<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 September 30, 1998
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)
(650) 345-2200
--------------------------------------------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes X No
--- ---
No active market for the units of limited partnership 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)
September 30, December 31,
1998 1997
------------ -----------
<S> <C> <C>
ASSETS
Investments:
Equity investments (cost basis
of $12,859,924 and $12,492,981 for
1998 and 1997, respectively) $15,131,301 14,234,001
Notes receivable -- 4,501
---------- ----------
Total investments 15,131,301 14,238,502
Cash and cash equivalents 3,121,432 8,821,077
Due from related parties 875 --
Other assets 5,019 10,100
---------- ----------
Total assets $18,258,627 23,069,679
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable and accrued expenses $ 37,050 47,799
Due to related parties -- 119,285
Distributions payable 1,386,755 3,544,571
Other liabilities 17,162 3,736
---------- ----------
Total liabilities 1,440,967 3,715,391
Commitments, contingencies and
subsequent event
(Notes 2, 3, 5 and 6)
Partners' capital:
Limited Partners
(Units outstanding of 400,000
for both 1998 and 1997) 14,047,738 16,288,081
Managing General Partners 498,545 1,325,187
Net unrealized fair value increase
from cost of equity investments 2,271,377 1,741,020
---------- ----------
Total partners' capital 16,817,660 19,354,288
---------- ----------
Total liabilities and
partners' capital $18,258,627 23,069,679
========== ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF OPERATIONS (unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
For the Three For the Nine
Months Ended Months Ended
September 30, September 30,
------------------------- ----------------------
1998 1997 1998 1997
---- ---- ---- ----
<S> <C> <C> <C> <C>
Income:
Notes receivable interest $ 4,954 2,340 4,954 17,685
Short-term investment interest 25,794 39,439 86,388 85,348
--------- --------- --------- ----------
Total income 30,748 41,779 91,342 103,033
Costs and expenses:
Management fees 57,293 64,617 164,392 235,981
Individual General Partners'
compensation 14,031 10,500 33,947 35,401
Operating expenses 473,648 312,249 1,142,040 848,839
--------- --------- --------- ----------
Total costs and expenses 544,972 387,366 1,340,379 1,120,221
--------- --------- --------- ----------
Net operating loss (514,224) (345,587) (1,249,037) (1,017,188)
Net realized gain (loss) from
sales of equity investments 287,163 (31,129) 178,402 3,417,413
Net realized gain from venture
capital limited partnership
investments -- 100,419 -- 514,050
Recoveries from investments
previously written off -- -- 3,650 --
Realized losses from
investment write-downs -- (3,146,346) -- (3,146,346)
--------- --------- --------- ----------
Net realized loss (227,061) (3,422,643) (1,066,985) (232,071)
Change in net unrealized
fair value of equity investments (2,221,396) 1,970,382 530,357 (10,927,781)
--------- --------- --------- ----------
Net loss $(2,448,457) (1,452,261) (536,628) (11,159,852)
========= ========= ========= ==========
Net realized loss per unit $ -- (7) (2) --
========= ========= ========= ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF CASH FLOWS (unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
For the Nine Months
Ended September 30,
-----------------------------
1998 1997
---------- ----------
<S> <C> <C>
Cash flows from operating activities:
Interest received $ 86,504 96,780
Interest paid -- (42,976)
Cash paid to vendors (162,608) (261,346)
Cash paid to related parties (1,290,173) (954,079)
--------- ---------
Net cash used by operating activities (1,366,277) (1,161,621)
--------- ---------
Cash flows from investing activities:
Notes receivable issued (16,598) (150,500)
Purchase of equity investments (979,997) (1,619,510)
Repayments of equity investments
and notes receivable 204,848 11,678
Proceeds from sales of equity
investments 612,545 8,273,094
Recoveries from investments
previously written off 3,650 --
Distributions from venture capital
limited partnerships -- 19,709
--------- ---------
Net cash (used) provided by
investing activities (175,552) 6,534,471
--------- ---------
Cash flows from financing activities:
