PANTHER PARTNERS, L.P.
Annual Report
December 31, 1996
PANTHER PARTNERS, L.P.
______________________________________________
Annual Report
and
Financial Statements
For the Year Ended
December 31, 1996
______________________________________________
This report has been prepared for the information
of partners of Panther Partners, L.P. and is not
authorized for distribution to prospective investors
unless preceded or accompanied by the current
Private Placement Memorandum of Panther Partners, L.P.
A claim of exemption under Regulation Section 4.12(b)(2)(iii)
has been filed with the Commodity Futures Trading
Commission for Panther Partners, L.P.
_____________________________________________________________________________
MANAGEMENT
______________________________________________________________________________
Individual General Partners
*H. Winston Holt, IV
Managing Director
Panther Management Company, L.P.
*Steven C. Olson
Treasurer
Panther Management Company, L.P.
Dr. George H. Pollock
Professor of Psychiatry and Behavioral Sciences
Northwestern University Medical School
Peter L. Shea
Managing Director
Hydrocarbon Energy, Inc.
John A. Stout
Managing Director
Pointer Management Company
Corporate General Partner
Panther Management Company, L.P.
101 Park Avenue
New York, New York 10178
(212) 984-2500
______________________________________________________________________________
* Affiliated with Panther Management Company, L.P., the Corporate General
Partner of Panther Partners, L.P.
______________________________________________________________________________
THE FUND
______________________________________________________________________________
Panther Partners, L.P. (the "Fund") is a closed-end, non-diversified
management investment company registered with the Securities and Exchange
Commission under the Investment Company Act of 1940, as amended. The Fund
commenced operations on March 1, 1992. Interests in the Fund have been
offered to eligible investors in private placements and are subject to
restrictions on transfer.
The Fund's investment objective is to maximize total return primarily through
trading in securities of both U.S. and foreign issuers. The Fund uses its
capital primarily to (i) purchase equity and debt securities (some of which
may be of a speculative nature or which at the time of their acquisition may
be restricted as to their transferability or disposition thereof), (ii) sell
securities short, (iii) purchase and sell commodity futures contracts and
commodity options contracts for hedging purposes and other purposes that are
incidental to its securities trading activities, and purchase and sell
currency forward contracts and (iv) purchase and sell options contracts,
including put and call options written by the Fund or by others and "synthetic"
options, on securities, stock market indices and foreign currencies. The Fund
may borrow money from brokerage firms and banks to enable it to buy securities.
Ultimate responsibility over the affairs of the Fund is vested in five
individual general partners (the "Individual General Partners") who exercise
the same powers, authority and responsibilities on behalf of the Fund as are
customarily exercised by the directors of a registered investment company
organized as a corporation. Investment advisory services are provided to the
Fund by Panther Management Corporation or Panther Management Company, L.P.
(the "Corporate General Partner"), which is also responsible for the
day-to-day management and administration of the Fund.
Panther Management Corporation receives from the Fund monthly advisory fees at
an annual rate equal to one and one-half percent of the first $10,000,000 of
the Fund's net assets, one percent of the next $10,000,000 of the Fund's net
assets and three quarters of one percent of the Fund's net assets in excess of
$20,000,000.
So long as the Corporate General Partner provides advisory services to the
Fund, at the end of the initial twelve month period during which a limited
partner will have been a partner of the Fund, and generally at the end of each
fiscal year thereafter, a performance allocation of 15 percent of the net
profit which has been credited to the capital account of such limited partner
during such period shall be transferred from such limited partner's capital
account to the capital account of the Corporate General Partner. The
performance allocation is charged to any limited partner only to the extent
that the cumulative net profit with respect to such limited partner through
the close of any period exceeds the highest level of cumulative net profits
with respect to such limited partner through the close of any prior period.
The Fund bears all expenses incurred for or in connection with portfolio
transactions, including brokerage commissions, custodial fees, withholding and
transfer taxes, governmental fees, interest and commitment fees on loans and
debit balances, borrowing charges on securities sold short and research fees
including costs of news services, quotation equipment and related hardware and
software, as well as legal fees, organization and registration expenses,
expenses of meetings of partners of the Fund or any other expenses as may be
approved from time to time by the Individual General Partners.
The Corporate General Partner bears certain direct and indirect costs of the
Fund's operations, including expenses incurred for the Fund for office space,
support services and telecommunications, accounting fees and expenses of
meetings of the Individual General Partners. The Corporate General Partner
may receive certain services including hardware, software, data bases and
other news, technical and telecommunications services and equipment utilized
in the management process from brokers selected by the Corporate General
Partner to execute portfolio transactions for the Fund.
______________________________________________________________________________
1996 INVESTMENT PERFORMANCE
______________________________________________________________________________
The net performance for the Fund for the 1996 calendar year was 33% compared
to the 23% return for the S&P 500 with income for the same period. The
majority of the Fund's performance was derived from global stock markets,
non-equity and currency investments.
______________________________________________________________________________
DISTRIBUTION REINVESTMENT PLAN
______________________________________________________________________________
After the end of each fiscal year, each partner of the Fund is entitled to
receive a distribution equal to the entire amount of net profit, or any
percentage thereof, (including unrealized appreciation) allocated and credited
to such partner's capital account during such fiscal year (reduced ratably to
the extent the Fund deems advisable in order to preserve funds for the
efficient operation of the Fund). Profits not received by any partner will not
be distributable in subsequent years. In the discretion of the Corporate
General Partner, distributions may be paid in part or in whole in cash or
securities of equivalent value. At least 90 percent of any distribution will
be made within 90 days after the end of such fiscal year and the balance of
such distribution will be made within 120 days after the end of such fiscal
year.
Participation in the distribution reinvestment plan will not affect the U.S.
federal income tax consequences to each partner of an investment in the Fund,
which is described in the Private Placement Memorandum of the Fund, but
partners which elect to reinvest distributions should be aware that they will
not receive in cash or securities of equivalent value economic profits for
each year even if they incur U.S. federal income taxes on items of net income
and realized gain in such year. There are no fees, commissions or expenses
chargeable to partners in connection with reinvestment of distributions.
Panther Partners, L.P.
(a limited partnership)
Financial Statements
December 31, 1996
Panther Partners, L.P.
(a limited partnership)
Financial Statements
December 31, 1996
Contents
Report of Independent Accountants..................................... 1
Statement of Assets, Liabilities and Partners' Capital................ 2
Statement of Operations and Special Allocation........................ 3
Statement of Changes in Partners' Capital - Net Assets................ 4
Statement of Cash Flows............................................... 5
Notes to Financial Statements......................................... 6
Schedule of Portfolio Investments.................................... 16
Schedule of Securities Sold, Not Yet Purchased....................... 25
Affirmation of the Commodity Pool Operator........................... 30
Report of Independent Accountants
To the Partners of
Panther Partners, L.P.
In our opinion, the accompanying statement of assets, liabilities and
partners' capital, including the schedules of portfolio investments and
securities sold, not yet purchased, and the related statements of operations
and special allocation, of changes in partners' capital-net assets, of cash
flows and the selected financial ratios present fairly, in all material
respects, the financial position of Panther Partners, L.P. (the "Fund") at
December 31, 1996, the results of its operations, the changes in its partners'
capital-net assets, cash flows, and the selected financial ratios for the year
then ended, in conformity with generally accepted accounting principles.
