<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from N/A to N/A
--- ---
Commission File No. 814-48
TECHNOLOGY FUNDING PARTNERS III, L.P.
----------------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 94-3033783
- ------------------------------ ---------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
2000 Alameda de las Pulgas, Suite 250
San Mateo, California 94403
- --------------------------------------- --------
(Address of principal executive offices) (Zip Code)
(650) 345-2200
--------------------------------------------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes X No
--- ---
No active market for the units of limited partnership interest ("Units")
exists, and therefore the market value of such Units cannot be
determined.
<PAGE>
I. FINANCIAL INFORMATION
Item 1. Financial Statements
BALANCE SHEETS
- --------------
<TABLE>
<CAPTION>
(unaudited)
March 31, December 31,
1999 1998
------------ -----------
<S> <C> <C>
ASSETS
Equity investments (cost basis
of $20,834,238 and $20,686,838 for
1999 and 1998, respectively) $22,435,684 21,029,455
Notes receivable (cost basis of $0
and $202,777 for 1999 and 1998,
respectively) -- 202,777
---------- ----------
Total investments 22,435,684 21,232,232
Cash and cash equivalents 3,255,038 3,160,675
Due from related parties -- 23,135
Other assets 6,136 4,109
---------- ----------
Total $25,696,858 24,420,151
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable and accrued expenses $ 56,623 66,479
Due to related parties 17,603 --
Other liabilities 9,037 15,142
---------- ----------
Total liabilities 83,263 81,621
Commitments, contingencies and
subsequent event (Notes 2, 3 and 6)
Partners' capital:
Limited Partners
(160,000 Units outstanding) 24,344,543 24,328,469
General Partners (332,394) (332,556)
Net unrealized fair value increase
from cost of equity investments 1,601,446 342,617
---------- ----------
Total partners' capital 25,613,595 24,338,530
---------- ----------
Total liabilities
and partners' capital $25,696,858 24,420,151
========== ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF OPERATIONS (unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
For the Three Months Ended March 31,
-----------------------------------
1999 1998
--------- ---------
<S> <C> <C>
Income:
Notes receivable interest $ 7,292 10,657
Short-term investment interest 35,567 43,660
Other income 123 123
--------- ---------
Total income 42,982 54,440
Costs and expenses:
Management fees 61,050 74,639
Individual General Partners'
compensation 11,414 7,414
Operating expenses:
Administrative and investor services 128,849 160,067
Investment operations 79,820 156,855
Professional fees 10,413 12,060
Computer services 28,734 67,680
--------- ---------
Total operating expenses 247,816 396,662
--------- ---------
Total costs and expenses 320,280 478,715
--------- ---------
Net operating loss (277,298) (424,275)
Net realized gain (loss) from sales
of equity investments 199,951 (352,023)
Realized gains from venture capital
limited partnership investments 93,583 22,183
--------- ---------
Net realized income (loss) 16,236 (754,115)
Change in net unrealized
fair value of equity
investments 1,258,829 (493,568)
--------- ---------
Net income (loss) $1,275,065 (1,247,683)
========= =========
Net realized income (loss) per Unit $ 0.10 (3.74)
========= =========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF CASH FLOWS (unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
For the Three Months Ended March 31,
-----------------------------------
1999 1998
--------- ---------
<S> <C> <C>
Cash flows from operating activities:
Interest and other income received $ 44,320 43,783
Cash paid to vendors (106,364) (46,234)
Cash paid to related parties (191,166) (546,101)
--------- ----------
Net cash used by operating
activities (253,210) (548,552)
--------- ----------
Cash flows from investing activities:
Proceeds from sales of
equity investments 873,237 61,884
Purchase of equity investments (817,846) --
Notes receivable issued -- (35,962)
Repayment of notes receivable 198,844 --
Distributions from venture capital
limited partnerships 93,338 21,187
--------- ----------
Net cash provided by
investing activities 347,573 47,109
--------- ----------
Net increase (decrease) in cash
and cash equivalents 94,363 (501,443)
Cash and cash equivalents at beginning
of year 3,160,675 4,304,928
--------- ----------
Cash and cash equivalents
at March 31 $3,255,038 3,803,485
========= ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF CASH FLOWS (unaudited) (continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
For the Three Months Ended March 31,
------------------------------------
1999 1998
---------- ----------
<S> <C> <C>
Reconciliation of net income (loss) to net
cash used by operating activities:
Net income (loss) $ 1,275,065 (1,247,683)
Adjustments to reconcile net income (loss)
to net cash used by operating activities:
Net realized (gain) loss from sales of
equity investments (199,951) 352,023
Realized gains from venture capital
limited partnership investments (93,583) (22,183)
Change in net unrealized fair value of
equity investments (1,258,829) 493,568
Changes in:
Due to/from related parties 40,738 (102,541)
Other changes, net (16,650) (21,736)
--------- ---------
Net cash used by operating activities $ (253,210) (548,552)
========= =========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (unaudited)
- ----------------------------------------
1. General
-------
In the opinion of the Managing General Partners, the Balance Sheets as of
March 31, 1999, and December 31, 1998, and the related Statements of
Operations and Statements of Cash Flows for the three months ended March
31, 1999 and 1998, reflect all adjustments which are necessary for a fair
presentation of the financial position, results of operations and cash
flows for such periods. These statements should be read in conjunction
with the Annual Report on Form 10-K for the year ended December 31, 1998.
