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, 1998
Commission File Number 0-24111
SMITH BARNEY WESTPORT FUTURES FUND L.P.
(Exact name of registrant as specified in its charter)
New York 13-3939393
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
c/o Smith Barney Futures Management Inc.
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 WESTPORT FUTURES FUND L.P.
FORM 10-Q
INDEX
Page
Number
PART I - Financial Information:
Item 1. Financial Statements:
Statement of Financial Condition at
September 30, 1998 and December 31,
1997 3
Statement of Income and Expenses and
Partners' Capital for the
three and nine months ended September 30,
1998 and for the period from August 1, 1997
(commencement of trading operations)
to September 30, 1997. 4
Notes to Financial Statements 5 - 9
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations 10 - 12
Item 3. Quantitative and Qualitative Disclosures
of Market Risk 13
PART II - Other Information 14 - 16
<PAGE>
PART I
Item 1. Financial Statements
Smith Barney Westport Futures Fund L.P.
STATEMENT OF FINANCIAL CONDITION
September 30, December 31,
1998 1997
ASSETS:
------------ ------------
(Unaudited)
Equity in commodity futures trading account:
Cash and cash equivalents $103,638,194 $ 94,452,401
Net unrealized appreciation
on open futures contracts 22,524,827 8,075,897
------------ ------------
126,163,021 102,528,298
Interest receivable 345,663 339,134
Other assets - 161,916
------------ ------------
$126,508,684 $103,029,348
============ ============
LIABILITIES AND PARTNERS' CAPITAL:
Liabilities:
Accrued expenses:
Commissions 685,255 558,075
Management fees 418,888 341,439
Incentive fees 972,979 834,386
Other 156,920 39,841
Redemptions payable 1,364,509 -
------------ ------------
3,598,551 1,773,741
------------ ------------
Partners' Capital:
General Partner, 1,212.9836 and 1,002.9801
Unit equivalents outstanding in 1998 and
1997, respectively 1,314,947 1,014,504
Limited Partners, 112,166.1453 and 99,102.5475
Units of Limited Partnership Interest
outstanding in 1998 and 1997, respectively 121,595,186 100,241,103
------------ ------------
122,910,133 101,255,607
------------ ------------
$126,508,684 $103,029,348
============ ============
See Notes to Financial Statements.
3
<PAGE>
SMITH BARNEY WESTPORT FUTURES FUND L.P.
STATEMENT OF INCOME AND EXPENSES AND PARTNERS' CAPITAL
(UNAUDITED)
<TABLE>
<CAPTION>
PERIOD FROM
AUGUST 1,1997
THREE (COMMENCEMENT 0F NINE
MONTHS ENDED TRADING OPERATIONS) MONTHS ENDED
SEPTEMBER 30, TO SEPTEMBER 30, SEPTEMBER 30,
------------- -------------- -------------
1998 1997 1998
<S> <C> <C> <C>
Income:
Net gains (losses) on trading of commodity
futures:
Realized gains (losses) on closed positions $ (6,778,746) $ (3,985,542) $ 1,071,715
Change in unrealized gains/losses on open
positions 25,772,528 1,899,298 14,448,930
_____________ _____________ _____________
18,993,782 (2,086,244) 15,520,645
Less, brokerage commissions and clearing fees
($30,661, $8,285 and $96,115, respectively) (2,049,391) (576,861) (5,995,773)
_____________ _____________ _____________
Net realized and unrealized gains (losses) 16,944,391 (2,663,105) 9,524,872
Interest income 1,113,775 326,681 3,345,013
_____________ _____________ _____________
18,058,166 (2,336,424) 12,869,885
_____________ _____________ _____________
Expenses:
Management fees 1,176,116 335,633 3,204,004
Other 115,345 18,340 316,944
Incentive fees 972,979 - 972,979
_____________ _____________ _____________
2,264,440 353,973 4,493,927
_____________ _____________ _____________
Net income (loss) 15,793,726 (2,690,397) 8,375,958
Proceeds from offering-Limited Partners - 40,036,000 -
- -General Partner - 405,000 -
Offering and Organization Expense - (710,000) -
Additions-Limited Partners - 23,638,000 20,788,000
- -General Partner - 239,000 209,000
Redemptions (3,981,869) - (7,718,432)
_____________ _____________ _____________
Net increase in Partners' capital 11,811,857 60,917,603 21,654,526
Partners' capital, beginning of period 111,098,276 - 101,255,607
_____________ _____________ _____________
Partners' capital, end of period $ 122,910,133 $ 60,917,603 $ 122,910,133
------------- ------------- -------------
Net asset value per Unit
(113,379.1289 and 65,166.5820 Units outstanding
at September 30, 1998 and 1997, respectively) $ 1,084.06 $ 934.80 $ 1,084.06
------------- ------------- -------------
Net income (loss) per Unit of Limited Partnership
Interest and General Partner Unit equivalent $ 136.83 $ (47.64) $ 72.57
------------- ------------- -------------
Redemption Net asset value per Unit $ 1,084.06 $ 940.68 $ 1,084.06
------------- ------------- -------------
</TABLE>
See notes to Financial Statements
4
<PAGE>
SMITH BARNEY WESTPORT FUTURES FUND L.P.