These financial statements and financial ratios (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audit. We conducted our audit of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on
a test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audit, which included confirmation of
investments at December 31, 1996 by correspondence with the counterparties and
brokers and the application of alternative auditing procedures where such
confirmations were not received, provides a reasonable basis for the opinion
expressed above. The statement of changes in partners' capital-net assets for
the year ended December 31, 1995 and the selected financial ratios for each of
the periods presented from March 1, 1992 (commencement of operations) through
December 31, 1995 were audited by other independent accountants whose report
dated February 16, 1996 expressed an unqualified opinion on the financial
statements.
As more fully described in Note 8, the General Partner may elect to exercise
certain rights regarding continuation of the Partnership.
Price Waterhouse LLP
New York, New York
February 25, 1997
Panther Partners, L.P.
(a limited partnership)
Statement of Assets, Liabilities and Partners' Capital
December 31, 1996
Assets
Cash $ 677,305
Investments in securities - at market value (cost - $456,685,102) 503,222,928
Due from brokers 251,326,758
Organizational costs (net of accumulated amortization of $726,380) 25,047
Other assets 281,211
-----------
Total Assets 755,533,249
-----------
Liabilities
Short-term borrowings 78,917,425
Collateral payable 63,274,547
Securities sold, not yet purchased - at market value
(proceeds of sales - $137,236,590) 135,897,316
Securities sold under agreements to repurchase 19,407,345
Due to brokers 4,144,892
Management fee payable 804,749
Capital contributions effective January 1, 1997 400,000
Other liabilities 764,902
-----------
Total liabilities 303,611,176
-----------
Partners' capital - net assets $451,922,073
============
Partners' capital - Net Assets
Represented by:
Capital contributions, (net of syndication
costs of $150,000 in 1992) $498,742,638
Capital withdrawals (294,871,410)
Accumulated net investment loss (32,213,888)
Accumulated net realized gain on investments 235,596,825
Net unrealized appreciation on investments 44,667,908
------------
$451,922,073
============
The accompanying notes should be read in conjunction with the
financial statements.
Panther Partners, L.P.
(a limited partnership)
Statement of Operations and Special Allocation
Year ended December 31, 1996
Gain from investment transactions
Net realized gain/(loss) on:
Investment transactions $169,116,546
Foreign currency contracts (8,961,431)
------------
160,155,115
------------
Unrealized appreciation on investments:
Beginning of year 66,059,218
End of year 44,667,908
------------
Net decrease in unrealized appreciation (21,391,310)
------------
Gain from investment transactions 138,763,805
------------
Investment loss
Income:
Dividends 4,429,315
Interest 568,031
------------
4,997,346
------------
Expenses:
Interest 8,326,334
Management fee 2,923,601
Taxes withheld on foreign dividends 544,728
Transactions fees 300,000
Dividends on securities sold, not yet purchased 285,138
Legal fees 153,294
Amortization of organizational costs 150,286
Individual General Partners' fees and expenses 80,472
Miscellaneous 232,403
------------
12,996,256
------------
Investment loss - net (7,998,910)
------------
Net increase in net assets resulting from operations 130,764,895
Less allocation of net increase in net assets resulting
from operations:
Special allocation to General Partner (Note 2) 18,644,925
------------
Net increase in net assets resulting from operations available
for pro-rata distributions to all partners (Note 2) $112,119,970
============
The accompanying notes should be read in conjunction with the
financial statements.
Panther Partners, L.P.
(a limited partnership)
Statement of Changes in Partners' Capital - Net Assets
Years ended December 31, 1995 and 1996
<TABLE>
<CAPTION>
General Limited
Total Partner Partners
----- ------- --------
<S> <C> <C> <C> <C>
Total partners' capital -
net assets at
December 31, 1994 $497,413,146 $5,420,266 $491,992,880
Year ended December 31, 1995:
Capital contributions 11,364,937 1,464,937 9,900,000
Capital withdrawals (77,490,410) (77,490,410)
Investment loss - net $(10,994,073)
Net realized gain on investments 31,486,698
Change in net unrealized appreciation on
investments 24,887,173
------------
Net increase in net assets resulting
from operations 45,379,798
Less allocation of net increase in net assets
resulting from operations:
Special allocation to General Partner
(Note 2) 3,805,862 3,805,862 3,805,862
------------
Net increase in net assets resulting from
operations available for pro-rata
distribution to all partners (Note 2) 41,573,936 727,485 40,846,451
-------------- ----------- ------------
Total partners' capital - net assets at
December 31, 1995 476,667,471 11,418,550 465,248,921
Year ended December 31, 1996:
Capital contributions 9,370,461 120,461 9,250,000
Capital withdrawals (164,880,754) (5,505,596) (159,375,158)
Investment loss - net (7,998,910)
Net realized gain on investments 160,155,115
Change in net unrealized appreciation on
investments (21,391,310)
------------
Net increase in net assets resulting
from operations 130,764,895
Less allocation of net increase in net
assets resulting from operations:
Special allocation to General
Partner (Note 2) 18,644,925 18,644,925 18,644,925
------------
Net increase in net assets result-
ing from operations available
for pro-rata distribution to all
partners (Note 2) 112,119,970 3,622,973 108,496,997
-------------- ----------- ------------
Total partners' capital - net assets at
December 31, 1996 $451,922,073 $ 28,301,313 $423,620,760
============ ============= ============
</TABLE>
The accompanying notes should be read in conjunction with the
financial statements.
Panther Partners, L.P.
(a limited partnership)
Statement of Cash Flows
Year ended December 31, 1996
Cash flows from operating activities
Net increase in net assets resulting from operations $130,764,895
Adjustments to reconcile net increase in net assets resulting
from operations to net cash provided by operating activities:
Amortization of organizational costs 150,286
(Increase) decrease in:
Investments in securities 18,499,468
Due from brokers (92,473,619)
Other assets 479,567
Increase (decrease) in:
Collateral payable 1,692,046
Securities sold, not yet purchased 135,023,801
Securities sold under agreements to repurchase 19,407,345
Due to brokers (21,116,027)
Management fee payable (135,923)
Other liabilities (421,666)
------------
Net cash provided by operating activities 191,870,173
Cash flows from financing activities
Net payments of short-term borrowings (36,082,575)
Capital contributions 9,770,461
Capital withdrawals (164,880,754)
------------
Net cash used in financing activities (191,192,868)
Increase in cash 677,305
Cash at beginning of the year 0
------------
Cash at end of the year $ 677,305
============
Supplemental disclosure of cash flow information
Cash paid during the year for:
Interest $ 8,790,091
============
The accompanying notes should be read in conjunction with the
financial statements.
Panther Partners, L.P.
(a limited partnership)
Notes to Financial Statements
December 31, 1996
1. Organization and Summary of Significant Accounting Policies
Panther Partners, L.P. (the "Partnership") was organized under the Delaware
Revised Uniform Limited Partnership Act on October 2, 1990. The Partnership
is registered under the Investment Company Act of 1940 as a closed-end,
non-diversified management investment company and commenced operations on
March 1, 1992. The Partnership will operate until December 31, 2050 unless
further extended or sooner terminated as provided for in the Limited
Partnership Agreement of the Partnership, as amended and restated through
December 14, 1994 (the "Agreement"). The investment objective of the
Partnership is to maximize total return primarily through investing and
trading in equity and debt securities of both U.S. and foreign issuers,
futures contracts and various options on the foregoing.
