<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 September 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) 778-7866
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>
September 30, December 31,
1996 1995
<S> <C> <C>
- ----------------------------------------------------------------------------------------------------
ASSETS
Equity in commodity trading accounts:
Cash $ 1,470,326 $ 1,857,161
U.S. Treasury bills, at amortized cost 7,112,035 10,500,166
Net unrealized gain on open commodity positions 1,007,428 653,980
------------- ------------
Net equity 9,589,789 13,011,307
Organizational costs, net 6,441 12,282
------------- ------------
Total assets $ 9,596,230 $13,023,589
------------- ------------
------------- ------------
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable $ 1,179,011 $ 1,001,720
Accrued expenses 78,946 101,202
Management fees payable 15,864 21,539
------------- ------------
Total liabilities 1,273,821 1,124,461
------------- ------------
Commitments
Partners' capital
Limited partners (98,250.457 and 130,094.922 units outstanding) 8,239,052 11,704,062
General partner (994.000 and 2,168.070 units outstanding) 83,357 195,066
------------- ------------
Total partners' capital 8,322,409 11,899,128
------------- ------------
Total liabilities and partners' capital $ 9,596,230 $13,023,589
------------- ------------
------------- ------------
Net asset value per limited and general partnership unit
(``Units'') $ 83.86 $ 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>
Nine Months Ended Three Months Ended
September 30, September 30,
----------------------------- -----------------------------
1996 1995 1996 1995
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
REVENUES
Net realized gain (loss) on
commodity transactions $ (720,511) $ 4,033,161 $ 101,032 $ 2,587
Change in net unrealized gain on
open commodity positions 353,448 (213,851) 960,560 15,787
Interest from U.S. Treasury bills 310,717 448,354 84,274 156,333
Other interest income 75,333 62,046 24,063 25,444
------------ ------------ ------------ ------------
18,987 4,329,710 1,169,929 200,151
------------ ------------ ------------ ------------
EXPENSES
Commissions 615,747 772,720 172,145 261,095
Other transaction fees 47,754 76,061 10,100 14,005
Management fees 152,673 198,740 44,609 65,070
Incentive fee -- 285,701 -- --
General and administrative 110,682 139,943 43,288 46,531
Amortization of organizational
costs 3,340 5,630 1,016 1,373
------------ ------------ ------------ ------------
930,196 1,478,795 271,158 388,074
------------ ------------ ------------ ------------
Net income (loss) $ (911,209) $ 2,850,915 $ 898,771 $ (187,923)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
ALLOCATION OF NET INCOME (LOSS)
Limited partners $ (896,402) $ 2,814,028 $ 889,777 $ (185,242)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
General partner $ (14,807) $ 36,887 $ 8,994 $ (2,681)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
NET INCOME (LOSS) PER WEIGHTED
AVERAGE LIMITED AND GENERAL
PARTNERSHIP UNIT
Net income (loss) per weighted
average limited and general
partnership unit $ (7.36) $ 17.26 $ 7.93 $ (1.24)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Weighted average number of
limited and general partnership
units outstanding 123,811.764 165,129.677 113,315.480 151,987.724
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
- ----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these statements
</TABLE>
3
<PAGE>
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 -- (896,402) (14,807) (911,209)
Redemptions (33,018.535) (2,568,608) (96,902) (2,665,510)
----------- ----------- -------- -----------
Partners' capital--September 30, 1996 99,244.457 $ 8,239,052 $ 83,357 $ 8,322,409
----------- ----------- -------- -----------
----------- ----------- -------- -----------
- ----------------------------------------------------------------------------------------------------
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
SEPTEMBER 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 September 30, 1996 and the results of its operations for
the nine and three months ended September 30, 1996 and 1995. 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>
Nine Months Ended Three Months Ended
September 30, September 30,
--------------------- ---------------------
1996 1995 1996 1995
<S> <C> <C> <C> <C>
-------------------------------------------------------------------------------------
Commissions $ 615,747 $ 772,720 $ 172,145 $ 261,095
General and administrative 58,734 74,775 18,187 23,775
--------- --------- --------- ---------
$ 674,481 $ 847,495 $ 190,332 $ 284,870
--------- --------- --------- ---------
--------- --------- --------- ---------
</TABLE>
Expenses payable to the General Partner and its affiliates as of September
30, 1996 and December 31, 1995 were $35,290 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.
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 September 30, 1996, a non-U.S. affiliate of the General Partner owns
361.248 limited partnership units of the Partnership.
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).
5
<PAGE>
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
September 30, 1996 and December 31, 1995, such segregated assets totalled
$6,793,960 and $8,199,633, 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 $2,795,829 and $4,811,674 at September 30, 1996
and December 31, 1995, respectively. There are no segregation requirements for
assets related to forward trading.
