<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, 1997
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,
1997 1996
--------- ------------
<S> <C> <C>
ASSETS
Investments:
Equity investments (cost basis
of $18,117,450 and $18,522,217 for
1997 and 1996, respectively) $29,360,621 35,527,098
Notes receivable, net 168,166 29,137
---------- ----------
Total investments 29,528,787 35,556,235
Cash and cash equivalents 1,982,676 1,402,668
Other assets 8,809 66,285
---------- ----------
Total $31,520,272 37,025,188
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable and accrued expenses $ 40,952 38,429
Due to related parties 43,504 90,890
Promissory notes -- 1,363,332
Interest payable -- 28,350
Other liabilities 13,173 21,455
---------- ----------
Total liabilities 97,629 1,542,456
Commitments, contingencies and
subsequent events (Notes 2, 3, 5 and 6)
Partners' capital:
Limited Partners
(Units outstanding of 400,000
for both 1997 and 1996) 18,664,466 17,224,580
Managing General Partners 1,515,006 1,253,271
Net unrealized fair value increase
from cost of equity investments 11,243,171 17,004,881
---------- ----------
Total partners' capital 31,422,643 35,482,732
---------- ----------
Total $31,520,272 37,025,188
========== ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF OPERATIONS (unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
For the Three Months Ended March 31,
-----------------------------------
1997 1996
---- ----
<S> <C> <C>
Income:
Notes receivable interest $ 8,741 28,884
Short-term investment interest 15,981 1,112
--------- ---------
Total income 24,722 29,996
Costs and expenses:
Management fees 92,563 107,664
Individual General Partners'
compensation 9,658 7,809
Operating expenses 276,273 230,681
--------- ---------
Total costs and expenses 378,494 346,154
--------- ---------
Net operating loss (353,772) (316,158)
Net realized gain from venture
capital limited partnership
investments 413,631 --
Net realized gain from sales
of equity investments 1,644,262 1,423,291
Realized losses from
investment write-downs (2,500) (77,091)
--------- ---------
Net realized income 1,701,621 1,030,042
Change in net unrealized
fair value:
Equity investments (5,761,710) (1,261,338)
Notes receivable -- (372,000)
--------- ---------
Net loss $(4,060,089) (603,296)
========= =========
Net realized income per Unit $ 4 2
========= =========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF CASH FLOWS (unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
For the Three Months Ended March 31,
-----------------------------------
1997 1996
---- ----
<S> <C> <C>
Cash flows from operating activities:
Interest received $ 21,608 9,055
Interest paid (42,976) (106,930)
Cash paid to vendors (52,355) (33,675)
Cash paid to related parties (367,401) (1,059,930)
--------- ---------
Net cash used by operating activities (441,124) (1,191,480)
--------- ---------
Cash flows from investing activities:
Notes receivable issued (150,500) (640,000)
Proceeds from the sales of
equity investments 3,416,447 3,784,375
Purchase of equity investments (888,118) (1,217,443)
Repayments of equity investments
and notes receivable 6,635 39,931
Distributions from venture capital
limited partnership investments -- 17,688
--------- ---------
Net cash provided by
investing activities 2,384,464 1,984,551
--------- ---------
Cash flows from financing activities:
Repayments of short-term
borrowings, net -- (1,244,564)
(Repayments of) proceeds from
promissory notes, net (1,363,332) 242,000
--------- ---------
Net cash used by
financing activities (1,363,332) (1,002,564)
--------- ---------
Net increase (decrease) in cash
and cash equivalents 580,008 (209,493)
Cash and cash equivalents at
beginning of year 1,402,668 274,980
--------- ---------
Cash and cash equivalents at March 31 $ 1,982,676 65,487
========= =========
</TABLE>
See accompanying notes to the financial statements.
<PAGE>
STATEMENTS OF CASH FLOWS (unaudited) (continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
For the Three Months Ended March 31,
-----------------------------------
1997 1996
---- ----
<S> <C> <C>
Reconciliation of net loss to net
cash used by operating activities:
Net loss $(4,060,089) (603,296)
Adjustments to reconcile net loss
to net cash used by
operating activities:
Net realized gain from venture
capital limited partnership
investments (413,631) --
Net realized gain from sales of
equity investments (1,644,262) (1,423,291)
Realized losses from investment
write-downs 2,500 77,091
Change in net unrealized fair value:
Equity investments 5,761,710 1,261,338
Note receivable -- 372,000
Changes in:
Due to/from related parties (47,386) (827,334)
Other, net (39,966) (47,988)
--------- ---------
Net cash used by operating activities $ (441,124) (1,191,480)
========= =========
</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, 1997, and December 31, 1996, and the related Statements of
Operations and Statements of Cash Flows for the three months ended March
31, 1997 and 1996, 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, 1996. The following notes to financial statements for
activity through March 31, 1997, supplement those included in the Annual
Report on Form 10-K.