The following notes to financial statements for activity through March
31, 1999, supplement those included in the Annual Report on Form 10-K.
Allocation of income and loss to Limited and General Partners is based on
cumulative income and loss. Adjustments, if any, are reflected in the
current quarter balances.
2. Related Party Transactions
--------------------------
Related party costs are included in costs and expenses shown on the
Statements of Operations. Related party expenses for the three months
ended March 31, 1999 and 1998, were as follows:
<TABLE>
<CAPTION>
1999 1998
--------- --------
<S> <C> <C>
Management fees $ 61,050 74,639
Individual General Partners'
compensation 11,414 7,414
Reimbursable operating expenses 159,440 361,507
</TABLE>
Certain reimbursable expenses have been accrued based upon interim
estimates prepared by the Managing General Partners and are adjusted to
actual costs periodically. There were $23,350 and $46,889 of such
expenses due from related parties at March 31, 1999, and December 31,
1998, respectively.
Amounts due to related parties for management fees were $40,953 and
$23,754 at March 31, 1999, and December 31, 1998, respectively.
Officers of the Managing General Partners occasionally receive stock
options as compensation for serving on the Boards of Directors of
portfolio companies. At March 31, 1999, the Partnership had an indirect
interest in Conversion Technologies International, Inc., White Electronic
Designs Corporation, Endocare, Inc., PolyMedica Corporation and
Thermatrix Inc. non-transferable options with a total current market
value of $23,486.
3. Equity Investments
------------------
<TABLE>
A complete listing of the Partnerships equity investments at December 31, 1998, is in the 1998
Annual Report on Form 10-K. Activity from January 1 through March 31, 1999, consisted of:
<CAPTION>
January 1 through March 31, 1999
--------------------------------
Principal
Investment Amount or Cost Fair
Industry/Company Position Date Shares Basis Value
- ---------------- -------- ---------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C>
Balance at January 1, 1999 $20,686,838 21,029,455
---------- ----------
Significant changes:
Communications
- --------------
Illinois Superconductor Common
Corporation shares 02/99 5,810 116,542 6,211
Computers and Computer Equipment
- --------------------------------
White Electronic Common
Designs Corporation shares various 645,477 0 (126,190)
Computer Systems and Software
- -----------------------------
Photon Dynamics, Common
Inc. shares 07/96 50,000 0 78,750
Electronic Design Automation
- ----------------------------
Cadence Design Common
Systems, Inc. shares 07/96 24,000 0 (48,288)
Synopsys, Inc. Common
shares 02/97 14,000 (560,005) (735,000)
Environmental
- -------------
Thermatrix Common
Inc. shares 06/96 65,970 0 (49,904)
Information Technology
- ----------------------
WorldRes, Series D
Inc. Preferred
shares 03/99 73,140 442,497 442,497
WorldRes, Series B and C
Inc. Preferred 01/97-
shares 12/97 361,252 -- 848,943
Medical/Biotechnology
- ---------------------
Biex, Inc. Series F
Preferred
shares 03/99 132,743 345,132 345,132
Biex, Inc. Series A, B,
C, D, and E
Preferred
shares 611,006 -- 61,098
Cardiac Pathways Common
Corporation shares 06/91 7,134 (72,267) (29,164)
CardioTech Common
International, shares
Inc. 06/96 195,600 0 (46,357)
Endocare, Inc. Common 08/96-
shares 01/97 309,000 0 777,217
Endocare, Inc. Common share
warrant
at $3.00;
expiring
08/01 08/96 112,500 0 115,988
LifeCell Common
Corporation shares various 351,060 0 (61,434)
Matrix Common
Pharmaceutical, Inc. shares various 321,633 0 (213,243)
Oxford GlycoSciences Common
Plc shares 08/93 106,772 0 93,426
Venture Capital Limited Partnership Investments
- -----------------------------------------------
Various Limited
Partnership
interests various $3,954,845 (116,594) (93,634)
---------- ----------
Total significant changes during the three months
ended March 31, 1999 155,305 1,366,048
Other changes, net (7,905) 40,181
---------- ----------
Total equity investments at March 31, 1999 $20,834,238 22,435,684
========== ==========
</TABLE>
Marketable Equity Securities
- ----------------------------
At March 31, 1999, and December 31, 1998, marketable equity securities had
aggregate costs of $7,974,823 and $9,045,454, respectively, and aggregate
fair values of $6,580,927 and $6,797,268, respectively. The net
unrealized losses at March 31, 1999, and December 31, 1998, included gross
gains of $1,555,662 and $911,588, respectively.
