<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 period ended June 30, 1995
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. 814-55
TECHNOLOGY FUNDING VENTURE PARTNERS IV, AN AGGRESSIVE GROWTH FUND, L.P.
- -----------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 94-3054600
------------------------------ ---------------------------------
(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)
(415) 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 interests
("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)
June 30, December 31,
1995 1994
---- ----
<S> <C> <C>
ASSETS
Investments:
Equity investments (cost basis
of $26,599,880 and $26,617,314 for
1995 and 1994, respectively) $43,477,022 40,329,977
Notes receivable, net
(cost basis of $114,623 and
$289,339 for 1995 and 1994,
respectively) 105,623 240,339
---------- ----------
Total investments 43,582,645 40,570,316
Cash and cash equivalents 354,781 10,501
Other assets 12,127 25,978
---------- ----------
Total $43,949,553 40,606,795
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable and accrued expenses $ 11,075 24,979
Due to related parties 26,825 29,635
Promissory note 1,363,332 --
Short-term borrowings 2,806,967 2,167,868
Other liabilities 84,922 94,822
---------- ----------
Total liabilities 4,293,121 2,317,304
Commitments (Notes 3 and 7)
Partners' capital:
Limited Partners
(Units outstanding of 400,000
for both 1995 and 1994) 20,371,454 21,841,484
Managing General Partners 2,416,836 2,784,344
Net unrealized fair value increase
(decrease) from cost:
Equity investments 16,877,142 13,712,663
Notes receivable (9,000) (49,000)
---------- ----------
Total partners' capital 39,656,432 38,289,491
---------- ----------
Total $43,949,553 40,606,795
========== ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF OPERATIONS (unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
For the Three For the Six
Months Ended Months Ended
June 30, June 30,
------------------------------ -----------------
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Income:
Notes receivable interest $ 39,306 78,553 80,682 155,627
Short-term investment interest 3,224 6,058 5,858 22,990
--------- --------- --------- ----------
Total income 42,530 84,611 86,540 178,617
Costs and expenses:
Management fees 103,089 102,869 204,606 257,257
Individual general partners'
compensation 14,977 13,500 22,477 21,000
Amortization of organizational costs -- -- -- 1,167
Operating expenses 306,770 341,280 538,773 642,742
--------- --------- --------- ----------
Total costs and expenses 424,836 457,649 765,856 922,166
--------- --------- --------- ----------
Net operating loss (382,306) (373,038) (679,316) (743,549)
Net realized loss from sales of
equity investments (430,449) -- (429,620) --
Recoveries from investments
previously written off 42,582 -- 42,582 --
Realized losses from
investment write-downs (770,184) -- (771,184) (2,500)
--------- --------- --------- ----------
Net realized loss (1,540,357) (373,038) (1,837,538) (746,049)
Change in net unrealized
fair value:
Equity investments 4,272,576 (928,132) 3,164,479 (2,885,137)
Notes receivable 25,000 46,000 40,000 42,000
--------- --------- --------- ----------
Net income (loss) $ 2,757,219 (1,255,170) 1,366,941 (3,589,186)
========= ========= ========= ==========
Net realized loss per Unit $ (3) (1) (4) (1)
========= ========= ========= ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF CASH FLOWS (unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
For the Six Months Ended June 30,
---------------------------------
1995 1994
---- ----
<S> <C> <C>
Cash flows from operating activities:
Interest received $ 69,416 75,959
Interest expense (162,145) --
Cash paid to vendors (125,629) (139,691)
Cash paid to related parties (512,156) (758,563)
Reimbursement of collection expenses
received from a portfolio company 21,311 --
--------- ---------
Net cash used by operating activities (709,203) (822,295)
--------- ---------
Cash flows from investing activities:
Notes receivable issued (62,500) --
