<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 June 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. 814-82
TECHNOLOGY FUNDING VENTURE PARTNERS V, AN AGGRESSIVE GROWTH FUND, L.P.
----------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 94-3094910
- ------------------------------- ----------------------------------
(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)
June 30, December 31,
1998 1997
------------ ------------
<S> <C> <C>
ASSETS
Investments:
Equity investments (cost basis
of $23,565,390 and $22,803,180 at
1998 and 1997, respectively) $35,695,936 37,077,544
Notes receivable -- 4,479
Other investments (cost basis of
$664,299 in 1997) -- 398,579
---------- ----------
Total investments 35,695,936 37,480,602
Cash and cash equivalents 567,934 1,839,535
Due from related parties 46,892 86,078
Other assets 12,054 9,655
---------- ----------
Total assets $36,322,816 39,415,870
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable and accrued expenses $ 21,050 45,893
---------- ----------
Total liabilities 21,050 45,893
Commitments, contingencies and
subsequent events (Notes 3, 4 and 8)
Partners' capital:
Limited Partners
(Units outstanding of
400,000 in both 1998 and 1997) 24,180,830 25,359,042
General Partners (9,610) 2,291
Net unrealized fair value increase
from cost of:
Equity investments 12,130,546 14,274,364
Other investments -- (265,720)
---------- ----------
Total partners' capital 36,301,766 39,369,977
---------- ----------
Total liabilities and
partners' capital $36,322,816 39,415,870
========== ==========
</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,
------------------------ ----------------------
1998 1997 1998 1997
---- ---- ---- ----
<S> <C> <C> <C> <C>
Income:
Secured notes receivable interest $ -- 12,485 -- 25,727
Short-term investment interest 5,241 9,769 13,432 18,916
Dividend income -- -- -- 280,010
--------- --------- --------- ---------
Total income 5,241 22,254 13,432 324,653
Costs and expenses:
Management fees 97,498 97,499 194,997 194,998
Individual General Partners'
compensation 13,200 13,111 18,397 18,594
Operating expenses:
Investment operations 46,977 92,575 231,570 156,780
Administrative and investor services 145,298 87,385 319,448 195,251
Professional fees 15,623 37,704 27,924 51,709
Computer services 37,367 23,291 113,373 52,518
Expenses absorbed by General
Partners (124,324) -- (124,324) --
--------- --------- --------- ---------
Total operating expenses 120,941 240,955 567,991 456,258
--------- --------- --------- ---------
Total costs and expenses 231,639 351,565 781,385 669,850
--------- --------- --------- ---------
Net operating loss (226,398) (329,311) (767,953) (345,197)
Net realized gain from
sales of equity investments 31,684 187,529 5,305 426,055
Realized losses from investment
write-downs (664,299) -- (664,299) --
Net realized gain from venture capital
limited partnership investments 230,820 19,048 236,834 19,048
--------- --------- --------- ---------
Net realized (loss) income (628,193) (122,734) (1,190,113) 99,906
Change in net unrealized
fair value:
Equity investments (1,316,706) 2,739,852 (2,143,818) 4,304,761
Other investments 265,720 -- 265,720 --
--------- --------- --------- ---------
Net (loss) income $(1,679,179) 2,617,118 (3,068,211) 4,404,667
========= ========= ========= =========
Net realized loss per Unit $ (2) -- (3) --
========= ========= ========= =========
</TABLE>
See accompanying notes to financial statements
<PAGE>
STATEMENTS OF CASH FLOWS (unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
For the Six Months Ended June 30,
---------------------------------
1998 1997
--------- ---------
<S> <C> <C>
Cash flows from operating activities:
Interest and dividend income received $ 14,410 313,613
Cash paid to vendors (107,687) (169,123)
Cash paid to related parties (661,754) (536,217)
--------- ---------
Net cash used by
operating activities (755,031) (391,727)
--------- ---------
