FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(X) QUARTERLY REPORT UNDER SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
OR ( ) TRANSITION REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter ended September 30, 1998
Commission File Number 0-16526
HUTTON INVESTORS FUTURES FUND L.P. II
(Exact name of registrant as specified in its charter)
Delaware 13-3406160
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
c/o Smith Barney Futures Management Inc.
390 Greenwich St. - 1st. Fl.
New York, New York 10013
(Address and Zip Code of principal executive offices)
(212) 723-5424
(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
<PAGE>
HUTTON INVESTORS FUTURES FUND L.P. II
FORM 10-Q
INDEX
Page
Number
PART I - Financial Information:
Item 1. Financial Statements:
Statement of Financial Condition at
September 30, 1998 and December 31,
1997. 3
Statement of Income and Expenses and Partners' Capital
for the three and nine months ended September 30, 1998
and 1997. 4
Notes to Financial Statements 5 - 8
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations 9 - 11
Item 3. Quantitative and Qualitative Disclosures
of Market Risk 12
PART II - Other Information 13 - 14
2
<PAGE>
PART I
Item 1. Financial Statements
HUTTON INVESTORS FUTURES FUND L.P. II
STATEMENT OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
1998 1997
---------- ------------
(Unaudited)
<S> <C> <C>
ASSETS:
Equity in commodity futures trading account:
Cash and cash equivalents $19,372,799 $21,096,196
Net unrealized appreciation on open
futures contracts 4,346,448 1,285,315
----------- -----------
$23,719,247 $22,381,511
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL:
Liabilities:
Accrued expenses:
Commissions on open futures contracts $ 105,608 $ 88,012
Incentive fees 433,960 347,297
Other 27,117 24,732
Redemptions payable 80,714 379,980
----------- -----------
647,399 840,021
----------- -----------
Partners' capital :
General Partner, 44 Unit equivalents
in 1998 and 1997 273,187 245,869
Limited Partners, 3,672 and 3,811 Units
of Limited Partnership Interest
outstanding in 1998 and 1997, respectively 22,798,661 21,295,621
----------- -----------
23,071,848 21,541,490
----------- -----------
$23,719,247 $22,381,511
=========== ===========
</TABLE>
See Notes to Financial Statements.
3
<PAGE>
HUTTON INVESTORS FUTURES FUND L.P. II
STATEMENT OF INCOME AND EXPENSES AND PARTNERS' CAPITAL
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
----------- ------------ ------------- -------------
1998 1997 1998 1997
----------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Income:
Net gains (losses) on trading of commodity
futures:
Realized gains (losses) on closed positions $ (579,586) $ 1,404,647 $ (317,219) $ 1,463,491
Change in unrealized gains/losses on open
positions 5,017,429 320,642 3,061,133 537,522
------------ ------------ ------------ ------------
4,437,843 1,725,289 2,743,914 2,001,013
Less, brokerage commissions and clearing fees
($4,995, $5,562, $15,348 and $11,679, respectively) (193,542) (181,507) (594,355) (499,543)
------------ ------------ ------------ ------------
Net realized and unrealized gains 4,244,301 1,543,782 2,149,559 1,501,470
Interest income 192,566 194,924 587,739 577,289
------------ ------------ ------------ ------------
4,436,867 1,738,706 2,737,298 2,078,759
------------ ------------ ------------ ------------
Expenses:
Incentive fees 433,960 96,503 441,174 298,741
Other 11,714 13,146 33,752 33,829
------------ ------------ ------------ ------------
445,674 109,649 474,926 332,570
------------ ------------ ------------ ------------
Net income 3,991,193 1,629,057 2,262,372 1,746,189
Redemptions (80,714) (212,364) (732,014) (579,762)
------------ ------------ ------------ ------------
Net increase in Partners' capital 3,910,479 1,416,693 1,530,358 1,166,427
Partners' capital, beginning of period 19,161,369 18,902,899 21,541,490 19,153,165
------------ ------------ ------------ ------------
Partners' capital, end of period $ 23,071,848 $ 20,319,592 $ 23,071,848 $ 20,319,592
------------ ------------ ------------ ------------
Net asset value per Unit
(3,716 and 3,923 Units outstanding
at September 30, 1998 and 1997, respectively) $ 6,208.79 $ 5,179.61 $ 6,208.79 $ 5,179.61
------------ ------------ ------------ ------------
Net income per Unit of Limited Partnership
Interest and General Partner Unit equivalent $ 1,070.32 $ 410.97 $ 620.85 $ 437.55
------------ ------------ ------------ ------------
</TABLE>
See Notes to Finanacial Statements
4
<PAGE>
HUTTON INVESTORS FUTURES FUND L.P. II
NOTES TO FINANCIAL STATEMENTS
September 30, 1998
(Unaudited)
1. General
Hutton Investors Futures Fund L.P. II (the "Partnership") is a limited
partnership, organized on March 31, 1987 under the partnership laws of the State
of Delaware, to engage in the speculative trading of a diversified portfolio of
commodity interests including futures contracts, options and forward contracts.