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, 1997 and 1996, were as follows:
<TABLE>
<CAPTION>
1997 1996
---- ----
<S> <C> <C>
Management fees $ 92,563 107,664
Individual General Partners' compensation 9,658 7,809
Reimbursable operating expenses 217,794 115,473
</TABLE>
Certain reimbursable expenses have been accrued based upon interim
estimates prepared by the Managing General Partners and are adjusted to
actual periodically. Amounts due to related parties at March 31, 1997,
and December 31, 1996, were $11,795 and $60,463, respectively.
Management fees payable were $31,709 and $30,427 at March 31, 1997, and
December 31, 1996, 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,
1996, is in the 1996 Annual Report. Activity from January 1 through
March 31, 1997, consisted of:
<TABLE>
<CAPTION>
January 1 -
March 31, 1997
--------------
Principal
Investment Amount or Cost Fair
Industry/Company Position Date Shares Basis Value
- ---------------- -------- --------- -------- ----- -----
<S> <C> <C> <C> <C> <C>
Balance at January 1, 1997 $18,522,217 35,527,098
---------- ----------
Significant changes:
Communications
- --------------
NetChannel, Inc. Series B
Preferred
shares warrant
at $1.10;
exercised
01/97 10/96 136,363 (1,500) (1,500)
NetChannel, Inc. Series B
Preferred
shares 01/97 136,363 151,499 151,499
NetChannel, Inc. Convertible
note (1) 03/97 $150,000 150,833 150,833
NetChannel, Inc. Series B
Preferred
shares 03/97 163,635 0 179,999
UT Starcom, Inc. Common
share
warrant
at $0.6875;
expiring
05/99 05/94 145,456 0 162,911
UT Starcom, Inc. Series A
Preferred
shares 03/95 187,500 0 210,000
VOIS, Inc. Series A
Preferred
shares 02/97 62,500 62,500 62,500
Computer Systems and Software
- -----------------------------
Multiport, Inc. Series A
Preferred 05/93-
shares 08/93 2,440,000 0 54,979
Reflection Technology, Series F
Inc. Preferred shares 01/94 28,572 0 (58,573)
Reflection Technology, Common
Inc. shares 05/94 19,567 0 (40,112)
Reflection Technology, Series D
Inc. Preferred shares 11/94 869,565 0 (1,782,608)
Reflection Technology, Series G
Inc. Preferred shares 11/94 172,877 0 118,369
Reflection Technology, Series D
Inc. Preferred shares 11/94 163,043 0 (334,238)
Reflection Technology, Series J
Inc. Preferred shares 04/96 547,918 0 876,121
Reflection Technology, Common share
Inc. warrant at $.50;
expiring
04/01 04/96 359,750 0 (557,613)
Reflection Technology, Convertible 01/97&
Inc. notes (1) 03/97 $215,325 217,606 217,606
Environmental
- -------------
Thermatrix, Inc. Common
shares 06/96 1,105,847 0 (2,098,502)
Information Technology
- ----------------------
WorldRes, Inc. Series B
Preferred
shares 01/97 66,568 225,000 225,000
Medical/Biotechnology
- ---------------------
Biex, Inc. Series D
Preferred
shares 03/97 44,446 66,669 66,669
CV Therapeutics, Inc. Common
shares 11/96 37,693 0 124,602
Endocare, Inc. Convertible
note (1) 08/96 $18,750 (19,817) (19,817)
Endocare, Inc. Common
shares 01/97 1,750 6,125 5,159
Endocare, Inc. Common
shares 01/97 8,300 20,750 24,468
Inhale Therapeutic Common
Systems, Inc. shares 01/97 10,470 202,856 205,997
Inhale Therapeutic Common
Systems, Inc. shares 03/97 8,087 162,751 159,112
Penederm, Inc. Common
shares 02/97 2,784 48,024 33,060
Physiometrix, Common
Inc. shares 04/96 270,791 0 (233,330)
RedCell, Inc. Series B
Preferred
shares 12/94 132,979 0 (125,000)
SyStemix, Inc. Common
shares 1991-1992 115,173 (771,504) (1,761,801)
Systemix, Inc. Common
shares 06/96 660 (10,352) (10,096)
Systemix, Inc. Common
shares 10/96 6,665 (106,779) (101,955)
Pharmaceuticals
- ---------------
Shaman Pharmaceuticals, Common
Inc. shares 01/93 409,167 (0) (332,244)
Shaman Pharmaceuticals, Common
Inc. shares 02/95 135,000 (823,332) (1,334,326)
Venture Capital Limited Partnership Investments
- -----------------------------------------------
Various Limited Partnership
Interests various $2,216,264 12,500 (401,131)
---------- ----------
Total significant changes during the three
months ended March 31, 1997 (406,171) (6,163,962)
Other changes, net 1,404 (2,515)
---------- ----------
Total equity investments at March 31, 1997 $18,117,450 29,360,621
========== ==========
(1) Convertible notes include accrued interest. The interest rates on convertible notes
issued during 1997 ranged from 8% to 10%.
