<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Report on Financial Statements
For the Month Ending March 31, 1998
(unaudited)
<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Report on Financial Statements
For the Month Ending March 31, 1998
(unaudited)
CONTENTS
PAGE
Investment Portfolio
as of March 31, 1998 (unaudited) 3-5
Statement of Assets and Liabilities 6
as of March 31, 1998 (unaudited)
Statement of Operations
for the month ended March 31, 1998 7
(unaudited)
Statement of Changes in Net Assets
for the month ended March 31, 1998 8
(unaudited)
Notes to Financial Statements 9-10
<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Investment Portfolio
As of March 31, 1998
(unaudited)
<TABLE>
<CAPTION>
INDUSTRY & COMPANY Shares Value
<S> <C> <C>
EQUITY SECURITIES - COMMON STOCK 84.3%
COMMUNICATIONS 8.1%
Alpha Industries 50,000 $762,500
Dynatech 8,500 $409,594
Natural Microsystems Corp. 50,000 $1,981,250
CONSUMER- Electronics 9.9%
CompUSA, Inc. 90,000 $2,351,250
ScanSource 70,000 $1,470,000
CONSUMER-GENERAL 14.4%
A.T. Cross 60.100 $698,663
Party City 75,000 $2,540,625
Safety First 138,000 $1,155,750
West Marine 40,000 $1,165,000
DIVERSIFIED INDUSTRIES 3.4%
Nashua Corp. 95,000 $1,328,100
ELECTRONIC COMPONENTS 14.6%
CP Clare Corp. 110,000 $1,526,250
PCD, Inc. 106,500 $2,396,250
Unitrode 93,000 $1,732,125
FACTORY AUTOMATION 2.4%
Concentra 150,000 $918,750
INFORMATION TECHNOLOGY 4.2%
Tier Technology 95,328 $1,642,856
INTERNET 0.6%
Lycos 5,625 $248,906
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Investment Portfolio
As of March 31, 1998
(unaudited)
<TABLE>
<CAPTION>
INDUSTRY & COMPANY Shares Value
<S> <C> <C>
Equity Securities - Common Stock 84.3%
MEDICAL 7.7%
Ascent Pediatrics 130,769 $498,557
Hologic 60,000 $1,665,000
IMNET Systems 36396 $818,910
NATURAL PRODUCTS 7.6%
AMBI 230,000 $721,875
Opta Food Ingredients, Inc. 239,000 $1,269,688
Weider Nutrition 60,000 $930,000
NETWORKING 3.9%
Shiva 150,000 $1,500,000
SEMICONDUCTORS 2.8%
Aseco Corp. 139,820 $1,077,047
SOFTWARE 4.7%
INSO Corp 70,000 $1,242,500
Xionics 103,200 $580,500
Total Common Stock (Cost $25,929,222) $32,631,946
PRIVATE HOLDINGS 8.2%
Advanced UroScience, Inc. 275,000 $1,100,000
Asymetrix Corp 52,307 $233,208
Cerulean Technology-Series B Pfd. 255,546 $250,001
Cerulean Technology-Series C Pfd. 42,857 $53,999
Marathon Technologies 52,083 $624,996
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 $3,266,211) $2,156,901
CASH & EQUIVALENTS 7.5%
Fidelity Daily Money Market Fund $1,375,383
Fidelity US Treasury Income Fund $1,528,847
Total Cash & Equivalents (Cost $2,904,230) $2,904,230
TOTAL INVESTMENT PORTFOLIO 100% $38,693,077
(Cost $32,099,663)
</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 March 31, 1998
(unaudited)
<TABLE>
<CAPTION>
Month Ended
Mar. 31, 1998
--------------
ASSETS
<S> <C>
Investments at value (Cost Basis $32,099,663) $38,693,077
Notes and interest payable $100,600
Cash $100
Total Assets $38,793,777
-------------
-------------
LIABILITIES
Accrued management fees $96,985
Accrued incentive fees 0
Accrued capital withdrawals $3,067,349
-------------
Total Liabilities $3,164,334
-------------
NET ASSETS $35,629,443
-------------
-------------
</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 March 31, 1998
(unaudited)
<TABLE>
<CAPTION>
Month Ended
Mar. 31, 1998
----------------
INVESTMENT INCOME
<S> <C>
Income:
Dividends $25,962
Interest $1,267
----------------
Total Income $27,229
Expenses:
Management Fees $96,985
Other expenses $2,570
----------------
Total expenses $99,555
Net investment loss ($72,326)
----------------
----------------
NET REALIZED & UNREALIZED GAIN(LOSS)
Net realized gain $2,789,458
Net unrealized appreciation $1,722,290
Net gain on investments $4,511,748
---------------
NET INCREASE IN NET ASSETS $4,439,422
---------------
---------------
</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 Mar. 31, 1998
(unaudited)
<TABLE>
<CAPTION>
Month Ended
Mar. 31, 1998
------------------
INCREASE IN NET ASSETS
<S> <C>
Operations:
Net investment loss ($72,326)
Net realized Gain from investments $2,789,458
Net unrealized depreciation $1,722,290
----------------
Net increase in net assets from operations $4,439,422
Contributions to capital $100,000
Withdrawals from capital ($3,067,349)
-----------------
DECREASE IN NET ASSETS $1,472,073
Net assets at beginning of period $34,157,371
NET ASSETS AT END OF PERIOD $35,629,443
-----------------
-----------------
</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 Year ended Dec. 31, 1997
(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 year ended Dec. 31, 1997
(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 year ended December 31, 1997, the Managing
General Partner received fees of $363,349 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 $22,077,647 and $17,862,906 respectively.
4 - SIGNIFICANT SUBSEQUENT EVENT
The Partnership agreement provides for a Partnership termination
date of December 31, 2050.
10
