<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, 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>
September 30, December 31,
1998 1997
<S> <C> <C>
- ----------------------------------------------------------------------------------------------------
ASSETS
Equity in commodity trading accounts:
Cash $ 1,540,687 $1,811,247
U.S. Treasury bills, at amortized cost 4,525,723 5,035,022
Net unrealized gain on open commodity positions 383,605 131,368
------------- ------------
Net equity 6,450,015 6,977,637
Organizational costs, net -- 1,341
------------- ------------
Total assets $ 6,450,015 $6,978,978
------------- ------------
------------- ------------
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable $ 181,788 $ 597,404
Accrued expenses 83,214 73,381
Incentive fees payable 76,578 --
Management fees payable 10,594 11,503
Options, at market 10,444 3,725
------------- ------------
Total liabilities 362,618 686,013
------------- ------------
Commitments
Partners' capital
Limited partners (54,222.831 and 65,699.974 units outstanding) 6,026,380 6,230,001
General partner (549 and 664 units outstanding) 61,017 62,964
------------- ------------
Total partners' capital 6,087,397 6,292,965
------------- ------------
Total liabilities and partners' capital $ 6,450,015 $6,978,978
------------- ------------
------------- ------------
Net asset value per limited and general partnership unit ('Units') $ 111.14 $ 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>
Nine Months Ended Three Months Ended
September 30, September 30,
---------------------------- ------------------------
1998 1997 1998 1997
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------
REVENUES
Net realized gain on commodity
transactions $ 1,135,437 $ 751,706 $ 423,311 $ 978,188
Change in net unrealized gain/loss on open
commodity positions 255,612 (87,118) 512,367 (221,870)
Interest income 239,588 357,851 74,777 157,508
------------- ---------- ---------- ---------
1,630,637 1,022,439 1,010,455 913,826
------------- ---------- ---------- ---------
EXPENSES
Commissions 364,428 483,371 112,273 154,880
Other transaction fees 9,728 46,920 2,731 11,786
Management fees 93,041 121,462 29,539 39,915
Incentive fees 76,578 19,952 76,578 19,952
General and administrative 123,935 115,711 41,617 27,875
Amortization of organizational costs 1,156 2,275 -- 702
------------- ---------- ---------- ---------
668,866 789,691 262,738 255,110
------------- ---------- ---------- ---------
Net income $ 961,771 $ 232,748 $ 747,717 $ 658,716
------------- ---------- ---------- ---------
------------- ---------- ---------- ---------
ALLOCATION OF NET INCOME
Limited partners $ 952,141 $ 230,379 $ 740,228 $ 652,084
------------- ---------- ---------- ---------
------------- ---------- ---------- ---------
General partner $ 9,630 $ 2,369 $ 7,489 $ 6,632
------------- ---------- ---------- ---------
------------- ---------- ---------- ---------
NET INCOME PER WEIGHTED AVERAGE LIMITED
AND GENERAL PARTNERSHIP UNIT
Net income per weighted average limited
and general partnership unit $ 15.54 $ 2.70 $ 13.26 $ 8.23
------------- ---------- ---------- ---------
------------- ---------- ---------- ---------
Weighted average number of limited and
general partnership units outstanding 61,898 86,234 56,407 80,055
------------- ---------- ---------- ---------
------------- ---------- ---------- ---------
- -------------------------------------------------------------------------------------------------------
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 952,141 9,630 961,771
Redemptions (11,592.143) (1,155,762) (11,577) (1,167,339)
----------- ----------- -------- -----------
Partners' capital--September 30, 1998 54,771.831 $ 6,026,380 $ 61,017 $ 6,087,397
----------- ----------- -------- -----------
----------- ----------- -------- -----------
- -------------------------------------------------------------------------------------------------------
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, 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 September 30, 1998 and the results of its operations for
the nine and three months ended September 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 nine and three months ended September 30, 1998 were:
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
--------------------- ---------------------
1998 1997 1998 1997
<S> <C> <C> <C> <C>
-------------------------------------------------------------------------------------
Commissions $ 364,428 $ 483,371 $ 112,273 $ 154,880
General and administrative 68,318 63,311 23,450 18,474
--------- --------- --------- ---------
$ 432,746 $ 546,682 $ 135,723 $ 173,354
--------- --------- --------- ---------
--------- --------- --------- ---------
</TABLE>
Expenses payable to the General Partner and its affiliates (which are
included in accrued expenses) as of September 30, 1998 and December 31, 1997
were $39,143 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 September 30, 1998, a non-U.S. affiliate of the General Partner owns
142.021 limited partnership units of the Partnership.
5
<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
September 30, 1998 and December 31, 1997, such segregated assets totalled
$3,974,772 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 $2,574,533 and $1,615,755 at September 30, 1998
and December 31, 1997, respectively. There are no segregation requirements for
assets related to forward trading.
As of September 30, 1998, the Partnership's open futures, forward and options
contracts mature within one year.
