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 March 31, 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 33-21532
DEAN WITTER MULTI-MARKET PORTFOLIO L.P.
(Exact name of registrant as specified in its charter)
Delaware 13-3469595
(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification No.)
c/o Demeter Management Corp.
Two World Trade Center, New York, NY 62 Fl. 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 MULTI-MARKET PORTFOLIO L.P.
INDEX TO QUARTERLY REPORT ON FORM 10-Q
March 31, 1996
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition
March 31, 1996 (Unaudited) and December 31, 1995...... 2
Statements of Operations for the Quarters Ended
March 31, 1996 and 1995 (Unaudited)................... .. 3
Statements of Changes in Partners' Capital for
the Quarters Ended March 31, 1996 and 1995
(Unaudited)...........................................4
Statements of Cash Flows for the Quarters Ended
March 31, 1996 and 1995 (Unaudited)...................5
Notes to Financial Statements (Unaudited).......... 6-9
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations.....................................10-14
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.................. 15
/TABLE
<PAGE>
<TABLE>
DEAN WITTER MULTI-MARKET PORTFOLIO L.P.
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
March 31, December 31,
1996 1995
$ $
(Unaudited)
ASSETS
<S> <C> <C>
Equity in Commodity futures trading accounts:
Cash 11,964,716 14,884,093
Net unrealized gain on open contracts 895,522 976,590
Total Trading Equity 12,860,238 15,860,683
Interest receivable from DWR 42,723 56,131
Total Assets 12,902,961 15,916,814
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 161,055 205,081
Accrued brokerage commissions (DWR) 96,760 119,337
Accrued management fee (DWFCM) 32,253 39,778
Accrued transaction fees and costs 1,690 5,280
Total Liabilities 291,758 369,476
Partners' Capital
Limited Partners (13,203.779 and
14,078.727 Units, respectively) 12,325,556 15,216,606
General Partner (306 Units) 285,647 330,732
Total Partners' Capital 12,611,203 15,547,338
Total Liabilities and Partners' Capital 12,902,961 15,916,814
NET ASSET VALUE PER UNIT 933.49 1,080.82
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER MULTI-MARKET PORTFOLIO L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Quarters Ended March 31,
1996 1995
$ $
<S> <C> <C>
REVENUES
Trading profit (loss):
Realized (1,663,075) 585,528
Net change in unrealized (81,068) 1,367,454
Total Trading Results (1,744,143) 1,952,982
Interest Income (DWR) 136,817 217,933
Total Revenues (1,607,326) 2,170,915
EXPENSES
Brokerage fees (DWR) 312,711 426,206
Management fees 104,237 142,069
Transaction fees and costs 32,147 33,401
Total Expenses 449,095 601,676
NET INCOME (LOSS) (2,056,421) 1,569,239
NET INCOME (LOSS) ALLOCATION
Limited Partners (2,011,336) 1,539,351
General Partner (45,085) 29,888
NET INCOME (LOSS) PER UNIT
Limited Partners (147.33) 97.67
General Partner (147.33) 97.67
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER MULTI-MARKET PORTFOLIO L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the Quarters Ended March 31, 1996 and 1995
(Unaudited)
<CAPTION>
Units of
Partnership Limited General
Interest Partners Partner Total
<S> <C> <C> <C> <C>
Partners' Capital
December 31, 1994 16,768.804 $19,003,112 $ 353,218 $19,356,330
Net Income - 1,539,351 29,888 1,569,239
Redemptions (767.997) (892,872) - (892,872)
Partners' Capital
March 31, 1995 16,000.807 $19,649,591 $ 383,106 $20,032,697
Partners' Capital
December 31, 1995 14,384.727 $15,216,606 $330,732 $15,547,338
Net Loss - (2,011,336) (45,085) (2,056,421)
Redemptions (874.948) (879,714) - (879,714)
Partners' Capital
March 31, 1996 13,509.779 $12,325,556 $285,647 $12,611,203
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER MULTI-MARKET PORTFOLIO L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
For the Quarters Ended March 31,
1996 1995
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net income (loss) (2,056,421) 1,569,239
Noncash item included in net income (loss):
Net change in unrealized 81,068 (1,367,454)
(Increase) decrease in operating assets:
Interest receivable from DWR 13,408 (3,588)
Increase (decrease) in operating liabilities:
Accrued brokerage commissions (DWR) (22,577) 7,381
Accrued management fees (DWFCM) (7,525) 2,461
Accrued transaction fees and costs (3,590) 2,228
Net cash provided by (used for) operating activities (1,995,637) 210,267
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in redemptions payable (44,026) 298,055
Redemptions of units (879,714) (892,872)
Net cash used for financing activities (923,740) (594,817)
Net decrease in cash (2,919,377) (384,550)
Balance at beginning of period 14,884,093 17,153,766
Balance at end of period 11,964,716 16,769,216
<FN>
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
<PAGE>
DEAN WITTER MULTI-MARKET PORTFOLIO L.P.
