UNITED STATES
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 period ended June 30, 1997 or
[ ] Transition report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period _________________to______________.
Commission File Number 0-15442
DEAN WITTER CORNERSTONE FUND IV
(Exact name of registrant as specified in its charter)
New York 13-3393597
(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification
No.)
c/o Demeter Management Corporation
Two World Trade Center, 62 Fl., New York, NY 10048
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 392-5454
(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
(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>
<TABLE>
DEAN WITTER CORNERSTONE FUND IV
INDEX TO QUARTERLY REPORT ON FORM 10-Q
June 30, 1997
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition
June 30, 1997 (Unaudited) and December 31, 1996............2
Statements of Operations for the Quarters Ended
June 30, 1997 and 1996 (Unaudited).........................3
Statements of Operations for the Six Months Ended
June 30, 1997 and 1996 (Unaudited).........................4
Statements of Changes in Partners' Capital for the
Six Months Ended June 30, 1997 and 1996
(Unaudited)................................................5
Statements of Cash Flows for the Six Months Ended
June 30, 1997 and 1996 (Unaudited).........................6
Notes to Financial Statements (Unaudited)...............7-12
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations...............13-18
PART II. OTHER INFORMATION
Item 1. Legal Proceedings................................19-20
Item 5. Other Information...................................20
Item 6. Exhibits and Reports on Form 8-K....................21
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER CORNERSTONE FUND IV
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
June 30, December 31,
1997 1996
$ $
(Unaudited)
ASSETS
<S> <C> <C>
Equity in Commodity futures trading accounts:
Cash 99,691,162 91,656,399
Net unrealized gain (loss) on open contracts (271,215)
5,330,520
Total Trading Equity 99,419,947 96,986,919
Interest receivable (DWR) 327,560 305,391
Total Assets 99,747,507 97,292,310
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 681,159 1,269,513
Accrued management fees 330,698 322,552
Common administrative expenses payable 125,134 126,007
Accrued brokerage commissions (DWR) 77,616 74,340
Accrued transaction fees and costs 4,567
3,654
Total Liabilities 1,219,174 1,796,066
Partners' Capital
Limited Partners (27,217.715 and
29,160.287 Units, respectively)96,268,594 93,448,822
General Partner (638.889 Units) 2,259,739 2,047,422
Total Partners' Capital 98,528,333 95,496,244
Total Liabilities and Partners' Capital99,747,507 97,292,310
NET ASSET VALUE PER UNIT 3,536.98 3,204.66
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER CORNERSTONE FUND IV
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Quarters Ended June 30,
1997 1996
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized (1,181,474) 3,865,319
Net change in unrealized (1,179,769) 1,144,346
Total Trading Results (2,361,243) 5,009,665
Interest Income (DWR) 1,036,775 1,018,979
Total Revenues (1,324,468) 6,028,644
EXPENSES
Management fees 1,011,085 1,008,992
Brokerage commissions (DWR) 752,284 1,044,984
Transaction fees and costs 47,546 58,978
Common administrative expenses 33,388
9,332
Total Expenses 1,844,303 2,122,286
NET INCOME (LOSS) (3,168,771) 3,906,358
NET INCOME (LOSS) ALLOCATION
Limited Partners (3,097,184) 3,834,695
General Partner (71,587) 71,663
NET INCOME (LOSS) PER UNIT
Limited Partners (112.05) 112.17
General Partner (112.05) 112.17
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER CORNERSTONE FUND IV
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Six Months Ended June 30,
1997 1996
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 17,204,603 3,377,864
Net change in unrealized (5,601,735) 2,509,113
Total Trading Results 11,602,868 5,886,977
Interest Income (DWR) 2,048,277 2,039,400
Total Revenues 13,651,145 7,926,377
EXPENSES
Management fees 2,052,759 2,030,247
Brokerage commissions (DWR) 1,478,595 1,888,542
Transaction fees and costs 90,957 109,211
Common administrative expenses 70,539
18,143
Total Expenses 3,692,850 4,046,143
NET INCOME 9,958,295 3,880,234
NET INCOME ALLOCATION
Limited Partners 9,745,978 3,809,442
General Partner 212,317 70,792
NET INCOME PER UNIT
Limited Partners 332.32 110.81
General Partner 332.32 110.81
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER CORNERSTONE FUND IV
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the Six Months Ended June 30, 1997 and 1996
(Unaudited)
<CAPTION>
Units of
Partnership Limited General
Interest Partners Partner Total