At September 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 $60,425,628 $31,963,286
Commitments to sell 7,484 3,430,271
Currency Futures and Options Contracts:
Commitments to purchase 4,221,531 1,371,557
Commitments to sell 1,108,837 7,726,254
Currency Forward Contracts:
Commitments to purchase 227,429 173,921
Commitments to sell 117,695 8,190,630
Other Futures Contracts:
Commitments to purchase 141,195 48,400
Commitments to sell 1,681,095 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 September 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 $112,306 $ -- $ 4,438 $ --
Currencies 50,090 13,808 77,423 20,787
Other 12,313 29,960 107,158 --
Foreign exchanges
Financial 503,890 297 33,537 2,970
Other -- 141,195 6,400 48,400
Forward Contracts:
Currencies 117,695 227,429 170,173 195,604
Options Contracts:
Domestic exchanges
Financial -- 7,688 -- 3,725
Currencies -- 2,500 -- --
Foreign exchanges
Financial -- 256 -- --
-------- ----------- -------- -----------
$796,294 $ 423,133 $399,129 $ 271,486
-------- ----------- -------- -----------
-------- ----------- -------- -----------
</TABLE>
The following table presents the average fair value of futures, forward and
options contracts during the nine and three months ended September 30, 1998 and
1997, respectively.
<TABLE>
<CAPTION>
For the nine months ended For the three months ended
September 30, 1998 September 30, 1997 September 30, 1998 September 30, 1997
-------------------------------------------------- --------------------------------------------------
Assets Liabilities Assets Liabilities Assets Liabilities Assets Liabilities
-------- ----------- -------- ----------- -------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Futures Contracts:
Domestic exchanges
Financial $ 39,210 $ 1,960 $ 20,679 $ 519 $ 78,330 $ 519 $ 23,039 $ 258
Currencies 99,011 10,897 106,905 6,607 92,726 13,177 83,412 4,812
Other 43,308 4,860 -- 501 41,092 7,540 -- --
Foreign exchanges
Financial 193,832 14,332 206,018 39,768 233,329 12,268 266,959 26,708
Other 9,994 36,905 -- -- -- 78,573 -- --
Forward Contracts:
Currencies 126,588 209,501 -- -- 197,129 240,777 -- --
Options Contracts:
Domestic exchanges
Financial -- 18,300 -- 27,463 -- 32,322 -- 33,931
Currencies -- 3,129 2,880 8,221 -- 2,994 7,200 4,650
Foreign exchanges
Financial -- 26 4,923 3,251 -- 64 708 102
-------- ----------- -------- ----------- -------- ----------- -------- -----------
$511,943 $ 299,910 $341,405 $86,330 $642,606 $ 388,234 $381,318 $70,461
-------- ----------- -------- ----------- -------- ----------- -------- -----------
-------- ----------- -------- ----------- -------- ----------- -------- -----------
</TABLE>
7
<PAGE>
The following table presents trading revenues from futures, forward and
options contracts during the nine and three months ended September 30, 1998 and
1997, respectively.
<TABLE>
<CAPTION>
For the nine months ended For the three months ended
September 30, September 30,
-------------------------- --------------------------------
1998 1997 1998 1997
---------- ----------- ---------------- -----------
<S> <C> <C> <C> <C>
Futures Contracts:
Domestic exchanges
Financial $ 181,469 $ 172,881 $ 230,876 $ 24,343
Currencies 63,908 47,295 55,055 56,777
Other 90,766 1,783 29,059 --
Foreign exchanges
Financial 1,446,352 382,268 748,972 619,451
Other (60,861) -- (141,595) --
Forward Contracts:
Currencies (347,540) -- 61,506 --
Options Contracts:
Domestic exchanges
Financial 31,475 61,943 (31,774) 58,096
Currencies (14,849) 30,544 (16,750) (1,204)
Foreign exchanges
Financial 329 (32,126) 329 (1,145)
---------- ----------- ---------------- -----------
$1,391,049 $ 664,588 $ 935,678 $ 756,318
---------- ----------- ---------------- -----------
---------- ----------- ---------------- -----------
</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 September 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 72% 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 nine and three months ended September
30, 1998 were $1,155,762 and $180,010, respectively. Redemptions by General
Partner for the nine and three months ended September 30, 1998 were $11,577 and
$1,778, respectively. Redemptions recorded for the period from August 2, 1993
(commencement of operations) through September 30, 1998 were $13,846,788 for
limited partners and $140,020 for the General Partner. Future redemptions will
impact the amount of funds available for investments in commodity contracts in
subsequent periods.
Year 2000 Risk
Investment funds, like financial and business organizations and individuals
around the world, depend on the smooth functioning of computer systems. The year
2000, however, holds the potential for a significant disruption in the operation
of these systems. Many computer systems in use today cannot distinguish the year
2000 from the year 1900 because of the way in which dates are encoded. This is
commonly known as the 'Year 2000 Problem.' The Partnership could be adversely
affected if computer systems used by it or any third party with whom it has a
material relationship do not properly perform date comparisons and calculations
concerning dates on or after January 1, 2000, which in turn could have a
negative impact on the handling or determination of trades and prices and the
services provided to the Partnership.
