SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended June 30, 1998,
or
[ ] Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from to
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COMMISSION FILE NUMBER 000-23529
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THE WILLOWBRIDGE FUND, L.P.
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(Exact name of registrant as specified in its charter)
DELAWARE
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(State or other jurisdiction of incorporation or organization)
4 Benedek Road, Princeton, New Jersey
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(Address of principal executive offices)
22-2678474
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(IRS Employer Identification Number)
08540
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(Zip Code)
(609) 921-0717
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(Registrant's telephone number including area code)
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(Former name, former address and former fiscal year, if
changed since last report)
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, and (2) has been subject to such filing requirements for
the past 90 days.
Yes X No
-1-
<PAGE>
THE WILLOWBRIDGE FUND, L.P.
INDEX
PAGE
Part I FINANCIAL INFORMATION
Item 1 Statement of Financial Condition June 30, 1998 (unaudited) and
December 31, 1997 .................................................3
Statement of Operations For the Three months
Ended June 30, 1998 and 1997 and For the Six Months Ended June
30, 1998 and 1997..................................................4
Statement of Changes in Partner Capital For the six months ended
June 30, 1998 Years ended December 31, 1997, 1996..................5
Net Asset Value Per Unit...........................................5
Notes to Financial Statements for the Six Months Ended June 30,
1998 Years Ended December 31, 1997 and 1996........................6
Item 2 Management's Discussion and Analysis of Financial Condition
and Results of Operations......................................10
Item 3 Quantitative and Qualitative Disclosures About Market Risk.........12
PART II......................................................................13
Item 1. Legal Proceedings..................................................13
Item 2. Changes in Securities..............................................13
Item 3. Defaults Upon Senior Securities....................................13
Item 4. Submission of Matters to a Vote of Shareholders....................13
Item 5. Other Information..................................................13
Item 6. Exhibits and Reports on 8-K........................................13
Signatures...................................................................13
-2-
<PAGE>
Part 1 - FINANCIAL INFORMATION
Item 1 - Financial Statements
<TABLE>
<CAPTION>
The Willowbridge Fund L.P.
STATEMENT OF FINANCIAL CONDITION
June 30, 1998 (unaudited) and December 31, 1997
June 30, 1998 Dec 31, 1997
ASSETS
<S> <C> <C>
Equity in Commodity Futures Trading Account:
Due from Broker $ 3,856,108 $ 11,176,071
Net unrealized appreciation 800,339 1,249,145
-------------- --------------
Deposit with Brokers 4,656,447 11,200,930
Cash and Cash equivalents $ 267,547 443,053
Fixed Income Securities 8,698,745 -
------------- ------------
Total Assets $ 13,622,739 $ 18,544,991
============= =============
LIABILITIES:
Due to Partners $ 182,637 $ 89,875
Accrued Management fees 83,788 42,883
Commission Rebates 1,105 -
Incentive fees - -
Advanced Subscriptions - 177,378
Accounts payable 30,408 24,671
--------------- --------------
Total Liabilities $ 297,938 $ 334,807
--------------- ----------------
PARTNERS CAPITAL (Net Asset Value)
General Partner - 242.0813 and 195.6267 units
