<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 June 30, 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: 0-19805
PRUDENTIAL-BACHE OPTIMAX FUTURES FUND, L.P.
- --------------------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 13-3577395
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(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 OPTIMAX FUTURES FUND, L.P.
(a limited partnership)
STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
<TABLE>
<CAPTION>
June 30, December 31,
1998 1997
<S> <C> <C>
- ----------------------------------------------------------------------------------------------------
ASSETS
Equity in commodity trading accounts:
Cash $ 4,049,137 $ 2,930,275
U.S. Treasury bills, at amortized cost 12,517,017 11,957,555
Net unrealized gain (loss) on open commodity positions (143,518) 1,082,273
Options, at market 4,014 36,807
----------- ------------
Total assets $16,426,650 $16,006,910
----------- ------------
----------- ------------
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable $ 634,183 $ 203,740
Incentive fees payable 162,588 85,079
Accrued expenses 101,310 100,952
Management fees payable 28,805 28,516
Other transaction fees payable 5,413 2,421
----------- ------------
Total liabilities 932,299 420,708
----------- ------------
Commitments
Partners' capital
Limited partners (86,678.223 and 92,158.661 OptiMax Units
outstanding) 15,339,326 15,430,323
General partner (876 and 931 OptiMax Units outstanding) 155,025 155,879
----------- ------------
Total partners' capital 15,494,351 15,586,202
----------- ------------
Total liabilities and partners' capital $16,426,650 $16,006,910
----------- ------------
----------- ------------
Net asset value per limited and general partnership units (the
'OptiMax Units') $ 176.97 $ 167.43
----------- ------------
----------- ------------
- ----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these statements.
</TABLE>
2
<PAGE>
PRUDENTIAL-BACHE OPTIMAX FUTURES FUND, L.P.
(a limited partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Six months ended Three months ended
June 30, June 30,
------------------------------ ------------------------------
1998 1997 1998 1997
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------
REVENUES
Net realized gain on commodity
transactions $ 3,163,429 $ 1,663,052 $ 1,185,765 $ 33,807
Change in unrealized gain/loss on open
commodity positions (1,240,478) (332,430) (760,191) (741,563)
Interest from U.S. Treasury bills 310,852 291,448 149,267 148,011
------------- ------------- ------------- -------------
2,233,803 1,622,070 574,841 (559,745)
------------- ------------- ------------- -------------
EXPENSES
Commissions 643,148 591,606 319,223 286,296
Other transaction fees 46,022 28,193 28,388 16,153
Management fees 175,627 171,412 85,345 77,807
Incentive fees 411,998 268,361 162,588 --
General and administrative 68,373 97,471 20,594 44,942
------------- ------------- ------------- -------------
1,345,168 1,157,043 616,138 425,198
------------- ------------- ------------- -------------
Net income (loss) $ 888,635 $ 465,027 $ (41,297) $(984,943)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
ALLOCATION OF NET INCOME (LOSS)
Limited partners $ 879,747 $ 460,373 $ (40,884) $(975,088)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
General partner $ 8,888 $ 4,654 $ (413) $ (9,855)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
NET INCOME (LOSS) PER WEIGHTED AVERAGE
LIMITED AND GENERAL PARTNERSHIP UNIT
Net income (loss) per weighted average
limited and general partnership unit $ 9.65 $ 4.68 $ (.45) $ (10.00)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Weighted average number of limited and
general partnership units outstanding 92,114 99,411 91,138 98,484
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
- -----------------------------------------------------------------------------------------------------------
</TABLE>
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
(Unaudited)
<TABLE>
<CAPTION>
OPTIMAX LIMITED GENERAL
UNITS PARTNERS PARTNER TOTAL
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
Partners' capital--December 31, 1997 93,089.661 $15,430,323 $155,879 $15,586,202
Net income -- 879,747 8,888 888,635
Redemptions (5,535.438) (970,744) (9,742 ) (980,486)
---------- ----------- -------- -----------
Partners' capital--June 30, 1998 87,554.223 $15,339,326 $155,025 $15,494,351
---------- ----------- -------- -----------
---------- ----------- -------- -----------
- ----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these statements.
</TABLE>
3
<PAGE>
PRUDENTIAL-BACHE OPTIMAX FUTURES FUND, L.P.
