<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Report on Financial Statements
For three months ending March 31, 1997
(Unaudited)
<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Report on Financial Statements
For three months ending March 31, 1997
(Unaudited)
CONTENTS
PAGE
Investment Portfolio
as of March 31,1997 (Unaudited) 3-4
Statement of Assets and Liabilities
as of March 31,1997 (Unaudited) 5
Statement of Operations
for three months ended March 31, 1997
(Unaudited) 6
Statement of Changes in Net Assets
for three months ended March 31, 1997
(Unaudited) 7
Notes to Financial Statements 8-9
<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Investment Portfolio
As of March 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
INDUSTRY & COMPANY Shares Value
<S> <C> <C>
EQUITY SECURITIES - COMMON STOCK 88.2%
COMMUNICATIONS 8.1%
Natural Microsystems Corp. 28,500 $855,000
CONSUMER 10.4%
CompUSA, Inc. 90,000 $1,417,500
Opta Food Ingredients, Inc. 239,000 $1,314,500
Safety First 65,000 $422,500
CONTRACT MANUFACTURING 6.9%
ACT Manufacturing Co. 100,000 $2,075,000
DIVERSIFIED INDUSTRIES 6.1%
Nashua Corp. 155,000 $1,860,000
ELECTRONIC COMPONENTS 14.4%
CP Clare Corp. 120,000 $1,260,000
PCD, Inc. 100,000 $1,600,000
Unitrode 46,500 $1,511,250
ENERGY 3.1%
Energy Research Corp. 93,000 $930,000
FACTORY AUTOMATION 7.7%
Concentra 141,000 $740,250
Parametric Technology Corp. 54,600 $2,463,825
INTERNET 3.6%
CMG Information Services 90,000 $1,091,250
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Investment Portfolio
As of March 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
INDUSTRY & COMPANY Shares Value
<S> <C> <C>
MEDICAL 2.8%
IMNET Systems 56,396 $845,940
Networking 3.2%
3Coms Corp. 30,000 $982,500
SEMICONDUCTORS 4.9%
Aseco Corp. 139,820 $1,485,375
SOFTWARE 14.1%
Datawatch Corp. 70,000 $284,375
INSO Corp. 55,000 $2,065,938
Restrac 80,000 $230,000
Xionics 133,200 $1,681,650
Total Common Stock (Cost $25,557,689) $26,717,065
PRIVATE HOLDINGS 11.8%
Advanced UroScience, Inc. 275,000 $1,100,000
Aimtech Corp. 195,553 $586,659
Ascent Pharmaceuticals 153,846 $999,999
Cerulean Technology 255,546 $250,001
Marathon Technologies 31,250 $250,000
Sys-Tech Solutions (Conv. Note) 900 $89,986
Sys-Tech Solutions (Com. Stock) 149,965 $14,996
Sys-Tech Solutions (Pfd. Stock) 2,777 $277,700
Total Private Holdings (Cost $3,421,640) $3,569,341
CASH & EQUIVALENTS 4.0%
Fidelity Daily Money Market Fund $249,374
Fidelity US Treasury Income Fund $940,656
State Street Repos $34,925
Total Cash & Equivalents (Cost $1,224,955) $1,224,955
SECURITIES SOLD SHORT -4.1%
Advanced Fibre Comm. (20,000) ($645,000)
Biovail Corp. Intl. (25,000) ($581,250)
Total Securities Sold Short (Cost -$1,295,132) ($1,226,250)
TOTAL INVESTMENT PORTFOLIO 100% $30,275,111
(Cost $28,920,160)
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Statement of Assets and Liabilities
As of March 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
Quarter Ending
March 31, 1997
--------------
ASSETS
<S> <C>
Investments at value (Cost Basis $29,777,317) $31,074,395
Cash $100
Short Sale Proceeds Receivable $1,295,132
Receivable for Investments Sold $518,842
-------------
Total Assets $32,888,468
-------------
-------------
LIABILITIES
Accrued management fees $78,926
Accrued incentive fees $1,233
Accrued capital withdrawals $74,504
Accrued BOD Fees $2,500
Payable for Investments Purchased $91,875
Securities sold short at value $1,226,250
(Proceeds receivable $1,295,132) -------------
Total Liabilities $1,475,288
-------------
NET ASSETS $31,413,181
-------------
-------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Statement of Operations
For three months ending March 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
Quarter Ending
March 31, 1997
----------------
INVESTMENT INCOME
<S> <C>
Income:
Dividends $32,677
Interest $34,670
----------------
Total Income $67,347
Expenses:
Management Fees $78,926
Other expenses $2,553
---------------
Total expenses $81,478
Net investment loss ($14,131)
---------------
---------------
NET REALIZED & UNREALIZED GAIN(LOSS)
Net realized loss ($245,982)
Net unrealized depreciation ($4,108,261)
Net loss on investments ($4,354,243)
---------------
NET DECREASE IN NET ASSETS ($4,368,375)
---------------
---------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Statement of Changes in Net Assets
For three months ending March 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
Quarter Ending
March 31, 1997
------------------
INCREASE IN NET ASSETS
<S> <C>
Operations:
Net investment loss ($14,131)
Net realized loss ($245,982)
