<PAGE>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
------------------
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ________________ to ________________
Commission File Number 0-15298
THE FUTURES EXPANSION FUND LIMITED PARTNERSHIP
----------------------------------------------
(Exact Name of Registrant as
specified in its charter)
Delaware 13-3365950
- -------------------------------- ---------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
c/o Merrill Lynch Investment Partners Inc.
(formerly ML Futures Investment Partners Inc.)
Merrill Lynch World Headquarters-South Tower, 6th Fl.
World Financial Center New York, New York 10080-6106
----------------------------------------------------
(Address of principal executive offices)
(Zip Code)
212-236-4161
----------------------------------------------------
(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
--- ---
This document contains 11 pages.
There are no exhibits and no exhibit index filed with this document.
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
THE FUTURES EXPANSION FUND LIMITED PARTNERSHIP
----------------------------------------------
(a Delaware limited partnership)
--------------------------------
AND JOINT VENTURE
-----------------
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
----------------------------------------------
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
---- ----
ASSETS
<S> <C> <C>
Accrued interest $ 29,955 $ 39,699
Equity in commodity futures trading accounts:
Cash and option premiums 8,438,146 9,860,595
Net unrealized gain on open contracts 603,237 576,906
------------------ ------------------
TOTAL $9,071,338 $10,477,200
================== ==================
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
LIABILITIES:
Administrative expense payable (Note 2) $ 1,890 $ -
Redemptions payable 11,510 7,169
Brokerage commissions payable (Note 2) 88,216 103,775
Profit shares payable - 475,153
------------------ ------------------
Total liabilities 101,616 586,097
------------------ ------------------
PARTNERS' CAPITAL:
General Partner (518 and 518 Units) 119,249 123,779
Limited Partners (38,445 and 40,875 Units) 8,850,473 9,767,324
------------------ ------------------
Total partners' capital 8,969,722 9,891,103
------------------ ------------------
TOTAL $9,071,338 $10,477,200
================== ==================
NET ASSET VALUE PER UNIT
(Based on 38,963 and 41,393 Units outstanding) $230.21 $238.96
======= =======
</TABLE>
See notes to consolidated financial statements.
2
<PAGE>
THE FUTURES EXPANSION FUND LIMITED PARTNERSHIP
----------------------------------------------
(a Delaware limited partnership)
--------------------------------
AND JOINT VENTURE
-----------------
CONSOLIDATED STATEMENTS OF OPERATIONS
-------------------------------------
<TABLE>
<CAPTION>
For the three For the three For the nine For the nine
months ended months ended months ended months ended
September 30, September 30, September 30, September 30,
1996 1995 1996 1995
------------------ ----------------- ---------------- ------------------
<S> <C> <C> <C> <C>
REVENUES:
Trading Profits (Loss):
Realized $106,538 $(19,205) $158,488 $2,585,412
Change in unrealized 173,126 (402,010) 26,331 (339,419)
------------------ ----------------- ---------------- ------------------
Total trading results 279,664 (421,215) 184,819 2,245,993
------------------ ----------------- ---------------- ------------------
Interest income 92,987 124,361 284,096 359,004
------------------ ----------------- ---------------- ------------------
Total revenues 372,651 (296,854) 468,915 2,604,997
------------------ ----------------- ---------------- ------------------
EXPENSES:
Profit shares - (119,857) - 339,769
Brokerage commissions (Note 2) 264,883 302,431 824,186 910,999
Administrative expense (Note 2) 5,674 - 17,657 -
------------------ ----------------- ---------------- ------------------
Total expenses 270,557 182,574 841,843 1,250,768
------------------ ----------------- ---------------- ------------------
NET INCOME (LOSS): $102,094 $(479,428) $(372,928) $1,354,229
================== ================= ================ ==================
NET INCOME (LOSS) PER UNIT:
Weighted average number of units
outstanding 39,364 42,290 40,447 43,492
====== ======= ======= ======
Weighted average net Income (Loss)
per Limited Partner unit and
General Partner unit $2.59 $(11.34) $(9.22) $31.14
===== ======== ======= ======
</TABLE>
See notes to consolidated financial statements.