Distribution to partners (4,157,816) --
Repayments of promissory notes -- (1,363,332)
--------- ---------
Net cash used by financing
activities (4,157,816) (1,363,332)
--------- ---------
Net (decrease) increase in cash
and cash equivalents (5,699,645) 4,009,518
Cash and cash equivalents at
beginning of year 8,821,077 1,402,668
--------- ---------
Cash and cash equivalents $3,121,432 5,412,186
at September 30 ========= =========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
STATEMENTS OF CASH FLOWS (unaudited)(continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
For the Nine Months
Ended September 30,
-------------------------------
1998 1997
----------- -----------
<S> <C> <C>
Reconciliation of net loss to
net cash used by operating activities:
Net loss $ (536,628) (11,159,852)
Adjustments to reconcile net loss to net
cash used by operating activities:
Realized losses from investment
write-downs -- 3,146,346
Net realized gain from sales
of equity investments (178,402) (3,417,413)
Net realized gain from venture
capital limited partnership
investments -- (514,050)
Recoveries from investments
previously written off (3,650) --
Change in net unrealized fair value
of equity investments (530,357) 10,927,781
Changes in:
Due to/from related parties (120,160) (90,496)
Other changes, net 2,920 (53,937)
--------- ---------
Net cash used by operating activities $(1,366,277) (1,161,621)
========= =========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (unaudited)
- ----------------------------------------
1. General
-------
In the opinion of the Managing General Partners, the accompanying interim
financial statements reflect all adjustments necessary for a fair
presentation of the financial position, results of operations, and cash
flows for the interim periods presented. These statements should be read
in conjunction with the Annual Report on Form 10-K for the year ended
December 31, 1997. Allocation of income and loss to Limited and General
Partners is based on cumulative income and loss. Adjustments, if any, are
reflected in the current quarter balances.
2. Related Party Transactions
--------------------------
Related party costs are included in costs and expenses shown on the
Statements of Operations. Related party costs for the nine months ended
September 30, 1998 and 1997, were as follows:
<TABLE>
<CAPTION>
1998 1997
-------- --------
<S> <C> <C>
Management fees $164,392 235,981
Individual General Partners' compensation 33,947 35,401
Reimbursable operating expenses 971,674 592,201
</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 $22,659 due from related parties at
September 30, 1998 and $78,672 due to related parties at December 31, 1997,
for such expenses.
Amounts payable for management fees were $21,784 and $40,613 at September
30, 1998, and December 31, 1997, respectively. Pursuant to the Partnership
Agreement, quarterly management fees are equal to one quarter of one
percent of the fair value of Partnership assets.
Officers of the Managing General Partners occasionally receive stock
options as compensation for serving on the Boards of Directors of portfolio
companies. At September 30, 1998, the Partnership had an indirect interest
in Endocare, Inc. and Physiometrix, Inc. non-transferable options at an
exercise price higher than the current market value.
The Managing General Partners allocate operating expenses incurred in
connection with the business of the Partnership based on employee hours
incurred. In the third quarter of 1998, the Managing General Partners
reevaluated allocations to the Partnership and determined that they had not
fully recovered allocable operating expenses, primarily salary and
benefits, as permitted by the Partnership Agreement. As a result, the
Partnership was charged additional operating expenses in the third quarter
of 1998 of $180,598 consisting of $16,683 for the nine months ended
September 30, 1997 and $163,915 for prior years. Had the additional
expenses been recorded in prior years, total operating expenses for the
three months ended September 30, 1998 and 1997 would have been $293,050 and
$328,932, respectively, and total operating expenses for the nine months
ended September 30, 1998 and 1997 would have been $961,442 and $865,522,
respectively.