NOTES TO FINANCIAL STATEMENTS
September 30, 1998
(Unaudited)
1. General
Smith Barney Westport Futures Fund L.P. (the "Partnership"), is a limited
partnership which was organized on March 21, 1997 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.
Between May 30, 1997 (commencement of the offering period) and July 31,
1997, 40,035 Units of limited partnership interest were sold at $1,000 per Unit.
The proceeds of the offering were held in an escrow account until August 1,
1997, at which time they were turned over to the Partnership for trading.
Smith Barney Futures Management Inc. acts as the general partner (the
"General Partner") of the Partnership. On September 1, 1998, the Partnership's
commodity broker, Smith Barney Inc., merged with Salomon Brothers Inc and
changed its name to 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 Travelers Group Inc. All trading decisions for the Partnership are
made by John W. Henry Company, Inc., the ("Advisor"). (see Note 5)
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, 1998 and the results of its operations for the three
and nine months ended September 30, 1998 and the period from August 1, 1997
(commencement of trading operations) to September 30, 1997. 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, 1997.
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>
SMITH BARNEY WESTPORT FUTURES FUND L.P.
NOTES TO FINANCIAL STATEMENTS
September 30, 1998
(continued)
2. Net Asset Value Per Unit:
Changes in net asset value per Unit for the three and nine months ended
September 30, 1998 and for the period from August 1, 1997 (commencement of
trading operations) to September 30, 1997 were as follows:
PERIOD FROM
AUGUST 1, 1997
COMMENCEMENT OF
THREE MONTHS TRADING NINE MONTHS
ENDED OPERATIONS) ENDED
SEPTEMBER 30, TO SEPTEMBER 30, SEPTEMBER 30,
1998 1997 1998
Net realized and unrealized
gains (losses) $ 146.86 $ (52.57) $ 82.56
Interest Income 9.59 6.26 28.54
Expenses (19.62) (6.74) (38.53)
Other - 5.41 -
--------- --------- ---------
Increase (decrease) for
period 136.83 (47.64) 72.57
Net asset value per Unit,
beginning of period 947.23 982.44 1,011.49
--------- --------- ---------
Net asset value per Unit,
end of period $1,084.06 $ 934.80 $1,084.06
========= ========= =========
Redemption net asset
value per Unit * $1,084.06 $ 934.80 $1,084.06
========= ========= =========
* For the purpose of a redemption, any accrued liability for reimbursement of
offering and organization expenses will not reduce redemption net asset value
per unit.
6
<PAGE>
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, at September 30, 1998 and December 31, 1997 was $22,524,827 and
$8,075,897 and the average fair value during the nine and twelve months then
ended, based on monthly calculation, was $6,067,658 and $5,627,034,
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
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 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.
7
<PAGE>
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. At September 30, 1998, the notional or
contractual amounts of the Partnership's commitment to purchase and sell these
instruments was $1,415,257,300 and 110,809,118 respectively, as detailed below.
