<PAGE>
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 June 30, 1996
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: 0-26002
PRUDENTIAL SECURITIES AGGRESSIVE GROWTH FUND L.P.
- --------------------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 13-3702808
- --------------------------------------------------------------------------------
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
One New York Plaza, 13th Floor, New York, New York 10292
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 804-7866
N/A
- --------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last report
Indicate by check CK 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 _CK_ No __
<PAGE>
<PAGE>
Part I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
PRUDENTIAL SECURITIES AGGRESSIVE GROWTH FUND L.P.
(a limited partnership)
STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------
ASSETS
Equity in commodity trading accounts:
Cash $ 2,444,853 $ 1,857,161
U.S. Treasury bills, at amortized cost 7,160,200 10,500,166
Net unrealized gain on open commodity positions 46,868 653,980
----------- ------------
Net equity 9,651,921 13,011,307
Organizational costs, net 8,442 12,282
----------- ------------
Total assets $ 9,660,363 $13,023,589
----------- ------------
----------- ------------
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable $ 951,261 $ 1,001,720
Accrued expenses 89,515 101,202
Management fees payable 15,953 21,539
----------- ------------
Total liabilities 1,056,729 1,124,461
----------- ------------
Commitments
Partners' capital
Limited partners (112,181.480 and 130,094.922 units outstanding) 8,517,531 11,704,062
General partner (1,134.000 and 2,168.070 units outstanding) 86,103 195,066
----------- ------------
Total partners' capital 8,603,634 11,899,128
----------- ------------
Total liabilities and partners' capital $ 9,660,363 $13,023,589
----------- ------------
----------- ------------
Net asset value per limited and general partnership unit
(``Units'') $ 75.93 $ 89.97
----------- ------------
----------- ------------
- ---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these statements
</TABLE>
2
<PAGE>
PRUDENTIAL SECURITIES AGGRESSIVE GROWTH FUND L.P.
(a limited partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended Three Months Ended
June 30, June 30,
----------------------------- -----------------------------
1996 1995 1996 1995
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
REVENUES
Net realized gain (loss) on
commodity transactions $ (821,543) $ 4,030,574 $ (729,868) $ 4,074,159
Change in net unrealized gain on
open commodity positions (607,112) (229,638) (30,930) (1,279,748)
Interest from U.S. Treasury bills 226,443 292,021 99,939 158,231
Other interest income 51,270 36,602 26,299 23,133
------------ ------------ ------------ ------------
(1,150,942) 4,129,559 (634,560) 2,975,775
------------ ------------ ------------ ------------
EXPENSES
Commissions 443,602 511,625 203,849 264,307
Other transaction fees 37,654 62,056 12,210 42,008
Management fees 108,064 133,670 49,511 70,446
Incentive fee -- 285,701 -- 285,701
General and administrative 67,394 93,412 18,970 46,374
Amortization of organizational
costs 2,324 4,257 1,136 1,737
------------ ------------ ------------ ------------
659,038 1,090,721 285,676 710,573
------------ ------------ ------------ ------------
Net income (loss) $ (1,809,980) $ 3,038,838 $ (920,236) $ 2,265,202
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
ALLOCATION OF NET INCOME (LOSS)
Limited partners $ (1,786,179) $ 2,999,270 $ (911,030) $ 2,234,878
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
General partner $ (23,801) $ 39,568 $ (9,206) $ 30,324
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
NET INCOME (LOSS) PER WEIGHTED
AVERAGE LIMITED AND GENERAL
PARTNERSHIP UNIT
Net income (loss) per weighted
average limited and general
partnership unit $ (14.02) $ 17.70 $ (7.31) $ 13.99
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Weighted average number of
limited and general partnership
units outstanding 129,059.906 171,700.656 125,856.820 161,956.423
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
- ----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these statements
</TABLE>
3
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PRUDENTIAL SECURITIES AGGRESSIVE GROWTH FUND L.P.
