<PAGE>




                                  Form 10-QSB


            [X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934
               For the Quarterly period ended   March  31, 1998

            [ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
                                 EXCHANGE ACT

            For the transition period from __________ to __________

                        Commission file number  0-28710


                   (Exact name of small business issuer as
                           specified in its charter)
  Performance Asset Management Fund IV, Ltd., A California Limited Partnership

      (State or other jurisdiction                   (IRS Employer
    of incorporation or organization)             Identification No.)
              California                              33-0548134

                   (Address of principal executive offices)
           4100 Newport Place, Suite 400, Newport Beach, California

                          (Issuer's telephone number)
                                (714) 261-2400

      (Former name, former address and former fiscal year, if changed since
                                 last report)

     Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for
such shorter period that the registrant was required to file such report(s),
and (2) has been subject to such filing requirements for the past 90 days.
                                                              Yes [X]   No [ ]

              APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

                  PROCEEDINGS DURING THE PRECEDING FIVE YEARS

     Check whether the registrant filed all documents and reports required to
be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution
of securities under a plan confirmed by court.  Yes [ ]   No [ ].

                     APPLICABLE ONLY TO CORPORATE ISSUERS

     State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date:    [N/A]

    Transitional Small Business Disclosure Format (check one):
                                                Yes [ ]   No [X]   



                                       1
<PAGE>







                  PERFORMANCE ASSET MANAGEMENT FUND IV, LTD.,
                        A CALIFORNIA LIMITED PARTNERSHIP



                             INDEX TO FORM 10-QSB





                                    PART I


          Item 1.   Financial Statements

          Item 2.   Management's Discussion and Analysis or Plan of Operation



                                   PART II


          Item 1.   Legal Proceedings

          Item 2.   Exhibits and Reports

                                                 
                    Signatures





















                                       2
<PAGE>




                  PERFORMANCE ASSET MANAGEMENT FUND IV, LTD.,
                       A CALIFORNIA LIMITED PARTNERSHIP

                                    PART I




     ITEM 1.   FINANCIAL STATEMENTS


     Index to the Financial Statements for the Partnership:

     Balance Sheets as of March 31, 1998 ...................................4
  
     Statements of Operations for the Three Months Ended March 31,
     1998 and March 31, 1997................................................5

     Statements of Cash Flows for the Three Months Ended March 31,
     1998 and March 31, 1997................................................6

     Notes to Financial Statements..........................................7


     The financial statements have been prepared by Performance Asset Management
     Fund IV, Ltd., A California Limited Partnership ("Partnership"), without
     audit, pursuant to the rules and regulations of the Securities and Exchange
     Commission.  Certain information and footnote disclosures normally included
     in financial statements prepared in accordance with generally accepted
     accounting principles have been condensed or omitted pursuant to such rules
     and regulations.  The Partnership believes that the disclosures are
     adequate to make the information presented not misleading when read in
     conjunction with the Partnership's financial statements for the year ended
     December 31, 1997.  The financial information presented reflects all
     adjustments, consisting only of normal recurring adjustments, which are, in
     the opinion of management, necessary for a fair statement of the results
     for the interim periods presented.

















                                       3
<PAGE>
<TABLE>




                  PERFORMANCE ASSET MANAGEMENT FUND IV, LTD.,
                       A CALIFORNIA LIMITED PARTNERSHIP
                                 BALANCE SHEETS

                                 March 31, 1998
                                 --------------

                                     ASSETS


<CAPTION>
                                                                    1998             
                                                                ----------            
 <S>                                                        <C>              
   Cash and equivalents                                         $1,729,906             
   Cash held in trust                                            2,881,391             
   Investments in distressed loan portfolios, net               11,084,878             
   Deposit on distressed loan portfolio acquisition                   -                
   Due from affiliate                                              766,307             
   Other assets                                                    104,977             
   Organization costs, net                                            -            
                                                                ----------            
      Total assets                                             $16,567,459             
                                                                ==========            


                       LIABILITIES AND PARTNERS' CAPITAL

   Accounts  payable                                                $5,350             
   Due to affiliates, net                                        2,404,107             
                                                                ----------            
      Total liabilities                                          2,409,457             


   Commitments and contingencies

   General partner's deficit (no units outstanding)             (1,024,169)            
   Limited partners' capital (12,000 units
    authorized; 11,462 units issued and outstanding
    at March 31, 1998)                                          15,182,171             
                                                                ----------             
      Total liabilities and partners' capital                  $16,567,459             
                                                                ==========            










<FN>
    The accompanying notes are an integral part of the financial statements.