Purchase of equity investments (663,334) (1,883,917)
Repayments of notes receivable 239,376 13,193
Repayments of equity investments 125,000 --
Proceeds from sales of
equity investments 775,842 --
--------- ---------
Net cash provided (used) by
investing activities 414,384 (1,870,724)
--------- ---------
Cash flows from financing activities:
Short-term advances from Managing
General Partners 282,000 --
Repayment of short-term advances from
Managing General Partners (282,000) --
Proceeds from short-term
borrowings, net 639,099 --
--------- ---------
Net cash provided by
financing activities 639,099 --
--------- ---------
Net increase (decrease) in cash
and cash equivalents 344,280 (2,693,019)
Cash and cash equivalents at
beginning of year 10,501 3,072,847
--------- ---------
Cash and cash equivalents at June 30 $ 354,781 379,828
========= =========
Reconciliation of net income (loss) to
net cash used by operating activities:
Net income (loss) $ 1,366,941 (3,589,186)
Adjustments to reconcile net income
(loss) to net cash used by
operating activities:
Realized losses from investment
write-downs 771,184 2,500
Net realized loss from sales of
equity investments 429,620 --
Recoveries from investments
previously written off (42,582) --
Change in net unrealized fair value:
Equity investments (3,164,479) 2,885,137
Notes receivable (40,000) (42,000)
Other changes, net (250) 917
Changes in:
Accrued interest on notes receivable
and convertible notes receivable (16,874) (102,408)
Other, net (12,763) 22,745
--------- ---------
Net cash used by operating activities $ (709,203) (822,295)
========= =========
Non-cash investing activities:
Purchase of equity investments
financed by a promissory note $ 1,363,332 --
========= =========
Common stock recovered from equity
investments previously written off $ 42,582 --
========= =========
</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 June 30, 1995 and December 31, 1994, and the related Statements of
Operations for the three and six months ended June 30, 1995 and 1994,
and Statements of Cash Flows for the six months ended June 30, 1995 and
1994, 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,
1994. The following notes to financial statements for activity through
June 30, 1995 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. Financing of Partnership Operations
-----------------------------------
The Managing General Partners expect cash received from the liquidation
of Partnership investments and the collection of notes receivable will
provide the necessary liquidity to service Partnership debt and fund
Partnership operations. Until such future proceeds are received, the
Partnership is dependent upon the financial support of the Managing
General Partners to fund operations. The Managing General Partners have
committed to support the Partnership's working capital requirements
through advances as necessary.
3. Related Party Transactions
--------------------------
Related party costs are included in costs and expenses shown on the
Statements of Operations. Related party costs for the six months ended
June 30, 1995 and 1994 were as follows:
<TABLE>
<CAPTION>
1995 1994
---- ----
<S> <C> <C>
Management fees $204,606 257,257
Individual general partners' compensation 22,477 21,000
Amortization of organizational cost -- 1,167
Reimbursable operating expenses 282,263 474,645
</TABLE>
Certain reimbursable expenses have been accrued based upon interim
estimates prepared by the Managing General Partners and are adjusted to
actual periodically. There were $7,538 and $3,335 due from related
parties at June 30, 1995 and December 31, 1994, respectively, related to
such expenses.
Amounts payable for management fees were $34,363 and $32,970 at June 30,
1995 and December 31, 1994, respectively. Pursuant to the Partnership
Agreement, beginning February 16, 1994, management fees changed from two
percent per annum of total Limited Partners' capital contributions to a
quarterly fee equal to one quarter of one percent of the fair value of
Partnership assets.