(a limited partnership)
NOTES TO FINANCIAL STATEMENTS
(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 OptiMax Futures Fund, L.P. (the 'Partnership') as
of June 30, 1998 and the results of its operations for the six and three months
ended June 30, 1998 and 1997. However, the operating results for the interim
periods may not be indicative of the results expected for the 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
Seaport 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 services and other
administrative services. The costs incurred for these services were:
<TABLE>
<CAPTION>
Six months ended Three months ended
June 30, June 30,
------------------------------ ------------------------------
1998 1997 1998 1997
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Commissions $ 643,148 $ 591,606 $ 319,223 $ 286,296
General and Administrative 44,519 48,252 21,437 19,355
------------- ------------- ------------- -------------
$ 687,667 $ 639,858 $ 340,660 $ 305,651
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
Expenses payable to the General Partner and its affiliates (which are
included in accrued expenses) were $55,266 and $17,761 as of June 30, 1998 and
December 31, 1997, respectively.
The Partnership maintains its trading and cash accounts at Prudential
Securities Incorporated ('PSI'), the Partnership's commodity broker and an
affiliate of the General Partner. 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 currency 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
4
<PAGE>
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.
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 interests 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
June 30, 1998 and December 31, 1997, such segregated assets totalled $7,119,011
and $8,917,171, 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 $9,803,550 and $6,988,356 at June 30, 1998 and December
31, 1997, respectively. There are no segregation requirements for assets related
to forward trading.
As of June 30, 1998, all open futures, forward and options contracts mature
within one year.
At June 30, 1998 and December 31, 1997, gross contract amounts of open
futures, forward and options contracts were:
<TABLE>
<CAPTION>
1998 1997
<S> <C> <C>
------------- ------------
Financial Futures and Options Contracts:
Commitments to purchase $ 448,315,637 $139,900,563
Commitments to sell 9,816,965 7,437,372
Currency Futures and Options Contracts:
Commitments to purchase 7,931,296 492,662
Commitments to sell 13,636,930 21,706,418
Currency Forward Contracts:
Commitments to purchase 9,104,916 7,046,771
Commitments to sell 9,909,013 10,358,738
Other Futures and Options Contracts:
Commitments to purchase 2,163,062 456,506
Commitments to sell 1,177,590 11,247,722
Other Forward Contracts:
Commitments to purchase 85,935 121,273
</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
5
<PAGE>
unrealized gain included in the statements of financial condition. The market
risk associated with the 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 June 30, 1998 and December 31, 1997, respectively, the fair values of
futures, forward and options contracts were:
<TABLE>
<CAPTION>
1998 1997
------------------------ --------------------------
Assets Liabilities Assets Liabilities
-------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Futures Contracts:
Domestic exchanges
Financial $240,128 $ 10,369 $ 146,750 $ 23,700
Currencies 187,690 109,970 197,088 38,848
Other 28,265 48,878 390,029 --
Foreign exchanges
Financial 184,148 127,537 324,620 3,840
Other 28,489 19,573 119,206 130,415
Forward Contracts:
Currencies 110,088 520,063 257,080 154,865
Other -- 85,936 -- 832
Options Contracts:
Domestic exchanges
Financial -- -- 6,907 --
Currencies -- -- 29,900 --
Foreign exchanges
Other 4,014 -- -- --
-------- ----------- ---------- -----------
$782,822 $ 922,326 $1,471,580 $ 352,500
-------- ----------- ---------- -----------
-------- ----------- ---------- -----------
</TABLE>
The following table presents the average fair value of futures, forward and
options contracts during the six months ended June 30, 1998 and 1997,
respectively.
<TABLE>
<CAPTION>
1998 1997
-------------------------- --------------------------
Assets Liabilities Assets Liabilities
---------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Futures Contracts:
Domestic exchanges
Financial $ 98,886 $ 15,787 $ 90,512 $ 10,768
Currencies 256,498 37,079 108,702 8,563
Other 140,157 25,194 182,418 38,634
Foreign exchanges
Financial 451,627 58,393 118,911 44,737
Other 69,057 46,794 217,304 54,528
Forward Contracts:
Currencies 301,815 194,967 538,931 247,186
Other 18,118 24,821 -- --
Options Contracts:
Domestic exchanges
Financial 9,692 -- 1,786 442
Currencies 5,896 -- 2,551 --
Other -- -- 4,444 --
Foreign exchanges
Financial 1,061 -- 1,713 --
Other 2,072 -- 2,073 --
---------- ----------- ---------- -----------
$1,354,879 $ 403,035 $1,269,345 $ 404,858
---------- ----------- ---------- -----------
---------- ----------- ---------- -----------
</TABLE>
6
<PAGE>
The following table presents the average fair value of futures, forward and
options contracts during the three months ended June 30, 1998 and 1997,
respectively.
