U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB


(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, 2000

                                       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:  0-27077

                             TREMONT ADVISERS, INC.
                             ----------------------
        (Exact name of small business issuer as specified in its charter)

             Delaware                                  06-1210532
             --------                                  ----------
  (State or other jurisdiction or         (I.R.S. Employer Identification No)
  incorporation or organization)

              555 Theodore Fremd Avenue, Rye, New York     10580
            ------------------------------------------------------
            (Address of principal executive offices)    (Zip Code)

                                 (914) 925-1140
                                 --------------
                           (Issuer's telephone number)

              (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 issuer was required to file such reports, and (2) has
been subject to such filing requirements for the past 90 days.

         Yes |X|   No |_|

     APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDING DURING THE
                              PRECEDING FIVE YEARS

     Check whether the issuer 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 a court.

         Yes |_|   No |_|

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

The number of shares outstanding of the Registrant's Class A Common Stock, $0.01
par value, as of the close of business on August 7, 2000 was 1,740,292, and the
number of shares outstanding of the Registrant's Class B Common Stock, $0.01 par
value, was 5,029,333 as of the same date. Shares outstanding have been restated
to reflect the impact of a five-for-four stock split paid on August 8, 2000 to
shareholders of record on July 31, 2000.

<PAGE>

                                      INDEX


                             Tremont Advisers, Inc.


PART I - FINANCIAL INFORMATION                                             Page

Item 1.  Financial Statements. (Unaudited)

    Condensed Consolidated Balance Sheets - June 30, 2000 (unaudited)
       and December 31, 1999 (audited)                                        1

    Condensed Consolidated Statements of Income -
       six and three months ended June 30, 2000 and 1999                      2

    Condensed Consolidated Statement of Shareholders' Equity -
       six months ended June 30, 2000                                         3

    Condensed Consolidated Statements of Cash Flows -
       six months ended June 30, 2000 and 1999                                4

    Notes to Condensed Consolidated Financial Statements                      6

Item 2.  Management's Discussion and Analysis                                14

Part II - Other Information

Item 1.  Legal Proceedings                                                   19

Item 4.  Submission of Matters to a Vote of Security Holders                 20

Item 6.  Exhibits and Reports on Form 8-K                                    20

Signatures                                                                   20

Exhibit 27 - Financial Data Schedule                                         21

Exhibit 10.67 - Revolving Credit Promissory Note - Dated July 25, 2000       54

<PAGE>

                             Tremont Advisers, Inc.
                      Condensed Consolidated Balance Sheets

<TABLE>
<CAPTION>
                                                                                  June 30, 2000     December 31, 1999
                                                                                  -----------------------------------
                                                                                    (Unaudited)            (Audited)
<S>                                                                               <C>                    <C>
Assets
Current Assets
  Cash and cash equivalents                                                       $  2,827,300           $  2,879,300
  Accounts receivable, net                                                           3,299,300              3,682,700
  Income taxes receivable                                                               54,800                     --
  Dividend receivable                                                                   40,700                 31,000
  Prepaid expenses and other assets                                                    303,300                263,800
                                                                                  -----------------------------------
Total current assets                                                                 6,525,400              6,856,800

Investments (cost $4,542,400 and $3,092,400)                                         5,982,600              4,243,500
Investments in joint ventures (cost $501,500 and $408,600)                           1,943,300              2,231,700

Fixed assets, net                                                                      957,300                774,500
Goodwill, net                                                                        1,890,800              1,999,800
Other assets                                                                            33,500                 30,300
                                                                                  -----------------------------------
Total assets                                                                      $ 17,332,900           $ 16,136,600
                                                                                  ===================================

Liabilities and shareholders' equity
Current liabilities
  Accounts payable                                                                $    299,100           $    563,800
  Accrued expenses                                                                   1,805,400              2,492,800
  Deferred revenue                                                                   1,266,700              1,363,500
  Income taxes payable                                                                      --                191,700
  Deferred income taxes payable                                                             --                 32,600
                                                                                  -----------------------------------
Total current liabilities                                                            3,371,200              4,644,400

Deferred income taxes payable                                                        1,375,400                836,800

Shareholders' equity
  Preferred Stock $1 par value, 350,000 shares
     authorized, issued and outstanding - none                                              --                     --
  Class A Common Stock, $0.01 par value, 5,000,000 shares
     authorized, 1,990,292 and 1,993,855 shares issued and outstanding                  20,000                 16,000
  Class B Common Stock, $0.01 par value, 10,000,000 shares
     authorized, 5,029,333 and 5,025,381 shares issued and outstanding                  50,300                 40,200
Additional paid in capital                                                           7,889,700              7,901,800
Retained earnings                                                                    4,609,300              2,698,200
Cumulative foreign currency translation adjustment                                      17,000                   (800)
                                                                                  -----------------------------------
Total shareholders' equity                                                          12,586,300             10,655,400
                                                                                  -----------------------------------
Total liabilities and shareholders' equity                                        $ 17,332,900           $ 16,136,600
                                                                                  ===================================
</TABLE>

See accompanying notes.

Note: The Condensed Consolidated Balance Sheet at December 31, 1999 has been
      derived from the audited financial statements as of that date.


                                       1
<PAGE>

                             Tremont Advisers, Inc.
                   Condensed Consolidated Statements of Income
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                         Six months ended                   Three months ended
                                                                             June 30                              June 30
                                                                     2000               1999               2000              1999
                                                               ---------------------------------------------------------------------
<S>                                                            <C>                <C>                <C>                <C>
Revenues
Proprietary asset-based                                        $  5,495,300       $  3,664,700       $  2,872,900       $  1,903,500
Consulting fees                                                   3,626,300          2,753,900          1,948,800          1,432,400
Database information sales                                          760,800            579,100            372,400            434,700
Commissions                                                         163,000            247,100             78,100            146,700
Performance fees                                                     98,100            130,800             16,100             80,500
                                                               ---------------------------------------------------------------------
Total revenues                                                   10,143,500          7,375,600          5,288,300          3,997,800

Expenses
Compensation                                                      3,759,400          2,745,700          1,884,500          1,482,800
General and administrative                                        2,093,400          1,706,800          1,132,600            898,300
Consulting                                                        1,079,700            785,900            550,500            412,900
Depreciation                                                        180,900            114,100             95,600             62,900
Amortization of intangibles                                         109,000            407,200             54,500            296,300
                                                               ---------------------------------------------------------------------
Total expenses                                                    7,222,400          5,759,700          3,717,700          3,153,200

Equity earnings of investments                                      382,100            225,600            145,800            123,700
Loss from joint ventures                                           (229,000)            (3,100)          (169,400)             5,000
Other income, net                                                    34,300             23,500             30,500             12,900
                                                               ---------------------------------------------------------------------

Income before income taxes                                        3,108,500          1,861,900          1,577,500            986,200
Provision for income taxes                                        1,197,400            655,400            591,500            365,300
                                                               ---------------------------------------------------------------------
Net income                                                     $  1,911,100       $  1,206,500       $    986,000       $    620,900
                                                               =====================================================================

Net income per common share-basic                              $       0.27       $       0.18       $       0.14       $       0.09
                                                               =====================================================================

Net income per common share - assuming dilution                $       0.26       $       0.17       $       0.13       $       0.08
                                                               =====================================================================
</TABLE>

See accompanying notes.