<S> <C> <C>
<C> <C>
Partners' Capital,
December 31, 1995 36,544.514 $101,854,654
$1,812,357 $103,667,011
Offering of Units 25.735 73,609 -
73,609
Net Income - 3,809,442
70,792 3,880,234
Redemptions (3,462.600) (10,034,804)
- - (10,034,804)
Partners' Capital,
June 30, 1996 33,107.649 $95,702,901
$1,883,149 $97,586,050
Partners' Capital,
December 31, 1996 29,799.176 $93,448,822
$2,047,422 $95,496,244
Offering of Units 11.519 39,545
- - 39,545
Net Income - 9,745,978
212,317 9,958,295
Redemptions (1,954.091) (6,965,751)
- - (6,965,751)
Partners' Capital,
June 30, 1997 27,856.604 $96,268,594
$2,259,739 $98,528,333
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER CORNERSTONE FUND IV
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
For the Six Months Ended June 30,
1997 1996
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net income 9,958,295
3,880,234
Noncash item included in net income:
Net change in unrealized 5,601,735
(2,509,113)
Increase (decrease) in operating assets:
Interest receivable (DWR) (22,169) 22,247
Increase (decrease) in operating liabilities:
Accrued management fees 8,146
(17,794)
Common administrative expenses payable
(873) (110,546)
Accrued brokerage commissions (DWR)3,276 49,464
Accrued transaction fees and costs
913 2,473
Net cash provided by operating activities15,549,323 1,316,965
CASH FLOWS FROM FINANCING ACTIVITIES
Offering of units 39,545 73,609
Increase (decrease) in redemptions payable(588,354)
742,463
Redemptions of units (6,965,751)
(10,034,804)
Net cash used for financing activities(7,514,560)
(9,218,732)
Net increase (decrease) in cash 8,034,763 (7,901,767)
Balance at beginning of period 91,656,399 104,927,961
Balance at end of period 99,691,162
97,026,194
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
DEAN WITTER CORNERSTONE FUND IV
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
The financial statements include, in the opinion of management,
all adjustments necessary for a fair presentation of the results
of operations and financial condition. The financial statements
and condensed notes herein should be read in conjunction with the
Partnership's December 31, 1996 Annual Report on Form 10-K.
1. Organization
Dean Witter Cornerstone Fund IV (the "Partnership") is a limited
partnership organized to engage in the speculative trading of
commodity futures contracts and forward contracts on foreign
currencies (collectively, "futures interests"). The Partnership
is one of the Dean Witter Cornerstone Funds, comprised of Dean
Witter Cornerstone Fund II, Dean Witter Cornerstone Fund III, and
Dean Witter Cornerstone Fund IV. The general partner for the
Partnership is Demeter Management Corporation ("Demeter"). The
commodity broker is Dean Witter Reynolds Inc. ("DWR"). Both
Demeter and DWR are wholly owned subsidiaries of Morgan Stanley,
Dean Witter, Discover & Co. ("MSDWD"). The trading advisors who
make all trading decisions for the Partnership are John W. Henry
& Company, Inc. ("JWH") and Sunrise Capital Management.
<PAGE>
DEAN WITTER CORNERSTONE FUND IV
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
2. Related Party Transactions
The Partnership's cash is on deposit with DWR in commodity
trading accounts to meet margin requirements as needed. DWR pays
interest on these funds based on current 13-week U.S. Treasury
Bill rates. Brokerage expenses incurred by the Partnership are
paid to DWR.
3. Financial Instruments
The Partnership trades futures and forward contracts in interest
rates, stock indices and currencies. Futures and forwards
represent contracts for delayed delivery of an instrument at a
specified date and price. Risk arises from changes in the value
of these contracts and the potential inability of counterparties
to perform under the terms of the contracts. There are numerous
factors which may significantly influence the market value of
these contracts, including interest rate volatility. At June 30,
1997 and December 31, 1996, open contracts were:
Contract or Notional Amount
June 30, 1997 December 31, 1996
$ $
Exchange-Traded Contracts
Financial Futures:
Commitments to Purchase 114,830,000 93,583,000
Commitments to Sell 80,811,000 118,029,000
Off-Exchange-Traded
Forward Currency Contracts
Commitments to Purchase 185,874,000 208,140,000
Commitments to Sell 200,620,000 205,227,000
<PAGE>
DEAN WITTER CORNERSTONE FUND IV
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
A portion of the amounts indicated as off-balance-sheet risk in
forward currency contracts is due to offsetting forward
commitments to purchase and to sell the same currency on the same
date in the future. These commitments are economically
offsetting, but are not offset in the forward market until the
settlement date.