As of September 30, 1996, the Partnership's open futures contracts mature
within one year. As of December 31, 1995, the Partnership's open futures
contracts mature within nine months.
At September 30, 1996 and December 31, 1995, gross contract amounts of open
futures contracts were:
<TABLE>
<CAPTION>
September 30, 1996 December 31, 1995
------------------ -----------------
<S> <C> <C>
Financial Futures Contracts:
Commitments to purchase $246,728,543 $ 236,546,535
Commitments to sell $ -- $ 83,584,472
Currency Futures Contracts:
Commitments to purchase $ 5,483,982 $ --
Commitments to sell $ 3,037,530 $ 1,773,800
Other Futures Contracts:
Commitments to purchase $ 75,250 $ --
</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 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
6
<PAGE>
<PAGE>
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 September 30, 1996 and December 31, 1995, the fair values of futures
contracts were:
<TABLE>
<CAPTION>
September 30, 1996 December 31, 1995
-------------------------- ------------------------
Fair Value Fair Value
-------------------------- ------------------------
Assets Liabilities Assets Liabilities
---------- ----------- -------- -----------
<S> <C> <C> <C> <C>
Domestic exchanges
Financial $ 750 $ -- $ 33,813 $ --
Currencies 58,451 4,176 16,938 11,088
Other -- 825 -- --
Foreign exchanges
Financial 954,483 1,255 624,634 10,317
---------- ----------- -------- -----------
$1,013,684 $ 6,256 $675,385 $21,405
---------- ----------- -------- -----------
---------- ----------- -------- -----------
</TABLE>
The following table presents the average fair value of futures contracts
during the nine and three months ended September 30, 1996 and 1995,
respectively.
<TABLE>
<CAPTION>
For the nine months ended For the three months ended
September 30, 1996 September 30, 1995 September 30, 1996 September 30, 1995
----------------------------------------------------------------------------------------------------------
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 $ 13,070 $ 886 $ 46,748 $ 2,933 $ 188 $ 484 $ 15,894 $ 5,850
Currencies 51,933 7,781 67,795 13,298 28,579 9,972 63,201 3,194
Other -- 83 8,760 1,421 -- 206 10,855 100
Foreign exchanges
Financial 318,964 23,842 646,745 63,574 366,418 19,043 236,058 63,406
-------- ----------- -------- ----------- -------- ----------- ---------- -----------
$383,967 $32,592 $770,048 $81,226 $395,185 $29,705 $ 326,008 $ 72,550
-------- ----------- -------- ----------- -------- ----------- ---------- -----------
-------- ----------- -------- ----------- -------- ----------- ---------- -----------
</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 nine months ended
September 30, 1996 and 1995, respectively.
<TABLE>
<CAPTION>
For the nine months ended For the nine months ended
September 30, 1996 September 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 $ 10,425 $(33,063) $ (22,638) $ 402,630 $ (149,105) $ 253,525
Currencies (85,875) 48,425 (37,450) 435,388 -- 435,388
Other -- (825) (825) (205,385) -- (205,385)
Foreign exchanges
Financial (645,061) 338,911 (306,150) 3,381,004 (64,746) 3,316,258
Other -- -- -- 19,524 -- 19,524
-------------- -------------- --------- -------------- -------------- -----------
$ (720,511) $353,448 $(367,063) $4,033,161 $ (213,851) $ 3,819,310
-------------- -------------- --------- -------------- -------------- -----------
-------------- -------------- --------- -------------- -------------- -----------
</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 September 30, 1996 and 1995, respectively.
<TABLE>
<CAPTION>
For the three months ended For the three months ended
September 30, 1996 September 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 $ (20,156) $ 2,250 $ (17,906) $ (65,706) $(52,275) $(117,981)
Currencies (117,046) 49,610 (67,436) 337,925 3,238 341,163
Other -- (825) (825) (66,170) (14,700) (80,870)
Foreign exchanges
Financial 238,234 909,525 1,147,759 (203,462) 79,524 (123,938)
-------------- -------------- ---------- -------------- -------------- ---------
$ 101,032 $960,560 $1,061,592 $ 2,587 $ 15,787 $ 18,374
-------------- -------------- ---------- -------------- -------------- ---------
-------------- -------------- ---------- -------------- -------------- ---------
</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 September 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 nine and three months ended September
30, 1996 were $2,568,608 and $1,168,256, respectively. Redemptions by the
General Partner for the nine and three months ended September 30, 1996 were
$96,902 and $11,740, respectively. Redemptions recorded for the period from
August 2, 1993 (commencement of operations) through September 30, 1996 were
$9,584,098 for limited partners and $96,902 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 September 30, 1996 was $83.86, a decrease
of 6.79% from the December 31, 1995 net asset value per Unit of $89.97.