The Agreement provides for not less than five "Individual General Partners"
and a Corporate General Partner. The Corporate General Partner is Panther
Management Company, L.P. ("PMC, L.P.") which is under common control and
management with Tiger Management L.L.C.
A. Basis of Preparation of Financial Statements:
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the amounts reported in the financial statements and accompanying
notes. Management believes that the estimates utilized in preparing its
financial statements are reasonable and prudent, however actual results could
differ from these estimates.
B. Investment Transactions:
Investment transactions, including related revenue and expenses, are recorded
on a trade-date basis.
Securities and commodities listed on a national securities exchange or the
NASDAQ national list are valued at their last sales price as of the last
business day of the year. Listed securities and commodities with no reported
sales on such date and over-the-counter securities and commodities are valued
at their closing bid price if held long by the Partnership and closing ask
price if sold short by the Partnership. The resulting unrealized gains and
losses are included in net increase in net assets resulting from operations.
The Partnership enters into transactions in futures, options, foreign exchange
options, swaps, swaptions, structured notes and forward currency contracts
which are used for hedging and non-hedging purposes. Contracts which trade on
an exchange are valued at market value. Contracts which do not trade on an
exchange are valued based on pricing models using market quoted inputs.
Panther Partners, L.P.
(a limited partnership)
Notes to Financial Statements (continued)
December 31, 1996
1. Organization and Summary of Significant Accounting Policies (continued)
C. Financing Transactions
Transactions involving securities purchased under agreements to resell
("Repurchase Agreements") are collateralized by non-United States sovereign
debt. These financing transactions are recorded at their contracted amounts
plus accrued interest. It is the Fund's policy to value collateral and obtain
additional collateral where deemed appropriate. The fair value of repurchase
agreements approximate their recorded amounts.
D. Currency Translation
Assets and liabilities denominated in currencies other than United States
dollars are translated at closing rates of exchange at December 31, 1996, with
the resulting net unrealized gains and losses reflected in net increase in net
assets resulting from operations. Purchases and sales of securities and
income and expenses which occur during the year are translated at the rates of
exchange prevailing on the respective dates of the transactions. Realized
foreign exchange gains or losses include the effects of currency movements
between trade and settlement dates on securities transactions. The
Partnership includes changes in foreign exchange rates on investments in the
fluctuations arising from changes in market prices of securities held. Such
fluctuations are included in gains from investment transactions.
E. Income and Expense Recognition:
The expenses incurred by the Partnership in connection with its organization
are being amortized over a 60-month period beginning March 1, 1992.
Income taxes have not been provided for as the partners are individually
liable for reporting their share of the profits or losses on their individual
tax returns.
2. Related Party Transactions
Panther Management Corporation, General Partner of PMC, L.P., provides
administrative services to the Partnership and pays substantially all
operating expenses of the Partnership forwhich it receives a management fee.
The management fee is calculated monthly at an annual rate equal to one and
one-half percent of the first $10,000,000 of the Partnership's net assets, one
percent of the next $10,000,000 of the Partnership's net assets and three
quarters of one percent of the Partnership's net assets in excess of
$20,000,000. For the year ended December 31, 1996
Panther Partners, L.P.
(a limited partnership)
Notes to Financial Statements (continued)
December 31, 1996
2. Related Party Transactions (continued)
the management fee totaled $2,923,601, of which $2,118,852 has been paid and
$804,749 is payable.
The Corporate General Partner of the Partnership is entitled under the terms
of the Agreement to receive, subject to certain limitations, an allocation of
up to 15% of the net profits, as defined, of the Partnership. For the year
ended December 31, 1996, this allocation totaled $18,644,925. The term
"pro-rata" as used in the statement of operations and special allocation and
the statement of changes in partners' capital - net assets, represents the
allocation of income in accordance with the Agreement.
Each Individual General Partner receives an annual fee of $15,000 from the
Partnership and is reimbursed by the Partnership for all reasonable
out-of-pocket expenses incurred by them in performing their duties. For the
year ended December 31, 1996, these fees and expenses totaled $80,472.
During the year, certain securities were traded between the Partnership and
another entity under the control of the Investment Manager. These trades were
executed at the opening price on the day of the respective transactions.
3. Securities Transactions
The aggregate number of purchases and sales of investment securities,
excluding short-term debt securities, for the year ended December 31, 1996,
amounted to $15,048,650,624 and $15,357,017,439 respectively.
At December 31, 1996, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see
the statement of assets, liabilities and partners' capital).
At December 31, 1996, accumulated net unrealized appreciation on investments
in securities, and securities sold, not yet purchased, was $47,877,100,
consisting of $64,022,966 gross unrealized appreciation and $16,145,866 gross
unrealized depreciation.
Due from brokers represents unsettled trades and short sale proceeds with
brokers at December 31, 1996.
Panther Partners, L.P.
(a limited partnership)
Notes to Financial Statements (continued)
December 31, 1996
4. Financial Instruments with Off-Balance Sheet Risk or
Concentrations of Credit Risk
In the normal course of business, the Partnership trades various financial
instruments and enters into various investment activities with off-balance
sheet risk. These financial instruments include forward and futures
contracts, swaps, written option contracts, structured notes and sales of
securities 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 values of the securities underlying the
financial instruments may be in excess of the amounts recognized in the
statement of assets, liabilities and partners' capital. Additionally,
these financial investments expose the Partnership to credit risk arising
from potential inability of counterparties to perform under the terms of
these contracts.
The Partnership's foreign exchange trading activities involve the purchase and
sale of foreign exchange options having various maturity dates. The
Partnership seeks to limit its exposure to foreign exchange rate movements by
hedging such option positions with foreign exchange positions in spot
currency, futures and forward contracts.
Securities sold, not yet purchased, represent obligations of the Partnership
to deliver the specified security and thereby creates a liability to
repurchase the security in the market at prevailing prices. Accordingly,
these transactions result in off-balance sheet risk as the Partnership's
ultimate obligation to satisfy the sale of securities sold, not yet purchased,
may exceed the amount recognized in the statement of assets, liabilities and
partners' capital.
At December 31, 1996, the Partnership had outstanding forward exchange
contracts, both to purchase and sell foreign currencies, commodities and other
instruments, as follows:
Foreign Currency Forward Buy and Sell Contracts
<TABLE>
<CAPTION>
Foreign
Denominated Unrealized
Amount Contract Commitment Market Value Gain (Loss)
------------ -------- ---------- ------------ -----------
<S> <C> <C> <C> <C>
Buy Contracts
998,000 British Pound Exp. 3/19/97 $ 1,663,981 $ 1,708,407 $ 44,426
1,662,000 Canadian Dollar Exp. 3/19/97 1,227,579 1,219,232 (8,347)
12,849,610 Deutsche Mark Exp. 3/19/97 8,356,382 8,389,829 33,447
62,639,708 Finish Marka Exp. 3/19/97 13,581,013 13,701,413 120,400
134,441,773 French Franc Exp. 3/19/97 25,764,620 26,032,644 268,024
</TABLE>
Panther Partners, L.P.
