<PAGE>
[GRAPHIC]
Small box above fund name showing
newspapers such as The Wall Street
Journal, Investor's Daily, Barron's
and Crain's New York Business.
Also shown are share certificates
and a pocket watch.
FIRST
QUARTER The
REPORT Advisors
Fund L.P.
.......................................
MARCH 31, 1994
NOTE: THE ADVISORS FUND L.P. HAS CLAIMED THE
EXEMPTION PROVIDED BY COMMODITY EXCHANGE
ACT REGULATION SECTION 4.12(B)(2)(I).
[LOGO]
<PAGE>
The Advisors Fund L.P.
DEAR FELLOW SHAREHOLDER:
One of the stock market's longest running correction-free
advances in history came to a halt at the end of the first
quarter of 1994, as the combination of rising interest rates,
huge speculative losses in the bond market and high equity
valuations
sent investors running for cover. After climbing to record highs in
the first few weeks of the year, domestic stocks declined when the
Federal Reserve Board (the "Fed") raised short-term interest rates
in
early February. After the Fed tightened rates a second time in late
March, the decline in the equity market increased in severity,
exacerbated by the effects of deleveraging and intermarket hedging.
As
a result, the equity market registered its worst quarterly decline
in
over three years during the first quarter of 1994.
Stocks and bonds exhibited pronounced volatility during the first quarter of
1994, as investors struggled to reconcile the favorable effect of the
economy's
surprising strength on corporate profits with the potential rise in inflation
it
may portend. A barrage of impressive economic data, even in the face of harsh
winter constraints, sparked this "growth scare." Consumption, manufacturing
and
capital spending were robust in the first quarter of 1994, leading to a surge
in
job creations and further improvement in consumer confidence. Consequently,
CAPACITY UTILIZATION has risen beyond the point at which prices have
historically started to climb, unsettling the bond market by stirring
inflationary expectations. The Fed's tentative turn toward restraint has done
little to quell investors' anxieties, and the yield curve has steepened
considerably. Bond market participants sold heavily in the first quarter and
moved interest rates sharply higher. This created chaos in the fixed income
markets, particularly for those leveraged investors using derivative
instruments.
<TABLE>
<CAPTION>
12/31/93 6/30/90*
TO TO
3/31/94 3/31/94
<S> <C> <C>
- -----------------------------------------------------------
The Advisors Fund L.P.**+ (8.67) 8.23
Ardsley Advisory Partners ("Ardsley
Partners") (7.26) 14.94
Hellman, Jordan Management Co. Inc.
("Hellman Jordan") (7.72) 6.35
Mark Asset Management Corporation ("Mark
Asset Management") (8.42) 12.12
Woodward & Associates Inc. ("Woodward") (9.44) N/A
Standard & Poor's 500 Composite Stock Price
Index (3.78) 9.37
- -----------------------------------------------------------
<FN>
*Class A commencement of operations.
**Class A Shares. See page 2 for additional information.
+Results include reinvestment of all distributions.
</TABLE>
The poor results of The Advisors Fund L.P. (the "Fund") over the last quarter
has prompted us to conclude that the Fund's assets must be
1
<PAGE>
realigned. While none of the portfolio managers performed well during the
first
quarter of 1994, Ardsley Partners and Mark Asset Management have added value
to
the portfolio over the longer term. We have accepted the resignation of
Woodward
as a portfolio manager of the Fund. We will closely monitor the performance of
Hellman Jordan and take such actions as we deem necessary to improve the
Fund's
performance, including removal of Hellman Jordan as a portfolio manager. We
hope
that the future return of the Fund will equal or surpass the prior long-term
performance of Ardsley Partners and Mark Asset Management.
We have spent considerable time in assessing the current market environment
both
as to risks and opportunities that may evolve over the balance of 1994. At
this
time, we believe the portfolio's overall risk/reward profile will improve by
using just two managers -- Ardsley Partners and Mark Asset Management. Both
managers have demonstrated the long term ability to successfully select
attractive growth stocks and in the short term are increasing their hedging
techniques to protect the Fund's net asset value. Both are positive on the
long
term prospects of the U.S. stock market as well as selected foreign equities.
The key in today's turbulent financial markets is to balance capital
preservation with opportunistic stock purchases that have superior growth and
earnings potential and are at favorable valuation levels. We believe both
Ardsley Partners and Mark Asset Management can well execute this challenging
mandate.
Sincerely,
Heath B. McLendon
INDIVIDUAL GENERAL PARTNER
MAY 23, 1994
**(Unaudited) Class A Shares. The numbers in the second column represent
average
annual total returns for the period indicated. The numbers shown in the
table
do not reflect the deduction of any applicable sales charge. Imposition of
the
applicable sales charge would result in a reduction of the performance
figures. All figures shown reflect reinvestment of dividends and capital
gains.
As of June 1, 1993, existing shares of the Fund were designated as Class A
shares subject to a maximum 5% front-end sales charge. Prior to June 1, 1993,
shares of the Fund now designated as Class A were subject to a maximum
front-end sales charge of 5.5%. The Fund began offering Class B shares,
subject
to a maximum contingent deferred sales charge of 5%, on June 1, 1993. The
Fund
ceased offering Class B shares to the public on September 16, 1993.
Cumulative
total return on Class B shares of the Fund for the period from June 1, 1993
through March 31, 1994 was (6.22)%. Imposition of the applicable contingent
deferred sales charge would result in a reduction of performance. Please
consult the Notes to Financial Statements for complete information on fees
and
expenses.
NOTE: All figures cited on the previous page and on the following pages
represent past performance and are not necessarily indicative of future
results. Investment return and principal value of an investment will
fluctuate
so that an investor's shares upon redemption may be worth more or less than
original cost.
2
<PAGE>
The Advisors Fund L.P.
- ------------------------------------------
PORTFOLIO HIGHLIGHTS (UNAUDITED) MARCH 31,
1994
SUMMARY OF PORTFOLIO OF INVESTMENTS
<TABLE>
<S> <C> <C> <C> <C>
COMMON STOCKS
Domestic 81.8% $85,294,712
Foreign 9.0 9,360,010
- ------------------------------------------------------------------------------
- --
Total Common Stocks 90.8% $
94,654,722
Options Purchased 2.7
2,764,253
U.S. Treasury Obligations 18.9
19,746,927
- ------------------------------------------------------------------------------
- --
Total Investments 112.4
117,165,902
- ------------------------------------------------------------------------------
- --
Other Assets and Liabilities
(Net) (6.2)
(6,460,333)
Futures Contracts 4.7
4,914,250
Put Options Written (0.1)
(108,446)
Investments Sold Short (10.8)
(11,218,638)
- ------------------------------------------------------------------------------
- --
Net Assets 100.0%
$104,292,735
- ------------------------------------------------------------------------------
- --
</TABLE>
TOP TEN HOLDINGS
<TABLE>
<CAPTION>
Percentage of
Issuer Net Assets
<S> <C>
- ------------------------------------------------------------------
U.S. TREASURY BILLS, 3.30% DUE 04/07/94 12.3%
U.S. TREASURY BILLS, 3.46% DUE 06/02/94 6.7
FORD MOTOR COMPANY 2.5
GENERAL MOTORS CORPORATION 2.3
AETNA LIFE & CASUALTY COMPANY 2.3
MICROSOFT CORPORATION 2.2
CHRYSLER CORPORATION 2.1
ORACLE SYSTEMS CORPORATION 2.0
MOTOROLA INC. 1.9
BAKER HUGHES, INC. 1.6
</TABLE>
3
<PAGE>
The Advisors Fund L.P.
- ------------------------------------------
PORTFOLIO OF INVESTMENTS (UNAUDITED) MARCH 31,
1994
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
<C> <S> <C>
-----------------------------------------------------------------------------
- --
COMMON STOCKS -- DOMESTIC -- 81.8%
FINANCIAL SERVICES -- 11.1%
45,200 Aetna Life & Casualty Company $
2,401,250
35,000 Albank Financial Corporation+
704,375
11,300 American Express Company
312,162
13,000 Citicorp
487,500
5,900 Crestar Financial Corporation
251,487
3,600 Cullen Frost Bankers, Inc.
126,000
15,000 First Interstate Bancorp
1,098,750
20,000 H & R Block, Inc.
860,000
10,400 ITT Corporation
891,800
7,000 Leader Financial Corporation+
136,500
8,000 Magna Group, Inc.
153,000
29,200 Merrill Lynch & Company, Inc.
1,087,700
6,900 Michigan National Corporation
424,350
35,000 ONBANCorp, Inc.
1,067,500
3,400 Paine Webber Group, Inc.