Biex, Inc.
- ----------
In March 1999, the Partnership purchased 132,743 Series F Preferred shares
for $345,132. The pricing of this round, in which third parties
participated, indicated a $69,417 increase in the fair value of the
Partnership's investment in the company's preferred shares and warrants.
Cardiac Pathways Corporation
- ----------------------------
In March 1999, the Partnership sold its entire investment in the company
for proceeds of $19,618 and realized a loss of $52,649.
Synopsys, Inc.
- --------------
In January 1999, the Partnership sold its entire investment in the company
for proceeds of $812,000 and realized a gain of $251,995.
Women.com Networks
- ------------------
In January 1999, the company announced the formation of a joint venture
with Hearst New Media & Technology, a wholly owned unit of the Hearst
Corporation.
Subsequent to March 31, 1999, the Partnership purchased 33,857 Series E
Preferred shares for $338,570. The pricing of this round, in which third
parties participated, indicated an increase in the fair value of the
Partnership's investment in the company from $1,799,957 to $5,809,561.
WorldRes, Inc.
- --------------
In March 1999, the Partnership purchased 73,140 Series D Preferred shares
for $442,497. The pricing of this round, in which third parties
participated, indicated a $890,358 increase in the fair value of the
Partnership's investment in the company's preferred shares and warrants.
Venture Capital Limited Partnerships
- ------------------------------------
The Partnership received cash distributions totaling $93,338 from Delphi
Ventures, L.P. The Partnership received stock and warrant distributions
of Illinois Superconductor Corporation and Informix Software, Inc. with
fair values totaling $116,839. Distributions totaling $93,583 were
recorded as realized gains and distributions totaling $116,594 were
recorded as returns of capital.
Other Equity Investments
- ------------------------
Other significant changes reflected above relate to market value
fluctuations or the elimination of a discount relating to selling
restrictions for publicly-traded portfolio companies. Portions of the
Partnership's Conversion Technologies International, Inc., White
Electronic Designs Corporation, and Thermatrix Inc. investments are
restricted.
The Partnership's investment in Matrix Pharmaceutical, Inc. had increased
to $1,708,675 as a result of the publicly traded market price on May 14,
1999.
4. Notes Receivable
----------------
During the three months ended March 31, 1999, notes receivable of $198,844
were repaid in full with interest.
5. Cash and Cash Equivalents
-------------------------
Cash and cash equivalents at March 31, 1999, and December 31, 1998,
consisted of:
<TABLE>
<CAPTION>
1999 1998
--------- ---------
<S> <C> <C>
Demand accounts $ 42,072 55,472
Money-market accounts 3,212,966 3,105,203
--------- ---------
Total $3,255,038 3,160,675
========= =========
</TABLE>
6. Commitments and Contingencies
-----------------------------
The Partnership is a party to financial instruments with off-balance-sheet
risk in the normal course of its business. Generally, these instruments
are commitments for future equity investment fundings, venture capital
limited partnership investments, equipment financing commitments, or
accounts receivable lines of credit that are outstanding but not currently
fully utilized by a borrowing company. As they do not represent current
outstanding balances, these unfunded commitments are properly not
recognized in the financial statements. At March 31, 1999, the
Partnership had unfunded commitments for venture capital limited
partnership investments of $7,805 and had guaranteed a line of credit of
$15,550.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Liquidity and Capital Resources
- -------------------------------
During the three months ended March 31, 1999, net cash used by operating
activities totaled $253,210. The Partnership paid management fees of
$43,851 to the Managing General Partners and reimbursed related parties
for operating expenses of $135,901. In addition, $11,414 was paid to the
Individual General Partners as compensation for their services. Other
operating expenses of $106,364 were paid and $44,320 in interest and other
income was received.