The commodity interests that are traded by the partnership are volatile and
involve a high degree of market risk. The Partnership commenced operations on
July 24, 1987.
Smith Barney Futures Management Inc. acts as the general partner (the
"General Partner") of the Partnership. On September 1, 1998, the Partnership's
commodity broker, Smith Barney Inc., merged with Salomon Brothers Inc and
changed its name to Salomon Smith Barney Inc. ("SSB"). SSB is an affiliate of
the General Partner. The General Partner is wholly owned by Salomon Smith Barney
Holdings Inc. ("SSBH"), which is the sole owner of SSB. SSBH is a wholly owned
subsidiary of Travelers Group Inc. All trading decisions are made for the
Partnership by John W. Henry & Company, Inc., and TrendLogic Associates,
(collectively, the "Advisors"). (see Note 5)
The accompanying financial statements are unaudited but, in the opinion
of management, include all adjustments (consisting only of normal recurring
adjustments) necessary for a fair presentation of the Partnership's financial
condition at September 30, 1998 and the results of its operations for the three
and nine months ended September 30, 1998 and 1997. These financial statements
present the results of interim periods and do not include all disclosures
normally provided in annual financial statements. It is suggested that these
financial statements be read in conjunction with the financial statements and
notes included in the Partnership's annual report on Form 10-K filed with the
Securities and Exchange Commission for the year ended December 31, 1997.
Due to the nature of commodity trading, the results of operations for
the interim periods presented should not be considered indicative of the results
that may be expected for the entire year.
5
<PAGE>
HUTTON INVESTORS FUTURES FUND L.P. II
NOTES TO FINANCIAL STATEMENTS
September 30, 1998
(continued)
2. Net Asset Value Per Unit
Changes in net asset value per Unit for the three and nine months ended
September 30, 1998 and 1997 were as follows:
THREE-MONTHS ENDED NINE-MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1998 1997 1998 1997
Net realized and unrealized
gains $1,138.19 $ 389.46 $ 593.50 $376.06
Interest income 51.64 49.17 154.50 144.38
Expenses (119.51) (27.66) (127.15) (82.89)
--------- --------- --------- ---------
Increase for period 1,070.32 410.97 620.85 437.55
Net Asset Value per Unit,
beginning of period 5,138.47 4,768.64 5,587.94 4,742.06
--------- --------- --------- ---------
Net Asset Value per Unit,
end of period $ 6,208.79 $5,179.61 $6,208.79 $5,179.61
========= ========= ========= =========
3. Trading Activities:
The Partnership was formed for the purpose of trading contracts in a
variety of commodity interests, including derivative financial instruments and
derivative commodity instruments. The results of the Partnership's trading
activity are shown in the statement of income and expenses.
The Customer Agreement between the Partnership and SSB gives the
Partnership the legal right to net unrealized gains and losses.
All of the commodity interests owned by the Partnership are held for
trading purposes. The fair value of these commodity interests, including options
thereon, at September 30, 1998 and December 31, 1997 was $4,346,448 and
$1,285,315, respectively, and the average fair value during the nine and twelve
months then ended, based on monthly calculation, was $958,831 and $1,284,957,
respectively.