57,375
10,200 SFFed Corporation
175,950
4,200 UJB Financial Corporation
112,875
7,800 UNUM Corporation
411,450
8,000 UST Corporation
104,000
5,000 Wells Fargo & Company
696,875
-----------------------------------------------------------------------------
- --
11,560,899
-----------------------------------------------------------------------------
- --
COMPUTER SOFTWARE -- 10.5%
40,000 Adobe Systems, Inc.
970,000
8,300 BMC Software, Inc.+
512,525
1,000 Babbage's Inc.+
11,000
150,000 Computervision Corporation, New
656,250
13,500 Electronic Arts+
354,375
35,000 Legent Corporation+
892,500
10,560 Lotus Development Corporation+
744,480
2,100 Micrografx, Inc.+
13,650
26,900 Microsoft Corporation+
2,279,775
800 Odetics, Inc., Class A+
8,800
65,300 Oracle Systems Corporation+
2,097,763
25,000 Santa Cruz Operation Inc. +
134,375
25,000 Sierra On-Line Inc.+
593,750
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED) MARCH 31,
1994
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-----------------------------------------------------------------------------
- --
<C> <S> <C>
COMMON STOCKS -- DOMESTIC -- (CONTINUED)
COMPUTER SOFTWARE -- (CONTINUED)
1,000 Software Etc. Stores, Inc. $
11,250
14,000 Software Toolworks, Inc.+
201,250
14,000 Sybase Inc.+
630,000
54,800 Symantec Corporation+
856,250
-----------------------------------------------------------------------------
- --
10,967,993
-----------------------------------------------------------------------------
- --
COMMUNICATIONS -- 7.7%
30,417 Associated Communications Corporation,
Class B+
752,821
11,541 Cellular Communications, International+
389,509
5,596 CenCall Communications Corporation+
131,506
56,963 Comcast Corporation, Class A, Special
1,003,973
4,298 Comcast Corporation, Class A
77,901
30,000 DSC Communications Corporation+
1,507,500
58,000 General DataCommunications Industries,
Inc.+
761,250
4,551 General Instrument Corporation+
216,172
14,300 Geotek Communications, Inc.+
157,300
55,000 Intelcom Group Inc.+
921,250
7,200 Jones Intercable, Inc., Class A
102,600
10,200 MFS Communication Company, Inc.+
294,525
10,000 Nextel Communications, Inc., Class A
392,500
20,219 Pactel Corporation+
417,017
5,500 StarSight Telecast Inc.+
66,000
41,772 Tele-Communications Inc., Class A +
866,769
-----------------------------------------------------------------------------
- --
8,058,593
-----------------------------------------------------------------------------
- --
HEALTH CARE -- 7.4%
30,000 Alpha Beta Technology Inc.+
645,000
40,000 CellPro Inc.+
940,000
65,000 Centocor Inc.+
731,250
15,000 Collagen Corporation+
292,500
40,000 Cortech, Inc.+
330,000
6,500 Cytel Corporation+
39,000
32,700 Cytotherapeutics, Inc.+
339,263
25,000 HEALTHSOUTH Rehabilitation Corporation+
725,000
35,000 Herbalife International, Inc.
822,500
55,000 Liposome Company+
350,625
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED) MARCH 31,
1994
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-----------------------------------------------------------------------------
- --
<C> <S> <C>
COMMON STOCKS -- DOMESTIC -- (CONTINUED)
HEALTH CARE -- (CONTINUED)
20,008 Medical Care America, Inc.+ $
425,170
25,000 National Medical Enterprises, Inc.
403,125
42,700 Perseptive Biosystems Inc.+
1,238,300
55,000 Ribi ImmunoChemical Research, Inc.+
440,000
-----------------------------------------------------------------------------
- --
7,721,733
-----------------------------------------------------------------------------
- --
AUTOMOTIVE -- 6.9%
41,694 Chrysler Corporation
2,152,452
44,000 Ford Motor Company
2,585,000
45,000 General Motors Corporation
2,430,000
-----------------------------------------------------------------------------
- --
7,167,452
-----------------------------------------------------------------------------
- --
COMPUTERS -- 6.1%
17,047 Advanced Micro Devices, Inc.+
526,325
2,991 Apple Computer, Inc.
99,451
13,400 Cirrus Logic, Inc.+
442,200
30,000 Cisco Systems, Inc.+
1,027,500
6,700 Compaq Computer Corporation+
654,925
20,200 Convex Computer Corporation+
126,250
1,750 CyCare Systems, Inc.+
18,156
1,256 Intel Corporation
84,780
500 International Business Machines
27,250
6,700 Landmark Graphics Corporation+
165,825
19,700 Motorola Inc.
1,994,625
40,000 Quad Systems Corporation
490,000
13,000 Sequent Computer Systems Inc. +
169,000
25,000 Standard Microsystems Corporation+
403,125
6,800 Wang Labs, Inc., New+**
102,000
-----------------------------------------------------------------------------
- --
6,331,412
-----------------------------------------------------------------------------
- --
CONSUMER PRODUCTS -- 4.9%
60,000 Carter-Wallace Inc.
1,260,000
21,100 Federal Paper Board, Inc.
474,750
12,100 Fingerhut Companies, Inc.
353,925
16,500 Gillette Company, Inc.
1,043,625
6,000 Natures Sunshine Products, Inc.
87,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED) MARCH 31,
1994
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-----------------------------------------------------------------------------
- --
<C> <S> <C>
COMMON STOCKS -- DOMESTIC -- (CONTINUED)
CONSUMER PRODUCTS -- (CONTINUED)
15,500 Nike, Inc., Class B $
821,500
75,000 Stone Container Corporation
993,750
-----------------------------------------------------------------------------
- --
5,034,550
-----------------------------------------------------------------------------
- --
OIL AND GAS -- 4.1%
80,000 American Oil & Gas Corporation+
800,000
20,000 Associated Natural Gas Corporation
672,500
95,000 Baker Hughes, Inc.
1,686,250
16,600 Horsham Corporation
230,325
6,800 Oryx Energy Company
109,650
75,000 Tesoro Petroleum Corporation
768,750
-----------------------------------------------------------------------------
- --
4,267,475
-----------------------------------------------------------------------------
- --
RESTAURANTS AND HOTELS -- 3.8%
6,000 Hospitality Franchise Systems+
330,000
7,500 La Quinta Inns Inc.
212,812
57,500 Host Marriott Corporation
575,000
51,725 Marriott Corporation
1,454,766
23,000 McDonald's Corporation
1,308,125
6,300 Mirage Resorts, Inc.+
132,300
-----------------------------------------------------------------------------
- --
4,013,003
-----------------------------------------------------------------------------
- --
LEISURE AND ENTERTAINMENT -- 3.7%
35,000 Delta Queen Steamboat Company
529,375
20,535 Disney (Walt) Company
859,903
60,000 Funco Inc.+
877,500
22,000 GTECH Holdings Corporation+
786,500
2,000 Premiere Radio Networks, Inc.+
19,000
13,600 Primadonna Resorts, Inc.+
350,200
3,800 SFX Broadcasting, Inc., Class A+
48,450
10,000 Time Warner, Inc.
387,500
-----------------------------------------------------------------------------
- --
3,858,428
-----------------------------------------------------------------------------
- --
BROADCASTING AND CABLE TELEVISION -- 2.6%
34,500 Liberty Media Corporation, Class A+
707,250
32,500 Preferred Entertainment, Inc.+
788,125
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED) MARCH 31,
1994
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-----------------------------------------------------------------------------
- --
<C> <S> <C>
COMMON STOCKS -- DOMESTIC -- (CONTINUED)
BROADCASTING AND CABLE TELEVISION --
(CONTINUED)
25,040 QVC Network Inc.+ $
910,830
1,100 Scandinavian Broadcasting System SA
26,950
1,500 Viacom, Inc., Class A+
46,688
10,603 Viacom, Inc., Class B, Non-Voting+
280,980
-----------------------------------------------------------------------------
- --
2,760,823
-----------------------------------------------------------------------------
- --
HOME AND BUILDING SUPPLIES -- 2.4%
20,000 Home Depot Inc.
815,000
15,464 Kaufman & Broad Home Corporation
305,414
42,500 Lennar Corporation
1,317,500
900 Southern Energy Homes Inc.+
14,625
-----------------------------------------------------------------------------
- --
2,452,539
-----------------------------------------------------------------------------
- --
ELECTRONICS -- 1.8%
15,000 Arrow Electronics+
560,625
17,500 Best Buy Company+
1,117,812
4,100 California Microwave, Inc.+
82,000
18,300 Cobra Electronics Corporation
59,475
2,400 National Semiconductor Corporation+
50,400
2,800 TSS Ltd.+
4,025
-----------------------------------------------------------------------------
- --
1,874,337
-----------------------------------------------------------------------------
- --
TECHNOLOGY -- 1.6%
20,000 Newbridge Networks Corporation+
1,092,500
50,000 Spectrum Holobyte, Inc.