3
<PAGE>
THE FUTURES EXPANSION FUND LIMITED PARTNERSHIP
----------------------------------------------
(a Delaware limited partnership)
--------------------------------
AND JOINT VENTURE
-----------------
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
-------------------------------------------------------
For the nine months ended September 30, 1996 and 1995
-----------------------------------------------------
<TABLE>
<CAPTION>
Limited General
Units Partners Partner Total
----- -------- ------- -----
<S> <C> <C> <C> <C>
PARTNERS' CAPITAL,
DECEMBER 31, 1994 45,234 $8,761,840 $101,500 $8,863,340
Net income - 1,338,573 15,656 1,354,229
Redemptions (3,411) (758,267) - (758,267)
----------- --------------- --------------- ---------------
PARTNERS' CAPITAL,
SEPTEMBER 30, 1995 41,823 $9,342,146 $117,156 $9,459,302
=========== =============== =============== ===============
PARTNERS' CAPITAL,
DECEMBER 31, 1995 41,393 $9,767,324 $123,779 $9,891,103
Net loss - (368,398) (4,530) (372,928)
Redemptions (2,430) (548,453) - (548,453)
----------- --------------- --------------- ---------------
PARTNERS' CAPITAL,
SEPTEMBER 30, 1996 38,963 8,850,473 119,249 8,969,722
=========== =============== =============== ===============
</TABLE>
See notes to consolidated financial statements.
4
<PAGE>
THE FUTURES EXPANSION FUND LIMITED PARTNERSHIP
(A Delaware Limited Partnership) AND JOINT VENTURE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These financial statements have been prepared without audit. In the
opinion of management, the financial statements contain all adjustments
(consisting of only normal recurring adjustments) necessary to present
fairly the financial position of The Futures Expansion Fund Limited
Partnership (the "Partnership" or the "Fund") as of September 30, 1996 and
the results of its operations for the nine months ended September 30, 1996
and 1995. However, the operating results for the interim periods may not
be indicative of the results expected for the full year.
Certain information and footnote disclosures normally included in annual
financial statements prepared in accordance with general accepted
accounting principles have been omitted. It is suggested that these
financial statements be read in conjunction with the financial statements
and notes thereto included in the Partnership's Annual Report on Form 10-K
filed with the Securities and Exchange Commission for the year ended
December 31, 1995 (the "Annual Report").
2. RELATED PARTY TRANSACTIONS
The Joint Venture pays brokerage commissions to MLF at a flat rate of
.9933 of 1% (an 11.92% annual rate) of the Joint Venture's month-end
assets. Monthly-end assets are not reduced for purposes of calculating
brokerage commissions by any accrued but unpaid brokerage commissions,
profit shares or other fees or charges. Effective January 1, 1996, the
brokerage commission the Joint Venture pays to the Commodity Broker was
reduced to .9725% (a 11.67% annual rate), and the Partnership began to pay
an administrative fee to the General Counsel of .020833% (a .25% annual
rate). MLIP estimates that the round-turn equivalent commission rate
charged to the Joint Venture during the nine months ended September 30,
1996 and 1995, was approximately $99 and $33, respectively (not including,
in calculating round-turn equivalents, forward contracts on a
futures-equivalent basis).
MLF pays the Trading Manager annual Consulting Fees of 4% of the Joint
Venture's average month-end assets, after reduction for a portion of the
brokerage commissions.
3. FAIR VALUE AND OFF-BALANCE SHEET RISK
The Joint Venture trades futures, options and forward contracts in
interest rates, stock indices, commodities, currencies, energy and metals.
The Joint Venture's revenues by reporting category for the nine months
ended September 30, 1996 were as follows:
<TABLE>
<CAPTION>
1996
----
<S> <C>
Interest rate $(5,362)
Stock indices (131,678)
Commodities (523,874)
Currencies 323,214
Energy 721,929
Metals (199,410)
--------------------
$184,819
====================
</TABLE>
Market Risk
-----------
Derivative instruments involve varying degrees of off-balance sheet market
risk, and changes in the level or volatility of interest rates, foreign
currency exchange rates or the market values of the financial instruments
or commodities underlying such derivative instruments frequently result in
changes in the Partnership's unrealized gain or loss on such derivative
instruments as reflected in the Consolidated Statements of Financial
Condition. The Joint Venture's exposure to market risk is influenced by a
number of factors, including the relationships among the derivative
instruments held by the Joint Venture as well as the volatility and
liquidity of the markets in which the derivative instruments are traded.