4. Equity Investments
------------------
A full listing of the Partnership's equity investments at December 31,
1994 is in the 1994 Annual Report. Activity from January 1 through June
30, 1995 consisted of:
<TABLE>
<CAPTION>
January 1 -
June 30, 1995
Principal ---------------
Investment Amount or Cost Fair
Industry/Company Position Date Shares Basis Value
- ---------------- -------- --------- -------- ----- -----
<S> <C> <C> <C> <C> <C>
Balance at January 1, 1995 $26,617,314 40,329,977
---------- ----------
Significant changes:
Communications
- --------------
Coded Communications Common
Corporation shares 04/93 145,454 (246,182) (21,963)
Coded Communications Common share
Corporation warrant at $3.16;
expired 04/95 04/93 145,454 (4,000) 0
Terrapin, Inc. Convertible note (1) 05/95 $125,000 125,895 125,895
Unitech Telecom, Inc. Convertible note (1) 05/94 $100,000 (106,040) (106,040)
Unitech Telecom, Inc. Series A
Preferred shares 03/95 46,875 375,000 375,000
Computer Systems and Software
- -----------------------------
Quintar Corporation Convertible
secured note (1) 10/93 $500,000 (554,201) (554,201)
Quintar Corporation Series A
Preferred
shares 05/95 384,574 576,861 576,861
Medical/Biotechnology
- ---------------------
Biex, Inc. Series C
Preferred shares 06/95 83,334 83,334 83,334
Pharmos Corporation Common shares 04/95 56,776 42,582 143,643
SyStemix, Inc. Common shares 1991-1992 133,972 0 (421,342)
Microelectronics
- ----------------
Aprex Corporation Series D, E, & F 12/90-
Preferred shares 09/93 476,250 (120,000) (120,000)
Pharmaceuticals
- ---------------
Shaman Pharmaceuticals, Common shares
Inc. 01/93 1,245,194 0 2,249,473
Shaman Pharmaceuticals, Common shares
Inc. 02/95 340,833 1,363,332 1,687,123
Retail/Consumer Products
- ------------------------
YES! Entertainment Series B
Corporation Preferred shares 01/93 900,000 (600,000) (450,000)
YES! Entertainment
Corporation Common shares 06/95 66,666 199,998 251,997
Semiconductor
- -------------
AG Associates, Inc. Common shares 12/91 85,976 (1,187,039) (790,984)
IBIS Technology Corp. Common shares 05/94 46,718 0 92,828
---------- ----------
Total significant changes during the six
months ended June 30, 1995 (50,460) 3,121,624
Other changes, net 33,026 25,421
---------- ----------
Total equity investments at June 30, 1995 $26,599,880 43,477,022
========== ==========
(1) Convertible notes include accrued interest. The interest rate on convertible notes
issued during 1995 ranged from 8% to 12%.
</TABLE>
Marketable Equity Securities
- ----------------------------
At June 30, 1995 and December 31, 1994, marketable equity securities had
aggregate costs of $6,753,951 and $3,238,190, respectively, and
aggregate market values of $10,561,441 and $4,830,873, respectively.
The net unrealized gains at June 30, 1995 and December 31, 1994 included
gross gains of $4,113,086 and $2,153,132, respectively.
AG Associates, Inc.(formerly AG Processing Technologies, Inc.)
- --------------------------------------------------------------
In March 1995, the company changed its name to AG Associates, Inc. and
effected a 1-for-4 reverse split of its common stock. Then in May 1995,
the company completed its initial public offering ("IPO"). In lieu of
entering into an underwriter lockup as a result of the IPO, the
Partnership sold its investment in the company to a private third-party
for total proceeds of $756,590 and realized a loss of $430,449.
Aprex Corporation
- -----------------
In June 1995, Aprex Corporation filed for Chapter 11 protection under
the U.S. Bankruptcy Code. As a result, the Partnership has written off
the remaining cost basis of its investment totaling $120,000.
Biex, Inc.
- ----------
In June 1995, the Partnership made an additional investment in Biex,
Inc. by purchasing 83,334 Series C Preferred shares at a total cost of
$83,334.
Coded Communications, Inc.
- --------------------------
During the second quarter of 1995, the Managing General Partners
determined that there had been a decline in value of the Partnership's
investments. As a result, the Partnership realized a loss of $250,182.
The Partnership also recorded a decrease in fair value of $21,963 to
reflect the publicly-traded market value at June 30, 1995.