Outstanding at June 30, 1998 and December 31, 1997 $ 595,106 $ 680,879
Limited Partners - 5,178.2699 and 5,036.4330 units
Outstanding at June 30, 1998 and December 31, 1997 $ 12,729,700 $ 17,529,305
------------ -------------
13,324,806 18,210,184
------------ --------------
Total Partners Capital and Liabilities $ 13,622,744 $ 18,544,991
============= =============
Net Asset Value Per Unit $ 2,458.29 $ 3,480.50
---------- -----------
3
<PAGE>
<CAPTION>
The Willowbridge Fund LP
STATEMENT OF OPERATIONS
For the Three months Ended June 30, 1998 and 1997 and
For the Six Months Ended June 30, 1998 and 1997
INCOME Three Months 98 Three Months 97 Six Month 98 Six Months 97
--------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
Commodity Trading gains/(losses)
Realized $ (3,390,088) $ ( 627,687) $( 4,964,935) $ 1,797,661
Change in unrealized ( 821,734) (1,264,837) ( 438,712) ( 261,776)
---------------- ------------- ------------- -------------
Gain (loss) from Commodity trading $ (4,211,822) $ (1,892,524) $( 5,403,647) $ 1,535,885
Interest Income $ 171,593 $ 186,360 $ 388,952 $ 354,347
------------- ------------ ------------ ------------
Total Income (loss) $ ( 4,040,229) $ (1,706,164) $( 5,014,695) $ 1,890,232
------------- ------------ ------------ -----------
EXPENSES
Brokerage Commission $ 138,497 $ 109,367 $ 309,808 $ 187,087
Management fees 36,011 37,428 83,788 71,245
Incentive fees - - - 874,575
General Partner Management fees - - 182,102 108,033
Operation fees 93,523 16,435 167,875 30,916
------------- ------------- ---------- ------------
Total Expenses $ 268,031 $ 163,230 $ 743,573 $ 1,271,856
------------- ------------ ------------ -----------
NET (LOSS)/GAIN $( 4,308,260) $ (1,869,394) $ (5,758,268) $ 618,376
============= ============ ============ ============
NET INCOME/(LOSS) PER UNIT
(based on weighted average number of
units outstanding during the period) $ ( 761.88) $ (473.96) $( 1,051.11) $ 167.54
INCREASE/(DECREASE) IN
NET ASSET VALUE PER UNIT $( 758.85) $ (471.87) $ (1,022.21) $ 254.17
--------------- -------------- ----------- -----------
4
<PAGE>
<CAPTION>
The Willowbridge Fund LP
Statement of Changes in Partner Capital
For the six months ended June 30, 1998
Years ended December 31, 1997, 1996
General Partner Limited Partner Total Fund
Units Dollars Units Dollars Dollars
<S> <C> <C> <C> <C> <C>
PARTNERS CAPITAL 12/31/95 28.8172 87,940 930.6552 2,838,743 2,926,683
Additions 52.8522 148,410 2,339.7640 6,809,415 6,957,825
Redemptions - - ( 151.5778) ( 460,574) ( 460,574)
Net Income 39,360 1,340,030 1,379,390
--------- -------- ------------ ---------- ---------
PARTNERS CAPITAL 12/31/96 81.6694 275,710 3,118,8414 10,527,614 10,803,324
Additions 113.9754 406,274 2,404.7715 9,009,671 9,415,945
Redemptions (.0180) (65) (487.5180) (1,734,136) (1,734,201)
Net Income (1,040) (273,844) (274,884)
--------- -------- ------------ ---------- ---------
PARTNERS CAPITAL 12/31/97 195.6267 680,879 5,036.4330 17,529,305 18,210,184
Additions 54.7417 185,569 674.3394 2,278,112 2,463,681
Redemptions - - (309.1956) (1,040,754) (1,040,754)
Net Income (60,977) (1,389,024) ( 1,450,001)
------------ -------- ------------- ----------- -----------
PARTNERS CAPITAL 3/31/98 250.3684 805,471 5,401.5768 17,377,639 18,183,110
Additions 3.9573 10,711 314.6572 846,221 856,932
Redemptions (12.2444) (30,100) (537.9640) ( 1,376,876) (1,406,976)
Net Income (190,976) ( 4,117,284) (4,308,260)
----------- ---------- ------------ ------------- --------------
PARTNERS CAPITAL 6/30/98 242.0813 595,106 5,178.2700 12,729,700 13,324,806
</TABLE>
NET ASSET VALUE PER UNIT
June 30 March 31 December 31 December 31
1998 1998 1997 1996
---------- --------- ---------- ----------
$2,458.29 $3,217.14 $3480.50 $3,375.50
5
<PAGE>
THE WILLOWBRIDGE FUND L.P.