</TABLE>
                                       4
<PAGE>
<TABLE>




                  PERFORMANCE ASSET MANAGEMENT FUND IV, LTD.,
                       A CALIFORNIA LIMITED PARTNERSHIP
                           STATEMENTS OF OPERATIONS

                For the Three Months Ended March 31, 1998 and 1997
                --------------------------------------------------


<CAPTION>
                                                            1998        1997
                                                        ----------   ---------
 <S>                                                <C>            <C>
   Portfolio collections                                $1,061,035    $745,630 
   Less: portfolio basis recovery                        1,018,918     743,735 
                                                        ----------   ---------
      Net investment income                                 42,117       1,895

   Cost of operations:
      Collection expense                                    93,018      37,307 
      Management fee expense                                67,205      57,092 
      Professional fees                                     37,353      92,615 
      Amortization                                            -          1,007 
      General and administrative expense                       372      52,897 
                                                        ----------   ---------
      Total operating expenses                             197,948     240,918
                                                        ----------   ---------
      Loss from operations                                (155,831)   (239,023)

   Other income:
      Interest                                              60,128      27,584 
      Other                                                244,770       7,718
                                                        ----------   ---------
      Net income (loss)                                   $149,067   ($203,721)
                                                        ==========   =========

   Net income (loss) allocable to general partner          $14,907    ($20,372)
                                                        ==========   =========
   Net income (loss) allocable to limited partners        $134,160   ($183,349)
                                                        ==========   =========
   Net income (loss) per limited partnership unit           $11.70     ($16.00)
                                                        ==========   =========













<FN>
The accompanying notes are an integral part of the financial statements. 


</TABLE>

                                       5
<PAGE>
<TABLE>




                  PERFORMANCE ASSET MANAGEMENT FUND IV, LTD.,
                       A CALIFORNIA LIMITED PARTNERSHIP
                           STATEMENTS OF CASH FLOWS

             For the Three Months Ended March 31, 1998 and 1997
             --------------------------------------------------



<CAPTION>
                                                            1998        1997
                                                        ----------   ---------
 <S>                                                   <C>        <C>
   Cash flows from operating activities:
     Net income (loss)                                    $149,067   ($203,721)
     Adjustments to reconcile net income (loss) to
      net cash provided by operating activities:
      Amortization                                            -          1,007 
      Decrease (increase) in assets:
        Due from affiliates                               (534,864)   (561,493)
      Increase (decrease) in liabilities:
        Accounts payable                                   (56,363)        474 
        Due to affiliates                                1,178,535     594,748
                                                        ----------   ---------
   Net cash provided by (used in) operating activities     736,375    (168,985)

   Cash flows provided by (used in) investing
    activities:
     Recovery of portfolio basis                         1,018,918     743,735 
     Cash held in trust                                    (31,393)       -
     Purchase of investments in distressed loan
      portfolios                                        (4,847,880)       -
     Deposit on distressed loan portfolio acquisition    2,858,076        -
                                                        ----------   ---------
   Net cash provided by (used in) investing activities  (1,002,279)    743,735

   Cash flows provided by (used in) financing
    activities:
     Redemption of limited partnership units                  -         (5,000)
     Distributions to partners                                -       (955,231)
                                                        ----------   ---------
   Net cash used in financing activities                      -       (955,231)
                                                        ----------   ---------
   Net (decrease) increase in cash                        (265,904)   (380,481)

   Cash at beginning of period                           1,995,810   2,121,545 
                                                        ----------   ---------
   Cash at end of period                                $1,729,906  $1,741,064 
                                                        ==========   =========






<FN>
   The accompanying notes are an integral part of the financial statements.


