FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(X) QUARTERLY REPORT UNDER SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
OR ( ) TRANSITION REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter ended September 30, 1999
Commission File Number 0-28336
SMITH BARNEY MID-WEST FUTURES FUND L.P. II
(Exact name of registrant as specified in its charter)
New York 13-3772374
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
c/o Smith Barney Futures Management LLC
390 Greenwich St. - 1st Fl.
New York, New York 10013
(Address and Zip Code of principal executive offices)
(212) 723-5424
(Registrant's telephone number, including area code)
Indicate by check mark 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
<PAGE>
SMITH BARNEY MID-WEST FUTURES FUND L.P. II
FORM 10-Q
INDEX
Page
Number
PART I - Financial Information:
Item 1. Financial Statements:
Statement of Financial Condition at
September 30, 1999 and December 31,
1998 (unaudited). 3
Statement of Income and Expenses and
Partners' Capital for the three and
nine months ended September 30, 1999
and 1998 (unaudited). 4
Notes to Financial Statements
(unaudited) 5 - 8
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations 9 - 12
Item 3. Quantitative and Qualitative
Disclosures of Market Risk 13 - 14
PART II - Other Information 15
2
<PAGE>
PART I
Item 1. Financial Statements
SMITH BARNEY MID-WEST FUTURES FUND L.P. II
STATEMENT OF FINANCIAL CONDITION
(Unaudited)
September 30, December 31,
1999 1998
-------------- -------------
Assets:
Equity in commodity futures trading account:
Cash $ 77,677,973 $ 87,033,493
Net unrealized appreciation (depreciation)
on open futures contracts (1,534,338) 9,603,763
------------ ------------
76,143,635 96,637,256
Interest receivable 235,640 255,940
------------ ------------
$ 76,379,275 $ 96,893,196
============ ============
LIABILITIES AND PARTNERS' CAPITAL:
Liabilities:
Accrued expenses:
Commissions $ 381,896 $ 484,466
Management fees 253,107 321,183
Administrative fees 63,277 80,296
Other 65,180 53,822
Redemptions payable 407,949 1,778,990
------------ ------------
1,171,409 2,718,757
------------ ------------
Partners' Capital:
General Partner, 608.9156 Unit
equivalents outstanding
in 1999 and 1998 982,199 1,088,918
Limited Partners, 46,016.3059 and
52,052.8275 Units of Limited
Partnership Interest outstanding
in 1999 and 1998, respectively 74,225,667 93,085,521
------------ ------------
75,207,866 94,174,439
------------ ------------
$ 76,379,275 $ 96,893,196
============ ============
See Notes to Financial Statements.
3
<PAGE>
SMITH BARNEY MID-WEST FUTURES FUND L.P. II
STATEMENT OF INCOME AND EXPENSES AND PARTNERS' CAPITAL
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
---------------------------- -----------------------------
1999 1998 1999 1998
---------------------------- -----------------------------
<S> <C> <C> <C> <C>
Income:
Net gains (losses) on trading of commodity
futures:
Realized gains (losses) on closed positions $ (59,312) $ 58,379 $ 7,339,318 $ (6,893,386)
Change in unrealized gains/losses on open
positions (10,026,878) 28,506,170 (11,138,101) 19,201,026
------------- ------------- ------------- -------------
(10,086,190) 28,564,549 (3,798,783) 12,307,640
Less, brokerage commissions including
clearing fees of
$18,767, $21,803, $61,486
and $64,559 respectively (1,285,249) (1,461,753) (4,076,432) (4,293,932)
------------- ------------- ------------- -------------
Net realized and unrealized gains (losses) (11,371,439) 27,102,796 (7,875,215) 8,013,708
Interest income 753,167 820,501 2,181,689 2,614,483
------------- ------------- ------------- -------------
(10,618,272) 27,923,297 (5,693,526) 10,628,191
------------- ------------- ------------- -------------
Expenses:
Management fees 817,574 905,102 2,525,120 2,666,689
Administrative fees 204,394 226,275 631,281 666,671
Incentive fees -- 832,948 -- 832,948
Other 30,087 19,662 68,457 61,014
------------- ------------- ------------- -------------
1,052,055 1,983,987 3,224,858 4,227,322
------------- ------------- ------------- -------------
Net income (loss) (11,670,327) 25,939,310 (8,918,384) 6,400,869
Additions 1,751,000 -- 1,751,000 --
