<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Report on Financial Statements
For the Month Ending JUNE 30, 1998
(unaudited)
<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Report on Financial Statements
For the Month Ending JUNE 30, 1998
(unaudited)
CONTENTS
PAGE
Investment Portfolio
as of JUNE 30, 1998 (unaudited) 3-5
Statement of Assets and Liabilities 6
as of JUNE 30, 1998 (unaudited)
Statement of Operations
for the month ended JUNE 30, 1998 7
(unaudited)
Statement of Changes in Net Assets
for the month ended JUNE 30, 1998 8
(unaudited)
Notes to Financial Statements 9-10
<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Investment Portfolio
As of JUNE 30, 1998
(unaudited)
<TABLE>
<CAPTION>
INDUSTRY & COMPANY Shares Value
<S> <C> <C>
EQUITY SECURITIES - COMMON STOCK 70.8%
COMMUNICATIONS 5.4%
Alpha Industries 50,000 $746,875
Natural Microsystems Corp. 50,000 $800,000
CONSUMER- Electronics 6.5%
CompUSA, Inc. 30,000 $543,750
ScanSource 70,000 $1,347,500
CONSUMER-GENERAL 15.7%
A.T. Cross 60,100 $856,425
Party City 66,500 $1,953,438
Safety First 150,000 $1,012,500
West Marine 40,000 $720,000
ELECTRONIC COMPONENTS 13.6%
CP Clare Corp. 110,000 $1,045,000
PCD, Inc. 106,500 $1,823,813
Unitrode 93,000 $1,069,500
FACTORY AUTOMATION 2.1%
Concentra 150,000 $600,000
INFORMATION TECHNOLOGY 5.9%
Tier Technology 95,328 $1,696,427
INTERNET 1.6%
Asymetrix Corp. 50,405 $456,797
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Investment Portfolio
As of June 30, 1998
(unaudited)
<TABLE>
<CAPTION>
INDUSTRY & COMPANY Shares Value
<S> <C> <C>
Equity Securities - Common Stock 70.8%
MEDICAL 4.5%
Ascent Pediatrics 130,769 $196,154
Hologic 60,000 $1,091,250
NATURAL PRODUCTS 6.0%
AMBI 330,000 $464,079
Opta Food Ingredients, Inc. 239,000 $1,269,688
NETWORKING 4.3%
Shiva 150,000 $1,256,250
SEMICONDUCTORS 2.0%
Aseco Corp. 139,820 $568,019
SOFTWARE 3.2%
INSO Corp 70,000 $958,124
Total Common Stock (Cost $23,055,647) $20,475,589
PRIVATE HOLDINGS 12.6%
Advanced UroScience, Inc. 346,429 $1,818,752
Cerulean Technology-Series B Pfd. 255,546 $250,001
Cerulean Technology-Series C Pfd. 42,857 $53,999
Marathon Technologies-Ser.B 31,250 $375,000
Marathon Technologies-Ser.D 20,833 $249,996
Molecular Geodesics 500,000 $500,000
Sys-Tech Solutions (Common Stock) 149,965 $14,997
Sys-Tech Solutions- Series A Pfd 2,777 $277,700
Sys-Tech Solutions0 Series B Pfd 1,020 $102,000
Total Private Holdings (Cost $3,033,905) $3,642,445
CASH & EQUIVALENTS 16.6%
Fidelity Daily Money Market Fund $2,969,795
Fidelity US Treasury Income Fund $1,825,177
Total Cash & Equivalents (Cost $4,794,972) $4,794,972
TOTAL INVESTMENT PORTFOLIO 100% $28,913,006
(Cost $30,884,524.42)
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Statement of Assets and Liabilities
As of June 30, 1998
(unaudited)
<TABLE>
<CAPTION>
Month Ended
June 30, 1998
--------------
ASSETS
<S> <C>
Investments at value (Cost Basis $30,884,524.42) $28,913,006
Notes and interest payable $210,720
Cash $100
Total Assets $29,123,826
-------------
-------------
LIABILITIES
Accrued management fees $72,803
Accrued incentive fees 0
Accrued capital withdrawals $3,557,888
Accrued Board of Directors Fees $2,500
-------------
Total Liabilities $3,633,191
-------------
NET ASSETS $25,490,635
-------------
-------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Statement of Operations
For the month ended June 30, 1998
(unaudited)
<TABLE>
<CAPTION>
Month Ended
June 30, 1998
----------------
INVESTMENT INCOME
<S> <C>
Income:
Dividends $26,258
Interest $721
----------------
Total Income $26,979
Expenses:
Management Fees $72,803
Other expenses $2,500
----------------
Total expenses $75,303
Net investment loss ($48,324)
----------------
----------------
NET REALIZED & UNREALIZED GAIN(LOSS)
Net realized gain $1,782,337
Net unrealized depreciation ($8,564,93)
Net loss on investments $6,782,596
---------------
NET DECREASE IN NET ASSETS $6,830,920
---------------
---------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Statement of Changes in Net Assets
For month ended June 30, 1998
(unaudited)
<TABLE>
<CAPTION>
Month Ended
June 30, 1998
------------------
INCREASE IN NET ASSETS
<S> <C>
Operations:
Net investment loss ($48,324)
Net realized gain $1,782,337
Net unrealized depreciation $8,564,933
----------------
Net decrease in net assets from operations $6,830,920
Contributions to capital $250,000
Withdrawals from capital ($3,557,888)
-----------------
DECREASE IN NET ASSETS ($10,138,808)
Net assets at beginning of period $35,629,443
NET ASSETS AT END OF PERIOD $25,490,635
-----------------
-----------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Notes to Financial Statements
For month ended June 30, 1998
(audited)
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.
9
<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Notes to Financial Statements
For month ended June 30, 1998
(audited)
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 month ended June 30, 1998, the Managing
General Partner received fees of $72,803.32 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 June 30, 1998
aggregated $5,135,947 and $11,566,175 respectively.
4 - SIGNIFICANT SUBSEQUENT EVENT
The Partnership agreement provides for a Partnership termination
date of December 31, 2050.
10