(a limited partnership)
Notes to Financial Statements (continued)
December 31, 1996
4. Financial Instruments with Off-Balance Sheet Risk or
Concentrations of Credit Risk (continued)
Foreign Currency Forward Buy and Sell Contracts (continued)
<TABLE>
<CAPTION>
Foreign
Denominated Unrealized
Amount Contract Commitment Market Value Gain (Loss)
------------ -------- ---------- ------------ -----------
<S> <C> <C> <C> <C>
50,461,231 Hong Kong Dollar
Exp. 3/19/97 and 1/22/98 $ 6,519,455 $ 6,523,876 $ 4,421
982,000,000 Italian Lira Exp. 3/19/97 641,057 645,045 3,988
13,799,373,421 Japanese Yen Exp. 3/19/97 122,666,289 120,247,420 (2,418,869)
7,177,000 Netherlands Guilder Exp. 3/19/97 4,149,154 4,175,515 26,361
1,333,000 New Zealand Dollar Exp. 3/19/97 933,508 936,672 3,164
5,600,000 Norwegian Krone Exp. 3/19/97 868,984 882,281 13,297
10,360,000 Saudi Arabia Dollar Exp. 1/30/97 2,761,912 2,762,188 276
109,400,000 Spanish Peseta Exp. 3/19/97 834,268 841,152 6,884
------------- ------------- -------------
Total buy contracts 189,968,202 188,065,674 (1,902,528)
------------- ------------- -------------
Sell Contracts
(30,138,472) Austrian Schilling Exp. 3/19/97 (2,769,062) (2,765,010) 4,052
(21,363,709) British Pound Exp. 3/19/97 (35,382,203) (36,505,238) (1,123,035)
(48,703,135) Canadian Dollar Exp. 3/19/97 (35,885,472) (35,728,288) 157,184
(22,765,017) Deutsche Mark Exp. 3/19/97 (14,730,904) (14,863,844) (132,940)
(16,389,448) Finish Marka Exp. 3/19/97 (3,550,572) (3,584,924) (34,352)
(15,940,000) French Franc Exp. 3/19/97 (3,076,308) (3,086,543) (10,235)
(3,870,000) Hong Kong Dollar Exp. 3/19/97 (500,092) (500,374) (282)
(9,136,407,356) Italian Lira Exp. 3/19/97 (5,947,931) (6,001,424) (53,493)
(1,321,610,962) Japanese Yen Exp. 3/19/97 (11,728,310) (11,516,487) 211,823
(2,788,352) Netherlands Guilder Exp. 3/19/97 (1,612,045) (1,622,238) (10,193)
(6,844,737) New Zealand Dollar Exp. 3/19/97 (4,778,979) (4,809,660) (30,681)
(116,844,604) Norwegian Krone Exp. 3/19/97 (18,067,822) (18,408,891) (341,069)
(746,620,000) Portuguese Escudo Exp. 3/19/97 (4,756,006) (4,813,729) (57,723)
(10,360,000) Saudi Arabia Dollar Exp. 1/30/97 (2,756,932) (2,762,188) (5,256)
(3,756,000) South African Rand Exp. 3/19/97 (770,146) (796,094) (25,948)
(43,190,000) Spanish Peseta Exp. 3/19/97 (329,405) (332,078) (2,673)
(124,218,670) Thai Baht Exp. 3/19/97 (4,805,163) (4,801,247) 3,916
------------- ------------- -------------
Total Sell Contracts (151,447,352) (152,898,257) (1,450,905)
------------- ------------- -------------
Net Currencies $ 38,520,850 $ 35,167,417 $ (3,353,433)
============= ============= =============
</TABLE>
Panther Partners, L.P.
(a limited partnership)
Notes to Financial Statements (continued)
December 31, 1996
4. Financial Instruments with Off-Balance Sheet Risk or
Concentrations of Credit Risk (continued)
<TABLE>
<CAPTION>
Commodity Forward Contracts
Number of Unrealized
Contracts Contract Commitment Market Value Gain (Loss)
- --------- -------- ---------- ------------ -----------
<S> <C> <C> <C> <C>
Buy Contracts
3 Cattle Exp. 7/18/97-9/12/97 $ 5,691,953 $ 5,568,823 $(123,130)
3 Cocoa Exp. 2/10/97-6/9/97 5,644,940 5,631,752 (13,188)
2 Rhodium Exp. 1/30/97 534,941 523,812 (11,129)
12 Palladium Exp. 11/30/97-12/31/98 4,392,178 4,364,466 (27,712)
1 Crude Oil Exp. 9/18/97 828,000 856,400 28,400
----------- ----------- -----------
Total commodities $17,092,012 $16,945,253 $(146,759)
=========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
Other Contracts
Number of Unrealized
Contracts Contract Market Value Gain (Loss)
- --------- -------- ------------ -----------
<S> <C> <C> <C>
Buy Contracts
1 Bounded Put Option $ (74,280) $ (74,280)
1 Crack Spread Swap (12,300) (12,300)
1 Gas Spread Swap 7,150 7,150
1 India Index Swap 5,448 5,448
1 Taiwan Index Swap (12,614) (12,614)
--------- ---------
Total Buy Contracts $ (86,596) $ (86,596)
========= =========
Sell Contracts
3 America On Line Swap $ 110,062 $ 110,062
1 British Biotech Equity Swap 3,937 3,937
2 Cemex Equity Swap 21,759 21,759
--------- ---------
Total sell contracts 135,758 135,758
--------- ---------
Net other contracts $ 49,162 $ 49,162
========= =========
</TABLE>
The net unrealized loss of $3,451,030, on these investments, is included in
the statement of assets, liabilities and partners' capital in due from brokers
of $377,416 and due to brokers of $3,828,446.
Panther Partners, L.P.
(a limited partnership)
Notes to Financial Statements (continued)
December 31, 1996
4. Financial Instruments with Off-Balance Sheet Risk or
Concentrations of Credit Risk (continued)
The contract amounts of these instruments reflect the Partnership's extent of
involvement in the particular class of financial instruments and do not
represent the Partnership's risk of loss due to counterparty nonperformance.
The Partnership's exposure to credit risk associated with counterparty
nonperformance on forward contracts is limited to the unrealized gains
inherent in such contracts that are recognized in the Partnership's statement
of assets, liabilities and partners' capital. The settlement of these
transactions is not expected to have a material effect upon the Partnership's
statement of assets, liabilities and partners' capital. The Partnership seeks
to limit its exposure to credit risk associated with counterparty
nonperformance on options by obtaining collateral where possible.
Options purchased provide for cash settlement and require the payment of a
premium, or a percentage thereof, in exchange for the right to receive the
market movement on the underlying security or basket of instruments. Risk of
loss is limited to the premiums as reflected in the statement of assets,
liabilities and partners' capital.
A summary of open contract or notional amounts (in millions) at December 31,
1996 is as follows:
Purchases Sales
--------- -----
Fixed Income Options $2,413 $ -
Foreign Exchange Options 943 114
Equity and Future Options 677 4
Commodity Options 134 5
The Partnership's principal trading activities are primarily with brokers and
other financial institutions with a concentration in North America, Europe and
Asia. The Partnership is subject to the risk of restrictions imposed by
foreign governments on repatriation of cash and to political or economic
uncertainties.
