<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
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)
March 31, December 31,
1996 1995
---- ----
<S> <C> <C>
ASSETS
Investments:
Equity investments (cost basis
of $23,685,919 and $24,932,960 for
1996 and 1995, respectively) $40,203,239 42,711,618
Notes receivable, net
(cost basis of $697,457 and
$67,826 for 1996 and 1995,
respectively) 325,457 67,826
---------- ----------
Total investments 40,528,696 42,779,444
Cash and cash equivalents 65,487 274,980
Other assets 11,682 11,347
---------- ----------
Total $40,605,865 43,065,771
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable and accrued expenses $ 20,695 22,993
Due to related parties 29,399 856,733
Promissory notes 1,605,332 1,363,332
Short-term borrowings 1,658,062 2,902,626
Interest payable 3,191 29,209
Other liabilities 62,244 60,640
---------- ----------
Total liabilities 3,378,923 5,235,533
Commitments, contingencies and
subsequent events (Notes 2, 3 and 7)
Partners' capital:
Limited Partners
(Units outstanding of 400,000
for both 1996 and 1995) 19,006,120 18,182,086
Managing General Partners 2,075,502 1,869,494
Net unrealized fair value increase
(decrease) from cost:
Equity investments 16,517,320 17,778,658
Notes receivable (372,000) --
---------- ----------
Total partners' capital 37,226,942 37,830,238
---------- ----------
Total $40,605,865 43,065,771
========== ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF OPERATIONS (unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
For the Three Months Ended March 31,
-----------------------------------
1996 1995
---- ----
<S> <C> <C>
Income:
Notes receivable interest $ 28,884 41,376
Short-term investment interest 1,112 2,634
--------- ---------
Total income 29,996 44,010
Costs and expenses:
Management fees 107,664 101,517
Individual general partners'
compensation 7,809 7,500
Operating expenses 230,681 232,003
--------- ---------
Total costs and expenses 346,154 341,020
--------- ---------
Net operating loss (316,158) (297,010)
Net realized gain from sales
of equity investments 1,423,291 829
Realized losses from
investment write-downs (77,091) (1,000)
--------- ---------
Net realized income (loss) 1,030,042 (297,181)
Change in net unrealized
fair value:
Equity investments (1,261,338) (1,108,097)
Notes receivable (372,000) 15,000
--------- ---------
Net loss $ (603,296) (1,390,278)
========= =========
Net realized income (loss) per Unit $ 2 (1)
========= =========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF CASH FLOWS (unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
For the Three Months Ended March 31,
-----------------------------------
1996 1995
---- ----
<S> <C> <C>
Cash flows from operating activities:
Interest received $ 9,055 36,360
Interest paid (106,930) (69,367)
Cash paid to vendors (33,675) (43,825)
Cash paid to related parties (1,059,930) (221,423)
Reimbursement of collection expenses
received from a portfolio company -- 21,311
--------- ---------
Net cash used by operating activities (1,191,480) (276,944)
--------- ---------
Cash flows from investing activities:
Notes receivable issued (640,000) (62,500)
Proceeds from the sales of
equity investments 3,784,375 19,253
Purchase of equity investments (1,217,443) (425,000)
Repayments of equity investments
and notes receivable 39,931 129,401
Distributions from venture capital
limited partnership investments 17,688 --
--------- ---------
Net cash provided (used) by
investing activities 1,984,551 (338,846)
--------- ---------
Cash flows from financing
activities:
Repayments of (proceeds from)
short-term borrowings, net (1,244,564) 576,912
Proceeds from promissory notes 242,000 --
Short-term advances from Managing
General Partners -- 55,000
--------- ---------
Net cash (used) provided by
financing activities (1,002,564) 631,912
--------- ---------
Net (decrease) increase in cash
and cash equivalents (209,493) 16,122
Cash and cash equivalents at
beginning of year 274,980 10,501
--------- ---------
Cash and cash equivalents at March 31 $ 65,487 26,623
========= =========
</TABLE>
See accompanying notes to the financial statements.