All of these instruments mature within one year of September 30, 1998. However,
due to the nature of the Partnership's business,these instruments may not be
held to maturity. At September 30, 1998, the fair value of the Partnership's
derivatives, including options thereon, was $22,524,827, as detailed below.
SEPTEMBER 30, 1998
NOTIONAL OR CONTRACTUAL
AMOUNT OF COMMITMENTS
TO PURCHASE TO SELL FAIR VALUE
Currencies* $ 244,893,226 $ 40,414,435 $ 3,143,445
Energy 23,167,717 - 243,609
Grains 624,444 8,534,868 1,377,177
Interest Rates U.S. 333,815,806 - 5,861,788
Interest Rates Non-U.S 802,164,639 3,104,866 10,961,613
Livestock - 1,020,480 7,780
Metals 6,677,636 19,593,597 (485,896)
Softs 3,718,585 13,112,544 59,259
Indices 195,247 25,028,328 1,356,052
-------------- -------------- --------------
Totals $1,415,257,300 $ 110,809,118 $ 22,524,827
============== ============== ==============
8
<PAGE>
At December 31, 1997, the notional or contractual amounts of the
Partnership's commitment to purchase and sell these instruments was $513,151,141
and $482,486,909, respectively, and fair value of the Partnership's derivatives,
including options thereon, was $8,075,897, as detailed below.
DECEMBER 31, 1997
NOTIONAL OR CONTRACTUAL
AMOUNT OF COMMITMENTS
TO PURCHASE TO SELL FAIR VALUE
Currencies* $ 79,702,539 $171,012,164 $1,553,893
Energy - 26,340,080 1,632,990
Grains 1,480,470 7,170,325 89,273
Interest Rates U.S. 146,479,725 - 763,150
Interest Rates Non-U.S 261,861,726 222,578,459 901,690
Metals 10,746,480 29,465,693 2,571,779
Softs 12,880,201 9,320,777 146,373
Indices - 16,599,411 416,749
------------ ------------ ----------
Totals $513,151,141 $482,486,909 $8,075,897
============ ============ ==========
* The notional or contractual commitment amounts and the fair value amounts
listed for the currency sector represent OTC contracts. All other sectors listed
represent exchange traded contracts.
5. Subsequent Event:
On October 8, 1998, Travelers Group Inc. merged with Citicorp
Inc. and changed its name to Citigroup Inc.
9
<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, consisting of
cash and cash equivalents, net unrealized appreciation (depreciation) on open
futures and forward contracts, commodity options 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 during the third quarter of 1998.
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, additions and redemptions of Units and
distributions of profits if any.
For the nine months ended September 30, 1998, Partnership capital
increased 21.4% from $101,255,607 to $122,910,133. This increase was
attributable to additional sales of 21,097.2073 Units totaling $20,997,000
coupled with net income from operations of $8,375,958 which was partially offset
by the redemption of 7,823.6061 Units resulting in an outflow of $7,718,432.
Future redemptions can impact the amount of funds available for investments in
commodity contract positions in subsequent periods.
Operational Risk
The General Partner administers the business of the Partnership through
various systems and processes maintained by SSBH. SSBH has analyzed the impact
of the year 2000 on its systems and processes and modifications for compliance
are proceeding according to plan. All modifications necessary for year 2000
compliance are expected to be completed by the first quarter of 1999. In July
1998, SSB participated in successful industry-wide testing coordinated by the
Securities Industry Association and plans to participate in such tests in the
future. The purpose of industry-wide testing is to confirm that exchanges,
clearing organizations, and other securities industry participants are prepared
for the year 2000.
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.
10
<PAGE>
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.
In addition, the General Partner is addressing the technological
implications that will result from regulatory and market changes due to Europe's
Economic and Monetary Union ("EMU").
Risks to the Partnership exist in the lack of experience with this new
currency and the potential impact it can have on the Advisors' trading programs.
Risks also exist in the failure of external information technology and
accounting systems to adequately prepare for the conversion. This issue is
particularly acute in the area of the exchanges, clearing houses and
over-the-counter foreign exchange markets where the futures interests are
traded. If the necessary changes are not properly implemented, the Partnership
could suffer failed trade settlements, inability to reconcile trading positions
and funding disruptions. Such events could result in erroneous entries in the
Partnership's accounts, mispriced transactions, and a delay or inability to
provide timely pricing of Units for the purpose of effecting purchases and
redemptions.