                                       2
<PAGE>

                             Tremont Advisers, Inc.
            Condensed Consolidated Statement of Shareholders' Equity
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                           Common Stock              Additional                          Total
                                                             Par Value                Paid In          Retained       Shareholders'
                                                     Class A          Class B         Capital          Earnings          Equity
                                                ---------------------------------------------------------------------------------
<S>                                              <C>              <C>              <C>               <C>              <C>
Balance at December 31, 1999                     $    16,000      $    40,200      $ 7,901,800       $ 2,698,200      $10,655,400

Comprehensive Income:
Net Income                                                --               --               --         1,911,100        1,911,100
Foreign Currency Translation                                                                                               17,800
                                                ---------------------------------------------------------------------------------

Comprehensive Income                                                                                                    1,928,900

Issuance of Class B Common Stock-
Exercise of Employee Options                              --               --            2,000                --            2,000
(312 shares pre split)

Conversion of Class A to Class B
Common Stock (2,850 shares pre split)                     --               --               --                --               --

5-for-4 Stock Split
(398,024 Class A Common Stock)
(1,005,822 Class B Common Stock)                       4,000           10,100          (14,100)               --               --
                                                ---------------------------------------------------------------------------------

 Balance at June 30, 2000                        $    20,000      $    50,300      $ 7,889,700       $ 4,609,300      $12,586,300
                                                =================================================================================
</TABLE>

See accompanying notes.


                                       3
<PAGE>

                             Tremont Advisers, Inc.
                 Condensed Consolidated Statements of Cash Flows
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                Six months ended
                                                                                    June 30
                                                                          2000                      1999
                                                                     -------------------------------------
<S>                                                                  <C>                       <C>
Operating Activities
Net income                                                           $ 1,911,100               $ 1,206,500
Adjustments to reconcile net income
  to cash provided by operating activities:
  Depreciation                                                           180,900                   114,100
  Amortization of intangibles                                            109,000                   407,200
  Equity earnings of investments                                        (382,100)                 (222,500)
  Losses from joint ventures                                             229,000                        --
  Deferred income taxes payable                                          506,000                   238,900
  Foreign currency translation adjustment                                 17,800                    32,300
Changes in operating assets and liabilities:
    Accounts receivable, net                                             383,400                  (437,400)
    Dividend receivable                                                   (9,700)                       --
    Other assets                                                          (3,200)                  162,900
    Prepaid expenses and other                                           (39,500)                  260,600
    Accounts payable                                                    (264,700)                 (170,500)
    Accrued expenses                                                    (687,400)                 (183,100)
    Deferred revenue                                                     (96,800)                  (75,600)
    Income taxes, net                                                   (246,500)                  177,800
                                                                     -------------------------------------
Net cash provided by operating activities                              1,607,300                 1,511,200

Investing activities
Purchase of fixed assets                                                (363,700)                 (219,900)
Cash paid for investments                                             (1,550,000)               (1,131,000)
Withdrawal from investments                                              193,000                        --
Cash acquired from acquisition of TASS                                        --                   102,000
Investments in joint ventures                                            (92,900)                  (50,000)
Return of capital from joint ventures                                    152,300                        --
                                                                     -------------------------------------
Net cash used by investing activities                                 (1,661,300)               (1,298,900)

Financing activities
Proceeds from issuance of Class B Common Stock                                --                   357,200
Exercise of Class B Common Stock options                                   2,000                    75,000
Tax benefit from exercise of stock options                                    --                    19,300
                                                                     -------------------------------------
Net cash provided by financing activities                                  2,000                   451,500

Net (decrease) increase in cash and cash equivalents                     (52,000)                  663,800
Cash and cash equivalents at beginning of period                       2,879,300                 1,893,800
                                                                     -------------------------------------
Cash and cash equivalents at end of period                           $ 2,827,300               $ 2,557,600
                                                                     =====================================
</TABLE>

See accompanying notes.


                                       4
<PAGE>

                             Tremont Advisers, Inc.
             Condensed Consolidated Statements of Cash Flows (con't)
                                   (Unaudited)

Supplemental disclosures of cash flow information:

<TABLE>
<CAPTION>
                                                             Six months ended
                                                                 June 30
                                                          2000              1999
                                                        --------------------------
<S>                                                     <C>           <C>
Financing activities
Noncash transactions related to the
      issuance of Class B Common Stock in
      the Tass acquisition                              $   --        $  1,428,600

Investing activities
Liabilities assumed in the Tass acquisition
     Deferred revenue                                       --             793,600
     Accounts payable                                       --              39,200
     Accrued expenses                                       --             411,500
     Short -term debt                                       --             236,800

Assets acquired in the Tass acquisition
     Fixed assets, net                                      --              81,100
     Accounts receivable                                    --             184,500
     Prepaid and other                                      --              47,000
     Customer contracts                                     --             555,500
     Goodwill                                               --           2,181,400

Accrued acquistion costs                                    --             241,800

</TABLE>

See accompanying notes.


                                       5
<PAGE>

                             Tremont Advisers, Inc.

              Notes to Condensed Consolidated Financial Statements
                                   (Unaudited)


NOTE A - Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial  information and with the  instructions to Form 10-QSB and Item 310(b)
of Regulation S-B.  Accordingly,  they do not include all of the information and
footnotes  required by generally  accepted  accounting  principles  for complete
financial statements. In the opinion of management,  all adjustments (consisting
of  normal  recurring  accruals)  necessary  for a fair  presentation  have been
included. Operating results for the six and three months ended June 30, 2000 are
not  necessarily  indicative  of the results  that may be expected  for the year
ending  December 31, 2000. For further  information,  refer to the  consolidated
financial  statements  and footnotes  thereto  included in the Company's  Annual
Report on Form 10-KSB for the fiscal year ended December 31, 1999.