The Partnership's assets are primarily held with a trust company.
Panther Partners, L.P.
(a limited partnership)
Notes to Financial Statements (continued)
December 31, 1996
5. Financial Instruments Held or Issued for Trading Purposes
The Partnership maintains positions in a variety of financial instruments.
The following table summarizes the components of gain from investment
transactions for each category:
Net
Gains
(Losses)
for 1996
------------
Equity activities $143,908,740
Commodity activities 7,142,742
U.S. Dollar activities 845,032
Foreign Exchange activities (1,380,703)
Fixed Income activities (11,752,006)
------------
Gain from investment transactions $138,763,805
============
The following table presents the year-end values of derivative financial
instruments and the average values during the year of those instruments:
Value at Average
December 31, Value for
1996 1996
-------------- --------------
Assets:
Equities $105,481,939 $78,867,976
Commodities 63,712,174 46,744,294
Fixed Income 58,516,643 34,615,455
Foreign Exchange 33,845,495 52,293,562
Liabilities:
Foreign Exchange 3,478,831 2,658,760
Equities 112,620 30,302
Commodities 105,701 134,078
6. Short-term Borrowings
The Partnership has short-term borrowings that are collateralized by
securities held by a trust
Panther Partners, L.P.
(a limited partnership)
Notes to Financial Statements (continued)
December 31, 1996
6. Short-term Borrowings (continued)
company. The borrowings bear interest at fluctuating rates primarily based on
brokers' call and federal fund rates. The fair value of short term borrowings
approximates its recorded amount.
At December 31, 1996, the Partnership had approximately $114,000,000 of unused
lines of credit, which provide for additional short-term borrowings at the
interest rates discussed above.
7. Selected Financial Ratios
The following represents the ratios to average net assets for the period:
<TABLE>
<CAPTION>
March 1, 1992
(Commencement of
Operations) to
Year Ended December 31 December 31, 1996
1996 1995 1994 1993 (not annualized)
------- ------- ------- ------- -----------------
<S> <C> <C> <C> <C> <C>
Investment loss (2.09)% (2.34)% (1.35)% (1.06)% (1.68)%
Operating expenses 1.15 1.08 1.09 1.24 1.00
Interest and dividends on
securities sold, not 2.25 2.74 1.80 1.45 2.53
yet purchased
Total expenses 3.40 3.82 2.89 2.69 3.53
Portfolio turnover 447.80 441.79 289.85 203.56 216.17
Total return * 38.83 10.60 (18.90) 70.67 5.93
Average commission rate
(per share of security) (a) $4.36 N/A N/A N/A N/A
- ------------------
* Total return assumes a purchase of a Partnership interest on the first day
and a sale of the Partnership interest on the last day of the periods noted,
before special allocation to General Partner, if any.
(a) Average commission rate (per share of security) as required by amended
disclosure requirements effective for fiscal year beginning after September 1,
1995.
</TABLE>
Panther Partners, L.P.
(a limited partnership)
Notes to Financial Statements (continued)
December 31, 1996
8. Subsequent Events
Effective January 1, 1997, the Partnership repurchased limited partner
interests of approximately $93,193,571 as part of a tender offer and
distributed approximately $13,227,102 in partner authorized distributions
under the Agreement. The Partnership also received capital contributions of
approximately $8,240,000.
It is currently anticipated that Tiger, an investment fund affiliated with the
Partnership, may, upon the effectiveness of certain provisions contained in
the recently enacted National Securities Markets Improvement Act of 1996 (the
"1996 Act"), accept subscriptions from new investors to enable such investors
to participate in Tiger. If Tiger elects to accept subscriptions from new
investors, the Corporate General Partner currently expects that it will
exercise its right to dissolve the Partnership pursuant to section 6.1(a)(3)
of the Agreement.
Panther Partners, L.P.
(a limited partnership)
Schedule of Portfolio Investments
December 31, 1996
Shares Security Description Value
- ----------- ---------------------------------- --------------
Common Stocks-54.90%
Advertising-2.04%
Foreign:
2,127,050 WPP Group $ 9,213,019
--------------
9,213,019
--------------
Automotive/Trucking-1.51%
Domestic:
87,000 General Motors Corp. 4,850,250
Foreign:
9,350 Tata Engineering & Locomotive Co. 88,923
66,000 Honda Motor Corp. 1,882,789
--------------
6,821,962
--------------
Banks/Finance-17.00%
Domestic:
55,100 Bank of New York Inc. 1,859,625
66,300 Citicorp 6,828,900
118,377 Countrywide Credit Inds. 3,388,542
66,300 Capital One Financial Corp. 2,386,800
42,000 First USA Inc. 1,454,250
9,000 MBNA Corporation 373,500
57,000 Merrill Lynch & Co. 4,645,500
70,300 Morgan Stanley Group, Inc. 4,015,888
2,000 Norwest Corp. 87,000
107,800 United Asset Management Corp. 2,870,175
15,500 Wells Fargo & Co. 4,181,125
Foreign:
22,500 Acom Co., Ltd. 957,942
623,500 Bangkok Bank Co., Ltd. 4,643,008
1,830,560 Barclays Plc ADR 31,401,866
75,700 Canadian Imperial Bank of Commerce 3,340,193
113,522 Kookmin Bank 1,812,983
24,500 Nichiei Co., Ltd. 1,805,352
8,800 Orix Corp. 365,561
8,300 Promise Co., Ltd. 407,739
--------------
76,825,949
--------------
The accompanying notes should be read in conjunction with the
financial statements.
Panther Partners, L.P.
(a limited partnership)
Schedule of Portfolio Investments (continued)
December 31, 1996
Shares Security Description Value
- ----------- ---------------------------------- --------------
Common Stocks-54.90% (continued)
Chemicals-1.30%
Domestic:
86,800 Monsanto Co. $ 3,374,350
61,700 Union Carbide 2,521,988
--------------
5,896,338
--------------
Consumer Products/Services-1.75%
Domestic:
42,900 H & R Block Inc. 1,244,100
65,393 Mattel Inc. 1,814,656
16,000 Owens Corning 682,000
7,400 Phillip Morris Co. Inc. 833,425
63,000 Pittston Brink's Group 1,701,000
Foreign:
8,410 Cho Sun Brewery Co., Ltd. 214,617
72,700 Kimberly Clark de Mexico-A 1,434,262
--------------
7,924,060
--------------
Cyclicals-3.35%
Domestic:
336,600 Xtra Corp. 14,600,025
Foreign:
1,982 Compagnie Generale 546,682
--------------
15,146,707
--------------
Energy-1.77%
Domestic:
89,500 Tosco Corp. 7,081,688
Foreign:
30,400 Bharat Heavy Electricals 184,526
56,123 Helikopter Services Group ASA 731,181
--------------
7,997,395
--------------
Entertainment/Gaming-1.68%
Domestic:
118,100 Carnival Corp. 3,897,300
116,125 Gtech Holdings Corporation 3,716,000
--------------
7,613,300
--------------
The accompanying notes should be read in conjunction with the financial
statements.