Redemptions (1,749,789) (2,710,127) (11,799,189) (6,095,990)
------------- ------------- ------------- -------------
Net increase (decrease) in Partners' capital (11,669,116) 23,229,183 (18,966,573) 304,879
Partners' capital, beginning of period 86,876,982 78,392,770 94,174,439 101,317,074
------------- ------------- ------------- -------------
Partners' capital, end of period $ 75,207,866 $ 101,621,953 $ 75,207,866 $ 101,621,953
============= ============= =========== =============
Net asset value per Unit
(46,625.2215 and 54,459.7334 Units
outstanding at September 30, 1999 and
1998, respectively) $ 1,613.03 $ 1,866.00 $ 1,613.03 $ 1,866.00
=========== =========== ========== =========
Net income (loss) per Unit of Limited Partnership
Interest and General Partner Unit equivalent $ (247.38) $ 470.04 $ (175.26) $ 131.87
=========== =========== ========= ========
</TABLE>
See Notes to Financial Statements
4
<PAGE>
Smith Barney Mid-West Futures Fund L.P. II
Notes to Financial Statements
September 30, 1999
(Unaudited)
1. General:
Smith Barney Mid-West Futures Fund L.P. II,(the "Partnership") is a limited
partnership which was organized on June 3, 1994 under the partnership laws of
the State of New York to engage in the speculative trading of a diversified
portfolio of commodity interests including futures contracts, options and
forward contracts. The commodity interests that are traded by the Partnership
are volatile and involve a high degree of market risk. The Partnership commenced
trading operations on September 1, 1994.
Smith Barney Futures Management LLC acts as the general partner (the
"General Partner") of the Partnership. The General Partner changed its form of
organization from a corporation to a limited liability company. The
Partnership=s commodity broker is Salomon Smith Barney Inc. ("SSB"). SSB is an
affiliate of the General Partner. The General Partner is wholly owned by Salomon
Smith Barney Holdings Inc. ("SSBH"), which is the sole owner of SSB. SSBH is a
wholly owned subsidiary of Citigroup Inc. All trading decisions for the
Partnership are being made by John W. Henry & Company, Inc. (the "Advisor").
The accompanying financial statements are unaudited but, in the opinion of
management, include all adjustments (consisting only of normal recurring
adjustments) necessary for a fair presentation of the Partnership's financial
condition at September 30, 1999 and December 31, 1998 (unaudited) and the
results of its operations for the three and nine months ended September 30, 1999
and 1998. These financial statements present the results of interim periods and
do not include all disclosures normally provided in annual financial statements.
It is suggested that these financial statements be read in conjunction with the
financial statements and notes included in the Partnership's annual report on
Form 10-K filed with the Securities and Exchange Commission for the year ended
December 31, 1998.
Due to the nature of commodity trading, the results of operations for the
interim periods presented should not be considered indicative of the results
that may be expected for the entire year.
5
<PAGE>
2. Net Asset Value Per Unit:
Changes in net asset value per Unit for the three and nine months ended
September 30, 1999 and 1998 were as follows:
THREE-MONTHS ENDED NINE-MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1999 1998 1999 1998
Net realized and unrealized
gains (losses) $ (241.07) $ 491.20 $ (153.92) $ 160.84
Interest income 15.92 14.78 44.73 45.88
Expenses (22.23) (35.94) (66.07) (74.85)
-------- ------- -------- ------
Increase (decrease) for
period (247.38) 470.04 (175.26) 131.87
Net Asset Value per Unit,
beginning of period 1,860.41 1,395.96 1,788.29 1,734.13
-------- -------- -------- --------
Net Asset Value per Unit,
end of period $1,613.03 $1,866.00 $1,613.03 $1,866.00
======== ======== ======== ========
3. Trading Activities:
The Partnership was formed for the purpose of trading contracts in a
variety of commodity interests, including derivative financial instruments and
derivative commodity instruments. The results of the Partnership's trading
activity are shown in the statement of income and expenses.