NOTE B - Summary of Significant Accounting Policies

Use of Estimates - The  preparation of financial  statements in conformity  with
generally accepted  accounting  principles requires management 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 reporting
period. Actual results could differ from such estimates.

Principles of Consolidation - The condensed  consolidated  financial  statements
include the accounts of the Company and its  majority  owned  subsidiaries.  All
inter-company transactions and accounts have been eliminated in consolidation.

Goodwill - Goodwill  represents  the excess of purchase  price and related costs
over the value  assigned to the net tangible  assets of the  business  acquired.
Goodwill is amortized on a straight-line basis over ten years.

Earnings per Share - Basic  earnings per share is computed based on the weighted
average number of common shares outstanding. Diluted earnings per share reflects
the increase in the weighted  average number of common shares  outstanding  that
would result from the assumed exercise of outstanding stock options,  calculated
using the treasury stock method.  All per share and shares outstanding data have
been  restated  to reflect the impact of the  five-for-four  stock split paid on
August 8, 2000.

Minority Interest - The Company owns 65% of Tremont  Investment  Management Inc.
("TIMI"). For financial reporting purposes,  the assets,  liabilities and losses
of TIMI have been included in the  Company's  condensed  consolidated  financial
statements.

Concentrations  of  Credit  Risk - The  Company's  accounts  receivable  are not
concentrated  in any specific  geographic  region,  but are  concentrated in the
investment  industry.  The


                                       6
<PAGE>

Company's  exposure to credit risk  associated  with  nonpayment by customers is
affected by conditions within the investment industry.

Income Taxes - The provision for income taxes  includes  federal and state taxes
currently  payable,  after  reduction  for  undistributed  earnings  of  foreign
subsidiaries  considered permanently  reinvested,  and those deferred because of
temporary  differences  between  the  financial  statement  and the tax basis of
assets and liabilities.  A valuation  allowance is recorded,  based on available
evidence  when it is more  likely  than  not  that  some  portion  or all of the
deferred tax assets will not be realized.

Reclassifications  - Certain  prior  year  balances  have been  reclassified  to
conform with current period presentation.

NOTE C - Investments

The  following  table  sets  forth   financial   information  of  the  Company's
investments in certain proprietary limited partnerships at June 30, 2000.

<TABLE>
<CAPTION>
                                                  American Masters   American Masters    American Masters    American Masters
                                                    Broad Market       Broad Market         Opportunity       Market Neutral
                                                     Fund, L.P.      Prime Fund, L.P.        Fund, L.P.         Fund, L.P.
                                              -------------------------------------------------------------------------------
                                                     (Unaudited)        (Unaudited)         (Unaudited)         (Unaudited)
<S>                                                 <C>                <C>                   <C>                <C>
Total assets                                        $ 324,984,500      $ 448,231,100         $ 5,630,200        $ 14,762,800
Total liabilities                                       2,177,900        164,283,400               2,500           1,411,800

Net investment income/(loss)                        $   4,065,200      $  (1,323,600)             (2,500)            (69,700)
Realized and unrealized gain                           20,411,500         26,124,300             130,200           1,133,600
                                              -------------------------------------------------------------------------------
Net income                                          $  24,476,700      $  24,800,700         $   127,700        $  1,063,900
                                              ===============================================================================

General Partner                                       TPI                TPI                   TPI                TFI
GP investment in partnership--at market value       $   1,038,100      $     614,500         $   511,600        $    760,200
GP investment in partnership--at
cost                                                      423,600            467,900             500,000             605,000
Proportionate share of earnings *                          82,200             60,100              11,600              65,400
Proportionate share of fund's net assets                    0.32%              0.22%               9.35%               5.69%
</TABLE>

*  Proportionate  share of  earnings  is  included  in  equity  in  earnings  of
investments in the condensed consolidated statements of income.

American Masters  Opportunity  Fund, L.P. - American Masters  Opportunity  Fund,
L.P. is a Delaware  limited  partnership  that was  organized for the purpose of
achieving long-term capital growth,  generating positive returns irrespective of
stock market volatility,  and preservation of capital utilizing a multi-manager,
multi-strategy  approach.  TPI invested  $500,000 in the fund which was launched
June 1, 2000.

Tremont Broad Market Fund,  LDC - Tremont  Broad Market Fund,  LDC ("TBMF") is a
Cayman  Island  limited  duration  corporation  organized  for  the  purpose  of
achieving  capital  growth  through  hedged  investments.  At June 30,  2000 and
December 31, 1999,  TBL's  investment in TBMF was $1,787,700 (cost - $1,650,000)
and $640,900 (cost - $600,000),  respectively. For the six months ended June 30,
2000,  TBL's  proportionate


                                       7
<PAGE>

share  of  net  income  is  $96,800.  TBL  serves  as  the  investment  adviser,
administrator and registrar and transfer agent of TBMF.

Meridian  Horizon Fund,  L.P. - Meridian  Horizon Fund,  L.P.  ("Meridian") is a
Delaware  limited  partnership that was organized for the purpose of achieving a
high total return and preservation of capital utilizing a multi-manager approach
to investing.  At June 30, 2000, total assets of the fund were $560 million.  In
addition, net investment losses for the six and three months ended June 30, 2000
were $3.5 million and $1.8 million,  respectively,  and realized and  unrealized
gains were $40.8 million and $.4 million, respectively,  resulting in net income
(loss) of $37.4 million and $(1.4) million,  respectively. At June 30, 2000, TPI
had an investment of $538,400 (cost - $250,000), representing .11% of Meridian's
net assets. For the six months ended June 30, 2000, TPI's proportionate share of
Meridian's income is $36,900.

NOTE D -Investments in Joint Ventures

At June 30, 2000, TBL's investment in Tremont MRM Services Limited ("TMRM"),  an
international risk management company incorporated under the laws of Bermuda, in
which TBL has a 38.75% interest, was $392,200 (cost - nil). In addition, for the
six months  ended June 30,  2000,  TBL's  proportionate  share of net income was
$149,600.  TMRM  provides  product  development,  marketing  and  administrative
services  to TIIL.  On April 11,  2000,  TBL  received  from TMRM a dividend  of
$111,600 and at June 30, 2000, had an additional dividend receivable of $40,700.