Cash flows from investing activities:
Purchase of equity investments (971,318) (560,215)
Notes receivable issued (2,766) (33,902)
Proceeds from sales of
equity investments 103,634 531,123
Repayments of convertible and other
notes receivable 92,047 57,222
Distributions from venture capital
limited partnership investments 261,833 23,133
--------- ---------
Net cash (used) provided by
investing activities (516,570) 17,361
--------- ---------
Net decrease in cash and
cash equivalents (1,271,601) (374,366)
Cash and cash equivalents at
beginning of year 1,839,535 1,617,085
--------- ---------
Cash and cash equivalents
at June 30 $ 567,934 1,242,719
========= =========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF CASH FLOWS (unaudited) (continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
For the Six Months Ended June 30,
---------------------------------
1998 1997
--------- ---------
<S> <C> <C>
Reconciliation of net (loss)
income to net cash used by
operating activities:
Net (loss) income $(3,068,211) 4,404,667
Adjustments to reconcile net (loss)
income to net cash used by operating
activities:
Amortization of discount on secured
notes receivable (339) --
Realized gain from sales of
equity investments, net (5,305) (426,055)
Realized losses from investment
write-downs 664,299 --
Net realized gain from venture capital
limited partnership investments (236,834) (19,048)
Change in net unrealized fair value:
Equity investments 2,143,818 (4,304,761)
Other investments (265,720) --
Changes in:
Due from related parties 39,186 (20,732)
Other changes, net (25,925) (25,798)
--------- ---------
Net cash used by operating activities $ (755,031) (391,727)
========= =========
</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. Financing of Partnership Operations
-----------------------------------
The Managing General Partners expect cash received from the future
liquidation of Partnership investments will provide the necessary
liquidity to fund Partnership operations. The Partnership may be
dependent upon the financial support of the Managing General Partners to
fund operations if future proceeds are not received timely. The Managing
General Partners have committed to support the Partnership's working
capital requirements through short-term 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, 1998 and 1997, were as follows:
<TABLE>
<CAPTION>
1998 1997
-------- --------
<S> <C> <C>
Management fees $194,997 194,998
Reimbursable operating expenses 611,870 301,893
Individual General Partners' compensation 18,397 18,594
Expenses absorbed by General Partners (124,324) --
</TABLE>
Certain reimbursable expenses have been accrued based upon interim
estimates prepared by the Managing General Partners and are adjusted to
actual cost periodically. There were $79,392 and $151,077 due from
related parties at June 30, 1998, and December 31, 1997, respectively,
for such reimbursable expenses.
Amounts payable for management fees were $32,500 and $64,999 at June 30,
1998, and December 31, 1997.
Pursuant to the Partnership Agreement, the Partnership shall reimburse
the Managing General Partners for operational costs incurred by the
Managing General Partners in conjunction with the business of the
Partnership. The Partnership may not pay nor reimburse the Managing
General Partners for operational costs that aggregate more than 1% of
total Limited Partner capital contributions. For the six months ended
June 30, 1998, operating expenses incurred by the Managing General
Partners exceeded the limitation by $124,324, resulting in this amount
being absorbed by the Managing General Partners.
Officers of the Managing General Partners occasionally receive stock
options as compensation for serving on the Boards of Directors of
portfolio companies. At June 30, 1998, the Partnership had an indirect
interest in Conversion Technologies, Inc. and Physiometrix, Inc., non-
transferable options at an exercise price higher than the current market
value.