(Unaudited)
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 1998
YEARS ENDED DECEMBER 31, 1997 AND 1996
1. PARTNERSHIP ORGANIZATION
The Willowbridge Fund L.P. (the "Partnership"), a Delaware limited
partnership, was organized on January 24, 1986. The Partnership is engaged
in the speculative trading of commodity futures contacts, options on
commodities or commodity futures contracts and forward contracts. The
General Partner is registered as a Commodity Pool Operator and a Commodity
Trading Advisor ("CTA") with the Commodity Futures Trading Commission. The
General Partner is required by the Limited Partnership Agreement, as
amended and restated (the "Agreement") to contribute an amount equal to one
percent of the aggregate capital raised by the Partnership. The Agreement
requires that all subscriptions are subject to a one percent administrative
charge payable to the General Partner.
The Partnership shall end on December 31, 2006 or earlier upon withdrawal,
insolvency or dissolution of the General Partner or a decline of greater
than fifty percent of the net assets of the Partnership as defined on the
Agreement, or the occurrence of any event which shall make it unlawful for
the existence of the Partnership to be continued.
2. SIGNIFICANT ACCOUNTING POLICIES
Due from Broker - Due from broker represents cash required to meet margin
requirements and excess funds not required for margin which are typically
invested in 30-day commercial paper and U.S.
Treasury bills by the broker.
Revenue Recognition - Commodity futures, options and forward contract
transactions are recorded on the trade date and open contracts are
reflected in the financial statements at their fair value on the last
business day of the reporting period. The difference between the original
contract amount and fair value is reflected in income as an unrealized gain
or loss. Fair value is based on quoted market prices. All commodity
futures, options and forward contracts and financial instruments are
reflected at fair value in the financial statements.
Commissions - Prior to March 31, 1997, commission charges to open and close
contracts were expensed at the time the contract positions were opened.
Commencing April 1, 1997, commission charges were based on a percentage of
the net asset value of the fund at the beginning of the month. As of June
30, 1998, the commission rate charged was 3.5 percent annually of the net
asset value of the fund.
Statement of Cash Flows - The Partnership has elected not to provide a
Statement of Cash Flows as permitted by Statement of Financial Accounting
Standard No. 102, Statement of Cash Flows Exemption of Certain Enterprises
and Classification of Cash Flows from Certain Securities Acquired for Resale.
Allocation of Profits (Losses) and Fees - Net realized and unrealized
trading gains and losses, interest income and other operating income and
expenses are allocated to the partners monthly in proportion to their
capital account balance, as defined in the Agreement.
The General Partner, Ruvane Investment Corporation ("Ruvane"), was paid a
management fee equal to one percent of the net assets of the Partnership
(as defined in the Agreement) as of the last of the previous fiscal
year-end. Such fees amounted to $182,102, $108,033 and $29,267 in the first
six months of 1998 and the full year 1997 and 1996, respectively.
Willowbridge is entitled to an incentive fee based on an increase in the
adjusted net asset value of the allocated assets of the Partnership. The
CTA receives 25% of any new profits, as defined in the Agreement. The term
"new profits" is defined as the increase, if any, in the adjusted net asset
value of the allocated asses. In addition, the Partnership pays a quarterly
6
<PAGE>
management fee of 0.25% (1% per year) of the net asset value of the
Partnership to Willowbridge.
Willowbridge rebates to the Partnership the incentive and management fees
incurred by certain partners including Willowbridge employees who are also
limited partners in the Partnership. Incentive and management fees are
presented in the Partnership's financial statements gross of any amounts
rebated by Willowbridge. The rebate to the Partnership is recorded on the
Partnership's financial statements as a capital contribution. The incentive
and management fees rebated to these partners in the first six months of
1998 and the full year 1997, and 1996 were $20,510, $116,051, and $37,049,
respectively.
Administrative Expenses - Administrative expenses include professional
fees, bookkeeping costs and other charges such as registration fees,
printing costs and bank fees.