At June 30, 2000 and  December  31,  1999,  TBL's  24.5%  interest in FITX Group
Limited  ("FITX")  was  $1,489,900  (cost -  $439,200)  and  $1,775,600  (cost -
$346,300), respectively. For the six and three months ended June 30, 2000, TBL's
proportionate  share of losses were  $378,600  and  $209,000,  respectively.  In
addition,  FITX has agreed to pay TBL on-going annual royalties for net revenues
earned  in  connection  with the  on-line  usage of the  TASS+  database.  These
royalties were not significant for the six months ended June 30, 2000.

NOTE E - Accrued Expenses

Accrued expenses consist of the following:


                                           June 30, 2000    December 31, 1999
                                           ----------------------------------
                                             (Unaudited)         (Audited)

     Consulting fees                         $  715,200         $1,027,200
     Compensation                               592,200            507,000
     Professional fees                          224,800            262,500
     Short-term notes payable                    95,600            368,400
     Employee benefits payable                   60,000            138,800
     Other                                      117,600            188,900
                                             ----------         ----------
                                             $1,805,400         $2,492,800
                                             ==========         ==========


                                       8
<PAGE>

NOTE F - Shareholders Equity

On June 6, 2000,  the Board of Directors  approved a  five-for-four  stock split
(with no change in par  value) on both the  Company's  Class A Common  Stock and
Class B Common Stock. To reflect the split, which was payable to Stockholders of
record on July 31,  2000,  Class A Common  Stock and Class B Common  Stock  were
increased  and  additional  paid in capital was decreased by $4,000 and $10,100,
respectively.  All per share and shares  outstanding  data have been restated to
reflect the impact of the stock split.

On June 6,  2000,  the Board of  Directors  also  approved a buy back of 200,000
shares of the Company's Class A Common Stock at a price of $11.50 per share (See
Note L - Subsequent Events).

NOTE G - Stock Options

A summary of the Company's  stock option  activity for the six months ended June
30, 2000 is as follows:

     Outstanding-beginning of period:            978,590
     Granted                                          --
     Exercised                                      (390)
     Lapsed                                           --
                                                --------
     Outstanding-end of period                   978,200
                                                ========

     Exercisable at end of period                835,455
                                                ========

NOTE H - Income Taxes

Deferred  income  taxes  reflect  the net tax effects of  temporary  differences
between the carrying  amounts of assets and liabilities for financial  reporting
purposes and the amounts used for income tax purposes. Significant components of
the Company's  deferred tax  liabilities  and deferred tax assets as of June 30,
2000 and December 31, 1999 are as follows:


                                       9
<PAGE>

<TABLE>
<CAPTION>
                                                             June 30, 2000   December 31, 1999
                                                             ---------------------------------
                                                              (Unaudited)         (Audited)
<S>                                                           <C>               <C>
Deferred tax liabilities:
   Tax over book depreciation                                 $    11,700       $    16,600
   Unrealized appreciation in limited partnerships                 42,400            36,700
   Undistributed earnings of foreign subsidiary                 1,393,100           829,000
                                                             ---------------------------------
Total deferred tax liabilities                                  1,447,200           882,300

Deferred tax assets:
   Net operating loss carryforward of foreign subsidiaries        330,400           248,800
   Bad debt reserves                                                4,100             4,100
   Organization costs                                                 200               800
   Deferred revenue of foreign affiliate                           71,800             8,000
   Valuation allowance                                           (330,400)         (248,800)
                                                             ---------------------------------
Total deferred tax assets                                          76,100            12,900
                                                             ---------------------------------
Net deferred tax liability                                    $ 1,371,100       $   869,400
                                                             =================================
</TABLE>

     The income tax  provision  gives  effect to permanent  differences  between
     financial and taxable income, resulting in a higher effective tax rate than
     the statutory income tax rate. The unaudited  reconciliation  of income tax
     attributable  to income  before income taxes  computed at the U.S.  federal
     statutory tax rates to income tax expense is:

<TABLE>
<CAPTION>
                                                                   Six months ended
                                                                       June 30
                                                              2000                     1999
                                                  ---------------------------------------------------
                                                       Amount      Percent      Amount       Percent
                                                  ---------------------------------------------------
<S>                                                <C>              <C>       <C>             <C>
Statutory federal income tax rate                  $ 1,056,900      34.0%     $ 635,800       34.0%
State taxes, net of federal benefit                     92,800       3.0%        68,300        3.7%
Permanently reinvested foreign income                        -       0.0%      (136,000)      -7.3%
Change in valuation allowance                           81,600       2.6%       144,100        7.7%
Other                                                  (33,900)     -1.1%       (56,800)      -3.1%
                                                  ---------------------------------------------------
                                                   $ 1,197,400      38.5%     $ 655,400       35.0%
                                                  ===================================================

<CAPTION>
                                                                 Three months ended
                                                                       June 30
                                                              2000                     1999
                                                  ---------------------------------------------------
                                                       Amount      Percent      Amount       Percent
                                                  ---------------------------------------------------
<S>                                                 <C>             <C>       <C>             <C>
Statutory federal income tax rate                   $  536,400      34.0%     $ 338,100       34.0%
State taxes, net of federal benefit                     39,900       2.5%        40,300        4.1%
Permanently reinvested foreign income                        -       0.0%       (68,000)      -6.8%
Change in valuation allowance                              200       0.0%       115,500       11.7%
Other                                                   15,000       1.0%       (60,600)      -6.3%
                                                  ---------------------------------------------------
                                                    $  591,500      37.5%     $ 365,300       36.7%
                                                  ===================================================
</TABLE>


                                       10
<PAGE>

During the six months ended June 30, 2000,  the Company made federal  income tax
payments  and state  income,  minimum and capital tax  payments of $770,000  and
$172,000,  respectively.  Federal and state  payments of $175,000  and  $42,000,
respectively, were made for the six months ended June 30, 1999.

Deferred  income  taxes  were not  provided  on  certain  undistributed  foreign
earnings  (cumulatively  $1,170,000  at  June  30,  2000)  of TBL  because  such
undistributed  earnings are expected to be reinvested  indefinitely overseas. If
these amounts were not considered  permanently  reinvested,  additional deferred
taxes of approximately $397,800 would have been provided.

