<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 1998
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from _______________________ to ______________________
Commission file number: 0-18418
PRUDENTIAL-BACHE CAPITAL RETURN FUTURES FUND 2, L.P.
- --------------------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 13-3533120
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
One New York Plaza, 13th Floor New York, New York 10292
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 778-7866
N/A
- --------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last
report.
Indicate by check CK 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 CK No __
<PAGE>
Part I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
PRUDENTIAL-BACHE CAPITAL RETURN FUTURES FUND 2, L.P.
(a limited partnership)
STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
<S> <C> <C>
- ----------------------------------------------------------------------------------------------------
ASSETS
Equity in commodity trading accounts:
Cash $ 6,552,016 $ 6,552,063
U.S. Treasury bills, at amortized cost 21,941,258 24,241,834
Net unrealized gain on open commodity positions 552,455 1,584,684
------------- ------------
Total assets $29,045,729 $32,378,581
------------- ------------
------------- ------------
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable $ 394,412 $ 740,550
Management fees payable 87,151 97,818
Accrued expenses 42,356 55,038
Due to affiliates 36,772 7,663
Incentive fees payable 7,756 226,348
Options, at market 820 3,600
------------- ------------
Total liabilities 569,267 1,131,017
------------- ------------
Commitments
Partners' capital
Limited partners (117,507 and 119,135 units outstanding) 28,191,444 30,934,928
General partner (1,188 and 1,204 units outstanding) 285,018 312,636
------------- ------------
Total partners' capital 28,476,462 31,247,564
------------- ------------
Total liabilities and partners' capital $29,045,729 $32,378,581
------------- ------------
------------- ------------
Net asset value per limited and general partnership unit ('Units') $ 239.91 $ 259.66
------------- ------------
------------- ------------
- ----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these statements.
</TABLE>
2
<PAGE>
PRUDENTIAL-BACHE CAPITAL RETURN FUTURES FUND 2, L.P.
(a limited partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months
Ended March 31,
--------------------------
1998 1997
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------
REVENUES
Net realized gain (loss) on commodity transactions $ (671,692) $1,779,360
Change in net unrealized gain on open commodity positions (1,040,749) (426,019)
Interest from U.S. Treasury bills 294,511 292,367
----------- ----------
(1,417,930) 1,645,708
----------- ----------
EXPENSES
Commissions 643,279 672,527
Management fees 267,075 290,034
Incentive fees 7,756 --
General and administrative 40,650 40,729
----------- ----------
958,760 1,003,290
----------- ----------
Net income (loss) $(2,376,690) $ 642,418
----------- ----------
----------- ----------
ALLOCATION OF NET INCOME (LOSS)
Limited partners $(2,352,911) $ 635,990
----------- ----------
----------- ----------
General partner $ (23,779) $ 6,428
----------- ----------
----------- ----------
NET INCOME (LOSS) PER WEIGHTED AVERAGE
LIMITED AND GENERAL PARTNERSHIP UNIT
Net income (loss) per weighted average
limited and general partnership unit $ (19.75) $ 4.83
----------- ----------
----------- ----------
Weighted average number of limited
and general partnership units outstanding 120,339 133,028
----------- ----------
----------- ----------
- ---------------------------------------------------------------------------------------------------
</TABLE>
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
(Unaudited)
<TABLE>
<CAPTION>
LIMITED GENERAL
UNITS PARTNERS PARTNER TOTAL
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------
Partners' capital--December 31, 1997 120,339 $30,934,928 $ 312,636 $31,247,564
Net loss -- (2,352,911) (23,779) (2,376,690)
Redemptions (1,644) (390,573) (3,839) (394,412)
-------- ----------- --------- -----------
Partners' capital--March 31, 1998 118,695 $28,191,444 $ 285,018 $28,476,462
-------- ----------- --------- -----------
-------- ----------- --------- -----------
- -----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these statements.
</TABLE>
3
<PAGE>
PRUDENTIAL-BACHE CAPITAL RETURN FUTURES FUND 2, L.P.
(a limited partnership)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1998
(Unaudited)
A. General
These financial statements have been prepared without audit. In the opinion
of management, the financial statements contain all adjustments (consisting of
only normal recurring adjustments) necessary to present fairly the financial
position of Prudential-Bache Capital Return Futures Fund 2, L.P. (the
'Partnership') as of March 31, 1998 and the results of its operations for the
three months ended March 31, 1998 and 1997. However, the operating results for
the interim periods may not be indicative of the results expected for a full
year.
