<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 September 30, 1999
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
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 778-7866
N/A
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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>
September 30, December 31,
1999 1998
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------
ASSETS
Equity in commodity trading accounts:
Cash $ 3,017,148 $ 3,691,861
U.S. Treasury bills, at amortized cost 11,761,115 12,336,668
Net unrealized gain on open commodity positions 573,535 584,528
------------- ------------
Total assets $15,351,798 $16,613,057
------------- ------------
------------- ------------
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable $ 355,196 $ 230,441
Accrued expenses 70,806 70,377
Management fees payable 25,462 27,570
Other transaction fees payable 2,684 1,260
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Total liabilities 454,148 329,648
------------- ------------
Commitments
Partners' capital
Limited partners (75,465.695 and 81,916.579 units outstanding) 14,748,539 16,120,466
General partner (763 and 828 units outstanding) 149,111 162,943
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Total partners' capital 14,897,650 16,283,409
------------- ------------
Total liabilities and partners' capital $15,351,798 $16,613,057
------------- ------------
------------- ------------
Net asset value per limited and general partnership unit ('Units') $ 195.43 $ 196.79
------------- ------------
------------- ------------
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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>
Nine months ended Three months ended
September 30, September 30,
-------------------------- ------------------------
<S> <C> <C> <C> <C>
1999 1998 1999 1998
- -------------------------------------------------------------------------------------------------------
REVENUES
Net realized gain (loss) on commodity
transactions $ 913,371 $ 4,762,563 $ (3,838) $1,599,134
Change in net unrealized gain/loss on open
commodity positions (10,993) 527,210 (73,588) 1,767,688
Interest from U.S. Treasury bills 400,110 463,768 135,991 152,916
---------- ----------- --------- ----------
1,302,488 5,753,541 58,565 3,519,738
---------- ----------- --------- ----------
EXPENSES
Commissions 960,711 960,151 307,144 317,003
Other transaction fees 32,470 61,404 9,985 15,382
Management fees 240,813 262,708 76,298 87,081
Incentive fees 59,653 1,012,240 -- 600,242
General and administrative 101,561 112,639 32,882 44,266
---------- ----------- --------- ----------
1,395,208 2,409,142 426,309 1,063,974
---------- ----------- --------- ----------
Net income (loss) $ (92,720) $ 3,344,399 $(367,744) $2,455,764
---------- ----------- --------- ----------
---------- ----------- --------- ----------
ALLOCATION OF NET INCOME (LOSS)
Limited partners $ (91,787) $ 3,310,941 $(364,059) $2,431,194
---------- ----------- --------- ----------
---------- ----------- --------- ----------
General partner $ (933) $ 33,458 $ (3,685) $ 24,570
---------- ----------- --------- ----------
---------- ----------- --------- ----------
NET INCOME (LOSS) PER WEIGHTED AVERAGE
LIMITED AND GENERAL PARTNERSHIP UNIT
Net income (loss) per weighted average
limited and general partnership unit $ (1.15) $ 36.92 $ (4.71) $ 28.05
---------- ----------- --------- ----------
---------- ----------- --------- ----------
Weighted average number of limited and
general partnership units outstanding 80,653 90,594 78,046 87,554
---------- ----------- --------- ----------
---------- ----------- --------- ----------
- -------------------------------------------------------------------------------------------------------
</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, 1998 82,744.579 $16,120,466 $162,943 $16,283,409
Net loss -- (91,787) (933 ) (92,720)
Redemptions (6,515.884) (1,280,140) (12,899 ) (1,293,039)
---------- ----------- -------- -----------
Partners' capital--September 30, 1999 76,228.695 $14,748,539 $149,111 $14,897,650
---------- ----------- -------- -----------
---------- ----------- -------- -----------
- ----------------------------------------------------------------------------------------------------
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
SEPTEMBER 30, 1999
(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 September 30, 1999 and the results of its operations for the nine and three
months ended September 30, 1999 and 1998. 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, 1998 (the 'Annual Report').
In accordance with the Agreement of Limited Partnership, if the Partnership's
net asset value declines below $10 million, the Partnership will dissolve.
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 for the nine and three months ended
September 30, 1999 and 1998 were:
<TABLE>
<CAPTION>
Nine months ended Three months ended
September 30, September 30,
---------------------------- --------------------------
1999 1998 1999 1998
<S> <C> <C> <C> <C>
---------------------------- --------------------------
Commissions $ 960,711 $ 960,151 $ 307,144 $317,003
General and administrative 46,013 58,682 13,635 14,163
------------- ---------- ------------- --------
$ 1,006,724 $1,018,833 $ 320,779 $331,166
------------- ---------- ------------- --------
------------- ---------- ------------- --------
</TABLE>
Expenses payable to the General Partner and its affiliates (which are
included in accrued expenses) were $27,704 and $15,295 as of September 30, 1999
and December 31, 1998, respectively.