At June 30, 2000 and 1999, the Company had no net operating  loss  carryforwards
for U.S. federal tax purposes.  At June 30, 2000, TIMI, the Canadian subsidiary,
and TASS, the U.K.  subsidiary,  have generated  cumulative net operating losses
for tax purposes of approximately $321,000 and $600,000,  respectively,  against
which a full valuation allowance has been recorded. The net operating loss carry
forward  period for TIMI is seven years and there is no  limitation on the carry
forward loss period for TASS.

NOTE I - Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per
share:

<TABLE>
<CAPTION>
                                                                                     Six months ended           Three months ended
                                                                                          June 30                    June 30
                                                                                    2000          1999          2000          1999
                                                                                ----------------------------------------------------
                                                                                        (Unaudited)                 (Unaudited)
<S>                                                                             <C>           <C>           <C>           <C>
Numerator:

     Net Income - numerator for basic and dilutive earnings per share           $1,911,100    $1,206,500    $  986,000    $  620,900
     (income available to stockholders)

Denominator:

     Denominator for basic earnings per share - weighted average shares          7,019,494     6,848,672     7,019,625     7,003,778

Effect of dilutive securities:

     Employee stock options                                                        436,073       382,546       457,038       418,165
                                                                                ----------    ----------    ----------    ----------

Denominator for diluted earnings per share - adjusted weighted-average
     Shares and assumed conversions                                              7,455,567     7,231,218     7,476,663     7,421,943
                                                                                ==========    ==========    ==========    ==========

Basic earnings per share                                                        $     0.27    $     0.18    $     0.14    $     0.09
                                                                                ==========    ==========    ==========    ==========

Diluted earnings per share                                                      $     0.26    $     0.17    $     0.13    $     0.08
                                                                                ==========    ==========    ==========    ==========
</TABLE>


                                       11
<PAGE>

NOTE J - Contingencies

The Company is being sued by a former  employee  for alleged  breach of contract
and defamation.  The Company  believes that the suit is without merit;  however,
should the plaintiff  prevail,  the Company  believes that it is likely that the
damages will not be material to the Company's  consolidated  financial condition
or results of operations.

NOTE K - Segment and Geographic Data

The Company is a holding company having three core areas of business: consulting
services,  information  and research,  and  investment  products.  The Company's
clients are investment funds,  investment managers,  institutional investors and
high net worth  individuals  to whom the Company's  subsidiaries  provide advice
concerning the  organization  and management of their  investment  portfolio and
programs.  The Company also provides specialized  investment services,  sponsors
and manages its own  proprietary  single-manager  and  multi-manager  investment
funds, as well as providing  consulting services to investment  management firms
and individual investment advisers. The Company derives a significant portion of
its  revenues  from  proprietary   asset-based  fees  and  consulting   services
agreements  with  single-manager  and  multi-manager  investment  funds or their
sponsors and advisers.

The following  table provides a summary of the types of fees earned with respect
to each of the Company's core areas of business:

<TABLE>
<CAPTION>
                                                            Six months ended                    Three months ended
                                                                 June 30                              June 30
                                                         2000               1999               2000               1999
                                                    --------------------------------------------------------------------
                                                             (Unaudited)                            (Unaudited)
<S>                                                 <C>                <C>                <C>                <C>
Revenues

Proprietary investment funds
  Asset-based fees                                  $ 5,495,300        $ 3,664,700        $ 2,872,900        $ 1,903,500

Consulting services
  Asset-based fees                                    2,794,100          1,945,700          1,553,400            962,400
  Annual retainer and special project fees              638,100            693,200            299,200            375,100
  Administration fees                                   189,000            115,000             96,200             94,900
  Royalties                                               5,100                 --                 --                 --
                                                    --------------------------------------------------------------------
                                                      3,626,300          2,753,900          1,948,800          1,432,400

Information sales                                       760,800            579,100            372,400            434,700

Commissions                                             163,000            247,100             78,100            146,700

Performance-based fees                                   98,100            130,800             16,100             80,500
                                                    --------------------------------------------------------------------

Total Revenues                                      $10,143,500        $ 7,375,600        $ 5,288,300        $ 3,997,800
                                                    ===========        ===========        ===========        ===========
</TABLE>


                                       12
<PAGE>

The following table provides a summary of the types of fees earned by geographic
location:

<TABLE>
<CAPTION>
                                         Revenues (a)                                  Revenues (a)
                                       Six months ended                            Three months ended
                                           June 30                                       June 30
                                  2000                   1999                   2000                  1999
                             --------------------------------------------------------------------------------
                                         (Unaudited)                                   (Unaudited)
<S>                          <C>                    <C>                    <C>                    <C>
United States                $ 5,904,300            $ 4,496,200            $ 3,022,400            $ 2,372,300
Bermuda                        3,421,100              2,231,300              1,822,900              1,120,700
Canada                                --                     --                     --                     --
United Kingdom                   818,100                648,100                443,000                504,800
                             --------------------------------------------------------------------------------
Consolidated Total           $10,143,500            $ 7,375,600            $ 5,288,300            $ 3,997,800
                             ===========            ===========            ===========            ===========
</TABLE>

(a) Revenues are attributed to countries based on the location of the subsidiary
performing the services.

Long-lived assets are substantially  located in the United States and the United
Kingdom.

Certain  proprietary  investment funds accounted for significant  percentages of
the Company's consolidated revenues, as follows:

<TABLE>
<CAPTION>
                                                        Six months ended        Three months ended
                                                             June 30                 June 30
                                                        2000        1999         2000        1999
                                                       -------------------------------------------
                                                           (Unaudited)               (Unaudited)
<S>                                                     <C>         <C>          <C>         <C>
American Masters Broad Market Fund, L.P.                13.9%       13.6%        13.6%       12.6%
American Masters Broad Market Prime Fund, L.P.          17.9%       17.4%        18.1%       16.4%
Kingate Global Fund Class B Shares                      14.4%       15.4%        14.5%       14.4%
</TABLE>

NOTE L - Subsequent Events

On July 20, 2000 the Company's  offer to purchase  200,000 shares of its Class A
Common  Stock at a price  of  $11.50  per  share in cash  (the  "Tender  Offer")
terminated.  After the  completion of the Tender Offer,  and as adjusted for the
five-for-four  stock  split  paid on August 8, 2000,  the number of  outstanding
shares of the  Company's  Class A Common  Stock and  Class B Common  Stock  were
1,740,293 and 5,029,333, respectively.