462,500
25,000 Vtel Corporation+
125,000
-----------------------------------------------------------------------------
- --
1,680,000
-----------------------------------------------------------------------------
- --
REAL ESTATE -- 1.5%
12,300 Associated Estates Realty Corporation
276,750
29,000 Equity Residential Properties Trust
873,625
8,200 JDN Realty Corporation
183,475
10,000 Spieker Properties, Inc.
208,750
-----------------------------------------------------------------------------
- --
1,542,600
-----------------------------------------------------------------------------
- --
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED) MARCH 31,
1994
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-----------------------------------------------------------------------------
- --
<C> <S> <C>
COMMON STOCKS -- DOMESTIC -- (CONTINUED)
RETAIL -- 1.2%
1,500 Barnes and Noble+ $
36,000
2,700 Friedmans Inc., Class A+
36,787
24,300 Talbots, Inc.
704,700
13,981 Toys "R" Us Inc.+
485,840
-----------------------------------------------------------------------------
- --
1,263,327
-----------------------------------------------------------------------------
- --
FOOD AND BEVERAGE -- 1.1%
27,500 Coca-Cola Company
1,117,187
1,398 Snapple Beverage Corporation+
32,504
-----------------------------------------------------------------------------
- --
1,149,691
-----------------------------------------------------------------------------
- --
MANUFACTURING -- 1.0%
661 Caterpillar Inc.
74,280
24,400 IMC Fertilizer Group, Inc.
963,800
-----------------------------------------------------------------------------
- --
1,038,080
-----------------------------------------------------------------------------
- --
CAPITAL GOODS -- 0.9%
20,000 National Gypsum Company, New
920,000
-----------------------------------------------------------------------------
- --
CONSUMER DURABLES -- 0.8%
8,073 Duracell International, Inc.
320,902
14,000 United International Holdings Inc., Class
A+
465,500
-----------------------------------------------------------------------------
- --
786,402
-----------------------------------------------------------------------------
- --
TRANSPORTATION -- 0.3%
16,000 Landstar Systems, Inc.+
360,000
-----------------------------------------------------------------------------
- --
EDUCATION -- 0.2%
20,000 Education Alternatives+
235,000
-----------------------------------------------------------------------------
- --
BASIC INDUSTRIES -- 0.1%
5,400 AK Steel Holding Corporation
126,900
-----------------------------------------------------------------------------
- --
CONSUMER SERVICES -- 0.1%
3,200 Browning-Ferris Industries, Inc.
80,800
-----------------------------------------------------------------------------
- --
PHARMACEUTICALS -- 0.0%
2,000 Circa Pharmaceuticals, Inc.
23,500
-----------------------------------------------------------------------------
- --
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED) MARCH 31,
1994
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-----------------------------------------------------------------------------
- --
<C> <S> <C>
COMMON STOCKS -- DOMESTIC -- (CONTINUED)
MINING -- 0.0%
2,600 Glamis Gold, Ltd. $
19,175
-----------------------------------------------------------------------------
- --
TOTAL COMMON STOCKS -- DOMESTIC
(Cost $79,205,008)
85,294,712
-----------------------------------------------------------------------------
- --
COMMON STOCKS -- FOREIGN -- 9.0%
MEXICO -- 4.1%
8,000 Abaco Grupo Financiero SA
24,587
185,100 Cifra SA, ADR
510,876
5,395 Coca-Cola Femsa ADR+
147,688
32,895 Grupo Televisa ADR+
1,677,645
10,500 Panamerican Beverage Inc. ADR+
363,562
25,000 Telefonos de Mexico SA, ADR+
1,506,250
-----------------------------------------------------------------------------
- --
4,230,608
-----------------------------------------------------------------------------
- --
HONG KONG -- 3.1%
1,695 Champion Technology Holdings ADR
2,712
73,000 Citic Pacific, Ltd.
204,995
2,000 Consolidated Electric Power ADR@
25,250
200,000 Dah SIng Financial Holdings+
722,096
1,000,000 Fairwood Holdings+
225,170
800,000 Giordano Holdings+
385,632
935,000 Golden Resources Development
308,540
106,000 Guangdong Investment, Ltd.
61,042
1,000,000 Hanny Magnetics Holdings, Ltd.+
375,280
25,000 Hopewell Holdings Ltd., ADR
122,500
200,000 Hutchison Whampoa
815,270
18,000 Wo Kee Hong Holdings
5,474
-----------------------------------------------------------------------------
- --
3,253,961
-----------------------------------------------------------------------------
- --
ARGENTINA -- 0.7%
20,000 Buenos Aires Embotella SA, ADR, Class B
680,000
-----------------------------------------------------------------------------
- --
GREAT BRITAIN -- 0.6%
4,400 Lasmo Plc. ADR
23,650
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED) MARCH 31,
1994
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-----------------------------------------------------------------------------
- --
<C> <S> <C>
COMMON STOCKS -- FOREIGN -- (CONTINUED)
GREAT BRITAIN -- (CONTINUED)
7,596 Vodafone Group Plc. ADR $
587,741
-----------------------------------------------------------------------------
- --
611,391
-----------------------------------------------------------------------------
- --
AUSTRALIA -- 0.4%
8,500 News Corporation Ltd. ADR, New
428,188
-----------------------------------------------------------------------------
- --
SWEDEN -- 0.1%
3,700 Ericsson LM Telecommunications Company,
ADR
155,862
-----------------------------------------------------------------------------
- --
TOTAL COMMON STOCKS -- FOREIGN
(Cost $9,228,268)
9,360,010
-----------------------------------------------------------------------------
- --
<CAPTION>
CONTRACTS
<C> <S> <C>
-----------------------------------------------------------------------------
- --
CALL OPTIONS PURCHASED -- 1.4%
41 Advanced Micro Devices, Inc., April,
$22.50
34,850
57 Advanced Micro Devices, Inc., July,
$20.00
63,413
46 American Express Company, July, $25.00
16,675
28 Apple Computer, Inc., April, $30.00
9,800
57 Apple Computer, Inc., July, $30.00
29,925
28 BankAmerica Corporation, April, $40.00
2,100
38 Blockbuster Entertainment Corporation,
April, $22.50
10,450
13 Caterpillar Inc., April, $100.00
13,345
7 Caterpillar Inc., April, $105.00
5,628
8 Caterpillar Inc., May, $90.00
15,800
37 Chemical Banking Corporation, April,
$35.00
6,706
13 Chrysler Corporation, April, $45.00
9,802
25 Chrysler Corporation, April, $50.00
7,500
13 Chrysler Corporation, April, $55.00
1,056
88 Coca-Cola Corporation, May, $35.00
47,300
23 Disney (Walt) Company, April, $35.00
16,100
3 Disney (Walt) Company, April, $40.00
750
12 Federal National Mortgage Association,
January, $80.00
6,900
356 General Motors Corporation, January,
$60.00
293,700
8 GTECH Holdings Corporation, June, $30.00
4,900
8 GTECH Holdings Corporation, September,
$30.00
5,700
30 Intel Corporation, April, $60.00
23,250
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED) MARCH 31,
1994
<TABLE>
<CAPTION>
MARKET
VALUE
CONTRACTS (NOTE 1)
-----------------------------------------------------------------------------
- --
<C> <S> <C>
CALL OPTIONS PURCHASED -- (CONTINUED)
20 Intel Corporation, April, $65.00 $
6,750
30 Intel Corporation, July, $50.00
54,375
11 Intel Corporation, July, $60.00
10,725
68 International Business Machines
Corporation, April, $50.00
33,150
310 International Business Machines
Corporation, July, $45.00
310,000
43 Lotus Development Corporation, April,