<PAGE>
STATEMENTS OF CASH FLOWS (unaudited) (continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
For the Three Months Ended March 31,
-----------------------------------
1996 1995
---- ----
<S> <C> <C>
Reconciliation of net loss to net
cash used by operating activities:
Net loss $ (603,296) (1,390,278)
Adjustments to reconcile net loss
to net cash used by
operating activities:
Net realized gain from sales of
equity investments (1,423,291) (829)
Realized losses from investment
write-downs 77,091 1,000
Change in net unrealized fair value:
Equity investments 1,261,338 1,108,097
Note receivable 372,000 (15,000)
Changes in:
Due to/from related parties (827,334) 86,324
Other, net (47,988) (66,258)
--------- ---------
Net cash used by operating activities $(1,191,480) (276,944)
========= =========
Non-cash investing activities:
Purchase of equity investments
financed by a promissory note $ -- 1,363,332
========= =========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (unaudited)
- ----------------------------------------
1. General
-------
In the opinion of the Managing General Partners, the Balance Sheets as
of March 31, 1996 and December 31, 1995, and the related Statements of
Operations and Statements of Cash Flows for the three months ended
March 31, 1996 and 1995, 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, 1995. The following notes to financial statements
for activity through March 31, 1996 supplement those included in the
Annual Report on Form 10-K. Certain 1995 balances have been
reclassified to conform with the 1996 financial statement presentation.
2. Related Party Transactions
--------------------------
Related party costs are included in costs and expenses shown on the
Statements of Operations. Related party costs for the three months
ended March 31, 1996 and 1995 were as follows:
<TABLE>
<CAPTION>
1996 1995
---- ----
<S> <C> <C>
Management fees $107,664 101,517
Individual general partners' compensation 7,809 7,500
Reimbursable operating expenses 115,473 143,730
</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 $1,571 due from related parties at
March 31, 1996 compared to $818,386 due to related parties at December
31, 1995.
Management fees payable were $30,970 and $38,347 at March 31, 1996 and
December 31, 1995, respectively. Pursuant to the Partnership
Agreement, quarterly management fees are equal to one quarter of one
percent of the fair value of Partnership assets.
3. Equity Investments
------------------
A full listing of the Partnership's equity investments at December 31,
1995 is in the 1995 Annual Report. Activity from January 1 through
March 31, 1996 consisted of:
<TABLE>
<CAPTION>
January 1 -
March 31, 1996
--------------
Principal
Investment Amount or Cost Fair
Industry/Company Position Date Shares Basis Value
- ---------------- -------- --------- -------- ----- -----
<S> <C> <C> <C> <C> <C>
Balance at January 1, 1996 $24,932,960 42,711,618
---------- ----------
Significant changes:
Communications
- --------------
Coded Communications Common
Corporation shares 04/93 145,454 (77,091) (102,690)
Pinterra Corporation Convertible
note (1) 03/96 $125,000 125,667 125,667
Wire Networks, Inc. Series A
Preferred shares 02/96 6,098 8,232 8,232
Wire Networks, Inc. Series B
Preferred shares 02/96 7,452 16,767 16,767
Computer Systems and Software
- -----------------------------
Reflection Technology, Series F
Inc. Preferred shares 01/94 28,572 0 (30,000)
Reflection Technology, Common
Inc. shares 05/94 19,567 0 (20,546)
Reflection Technology, Series D
Inc. Preferred shares 11/94 869,565 0 (913,044)
Reflection Technology, Series G
Inc. Preferred shares 11/94 172,877 0 (181,520)
Reflection Technology, Series D
Inc. Preferred shares 11/94 163,043 0 (171,195)
Reflection Technology, Series I
Inc. Preferred shares 11/95 40,322 0 (42,338)
Reflection Technology, Convertible
Inc. notes (1) 01/96 $242,000 245,208 245,208
Reflection Technology, Convertible
Inc. notes (1) 02/96 $364,500 370,128 370,128
Reflection Technology, Common share
Inc. warrant at $.50;
expiration date
to be determined 02/96 359,750 0 557,613
Reflection Technology, Convertible
Inc. notes (1) 03/96 $355,000 356,868 356,868
Medical/Biotechnology
- ---------------------
Cardiometrics,
Incorporated Common shares 11/95 359,747 0 372,338
CV Therapeutics, Inc. Series G
Preferred shares 03/96 31,722 27,279 62,810
CV Therapeutics, Inc. Common share
warrant at $.25;
expiring 03/99 03/96 47,583 36,165 83,270
Everest & Jennings Common
International Ltd. shares 01/94 592,720 0 (81,203)
Inhale Therapeutic Common
Systems, Inc. shares 03/96 6,270 105,023 95,774
SyStemix, Inc. Common shares 1991-1992 133,972 0 (318,183)
Pharmaceuticals
- ---------------
Shaman Pharmaceuticals, Common
Inc. shares 01/93 234,167 (997,752) (1,475,252)
Shaman Pharmaceuticals, Common
Inc. shares 01/93 986,027 0 591,616
Shaman Pharmaceuticals, Common
Inc. shares 02/95 340,833 (1,363,332) (2,147,248)
Retail/Consumer Products
- ------------------------
Yes! Entertainment Common
Corporation shares 06/95 66,666 0 139,498
Venture Capital Limited Partnership Investments
- -----------------------------------------------
Various Limited Partnership
Interests various $2,148,764 (130,160) (130,160)
---------- ----------
Total significant changes during the three
months ended March 31, 1996 (1,276,998) (2,587,590)
Other changes, net 29,957 79,211
---------- ----------
Total equity investments at March 31, 1996 $23,685,919 40,203,239
========== ==========
(1) Convertible notes include accrued interest. The interest rates on convertible notes
issued during 1996 ranged from 6% to 14%.