(a limited partnership)
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
(Unaudited)
<TABLE>
<CAPTION>
LIMITED GENERAL
UNITS PARTNERS PARTNER TOTAL
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
Partners' capital--December 31, 1995 132,262.992 $11,704,062 $195,066 $11,899,128
Net loss -- (1,786,179) (23,801) (1,809,980)
Redemptions (18,947.512) (1,400,352) (85,162) (1,485,514)
----------- ----------- -------- -----------
Partners' capital--June 30, 1996 113,315.480 $ 8,517,531 $ 86,103 $ 8,603,634
----------- ----------- -------- -----------
----------- ----------- -------- -----------
- ----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of this statement
</TABLE>
4
<PAGE>
PRUDENTIAL SECURITIES AGGRESSIVE GROWTH FUND L.P.
(a limited partnership)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
(Unaudited)
A. General
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 Prudential Securities Aggressive Growth Fund L.P. (the
``Partnership'') as of June 30, 1996 and the results of its operations for the
six and three months ended June 30, 1996. However, the operating results for the
interim periods may not be indicative of the results expected for a full year.
Certain information and footnote disclosures normally included in annual
financial statements prepared in accordance with generally 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, 1995 (the ``Annual
Report'').
Certain balances for prior periods have been reclassified to conform with
current financial statement presentation.
B. Related Parties
Prudential Securities Futures Management Inc. (the ``General Partner'') and
its affiliates perform services for the Partnership which include, but are not
limited to: brokerage services; accounting and financial management; registrar,
transfer and assignment functions; investor communications; printing and other
administrative services. The costs incurred for these services were:
<TABLE>
<CAPTION>
Six Months Ended Three Months Ended
June 30, June 30,
--------------------- ---------------------
1996 1995 1996 1995
<S> <C> <C> <C> <C>
-------------------------------------------------------------------------------------
Commissions $ 443,602 $ 511,625 $ 203,849 $ 264,307
General and administrative 40,547 51,000 15,848 25,500
--------- --------- --------- ---------
$ 484,149 $ 562,625 $ 219,697 $ 289,807
--------- --------- --------- ---------
--------- --------- --------- ---------
</TABLE>
Expenses payable to the General Partner and its affiliates as of June 30,
1996 and December 31, 1995 were $57,237 and $49,472, respectively.
The General Partner is a wholly-owned subsidiary of Prudential Securities
Incorporated (``PSI''). The Partnership maintains its trading and cash accounts
at PSI, the Partnership's commodity broker. Approximately 75% of the
Partnership's assets are invested in interest-earning U.S. Treasury obligations
(primarily U.S. Treasury bills), a significant portion of which is utilized for
margin purposes for the Partnership's trading activities. As described in the
Annual Report, all commissions for brokerage services are paid to PSI.
Other interest income represents interest earned on equity balances held at
PSI beginning February 1, 1995.
When the Partnership engages in forward foreign currency transactions it
trades with PSI who simultaneously engages in back-to-back transactions with an
affiliate who, pursuant to the Partnership's prospectus, is obligated to charge
a competitive price.
As of June 30, 1996, a non-U.S. affiliate of the General Partner owns 361.248
limited partnership units of the Partnership.
5
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C. Credit and Market Risk
Since the Partnership's business is to trade futures, forward and options
contracts, its capital is at risk due to changes in the value of these contracts
(market risk) or the inability of counterparties to perform under the terms of
the contracts (credit risk).
Futures, forward and options contracts involve varying degrees of off-balance
sheet risk; and changes in the level of volatility of interest rates, foreign
currency exchange rates or the market values of the contracts (or commodities
underlying the contracts) frequently result in changes in the Partnership's
unrealized gain (loss) on open commodity positions reflected in the statements
of financial condition. The Partnership's exposure to market risk is influenced
by a number of factors including the relationships among the contracts held by
the Partnership as well as the liquidity of the markets in which the contracts
are traded.