<TABLE>
<CAPTION>
1998 1997
-------------------------- ------------------------
Assets Liabilities Assets Liabilities
---------- ----------- -------- -----------
<S> <C> <C> <C> <C>
Futures Contracts:
Domestic exchanges
Financial $ 67,797 $ 18,134 $135,477 $ 7,383
Currencies 311,587 52,854 11,706 8,130
Other 111,233 37,593 169,070 32,991
Foreign exchanges
Financial 345,794 73,404 73,126 41,026
Other 23,940 39,933 243,391 77,789
Forward Contracts:
Currencies 149,609 180,374 259,076 355,949
Other 13,355 43,229 -- --
Options Contracts:
Domestic exchanges
Financial 15,235 -- -- --
Currencies 2,844 -- 700 --
Other -- -- 5,413 --
Foreign exchanges
Financial 1,857 -- -- --
Other 3,626 -- 3,420 --
---------- ----------- -------- -----------
$1,046,877 $ 445,521 $901,379 $ 523,268
---------- ----------- -------- -----------
---------- ----------- -------- -----------
</TABLE>
The following table presents trading revenues from futures, forward and
options contracts during the six and three months ended June 30, 1998 and 1997,
respectively.
<TABLE>
<CAPTION>
Six months ended Three months ended
June 30, June 30,
------------------------------- -------------------------------
1998 1997 1998 1997
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Futures Contracts:
Domestic exchanges
Financial $ (166,732) $ (24,269) $ 2,783 $ (71,243)
Currencies (45,894) 132,415 (106,949) 162,389
Other 87,960 390,917 (68,392) (192,282)
Foreign exchanges
Financial 1,788,225 (508,337) 695,333 (633,978)
Other 206,384 298,707 104,699 (20,578)
Forward Contracts:
Currencies 334,108 1,046,848 98,326 73,194
Other (111,484) -- (173,281) --
Options Contracts:
Domestic exchanges
Financial (93,143) 58,982 (78,909) --
Currencies (66,612) (27,788) (39,561) (2,975)
Other -- (3,737) -- (17,959)
Foreign exchanges
Financial (8,148) (25,079) (8,148) --
Other (1,713) (8,037) (327) (4,324)
------------- ------------- ------------- -------------
$ 1,922,951 $ 1,330,622 $ 425,574 $(707,756)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
7
<PAGE>
D. Subsequent Event
During July 1998, Willowbridge Associates Inc. ceased to serve as a trading
manager to the Partnership. All assets previously managed by Willowbridge
Associates Inc. were reallocated to Robert M. Tamiso, one of the Partnership's
existing trading managers.
8
<PAGE>
PRUDENTIAL-BACHE OPTIMAX FUTURES FUND, 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 operations on February 15, 1991 with gross proceeds
of $70,309,500. After accounting for organizational and offering expenses, the
Partnership's net proceeds were $62,452,578 for Class A Units and $6,156,925 for
Class B Units. At the inception of the Partnership, 60% of the initial net
proceeds of the Class A Units and 100% of the initial net proceeds of the Class
B Units were allocated to trading activity ('Traded Assets'). The remaining 40%
of the initial net proceeds of the Class A Units was placed in reserve and
invested in investment grade interest-bearing obligations ('Reserve Assets').
On March 31, 1996, the Partnership's letter of credit expired. Additionally,
the Reserve Assets matured on April 1, 1996 and the resulting proceeds were
allocated for commodities trading. As such, 100% of the Partnership's net assets
are currently allocated to commodities trading. Also, on April 1, 1996, in
conjunction with the expiration of the letter of credit and maturity of the
Reserve Assets, the General Partner merged the Class A Units and the Class B
Units in accordance with Article X, Section B(16) of the Partnership Agreement
into a newly created Class of Units called the OptiMax Units. Each Class A Unit
was exchanged into one new OptiMax Unit and each Class B Unit was exchanged into
.99467 new OptiMax Unit.
As of June 30, 1998, a significant portion of the Partnership's net assets
was held in U.S. Treasury bills (which represented approximately 78% of the net
assets 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 net assets varies each day, and from month to month, as the market
value 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 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.
The Partnership does not have, nor does it expect to have, any capital
assets.