Income Taxes - Income taxes have not been provided in the accompanying
financial statements as each partner is individually liable for taxes, if
any, on their share of the Partnership's profits.
Redemptions - Limited partners may redeem some of all of their units at Net
Asset Value per unit as of the last business day of each month on at least
ten days written notice to the General Partner.
Estimates - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from
these estimates.
7
<PAGE>
3. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK
The Partnership trades futures, options on futures and forward contracts
and forward contracts in currencies and a wide range of commodities. The
Partnership's trading results by market sector were as follows:
Six Months 12 Months Ending
Ending June 30, 1998 December 31, 1997
-------------------- -----------------
Futures (4,205,829) (418,374)
Financials 1,043,728 (572,768)
Currencies (2,241,546) 1,205,395
----------- ---------
(5,403,647) 214,253
Brokerage Commission 309,808 491,880
------- -------
$ (5,093,839) $ 706,133
============= =========
Market Risk - Derivative financial instruments involve varying
degrees of off-balance sheet market risk whereby changes in the level of
volatility of interest rates, foreign currency exchange rates or market
values of the underlying financial instruments or commodities may result in
cash settlements in excess of the amounts recognized in the statements of
financial condition. The Partnership's exposure to market risk is directly
influenced by a number of factors, including the volatility of the markets
in which the financial instruments are traded and the liquidity of those
markets.
Fair Value - The derivative instruments used in the Partnership's
trading activities are market to market with the resulting unrealized
profit (loss) recorded in the Statements of Financial Condition and the
related profit (loss) reflected in trudge revenues in the Statements of
Operations.
The contract/notional values of open contracts as of the first six
months ended June 30, 1998 and the twelve months ended December 31, 1997 by
market sector were as follows:
<TABLE>
<CAPTION>
June 30, 1998 1997
---------------------------------------------------------------------
Commitment to Commitment to
Purchase Commitment to Purchase Commitment to
(Futures, Sell (Futures, (Futures Sell (Futures,
Options and Options and Options and Options and
Forwards) Forwards) Forwards) Forwards)
<S> <C> <C> <C> <C>
Futures $ 6,494,070 $ 8,609,402 $ 20,196,015 $ 910,285
Financials 69,888,422 141,908,692 182,973,076 5,167,348
Currencies 31,604,595 7,124,832 2,838,598 30,817,325
---------- --------- --------- ----------
$107,987,087 $157,642,926 $ 206,007,689 $36,894,958
============ =========== ============= ===========
</TABLE>
Substantially all of the Partnership's derivative financial
instruments outstanding expire within 90 days.
8
<PAGE>
Credit Risk - Futures and forwards are contracts for delayed delivery
of financial interests in which the seller agrees to make delivery at
a specified future date of a specified financial instrument at a
specified price or yield. Risk arises from changes in the market
value of the underlying instruments and with respect to forward
contracts, from the possible inability of counterparties to meet the
terms of the contracts. Credit risk due to counterparty
nonperformance associated with these instruments is the net
unrealized gain, if any, included in the statements of financial
condition.
The risks associated with exchange-traded contracts are typically
perceived to be less than those associated with over-the-counter
transactions, because exchanges typically (but not universally)
provide clearing house arrangements in which the collective credit
(in some cases limited in amount, n some cases not) of the members
of the exchange is pledged to support the financial integrity of the
exchange, whereas in over-the-counter transactions, traders must
rely solely on the credit of their respective individual
counterparties. Margins, which may be subject to loss in the event
of a default, are generally required in exchange trading and
counterparties may require margin in the over-the-counter markets.
4. TRADING ACTIVITIES
The Partnership was formed for the purpose of trading contacts in a
variety of commodity interests. The results of the Partnership's
trading activity are shown in the statement of income and expenses.