$60.00
39,775
46 Lotus Development Corporation, April,
$65.00
32,775
30 Lotus Development Corporation, April,
$70.00
10,500
24 Micron Technology, Inc., April, $75.00
22,800
10 Microsoft Corporation, July, $70.00
16,500
315 Motorola, Inc., April, $110.00
15,750
43 Motorola, Inc., July, $80.00
95,675
13 Nextell Communications, Inc., April,
$40.00
1,300
16 Nextell Communications, Inc., May, $35.00
7,600
20 Oracle Systems Corporation, June, $25.00
14,750
250 Oryx Energy Company, July, $15.00
53,125
49 Snapple Beverage Corporation, June,
$20.00
20,213
20 Vodafone Group Plc., April, $70.00
15,250
-----------------------------------------------------------------------------
- --
TOTAL CALL OPTIONS PURCHASED
(Cost $1,960,667)
1,386,663
-----------------------------------------------------------------------------
- --
PUT OPTIONS PURCHASED -- 1.3%
100 Atlantic Richfield, May, $100.00
66,250
225 Cisco Systems, Inc., April, $35.00
50,625
75 Cisco Systems, Inc., April, $37.50
29,063
8 dupont (EI) de Nemours, April, $55.00
2,000
8 dupont (EI) de Nemours, April, $60.00
5,500
300 Eastman Kodak Company, April, $45.00
45,000
160 Standard & Poor's 100 Index, April,
$410.00++
74,000
20 Standard & Poor's 100 Index, April,
$415.00++
20,580
388 Standard & Poor's 100 Index, April,
$420.00++
511,390
224 Standard & Poor's 100 Index, April,
$425.00++
302,400
140 Standard & Poor's 100 Index, April,
$430.00++
259,000
13 United States Surgical Corporation,
April, $20.00
2,844
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED) MARCH 31,
1994
<TABLE>
<CAPTION>
MARKET
VALUE
CONTRACTS (NOTE 1)
-----------------------------------------------------------------------------
- --
<C> <S> <C>
PUT OPTIONS PURCHASED -- (CONTINUED)
13 United States Surgical Corporation,
April, $25.00 $
8,938
-----------------------------------------------------------------------------
- --
TOTAL PUT OPTIONS PURCHASED
(Cost $1,109,797)
1,377,590
-----------------------------------------------------------------------------
- --
<CAPTION>
FACE VALUE
<C> <S> <C>
-----------------------------------------------------------------------------
- --
U.S. TREASURY OBLIGATIONS -- 18.9%
$ 12,830,000 U.S. Treasury Bills, 3.30%# due
04/07/94+++
12,788,237
7,000,000 U.S. Treasury Bills, 3.46%# due
06/02/94+++
6,958,690
-----------------------------------------------------------------------------
- --
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $19,746,587)
19,746,927
-----------------------------------------------------------------------------
- --
TOTAL INVESTMENTS (Cost $111,250,327*) 112.4%
117,165,902
-----------------------------------------------------------------------------
- --
<CAPTION>
CONTRACTS
<C> <S> <C>
-----------------------------------------------------------------------------
- --
FUTURES CONTRACTS -- LONG POSITION -- 4.7% (COST $4,939,660)
22 Standard & Poor's 500 Index Futures, June
1994++
4,914,250
-----------------------------------------------------------------------------
- --
CALL OPTIONS WRITTEN -- (0.0)%
(150) Cisco Systems, Inc., July, $42.50
(20,625)
(150) Cisco Systems, Inc., July, $45.00
(14,063)
(150) Oracle Systems Corporation, June, $40.00
(7,500)
-----------------------------------------------------------------------------
- --
TOTAL CALL OPTIONS WRITTEN
(Premiums received $52,972)
(42,188)
-----------------------------------------------------------------------------
- --
PUT OPTIONS WRITTEN -- (0.1)%
(140) Standard & Poor's 100 Index, April,
$390.00
(31,258)
(140) Standard & Poor's 100 Index, April,
$400.00
(35,000)
-----------------------------------------------------------------------------
- --
TOTAL PUT OPTIONS WRITTEN
(Premiums received $54,235)
(66,258)
-----------------------------------------------------------------------------
- --
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED) MARCH 31,
1994
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-----------------------------------------------------------------------------
- --
<C> <S> <C>
INVESTMENTS SOLD SHORT -- (10.8)%
(3,900) Alaska Air Group $
(57,037)
(200) Aluminum Company of America
(14,325)
(1,200) American Online
(86,400)
(12,700) Apple Computer
(412,275)
(1,600) Applied Materials, Inc.
(71,200)
(15,000) Aspect Telecommunications
(502,500)
(5,000) Au Bon Pain Inc.
(101,250)
(4,100) Bausch & Lomb
(192,700)
(500) Best Buy Company
(31,937)
(3,000) Biogen
(104,250)
(300) BMC Software
(18,525)
(15,200) Bristol Myers Squibb
(784,700)
(25,000) Broadband Technology
(518,750)
(22,500) Cheyenne Software
(579,375)
(1,100) Cisco Systems, Inc.
(37,675)
(100) CML Group
(1,662)
(9,200) Colgate-Palmolive
(532,450)
(1,300) Communication Central
(14,625)
(10,000) Cornerstone Imaging
(205,000)
(10,700) Cott Corporation
(267,500)
(2,100) Creative Technology
(54,075)
(4,300) Disney (Walt) Company
(180,063)
(2,700) Duracell
(107,325)
(1,100) Electroglas Inc.
(31,075)
(3,300) Eli Lilly & Company
(164,175)
(500) Empi Inc.
(5,750)
(3,800) General Mills
(211,375)
(1,100) Georgia-Pacific
(70,400)
(2,400) Gillette Company
(151,800)
(46,600) Glaxo Holdings Plc., ADR
(832,975)
(60,000) Greenwich Pharmaceuticals
(63,750)
(1,100) Hilton Hotels Corporation
(62,700)
(1,100) Hospitality Franchise Systems
(60,500)
(10,000) Insurance Auto Auctions
(277,500)
(3,200) Kellogg Company
(163,200)
(1,700) Legent Corporation
(43,350)
(2,100) Lotus Development Corporation
(148,050)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED) MARCH 31,
1994
<TABLE>
<CAPTION>
MARKET
VALUE
SHARES (NOTE 1)
-----------------------------------------------------------------------------
- --
<C> <S> <C>
INVESTMENTS SOLD SHORT -- (CONTINUED)
(10,000) Macromedia Inc. $
(150,000)
(3,200) Madge N.V.
(45,600)
(6,400) Marion Merrell Dow
(107,200)
(9,400) Merck & Company
(279,650)
(9,600) Mylan Lab
(168,000)
(15,000) Netframe Systems Inc.
(225,000)
(6,000) Nike Inc.
(318,000)
(4,600) Octel Communications Corporation
(116,150)
(2,900) Oxford Health Plans
(159,863)
(7,500) Perrigo Company
(168,750)
(3,800) Pfizer Inc.
(205,200)
(25,000) Picturetel Corporation
(343,750)
(10,300) Price/Costco Inc.
(186,688)
(1,100) Promus Company
(43,313)
(1,600) Pyxis Corporation
(42,000)
(300) Rubbermaid Inc.
(8,175)
(1,900) Scitex Corporation
(48,212)
(3,200) Sun Microsystems
(87,600)
(15,000) Synopsys Inc.
(656,250)
(15,500) Syntex Corporation
(215,063)
(2,100) U.S. Healthcare Systems
(86,100)
(5,500) Wellfleet Communications
(387,750)
(500) Zenith Laboratories
(8,125)
-----------------------------------------------------------------------------
- --
TOTAL INVESTMENTS SOLD SHORT
(Contract amount $12,451,261)
(11,218,638)
-----------------------------------------------------------------------------
- --
OTHER ASSETS AND LIABILITIES (NET) (6.2)%
(6,460,333)
-----------------------------------------------------------------------------
- --
NET ASSETS 100.0%
$104,292,735
-----------------------------------------------------------------------------
- --
<FN>
*Aggregate cost for Federal tax purposes.
**When-issued security (see Note 1).
+Non-income producing securities.
++In the case of exercise, settlement is made in cash.
+++U.S. Treasury Bills aggregating $19,746,927 have been pledged to
collateralize futures contracts, written options and short investment
positions in accordance with the Fund's Prospectus.
#Annualized yield to maturity.
@Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration
to qualified institutional buyers.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
The Advisors Fund L.P.