The Partnership's assets are maintained either in trading or cash accounts
with Prudential Securities Incorporated ('PSI'), the Partnership's commodity
broker, 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
positions 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).
4
<PAGE>
Futures, forward and options contracts involve varying degrees of off-balance
sheet risk; and changes in the level or 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.
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, if any, 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 and its 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. Additionally, pursuant
to the Advisory Agreements among the Partnership, the General Partner and each
trading manager, a trading manager will automatically be terminated if the net
asset value allocated to that trading manager declines by 33 1/3% since the
first day of any calendar year or since the initial allocation of assets to that
trading manager. Furthermore, the Agreement of Limited Partnership provides that
the Partnership will liquidate its positions, and eventually dissolve, if the
Partnership experiences a decline in the net asset value of 50% since the
commencement of trading activities. In each case, the decline in the net asset
value is after giving effect for distributions and redemptions. 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
September 30, 1999, such segregated assets totalled $9,452,417. 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 $5,986,869 at September
30, 1999. There are no segregation requirements for assets related to forward
trading.
As of September 30, 1999, all open futures and forward contracts mature
within one year.
5
<PAGE>
At September 30, 1999 and December 31, 1998, gross contract amounts of open
futures and forward contracts were:
<TABLE>
<CAPTION>
1999 1998
------------- ------------
<S> <C> <C>
Financial Futures Contracts:
Commitments to purchase $ 85,810,569 $45,547,184
Commitments to sell 220,464,641 50,274,885
Currency Futures Contracts:
Commitments to purchase 17,149,820 216,163
Commitments to sell 1,847,463 1,262,608
Currency Forward Contracts:
Commitments to purchase 17,263,211 7,750,478
Commitments to sell 13,643,132 7,482,181
Other Futures Contracts:
Commitments to purchase 7,290,083 138,101
Commitments to sell 108,825 8,197,840
</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 or forward 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
and forward contracts to be the net unrealized gain or loss on the contracts.
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 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 September 30, 1999 and December 31, 1998, the fair values of open futures
and forward contracts were:
<TABLE>
<CAPTION>
1999 1998
-------------------------- ------------------------
Assets Liabilities Assets Liabilities
---------- ----------- -------- -----------
<S> <C> <C> <C> <C>
Futures Contracts:
Domestic exchanges
Financial $ 103,616 $ 31,293 $ 3,400 $ 3,572
Currencies 39,765 5,875 20,106 3,388
Other 490,031 3,206 97,898 22,075
Foreign exchanges
Financial 106,158 41,124 644,508 3,568
Other 17,565 14,614 95,112 6,195
Forward Contracts:
Currencies 424,235 511,723 -- 237,698
---------- ----------- -------- -----------
$1,181,370 $ 607,835 $861,024 $ 276,496
---------- ----------- -------- -----------
---------- ----------- -------- -----------
</TABLE>
6
<PAGE>
The following table presents the average fair value of futures, forward and
options contracts during the nine months ended September 30, 1999 and 1998,
respectively.
<TABLE>
<CAPTION>
1999 1998
-------------------------- --------------------------
Assets Liabilities Assets Liabilities
---------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Futures Contracts:
Domestic exchanges
Financial $ 88,160 $ 19,495 $ 160,137 $ 12,226
Currencies 315,924 28,037 239,147 30,637
Other 184,458 13,037 155,141 27,763
Foreign exchanges
Financial 349,486 54,555 555,789 44,626
Other 83,178 111,246 49,372 146,605
Forward Contracts:
Currencies 476,720 430,897 327,614 276,540
Other -- -- 12,683 17,375
Options Contracts:
Domestic exchanges
Financial -- -- 6,785 --
Currencies -- -- 4,128 --
Foreign exchanges
Financial -- -- 743 --
Other -- -- 1,450 --
---------- ----------- ---------- -----------
$1,497,926 $ 657,267 $1,512,989 $ 555,772
---------- ----------- ---------- -----------
---------- ----------- ---------- -----------
</TABLE>
The following table presents the average fair value of futures, forward and
options contracts during the three months ended September 30, 1999 and 1998,
respectively.
<TABLE>
<CAPTION>
1999 1998
-------------------------- --------------------------
Assets Liabilities Assets Liabilities
---------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Futures Contracts:
Domestic exchanges
Financial $ 189,124 $ 26,233 $ 287,324 $ 5,530
Currencies 227,561 46,147 195,917 39,196
Other 306,225 10,830 149,643 37,536
Foreign exchanges
Financial 360,414 60,607 645,162 41,263
Other 61,333 120,412 9,702 289,516
Forward Contracts:
Currencies 442,915 673,662 318,380 480,174
Other -- -- -- 21,484
Options Contracts:
Foreign exchanges
Other -- -- 1,003 --
---------- ----------- ---------- -----------
$1,587,572 $ 937,891 $1,607,131 $ 914,699
---------- ----------- ---------- -----------
---------- ----------- ---------- -----------
</TABLE>
7
<PAGE>
The following table presents trading revenues from futures, forward and
options contracts during the nine and three months ended September 30, 1999 and
1998, respectively.