Pharmos Corporation/Oculon Corporation
- --------------------------------------
In March 1995, Oculon Corporation ("Oculon") was acquired by Pharmos
Corporation ("Pharmos"). The Partnership's Series II Senior Preferred
shares were canceled while the Series III Senior Preferred shares were
exchanged for 56,776 shares of marketable, unrestricted Pharmos common
stock. The Partnership recorded the $42,582 cost basis of the Pharmos
stock as a recovery from investments previously written off. An
increase in fair value of $143,643 reflected the market value of the
Pharmos stock at June 30, 1995.
Quintar Corporation
- -------------------
In May 1995, the Partnership converted its $500,000 convertible note
receivable including interest of $76,861 into 384,574 Series A Preferred
shares in accordance with the original convertible note agreement.
Shaman Pharmaceuticals, Inc.
- ----------------------------
In February 1995, the Partnership purchased 340,833 common shares of
Shaman Pharmaceuticals, Inc. at $4.00 per share from Eli Lilly and
Company ("Eli Lilly"). The purchase price of $1,363,332 was financed by
a two-year subordinated promissory note issued by Eli Lilly, secured by
the portfolio assets of the Partnership. The interest rate was 9% at
June 30, 1995; interest expense of $45,046 was recorded. The
Partnership also recorded an increase in the change in fair value of
$2,573,264 to reflect the market value at June 30, 1995 for its entire
Shaman portfolio of marketable, restricted securities.
Terrapin, Inc.
- --------------
In May 1995, the Partnership issued a convertible note of $125,000 to
Terrapin, Inc., a wholly-owned subsidiary of KOR Electronics.
Unitech Telecom, Inc.
- ---------------------
In March 1995, the Partnership purchased 46,875 Series A Preferred
shares from the company at a total cost of $375,000. The purchase price
consisted of $275,000 in cash and the conversion of a $100,000 note
issued in May 1994. Interest on the note was paid in cash.
YES! Entertainment Corporation
- ------------------------------
In June 1995, the company completed its IPO. Prior to the IPO, the
company effected a 1-for-15 reverse stock split. The Partnership's
Series B Preferred shares were converted into 66,666 common shares. The
Managing General Partners determined that there had been a decline in
value of the Partnership's investment; as a result, realized loss of
$400,002 was recorded. The loss reflects the fact that the stock will
be restricted for two years.
Other Equity Investments
- ------------------------
Other significant changes reflected above relate to market value
fluctuations and the elimination of a discount relating to selling
restrictions for publicly-traded portfolio companies.
5. Notes Receivable, Net
---------------------
Activity from January 1, 1995 through June 30, 1995 consisted of:
<TABLE>
<S> <C>
Balance at January 1, 1995 $ 240,339
1995 activity:
Notes receivable issued 62,500
Repayments of notes receivable (239,376)
Decrease in allowance for loan losses 40,000
Other activity, net 2,160
-------
Total notes receivable, net, at June 30, 1995 $ 105,623
=======
</TABLE>
The Partnership had accrued interest of $15,623 and $13,713 at June 30,
1995 and December 31, 1994, respectively.
Activity in the allowance for loan losses was as follows:
<TABLE>
<S> <C>
Balance at January 1, 1995 $ 49,000
Change in net unrealized fair value of
notes receivable (40,000)
------
Balance at June 30, 1995 $ 9,000
======
</TABLE>
The allowance for loan losses is adjusted quarterly based upon changes
to the portfolio size and risk profile. Although the allowance is
established by evaluating individual debtor repayment ability, the
allowance represents the Managing General Partners' assessment of the
portfolio as a whole.
6. Short-Term Borrowings
---------------------
The Partnership has borrowing accounts with two financial institutions.
At June 30, 1995, the borrowing capacity of these two accounts, which
fluctuate based on collateral value, totaled $3,461,685; subsequent to
quarter end, as of August 2, 1995, the borrowing capacity totaled
$3,892,777. The outstanding balance at June 30, 1995 was $2,806,967.
The weighted-average interest rates for the two accounts were 8.41% and
9.41% for the six months ended June 30, 1995. There was no balance
outstanding for the same period in 1994. Interest expense of $117,099
was recorded for the first six months of 1995. The Partnership's
investments in Shaman Pharmaceuticals, Inc. and SyStemix, Inc are
pledged as collateral.