Futures and options contracts are traded on organized exchanges and are thus
distinguished from forward contracts which are entered into privately by the
parties. The credit risks associated with futures and options contracts are
typically perceived to be less than those associated with forward contracts,
because exchanges typically provide clearinghouse arrangements in which the
collective credit (subject to certain limitations) of the members of the
exchanges is pledged to support the financial integrity of the exchange. On the
other hand, the Partnership must rely solely on the credit of its broker (PSI)
with respect to forward transactions. To the extent that the Partnership engages
in forward transactions, it will present its unrealized gains and losses on open
forward positions as a net amount in its statements of financial condition
because it has a master netting agreement with PSI.
The General Partner attempts to minimize both credit and market risks by
requiring the Partnership's trading managers to abide by various trading
limitations and policies. The General Partner monitors compliance with these
trading limitations and policies which include, but are not limited to,
executing and clearing all trades with creditworthy counterparties (currently
PSI is the sole counterparty or broker); limiting the amount of margin or
premium required for any one commodity or all commodities combined; and
generally limiting transactions to contracts which are traded in sufficient
volume to permit the taking and liquidating of positions. The General Partner
may impose additional restrictions (through modifications of such trading
limitations and policies) upon the trading activities of the trading managers as
it, in good faith, deems to be in the best interests of the Partnership.
PSI, when acting as the Partnership's futures commission merchant in
accepting orders for the purchase or sale of domestic futures and options
contracts, is required by Commodity Futures Trading Commission (``CFTC'')
regulations to separately account for and segregate as belonging to the
Partnership all assets of the Partnership relating to domestic futures and
options trading and is not to commingle such assets with other assets of PSI. At
June 30, 1996 and December 31, 1995, such segregated assets totalled $7,282,845
and $9,351,323, respectively. Part 30.7 of the CFTC regulations also requires
PSI to secure assets of the Partnership related to foreign futures and options
trading which totalled $2,369,076 and $3,659,984 at June 30, 1996 and December
31, 1995, respectively. There are no segregation requirements for assets related
to forward trading.
As of June 30, 1996, the Partnership's open futures contracts mature within
six months. As of December 31, 1995, the Partnership's open futures contracts
mature within nine months.
At June 30, 1996 and December 31, 1995, gross contract amounts of open
futures contracts were:
<TABLE>
<CAPTION>
June 30, 1996 December 31, 1995
------------- -----------------
<S> <C> <C>
Financial Futures Contracts:
Commitments to purchase $ 59,831,447 $ 236,546,535
Commitments to sell $ 20,879,145 $ 83,584,472
Currency Futures Contracts:
Commitments to purchase $ 1,133,292 --
Commitments to sell $ 1,544,156 $ 1,773,800
</TABLE>
The gross contract amounts represent the Partnership's potential involvement
in a particular class of financial instrument (if it were to take or make
delivery on an underlying futures contract). The gross contract amounts
significantly exceed the future cash requirements as the Partnership intends to
close out open positions prior to settlement and thus is generally subject only
to the risk of loss arising from the change in
6
<PAGE>
<PAGE>
the value of the contracts. As such, the Partnership considers the ``fair
value'' of its futures contracts to be the net unrealized gain or loss on the
contracts. Thus, the amount at risk associated with counterparty nonperformance
of all contracts is the net unrealized gain included in the statements of
financial condition. The market risk associated with the Partnership's
commitments to purchase commodities is limited to the gross contract amounts
involved, while the market risk associated with its commitments to sell is
unlimited since the Partnership's potential involvement is to make delivery of
an underlying commodity at the contract price; therefore, it must repurchase the
contract at prevailing market prices.
