 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)
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.
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
Fund 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:
CALL OPTIONS
-----------------------
NUMBER
OF CONTRACTS COST
------------ ----
Beginning balance 0 $ 0
Options purchased 1,336 340,287
Options closed (1,336) (340,287)
------ ---------
Options outstanding at
June 30, 2000 0 $ 0
====== =========
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 0 $ 0 0 $ 0
Options written 2,530 1,048,745 530 92,002
Options closed (150) (38,774) 0 0
Options expired (287) (291,292) (530) (92,002)
Options outstanding at ----- ---------- ---- --------
June 30, 2000 2,093 $ 718,679 0 $ 0
===== ========== ==== ========
</TABLE>
-8-
<PAGE>
SAWGRASS FUND, L.L.C.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 2000 (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
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
FOR THE PERIOD ENDED
JUNE 30, 2000
-------------
Equity securities $(4,390,029)
Equity short sales 873,426
Equity options 17,209
Written options 605,742
-----------
Total $(2,893,652)
===========
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:
Equity options $ 0 $184, 473
LIABILITIES:
Written options $(496,230) $(323,250)
Average market values presented above are based upon month-end market
values during the period ended June 30, 2000.
-9-
<PAGE>
SAWGRASS FUND, L.L.C.
NOTES TO FINANCIAL STATEMENTS - JUNE 30, 2000 (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:
MARCH 15, 2000
(COMMENCEMENT OF
OPERATIONS) TO
JUNE 30, 2000
-------------
Ratio of net investment gian to average net assets 0.36% *
Ratio of operating expenses to average net assets 2.37% *
Ratio of interest expense to average net assets 0.01% *
Ratio of dividends on securities sold, not yet N/A
purchased to average net assets
Portfolio turnover rate 54.15%
Total return (4.81)%**
* 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.
-10-
<PAGE>
SAWGRASS FUND, L.L.C.
SCHEDULE OF PORTFOLIO INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
JUNE 30, 2000
SHARES MARKET VALUE
COMMON STOCKS - 105.51%
APPLICATIONS SOFTWARE - 7.75%
48,300 Caminus Corp. * $ 1,183,350
96,900 New Era of Networks, Inc. * 4,118,250
28,200 Peregrine Systems, Inc. * 978,201
19,900 Rational Software Corp. * 1,849,466
------------
8,129,267
------------
CIRCUITS - 3.56%
54,100 Integrated Device Technology, Inc. * 3,239,237
7,800 Linear Technology Corp. 498,716
------------
3,737,953
------------
COMMERCIAL SERVICES - 1.04%
9,700 Plexus Corp. * 1,096,100
------------
COMPUTER GRAPHICS - 1.82 %
30,000 NVIDIA Corp. * 1,906,890
------------
DRUG DELIVERY SYSTEMS - 0.44%
48,500 NexMed, Inc. * 460,750
------------
EDUCATIONAL SOFTWARE - 1.82%
39,700 SmartForce PLC, Sponsored ADR * (a) 1,905,600
------------
ELECTRONIC COMPONENTS - MISC. - 1.20%
22,500 DSP Group, Inc. * 1,260,000
------------
ELECTRONIC COMPONENTS - SEMICONDUCTORS - 2.75%
3,200 Analog Devices, Inc. * 243,200
34,200 TranSwitch Corp. * (a) 2,639,830
------------
2,883,030
------------
ENTERPRISE SOFTWARE/SERVICES - 2.83%
43,200 Mercator Software, Inc. * 2,970,000
------------
The accompanying notes are an integral part of these financial statements.
-11-
<PAGE>
SAWGRASS FUND, L.L.C.