<PAGE>
4. 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 June 30, 1998, consisted of:
<CAPTION>
January 1 through
June 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 $22,803,180 37,077,544
---------- ----------
Significant changes:
Biotechnology
- -------------
Prolinx, Series A
Inc. Preferred 05/95-
shares 09/96 1,099,363 0 462,000
Prolinx, Series B
Inc. Preferred
shares 07/97 164,835 0 69,231
Prolinx, Series C
Inc. Preferred
shares 04/98 167,915 360,732 364,376
Communications
- --------------
NetChannel, Series B
Inc. Preferred 10/96-
shares 05/97 183,458 (64,068) (96,882)
NetChannel, Convertible
Inc. notes various $30,029 (31,114) (31,114)
NetChannel, Escrowed sales
Inc. proceeds 06/98 $12,460 12,460 12,460
Women.com Series D
Networks Preferred
shares 06/98 15,199 50,005 50,005
Computer Systems and Software
- -----------------------------
Lynk Systems, Common shares
Inc. warrant,
exercised 6/98 07/93 105,000 (3,500) (369,600)
Lynk Systems, Common
Inc. shares 06/98 105,000 38,500 157,500
Industrial/Business Automation
- ------------------------------
Avalon Imaging, Inc. Series C
Preferred
shares 03/98 138,888 149,999 149,999
Portable Energy Series A
Products, Inc. Preferred
shares 06/95 1,100,000 0 (467,500)
Portable Energy Series A
Products, Inc. Preferred
shares
warrant at $0.10
expiring 9/01 10/96 186,816 0 (79,396)
Portable Energy Series B
Products, Inc. Preferred
shares 12/97 1,116,667 0 (470,213)
Medical
- -------
Endocare, Common
Inc. shares 04/98 35,714 124,999 107,356
Megabios Common 09/94-
Corporation shares 07/95 301,274 0 (1,118,933)
Periodontix, Series C
Inc. Preferred
shares 02/98 26,531 65,001 65,001
Pharmadigm, Series A
Inc. Preferred 04/93-
shares 12/94 537,635 0 118,280
Pharmadigm, Series B
Inc. Preferred
shares 05/96 137,778 0 30,311
Pharmadigm, Series D
Inc. Preferred
shares 06/98 41,219 99,750 99,750
Venture Capital Limited Partnership Investments
- -----------------------------------------------
Various Limited
Partnership
Interests various $1,179,893 14,097 (258,434)
---------- ----------
Total significant changes during the six
months ended June 30, 1998 816,861 (1,205,803)
Other changes, net (54,651) (175,805)
---------- ----------
Total equity investments at June 30, 1998 $23,565,390 35,695,936
========== ==========
</TABLE>
Marketable Equity Securities
- ----------------------------
At June 30, 1998 and December 31, 1997, marketable equity securities had
aggregate costs of $6,203,934 and $3,948,418, respectively, and aggregate
market values of $4,688,452 and $1,703,410, respectively. The net
unrealized losses at June 30, 1998 and December 31, 1997 included gross
gains of $1,231,599 and $103,141, respectively.
Avalon Imaging, Inc.
- --------------------
In March 1998, the Partnership purchased 138,888 Series C Preferred shares
for $149,999.
Endocare, Inc.
- --------------
In April 1998, the Partnership purchased 35,714 common shares for $124,999
in a private placement. At June 30, 1998, the Partnership recorded a
$23,591 decrease in the fair value of its investment in the company based
on the publicly-traded market price of the company's common shares.
Lynk Systems, Inc.
- ------------------
In June 1998, the Partnership paid $35,000 to exercise its warrant for
105,000 common shares. The fair value of the common shares, as determined
by the company, represents a $247,100 decrease in fair value from the price
established in their last round of third-party financing.
NetChannel, Inc.
- ----------------
In June 1998, America Online, Inc. completed its acquisition of the
company. Based on the expected sale proceeds, the Partnership recorded a
realized loss of $26,380 at March 31, 1998. This loss was later adjusted
to $15,488 on the completion of the sale transaction. In June 1998,
proceeds of $36,118 and $34,669 were received from the sale of the
Partnership's preferred shares and repayment of convertible and other notes
receivable. An amount of $12,460 in future sale proceeds will remain in
escrow through December 1999 pending final resolution of the sale.
Periodontix, Inc.
- ----------------
In February 1998, the Partnership made an additional investment in the
company by purchasing 26,531 Series C Preferred shares for $65,001.
Pharmadigm, Inc.
- ----------------
In June 1998, the Partnership made an additional investment in the company
by purchasing 41,219 Series D Preferred shares for $99,750. The pricing of
this round, in which third parties participated, indicated a $151,101
increase in the fair value of the Partnership's existing investment.
Pilot Network Services, Inc.
- ----------------------------
On August 11, 1998, the company completed its initial public offering at
$14.00 per common share.
Portable Energy Products, Inc.
- ------------------------------
In July 1998, the Partnership purchased 1,500,000 Series C Preferred shares
and 375,000 common share warrants for $300,000. The pricing of this round,
in which third parties participated, indicated a $1,017,109 decrease in the
fair value of the Partnership's existing investment at June 30, 1998.
Prolinx, Inc.
- -------------
In April 1998, the Partnership made an additional investment in the company
by purchasing 167,915 Series C Preferred shares and a common shares warrant
for $364,376. The pricing of this round, in which third parties
participated, indicated a $531,231 increase in the fair value of the
Partnership's existing investment.