</TABLE>
Marketable Equity Securities
- ----------------------------
At March 31, 1996 and December 31, 1995, marketable equity securities
had aggregate costs of $7,076,193 and $9,362,396, respectively, and
aggregate market values of $11,563,866 and $14,529,511, respectively.
The net unrealized gains at March 31, 1996 and December 31, 1995
included gross gains of $5,200,781 and $6,130,033, respectively.
Coded Communications Corporation
- --------------------------------
During the first quarter of 1996, the Managing General Partners
determined that there had been an other than temporary decline in
value of the Partnership's investment. As a result, the investment
was written down by $77,091. The Partnership also recorded a
decrease in fair value of $102,690 to reflect the unrestricted market
value at March 31, 1996.
CV Therapeutics, Inc.
- ---------------------
In March 1996, the Partnership made an additional investment in the
company by purchasing 31,722 Series G Preferred shares and a warrant
for 47,583 common shares at a total cost of $63,444. The fair values
above reflect the valuation of this financing, resulting in an
increase in the change in fair value of $82,636.
Pinterra Corporation (formerly Terrapin, Inc.)
- ----------------------------------------------
In March 1996, the Partnership issued a $125,000 convertible note to
the company.
Reflection Technology, Inc.
- ---------------------------
During the first quarter of 1996, the Partnership issued $961,500 in
convertible notes receivable to the company and received a warrant to
purchase 359,750 common shares at $.50 per share.
Subsequent to quarter end, the company completed a new round of
financing. The pricing of this round is reflected in the March 31,
1996 balances and resulted in an $801,030 decrease in the fair value
of the Partnership's investments.
Shaman Pharmaceuticals, Inc.
- ----------------------------
During the first quarter of 1996, the Partnership sold 575,000 common
shares of Shaman Pharmaceuticals, Inc. for total proceeds of
$3,784,375 and realized a gain of $1,423,291. The Partnership
recorded a decrease in the change in fair value of $669,800. The
change included a decrease of $1,261,416 due to the sale mentioned
above, partially offset by an increase in market price at March 31,
1996 for its remaining unrestricted shares.
Wire Networks, Inc.
- -------------------
In February 1996, the Partnership made an investment in the company
by purchasing 6,098 Series A Preferred shares and 7,452 Series B
Preferred shares for $8,232 and $16,767, respectively.
Venture Capital Limited Partnership Investments
- -----------------------------------------------
The Partnership recorded a cost basis and fair value decrease of
$130,160 in venture capital limited partnership investments during
the quarter ended March 31, 1996. The decrease was a result of
returns of capital in the form of stock and cash distributions of
$154,972 and $17,688, respectively, partially offset by additional
contributions of $42,500. The stock distributions consisted of
Clarify, Inc., Euphonix, Inc. and Inhale Therapeutic Systems, Inc.
with fair values of $12,824, $37,125 and $105,023, respectively.
Other Equity Investments
- ------------------------
Other significant changes during the quarter ended March 31, 1996
reflected above relate to market value fluctuations or the
elimination of a discount relating to selling restrictions for
publicly-traded portfolio companies. The Partnership's YES!
Entertainment Corporation shares are restricted.
Subsequent to March 31, 1996, Physiometrix, Inc. completed its
initial public offering (IPO). The Partnership's 338,150 Preferred
shares and 338 common shares became 270,791 common shares after a
reverse stock split. As of May 7, 1996, the Partnership's investment
had a fair value of $2,132,479, compared to the March 31, 1996 cost
basis and fair value of $490,025 and $1,692,440, respectively.