SCHEDULE OF PORTFOLIO INVESTMENTS (UNAUDITED)(CONTINUED)
--------------------------------------------------------------------------------
JUNE 30, 2000
SHARES MARKET VALUE
COMMON STOCKS - (CONTINUED)
FIBER OPTICS - 1.55%
62,100 Finisar Corp. * $ 1,626,275
------------
HEALTH CARE COST CONTAINMENT - 5.33%
820,600 Caremark Rx, Inc. * (a) 5,590,748
------------
INTERNET CONTENT - 1.20%
16,700 DigitalThink, Inc. * 599,113
46,600 SkillSoft Corp. * 658,225
------------
1,257,338
------------
INTERNET SOFTWARE - 2.47%
10,000 Covad Communications Group, Inc. * 161,250
179,300 e-SIM, Ltd. * 1,748,175
18,000 Rhythms NetConnections, Inc. * 226,134
21,500 Saba Software, Inc. * 451,500
------------
2,587,059
------------
LIFE/HEALTH INSURANCE - 0.13%
13,500 Conseco, Inc. 131,625
------------
MEDICAL LASER SYSTEMS - 13.38%
12,400 Laser Vision Centers, Inc. * 76,730
739,900 Summit Technology, Inc. * 13,965,613
------------
14,042,343
------------
MEDICAL PRODUCTS - 3.22%
28,700 MiniMed, Inc. * 3,386,600
------------
MEDICAL - DRUGS - 1.66%
23,500 Priority Healthcare Corp., Class B * 1,746,356
------------
MEDICAL - HMO - 3.14%
11,100 Lifemark Corp. * 66,600
62,600 Trigon Healthcare, Inc. * (a) 3,227,844
------------
3,294,444
------------
The accompanying notes are an integral part of these financial statements.
-12-
<PAGE>
SAWGRASS FUND, L.L.C.
SCHEDULE OF PORTFOLIO INVESTMENTS (UNAUDITED)(CONTINUED)
--------------------------------------------------------------------------------
JUNE 30, 2000
SHARES MARKET VALUE
COMMON STOCKS - (CONTINUED)
MEDICAL - HOSPITALS - 0.23%
18,300 Health Management Associates, Inc., Class A * $ 239,053
------------
NETWORK SOFTWARE - 1.88%
67,700 Packeteer, Inc. * 1,971,762
------------
OIL FIELD MACHINERY & EQUIPMENT - 2.13%
89,400 Grant Prideco, Inc. * 2,235,000
------------
OIL & GAS DRILLING - 13.65%
145,800 Global Marine, Inc. * (a) 4,109,810
752,700 Grey Wolf, Inc. * (a) 3,763,500
84,600 Precision Drilling Corp.* 3,267,675
135,200 R&B Falcon Corp. * (a) 3,185,718
------------
14,326,703
------------
OIL - FIELD SERVICES - 4.92%
47,200 BJ Services Co. * (a) 2,950,000
61,400 Tidewater, Inc. (a) 2,210,400
------------
5,160,400
------------
PHARMACY SERVICES - 1.03%
52,900 Advance Paradigm, Inc. * 1,084,450
------------
PHYSICAL THERAPY/REHABILITATION CENTERS - 3.46%
133,200 RehabCare Group, Inc. * 3,629,700
------------
SCHOOLS - 11.71%
53,000 Apollo Group, Inc., Class A * 1,484,000
137,400 DeVry, Inc. * (a) 3,632,581
213,200 Edison Schools, Inc. * (a) 4,943,682
36,400 Learning Tree International, Inc. * 2,229,500
------------
12,289,763
------------
SOFTWARE TOOLS - 2.92%
31,700 Mercury Interactive Corp. * 3,066,975
------------
The accompanying notes are an integral part of these financial statements.
-13-
<PAGE>
SAWGRASS FUND, L.L.C.
SCHEDULE OF PORTFOLIO INVESTMENTS (UNAUDITED)(CONTINUED)
--------------------------------------------------------------------------------
JUNE 30, 2000
SHARES MARKET VALUE
COMMON STOCKS - (CONTINUED)
STOCK INDEX - 4.71%
53,000 Nasdaq - 100 Shares * $ 4,938,964
------------
TELECOMMUNICATIONS EQUIPMENT - 3.58%
20,800 Comverse Technology, Inc. * (a) 1,934,400
28,400 Terayon Communication Systems, Inc. * 1,824,246
------------
3,758,646
------------
TOTAL COMMON STOCKS (COST $98,502,128) 110,713,794
------------
TOTAL INVESTMENTS (COST $98,502,128) - 105.51% 110,713,794
------------
OTHER ASSETS, LESS LIABILITIES - (5.51)% (5,785,632)
------------
NET ASSETS - 100.00% $104,928,162
============
(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>
SAWGRASS FUND, L.L.C.
