<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, 1998
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 of (I.R.S. Employer Identification No.)
incorporation or organization)
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>
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,
1998 1997
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------
ASSETS
Equity in commodity trading accounts:
Cash $1,793,171 $1,811,247
U.S. Treasury bills, at amortized cost 4,652,127 5,035,022
Net unrealized (loss) gain on open commodity positions (141,445) 131,368
---------- ------------
Net equity 6,303,853 6,977,637
Organizational costs, net 151 1,341
---------- ------------
Total assets $6,304,004 $6,978,978
---------- ------------
---------- ------------
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable $ 637,696 $ 597,404
Accrued expenses 90,345 73,381
Management fees payable 10,282 11,503
Options, at market 44,213 3,725
---------- ------------
Total liabilities 782,536 686,013
---------- ------------
Commitments
Partners' capital
Limited partners (55,842.495 and 65,699.974 units outstanding) 5,466,162 6,230,001
General partner (565 and 664 units outstanding) 55,306 62,964
---------- ------------
Total partners' capital 5,521,468 6,292,965
---------- ------------
Total liabilities and partners' capital $6,304,004 $6,978,978
---------- ------------
---------- ------------
Net asset value per limited and general partnership unit ('Units') $ 97.89 $ 94.83
---------- ------------
---------- ------------
- ---------------------------------------------------------------------------------------------------
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,
------------------------ ----------------------
1998 1997 1998 1997
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
REVENUES
Net realized gain (loss) on commodity
transactions $ 712,126 $(226,482) $ 278,907 $(12,902)
Change in net unrealized gain/loss on open
commodity positions (256,755) 134,752 (358,188) 311,146
Interest income 164,811 200,343 80,763 100,076
---------- --------- --------- --------
620,182 108,613 1,482 398,320
---------- --------- --------- --------
EXPENSES
Commissions 252,155 328,491 124,734 152,464
Other transaction fees 6,997 35,134 4,418 18,078
Management fees 63,502 81,547 30,903 38,419
General and administrative 82,318 87,836 40,461 44,709
Amortization of organizational costs 1,156 1,573 574 757
---------- --------- --------- --------
406,128 534,581 201,090 254,427
---------- --------- --------- --------
Net income (loss) $ 214,054 $(425,968) $(199,608) $143,893
---------- --------- --------- --------
---------- --------- --------- --------
ALLOCATION OF NET INCOME (LOSS)
Limited partners $ 211,913 $(421,705) $(197,610) $142,453
---------- --------- --------- --------
---------- --------- --------- --------
General partner $ 2,141 $ (4,263) $ (1,998) $ 1,440
---------- --------- --------- --------
---------- --------- --------- --------
NET INCOME (LOSS) PER WEIGHTED AVERAGE LIMITED
AND GENERAL PARTNERSHIP UNIT
Net income (loss) per weighted average limited
and general partnership unit $ 3.31 $ (4.77) $ (3.17) $ 1.67
---------- --------- --------- --------
---------- --------- --------- --------
Weighted average number of limited and general
partnership units outstanding 64,643 89,324 62,922 86,113
---------- --------- --------- --------
---------- --------- --------- --------
- ------------------------------------------------------------------------------------------------------
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, 1997 66,363.974 $6,230,001 $ 62,964 $6,292,965
Net income -- 211,913 2,141 214,054
Redemptions (9,956.479) (975,752) (9,799) (985,551)
---------- ---------- -------- ----------
Partners' capital--June 30, 1998 56,407.495 $5,466,162 $ 55,306 $5,521,468
---------- ---------- -------- ----------
---------- ---------- -------- ----------
- -----------------------------------------------------------------------------------------------------
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, 1998
(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, 1998 and the results of its operations for the six
and three months ended June 30, 1998. 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, 1997.