Redemptions by limited partners and the General Partner recorded for the six
months ended June 30, 1998 were $970,744 and $9,742, respectively, and from
commencement of operations, February 15, 1991, through June 30, 1998 totalled
$72,861,188 and $789,496, respectively. Future redemptions will impact the
amount of funds available for investment in commodity contracts in subsequent
periods.
In accordance with the Agreement of Limited Partnership, if the Partnership's
net asset value declines below $10 million, the Partnership will dissolve.
Results of Operations
The net asset value per OptiMax Unit as of June 30, 1998 was $176.97, an
increase of 5.70% from the December 31, 1997 value of $167.43.
The Partnership's negative performance in April resulted from losses in the
currency, financial, metal, index and energy sectors. Small gains were
experienced in the grain and soft sectors. Currency sector
9
<PAGE>
positions incurred the largest losses, particularly the Japanese yen. Early in
the month, the yen fell sharply versus the U.S. dollar as the Japanese
government lessened restrictions on currency movements out of the country and on
signs of a weak Japanese economy. The yen rose toward month-end on announcements
of intervention by the Bank of Japan on behalf of the Japanese economy. This
volatility contributed to losses in the Partnership's yen positions. Deutsche
mark positions were unprofitable for the Partnership as the deutsche mark
climbed versus the dollar on news of a possible tax increase in Germany.
Singapore dollar, British pound, Swiss franc and Italian lira positions also
added to losses. In the financial sector, positions in European, Japanese and
U.S. bonds incurred losses. This was due, in part, to significant volatility
caused by rumors of a U.S. Federal Reserve interest rate hike, as well as the
residual affect of the Bank of Japan's intervention in the Japanese economy. The
largest losses were incurred in German, Eurodollar and U.S. Treasury bonds.
Partially offsetting Partnership losses were gains in the grain and soft
sectors. Profitable grain sector positions included corn, wheat and soybeans. In
the soft sector, the Partnership experienced gains in sugar positions as prices
fell to five-year lows. Coffee positions were profitable as well.
The Partnership's positive performance in May resulted from gains in the
financial, currency and grain sectors. Small losses were incurred in the energy,
metal, soft and index sectors. The largest profits for the month came from
financial sector positions in the Japanese Government Bond ('JGB'). JGBs reached
new highs as yields plummeted on concerns that the worst of the Asian economic
worries were yet to come. Long positions in German, French and Australian bonds
also added value. Australia's economic link to the Pacific Rim drove the
Australian dollar to a 12-year low during the month, leading to profits for the
Partnership's short positions. Short Canadian dollar positions gained as it
dropped following indications in the Bank of Canada's semi-annual report that
current monetary policy would be 'broadly appropriate' for the next six months,
strongly suggesting interest rates would remain the same. The Partnership also
profited from short Japanese yen positions as the yen continued to fall. The
price of natural gas and other energy sector commodities fell throughout the
month, resulting in losses for the Partnership's long positions.
The Partnership's negative performance in June resulted from losses in the
grain, index, currency and energy sectors. Gains were experienced in the
financial, metal and soft sectors. Grain sector positions faltered as changing
weather conditions led to volatile trading conditions. Specifically, losses were
incurred in soybean, corn and soybean meal positions. Index sector positions
faired poorly as well, particularly in the German DAX, British FTSE and Japanese
Nikkei. In the currency sector, added concerns over the future of the Russian
economy drove the value of the deutsche mark lower. This was partially due to
the significant amount of outstanding loans to Russian businesses by German
banks. This initiated a flight to quality from the deutsche mark to the British
pound. These prices swings resulted in losses for the Partnership. Positions in
the Singapore and Australian dollar lost value as well. In the financial sector,
long positions in U.S. 30-year Treasury bonds helped to offset losses. The price
of the long bond rallied as yields dropped to lows not seen since the Treasury
department began issuing the bond in 1977. Gains were also achieved in German
and French bonds. In the metal sector, positions in aluminum, silver, copper and
zinc profited as metal rebounded in response to the Japanese yen intervention.
Commissions are calculated on the Traded Assets on the first day of each
month and, therefore, vary due to trading performance and redemptions.
Commissions increased approximately $52,000 for the six months ended June 30,
1998 compared to 1997 and increased approximately $33,000 for the three months
ended June 30, 1998 as compared to 1997 due to the effect of strong trading
performance during the latter part of 1997 and continued positive trading
performance during the first three months of 1998, partially offset by
redemptions, on the monthly Traded Assets.