Panther Partners, L.P.
(a limited partnership)
Schedule of Portfolio Investments (continued)
December 31, 1996
Shares Security Description Value
- ----------- ---------------------------------- --------------
Common Stocks-54.90% (continued)
Funds-3.88%
Foreign:
149,000 CITC Seoul Turbo Trust $ 1,026,966
149,000 Daehan Prime Equity Trust 986,672
38,887 Framlington Russian Investment Fund 434,757
126,900 India Magnum Fund Class "A" 5,202,900
119,300 India Magnum Fund Class "B" 4,891,300
241,264 Korea Magnum Trust 3,756,480
70,709 Maritime Investment Fund Ltd.,
Ord. "144A" 1,054,397
19,100 Morgan Stanley India
Investment Fund 181,450
--------------
17,534,922
Health Care Products-1.79% --------------
Foreign:
78,145 Astra Ab Shares A-F 3,850,577
3,689 Novartis Ag Regd Nom. CHF20 4,221,913
--------------
8,072,490
--------------
Insurance-3.32%
Domestic:
32,800 Aon Corp. 2,037,700
23,600 Integon Corp. 418,900
30,366 Travelers Group Inc. 1,377,857
Foreign:
17,669 LG Insurance 1,007,563
1,800 Loews Corp. 169,650
2,787 Samsung Fire &
Marine Insurance 1,148,542
90 Samsung Fire &
Marine Insurance PRF 31,727
1,520,962 Storebrand ASA 8,833,364
--------------
15,025,303
--------------
Medical-0.39%
Domestic:
21,700 Allegiance Corporation 599,463
Foreign:
14,100 Sankyo Co., Ltd. 398,587
The accompanying notes should be read in conjunction with the
financial statements.
Panther Partners, L.P.
(a limited partnership)
Schedule of Portfolio Investments (continued)
December 31, 1996
Shares Security Description Value
- ----------- ---------------------------------- --------------
Common Stocks-54.90% (continued)
Medical-0.39%-(continued)
Foreign: (continued)
18,700 Takeda Chemical Inds. $ 391,631
28,300 Terumo 382,927
--------------
1,772,608
--------------
Metals-0.63%
Foreign:
80,600 Impala Platinum Holdings ADR 805,828
79,411 Usinor Sacilor 1,155,631
24,265 Voest-Alpine Stahl Ag 863,533
--------------
2,824,992
--------------
Paper-3.55%
Domestic:
50,100 Bowater Inc. 1,885,013
Foreign:
782,700 Abitibi Price Inc. 12,327,525
138,400 Macmillan Bloedel Ltd. 1,813,343
--------------
16,025,881
--------------
Real Estate-0.04%
Foreign:
19,000 Cheung Kong 168,897
--------------
168,897
--------------
Retail-1.48%
Domestic:
78,700 General Nutrition Co. Inc. 1,328,063
36,300 Home Depot 1,819,538
16,150 Just For Feet Inc. 423,938
26,980 Kohls Corp. 1,058,965
56,000 Micro Warehouse Inc. 658,000
9,700 United Auto Group 249,775
Foreign:
1,334,300 Giordano International Ord. Holdings 1,138,658
--------------
6,676,937
--------------
The accompanying notes should be read in conjunction with the
financial statements.
Panther Partners, L.P.
(a limited partnership)
Schedule of Portfolio Investments (continued)
December 31, 1996
Shares Security Description Value
- ----------- ---------------------------------- --------------
Common Stocks-54.90% (continued)
Shipping-0.96%
Domestic:
25,496 Teekay Shipping Corp. $ 834,994
Foreign:
161,589 Bona Shipholding Ord. "144A" 1,927,757
109,700 First Olsen Tankers Ltd. 981,494
120,840 Western Bulk Shipping AS 578,518
--------------
4,322,763
--------------
Technology-4.27%
Domestic:
5,500 America Online Inc. 182,875
52,700 Cascade Communications Corp. 2,905,088
18,800 Cisco Systems 1,196,150
40,600 Intel Corp. 5,316,063
53,300 Maxim Integrated Products Inc. 2,305,225
99,300 Oracle Corporation 4,145,775
Foreign:
17,300 Canon Inc. 381,694
44,600 Nokia Corp ADR 2,570,075
4,800 Rohm Co. 314,401
--------------
19,317,346
--------------
Telecommunications-0.70%
Domestic:
13,600 Aspect Telecommunications Corp. 863,600
Foreign:
7,900 Grupo Televisa S.A. GDR 202,438
14,300 Mahanagar Telephone Nigam Ltd. 92,000
31,300 Portugal Telecom ADR 884,225
38,750 Portugal Telecom SA 1,104,288
--------------
3,146,551
--------------
Transportation-2.14%
Domestic:
79,800 AMR Corp. 7,032,375
94,800 APL Ltd. 2,239,650
The accompanying notes should be read in conjunction with the
financial statements.
Panther Partners, L.P.
(a limited partnership)
Schedule of Portfolio Investments (continued)
December 31, 1996
Shares Security Description Value
- ----------- ---------------------------------- --------------
Common Stocks-54.90% (continued)
Transportation-2.14%-(continued)
Domestic: (continued)
17,600 USAir Group $ 411,400
--------------
9,683,425
--------------
Utilities-1.22%
Foreign:
37,154 CIE Generale Des Eaux 4,604,773
7,808 OMV AG Ords. 880,780
--------------
5,485,553
--------------
Wholesale-0.13%
Domestic:
25,700 Ingram Micro Inc. 591,100
--------------
591,100
--------------
Total Common Stocks $ 248,087,498
(Cost $222,049,092) ==============
Contracts
---------
Options-43.36%
Calls-19.09%
Domestic:
5 Equity Basket Index, Exp. $ 55,551,235
9/28/97-11/27/97
98,650 Palladium Call Str. 85-105, 2,711,425
Exp. 2/26/97-8/28/97
1 U.S. Dollar Call/Canadian
Put Str. 1.50,Exp 1/13/97 0
1 U.S. Dollar Call/Deutschemark
Put Str. 1.65, Exp. 2/26/97 125,400
1 U.S. Dollar Call/French Franc
Put Str. 4.8, Exp. 1/22/97 5,721,046
1 U.S. Dollar Call/Great British Pound
Put Str. 1.58, Exp. 1/22/97 1,757,026
2 U.S. Dollar Call/Russian Rouble Put
Str. 6361.26-6454.57, Exp.
2/13/97-3/07/97 40,812
1 U.S. Dollar Call/South African
Rand Put Str. 4.3, Exp. 1/22/97 4,112,215
The accompanying notes should be read in conjunction with the
financial statements.
Panther Partners, L.P.