</TABLE>
                                       6
<PAGE>





                  PERFORMANCE ASSET MANAGEMENT FUND IV, LTD.,
                       A CALIFORNIA LIMITED PARTNERSHIP

                         Notes to Financial Statements
                         -----------------------------


     Organization and Description of Business
     ----------------------------------------

     Performance Asset Management Fund IV, Ltd., A California Limited
     Partnership ("Partnership"), was formed in October 1992, for the
     purpose of acquiring investments in or direct ownership of distressed
     loan portfolios from financial institutions and other sources.
     Interests in the Partnership were sold in an intrastate offering to
     residents of California pursuant to the provisions of Section 3(A) (11)
     of the Securities Act of 1933; however, the Partnership did not begin its
     primary operations until March 1993.  The General Partner is Performance
     Development, Inc., a California corporation ("General Partner").

     The Partnership terminates at December 31, 2005.  At that time, the
     Partnership will distribute any remaining cash after payment of
     Partnership obligations following the sale or collection of all assets.

     Profits, losses, and cash distributions are allocated 90% to the limited
     partners and 10% to the General Partner until such time as the limited
     partners have received cash equal to 100% of their contributions to the
     capital of the Partnership plus an amount equal to 6% per annum of the
     original limited partner capitalization yet to be returned.  Thereafter,
     Partnership profits, losses, and cash distributions will be allocated 70%
     to the limited partners and 30% to the General Partner.

     Cash and Equivalents
     --------------------

     The Partnership defines cash equivalents as all highly liquid investments
     with an original maturity of three months or less.  The Partnership
     maintains cash balances at one bank in accounts which, at times, may
     exceed federally insured limits.  The Partnership uses a cash management
     system whereby idle cash balances are transferred daily into a master
     account and invested in high quality, short-term securities that do not
     enjoy the benefit of the federal insurance.  The General Partner believes
     that these cash balances are not subject to any significant credit risk due
     to the nature of the investments and the strength of the bank and has not
     experienced any losses with cash and equivalent investments.  The Partner-
     ship received interest income from these investments of $60,128 and $27,584
     for the three months ended March 31, 1998 and March 31, 1997, respectively.







                                       7
<PAGE>



     Cash Held in Trust
     ------------------

     The General Partner anticipates that the Partnership and Performance Asset
     Management, Ltd., A California Limited Partnership; Performance Asset
     Management Fund II, Ltd. A California Limited Partnership; Performance
     Asset Management III, Ltd., A California Limited Partnership; and
     Performance Asset Management Fund V, Ltd. A California Limited Partnership
     ("PAM Funds") may, in the future, be reorganized and merged into
     Performance Asset Management Company, a Delaware Corporation ("PAMCO")
     ("Rollup").  In an effort to accomplish the Rollup, the General Partner,
     on behalf of the Partnership and the PAM Funds, entered into an agreement
     on December 12, 1995, with the State of California Department of
     Corporations, pursuant to the provisions of which the Performance Asset
     Management Fund Trust ("Trust") was created.  Certain funds of the Partner-
     ship are held by the Trust and these funds held in trust are subject to the
     terms of the Trust Agreement.  The Trust was the recipient of those funds
     resulting from a settlement of certain then pending litigation between the
     Partnership and its affiliates and West Capital Financial Services Corp.
     ("WCFSC") and its affiliates.  The trust fund balance, until termination,
     must exceed $5,000,000 which is comprised of funds from the partnership
     and the PAM Funds.  The Trust will terminate and the trustee will distri-
     bute all of the remaining funds held by the trustee on August 18, 1998 if
     the Rollup is not completed by such date.  The Partnership's share of the
     Trust's funds at March 31, 1998 and December 31, 1997 was $2,881,391 and
     $2,849,998.
	

     Investments in Distressed Loan Portfolios and Revenue Recognition
     -----------------------------------------------------------------

     Investments in distressed loan portfolios are carried at the lower of cost
     or estimated net realizable value.  Amounts collected are treated as a
     reduction to the carrying basis of the related investments on an individual
     portfolio basis and are reported in the Statement of Operations as
     portfolio basis recovery. Under the cost recovery method of revenue
     recognition used by the Partnership, net investment income is not
     recognized until 100% recovery of the carrying value of the investment in
     each portfolio occurs.  Estimated net realizable value represents the
     General Partner's estimates, based on its present plans and intentions, of
     the present value of future collections.  Due to the distressed nature of
     these investments, no interest is earned on outstanding balances, and
     there is no assurance that the unpaid principal balances of these invest-
     ments will ultimately be collected.  Any adjustments reducing the carrying
     value of the individual portfolios are recorded in the results of opera-
     tions as a general and administrative expense.
	