</TABLE>
Marketable Equity Securities
- ----------------------------
At March 31, 1997, and December 31, 1996, marketable equity
securities had aggregate costs of $5,956,899 and $5,552,176,
respectively, and aggregate market values of $10,223,321 and
$11,161,489, respectively. The net unrealized gains at March 31,
1997, and December 31, 1996, included gross gains of $4,732,523 and
$6,140,674, respectively.
Biex, Inc.
- ----------
In March of 1997, the Partnership made an additional investment in
the company by purchasing 44,446 Series D Preferred shares for
$66,669.
Endocare, Inc.
- --------------
In January of 1997, the Partnership made an additional investment in
the company by purchasing 1,750 common shares for $6,125. In
addition, the Partnership converted its $18,750 note receivable,
including accrued interest of $2,000, into 8,300 common shares at a
total cost of $20,750. At March 31, 1997, the Partnership recorded
an increase in the change in fair value of $2,752 to reflect the
publicly-traded market price for the above Endocare investments; a
portion of the fair value was adjusted to reflect a discount for
restricted securities.
Multiport, Inc.
- ---------------
Based upon the fair value of Multiport's underlying net assets at
March 31, 1997, the Partnership recorded a fair value increase of
$54,979 for its investments. Multiport's assets consist of remaining
net proceeds to be received from a 1994 asset sale agreement, cash
and notes receivable.
NetChannel, Inc.
- ----------------
In January of 1997, the Partnership cash exercised its Series B
Preferred share warrant for $149,999 and received 136,363 Series B
Preferred shares. Then in March of 1997, the Partnership issued a
$150,000 convertible note receivable to the company and received
163,635 Series B Preferred shares. The Partnership also recorded a
fair value increase of $179,999 at March 31, 1997, for the Series B
Preferred shares received.
Redcell, Inc.
- -------------
Subsequent to March 31, 1997, the company had a new round of
financing in which the Partnership did not participate. The pricing
of this round indicated a decrease in fair value of $125,000 for the
Partnership's existing investment.
Reflection Technology, Inc.
- ---------------------------
During the first quarter of 1997, the Partnership issued $215,325 in
convertible notes receivable to the company. In addition, the
Partnership recorded a decrease in fair value of $1,778,654 for its
existing investments, based on the Managing General Partners'
opinion.
Shaman Pharmaceuticals, Inc.
- ----------------------------
During the first quarter of 1997, the Partnership sold 205,833 common
shares of the company for total proceeds of $999,572 and realized a
gain of $176,240. At March 31, 1997, the Partnership recorded a
decrease in the change in fair value of $843,238 to reflect the
publicly-traded market price of its investments. The decrease
included a decrease of $401,374 due to the sale mentioned above.
Subsequent to quarter end, the Partnership sold its remaining
investment in the company for total proceeds of $2,703,297 and
realized a gain of $1,411,896.
SyStemix Inc.
- -------------
In January of 1997, the Partnership sold its entire investment in the
company for total proceeds of $2,356,657 and realized a gain of
$1,468,022.