(a limited partnership)
Schedule of Portfolio Investments (continued)
December 31, 1996
<TABLE>
<CAPTION>
Contracts Security Description Value
- ----------- ---------------------------------- --------------
<S> <C> <C>
Options-43.36%-(continued)
Calls-19.09%-(continued)
Domestic: (continued)
1 U.S. Dollar Call/Swiss Franc Put Str. 1.23,
Exp 1/22/97 $ 6,565,364
18,108 Zinc Call Str. 775-850, Exp. 2/17/97-9/15/97 4,695,817
Foreign:
7,108 Chosun Brewery Call Str. .01, Exp. 2/03/97 190,461
4 Deutschemark Call/French Franc Put
Str. 3.39-3.45, Exp. 3/10/97-4/11/97 649,577
2 Deutschemark/Italian Double Knock Out Range
Option Str. 967-1072.5, Exp. 8/08/97 261,676
9 Deutschemark/Italian Knock Out Range Option
Str. 930-1072.5, Exp. 4/23/97-10/02/97 1,376,729
1,313,485 Uni Storebrand Call Str. 26.9, Exp. 10/14/97 2,511,184
--------------
86,269,967
--------------
Puts-24.27%
Domestic:
146 America Online Str. 30-40,
Exp. 1/17/97-1/18/97 77,875
29,917 Copper Put Str. 2750-4000,
Exp. 7/02/97-12/14/98 35,988,990
1 Equity Basket Index, Exp. 12/23/97 25,637,900
1 International Equity Basket, Exp. 1/07/97 3,985,527
Foreign:
31 Brazil Put Str. 63887.5, Exp. 3/13/97 0
2 Canadian Bond Put Str. 97.66-98.2,
Exp. 1/02/97 & 4/2/97 648
2 Deutschemark Bond Put Str. 92.87,
Exp. 1/15/97-2/28/97 639
14 Empress ICA Sociedad Put 12.5, Exp. 1/17/97 0
1 Global Macro Basket, Exp. 8/27/97 30,746,300
8 Italian Bond Put Str. 101.3-104,
Exp. 2/05/97-3/12/97 50
</TABLE>
The accompanying notes should be read in conjunction with the
financial statements.
Panther Partners, L.P.
(a limited partnership)
Schedule of Portfolio Investments (continued)
December 31, 1996
Contracts Security Description Value
- ----------- ---------------------------------- --------------
Options-43.36%-(continued)
Puts-24.27%-(continued)
Foreign: (continued)
5 Mexican Bolsa Put Str. 380.43-443.22,
Exp. 1/10/97-2/14/97 $ 0
6 New Zealand Bond Put Str. 90.68-102.63,
Exp. 3/11/97 196
1 Swedish Bond Put Str. 103.70, Exp. 2/03/97 0
1 U.S. Dollar Put/Canadian Dollar Call Str. 1.435,
Exp. 1/22/97 3,858,710
1 U.S. Dollar Put/Deutschemark Call Str. 1.65,
Exp. 1/22/97 3,496,843
1 U.S. Dollar Put/Italian Call Str. 1650, Exp. 1/22/97 961,533
1 U.S. Dollar Put/Norwegian Kroner Call Str. 6.9,
Exp. 1/22/97 4,918,564
2 U.S. Dollar Put/South African Rand Call
Str. 3.955-3.957, Exp. 1/28/97 0
---------------
109,673,775
---------------
Total Options (Cost $177,998,591) $ 195,943,742
===============
Other Options-3.34%
Domestic:
1,161,640 Brent Spread Swaption, Exp. 2/28/98 $ 952,545
1,246,564 Crack Spread Swaption, Exp. 3/31/98 3,615,036
713,400 Gas/Brent Swaption, Exp. 3/31/97-6/30/97 6,820,518
1 U.S. Fixed Income Str. 8.95, Exp. 2/03/97 0
Foreign:
1 Deutschemark Fixed Income Str. 8.03, Exp. 2/05/97 0
4 Italian Fixed Income Str. 6.6825-9,
Exp. 2/14/97-11/13/97 3,244,531
2 New Zealand Fixed Income Str. 9.5,
Exp. 1/29/97-2/21/97 454,440
---------------
Total Other Options (Cost $15,097,458) $ 15,087,070
===============
The accompanying notes should be read in conjunction with the
financial statements.
Panther Partners, L.P.
(a limited partnership)
Schedule of Portfolio Investments (continued)
December 31, 1996
<TABLE>
<CAPTION>
Contracts Security Description Value
- ----------- ---------------------------------- --------------
<S> <C> <C>
Face Amount
Short-Term Investments-2.73%
Domestic:
1,404,000 Copper Commercial Paper, Exp. 4/16/97-6/18/97 $ 1,492,592
11,000,000 U.S. T-Bill Due 3/20/97 10,880,754
---------------
Total Short-Term Investments (Cost $19,408,013) $ 12,373,346
===============
Structured Notes-7.02%
Domestic:
7,134,000 Copper Structured Note -"144A",
Exp. 7/16/97-12/17/97 $ 7,661,441
Foreign:
21,546,367 Russian Structured Note -"144A",
Exp. 5/14/97-9/3/97 24,069,831
---------------
Total Structured Notes (Cost $22,131,948) $ 31,731,272
===============
Total Investments (Cost $456,685,102) - 111.35% $ 503,222,928
Liabilities, Less Other Assets - 11.35% (51,300,855)
---------------
Net Assets-100% $ 451,922,073
===============
</TABLE>
The accompanying notes should be read in conjunction with the
financial statements.
Panther Partners, L.P.
(a limited partnership)
Schedule of Securities Sold, Not Yet Purchased
December 31, 1996
<TABLE>
<CAPTION>
Shares Security Description Value
- ----------- ---------------------------------- --------------
<S> <C> <C>
Common Stocks
Automotive/Trucking
Domestic:
47,400 Cummins Engine $ 2,180,400
Foreign:
100,000 Nissan Motor Co., Ltd. 579,000
--------------
2,759,400
--------------
Banks/Finance
Foreign:
115,000 Chuo Trust & Banking 980,221
159,000 Dai-ichi Kangyo Bank 2,288,460
226,400 Daiwa Bank Ltd. 1,180,488
157,800 Fuji Bank Ltd. 2,298,388
70,200 Grupo Financiero Bancomer ADR Ser. B 561,102
35,900 Grupo Financiero Serfin ADR 148,088
76,000 Hang Seng Bank Ltd. 923,713
227,000 Industrial Bank Of Japan 3,932,345
299,000 Long Term Credit Bank Of Japan 1,615,729
383,000 Nippon Credit Bank 1,006,765
356,000 Sakura Bank 2,540,446
178,000 Sanwa Bank Ltd. 2,423,856
105,000 Tokai Bank 1,094,975
150,000 Yasuda Trust & Banking 634,750
--------------
21,629,326
--------------
Construction
Foreign:
94,000 Grupo Mex Desarrollo ADR 152,750
217,200 Grupo Tribasa SA ADR 1,058,850
--------------
1,211,600
--------------
Consumer Products
Domestic:
80,800 Callaway Golf Co. 2,323,000
1,300 Nike Inc. Cl-B 77,675
63,600 Owens Corning 2,710,950
</TABLE>
The accompanying notes should be read in conjunction with the
financial statements.
Panther Partners, L.P.
