<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarterly Period Ended: March 31, 1998
or
[ ] Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Commission File Number: 0-19436
THE MILLBURN CURRENCY FUND II, L.P.
(Exact name of registrant as specified in its charter)
Delaware 22-3117668
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
c/o MILLBURN RIDGEFIELD CORPORATION
411 West Putnam Avenue
Greenwich, Connecticut 06830
(Address of principal executive offices)
Registrant's telephone number, including area code: (203) 625-7554
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant Limited Partnership Units
to Section 12(g) of the Act: (Title of Class)
Indicate by check mark whether the registrant (1) 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 [ ]
Aggregate market value of the voting and non-voting common equity held by
non-affiliates: $2,158,678
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
THE MILLBURN CURRENCY FUND II, L.P.
Statements of Financial Condition (UNAUDITED)
<TABLE>
<CAPTION>
31-Mar-98 31-Dec-97
Assets: ------------ ------------
<S> <C> <C>
Investment in U.S. Treasury bills - at value
(amortized cost $1,797,722 at Mar. 31, 1998) 1,797,722 1,757,480
Money market mutual funds 251,582 418,481
Options owned, at market value
(cost $28,325 at March 31, 1998) 38,825 8,000
Unrealized appreciation on open contracts 80,411 19,299
Cash 43,906 60,578
------------ ------------
Total Assets $ 2,212,446 $ 2,263,838
============ ============
Liabilities & Partners' Capital:
Accounts payable and accrued expenses 3,862 11,983
Redemptions payable to limited
partners, net 38,399 58,531
Accrued brokerage commissions 11,507 11,939
------------ ------------
Total Liabilities 53,768 82,453
Partners' Capital:
General Partner 469,059 458,401
Limited Partners (13,816 Limited
Partnership Units outstanding
- at March 31, 1998) 1,689,619 1,722,984
------------ ------------
Total Partners' Capital 2,158,678 2,181,385
------------ ------------
Total Liabilities and Partners' Capital $ 2,212,446 $ 2,263,838
============ ============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE MILLBURN CURRENCY FUND II, L.P.
Statements of Operations
For the three months ended March 31, 1998 and 1997 (UNAUDITED)
<TABLE>
<CAPTION>
1998 1997
------------ ------------
<S> <C> <C>
Revenues:
Realized Gain(Loss) on Closed
Currency Contracts (43,265) 730,012
Change in Unrealized Gain(Loss) on
Open Currency Contracts 69,250 (270,923)
Interest Income 28,988 27,675
------------ ------------
$ 54,973 $ 486,764
Expenses:
Brokerage Commissions 33,993 45,346
Administrative 5,288 6,601
------------ ------------
$ 39,281 $ 51,947
============ ============
Net Income(Loss) $ 15,692 $ 434,817
Net Income(Loss) allocated to General Partner $ 10,658 $ 76,345
Net Income(Loss) allocated to Limited Partners $ 5,034 $ 358,472
Increase(Decrease) in Redemption Value
for each Unit outstanding throughout
each period $ 0.35 $ 19.52
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE MILLBURN CURRENCY FUND II, L.P.
Statements of Partners' Capital
For the three months ended March 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
Limited General
Partners Partner Total
------------ ------------ ------------
<S> <C> <C> <C>
Partners' Equity at
December 31, 1997 (14,130 Units) 1,722,984 458,401 2,181,385
Redemption of 314 Units (38,399) - (38,399)
Net Gain(Loss) in Partnership
Equity 5,034 10,658 15,692
------------ ------------ ------------
Partnership Equity at
March 31, 1998 (13,816 Units) 1,689,619 469,059 2,158,678
============ ============ ============
Redemption Value per Unit
at March 31, 1998 122.29
============
</TABLE>
Statements of Cash Flows
For the three months ended March 31, 1998 and 1997 (UNAUDITED)
<TABLE>
<CAPTION>
1998 1997
------------ ------------
<S> <C> <C>
Cash Flows from Operating Activities:
Net Income(Loss) 15,692 434,817
Adjustments to reconcile Net Income
(Loss) to Net Cash Flows from
Operating Activities:
Decrease (Increase) in Equity in
Futures and Forward Trading Accounts (132,178) (1,012,316)
(Decrease) Increase in Accrued Expenses (8,554) (43,706)
------------ ------------
Net Cash Flows from Operating Activities (125,040) (621,205)
Cash Flows from Financing Activities:
Redemption of Limited and General
Partner Units and Unit Equivalents (58,531) (174,195)
------------ ------------
Net Change in Cash (183,571) (795,400)
Cash - Beginning of Year 479,059 1,074,094
------------ ------------
Cash - End of Period 295,488 278,694
============ ============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE MILLBURN CURRENCY FUND II, L.P. NOTES TO FORM 10-Q
These interim consolidated financial statements do not include all the
disclosures contained in the annual financial statements. These interim
statements have been prepared by management without audit by Independent
Public Accountants. The consolidated statements of financial condition has
been derived from the audited financial statements as of December 31, 1997.
The consolidated results of operation as displayed, should not be considered
indicative of results to be expected for the entire year.
Management discussion and analysis of the consolidated financial statements
for the three months ended March 31, 1998.
<TABLE>
<CAPTION>
31-Mar-98 31-Dec-97
------------- -------------
<S> <C> <C>
Ending Equity $ 2,158,678 $ 2,181,385
</TABLE>
The net assets decreased 1.04% in the first quarter of 1998. This resulted
from redemptions from the fund which was offset slightly by net income.
Currency markets were quite changeable at the start of 1998. In January, the
swift reversal of a dollar uptrend produced losses on long dollar positions
versus Europe and Japan. In February, increased volatility led to widespread
losses in both dollar based and cross rate trading. Finally, in March,
currency markets were profitable primarily due to yen weakness versus U.S.
dollars, German marks and Canadian dollars. U.S. dollar strength relative to
a number of continental currencies also resulted in significant profits from
other long dollar positions in March.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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, in the City of New York
and State of New York on the 13th day of May, 1998.
THE MILLBURN CURRENCY FUND II, L.P.
By: Millburn Ridgefield Corporation,
General Partner
By /s/ Tod A. Tanis May 13, 1998
Tod A. Tanis
Vice-President
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
STATEMENTS OF FINANCIAL CONDITION AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 295,488
<SECURITIES> 1,797,722
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,212,446
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 2,212,446
<CURRENT-LIABILITIES> 53,768
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,158,678
<TOTAL-LIABILITY-AND-EQUITY> 2,212,446
<SALES> 0
<TOTAL-REVENUES> 54,973
<CGS> 0
<TOTAL-COSTS> 33,993
<OTHER-EXPENSES> 5,288
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 15,692
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 15,692
<EPS-PRIMARY> 0.35
<EPS-DILUTED> 0.35
</TABLE>