UT Starcom, Inc.
- ----------------
During the first quarter of 1997, the company closed a Series C
Preferred share round of financing in which the Partnership did not
participate. The pricing of this round, in which third parties
participated, indicated a fair value increase of $372,911 for the
Partnership's existing investment.
VOIS, Inc.
- ----------
In February of 1997, the Partnership made an additional investment in
the company by purchasing 62,500 Series A Preferred shares for
$62,500.
WorldRes, Inc.
- --------------
In January of 1997, the Partnership invested in the company by
purchasing 66,568 Series B Preferred shares for $225,000.
Venture Capital Limited Partnership Investments
- -----------------------------------------------
The Partnership recorded a cost basis increase of $12,500 in venture
capital limited partnership investments during the three months ended
March 31, 1997, as a result of an additional contribution. The
Partnership recorded a fair value decrease of $401,131 as a result of
stock distributions from one venture capital limited partnership
investment, partially offset by the additional contribution discussed
above.
During the first three months of 1997, the Partnership received common
stock distributions of Inhale Therapeutics Systems, Inc., and
Penederm, Inc., with fair values of $365,607 and $48,024,
respectively; these distributions were from profits and were recorded
as realized gains from venture capital limited partnership
investments.
Other Equity Investments
- ------------------------
Other significant changes reflected above relate to market value
fluctuations or the elimination of a discount relating to selling
restrictions for publicly-traded portfolio companies. Portions of
the Partnership's Physiometrix, Inc., and Thermatrix, Inc., shares
are restricted.
Subsequent to quarter end, the fair value of the Partnership's
Thermatrix, Inc., investment decreased by $2,513,106 as a result of a
decrease in the publicly-traded market price at May 2, 1997. Also
subsequent to quarter end, in a press release dated May 6, 1997,
Splash Technology Holding Inc. announced an agreement to acquire
Quintar Corporation for $11.7 million in cash, subject to customary
closing conditions, including Quintar Corporation shareholder
approval. Actual proceeds to the Partnership will be finalized upon
completion of the transaction.
4. Notes Receivable, Net
---------------------
Activity from January 1, 1997, through March 31, 1997, consisted of:
<TABLE>
<S> <C>
Balance at January 1, 1997 $ 29,137
1997 activity:
Notes receivable issued 150,500
Repayments of notes receivable (6,635)
Decrease in accrued interest (4,836)
-------
Total notes receivable, net, at March 31, 1997 $168,166
=======
The Partnership had accrued interest of $10,338 and $15,174 at March
31, 1997, and December 31, 1996, respectively.
There was no allowance for loan losses at March 31, 1997, and
December 31, 1996.
5. Promissory Notes
----------------
At December 31, 1996, the Partnership had a promissory note to an
unaffiliated third party of $1,363,332. The note was fully repaid in
February, 1997, upon maturity. Interest expense for this note was
$14,626 during the three months ended March 31, 1997.
6. Commitments and Contingencies
-----------------------------
The Partnership is a party to financial instruments with off-balance-
sheet risk in the normal course of its business. Generally, these
instruments are commitments for future equity 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, 1997, the Partnership had unfunded commitments as follows:
</TABLE>
<TABLE>
<S> <C>
Type
- ----
Equity investments $1,050,000
Term notes 383,825
Venture capital limited partnership investments 143,650
---------
Total $1,577,475
=========
</TABLE>
In 1996, the Partnership jointly guaranteed with two affiliated
partnerships, a $1,000,000 line of credit between a financial
institution and a portfolio company in the computer systems and
software industry. If the affiliated partnerships are unable to
finance their portion of the guarantee, the Partnership may be liable
for the entire $1,000,000.
<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, 1997, net cash used by
operating activities totaled $441,124. The Partnership paid
management fees of $91,281 and reimbursed related parties for
operating expenses of $266,462. In addition, $9,658 was paid to the
Individual General Partners as compensation for their services.
Other operating expenses of $52,355 were paid and interest income of
$21,608 was received. The Partnership also paid interest of $42,976
on borrowings.
During the three months ended March 31, 1997, the Partnership issued
$150,500 in notes receivable to a portfolio company in the computer
systems and software industry and funded equity investments of
$888,118 mainly to portfolio companies in the communications,
information technology, and computer systems and software industries.