Certain information and footnote disclosures normally included in annual
financial statements prepared in accordance with generally accepted accounting
principles have been omitted. It is suggested that these financial statements be
read in conjunction with the financial statements and notes thereto included in
the Partnership's Annual Report on Form 10-K filed with the Securities and
Exchange Commission for the year ended December 31, 1997.
B. Related Parties
Prudential Securities Futures Management Inc. (the 'General Partner') and its
affiliates perform services for the Partnership which include, but are not
limited to: brokerage services, accounting and financial management, registrar,
transfer and assignment functions, investor communications, printing and other
administrative services.
The costs incurred for these services for the three months ended March 31,
1998 and 1997 were:
<TABLE>
<CAPTION>
1998 1997
<S> <C> <C>
- -----------------------------------------------------------------------
Commissions $643,279 $672,527
General and administrative 21,280 28,859
-------- --------
$664,559 $701,386
-------- --------
-------- --------
</TABLE>
The General Partner is a wholly owned subsidiary of Prudential Securities
Incorporated ('PSI'), the Partnership's commodity broker. The Partnership
maintains its trading and cash accounts at PSI. Except for the portion of assets
that is deposited as margin to maintain forward currency contract positions as
further discussed below, the Partnership's assets are maintained either with PSI
or, for margin purposes, with the various exchanges on which the Partnership is
permitted to trade.
The Partnership, acting through its trading managers, executes
over-the-counter, spot, forward and/or option foreign exchange transactions with
PSI. PSI then engages in back-to-back trading with an affiliate,
Prudential-Bache Global Markets Inc. ('PBGM'). PBGM attempts to earn a profit on
such transactions. PBGM keeps its prices on foreign currency competitive with
other interbank trading desks. All over-the-counter currency transactions are
conducted between PSI and the Partnership pursuant to a line of credit. PSI may
require that collateral be posted against the marked-to-market position of the
Partnership.
C. Credit and Market Risk
Since the Partnership's business is to trade futures, forward and options
contracts, its capital is at risk due to changes in the value of these contracts
(market risk) or the inability of counterparties to perform under the terms of
the contracts (credit risk).
Futures, forward and options contracts involve varying degrees of off-balance
sheet risk; and changes in the level of volatility of interest rates, foreign
currency exchange rates or the market values of the contracts (or commodities
underlying the contracts) frequently result in changes in the Partnership's
unrealized gain (loss) on open commodity positions reflected in the statements
of financial condition. The Partnership's exposure to market risk is influenced
by a number of factors including the relationships among the contracts held by
the Partnership as well as the liquidity of the markets in which the contracts
are traded.
4
<PAGE>
Futures and options contracts are traded on organized exchanges and are thus
distinguished from forward contracts which are entered into privately by the
parties. The credit risks associated with futures and options contracts are
typically perceived to be less than those associated with forward contracts,
because exchanges typically provide clearinghouse arrangements in which the
collective credit (subject to certain limitations) of the members of the
exchanges is pledged to support the financial integrity of the exchange. On the
other hand, the Partnership must rely solely on the credit of its broker (PSI)
with respect to forward transactions. The Partnership presents unrealized gains
and losses on open forward positions as a net amount in the statements of
financial condition because it has a master netting agreement with PSI.
The General Partner attempts to minimize both credit and market risks by
requiring the Partnership's trading managers to abide by various trading
limitations and policies. The General Partner monitors compliance with these
trading limitations and policies which include, but are not limited to,
executing and clearing all trades with creditworthy counterparties (currently,
PSI is the sole counterparty or broker); limiting the amount of margin or
premium required for any one commodity or all commodities combined; and
generally limiting transactions to contracts which are traded in sufficient
volume to permit the taking and liquidating of positions. The General Partner
may impose additional restrictions (through modifications of such trading
limitations and policies) upon the trading activities of the trading managers as
it, in good faith, deems to be in the best interest of the Partnership.
PSI, when acting as the Partnership's futures commission merchant in
accepting orders for the purchase or sale of domestic futures and options
contracts, is required by Commodity Futures Trading Commission ('CFTC')
regulations to separately account for and segregate as belonging to the
Partnership all assets of the Partnership relating to domestic futures and
options trading and is not to commingle such assets with other assets of PSI. At
March 31, 1998 and December 31, 1997, such segregated assets totalled
$21,818,474 and $22,947,166, respectively. Part 30.7 of the CFTC regulations
also requires PSI to secure assets of the Partnership related to foreign futures
and options trading which totalled $6,850,380 and $9,499,572 at March 31, 1998
and December 31, 1997, respectively. There are no segregation requirements for
assets related to forward trading.
As of March 31, 1998, the Partnership's open futures, forward and options
contracts mature within one year.
