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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
AMENDED FORM 10-Q
X Quarterly report pursuant to Section 13 of 15(d) of the
- --- Securities Exchange Act of 1934
For the Quarterly period ended September 30, 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 2-73692
The Balanced Opportunity Fund Limited Partnership
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(Exact name of registrant as specified in its charter)
Illinois 36-3655854
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(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
c/o Rodman & Renshaw Futures Management, Inc.
233 South Wacker Drive, Suite 4500
Chicago, Illinois 60606
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(Address of principal (Zip Code)
executive offices)
(312) 526-2000
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(Registrant's telephone number, including area code)
Indicate by checkmark 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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Total Pages In This Report - 9
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<TABLE>
The Balanced Opportunity Fund Limited Partnership
<CAPTION>
INDEX
<S> <C>
PART I - FINANCIAL INFORMATION
Page
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Item 1. Financial Statements -
Consolidated Statements of Financial Condition as of
September 30, 1996 (unaudited) and June 30, 1996 3
Consolidated Statements of Operations (unaudited) for the
three-month periods ended September 30, 1996 and 1995 4
Consolidated Statements of Changes in Partners' Capital for the
three-month period ended September 30, 1996 (unaudited) and the
year ended June 30, 1996 5
Note to Unaudited Consolidated Financial Statements --
September 30, 1996 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
Part II - OTHER INFORMATION 8
Item 6. Exhibits and Reports on Form 8-K 8
SIGNATURES 9
</TABLE>
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<TABLE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
THE BALANCED OPPORTUNITY FUND LIMITED PARTNERSHIP
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
September 30,
1996 June 30,
(unaudited) 1996
------------- ----------
<S> <C> <C>
ASSETS
Equity in commodity futures trading accounts:
Cash $ 642,000 $ 568,000
Net unrealized gain on open contracts 92,000
---------- ----------
Total equity in commodity futures
trading accounts 734,000 568,000
Guaranteed yield pool, at market 4,826,000 4,987,000
Interest receivable 1,000
Illinois replacement tax receivable 1,000 1,000
Other receivables 2,000 1,000
---------- ----------
Total assets $5,564,000 $5,557,000
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Accrued administrative expenses $ 25,000 $ 40,000
Accrued commissions and fees 43,000 38,000
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Total liabilities 68,000 78,000
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Partners' capital
Limited partners (units outstanding: 3,360.4502
and 3,392.4502) 5,320,000 5,305,000
General partner (units outstanding: 111.1143) 176,000 174,000
---------- ----------
Total partners' capital 5,496,000 5,479,000
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TOTAL LIABILITIES AND PARTNERS' CAPITAL $5,564,000 $5,557,000
========== ==========
NET ASSET VALUE PER UNIT $ 1,583.10 $ 1,563.75
========== ==========
<FN>
See note to the unaudited consolidated financial statements.
</FN>
</TABLE>
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<TABLE>
THE BALANCED OPPORTUNITY FUND LIMITED PARTNERSHIP
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
<CAPTION>
THREE MONTHS ENDED
SEPTEMBER 30,
1996 1995
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<S> <C> <C>
REVENUES:
Trading profit/(loss):
Realized $ (14,000) $(49,000)
Change in unrealized 91,000 16,000
Foreign currency profit 1,000 (24,000)
---------- ---------
Total trading and foreign
currency profit/(loss) 78,000 (57,000)
Guaranteed yield pool:
Accrued interest 196,000 112,000
Unrealized market value loss (121,000) (13,000)
---------- ---------
Total guaranteed yield pool revenue 75,000 99,000
Interest income 3,000 9,000
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Total revenue 156,000 51,000
EXPENSES:
Brokerage commissions 60,000 70,000
Advisory fees 14,000 16,000
Administrative expenses 15,000 10,000
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Total expenses 89,000 96,000
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NET INCOME/(LOSS) $ 67,000 $(45,000)
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NET INCOME/(LOSS) ALLOCATED TO:
Limited partners $ 65,000 $(44,000)
========== =========
General partner $ 2,000 $ (1,000)
========== =========
NET INCOME/(LOSS) PER UNIT
OUTSTANDING FOR ENTIRE PERIOD $ 19.35 $ (11.09)
========== =========
<FN>
See note to the unaudited consolidated financial statements.
</FN>
</TABLE>
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<TABLE>
THE BALANCED OPPORTUNITY FUND LIMITED PARTNERSHIP
CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' CAPITAL
<CAPTION>
TOTAL UNITS
OF PARTNERSHIP LIMITED GENERAL
INTEREST PARTNERS PARTNER TOTAL
-------------- -------- ------- -----
<S> <C> <C> <C> <C>
PARTNERS' CAPITAL
June 30, 1995 4,217.5645 $6,544,000 $177,000 $6,721,000
Redemptions (714.0000) (1,150,000) (1,150,000)
Net loss (89,000) (3,000) (92,000)
----------- ------------ --------- ------------
PARTNERS' CAPITAL
June 30, 1996 3,503.5645 $ 5,305,000 $174,000 $ 5,479,000
=========== ============ ========= ============
Redemptions ( 32.0000) (50,000) (50,000)
Net income 65,000 2,000 67,000
----------- ------------ --------- ------------
PARTNERS' CAPITAL
September 30, 1996
(unaudited) 3,471.5645 $ 5,320,000 $176,000 $ 5,496,000
=========== ============ ========= ============
50,000 Units of Limited Partnership Interest were available during the initial offering
period. The Fund is closed and not presently selling additional units.
