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, 1997 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 No. 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
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<TABLE>
DEAN WITTER MULTI-MARKET PORTFOLIO L.P.
INDEX TO QUARTERLY REPORT ON FORM 10-Q
March 31, 1997
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition
March 31, 1997 (Unaudited) and December 31, 1996......2
Statements of Operations for the Quarters Ended
March 31, 1997 and 1996 (Unaudited)....................3
Statements of Changes in Partners' Capital for
the Quarters Ended March 31, 1997 and 1996
(Unaudited)............................................4
Statements of Cash Flows for the Quarters Ended
March 31, 1997 and 1996 (Unaudited)....................5
Notes to Financial Statements (Unaudited)...........6-11
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations......................................12-16
PART II. OTHER INFORMATION
Item 1. Legal Proceedings...............................17-18
Item 6. Exhibits and Reports on Form 8-K...................19
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<TABLE>
DEAN WITTER MULTI-MARKET PORTFOLIO L.P.
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
March 31, December 31,
1997 1996
$ $
(Unaudited)
ASSETS
<S> <C> <C>
Equity in Commodity futures trading accounts:
Cash 11,930,259 11,906,105
Net unrealized gain on open contracts 389,729 221,008
Total Trading Equity 12,319,988 12,127,113
Interest receivable from DWR 44,429 41,222
Due from DWR 24,578 1,628
Total Assets 12,388,995 12,169,963
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 141,996 184,964
Accrued brokerage commissions (DWR) 32,499 14,948
Accrued management fee (DWFCM) 30,966 30,419
Accrued transaction fees and costs 2,447 2,350
Total Liabilities 207,908 232,681
Partners' Capital
Limited Partners (10,991.838 and
11,539.388 Units, respectively) 11,851,164 11,628,908
General Partner (306 Units) 329,923 308,374
Total Partners' Capital 12,181,087 11,937,282
Total Liabilities and Partners' Capital 12,388,995 12,169,963
NET ASSET VALUE PER UNIT 1,078.18 1,007.76
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,
1997 1996
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 865,768 (1,663,075)
Net change in unrealized 168,721 (81,068)
Total Trading Results 1,034,489 (1,744,143)
Interest Income (DWR) 123,450 136,817
Total Revenues 1,157,939 (1,607,326)
EXPENSES
Brokerage fees (DWR) 200,142 312,711
Management fees 96,008 104,237
Transaction fees and costs 17,775 32,147
Total Expenses 313,925 449,095
NET INCOME (LOSS) 844,014 (2,056,421)
NET INCOME (LOSS) ALLOCATION
Limited Partners 822,465 (2,011,336)
General Partner 21,549 (45,085)
NET INCOME (LOSS) PER UNIT
Limited Partners 70.42 (147.33)
General Partner 70.42 (147.33)
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, 1997 and 1996
(Unaudited)
<CAPTION>
Units of
Partnership Limited General
Interest Partners Partner Total
<S> <C> <C> <C> <C>
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
Partners' Capital,
December 31, 1996 11,845.388 $11,628,908 $308,374 $11,937,282
Net Income - 822,465 21,549 844,014
Redemptions (547.550) (600,209) - (600,209)
Partners' Capital,
March 31, 1997 11,297.838 $11,851,164 $329,923 $12,181,087
The accompanying footnotes are an integral part
of these financial statements.
</TABLE>
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<TABLE>
DEAN WITTER MULTI-MARKET PORTFOLIO L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
For the Quarters Ended March 31,
1997 1996
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net income (loss) 844,014 (2,056,421)
Noncash item included in net income (loss):
Net change in unrealized (168,721) 81,068
(Increase) decrease in operating assets:
Interest receivable from DWR (3,207) 13,408
Due from DWR (22,950) -
Increase (decrease) in operating liabilities:
Accrued brokerage commissions (DWR) 2,080 (22,577)
Accrued management fees (DWFCM) 16,018 (7,525)
Accrued transaction fees and costs 97 (3,590)
Net cash provided by (used for) operating activities 667,331 (1,995,637)
CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in redemptions payable (42,968) (44,026)
Redemptions of units (600,209) (879,714)
Net cash used for financing activities (643,177) (923,740)
Net increase (decrease) in cash 24,154 (2,919,377)
Balance at beginning of period 11,906,105 14,884,093
Balance at end of period 11,930,259 11,964,716
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, 1996 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, and forward contracts on foreign
currencies. The general partner for the Partnership is Demeter
Management Corporation ("Demeter"). The commodity broker is Dean
Witter Reynolds Inc. ("DWR"). Dean Witter Futures & Currency
Management ("DWFCM"), an affiliate of Demeter is the sole trading
advisor. Demeter, DWFCM and DWR are all wholly owned
subsidiaries of Dean Witter, Discover & Co. ("DWD").
<PAGE>
DEAN WITTER MULTI-MARKET PORTFOLIO L.P.
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. Management fees and incentive fees (if any) are
paid to DWFCM.