At March 31, 1998 and December 31, 1997, gross contract amounts of open
futures, forward and options contracts are:
<TABLE>
<CAPTION>
1998 1997
------------ ------------
<S> <C> <C>
Currency Forward Contracts:
Commitments to purchase $ 14,827,468 $ 318,066
Commitments to sell 30,560,045 24,765,572
Currency Futures and Options
Contracts:
Commitments to purchase 7,930,240 1,232,952
Commitments to sell 10,387,302 4,626,480
Financial Futures and Options
Contracts:
Commitments to purchase 152,510,998 183,537,088
Commitments to sell 448,612,564 126,817,265
Other Futures and Options Contracts:
Commitments to purchase 1,525,453 2,876,350
Commitments to sell 695,394 14,809,027
</TABLE>
The gross contract amounts represent the Partnership's potential involvement
in a particular class of financial instrument (if it were to take or make
delivery on an underlying futures, forward or options contract). The gross
contract amounts significantly exceed the future cash requirements as the
Partnership intends to close out open positions prior to settlement and thus is
generally subject only to the risk of loss arising from the change in the value
of the contracts. As such, the Partnership considers the 'fair value' of its
futures, forward and options contracts to be the net unrealized gain or loss on
the contracts (plus premiums on options). Thus, the amount at risk associated
with counterparty nonperformance of all contracts is the net unrealized gain
included in the statements of financial condition. The market risk associated
with the
5
<PAGE>
Partnership's commitments to purchase commodities is limited to the gross
contract amounts involved, while the market risk associated with its commitments
to sell is unlimited since the Partnership's potential involvement is to make
delivery of an underlying commodity at the contract price; therefore, it must
repurchase the contract at prevailing market prices.
At March 31, 1998 and December 31, 1997, the fair value of open futures,
forward and options contracts was:
<TABLE>
<CAPTION>
1998 1997
------------------------ --------------------------
Assets Liabilities Assets Liabilities
-------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Futures Contracts:
Domestic exchanges
Financial $ 23,388 $ (119,031) $ 178,094 $ (4,700)
Currencies 225,024 (360) 41,016 (6,677)
Other 23,114 (16,746) 1,020,252 (1,810)
Foreign exchanges
Financial 209,960 (141,602) 493,686 (229,030)
Other 30,710 (58,057) 170,110 (4,500)
Forward Contracts:
Currencies 423,322 (47,267) 374,665 (446,422)
Options Contracts:
Domestic exchanges
Financial -- -- -- (3,600)
Currencies -- (750) -- --
Other -- (70) -- --
-------- ----------- ---------- -----------
$935,518 $ (383,883) $2,277,823 $ (696,739)
-------- ----------- ---------- -----------
-------- ----------- ---------- -----------
</TABLE>
The following table presents the average fair value of futures, forward and
options contracts during the three months ended March 31, 1998 and 1997,
respectively.
<TABLE>
<CAPTION>
1998 1997
-------------------------- --------------------------
Assets Liabilities Assets Liabilities
---------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Futures Contracts:
Domestic exchanges
Financial $ 237,913 $ (31,152) $ 86,694 $ (27,373)
Currencies 72,917 (24,244) 439,976 (38,977)
Other 355,669 (25,894) 291,449 (8,320)
Foreign exchanges
Financial 749,190 (167,372) 324,073 (86,444)
Other 118,828 (45,370) 6,886 (5,394)
Forward Contracts:
Currencies 199,497 (549,340) 796,321 (450,203)
Options Contracts:
Domestic exchanges
Financial -- (1,022) -- (12,513)
Currencies -- (5,463) -- (91,738)
Other -- (18) 18,352 (7,089)
Foreign exchanges
Financial -- -- 5,523 (5,620)
---------- ----------- ---------- -----------
$1,734,014 $ (849,875) $1,969,274 $ (733,671)
---------- ----------- ---------- -----------
---------- ----------- ---------- -----------
</TABLE>
6
<PAGE>
The following table presents the trading revenues from futures, forward
and options contracts during the three months ended March 31, 1998 and 1997,
respectively.
<TABLE>
<CAPTION>
1998 1997
----------- ----------
<S> <C> <C>
Futures Contracts:
Domestic exchanges
Financial $ (131,368) $ (87,400)
Currencies (19,218) 453,846
Other (854,250) 144,707
Foreign exchanges
Financial (263,933) 108,092
Other 13,668 11,317
Forward Contracts:
Currencies (476,758) 610,788
Options Contracts:
Domestic exchanges
Financial 15,938 (19,246)
Currencies 3,050 34,086
Other 430 70,339
Foreign exchanges
Financial -- 26,812
----------- ----------
$(1,712,441) $1,353,341
----------- ----------
----------- ----------
</TABLE>
7
<PAGE>
PRUDENTIAL-BACHE CAPITAL RETURN FUTURES FUND 2, L.P.