Management of the Partnership receives fair value information
regarding open commitments to purchase and sell commodity interests
on a monthly basis. The average fair value of all commodity
interests owned by the Partnership during the first six months
ending June 30, 1998 and the twelve months ended December 31, 1997
based on a monthly calculation by market sector was as follows:
<TABLE>
<CAPTION>
June 30, 1998 1997
------------------------------------------------------------------------
Commitment to Commitment to
Purchase Commitment to Purchase Commitment to
(Futures, Sell (Futures, (Futures Sell (Futures,
Options and Options and Options and Options and
Forwards) Forwards) Forwards) Forwards)
<S> <C> <C> <C> <C>
Futures $ 200,507 $ 196,491 $ 248,198 $ 57,062
Financials 606,722 83,173 205,594 (56,679)
Currencies 286,902 32,311 (32,590) 346,245
------- ------ -------- -------
$ 1,094,131 $ 311,975 $421,202 $346,628
========== ========== ======== ========
</TABLE>
<PAGE>
The fair value of these commodity interests, including options
thereon, for the six months ended June 30, 1998 and at December 31,
1997 were as follows:
<TABLE>
<CAPTION>
June 30, 1998 1997
-------------------------------------------------------
Commitment to Commitment to
Purchase Commitment to Purchase Commitment to
(Futures, Sell (Futures, (Futures Sell (Futures,
Options and Options and Options and Options and
Forwards) Forwards) Forwards) Forwards)
<S> <C> <C> <C> <C>
Futures 85,713 206,324 $ (398,949) $ 160,353
Financials 841,943 103,108 1,079,524 (50,393)
Currencies 277,951 95,837 2,097 456,513
------- -------- ---------- -------
$ 1,205,607 $ 405,269 $ 682,672 $566,473
========== ========= ========= ========
</TABLE>
9
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operation
Fiscal Quarter Ended June 1998
The Partnership recorded a loss of $4,308,260 or $758.85 per Unit
for the second quarter of 1998. This compares to a loss of
$1,869,395 or $471.87 per Unit for the second quarter of 1997. In
April, trading was unprofitable in financial instruments,
currencies, precious metals and the energy complex. The Partnership
recorded a loss of $3,273,418 or $575.90 per Unit in April. In May,
trading losses were incurred in silver and grains. Profitable
positions in the Japanese Yen and foreign financial instruments
failed to offset the losses. The Partnership recorded a loss of
$614,511 or $107.16 per Unit in May. In June, positions in foreign
currencies produced most of the losses. Trading also was
unprofitable in grains. Profits were incurred in domestic and
foreign financial instruments. The Partnership recorded a loss of
$420,331 or $75.79 per Unit in June.
During the quarter, additional Units sold consisted of 314.66
limited partnership units and 3.96 general partnership units.
Investors redeemed a total of 537.96 Units during the quarter, or
$1,376,876. At the end of the quarter, there were 5,420.35 Units
outstanding (including 242.08 owned by the General Partner).
As of June 30, 1998, the net asset value of the Partnership was
$13,324,806 compared to its net asset value of $18,210,184 at
December 31, 1997. The net asset value per Unit at June 30, 1998 was
$2,458.29 compared to $3,480.50 at December 31, 1997.
For the fiscal quarter ended June 30, 1998, the Partnership had
expenses comprised of $0 in incentive fees, $138,497 in brokerage
commissions (including clearing and exchange fees), $36,011 in
management fees and $93,523 in administrative expenses. For the
fiscal quarter ended June 30, 1997, the Partnership had expenses
comprised of $109,367 in brokerage commissions (including clearing
and exchange fees), $37,428 in management fees, $0 in incentive
fees and $16,435 in administrative expenses.
On June 1, 1998, the Partnership ceased using Willowbridge
Associates Inc.'s Mtech Trading Approach and all the Partnership's
assets were re-allocated to Willowbridge's Primary Program,
consisting of the Argo, Vulcan and Siren quantitative,
computer-based trading systems currently used by the Partnership.
Since Mtech experienced a loss of greater than 35% for 1998, the
General Partner decided to terminate trading pursuant to Mtech.