     Organization Costs, Net
     -----------------------

     Organization costs include legal and other professional fees incurred
     related to the organization of the Partnership.  These costs are
     capitalized and amortized using the straight-line method over five
     years.  Organization costs were fully amortized at December 31, 1997.



                                       8
<PAGE>


     Professional Expenses
     ---------------------

     Professional expenses are incurred in relation to ongoing accounting and
     legal assistance.

     Income Taxes
     ------------

     No provision for income taxes has been made in the financial statements,
     except for the Partnership's minimum state franchise tax liability of
     $800.  All partners report individually on their share of the Partner-
     ship's operating results.

     Estimates
     ---------

     The preparation of financial statements in conformity with generally
     accepted accounting principles requires the General Partner to make
     estimates and assumptions that affect the reported amounts of assets
     and liabilities and disclosure of contingent assets and liabilities at
     the date of the financial statements and the reported amounts of revenue
     and expenses during the reported period.  Actual results could differ from
     the estimates.

									
     Item 2.  Management's Discussion and Analysis of Financial Condition and
     Results of Operations.

     Disclosure regarding: Forward Looking Statements
     ------------------------------------------------

     The information contained in this report on Form 10-Q, other than
     historical facts, contains "forward-looking statements" (as such term
     is defined with the meaning of the Private Securities Litigation Reform
     Act of 1995) including, without limitation, statements as to the Partner-
     ship's objective to grow through future portfolio acquisitions, portfolio
     account sales, the Partnership's ability to realize operating efficiencies
     in the integration of its acquisitions, trends in the Partnership's future
     operating performance, and statements as to the Partnership's or the
     General Partner's beliefs, expectations and opinions.  Forward looking
     statements may be identified by the use of forward looking terminology,
     such as "may", "will", "expect", "estimate", "anticipate", "believes",
     "probable", "possible", "should", "continue", or similar terms, variations
     of those terms or the negative of those terms.  Forward-looking statements
     are subject to risks and uncertainties and may be affected by various
     factors which may cause actual results to differ materially from those in
     the forward-looking statements.  In addition to the factors discussed in
     this Report, certain risks, uncertainties and other factors, including,
     without limitation, the risk that the Partnership will not be able to
     realize operating efficiencies in the integration of its acquisitions,
     risks associated with growth and future acquisitions, fluctuations in
     quarterly operating results, and the other risks detailed from time to
     time in the Partnership's filings with the Securities and Exchange
     Commission, including the Partnership's Annual Report on Form 10-K,
     dated March 31, 1998, can cause actual results and developments to be
     materially different from those expressed or implied by such forward-
     looking statements.


                                       9
<PAGE>





     Results of Operations.
     ----------------------

     The Partnership recorded net investment income of $42,117 for the three
     months ended March 31, 1998, a 2122% increase from $1,895 for the
     comparable period in 1997. The increase was attributed to additional
     portfolios that generated collections in excess of the carrying value
     of the portfolio and as a result are reflected in net investment income.
     Approximately 4% of portfolio collections received for the three months
     ended March 31, 1998 was reflected as investment income, compared to less
     than 1% for the similar period in 1997. 

     Net investment revenue of $42,117 for the three months ending March 31,
     1998 is the direct result of portfolio collection proceeds from six
     portfolios.  The Partnership acquired three portfolios during the first
     quarter of 1998, which offset the reduction of net assets as a result of
     portfolio collections recognized as portfolio basis reductions. The
     Partnership maintains and holds two portfolios which contribute 59% of
     net investment revenue and four other portfolios which contributed the
     remaining net investment revenue during the three months ended March 31,
     1998.  Collections for the months ended January 31, 1998, February 28,
     1998 and March 31, 1998 totaled $239,823, $408,943, and $370,152,
     respectively.