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 15,199 Series D Preferred shares
for $50,005. The pricing of this round, in which third parties
participated, indicated a $44,318 increase in the fair value of the
Partnership's existing investment.
Venture Capital Limited Partnerships
- ------------------------------------
The Partnership made additional investments totaling $40,938 in venture
capital limited partnerships during the six months ended June 30, 1998.
The Partnership received cash distributions of $261,833 from Spectrum
Equity Investors LP, CVM Equity Fund IV, Ltd. and Trinity Ventures IV. The
Partnership also received a stock distribution of PRI Automation, Inc. with
a fair value of $1,842. Distributions totaling $236,834 were recorded as
realized gains and distributions totaling $26,841 were recorded as returns
of capital.
The Partnership recorded a $272,531 decrease in fair value as a result of a
net decrease in the fair value of the underlying investments of the
partnerships, caused, in part, by distributions received from such
partnerships.
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 Conversion Technologies International, Inc. and Physiometrix,
Inc. investments are restricted.
5. Other Investments
-----------------
In June 1998, the Partnership wrote off the fair value and cost basis of
its investment in Transphase Systems, Inc. and realized a loss of $664,299
based on the opinion of the Managing General Partner that the unlikely
prospects for recovery of the investment indicated a permanent decline in
value.
6. Notes Receivable
----------------
Activity from January 1, 1998 through June 30, 1998, consisted of:
<TABLE>
<S> <C>
Balance at January 1, 1998 $4,479
1998 activity:
Notes receivable issued 2,766
Repayment of notes receivable (2,766)
Change in interest receivable (4,479)
-----
Total notes receivable
at June 30, 1998 $ --
=====
</TABLE>
7. Cash and Cash Equivalents
-------------------------
Cash and cash equivalents at June 30, 1998, and December 31, 1997 consisted
of:
<TABLE>
<CAPTION>
1998 1997
--------- ---------
<S> <C> <C>
Demand accounts $190,511 4,221
Money-market accounts 377,423 1,835,314
------- ---------
Total $567,934 1,839,535
======= =========
</TABLE>
8. 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 June 30, 1998 the Partnership had unfunded commitments as
follows:
<TABLE>
<CAPTION>
Type
- ----
<S> <C>
Equity investments $500,000
Equipment lease guarantees 300,000
Venture capital limited partnership investments 100,407
-------
$900,407
=======
</TABLE>
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, 1998, net cash used by operating
activities totaled $755,031. The Partnership paid management fees of
$227,496 to the Managing General Partners and reimbursed related parties
for operating expenses of $415,861. In addition, $18,397 was paid to the
Individual General Partners as compensation for their services. Other
operating expenses of $107,687 were paid and $14,410 in interest income was
received.
During the six months ended June 30, 1998, the Partnership funded equity
investments of $971,318 primarily to portfolio companies in the medical,
biotechnology and industrial/business automation industries. Proceeds from
sales of equity investments were $103,634. Cash distributions from venture
capital limited partnerships provided $261,833. Repayments of convertible
and other notes receivable provided cash of $92,047. As of June 30, 1998,
the Partnership was committed to fund additional investments totaling
$900,407 as discussed in Note 8 to the financial statements.
Cash and cash equivalents at June 30, 1998, were $567,934. Future interest
income on short-term investments, proceeds from investment sales, and
Managing 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 loss was $1,679,179 for the three months ended June 30, 1998, as
compared to net income of $2,617,118 for the three months ended June 30,
1997. The change was primarily due to a $3,790,838 decrease in the change
in net unrealized fair value of investments, a $664,299 increase in
realized losses from investment write-downs, and a $155,845 decrease in net
realized gain from equity investment sales, partially offset by a $211,772
increase in realized gains from venture capital limited partnerships and a
$120,014 decrease in operating expenses.
During the three months ended June 30, 1998, the decrease in fair value of
investments of $1,050,986 was primarily due to decreases in portfolio
companies in the industrial/business automation industry. During the same
period in 1997, the increase in fair value of investments of $2,739,852 was
primarily due to increases in a portfolio companies in the medical and
microelectronics industries.
Realized losses from investment write-downs of $664,299 for the quarter
ended June 30, 1998 resulted from a portfolio company in the environmental
industry. There were no write-downs in the quarter ended June 30, 1997.