(a limited partnership)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
The Partnership commenced trading operations on October 6, 1989 with gross
proceeds of $101,010,000. After accounting for organizational and offering
costs, the Partnership's net proceeds were $99,010,000.
At March 31, 1998, 100% of the Partnership's total net assets (the 'Net Asset
Value') was allocated to commodities trading. A significant portion of the Net
Asset Value was held in U.S. Treasury bills (which represented approximately 76%
of the Net Asset Value prior to redemptions payable) and cash, which are used as
margin for the Partnership's trading in commodities. Inasmuch as the sole
business of the Partnership is to trade in commodities, the Partnership
continues to own such liquid assets to be used as margin.
The percentage that U.S. Treasury bills bears to the total net assets varies
each day, and from month to month, as the market values of commodity interests
change. The balance of the total net assets is held in cash. All interest earned
on the Partnership's interest-bearing funds is paid to the Partnership.
The commodities contracts are subject to periods of illiquidity because of
market conditions, regulatory considerations and other reasons. For example,
commodity exchanges limit fluctuations in certain commodity futures contract
prices during a single day by regulations referred to as 'daily limits.' During
a single day, no trades may be executed at prices beyond the daily limit. Once
the price of a futures contract for a particular commodity has increased or
decreased by an amount equal to the daily limit, positions in the commodity can
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.
Since the Partnership's business is to trade futures, forward and options
contracts, its capital is at risk due to changes in the value of these contracts
(market risk) or the inability of counterparties to perform under the terms of
the contracts (credit risk). The general partner attempts to minimize these
risks by requiring the Partnership's trading managers to abide by various
trading limitations and policies. See Note C to the financial statements for a
further discussion on the credit and market risks associated with the
Partnership's futures, forward and options contracts.
Redemptions by limited partners and the general partner recorded for the
three months ended March 31, 1998 were $390,573 and $3,839, respectively, and
from commencement of operations, October 6, 1989, through March 31, 1998,
totalled $118,707,761 and $1,744,869, respectively. Future redemptions will
impact the amount of funds available for investment in commodity contracts in
subsequent periods.
The Partnership does not have, nor does it expect to have, any capital
assets.
Results of Operations
The net asset value per Unit as of March 31, 1998 was $239.91, a decrease of
7.61% from the December 31, 1997 net asset value per Unit of $259.66.
January's negative performance resulted from losses in the currency, index,
metal, meat and grain sectors, which were partially offset by gains in the
financial, energy and soft sectors. In the currency sector, investor optimism
over efforts to revive ailing Asian economies boosted the Japanese yen against
the U.S. dollar, resulting in losses for the Partnership. Positions in the
Australian dollar also experienced losses. Positions in the British pound were
unprofitable as well, as the pound sank lower against other major currencies on
the Bank of England's decision to leave a key interest rate unchanged. Index
sector positions were unprofitable as Asian investor optimism supported the
Nikkei causing losses for the Partnership's short positions. Metal sector
positions incurred losses as the gold market experienced a reversal. Positions
in both zinc and lead lost value as well. On the positive side, the
Partnership's financial sector positions gained as European bond markets
benefited from reduced inflation concerns. In particular, German, French,
British, Eurodollar and Italian bonds profited. Additionally, positions in U.S.
Treasuries profited as some yields reached all-time lows. Positions in the
energy sector profited as increasing tensions in the Middle East
8
<PAGE>
pushed prices up, despite ample inventory levels. Lastly, in the soft sector,
the Partnership recognized gains from cotton positions.
February's negative performance resulted from losses in the financial,
currency, energy and grain sectors, which were partially offset by gains in the
metal, index, meat and soft sectors. In the financial sector, profitable trading
in European bonds failed to offset losses in long- and short-term U.S. interest
rate positions. Positions in the Eurodollar, Japanese, British and Australian
bonds were unprofitable as well. Currency sector losses were driven, in part, by
shifting trends in the Asian markets and generally rangebound trading in other
currencies. Although by month's end investors were again viewing Asian markets
with caution, sentiment toward the region had been relatively positive for much
of the month. This was particularly the case in Japan, where the yen benefited
from expectations of a stimulus package from the government resulting in losses
for the Partnership's short positions. Swiss franc/deutsche mark and Japanese
yen/deutsche mark crossrate positions were unprofitable as well. Long silver
positions in the metal sector profited the Partnership. This was due, in part,
to heavy buying by a major investor which drove prices higher. Positions in
aluminum and copper generated profits as well.