Certain balances from the prior year have been reclassified to conform with
the 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 services
and other administrative services. The costs incurred for these services during
the six and three months ended June 30, 1998 were:
<TABLE>
<CAPTION>
Six Months Ended Three Months Ended
June 30, June 30,
--------------------- ---------------------
1998 1997 1998 1997
<S> <C> <C> <C> <C>
-------------------------------------------------------------------------------------
Commissions $ 252,155 $ 328,491 $ 124,734 $ 152,464
General and administrative 44,868 44,837 21,956 20,828
--------- --------- --------- ---------
$ 297,023 $ 373,328 $ 146,690 $ 173,292
--------- --------- --------- ---------
--------- --------- --------- ---------
</TABLE>
Expenses payable to the General Partner and its affiliates (which are
included in accrued expenses) as of June 30, 1998 and December 31, 1997 were
$58,009 and $19,078, 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. Except for the portion of assets that
is deposited as margin to maintain forward currency contract positions as
further discussed below, the Partnership's assets are maintained either with PSI
or, for margin purposes, with the various exchanges on which the Partnership is
permitted to trade.
The Partnership, acting through its trading managers, executes
over-the-counter, spot, forward and/or option foreign exchange transactions
with PSI. PSI then engages in back-to-back trading with an affiliate,
Prudential-Bache Global Markets Inc. ('PBGM'). PBGM attempts to earn a profit
on such transactions. PBGM keeps its prices on foreign currency competitive
with other interbank trading desks. All over-the-counter currency transactions
are conducted between PSI and the Partnership pursuant to a line of credit. PSI
may require that collateral be posted against the marked-to-market position of
the Partnership.
As of June 30, 1998, a non-U.S. affiliate of the General Partner owns 299.772
limited partnership units of the Partnership.
5
<PAGE>
<PAGE>
C. Credit and Market Risk
Since the Partnership's business is to trade futures, forward (including
foreign exchange transactions) 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. The Partnership presents 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, 1998 and December 31, 1997, such segregated assets totalled $4,418,268
and $5,383,588, 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 $2,109,886 and $1,615,755 at June 30, 1998 and December
31, 1997, respectively. There are no segregation requirements for assets related
to forward trading.
As of June 30, 1998, the Partnership's open futures, forward and options
contracts mature within one year.
At June 30, 1998 and December 31, 1997, gross contract amounts of open
futures, forward and options contracts were:
<TABLE>
<CAPTION>
1998 1997
------------- -----------------
<S> <C> <C>
Financial Futures and Options Contracts:
Commitments to purchase $ 142,248,930 $ 31,963,286
Commitments to sell 3,823,362 3,430,271
Currency Futures and Options Contracts:
Commitments to purchase 3,182,128 1,371,557
Commitments to sell 5,395,000 7,726,254
Currency Forward Contracts:
Commitments to purchase 3,588,887 173,921
Commitments to sell 6,135,231 8,190,630
Other Futures Contracts:
Commitments to purchase -- 48,400
Commitments to sell -- 3,413,653
</TABLE>
6
<PAGE>
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, forward or options 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, forward and options contracts to be the net unrealized gain or loss on
the contracts (plus premiums on options). 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, 1998 and December 31, 1997, the fair value of open futures,
forward and options contracts were:
<TABLE>
<CAPTION>
1998 1997
------------------------ ------------------------
Assets Liabilities Assets Liabilities
-------- ----------- -------- -----------
<S> <C> <C> <C> <C>
Futures Contracts:
Domestic exchanges
Financial $ 51,100 $ 1,700 $ 4,438 $ --
Currencies 76,049 16,692 77,423 20,787
Other -- -- 107,158 --
Foreign exchanges
Financial 51,289 32,977 33,537 2,970
Other -- -- 6,400 48,400
Forward Contracts:
Currencies 102,891 371,405 170,173 195,604
Options Contracts:
Domestic exchanges
Financial -- 39,988 -- 3,725
Currencies -- 4,225 -- --
-------- ----------- -------- -----------
$281,329 $ 466,987 $399,129 $ 271,486
-------- ----------- -------- -----------
-------- ----------- -------- -----------
</TABLE>
The following table presents the average fair value of futures, forward and
options contracts during the six and three months ended June 30, 1998 and 1997,
respectively.