Net unrealized depreciation ($4,108,261)
----------------
Net decrease in net assets from operations ($4,368,375)
Contributions to capital $1,000,000
Withdrawals from capital ($74,504)
-----------------
DECREASE IN NET ASSETS ($3,442,879)
Net assets at beginning of period $34,856,060
NET ASSETS AT END OF PERIOD $31,413,181
-----------------
-----------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Notes to Financial Statements
For three months ending March 31, 1997
(Unaudited)
1 - SIGNIFICANT ACCOUNTING POLICIES
The AH&H Partners Fund Limited Partnership(the "Partnership")was
organized June 8,1990 as a Massachusetts limited partnership and
is registered with the Securities and Exchange Commission as a
closed-end, non-diversified management investment company. The
Agreement of Limited Partnership was amended and restated on
September 13,1990, April 1,1992 and January 1,1996. The Partner-
ship operates under the Investment Company Act of 1940(the "1940 Act")
as an interval fund. The Partnership's interests are not registered
under the Securities Act of 1933.
Adams, Harkness & Hill, Inc., a Massachusetts Corporation, serves as
Managing General Partner. The Managing General Partner must maintain
a capital account balance equal to the lesser of 1% of the sum of all
the positive capital account balances of all the Partners or the
greater of $500,000 or 0.2% of the sum of the positive capital account
balances of all the Partners.
The policies described below are followed consistently by the Partner-
ship in preparation of its financial statements in conformity with
generally accepted accounting principles.
Security Valuation
Portfolio securities which are traded on U.S. stock exchanges are
valued at the most recent sale price reported on the exchange on
which the security is traded most extensively. If no sale occurred,
the security is valued at the mean between the closing bid and asked
prices. Securities for which market quotations are not readily
available are valued at "fair value" as determined in good faith by
the general partner.
Securities Sold Short
The Partnership is engaged in selling securities short, which
obligates the Partnership to replace a security borrowed by purchas-
ing the same security at current market value. The Partnership would
incur a loss if the price of the security increases between the date
of the short sale and the date on which the Partnership replaces the
borrowed security. The Partnership would realize a gain if the price
of the security declines between those dates.
Securities Transactions and Investment Income
Securities transactions are recorded on a trade-date basis. Securities
gains or losses are determined on the identified cost basis. Dividend
income is recorded on the ex-dividend date. Interest income, includ-
ing original issue discount, where applicable, is recorded on an accrual
basis, except for bonds trading "flat", in which case interest is recorded
when received.
8
<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Notes to Financial Statements
For three months ending March 31, 1997
(Unaudited)
1 - SIGNIFICANT ACCOUNTING POLICIES (Continued)
Federal and State Income Taxes
No federal or state income tax is imposed on the Partnership
as an entity. The Partnership's income, gains, losses, deductions
and credits flow through to the Partners. Each partner must
include his or her share of partnership income in his or her
tax returns.
2 - INVESTMENT ADVISORY AGREEMENTS & TRANSACTIONS WITH AFFILIATED PERSONS
The Partnership has an investment advisory agreement with the
Managing General Partner. Certain individuals who are executive
officers and directors of the Managing General Partner are also
Limited Partners of the Partnership.
For the three months ended March 31, 1997, the Managing
General Partner received fees of $78,926 for investment and
advisory services under the agreement. The fee is paid quarterly
with an annual fee basis of 1%. In addition, the Partnership
Agreement provides for a performance allocation from the Limited
Partners to the General Partner, equal to 15% of the return which
exceeds a cumulative 6% annual return. The performance allocation,
if there is one, is determined after the close of the calendar year.
3 - INVESTMENT TRANSACTIONS
Purchases and proceeds from sales of investment securities (excluding
short term investments) for the three months ended March 31, 1997
aggregated $8,048,675 and $769,722, respectively.
4 - SIGNIFICANT SUBSEQUENT EVENT
The Partnership agreement provides for a Partnership termination
date of December 31, 2050.
9