March's negative performance resulted from losses in the metal, financial,
soft, grain and meat sectors, which were partially offset by gains in the
currency, index and energy sectors. In the metal sector, the Partnership
incurred losses in short gold positions as a strong housing report renewed fears
of U.S. inflation, generating interest in gold as a inflationary hedge. Silver
positions also lost value as prices fell in the beginning of the month, only to
rebound towards month end. The financial sector was unprofitable for the
Partnership, which held losing positions in the U.S. long bond, Australian
10-year, Japanese, British three month and Euromark bonds. Gains in the currency
sector helped to offset overall Partnership losses during March. A late-month
surge in the U.S. dollar combined with continued weakness in the Swiss franc and
Japanese yen resulted in solid foreign exchange profits. Crossrate positions
which recognized gains included the Japanese yen/British pound and Swiss
franc/British pound. Index sector gains were derived from long positions in the
German DAX and S&P 500. Light crude oil and natural gas positions in the energy
sector advanced as well.
Commissions are calculated on the Net Asset Value on the first day of each
month and, therefore, vary based on monthly trading performance and redemptions.
Commissions decreased by approximately $29,000 for the three months ended March
31, 1998 as compared to the same period in 1997 principally due to the effect of
weak first quarter 1998 trading performance on the monthly Net Asset Values.
All trading decisions are currently being made by John W. Henry & Company,
Inc., Welton Investment System Corp. and Eclipse Capital Management (the
'Trading Managers'). Management fees are calculated on the Net Asset Value
allocated to each Trading Manager as of the end of each month and, therefore,
are affected by trading performance and redemptions. Management fees decreased
by approximately $23,000 for the three months ended March 31, 1998 as compared
to the same period in 1997 primarily due to fluctuations in monthly Net Asset
Values as described above.
Incentive fees are based on the New High Net Trading Profits generated by
each Trading Manager, as defined in each Advisory Agreement among the
Partnership, the General Partner and each Trading Manager. Despite overall
Partnership trading losses during the three months ended March 31, 1998, Welton
Investment System Corp. generated sufficient trading profits to earn incentive
fees of approximately $8,000. No incentive fees were generated by the Trading
Managers during the three months ended March 31, 1997.
9
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings--There are no material legal proceedings pending by or
against the Registrant or the General Partner.
Item 2. Changes in Securities--None
Item 3. Defaults Upon Senior Securities--None
Item 4. Submission of Matters to a Vote of Security Holders--None
Item 5. Other Information--None
Item 6. Exhibits and Reports on Form 8-K:
(a) Exhibits
4.1 Agreement of Limited Partnership of the Registrant, dated as
of June 8, 1989 as amended and restated as of July 21, 1989
(incorporated by reference to Exhibits 3.1 and 4.1 to the
Registrant's Annual Report on Form 10-K for the period ended
December 31, 1989)
4.2 Subscription Agreement (incorporated by reference to
Exhibit 4.2 to the Registrant's Registration Statement
on Form S-1, File No. 33-29039)
4.3 Request for Redemption (incorporated by
reference to Exhibit 4.3 to the Registrant's
Registration Statement on Form S-1, File No.
33-29039)
27 Financial Data Schedule (filed herewith)
(b) Reports on Form 8-K--
No reports on Form 8-K were filed during the quarter.
10
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Prudential-Bache Capital Return Futures Fund 2, L.P.
By: Prudential Securities Futures Management Inc.
A Delaware corporation, General Partner
By: /s/ Steven Carlino Date: May 14, 1998
----------------------------------------
Steven Carlino
Vice President
Chief Accounting Officer for the
Registrant
11
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
The Schedule contains summary financial
information extracted from the financial
statements for P-B Capital Return Futures
Fund 2, L.P. and is qualified in its entirety
by reference to such financial statements
</LEGEND>
<RESTATED>
<CIK> 0000851786
<NAME> P-B Capital Return Futures Fund 2, L.P.
<MULTIPLIER> 1
<FISCAL-YEAR-END> Dec-31-1998
<PERIOD-START> Jan-1-1998
<PERIOD-END> Mar-31-1998
<PERIOD-TYPE> 3-Mos
<CASH> 6,552,016
<SECURITIES> 22,493,713
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 29,045,729
<CURRENT-LIABILITIES> 569,267
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 28,476,462
<TOTAL-LIABILITY-AND-EQUITY> 29,045,729
<SALES> 0
<TOTAL-REVENUES> (1,417,930)
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 958,760
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,376,690)
<EPS-PRIMARY> (19.75)
<EPS-DILUTED> 0
</TABLE>