- ---------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) MARCH 31,
1994
<TABLE>
<S> <C> <C>
ASSETS:
Investments, at value (Cost
$111,250,327) (Note 1)
See accompanying schedule $117,165,902
Cash 122,183
Receivable for investment securities
sold 20,353,779
Receivable for short sales 12,451,261
Financial futures contracts -- long
position, at value
(Cost $4,939,660) (Note 1)
See accompanying schedule 4,914,250
Unamortized organization costs (Note 6) 194,008
Interest and dividends receivable 105,746
Other assets 960
- ----------------------------------------------------------------------------
TOTAL ASSETS 155,308,089
- ----------------------------------------------------------------------------
LIABILITIES:
Notes payable (Note 7) $29,905,807
Investments sold short, at value
(Contract amount $12,451,261) (Note
1)
See accompanying schedule 11,218,638
Aggregate exercise cost of futures --
long position 4,939,660
Payable for investment securities
purchased 4,133,762
Payable for shares redeemed 535,206
Put options written, at value (Premiums
received $54,235)
(Note 1) See accompanying schedule 66,258
Call options written, at value
(Premiums received $52,972)
(Note 1) See accompanying schedule 42,188
Administration fee payable (Note 2) 24,283
Service fees payable (Note 3) 24,283
Custodian fees payable (Note 2) 19,034
Transfer agent fees payable (Note 2) 7,500
Distribution fee payable (Note 3) 2,408
Accrued expenses and other payables 96,327
- ----------------------------------------------------------------------------
TOTAL LIABILITIES 51,015,354
- ----------------------------------------------------------------------------
NET ASSETS $104,292,735
- ----------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------- MARCH 31,
1994
<TABLE>
<S> <C> <C>
SHARES represented by:
Individual General Partners 79,370
Shareholders 4,012,447
- ----------------------------------------------------------------------------
Total Shares 4,091,817
- ----------------------------------------------------------------------------
NET ASSETS consist of:
Accumulated net investment loss $ (7,806,797)
Accumulated net realized gain on
securities transactions, foreign
currency transactions, futures
contracts, written options and
investments sold short 45,522,657
Net unrealized appreciation of
securities, futures contracts,
written
options and short positions 7,121,549
Paid-in Capital 59,455,326
- ----------------------------------------------------------------------------
TOTAL NET ASSETS $104,292,735
- ----------------------------------------------------------------------------
NET ASSET VALUE
CLASS A SHARES:
NET ASSET VALUE and redemption price per share
($100,861,044 DIVIDED BY 3,956,360 shares outstanding) $25.49
- ----------------------------------------------------------------------------
MAXIMUM OFFERING PRICE PER SHARE ($25.49 DIVIDED BY
0.95) (based
on sales charge of 5% of the offering price at March
31, 1994) $26.83
- ----------------------------------------------------------------------------
CLASS B SHARES:
NET ASSET VALUE and offering price per share+
($3,431,691 DIVIDED BY 135,457 shares outstanding) $25.33
- ----------------------------------------------------------------------------
<FN>
+Redemption price per share is equal to Net Asset Value less any applicable
contingent deferred sales charge. The Fund ceased selling Class B shares on
September 16, 1993.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
The Advisors Fund L.P.
- ---------------------------------------------------------------------------
STATEMENT OF OPERATIONS (UNAUDITED)
- -------------------------------------------------------------
FOR THE THREE MONTHS ENDED MARCH 31,
1994
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends $
218,445
Interest
216,542
- ------------------------------------------------------------------------------
- -------
TOTAL INVESTMENT INCOME
434,987
- ------------------------------------------------------------------------------
- -------
EXPENSES:
Investment advisory fee (Note 2) $ 153,577
Administration fee (Note 2) 75,400
Service fees (Note 3) 75,400
Amortization of organization costs (Note 6) 38,010
Custodian fees (Note 2) 34,804
Legal and audit fees 23,343
Transfer agent fees (Note 2) 19,732
Individual General Partners' fees and expenses
(Note 2) 18,282
Distribution fee (Note 3) 7,376
Other 54,937
- ------------------------------------------------------------------------------
- -------
TOTAL OPERATING EXPENSES BEFORE INTEREST
EXPENSE
500,861
INTEREST EXPENSE (NOTE 7)
257,175
- ------------------------------------------------------------------------------
- -------
TOTAL EXPENSES
758,036
- ------------------------------------------------------------------------------
- -------
NET INVESTMENT LOSS
(323,049)
- ------------------------------------------------------------------------------
- -------
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS (NOTES 1 AND 4):
Net realized gain/(loss) on:
Securities transactions 8,252,541
Written options (119,200)
Futures contracts (698,337)
Investments sold short (422,289)
Foreign currency transactions (171,754)
- ------------------------------------------------------------------------------
- -------
Net realized gain on investments during the period
6,840,961
- ------------------------------------------------------------------------------
- -------
Net change in unrealized
appreciation/(depreciation) of:
Securities (17,729,357)
Written options (81,912)
Futures contracts (24,458)
Investments sold short 1,250,036
- ------------------------------------------------------------------------------
- -------
Net unrealized depreciation of investments during the period
(16,585,691 )
- ------------------------------------------------------------------------------
- -------
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS
(9,744,730 )
- ------------------------------------------------------------------------------
- -------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS
$(10,067,779)
- ------------------------------------------------------------------------------
- -------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
The Advisors Fund L.P.
- ---------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR
ENDED
THREE MONTHS
12/31/93
ENDED
3/31/94
(UNAUDITED)
<S> <C>
<C>
Net investment loss $ (323,049)
$ (3,376,413)
Net realized gain on securities, written options,
futures contracts, investments sold short and foreign
currency transactions
during the period 6,840,961
12,030,444
Net unrealized depreciation of securities, written
options, futures contracts and investments sold short
during the period (16,585,691)
(2,284,561)
- ------------------------------------------------------------------------------
- -------
Net increase/(decrease) in net assets resulting from
operations (10,067,779)
6,369,470
Net increase/(decrease) in net assets from:
Class A share transactions (Note 5) (15,835,863)
(24,034,146)
Class B share transactions (Note 5) (378,446)
4,004,568
- ------------------------------------------------------------------------------
- -------
Net decrease in net assets (26,282,088)
(13,660,108)
NET ASSETS:
Beginning of period 130,574,823
144,234,931
- ------------------------------------------------------------------------------
- -------
End of period (including accumulated net investment
loss of $7,806,797 and $7,483,748, respectively) $104,292,735
$130,574,823
- ------------------------------------------------------------------------------
- -------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
The Advisors Fund L.P.
- --------------------------------------------------------------------
STATEMENT OF CASH FLOWS (UNAUDITED)
- -------------------------------------------------------------
FOR THE THREE MONTHS ENDED MARCH 31,
1994
<TABLE>
<S> <C> <C>
NET DECREASE IN CASH:
Cash flows from operating activities:
Interest received $ 316,885
Dividends received 218,757
Operating expenses paid (653,803)
Interest expense (257,175)
- ------------------------------------------------------------------------------
- -
Net cash used in operating activities $
(375,336)
- ------------------------------------------------------------------------------
- -
Cash flows from investing activities:
Decrease in short-term portfolio
securities, net 4,297,271
Purchase of investment securities and
purchased options (105,190,862)
Proceeds from disposition of investment
securities and purchased options
transactions 92,649,481
Net proceeds used to close short sales
and written option transactions (482,455)
Net proceeds from futures transactions (698,337)
- ------------------------------------------------------------------------------
- -
Net cash used in investing activities
(9,424,902)
- ------------------------------------------------------------------------------
- -
NET CASH USED IN OPERATING AND INVESTING
ACTIVITIES
(9,800,238)
- ------------------------------------------------------------------------------
- -
Cash flows from financing activities:
Proceeds from shares sold
Class A 179,287
Payments on shares redeemed
Class A (15,514,832)
Class B (378,446)
Increase in loans outstanding 25,304,001
- ------------------------------------------------------------------------------
- -
NET CASH PROVIDED BY FINANCING ACTIVITIES
9,590,010
- ------------------------------------------------------------------------------
- -
NET DECREASE IN CASH
(210,228)
CASH -- BEGINNING OF PERIOD
332,411
- ------------------------------------------------------------------------------
- -
CASH -- END OF PERIOD $
122,183
- ------------------------------------------------------------------------------
- -
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
STATEMENT OF CASH FLOWS (UNAUDITED) (CONTINUED)
- -------------------------------------------------------------
FOR THE THREE MONTHS ENDED MARCH 31,
1994
<TABLE>
<S> <C> <C>
RECONCILIATION OF NET DECREASE IN NET ASSETS FROM OPERATIONS
TO CASH USED IN OPERATING AND INVESTING ACTIVITIES:
Net decrease in net assets resulting from
operations $
(10,067,779)
Decrease in investments $ 18,823,275
Decrease in futures contracts 24,458
Increase in securities sold short and
written options 7,602,272
Decrease in receivable for investment
securities sold and short sales (28,013,503)
Increase in payable for investment
securities purchased 1,883,326
Decrease in dividends and interest
receivable 100,655
Decrease in other assets 52,737
Decrease in accrued expenses (205,679)
- ------------------------------------------------------------------------------
- -
TOTAL ADJUSTMENTS
267,541
- ------------------------------------------------------------------------------
- -
NET CASH USED IN OPERATING AND INVESTING
ACTIVITIES $
(9,800,238)
- ------------------------------------------------------------------------------
- -
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE>
The Advisors Fund L.P.
