<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Report on Financial Statements
as of Sept 30, 1999
(unaudited)
<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Report on Financial Statements
For three months ending Sept 30,1999
(unaudited)
CONTENTS
PAGE
Investment Portfolio
as of September 30,1999 (unaudited) 3-4
Statement of Assets and Liabilities 5
as of September 30,1999 (unaudited)
Statement of Operations
as of September 30, 1999 6
(unaudited)
Statement of Changes in Net Assets
as of September 30, 1999 7
(unaudited)
Notes to Financial Statements 8-9
<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
Investment Portfolio
As of September 30, 1999
(unaudited)
<TABLE>
<CAPTION>
INDUSTRY & COMPANY Shares Value
<S> <C> <C>
EQUITY SECURITIES - COMMON STOCK 71.6%
COMMUNICATIONS 11.5%
Alpha Industries 20,000 $1,128,125
Netooptix Corp. 60,000 $1,297,500
CONSUMER- Electronics 0.9%
CompUSA, Inc. 30,000 $180,000
CONSUMER-GENERAL 8.4%
Safety First 250,000 $1,765,625
ELECTRONIC COMPONENTS 4.0%
PCD, Inc. 106,500 $838,688
Financials 1.9% 50,000 $403,125
Information Technology 3.1%
Tier Technology 95,238 $654,761
Renaissance Worldwide, Inc. 60,000 $232,500
INTERNET 5.6%
Asymetrix Corp. 10,542 $94,549
Webhire Inc 100,000 $1,081,250
</TABLE>
The accompanying notes are an intergral part of these financial statements
3
<PAGE>
AH&H PARTNERS FUND LIMITED PARTNERSHIP
INVESTMENT PORTFOLIO
As of Sept 30,1999
(Unaudited)
<TABLE>
<CAPTION>
INDUSTRY & COMPANY Shares Value
<S> <C> <C>
Equity Securities - Common Stock 71.6%
Medical 12.8%
Ascent Pediarics 219,969 $316,206
Mecon, Inc. 90,000 $573,750
Zoll Medical Corp. 60,000 $1,815,000
Natural Products 22.1%
AMBI 500,000 $1,453,125
Nairol Inc 40,000 $325,000
NBTY Inc. 50,000 $381,250
RexallSundown Inc. 50,000 $615,625
Pharmaprint Inc. 90,000 $433,125
Twinlab Corp 40,000 $355,000
Weider Nutrition Inc. 70,000 $223,125
Opta Food Ingredients, Inc. 239,000 $702,061
Software 1.3%
Workgroup 200,000 $275,000
Total Common Stock (Cost $15,636,282) $15,144,390
PRIVATE HOLDINGS 19.6%
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 $3,068,544) $4,142,974
CASH & EQUIVALENTS 8.8%
Fidelity Daily Money Market Fund $1,182,578
Fidelity US Treasury Income Fund $672,906
Total Cash & Equivalents (Cost $1,855,484) $1,855,484
TOTAL INVESTMENT PORTFOLIO 100% $21,142,848
(Cost $20,560,310)
</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 Sept 30, 1999
(unaudited)
<TABLE>
<CAPTION>
Quarter Ending
Sept 30, 1999
--------------
ASSETS
<S> <C>
Investments at value(Cost Basis $20,560,310) $20,142,848
Recievable for investments sold $586,250
Notes and Intrest recievable from limited partners $10,065
Repurchase agreement interest recievable $5,507
Cash $100
Total Assets $21,744,770
-------------
-------------
LIABILITIES
Accrued management fees $54,396
Accrued capital withdrawals $171,191
Accrued BOD fees $5,000
-------------
Total Liabilities $230,587
-------------
NET ASSETS $21,514,183
-------------
-------------
</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 Sept 30, 1999
(unaudited)
<TABLE>
<CAPTION>
Quarter Ending
Sept 30, 1999
----------------
INVESTMENT INCOME
<S> <C>
Income:
Dividends $17,864
Interest $6,204
----------------
Total Income $24,068
Expenses:
Management Fees $54,379
Other expenses $2,500
---------------
Total expenses $56,879
Net investment loss ($32,811)
---------------
---------------
NET REALIZED & UNREALIZED GAIN(LOSS)
Net realized gain $1,350,704
Net unrealized apppreciation $1,416,131
Net gain on investments $2,766,835
---------------
NET INCREASE IN NET ASSETS $2,734,024
---------------
---------------
</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 Sept 30, 1999
(unaudited)
<TABLE>
<CAPTION>
Quarter Ending
Sept 30, 1999
------------------
INCREASE IN NET ASSETS
<S> <C>
Operations:
Net investment loss ($32,811)
Net realized gain $1,350,704
Net unrealized apppreciation $1,416,131
----------------
Net increase in net assets from operations $2,734,024
Contributions to capital $151,833
Withdrawals from capital ($171,191)
-----------------
INCREASE IN NET ASSETS $2,714,666
Net assets at beginning of period $18,953,194
Prior quarter adjustment ($153,677)
Adjusted net assets at beginning of period $18,799,517
NET ASSETS AT END OF PERIOD $21,514,183
-----------------
-----------------
</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 Sept 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 Sept 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 three months ended September 30,1999, the Managing
General Partner received fees of $54,379 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 September 30, 1999
aggregated $3,589,092 and $4,537,514 respectively.
4 - SIGNIFICANT SUBSEQUENT EVENT
The Partnership agreement provides for a Partnership termination
date of December 31, 2050.
5 - PRIOR QUARTER ADJUSTMENT
The accompanying financial statement contains a prior quarter
adjustment. The adjustment is to properly account for capital
withdrawals made during the quarter end June 30, 1999 that were
not reported on the financial statement issued for that quarter.
9
