SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
--------------
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
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 33-96292
Fremont Fund, Limited Partnership
---------------------------------
(Exact Name of Registrant as Specified in Its Charter)
Indiana 35-1949364
- ------- ----------
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
2990 W. 120, Fremont, IN 46737
- ---------------------------------------- -----
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code (219) 833-1505
- ------------------------------------------------------------------------
Former Name, Address and Fiscal Year, if Changed, Since Last Report
No such changes occurred
Indicate by check [X] whether the registrant (1)has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes [X] No [ ]
Part 1 - FINANCIAL INFORMATION
Item 1. Financial Statements.
No change has occurred to the financial statements for the Registrant since
the filing of Pre-effective Amendment No. 6 to Form S-1 at registration no.
33-96292 as the proceeds from the sale of Units have been deposited to Escrow
pending the sale of the face amount of $600,000 of Units which will permit the
General Partner of the Registrant to terminate the Escrow and commence
business. The unaudited financial statements for the Registrant for the nine
months ended September 30, 1996, are attached hereto and made a part hereof.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
The Registrant commenced the sale of Units upon the effective date of the
Prospectus on August 12, 1996, at the price established by the General Partner
of $1,000 per Unit. The price per Unit has no relationship to an expected
market value of the Units as no such market is expected to develop. No
operations will commence until the face amount of $600,000 of Units is sold.
Part II - OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
(a) None (b) No reports on Form 8-K
SIGNATURES
Pursuant to the requirements of Section 13 or 15 (d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this Form 10-Q for the
period ended September 30, 1996, to be signed on its behalf by the
undersigned, thereunto duly authorized.
Registrant: Fremont Fund, Limited Partnership
By Pacult Asset Management, Inc.
Its General Partner
Date: April 23, 1997 By: s/ Ms. Shira Del Pacult
Ms. Shira Del Pacult
Sole Director, Sole
Shareholder, President and
Treasurer
<F1>********************************************************************
FREMONT FUND, LIMITED PARTNERSHIP
(A Development Stage Enterprise)
UNAUDITED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996
GENERAL PARTNER:
Pacult Asset Management, Inc.
2990 West 120
Fremont, Indiana 46737
<PAGE>
FREMONT FUND, LIMITED PARTNERSHIP
(A Development Stage Enterprise)
<TABLE>
BALANCE SHEET
AS OF SEPTEMBER 30, 1996
ASSETS
<CAPTION>
September 30,
1996
<S> <C>
Cash $ 1,924
Organization costs (Note 1) 36,247
-------
$38,171
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES
Due to general partner $36,247
PARTNERS' CAPITAL
Limited partners - (1 unit)
Initial capital contribution 1,000
Deficit accumulated during the
development stage (38)
General partner - (1 unit)
Initial capital contribution 1,000
Deficit accumulated during the
development stage (38)
-------
Total Partners' Capital 1,924
-------
$38,171
</TABLE>
The accompanying notes are an integral part
of the financial statements
F-2
<PAGE>
FREMONT FUND, LIMITED PARTNERSHIP
(A Development Stage Enterprise)
<TABLE>
STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996
<CAPTION>
Cumulative Period Nine Months Initial Period
Ended Ended Ended
September 30, September 30, December 31,
1996 1996 1995
----------------- ----------- --------------
<S> <C> <C> <C>
REVENUES $ $ $
__________ __________ __________
Total Revenues __________ __________ __________
EXPENSES
Bank charges 76 2 74
--------- --------- ---------
Total Expenses 76 2 74
NET INCOME (LOSS) $ (76) $ (2) $ (74)
NET INCOME (LOSS) -
Limited partnership unit $ (38) $ (1) $ (37)
General partnership unit $ (38) $ (1) $ (37)
</TABLE>
The accompanying notes are an integral part
of the financial statements
F-3
<PAGE>
FREMONT FUND, LIMITED PARTNERSHIP
(A Development Stage Enterprise)
<TABLE>
STATEMENT OF PARTNERS' EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996
<CAPTION>
Total
Limited General Partners'
Partners Partners Equity
Amount Units Amount Units Amount Units
<S> <C> <C> <C> <C> <C> <C>
Initial Partner Contribution $1,000 1 $1,000 1 $2,000 2
Net loss - 1995 (37) (37) (74)
Balance - December 31, 1995 963 963 1,926
Net loss - 1996 (1) (1) (2)
------- ------- -------
Balance - September 30, 1996 $ 962 $ 962 $1,924
Value per unit at December 31, 1995 $963
Total partnership units at
December 31, 1995 2
Value per unit at September 30, 1996 $962
Total partnership units at
September 30, 1996 2
</TABLE>
The accompanying notes are an integral part
of the financial statements
F-4
<PAGE>
FREMONT FUND, LIMITED PARTNERSHIP
(A Development Stage Enterprise)
<TABLE>
STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996
<CAPTION>