SSB has evaluated its internal systems and made the necessary changes to
accommodate EMU transactions on behalf of the Partnership. The General Partner
will continue to monitor and communicate with the Advisor and related
third-party entities to assure preparation for the EMU conversion and advanced
notification of impending issues or problems.
Results of Operations
During the Partnership's third quarter of 1998, the net asset value per
Unit increased 14.4% from $947.23 to $1,084.06, as compared to the period from
August 1, 1997 (commencement of operations) to September 30, 1997, in which the
net asset value per Unit decreased 4.8%. The Partnership experienced a net
trading gain before brokerage commissions and related fees in the third quarter
of 1998 of $18,993,782. Gains were recognized in the trading of commodity
futures in grains, U.S. and non-U.S. interest rates and livestock and were
partially offset by losses in currencies, energy, metals, softs and indices. The
Partnership experienced a net trading loss before brokerage commissions and
related fees for the period from August 1, 1997 (commencement of operations) to
September 30, 1997 of $2,086,244. Losses were recognized in the trading of
commodity futures in energy, U.S. interest rates, currencies, grains, softs,
indices and metals and were partially offset by gains recognized in non-U.S.
interest rates.
11
<PAGE>
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 Advisors to
identify correctly those prices 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
maintained in cash was earned at the 30-day U.S. Treasury bill rate determined
weekly by SSB based on the average noncompetitive yield on 3-month U.S. Treasury
bills maturing in 30 days. Interest income for the three months ended September
30, 1998, increased by $787,094 as compared to the corresponding period in 1997.
This increase is primarily the result of the net additions and positive trading
performance on the Partnership's equity maintained in cash during 1998.
Brokerage commissions are calculated on the adjusted net asset value as of
the last day of each month and, therefore, vary according to trading performance
and redemptions. Accordingly, they must be compared in relation to the
fluctuations in the monthly net asset values. Commissions and fees for the three
months ended September 30, 1998 increased by $1,472,530 as compared to the
corresponding period in 1997.
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
and redemptions. Management fees for the three months ended September 30, 1998
increased by $840,483 as compared to the period ended September 30, 1997.
Incentive fees are based on the new trading profits generated by the
Advisor at the end of the quarter, as defined in the advisory agreement between
the Partnership, the General Partner and the Advisor. Trading performance for
the three months and nine months ended September 30, 1998 resulted in incentive
fees $972,929. There were no incentive fees earned for the corresponding period
in 1997.
12
<PAGE>
Item 3. Quantitative and Qualitative Disclosures of Market Risk
The Partnership is subject to SEC Financial Reporting Release No. 48,
regarding quantitative and qualitative disclosures of market risk and will
comply with the disclosure and reporting requirements in its Form 10-K as of
December 31, 1998.
13
<PAGE>
PART II OTHER INFORMATION
Item 1. Legal Proceedings -
Between May 1994 and the present, Salomon Brothers Inc. ("SBI"),
Smith Barney Inc. ("SB") and The Robinson Humphrey Company, Inc.
("R-H"), all currently subsidiaries of Salomon Smith Barney Holdings
Inc. ("SSBH"), along with a number of other broker-dealers, were
named as defendants in approximately 25 federal court lawsuits and
two state court lawsuits, principally alleging that companies that
make markets in securities traded on NASDAQ violated the federal
antitrust laws by conspiring to maintain a minimum spread of $.25
between the bid and asked price for certain securities. The federal
lawsuits and one state court case were consolidated for pre-trial
purposes in the Southern District of New York in the fall of 1994
under the caption In re NASDAQ Market-Makers Antitrust Litigation,
United States District Court, Southern District of New York No.
94-CIV-3996 (RWS); M.D.L. No. 1023. The other state court suit,
Lawrence A. Abel v. Merrill Lynch & Co., Inc. et al.; Superior Court
of San Diego, Case No. 677313, has been dismissed without prejudice
in conjunction with a tolling agreement.