The Customer Agreement between the Partnership and SSB gives the
Partnership the legal right to net unrealized gains and losses.
All of the commodity interests owned by the Partnership are held for
trading purposes. The fair value of these commodity interests, including options
thereon, if applicable, at September 30, 1999 and December 31, 1998 was
$(1,534,338) and $9,603,763, respectively, and the average fair value during the
nine and twelve months then ended, based on monthly calculation, was $4,403,024
and $5,751,592, respectively.
4. Financial Instrument Risk:
The Partnership is party to financial instruments with off-balance sheet
risk, including derivative financial instruments and derivative commodity
instruments, in the normal course of its business. These financial instruments
6
<PAGE>
may include forwards, futures and options, whose value is based upon an
underlying asset, index, or reference rate, and generally represent future
commitments to exchange currencies or cash flows, to purchase or sell other
financial instruments at specific terms at specified future dates, or, in the
case of derivative commodity instruments, to have a reasonable possibility to be
settled in cash, through physical delivery or with another financial instrument.
These instruments may be traded on an exchange or over-the-counter ("OTC").
Exchange traded instruments are standardized and include futures and certain
option contracts. OTC contracts are negotiated between contracting parties and
include forwards and certain options. Each of these instruments is subject to
various risks similar to those related to the underlying financial instruments
including market and credit risk. In general, the risks associated with OTC
contracts are greater than those associated with exchange traded instruments
because of the greater risk of default by the counterparty to an OTC contract.
Market risk is the potential for changes in the value of the financial
instruments traded by the Partnership due to market changes, including interest
and foreign exchange rate movements and fluctuations in commodity or security
prices. Market risk is directly impacted by the volatility and liquidity in the
markets in which the related underlying assets are traded.
Credit risk is the possibility that a loss may occur due to the failure of
a counterparty to perform according to the terms of a contract. Credit risk with
respect to exchange traded instruments is reduced to the extent that an exchange
or clearing organization acts as a counterparty to the transactions. The
Partnership's risk of loss in the event of counterparty default is typically
limited to the amounts recognized in the statement of financial condition and
not represented by the contract or notional amounts of the instruments. The
Partnership has concentration risk because the sole counterparty or broker with
respect to the Partnership's assets is SSB.
The General Partner monitors and controls the Partnership's risk exposure
on a daily basis through financial, credit and risk management monitoring
systems and, accordingly believes that it has effective procedures for
evaluating and limiting the credit and market risks to which the Partnership is
subject. These monitoring systems allow the General Partner to statistically
analyze actual trading results with risk adjusted performance indicators and
correlation statistics. In addition, on-line monitoring systems provide account
analysis of futures, forwards and options positions by sector, margin
requirements, gain and loss transactions and collateral positions.
The notional or contractual amounts of these instruments, while not
recorded in the financial statements, reflect the extent of the Partnership's
involvement in these instruments.
7
<PAGE>
At September 30, 1999, the notional or contractual amounts of the
Partnership's commitment to purchase and sell these instruments was
$733,175,974 and $641,494,232, respectively, as detailed below. All of
these instruments mature within one year of September 30, 1999. However,
due to the nature of the Partnership=s business, these instruments may not
be held to maturity. At September 30, 1999, the fair value of the
Partnership's derivatives, including options thereon, if applicable, was
$(1,534,338), as detailed below.
SEPTEMBER 30, 1999
(Unaudited)
NOTIONAL OR CONTRACTUAL
AMOUNT OF COMMITMENTS
TO PURCHASE TO SELL FAIR VALUE
Currencies
- - OTC Contracts $158,243,669 $ 20,912,905 $ 218,940
Interest Rates U.S. 222,387,300 42,002,625 (233,300)
Interest Rates Non-U.S 352,545,005 554,308,853 855,007
Metals -- 13,978,580 (2,251,420)
Indices -- 10,291,269 (123,565)
------------ ----------- ---------
Totals $733,175,974 $641,494,232 $ (1,534,338)
=========== =========== =========
At December 31, 1998, the notional or contractual amounts of the
Partnership's commitment to purchase and sell these instruments was
$586,519,983 and $601,838,838, respectively, and the fair value of the
Partnership's derivatives, including options thereon, if applicable, was
$9,603,763, as detailed below.