At June 30, 1996 and December 31, 1995, the fair values of futures contracts
were:
<TABLE>
<CAPTION>
June 30, 1996 December 31, 1995
------------------------ ------------------------
Fair Value Fair Value
------------------------ ------------------------
Assets Liabilities Assets Liabilities
-------- ----------- -------- -----------
<S> <C> <C> <C> <C>
Domestic exchanges
Financial $ -- $ 1,500 $ 33,813 $ --
Currencies 13,128 8,463 16,938 11,088
Foreign exchanges
Financial 90,726 47,023 624,634 10,317
-------- ----------- -------- -----------
$103,854 $56,986 $675,385 $21,405
-------- ----------- -------- -----------
-------- ----------- -------- -----------
</TABLE>
The following table presents the average fair value of futures contracts
during the six and three months ended June 30, 1996 and 1995, respectively.
<TABLE>
<CAPTION>
For the six months ended For the three months ended
<S> <C> <C> <C> <C> <C> <C> <C> <C>
June 30, 1996 June 30, 1995 June 30, 1996 June 30, 1995
<CAPTION>
----------------------------------------------------------------------------------------------------------
Average Fair Value Average Fair Value Average Fair Value Average Fair Value
----------------------- ----------------------- ----------------------- -------------------------
Assets Liabilities Assets Liabilities Assets Liabilities Assets Liabilities
-------- ----------- -------- ----------- -------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Domestic exchanges
Financial $ 18,564 $ 1,204 $ 64,590 $ 1,432 $ 8,969 $ 2,106 $ 61,950 $ 2,506
Currencies 59,734 6,627 60,736 17,634 71,531 4,635 75,466 19,416
Other -- -- 8,469 2,030 -- -- 11,670 2,161
Foreign exchanges
Financial 259,242 29,896 821,826 64,307 106,722 30,477 1,199,387 80,346
-------- ----------- -------- ----------- -------- ----------- ---------- -----------
$337,540 $37,727 $955,621 $85,403 $187,222 $37,218 $1,348,473 $ 104,429
-------- ----------- -------- ----------- -------- ----------- ---------- -----------
-------- ----------- -------- ----------- -------- ----------- ---------- -----------
</TABLE>
7
<PAGE>
The following table presents the net realized gains (losses) and the change
in net unrealized gains/losses of futures contracts during the six months ended
June 30, 1996 and 1995, respectively.
<TABLE>
<CAPTION>
For the six months ended June 30, 1996 For the six months ended June 30, 1995
------------------------------------------------- ------------------------------------------------
Change in Net Change in Net
Net Realized Unrealized Net Realized Unrealized
Gains (Losses) Gains/Losses Total Gains (Losses) Gains/Losses Total
-------------- -------------- ----------- -------------- -------------- ----------
<S> <C> <C> <C> <C> <C> <C>
Domestic exchanges
Financial $ 30,581 $ (35,313) $ (4,732) $ 468,336 $ (96,830) $ 371,506
Currencies 31,171 (1,185) 29,986 97,463 (3,238) 94,225
Other -- -- -- (139,215) 14,700 (124,515)
Foreign exchanges
Financial (883,295) (570,614) (1,453,909) 3,584,466 (144,270) 3,440,196
Other -- -- -- 19,524 -- 19,524
-------------- -------------- ----------- -------------- -------------- ----------
$ (821,543) $ (607,112) $(1,428,655) $4,030,574 $ (229,638) $3,800,936
-------------- -------------- ----------- -------------- -------------- ----------
-------------- -------------- ----------- -------------- -------------- ----------
</TABLE>
The following table presents the net realized gains (losses) and the change
in net unrealized gains/losses of futures contracts during the three months
ended June 30, 1996 and 1995, respectively.