<FN>
See note to the unaudited consolidated financial statements.
</FN>
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THE BALANCED OPPORTUNITY FUND LIMITED PARTNERSHIP
NOTE TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
September 30, 1996
NOTE A - BASIS OF PRESENTATION
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The unaudited consolidated financial statements of The Balanced
Opportunity Fund Limited Partnership (the "Partnership") have
been prepared in accordance with generally accepted accounting
principles for interim financial information and with the
instructions to Form 10-Q and Rule 10-01 of Regulation S-X.
Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management,
all adjustments considered necessary for a fair presentation of
the financial condition and results of operations of the
Partnership for the periods presented have been included. For
further information, refer to the consolidated financial
statements and footnotes thereto included in the Partnership's
annual report on Form 10-K for the year ended June 30, 1996.
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Capital Resources
The purpose of the Partnership is to trade commodity interests;
as such, the Partnership does not have, nor does it expect to
make, any capital expenditures or have any capital assets that
are not operating capital or assets. The Partnership's use of
assets is solely to provide necessary margin or premiums for, and
to pay any losses incurred in connection with, its trading
activity. The Net Asset Values are calculated and equity reports
are reviewed by the General Partner on a daily basis to monitor
the trading manager's activity to minimize the market and credit
risks of the Fund. The General Partner also monitors the trading
manager's compliance with investment objectives as set forth in
the prospectus. Redemption of additional units in the future
will impact the amount of funds available for trading commodity
interests. Redemptions of units during the quarter ended
September 30, 1996 reduced the amount of funds available by
$50,000.
Liquidity
Most United States commodity exchanges limit fluctuations in
commodity futures contract prices during a single day by
regulations referred to as "daily price fluctuation limits" or
"daily limits". During a single trading day, no trades may be
executed at a price beyond the daily limit. Once the price of a
futures contract has reached the daily limit for that day,
positions in that contract can neither be taken nor liquidated.
Commodity futures prices have occasionally reached the daily
limit for several consecutive days with little or no trading.
Similar occurrences could prevent the Partnership from promptly
liquidating unfavorable positions and subject the Partnership to
substantial losses which could exceed the margin initially
committed to such trades. In addition, even if commodity futures
prices have not reached the daily limit, the Partnership may not
be able to execute futures trades at favorable prices if little
trading in such contracts is taking place. Other than these
limitations on liquidity, which are inherent in the Partnership's
trading of commodity interests, the Partnership's assets are
highly liquid and are expected to remain so. The counterparty
for all exchange-traded contracts is ED&F Man International, Inc.
For over-the-counter contracts, the counterparty is Barclays
Bank. A portion of the Fund's assets have been invested in
certain United States treasury obligations. This investment is
designed to provide ultimate repayment of the investors' initial
contributions. These securities are not used for trading
purposes.
Results of Operations
Given the volatility of the markets in which the Partnership
trades, its quarterly results could fluctuate significantly and
are not indicative of the expected results for the fiscal year.
Trading operations were profitable at $78,000 for the quarter
ended September 30, 1996 as compared to a loss of $57,000 for the
same period last year, a significant improvement. The Fund
benefitted from positions in the international sector. Stable to
lower interest rates overseas pushed government bond prices
higher. New York crude oil positions also contributed to
performance as prices rose on news of tighter than expected
supplies. At September 30, 1996 there was no material credit
risk exposure exceeding 10% of total assets for either
exchange-traded or over-the-counter contracts.
Total guaranteed yield pool revenue was $75,000 and $99,000 for
the quarters ended September 30, 1996 and 1995, respectively.
Brokerage commissions, which are charged based on net asset value,
declined from $70,000 in the quarter ended September 30, 1995 to
$60,000 in the same quarter this year.
Thirty-two units with a value of $50,000 were redeemed during the
current quarter as opposed to 141 units valued at $225,000 during
the same quarter last year. Redemptions may be made on a
quarterly basis.
PART II. OTHER INFORMATION
Item 6. Reports on Form 8-K
No reports were filed on Form 8-K during the three months ended
September 30, 1996.
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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 thereunto duly authorized.
The Balanced Opportunity Fund Limited Partnership
-------------------------------------------------
(Registrant)
BY: Rodman & Renshaw Futures Management, Inc., General Partner
BY: /s/
PAUL M. DILLON
--------------
Paul M. Dillon, President and Director
Date: November 12, 1996
BY: /s/MARTIN G. PEMBROKE
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Martin G. Pembroke, Treasurer
Date: November 12, 1996
<PAGE>
EXHIBIT INDEX
Exhibit 27 Article 5 Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-END> SEP-30-1996
<CASH> 642,000
<SECURITIES> 92,000
<RECEIVABLES> 4,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 5,564,000
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 5,564,000
<CURRENT-LIABILITIES> 68,000
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 5,496,000 <F1>
<TOTAL-LIABILITY-AND-EQUITY> 5,564,000
<SALES> 0
<TOTAL-REVENUES> 156,000
<CGS> 0
<TOTAL-COSTS> 89,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 67,000
<INCOME-TAX> 0
<INCOME-CONTINUING> 67,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 67,000
<EPS-PRIMARY> 19.35
<EPS-DILUTED> 0
<FN>
<F1>
This figure represents $5,320,000 of Limited Partners' Capital and
$176,000 of General Partner's Capital.
</FN>
</TABLE>