DECEMBER 31, 1998
(Unaudited)
NOTIONAL OR CONTRACTUAL
AMOUNT OF COMMITMENTS
TO PURCHASE TO SELL FAIR VALUE
Currencies
- - OTC Contracts $ 49,170,952 $ 15,254,946 $ 507,509
Interest Rates U.S. 92,333,813 104,166,375 (699,138)
Interest Rates Non-U.S 445,015,218 474,903,517 9,800,592
Metals -- 7,514,000 (5,200)
----------- ----------- ----------
Totals $586,519,983 $601,838,838 $ 9,603,763
=========== =========== =========
8
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
Liquidity and Capital Resources
The Partnership does not engage in the sale of goods or services. Its only
assets are its equity in its commodity futures trading account, net unrealized
appreciation (depreciation) on open futures and forward contracts, commodity
options, if applicable, and interest receivable. Because of the low margin
deposits normally required in commodity futures trading, relatively small price
movements may result in substantial losses to the Partnership. While substantial
losses could lead to a decrease in liquidity, no such losses occurred in the
third quarter of 1999.
The Partnership's capital consists of the capital contributions of the
partners as increased or decreased by gains or losses on commodity futures
trading, expenses, interest income, redemptions of Units and distributions of
profits, if any.
For the nine months ended September 30, 1999, Partnership capital decreased
20.1% from $94,174,439 to $75,207,866. This decrease was primarily attributable
to the redemption of 6,977.7120 Units resulting in an outflow of $11,799,189
coupled with a net loss from operations of $8,918,384 which was partially offset
by additional sales of 941.1904 Units totaling $1,751,000 for the nine months
ended September 30, 1999. Future redemptions can impact the amount of funds
available for investments in commodity contract positions in subsequent periods.
Risk of Computer System Failure (Year 2000 Issue)
The Year 2000 issue is the result of existing computers in many businesses
using only two digits to identify a year in the date field. These computers and
programs, often referred to as "information technology," were designed and
developed without considering the impact of the upcoming change in the century.
If not corrected, many computer applications could fail or create erroneous
results at the Year 2000. Such systems and processes are dependent on correctly
identifying dates in the next century.
The General Partner administers the business of the Partnership through
various systems and processes maintained by SSBH and SSB. In addition, the
operation of the Partnership is dependent on the capability of the Partnership's
Advisors, the brokers and exchanges through which the Advisors trade, and other
third parties to prepare adequately for the Year 2000 impact on their systems
and processes. The Partnership itself has no systems or information technology
applications relevant to its operations.
The General Partner, SSB, SSBH and their parent organization Citigroup Inc.
have undertaken a comprehensive, firm-wide evaluation of both internal and
9
<PAGE>
external systems (systems related to third parties) to determine the specific
modifications needed to prepare for the year 2000. The combined Year 2000
program in SSB is expected to cost approximately $140 million over the four
years from 1996 through 1999, and has involved over 450 people. As of June 30,
1999, SSB has completed all compliance and certification work.
The systems and components supporting the General Partner's business that
require remediation have been brought into Year 2000 compliance. Final testing
and certification was completed as of June 30, 1999.
This expenditure and the General Partner's resources dedicated to the
preparation for Year 2000 do not and will not have a material impact on the
operation or results of the Partnership.
The General Partner has received statements from the Advisors that they
have completed their Year 2000 remediation programs.
The most likely and most significant risk to the Partnership associated
with the lack of Year 2000 readiness is the failure of outside organizations,
including the commodities exchanges, clearing organizations, or regulators with
which the Partnership interacts to resolve their Year 2000 issues in a timely
manner. This risk could involve the inability to determine the value of the
Partnership at some point in time and would make effecting purchases or
redemptions of Units in the Partnership infeasible until such valuation was
determinable.
