<PAGE>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1997
----------------
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
----- -----
Commission File Number 0-18944
THE SECTOR STRATEGY FUND/SM/ IV L.P.
--------------------------------------
(Exact Name of Registrant as
specified in its charter)
Delaware 13-3648784
- ------------------------------- --------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
c/o Merrill Lynch Investment Partners Inc.
Merrill Lynch World Headquarters - South Tower, 6th Fl.
World Financial Center New York, New York 10080-6106
----------------------------------------------------
(Address of principal executive offices)
(Zip Code)
212-236-4161
----------------------------------------------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
--- ---
This document contains 12 pages.
1
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
THE SECTOR STRATEGY FUND/SM/ IV L.P.
----------------------------------------
(a Delaware limited partnership)
STATEMENTS OF FINANCIAL CONDITION
---------------------------------
March 31, December 31,
1997 1996
---- ----
ASSETS
- ------
Accrued interest $ - $ 8,703
Equity in commodity futures trading accounts:
Cash and option premiums - 2,361,768
Net unrealized profit on - -
open contracts
Investments 5,137,022 3,020,012
Receivable from investments - 113,486
---------- ----------
TOTAL $5,137,022 $5,503,969
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
LIABILITIES:
Redemptions payable $ 36,758 $ 195,968
Brokerage commissions payable - 18,981
Profit shares payable - 34,583
Administrative fees payable - 494
---------- ----------
Total liabilities 36,758 250,026
---------- ----------
PARTNERS' CAPITAL:
General Partner:
(671 and 671 Series A Units outstanding) 90,155 87,083
(214 and 214 Series B Units outstanding) 31,193 30,069
Limited Partners:
(30,195 and 32,330 Series A Units
outstanding) 4,056,977 4,195,801
( 6,325 and 6,697 Series B Units
outstanding) 921,939 940,990
---------- ----------
Total partners' capital 5,100,264 5,253,943
---------- ----------
TOTAL $5,137,022 $5,503,969
========== ==========
NET ASSET VALUE PER UNIT
SERIES A $ 134.36 $ 129.78
======== ========
SERIES B $ 145.76 $ 140.51
======== ========
See notes to financial statements.
2
<PAGE>
THE SECTOR STRATEGY FUND/SM/ IV L.P.
----------------------------------------
(a Delaware limited partnership)
STATEMENTS OF OPERATIONS
------------------------
For the three For the three
months ended months ended
March 31, March 31,
1997 1996
------------- -------------
REVENUES:
Trading (loss):
Realized $ - $ (157,126)
Change in unrealized - (169,529)
------------- -------------
Total trading results - (326,655)
------------- -------------
Interest income - 80,751
Income from investments 186,601 -
------------- -------------
Total revenues 186,601 (245,904)
------------- -------------
EXPENSES:
Profit shares - 2,337
Brokerage commissions - 158,880
Administrative fees - 4,185
------------- -------------
Total expenses - 165,402
------------- -------------
NET INCOME (LOSS) $ 186,601 $ (411,306)
============= =============
NET INCOME (LOSS) PER UNIT:
Weighted average number of units
outstanding 38,814 62,307
====== ======
Weighted average net income
(loss) per General Partner $4.81 $(6.60)
and Limited Partner Unit ===== =======
See notes to financial statements.
3
<PAGE>
THE SECTOR STRATEGY FUND/SM/ IV L.P.