The net unrealized gains (losses) on open contracts are reported
as a component of "Equity in Commodity futures trading accounts"
on the Statements of Financial Condition and totaled $(271,215)
and $5,330,520 at June 30, 1997 and December 31, 1996
respectively. Of the $271,215 net unrealized loss on open
contracts at June 30, 1997, $302,963 related to exchange-traded
futures contracts and $(574,178) related to off-exchange-traded
forward currency contracts. Of the $5,330,520 net unrealized
gain on open contracts at December 31, 1996, $5,350,525 related
to exchange-traded futures contracts and $(20,005) related to off-
exchange-traded forward currency contracts.
Exchange-traded futures contracts held by the Partnership at June
30, 1997 and December 31, 1996 mature through September 1997 and
March 1997, respectively. Off-exchange-traded forward currency
contracts held by the Partnership at June 30, 1997 and December
31, 1996 mature through September 1997 and March 1997,
<PAGE>
DEAN WITTER CORNERSTONE FUND IV
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
respectively. The contract amounts in the above table represent
the Partnership's extent of involvement in the particular class
of financial instrument, but not the credit risk associated with
counterparty nonperformance. The credit risk associated with
these instruments is limited to the amounts reflected in the
Partnership's Statements of Financial Condition.
The Partnership also has credit risk because the sole
counterparty, with respect to most of the Partnership's assets is
DWR. Exchange-traded futures contracts are marked to market on a
daily basis, with variations in value settled or charged to the
Fund's account on a daily basis. DWR, as the futures commission
merchant for all of the Partnership's exchange-traded futures
contracts, is required pursuant to regulations of the Commodity
Futures Trading Commission ("CFTC") to segregate from its own
assets and for the sole benefit of its commodity customers, all
funds held by DWR with respect to exchange-traded futures
contracts including an amount equal to the net unrealized gain or
losses on all open futures contracts which funds totaled
$99,994,125 and $97,026,924 at June 30, 1997 and December 31,
1996, respectively. With respect to the Partnership's off-
exchange-traded forward currency contracts, there are no daily
settlements of variations in value nor is there any requirement
<PAGE>
DEAN WITTER CORNERSTONE FUND IV
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
that an amount equal to the net unrealized gain on open forward
contracts be segregated. With respect to those off-exchange-
traded forward currency contracts, the Partnership is at risk to
the ability of DWR, the counterparty on all such contracts, to
perform.
For the six months ended June 30, 1997 and the year ended
December 31, 1996, the average fair value of financial
instruments held for trading purposes was as follows:
June 30, 1997
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 57,662,000 88,032,000
Off-Exchange-Traded Forward
Currency Contracts 275,671,000 340,863,000
December 31, 1996
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 67,114,000 125,331,000
Off-Exchange-Traded Forward
Currency Contracts 334,452,000 334,461,000
4. Subsequent Event
On July 31, 1997, DWR closed the sale of its institutional
futures business and foreign currency trading operations to Carr
Futures
<PAGE>
DEAN WITTER CORNERSTONE FUND IV
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
Inc. ("Carr"), a subsidiary of Credit Agricole Indosuez.
Following the sale, Carr became the counterparty on the
Partnership's foreign currency trades. However, during a
transition period of about three months, DWR will continue to
perform certain services relating to the Partnership's futures
trading including clearance. After such transition period, DWR
will continue to serve as a futures broker for the Partnership
with Carr providing execution and clearing services for the
Partnership's account.
<PAGE>
Item 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.
Liquidity. The Partnership's assets are deposited in futures
interest trading accounts with DWR, and are used by the
Partnership as margin to engage in futures interest trading. DWR
holds such assets in either designated depositories or in
securities approved by the CFTC for investment of customer funds.
The Partnership's assets held by DWR may be used as margin solely
for the Partnership's trading. Since the Partnership's sole
purpose is to trade in futures interests, it is expected that the
Partnership will continue to own such liquid assets for margin
purposes.
The Partnership's investment in futures interests may, from time
to time, be illiquid. Most United States futures exchanges limit
fluctuations in certain futures interest prices during a single
day by regulations referred to as "daily price fluctuations
limits" or "daily limits". Pursuant to such regulations, during
a single trading day no trades may be executed at prices beyond
the daily limit. If the price of a particular futures has
increased or decreased by an amount equal to the "daily limit",
positions in such futures interest can neither be taken nor
liquidated unless traders are willing to effect trades at or
within the limit. Futures interest prices have occasionally
moved the daily limit for several consecutive days with little or
no trading. Such market conditions could prevent the Partnership
<PAGE>
from promptly liquidating its futures interests and result in
restrictions on redemptions. However, since the commencement of
trading by the Partnership, there has never been a time when
illiquidity has affected a material portion of the Partnership's
assets.