<PAGE>
3. Equity Investments
------------------
<TABLE>
A full listing of the Partnership's equity investments at December 31, 1997 is in the 1997 Annual
Report. Activity from January 1 through September 30, 1998 consisted of:
<CAPTION>
January 1 through
September 30, 1998
-------------------------
Principal
Investment Amount or Cost Fair
Industry/Company Position Date Shares Basis Value
- ----------------- ---------- ------------ ----------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Balance at January 1, 1998 $12,492,981 14,234,001
---------- ----------
Significant changes:
Communications
- --------------
NetChannel, Series B
Inc. Preferred 10/96-
shares 05/97 1,100,757 (384,398) (581,293)
NetChannel, Convertible
Inc. notes various $180,172 (185,309) (185,309)
NetChannel, Escrowed sales
Inc. proceeds 06/98 $74,761 74,761 74,761
Women.com Series D
Networks Preferred
shares 06/98 91,185 299,999 299,999
Computer Equipment, Systems and Software
- ----------------------------------------
Adept Technology, Common
Inc. shares 10/97 14,328 0 (52,369)
Splash Technology, Escrowed sales
Holdings, Inc. proceeds 05/97 $95,000 0 (280,000)
Environmental
- -------------
Thermatrix, Common 06/96 1,105,847 0 1,188,721
Inc. shares
Medical/Biotechnology
- ---------------------
CV Therapeutics Common
Inc. shares various 37,693 0 (107,123)
Endocare, Common
Inc. shares 04/98 35,714 124,999 91,071
Neurex Common
Corporation shares 09/96 3,379 (70,959) (45,448)
Periodontix, Series C
Inc. Preferred shares 02/98 106,122 259,999 259,999
Physiometrix, Common
Inc. shares 04/96 270,791 0 (138,980)
Urogen Convertible
Corporation note (1) 06/98 $250,000 250,000 250,000
Retail/Consumer Products
- ------------------------
Yes! Entertainment Common
Corporation shares 06/95 66,666 0 (89,799)
Venture Capital Limited Partnership Investments
- -----------------------------------------------
Various Limited
Partnership
Interests various $2,303,764 (2,683) 239,478
---------- ----------
Total significant changes during the nine
months ended September 30, 1998 366,409 923,708
Other changes, net 534 (26,408)
---------- ----------
Total equity investments at September 30, 1998 $12,859,924 15,131,301
========== ==========
(1) Convertible notes include accrued interest. The interest rate on notes issued in 1998 was 8%.
</TABLE>
Marketable Equity Securities
- ----------------------------
At September 30, 1998, and December 31, 1997, marketable equity securities
had aggregate costs of $3,181,212 and $3,157,615, respectively, and
aggregate market values of $2,481,361 and $2,414,032, respectively. The
net unrealized losses at September 30, 1998 and December 31, 1997 included
gross gains of $420,742 and $350,879, respectively.
Endocare, Inc.
- --------------
In April 1998, the Partnership purchased 35,714 common shares for $124,999
in a private placement. At September 30, 1998, the Partnership recorded a
$44,595 decrease in the fair value of its investment based on the publicly-
traded market price of the company's common shares.
NetChannel, Inc.
- ----------------
In June 1998, America Online, Inc., completed its acquisition of the
company. The Partnership realized a loss of $89,873 on the completion of
the sale transaction. Proceeds of $219,762 and $204,848 were received from
the sale of the Partnership's preferred shares and repayment of convertible
and other notes receivable. An amount of $74,761 in future sale proceeds
will remain in escrow through December 1999 pending final resolution of the
sale.
Neurex, Inc.
- ------------
In February 1998, the Partnership sold 3,379 common shares for total
proceeds of $61,884 and realized a loss of $9,075.
Periodontix, Inc.
- -----------------
In February 1998, the Partnership purchased 106,122 Series C Preferred
shares for $259,999.
Splash Technology Holdings, Inc.
- --------------------------------
In August 1998, the Partnership realized a gain of $281,625 on receipt of
previously escrowed sales proceeds which arose from the sale of its
investment in Quintar Corporation to the company.
Urogen Corporation
- ------------------
In June 1998, the Partnership issued $250,000 in convertible notes
receivable to the company and received a warrant to purchase 125,000 common
shares at $0.74 per share prior to June, 2005.
Women.com Networks (formerly Wire Networks, Inc.)
- -----------------------------------------------
In February 1998, the company changed its name from Wire Networks, Inc. to
Women.com Networks. In June 1998, the Partnership made an additional
investment in the company by purchasing 91,185 Series D Preferred shares
for $299,999. The pricing of this round, in which third parties
participated, indicated a $12,210 increase in the fair value of the
Partnership's existing investment.