During the fiscal quarter ended June 30, 1998, the Partnership had
no credit exposure to a counterparty which is a foreign commodities
exchange or to any counterparty dealing in over the counter
contracts which was material.
10
<PAGE>
See Footnote 3 of the Financial Statements for procedures
established by the General Partner to monitor and minimize market
and credit risks for the Partnership. In addition to the procedures
set out in Footnote 3, the General Partner reviews on a daily basis
reports of the Partnership's performance, including monitoring of
the daily net asset value of the Partnership. The General Partner
also reviews the financial situation of the Partnership's clearing
brokers on a regular basis. The General Partner relies on the
policies of the Clearing Brokers to monitor specific credit risks.
Six Months Ended June 1998
The Partnership recorded a loss of $5,758,268 or $1,022.21 per Unit
for the six months ended June 1998. This compares to a gain of
$618,376 or $254.17 for the six months ended June 1997. In January,
trading was profitable in U.S. and European financials instrument,
silver and food products. The Partnership recorded a gain of
$1,666,034 or $305.17 per Unit in January. In February, trading
losses were incurred in the Japanese Yen, food products, grains and
U.S. financial instruments. Profits were incurred in silver.
February was the Partnership's second worst month in its history.
The Partnership recorded a loss of $2,993.297 or $547.65 in
February. In March, positions in the U.S. dollar produced most of
the gains, however these were largely offset by losses in U.S. and
foreign financial instruments, foods and grains. The Partnership
recorded a loss of $122,742 or $20.87 per Unit in March. Results for
April, May and June of 1998 are set forth above in the section
Fiscal Quarter Ended June 1998.
During the six month period ended June 30, 1998, additional Units
sold consisted of 988.99 limited partnership units and 58.69 general
partnership units. Investors redeemed a total of 1,550.20 Units
(including 12.24 Units redeemed by the General Partner) during
the quarter, or $1,406,976. At the end of the six month period, there
were 5,420.35 Units outstanding (including 242.68 owned by the General
Partner).
For the six months ended June 30, 1998, the Partnership had expenses
comprised of $0 in incentive fees, $309,808 in brokerage
commissions (including clearing and exchange fees), $265,890 (including
$182,102 General Partner management fees) in management fees and
$167,875 in administrative expenses. For the six months ended
June 30, 1997, the Partnership had expenses comprised of $187,087
in brokerage commissions (including clearing and exchange fees),
$179,279 (including $108,033 General Partner management fees) in
management fees, $874,575 in incentive fees and $30,916 in
administrative expenses.
During the six months ended June 30, 1998, the Partnership had no
credit exposure to a counterparty which is a foreign commodities
exchange or to any counterparty dealing in over the counter
contracts which was material.
<PAGE>
Fiscal Quarter Ended June 1997
The Partnership recorded a loss of $1,869,395 or $471.87 per Unit
for the second quarter of 1997. In April, trading was unprofitable
in U.S. financial instruments, foreign bonds, the Japanese Yen and
precious metals. Offsetting gains occurred in grains, coffee and
European currencies. The Partnership recorded a loss of $514,595 or
$138.83 per Unit in April. In May, trading losses were incurred in
wheat, global stock indices and the Deutsche Mark. Profitable
positions in copper, the Japanese yen and coffee failed to offset
the losses. The Partnership recorded a loss of $626,217 or $157.98
per Unit in May. In June, positions in grains and the energy complex
produced most of the losses. Trading also was unprofitable in base
metals and Japanese bonds. Profits were incurred in the U.S. dollar
and food products. The Partnership recorded a loss of $728,583 or
$175.06 per Unit in June.
During the quarter, additional Units sold consisted of 561.53
limited partnership units and 5.66 general partnership units.
Investors redeemed a total of 18.88 Units during the quarter, or
$72,045.84. At the end of the quarter there were 4,162.09 Units
outstanding (including 124.42 owned by the General Partner).
As of June 30, 1997, the net asset value of the Partnership was
$15,107,015 compared to its net asset value of $10,803,324 at
December 31, 1996. The net asset value per Unit at June 30, 1997 was
$3,629.97 compared to $3,375.50 at December 31, 1996.