Repayments of equity investments and notes receivable provided cash
of $6,635 and proceeds from equity investment sales were $3,416,447,
of which $60,219 related to sales prior to December 31, 1996, which
have been settled. At March 31, 1997, the Partnership was committed
to fund additional investments totaling $1,577,475 and has
outstanding guarantees up to $1,000,000 as disclosed in Note 6 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 $1,395,788 at March 31,
1997. At March 31, 1997, there was no outstanding balance. The
Partnership's investment in Shaman Pharmaceuticals, Inc., is pledged
as collateral. Subsequent to quarter end, the Partnership sold its
remaining investment in Shaman Pharmaceuticals, Inc., for total
proceeds of $2,703,297, which eliminated the Partnership's borrowing
capacity. The Partnership also repaid its promissory note payable of
$1,363,332 in February, 1997.
Cash and cash equivalents at March 31, 1997, were $1,982,676. Future
interest income earned on notes receivable, 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 $4,060,089 for the three months ended March 31, 1997,
compared to $603,296 during the same period in 1996. The increase in
net loss was primarily due to a $4,500,372 decrease in the change in
net unrealized fair value of equity investments. This decrease was
partially offset by a $413,631 increase in net realized gain from
venture capital limited partnership investments, a $372,000 increase
in the change in net realized fair value of notes receivable, and a
$220,971 increase net realized gain from sales of equity investments.
During the quarter ended March 31, 1997, the decrease in fair value
of equity investments of $5,761,710 was primarily related to
portfolio companies in the environmental, computer systems and
software and medical/biotechnology industries. During the same
quarter in 1996, the decrease of $1,261,338 was primarily due to
portfolio companies in the pharmaceuticals and computer systems and
software industries.
Net realized gain from venture capital limited partnership
investments was $413,631 for the quarter ended March 31, 1997. The
gain represented distributions from profits of a venture capital
limited partnership. There was no such gain realized during the same
period in 1996.
During the quarter ended March 31, 1997, there was no change in fair
value of notes receivable compared to a $372,000 decrease for the
quarter ended March 31, 1996, based upon the level of loan losses
reserves deemed adequate by the Managing General Partners.
During the quarter ended March 31, 1997, net realized gain from sales
of equity investments of $1,644,262 was substantially due to the sale
of Systemix, Inc., common stock. During the quarter ended March 31,
1996, net realized gain of $1,423,291 was due to sales of Shaman
Pharmaceuticals, Inc., common stock.
Total operating expenses were $276,273 and $230,681 for the quarters
ended March 31, 1997 and 1996, respectively. The slight increase was
primarily due to higher investment operations and administrative and
investor service expenses from increased portfolio activities,
partially offset by lower interest expense.
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, 1997.
(b) Financial Data Schedule for the quarter ended and as of March
31, 1997 (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 9, 1997 By: /s/Debbie A. Wong
-------------------------------------
Debbie A. Wong
Vice President
and Controller
<TABLE> <S> <C>
<ARTICLE>6
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE FORM 10-Q AS OF MARCH 31, 1997, AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
<MULTIPLIER>1
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<PERIOD-TYPE> 3-MOS
<INVESTMENTS-AT-COST> 18,285,616
<INVESTMENTS-AT-VALUE> 29,528,787
<RECEIVABLES> 0
<ASSETS-OTHER> 8,809
<OTHER-ITEMS-ASSETS> 1,982,676
<TOTAL-ASSETS> 31,520,272
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 97,629
<TOTAL-LIABILITIES> 97,629
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 20,179,472
<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> 11,243,171
<NET-ASSETS> 31,422,643
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 24,722
<OTHER-INCOME> 0
<EXPENSES-NET> (378,494)
<NET-INVESTMENT-INCOME> (353,772)
<REALIZED-GAINS-CURRENT> 2,055,393
<APPREC-INCREASE-CURRENT> (5,761,710)
<NET-CHANGE-FROM-OPS> (4,060,089)
<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> (4,060,089)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 92,563
<INTEREST-EXPENSE> 14,626
<GROSS-EXPENSE> 379,554
<AVERAGE-NET-ASSETS> 33,452,688
<PER-SHARE-NAV-BEGIN> 43
<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> 47
<EXPENSE-RATIO> 1.13
<AVG-DEBT-OUTSTANDING> 681,666
<AVG-DEBT-PER-SHARE> 1.7
<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>