4. Financial Instrument Risk:
The Partnership is party to financial instruments with off- balance
sheet risk, including derivative financial instruments and derivative commodity
instruments, in the normal course of its business. These financial instruments
include forwards, futures and
6
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options, whose value is based upon an underlying asset, index, or reference
rate, and generally represent future commitments to exchange currencies or cash
flows, to purchase or sell other financial instruments at specific terms at
specified future dates, or, in the case of derivative commodity instruments, to
have a reasonable possibility to be settled in cash or with another financial
instrument. These instruments may be traded on an exchange or over-the-counter
("OTC"). Exchange traded instruments are standardized and include futures and
certain option contracts. OTC contracts are negotiated between contracting
parties and include forwards and certain options. Each of these instruments is
subject to various risks similar to those related to the underlying financial
instruments including market and credit risk. In general, the risks associated
with OTC contracts are greater than those associated with exchange traded
instruments because of the greater risk of default by the counterparty to an OTC
contract.
Market risk is the potential for changes in the value of the financial
instruments traded by the Partnership due to market changes, including interest
and foreign exchange rate movements and fluctuations in commodity or security
prices. Market risk is directly impacted by the volatility and liquidity in the
markets in which the related underlying assets are traded.
Credit risk is the possibility that a loss may occur due to the failure
of a counterparty to perform according to the terms of a contract. Credit risk
with respect to exchange traded instruments is reduced to the extent that an
exchange or clearing organization acts as a counterparty to the transactions.
The Partnership's risk of loss in the event of counterparty default is typically
limited to the amounts recognized in the statement of financial condition and
not represented by the contract or notional amounts of the instruments. The
Partnership has concentration risk because the sole counterparty or broker with
respect to the Partnership's assets is SSB.
The General Partner monitors and controls the Partnership's risk
exposure on a daily basis through financial, credit and risk management
monitoring systems and, accordingly believes that it has effective procedures
for evaluating and limiting the credit and market risks to which the Partnership
is subject. These monitoring systems allow the General Partner to statistically
analyze actual trading results with risk adjusted performance indicators and
correlation statistics. In addition, on-line monitoring systems provide account
analysis of futures, forwards and options positions by sector, margin
requirements, gain and loss transactions and collateral positions.
The notional or contractual amounts of these instruments, while not
recorded in the financial statements, reflect the extent of the Partnership's
involvement in these instruments. At September 30, 1998, the notional or
contractual amounts of the Partnership's commitment to purchase and sell these
instruments was $289,489,158 and $21,051,889 respectively, as detailed below.
All of these instruments
7
<PAGE>
mature within one year of September 30, 1998. However, due to the nature of the
Partnership's business, these instruments may not be held to maturity. At
September 30, 1998, the fair value of the Partnership's derivatives, including
options thereon, was $4,346,448, as detailed below.
SEPTEMBER 30, 1998
NOTIONAL OR CONTRACTUAL
AMOUNT OF COMMITMENTS
TO PURCHASE TO SELL FAIR VALUE
Currencies:
- -Exchange Traded Contracts $ 508,625 $ 196,200 $ 6,910
- -OTC Contracts 46,826,786 10,965,860 736,000
Energy 1,515,382 - 26,318
Grains 106,404 902,925 137,059
Interest Rates U.S. 70,968,219 - 1,099,953
Interest Rates Non-U.S 167,894,816 135,469 2,145,009
Livestock - 174,160 1,260
Metals 838,463 2,508,793 (69,283)
Softs 674,454 1,471,365 (5,548)
Indices 156,009 4,697,117 268,770
------------ ----------- -----------
Totals $289,489,158 $21,051,889 $ 4,346,448
============ =========== ===========
At December 31, 1997, the notional or contractual amounts of the
Partnership's commitment to purchase and sell these instruments was $93,971,478
and $106,119,565, respectively, and, the fair value of the Partnership's
derivatives, including options thereon, was $1,285,315, as detailed below.