On July 25, 2000, the Company executed a two-year  Revolving  Credit  Promissory
Note,  due on July 31,  2002 (the  "Revolver")  in an amount not to exceed  $2.5
million. On July 26, 2000, the Company drew down $1,975,000 from the Revolver to
fund a portion of the  purchase  of the 200,000  shares of Class A Common  Stock
pursuant  to the Tender  Offer.  The  balance of the  Revolver  will be used for
working capital needs arising from time to time.  Borrowings  under the Revolver
bear interest,  at the Company's  option, at the bank's prime rate or the London
Interbank  Offered Rate plus a margin of 2%. The Revolver is secured by a pledge
of the management fees payable by certain proprietary  products to TPI and TPI's
limited  partnership  interest in the


                                       13
<PAGE>

American  Masters  Opportunity  Fund,  L.P.  which is  currently  valued at $1.8
million. The Company must also comply with certain debt covenants.

Item 2. Management's Discussion and Analysis

The Company's  revenues are derived from consulting and  specialized  investment
services provided to institutional and other clients, as well as management fees
from certain funds under management. Consulting fees are generally a function of
the  amount of assets  under  management  and the  percentage  fees  charged  to
clients.  Management fees are based on a percentage of the assets of the managed
fund and are usually  paid on a monthly or  quarterly  basis.  The Company  also
receives  asset-based fees for investments  placed by Tremont  (Bermuda) Limited
("TBL") in certain  offshore mutual funds and Tremont  Securities,  Inc. ("TSI")
for assets placed in certain domestic limited partnerships. The Company provides
other  consulting  services  generally  on a fixed fee basis,  whether as annual
retainer  fees or single  project  fees.  With the  purchase of TASS  Investment
Research  Limited ("TASS") on March 11, 1999, the Company also has revenues from
the sale of electronic database  information.  The Company's principal operating
expenses  consist of its costs of personnel and independent  consultants.  It is
management's intention to continue the Company's focus on launching new products
and to take  advantage  of its growing  world-wide  relationships  to expand its
operations.

Proprietary  asset-based  fees for the six months ended June 30, 2000  increased
$1,830,600,  or 50.0%, as compared to the six months ended June 30, 1999. At the
Company's  principal  domestic  subsidiary,   Tremont  Partners,  Inc.  ("TPI"),
proprietary  asset-based fees increased from $2,287,100 for the six months ended
June 30,  1999 to  $3,232,500  for the six  months  ended  June 30,  2000.  This
increase was primarily due to increases in revenues from American  Masters Broad
Market Prime Fund, L.P.  ($539,800  increase) and American  Masters Broad Market
Fund, L.P. ($407,100 increase).  At TBL, proprietary  asset-based fees increased
from $1,376,300 for the six months ended June 30, 1999 to $2,214,700 for the six
months ended June 30, 2000.  This  increase  was  primarily  due to increases in
revenues  from Tremont Broad Market Fund,  LDC  ($483,600  increase) and Kingate
Global  Fund Class B Shares  ($326,500  increase),  as well as the  addition  of
American  Masters AG Absolute  Fund, LDC ($28,300  increase)  which was launched
September 1, 1999.  The remaining  increase in  proprietary  asset based fees of
$46,800 was  generated by American  Masters  Market  Neutral  Fund,  L.P.  whose
General Partner is Tremont Futures, Inc.

Proprietary  asset-based fees for the three months ended June 30, 2000 increased
$969,400, or 50.9%, as compared to the three months ended June 30, 1999. At TPI,
proprietary  asset-based  fees  increased  from  $1,201,100 for the three months
ended June 30, 1999 to $1,676,400 for the three months ended June 30, 2000. This
increase was primarily due to increases in revenues from American  Masters Broad
Market Prime Fund, L.P.  ($280,600  increase) and American  Masters Broad Market
Fund, L.P. ($195,300 increase).  At TBL, proprietary  asset-based fees increased
from  $700,000 for the three months  ended June 30, 1999 to  $1,170,900  for the
three months ended June 30, 2000.  This  increase was primarily due to increases
in revenues from Tremont Broad Market Fund, LDC ($249,600  increase) and Kingate
Global  Fund Class B Shares  ($169,900  increase),  as well as, the  addition of
American  Masters AG Absolute  Fund, LDC ($20,600  increase)  which was launched
September 1, 1999.  The remaining  increase in  proprietary  asset based fees of
$23,200 was generated by American Masters Market Neutral Fund, L.P.


                                       14
<PAGE>

Consulting  fees for the six months ended June 30, 2000 increased  $872,400,  or
31.7%,  as compared to the six months  ended June 30,  1999.  This  increase was
primarily due to increased assets under management by the underlying  investment
vehicles.  At TPI, the increase was  primarily  due to increased  revenues  from
Meridian Horizon Fund, L.P. ($202,900 increase), Winston Partners, L.P. ($68,300
increase) and Security Equity Life Insurance Company ($61,100 increase). At TBL,
the  increase  was  primarily  a  result  of  increased  revenues  from  two new
unaffiliated  clients  ($255,700  increase).  At TSI,  consulting fees increased
$32,000 or 48.1% primarily as a result of increased  assets under  management in
certain domestic limited partnerships.

Consulting fees for the three months ended June 30, 2000 increased $516,400,  or
36.1%,  as compared to the three months ended June 30, 1999.  This  increase was
primarily  due to increased  assets under  management.  At TPI, the increase was
primarily due to increased  revenues from Meridian  Horizon Fund, L.P.  ($95,100
increase),  Winston Partners,  L.P. ($36,300  increase) and Security Equity Life
Insurance  Company  ($32,000  increase).  At TBL, the  increase was  primarily a
result  of  increased  revenues  from  two new  unaffiliated  clients  ($255,700
increase).

Database  information sales increased by $181,700,  or 31.4%, for the six months
ended  June 30,  2000 as  compared  to the six months  ended June 30,  1999 as a
result of the Company owning TASS for a different amount of time in each period.
Its  operations  have been included in the statements of income from the date of
acquisition  (ie.  four  months in 1999  versus  six  months in 2000).  Database
information  sales  decreased by $62,300,  or 14.3%,  for the three months ended
June 30,  2000 as compared  to the three  months  ended June 30, 1999 due to the
delayed launch of the TASS+ database, which became available on July 1, 2000 and
the phase out of the previous database.