<TABLE>
<CAPTION>
For the three months ended June 30, 1996 For the three months ended June 30, 1995
------------------------------------------------- ------------------------------------------------
Change in Net Change in Net
Net Realized Unrealized Net Realized Unrealized
Gains (Losses) Gains/Losses Total Gains (Losses) Gains/Losses Total
-------------- -------------- ----------- -------------- -------------- ----------
<S> <C> <C> <C> <C> <C> <C>
Domestic exchanges
Financial $ (16,988) $ (10,631) $ (27,619) $ 325,156 $ 22,150 $ 347,306
Currencies 18,066 10,003 28,069 (77,290) (130,851) (208,141)
Other -- -- -- (3,010) (7,025) (10,035)
Foreign exchanges
Financial (730,946) (30,302) (761,248) 3,829,303 (1,164,022) 2,665,281
-------------- -------------- ----------- -------------- -------------- ----------
$ (729,868) $ (30,930) $ (760,798) $4,074,159 $ (1,279,748) $2,794,411
-------------- -------------- ----------- -------------- -------------- ----------
-------------- -------------- ----------- -------------- -------------- ----------
</TABLE>
8
<PAGE>
PRUDENTIAL SECURITIES AGGRESSIVE GROWTH FUND L.P.
(a limited partnership)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
The Partnership commenced trading operations on August 2, 1993 with gross
proceeds of $10,388,300. After accounting for organizational and offering
expenses, the Partnership's net proceeds were $10,180,534.
The Partnership continued to offer Units on a monthly basis until the
continuous offering was terminated on January 31, 1995. Additional contributions
raised through the continuous offering resulted in additional net proceeds to
the Partnership of $9,988,243.
At June 30, 1996, 100% of the Partnership's total net assets were allocated
to commodities trading. A significant portion of the net asset value was held in
U.S. Treasury bills (which represented approximately 75% of the net asset value
prior to redemptions payable) and cash, which are used as margin for the
Partnership's trading in commodities. Inasmuch as the sole business of the
Partnership is to trade in commodities, the Partnership continues to own such
liquid assets to be used as margin. Beginning February 1, 1995, interest earned
on equity balances held at PSI, which currently approximate 25% of Partnership
assets, is being paid to the Partnership in addition to all interest earned on
the U.S. Treasury bills.
The commodity contracts are subject to periods of illiquidity because of
market conditions, regulatory considerations and other reasons. For example,
commodity exchanges limit fluctuations in certain commodity futures contract
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
neither be taken nor liquidated unless traders are willing to effect trades at
or within the daily limit. Commodity futures prices have occasionally moved the
daily limit for several consecutive days with little or no trading. Such market
conditions could prevent the Partnership from promptly liquidating its commodity
futures positions.
Since the Partnership's business is to trade futures, forward and options
contracts, its capital is at risk due to changes in the value of these contracts
(market risk) or the inability of counterparties to perform under the terms of
the contracts (credit risk). The General Partner attempts to minimize these
risks by requiring the Partnership's trading managers to abide by various
trading limitations and policies. See Note C to the financial statements for a
further discussion on the credit and market risks associated with the
Partnership's futures, forward and options contracts.
The Partnership does not have, nor does it expect to have, any capital
assets.
Redemptions by limited partners for the six and three months ended June 30,
1996 were $1,400,352 and $942,773, respectively. Redemptions by General Partner
for the six and three months ended June 30, 1996 were $85,162 and $9,491,
respectively. Redemptions recorded for the period from August 2, 1993
(commencement of operations) through June 30, 1996 were $8,415,842 for limited
partners and $85,162 for the General Partner. Future redemptions will impact the
amount of funds available for investments in commodity contracts in subsequent
periods.
Results of Operations
The net asset value per Unit as of June 30, 1996 was $75.93, a decrease of
15.61% from the December 31, 1995 net asset value per Unit of $89.97.
The Partnership's performance was negative in the month of April. Profits
reaped in the currencies sector were outweighed by losses in the financials and
stock indices sectors, specifically in buying the British and Japanese bond and
selling Australian, British, Canadian, German, Italian, and Swiss bond
positions. European bond prices remained steady in early April but traded higher
as the German Bundesbank cut the Lombard and discount rates mid-month. Higher
interest rates in the U.S. stifled the upward price movement in European bonds.