- ---------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A CLASS A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
THREE MONTHS
ENDED YEAR
YEAR YEAR
3/31/94++ ENDED
ENDED ENDED PERIOD ENDED
(UNAUDITED) 12/31/93++
12/31/92++ 12/31/91 12/31/90*
<S> <C> <C>
<C> <C> <C>
Net Asset Value, beginning of period $ 27.91 $ 26.63 $
24.04 $ 17.51 $ 18.90
- ------------------------------------------------------------------------------
- -------
Investment income from operations:
Net investment loss $ (0.07) $ (0.66) $
(0.24) $ (0.37) $ (0.03)
Net realized and unrealized gain/(loss) on
investments (2.35) 1.94
2.83 6.90 (1.36)
- ------------------------------------------------------------------------------
- -------
Total from investment operations (2.42) 1.28
2.59 6.53 (1.39)
- ------------------------------------------------------------------------------
- -------
Net Asset Value, end of period $ 25.49 $ 27.91 $
26.63 $ 24.04 $ 17.51
- ------------------------------------------------------------------------------
- -------
Total return+++ (8.67)% 4.81%
10.77% 37.29% (7.35)%
- ------------------------------------------------------------------------------
- -------
Ratios to average net assets/ supplemental
data:
Net assets, end of period (000's) $ 100,861 $ 126,428 $
144,235 $ 158,522 $ 140,447
Ratio of expenses to average net assets** 2.49%+ 4.54%
3.12% 3.86% 3.27%+
Ratio of net investment loss to average net
assets (1.05)%+ (2.45)%
(1.00)% (1.60)% (0.31)%+
Portfolio turnover rate 86% 247%
312% 304% 149%
- ------------------------------------------------------------------------------
- -------
<FN>
*The Fund commenced operations on June 28, 1990.
**The annualized operating expense ratio includes interest expense. The
annualized ratio excluding interest expense was 1.64% for the three months
ended March 31, 1994, and was 3.54%, 2.28%, 3.60% and 2.99% for the years
ended December 31, 1993, 1992, and 1991 and for the period ended December
31,
1990, respectively.
+Annualized.
++Per share amounts have been calculated using the monthly average share
method
which more appropriately presents the per share data as the undistributed
income method does not accord with results of operations for these periods.
+++Total return represents aggregate total return for the periods indicated
and
does not reflect any applicable sales charges.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE>
The Advisors Fund L.P.
- ------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A CLASS B SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
THREE
MONTHS
ENDED PERIOD
3/31/94++ ENDED
(UNAUDITED) 12/31/93*++
<S> <C> <C>
Net Asset Value, beginning of period $ 27.80 $ 27.01
- --------------------------------------------------------------
Investment income from operations:
Net investment loss $ (0.12) $ (0.53)
Net realized and unrealized
gain/(loss) on investments (2.35) 1.32
- --------------------------------------------------------------
Total from investment operations (2.47) 0.79
Net Asset Value, end of period $ 25.33 $ 27.80
- --------------------------------------------------------------
Total return+++ (8.88)% 2.92%
- --------------------------------------------------------------
Ratios to average net
assets/supplemental data:
Net assets, end of period (000's) $ 3,432 $ 4,147
Ratio of expenses to average net
assets** 3.24%+ 5.29%+
Ratio of net investment loss to
average net assets (1.80)%+ (3.20)%+
Portfolio turnover rate 86% 247%
- --------------------------------------------------------------
<FN>
*The Fund commenced selling Class B shares on June 1, 1993. The Fund ceased
all
sales of Class B shares on September 16, 1993.
**The annualized operating expense ratio includes interest expense. The
annualized ratio excluding interest expense was 2.39% and 4.29% for the
periods ended March 31, 1994 and December 31, 1993, respectively.
+Annualized.
++Per share amounts have been calculated using the monthly average share
method
which more appropriately presents the per share data as the undistributed
income method does not accord with results of operations for these periods.
+++Total return represents aggregate total return for the periods indicated
and
does not reflect any applicable sales charges.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE>
The Advisors Fund L.P.
- ---------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
The Advisors Fund L.P. (the "Fund") is registered under the Investment Company
Act of 1940, as amended (the "1940 Act"), as an open-end, non-diversified
management investment company established as a limited partnership under
Delaware law. The Fund issues shares of limited partnership interest and is
governed by a board of Individual General Partners in lieu of a corporate
board
of directors. The Fund commenced operations on June 28, 1990. As of June 1,
1993, the Fund offered two classes of shares to the general public: Class A
shares and Class B shares. As of September 16, 1993, the Fund ceased all sales
of Class B shares of the Fund. Class A shares are sold with a front-end sales
charge. Class B shares may be subject to a contingent deferred sales charge
("CDSC") at the time of redemption. Class B shares will automatically convert
to
Class A shares eight years after the original purchase date. Each class of
shares has identical rights and privileges except with respect to the effect
of
the respective sales charges, the distribution and/or service fees borne by
each
class, expenses allocable exclusively to each class, voting rights on matters
affecting a single class, the exchange privilege of each class and the
conversion feature of Class B shares. The policies described below are
followed
consistently by the Fund in the preparation of its financial statements in
conformity with generally accepted accounting principles.
PORTFOLIO VALUATION: The Fund's investments are valued at market value or, in
the absence of a market value with respect to any investment, at fair market
value as determined by or under the direction of the Individual General
Partners. A security that is primarily traded on a United States or foreign
exchange is valued by reference to the last sale price on the exchange or, if
no
sales occur during the day, at the current quoted bid price. Over-the-counter
securities are valued on the basis of the bid price at the close of business
each day. Debt securities (other than U.S. government securities and short-
term
obligations) are valued by The Boston Company Advisors, Inc. ("Boston
Advisors"), after consultation with independent valuation services approved by
the Individual General Partners. Investments in U.S. government securities
(other than short-term securities) are valued at the average of the quoted bid
and asked prices in the over-the-counter market. Options are generally valued
at
the last sale price or, in the absence of a last sale price, the last bid
price.
The value of a futures contract equals the
24
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
unrealized gain or loss on the contract that is determined by marking it to
the
current settlement price for a like contract acquired on the day on which the
futures contract is being valued. A settlement price may not be used if the
market makes a limit move with respect to a particular commodity. Forward
contracts and futures contracts, when no market quote is available, are valued
at their fair market value as determined by the Individual General Partners,
upon consultation with their agents. Short-term investments that mature in 60
days or less are valued at amortized cost.
OPTIONS: Upon the purchase of a put option or a call option by the Fund, the
premium paid is recorded as an investment, the value of which is
marked-to-market daily. When a purchased option expires, the Fund will realize
a
loss in the amount of the cost of the option. When the Fund enters into a
closing sale transaction, the Fund will realize a gain or loss depending on
whether the sales proceeds from the closing sale transaction are greater or
less
than the cost of the option. When the Fund exercises a put option, the
proceeds
from such sale will be decreased by the premium originally paid. When the Fund
exercises a call option, the cost of the security which the Fund purchases
upon
exercise will be increased by the premium originally paid. When purchased
index
options are exercised, settlement is made in cash.
When the Fund writes a call option or a put option, an amount equal to the
premium received by the Fund is recorded as a liability, the value of which is
marked-to-market daily. When a written option expires, the Fund realizes a
gain
equal to the amount of the premium received. When the Fund enters into a
closing
purchase transaction, the Fund realizes a gain (or loss if the cost of the
closing purchase transaction exceeds the premium received when the option was
sold) without regard to any unrealized gain or loss on the underlying security
or index, and the liability related to such option is eliminated. When a call
option is exercised, the Fund realizes a gain or loss from the sale of the
underlying security and the proceeds from such sale are increased by the
premium
originally received. When a put option is exercised, the amount of the premium
originally received will reduce the cost of the security which the Fund
purchased upon exercise. When written index options are exercised, settlement
is
made in cash.
25
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The risk associated with purchasing options is limited to the premium
originally
paid. The risk in writing a call option is that the Fund may forego the
opportunity of profit if the market value of the underlying security or index
increases and the option is exercised. The risk in writing a put option is
that
the Fund may incur a loss if the market value of the underlying security or
index decreases and the option is exercised. In addition, there is the risk
the
Fund may not be able to enter into a closing transaction because of an
illiquid
secondary market.
FUTURES CONTRACTS: Upon entering into a futures contract, the Fund is required
to deposit with the broker an amount of cash or cash equivalents equal to a
certain percentage of the contract amount. This is known as the "initial
margin." Subsequent payments ("variation margin") are made or received by the
Fund each day, depending on the daily fluctuation of the value of the
contract.
For financial statement purposes, an amount equal to the settlement amount of
the contract is included in the Fund's Statement of Assets and Liabilities as
an
asset and as an equivalent liability. For long futures positions, the asset is
marked-to-market daily. For short futures positions, the liability is marked-
to-market daily. The daily changes in the contract are recorded as unrealized
gains or losses. The Fund recognizes a realized gain or loss when the contract
is closed.
There are several risks in connection with the use of futures contracts as a
hedging device. The change in value of futures contracts primarily corresponds
with the value of their underlying instruments or index, which may not
correlate
with the change in value of the hedged investments. In addition, there is the
risk that the Fund may not be able to enter into a closing transaction because
of an illiquid secondary market.
FOREIGN CURRENCY: The books and records of the Fund are maintained in United
States dollars. Foreign currencies, investments and other assets and
liabilities
are translated into U.S. dollars at the exchange rates prevailing at the end
of
each business day, and purchases and sales of investment securities, income
and
expenses are translated on the respective dates of such transactions. Net
realized foreign currency gains and losses resulting from changes in exchange
rates include foreign currency gains and losses on
26
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
foreign currency transactions and the difference between the amounts of
interest
and dividends recorded on the books of the Fund and the amount actually
received. The portion of foreign currency gains and losses related to
fluctuation in exchange rates between the initial purchase trade date and
subsequent sale trade date is included in realized gains and losses on
investment securities sold.