SSB has successfully participated in industry-wide testing including: The
Streetwide Beta Testing organized by the Securities Industry Association (SIA),
a government securities clearing test with the Federal Reserve Bank of New York,
The Depository Trust Company, and The Bank of New York, and the Futures Industry
Association participants test. The firm also participated in the streetwide
testing that was conducted from March through May 1999.
It is possible that problems may occur that would require some time to
repair. Moreover, it is possible that problems will occur outside SSBH and the
General Partner for which SSBH or the General Partner could experience a
secondary effect. Consequently, SSBH and the General Partner have prepared
comprehensive, written contingency plans so that alternative procedures and a
framework for critical decisions are defined before any potential crisis occurs.
The goal of year 2000 contingency planning is a set of alternate procedures
to be used in the event of a critical system failure by a supplier or
counterparty. Planning work was completed in January 1999, and testing of
alternative procedures will be completed in the third and fourth quarters of
1999.
10
<PAGE>
Results of Operations
During the Partnership's third quarter of 1999, the net asset value per
unit decreased 13.3% from $1,860.41 to $1,613.03 as compared to an increase of
33.7% in the third quarter of 1998. The Partnership experienced a net trading
loss before brokerage commissions and related fees in the third quarter of 1999
of $10,086,190. These losses were primarily attributable to the trading of
commodity futures in currencies, U.S. and non-U.S. interest rates, metals and
indices. The Partnership experienced a net trading gain before brokerage
commissions and related fees in the third quarter of 1998 of $28,564,549. Gains
were recognized in the trading of commodity futures in currencies, U.S. and
non-U.S. interest rates and metals and were partially offset by losses in
indices.
Commodity futures markets are highly volatile. Broad price fluctuations and
rapid inflation increase the risks involved in commodity trading, but also
increase the possibility of profit. The profitability of the Partnership depends
on the existence of major price trends and the ability of the Advisor to
identify correctly those price trends. Price trends are influenced by, among
other things, changing supply and demand relationships, weather, governmental,
agricultural, commercial and trade programs and policies, national and
international political and economic events and changes in interest rates. To
the extent that market trends exist and the Advisor is able to identify them,
the Partnership expects to increase capital through operations.
Interest income on 80% of the Partnership's average daily equity was earned
at the monthly average 30 day U.S. Treasury bill rate. Interest income for the
three and nine months ended September 30, 1999 decreased by $67,334 and
$432,794, respectively, as compared to the corresponding periods in 1998. The
decrease in interest income is primarily the result of the effect of redemptions
on the Partnership=s equity maintained in cash during the nine month period.
Brokerage commissions are calculated on the adjusted net asset value on the
last day of each month and, therefore, vary according to trading performance,
additions and redemptions. Accordingly, they must be analyzed in relation to the
fluctuations in the monthly net asset values. Commissions and fees for the three
and nine months ended September 30, 1999 decreased by $176,504 and $217,500,
respectively, as compared to the corresponding periods in 1998.
All trading decisions for the Partnership are currently being made by the
Advisor. Management fees are calculated as a percentage of the Partnership's net
asset value as of the end of each month and are affected by trading performance,
additions and redemptions. Management fees for the three and nine months ended
September 30, 1999 decreased by $87,528 and $141,569, respectively, as compared
to the corresponding periods in 1998.
11
<PAGE>
Administrative fees are paid to the General Partner for administering the
business and affairs of the Partnership. These fees are calculated as a
percentage of the Partnership=s net asset value as of the end of each month and
are affected by trading performance, additions and redemptions. Administrative
fees for the three and nine months ended September 30, 1999 decreased by $21,881
and $35,390, respectively, as compared to the corresponding periods in 1998.
Incentive fees are based on the new trading profits generated by the
Advisor as defined in the advisory agreement between the Partnership, the
General Partner and the Advisor. There were no incentive fees earned for the
three and nine months ended September 30, 1999. Trading performance for the
three and nine months ended September 30, 1998 resulted in incentive fees of
$832,948.
12
<PAGE>
Item 3. Quantitative and Qualitative Disclosures of Market Risk
The Partnership is a speculative commodity pool. The market sensitive
instruments held by it are acquired for speculative trading purposes, and all or
substantially all of the Partnership's assets are subject to the risk of trading
loss. Unlike an operating company, the risk of market sensitive instruments is
integral, not incidental, to the Partnership's main line of business.
