Smith Barney Futures Management LLC
390 Greenwich Street
New York, NY 10013
By Edgar
Securities and Exchange Commission
450 Fifth Street N.W.
Washington, D.C. 20549
Re: Salomon Smith Barney Global Diversified Futures Fund L.P.
Supplement to Registration Statement on Form S-1
File No. 333-61961
Ladies and Gentlemen:
On Behalf of Salomon Smith Barney Global Diversified Futures Fund L.P.
(the "Partnership") I am transmitting herewith for filing, pursuant to Rule 424
(b) (3) of the Securities Act 0f 1933, as amended, a Supplement dated October
31, 1999 to the Partnership's final prospectus dated November 25, 1998.
Should you have any questions, please telephone me at 212-723-5424.
Very truly yours,
/s/ Daniel A. Dantuono
Daniel A. Dantuono
Chief Financial Officer and
Director
Enclosures
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Salomon Smith Barney
Global Diversified Futures Fund L.P.
October 1999
The redemption value per unit for the SSB Global Diversified Futures Fund L.P.
was $934.32 per unit at the end of October, down 4.8% from the close of
September.
October was a particularly difficult month for managed futures and the Fund.
Markets that had been trending profitably reversed precipitously during the
month and markets that had been relatively stable experienced unprecedented
price volatility.
The energy markets, including crude oil, related products and natural gas, were
the most significant contributor to negative results as the profitable trend in
rising prices reversed mid-month. In the "softs" markets, a 30% rise in the
price of coffee in a matter of days resulted in losses for advisors that had
been short this market for several months. The price burst that moved gold up
$75 an ounce in late September reversed just as many advisors were getting long
and led to further unrealized losses. One bright spot was the grain markets
where small profits were made in down trending markets.
The financial markets produced losses but not nearly to the extent of the
volatile commodity markets. Global interest rates particularly, Japanese
government bond and Eurodollar positions, were unprofitable. The U.S. dollar
recovered from recent sell-offs as the strength in U.S. equities led to
increased demand for U.S. dollars and losses for the advisors' long foreign
currency positions. Trading in global stock market indices was mixed.
We appear to be in an extraordinary period that has resulted in severe price
consolidation in both the financial futures and traditional commodity markets.
Although we can not predict the future, a long and intense period of volatility,
like the one we have recently witnessed, is generally followed by periods of
sustained trends, which typically creates opportunities for the types of
advisors managing this fund. The current environment in both managed futures and
the continued bullish trends in the U.S. stock markets reinforces the importance
of keeping a long-term perspective for your overall portfolio.
Smith Barney Futures Management LLC
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Salomon Smith Barney
Global Diversified Futures Fund L.P.
Account Statement
For the Period October 1,
Through October 31, 1999
Percent
of Average
Net Assets
Realized losses from trading $(1,405,731) (1.86)%
Change in unrealized gains/losses
from trading (2,285,161) (3.03)
----------- -------
(3,690,892) (4.89)
Add, Brokerage commissions
and clearing fees ($6,329) 361,204 0.48
----------- -------
Net realized and unrealized
losses (4,052,096) (5.37)
Interest Income 233,005 0.31
----------- -------
(3,819,091) (5.06)
Less, Expenses:
Management fees 125,204 0.17
Incentive fees (260,483) (0.34)
Other expenses 13,649 0.01
----------- -------
(121,630) (0.16)
----------- -------
Net Loss (3,697,461) (4.90)%
-------
Redemptions (242.7762 L.P. units
at October 31, 1999 net asset
value per unit of $934.32) (226,831)
-----------
Decrease in net assets (3,924,292)
Net assets, September 30, 1999 77,481,577
----------
Net assets, October 31, 1999 $73,557,285
----------
Net asset value per unit
($73,557,285/79,184.2500
units) $928.94
-------
Redemption value per unit (Note 1) $934.32
-------
Note 1: For the purpose of a redemption, any accrued liability for reimbursement
of offering and organization expenses will not reduce Net Asset Value per Unit.
As a result, the reported redemption value per unit is $934.32.
The net asset value per unit of $928.94 is reflective of charging offering and
organizational expenses against the initial capital of the fund and is reported
for financial reporting purposes only.
To the best of the knowledge and belief of the undersigned, the information
contained herein is accurate and complete.
By: /s/ Daniel A. Dantuono
Daniel A. Dantuono,
Chief Financial Officer
Smith Barney Futures Management LLC
General Partner, Salomon Smith Barney Global
Diversified Futures Fund L.P.
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