DECEMBER 31, 1997
NOTIONAL OR CONTRACTUAL
AMOUNT OF COMMITMENTS
TO PURCHASE TO SELL FAIR VALUE
Currencies:
- - Exchange Traded Contracts $ 202,585 $ 1,130,915 $ 6,183
- - OTC Contracts 20,110,834 40,229,303 90,831
Energy - 1,835,392 114,647
Grains 269,580 998,400 16,461
Interest Rates U.S. 26,445,738 471,375 122,125
Interest Rates Non-U.S 42,438,955 50,816,858 134,897
Livestock - 120,150 4,750
Metals 2,269,614 6,174,125 661,030
Softs 1,891,654 1,664,380 23,372
Indices 342,518 2,678,667 111,019
----------- ------------ ----------
Totals $93,971,478 $106,119,565 $1,285,315
=========== ============ ==========
5. Subsequent Event:
On October 8, 1998, Travelers Group Inc. merged with Citicorp Inc. and
changed its name to Citigroup Inc.
8
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
Liquidity and Capital Resources
The Partnership does not engage in the sale of goods or services. Its
only assets are its equity in its commodity futures trading account, consisting
of cash and cash equivalents (such as U.S. Treasury Bills, which constituted
approximately 70% of the Partnership's assets at September 30, 1998) and net
unrealized appreciation (depreciation) on open futures contracts. Because of the
low margin deposits normally required in commodity futures trading, relatively
small price movements may result in substantial losses to the Partnership. While
substantial losses could lead to a substantial decrease in liquidity, no such
losses occurred in the Partnership's third quarter of 1998.
The Partnership's capital consists of the capital contributions of the
partners as increased or decreased by gains or losses on commodity futures
trading, expenses, interest income, redemptions of Units and distributions of
profits, if any.
For the nine months ended September 30, 1998, Partnership capital
increased 7.1% from $21,541,490 to $23,071,848. This increase was attributable
to net income from operations of $2,262,372 which was partially offset by the
redemption of 139 Units resulting in an outflow of $732,014 for the nine months
ended September 30, 1998. Future redemptions can impact the amount of funds
available for investment in commodity contract positions in subsequent months.
Operational Risk
The General Partner administers the business of the Partnership through
various systems and processes maintained by SSBH. SSBH has analyzed the impact
of the year 2000 on its systems and processes and modifications for compliance
are proceeding according to plan. All modifications necessary for year 2000
compliance are expected to be completed by the first quarter of 1999. In July
1998, SSB participated in successful industry-wide testing coordinated by the
Securities Industry Association and plans to participate in such tests in the
future. The purpose of industry-wide testing is to confirm that exchanges,
clearing organizations, and other securities industry participants are prepared
for the year 2000.
The most likely and most significant risk to the Partnership associated
with the lack of year 2000 readiness is the failure of outside organizations,
including the commodities exchanges, clearing organizations or regulators with
which the Partnership interacts to resolve their year 2000 issues in a timely
manner. This risk could involve the inability to determine the value of the
Partnership at some point in time and would make effecting purchases or
redemptions of Units in the Partnership infeasible
9
<PAGE>
until such valuation was determinable.
In addition, the General Partner is addressing the technological
implications that will result from regulatory and market changes due to Europe's
Economic and Monetary Union ("EMU").
Risks to the Partnership exist in the lack of experience with this new
currency and the potential impact it can have on the Advisors' trading programs.
Risks also exist in the failure of external information technology and
accounting systems to adequately prepare for the conversion. This issue is
particularly acute in the area of the exchanges, clearing houses and
over-the-counter foreign exchange markets where the futures interests are
traded. If the necessary changes are not properly implemented, the Partnership
could suffer failed trade settlements, inability to reconcile trading positions
and funding disruptions. Such events could result in erroneous entries in the
Partnership's accounts, mispriced transactions, and a delay or inability to
provide timely pricing of Units for the purpose of effecting purchases and
redemptions.
SSB has evaluated its internal systems and made the necessary changes
to accommodate EMU transactions on behalf of the Partnership. The General
Partner will continue to monitor and communicate with the Advisors and related
third-party entities to assure preparation for the EMU conversion and advanced
notification of impending issues or problems.