SCHEDULE OF SECURITIES SOLD, NOT YET PURCHASED (UNAUDITED)
--------------------------------------------------------------------------------
JUNE 30, 2000
MARKET VALUE
SHARES
SECURITIES SOLD, NOT YET PURCHASED - (5.93%)
APPLICATIONS SOFTWARE - (1.72%)
19,400 Rational Software Corp. $(1,802,997)
------------
COMMERCIAL SERVICES - (0.34%)
10,600 MemberWorks, Inc. (356,425)
------------
COMPUTER SERVICES - (0.55%)
5,400 Sapient Corp. (577,465)
------------
E-COMMERCE - (0.32%)
9,300 Amazon.com, Inc. (337,711)
------------
ENTERPRISE SOFTWARE/SERVICES - (0.27%)
6,000 SAP AG, Sponsored ADR (281,628)
------------
INTERNET SOFTWARE - (1.07%)
5,700 Ariba, Inc. (558,868)
12,800 Scient Corp. (564,800)
------------
(1,123,668)
------------
MACHINERY - PRINT TRADE - (0.42%)
26,800 Presstek, Inc. (437,188)
------------
MEDICAL LASER SYSTEMS - (0.25%)
9,500 VISX, Inc. (266,599)
------------
NETWORK SOFTWARE - (0.24%)
8,800 Packeteer, Inc. (256,300)
------------
RETAIL APPAREL/SHOES - (0.20%)
10,700 Claire's Stores, Inc. (205,975)
------------
The accompanying notes are an integral part of these financial statements.
-15-
<PAGE>
SAWGRASS FUND, L.L.C.
SCHEDULE OF SECURITIES SOLD, NOT YET PURCHASED (UNAUDITED)
--------------------------------------------------------------------------------
JUNE 30, 2000
MARKET VALUE
SHARES
SECURITIES SOLD, NOT YET PURCHASED - (CONTINUED)
TELECOMMUNICATIONS EQUIPMENT - (0.55%)
8,500 Tellabs, Inc. (581,723)
------------
TOTAL SECURITIES SOLD, NOT YET PURCHASED
(PROCEEDS $5,545,094) $(6,227,679)
============
The accompanying notes are an integral part of these financial statements.
-16-
<PAGE>
SAWGRASS FUND, L.L.C.
SCHEDULE OF WRITTEN OPTIONS
--------------------------------------------------------------------------------
JUNE 30, 2000
NUMBER OF MARKET VALUE
CONTRACTS
WRITTEN CALL OPTIONS - (0.47%)
OIL & GAS DRILLING - (0.35%)
360 Global Marine, Inc., 07/22/00, $25.00 $(135,000)
365 Global Marine, Inc., 07/22/00, $27.50 (84,424)
35 Precision Drilling Corp., 07/22/00, $35.00 (15,313)
35 Precision Drilling Corp., 07/22/00, $40.00 (4,375)
588 R&B Falcon Corp., 07/22/00, $22.50 (124,950)
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(364,062)
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OIL - FIELD SERVICES - (0.11%)
145 BJ Services Co., 07/22/00, $65.00 (38,062)
245 BJ Services Co., 07/22/00, $70.00 (29,106)
220 Tidewater, Inc., 07/22/00, $35.00 (55,000)
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(122,168)
----------
SCHOOLS - (0.01%)
100 Apollo Group, Inc., 07/22/00, $30.00 (10,000)
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TOTAL OPTIONS WRITTEN (PREMIUM $718,679) $(496,230)
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The accompanying notes are an integral part of these financial statements.
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