5
<PAGE>
The General Partner has procedures in place intended to control market
risk, although there can be no assurance that they will, in fact, succeed
in doing so. These procedures focus primarily on monitoring the trading of
the Trading Manager, calculating the Net Asset Value of the Joint Venture
as of the close of business on each day and reviewing outstanding
positions for over-concentration. While the General Partner will not
itself intervene in the markets to hedge or diversify the Joint Venture's
market exposure, the General Partner may urge the Trading Manager to
reallocate positions in an attempt to avoid over-concentrations. However,
such interventions are unusual. Except in cases in which it appears that
the Advisor has begun to deviate from past practice or trading policies or
to be trading erratically, the General Partner's basic risk control
procedures consist simply of the ongoing process of Trading Manager
monitoring, with the market risk controls being applied by the Trading
Manager.
Fair Value
----------
The derivative instruments used in the Joint Venture's trading activities
are marked to market daily with the resulting unrealized gains or losses
recorded in the Consolidated Statements of Financial Condition and the
related profit or loss reflected in trading revenues in the Consolidated
Statements of Income. The contract/notional values of the Trading
Partnership's open derivative instrument positions as of September 30,
1996 and December 31, 1995 were as follows:
<TABLE>
<CAPTION>
1996 1995
---------------------------------------------- -------------------------------------------------
Commitment to Commitment to Commitment to Commitment to
Purchase (Futures, Sell (Futures, Purchase (Futures, Sell (Futures,
Options & Forwards) Options & Forwards) Options & Forwards) Options & Forwards)
------------------- ------------------- ------------------- -------------------
<S> <C> <C> <C> <C>
Interest rate $43,029,817 $ - $17,631,109 $17,124,189
Stock indices 1,831,647 581,930 2,744,799 -
Commodities 302,720 1,386,779 987,392 1,770,746
Currencies 18,329,869 32,564,914 19,188,424 33,984,223
Energy 2,042,650 584,140 4,266,468 -
Metals 2,597,918 4,193,610 1,106,950 4,593,110
------------------ ----------------- -------------------- -------------------
$68,134,621 $39,311,373 $45,925,142 $57,472,268
================== ================= ==================== ===================
</TABLE>
Substantially all of the Joint Venture's derivative instruments
outstanding as of September 30, 1996 expire within one year.
The contract/notional value of the Trading Partnership's exchange-traded
and non-exchange-traded derivative instrument positions as of September
30, 1996 and December 31, 1995 were as follows:
<TABLE>
<CAPTION>
1996 1995
------------------------------------------- ---------------------------------------------
Commitment to Commitment to Commitment to Commitment to
Purchase (Futures, Sell (Futures, Purchase (Futures, Sell (Futures,
Options & Forwards) Options & Forwards) Options & Forwards) Options & Forwards)
------------------- ------------------- ------------------- -------------------
<S> <C> <C> <C> <C>
Exchange
traded $49,355,294 $3,542,150 $26,004,588 $21,373,095
Non-Exchange
traded 18,779,327 35,769,223 19,920,554 36,099,173
-------------------- -------------------- --------------------- --------------------
$68,134,621 $39,311,373 $45,925,142 $57,472,268
==================== ==================== ===================== ====================
</TABLE>
6
<PAGE>
The average fair value of the Partnership's derivative instrument
positions which were open as of the end of each calendar month during the
quarter ended September 30, 1996 and the year ended December 31, 1995 was
as follows:
<TABLE>
<CAPTION>
1996 1995
---------------------------------------------- -------------------------------------------------
Commitment to Commitment to Commitment to Commitment to
Purchase (Futures, Sell (Futures, Purchase (Futures, Sell (Futures,
Options & Forwards) Options & Forwards) Options & Forwards) Options & Forwards)
------------------- ------------------- ------------------- -------------------
<S> <C> <C> <C> <C>
Interest rate $24,625,332 $23,734,856 $20,766,056 $ 7,523,452
Stock indices 3,031,064 1,315,334 9,249,690 1,491,066
Commodities 2,041,272 1,041,072 1,548,022 1,302,572
Currencies 55,809,733 62,912,889 42,383,672 40,767,472
Energy 2,406,038 790,392 2,368,843 1,331,304
Metals 4,633,350 5,862,502 2,456,274 3,268,684
------------------ ----------------- -------------------- -------------------
$92,546,789 $95,657,045 $78,772,557 $55,684,550
================== ================= ==================== ===================
</TABLE>
A portion of the amounts indicated as off-balance sheet risk reflects
offsetting commitments to purchase and sell the same derivative instrument
on the same date in the future. These commitments are economically
offsetting but are not, as a technical matter, offset in the forward
market until the settlement date.