Commissions decreased by $84,100, or 34%, and $68,600, or 46.8%, for the six and
three  months  ended June 30, 2000 as compared to the six and three months ended
June 30,  1999.  These  decreases  resulted  primarily  from  decreased  trading
activities at TSI.

Performance  fees for the six and three months ended June 30, 2000  decreased by
$32,700,  or 25%, and  $64,400,  or 80%, as compared to the six and three months
ended  June 30,  1999  primarily  as a result of an  incentive  fee paid in 1999
relating to 1998, which did not recur for the year ended December 31, 1999.

Management  expects that during the  remainder of 2000 the Company will continue
to develop relationships with additional entities. The Company is also utilizing
these  relationships  to create  diversified  ways to package and distribute its
proprietary products. In addition, management expects performance fee revenue to
increase during periods of positive  market  conditions,  but management  cannot
predict with any accuracy  whether income from performance fees will continue in
the future due to changing market conditions and other outside factors.

Compensation  expense increased for the six and three months ended June 30, 2000
by  $1,013,700,  or 36.9%,  and $401,700,  or 27.1%,  as compared to the six and
three months ended June 30, 1999.  This  increase  resulted  from the  Company's
acquisition  of TASS,  as well as its  continued  efforts to attract  and retain
qualified employees. These efforts, as well as the acquisition of TASS, resulted
in an increase in the number of employees from 51 at June 30, 1999 to 64 at June
30, 2000.  Compensation  expense also increased as a result of salary  increases


                                       15
<PAGE>

for certain  employees that became effective  January 1, 2000 and as a result of
increased health care costs and bonus accruals due to the increase in the number
of employees.

General   and    administrative    expenses    consist    primarily   of   rent,
telecommunications,  travel  and  entertainment,  professional  fees  and  other
related expenses.  General and administrative expenses increased for the six and
three months ended June 30, 2000 by $386,600 or 22.7%,  and $234,300,  or 26.1%,
as compared to the six and three  months  ended June 30,  1999.  The increase in
general and  administrative  expenses  was  primarily  related to the  Company's
continued  expansion  to service  its growth and the  inclusion  of TASS for six
months  ended June 30, 2000  versus  four  months for the period  ended June 30,
1999.

Consulting  expenses increased $293,800,  or 37.4%, and $137,600,  or 33.3%, for
the six and three  months  ended June 30,  2000 as compared to the six and three
months  ended June 30, 1999  primarily  as a result of the  increase in revenues
from the clients that participate in revenue sharing arrangements.  For example,
TPI and TBL have revenue  sharing  arrangements  with other parties  relating to
certain clients.

Depreciation  increased $66,800,  or 55.6%, and $32,700, or 52%, for the six and
three  months  ended June 30, 2000 as compared to the six and three months ended
June 30, 1999  primarily as a result of fixed asset  purchases  after June 1999.
These purchases consisted of computer equipment for new employees as a result of
the Company's continued expansion,  a software update to the Company's database,
as well as additional servers to upgrade the computer network system in the U.S.
and Bermuda offices.

Amortization  of intangibles  decreased  $298,200,  or 73.2%,  and $241,800,  or
81.6%,  for the six and three  months ended June 30, 2000 as compared to the six
and three  months  ended  June 30,  1999.  These  decreases  are a result of the
completion of the  amortization of customer  contracts  recorded  because of the
TASS acquisition in March 1999.

Equity earnings of investments  increased  $156,500,  or 69.4%, and $22,100,  or
17.9%,  for the six and three  months ended June 30, 2000 as compared to the six
and three months ended June 30, 1999.  This increase was a result of an increase
in the amount  invested by the  Company.  The Company  invested  $500,000 in its
newest  proprietary  product,  American  Masters  Opportunity  Fund, L.P., which
launched June 1, 2000.  The Company also  invested an  additional  $1,050,000 in
Tremont  Broad  Market  Fund,  LDC during the six  months  ended June 30,  2000.
Management  expects  equity  earnings to continue to increase  during periods of
positive  market  conditions,  but  management  cannot predict with any accuracy
whether  such  earnings  will  continue  in the  future due to  changing  market
conditions.

Loss from joint ventures increased $225,900, and $174,400, primarily as a result
of the Company's  proportionate share of losses of FITX Group Limited, offset by
its proportionate share of gains from Tremont MRM Services Limited.

Profitability  is dependent  on the ability of the Company to maintain  existing
client  relationships,  several of which  currently  account  for a  significant
portion of the Company's  revenues,  to increase assets under management for its
clients, and to market its services to new accounts.


                                       16
<PAGE>

Cash provided by operations increased $96,100, or 6.4%, for the six months ended
June 30, 2000 as compared to the six months ended June 30, 1999.  This  increase
was  primarily  a result of an  increase  in net  income as well as  changes  in
accounts receivable,  deferred taxes, and losses from joint ventures,  offset by
changes in accrued  expenses,  prepaid  expenses,  other  assets,  and equity in
earnings of investments. Cash used in investing activities increased as a result
of increased  investing  activities  offset by a return of capital from Gamtree,
L.P. and Tremont MRM Services  Limited.  Cash  provided by financing  activities
decreased  due to issuance of Class B Common  Stock  during the six months ended
June 30, 1999 that did not recur in the six months ended June 30, 2000.

On July 20, 2000, the Company's offer to purchase  200,000 shares of its Class A
Common  Stock at a price  of  $11.50  per  share in cash  (the  "Tender  Offer")
terminated.  After the  completion  of the Tender  Offer,  and  adjusted for the
five-for-four  stock  split  paid on August 8, 2000,  the number of  outstanding
shares of the  Company's  Class A Common  Stock and  Class B Common  Stock  were
1,740,293 and 5,029,333, respectively.

On July 25, 2000, the Company executed a two-year  Revolving  Credit  Promissory
Note,  due on July 31,  2002 (the  "Revolver")  in an amount not to exceed  $2.5
million. On July 26, 2000, the Company drew down $1,975,000 from the Revolver to
fund a portion of the  purchase  of the 200,000  shares of Class A Common  Stock
pursuant  to the Tender  Offer.  The  balance of the  Revolver  will be used for
working capital needs arising from time to time.  Borrowings  under the Revolver
will bear  interest,  at the Company's  option,  at the bank's prime rate or the
London Interbank  Offered Rate plus a margin of 2%. The Revolver is secured by a
pledge of the management fees payable by certain proprietary products to TPI and
TPI's limited  partnership  interest in the American Masters  Opportunity  Fund,
L.P.  which is currently  valued at $1.8  million.  The Company must also comply
with certain debt covenants.