Results of Operations
During the Partnership's third quarter of 1998, the net asset value per
Unit increased 20.8% from $5,138.47 to $6,208.79, as compared to the third
quarter of 1997 in which the net asset value per Unit increased 8.6%. The
Partnership experienced a net trading gain before brokerage commissions and
related fees in the third quarter of 1998 of $4,437,843. Gains were recognized
in the trading of currencies, livestock, U.S. and non U.S. interest rates,
indices and grains and were partially offset by losses in softs, metals and
energy products. The Partnership experienced a net trading gain before brokerage
commissions and related fees in the third quarter of 1997 of $1,725,289. Gains
were recognized in the trading of commodity futures in currencies, U.S. and non
U.S. interest rates and indices and were partially offset by losses recognized
in metals, softs, energy products, grains and livestock.
Commodity futures markets are highly volatile. Broad price fluctuations
and rapid inflation increase the risks involved in commodity trading but also
increase the possibility of profit. The profitability of the Partnership depends
on the existence of major price trends and the ability of the Advisors to
identify correctly those price trends. Price trends are influenced by, among
other things, changing supply and demand relationships, weather, governmental,
agricultural, commercial and trade programs and policies, national and
international political and economic events and changes in interest rates. To
the extent that market trends
10
<PAGE>
exist and the Advisors are able to identify them, the Partnership expects to
increase capital through operations.
Interest income earned on U.S. Treasury Bills decreased by $2,358 for
the three months ended September 30, 1998, as compared to the corresponding
period in 1997. Interest income for the nine months ended September 30, 1998,
increased by $10,450 as compared to the corresponding period in 1997.
Fluctuations in interest income are due to the percentage of U.S. Treasury Bills
to assets held by the Partnership varying as a result of the effects of trading
performance on Partnership equity.
Brokerage commissions are based on the number of trades executed by the
Advisors. Accordingly, they must be compared in relation to the fluctuations in
the monthly net asset values. Brokerage commissions and fees for the three and
nine months ended September 30, 1998 increased by $12,035 and $94,812,
respectively, as compared to the corresponding periods in 1997.
Incentive fees are based on the new trading profits generated by each
Advisor as defined in the advisory agreements between the Partnership, the
General Partner and each Advisor. Trading performance for the three and nine
months ended September 30, 1998 resulted in incentive fees of $433,960 and
$441,174, respectively. Trading performance for the three and nine months ended
September 30, 1997 resulted in incentive fees of $13,146 and $33,829,
respectively.
11
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Item 3. Quantitative and Qualitative Disclosures of Market Risk
The Partnership is subject to SEC Financial Reporting Release No. 48,
regarding quantitative and qualitative disclosures of market risk and will
comply with the disclosure and reporting requirements in its Form 10-K as of
December 31, 1998.
12
<PAGE>
PART II OTHER INFORMATION
Item 1. Legal Proceedings
Between May 1994 and the present, Salomon Brothers Inc. ("SBI"), Smith
Barney Inc. ("SB") and The Robinson Humphrey Company, Inc. ("R-H"),
all currently subsidiaries of Salomon Smith Barney Holdings Inc.
("SSBH"), along with a number of other broker-dealers, were named as
defendants in approximately 25 federal court lawsuits and two state
court lawsuits, principally alleging that companies that make markets
in securities traded on NASDAQ violated the federal antitrust laws by
conspiring to maintain a minimum spread of $.25 between the bid and
asked price for certain securities. The federal lawsuits and one state
court case were consolidated for pre-trial purposes in the Southern
District of New York in the fall of 1994 under the caption In re
NASDAQ Market-Makers Antitrust Litigation, United States District
Court, Southern District of New York No. 94-CIV-3996 (RWS); M.D.L. No.
1023. The other state court suit, Lawrence A. Abel v. Merrill Lynch &
Co., Inc. et al.; Superior Court of San Diego, Case No. 677313, has
been dismissed without prejudice in conjunction with a tolling
agreement.