In consolidated action, the plaintiffs purport to represent a class
of persons who bought one or more of what they currently estimate to
be approximately 1,650 securities on NASDAQ between May 1, 1989 and
May 27, 1994. They seek unspecified monetary damages, which would be
trebled under the antitrust laws. The plaintiffs also seek
injunctive relief, as well as attorney's fees and the costs of the
action. (The state cases seek similar relief.) Plaintiffs in the
consolidated action filed an amended consolidated complaint that
defendants answered in December 1995. On November 26, 1996, the
Court certified a class composed of retail purchasers. A motion to
include institutional investors in the class and to add class
representatives was granted. In December 1997, SBI, SB and R-H,
along with several other broker-dealer defendants, executed a
settlement agreement with the plaintiffs. This agreement has been
preliminarily approved by the U.S. District Court for the Southern
District of New York but is subject to final approval.
On July 17, 1996, the Antitrust Division of the Department of
Justice filed a complaint against a number of firms that act as
market makers in NASDAQ stocks. The complaint basically alleged that
a common
15
<PAGE>
understanding arose among NASDAQ market makers which worked to keep
quote spreads in NASDAQ stocks artificially wide. Contemporaneous
with the filing of the complaint, SBI, SB and other defendants
entered into a stipulated settlement agreement, pursuant to which
the defendants would agree not to engage in certain practices
relating to the quoting of NASDAQ securities and would further agree
to implement a program to ensure compliance with federal antitrust
laws and with the terms of the settlement. In entering into the
stipulated settlement, SBI and SB did not admit any liability. There
are no fines, penalties, or other payments of monies in connection
with the settlement. In April 1997, the U.S. District Court for the
Southern District of New York approved the settlement. In May 1997,
plaintiffs in the related civil action (who were permitted to
intervene for limited purposes) appealed the district court's
approval of the settlement. The appeal was argued in March 1998 and
was affirmed in August 1998.
The Securities and Exchange Commission ("SEC") is also conducting a
review of the NASDAQ marketplace, during which it has subpoenaed
documents and taken the testimony of various individuals including
SBI and SB personnel. In July 1996, the SEC reached a settlement
with the National Association of Securities Dealers and issued a
report detailing certain conclusions with respect to the NASD and
the NASDAQ market.
In December 1996, a complaint seeking unspecified monetary damages
was filed by Orange County, California against numerous brokerage
firms, including SB, in the U.S. Bankruptcy Court for the Central
District of California. Plaintiff alleged, among other things, that
the defendants recommended and sold to plaintiff unsuitable
securities. The case (County of Orange et al. v. Bear Stearns & Co.
Inc. et al.) has been stayed by agreement of the parties.
Item 2. Changes in Securities and Use of Proceeds -
There were no additional sales during the three months ended
September 30, 1998.
For the nine months ended September 30, 1998, there were additional
sales of 20,887.2038 Units totaling $20,788,000 and contributions by
the General Partner representing 210.0035 Unit equivalents totaling
$209,000.
16
<PAGE>
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
17
<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 WESTPORT FUTURES FUND L.P.
By: Smith Barney Futures Management Inc.
(General Partner)
By: /s/ David J. Vogel, President
David J. Vogel, President
Date: 11/12/98
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 Inc.
(General Partner)
By: /s/ David J. Vogel, President
David J. Vogel, President
Date: 11/12/98
By /s/ Daniel A. Dantuono
Daniel A. Dantuono
Chief Financial Officer and
Director
Date: 11/12/98
17
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0001037189
<NAME> SMITH BARNEY WESPORT FUTURES FUND L.P.
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 103,638,194
<SECURITIES> 22,524,827
<RECEIVABLES> 345,663
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 126,508,684
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 126,508,684
<CURRENT-LIABILITIES> 3,598,551
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 122,910,133
<TOTAL-LIABILITY-AND-EQUITY> 126,508,684
<SALES> 0
<TOTAL-REVENUES> 12,869,885
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 4,493,927
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 8,375,958
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 8,375,958
<EPS-PRIMARY> 72.57
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</TABLE>