Credit Risk
-----------
The risks associated with exchange-traded contracts are typically
perceived to be less than those associated with over-the-counter
(non-exchange-traded) transactions, because exchanges typically (but not
universally) provide clearinghouse arrangements in which the collective
credit (in some cases limited in amount, in some cases not) of the members
of the exchange is pledged to support the financial integrity of the
exchange. In over-the-counter transactions, on the other hand, 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 also require margin in the over-the-counter markets.
The fair value amounts in the above tables represent the extent of the
Joint Venture's market exposure in the particular class of derivative
instrument listed, but not the credit risk associated with counterparty
nonperformance. The credit risk associated with these instruments from
counterparty nonperformance is the net unrealized gain, if any, included
in the Consolidated Statements of Financial Condition. The Joint Venture
also has credit risk because the sole counterparty or broker with respect
to most of the Joint Venture's assets is MLF.
As of September 30, 1996 and December 31, 1995, $6,671,025 and $7,759,078
of the Joint Venture's assets, respectively, were held in segregated
accounts at MLF in accordance with Commodity Futures Trading Commission
regulations.
The gross unrealized gain and the net unrealized gain on the Partnership's
open derivative instrument positions as of September 30, 1996 and December
31, 1995 were as follows:
<TABLE>
<CAPTION>
1996 1995
---- ----
Gross Net Gross Net
Unrealized Unrealized Unrealized Unrealized
Gain Gain (Loss) Gain Gain (Loss)
---------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Exchange
traded $640,622 $516,359 $ 892,375 $674,608
Non-Exchange
traded 611,501 86,878 205,307 (97,702)
-------------------- -------------------- --------------------- --------------------
$1,252,123 $603,237 $1,097,682 $576,906
==================== ==================== ===================== ====================
</TABLE>
The Partnership controls credit risk by dealing almost exclusively with
Merrill Lynch entities as brokers and counterparties.
The Partnership through its normal course of business enters into various
contacts with MLF acting as its commodity broker. Pursuant to the
brokerage arrangement with MLF, such trading which results in receivables
from and payables to MLF will be offset and reported as a net receivable
or payable.
7
<PAGE>
Item 2: Management's Discussion and Analysis of Financial Condition and
---------------------------------------------------------------
Results of Operations
---------------------
Operational Overview: Advisor Selections
- ----------------------------------------
Due to the nature of the Fund's business, its results of operations
depend on Trading Advisor's ability to recognize and capitalize on trends and
other profit opportunities in different Sectors of the world commodity markets.
The Trading Advisor's trading methods are confidential, so that substantially
the only information that can be furnished regarding the Fund's results of
operations is contained in the performance record of its trading. Unlike
operating businesses, general economic or seasonal conditions do not directly
affect the profit potential of the Fund, and its past performance is not
necessarily indicative of future results. Because of the speculative nature of
its trading, operational or economic trends have little relevance to the Fund's
results. MLIP believes, however, that there are certain market conditions, for
example, markets with strong price trends, in which the Fund has a better
likelihood of being profitable than in others.