Cumulative Period Nine Months Initial Period
Ended Ended Ended
September 30, September 30, December 31,
1996 1996 1995
--------------- ----------- --------------
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING
ACTIVITIES -
Net loss $ (76) $ (2) $ (74)
Net Cash Used In
Operating Activities $ (76) $ (2) $ (74)
CASH FLOWS FROM INVESTING
ACTIVITIES ________ ________ ________
Net Cash Provided By
Investing Activities ________ ________ ________
CASH FLOWS FROM FINANCING
ACTIVITIES -
Initial partner
contributions 2,000 ________ 2,000
Net Cash Provided By
Investing Activities 2,000 ________ 2,000
NET INCREASE (DECREASE)
IN CASH 1,924 (2) 1,926
CASH -
Beginning of period ________ 1,926 ________
End of period $1,924 $1,924 $1,926
</TABLE>
The accompanying notes are an integral part
of the financial statements
F-5
<PAGE>
FREMONT FUND, LIMITED PARTNERSHIP
(A Development Stage Enterprise)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996 AND DECEMBER 31, 1995
1. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES
Fremont Fund, Limited Partnership (the Fund) is a limited partnership
engaged in the development stage. The Partnership was formed January 12,
1995. The Fund intends to raise a minimum of $600,000 and a maximum of
1996. $5,000,000 in capital from limited partners. Upon the raising of the
minimum, the Fund will engage in speculative trading of futures and option
contracts in commodities. Pacult Asset Management, Inc. is the
General Partner and the commodity pool operator (CPO) of Fremont Fund,
Limited Partnership. The commodity trading advisor (CTA) is Michael J.
Frischmeyer. He will have the authority to trade so much of the Fund's
equity as is allocated to him by the General Partner. CPO and CTA are
defined terms in the Commodity Exchange Act.
Income taxes: In accordance with the generally accepted method of
presenting partnership financial statements, the financial statements do not
include assets and liabilities of the partners, including their obligation
for income taxes on their distributive shares of the net income of the Fund
or their rights to refunds on its net loss.
Organizational costs: Organizational costs will be capitalized and amortized
over twenty-four months on a straight line method starting when operations
begin, payable from profits or capital subject to a 2% annual capital
limitation. All organizational costs paid to date have been capitalized as of
September 30, 1996 and December 31, 1995, respectively and no amortization
expense was charged for either period.
Registration Costs: Costs incurred for the initial registration with the
Securities and Exchange Commission, National Association of Securities
Dealers, Inc., Commodity Futures Trading Commission, National Futures
Association (the "NFA") and the states, where the offering will be made, will
be accumulated, deferred, and charged against the gross proceeds of the
Offering at the Initial Closing. Recurring registration costs, if any, will be
charged to expense as incurred.
F-6
<PAGE>
FREMONT FUND, LIMITED PARTNERSHIP
(A Development Stage Enterprise)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996 AND DECEMBER 31, 1995
2. FEES
The Fund will be charged the following fees on a monthly basis beginning
when trading commences.
- - A management fee of 4% (annual rate) of the Fund's net assets allocated to
the CTA to trade will be paid to the CTA and 2% of equity to the Fund's General
Partner.
- - An incentive fee of 15% of "new trading profits" will be paid to the General
Partner for payment to the CTA. "New trading profits" includes all income
earned by the CTA and expenses allocated to his activity. In the event that
trading produces a loss, no incentive fees will be paid and all losses will be
carried over to the following months until profits from trading exceed the
loss.
- - The Fund will pay fixed commissions of 12% (annual rate) of net assets
allocated to trading, payable monthly, to the Introducing Broker affiliated
with the General Partner. The Affiliated Introducing Broker will pay the
costs to clear the trades to the futures commission merchant and all Pit
Brokerage costs which shall include the NFA and exchange fees.
3. STATEMENT OF OPERATIONS/DEVELOPMENT STAGE ACTIVITIES
No information other than bank service charges on the statements of
operations has been presented because, as of September 30, 1996, the
partnership has not commenced business to produce either income or
expenses from operations.
As of September 30, 1996, the partnership is still in a development stage.
It is in the process of trying to raise funding for speculative trading of
future and option contracts in commodities.
F-7
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-12-1996
<PERIOD-END> SEP-30-1996
<CASH> 1,924
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 38,171
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 38,171
<CURRENT-LIABILITIES> 36,247
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 1,924
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 76
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (76)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