In Germany, a higher than expected unemployment figure supported bond prices. In
France, lower than expected fourth quarter GDP and industrial production helped
bond prices trade higher. British bond prices traded modestly higher on weaker
than expected industrial production and retail sales.
9
<PAGE>
<PAGE>
Italian bond prices rallied strongly on post election euphoria. During the first
week of April, Australian bond prices followed the lead of U.S. bond prices from
a bearish U.S. employment report. Later in the month, Australian consumer price
index data came in much lower than market expectations, causing Australian bond
prices to rally sharply. Canadian bond prices traded lower in reaction to U.S.
bond prices. Early in the month, Japanese bonds rallied on rumors of a solution
to the ``jusen'' mortgage lending bailout. Talk by the Ministry of Finance of
accepting a higher level of interest rates caused Japanese bond prices to weaken
later in the month.
The Partnership's performance was negative in the month of May. Losses were
incurred in the currencies, stock indices, and financials sectors, specifically
in selling Australian and British bonds. Among the factors affecting foreign
exchange markets in May were the continuing strength of the U.S. dollar against
most major currencies and a comparatively vigorous U.S. economy. The German mark
strengthened against the Japanese yen, causing losses for the Partnership. U.S.
bond markets remained volatile which affected bond markets worldwide, as
investors struggled to interpret conflicting U.S. economic reports. Losses were
incurred in the financials sector, specifically in selling Australian and
British bonds. European bond prices traded sideways to higher in reaction to
U.S. interest rates failing to surpass 7%. In Germany, strong March
manufacturing orders and higher than expected April money supply growth
prevented German bond prices from trading higher. In France, moderate growth in
the consumer price index and first quarter GDP added support to bond prices.
British bond prices remained under pressure on stronger than expected producer
and retail price increases. Weaker than expected March employment growth and a
smaller than expected increase in consumer prices added support to Australian
bond prices. Discussions by the Bank of Japan to keep interest rates at their
current levels caused Japanese bond prices to trade higher.
The Partnership's performance was negative in the month of June. Losses were
incurred in the financials, stock indices and currencies sectors. Negative
performance was primarily attributed to continued volatile global equity index
markets and ranging interest rates. Notable losses were collectively sustained
across short-term trades in global equity indices such as the S&P500, Hang Seng,
FTSE 100, CAC-40 as well as from positions in the Euroyen. In the currencies
sector, profits in the British pound were offset by losses in the German mark
and Japanese yen. In the financials sector, positions in French, British,
Japanese and German bonds were unprofitable. European bond prices traded
sideways to higher. In Germany, the Bundesbank left interest rates unchanged,
but there are still expectations that the Bundesbank will cut rates during the
third quarter. The Bank of France cut the intervention rate in response to
continued slow economic growth and a modest increase in inflation data. The Bank
of England also cut short-term interest rates. In Japan, bond prices traded
sideways. Early in the month, a report on the first quarter GDP showed the
economy was growing in excess of a 12% annual rate. However, the Bank of Japan
downplayed the GDP report by stating most of the growth was due to a dramatic
increase in consumer spending which could not be sustained. The Bank of Japan
also stated it would continue to keep short-term interest rates at the present
low levels to prevent the economy from going back into recession.
Interest income on U.S. Treasury bills decreased by approximately $66,000 and
$58,000 for the six and three months ended June 30, 1996 compared to the
corresponding periods in 1995 primarily due to lower interest rates and funds
available for investment in U.S. Treasury bills during 1996.
Other interest income consists of interest earned since February 1995 on
equity balances held at PSI. Other interest income for the six and three months
ended June 30, 1996 increased by approximately $15,000 and $3,000 as compared to
the corresponding periods in 1995.
Commissions are calculated on the Partnership's net asset value as of the
first day of each month and, therefore, vary accordingly to trading performance,
contributions and redemptions. Commissions decreased by approximately $68,000
and $60,000 for the six and three months ended June 30, 1996 compared to the
corresponding periods in 1995 primarily due to redemptions as well as losses
incurred in 1996.