(a limited partnership)
Schedule of Securities Sold, Not Yet Purchased (continued)
December 31, 1996
<TABLE>
<CAPTION>
Shares Security Description Value
- ----------- ---------------------------------- --------------
<S> <C> <C>
Consumer Products-(continued)
Foreign:
273,000 Kanebo Ltd. $ 562,329
19,700 Sega Enterprises 662,156
--------------
6,336,110
--------------
Energy
Domestic:
119,800 Global Marine 2,470,875
101,500 Rowan Companies Inc. 2,296,438
Foreign:
149,000 Cosmo Oil Company Ltd. 715,272
14,000 Gazprom ADR 248,500
29,900 Gazprom-Reg S (GDS) 530,725
169,000 Mitsubishi Oil Company 1,009,368
331,000 Nippon Oil Company Ltd. 1,697,363
--------------
8,968,541
--------------
Entertainment/Media
Foreign:
217,900 Euro Disney 432,600
--------------
432,600
--------------
Funds
Foreign:
5,500 Mexico Fund Inc. 82,500
--------------
82,500
--------------
Healthcare Products
Domestic:
40,800 Biomet Inc. 617,100
42,900 Foundation Health Corp. 1,362,075
62,628 Genzyme Corp. 1,362,159
51,000 Health Source Inc. 669,375
38,100 Medaphis Corp. 426,244
101,000 MedPartners, Inc. 2,121,000
191,700 Mylan Labs Inc. 3,210,975
24,000 Respironics Inc. 417,000
</TABLE>
The accompanying notes should be read in conjunction with the
financial statements.
Panther Partners, L.P.
(a limited partnership)
Schedule of Securities Sold, Not Yet Purchased (continued)
December 31, 1996
<TABLE>
<CAPTION>
Shares Security Description Value
- ----------- ---------------------------------- --------------
<S> <C> <C>
Common Stocks-(continued)
Healthcare Products-(continued)
Foreign:
76,100 Elan Plc ADR $ 2,530,325
--------------
12,716,253
--------------
Metals
Domestic:
19,400 Aluminum Co. of America 1,236,750
Foreign:
50,233 Hoogovens 2,093,284
--------------
3,330,034
--------------
Paper
Domestic:
137,800 Stone Container Corp. 2,049,775
--------------
2,049,775
--------------
Retail
Domestic:
60,900 Just For Feet Inc. 1,598,625
295,800 Kmart Corp. 3,068,925
31,500 McDonalds Corporation 1,425,375
Foreign:
375,000 Daiei Inc. 2,860,252
20,600 Mitsukoshi 145,938
--------------
9,099,115
--------------
Technology
Domestic:
134,900 America Online Inc. 4,485,425
44,100 Compuserve Corp. 435,488
3,300 Iomega Corp. 57,338
45,500 The Learning Company 654,063
81,000 Xylan Corp. 2,288,250
Foreign:
11,000 Advantest Corp. 514,781
141,000 Casio Computer Co., Ltd. 1,088,822
14,000 Nintendo Ltd. 1,000,259
</TABLE>
The accompanying notes should be read in conjunction with the
financial statements.
Panther Partners, L.P.
(a limited partnership)
Schedule of Securities Sold, Not Yet Purchased (continued)
December 31, 1996
<TABLE>
<CAPTION>
Shares Security Description Value
- ----------- ---------------------------------- --------------
<S> <C> <C>
Common Stocks-(continued)
Technology-(continued)
Foreign: (continued)
100,000 Nokia Corp ADR $ 5,762,500
353,000 OKI Electric Industry Co. 1,940,998
16,500 Siemens AG 777,038
74,000 Tokyo Electron Ltd. 2,264,070
--------------
21,269,032
--------------
Telecommunications
Domestic:
99,100 Ascend Communications Inc. 6,156,588
127,400 Micron Technology Inc. 3,710,525
67,900 Nextel Communications Inc Class A 886,944
Foreign:
153,900 Deutsche Telecom Ag 3,243,946
2,000 Deutsche Telecom Ag ADR 40,750
6,000 Kokusai Denshin Denwa Co. 412,652
87,400 Telefonos de Mexico Series "l" ADR 2,884,200
17,000 Telephone Company of Brazil 1,300,500
--------------
18,636,105
--------------
Transportation
Domestic:
124,600 APL Ltd. 2,943,675
Foreign:
942,300 Eurotunnel 1,244,146
170,000 Japan Air Lines Ltd. 901,060
--------------
5,088,881
--------------
Miscellaneous
Other 21,895,270
--------------
21,895,270
--------------
Total Short Common Stock
(Proceeds $136,624,822) $ 135,504,542
==============
</TABLE>
The accompanying notes should be read in conjunction with the
financial statements.
Panther Partners, L.P.
(a limited partnership)
Schedule of Securities Sold, Not Yet Purchased (continued)
December 31, 1996
<TABLE>
<CAPTION>
Contracts Security Description Value
- ----------- ---------------------------------- --------------
<S> <C> <C>
Options
Calls
Domestic:
146 America Online Call Str. 30-40,
Exp. 1/17/97-1/18/97 $ 10,113
1 U.S. Dollar Call/Deutschemark Put Str. 1.65,
Exp. 2/26/97 125,400
Foreign:
31 Brazil Call Str. 63887.5, Exp. 3/13/97 118,203
3,697 Mexican Bolsa Call Str. 380.43-443.22,
Exp. 1/10/97-2/14/97 33,357
--------------
287,073
--------------
Puts
Domestic:
2,856 Copper Put Str. 1700, Exp. 7/14/97-12/15/97 $ 105,701
--------------
105,701
--------------
Total Options (Proceeds $611,768) $ 392,774
==============
Total Short Securities (Proceeds $137,236,590) $ 135,897,316
==============
</TABLE>
The accompanying notes should be read in conjunction with the
financial statements.
Affirmation of the Commodity Pool Operator
IN WITNESS WHEREOF, the undersigned has made and signed this document as of
the 25 day of February, 1997, and affirms that to the best of his knowledge
and belief, the information contained in this document is accurate and
complete.
PANTHER MANAGEMENT COMPANY, L.P.
Corporate General Partner and Commodity Pool
Operator of Panther Partners, L.P.
By: PANTHER MANAGEMENT CORPORATION
Sole General Partner
By: _______________________________
Nolan Altman
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 319,448,512
<INVESTMENTS-AT-VALUE> 367,325,612
<RECEIVABLES> 251,326,758
<ASSETS-OTHER> 983,563
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 619,635,933
<PAYABLE-FOR-SECURITIES> 23,552,237
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 144,161,623
<TOTAL-LIABILITIES> 167,713,860
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> (7,998,910)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 235,596,825
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 44,667,908
<NET-ASSETS> 451,922,073
<DIVIDEND-INCOME> 4,429,315
<INTEREST-INCOME> 568,031
<OTHER-INCOME> 0
<EXPENSES-NET> 12,996,256
<NET-INVESTMENT-INCOME> (7,998,910)
<REALIZED-GAINS-CURRENT> 160,155,115
<APPREC-INCREASE-CURRENT> (21,391,310)
<NET-CHANGE-FROM-OPS> 130,764,895
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (5,642,279)
<DISTRIBUTIONS-OF-GAINS> 35,222,313
<DISTRIBUTIONS-OTHER> 135,300,720
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (24,745,398)
<ACCUMULATED-NII-PRIOR> (24,214,978)
<ACCUMULATED-GAINS-PRIOR> 75,441,710
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,923,601
<INTEREST-EXPENSE> 8,326,334
<GROSS-EXPENSE> 12,996,256
<AVERAGE-NET-ASSETS> 382,168,081
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 3.4
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