4. Notes Receivable, Net
---------------------
Activity from January 1, 1996 through March 31, 1996 consisted of:
<TABLE>
<S> <C>
Balance at January 1, 1996 $ 67,826
1996 activity:
Notes receivable issued 640,000
Repayments of notes receivable (10,931)
Increase in allowance for loan losses (372,000)
Increase in accrued interest 562
-------
Total notes receivable, net, at March 31, 1996 $325,457
=======
</TABLE>
The Partnership had accrued interest of $19,239 and $18,677 at March
31, 1996 and December 31, 1995, respectively.
Activity in the allowance for loan losses was as follows:
<TABLE>
<S> <C>
Balance at January 1, 1996 $ --
Change in net unrealized fair value 372,000
-------
Balance at March 31, 1996 $372,000
=======
</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.
Notes with a total cost basis of $640,000 were on a nonaccrual status
due to uncertainties related to a borrower's financial condition at
March 31, 1996. The Managing General Partners continue to monitor
the progress of this company. The fair value at March 31, 1996 is
based on the Managing General Partners' estimate of collectibility of
these notes. There were no notes receivable on nonaccrual status at
December 31, 1995.
5. Promissory Notes
----------------
At March 31, 1996 and December 31, 1995, the Partnership had
promissory notes to unaffiliated private parties of $1,605,332 and
$1,363,332, respectively. The 1996 balance consisted of two notes
with outstanding balances of $1,363,332 and $242,000 and maturity
dates of February 1997 and December 1996, respectively. The
$1,363,332 note is subordinated to the Partnership's short-term
borrowings and is collateralized by the Partnership's assets. The
combined weighted average interest rate for the two notes during the
quarter ended March 31, 1996 was 7.13%. Interest expense of $32,091
was recorded in 1996.
6. Short-Term Borrowings
---------------------
The Partnership has borrowing accounts with two financial
institutions. During the first quarter of 1996, the Partnership made
a net repayment of $1,244,564 to one financial institution with
proceeds from the sale of Shaman Pharmaceuticals, Inc. common stock.
At March 31, 1996, the combined outstanding balance was $1,658,062.
The borrowing capacity of these accounts, which fluctuates based on
collateral value, totaled $3,122,165 at March 31, 1996. The combined
weighted average interest rate for the two accounts during the three
months ended March 31, 1996 was 7.2%. Interest expense of $48,821
was recorded. The Partnership's investments in Shaman
Pharmaceuticals, Inc. and SyStemix, Inc. are pledged as collateral.
7. Commitments and Contingencies
-----------------------------
The Partnership is a party to financial instruments with off-balance-
sheet risk in the normal course of its business. Generally, these
instruments are commitments for future equity 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 March
31, 1996, the Partnership had unfunded commitments as follows:
<TABLE>
<S> <C>
Type
- ----
Equity investments $ 89,583
Term notes 135,000
Venture capital limited partnership investments 211,150
---------
Total $435,733
=========
</TABLE>
In September 1995, the Partnership jointly guaranteed with two
affiliated partnerships a $2,000,000 line of credit between a
financial institution and a portfolio company in the computer systems
and software industry of which the Partnership's share is $500,000.
However, if the affiliated partnerships are unable to finance their
portion of the guarantee, the Partnership's share may increase up to
$2,000,000. While the Partnership expects the portfolio company to
repay the line of credit, if the portfolio company fails to do so,
the Partnership may be liable up to the guarantee amount.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Liquidity and Capital Resources
- -------------------------------
During the three months ended March 31, 1996, net cash used by
operating activities totaled $1,191,480. The Partnership paid
management fees of $115,041 and reimbursed related parties for
operating expenses of $937,080. In addition, $7,809 was paid to the
individual general partners as compensation for their services.
Other operating expenses of $33,675 were paid and interest income of
$9,055 was received. The Partnership also paid interest of $106,930
on borrowings.
During the three months ended March 31, 1996, the Partnership issued
$640,000 in notes receivable to a portfolio company in the computer
systems and software industry and funded equity investments of
$1,217,443 mainly to a portfolio company in the computer systems and
software industry. Repayments of equity investments and notes
receivable provided cash of $39,931 and proceeds from equity
investment sales were $3,784,375. At March 31, 1996, the Partnership
was committed to fund additional investments totaling $435,733 and
has outstanding guarantees up to $2,000,000 as disclosed in Note 7 to
the financial statements.