7. Commitments
-----------
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 fundings, venture capital
limited partnership investments, equipment financing commitments, or
accounts receivable lines of credit that are outstanding but not
currently fully utilized. As they do not represent current outstanding
balances, these unfunded commitments are properly not recognized in the
financial statements. At June 30, 1995, the Partnership had unfunded
commitments as follows:
<TABLE>
<S> <C>
Type
- ----
Equity investments $166,666
Bridge note 375,000
Venture capital limited partnership investments 313,650
-------
Total $855,316
=======
</TABLE>
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Liquidity and Capital Resources
- -------------------------------
During the six months ended June 30, 1995, net cash used by operations
totaled $709,203. The Partnership paid management fees of $203,213 to
the Managing General Partners and reimbursed related parties for
operating expenses of $286,466. In addition, $22,477 was paid to the
individual general partners as compensation for their services. Other
operating expenses of $125,629 were paid and interest income of $69,416
was received. The Partnership also paid interest of $162,145 on
borrowings and received $21,311 in reimbursement from a portfolio
company for collection expenses.
During the six months ended June 30, 1995, the Partnership issued
$62,500 in notes receivable to a portfolio company in the computer
systems and software industry and funded equity investments of $663,334
primarily to portfolio companies in the communications, computer systems
and software, and microelectronics industries. Repayments of notes
receivable and equity investments provided cash of $239,376 and
$125,000, respectively. Proceeds from the sales of equity investments
were $775,842.
The Partnership had borrowing accounts with two financial institutions.
At June 30, 1995, the borrowing capacity, which fluctuates based on
collateral value, totaled $3,461,685. Subsequent to quarter end, as of
August 2, 1995, the borrowing capacity totaled $3,892,777. The
outstanding balance at June 30, 1995 was $2,806,967, of which $639,099
was drawn during the first six months of 1995. The Partnership's
investments in SyStemix, Inc. and Shaman Pharmaceuticals, Inc. are
pledged as collateral.
During the first half of 1995, AG Associates, Inc. and YES!
Entertainment Corporation completed their IPOs. Although the
Partnership's holdings in YES! Entertainment are subject to selling
restrictions, the IPO indicates potential future liquidity for this
investment. The Partnership has already sold its holdings in AG
Associates, Inc.
Cash and cash equivalents at June 30, 1995 were $354,781. At June 30,
1995, the Partnership was committed to fund $855,316 in additional
investments. Future interest income earned on notes receivable,
proceeds from investment sales, remaining borrowing capacity on
borrowing accounts and General Partners support are expected to be
adequate to fund Partnership operations through the next twelve months.
Results of Operations
- ---------------------
Current quarter compared to corresponding quarter in the preceding year
- -----------------------------------------------------------------------
Net income was $2,757,219 for the quarter ended June 30, 1995 compared
to a net loss of $1,255,170 during the same period in 1994. The change
was primarily due to a $5,200,708 increase in the change in net
unrealized fair value of equity investments. This change was partially
offset by a $770,184 increase in realized losses from investment write-
downs and a $430,449 increase in net realized loss from sales of equity
investments.
During the quarter ended June 30, 1995, the increase in fair value of
$4,272,576 was substantially attributable to increases in a portfolio
company in the pharmaceuticals industry. During the quarter ended June
30, 1994, the decrease in fair value of $928,132 was primarily
attributable to decreases in portfolio companies in the pharmaceuticals
and retail/consumer products industries, partially offset by increases
in the medical and computer systems and software industries.
Realized losses from investment write-downs of $770,184 during the
quarter ended June 30, 1995 primarily related to portfolio companies in
the retail/consumer products and communications industries. There was
no realized loss recorded during the same period in 1994.
During the quarter ended June 30, 1995, net realized loss from sales of
equity investments of $430,449 related to the sale of AG Associates,
Inc. There were no investment sales during the same period in 1994.