11
<PAGE>
For the fiscal quarter ended June 30, 1997, the Partnership had
expenses comprised of $0 in incentive fees, $109,366 in brokerage
commissions (including clearing and exchange fees), $37,429 in
management fees and $16,435 in administrative expenses. For the
fiscal quarter ended June 30, 1996, the Partnership had expenses
comprised of $33,203 in brokerage commissions (including clearing
and exchange fees), $17,418 in management fees, $0 in incentive
fees and $13,146 in administrative expenses. Effective April 1,
1997, the Partnership ceased paying commodity brokerage commissions
to its brokers on a per-trade basis. Instead, the Partnership pays
to the General Partner a flat-rate monthly brokerage commission of
0.25% of the Net Asset Value at the beginning of each month. The
General Partner will pay from this amount all commission charges and
fees with respect to the Partnership's trading.
During the fiscal quarter ended June 30, 1997, the Partnership had
no credit exposure to a counterparty which is a foreign commodities
exchange or to any counterparty dealing in over the counter
contracts which was material.
Six Months Ended June 1997
The Partnership recorded a gain of $618,376 or $254.17 per Unit for
the six months ended June 1997. In January, trading was profitable
in coffee and the U.S. dollar versus European currencies. The
Partnership's positions in soybean meal and natural gas also were
profitable. Losses were incurred in global fixed income and
livestock. The Partnership recorded a gain of $398,088 or $119.75
per Unit in January. In February, trading profits were incurred in
coffee, soybeans and corn. Additional profits were derived from our
currency and metals positions. Losses were incurred in the energy
complex. The Partnership recorded a gain of $1,433,070 or $424.59 in
February. In March, positions in the soybean complex produced most
of the profits. Positions in European and domestic financial
instruments also were profitable. Losses were incurred in the
Japanese Yen. The Partnership recorded a gain of $656,612 or $181.70
per Unit in March. Results for April, May and June of 1997 are set
forth above in the section Fiscal Quarter Ended June 1997.
During the six month period ended June 30, 1997, additional Units
sold consisted of 1,066.29 limited partnership units and 42.75 general
partnership units. Investors redeemed a total of 147.46 Units during
the six month period, or $559,495. At the end of the six month period,
there were 4,162.09 Units outstanding (including 124.42 owned by the
General Partner).
For the six months ended June 30, 1997, the Partnership had expenses
comprised of $874,575 in incentive fees, $187,087 in brokerage
commissions (including clearing and exchange fees), $179,279 (including
$108,033 General Partner management fees) in management fees and $30,916
in administrative expenses. For the six months ended June 30, 1996, the
Partnership had expenses comprised of $54,855 in brokerage commissions
(including clearing and exchange fees), $56,136 (including $29,267
General Partner management fees) in management fees, $0
in incentive fees and $49,615 in administrative expenses.
During the six months ended June 30, 1997, the Partnership had no
credit exposure to a counterparty which is a foreign commodities
exchange or to any counterparty dealing in over the counter
contracts which was material.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Not Applicable.
12
<PAGE>
Part II. OTHER INFORMATION
Item 1. Legal Proceedings.
The General Partner is not aware of any proceedings threatened or
pending against the Partnership and its affiliates which, if
determined adversely, would have a material adverse effect on the
financial condition or results of operations of the Partnership.
Item 2. Changes in Securities and Use of Proceeds.
None.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Submission of Matters to a Vote of Security Holders.
None.
Items 5. Other Information.
None.
Item 6. Exhibits and Reports on Form 8-K.
Exhibits--None
Reports on Form 8-K--None.
<PAGE>
SIGNATURES
Pursuant to the requirements 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.
THE WILLOWBRIDGE FUND L.P.
Date: August 24, 1998 By: Ruvane Investment Corporation,
its General Partner
By: /s/ Robert L. Lerner
-----------------------
Robert L. Lerner
President
13
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