FORWARD FOREIGN CURRENCY CONTRACTS: Forward foreign currency contracts are
valued at the forward rate and are marked-to-market daily. The change in
market
value is recorded by the Fund as an unrealized gain or loss. When the contract
is closed, the Fund records a realized gain or loss equal to the difference
between the value of the contract at the time it was opened and the value at
the
time it was closed.
The use of forward foreign currency contracts does not eliminate fluctuations
in
the underlying prices of the Fund's portfolio securities, but it does
establish
a rate of exchange that can be achieved in the future. Although forward
foreign
currency contracts limit the risk of loss due to a decline in the value of the
currency holdings, they also limit any potential gain that might result should
the value of the currency increase. In addition, the Fund could be exposed to
risks if the counterparties to the contracts are unable to meet the terms of
the
contracts.
SHORT SALES: A short sale is a transaction in which the Fund sells securities
it
does not own (but has borrowed) in anticipation of a decline in the market
price
of the securities. To complete a short sale, the Fund must arrange through a
broker to borrow the securities to be delivered to the buyer. The proceeds
received by the Fund from the short sale are retained by the broker until the
Fund replaces the borrowed securities. In borrowing the securities to be
delivered to the buyer, the Fund becomes obligated to replace the securities
borrowed at their market price at the time of replacement, whatever that price
may be.
Possible losses from short sales differ from losses that could be incurred
from
a purchase of a security, because losses from short sales may be unlimited,
whereas losses from purchases can equal only the total amount invested.
27
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded as of the trade date. Securities purchased or sold on a when-issued
or
delayed-delivery basis may be settled a month or more after the trade date.
Interest income is not accrued until settlement date. The Fund instructs the
custodian to segregate assets in a separate account with a current value at
least equal to the amount of its when-issued purchased commitments. Realized
gains and losses from securities sold are recorded on the identified cost
basis.
Dividend income is recorded on the ex-dividend date. Interest income is
recorded
on the accrual basis. Investment income and realized and unrealized gains and
losses are allocated based upon relative net assets of each class. The Fund
must
pay any dividends or interest payable on securities while those securities are
in short position. During the quarter ended March 31, 1994, the Fund paid, as
an
offset to dividend income, dividends totalling $22,601 on securities that were
in short positions.
DISTRIBUTIONS TO SHAREHOLDERS: The Fund intends to make distributions to
shareholders in such amounts and at such times as the Individual General
Partners, in their sole discretion, shall determine.
FEDERAL INCOME TAXES: No Federal income tax provision has been made in the
financial statements because the Fund intends to qualify as a partnership for
Federal income tax purposes. The Fund will only be treated as a partnership
for
Federal income tax purposes through 1997.
DISSOLUTION OF FUND: The term of the Fund shall expire on December 31, 2037,
unless earlier dissolved.
CASH FLOW INFORMATION: The Fund issues and redeems its shares and invests in
securities as reported in the Statement of Changes in Net Assets. Information
on
cash payments is presented in the Statement of Cash Flows. Accounting
practices
that do not affect reporting activity on a cash basis include unrealized gain
or
loss on investment securities. In addition, cash flows on futures and option
contracts are included in the same category as the cash flows for items being
hedged.
28
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
REPURCHASE AGREEMENTS: The Fund may engage in repurchase agreement
transactions.
Under the terms of a typical repurchase agreement, the Fund takes possession
of
an underlying debt obligation subject to an obligation of the seller to
repurchase, and the Fund to resell, the obligation at an agreed upon price and
time, thereby determining the yield during the Fund's holding period. This
arrangement results in a fixed rate of return that is not subject to market
fluctuations during the Fund's holding period. The value of the collateral is
at
least equal at all times to the total amount of the repurchase obligations,
including interest. In the event of counterparty default, the Fund has the
right
to use the collateral to offset losses incurred. There is potential loss to
the
Fund in the event the Fund delayed or was prevented from exercising its rights
to dispose of the collateral securities including the risk of a possible
decline
in the value of the underlying securities during the period while the Fund
seeks
to assert its rights. The Fund's investment adviser or sub-investment adviser,
acting under the supervision of the Individual General Partners, reviews the
value of the collateral and the creditworthiness of those banks and dealers
with
which the Fund enters into repurchase agreements to evaluate potential risks.
2. INVESTMENT ADVISORY FEE, PORTFOLIO MANAGEMENT FEES,
ADMINISTRATION FEE AND OTHER TRANSACTIONS
Smith Barney Shearson Strategy Advisors Inc. ("SBSSA"), a wholly-owned
subsidiary of Smith Barney Advisers, Inc., which is controlled by Smith Barney
Shearson Holdings Inc. ("Holdings"), serves as the Fund's investment adviser.
Holdings is a wholly owned subsidiary of The Travelers Inc. The Fund pays
SBSSA
a fee adjusted to reflect the Fund's performance of its Class B shares. This
monthly performance adjustment is based upon the performance of the Class B
shares, after deducting all expenses, including the investment advisory fee,
relative to the performance of the Standard & Poor's 500 Composite Stock Price
Index (the "S&P 500") on a rolling twelve month basis. The investment advisory
fee paid to SBSSA can range on an annual basis from 0% to 4.00% of the value
of
the Fund's average daily net assets. For the quarter ended March 31, 1994, the
effective rate was .51% for the Fund.
The Fund and SBSSA have entered into portfolio management agreements
("Portfolio
Management Agreements") with various portfolio managers (collectively, the
"Portfolio Managers"). The Fund's current Portfolio Managers
29
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
are as follows: Ardsley Advisory Partners; Hellman, Jordan Management Co.,
Inc.;
Mark Asset Management Corporation; and Woodward & Associates Inc.
("Woodward").
SBSSA pays each Portfolio Manager a monthly management fee based upon the
Portfolio Manager's performance compared to the performance of the S&P 500 on
a
rolling twelve month basis. The Fund pays no direct investment advisory fee to
any of the Portfolio Managers.
Tremont Partners, Inc. ("Tremont") assists SBSSA in monitoring and evaluating
the performance of the Portfolio Managers pursuant to a consulting agreement
among the Fund, SBSSA and Tremont. SBSSA pays Tremont a fee for its services
equal to 0.20% of any investment advisory fee retained by SBSSA. The Fund pays
no direct fees to Tremont.
The Fund has also entered into an administration agreement (the
"Administration
Agreement") with Boston Advisors, an indirect wholly owned subsidiary of
Mellon
Bank Corporation ("Mellon"). Under the Administration Agreement, Boston
Advisors
is paid a fee computed and paid monthly at the annual rate of 0.25% of the
value
of the Fund's average daily net assets.
For the quarter ended March 31, 1994, the Fund incurred total brokerage
commissions on portfolio transactions of $331,710, of which $2,683 was paid to
Smith Barney Shearson, Inc. ("Smith Barney Shearson").
For the quarter ended March 31, 1994, Smith Barney Shearson received from
investors $35,544 representing commissions (sales charges) on sales of Class A
shares.
A CDSC is generally payable by a shareholder in connection with the redemption
of Class B shares within five years after the date of purchase. In
circumstances
in which the charge is imposed, the amount of the charge ranges between 5% and
1% of net asset value depending on the number of years since the date of
purchase. For the quarter ended March 31, 1994, Smith Barney Shearson received
no compensation from investors in CDSCs on the redemption of Class B shares.
30
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
No officer, director or employee of Smith Barney Shearson, SBSSA, the
Portfolio
Managers, Boston Advisors, Tremont or any of their affiliates received any
compensation from the Fund for serving as an Individual General Partner. The
Fund pays each Individual General Partner who is not an officer, director or
employee of Smith Barney Shearson, SBSSA, the Portfolio Managers, Boston
Advisors, Tremont or any of their affiliates, a fee of $15,000 per annum plus
$1,000 per meeting attended, and reimburses each such Individual General
Partner
for travel and out-of-pocket expenses.
Boston Safe Deposit and Trust Company, an indirect wholly owned subsidiary of
Mellon, serves as the Fund's custodian. The Shareholder Services Group, Inc.,
a
subsidiary of First Data Corporation, serves as the Fund's transfer agent.
3. DISTRIBUTION AGREEMENT
Smith Barney Shearson acts as distributor of the Fund's shares pursuant to a
distribution agreement with the Fund, and sells shares of the Fund through
Smith
Barney Shearson or its affiliates.
Pursuant to Rule 12b-1 under the 1940 Act, the Fund has adopted a Services and
Distribution Plan (the "Plan"). Under this Plan, the Fund compensates Smith
Barney Shearson for servicing accounts for Class A and Class B shareholders.