Venture Capital Limited Partnerships
- ------------------------------------
The Partnership made additional investments totaling $45,000 in venture
capital limited partnerships during the nine months ended September, 1998.
The Partnership also received stock distributions of Hybridon, Inc. and
Neurex Corporation with fair values of $42,161 and $5,522, respectively,
which were recorded as returns of capital.
The Partnership recorded a $239,748 increase in fair value as a result of a
net increase in the fair value of the underlying 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 increased by $858,466 as a result of an increase in the
publicly-traded market price at November 10, 1998.
4. Cash and Cash Equivalents
-------------------------
Cash and cash equivalents at September 30, 1998 and December 31, 1997
consisted of:
<TABLE>
1998 1997
------ ------
<S> <C> <C>
Demand accounts $ 41,079 5,543,116
Money-Market accounts 3,080,353 3,277,961
--------- ---------
Total $3,121,432 8,821,077
========= =========
At September 30, 1998, the majority of the money market funds were on
deposit at a single financial institution.
</TABLE>
5. Distributions
-------------
In September 1998, the Managing General Partners declared distributions
($3.47 per unit) for unit holders as of July 2, 1998. Distributions of
$613,245 were paid in September 1998 and the balance of $1,386,755 will be
paid in the fourth quarter of 1998. Unnegotiated distribution checks, if
any after a reasonable amount of time, are recorded as other liabilities.
In October 1997, the Managing General Partners declared distributions ($9
per unit) for Unit holders as of September 30, 1997. Distributions of
$455,429 were paid prior to December 31, 1997 and the balance of $3,544,571
was paid in February 1998.
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 September 30, 1998, the Partnership had unfunded
commitments as follows:
<TABLE>
<CAPTION>
Type
- ----
<S> <C>
Equity investments $337,750
Venture capital limited partnership investments 56,150
-------
$393,900
=======
</TABLE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Liquidity and Capital Resources
- -------------------------------
During the nine months ended September 30, 1998, net cash used by operating
activities totaled $1,366,277. The Partnership paid management fees of
$183,221 to the Managing General Partners and reimbursed related parties
for operating expenses of $1,073,005 in 1998. In addition, $33,947 was
paid to the Individual General Partners as compensation for their services.
Other operating expenses of $162,608 were paid and interest income of
$86,504 was received.
During the nine months ended September 30, 1998, the Partnership funded
equity investments of $979,997 mostly to portfolio companies in the
medical/ biotechnology and communications industries. Proceeds from the
sales of equity investments were $612,545 and repayments of equity
investments and notes receivable totaled $204,848. Distributions to
partners of $4,157,816 were paid. At September 30, 1998, the Partnership
had distributions payable of $1,386,755 and was committed to fund $393,900
in additional investments.
Cash and cash equivalents at September 30, 1998, were $3,121,432. Future
proceeds from investment sales and interest income on short-term
investments 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 $2,448,457 for the quarter ended September 30, 1998, compared
to a net loss of $1,452,261 during the same period in 1997. The change was
primarily due to a decrease of $4,191,778 in net unrealized fair value of
equity investments, partially offset by a $3,146,346 decrease in realized
losses from investment write-downs.
During the quarter ended September 30, 1998, the decrease in equity
investment fair value of $2,221,396 was primarily attributable to a
decrease in a portfolio company in the environmental industry. During the
same period in 1997, the increase in fair value of equity investments of
$1,970,382 was primarily attributable to increases in portfolio companies
in the computer systems and software and pharmaceuticals industries.
Net realized losses from investment write-downs of $3,146,346 for the
quarter ended September 30, 1997, related to a portfolio company in the
computer systems and software industry.
As disclosed in Note 2 to the financial statements, operating expenses for
the three months ended September 30, 1998 include additional expenses of
$180,598 related to prior years which were not previously charged to the
Partnership. Had the additional expenses been recorded in prior years,
operating expenses for the quarters ended September 30, 1998 and 1997 would
have been $293,050 and $328,932, respectively. The decrease is
attributable to decreased administrative and investor services expenses due
to decreased levels of investment activity.