Market movements result in frequent changes in the fair market value of the
Partnership's open positions and, consequently, in its earnings and cash flow.
The Partnership's market risk is influenced by a wide variety of factors,
including the level and volatility of interest rates, exchange rates, equity
price levels, the market value of financial instruments and contracts, the
diversification effects among the Partnership's open positions and the liquidity
of the markets in which it trades.
The Partnership rapidly acquires and liquidates both long and short
positions in a wide range of different markets. Consequently, it is not possible
to predict how a particular future market scenario will affect performance, and
the Partnership's past performance is not necessarily indicative of its future
results.
Value at Risk is a measure of the maximum amount which the Partnership
could reasonably be expected to lose in a given market sector. However, the
inherent uncertainty of the Partnership's speculative trading and the recurrence
in the markets traded by the Partnership of market movements far exceeding
expectations could result in actual trading or non-trading losses far beyond the
indicated Value at Risk or the Partnership's experience to date (i.e., "risk of
ruin"). In light of the foregoing as well as the risks and uncertainties
intrinsic to all future projections, the inclusion of the quantification
included in this section should not be considered to constitute any assurance or
representation that the Partnership's losses in any market sector will be
limited to Value at Risk or by the Partnership's attempts to manage its market
risk.
13
<PAGE>
The following table indicates the trading Value at Risk associated with the
Partnership's open positions by market category as of September 30, 1999. All
open position trading risk exposures of the Partnership have been included in
calculating the figures set forth below. As of September 30, 1999, the
Partnership's total capitalization was $75,207,866. There has been no material
change in the trading Value at Risk information previously disclosed in the Form
10-K for the year ended December 31, 1998.
September 30, 1999
(Unaudited)
% of Total
Market Sector Value at Risk Capitalization
Currencies $ 3,037,986 4.04%
Interest rates U.S. 1,213,500 1.61%
Interest rates Non-U.S 4,473,426 5.95%
Metals 865,600 1.15%
Indices 513,552 0.68%
------------ ------
Total $10,104,064 13.43%
============ =====
14
<PAGE>
PART II OTHER INFORMATION
Item 1. Legal Proceedings
For information concerning a purported class action against numerous
broker-dealers including Salomon Smith Barney, see the description that
appears in the sixth paragraph under the caption Item 3. "Legal
Proceedings" on Form 10-K for the year ending December 31, 1998. SSBH has
filed a motion to dismiss the amended complaint.
Item 2. Changes in Securities and Use of Proceeds
The Partnership continues to offer units at the net asset value per
Unit as of the end of each quarter. For the three months ended September
30, 1999, there were additional sales of 941.1904 Units totaling
$1,751,000.
Proceeds from the sale of additional Units are used in the trading of
commodity interests including futures contracts, options and forward
contracts.
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. (a) Exhibits - None
(b) Reports on Form 8-K - None
15
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15 (d) 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.
SMITH BARNEY MID-WEST FUTURES FUND L.P. II
By: Smith Barney Futures Management LLC
(General Partner)
By: /s/ David J. Vogel, President
David J. Vogel, President
Date: 11/12/99
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
By: Smith Barney Futures Management LLC (General Partner)
By: /s/ David J. Vogel, President
David J. Vogel, President
Date: 11/12/99
By: /s/ Daniel A. Dantuono
Daniel A. Dantuono
Chief Financial Officer and
Director
Date: 11/12/99
16
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0001013167
<NAME> Smith Barney Mid - West Futures Fund L.P. II
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 77,677,973
<SECURITIES> (1,534,338)
<RECEIVABLES> 235,640
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 76,379,275
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 76,379,275
<CURRENT-LIABILITIES> 1,171,409
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 75,207,866
<TOTAL-LIABILITY-AND-EQUITY> 76,379,275
<SALES> 0
<TOTAL-REVENUES> (5,693,526)
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,224,858
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (8,918,384)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (8,918,384)
<EPS-BASIC> (175.26)
<EPS-DILUTED> 0
</TABLE>