     Total operating expenses of the Partnership decreased 18% to $197,948 for
     the three months ended March 31, 1998, from $240,918 for the comparable
     period in 1997. The decrease is due primarily to the reduction of
     professional fees of 60% to $37,353 for the three months ended March 31,
     1998, from $92,615 for the similar period in 1997, attributed to a
     reduction of legal fees associated with the Rollup.  Collection expenses
     increased 149%, to $93,018 for the three months ended March 31, 1998 from
     $37,307 for the same period in 1997. This is primarily due to the three
     portfolios acquired during the first quarter of 1998 that require
     initial collection expenses such as debtor notification letters and
     certain credit bureau reports.  Management fees also increased 18% to
     $67,205 for the three months ended March 31, 1998, compared to $57,092
     for the three months ended March 31, 1997.  This is due to the acquisi-
     tion of new portfolios increasing the net assets under management.

     Operating expenses as a percent of portfolio collections totaled approx-
     imately 19% for the three months ended March 31, 1998 as compared to 32%
     for the similar period in 1997.  This 14% decrease is primarily attributed
     a decrease in professional fees related to the contemplated Rollup.







                                      10
<PAGE>





     Financial Condition, Liquidity and Capital Resources.
     -----------------------------------------------------


     The Partnership's total assets increased approximately 8% to $16,567,459
     as of March 31, 1998, from $15,296,220 at December 31, 1997.  The
     increase was primarily related to portfolio acquisitions totaling
     $4,847,880, which offset the reduction in investments in distressed
     loan portfolios.  The decrease of $2,858,076 in deposit on distressed
     loan portfolio acquisition was attributed to a deposit prior to year
     end that was consummated shortly after year end.  The increase of
     $534,864 in due from affiliates is primarily attributed to portfolio
     collections recorded but not yet paid.  The increase of $1,178,535 in
     due to affiliates for the first quarter of 1998 was due primarily to
     accrued and unpaid collection expenses, accrued and unpaid management
     fees, and declared but unpaid distributions to the General Partner.

     The Partnership acquired three new distressed portfolio assets in the
     first quarter of 1998 from a third party financial institution which
     specializes in credit card origination.  The General Partner anticipates
     that the Partnership will acquire additional portfolios in the future.
     Future acquisitions will depend on the asset market, which continues to
     grow in size and diversity.  The General Partner believes that the
     Partnership will continue to acquire low-priced distressed portfolios;
     however, the General Partner will continue to evaluate assets with
     different pricing and debtor account structure to determine whether
     such portfolios can generate significant immediate cash flows and
     provide additional liquidity to the Partnership.

     The Partnership has made no future commitments with credit card origina-
     tors and other financial institutions to acquire portfolio assets.  The
     General Partner plans to use its present contacts and relationships to
     identify and acquire additional assets at optimal prices, and believes
     that it will have no difficulties in identifying and acquiring such
     assets.  Distributions were suspended during the third quarter of 1997
     in anticipation of the contemplated reorganization of the Partnership
     with other affiliated partnerships and Performance Capital Management,
     Inc., a California corporation and an affiliate of the General Partner
     ("PCM").  The General Partner also believes current cash reserves and
     future portfolio collection proceeds will be sufficient to acquire
     additional portfolio assets in the next twelve months.  However, the
     General Partner will continuously monitor the Partnership's liquidity
     and evaluate whether additional capital will be necessary for future
     growth.









                                      11
<PAGE>



     Impact of Additional Partnership Acquisitions and Resources on Operations.
     --------------------------------------------------------------------------

     The General Partner anticipates that additional portfolio acquisitions and
     continued expansion will improve the Partnership's liquidity, profita-
     bility and financial condition, which will result in increased portfolio
     collections and sales.  The General Partner believes that PCM, which serves
     as the servicer of the Partnership's portfolios of indebtedness, must
     continue to increase that amount of its collection representatives and
     human resources in order to supplement such growth to the Partnership.
     The General Partner, in conjunction with PCM and other affiliated companies
     and partnerships, is seeking to lease office space in which PCM and the
     Partnership plan to move their facilities.  The General Partner believes
     that this move provides the Partnership with the adequate operating
     facilities for the future growth of the Partnership.