Smith Barney Shearson is paid an annual service fee with respect to Class A
and
Class B shares of the Fund at the rate of 0.25% of the value of the average
daily net assets of each respective class of shares. Smith Barney Shearson is
also paid an annual distribution fee with respect to Class B shares at the
rate
of 0.75% of the value of the average daily net assets attributable to those
shares. For the quarter ended March 31, 1994, the Fund incurred $72,941 and
$2,459 in service fees for Class A and Class B shares, respectively. For the
quarter ended March 31, 1994, the Fund incurred $7,376 in distribution fees
for
Class B shares.
4. PURCHASES AND SALES OF INVESTMENTS
Purchases and proceeds from sales of securities, excluding U.S. government
securities and short-term obligations, during the quarter ended March 31,
1994,
were $96,920,331 and $102,356,262, respectively.
31
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Written option activity for the quarter ended March 31, 1994 was as follows:
<TABLE>
<CAPTION>
Number of
Premiums Contracts
<S> <C> <C>
- ------------------------------------------------------------------------------
Options outstanding at December 31, 1993 $ 83,173 400
Options written during the period 322,721 2,155
Options cancelled in closing purchase transactions (298,687) (1,825)
- ------------------------------------------------------------------------------
Options outstanding at March 31, 1994 $ 107,207 730
- ------------------------------------------------------------------------------
</TABLE>
At March 31, 1994, aggregate gross unrealized appreciation of all securities
in
which there was an excess of value over tax cost was $14,188,499, and
aggregate
gross unrealized depreciation for all securities in which there was an excess
of
tax cost over value was $8,272,924.
5. SHARES OF PARTNERSHIP INTEREST
The Fund has authorized and may issue an unlimited number of shares, divided
into two classes, Class A and Class B. As of September 16, 1993, the Fund
ceased
all sales of Class B shares of the Fund. The Individual General Partners of
the
Fund reserve the right in their sole discretion to offer Class B shares of the
Fund for purchase in the future.
32
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Changes in shares outstanding for the Fund were as follows:
<TABLE>
<CAPTION>
QUARTER ENDED
YEAR ENDED
3/31/94
12/31/93
CLASS A SHARES: Shares Amount Shares
Amount
<S> <C> <C> <C>
<C>
- ------------------------------------------------------------------------------
- -------
Sold 6,358 $ 179,287
266,743 $ 7,199,559
Redeemed (579,312) (16,015,150)
(1,154,680) (31,233,705)
- ------------------------------------------------------------------------------
- -------
Net decrease (572,954) $(15,835,863)
(887,937) $(24,034,146)
- ------------------------------------------------------------------------------
- -------
<CAPTION>
QUARTER ENDED
PERIOD ENDED
3/31/94
12/31/93*
CLASS B SHARES: Shares Amount Shares
Amount
<S> <C> <C> <C>
<C>
- ------------------------------------------------------------------------------
- -------
Sold 0 0
151,161 $ 4,058,038
Redeemed (13,730) $ (378,446)
(1,974) (53,470)
- ------------------------------------------------------------------------------
- -------
Net increase/(decrease) (13,730) $ (378,446)
149,187 $ 4,004,568
- ------------------------------------------------------------------------------
- -------
<FN>
*The Fund commenced selling Class B shares on June 1, 1993. Any shares
outstanding prior to June 1, 1993 have been designated as Class A shares.
</TABLE>
6. ORGANIZATION COSTS
All costs incurred in connection with the organization of the Fund, including
the fees and expenses of registering and qualifying its shares for
distribution
under Federal and state securities regulations, are being amortized on the
straight-line method over a period of sixty months from June 28, 1990, the
date
that the Fund commenced operations. In the event that any of the initial
shares
of the Fund are redeemed during such amortization period, the Fund will be
reimbursed for any unamortized organization costs in the same proportion as
the
number of shares redeemed bears to the number of initial shares outstanding at
the time of redemption.
7. NOTES PAYABLE
The Fund has a line of credit agreement (the "Agreement") provided by
Continental Bank N.A. primarily for the purpose of allowing the Fund to
leverage
investments. Under this Agreement, the Fund may borrow up to the lesser of $50
million or 25% of its adjusted net assets. Interest is payable either at the
bank's Money Market Rate or the London Interbank Offered Rate (LIBOR) plus a
percentage ranging from 0.375% to 1.250% based on
33
<PAGE>
The Advisors Fund L.P.
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
the aggregate loan outstanding balance on an annualized basis. The Fund is
charged a commitment fee equal to 0.25% per annum of the credit available
under
the Agreement. The Fund is required to maintain a ratio of net assets to
aggregate amount of indebtedness of no less than 3 to 1. At March 31, 1994,
the
Fund had outstanding borrowings of $29,905,807. During the quarter ended March
31, 1994, the Fund had an average outstanding daily balance of $5,542,857 with
interest rates ranging from 3.313% to 5.750%. Interest expense totalled
$257,175
for the quarter ended March 31, 1994.
8. SUBSEQUENT EVENT
On April 18, 1994, Woodward notified the Fund and SBSSA of its intent to
terminate the Portfolio Management Agreement dated July 30, 1993 among SBSSA,
Woodward and the Fund. Pursuant to the Agreement, the termination is effective
90 days from notification. The Fund and SBSSA, however, have waived the
notification period set forth in the Agreement and the termination was
effective
as of the close of business on May 13, 1994. All of the Fund's assets
currently
managed by Woodward have been reallocated for management proportionately among
the Fund's remaining portfolio managers.
34
<PAGE>
The Advisors Fund L.P.
- ---------------------------------------------------------------------------
OATH OF THE COMMODITY POOL OPERATORS MAY 23,
1994
UNDER REGULATION 4.22(H)(I)
The undersigned hereby certify that, to the best of their knowledge and
belief,
the information contained in The Advisors Fund L.P. Quarterly Report dated
March
31, 1994 was accurate and complete as of the date thereof.
Richard P. Roelofs Heath B. McLendon, CPO
Chief Executive Officer THE ADVISORS FUND L.P.
SMITH BARNEY SHEARSON STRATEGY ADVISERS
INC.
35
<PAGE>
The Advisors Fund L.P.
- ---------------------------------------------------------------------------
PARTICIPANTS
DISTRIBUTOR
Smith Barney Shearson Inc.
388 Greenwich Street
World Financial Center
New York, New York 10285
INVESTMENT ADVISER
Smith Barney Shearson Strategy
Advisers Inc.
Two World Trade Center
New York, New York 10048
CONSULTANT TO INVESTMENT
ADVISER
Tremont Partners, Inc.
555 Theodore Fremd Avenue
Rye, New York 10580
ADMINISTRATOR
The Boston Company Advisors, Inc.
One Boston Place
Boston, Massachusetts 02108
TRANSFER AGENT
The Shareholder Services
Group, Inc.
Exchange Place
Boston, Massachusetts 02109
PORTFOLIO MANAGERS
Ardsley Advisory Partners
646 Steamboat Road
Greenwich, CT 06830
Hellman, Jordan Management
Co., Inc.
75 State Street
Boston, Massachusetts 02109
Mark Asset Management
767 Fifth Avenue
New York, New York 10153
AUDITORS AND COUNSEL
Coopers & Lybrand
One Post Office Square
Boston, Massachusetts 02109
Dechert Price & Rhoads
1500 K. Street N.W.
Washington, D.C. 20005
CUSTODIAN
Boston Safe Deposit and
Trust Company
One Boston Place
Boston, Massachusetts 02108
36
<PAGE>
INDIVIDUAL GENERAL PARTNERS
Walter E. Auch, Sr.
Martin Brody
Stephen E. Kaufman
Heath B. McLendon
Madelon DeVoe Talley
THIS REPORT IS SUBMITTED FOR THE GENERAL INFORMATION OF THE SHAREHOLDERS OF
THE
ADVISORS
FUND L.P. IT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS
UNLESS
ACCOMPANIED OR PRECEDED BY AN EFFECTIVE PROSPECTUS FOR THE FUND, WHICH
CONTAINS
INFORMATION CONCERNING THE FUND'S INVESTMENT POLICIES AND APPLICABLE CHARGES,
DISTRIBUTION FEES, RISK OF LOSS AND EXPENSES AS WELL AS OTHER
PERTINENT INFORMATION.
PERFORMANCE CITED IS THROUGH MARCH 31, 1994. PLEASE CONSULT THE SMITH BARNEY
SHEARSON MUTUAL FUNDS QUARTERLY PERFORMANCE UPDATE FOR FIGURES THROUGH THE
MOST
RECENT CALENDAR QUARTER.
[LOGO]
SMITH BARNEY SHEARSON
MUTUAL FUNDS
Two World Trade Center
New York, New York 10048
Fund 134, 205
FD0413 B4