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, 1995 Annual Report on Form 10-K.
1. Organization
Dean Witter Multi-Market Portfolio L.P. (formerly Dean Witter
Principal Guaranteed Fund L.P.) (the "Partnership") is a limited
partnership organized to engage in the speculative trading of
commodity futures contracts, commodity options contracts and
forward contracts on foreign currencies. The General Partner for
the Partnership is Demeter Management Corporation (the "General
Partner"). The commodity broker is Dean Witter Reynolds Inc.
("DWR"). Dean Witter Futures and Currency Management ("DWFCM"), an
affiliate of the General Partner is the sole trading advisor. The
General Partner, DWFCM and DWR are all wholly owned subsidiaries of
Dean Witter, Discover & Co.
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.
Management fees and incentive fees (if any) are paid to DWFCM.
<PAGE>
DEAN WITTER MULTI-MARKET PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. Financial Instruments
The Partnership trades futures and forward contracts in interest
rates, stock indices, commodities, currencies, petroleum and
precious metals. Futures and forwards represents 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 March 31, 1996, open contracts were:
Contract or
Notional Amount
$
Exchange-Traded Contracts
Financial Futures:
Commitments to Purchase 272,000
Commitments to Sell 25,484,000
Commodity Futures:
Commitments to Purchase 8,516,000
Commitments to Sell 272,000
Foreign Futures:
Commitments to Purchase 985,000
Commitments to Sell 12,589,000
Off-Exchange-Traded Forward
Currency Contracts
Commitments to Purchase 25,253,000
Commitments to Sell 19,023,000
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.
<PAGE>
DEAN WITTER MULTI-MARKET PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The unrealized gain on open contracts is reported as a component of
"Equity in Commodity futures trading accounts" on the Statement of
Financial Condition and totaled $895,522 at March 31, 1996. Of
this amount, $779,347 related to exchange-traded futures contracts
and $116,175 related to off-exchange traded forward currency
contracts.
Exchange-traded futures contracts held by the Partnership at March
31, 1996 mature through September 1996. Off-exchange-traded
forward currency contracts held at March 31, 1996 mature through
May 1996. 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 on a daily basis. DWR, as
<PAGE>
DEAN WITTER MULTI-MARKET PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
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 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 on all open futures contracts, which funds totaled
$12,744,063 at March 31, 1996. 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
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 of such contracts, to
perform.
For the quarter ended March 31, 1996 the average fair value of
financial instruments held for trading purposes was as follows:
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 32,479,000 17,876,000
Commodity Futures 16,781,000 3,160,000
Foreign Futures 26,392,000 8,643,000
Off-Exchange-Traded Forward
Currency Contracts 42,516,000 54,658,000
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity - The Partnership's assets are on deposit in separate
commodity interest trading accounts with DWR, and are used by the
Partnership as margin to engage in commodity futures, options
contracts, forward contracts on foreign currencies and other
commodity interest trading. DWR holds such assets in either
designated depositories or in securities approved by the Commodity
Futures Trading Commission 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 commodity futures contracts, options contracts, forward
contracts on foreign currencies and other commodity interests, it
is expected that the Partnership will continue to own such liquid
assets for margin purposes.
The Partnership's investment in commodity futures and forward
contracts and other commodity interests may be illiquid. If the
price of the futures contract for a particular commodity has
increased or decreased by an amount equal to the "daily limit",
positions in the commodity can neither be taken nor liquidated
unless traders are willing to effect trades at or within the limit.
Commodity futures prices have occasionally moved the daily limit
for several consecutive days with little or no trading. Such
market conditions could prevent the Partnership from promptly
liquidating its commodity futures positions.
<PAGE>
There is no limitation on daily price moves in trading forward
contracts on foreign currencies. The markets for some world
currencies have low trading volume and are illiquid, which may
prevent the Partnership from trading in potentially profitable
markets or prevent the Partnership from promptly liquidating
unfavorable positions in such markets and therefore 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 of additional
Units in the future will impact the amount of funds available for
investments in commodity futures contracts and other commodity
interests. As redemptions are at the discretion of Limited
Partners, it is not possible to estimate the amount and therefore,
the impact of future redemptions.