For the quarter ended June 30, 1998, realized gains from equity investment
sales of $31,684 related primarily to the sale of MetroMail, Inc. During
the same period in 1997, realized gains of $187,529, related mainly to the
common stock sale of Bolder Technologies Corporation.
Net realized gains from venture capital limited partnerships of $230,820 in
the quarter ended June 30, 1998 resulted from a cash distribution from
Spectrum Equity Investors, L.P.
Total operating expenses were $120,941 and $240,955 for the quarters ended
June 30, 1998 and 1997, respectively. As explained in Note 3 to the
financial statements, the Managing General Partners absorbed $124,324
during the quarter ended June 30, 1998. Had the limitation not been in
effect, total operating expenses would have been $245,265 and $240,955 in
the second quarters of 1998 and 1997, respectively.
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 loss was $3,068,211 for the six months ended June 30, 1998, compared to
net income of $4,404,667 during the same period in 1997. The change was
primarily due to a $6,182,859 decrease in the change in net unrealized fair
value of investments, a $664,299 increase in realized losses from
investment write-downs, a $420,750 decrease in net realized gain from sales
of equity investments, and a $311,221 decrease in total income. These
changes were partially offset by a $217,786 increase in net realized gains
from venture capital limited partnerships.
During the six months ended June 30, 1998, the decrease in fair value of
investments of $1,878,098 was primarily due to decreases in portfolio
companies in the medical and industrial/business automation industries,
partially offset by increases in the biotechnology industry. During the
same period in 1997, the increase of $4,304,761 was primarily due to
increases in portfolio companies in the medical, microelectronics and
communications industries, partially offset by decreases in the biomedical
and industrial/business automation industries.
The Partnership recorded realized losses of $664,299 from investment write-
downs for the six months ended June 30, 1998 related to a portfolio company
in the environmental industry. During the same period in 1997, there were
no realized losses from investment write-downs recorded.
For the six months ended June 30, 1998, realized gains from sales of equity
investments were $5,305. During the same period in 1997, realized gains of
$426,055 mainly related to the common stock sale of Bolder Technologies
Corporation
Total income was $13,432 and $324,653 for the six months ended June 30,
1998 and 1997, respectively. The decrease was due substantially to a
$280,010 dividend received in 1997. No such dividend was received in 1998.
Total operating expenses were $567,991 and $456,258 for the six months
ended June 30, 1998 and 1997, respectively. As explained in Note 3 to the
financial statements, the Managing General Partners absorbed $124,324 for
the six months ended June 30, 1998. Had the limitation not been in effect,
total operating expenses would have been $692,315 and $456,258 during the
six months ended June 30, 1998 and 1997, respectively. The increase is
primarily attributable to increased investment monitoring activities,
administrative costs and development costs associated with enabling
investors to access on-line account information.
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, 1998.
b) Financial Data Schedule for the six months ended and as of June 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 V,
AN AGGRESSIVE GROWTH FUND, L.P.
By: TECHNOLOGY FUNDING INC.
Managing General Partner
Date: August 14, 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 JUNE 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> JUN-30-1998
<PERIOD-TYPE> 6-MOS
<INVESTMENTS-AT-COST> 23,565,390
<INVESTMENTS-AT-VALUE> 35,695,936
<RECEIVABLES> 0
<ASSETS-OTHER> 58,946
<OTHER-ITEMS-ASSETS> 567,934
<TOTAL-ASSETS> 36,322,816
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 21,050
<TOTAL-LIABILITIES> 21,050
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 24,171,220
<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> 12,130,546
<NET-ASSETS> 36,301,766
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 13,432
<OTHER-INCOME> 0
<EXPENSES-NET> 781,385
<NET-INVESTMENT-INCOME> (767,953)
<REALIZED-GAINS-CURRENT> (422,160)
<APPREC-INCREASE-CURRENT> (1,878,098)
<NET-CHANGE-FROM-OPS> (3,068,211)
<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> (3,068,211)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 194,997
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 783,235
<AVERAGE-NET-ASSETS> 37,835,872
<PER-SHARE-NAV-BEGIN> 63
<PER-SHARE-NII> (3)
<PER-SHARE-GAIN-APPREC> 0 <F1>
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 60
<EXPENSE-RATIO> 2.1
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
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>