Other transaction fees consist of National Futures Association, exchange and
clearing fees which are based on the number of trades the trading managers
execute. Other transaction fees decreased by approximately $24,000 and $30,000
for the six and three months ended June 30, 1996 compared to the corresponding
periods in 1995 primarily due to a decrease in trading volume.
All trading decisions are currently being made by Sjo, Inc. and Welton
Investment Systems Corporation (the ``Trading Managers''). Management fees are
calculated on the portion of the Partnership's net asset value allocated to each
Trading Manager at the end of each month and, therefore, are affected by trading
10
<PAGE>
<PAGE>
performance, contributions and redemptions. Management fees decreased
approximately $26,000 and $21,000 for the six and three months ended June 30,
1996 compared to the corresponding periods in 1995 primarily due to redemptions
as well as losses incurred in 1996.
Incentive fees are based on the New High Net Trading Profits generated by
each Trading Manager as defined in the Advisory Agreement between the
Partnership, the General Partner and each Trading Manager. No incentive fees
were earned during 1996. Incentive fees of approximately $286,000 were earned
during the three months ended June 30, 1995.
General and administrative expenses decreased by approximately $26,000 and
$27,000 for the six and three months ended June 30, 1996 as compared to the same
periods in 1995. These expenses include reimbursements of cost incurred by the
General Partner on behalf of the Partnership in addition to accounting, audit,
tax and legal fees as well as printing and postage costs related to reports sent
to limited partners. These decreases were primarily due to an overall decrease
in costs associated with administering the Partnership.
11
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings--There are no material legal proceedings pending by or
against the Registrant or the General Partner.
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
Item 6. (a) Exhibits--
3.1--Agreement of Limited Partnership of the Registrant, dated as
of March 19, 1993 as amended and restated as of May 6, 1993
(Incorporated by reference to Exhibit A to Registrant's
Amendment No. 1 to Registration Statement on Form S-1, File
No. 33-59828 dated May 7, 1993)
27.1--Financial Data Schedule (filed herewith)
(b) Reports on Form 8-K--Registrant's Current Report on Form 8-K dated
May 14, 1996, as filed with the Securities and Exchange Commission
on May 16, 1996, relating to Item 4 regarding the change in the
Registrant's certifying accountant from Deloitte & Touche LLP to
Price Waterhouse LLP.
12
<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 hereunto duly authorized.
PRUDENTIAL SECURITIES AGGRESSIVE GROWTH FUND L.P.
By: Prudential Securities Futures Management
Inc.A Delaware corporation, General Partner
By: /s/ Steven Carlino Date: August 14, 1996
----------------------------------------
Steven Carlino
Vice President and
Chief Accounting Officer for the
Registrant
13
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
The Schedule contains summary financial
information extracted from the financial
statements for Prudential Securities Aggressive
Growth Fund, L.P. and is qualified in its
entirety by reference to such financial statements
</LEGEND>
<RESTATED>
<CIK> 0000899174
<NAME> Prudential Securities Aggressive Growth Fund, L.P.
<MULTIPLIER> 1
<FISCAL-YEAR-END> Dec-31-1996
<PERIOD-START> Jan-1-1996
<PERIOD-END> Jun-30-1996
<PERIOD-TYPE> 6-Mos
<CASH> 2,444,853
<SECURITIES> 7,207,068
<RECEIVABLES> 8,442
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 9,660,363
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 9,660,363
<CURRENT-LIABILITIES> 1,056,729
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 8,603,634
<TOTAL-LIABILITY-AND-EQUITY> 9,660,363
<SALES> 0
<TOTAL-REVENUES> (1,150,942)
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 659,038
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,809,980)
<EPS-PRIMARY> (14.02)
<EPS-DILUTED> 0
</TABLE>