Given the inherent risk associated with the business of the Partnership,
the future performance of the portfolio company investments may
significantly impact future operations.
Current six months compared to corresponding six months in the preceding
- ------------------------------------------------------------------------
year
- ----
Net income was $1,366,941 for the six months ended June 30, 1995
compared to a net loss of $3,589,186 during the same period in 1994.
The change was primarily due to a $6,049,616 increase in the change in
net unrealized fair value of equity investments, and a $103,969 decrease
in operating expenses. Theses changes were partially offset by a
$768,684 increase in realized losses from investment write-downs, a
$429,620 increase in net realized loss from sales of equity investments,
and a $92,077 decrease in total income.
During the six months ended June 30, 1995, the increase in fair value of
$3,164,479 was substantially attributable to increases in a portfolio
company in the pharmaceuticals industry. During the same period in
1994, the decrease in fair value of $2,885,137 was primarily
attributable to portfolio companies in the pharmaceuticals and
retail/consumer products industries, partially offset by increases in
the medical and computer systems and software industries.
Total operating expenses were $538,773 and $642,742 for the six months
ended June 30, 1995 and 1994, respectively. The decrease was primarily
due to lower investment operations and administrative and investor
services expenses from lower overall portfolio activities, partially
offset by higher interest expenses from short-term borrowings.
Realized losses from investment write-downs were $771,184 and $2,500
during the six months ended June 30, 1995 and 1994, respectively.
Realized losses in 1995 primarily related to portfolio companies in the
retail/consumer products and communications industries.
During the six months ended June 30, 1995, net realized loss from sales
of equity investments of $429,620 mainly related to the sale of AG
Associates, Inc. There were no investment sales during the same period
in 1994.
Total income was $86,540 and $178,617 for the six months ended June 30,
1995 and 1994, respectively. The decrease was primarily due to lower
outstanding convertible and secured notes receivable balances.
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 June 30, 1995.
(b) Financial Data Schedule for the six months ended and as of June 30,
1995 (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 VENTURE PARTNERS IV,
AN AGGRESSIVE GROWTH FUND, L.P.
By: TECHNOLOGY FUNDING INC.
Managing General Partner
Date: August 11, 1995 By: /s/Frank R. Pope
-------------------------------------------
Frank R. Pope
Executive Vice President and
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE>6
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE FORM 10-Q AS OF JUNE 30, 1995 AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
<MULTIPLIER>1
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<PERIOD-TYPE> 6-MOS
<INVESTMENTS-AT-COST> 26,714,503
<INVESTMENTS-AT-VALUE> 43,582,645
<RECEIVABLES> 0
<ASSETS-OTHER> 12,127
<OTHER-ITEMS-ASSETS> 354,781
<TOTAL-ASSETS> 43,949,553
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4,293,121
<TOTAL-LIABILITIES> 4,293,121
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 22,788,290
<SHARES-COMMON-STOCK> 400,000
<SHARES-COMMON-PRIOR> 400,000
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 16,868,142
<NET-ASSETS> 39,656,432
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 86,540
<OTHER-INCOME> 0
<EXPENSES-NET> 765,856
<NET-INVESTMENT-INCOME> (679,316)
<REALIZED-GAINS-CURRENT> (1,158,222)
<APPREC-INCREASE-CURRENT> 3,204,479
<NET-CHANGE-FROM-OPS> 1,366,941
<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> 1,366,941
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 204,666
<INTEREST-EXPENSE> 162,145
<GROSS-EXPENSE> 789,367
<AVERAGE-NET-ASSETS> 38,972,962
<PER-SHARE-NAV-BEGIN> 55
<PER-SHARE-NII> (4)
<PER-SHARE-GAIN-APPREC> 0 <F1>
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 51
<EXPENSE-RATIO> .02
<AVG-DEBT-OUTSTANDING> 2,487,418
<AVG-DEBT-PER-SHARE> 6
<FN>
<F1>
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. Only taxable gains or losses are allocated in accordance with
the Partnership Agreement.
</FN>
</TABLE>