During the three months ended March 31, 1999, the Partnership funded
equity investments of $817,846 primarily to portfolio companies in the
information technology and medical/biotechnology industries. Proceeds
from equity investment sales were $873,237, repayments of notes receivable
were $198,844, and cash distributions from venture capital limited
partnership investments were $93,338. As of March 31, 1999, the
Partnership was committed to fund additional investments of $7,805 as
discussed in Note 6 to the financial statements.
Cash and cash equivalents at March 31, 1999, were $3,255,038. Cash
reserves, interest income on short-term investments, and future proceeds
from equity investment sales are expected to be adequate to fund
Partnership operations and future investments through the next twelve
months.
Results of Operations
- ---------------------
Current quarter compared to corresponding quarter in the preceding year
- -----------------------------------------------------------------------
Net income was $1,275,065 for the three months ended March 31, 1999, as
compared to a net loss of $1,247,683 for the three months ended March 31,
1998. The improvement was primarily due to an increase of $1,752,397 in
the change in net unrealized fair value of equity investments, a $551,974
increase in net realized gains from equity investment sales, and a
$148,846 decrease in operating expenses.
The Partnership recorded an increase in fair value of equity investments
of $1,258,829 during the quarter ended March 31, 1999 primarily due to
increases in the information technology and medical/biotechnology
industries, partially offset by decreases in the computer and computer
equipment and electronic design automation industries. During the same
period in 1998, the decrease in fair value of equity investments of
$493,568 was substantially attributable to decreases in portfolio
companies in the communications, computer systems and software, and
computer and computer equipment industries, partially offset by increases
in the medical/biotechnology and electronic design automation industries.
Net realized gain from sales of equity investments was $199,951 for the
quarter ended March 31, 1999, as compared to a net realized loss of
$352,023 for the quarter ended March 31, 1998. The gain in 1999 primarily
resulted from the sale of Synopsys, Inc., partially offset by a loss on
the sale of Cardiac Pathways Corporation. The loss in 1998 primarily
related to the sale of NetChannel, Inc.
Operating expenses were $247,816 for the quarter ended March 31, 1999,
compared to $396,662 for the same period in 1998. The decrease is
attributable to decreased investment monitoring activity and decreased
computer expenses.
Given the inherent risk associated with the business of the Partnership,
the future performance of the portfolio company investments may
significantly impact future operations.
YEAR 2000
- ---------
Widespread use of computer programs that use two digits rather than four
to store, calculate, and display year values in dates may cause computer
systems to malfunction in the year 2000, resulting in significant business
delays and disruptions.
The Partnership's State of Readiness
- ------------------------------------
Computer services are provided to the Partnership by its Managing General
Partner, Technology Funding Inc. ("TFI".) For several years, TFI has
sought to use Year 2000 compliant storage formats and algorithms in its
internally-developed and maintained systems. TFI has also completed
initial evaluations of computer systems, software, and embedded
technologies. Those evaluations confirmed that certain components of its
network server hardware and operating systems, voice mail system, e-mail
system, and accounting software may have Year 2000 compliance issues.
These resources and several less-critical components of the systems
environment were all scheduled as part of normal maintenance and
replacement cycles to be replaced or upgraded as Year 2000 compatible
components became available from vendors during 1998 and 1999. That
program remains on schedule to provide Year 2000 capable systems timely
without significant expenditures or disruption of Partnership operations.
However, the risk remains that TFI may not be able to verify whether Year
2000 compatibility claims by vendors are accurate, or whether changes
undertaken to achieve Year 2000 compatibility will create other undetected
problems in associated systems. Therefore, TFI anticipates that Year 2000
compliance testing and maintenance of these systems will continue as
needed into the first quarter of 2000.
As part of Year 2000 evaluation, TFI has also assembled a database listing
its significant suppliers to assess the extent to which it needs to
prepare for any of those parties' potential failure to remediate their
Year 2000 compliance issues. TFI is reviewing public Year 2000 statements
of those suppliers and preparing questionnaires to be sent to mission-
critical vendors whose public statements were not adequate for assessment.