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, 1997 and
December 31, 1996, open contracts were:
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DEAN WITTER MULTI-MARKET PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Contract or Notional Amount
March 31, 1997 December 31, 1996
$ $
Exchange-Traded Contracts
Financial Futures:
Commitments to Sell 50,666,000 -
Commodity Futures:
Commitments to Purchase 7,777,000 1,887,000
Commitments to Sell 3,257,000 5,815,000
Foreign Futures:
Commitments to Purchase 3,437,000 6,889,000
Commitments to Sell 25,796,000 12,227,000
Off-Exchange-Traded
Forward Currency Contracts
Commitments to Purchase 18,162,000 33,149,000
Commitments to Sell 30,310,000 42,607,000
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.
The net 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 $389,729 and
$221,008
<PAGE>
DEAN WITTER MULTI-MARKET PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
at March 31, 1997 and December 31, 1996, respectively. Of the
$389,729 net unrealized gain on open contracts at March 31, 1997,
$693,747 was related to exchange-traded futures contracts and
$(304,018) related to off-exchange-traded forward currency
contracts. Of the $221,008 net unrealized gain on open contracts
at December 31, 1996 $477,638 related to exchange-traded futures
contracts and $(256,630) related to off-exchange-traded forward
currency contracts.
Exchange-traded futures contracts held by the Partnership at
March 31, 1997 and December 31, 1996 mature through December 1997
and June 1997, respectively. Off-exchange-traded forward
currency contracts held at March 31, 1997 and December 31, 1996
mature through May 1997 and February 1997, 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.
<PAGE>
DEAN WITTER MULTI-MARKET PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Partnership also has credit risk because DWR acts as the
futures commission merchant or the sole counterparty, with
respect to most of the Partnership's assets. Exchange-traded
futures contracts are marked to market on a daily basis, with
variations in value settled 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 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 $12,624,006 and
$12,383,743 at March 31, 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 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.
<PAGE>
DEAN WITTER MULTI-MARKET PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
For the quarter ended March 31, 1997 and the year ended December
31, 1996 the average fair value of financial instruments held for
trading purposes was as follows:
March 31, 1997
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 695,000 22,158,000
Commodity Futures 4,706,000 3,929,000
Foreign Futures 15,647,000 10,826,000
Off-Exchange-Traded Forward
Currency Contracts 20,383,000 32,664,000
December 31, 1996
Assets Liabilities
$ $
Exchange-Traded Contracts:
Financial Futures 15,388,000 9,495,000
Commodity Futures 8,258,000 4,820,000
Foreign Futures 22,868,000 8,490,000
Off-Exchange-Traded Forward
Currency Contracts 38,167,000 42,948,000
<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
<PAGE>
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.
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.
<PAGE>
Results of Operations
For the Quarter Ended March 31, 1997
For the quarter ended March 31, 1997, the Partnership's total
trading revenues including interest income were $1,157,939.
During the first quarter, the Partnership posted an increase in
Net Asset Value per Unit. The most significant trading gains
were recorded in the currency markets as a result of a
strengthening in the value of the U.S. dollar versus the Japanese
yen and most major European currencies during January and
February. A portion of these gains was offset by losses from
transactions involving the British pound, as well as the Canadian
and Australian dollars, during February and March. Gains were
also recorded in soft commodities from long coffee futures
positions as prices in this market trended steadily higher during
January and February, before reversing lower during March.
Additional trading gains were recorded in the metals markets from
short gold futures positions as gold prices, which began trending
lower during late 1996, continued to trend lower in January.
Gains were also recorded from long base metals futures positions
as copper and zinc futures prices increased from late January to
early March. Smaller gains were recorded in the agricultural
markets from long corn, soybean meal and soybean futures
positions. A portion of the
<PAGE>
Partnership's overall gains was offset by short-term volatile
price movement in global interest rate futures. Smaller losses
were recorded in the energy markets during January and March.
Total expenses for the period were $313,925, generating net
income of $844,014. The value of an individual Unit in the
Partnership increased from $1,007.76 at December 31, 1996 to
$1,078.18 at March 31, 1997.
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 decrease 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 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
<PAGE>
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.
<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, DWFCM, DWD
(all such parties referred to hereafter as the "Dean Witter
Parties"), certain other limited partnership commodity pools of
which Demeter is the general partner, and certain trading
advisors to those pools. 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 on behalf of all purchasers of interests in various
limited partnership commodity pools 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 complaints seek
<PAGE>
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 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.
<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 Multi-Market Portfolio
L.P. (Registrant)
By: Demeter Management Corporation
(General Partner)
May 13, 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 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-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 11,930,259
<SECURITIES> 0
<RECEIVABLES> 69,007<F1>
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 12,388,995<F2>
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 12,388,995<F3>
<SALES> 0
<TOTAL-REVENUES> 1,157,939<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 313,925
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 844,014
<INCOME-TAX> 0
<INCOME-CONTINUING> 844,014
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 844,014
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Receivables include interest receivable from DWR of $44,429 and due
from DWR of $24,578.
<F2>In addition to cash and receivables, total assets include net unrealized
gain on open contracts of $389,729.
<F3>Liabilities include redemptions payable of $141,996 and accrued
management fees of $30,966, accrued brokerage commissions of $32,499
and accrued transaction fees and costs of $2,447.
<F4>Total revenue includes realized trading revenue of $865,768, net
change in unrealized of $168,721 and interest income of $123,450.
</FN>
</TABLE>