Results of Operations
For the Quarter Ended March 31, 1996
For the quarter ended March 31, 1996, the Partnership's total
trading losses net of interest income were $1,607,326. During the
first quarter, the Partnership posted a loss in Net Asset Value per
Unit. The most significant trading losses during the quarter were
recorded in the currency and energy markets during February. In
the currency markets, a sudden and sharp trend reversal in the
<PAGE>
downward move in the value of the Japanese yen and most major
European currencies, which had posted gains during January,
resulted in losses from short positions in the Japanese yen, German
mark, Swiss franc and British pound. Trading gains recorded during
March from transactions involving the Australian dollar and
Japanese yen offset a portion of the overall losses experienced in
the currency markets during February. Additional losses were
experienced in the energy markets due primarily to short-term
volatile movement in gas and oil prices during February. A portion
of these losses was offset by gains in crude oil during March. In
the financial futures markets, losses were recorded in most global
interest rate and stock index futures as these prices moved in a
short-term volatile pattern during the quarter. Trading gains in
British long gilt, French bond and U.S. Treasury note futures
offset a portion of these losses. Smaller losses were recorded in
the agricultural markets from trading soybean futures and in the
soft commodities markets from trading cotton and coffee futures.
The most significant trading losses during the quarter were
recorded in the currency and energy markets during February. In
the currency markets, a sudden and sharp trend reversal in the
downward move in the value of the Japanese yen and most major
European currencies, which had posted gains during January,
resulted in losses from short positions in the Japanese yen, German
mark, Swiss franc and British pound. Trading gains recorded during
March from transactions involving the Australian dollar and
Japanese yen offset a portion of the overall losses experienced in
<PAGE>
the currency markets during February. Additional losses were
experienced in the energy markets due primarily to short-term
volatile movement in gas and oil prices during February. A portion
of these losses was offset by gains in crude oil during March. In
the financial futures markets, losses were recorded in most global
interest rate and stock index futures as these prices moved in a
short-term volatile pattern during the quarter. Trading gains in
British long gilt, French bond and U.S. Treasury note futures
offset a portion of these losses. Smaller losses were recorded in
the agricultural markets from trading soybean futures and in the
soft commodities markets from trading cotton and coffee futures.
Total expenses for the period were $449,095, resulting in a net
loss of $2,056,421. The value of an individual Unit in the
Partnership decreased from $1,080.82 at December 31, 1995 to
$933.49 at March 31, 1996.
For the Quarter Ended March 31, 1995
For the quarter ended March 31, 1995, the Partnership's total
trading revenues including interest income were $2,170,915. During
the first quarter, the Partnership posted a gain in Net Asset Value
per Unit. The most significant trading gains were recorded during
February and March in the currency markets as a result of a
decrease in value of the U.S. dollar versus the Japanese yen and
major European currencies such as the Swiss franc, German mark and
French franc. Additional gains were recorded in the financial
futures markets as a result of trading Japanese and U.S. interest
rate futures and global stock index futures. Smaller trading
<PAGE>
losses in the agricultural, metals, energy and international
markets offset a portion of overall gains for the quarter. Total
expenses for the period were $601,676, generating net income of
$1,569,239. The value of an individual Unit in the Partnership
increased from $1,154.31 at December 31, 1994 to $1,251.98 at March
31, 1995.
<PAGE>
PART II. OTHER INFORMATION
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 Multi-Market Portfolio
L.P. (Registrant)
By: Demeter Management Corporation
(General Partner)
May 7, 1996 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.
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from Dean
Witter Multi Market Portfolio L.P. and is qualified in its entirety by
references to such financial instruments.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 11,964,716
<SECURITIES> 0
<RECEIVABLES> 42,723
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 12,902,961<F1>
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 12,902,961<F2>
<SALES> 0
<TOTAL-REVENUES> (1,607,326)<F3>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 449,095
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (2,056,421)
<INCOME-TAX> 0
<INCOME-CONTINUING> (2,056,421)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,056,421)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>In addition to cash and receivables, total assets include net unrealized
loss on open contracts of $895,522.
<F2>Liabilities include redemptions payable of $161,055 and accrued management
fees of $32,253, accrued brokerage commissions of $96,760 and accrued
transaction fees and costs of $1,690.
<F3>Total revenue includes realized trading revenue of $(1,663,075), net change
in unrealized of $(81,068) and interest income of $136,817.
</FN>
</TABLE>
