<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Report on Financial Statements
For months ending June 30, 1997
(Unaudited)
<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Report on Financial Statements
For six months ending June 30, 1997
(Unaudited)
CONTENTS
PAGE
Investment Portfolio
as of June 30,1997 (Unaudited) 3-4
Statement of Assets and Liabilities
as of June 30,1997 (Unaudited) 5
Statement of Operations
for six months ended June 30, 1997
(Unaudited) 6
Statement of Changes in Net Assets
for six months ended June 30, 1997
(Unaudited) 7
Notes to Financial Statements 8-9
<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Investment Portfolio
As of June 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
INDUSTRY & COMPANY Shares Value
<S> <C> <C>
EQUITY SECURITIES - COMMON STOCK 86.6%
COMMUNICATIONS 11.0%
Dynatech 28,500 $1,018,875
Natural Microsystems Corp. 80,000 $2,880,000
CONSUMER 15.1%
CompUSA, Inc. 90,000 $1,935,000
Just for Feet 30,000 $523,125
Party City 50,000 $1,673,000
Opta Food Ingredients, Inc. 239,000 $1,673,000
Safety First 65,000 $381,875
CONTRACT MANUFACTURING 3.5%
ACT Manufacturing Co. 30,000 $1,252,500
DIVERSIFIED INDUSTRIES 3.5%
Nashua Corp. 155,000 $1,250,625
ELECTRONIC COMPONENTS 17.2%
CP Clare Corp. 120,000 $1,890,000
PCD, Inc. 106,500 $1,863,750
Unitrode 46,500 $2,342,438
ENERGY 2.4%
Energy Research Corp. 93,000 $848,625
FACTORY AUTOMATION 8.4%
Concentra 150,000 $1,087,500
Parametric Technology Corp. 44,600 $1,898,288
INTERNET 3.3%
CMG Information Services 90,000 $1,181,250
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Investment Portfolio
As of June 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
INDUSTRY & COMPANY Shares Value
<S> <C> <C>
Equity Securities - Common Stock
MEDICAL 7.1%
Ascent Pediatrics 153,846 $1,384,614
IMNET Systems 36,396 $1,130,551
Semiconductors 4.5%
Aseco Corp. 139,820 $1,590,452
Software 10.6%
INSO Corp 75,000 $1,542,187
Restrac 80,000 $230,000
Xionics 133,200 $1,964,700
Total Common Stock (Cost $24,632,299) $30,715,292
PRIVATE HOLDINGS 5.9%
Advanced UroScience, Inc. 275,000 $1,100,000
Aimtech Corp. 195,553 $127,109
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 $2,421,640) $2,109,793
CASH & EQUIVALENTS 8.8%
Fidelity Daily Money Market Fund $642,016
Fidelity US Treasury Income Fund $2,466,643
Total Cash & Equivalents (Cost $3,108,659) $3,108,659
SECURITIES SOLD SHORT -1.3%
Biovail Corp. Intl. (15,000) ($452,813)
Total Securities Sold Short (Cost -$396,302) ($452,813)
TOTAL INVESTMENT PORTFOLIO 100% $35,480,931
(Cost $29,766,296)
</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 June 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Quarter Ending
June 30, 1997
--------------
ASSETS
<S> <C>
Investments at value (Cost Basis $28,804,706) $34,575,851
Cash $100
Notes Receivable $990,953
Short Sale Proceeds Receivable $396,302
Receivable for Investments Sold $1,921,303
Accrued Dividends $71,719
-------------
Total Assets $37,956,229
-------------
-------------
LIABILITIES
Accrued management fees $92,350
Covered Short Loss Pending $40,286
Accrued capital withdrawals $2,581,458
Payable for Investments Purchases $523,125
Securities sold short at value $452,813
(Proceeds receivable $396,302) -------------
Total Liabilities $3,690,032
-------------
NET ASSETS $34,266,197
-------------
-------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Statement of Operations
For six months ending June 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Quarter Ending
June 30, 1997
----------------
INVESTMENT INCOME
<S> <C>
Income:
Dividends $122,102
Interest $35,623
----------------
Total Income $157,725
Expenses:
Management Fees $171,276
Other expenses $5,053
---------------
Total expenses $176,328
Net investment loss ($18,604)
---------------
---------------
NET REALIZED & UNREALIZED GAIN(LOSS)
Net realized gain $844,288
Net unrealized appreciation $240,415
Net gain on investments $1,084,703
---------------
NET INCREASE IN NET ASSETS $1,066,099
---------------
---------------
</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 June 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Quarter Ending
June 30, 1997
------------------
INCREASE IN NET ASSETS
<S> <C>
Operations:
Net investment loss ($18,604)
Net realized Gain $844,288
Net unrealized depreciation $240,415
----------------
Net increase in net assets from operations $1,066,099)
Contributions to capital $1,000,000
Withdrawals from capital ($2,655,962)
-----------------
INCREASE IN NET ASSETS ($589,862)
Net assets at beginning of period $34,856,060
NET ASSETS AT END OF PERIOD $34,266,197
-----------------
-----------------
</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 six months ending June 30, 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 six months ending June 30, 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 six months ended June 30, 1997, the Managing
General Partner received fees of $171,276 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 six months ended June 30, 1997
aggregated $11,300,428 and $7,339,042 respectively.
4 - SIGNIFICANT SUBSEQUENT EVENT
The Partnership agreement provides for a Partnership termination
date of December 31, 2050.
9
