<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>6
<FILENAME>hqh_audit.txt
<TEXT>
November 19, 2002

To the Shareholders and Trustees of
H&Q Healthcare Investors

In planning and performing our audit of the financial statements
of H&Q Healthcare Investors the Fund for the year ended
September 30, 2002, we considered its internal control, including
control activities for safeguarding securities, in order to determine
our auditing procedures for the purpose of expressing our opinion
on the financial statements and to comply with the requirements
of Form N-SAR, not to provide assurance on internal control.

The management of the Fund is responsible for establishing and
maintaining internal control.  In fulfilling this responsibility,
estimates and judgments by management are required to assess
the expected benefits and related costs of controls.  Generally,
controls that are relevant to an audit pertain to the entitys objective
of preparing financial statements for external purposes that are
fairly presented in conformity with generally accepted accounting
principles.  Those controls include the safeguarding of assets
against unauthorized acquisition, use or disposition.

Because of inherent limitations in internal control, errors or fraud
may occur and not be detected.  Also, projection of any evaluation
of internal control to future periods is subject to the risk that controls
may become inadequate because of changes in conditions or that the
effectiveness of their design and operation may deteriorate.

Our consideration of internal control would not necessarily disclose
all matters in internal control that might be material weaknesses under
standards established by the American Institute of Certified Public
Accountants.  A material weakness is a condition in which the design
or operation of one or more of the internal control components does not
reduce to a relatively low level the risk that misstatements caused by
error or fraud in amounts that would be material in relation to the
financial statements being audited may occur and not be detected
within a timely period by employees in the normal course of performing
their assigned functions.  However, we noted no matters involving
internal control and its operation, including controls for safeguarding
securities, that we consider to be material weaknesses as defined above
as of September 30, 2002.

This report is intended solely for the information and use of management
and the Trustees of the Fund and the Securities and Exchange Commission
and is not intended to be and should not be used by anyone other than these
specified parties.


</TEXT>
</DOCUMENT>