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 nine months compared to corresponding nine months in the preceding
- ------------------------------------------------------------------------
year
- ----
Net loss was $536,628 for the nine months ended September 30, 1998,
compared to a net loss of $11,159,852 during the same period in 1997. The
change was primarily due to an increase of $11,458,138 in the net
unrealized fair value of equity investments, and a $3,146,346 decrease in
realized losses from investment write-downs, partially offset by a
$3,239,011 decrease in realized gains from the sales of equity investments.
During the nine months ended September 30, 1998, the increase in equity
investment fair value of $530,357 was mainly attributable to a portfolio
company in the environmental industry. During the same period in 1997, the
decrease of $10,927,781 was primarily attributable to portfolio companies
in the environmental, computer systems and software, and pharmaceuticals
industries, partially offset by increases in portfolio companies in the
communications industries.
Net realized losses from investment write-downs of $3,146,346 for the nine
months ended September 30, 1997 related to a portfolio company in the
computer systems and software industry.
During the nine months ended September 30, 1998, net realized gain on sales
of equity investments was $178,402 primarily related to the receipt of
escrowed sales proceeds from Splash Technology Holdings, Inc., partially
offset by a loss on the sale of NetChannel, Inc. A net realized gain from
sales of equity investments of $3,417,413 during the same period in 1997
was primarily due to the common stock sales of SyStemix, Inc., and Shaman
Pharmaceuticals, Inc.
Total operating expenses were $1,142,040 and $848,839 for the nine months
ended September 30, 1998 and 1997, respectively. As disclosed in Note 2 to
the financial statements, operating expenses for the nine months ended
September 30, 1998 include additional expenses of $180,598 related to prior
years which were not previously charged to the Partnership. Had the
additional expenses been recorded in prior years, operating expenses for
the nine months ended September 30, 1998 and 1997 would have been $961,442
and $865,522, respectively. The increase is attributable to increased
administrative and investors services expenses due to increased levels of
investment monitoring activity and increased computer expenses.
The Year 2000
- -------------
The widespread use of computer programs that rely on two-digit date
programs to perform computations and decision-making functions may cause
computer systems to malfunction in the year 2000 and lead to significant
business delays and disruptions.
The Managing General Partners have completed a preliminary assessment of
the internal financial, information and operating systems which it provides
to the Partnership. Implementation and testing of necessary system
modifications is in progress and will be completed well before December 31,
1999. The Managing General Partners are also monitoring the progress of
software vendors and third-party processors on which they rely, as well as
the progress of portfolio companies in which the Partnership has made
significant investments.
The Managing General Partners do not expect the cost of the internal system
modifications to be material to the Partnership's financial
statements.
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 September 30, 1998.
b) Financial Data Schedule for the nine months ended and as of September
30, 1998 (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: November 12, 1998 By: /s/Michael R. Brenner
-----------------------------------------
Michael R. Brenner
Controller
<TABLE> <S> <C>
<ARTICLE>6
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE FORM 10-Q AS OF SEPTEMBER 30, 1998 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
<MULTIPLIER>1
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<PERIOD-TYPE> 9-MOS
<INVESTMENTS-AT-COST> 12,859,924
<INVESTMENTS-AT-VALUE> 15,131,301
<RECEIVABLES> 0
<ASSETS-OTHER> 5,894
<OTHER-ITEMS-ASSETS> 3,121,432
<TOTAL-ASSETS> 18,258,627
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,440,967
<TOTAL-LIABILITIES> 1,440,967
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 14,546,283
<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> 2,271,377
<NET-ASSETS> 16,817,660
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 91,342
<OTHER-INCOME> 0
<EXPENSES-NET> 1,340,379
<NET-INVESTMENT-INCOME> (1,249,037)
<REALIZED-GAINS-CURRENT> 182,052
<APPREC-INCREASE-CURRENT> 530,357
<NET-CHANGE-FROM-OPS> (536,628)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2,000,000)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (2,536,628)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 164,392
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,346,172
<AVERAGE-NET-ASSETS> 18,085,974
<PER-SHARE-NAV-BEGIN> 41
<PER-SHARE-NII> (2)
<PER-SHARE-GAIN-APPREC> 0 <F1>
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (4)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 35
<EXPENSE-RATIO> 7.4
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<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>