<TABLE>
<CAPTION>
For the six months ended For the three months ended
June 30, 1998 June 30, 1997 June 30, 1998 June 30, 1997
--------------------------------------------------------------------------------------------------------
Assets Liabilities Assets Liabilities Assets Liabilities Assets Liabilities
-------- ----------- -------- ----------- -------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Futures Contracts:
Domestic exchanges
Financial $ 18,554 $ 2,746 $ 17,527 $ 742 $ 17,603 $ 3,572 $ 25,109 $ 258
Currencies 99,323 10,422 113,722 7,733 125,029 9,840 40,661 11,193
Other 38,387 2,633 -- 716 31,873 2,900 -- --
Foreign exchanges
Financial 150,899 18,175 183,302 47,151 129,688 22,464 184,456 31,457
Other 14,277 7,822 -- -- 4,573 50 -- --
Forward Contracts:
Currencies 82,893 214,759 -- -- 73,925 282,716 -- --
Options Contracts:
Domestic exchanges
Financial -- 13,386 -- 23,876 -- 21,441 -- 32,887
Currencies -- 3,363 1,334 10,902 -- 1,541 2,334 19,078
Foreign exchanges
Financial -- -- 7,033 4,586 -- -- 12,308 1,144
-------- ----------- -------- ----------- -------- ----------- -------- -----------
$404,333 $ 273,306 $322,918 $95,706 $382,691 $ 344,524 $264,868 $96,017
-------- ----------- -------- ----------- -------- ----------- -------- -----------
-------- ----------- -------- ----------- -------- ----------- -------- -----------
</TABLE>
7
<PAGE>
The following table presents trading revenues from futures, forward and
options contracts during the six and three months ended June 30, 1998 and 1997,
respectively.
<TABLE>
<CAPTION>
For the six months ended For the three months ended
June 30, June 30,
------------------------------- -------------------------------
1998 1997 1998 1997
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Futures Contracts:
Domestic exchanges
Financial $(49,407) $ 148,538 $(15,475) $ 136,319
Currencies 8,853 (9,482) (13,395) 36,679
Other 61,707 1,783 (13,856) --
Foreign exchanges
Financial 697,380 (237,183) 198,791 203,397
Other 80,734 -- 42,063 --
Forward Contracts:
Currencies (409,046) -- (306,889) --
Options Contracts:
Domestic exchanges
Financial 63,249 3,847 35,230 (6,298)
Currencies 1,901 31,748 (5,750) 29,212
Foreign exchanges
Financial -- (30,981) -- (101,065)
------------- ------------- ------------- -------------
$ 455,371 $(91,730) $(79,281) $ 298,244
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</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 net
proceeds of $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, 1998, 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 76% 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.
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.
Redemptions by limited partners for the six and three months ended June 30,
1998 were $975,752 and $631,333, respectively. Redemptions by General Partner
for the six and three months ended June 30, 1998 were $9,799 and $6,363,
respectively. Redemptions recorded for the period from August 2, 1993
(commencement of operations) through June 30, 1998 were $13,666,778 for limited
partners and $138,242 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, 1998 was $97.89, an increase of
3.23% from the December 31, 1997 net asset value per Unit of $94.83.
Trading for the month of April resulted in losses. The currency, index and
financial sectors were unprofitable for the Partnership while positions in the
grain and metal sectors provided slight gains. Currency sector positions were
hurt considerably when the Federal Reserve failed to raise rates, causing the
U.S. dollar to weaken against foreign currencies. Additionally, massive
intervention by the Bank of Japan in the Japanese economy caused further U.S.
dollar devaluation resulting in losses for the Partnership. Deutsche mark
positions were unprofitable as rumors that the German government would raise tax
rates drove the mark higher versus the U.S. dollar. Swiss franc positions lost
value as well. In the index sector, the Partnership incurred losses,
particularly in S&P 500 positions, as it traded within a narrow trading range
throughout the month. In addition, Italian FIB 30 and Spanish MEF IBEX positions
were also unprofitable. Positions in European bonds, particularly the German,
Eurodollar, French notional and pibor bonds, were unprofitable as yields rose
throughout the month and prices fell. Slightly mitigating the Partnership's
losses were gains generated in corn and soybeans in the grain sector and
aluminum positions in the metal sector.