<TABLE>
<CAPTION>
Nine months ended September 30, Three months ended September 30,
------------------------------------ -------------------------------------
1999 1998 1999 1998
----------------- -------------- ------------------ --------------
<S> <C> <C> <C> <C>
Futures Contracts:
Domestic exchanges
Financial $ (369,504) $ 865,316 $ (251,830) $1,032,048
Currencies 936,571 188,419 141,456 234,313
Other 481,474 36,222 502,747 (51,738)
Foreign exchanges
Financial (615,984) 4,217,205 (157,569) 2,428,980
Other (153,592) (323,319) 201,658 (529,703)
Forward Contracts:
Currencies 623,413 588,605 (513,888) 254,497
Other -- (111,484) -- --
Options Contracts:
Domestic exchanges
Financial -- (90,705) -- 2,438
Currencies -- (66,612) -- --
Foreign exchanges
Financial -- (8,148) -- --
Other -- (5,726) -- (4,013)
----------------- -------------- ------------------ --------------
$ 902,378 $5,289,773 $ (77,426) $3,366,822
----------------- -------------- ------------------ --------------
----------------- -------------- ------------------ --------------
</TABLE>
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 $68,609,503.
As of September 30, 1999, a significant portion of the Partnership's net
assets was held in U.S. Treasury bills (which represented approximately 77% 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 Partnership's exposure to market risk is
influenced by a number of factors including the volatility of interest rates and
foreign currency exchange rates, the liquidity of the markets in which the
contracts are traded and the relationships among the contracts held. The
inherent uncertainty of the Partnership's speculative trading as well as the
development of drastic market occurrences could result in monthly losses
considerably beyond the Partnership's experience to date and could ultimately
lead to a loss of all or substantially all of investors' capital. The General
Partner attempts to minimize these risks by requiring the Partnership and its
trading managers to abide by various trading limitations and policies which
include limiting margin amounts, trading only in liquid markets and utilizing
stop loss provisions. See Note C to the financial statements for a further
discussion on the credit and market risks associated with the Partnership's
futures and forward contracts.
The Partnership does not have, nor does it expect to have, any capital
assets.
Redemptions by limited partners recorded for the nine and three months ended
September 30, 1999 were $1,280,140 and $351,678, respectively. Redemptions by
the General Partner recorded for the nine and three months ended September 30,
1999 were $12,899 and $3,518, respectively. Redemptions by limited partners and
the General Partner from commencement of operations, February 15, 1991, through
September 30, 1999 totalled $75,108,022 and $812,137, 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 Unit as of September 30, 1999 was $195.43, a decrease
of .69% from the December 31, 1998 value of $196.79, and a decrease of 2.36%
from the June 30, 1999 net asset value per Unit of $200.15.
Quarterly Market Overview
During the quarter, global financial markets experienced heavy volatility. In
July, U.S. Federal Reserve policy gave markets a boost. However, record trade
deficits, higher employment costs, fears of inflation and
9
<PAGE>
higher interest rates in the U.S. quickly caused a reversal in U.S. stock and
bond markets. Global stock and bond markets followed U.S. markets demonstrating
increased volatility. The U.S. dollar also experienced fluctuations throughout
the quarter as signs of a stronger U.S. economy versus the European community
supported the dollar's rise to new highs against most major currencies. However,
later in the quarter as a record trade gap and stronger than expected European
economic data were reported, the U.S. dollar came under pressure and continued
to fall against most major currencies and to record lows against the Japanese
yen. In the commodities markets, energy prices rose as OPEC members agreed to
maintain cuts in oil output. The metal sector experienced extreme movement as
gold prices rose to a two-year high following reports that 15 European central
banks would limit sales and retain higher gold reserves.
Quarterly Partnership Performance
The Partnership incurred losses in the index sector due to positions in the
S&P 500 and Nikkei Dow (Japan). These markets were trendless as both the S&P 500
and Nikkei Dow moved sideways and a bit downward.
In the currency sector, trading in Swiss franc, Australian dollar and
Canadian dollar resulted in losses. Commodity based currencies such as the
Australian and Canadian dollars experienced gains against the U.S. dollar as
gold prices and other precious metals surged in September. The Partnership's
short positions incurred losses.