The Partnership had borrowing accounts with two financial
institutions. The borrowing capacity of these accounts, which
fluctuates based on collateral value, totaled $3,122,165 at March 31,
1996. At March 31, 1996, the combined outstanding balance was
$1,658,062. The Partnership's investments in SyStemix, Inc. and
Shaman Pharmaceuticals, Inc. are pledged as collateral. The
Partnership also has two promissory notes payable totaling $1,605,332
with maturity dates in December 1996 and February 1997. The
Partnership's assets are pledged as collateral for one of the
promissory notes, which is subordinate to the Partnership's short-
term borrowings.
Subsequent to March 31, 1996, Physiometrix, Inc. completed its IPO.
Although the Partnership's investment in Physiometrix, Inc. is
subject to selling restrictions, the IPO indicates potential future
liquidity.
Cash and cash equivalents at March 31, 1996 were $65,487. Future
interest income earned on notes receivable, remaining capacity on
borrowing accounts, and proceeds from investment sales 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 loss was $603,296 for the three months ended March 31, 1996
compared to $1,390,278 during the same period in 1995. The decrease
in net loss was primarily due to a $1,422,462 increase in net
realized gain from sales of equity investments. This change was
partially offset by decreases of $387,000 and $153,241 in the change
in net unrealized fair values of notes receivable and equity
investments, respectively.
During the quarter ended March 31, 1996, the $1,423,291 net realized
gain from sales of equity investments was due to sales of Shaman
Pharmaceuticals, Inc. common stock. An $829 realized gain was
recorded for the same period in 1995.
The Partnership recorded a decrease in the fair value of notes
receivable of $372,000 compared to an increase of $15,000 for the
quarters ended March 31, 1996 and 1995, respectively, based upon the
level of loan loss reserves deemed adequate by the Managing General
Partners at the respective quarter ends.
During the quarter ended March 31, 1996, the decrease in equity
investment fair value of $1,261,338 was primarily attributable to
portfolio companies in the pharmaceuticals and computer systems and
software industries. During the same quarter in 1995, the decrease
of $1,108,097 was primarily attributable to portfolio companies in
the pharmaceuticals and medical/biotechnology industries.
Given the inherent risk associated with the business of the
Partnership, the future performance of the portfolio company
investments may significantly impact future operations.
II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) No reports on Form 8-K were filed by the Partnership during the
quarter ended March 31, 1996.
(b) Financial Data Schedule for the quarter ended and as of March
31, 1996 (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: May 10, 1996 By: /s/Debbie A. Wong
-------------------------------------
Debbie A. Wong
Controller
<TABLE> <S> <C>
<ARTICLE>6
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE FORM 10-Q AS OF MARCH 31, 1996 AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
<MULTIPLIER>1
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<PERIOD-TYPE> 3-MOS
<INVESTMENTS-AT-COST> 24,383,376
<INVESTMENTS-AT-VALUE> 40,528,696
<RECEIVABLES> 0
<ASSETS-OTHER> 11,682
<OTHER-ITEMS-ASSETS> 65,487
<TOTAL-ASSETS> 40,605,865
<PAYABLE-FOR-SECURITIES> 1,608,523
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,770,400
<TOTAL-LIABILITIES> 3,378,923
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 21,081,622
<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> 16,145,320
<NET-ASSETS> 37,226,942
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 29,996
<OTHER-INCOME> 0
<EXPENSES-NET> (346,154)
<NET-INVESTMENT-INCOME> (316,158)
<REALIZED-GAINS-CURRENT> 1,346,200
<APPREC-INCREASE-CURRENT> (1,633,338)
<NET-CHANGE-FROM-OPS> (603,296)
<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> (603,296)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 107,664
<INTEREST-EXPENSE> 80,912
<GROSS-EXPENSE> 347,154
<AVERAGE-NET-ASSETS> 37,528,590
<PER-SHARE-NAV-BEGIN> 46
<PER-SHARE-NII> 2
<PER-SHARE-GAIN-APPREC> 0 <F1>
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 48
<EXPENSE-RATIO> .92
<AVG-DEBT-OUTSTANDING> 3,764,676
<AVG-DEBT-PER-SHARE> 9
<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>