----------------------------------------
(a Delaware limited partnership)
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
------------------------------------------
For the three months ended March 31, 1997 and 1996
--------------------------------------------------
<TABLE>
<CAPTION>
Units Limited Partners General Partner
----- ---------------- ---------------
Series A Series B Series A Series B Series A Series B Total
-------- -------- -------- -------- -------- -------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
PARTNERS' CAPITAL,
DECEMBER 31, 1995 49,527 14,937 $5,762,501 $1,838,784 $ 79,108 $ 26,769 $7,707,162
Net Loss - - (312,779) (92,442) (4,497) (1,588) (411,306)
Redemptions (2,708) (1,992) (315,449) (250,666) - - (566,115)
--------- --------- ----------- ----------- ---------- ---------- -----------
PARTNERS' CAPITAL,
March 31, 1996 46,819 12,945 $5,134,273 $1,495,676 $ 74,611 $ 25,181 $6,729,741
========= ========= =========== =========== ========== ========== ===========
PARTNERS' CAPITAL,
DECEMBER 31, 1996 33,001 6,911 $4,195,801 $ 940,990 $ 87,083 $ 30,069 $5,253,943
Net Income 147,570 34,835 3,072 1,124 186,601
Redemptions (2,135) (372) (286,394) (53,886) - - (340,280)
--------- --------- ----------- ----------- ---------- ---------- -----------
PARTNERS' CAPITAL,
March 31, 1997 30,866 6,539 $4,056,977 $ 921,939 $ 90,155 $ 31,193 $5,100,264
========= ========= =========== =========== ========== ========== ===========
</TABLE>
See notes to financial statements.
4
<PAGE>
THE SECTOR STRATEGY FUND/SM/ IV L.P.
------------------------------------
(A Delaware Limited Partnership)
--------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These financial statements have been prepared without audit. In the opinion
of management, the financial statements contain all adjustments (consisting
of only normal recurring adjustments) necessary to present fairly the
financial position of The SECTOR Strategy Fund/SM/ IV L.P. (the
"Partnership" or the "Fund") as of March 31, 1997 and the results of its
operations for the three months ended March 31, 1997 and 1996. However, the
operating results for the interim periods may not be indicative of the
results expected for the full year.
Certain information and footnote disclosures normally included in annual
financial statements prepared in accordance with general accepted accounting
principles have been omitted. It is suggested that these financial
statements be read in conjunction with the financial statements and notes
thereto included in the Partnership's Annual Report on Form 10-K filed with
the Securities and Exchange Commission for the year ended December 31, 1996
(the "Annual Report").
2. INVESTMENT
At March 31, 1997 the Partnership had investments in the ML JWH Financial
and Metals Portfolio L.L.C. ("JWH LLC"), ML Chesapeake Diversified
L.L.C.("Chesapeake LLC"), and effective January 1, 1997 , the Partnership
has an additional investment in the SJO Prospect Global Diversified
Portfolio L.L.C. ("SJO LLC").
Total revenues and fees with respect to such investments are set forth as
follows:
<TABLE>
<CAPTION>
Total Brokerage Administrative Profit Income from
Revenue Commissions Fees Shares Investments
---------------- ---------------- ---------------- ---------------- -----------------
<S> <C> <C> <C> <C> <C>
SERIES A UNITS
JWH LLC $ 47,863 $ 28,919 $ 796 $ 299 $ 17,849
Chesapeake LLC 104,826 26,011 716 15,865 62,234
SJO LLC 125,589 43,271 1,190 10,642 70,486
---------------- ---------------- ---------------- ---------------- -----------------
Total 278,278 $ 98,201 $ 2,702 $ 26,806 $ 150,569
---------------- ---------------- ---------------- ---------------- -----------------
SERIES B UNITS
JWH LLC $ 12,568 $ 6,709 $ 208 $ 171 $ 5,480
Chesapeake LLC 26,696 5,990 185 4,018 16,503
SJO LLC 23,524 7,270 225 1,980 14,049
---------------- ---------------- ---------------- ---------------- -----------------
Total $ 62,788 $ 19,969 $ 618 $ 6,169 $ 36,032
---------------- ---------------- ---------------- ---------------- -----------------
TOTAL ALL UNITS
JWH LLC $ 60,431 $ 35,628 $ 1,004 $ 470 $ 23,329
Chesapeake LLC 131,522 32,001 901 19,883 78,737
SJO LLC 149,113 50,541 1,415 12,622 84,535