The Partnership has engaged third parties to perform primarily all of the
services it needs. Accordingly, the Partnership's Year 2000 problems, if any,
are not its own but those that center around the ability of the General Partner,
Prudential Securities Incorporated, its trading managers and any other third
party with whom the Partnership has a material relationship (individually, a
'Service Provider,' and collectively, the 'Service Providers') to address and
correct problems that may cause their systems not to function as intended as a
result of the Year 2000 Problem.
9
<PAGE>
The Partnership has received assurances from its General Partner and from
Prudential Securities Incorporated that they anticipate being able to continue
their operations without any material adverse impact from the Year 2000 Problem.
Although other Service Providers, such as the Partnership's trading managers,
have not made similar representations to the Partnership, the Partnership has no
reason to believe that these Service Providers will not take steps necessary to
avoid any material adverse impact on the Partnership, though there can be no
assurance that this will be the case. The costs or consequences of incomplete or
untimely resolution of the Year 2000 Problem by the Service Providers, or by
governments, exchanges, clearing houses, regulators, banks and other third
parties, are unknown to the Partnership at this time, but could have a material
adverse impact on the operations of the Partnership. The General Partner will
promptly notify the Partnership's limited partners in the event it determines
that the Year 2000 Problem will have a material adverse impact on the
Partnership's operations.
The Partnership has considered various alternatives as a contingency plan. If
the Year 2000 Problems are systemic, for example, the federal government, the
banking system, exchanges or utilities are affected materially, there may be no
adequate contingency plan for the Partnership to follow other than to suspend
operations. If the Year 2000 Problems are related to one or more of the other
Service Providers selected by the Partnership, the Partnership believes that
each such Service Provider is prepared to address any Year 2000 Problems which
arise that could have a material adverse impact on the Partnership's operations.
Results of Operations
The net asset value per Unit as of September 30, 1998 was $111.14, an
increase of 17.20% from the December 31, 1997 net asset value per Unit of
$94.83. Additionally, the net asset value per Unit increased 13.54% during the
quarter ended September 30, 1998.
Trading in the third quarter resulted in gains. The financial, currency,
energy and grain sectors were profitable, while positions in the metal and index
sectors resulted in losses. Economic instability in the Far East and Russia held
much of the world's attention. Rising concerns regarding the soundness of
Japanese banks and the devaluation of the Russian ruble brought investor fears
that these issues would affect the world economy negatively. This caused a
flight out of the global stock markets and into the safe haven of global
government bonds. This 'flight-to-quality' drove bond prices higher around the
globe. The Partnership's long positions in U.S., German and Japanese bonds were
profitable. In the currency sector, the Canadian dollar continued its long-time
decline versus the U.S. dollar resulting in profits for the Partnership's short
positions. Additionally, gains were made in Norwegian krona positions. The
Partnership incurred losses during the quarter, particularly in the metal
sector. Positions in base metals were unprofitable as the price of aluminum and
copper failed to find significant direction. Precious metal exposure also led to
losses as gold prices reacted to fluctuating fears regarding the world's stock
markets.
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 $118,000 and $83,000 for the nine and three months ended September
30, 1998 compared to the corresponding periods in 1997. Approximately $54,000 of
the decline in interest income relates to an interest income adjustment recorded
during the three months ended September 30, 1997. Additionally, decreases in
interest income also resulted from a decline in interest rates during 1998 and
from 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 $119,000 and $43,000 for
the nine and three months ended September 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 $37,000 and $9,000
for the nine and three months ended September 30, 1998 as compared to the
corresponding periods in 1997. These decreases were 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.
10
<PAGE>
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 $28,000 and
$10,000 for the nine and three months ended September 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. Eagle Trading
Systems, Inc. generated sufficient trading profits to earn approximately $77,000
in incentive fees during the three months ended September 30, 1998. Welton
Investment Corporation generated sufficient trading profits to earn
approximately $20,000 in incentive fees during the three months ended September
30, 1997.
General and administrative expenses increased by approximately $8,000 and
$14,000 for the nine and three months ended September 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.
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, 1998
----------------------------------------
Steven Carlino
Vice President
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-31-1998
<PERIOD-START> Jan-1-1998
<PERIOD-END> Sep-30-1998
<PERIOD-TYPE> 9-Mos
<CASH> 1,540,687
<SECURITIES> 4,909,328
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 6,450,015
<PP&E> 0
<DEPRECIATION> 0
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0
0
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<TOTAL-LIABILITY-AND-EQUITY> 6,450,015
<SALES> 0
<TOTAL-REVENUES> 1,630,637
<CGS> 0
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<INCOME-TAX> 0
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<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 961,771
<EPS-PRIMARY> 15.54
<EPS-DILUTED> 0
</TABLE>