There is no limitation on daily price moves in trading forward
contracts on foreign currency. The markets for some world
currencies have low trading volume and are illiquid, which may
prevent the Partnership from trading in profitable markets or
prevent the Partnership from promptly liquidating unfavorable
positions in such markets and subjecting it to substantial
losses.
Either of these market conditions could result in restrictions on
redemptions.
Capital Resources The Partnership does not have, nor does it
expect to have, any capital assets. Redemptions and sales of
Units of Limited Partnership Interest in the future will affect
the amount of funds available for investments in futures
interests in subsequent periods. As redemptions are at the
discretion of the Limited Partners, it is not possible to
estimate the amount and therefore the impact of future
redemptions.
<PAGE>
Results of Operations
For the Quarter and Six Months Ended June 30, 1997
For the quarter ended June 30, 1997, the Partnership's total
trading losses net of interest income were $1,324,468. During
the second quarter, the Partnership posted a decrease in Net
Asset Value per Unit. Losses were recorded during May and June
from short positions in the Singapore dollar as its value moved
higher relative to the U.S. dollar after trending lower earlier
in the year. Additional losses were recorded during these same
months from transactions involving the New Zealand dollar. In
April, transactions involving the Swiss franc and Malaysian
ringgit resulted in additional losses as the value of these
currencies moved without consistent direction. Smaller losses
were experienced during April from long positions in the British
pound as its value finished the month lower relative to the U.S.
dollar. A portion of these losses was offset by gains recorded
during April from short positions in the Japanese yen as the
value of the U.S. dollar strengthened relative to the yen, and
from long positions in the yen during June as its value moved
higher versus the U.S. dollar. Smaller gains were recorded
during June from transactions involving the German mark. Total
expenses for the period were $1,844,303, resulting in a net loss
of $3,168,771. The value of an individual Unit in the
Partnership decreased from $3,649.03 at March 31, 1997 to
$3,536.98 at June 30, 1997.
<PAGE>
For the six months ended June 30, 1997, the Partnership's total
trading revenues including interest income were $13,651,145.
During the first six months, the Partnership posted an increase
in Net Asset Value per Unit. The most significant trading gains
were recorded from a strong upward trend in the value of the U.S.
dollar versus most other major currencies during January and
February. As a result, gains were recorded from short positions
in the Singapore dollar, most European currencies, particularly
the German mark, French and Swiss francs, and the Japanese yen.
The strengthening of the U.S. dollar relative to the Japanese yen
continued during March and April, thus resulted in additional
gains for the Partnership's short yen positions. A portion of
the Partnership's overall currency gains for the first half of
the year was offset by losses experienced from transactions
involving the British pound during the first quarter. Losses
were also recorded from transactions involving the New Zealand
dollar during March, May and June, and the Australian dollar
during January. Smaller losses were experienced from trading the
Malaysian ringgit as profits recorded during March and May were
more than offset by losses experienced during April. Total
expenses for the period were $3,692,850, resulting in net income
of $9,958,295. The value of an individual Unit in the
Partnership increased from $3,204.66 at December 31, 1996 to
$3,536.98 at June 30, 1997.
For the Quarter and Six Months Ended June 30, 1996
For the quarter ended June 30, 1996, the Partnership's total
<PAGE>
trading revenues including interest income were $6,028,644.
During the second quarter, the Partnership posted an increase in
Net Asset Value per Unit. The most significant gains were
recorded in this currency-only Fund during April from short
positions in the German mark, as well as in the Swiss and French
franc, as the value of these currencies moved lower relative to
other world currencies. Short Swiss franc positions also
profited during May as the franc's value continued to move lower
versus the U.S. dollar. Additional gains were recorded from long
positions in the Australian dollar as the value of the Australian
dollar moved higher relative to other major currencies during
April and May. These gains were partially offset by losses
recorded during June as the Australian dollar lost its upward
momentum. Long positions in the British pound also profited
during May as its value experienced an upward move relative to
the U.S. dollar. Losses recorded from previously established
short positions in the Japanese yen during April, as its value
moved sharply higher late in the month, more than offset gains
recorded from short yen positions during June. Total expenses
for the quarter were $2,122,286, resulting in net income of
$3,906,358. The value of an individual Unit in the Partnership
increased from $2,835.37 at March 31, 1996 to $2,947.54 at June
30, 1996.
For the six months ended June 30, 1996, the Partnership's total
trading revenues including interest income were $7,926,377.