---------------- ---------------- ---------------- ---------------- -----------------
Total $ 344,066 $ 118,170 $ 3,320 $ 32,975 $ 186,601
================ ================ ================ ================ =================
</TABLE>
5
<PAGE>
3. FAIR VALUE AND OFF-BALANCE SHEET RISK
The Partnership's revenues by reporting category for the three months ended
March 31, 1996 were as follows (there were no trading revenues reported for
the first quarter 1997):
1996
----
Interest rates and
stock indices $ (286,572)
Commodities (65,877)
Currencies 89,226
Energy (30,757)
Metals (32,675)
---------------
$ (326,655)
===============
The average fair value of the Partnership's derivative instrument positions
which were open as of year ended December 31, 1996 (there were no open
contracts as for the first quarter of 1997):
1996
----------------------------------------
Commitment to Commitment to
Purchase (Futures, Sell (Futures,
Options & Forwards) Options & Forwards)
------------------- -------------------
Interest rates $33,058,413 $18,792,013
Stock indices 1,231,238 372,559
Commodities 1,003,748 217,921
Currencies 5,481,707 6,889,270
Energy 318,455 529,411
Metals 657,983 1,358,960
------------------- -------------------
$41,751,544 $28,160,134
=================== ===================
As of March 31, 1997 and December 31, 1996, $0 and $ 2,361,684 of the
Partnership's assets, respectively, were held in segregated accounts at MLF
in accordance with Commodity Futures Trading Commission regulations.
6
<PAGE>
3. NET INCOME PER SERIES
The profit and loss of the Series A and Series B units for the three months
ended March 31, 1997 and March 31, 1996 are as follows:
<TABLE>
<CAPTION>
1997 1996
--------------------------- ---------------------------
Sector A Sector B Sector A Sector B
-------- -------- -------- --------
<S> <C> <C> <C> <C>
REVENUES:
Trading (loss):
Realized $ - $ - $ (123,041) $ (34,085)
Change in unrealized - - (130,983) (38,546)
------------ ------------ ----------- -------------
Total trading results - - (254,024) (72,631)
Interest income 61,932 18,819
Income from investments 150,641 35,960 - -
Total revenues 150,641 35,960 (192,092) (53,812)
------------ ------------ ----------- -------------
EXPENSES:
Profit shares - - 1,008 1,329
Brokerage commissions - - 121,071 37,809
Administrative fees - - 3,105 1,080
Total expenses - - 125,184 40,218
------------ ------------ ----------- -------------
NET INCOME (LOSS) $ 150,641 $ 35,960 $ (317,276) $ (94,030)
============ ============ =========== =============
NET INCOME (LOSS) PER UNIT:
Weighted average number
of units outstanding 32,044 6,770 48,373 13,934
====== ===== ====== ======
Weighted average net
income (loss) per GeneralPartner
and Limited Partner Unit $ 4.70 $ 5.31 $ (6.56) $ (6.75)
====== ====== ======= =======
</TABLE>
7
<PAGE>
Item 2: Management's Discussion and Analysis of Financial Condition and
---------------------------------------------------------------
Results of Operations
---------------------
Operational Overview: Advisor Selections
- ----------------------------------------
Due to the nature of the Fund's business, its results of operations
depend on Merrill Lynch Investment Partners Inc. ("MLIP")'s ability to select
Advisors and determine the appropriate percentage of each series' assets to
allocate to them for trading, as well as the Advisors' ability to recognize and
capitalize on trends and other profit opportunities in different sectors of the
world commodity markets. MLIP's Advisor selection procedure and leveraging
analysis, as well as the Advisors' trading methods, are confidential, so that
substantially the only information that can be furnished regarding the Fund's
results of operations is contained in the performance record of its trading.
Unlike operating businesses, general economic or seasonal conditions do not
directly affect the profit potential of the Fund, and its past performance is
not necessarily indicative of future results. Because of the speculative nature
of its trading, operational or economic trends have little relevance to the
Fund's results. MLIP believes, however, that there are certain market
conditions, for example, markets with strong price trends, in which the Fund has
a better likelihood of being profitable than in others.