Gains were derived from long energy sector positions in light crude and
heating oil. OPEC's production cuts continued to prove effective for oil
markets. Expectations that current output levels could be maintained for the
foreseeable future also contributed to a bullish sentiment.
In the financial sector, trading in British gilt and U.S. Treasury bonds
resulted in profits. Except for Japan, global interest rate markets followed the
lead of the U.S. bond market as rates moved higher. On August 24th, the Federal
Open Market Committee decided to increase the U.S. federal funds rate by 25
basis points. European bond prices were weaker than U.S. bond prices due to fear
of a tightening bias and a rate hike by the European Central Bank (ECB). ECB
president Duisenberg made a public statement about tightening monetary policy in
response to inflationary pressures within the euro-zone. Short positions proved
profitable.
The grain sector derived gains for the Partnership from short soybean
positions. Soybean prices fell as drought-related supply concerns were
alleviated and the market began to focus on weak domestic demand.
Interest income is earned on the Partnership's investment in U.S. Treasury
bills and, therefore, varies monthly based on interest rates as well as the
effect of trading performance and redemptions on the level of funds available
for investment in U.S. Treasury bills. Interest income decreased $64,000 and
$17,000 for the nine and three months ended September 30, 1999 as compared to
the same periods in 1998 due to the effect of lower interest rates during 1999
and redemptions.
Commissions are calculated on the net asset value on the first day of each
month and, therefore, vary due to trading performance and redemptions.
Commissions for the nine months ended September 30, 1999 were comparable to the
corresponding period in 1998 as the increase in monthly net asset values from
income generated primarily during August and September 1998 was offset by
redemptions. Commissions decreased $10,000 for the three months ended September
30, 1999 as compared to the same period in 1998 due to the effect of negative
trading performance during the third quarter of 1999 and redemptions on the
monthly net asset values.
Other transaction fees consist of National Futures Association, exchange and
clearing fees which are based on the number of trades the trading managers
execute as well as which exchange, clearing firm or bank on, or through, which
the contract is traded. Other transaction fees decreased $29,000 and $5,000 for
the nine and three months ended September 30, 1999 as compared to the same
periods in 1998 primarily due to decreased trading volume.
All trading decisions for the Partnership are currently being made by Eagle
Trading Systems, Inc. ('Eagle'), Robert M. Tamiso ('Tamiso') and Hyman Beck &
Company, Inc. ('Hyman Beck'). Management fees are calculated on the portion of
the net asset value allocated to each trading manager at the end of each month,
and, therefore, are affected by trading performance and redemptions. Management
fees decreased by $22,000 and $11,000 for the nine and three months ended
September 30, 1999 as compared to the same periods in 1998. The nine month
decrease was primarily due to a reduction in the management
10
<PAGE>
fee rate from a 3% annual rate to 2% on the portion of the net assets that were
reallocated from Willowbridge Associates, Inc. to Tamiso during July 1998. The
three month decrease was primarily due to lower monthly net asset values as a
result of redemptions and poor trading performance during the third quarter of
1999.
Incentive fees are based on the New High Net Trading Profits generated by
each trading manager, as defined in the Advisory Agreements among the
Partnership, the General Partner and each trading manager. Incentive fees of
$60,000 were earned during the six months ended June 30, 1999. Incentive fees of
$1,012,000 and $600,000 were earned during the nine and three months ended
September 30, 1998.
General and administrative expenses decreased $11,000 for the nine and three
months ended September 30, 1999 as compared to the same periods in 1998. 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. These decreases were due to reductions in overall costs associated
with administering the Partnership including continuing declines in printing and
postage costs as limited partners redeem their Units.
Year 2000 Risk
A discussion of Year 2000 risk and its effect on the operations of the
Partnership is included in the Partnership's Annual Report.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Information regarding quantitative and qualitative disclosures about market
risk is not required pursuant to Item 305(e) of Regulation S-K.
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
3.1 Agreement of Limited Partnership of the Partnership,
dated as of July 12, 1990
and as amended as of October 3, 1990
(incorporated by reference to Exhibit A to the
4.1 Registrant's 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
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: November 12, 1999
----------------------------------------
Steven Carlino
Vice President and Treasurer
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-31-1999
<PERIOD-START> Jan-1-1999
<PERIOD-END> Sep-30-1999
<PERIOD-TYPE> 9-Mos
<CASH> 3,017,148
<SECURITIES> 12,334,650
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 15,351,798
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 15,351,798
<CURRENT-LIABILITIES> 454,148
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 14,897,650
<TOTAL-LIABILITY-AND-EQUITY> 15,351,798
<SALES> 0
<TOTAL-REVENUES> 1,302,488
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,395,208
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (92,720)
<EPS-BASIC> (1.15)
<EPS-DILUTED> 0
</TABLE>
