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                SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 15122 / October 15, 1996

SECURITIES AND EXCHANGE COMMISSION v. KENT A. AHRENS, Civil
Action No. 1 96 CV 1854 (J. Rambo) (M.D.Pa. October 10, 1996)

     On October 15, 1996, the Commission filed an action against
Kent Ahrens, a trader at First Capital Strategists, an investment
adviser located in York, Pennsylvania.  The complaint alleged
that, from 1992 through 1995, Ahrens knowingly engaged in
unauthorized trading that resulted in a loss of $137.6 million to
First Capital's client, The Common Fund.  The Common Fund, a
Westport Connecticut firm, manages investment money for
approximately 1,400 colleges and universities in the United
States.

     According to the complaint, Ahrens was primarily responsible
for First Capital's equity index arbitrage program, a low-risk
market-neutral strategy in which options or futures contracts are
bought or sold and hedged with an offsetting position in stocks.
In its complaint, the Commission alleged that, sometime in 1992,
Ahrens incurred a loss in The Common Fund's account and, without
disclosing the loss to First Capital or The Common Fund,
attempted to recoup the loss by putting on uncovered short
positions in the hopes the stock market would decrease in value.
From 1992 through June 1995, the stock market average continued
to rise, pushing The Common Fund's ultimate loss to $137.6
million, according to the complaint.  Ahrens allegedly concealed
his unauthorized trading and the massive losses from First
Capital and The Common Fund.  As a result of his alleged
fraudulent activity, Ahrens earned approximately $455,465 in
commissions he was not entitled to receive.

     Kent Ahrens consented, without admitting or denying the
allegations, to the entry of a permanent injunction against
violations of Section 10(b) of the Securities Exchange Act of
1934 and Rule 10b-5 thereunder, and Sections 206(1) and (2) of
the Investment Advisers Act of 1940.  Ahrens also consented to
disgorge $182,000 of the $455,465 he earned in commissions on the
unauthorized trading.  Pursuant to the settlement, the Court
would waive some of Ahrens' disgorgement obligations and is not
ordering Ahrens to pay a civil penalty based upon his
representations to the Commission concerning his financial
condition.  As part of his settlement, Ahrens has agreed to
consent to the entry of an order permanently barring him from