As of April 1, 1997, the Partnership's assets were allocated as
follows:
SERIES A UNITS:
---------------
%
TRADING ADVISOR SECTOR ALLOCATION
--------------- ------ ----------
John W. Henry & Co., Inc. Financial/
Metals 36.37
Chesapeake Capital Corporation Diversified Program 9.55
Sjo, Inc. Financials 54.08
------
100.00%
SERIES B UNITS:
---------------
%
TRADING ADVISOR SECTOR ALLOCATION
--------------- ------ ----------
John W. Henry & Co., Inc. Financial/
Metals 33.87
Chesapeake Capital Corporation Diversified Program 29.78
Sjo, Inc. Financials 36.35
------
100.00%
MLIP expects to continue to change both allocations and Advisor
selections from time to time without advance notice to existing investors.
MLIP has no timetable or schedule for making Advisor changes or
reallocations, and generally intends to make a medium- to long-term commitment
to all Advisors selected. However, there can be no assurance as to the
frequency or number of the Advisor changes which may take place in the future,
or as to how long any of the current Advisors will continue to manage assets for
the Fund.
Results of Operations - General
- -------------------------------
MLIP believes that multi-Advisor futures funds should be regarded as
medium- to long-term investments but, unlike an operating business, it is
difficult to identify "trends" in the Fund's operations and virtually impossible
to make any predictions regarding future results based on results to date.
Markets in which sustained price trends occur with some frequency tend
to be more favorable to managed futures investments than "whipsaw," "choppy"
markets, but (i) this is not always the case, (ii) it is impossible to predict
when trending markets will occur and (iii) different Advisors are affected
differently by trends in general as well as by particular types of trends.
The Fund controls credit risk in its trading in the derivatives markets
by trading only through Merrill Lynch entities which MLIP believes to be
creditworthy. The Fund attempts to control the market risk inherent in its
derivatives trading by utilizing a multi-advisor, multi-strategy structure.
This structure purposefully attempts to diversify the Fund's Advisor group among
different strategy types and market sectors in an effort to reduce risk
(although the Fund's portfolio currently emphasizes technical and trend-
following approaches).
Performance Summary
- -------------------
SERIES A UNITS:
---------------
During the first three months of 1996, the Fund's average month-end Net
Assets equalled $5,598,857, and the Fund recognized gross trading losses of
$254,024 or 4.54% of such average month-end Net Assets. Brokerage commissions
of $121,071 or 2.16%, Administrative fees of
8
<PAGE>
3,105 or 0.06%, and Profit Shares of $1,008 or 0.02% of average month-end Net
Assets were paid. Interest income of $61,932 or 1.11% of average month-end Net
Assets resulted in a net loss of $317,276 or 5.67% of average month-end Net
Assets, which resulted in a 5.68% decrease in the Net Asset Value per Unit since
December 31, 1995.
During the first three months of 1997, the Fund's average month-end Net
Assets equalled $4,223,267. Earnings from investments of $150,641 or 3.57% of
average month-end Net Assets resulted in a net gain of $150,641 or 3.57% of
average month-end Net Assets, which resulted in a 3.53% increase in the Net
Asset Value per Unit since December 31, 1996.
During the first three months of 1997 and 1996, the Fund experienced 3
profitable months and 3 unprofitable months.
MONTH-END NET ASSET VALUE PER SERIES A UNIT
Jan. Feb. Mar.
------- ------- -------
1996 $121.53 $113.75 $111.26
1997 132.87 135.01 134.36
SERIES B UNITS:
---------------
During the first three months of 1996, the Fund's average month-end Net
Assets equalled $1,684,083, and the Fund recognized gross trading losses of $
72,631 or 4.31% of such average month-end Net Assets. Brokerage commissions of
$37,809 or 2.25%, Administrative fees of $1,080 or .06% and Profit Shares of
$1,329 or .08% of average month-end Net Assets were paid. Interest income of
$18,819 or 1.12 % of average month-end Net Assets resulted in net loss of
$94,030 or 5.58% of average month-end Net Assets, which resulted in a 5.93 %
increase in the Net Asset Value per Unit since December 31, 1995.