TFI will continue to monitor its significant suppliers as part of its Year
2000 evaluation. However, there can be no guarantee that the systems of
other companies on which TFI relies will be timely converted, or that
failure to convert will not have a material adverse effect on the
Partnership and its operations. TFI is also working with the
Partnership's portfolio companies to determine the extent to which their
operations are vulnerable to Year 2000 issues. There can be no guarantee
that the systems of portfolio companies in which the Partnership has
invested will be timely converted, or that failure to convert will not
have a material adverse effect on the Partnership.
The Cost to Address Year 2000 Issues
- ------------------------------------
Expenditures in 1999 to date related to Year 2000 issues were not material
to the Partnership's financial statements. TFI expects that additional
expenditures for Year 2000 compliance will not be material to the
Partnership.
The Risks Associated with Year 2000 Issues
- ------------------------------------------
Any failure by the portfolio companies in which the Partnership has
invested, or by those portfolio companies' key suppliers or customers, to
anticipate and avoid Year 2000 related problems at reasonable cost could
have a material adverse effect on the value of and/or the timing of
realization of value from the Partnership's investments. If Year 2000
compliance issues are not resolved by December 31, 1999, internal system
failures or miscalculations could cause a temporary inability to process
transactions, loss of ability to send or receive e-mail and voice mail
messages, or disruptions in other normal business activities.
Additionally, failure of third parties on whom TFI relies to remediate
their Year 2000 issues timely could result in disruptions in the
Partnership's relationship with its financial institutions, temporary
disruptions in processing transactions, unanticipated costs, and problems
related to the Partnership's daily operations. While TFI continues to
address its internal Year 2000 issues, until TFI receives and evaluates
responses from a significant number of its suppliers, the overall risks
associated with the Year 2000 issue remain difficult to describe and
quantify. There can be no guarantee that the Year 2000 issue will not
have a material adverse effect on the Partnership and its operations.
TFI's Contingency Plan
- ----------------------
As part of its normal efforts to assure business continuation in the event
of natural disasters, systems failures, or other disruptions, TFI has
prepared contingency plans including an extensive Year 2000 contingency
plan. Taken together with TFI's Year 2000 remediation plan, it identifies
potential points of failure, approaches to correcting known Year 2000
problems, dates by which the preferred corrections are anticipated to be
made and tested, and alternative approaches if the corrections are not
completed timely or are later found to be inadequate. Although backup
systems and contingency approaches have been identified for most mission-
critical systems and vendor dependencies, there remain some systems for
which no good alternative exists, and there may be some problems that
prove more intractable than currently anticipated.
II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) No reports on Form 8-K were filed by the Partnership during the
quarter ended March 31, 1999.
(b) Financial Data Schedule for the three months ended and as of March
31, 1999 (Exhibit 27).
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this Report to be
signed on its behalf by the undersigned, thereunto duly authorized.
TECHNOLOGY FUNDING PARTNERS III, L.P.
By: TECHNOLOGY FUNDING INC.
Managing General Partner
Date: May 14, 1999 By: /s/Michael R. Brenner
------------------------------------
Michael R. Brenner
Controller
<TABLE> <S> <C>
<ARTICLE>6
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE FORM 10-Q AS OF MARCH 31, 1999 AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
<MULTIPLIER>1
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<PERIOD-TYPE> 3-MOS
<INVESTMENTS-AT-COST> 20,834,238
<INVESTMENTS-AT-VALUE> 22,435,684
<RECEIVABLES> 0
<ASSETS-OTHER> 6,136
<OTHER-ITEMS-ASSETS> 3,255,038
<TOTAL-ASSETS> 25,696,858
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 83,263
<TOTAL-LIABILITIES> 83,263
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 24,012,149
<SHARES-COMMON-STOCK> 160,000
<SHARES-COMMON-PRIOR> 160,000
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,601,446
<NET-ASSETS> 25,613,595
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 42,859
<OTHER-INCOME> 123
<EXPENSES-NET> 320,280
<NET-INVESTMENT-INCOME> (277,298)
<REALIZED-GAINS-CURRENT> 293,534
<APPREC-INCREASE-CURRENT> 1,258,829
<NET-CHANGE-FROM-OPS> 1,275,065
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 1,275,065
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 61,050
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 323,826
<AVERAGE-NET-ASSETS> 24,976,063
<PER-SHARE-NAV-BEGIN> 152
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0 <F1>
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 152
<EXPENSE-RATIO> 1.3
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
A zero value is used since the change in net unrealized fair value is not
allocated to General Partners and Limited Partners as it is not taxable.
</FN>
</TABLE>
