<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Report on Financial Statements
as of June 30, 1999
(unaudited)
<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Report on Financial Statements
For three months ending June 30,1999
(unaudited)
CONTENTS
PAGE
Investment Portfolio
as of June 30,1999 (unaudited) 3-4
Statement of Assets and Liabilities 5
as of June 30,1999 (unaudited)
Statement of Operations
as of June 30, 1999 6
(unaudited)
Statement of Changes in Net Assets
as of June 30, 1999 7
(unaudited)
Notes to Financial Statements 8-9
<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Investment Portfolio
As of June 30, 1999
(unaudited)
<TABLE>
<CAPTION>
INDUSTRY & COMPANY Shares Value
<S> <C> <C>
EQUITY SECURITIES - COMMON STOCK 66.9%
COMMUNICATIONS 4.8%
Alpha Industries 20,000 $952,500
CONSUMER- Electronics 8.2%
CompUSA, Inc. 30,000 $223,125
ScanSource 65,000 $1,405,625
CONSUMER-GENERAL 8.3%
Party City 50,000 $192,188
Safety First 250,000 $1,468,750
ELECTRONIC COMPONENTS 15.0%
PCD, Inc. 106,500 $1,171,500
Unitrode 63,000 $1,807,313
Financials 2.2% 50,000 $437,500
Information Technology 3.3%
Tier Technology 95,238 $666,666
Renaissance Worldwide, Inc. 60,000 $478,125
INTERNET 2.5%
Asymetrix Corp. 10,542 $43,486
Webhire Inc 100,000 $450,000
</TABLE>
The accompanying notes are an intergral part of these financial statements
3
<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
INVESTMENT PORTFOLIO
As of June 30,1999
(Unaudited)
<TABLE>
<CAPTION>
INDUSTRY & COMPANY Shares Value
<S> <C> <C>
Equity Securities - Common Stock 66.9%
Medical 8.5%
Ascent Pediarics 219,969 $439,938
Mecon, Inc. 50,000 $375,000
Zoll Medical Corp. 72,600 $871,200
Natural Products 9.9%
AMBI 500,000 $1,218,750
Opta Food Ingredients, Inc. 239,000 $761,813
Software 1.8%
Workgroup 200,000 $362,500
Total Common Stock (Cost $14,647,749.97) $13,325,977.45
PRIVATE HOLDINGS 20.8%
Advanced UroScience, Inc. 346,429 $1,818,752
Cerulean Technology-Series B Pfd. 255,546 $659,309
Cerulean Technology-Series C Pfd. 42,857 $110,571
Cerulean Technology-Series D Pfd. 13,430 $34,649
Marathon Technologies - Series B Pfd. 31,250 $375,000
Marathon Technologies - Series 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 $3,068,543.88 $4,142,973.89
CASH & EQUIVALENTS 12.3%
Fidelity Daily Money Market Fund $912,322
State St. Bank & Trust- Repos $1,000,000
Fidelity US Treasury Income Fund $531,286
Total Cash & Equivalents (Cost $2,443,607.64) $2,443,607.64
TOTAL INVESTMENT PORTFOLIO 100% $19,912,558.98
(Cost $19,804,909.40)
</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, 1999
(unaudited)
<TABLE>
<CAPTION>
Quarter Ending
June 30, 1999
--------------
ASSETS
<S> <C>
Investments at value(Cost Basis $19,662,866) $15,912,559
'Notes & Intrest Payable $0
Reivable $2,660
Cash $100
Total Assets $15,915,319
-------------
-------------
LIABILITIES
Accrued management fees $48,886
Accrued Incentive Fees $0
Accrued capital withdrawals $556,338
Accrued BOD fees $2,500
-------------
Total Liabilities $607,723
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NET ASSETS $15,307,595.68
-------------
-------------
</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 June 30, 1999
(unaudited)
<TABLE>
<CAPTION>
Quarter Ending
June 30, 1999
----------------
INVESTMENT INCOME
<S> <C>
Income:
Dividends $10,908
Interest $3,250
----------------
Total Income $14,158
Expenses:
Management Fees $48,886
Other expenses $2,500
---------------
Total expenses $51,386
Net investment loss ($37,228)
---------------
---------------
NET REALIZED & UNREALIZED GAIN(LOSS)
Net realized loss ($166,215)
Net unrealized depreciation ($3,992,094)
Net loss on investments ($4,158,309)
---------------
NET DECREASE IN NET ASSETS ($4,121,081)
---------------
---------------
</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, 1999
(unaudited)
<TABLE>
<CAPTION>
Quarter Ending
June 30, 1999
------------------
INCREASE IN NET ASSETS
<S> <C>
Operations:
Net investment loss ($37,228)
Net realized loss $166,215
Net unrealized depreciation $3,992,094
----------------
Net increase in net assets from operations $4,121,081
Contributions to capital $0
Withdrawals from capital ($556,338)
-----------------
INCREASE IN NET ASSETS $3,564,774
Net assets at beginning of period $15,388,450
NET ASSETS AT END OF PERIOD $18,953,194
-----------------
-----------------
</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 June 30, 1999
(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 June 30, 1999
(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 quarter ended March 31, 1999, the Managing
General Partner received fees of $41,883 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 the months ending June 30, 1999
aggregated $782,790.66 and $2,846,377.88 respectively.
4 - SIGNIFICANT SUBSEQUENT EVENT
The Partnership agreement provides for a Partnership termination
date of December 31, 2050.
9