Results of Operations - General
- -------------------------------
Unlike an operating business, MLIP believes that it is difficult
to identify "trends" in the Fund's operations and virtually impossible to make
any predictions regarding future results based on results to date (even over the
nine year operational history of the Fund to date). The Trading Advisor regards
its strategy as long-term in nature.
Markets in which sustained price trends occur with some frequency
tend to be more favorable to managed futures investments than "whipsaw,"
"choppy" markets, but (i) this is not always the case, (ii) it is impossible to
predict when trending markets will occur and (iii) the Trading Advisor is
affected by trends in general as well as by particular types of trends.
The Fund controls credit risk in its trading in the derivatives
markets by trading only through Merrill Lynch entities which MLIP believes to be
creditworthy. The Trading Advisor attempts to control the market risk inherent
in derivatives trading by applying multiple trading systems in each market as
well as implementing the basic risk management policies described above under
"Item 1: Business - (c) Narrative Description of Business." However, as a
single-advisor fund, the Partnership must be considered a more speculative
investment than the multi-advisor funds which have become popular in the public
commodity pool markets during approximately the last decade. Millburn Ridgefield
trades a diversified portfolio for the Fund, but with an emphasis on the
currency and financial instrument markets.
Performance Summary
- -------------------
During the nine months of 1995, the Fund's average month-end Net
Assets equalled $9,651,919, and the Fund recognized gross trading gains of
$2,245,993 or 23.27% of such average month-end Net Assets. Brokerage commissions
of $910,999 or 9.44% and Profit Shares of $339,769 or 3.52% of average month-end
Net Assets were paid. Interest income of $359,004 or 3.72% of average month-end
Net Assets resulted in a net gain of $1,354,229 or 14.03% of average month-end
Net Assets, which resulted in a 15.43% increase in the Net Asset Value per Unit
since December 31, 1994.
During the nine months of 1996, the Fund's average month-end Net
Assets equalled $9,298,561, and the Fund recognized gross trading gains of
$184,819 or 1.99% of such average month-end Net Assets. Brokerage commissions of
$824,186 or 8.86% and Administrative expense of $17,657 or .19% of average
month-end Net Assets were paid. Interest income of $284,096 or 3.06% of average
month-end Net Assets resulted in net loss of $372,928 or 4.01% of average month
end Net Assets which resulted in a 3.66% decrease in the Net Asset Value per
Unit since December 31, 1995.
During the nine months of 1996 and 1995, the Fund experienced 11
profitable months and 7 unprofitable months.
<TABLE>
<CAPTION>
MONTH-END NET ASSET VALUE PER UNIT
- ---------------------------------------------------------------------------------------
Jan. Feb. Mar. April May June July Aug. Sept.
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1995 $189.48 $201.01 $231.61 $240.44 $235.91 $237.51 $230.15 $231.47 $226.17
- ---------------------------------------------------------------------------------------
1996 $252.05 $224.51 $225.51 $236.49 $219.53 $227.57 $230.17 $224.71 $230.21
- ---------------------------------------------------------------------------------------
</TABLE>
8
<PAGE>
Importance of Market Factors
- ----------------------------
Comparisons between the Fund's performance in one fiscal year to
that in a prior year are unlikely to be meaningful, given the uncertainty of
price movements in the markets traded by the Fund. In general, MLIP expects that
the Fund is most likely to trade successfully in markets which exhibit strong
and sustained price trends. Millburn Ridgefield's strategy is based on technical
trend analysis (and certain non-trend following technical systems).
Consequently, one would expect that in trendless, "choppy" markets the Fund
would likely be unprofitable, while in markets in which major price movements
occur, the Fund would have its best profit potential (although there could be no
assurance that the Fund would, in fact, trade profitably). However, the Trading
Advisor will not infrequently miss major price movements, and market corrections
can result in rapid and material losses (sometimes as much as 10% in a single
day).
Liquidity
- ---------
Most of the Joint Venture's assets are held as cash which, in turn,
is used to margin its futures positions and earns interest income and is
withdrawn, as necessary, to pay redemptions and fees.