In consolidated action, the plaintiffs purport to represent a class of
persons who bought one or more of what they currently estimate to be
approximately 1,650 securities on NASDAQ between May 1, 1989 and May
27, 1994. They seek unspecified monetary damages, which would be
trebled under the antitrust laws. The plaintiffs also seek injunctive
relief, as well as attorney's fees and the costs of the action. (The
state cases seek similar relief.) Plaintiffs in the consolidated
action filed an amended consolidated complaint that defendants
answered in December 1995. On November 26, 1996, the Court certified a
class composed of retail purchasers. A motion to include institutional
investors in the class and to add class representatives was granted.
In December 1997, SBI, SB and R- H, along with several other
broker-dealer defendants, executed a settlement agreement with the
plaintiffs. This agreement has been preliminarily approved by the U.S.
District Court for the Southern District of New York but is subject to
final approval.
On July 17, 1996, the Antitrust Division of the Department of Justice
filed a complaint against a number of firms that act as market makers
in NASDAQ stocks. The complaint basically alleged that a common
understanding arose among NASDAQ market makers which worked to keep
quote spreads in NASDAQ stocks artificially wide. Contemporaneous with
the filing of the
13
<PAGE>
complaint, SBI, SB and other defendants entered into a stipulated
settlement agreement, pursuant to which the defendants would agree not
to engage in certain practices relating to the quoting of NASDAQ
securities and would further agree to implement a program to ensure
compliance with federal antitrust laws and with the terms of the
settlement. In entering into the stipulated settlement, SBI and SB did
not admit any liability. There are no fines, penalties, or other
payments of monies in connection with the settlement. In April 1997,
the U.S. District Court for the Southern District of New York approved
the settlement. In May 1997, plaintiffs in the related civil action
(who were permitted to intervene for limited purposes) appealed the
district court's approval of the settlement. The appeal was argued in
March 1998 and was affirmed in August 1998.
The Securities and Exchange Commission ("SEC") is also conducting a
review of the NASDAQ marketplace, during which it has subpoenaed
documents and taken the testimony of various individuals including SBI
and SB personnel. In July 1996, the SEC reached a settlement with the
National Association of Securities Dealers and issued a report
detailing certain conclusions with respect to the NASD and the NASDAQ
market.
In December 1996, a complaint seeking unspecified monetary damages was
filed by Orange County, California against numerous brokerage firms,
including SB, in the U.S. Bankruptcy Court for the Central District of
California. Plaintiff alleged, among other things, that the defendants
recommended and sold to plaintiff unsuitable securities. The case
(County of Orange et al. v. Bear Stearns & Co. Inc. et al.) has been
stayed by agreement of the parties.
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
Item 5. Other Information - None
Item 6. (a) Exhibits - None
(b) Reports on Form 8-K - None
14
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15 (d) 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.
HUTTON INVESTORS FUTURES FUND L.P. II
By: Smith Barney Futures Management Inc.
(General Partner)
By:
David J. Vogel, President
Date:
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
By: Smith Barney Futures Management Inc.
(General Partner)
By:
David J. Vogel, President
Date:
By
Daniel A. Dantuono
Chief Financial Officer and
Director
Date:
15
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15 (d) 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.
HUTTON INVESTORS FUTURES FUND L.P. II
By: Smith Barney Futures Management Inc.
(General Partner)
By: /s/ David J. Vogel, President
David J. Vogel, President
Date: 11/12/98
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
By: Smith Barney Futures Management Inc.
(General Partner)
By: /s/ David J. Vogel, President
David J. Vogel, President
Date: 11/12/98
By /s/ Daniel A. Dantuono
Daniel A. Dantuono
Chief Financial Officer and Director
Date: 11/12/98
15
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000812818
<NAME> HUTTON INVESTORS FUTURES FUND, L.P. II
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 19,372,799
<SECURITIES> 4,346,448
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 23,719,247
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<TOTAL-ASSETS> 23,719,247
<CURRENT-LIABILITIES> 647,399
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0
0
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<OTHER-SE> 23,071,848
<TOTAL-LIABILITY-AND-EQUITY> 23,719,247
<SALES> 0
<TOTAL-REVENUES> 2,737,298
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 474,926
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<EPS-PRIMARY> 620.85
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