During the first three months of 1997, the Fund's average month-end Net
Assets equalled $969,665, Earnings from investments of $35,960 or 3.71% of
average month-end Net Assets resulted in a net gain of $35,960 or 3.71% of
average month-end Net Assets, which resulted in a 3.74% increase in the Net
Asset Value per Unit since December 31, 1996.
During the first three months of 1997 and 1996, the Fund experienced 3
profitable months and 3 unprofitable months.
MONTH-END NET ASSET VALUE PER SERIES B UNIT
Jan. Feb. Mar.
------- ------- -------
1996 $129.52 $120.41 $117.49
1997 $144.17 $146.33 $145.76
Importance of Market Factors
- ----------------------------
Comparisons between the Fund's performance in a given period in one
fiscal year to the same period in a prior year are unlikely to be meaningful,
given the uncertainty of price movements in the markets traded by the Fund. In
general, MLIP expects that the Fund is most likely to trade successfully in
markets which exhibit strong and sustained price trends. The current Advisor
group emphasizes technical and trend-following methods. Consequently, one would
expect that in trendless, "choppy" markets the Fund would likely be
unprofitable, while in markets in which major price movements occur, the Fund
would have its best profit potential (although there could be no assurance that
the Fund would, in fact, trade profitably). However, trend-followers not
infrequently will miss major price movements, and market corrections can result
in rapid and material losses (sometimes as much as 5% in a single day).
Although MLIP monitors market conditions and Advisor performance on an ongoing
basis in overseeing the Fund's trading, MLIP does not attempt to "market
forecast" or to "match" trading styles with predicted market conditions.
Rather, MLIP concentrates on quantitative and qualitative analysis of
prospective Advisors, as well as on statistical studies of the historical
performance parameters of different Advisor combinations in selecting Advisors
and allocating and reallocating Fund assets among them.
Because managed futures advisors' strategies are proprietary and
confidential and market movements unpredictable, selecting advisors to implement
speculative trading strategies involves considerable uncertainty. Furthermore,
the concentration of the Fund's current Advisor portfolio, both in terms of the
number of managers retained and the common emphasis of their strategies on
technical and trend-following methods, increases the risk that unexpectedly bad
performance, turbulent market conditions or a combination of the two will result
in significant losses.
9
<PAGE>
Liquidity
- ---------
Most of the Partnership's assets are held as cash which, in turn, is
used to margin its futures positions and earns interest income and is withdrawn,
as necessary, to pay redemptions and fees.
The futures contracts in which the Partnership trades may become illiquid
under certain market conditions. Commodity exchanges limit fluctuations in
futures prices during a single day by regulations referred to as "daily limits."
During a single day no trades may be executed at prices beyond the daily limit.
Once the price of a futures contract for a particular commodity has increased or
decreased by an amount equal to the daily limit, positions in the commodity can
generally neither be taken nor liquidated unless traders are willing to effect
trades at or within the limit. Futures contracts have occasionally moved to the
daily limit for several consecutive days with little or no trading. Such market
conditions could prevent the Partnership from promptly liquidating its futures
(including its options) positions. There are no limitations on the daily price
moves in trading foreign currency forward contracts through banks, although
illiquidity may develop in the forward markets due to large spreads between
"bid" and "ask" prices quoted. (Forward contracts are the bank version of
currency futures contracts and are not traded on exchanges.)
Capital Resources
- -----------------
The Partnership does not have, nor does it expect to have, any capital
assets and has no material commitments for capital expenditures. The
Partnership uses its assets to supply the necessary margin or premiums for, and
to pay any losses incurred in connection with, its trading activity and to pay
redemptions and fees.
Inflation is not a significant factor in the Fund's profitability,
although inflationary cycles can give rise to the type of major price movements
which can have a materially favorable or adverse impact on the Fund's
performance.