During the first half of the year, the Partnership posted an
<PAGE>
increase in Net Asset Value per Unit. The most significant gains
were recorded from long positions in the Australian dollar as its
value moved higher relative to other world currencies from
February to mid-May. Gains recorded from short positions in the
Japanese yen, as the value of the yen moved lower during January,
March and June, were partially offset by losses recorded from
transactions involving the yen during February and April.
Additional gains were recorded from transactions involving the
New Zealand dollar during January and March. A portion of
overall gains was offset by losses recorded from transactions
involving the Singapore dollar throughout the first quarter.
Losses recorded in most major world currencies during February,
due to sharp reversals and volatile price movement, also offset a
portion of the gains recorded in the first half of the year.
Total expenses for the period were $4,046,143, resulting in net
income of $3,880,234. The value of an individual Unit in the
Partnership increased from $2,836.73 at December 31, 1995 to
$2,947.54 at June 30, 1996.
<PAGE>
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
On September 6, 10, and 20, 1996, and on March 13, 1997, similar
purported class actions were filed in the Superior Court of the
State of California, County of Los Angeles, on behalf of all
purchasers of interests in limited partnership commodity pools
sold by DWR. Named defendants include DWR, Demeter, Dean Witter
Futures & Currency Management, Inc., MSDWD (all such parties
referred to hereafter as the "Dean Witter Parties"), the
Partnership, certain other limited partnership commodity pools of
which Demeter is the general partner, and certain trading
advisors (including JWH) to those pools. On June 16, 1997, the
plaintiffs in the above actions filed a consolidated amended
complaint. Similar purported class actions were also filed on
September 18 and 20, 1996 in the Supreme Court of the State of
New York, New York County, and on November 14, 1996 in the
Superior Court of the State of Delaware, New Castle County,
against the Dean Witter Parties and certain trading advisors
(including JWH) on behalf of all purchasers of interests in
various limited partnership commodity pools, including the
Partnership, sold by DWR. Generally, these complaints allege,
among other things, that the defendants committed fraud, deceit,
misrepresentation, breach of fiduciary duty, fraudulent and
unfair business practices, unjust enrichment, and conversion in
connection with the sale and operation of the various limited
partnership commodity pools. The
<PAGE>
complaints seek unspecified amounts of compensatory and punitive
damages and other relief. It is possible that additional similar
actions may be filed and that, in the course of these actions,
other parties could be added as defendants. The Dean Witter
Parties believe that they and the Partnership have strong
defenses to, and they will vigorously contest, the actions.
Although the ultimate outcome of legal proceedings cannot be
predicted with certainty, it is the opinion of management of the
Dean Witter Parties that the resolution of the actions will not
have a material adverse effect on the financial condition or the
results of operations of any of the Dean Witter Parties or the
Partnership.
Item 5. OTHER INFORMATION
On July 21, 1997, MSDWD, the sole shareholder of Demeter,
appointed a new Board of Directors consisting of Richard M.
DeMartini, Mark J. Hawley, Lawrence Volpe, Joseph G. Siniscalchi,
Edward C. Oelsner III, and Robert E. Murray.
<PAGE>
Item 6. - EXHIBITS AND REPORTS ON FORM 8-K
(A) Exhibits - None.
(B) Reports on Form 8-K - None.
<PAGE>
SIGNATURE
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.
Dean Witter Cornerstone Fund IV
(Registrant)
By: Demeter Management Corporation
(General Partner)
August 12, 1997 By: /s/ Patti L. Behnke
Patti L. Behnke
Chief Financial Officer
The General Partner which signed the above is the only party
authorized to act for the Registrant. The Registrant has no
principal executive officer, principal financial officer,
controller, or principal accounting officer and has no Board of
Directors.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from Dean
Witter Cornerstone Fund IV and is qualified in its entirety by reference
to such financial instruments.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-END> JUN-30-1997
<CASH> 99,691,162
<SECURITIES> 0
<RECEIVABLES> 327,560
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 99,747,507<F1>
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 99,747,507<F2>
<SALES> 0
<TOTAL-REVENUES> 13,651,145<F3>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,692,850
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 9,958,295
<INCOME-TAX> 0
<INCOME-CONTINUING> 9,958,295
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9,958,295
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>In addition to cash and receivables, total assets include net unrealized
loss on open contracts of $(271,215).
<F2>Liabilities include redemptions payable of $681,159, accrued management
fees of $330,698, common administrative expenses payable of $125,134,
accrued brokerage commissions of $77,616 and accrued transaction fees
and costs of $4,567.
<F3>Total revenue includes realized trading revenue of $17,204,603, net
change in unrealized of $(5,601,735) and interest income of $2,048,277.
</FN>
</TABLE>
