Smith Barney Futures Management LLC
388 Greenwich Street 7th Fl
New York, NY 10013
By Edgar
Securities and Exchange Commission
450 Fifth Street N.W.
Washington, D.C. 20549
Re: Salomon Smith Barney Diversified 2000 Futures Fund L.P.
Supplement to Registration Statement on Form S-1
File No. 333-87663
Ladies and Gentlemen:
On Behalf of Salomon Smith Barney Diversified 2000 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 July 31, 2000
to the Partnership's final prospectus dated January 31, 2000.
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
Diversified 2000 Futures Fund L.P.
July 2000
The redemption value of Smith Barney Diversified 2000 Futures Fund L.P. was
$963.15 per unit at the end of July.
The Fund was unprofitable for the month of July, as gains in many sectors,
including metals, grains, and interest rates, were more than offset by losses in
the energy, currency, and stock index sectors.
Profits were made from the grain complex as those markets continued their
declines. Short wheat, corn and soybean positions benefited from bearish USDA
reports. Gold also contributed gains from the short side as a strengthening U.S.
dollar, weak seasonal demand, and the effects of a 25 tonne bullion auction by
the Bank of England weighed combined to push prices lower. In addition, base
metals contributed profits due to supply concerns. Platinum prices reached a new
contract high in late July after rallying over $70 on skepticism over Russian
supply availability.
In the softs sector, profits were earned in sugar, which rallied amid strong
physical demand and supply concerns caused by both unfavorable weather
conditions in Australia and smaller-than-expected Brazilian exports. Sugar's
move, which began in mid-March and saw a new contract high in late July, has
seen the price nearly double from just below 5.5 cents to over 10 cents. These
profits, however, were curbed by losses in coffee and cotton. After declining
throughout June, cotton prices rose as the southern U.S. experienced an extended
stretch of hot and dry weather. Coffee prices surged on weather-related news as
well. Frost conditions in Brazil led to fears of widespread crop damage. The
market quickly reversed course when crop damage was found to be minimal.
The largest losses in July were attributable to energy positions. After
establishing a new contract high in late June, natural gas exhibited increased
volatility and lower prices. Prices moved from $4.50 to $3.75, a 17% decline by
month's end. In addition, long crude oil positions proved unprofitable as the
price per barrel moved sharply lower, in part, on news that Saudi Arabia
intended to raise production beyond OPEC quotas.
Public comments by Fed Chairman Greenspan at midmonth and again at month's end
served to strengthen the U.S. dollar. This reversed earlier currency trends and
led to losses on long positions in the Euro and Canadian dollar. Long positions
in stock indices, particularly in Nikkei Index and Australian All Ordinaries,
experienced losses following midmonth comments by Fed Chairman Greenspan that
served to strengthen the U.S. dollar and a higher-than-expected figure for the
U.S. Consumer Price Index.
Smith Barney Futures Management LLC
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Salomon Smith Barney
Diversified 2000 Futures Fund L.P.
Account Statement
For the Period July 1,
Through July 31, 2000
Percent
of Average
Net
Assets
Realized losses from trading $ (140,567) (0.82)%
Change in unrealized gains/losses
from trading (102,231) (0.60)
------------ -------
(242,798) (1.42)
Add, Brokerage commissions
and clearing fees ($2,080) 87,013 0.50
------------ -------
Net realized and unrealized losses (329,811) (1.92)
Interest Income 69,883 0.41
------------ -------
(259,928) (1.51)
Less, Expenses:
Management fees 27,821 0.16
Other expenses 6,408 0.04
------------ -------
34,229 0.20
------------ -------
Net Loss (294,157) (1.71)%
-------
Additions, (2,158.9704 L.P. units
at June 30, 2000 net asset value
per unit of $980.56) 2,117,000
Additions, (20.3965 G.P. units
at June 30, 2000 net asset value
per unit of $980.56) 20,000
-------------
Increase in Net Assets 1,842,843
Net assets, June 30, 2000 15,169,525
------------
Net assets, July 31, 2000 $ 17,012,368
------------
Net Asset Value per unit
($17,012,368/18,388.3669 units) $ 925.17
-------
Redemption value per unit (Note 1) $ 963.15
-------
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 $963.15.
The net asset value per unit of $925.17 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
Diversified 2000 Futures Fund L.P.
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