Changes in the level of prevailing interest rates (a factor generally
associated with inflation) could have a material effect on the percentage of the
total capital which is committed to trading, as interest rates affect the
calculation of the discounted minimum Net Asset Value per Unit which Merrill
Lynch & Co., Inc. has guaranteed to investors.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
There are no pending legal proceedings to which the Partnership or the
General Partner is a party.
John W. Henry & Company, Inc. ("JWH") is one of the Advisors retained by
the Fund, managing approximately 37% with respect A and 34% with respect to
Series B of the Fund's assets committed to trading as of April 1, 1997. In
September 1996, JWH was named as a co-defendant in a class action lawsuits
brought in the California Superior Court, Los Angeles County and in the New York
Supreme Court, New York County. In November, JWH was named as a co-defendant in
a class action complaint filed in Superior Court of the State of Delaware for
Newcastle County that contained the same allegations as the New York and
California complaints. The actions, which seek unspecified damages, purport to
be brought on behalf of investors in certain Dean Witter, Discover & Co. ("Dean
Witter") commodity pools, some of which are advised by JWH, and are primarily
directed at Dean Witter's alleged fraudulent selling practices in connection
with the marketing of those pools. JWH is essentially alleged to have aided and
abetted or directly participated with Dean Witter in those practices. JWH
believes the allegations against it are without merit; it intends to contest
these allegations vigorously, and is convinced that it will be shown to have
acted properly and in the best interest of the investors.
Item 2. Changes in Securities
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item 5. Other Information
None.
10
<PAGE>
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
--------
There are no exhibits required to be filed as part of this document.
(b) Reports on Form 8-K
-------------------
There were no reports on Form 8-K filed during the first three months
of fiscal 1997.
11
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
THE SECTOR STRATEGY FUND/SM/ IV L.P.
By: MERRILL LYNCH INVESTMENT PARTNERS INC.
(General Partner)
Date: May 13, 1997 By /s/JOHN R. FRAWLEY, JR.
-----------------------
John R. Frawley, Jr.
President, Chief Executive Officer
and Director
Date: May 13, 1997 By /s/MICHAEL A. KARMELIN
----------------------
Michael A. Karmelin
Chief Financial Officer,
and Director
<TABLE> <S> <C>
<PAGE>
<ARTICLE> BD
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION, CONSOLIDATED STATEMENTS
OF OPERATIONS, CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<CIK> 0000883974
<NAME> SECTOR STRATEGY FUND IV LP
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS
<FISCAL-YEAR-END> DEC-31-1996 DEC-31-1995
<PERIOD-START> JAN-01-1997 JAN-01-1996
<PERIOD-END> MAR-31-1997 MAR-31-1996
<CASH> 0 0
<RECEIVABLES> 5,137,022 6,891,055
<SECURITIES-RESALE> 0 0
<SECURITIES-BORROWED> 0 0
<INSTRUMENTS-OWNED> 0 0
<PP&E> 0 0
<TOTAL-ASSETS> 5,137,022 6,891,055
<SHORT-TERM> 0 0
<PAYABLES> 36,758 161,314
<REPOS-SOLD> 0 0
<SECURITIES-LOANED> 0 0
<INSTRUMENTS-SOLD> 0 0
<LONG-TERM> 0 0
0 0
0 0
<COMMON> 0 0
<OTHER-SE> 5,100,264 6,729,741
<TOTAL-LIABILITY-AND-EQUITY> 5,137,022 6,891,055
<TRADING-REVENUE> 0 (326,655)
<INTEREST-DIVIDENDS> 0 80,751
<COMMISSIONS> 0 165,402
<INVESTMENT-BANKING-REVENUES> 186,601 0
<FEE-REVENUE> 0 0
<INTEREST-EXPENSE> 0 0
<COMPENSATION> 0 0
<INCOME-PRETAX> 186,601 (411,306)
<INCOME-PRE-EXTRAORDINARY> 186,601 (411,306)
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 186,601 (411,306)
<EPS-PRIMARY> 4.81 (6.60)
<EPS-DILUTED> 4.81 (6.60)
</TABLE>