At June 30, 2000 the Company owned 30,000 shares of common stock of a non-public
financial  services  company  formed in 1996.  The shares  were  received by the
Company as a result of an  employee's  participation  as a board  member of such
company. At June 30, 2000, the shares of common stock were valued at zero.

The Company  believes it has adequate  capital  resources and working capital to
bring to market those products  currently in the  developmental  stage, and that
the revenue  stream  from  these,  as well as from  existing  products,  will be
sufficient to support future growth.

The Company is being sued by a former  employee  for alleged  breach of contract
and defamation.  The Company  believes that the suit is without merit;  however,
should the plaintiff  prevail,  the Company  believes that it is likely that the
damages will not be material to the Company's  consolidated  financial condition
or results of operations.

Certain  statements  in this  Management's  Discussion  and Analysis  constitute
"forward  looking  statements"  within  the  meaning of the  Private  Securities
Litigation Reform Act of 1995. Such forward looking statements involve known and
unknown  risks,  uncertainties  and other  factors  which  may cause the  actual
results,  performance, or achievements of the Company to be materially different
from any future results,  performance,  or achievements  expressed or implied by
such forward looking statements.  These forward looking statements were based on
various factors and were derived utilizing  numerous  important  assumptions and
other factors that could


                                       17
<PAGE>

cause  actual  results to differ  materially  from those in the forward  looking
statements,  including,  but not limited  to:  uncertainty  as to the  Company's
future  profitability  and  the  Company's  ability  to  develop  and  implement
operational  and  financial  systems  to  manage  rapidly  growing   operations,
competition  in the Company's  existing and potential  future lines of business,
and other factors.  Other factors and assumptions not identified above were also
involved in the derivation of these forward looking statements,  and the failure
of such other  assumptions to be realized,  as well as other  factors,  may also
cause actual  results to differ  materially  from those  projected.  The Company
assumes no  obligation  to update these  forward  looking  statements to reflect
actual  results,  changes in assumptions  or changes in other factors  affecting
such forward looking statements.


                                       18
<PAGE>

                           PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

Payroll  Express.  In 1991, the Company engaged KPM, Inc. d/b/a/ Payroll Express
("Payroll  Express") to perform  certain  data  processing  services,  including
preparing  Forms 941 and filing them with Internal  Revenue  Service ("IRS") and
paying payroll and other taxes on behalf of the Company.  The Company terminated
its  relationship  with Payroll  Express  upon being  informed by the Chapter 11
Trustee for Payroll  Express that the Company had suffered a potential loss as a
result of a fraudulent  scheme  undertaken by Payroll Express and its principal,
David S. Kast. It appears that Payroll  Express failed to make certain  payments
to the IRS on the Company's behalf and falsely and  fraudulently  misrepresented
to the  Company  the dollar  amount of taxes  actually  paid to the IRS. It also
appears that a substantial portion of these funds  (approximately  $400,000) was
wrongfully  appropriated  by Payroll Express and Kast. This theft has created an
additional  federal tax  liability for the Company in the amount of $307,500 for
the years 1995 and 1996.  These  amounts do not include  interest  or  penalties
since the  Company  has been  informed  by the IRS that,  based upon its initial
review of this matter, interest and penalties may not be assessed.

The Company  has been  reimbursed  by its  insurance  carrier for a  substantial
portion of the above federal tax liability. The Company is also cooperating with
the  authorities in its ongoing  criminal  investigation  of Payroll Express and
Kast  and  has  filed  a  Proof  of  Claim  in the  Payroll  Express  bankruptcy
proceeding.

Vasu.  The Company  has been sued by a former  employee  for  alleged  breach of
contract and defamation. In a decision dated September 21, 1999, the Connecticut
District Court held that the claim for defamation must be arbitrated  under NASD
rules. Plaintiff has not commenced arbitration proceedings.  By Notice of Motion
dated  October 18,  1999,  the Company  moved to dismiss  the  complaint  in its
entirety.  The Company believes that the suit is without merit; however,  should
the plaintiff  prevail,  the Company believes that it is likely that the damages
will not be  material  to the  Company's  consolidated  financial  condition  or
results of operations.

Item 4. Submission of Matters to a Vote of Security Holders

At the  Company's  Annual  Meeting of  Stockholders  held on June 6,  2000.  The
stockholders  elected the following to serve as directors  until the next Annual
Meeting  of  Stockholders  and  until  their  successors  are duly  elected  and
qualified.

                                                   For              Against
                                              ------------------------------

       Sandra L. Manzke                         9,097,876           17,087
       Robert I. Schulman                       9,097,876           17,087
       John L. Keeley, Jr.                      9,097,876           17,087
       Jimmy L. Thomas                          9,097,876           17,087
       Alan A. Rhein                            9,097,876           17,087
       Richard E. O'Brien                       9,097,876           17,087
       Nicola Meaden                            9,097,751           17,212
       Bruce Ruehl                              9,082,391           32,572


                                       19
<PAGE>

The  stockholders  also voted to ratify the  appointment of Ernst & Young LLP to
serve as the Company's  independent auditors for the fiscal year ending December
31, 2000. The vote was as follows:

                         For             Against           Abstain
                   ---------------------------------------------------
                      9,104,751           10,212              -

Item 6.  Exhibits and Reports on Form 8-K

a) Exhibits

The following exhibits are included herein:

     Exhibit 27 - Financial Data Schedule
     Exhibit 10.67 - Revolving Credit Promissory Note - Dated July 25, 2000

b) Reports on Form 8-K

The Company filed a report on Form 8-K dated June 14, 2000  describing the offer
to buy back up to 200,000 shares of the Company's  outstanding shares of Class A
Common Stock. The report also described the five-for-four stock split,  approved
by the Company's Board of Directors,  of both the Company's Class A Common Stock
and Class B Common Stock, with no change in par value. Shareholders of record as
of July 31, 2000 were  eligible  for the stock split which was paid on August 8,
2000.

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 thereunto duly authorized.


                                     Tremont Advisers, Inc.


Date: August 10, 2000                /s/ Stephen T. Clayton
                                     ------------------------------
                                     Stephen T. Clayton
                                     Chief Financial Officer
                                     (Duly authorized Officer and
                                     Principal Financial and Accounting Officer)


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