The Partnership's performance was relatively flat in the month of July.
Profits in the financials sector were offset by losses in the currencies
sectors. World bond prices traded higher in July, affected by a combination of
lower U.S. interest rates, moderate inflation and slow economic growth. Gains
were made in long Australian, British and German bond positions. Australian bond
prices continued an upward movement on an expected interest rate cut and an
increased unemployment report. British bond prices were lifted on slow growth in
both GDP and manufacturing output. German bond prices moved upward as a lower
than expected German producer price index figure was released. In foreign
exchange markets, the U.S. dollar
9
<PAGE>
<PAGE>
lost ground against the German mark and the Japanese yen as the prospect for a
hike in U.S. interest rates seemed more unlikely. Short Japanese yen and Swiss
franc positions were unprofitable.
The Partnership's performance was relatively flat in the month of August.
Profits in the financials sector offset losses in the currencies and stock
indices sectors. In the financials sector, global bond prices traded higher due
to a combination of central bank interest rate cuts and a bullish U.S.
employment report. In Europe, bond prices rallied on a cut in the German repo
rate by the Bundesbank. In a surprise move, the Reserve Bank of Australia cut
the discount rate which caused a strong rally in Australian bond prices,
benefiting long Australian bond positions. In Japan, bond prices rallied on the
results of the Bank of Japan's Tankan survey. Business confidence was weaker
than expected thereby reducing the possibility of an interest rate increase. The
Partnership's long Japanese government bond positions produced profits as yields
drifted lower. In addition, as the Nikkei Dow traded lower, Japanese investors
continued to buy Japanese government bonds as a safe investment. In the
currencies sector, positions in the British pound, Japanese yen and cross rates
were unprofitable for the Partnership.
The Partnership's performance was positive in the month of September. Profits
were taken in the financials, currencies and stock indices sectors. In the
financials sector, gains were made in long Australian, Canadian, German, Italian
and Japanese bond positions. Global bond prices continued to trend higher in
September. In Europe, long positions in German, French, Italian and Spanish
bonds benefited from no change in the U.S. Federal Reserve's interest rate
policy. The anticipation of the passage of a restrictive Italian budget helped
push Italian bond prices higher as Italy is making a strong effort to meet the
requirements for a single European currency. Long positions in Canadian and
Australian bonds profited as prices moved higher off of the U.S. employment
report and no change in the U.S. Federal Reserve's interest rate policy.
Japanese bond prices traded higher on the continued perception of no growth in
the Japanese economy, thereby benefiting long positions in Japanese bonds. In
the currencies sector, German mark, Australian dollar and Japanese yen positions
were profitable as the dollar rose in value during the month.
Interest income on U.S. Treasury bills decreased by approximately $138,000
and $72,000 for the nine and three months ended September 30, 1996 compared to
the corresponding periods in 1995 primarily due to lower interest rates in 1996
and less funds available for investment in U.S. Treasury bills during 1996 due
to redemptions.
Other interest income consists of interest earned since February 1995 on
equity balances held at PSI. Other interest income for the nine months ended
September 30, 1996 increased by approximately $13,000 but decreased by $1,000
for the three months ended September 30, 1996 as compared to the corresponding
periods in 1995 primarily due to fluctuations in the equity balances during the
respective periods.
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
and redemptions. Commissions decreased by approximately $157,000 and $89,000 for
the nine and three months ended September 30, 1996 compared to the corresponding
periods in 1995 primarily due to losses incurred during the first half of 1996
as well as redemptions.
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 $28,000 and $4,000
for the nine and three months ended September 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
performance and redemptions. Management fees decreased approximately $46,000 and
$20,000 for the nine and three months ended September 30, 1996 compared to the
corresponding periods in 1995 primarily due to losses incurred during the first
half of 1996 as well as redemptions.
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 nine months ended September 30, 1995.
10
<PAGE>
General and administrative expenses decreased by approximately $29,000 and
$3,000 for the nine and three months ended September 30, 1996 as compared to the
same periods in 1995. These expenses include reimbursements of costs 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--None
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: November 13, 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> Sep-30-1996
<PERIOD-TYPE> 9-Mos
<CASH> 1,470,326
<SECURITIES> 8,119,463
<RECEIVABLES> 6,441
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 9,596,230
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 9,596,230
<CURRENT-LIABILITIES> 1,273,821
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 8,322,409
<TOTAL-LIABILITY-AND-EQUITY> 9,596,230
<SALES> 0
<TOTAL-REVENUES> 18,987
<CGS> 0
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<NET-INCOME> (911,209)
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</TABLE>