The futures contracts in which the Joint Venture trades may become
illiquid under certain market conditions. Commodity exchanges limit fluctuations
in futures prices during a single day by regulations referred to as "daily
limits." During a single day no trades may be executed at prices beyond the
daily limit. Once the price of a futures contract for a particular commodity has
increased or decreased by an amount equal to the daily limit, positions in the
commodity can generally neither be taken nor liquidated unless traders are
willing to effect trades at or within the limit. Futures contracts have
occasionally moved to the daily limit for several consecutive days with little
or no trading. Such market conditions could prevent the Joint Venture from
promptly liquidating its futures (including its options) positions. There are no
limitations on the daily price moves in trading foreign currency forward
contracts through banks, although illiquidity may develop in the forward markets
due to large spreads between "bid" and "ask" prices quoted. (Forward contracts
are the bank version of currency futures contracts and are not traded on
exchanges.)
Capital Resources
- -----------------
The Joint Venture does not have, nor does it expect to have, any
capital assets and has no material commitments for capital expenditures. The
Joint Venture uses its assets to supply the necessary margin or premiums for,
and to pay any losses incurred in connection with, its trading activity and to
pay redemptions and fees.
Inflation is not a significant factor in the Fund's profitability,
although inflationary cycles can give rise to the type of major price movements
which can have a materially favorable or adverse impact on the Fund's
performance.
9
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 2. Changes in Securities
None.
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. Exhibits and Reports on Form 8-K.
(a) Exhibits.
--------
There are no exhibits required to be filed as part of this
document.
(b) Reports on Form 8-K.
-------------------
There were no reports on Form 8-K filed during the nine months
of fiscal 1996.
10
<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 FUTURES EXPANSION FUND
LIMITED PARTNERSHIP
By: MERRILL LYNCH INVESTMENT PARTNERS INC.
(General Partner)
Date: November 11, 1996 By /s/ JOHN R. FRAWLEY, JR.
-----------------------
John R. Frawley, Jr.
President, Chief Executive Officer
and Director
Date: November 11, 1996 By /s/ JAMES M. BERNARD
-------------------
James M. Bernard
Chief Financial Officer,
Treasurer and Senior Vice President
<TABLE> <S> <C>
<PAGE>
<ARTICLE> BD
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM CONSOLIDATED
STATEMENTS OF FINANCIAL CONDITION, CONSOLIDATED STATEMENTS OF OPERATIONS,
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000799824
<NAME> FUTURE EXP, FUND LIMITED PARTNERSHIP
<S> <C> <C>
<PERIOD-TYPE> 9-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1995 DEC-31-1994
<PERIOD-START> JAN-01-1996 JAN-01-1995
<PERIOD-END> SEP-30-1996 SEP-30-1995
<CASH> 0 0
<RECEIVABLES> 9,071,338 9,950,138
<SECURITIES-RESALE> 0 0
<SECURITIES-BORROWED> 0 0
<INSTRUMENTS-OWNED> 0 0
<PP&E> 0 0
<TOTAL-ASSETS> 9,071,338 9,950,138
<SHORT-TERM> 0 0
<PAYABLES> 101,616 490,836
<REPOS-SOLD> 0 0
<SECURITIES-LOANED> 0 0
<INSTRUMENTS-SOLD> 0 0
<LONG-TERM> 0 0
0 0
0 0
<COMMON> 0 0
<OTHER-SE> 8,969,722 9,459,302
<TOTAL-LIABILITY-AND-EQUITY> 9,071,338 9,950,138
<TRADING-REVENUE> 184,819 2,245,993
<INTEREST-DIVIDENDS> 284,096 359,004
<COMMISSIONS> 841,843 1,250,768
<INVESTMENT-BANKING-REVENUES> 0 0
<FEE-REVENUE> 0 0
<INTEREST-EXPENSE> 0 0
<COMPENSATION> 0 0
<INCOME-PRETAX> (372,928) 1,354,229
<INCOME-PRE-EXTRAORDINARY> (372,928) 1,354,229
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> (372,928) 1,354,229
<EPS-PRIMARY> (9.22) 31.14
<EPS-DILUTED> (9.22) 31.14
</TABLE>