Trading for the month of May resulted in gains. The financial, currency,
metal, index and grain sectors were profitable for the Partnership, while
positions in the energy sector resulted in slight losses. Long positions held by
the Partnership in the Japanese Government bond (JGB) resulted in profits. The
JGB
9
<PAGE>
climbed to record highs during the month on investor fears that the current
economic difficulties experienced in Japan may be long term in nature. Positions
in the German bund and Australian ten-year bond were profitable as well. Short
Japanese yen positions in the currency sector also gained as the yen reached
seven-year lows in response to Japanese economic instability. As it became more
apparent that the Bank of Canada was not going to raise interest rates, the
Canadian dollar weakened, resulting in profits for the Partnership. The German
deutsche mark added value as did crossrate positions in Japanese yen/British
pound. In the metal sector, following a weak rally early in the month, the price
of gold continued lower resulting in gains. Aluminum positions were also
profitable. Moving in tandem with many other commodities in the energy sector,
the price of natural gas declined throughout the month, contributing slight
losses to the Partnership.
Trading for June resulted in losses. The currency, grain and energy sectors
were unprofitable, while positions in the index and metal sectors resulted in
slight gains. In the currency sector, rising fears of a collapsing economy in
Russia drove the deutsche mark lower. This was partially due to the significant
number of outstanding German bank loans to Russian businesses. As is typical in
a flight to quality situation, the British pound responded to the devaluation of
the mark by turning stronger versus the U.S. dollar. Both of these market
actions resulted in losses for the Partnership. Grain sector positions lost
value as corn prices rose throughout the month on reports of poor weather
conditions. Additionally, soybean positions were unprofitable for the
Partnership. The Partnership generated small profits in the index sector,
particularly in the S&P 500. The S&P began June trading wildly only to settle
down and trend upwards as month-end approached. Profits were also generated in
the Nasdaq and German DAX. Financial sector positions in German, U.S. and French
bonds were also profitable.
The Partnership earns interest on its investments in U.S. Treasury bills
(approximately 75% of its net assets) and receives an interest credit from PSI
on the remaining 25% of its net assets. Interest income decreased by
approximately $36,000 and $19,000 for the six and three months ended June 30,
1998 compared to the corresponding periods in 1997. These decreases were
primarily the result of redemptions during 1997 and 1998 which reduced the
Partnership's net assets, including its investments in U.S. Treasury bills.
Commissions are calculated on the Partnership's net asset value as of the
first day of each month and, therefore, vary according to trading performance
and redemptions. Commissions decreased by approximately $76,000 and $28,000 for
the six and three months ended June 30, 1998 compared to the corresponding
periods in 1997 primarily due to the effect of 1997 and 1998 redemptions on the
monthly net asset values.
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 $14,000
for the six and three months ended June 30, 1998 as compared to the
corresponding periods in 1997. This decrease was due to a decline in trading
volume resulting from lower average net asset values caused by redemptions. In
addition, the October 1997 replacement of Sjo, Inc. with Eagle Trading Systems,
Inc. as a trading manager to the Partnership led to lower transaction fees as a
result of the different trading strategies executed by the respective trading
managers.
All trading decisions are currently being made by Eagle Trading Systems, Inc.
and Welton Investment 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 $18,000 and
$8,000 for the six and three months ended June 30, 1998 compared to the
corresponding periods in 1997 primarily for the same reasons commissions
decreased as described above.
Incentive fees are based on the New High Net Trading Profits generated by
each Trading Manager, as defined in the Advisory Agreement among the
Partnership, the General Partner and each Trading Manager. No incentive fees
were earned during the six months ended June 30, 1998 and 1997.
General and administrative expenses decreased by approximately $6,000 and
$4,000 for the six and three months ended June 30, 1998 as compared to the same
periods in 1997. 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.
10
<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
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 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, 1998
----------------------------------------
Steven Carlino
Vice President
Chief Accounting Officer for the Registrant
12
<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-31-1998
<PERIOD-START> Jan-1-1998
<PERIOD-END> Jun-30-1998
<PERIOD-TYPE> 6-Mos
<CASH> 1,793,171
<SECURITIES> 4,510,682
<RECEIVABLES> 151
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 6,304,004
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 6,304,004
<CURRENT-LIABILITIES> 782,536
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 5,521,468
<TOTAL-LIABILITY-AND-EQUITY> 6,304,004
<SALES> 0
<TOTAL-REVENUES> 620,182
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 406,128
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 214,054
<EPS-PRIMARY> 3.31
<EPS-DILUTED> 0
</TABLE>