Other transaction fees consist of National Futures Association, exchange and
clearing fees which are based on the number of trades the trading managers
execute. Other transaction fees increased approximately $18,000 and $12,000,
respectively, for the six and three months ended June 30, 1998 as compared to
1997 due to increased trading volume.
Through April 1997, all trading decisions for the Partnership were made by
Willowbridge Associates Inc., Chesapeake Capital Corporation ('Chesapeake'),
Robert M. Tamiso and Hyman Beck & Company Inc. (the 'Trading Managers').
Effective May 1997, Eagle Trading Systems, Inc. ('Eagle') replaced Chesapeake as
a Trading Manager for the Partnership. Additionally, during July 1998,
Willowbridge Associates Inc. ceased to serve as a Trading Manager to the
Partnership. All assets previously managed by Willowbridge Associates Inc. were
reallocated to Robert M. Tamiso.
Management fees are calculated on the portion of the Traded Assets allocated
to each Trading Manager at the end of the month, and, therefore, are affected by
trading performance and redemptions. As discussed
10
<PAGE>
in commissions above, the monthly Traded Assets increased in 1998 versus 1997
resulting from the net effect of strong trading performance and redemptions. As
a result of the above, management fees increased by approximately $4,000 and
$8,000, respectively, for the six and three months ended June 30, 1998 as
compared to 1997.
Incentive fees are based on the New High Net Trading Profits generated by
each trading manager, as defined in the Advisory Agreement among the
Partnership, the General Partner and each trading manager. Incentive fees of
approximately $386,000 and $26,000 during the six months ended June 30, 1998 and
$157,000 and $6,000 during the three months ended June 30, 1998 were earned by
Eagle and Robert M. Tamiso, respectively. Incentive fees of approximately
$114,000, $64,000, $58,000 and $32,000 were earned by Robert M. Tamiso,
Willowbridge Associates Inc., Hyman Beck & Company, Inc. and Chesapeake,
respectively, during the six months ended June 30, 1997. No incentive fees were
earned during the three months ended June 30, 1997.
General and administrative expenses decreased by approximately $29,000 and
$24,000, respectively, for the six and three months ended June 30, 1998 as
compared to 1997. These expenses include reimbursements of costs incurred by the
General Partner on behalf of the Partnership, in addition to accounting, audit,
tax and legal fees as well as printing and postage costs related to reports sent
to limited partners.
11
<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
<TABLE>
<S> <C>
3.1 Agreement of Limited Partnership of the Partnership, dated as of July 12, 1990 as amended
and as of October 3, 1990 (incorporated by reference to Exhibit A to the Registrant's
4.1 Registration Statement on Form S-1, File No. 33-36216)
4.2 Subscription Agreement (incorporated by reference to Exhibit E to the Registrant's
Registration Statement on Form S-1, File No. 33-36216)
4.3 Request for Redemption (incorporated by reference to Exhibit B to the Registrant's
Registration Statement on Form S-1, File No. 33-36216)
4.4 Request for Exchange (incorporated by reference to Exhibit B to the Registrant's
Registration Statement on Form S-1, File No. 33-36216)
27.1 Financial Data Schedule (filed herewith)
(b) Reports on Form 8-K--None
</TABLE>
12
<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 thereunto duly authorized.
PRUDENTIAL-BACHE OPTIMAX FUTURES FUND, L.P.
By: Seaport Futures Management, Inc.
A Delaware corporation, General Partner
By: /s/ Steven Carlino Date: August 13, 1998
----------------------------------------
Steven Carlino
Vice President
Chief Accounting Officer for the Registrant
13
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
The Schedule contains summary financial
information extracted from the financial
statements for Prudential-Bache OptiMax Futures
Fund, LP and is qualified in its entirety by
reference to such financial statements
</LEGEND>
<RESTATED>
<CIK> 0000866533
<NAME> Prudential-Bache OptiMax Futures Fund, LP
<MULTIPLIER> 1
<FISCAL-YEAR-END> Dec-31-1998
<PERIOD-START> Jan-1-1998
<PERIOD-END> Jun-30-1998
<PERIOD-TYPE> 6-Mos
<CASH> 4,049,137
<SECURITIES> 12,377,513
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 16,426,650
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 16,426,650
<CURRENT-LIABILITIES> 932,299
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 15,494,351
<TOTAL-LIABILITY-AND-EQUITY> 16,426,650
<SALES> 0
<TOTAL-REVENUES> 2,233,803
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,345,168
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 888,635
<EPS-PRIMARY> 9.65
<EPS-DILUTED> 9.65
</TABLE>