     A proposal is currently under consideration by the General Partner,
     pursuant to which the PAM Funds and the Partnership would merge with
     and into PAMCO.  The result of the proposed merger would be that a
     series of interrelated changes to the current organizational form of
     PAMCO would be implemented, including (a) merging the Partnership and
     the PAM Funds with and into PAMCO, as a result of which PAMCO would be
     the sole surviving entity; (b) terminating the PAM Funds and the
     Partnership and (c) converting the Limited Partners interests in the
     Partnership into common shares issued by PAMCO.

     Year 2000 Compliance.
     ---------------------

     The General Partner recognizes that the arrival of the Year 2000 poses
     a unique challenge to the ability of the computer systems of PCM used to
     service, manage and collect the portfolios in which the Partnership has
     an interest, to recognize properly and process date sensitive information
     related to the date change from December 31, 1999 to January 1, 2000.
     As the century date change occurs, date-sensitive systems may recognize
     the Year 2000 as 1900, or not at all.  This inability to recognize or
     treat properly the Year 2000 may cause PCM's computer systems to process
     financial and operational information incorrectly, which could have a
     material adverse effect on the Partnership's results of operations.
     PCM has assessed and begun remedial work relating to PCM's computer
     software programs and business processes to provide for PCM's ability
     to continue to function effectively.





                                      12
<PAGE>



     In 1997, PCM began the process of identifying, evaluating and implement-
     ing changes to PCM's computer programs necessary to address the Year
     2000 issue.  The General Partner is currently addressing the Partnership's
     internal Year 2000 issue by coordinating with PCM in connection with PCM's
     modification of existing programs and conversions to new programs.  The
     General Partner is also in communication with financial institutions and
     other entities with which the Partnership conducts business to help them
     identify and resolve the Year 2000 issue as it relates to the Partnership's
     business operations.  An assessment of the readiness of those third party
     institutions and entities with which the Partnership does business is
     ongoing.  While PCM and the General Partner are confident that PCM will
     complete the assessment and remediation of PCM's computer software, there
     can be no assurance that the necessary modifications and conversions by
     those third party institutions and entities with which the Partnership
     conducts business will be completed in a timely manner, which could have
     a material adverse effect on the Partnership's results of operations.
     The total cost to the Partnership associated with the required modifica-
     tions and conversions is not expected to be material to the Partnership's
     results of operations and financial position and is being expensed as
     incurred. 


                         PART II - OTHER INFORMATION

     Item 1. Legal Proceedings.

     Reference is made to the Partnership's Form 10-KSB dated March 31, 1998,
     in which such legal proceedings were reported in Part I, Item 3,  "Legal
     Proceedings".  The Partnership, by this reference, makes that disclosure
     a part of this Form 10-QSB.

     Item 2.   Exhibits and Reports.


     (a)  Exhibits

     Exhibit Number                                    Exhibit

             1              Certificate of Limited Partnership Form LP-1
                            (Charter Document) *

             2              Agreement of Limited Partnership (Instrument
                            defining the rights of Security Holders)  **

     *     Reference is made to the Partnership's Form 10-KSB, dated March 31,
     1997, in which that Certificate of Limited Partnership was included as an
     exhibit. The Partnership, by this reference, makes that Certificate of
     Limited Partnership a part of this Form 10-QSB.

     **    Reference is made to the Partnership's Form 10-KSB, dated March 31,
     1997, in which that Agreement of Limited Partnership was included as an
     exhibit. The Partnership, by this reference, makes that Agreement of
     Limited Partnership a part of this Form 10-QSB.





                                      13
<PAGE>





                                  SIGNATURES




     In accordance with Section 13 or 15(d) of the Exchange Act, the
     Partnership caused this report to be signed on its behalf by the
     undersigned, thereunto duly authorized.


          Dated: May 15, 1998 Performance Asset Management Fund IV, Ltd.,
                              -------------------------------------------
                                  A California Limited Partnership
                                  --------------------------------
                                              (Registrant)



     By:  /S/Vincent E. Galewick
          ----------------------
          Vincent E. Galewick
          President of the General Partner,
          Performance Development, Inc.


































                                      14
<PAGE>